Minnesota Legislature
HF 2333
3rd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to education; prekindergarten through grade 1.3 12; providing for general education; special programs; 1.4 lifework development; facilities and technology; 1.5 education excellence; other programs; nutrition 1.6 programs; libraries; education policy; and state 1.7 agencies; appropriating money; amending Minnesota 1.8 Statutes 1998, sections 13.46, subdivision 2; 43A.18, 1.9 subdivision 4a; 119A.01, subdivisions 1 and 2; 1.10 120A.22, subdivision 5; 120A.24, subdivision 1; 1.11 120A.41; 121A.15, subdivision 1; 121A.23; 122A.07, 1.12 subdivision 1; 122A.18, by adding a subdivision; 1.13 122A.28; 122A.60, subdivision 3; 122A.61, subdivision 1.14 1; 123A.05, subdivision 2; 123A.48, subdivision 10; 1.15 123B.195; 123B.36, subdivision 1; 123B.49, subdivision 1.16 4; 123B.53, subdivisions 4, 5, and 6; 123B.54; 1.17 123B.57, subdivision 4; 123B.61; 123B.75, by adding a 1.18 subdivision; 123B.79, by adding a subdivision; 1.19 123B.92, subdivision 9; 123B.93; 124C.55, by adding a 1.20 subdivision; 124D.10, subdivisions 3, 4, 5, 6, 10, 11, 1.21 and by adding a subdivision; 124D.11, subdivisions 4, 1.22 6, 7, 8, and by adding a subdivision; 124D.453, 1.23 subdivision 3; 124D.454; 124D.68, subdivision 9; 1.24 124D.69, subdivision 1; 124D.87; 124D.88, subdivision 1.25 3; 124D.94, subdivisions 3, 6, and 7; 125A.09, 1.26 subdivision 4; 125A.50, subdivisions 2 and 5; 125A.75, 1.27 subdivision 8; 125A.76, subdivisions 1, 4, and 5; 1.28 125A.79, subdivisions 1, 2, and by adding 1.29 subdivisions; 125B.05, subdivision 3; 125B.20; 1.30 126C.05, subdivisions 1, 3, 15, and by adding a 1.31 subdivision; 126C.10, subdivisions 1, 2, 3, 4, 10, 14, 1.32 19, 21, and by adding subdivisions; 126C.12; 126C.13, 1.33 subdivisions 1 and 2; 126C.15; 126C.17, subdivisions 1.34 2, 5, and 6; 126C.40, subdivision 4; 126C.42, 1.35 subdivisions 1 and 2; 126C.46; 126C.63, subdivisions 5 1.36 and 8; 126C.69, subdivisions 2 and 9; 127A.44, 1.37 subdivision 2; 127A.45, subdivisions 2, 3, 4, 13, and 1.38 by adding a subdivision; 127A.47, subdivisions 2 and 1.39 7; 127A.49, subdivisions 2 and 3; 128C.01, 1.40 subdivisions 4 and 5; 128C.02, by adding a 1.41 subdivision; 128C.12, subdivision 1; 128C.20; and 1.42 626.556, by adding a subdivision; Laws 1993, chapter 1.43 224, article 3, section 32, as amended; Laws 1995, 1.44 First Special Session chapter 3, article 12, section 1.45 7, as amended; Laws 1996, chapter 412, article 1, 1.46 section 35; Laws 1997, First Special Session chapter 2.1 4, article 1, section 61, subdivisions 1, 2, 3, as 2.2 amended, and 4; article 2, section 51, subdivision 29, 2.3 as amended; article 8, section 4; article 9, section 2.4 13; and Laws 1998, chapter 397, article 12, section 8; 2.5 chapter 398, article 6, sections 38 and 39; proposing 2.6 coding for new law in Minnesota Statutes, chapters 2.7 124D; 125A; 125B; 128C; and 134; repealing Minnesota 2.8 Statutes 1998, sections 120B.05; 122A.31, subdivision 2.9 4; 123B.05; 123B.64, subdivisions 1, 2, 3, and 4; 2.10 123B.92, subdivisions 2, 4, 6, 7, 8, and 10; 124D.112; 2.11 124D.113; 124D.115; 124D.116; 124D.24; 124D.25; 2.12 124D.26; 124D.27; 124D.28; 124D.29; 124D.30; 124D.32; 2.13 124D.453; 124D.65, subdivision 3; 124D.67; 124D.70; 2.14 124D.90; 125A.76, subdivision 6; 125A.77; 125A.79, 2.15 subdivision 3; 126C.05, subdivision 4; 126C.06; 2.16 127A.45, subdivision 5; 134.155; 135A.081; and 2.17 136A.233; Laws 1995, First Special Session chapter 3, 2.18 article 3, section 11; Laws 1997, First Special 2.19 Session chapter 4, article 1, section 62, subdivision 2.20 5; article 2, section 51, subdivision 10; article 3, 2.21 section 5; and article 8, section 5; and Laws 1998, 2.22 chapter 398, article 2, section 57. 2.23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.24 ARTICLE 1 2.25 GENERAL EDUCATION 2.26 Section 1. Minnesota Statutes 1998, section 123A.05, 2.27 subdivision 2, is amended to read: 2.28 Subd. 2. [RESERVE REVENUE.] Each district that is a member 2.29 of an area learning center must reserve revenue in an amount 2.30 equal to at least 90 percent of the district average general 2.31 education revenue lesscompensatorybasic skills revenue per 2.32 pupil unit times the number of pupil units attending an area 2.33 learning center program under this section. The amount of 2.34 reserved revenue under this subdivision may only be spent on 2.35 program costs associated with the area learning center. 2.36 Compensatory revenue must be allocated according to section 2.37 126C.15, subdivision 2. 2.38 (Effective Date: Section 1 (123A.05, subdivision 2) is 2.39 effective for revenue for fiscal year 2000 and later.) 2.40 Sec. 2. Minnesota Statutes 1998, section 123B.79, is 2.41 amended by adding a subdivision to read: 2.42 Subd. 9. [RESERVED REVENUE FOR TRANSPORTATION.] A school 2.43 district may establish one or more reserve for transportation 2.44 accounts in the general fund which will contain revenue 2.45 designated to those accounts by the board. Revenue contained in 2.46 a reserve for transportation account may only be used for 3.1 transportation-related expenditures and shall not be available 3.2 for other purposes. 3.3 Sec. 3. Minnesota Statutes 1998, section 123B.92, 3.4 subdivision 9, is amended to read: 3.5 Subd. 9. [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 3.6 district's nonpublic pupil transportation aid forthe 1996-19973.7and later school years fortransportation services for nonpublic 3.8 school pupils according to sections 123B.88, 123B.84 to 123B.86, 3.9 and this section, equals the sum of the amounts computed in 3.10 paragraphs (b) and (c). This aid does not limit the obligation 3.11 to transport pupils under sections 123B.84 to 123B.87. 3.12 (b) For regular and excess transportation according to 3.13 subdivision 1, paragraph (b), clauses (1) and (2), an amount 3.14 equal to the product of: 3.15 (1) the district's actual expenditure per pupil transported 3.16 in the regular and excess transportation categories during the 3.17 second preceding school year; times 3.18 (2) the number of nonpublic school pupils residing in the 3.19 district who receive regular or excess transportation service or 3.20 reimbursement for the current school year; times 3.21 (3) the ratio of the formula allowance pursuant to section 3.22 126C.10, subdivision 2, for the current school year to the 3.23 formula allowance pursuant to section 126C.10, subdivision 2, 3.24 for the second preceding school year. 3.25 (c) For nonpublic nonregular transportation according to 3.26 subdivision 1, paragraph (b), clause (5), an amount equal to the 3.27 product of: 3.28 (1) the district's actual expenditure for nonpublic 3.29 nonregular transportation during the second preceding school 3.30 year; times 3.31 (2) the ratio of the formula allowance pursuant to section 3.32 126C.10, subdivision 2, for the current school year to the 3.33 formula allowance pursuant to section 126C.10, subdivision 2, 3.34 for the second preceding school year. 3.35 (d) Notwithstanding the amount of the formula allowance for 3.36 fiscal years1997 and 19982000, 2001, and 2002 in section 4.1 126C.10, subdivision 2, the commissioner shall use the amount of 4.2 the formula allowance for the current yearless $300plus $87 in 4.3 determining the nonpublic pupil transportation revenue in 4.4 paragraphs (b) and (c) for fiscalyears 1997 and 1998year 2000, 4.5 and the amount of the formula allowance less $110 in determining 4.6 the nonpublic pupil transportation revenue in paragraphs (b) and 4.7 (c) for fiscal years 2001 and 2002. 4.8 (Effective Date: Section 3 (123B.92, subdivision 9) is 4.9 effective for revenue for fiscal year 2000 and later.) 4.10 Sec. 4. Minnesota Statutes 1998, section 124D.68, 4.11 subdivision 9, is amended to read: 4.12 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 4.13 attending an eligible program full time under subdivision 3, 4.14 paragraph (d), the department must pay 90 percent of the 4.15 district's average general education revenue lesscompensatory4.16 basic skills revenue to the eligible program and ten percent of 4.17 the district's average general education revenue 4.18 lesscompensatorybasic skills revenue to the resident district 4.19 within 30 days after the eligible program verifies enrollment 4.20 using the form provided by the department. For a pupil 4.21 attending an eligible program part time, revenue shall be 4.22 reduced proportionately, according to the amount of time the 4.23 pupil attends the program, and the payments to the eligible 4.24 program and the resident district shall be reduced accordingly. 4.25 A pupil for whom payment is made according to this section may 4.26 not be counted by any district for any purpose other than 4.27 computation of general education revenue. If payment is made 4.28 for a pupil under this subdivision, a district shall not 4.29 reimburse a program under section 124D.69 for the same 4.30 pupil.CompensatoryBasic skills revenue shall be paid 4.31 according to section 126C.10, subdivision34. 4.32 (b) The department must pay up to 100 percent of the 4.33 revenue to the eligible program if there is an agreement to that 4.34 effect between the school district and the eligible program. 4.35 (Effective Date: Section 4 (124D.68, subdivision 9) is 4.36 effective for revenue for fiscal year 2000 and later.) 5.1 Sec. 5. Minnesota Statutes 1998, section 124D.69, 5.2 subdivision 1, is amended to read: 5.3 Subdivision 1. [AID.] If a pupil enrolls in an alternative 5.4 program, eligible under section 124D.68, subdivision 3, 5.5 paragraph (d), or subdivision 4, operated by a private 5.6 organization that has contracted with a school district to 5.7 provide educational services for eligible pupils under section 5.8 124D.68, subdivision 2, the district contracting with the 5.9 private organization must reimburse the provider an amount equal 5.10 to at least 90 percent of the district's average general 5.11 education lesscompensatorybasic skills revenue per pupil unit 5.12 times the number of pupil units for pupils attending the 5.13 program. Basic skills revenue shall be paid according to 5.14 section 126C.10, subdivision 4. Compensatory revenue must be 5.15 allocated according to section 126C.15, subdivision 2. For a 5.16 pupil attending the program part time, the revenue paid to the 5.17 program must be reduced proportionately, according to the amount 5.18 of time the pupil attends the program, and revenue paid to the 5.19 district shall be reduced accordingly. Pupils for whom a 5.20 district provides reimbursement may not be counted by the 5.21 district for any purpose other than computation of general 5.22 education revenue. If payment is made to a district or program 5.23 for a pupil under this section, the department must not make a 5.24 payment for the same pupil under section 124D.68, subdivision 9. 5.25 (Effective Date: Section 5 (124D.69, subdivision 1) is 5.26 effective for revenue for fiscal year 2000 and later.) 5.27 Sec. 6. Minnesota Statutes 1998, section 126C.05, 5.28 subdivision 1, is amended to read: 5.29 Subdivision 1. [PUPIL UNIT.] Pupil units for each 5.30 Minnesota resident pupil in average daily membership enrolled in 5.31 the district of residence, in another district under sections 5.32 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 5.33 124D.68; in a charter school under section 124D.10; or for whom 5.34 the resident district pays tuition under section 123A.18, 5.35 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 5.36 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 6.1 125A.65, shall be counted according to this subdivision. 6.2 (a) A prekindergarten pupil with a disability who is 6.3 enrolled in a program approved by the commissioner and has an 6.4 individual education plan is counted as the ratio of the number 6.5 of hours of assessment and education service to 825 times 1.25 6.6 with a minimum of 0.28, but not more thanone1.25. 6.7 (b) A prekindergarten pupil who is assessed but determined 6.8 not to be handicapped is counted as the ratio of the number of 6.9 hours of assessment service to 825 times 1.25. 6.10 (c) A kindergarten pupil with a disability who is enrolled 6.11 in a program approved by the commissioner is counted as the 6.12 ratio of the number of hours of assessment and education 6.13 services required in the fiscal year by the pupil's individual 6.14 education program plan to 875, but not more than one. 6.15 (d) A kindergarten pupil who is not included in paragraph 6.16 (c) is counted as .53 of a pupil unit for fiscal year 1995 and 6.17 thereafter. 6.18 (e) A pupil who is in any of grades 1 to 6 is counted as 6.19 1.06 pupil units for fiscal year 1995 and thereafter. 6.20 (f) A pupil who is in any of grades 7 to 12 is counted as 6.21 1.3 pupil units. 6.22 (g) A pupil who is in the post-secondary enrollment options 6.23 program is counted as 1.3 pupil units. 6.24 (Effective Date: Section 6 (126C.05, subdivision 1) is 6.25 effective for revenue for fiscal year 2000 and later.) 6.26 Sec. 7. Minnesota Statutes 1998, section 126C.05, 6.27 subdivision 3, is amended to read: 6.28 Subd. 3. [COMPENSATION REVENUE PUPIL UNITS.] Compensation 6.29 revenue pupil units for fiscal year 1998 and thereafter must be 6.30 computed according to this subdivision. 6.31 (a) The compensation revenue concentration percentage for 6.32 each building in a district equals the product of 100 times the 6.33 ratio of: 6.34 (1) the sum of the number of pupils enrolled in the 6.35 building eligible to receive free lunch plus one-half of the 6.36 pupils eligible to receive reduced priced lunch on October 1 of 7.1 the previous fiscal year; to 7.2 (2) the number of pupils enrolled in the building on 7.3 October 1 of the previous fiscal year. 7.4 (b) The compensation revenue pupil weighting factor for a 7.5 building equals the lesser of one or the quotient obtained by 7.6 dividing the building's compensation revenue concentration 7.7 percentage by 80.0. 7.8 (c) The compensation revenue pupil units for a building 7.9 equals the product of: 7.10 (1) the sum of the number of pupils enrolled in the 7.11 building eligible to receive free lunch and one-half of the 7.12 pupils eligible to receive reduced priced lunch on October 1 of 7.13 the previous fiscal year; times 7.14 (2) the compensation revenue pupil weighting factor for the 7.15 building; times 7.16 (3) .60. 7.17 (d) Notwithstanding paragraphs (a) to (c), for charter 7.18 schools and contracted alternative programs in the first year of 7.19 operation, compensation revenue pupil units shall be computed 7.20 using data for the current fiscal year. If the charter school 7.21 or contracted alternative program begins operation after October 7.22 1, compensatory revenue pupil units shall be computed based on 7.23 pupils enrolled on an alternate date determined by the 7.24 commissioner, and the compensation revenue pupil units shall be 7.25 prorated based on the ratio of the number of days of student 7.26 instruction to 170 days. 7.27 (e) Notwithstanding paragraphs (a) to (c), for a school 7.28 building where the number of pupils enrolled in the building has 7.29 increased by more than ten percent over the previous year, 7.30 compensation revenue pupil units shall be computed using data 7.31 for the current fiscal year less ten percent of the pupil units 7.32 for that year. 7.33 (f) The percentages in this subdivision must be based on 7.34 the count of individual pupils and not on a building average or 7.35 minimum. 7.36 (Effective Date: Section 7 (126C.05, subdivision 3) is 8.1 effective for revenue for fiscal year 2000 and later.) 8.2 Sec. 8. Minnesota Statutes 1998, section 126C.05, 8.3 subdivision 15, is amended to read: 8.4 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 8.5 enrolled in a learning year program under section 124D.128, an 8.6 area learning center under sections 123A.05 and 123A.06, an 8.7 alternative program approved by the commissioner, or a contract 8.8 alternative program under section 124D.68, subdivision 3, 8.9 paragraph (d), or subdivision 3a, for more than1,0201,038 8.10 hours in a school year for a secondary student, more than 8.11935952 hours in a school year for an elementary student, or 8.12 more than425433 hours in a school year for a kindergarten 8.13 student without a disability, that pupil may be counted as more 8.14 than one pupil in average daily membership. The amount in 8.15 excess of one pupil must be determined by the ratio of the 8.16 number of hours of instruction provided to that pupil in excess 8.17 of: (i) the greater of1,0201,038 hours or the number of hours 8.18 required for a full-time secondary pupil in the district 8.19 to1,0201,038 for a secondary pupil; (ii) the greater of9358.20 952 hours or the number of hours required for a full-time 8.21 elementary pupil in the district to935952 for an elementary 8.22 pupil in grades 1 through 6; and (iii) the greater of425433 8.23 hours or the number of hours required for a full-time 8.24 kindergarten student without a disability in the district to4258.25 433 for a kindergarten student without a disability. Hours that 8.26 occur after the close of the instructional year in June shall be 8.27 attributable to the following fiscal year. A kindergarten 8.28 student must not be counted as more than 1.2 pupils in average 8.29 daily membership under this subdivision. 8.30 (b)(i) To receive general education revenue for a pupil in 8.31 an alternative program that has an independent study component, 8.32 a district must meet the requirements in this paragraph. The 8.33 district must develop, with the pupil, a continual learning plan 8.34 for the pupil. A district must allow a minor pupil's parent or 8.35 guardian to participate in developing the plan, if the parent or 8.36 guardian wants to participate. The plan must identify the 9.1 learning experiences and expected outcomes needed for 9.2 satisfactory credit for the year and for graduation. The plan 9.3 must be updated each year. Each school district that has a 9.4 state-approved public alternative program must reserve revenue 9.5 in an amount equal to at least 90 percent of the district 9.6 average general education revenue per pupil unit less 9.7 compensatory revenue per pupil unit times the number of pupil 9.8 units generated by students attending a state-approved public 9.9 alternative program. The amount of reserved revenue available 9.10 under this subdivision may only be spent for program costs 9.11 associated with the state-approved public alternative program. 9.12 Compensatory revenue must be allocated according to section 9.13 126C.15, subdivision 2. 9.14 (ii) General education revenue for a pupil in an approved 9.15 alternative program without an independent study component must 9.16 be prorated for a pupil participating for less than a full year, 9.17 or its equivalent. Each school district that has a 9.18 state-approved public alternative program must reserve revenue 9.19 in an amount equal to at least 90 percent of the district 9.20 average general education revenue per pupil unit less 9.21 compensatory revenue per pupil unit times the number of pupil 9.22 units generated by students attending a state-approved public 9.23 alternative program. The amount of reserved revenue available 9.24 under this subdivision may only be spent for program costs 9.25 associated with the state-approved public alternative program. 9.26 Compensatory revenue must be allocated according to section 9.27 126C.15, subdivision 2. 9.28 (iii) General education revenue for a pupil in an approved 9.29 alternative program that has an independent study component must 9.30 be paid for each hour of teacher contact time and each hour of 9.31 independent study time completed toward a credit or graduation 9.32 standards necessary for graduation. Average daily membership 9.33 for a pupil shall equal the number of hours of teacher contact 9.34 time and independent study time divided by 1,020. 9.35 (iv) For an alternative program having an independent study 9.36 component, the commissioner shall require a description of the 10.1 courses in the program, the kinds of independent study involved, 10.2 the expected learning outcomes of the courses, and the means of 10.3 measuring student performance against the expected outcomes. 10.4 (Effective Date: Section 8 (126C.05, subdivision 15) is 10.5 effective the day following final enactment for revenue for 10.6 fiscal year 2000 and later.) 10.7 Sec. 9. Minnesota Statutes 1998, section 126C.05, is 10.8 amended by adding a subdivision to read: 10.9 Subd. 18. [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] (a) 10.10 When a pupil who has not passed an assessment of basic standards 10.11 in reading, writing, or mathematics is enrolled in a mastery of 10.12 basic skills summer school program that is not a part of the 10.13 regular school term and the student has a total enrollment time 10.14 of more than 1,038 hours in a school year, the pupil may be 10.15 counted as more than one pupil in average daily membership for 10.16 purposes of this subdivision only. The amount in excess of one 10.17 pupil must be determined by the ratio of the number of hours of 10.18 instruction provided to that pupil in excess of 1,038 hours. 10.19 For each pupil, only the amount of summer school enrollment time 10.20 attributable to basic skills instruction may be used to 10.21 calculate the additional hours in the school year. Basic skills 10.22 instruction is defined as in Minnesota's rules on graduation 10.23 standards and includes reading, writing, and mathematics. Hours 10.24 that occur after the close of the instructional year in June are 10.25 attributable to the following fiscal year. 10.26 (b) A pupil enrolled in a school district program for whom 10.27 payment is made under this subdivision may be counted by the 10.28 district only for the computation of basic revenue, according to 10.29 section 126C.10, subdivision 2. 10.30 (c) Revenue for a pupil enrolled in a basic skills summer 10.31 school program offered by a cooperative unit, as defined in 10.32 section 123A.24, subdivision 2, equals the number of hours of 10.33 summer instruction actually received by the student times the 10.34 ratio of the basic formula allowance to 1,038. 10.35 (d) Nothing in this section precludes a district from using 10.36 area learning center funds to help students during a summer 11.1 school program or the regular school year to master the reading, 11.2 writing, or math basic skills needed to pass the state's basic 11.3 skills tests. 11.4 (Effective Date: Section 9 (126C.05, subdivision 18) is 11.5 effective the day following final enactment and applies to 11.6 summer school sessions held after May 15, 1999.) 11.7 Sec. 10. Minnesota Statutes 1998, section 126C.10, 11.8 subdivision 1, is amended to read: 11.9 Subdivision 1. [GENERAL EDUCATION REVENUE.] For fiscal 11.10 year19992000 and thereafter, the general education revenue for 11.11 each district equals the sum of the district's basic 11.12 revenue, class size reduction revenue, basic skills revenue, 11.13 training and experience revenue, secondary sparsity revenue, 11.14 elementary sparsity revenue, transportation sparsity revenue, 11.15 total operating capital revenue,graduation standards11.16implementation revenue,equity revenue, referendum offset 11.17 adjustment, transition revenue, and supplemental revenue. 11.18 (Effective Date: Section 10 (126C.10, subdivision 1) is 11.19 effective for revenue for fiscal year 2000 and later.) 11.20 Sec. 11. Minnesota Statutes 1998, section 126C.10, 11.21 subdivision 2, is amended to read: 11.22 Subd. 2. [BASIC REVENUE.] The basic revenue for each 11.23 district equals the formula allowance times the resident pupil 11.24 units for the school year.The formula allowance for fiscal11.25year 1997 is $3,505.The formula allowance for fiscal year 1998 11.26 is $3,581and. The formula allowance for fiscal year 1999and11.27fiscal year 2000is $3,530. The formula allowance for fiscal 11.28 year 2000 is $3,700. The formula allowance for fiscal year 2001 11.29 and subsequent fiscal years is$3,597$3,875. 11.30 (Effective Date: Section 11 (126C.10, subdivision 2) is 11.31 effective for revenue for fiscal year 2000 and later.) 11.32 Sec. 12. Minnesota Statutes 1998, section 126C.10, 11.33 subdivision 3, is amended to read: 11.34 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] (a) The 11.35 compensatory education revenue for each building in the district 11.36 equals: 12.1 (1) the formula allowance times the compensation revenue 12.2 pupil units computed according to section 126C.05, subdivision 12.3 3; plus 12.4 (2) for a building located in a qualifying school district 12.5 the product of: (i) the state average amount of compensatory 12.6 revenue per school district enrollee less the district's average 12.7 amount of compensatory revenue per school district enrollee; 12.8 (ii) the ratio of the district's average enrollment per building 12.9 less the state average enrollment per building to the state 12.10 average enrollment per building; (iii) the ratio of the 12.11 district's total number of eligible pupils to 10,000; and (iv) 12.12 the district's enrollment. 12.13 (b) For the purposes of paragraph (a), a qualifying school 12.14 district: 12.15 (1) receives less than the state average amount of 12.16 compensatory revenue per school district enrollee; 12.17 (2) enrolls more than the state average number of pupils 12.18 eligible for free or reduced price meals; and 12.19 (3) has an average building enrollment greater than the 12.20 state average building enrollment. 12.21 (c) Revenue shall be paid to the district and must be 12.22 allocated according to section 126C.15, subdivision 2. 12.23 (Effective Date: Section 12 (126C.10, subdivision 3) is 12.24 effective for revenue for fiscal year 2000 and later.) 12.25 Sec. 13. Minnesota Statutes 1998, section 126C.10, 12.26 subdivision 4, is amended to read: 12.27 Subd. 4. [BASIC SKILLS REVENUE.] For fiscal year 1999 and 12.28 thereafter, a school district's basic skills revenue equals the 12.29 sum of: 12.30 (1) compensatory revenue under subdivision 3; plus 12.31 (2) limited English proficiency revenue according to 12.32 section 124D.65, subdivision 5; plus 12.33 (3)$190$375 times the limited English proficiency pupil 12.34 units according to section 126C.05, subdivision 17; plus 12.35 (4)the lesser of: (i)$22.50 times the number of adjusted 12.36 pupil units in kindergarten to grade 8; or (ii) the amount of13.1district money provided to match basic skills revenue for the13.2purposes described in section 126C.15. 13.3 (Effective Date: Section 13 (126C.10, subdivision 4) is 13.4 effective for revenue for fiscal year 2000 and later.) 13.5 Sec. 14. Minnesota Statutes 1998, section 126C.10, 13.6 subdivision 10, is amended to read: 13.7 Subd. 10. [SUPPLEMENTAL LEVY.] To obtain supplemental 13.8 revenue, a district may levy an amount not more than the product 13.9 of its supplemental revenue for the school year times the lesser 13.10 of one or the ratio of its adjusted net tax capacity per 13.11 resident pupil unit to$10,000$8,404. 13.12 (Effective Date: Section 14 (126C.10, subdivision 10) is 13.13 effective for revenue for fiscal year 2000 and later.) 13.14 Sec. 15. Minnesota Statutes 1998, section 126C.10, 13.15 subdivision 14, is amended to read: 13.16 Subd. 14. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 13.17 operating capital revenue may be used only for the following 13.18 purposes: 13.19 (1) to acquire land for school purposes; 13.20 (2) to acquire or construct buildings for school purposes; 13.21 (3) to rent or lease buildings, including the costs of 13.22 building repair or improvement that are part of a lease 13.23 agreement; 13.24 (4) to improve and repair school sites and buildings, and 13.25 equip or reequip school buildings with permanent attached 13.26 fixtures; 13.27 (5) for a surplus school building that is used 13.28 substantially for a public nonschool purpose; 13.29 (6) to eliminate barriers or increase access to school 13.30 buildings by individuals with a disability; 13.31 (7) to bring school buildings into compliance with the 13.32 Uniform Fire Code adopted according to chapter 299F; 13.33 (8) to remove asbestos from school buildings, encapsulate 13.34 asbestos, or make asbestos-related repairs; 13.35 (9) to clean up and dispose of polychlorinated biphenyls 13.36 found in school buildings; 14.1 (10) to clean up, remove, dispose of, and make repairs 14.2 related to storing heating fuel or transportation fuels such as 14.3 alcohol, gasoline, fuel oil, and special fuel, as defined in 14.4 section 296A.01; 14.5 (11) for energy audits for school buildings and to modify 14.6 buildings if the audit indicates the cost of the modification 14.7 can be recovered within ten years; 14.8 (12) to improve buildings that are leased according to 14.9 section 123B.51, subdivision 4; 14.10 (13) to pay special assessments levied against school 14.11 property but not to pay assessments for service charges; 14.12 (14) to pay principal and interest on state loans for 14.13 energy conservation according to section 216C.37 or loans made 14.14 under the Northeast Minnesota Economic Protection Trust Fund Act 14.15 according to sections 298.292 to 298.298; 14.16 (15) to purchase or lease interactive telecommunications 14.17 equipment; 14.18 (16) by board resolution, to transfer money into the debt 14.19 redemption fund to: (i) pay the amounts needed to meet, when 14.20 due, principal and interest payments on certain obligations 14.21 issued according to chapter 475; or (ii) pay principal and 14.22 interest on debt service loans or capital loans according to 14.23 section 126C.70; 14.24 (17) to paycapital expenditure equipment-relatedoperating 14.25 capital-related assessments of any entity formed under a 14.26 cooperative agreement between two or more districts; 14.27 (18) to purchase or lease computers and related materials, 14.28 copying machines, telecommunications equipment, and other 14.29 noninstructional equipment; 14.30 (19) to purchase or lease assistive technology or equipment 14.31 for instructional programs; 14.32 (20) to purchase textbooks; 14.33 (21) to purchase new and replacement library books; 14.34 (22) to purchase vehicles; 14.35 (23) to purchase or lease telecommunications equipment, 14.36 computers, and related equipment for integrated information 15.1 management systems for: 15.2 (i) managing and reporting learner outcome information for 15.3 all students under a results-oriented graduation rule; 15.4 (ii) managing student assessment, services, and achievement 15.5 information required for students with individual education 15.6 plans; and 15.7 (iii) other classroom information management needs; and 15.8 (24) to pay personnel costs directly related to the 15.9 acquisition, operation, and maintenance of telecommunications 15.10 systems, computers, related equipment, and network and 15.11 applications software. 15.12 Sec. 16. Minnesota Statutes 1998, section 126C.10, 15.13 subdivision 19, is amended to read: 15.14 Subd. 19. [TRANSITION ALLOWANCE.] (a) A district's 15.15 transportation transition allowance for fiscal year 1998 and 15.16 later equals the result of the following: 15.17 (1) if the result in subdivision 18, paragraph (a), clause 15.18 (iii), for fiscal year 1998 is less than the fiscal year 1996 15.19 base allowance, the transportation transition allowance equals 15.20 the fiscal year 1996 base allowance minus the result in 15.21 subdivision 18, paragraph (a), clause (iii); or 15.22 (2) if the result in subdivision 18, paragraph (a), clause 15.23 (iii), for fiscal year 1998 and later is greater than or equal 15.24 to the fiscal year 1996 base allowance, the transportation 15.25 transition allowance equals zero. 15.26 (b) A district's compensatory transition allowance equals 15.27 the greater of zero or the difference between: 15.28 (1) the amount of compensatory revenue the district would 15.29 have received under Minnesota Statutes 1996, section 124A.22, 15.30 subdivision 3, for fiscal year 1998 computed using a basic 15.31 formula allowance of $3,281; and 15.32 (2) the amount the district receives under subdivision 3; 15.33 divided by 15.34 (3) the district's actual pupil units for fiscal year 1998. 15.35 (c) A district's cooperation transition allowance for 15.36 fiscal year 2001 and later equals the greater of zero or the 16.1 difference between: 16.2 (1) $25,000; and 16.3 (2) $67 times the district's resident pupil units for 16.4 fiscal year 2001 divided by; 16.5 (3) the district's resident pupil units for fiscal year 16.6 2001. 16.7 (d) A district's transition allowance for fiscalyearyears 16.8 1999 and 2000 is equal to the sum of its transportation 16.9 transition allowance and its compensatory transition allowance. 16.10 A district's transition allowance for fiscal year20002001 and 16.11 thereafter is equal to the sum of its transportation transition 16.12 allowance, its compensatory transition allowance, and its 16.13 cooperation transition allowance. 16.14 (Effective Date: Section 16 (126C.10, subdivision 19) is 16.15 effective for revenue for fiscal year 2000 and later.) 16.16 Sec. 17. Minnesota Statutes 1998, section 126C.10, 16.17 subdivision 21, is amended to read: 16.18 Subd. 21. [TRANSITION LEVY ADJUSTMENT.] A district's 16.19 general education levy shall be adjusted by an amount equal to 16.20 the district's transition revenue times the lesser of 1 or the 16.21 ratio of its adjusted net tax capacity per resident pupil unit 16.22 to$10,000$8,404. 16.23 (Effective Date: Section 17 (126C.10, subdivision 21) is 16.24 effective for revenue for fiscal year 2000 and later.) 16.25 Sec. 18. Minnesota Statutes 1998, section 126C.10, is 16.26 amended by adding a subdivision to read: 16.27 Subd. 23. [CLASS SIZE REDUCTION REVENUE.] The class size 16.28 reduction revenue for a district with an approved plan under 16.29 section 126C.12, subdivision 6, equals the sum of $125 times the 16.30 average daily membership in regular kindergarten plus $250 times 16.31 the average daily membership in grades 1 through 3. 16.32 Sec. 19. Minnesota Statutes 1998, section 126C.10, is 16.33 amended by adding a subdivision to read: 16.34 Subd. 24. [EQUITY REVENUE.] (a) A school district is 16.35 eligible for an equity revenue adjustment if the school 16.36 district's general education revenue, including referendum 17.1 revenue, calculated under this section and section 126C.17, is 17.2 in the lowest 50th percentile of pupil-weighted general 17.3 education revenue per pupil unit for that year. 17.4 (b) Equity revenue for an eligible district equals: 17.5 (1) for a district in the lowest tenth percentile of 17.6 general education revenue, $50 times the district's resident 17.7 pupil units; 17.8 (2) for a district between the tenth and 20th percentile of 17.9 general education revenue, $40 times the district's resident 17.10 pupil units; 17.11 (3) for a district between the 20th and 30th percentile of 17.12 general education revenue, $30 times the district's resident 17.13 pupil units; 17.14 (4) for a district between the 30th and 40th percentile of 17.15 general education revenue, $20 times the district's resident 17.16 pupil units; and 17.17 (5) for a district between the 40th and 50th percentile of 17.18 general education revenue, $10 times the district's resident 17.19 pupil units. 17.20 (Effective Date: Section 19 (126C.10, subdivision 24) is 17.21 effective for revenue for fiscal year 2000 and later.) 17.22 Sec. 20. Minnesota Statutes 1998, section 126C.10, is 17.23 amended by adding a subdivision to read: 17.24 Subd. 25. [REFERENDUM OFFSET ADJUSTMENT.] A district that 17.25 qualifies for the referendum allowance reduction under section 17.26 126C.17, subdivision 12, and whose referendum allowance under 17.27 section 126C.17, subdivision 1, as adjusted under section 17.28 126C.17, subdivisions 2 and 12, does not exceed the referendum 17.29 allowance limit under section 126C.17, subdivision 2, clause 17.30 (2), shall receive a referendum offset adjustment. In fiscal 17.31 year 2000 and thereafter, the referendum offset adjustment is 17.32 equal to $25 per resident pupil unit. 17.33 (Effective Date: Section 20 (126C.10, subdivision 25) is 17.34 effective for revenue for fiscal year 2000 and later.) 17.35 Sec. 21. Minnesota Statutes 1998, section 126C.12, is 17.36 amended to read: 18.1 126C.12 [CLASS SIZE REDUCTION AND LEARNING AND DEVELOPMENT 18.2 REVENUE AMOUNT AND USE.] 18.3 Subdivision 1. [REVENUE.] Of a district's general 18.4 education revenue an amount equal to the sum of (1) the class 18.5 size reduction revenue under section 126C.10, subdivision 23, 18.6 plus (2) the sum of the number of elementary fund balance pupils 18.7 in average daily membership defined in section 126C.05, 18.8 subdivision 5, and one-half of the number of kindergarten fund 18.9 balance pupils in average daily membership as defined in section 18.10 126C.05, subdivision 5, times .06 for fiscal year 1995 and 18.11 thereafter times the formula allowance must be reserved 18.12 according to this section. 18.13 Subd. 2. [INSTRUCTOR DEFINEDDEFINITIONS.]Primary18.14instructor(a) "Classroom teacher" means a public employee 18.15 licensed by the board of teaching to provide direct instruction 18.16 to children in kindergarten through grade 6 and whose duties are 18.17full-timeclassroom instruction, excluding a teacher for whom18.18categorical aids are received pursuant to sections 125A.76 and18.19125A.77. Except as provided in section 122A.68, subdivision 6,18.20instructor does not include supervisory and support personnel,18.21except school social workers as defined in section 122A.15. An18.22instructor. A classroom teacher whose duties are less than 18.23 full-time instruction must be included as an equivalent only for 18.24 the number of hours of instruction ingradeskindergarten 18.25 through6grade 3. 18.26 (b) "Class size" means the district-wide ratio of: (1) the 18.27 number of full-time students in kindergarten through grade 3 18.28 receiving instruction in the core subjects of reading and 18.29 mathematics at least 40 percent of the time in classrooms to (2) 18.30 the number of full-time equivalent classroom teachers in 18.31 kindergarten through grade 3, determined as of October 1. 18.32 Subd. 3. [INSTRUCTION CONTACT TIME.] Instruction may be 18.33 provided by aprimary instructor,classroom teacher or by a team 18.34 ofinstructors, or by teacher resident supervised by a primary18.35instructorclassroom teachers. The district must 18.36 maximizeinstructorclassroom teacher tolearnerstudent average 19.1 instructional contact time in the core subjects of reading and 19.2 mathematics. 19.3 Subd. 4. [REVENUE USE.] (a) Revenue must be used according 19.4 to either paragraph (b) or (c). 19.5 (b) Revenue must be used to reduce and maintain the 19.6 district'sinstructor to learner ratiosaverage class size in 19.7 kindergarten through grade63 to a level of 1 to 17 on 19.8 average.The district must prioritize the use of the revenue to19.9attain this level initially in kindergarten and grade 1 and then19.10through the subsequent grades as revenue is available.19.11 (c) The revenue may be used to prepare and use an 19.12 individualized learning plan for eachlearnerstudent. A 19.13 district must not increase thedistrict wide19.14instructor-to-learner ratiosdistrict-wide class sizes in other 19.15 grades as a result of reducinginstructor-to-learner ratios19.16 class sizes in kindergarten through grade63. Revenue may not 19.17 be used to provide instructor preparation timeor to provide the19.18district's share of revenue required under section 124D.67. A 19.19 district may use a portion of the revenue reserved under this 19.20 section to employ up to the same number of full-time equivalent 19.21 education assistants or aidesas the district employed during19.22the 1992-1993 school year under Minnesota Statutes 1992, section19.23124.331, subdivision 2, or instructors who do not meet the 19.24 definition of a classroom teacher under subdivision 2 as the 19.25 district employed during the 1998-1999 school year under this 19.26 section. 19.27 Subd. 5. [ADDITIONAL REVENUE USE.] If the board of a 19.28 district determines that the district has achieved and is 19.29 maintaining theinstructor-to-learner ratiosclass sizes 19.30 specified in subdivision 4 and is using individualized learning 19.31 plans, the board may use the revenue to reduce class sizes in 19.32 grades 4 through 6, provide full-day kindergarten, employ 19.33 additional education assistants or aides, improve program 19.34 offerings, purchase instructional materialand, services, or 19.35 technology, provide staff development needed for 19.36 reducedinstructor-to-learner ratios. If additional revenue20.1remains, the district must use the revenue to improve program20.2offerings, including programs provided through interactive20.3television, throughout the district or other general education20.4purposesclass sizes, or for other strategies to improve student 20.5 achievement, according to the district's plan approved under 20.6 subdivision 6. 20.7 Subd. 6. [APPROVED PLAN.] (a) A district is eligible for 20.8 class size reduction revenue under section 126C.10, subdivision 20.9 23, if the school board adopts a biennial class size reduction, 20.10 learning and development plan that the commissioner approves. 20.11 (b) The plan must include the following: 20.12 (1) the actual class size as defined in subdivision 2, 20.13 paragraph (b), for kindergarten through grade 3 for fiscal year 20.14 1999; 20.15 (2) the number of additional classroom teachers to be 20.16 employed each year of the biennium to reduce class size below 20.17 the fiscal year 1999 level; 20.18 (3) the proposed class size for kindergarten through grade 20.19 3 for each year of the biennium; 20.20 (4) the school board policy on class size for kindergarten 20.21 through grade 3; and 20.22 (5) a description of how the district will provide a class 20.23 size of 17 or lower for reading and mathematics instruction in 20.24 kindergarten through grade 3. The plan must also include a 20.25 budget summary for the class size reduction and learning and 20.26 development revenue in the format prescribed by the commissioner 20.27 in consultation with districts, and a statement assuring that 20.28 expenditures under the plan will supplement, not supplant, 20.29 programs provided by the district during fiscal year 1999, that 20.30 use other revenue sources. 20.31 (c) The first priority for using class size reduction 20.32 revenue must be to reduce the district average class size from 20.33 the district's fiscal year 1999 level to 17 to 1 for 20.34 kindergarten through grade 3 beginning in the core subjects of 20.35 reading and mathematics. If the district faces classroom space 20.36 constraints, the local school board must consider all available 21.1 options for increasing the amount of classroom space available 21.2 for kindergarten through grade 3, including reallocating 21.3 existing space by changing grade levels assigned to school 21.4 buildings, and increasing overall space through building leases, 21.5 additions, or new construction. 21.6 (d) If the district is unable to achieve an average class 21.7 size ratio of 17 to 1 in kindergarten through grade 3, or the 21.8 district is able to achieve an average class size ratio of 17 to 21.9 1 in kindergarten through grade 3, for reading and mathematics 21.10 instruction only, then to remain eligible for class size 21.11 reduction revenue the local school board must submit an amended 21.12 plan consistent with the requirements of this paragraph and 21.13 paragraph (b) focusing on school and student improvement using 21.14 reading and mathematics instruction that includes proven 21.15 instructional practices, flexible staffing patterns, or small 21.16 group learning. The amended plan must include district review 21.17 of student progress over time. 21.18 (e) A district's biennial class size reduction, learning 21.19 development plan must be submitted to the commissioner by August 21.20 15 of each odd-numbered year. 21.21 Subd. 7. [ANNUAL REPORT.] By August 15 each year, a 21.22 district receiving class size reduction revenue must submit a 21.23 report to the commissioner in the manner prescribed by the 21.24 commissioner in consultation with districts. The report must 21.25 include the district's class size as defined in subdivision 2, 21.26 paragraph (b), for kindergarten through grade 3 and a summary of 21.27 the district's actual expenditures by program component for the 21.28 preceding fiscal year. In the district's report required under 21.29 section 120B.11, subdivision 5, districts receiving revenue 21.30 under this section shall include data measuring the impact of 21.31 class size reduction on student achievement. A district that 21.32 succeeds in reducing its average class size in kindergarten 21.33 through grade 3 to a level of 1 to 17 on average must include 21.34 strategies for improving student achievement and reviewing 21.35 student progress in subsequent biennial class size reduction, 21.36 learning, and development plans. 22.1 (Effective Date: Section 21 (126C.12) is effective for 22.2 revenue for fiscal year 2000 and later.) 22.3 Sec. 22. Minnesota Statutes 1998, section 126C.13, 22.4 subdivision 1, is amended to read: 22.5 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 22.6 commissioner must establish the general education tax rate by 22.7 July 1 of each year for levies payable in the following year. 22.8 The general education tax capacity rate must be a rate, rounded 22.9 up to the nearest hundredth of a percent, that, when applied to 22.10 the adjusted net tax capacity for all districts, raises the 22.11 amount specified in this subdivision. The general education tax 22.12 rate must be the rate that raises$1,385,500,000 for fiscal year22.131999, $1,325,500,000 for fiscal year 2000, and $1,387,100,00022.14 $1,330,000,000 for fiscal year 2001, and later fiscal years. 22.15 The general education tax rate may not be changed due to changes 22.16 or corrections made to a district's adjusted net tax capacity 22.17 after the tax rate has been established.If the levy target for22.18fiscal year 1999 or fiscal year 2000 is changed by another law22.19enacted during the 1997 or 1998 session, the commissioner shall22.20reduce the general education levy target in this section by the22.21amount of the reduction in the enacted law.22.22 (Effective Date: Section 22 (126C.13, subdivision 1) is 22.23 effective for taxes payable in 2000 and later.) 22.24 Sec. 23. Minnesota Statutes 1998, section 126C.13, 22.25 subdivision 2, is amended to read: 22.26 Subd. 2. [GENERAL EDUCATION LEVY.] To obtain general 22.27 education revenue, excluding transition revenue and supplemental 22.28 revenue, a district may levy an amount not to exceed the general 22.29 education tax rate times the adjusted net tax capacity of the 22.30 district for the preceding year. If the amount of the general 22.31 education levy would exceed the general education revenue, 22.32 excluding transition revenue and supplemental revenue, the 22.33 general education levy must be determined according to 22.34 subdivision 3. 22.35 Sec. 24. Minnesota Statutes 1998, section 126C.15, is 22.36 amended to read: 23.1 126C.15 [COMPENSATORY EDUCATIONBASIC SKILLS REVENUE.] 23.2 Subdivision 1. [USE OF THE REVENUE.] Thecompensatory23.3educationbasic skills revenue under section 126C.10, 23.4 subdivision34, and the portion of the transition revenue 23.5 adjustment under section 126C.10, subdivision 20, attributable 23.6 to the compensatory transition allowance under section 126C.10, 23.7 subdivision 19, paragraph (b), must be reserved and used to meet 23.8 the educational needs of pupils who enroll under-prepared to 23.9 learn and whose progress toward meeting state or local content 23.10 or performance standards is below the level that is appropriate 23.11 for learners of their age. Any of the following may be provided 23.12 to meet these learners' needs: 23.13 (1) direct instructional services under the assurance of 23.14 mastery program according to section 124D.66; 23.15 (2) remedial instruction in reading, language arts, 23.16 mathematics, other content areas, or study skills to improve the 23.17 achievement level of these learners; 23.18 (3) additional teachers and teacher aides to provide more 23.19 individualized instruction to these learners through individual 23.20 tutoring, lower instructor-to-learner ratios, or team teaching; 23.21 (4) a longer school day or week during the regular school 23.22 year or through a summer program that may be offered directly by 23.23 the site or under a performance-based contract with a 23.24 community-based organization; 23.25 (5) comprehensive and ongoing staff development consistent 23.26 with district and site plans according to section 122A.60, for 23.27 teachers, teacher aides, principals, and other personnel to 23.28 improve their ability to identify the needs of these learners 23.29 and provide appropriate remediation, intervention, 23.30 accommodations, or modifications; 23.31 (6) instructional materials and technology appropriate for 23.32 meeting the individual needs of these learners; 23.33 (7) programs to reduce truancy, encourage completion of 23.34 high school, enhance self-concept, provide health services, 23.35 provide nutrition services, provide a safe and secure learning 23.36 environment, provide coordination for pupils receiving services 24.1 from other governmental agencies, provide psychological services 24.2 to determine the level of social, emotional, cognitive, and 24.3 intellectual development, and provide counseling services, 24.4 guidance services, and social work services; 24.5 (8) bilingual programs, bicultural programs, and programs 24.6 for learners of limited English proficiency; 24.7 (9) all day kindergarten; 24.8 (10) extended school day and extended school year programs; 24.9 (11) substantial parent involvement in developing and 24.10 implementing remedial education or intervention plans for a 24.11 learner, including learning contracts between the school, the 24.12 learner, and the parent that establish achievement goals and 24.13 responsibilities of the learner and the learner's parent or 24.14 guardian; and 24.15 (12) other methods to increase achievement, as needed. 24.16 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 24.17 allocate its compensatory revenue to each school building in the 24.18 district where the children who have generated the revenue are 24.19 served. 24.20 (b) Notwithstanding paragraph (a),for fiscal years 199924.21and 2000,upon approval by the commissioner, a district may 24.22 allocate up to five percent of the amount of compensatory 24.23 revenue that the district would have received under Minnesota 24.24 Statutes 1996, section126C.10124A.22, subdivision 3, for 24.25 fiscal year 1998, computed using a basic formula allowance of 24.26 $3,581 to school sites according to a plan adopted by the school 24.27 board. 24.28 (c) For the purposes of this section and section 126C.05, 24.29 subdivision 3, "building" means education site as defined in 24.30 section 123B.04, subdivision 1. 24.31 (d) If the pupil is served at a site other than one owned 24.32 and operated by the district, the revenue shall be paid to the 24.33 district and used for services for pupils who generate the 24.34 revenue. 24.35 Subd. 3. [RECOMMENDATION.] A school site decision-making 24.36 team, as defined in section 123B.04, subdivision 3, paragraph 25.1 (a), or the instruction and curriculum advisory committee under 25.2 section 120B.11, if the school has no school site decision team, 25.3 shall recommend how the compensatory education revenue will be 25.4 used to carry out the purpose of this section. 25.5 Subd. 4. [SEPARATE ACCOUNTS.] Each district that 25.6 receivescompensatory educationbasic skills revenue shall 25.7 maintain separate accounts to identify expenditures for salaries 25.8 and programs related to basic skills revenue. 25.9 Subd. 5. [ANNUAL EXPENDITURE REPORT.] Each year a district 25.10 that receivescompensatory educationbasic skills revenue must 25.11 submit a report identifying the expenditures it incurred to meet 25.12 the needs of eligible learners under subdivision 1. The report 25.13 must conform to uniform financial and reporting standards 25.14 established for this purpose. 25.15 (Effective Date: Section 24 (126C.15) is effective for 25.16 revenue for fiscal year 2000 and later.) 25.17 Sec. 25. Minnesota Statutes 1998, section 126C.17, 25.18 subdivision 2, is amended to read: 25.19 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 25.20 subdivision 1, a district's referendum allowance must not exceed 25.21 the greater of: 25.22 (1) the district's referendum allowance for fiscal year 25.23 1994; 25.24 (2) 25 percent of the formula allowanceminus $300 for25.25fiscal year 1997 and later; or 25.26 (3) for a newly reorganized district created after July 1, 25.27 1994, the sum of the referendum revenue authority for the 25.28 reorganizing districts for the fiscal year preceding the 25.29 reorganization, divided by the sum of the resident pupil units 25.30 of the reorganizing districts for the fiscal year preceding the 25.31 reorganization. 25.32 (Effective Date: Section 25 (126C.17, subdivision 2) is 25.33 effective for revenue for fiscal year 2000 and later.) 25.34 Sec. 26. Minnesota Statutes 1998, section 126C.17, 25.35 subdivision 5, is amended to read: 25.36 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) A 26.1 district's referendum equalization revenue equals$350the 26.2 referendum equalization allowance times the district's resident 26.3 pupil units for that year. 26.4 (b) The referendum equalization allowance equals $350 for 26.5 fiscal year 2000, $415 for fiscal year 2001, $455 for fiscal 26.6 year 2002, and $465 for fiscal year 2003 and later. 26.7 (c) Referendum equalization revenue must not exceed a 26.8 district's total referendum revenue for that year. 26.9 (Effective Date: Section 26 (126C.17, subdivision 5) is 26.10 effective for revenue for fiscal year 2000 and later.) 26.11 Sec. 27. Minnesota Statutes 1998, section 126C.17, 26.12 subdivision 6, is amended to read: 26.13 Subd. 6. [REFERENDUM EQUALIZATION LEVY.] (a)For fiscal26.14year 1999 and thereafter,A district's referendum equalization 26.15 levy for a referendum levied against the referendum market value 26.16 of all taxable property as defined in section 126C.01, 26.17 subdivision 3, equals the district's referendum equalization 26.18 revenue times the lesser of one or the ratio of the district's 26.19 referendum market value per resident pupil unit to $476,000. 26.20 (b)For fiscal year 1999 and thereafter,A district's 26.21 referendum equalization levy for a referendum levied against the 26.22 net tax capacity of all taxable property equals the district's 26.23 referendum equalization revenue times the lesser of one or the 26.24 ratio of the district's adjusted net tax capacity per resident 26.25 pupil unit to$10,000$8,404. 26.26 (Effective Date: Section 27 (126C.17, subdivision 6) is 26.27 effective for revenue for fiscal year 2000 and later.) 26.28 Sec. 28. Minnesota Statutes 1998, section 127A.44, 26.29 subdivision 2, is amended to read: 26.30 Subd. 2. [ADJUSTMENT TO AIDS.] (a) The amount specified in 26.31 subdivision 1 shall be used to adjust the following state aids 26.32 and credits in the order listed: 26.33 (1) general education aid authorized in section 126C.13; 26.34 (2) secondary vocational aid authorized in section 26.35 124D.453; 26.36 (3) special education aid authorized in sections 125A.75 27.1 and 125A.76; 27.2 (4)school-to-workcareer and technical program aid for 27.3 children with a disability authorized in section 124D.454; 27.4 (5)aid for pupils of limited English proficiency27.5authorized in section 124D.65;27.6(6)transportation aid authorized in section 123B.92; 27.7(7)(6) community education programs aid authorized in 27.8 section 124D.20; 27.9(8)(7) adult education aid authorized in section 124D.52; 27.10(9)(8) early childhood family education aid authorized in 27.11 section 124D.135; 27.12(10)(9) capital expenditure aid authorized in section 27.13 123B.57; 27.14(11)(10) school district cooperation aid authorized in 27.15 section 126C.22; 27.16(12) assurance of mastery aid according to section 124D.67;27.17(13)(11) homestead and agricultural credit aid, disparity 27.18 credit and aid, and changes to credits for prior year 27.19 adjustments according to section 273.1398, subdivisions 2, 3, 4, 27.20 and 7; 27.21(14)(12) attached machinery aid authorized in section 27.22 273.138, subdivision 3; 27.23(15) alternative delivery aid authorized in section27.24125A.78;27.25(16) special education equalization aid authorized in27.26section 125A.77;27.27(17)(13) special education excess cost aid authorized in 27.28 section 125A.79; and 27.29(18)(14) learning readiness aid authorized in section 27.30 124D.16; and27.31(19) cooperation combination aid authorized in section27.32123A.39, subdivision 3. 27.33 (b) The commissioner shall schedule the timing of the 27.34 adjustments to state aids and credits specified in subdivision 27.35 1, as close to the end of the fiscal year as possible. 27.36 Sec. 29. Minnesota Statutes 1998, section 127A.47, 28.1 subdivision 7, is amended to read: 28.2 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 28.3 education aid for districts must be adjusted for each pupil 28.4 attending a nonresident district under sections 123A.05 to 28.5 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68. The 28.6 adjustments must be made according to this subdivision. 28.7 (a) General education aid paid to a resident district must 28.8 be reduced by an amount equal to the general education revenue 28.9 exclusive of basic skills revenue attributable to the pupil in 28.10 the resident district. 28.11 (b) General education aid paid to a district serving a 28.12 pupil in programs listed in this subdivision must be increased 28.13 by an amount equal to the general education revenue exclusive of 28.14 basic skills revenue attributable to the pupil in the 28.15 nonresident district. 28.16 (c) If the amount of the reduction to be made from the 28.17 general education aid of the resident district is greater than 28.18 the amount of general education aid otherwise due the district, 28.19 the excess reduction must be made from other state aids due the 28.20 district. 28.21 (d) The district of residence must pay tuition to a 28.22 district or an area learning center, operated according to 28.23 paragraph (e), providing special instruction and services to a 28.24 pupil with a disability, as defined in section 125A.02, or a 28.25 pupil, as defined in section 125A.51, who is enrolled in a 28.26 program listed in this subdivision. The tuition must be equal 28.27 to (1) the actual cost of providing special instruction and 28.28 services to the pupil, including a proportionate amount for debt 28.29 service and for capital expenditure facilities and equipment, 28.30 and debt service but not including any amount for 28.31 transportation, minus (2) the amount of general education 28.32aidrevenue and special education aid but not including any 28.33 amount for transportation, attributable to that pupil, that is 28.34 received by the district providing special instruction and 28.35 services. 28.36 (e) An area learning center operated by a service 29.1 cooperative, intermediate district, education district, or a 29.2 joint powers cooperative may elect through the action of the 29.3 constituent boards to charge tuition for pupils rather than to 29.4 calculate general education aid adjustments under paragraph (a), 29.5 (b), or (c). The tuition must be equal to the greater of the 29.6 average general education revenue per pupil unit attributable to 29.7 the pupil, or the actual cost of providing the instruction, 29.8 excluding transportation costs, if the pupil meets the 29.9 requirements of section 125A.02 or 125A.51. 29.10 Sec. 30. Laws 1996, chapter 412, article 1, section 35, is 29.11 amended to read: 29.12 Sec. 35. [REPEALER.] 29.13 Laws 1993, chapter 224, article 1, section 34, subdivision 29.14 1, is repealed.Section 8 is repealed July 1, 1999.29.15 (Effective Date: Section 30 (Laws 1996, chapter 412, 29.16 article 1, section 35) is effective the day following final 29.17 enactment.) 29.18 Sec. 31. Laws 1997, First Special Session chapter 4, 29.19 article 1, section 61, subdivision 1, is amended to read: 29.20 Subdivision 1. [REVENUE CONVERSION.] For taxes payable in 29.21 1998 and 1999, the commissioner of children, families, and 29.22 learning shall adjust each school district's revenue authority 29.23 that is established as a rate times net tax capacity or adjusted 29.24 net tax capacity under Minnesota Statutes, chapters124 and 124A29.25 120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 29.26 multiplying each revenue amount by the ratio of the statewide 29.27 tax capacity as calculated using the class rates in effect for 29.28 assessment year 1996 to the statewide tax capacity using the 29.29 class rates for that assessment year. Tax rates for referendum 29.30 revenues according to Minnesota Statutes, section 126C.17, and 29.31 operating debt levies according to Minnesota Statutes, section 29.32 126C.42, established for an individual district under this 29.33 subdivision for taxes payable in 1999 shall remain in effect for 29.34 later years for which the revenue is authorized to be computed 29.35 as a rate times net tax capacity or adjusted net tax capacity. 29.36 (Effective Date: Section 31 (Laws 1997, First Special 30.1 Session chapter 4, article 1, section 61, subdivision 1) is 30.2 effective the day following final enactment.) 30.3 Sec. 32. Laws 1997, First Special Session chapter 4, 30.4 article 1, section 61, subdivision 2, is amended to read: 30.5 Subd. 2. [TAX RATE ADJUSTMENT.] For taxes payable in 1998 30.6 and 1999, the commissioner shall adjust each tax rate 30.7 established under Minnesota Statutes, chapters124 and 124A30.8 120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 30.9 multiplying the rate by the ratio of the statewide tax capacity 30.10 as calculated using the class rates in effect for assessment 30.11 year 1996 to the statewide tax capacity using the class rates 30.12 for that assessment year. 30.13 (Effective Date: Section 32 (Laws 1997, First Special 30.14 Session chapter 4, article 1, section 61, subdivision 2) is 30.15 effective the day following final enactment.) 30.16 Sec. 33. Laws 1997, First Special Session chapter 4, 30.17 article 1, section 61, subdivision 3, as amended by Laws 1998, 30.18 chapter 398, article 1, section 41, is amended to read: 30.19 Subd. 3. [EQUALIZING FACTORS.] For taxes payable in 1998 30.20 and 1999, the commissioner shall adjust each equalizing factor 30.21 established using adjusted net tax capacity per actual pupil 30.22 unit under Minnesota Statutes, chapters124 and 124A120B, 122A, 30.23 123A, 123B, 124D, 125A, 126C, and 127A, by dividing the 30.24 equalizing factor by the ratio of the statewide tax capacity as 30.25 calculated using the class rates in effect for assessment year 30.26 1996 to the statewide tax capacity using the class rates for 30.27 that assessment year. 30.28 (Effective Date: Section 33 (Laws 1997, First Special 30.29 Session chapter 4, article 1, section 61, subdivision 3) is 30.30 effective the day following final enactment.) 30.31 Sec. 34. Laws 1997, First Special Session chapter 4, 30.32 article 1, section 61, subdivision 4, is amended to read: 30.33 Subd. 4. [QUALIFYING RATE.] For taxes payable in 1998 and 30.34 1999, the commissioner shall adjust the qualifying rate under 30.35 Minnesota Statutes, section 124.95, subdivision 3, by 30.36 multiplying the qualifying rate times the ratio of the statewide 31.1 tax capacity, as calculated using the class rates in effect for 31.2 assessment year 1996, to the statewide tax capacity using the 31.3 class rates for that assessment year. 31.4 (Effective Date: Section 34 (Laws 1997, First Special 31.5 Session chapter 4, article 1, section 61, subdivision 4) is 31.6 effective the day following final enactment.) 31.7 Sec. 35. Laws 1998, chapter 397, article 12, section 8, is 31.8 amended to read: 31.9 Sec. 8. [FORMULA ALLOWANCE.] 31.10 For fiscalyear 2000years 2001 and later, the basic 31.11 formula allowance under Minnesota Statutes, section 124A.22, 31.12 subdivision 2, isincreased by $67$3,597 peractualresident 31.13 pupil unit for purposes of calculating compensatory revenueand31.14sparsity revenueunder Minnesota Statutes, section124A.2231.15 126C.10. 31.16 (Effective Date: Section 35 (Laws 1998, chapter 397, 31.17 article 12, section 8) is effective for revenue for fiscal year 31.18 2000 and later.) 31.19 Sec. 36. [FUND TRANSFERS.] 31.20 Subdivision 1. [MONTICELLO.] Notwithstanding Minnesota 31.21 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 31.22 on June 30, 1999, independent school district No. 882, 31.23 Monticello, may permanently transfer up to $400,000 from its 31.24 debt redemption fund to its general fund. 31.25 Subd. 2. [WHITE BEAR LAKE.] Notwithstanding Minnesota 31.26 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 31.27 on June 30, 1999, independent school district No. 624, White 31.28 Bear Lake, may permanently transfer up to $400,000 from its debt 31.29 redemption fund to its general fund. 31.30 Subd. 3. [OKLEE.] Notwithstanding Minnesota Statutes, 31.31 section 123B.53, on June 30, 1999, independent school district 31.32 No. 627, Oklee, may permanently transfer $44,300 from its debt 31.33 service fund to its general fund. 31.34 Subd. 4. [DEER RIVER.] Notwithstanding Minnesota Statutes, 31.35 sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 31.36 30, 1999, independent school district No. 317, Deer River, may 32.1 permanently transfer up to $315,000 from the debt redemption 32.2 fund to its building construction fund without making a levy 32.3 reduction. 32.4 (Effective Date: Section 36 is effective the day following 32.5 final enactment.) 32.6 Sec. 37. [APPROPRIATIONS.] 32.7 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 32.8 LEARNING.] The sums indicated in this section are appropriated 32.9 from the general fund to the department of children, families, 32.10 and learning for the fiscal years designated. 32.11 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 32.12 general and supplemental education aid: 32.13 $3,023,263,000 ..... 2000 32.14 $3,147,732,000 ..... 2001 32.15 The 2000 appropriation includes $272,186,000 for 1999 and 32.16 $2,751,077,000 for 2000. 32.17 The 2001 appropriation includes $295,242,000 for 2000 and 32.18 $2,852,490,000 for 2001. 32.19 Subd. 3. [TRANSPORTATION SAFETY.] For student 32.20 transportation safety aid according to Minnesota Statutes, 32.21 section 123B.92, subdivision 4: 32.22 $144,000 ..... 2000 32.23 The 2000 appropriation includes $144,000 for 1999. 32.24 Subd. 4. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 32.25 transportation of pupils attending post-secondary institutions 32.26 according to Minnesota Statutes, section 124D.09, or for 32.27 transportation of pupils attending nonresident districts 32.28 according to Minnesota Statutes, section 124D.03: 32.29 $102,000 ..... 2000 32.30 $102,000 ..... 2001 32.31 Any balance in the first year does not cancel but is 32.32 available in the second year. 32.33 Subd. 5. [DISTRICT COOPERATION REVENUE.] For district 32.34 cooperation revenue aid: 32.35 $5,537,000 ..... 2000 32.36 $ 518,000 ..... 2001 33.1 The 2000 appropriation includes $869,000 for 1999 and 33.2 $4,668,000 for 2000. 33.3 The 2001 appropriation includes $518,000 for 2000 and $0 33.4 for 2001. 33.5 Sec. 38. [REPEALER.] 33.6 (a) Minnesota Statutes 1998, sections 123B.92, subdivisions 33.7 2, 6, 7, 8, and 10; 124D.67; 126C.05, subdivision 4; and 33.8 126C.06, are repealed. Laws 1997, First Special Session chapter 33.9 4, article 1, section 62, subdivision 5, is repealed. 33.10 (b) Minnesota Statutes 1998, section 123B.92, subdivision 33.11 4, is repealed effective for revenue for fiscal year 2000. 33.12 (c) Minnesota Statutes 1998, section 120B.05, is repealed 33.13 effective for revenue for fiscal year 2000 and later. 33.14 (d) Minnesota Statutes 1998, section 123B.05, is repealed. 33.15 Sec. 39. [EFFECTIVE DATES.] 33.16 When preparing the prekindergarten through grade 12 33.17 education conference committee report for adoption by the 33.18 legislature, the revisor shall combine all effective date 33.19 notations in this article into this effective dates section. 33.20 ARTICLE 2 33.21 SPECIAL PROGRAMS 33.22 Section 1. Minnesota Statutes 1998, section 121A.23, is 33.23 amended to read: 33.24 121A.23 [HEALTH-RELATED PROGRAMS.] 33.25 Subdivision 1. [AIDS, HPV, and STI PROGRAM.] The 33.26 commissioner of children, families, and learning, in 33.27 consultation with the commissioner of health,shallmay assist 33.28 districts in developing and implementing a program to prevent 33.29 and reduce the risk of acquired immune deficiency 33.30 syndrome (AIDS), human papilloma virus (HPV), and sexually 33.31 transmitted infection (STI). Each district must have a program 33.32 that includes at least: 33.33 (1) planning materials, guidelines, and other technically 33.34 accurate and updated information; 33.35 (2) a comprehensive, technically accurate, and updated 33.36 curriculum that includes helping students to abstain from sexual 34.1 activity until marriage; 34.2 (3) cooperation and coordination among districts and SCs; 34.3 (4) a targeting of adolescents,especially thosewho may be 34.4 at high risk of contracting AIDS, HPV, and STI, for prevention 34.5 efforts; 34.6 (5) involvement of parents and other community members; 34.7 (6) in-service training for appropriate district staff and 34.8 school board members; 34.9 (7) collaboration with state agencies and organizations 34.10 having an AIDS, HPV, or STI prevention or AIDS, HPV, or STI risk 34.11 reduction program; 34.12 (8) collaboration with local community health services, 34.13 agencies and organizations having an AIDS, HPV, or STI 34.14 prevention or AIDS, HPV, or STI risk reduction program; and 34.15 (9) participation by state and local student organizations. 34.16 The department may provide assistance at a neutral site to 34.17 a nonpublic school participating in a district's program. 34.18 District programs must not conflict with the health and wellness 34.19 curriculum developed under Laws 1987, chapter 398, article 5, 34.20 section 2, subdivision 7. 34.21 If a district fails to develop and implement a program to 34.22 prevent and reduce the risk of AIDS, HPV, or STI, the department 34.23mustmay assist the service cooperative in the region serving 34.24 that district to develop or implement the program. A 34.25 district-sponsored community education program may satisfy the 34.26 requirements of this subdivision. 34.27 Subd. 2. [FUNDING SOURCES.] Districts may accept funds for 34.28 AIDS, HPV, or STI programs developed and implemented under this 34.29 section from public and private sources including public health 34.30 funds and foundations, department professional development 34.31 funds, federal block grants or other federal or state grants. 34.32 Sec. 2. Minnesota Statutes 1998, section 122A.28, is 34.33 amended to read: 34.34 122A.28 [TEACHERS OF DEAF AND HARD-OF-HEARING STUDENTS; 34.35 LICENSURE REQUIREMENTS.] 34.36 Subdivision 1. [K-12 LICENSE TO TEACH DEAF AND 35.1 HARD-OF-HEARING STUDENTS.] The board of teaching must review and 35.2 determine appropriate licensure requirements for a candidate for 35.3 a license or an applicant for a continuing license to teach deaf 35.4 and hard-of-hearing students in prekindergarten through grade 12. 35.5 In addition to other requirements, a candidate must demonstrate 35.6 the minimum level of proficiency in American sign language as 35.7 determined by the board. 35.8 Subd. 2. [LICENSURE FOR TEACHING ORAL/AURAL DEAF EDUCATION 35.9 PROGRAMS.] (a) The board of teaching shall adopt a separate 35.10 licensure rule for a candidate for a license or an applicant for 35.11 programs or to provide services, including itinerant oral/aural 35.12 deaf education services, to deaf and hard-of-hearing students in 35.13 prekindergarten through grade 12. 35.14 (b) The board shall design rule requirements for teaching 35.15 oral/aural deaf education in collaboration with representatives 35.16 of parents and educators of deaf and hard-of-hearing students, 35.17 post-secondary programs preparing teachers of deaf and 35.18 hard-of-hearing students, and the department of children, 35.19 families, and learning. 35.20 (c) Rule requirements for teaching oral/aural deaf 35.21 education shall reflect best practice research in oral/aural 35.22 deaf education. Advanced competencies in teaching deaf and 35.23 hard-of-hearing students through oral/aural modes shall be 35.24 included. 35.25 (d) Licensure requirements for teachers of oral/aural deaf 35.26 education must include minimum competency in American sign 35.27 language, but are not subject to the guidelines established in 35.28 Laws 1993, chapter 224, article 3, section 32, as amended by 35.29 Laws 1998, chapter 398, article 2, section 47. The signed 35.30 communication proficiency interview shall not be required for 35.31 teachers licensed to teach deaf and hard-of-hearing students 35.32 through oral/aural deaf education methods. 35.33 (e) Requirements for teachers of oral/aural deaf education 35.34 shall include appropriate continuing education requirements for 35.35 renewing this licensure. 35.36 Sec. 3. Minnesota Statutes 1998, section 123A.05, 36.1 subdivision 2, is amended to read: 36.2 Subd. 2. [RESERVE REVENUE.] Each district that is a member 36.3 of an area learning center must reserve revenue in an amount 36.4 equal to at least 90 percent of the district average general 36.5 education revenueless compensatoryper pupil unit minus an 36.6 amount equal to the product of the formula allowance according 36.7 to section 126C.10, subdivision 2, times .0485, calculated 36.8 without basic skills revenueunit, transportation sparsity 36.9 revenue, and the transportation portion of the transition 36.10 revenue adjustment, times the number of pupil units attending an 36.11 area learning center program under this section. The amount of 36.12 reserved revenue under this subdivision may only be spent on 36.13 program costs associated with the area learning center. 36.14 Compensatory revenue must be allocated according to section 36.15 126C.15, subdivision 2. 36.16 Sec. 4. Minnesota Statutes 1998, section 123B.75, is 36.17 amended by adding a subdivision to read: 36.18 Subd. 6a. [INTEGRATION AID.] Integration aid received 36.19 under section 127A.45, subdivision 12a, must be recognized in 36.20 the same fiscal year as the integration levy. 36.21 (Effective Date: Section 4 (123B.75, subdivision 6a) is 36.22 effective the day following final enactment for revenue for 36.23 fiscal year 1999 and later.) 36.24 Sec. 5. Minnesota Statutes 1998, section 124D.454, is 36.25 amended to read: 36.26 124D.454 [ACCESS TO MINNESOTA'SSCHOOL-TO-WORKCAREER AND 36.27 TECHNICAL SYSTEM FOR CHILDREN WITH A DISABILITY.] 36.28 Subdivision 1. [PURPOSE.] The purpose of this section is 36.29 to provide a method to fundschool-to-workcareer and technical 36.30 programs for children with a disability. As used in this 36.31 section, the term "children with a disability" shall have the 36.32 meaning ascribed to it in section 125A.02. 36.33 Subd. 2. [DEFINITIONS.] For the purposes of this section 36.34 and section 125A.77, the definitions in this subdivision apply. 36.35 (a) "Base year" for fiscal year 1996 means fiscal year 1995. 36.36 Base year for later fiscal years means the second fiscal year 37.1 preceding the fiscal year for which aid will be paid. 37.2 (b) "Basic revenue" has the meaning given it in section 37.3 126C.10, subdivision 2. For the purposes of computing basic 37.4 revenuepursuant tounder this section, each child with a 37.5 disability shall be counted as prescribed in section 126C.05, 37.6 subdivision 1. 37.7 (c) "Average daily membership" has the meaning given it in 37.8 section 126C.05. 37.9 (d) "Program growth factor" means 1.00 for fiscal year 1998 37.10 and later. 37.11 (e) "Aid percentage factor" means 60 percent for fiscal 37.12 year 1996, 70 percent for fiscal year 1997, 80 percent for 37.13 fiscal year 1998, 90 percent for fiscal year 1999, and 100 37.14 percent for fiscal year 2000 and later. 37.15 Subd. 3. [BASE REVENUE.] (a) Theschool-to-workcareer and 37.16 technical program-disabled base revenue equals the sum of the 37.17 following amounts computed using base year data: 37.18 (1) 68 percent of the salary of each essential licensed 37.19 person who provides direct instructional services to students 37.20 employed during that fiscal year for services rendered in that 37.21 district'sschool-to-workcareer and technical program for 37.22 children with a disability; 37.23 (2) 47 percent of the costs of necessary equipment for 37.24school-to-workcareer and technical programs for children with a 37.25 disability; 37.26 (3) 47 percent of the costs of necessary travel between 37.27 instructional sites byschool-to-workcareer and technical 37.28 program teachers of children with a disability but not including 37.29 travel to and from local, regional, district, state, or national 37.30 vocational student organization meetings; 37.31 (4) 47 percent of the costs of necessary supplies for 37.32school-to-workcareer and technical programs for children with a 37.33 disability but not to exceed an average of $47 in any one school 37.34 year for each child with a disability receiving these services; 37.35 (5) forschool-to-workcareer and technical programs for 37.36 children with disabilities provided by a contract approved by 38.1 the commissioner with public, private, or voluntary agencies 38.2 other than a Minnesota school district or cooperative center, in 38.3 place of programs provided by the district, 52 percent of the 38.4 difference between the amount of the contract and the basic 38.5 revenue of the district for that pupil for the fraction of the 38.6 school day the pupil receives services under the contract; 38.7 (6) forschool-to-workcareer and technical programs for 38.8 children with disabilities provided by a contract approved by 38.9 the commissioner with public, private, or voluntary agencies 38.10 other than a Minnesota school district or cooperative center, 38.11 that are supplementary to a full educational program provided by 38.12 the school district, 52 percent of the amount of the contract; 38.13 and 38.14 (7) for a contract approved by the commissioner with 38.15 another Minnesota school district or cooperative center for 38.16 vocational evaluation services for children with a disability 38.17 for children that are not yet enrolled in grade 12, 52 percent 38.18 of the amount of the contract. 38.19 (b) If requested by a school district forschool-to-work38.20 career and technical programs during the base year for less than 38.21 the full school year, the commissioner may adjust the base 38.22 revenue to reflect the expenditures that would have occurred 38.23 during the base year had the program been operated for the full 38.24 year. 38.25 Subd. 4. [ADJUSTEDSECONDARY VOCATIONALCAREER AND 38.26 TECHNICAL-DISABLED BASE REVENUE.] For fiscal year 1996 and 38.27 later, a district's adjustedsecondary vocationalcareer and 38.28 technical-disabled base revenue equals the district'ssecondary38.29vocationalcareer and technical-disabled base revenue times the 38.30 ratio of the district's average daily membership for the current 38.31 school year to the district's average daily membership for the 38.32 base year. 38.33 Subd. 5. [STATE TOTALSCHOOL-TO-WORKCAREER AND TECHNICAL 38.34 PROGRAM-DISABLED REVENUE.] The state totalschool-to-workcareer 38.35 and technical program-disabled revenue for fiscal year19982000 38.36 equals$8,924,000$8,982,000. The state total 39.1school-to-workcareer and technical program-disabled revenue for 39.2 fiscal year19992001 equals$8,976,000$8,966,000. The state 39.3 totalschool-to-workcareer and technical program-disabled 39.4 revenue for later fiscal years equals: 39.5 (1) the state totalschool-to-workcareer and technical 39.6 program-disabled revenue for the preceding fiscal year; times 39.7 (2) the program growth factor; times 39.8 (3) the ratio of the state total average daily membership 39.9 for the current fiscal year to the state total average daily 39.10 membership for the preceding fiscal year. 39.11 Subd. 6. [SCHOOL DISTRICTSECONDARY VOCATIONALCAREER AND 39.12 TECHNICAL-DISABLED REVENUE.] (a) A school district'ssecondary39.13vocationalcareer and technical-disabled revenue for fiscal year 39.14 1996 and later equals the state totalsecondary39.15vocationalcareer and technical-disabled revenue, minus the 39.16 amount determined under paragraph (b), times the ratio of the 39.17 district's adjustedsecondary vocationalcareer and 39.18 technical-disabled base revenue to the state total 39.19 adjustedsecondary vocationalcareer and technical-disabled base 39.20 revenue. 39.21 (b) Notwithstanding paragraph (a), if thesecondary39.22vocationalcareer and technical-disabled base revenue for a 39.23 district equals zero and no district residents were enrolled 39.24 insecondary vocationalcareer and technical-disabled programs 39.25 during the base year, thesecondary vocationalcareer and 39.26 technical-disabled revenue equals the amount computed according 39.27 to subdivision 3 using current year data. 39.28 Subd. 7. [SCHOOL DISTRICTSECONDARY VOCATIONALCAREER AND 39.29 TECHNICAL-DISABLED AID.] A school district'ssecondary39.30vocationalcareer and technical-disabled aid for fiscal year 39.31 1996 and later equals the district'ssecondary vocationalcareer 39.32 and technical-disabled revenue times the aid percentage factor 39.33 for that year. 39.34 Subd. 8. [USE OF AID.] The aid providedpursuant tounder 39.35 this section shall be paid only for services rendered as 39.36 designated in subdivision 2 or for the costs designated in 40.1 subdivision 3 which are incurred inschool-to-workcareer and 40.2 technical programs for children with a disability which are 40.3 approved by the commissioner of children, families, and learning 40.4 and operatedin accordance withaccording to rules promulgated 40.5 by the state board. These rulesshall beare subject to the 40.6 restrictions provided in section 124D.453, subdivision 6. The 40.7 procedure for application for approval of these programs shall 40.8 be as provided in section 125A.75, subdivisions 4 and 6, and the 40.9 application review process shall be conducted by the office of 40.10 lifework development in the department. 40.11 Subd. 9. [PAYMENT OF AID.] All aidpursuant tounder this 40.12 section shall be paid to the district or cooperative center 40.13 providing the services. All aid received by a district or 40.14 center from any source forschool-to-workcareer and technical 40.15 programs for children with a disability shall beutilizedused 40.16 solely for that purpose. 40.17 Subd. 10. [EXCLUSION.] A district shall not receive 40.18 aidpursuant tounder section 124D.453, 125A.76, or 125A.77 for 40.19 salaries, supplies, travel or equipment for which the district 40.20 receives aidpursuant tounder this section. 40.21 Subd. 11. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 40.22 INTERMEDIATE DISTRICTS.] For purposes of this section and 40.23 section 125A.77, a cooperative center or an intermediate 40.24 district must allocate its approved expenditures for 40.25school-to-workcareer and technical programs for children with a 40.26 disability among participating school districts. Aid 40.27 forschool-to-workcareer and technical programs for children 40.28 with a disability for services provided by a cooperative or 40.29 intermediate district shall be paid to the participating 40.30 districts. 40.31 Sec. 6. Minnesota Statutes 1998, section 124D.87, is 40.32 amended to read: 40.33 124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 40.34 TRANSPORTATIONGRANTSAID.] 40.35 (a) A district that provides transportation of pupils to 40.36 and from an interdistrict program for desegregation or 41.1 integration purposesmay apply to the commissioneris eligible 41.2 fora grantstate aid to cover the additional costs of 41.3 transportation. 41.4 (b) A district in the metropolitan area may apply to the 41.5 commissioner fora grantstate aid to cover the costs of 41.6 transporting pupils who are enrolled under section 124D.03 if 41.7 the enrollment of the student in the nonresident district 41.8 contributes to desegregation or integration purposes. The 41.9 commissioner shall develop the form and manner of 41.10 applications for state aid, the criteria to be used to determine 41.11 when transportation is for desegregation or integration 41.12 purposes, and the accounting procedure to be used to determine 41.13 excess costs. In determiningthe grant amountaid amounts, the 41.14 commissioner shall consider other revenue received by the 41.15 district for transportation for desegregation or integration 41.16 purposes. 41.17 (c)Grants may be awardedAid must be paid under paragraph 41.18 (b) only ifgrants awardedaid amounts under paragraph (a) have 41.19 been fully funded. 41.20 Sec. 7. Minnesota Statutes 1998, section 125A.09, 41.21 subdivision 4, is amended to read: 41.22 Subd. 4. [DISPUTE RESOLUTION.] Parents and guardians must 41.23 have an opportunity to meet with appropriate district staff in 41.24 at least one conciliation conference, mediation, or other method 41.25 of alternative dispute resolution that the parties agree to, if 41.26 they object to any proposal of which they are notified under 41.27 subdivision 1. The state intends to encourage parties to 41.28 resolve disputes through mediation or other form of alternative 41.29 dispute resolution. A school district and a parent or guardian 41.30 must participate in mediation using mediation services 41.31 acceptable to both parties, unless a party objects to the 41.32 mediation. Mediation shall remain available to the parties 41.33 until a party objects to the mediation, or the mediator 41.34 determines that further efforts to mediate a dispute are not 41.35 warranted. All mediation is subject to the confidentiality 41.36 requirements under rule 114.08 of the general rules of practice 42.1 for the district courts. Alternative dispute resolution must 42.2 not be used to deny or delay a parent or guardian's right to a 42.3 due process hearing. If the parent or guardian refuses efforts 42.4 by the district to conciliate the dispute with the district, the 42.5 requirement of an opportunity for conciliation or other 42.6 alternative dispute resolution must be deemed to be satisfied. 42.7 Notwithstanding other law, in any proceeding following a 42.8 conciliation conference, the district must not offer a 42.9 conciliation conference memorandum into evidence, except for any 42.10 portions that describe the district's final proposed offer of 42.11 service. Otherwise, with respect to forms of dispute 42.12 resolution, mediation, or conciliation, Minnesota Rule of 42.13 Evidence 408 applies.The department may reimburse the42.14districts or directly pay the costs of lay advocates, not to42.15exceed $150 per dispute, used in conjunction with alternative42.16dispute resolution.42.17 Sec. 8. [125A.155] [PLACEMENT IN ANOTHER STATE; SPECIAL 42.18 EDUCATION RECIPROCITY; COMMISSIONER DUTIES.] The commissioner of 42.19 children, families, and learning must develop a special 42.20 education reciprocity agreement form. The reciprocity form must 42.21 specify the procedures used to calculate special education 42.22 tuition charges for both Minnesota students that are served in 42.23 other states and for out-of-state students who are served in 42.24 Minnesota. The commissioner shall attempt to enter into 42.25 reciprocity agreements with any state that sends students to 42.26 Minnesota and any state that provides services to Minnesota 42.27 students. 42.28 Sec. 9. Minnesota Statutes 1998, section 125A.50, 42.29 subdivision 2, is amended to read: 42.30 Subd. 2. [APPLICATION CONTENTS.] The application must set 42.31 forth: 42.32 (1) instructional services available to eligible pupils 42.33 under section124D.67124D.66, subdivision32, and pupils with 42.34 a disability under section 125A.02; 42.35 (2) criteria to select pupils for the program and the 42.36 assessment procedures to determine eligibility; 43.1 (3) involvement in the program of parents of pupils in the 43.2 program, parent advocates, and community special education 43.3 advocates; 43.4 (4) accounting procedures to document that federal special 43.5 education money is used to supplement or increase the level of 43.6 special education instruction and related services provided with 43.7 state and local revenue, but in no case to supplant the state 43.8 and local revenue, and that districts are expending at least the 43.9 amount for special education instruction and related services 43.10 required by federal law; 43.11 (5) the role of regular and special education teachers in 43.12 planning and implementing the program; and 43.13 (6) other information requested by the commissioner. 43.14 Sec. 10. Minnesota Statutes 1998, section 125A.50, 43.15 subdivision 5, is amended to read: 43.16 Subd. 5. [ANNUAL REPORT.] Each year the district must 43.17 submit to the commissioner a report containing the information 43.18 described in subdivision 3and section 124D.67, subdivision 7. 43.19 Sec. 11. Minnesota Statutes 1998, section 125A.75, 43.20 subdivision 8, is amended to read: 43.21 Subd. 8. [LITIGATION AND HEARING COSTS.] (a) For fiscal 43.22 year 1999 and thereafter, the commissioner of children, 43.23 families, and learning, or the commissioner's designee, shall 43.24 use state funds to pay school districts for the administrative 43.25 costs of a due process hearing incurred under section 125A.09, 43.26 subdivisions 6, 10, and 11, including hearing officer fees, 43.27 court reporter fees, mileage costs, transcript 43.28 costs, interpreter and transliterator fees, independent 43.29 evaluations ordered by the hearing officer, and rental of 43.30 hearing rooms, but not including district attorney fees. To 43.31 receive state aid under this paragraph, a school district shall 43.32 submit to the commissionerat the end of the school yearby 43.33 August 1 an itemized list of unreimbursed actual costs for fees 43.34 and other expenses under this paragraph incurred after June 30, 43.35 1998, for hearings completed during the previous fiscal year. 43.36 State funds used for aid to school districts under this 44.1 paragraph shall be based on the unreimbursed actual costs and 44.2 fees submitted by a districtfrom previous school years. 44.3(b) For fiscal year 1999 and thereafter, a school district,44.4to the extent to which it prevails under United States Code,44.5title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal44.6Rules of Civil Procedure, shall receive state aid equal to 5044.7percent of the total actual cost of attorney fees incurred after44.8a request for a due process hearing under section 125A.09,44.9subdivisions 6, 9, and 11, is served upon the parties. A44.10district is eligible for reimbursement for attorney fees under44.11this paragraph only if:44.12(1) a court of competent jurisdiction determines that the44.13parent is not the prevailing party under United States Code,44.14title 20, section 1415(i)(3)(B)(D), or the parties stipulate44.15that the parent is not the prevailing party;44.16(2) the district has made a good faith effort to resolve44.17the dispute through mediation, but the obligation to mediate44.18does not compel the district to agree to a proposal or make a44.19concession; and44.20(3) the district made an offer of settlement under Rule 6844.21of the Federal Rules of Civil Procedure.44.22To receive aid, a school district that meets the criteria44.23of this paragraph shall submit to the commissioner at the end of44.24the school year an itemized list of unreimbursed actual attorney44.25fees associated with a due process hearing under section44.26125A.09, subdivisions 6, 9, and 11. Aid under this paragraph44.27for each school district is based on unreimbursed actual44.28attorney fees submitted by the district from previous school44.29years.44.30(c) For fiscal year 1999 and thereafter, a school district44.31is eligible to receive state aid for 50 percent of the total44.32actual cost of attorney fees it incurs in appealing to a court44.33of competent jurisdiction the findings, conclusions, and order44.34of a due process hearing under section 125A.09, subdivisions 6,44.359, and 11. The district is eligible for reimbursement under44.36this paragraph only if the commissioner authorizes the45.1reimbursement after evaluating the merits of the case. In a45.2case where the commissioner is a named party in the litigation,45.3the commissioner of the bureau of mediation services shall make45.4the determination regarding reimbursement. The commissioner's45.5decision is final.45.6(d)(b) The commissioner shall provide districts with a 45.7 form on which to annually report litigation costs under this 45.8 section and shall base aid estimates onthosepreliminary 45.9 reports submitted by the district during the current fiscal year. 45.10 Sec. 12. Minnesota Statutes 1998, section 125A.76, 45.11 subdivision 1, is amended to read: 45.12 Subdivision 1. [DEFINITIONS.] For the purposes of this 45.13 sectionand section 125A.77, the definitions in this subdivision 45.14 apply. 45.15 (a) "Base year" for fiscal year 1998 and later fiscal years 45.16 means the second fiscal year preceding the fiscal year for which 45.17 aid will be paid. 45.18 (b) "Basic revenue" has the meaning given it in section 45.19 126C.10, subdivision 2. For the purposes of computing basic 45.20 revenue pursuant to this section, each child with a disability 45.21 shall be counted as prescribed in section 126C.05, subdivision 1. 45.22 (c) "Essential personnel" means teachers, related services, 45.23 and support services staff providing direct services to students. 45.24 (d) "Average daily membership" has the meaning given it in 45.25 section 126C.05. 45.26 (e) "Program growth factor" means1.001.02 for fiscal year 45.2720002002 and later. 45.28(f) "Aid percentage factor" means 60 percent for fiscal45.29year 1996, 70 percent for fiscal year 1997, 80 percent for45.30fiscal year 1998, 90 percent for fiscal year 1999, and 10045.31percent for fiscal years 2000 and later.45.32(g) "Levy percentage factor" means 100 minus the aid45.33percentage factor for that year.45.34 Sec. 13. Minnesota Statutes 1998, section 125A.76, 45.35 subdivision 4, is amended to read: 45.36 Subd. 4. [STATE TOTAL SPECIAL EDUCATIONREVENUEAID.] The 46.1 state total special educationrevenueaid for fiscal year199846.2 2000 equals$358,542,000$463,000,000. The state total special 46.3 educationrevenueaid for fiscal year19992001 equals 46.4$435,322,000$474,000,000. The state total special 46.5 educationrevenueaid for later fiscal years equals: 46.6 (1) the state total special educationrevenueaid for the 46.7 preceding fiscal year; times 46.8 (2) the program growth factor; times 46.9 (3) the ratio of the state total average daily membership 46.10 for the current fiscal year to the state total average daily 46.11 membership for the preceding fiscal year. 46.12 Sec. 14. Minnesota Statutes 1998, section 125A.76, 46.13 subdivision 5, is amended to read: 46.14 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATIONREVENUEAID.] 46.15 (a) A school district's special educationrevenueaid for fiscal 46.16 year19962000 and later equals the state total special 46.17 educationrevenueaid, minus the amount determined under 46.18paragraphparagraphs (b) and (c), times the ratio of the 46.19 district's adjusted special education base revenue to the state 46.20 total adjusted special education base revenue. If the state 46.21 board of education modifies its rules for special education in a 46.22 manner that increases a district's special education obligations 46.23 or service requirements, the commissioner shall annually 46.24 increase each district's special educationrevenueaid by the 46.25 amount necessary to compensate for the increased service 46.26 requirements. The additionalrevenueaid equals the cost in the 46.27 current year attributable to rule changes not reflected in the 46.28 computation of special education base revenue, multiplied by the 46.29 appropriate percentages from subdivision 2. 46.30 (b) Notwithstanding paragraph (a), if the special education 46.31 base revenue for a district equals zero, the special education 46.32revenueaid equals the amount computed according to subdivision 46.33 2 using current year data. 46.34 (c) Notwithstanding paragraphs (a) and (b), if the special 46.35 education base revenue for a district is greater than zero, and 46.36 the base year amount for the district under subdivision 2, 47.1 paragraph (a), clause (7), equals zero, the special education 47.2revenueaid equals the sum of the amount computed according to 47.3 paragraph (a), plus the amount computed according to subdivision 47.4 2, paragraph (a), clause (7), using current year data. 47.5 Sec. 15. Minnesota Statutes 1998, section 125A.79, 47.6 subdivision 1, is amended to read: 47.7 Subdivision 1. [DEFINITIONS.] For the purposes of this 47.8 section, the definitions in this subdivision apply. 47.9 (a) "Unreimbursed special education cost" means the sum of 47.10 the following: 47.11 (1) expenditures for teachers' salaries, contracted 47.12 services, supplies, equipment, and transportation services 47.13 eligible for revenue under section 125A.76; plus 47.14 (2) expenditures for tuition bills received under sections 47.15 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 47.16 under sections 125A.76, subdivision 2, and 124.3202, subdivision 47.17 1; minus 47.18 (3) revenue for teachers' salaries, contracted services, 47.19 supplies, and equipment under sections 124.3202 and 124A.76; 47.20 minus 47.21 (4) tuition receipts under sections 125A.03 to 125A.24 and 47.22 125A.65 for services eligible for revenue under sections 47.23 124.3202, subdivision 1, and 124A.76, subdivision 2. 47.24 (b) "General revenue" means for fiscal year 1996, the sum 47.25 of the general education revenue according to section 126C.10, 47.26 subdivision 1, as adjusted according to section 127A.47, 47.27 subdivision 7, plus the total referendum revenue according to 47.28 section 126C.17, subdivision 4. For fiscal years 1997 and 47.29 later, "general revenue" means the sum of the general education 47.30 revenue according to section 126C.10, subdivision 1, as adjusted 47.31 according to section 127A.47,subdivisionsubdivisions 7 and 8, 47.32 plus the total referendum revenue minus transportation sparsity 47.33 revenue minus total operating capital revenue. 47.34 (c) "Average daily membership" has the meaning given it in 47.35 section 126C.05. 47.36 (d) "Program growth factor" means 1.044 for fiscal year 48.1 2002 and 1.02 for fiscal year 2003 and later. 48.2 Sec. 16. Minnesota Statutes 1998, section 125A.79, 48.3 subdivision 2, is amended to read: 48.4 Subd. 2. [EXCESS COSTREVENUEAID, FISCAL YEARS 2000 AND 48.5 2001.] For1997 and laterfiscal years 2000 and 2001, a 48.6 district's special education excess costrevenueaid equals the 48.7 greatest of: 48.8 (a) 70 percent of the difference between (1) the district's 48.9 unreimbursed special education cost and (2)5.74.13 percentfor48.10fiscal year 1997 and later yearsof the district's general 48.11 revenue; 48.12 (b) 70 percent of the difference between (1) the increase 48.13 in the district's unreimbursed special education cost between 48.14 the base year as defined in section 125A.76, subdivision 1, and 48.15 the current year and (2) 1.6 percent of the district's general 48.16 revenue; or 48.17 (c) zero. 48.18 Sec. 17. Minnesota Statutes 1998, section 125A.79, is 48.19 amended by adding a subdivision to read: 48.20 Subd. 5. [INITIAL EXCESS COST AID.] For fiscal years 2002 48.21 and later, a district's initial excess cost aid equals the 48.22 greatest of: 48.23 (1) 70 percent of the difference between (i) the district's 48.24 unreimbursed special education cost and (ii) 4.13 percent of the 48.25 district's general revenue; 48.26 (2) 70 percent of the difference between (i) the increase 48.27 in the district's unreimbursed special education cost between 48.28 the base year as defined in section 125A.76, subdivision 1, and 48.29 the current year and (ii) 1.6 percent of the district's general 48.30 revenue; or 48.31 (3) zero. 48.32 Sec. 18. Minnesota Statutes 1998, section 125A.79, is 48.33 amended by adding a subdivision to read: 48.34 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST 48.35 AID.] The state total special education excess cost aid for 48.36 fiscal year 2002 and later fiscal years equals: 49.1 (1) the state total special education excess cost aid for 49.2 the preceding fiscal year; times 49.3 (2) the program growth factor; times 49.4 (3) the ratio of the state total average daily membership 49.5 for the current fiscal year to the state total average daily 49.6 membership for the preceding fiscal year. 49.7 Sec. 19. Minnesota Statutes 1998, section 125A.79, is 49.8 amended by adding a subdivision to read: 49.9 Subd. 7. [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] A 49.10 district's special education excess cost aid for fiscal year 49.11 2002 and later equals the state total special education excess 49.12 cost aid times the ratio of the district's initial excess cost 49.13 aid to the state total initial excess cost aid. 49.14 Sec. 20. [125A.80] [UNIFORM BILLING SYSTEM FOR THE 49.15 EDUCATION COSTS OF OUT-OF-HOME PLACED STUDENTS.] 49.16 (a) The commissioner, in cooperation with the commissioners 49.17 of human services and corrections and with input from 49.18 appropriate billing system users, shall develop and implement a 49.19 uniform billing system for school districts and other agencies, 49.20 including private providers, who provide the educational 49.21 services for students who are placed out of the home. The 49.22 uniform billing system must: 49.23 (1) allow for the proper and timely billing to districts by 49.24 service providers with a minimum amount of district 49.25 administration; 49.26 (2) allow districts to bill the state for certain types of 49.27 special education and regular education services as provided by 49.28 law; 49.29 (3) provide flexibility for the types of services that are 49.30 provided for children placed out of the home, including day 49.31 treatment services; 49.32 (4) allow the commissioner to track the type, cost, and 49.33 quality of services provided for children placed out of the 49.34 home; 49.35 (5) conform existing special education and proposed regular 49.36 education billing procedures; 50.1 (6) provide a uniform reporting standard of per diem rates; 50.2 (7) determine allowable expenses and maximum reimbursement 50.3 rates for the state reimbursement of care and treatment services 50.4 according to section 124D.701; and 50.5 (8) provide a process for the district to appeal to the 50.6 commissioner tuition bills submitted to districts and to the 50.7 state. 50.8 (b) The commissioner shall implement a uniform billing 50.9 system for education services for children placed out of the 50.10 home under this section, by July 1, 2000. The commissioner 50.11 shall provide training to school districts on the uniform 50.12 billing system. 50.13 Sec. 21. Minnesota Statutes 1998, section 127A.45, is 50.14 amended by adding a subdivision to read: 50.15 Subd. 12a. [FORWARD SHIFTED AID PAYMENTS.] Nineteen 50.16 percent of the state aid in fiscal year 1999, and 31 percent of 50.17 the state aid in fiscal years 2000 and later received under 50.18 section 124D.86 must be paid by the state to the recipient 50.19 school district on July 15 of that year. The recipient school 50.20 district must recognize this aid in the same fiscal year as the 50.21 levy is recognized. 50.22 (Effective Date: Section 21 (127A.45, subdivision 12a) is 50.23 effective the day following final enactment for revenue for 50.24 fiscal year 1999 and later.) 50.25 Sec. 22. Minnesota Statutes 1998, section 127A.45, 50.26 subdivision 13, is amended to read: 50.27 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 50.28 subdivisions 11, 12, 12a, and 14, each fiscal year, all 50.29 education aids and credits in this chapter and chapters 120A, 50.30 120B, 121A, 122A, 123A, 123B, 124B, 124D, 125A, 125B, 126C, 134, 50.31 and section 273.1392, shall be paid at 90 percent of the 50.32 estimated entitlement during the fiscal year of the 50.33 entitlement. The final adjustment payment, according to 50.34 subdivision 9, must be the amount of the actual entitlement, 50.35 after adjustment for actual data, minus the payments made during 50.36 the fiscal year of the entitlement. 51.1 (Effective Date: Section 22 (127A.45, subdivision 13) is 51.2 effective the day following final enactment for revenue for 51.3 fiscal year 1999 and later.) 51.4 Sec. 23. Minnesota Statutes 1998, section 127A.47, 51.5 subdivision 2, is amended to read: 51.6 Subd. 2. [REPORTING; REVENUE FOR HOMELESS.] For all school 51.7 purposes, unless otherwise specifically provided by law, a 51.8 homeless pupil is a resident of the school districtin which the51.9homeless shelter or other program, center, or facility assisting51.10the homeless pupil or the pupil's family is locatedthat enrolls 51.11 the pupil. 51.12 Sec. 24. Minnesota Statutes 1998, section 626.556, is 51.13 amended by adding a subdivision to read: 51.14 Subd. 3b. [AGENCY RESPONSIBLE FOR ASSESSING OR 51.15 INVESTIGATING REPORTS OF MALTREATMENT.] The following agencies 51.16 are the administrative agencies responsible for assessing or 51.17 investigating reports of alleged child maltreatment in 51.18 facilities made under this section: the department of children, 51.19 families, and learning is the agency responsible for assessing 51.20 or investigating allegations of child maltreatment in schools as 51.21 defined in sections 120A.05, subdivisions 9, 11, and 13; and 51.22 124D.10. 51.23 Sec. 25. Laws 1993, chapter 224, article 3, section 32, as 51.24 amended by Laws 1998, chapter 398, article 2, section 47, is 51.25 amended to read: 51.26 Sec. 32. [ASL GUIDELINES.] 51.27 (a) In determining appropriate licensure requirements for 51.28 teachers of deaf andhard of hearinghard-of-hearing students 51.29 under Minnesota Statutes, section125.189122A.28, subdivision 51.30 1, the board of teaching shall develop the requirements 51.31 according to the guidelines described in this section. 51.32 (b) Each teacher must complete the American sign language 51.33 sign communication proficiency interview or a comparable 51.34 American sign language evaluation that the board of teaching, 51.35 the Minnesota association of deaf citizens, and the Minnesota 51.36 council for the hearing impaired accept as a means for 52.1 establishing the teacher's baseline level of American sign 52.2 language skills. A teacher shall not be charged for this 52.3 evaluation. 52.4 (c) Each teacher must complete 60 continuing education 52.5 credits in American sign language, American sign language 52.6 linguistics, or deaf culture for every 120 continuing education 52.7 credits the teacher is required to complete to renew a teaching 52.8 license. 52.9 (d) In order to obtain an initial license to teach deaf and 52.10hard of hearinghard-of-hearing students, or to apply for a 52.11 Minnesota teaching license, after being licensed to teach in 52.12 another state, a person must demonstrate in the sign 52.13 communication proficiency interview an intermediate plus level 52.14 of proficiency in American sign language. 52.15 (e) Each teacher applying to renew a teaching license must 52.16 take the American sign language sign communication proficiency 52.17 interview or a comparable American sign language evaluation 52.18 every five years until the teacher demonstrates a minimum, or 52.19 survival plus, level of proficiency in American sign language. 52.20 (f) A teacher working directly with students whose primary 52.21 language is American sign language should demonstrate at least 52.22 an advanced level of proficiency in American sign language. The 52.23 board should not consider a minimum, or survival plus, level of 52.24 proficiency adequate for providing direct instruction to 52.25 students whose primary language is American sign language. 52.26 (g) To renew a teaching license, a teacher must comply with 52.27 paragraphs (c) and (e) in addition to other applicable board 52.28 requirements. A teacher's ability to demonstrate a minimum, or 52.29 survival plus, level of proficiency in American sign language is 52.30 not a condition for renewing the teacher's license. 52.31 (h) A teacher who demonstrates an increased proficiency in 52.32 American sign language skill in the American sign language sign 52.33 communication proficiency interview or a comparable American 52.34 sign language evaluation shall receive credit toward completing 52.35 the requirements of paragraph (c). The number of continuing 52.36 education credits the teacher receives is based on the teacher's 53.1 increased level of proficiency from the teacher's baseline level: 53.2 (1) 35 continuing education credits for demonstrating an 53.3 intermediate level of proficiency; 53.4 (2) 40 continuing education credits for demonstrating an 53.5 intermediate plus level of proficiency; 53.6 (3) 45 continuing education credits for demonstrating an 53.7 advanced level of proficiency; 53.8 (4) 50 continuing education credits for demonstrating an 53.9 advanced plus level of proficiency; 53.10 (5) 55 continuing education credits for demonstrating a 53.11 superior level of proficiency; and 53.12 (6) 60 continuing education credits for demonstrating a 53.13 superior plus level of proficiency. 53.14 (i) This section shall not apply to teachers of oral/aural 53.15 deaf education. 53.16 Sec. 26. Laws 1997, First Special Session chapter 4, 53.17 article 2, section 51, subdivision 29, as amended by Laws 1998, 53.18 chapter 398, article 2, section 52, is amended to read: 53.19 Subd. 29. [FIRST GRADE PREPAREDNESS.] (a) For grants for 53.20 the first grade preparedness program under Minnesota Statutes, 53.21 section 124.2613, and for school sites that have provided a 53.22 full-day kindergarten option for kindergarten students enrolled 53.23 in fiscal years 1996 and 1997: 53.24 $5,000,000 ..... 1998 53.25 $6,500,000 ..... 1999 53.26 (b) $4,200,000 in fiscal year 1998 must be distributed 53.27 according to Minnesota Statutes, section 124.2613, subdivision 53.28 3, and $4,200,000 in fiscal year 1999 must be distributed 53.29 according to Minnesota Statutes, section 124D.081, subdivision 3. 53.30 (c) $800,000 in fiscal year 1998 must be divided equally 53.31 among the four geographic regions defined in Minnesota Statutes, 53.32 section 124.2613, subdivision 3, and $800,000 in fiscal year 53.33 1999 must be divided equally among the four geographic regions 53.34 defined in Minnesota Statutes, section 124D.081, subdivision 3, 53.35 and must first be used to provide funding for school sites that 53.36 offered an optional full-day kindergarten program during the 54.1 1996-1997 school year, but did not receive funding for fiscal 54.2 year 1997 under Minnesota Statutes, section 124.2613. To be a 54.3 qualified site, licensed teachers must have taught the optional 54.4 full-day kindergarten classes. A district that charged a fee 54.5 for students participating in an optional full-day program is 54.6 eligible to receive the grant to provide full-day kindergarten 54.7 for all students as required by Minnesota Statutes, section 54.8124.2613124D.08, subdivision 4. Districts with eligible sites 54.9 must apply to the commissioner of children, families, and 54.10 learning for a grant. 54.11(c) This appropriation must first be used to fund programs54.12operating during the 1996-1997 school year under paragraph (b)54.13and Minnesota Statutes, section 124.2613.Any remaining funds 54.14 may be used to expand the number of sites providing first grade 54.15 preparedness programs according to Minnesota Statutes, section 54.16 124D.081, subdivision 3. 54.17 (d) $1,500,000 in fiscal year 1999 shall be divided equally 54.18 among the four geographic regions defined in Minnesota Statutes, 54.19 section 124D.081, subdivision 3, and must first be used to 54.20 eliminate aid proration for sites qualifying under paragraphs 54.21 (b) and (c). Any remaining funds may be used to expand the 54.22 number of sites providing first grade preparedness programs 54.23 according to Minnesota Statutes, section 124.2613, subdivision 3. 54.24 (Effective Date: Section 26 (Laws 1997, First Special 54.25 Session chapter 4, article 2, section 51, subdivision 29), is 54.26 effective the day following final enactment.) 54.27 Sec. 27. [APPROPRIATIONS.] 54.28 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 54.29 LEARNING.] The sums indicated in this section are appropriated 54.30 from the general fund to the department of children, families, 54.31 and learning for the fiscal years designated. 54.32 Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE EDUCATION 54.33 PROGRAMS.] For grants to American Indian language and culture 54.34 education programs according to Minnesota Statutes, section 54.35 124D.81, subdivision 1: 54.36 $730,000 ..... 2000 55.1 $730,000 ..... 2001 55.2 The 2000 appropriation includes $73,000 for 1999 and 55.3 $657,000 for 2000. 55.4 The 2001 appropriation includes $73,000 for 2000 and 55.5 $657,000 for 2001. 55.6 Any balance in the first year does not cancel but is 55.7 available in the second year. 55.8 Subd. 3. [AMERICAN INDIAN EDUCATION.] (a) For certain 55.9 American Indian education programs in school districts: 55.10 $175,000 ..... 2000 55.11 $175,000 ..... 2001 55.12 The 2000 appropriation includes $17,000 for 1999 and 55.13 $158,000 for 2000. 55.14 The 2001 appropriation includes $17,000 for 2000 and 55.15 $158,000 for 2001. 55.16 (b) These appropriations are available for expenditure with 55.17 the approval of the commissioner of the department of children, 55.18 families, and learning. 55.19 (c) The commissioner must not approve the payment of any 55.20 amount to a school district or school under this subdivision 55.21 unless that school district or school is in compliance with all 55.22 applicable laws of this state. 55.23 (d) Up to the following amounts may be distributed to the 55.24 following schools and school districts for each fiscal year: 55.25 $54,800 Pine Point School; $9,800 to independent school district 55.26 No. 166, Cook county; $14,900 to independent school district No. 55.27 432, Mahnomen; $14,200 to independent school district No. 435, 55.28 Waubun; $42,200 to independent school district No. 707, Nett 55.29 Lake; and $39,100 to independent school district No. 38, Red 55.30 Lake. These amounts must be spent only for the benefit of 55.31 American Indian pupils and to meet established state educational 55.32 standards or statewide requirements. 55.33 (e) Before a district or school can receive money under 55.34 this subdivision, the district or school must submit, to the 55.35 commissioner, evidence that it has complied with the Uniform 55.36 Financial Accounting and Reporting Standards Act, Minnesota 56.1 Statutes, sections 123B.75 to 123B.83. 56.2 Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION 56.3 GRANTS.] For American Indian post-secondary preparation grants 56.4 according to Minnesota Statutes, section 124D.85: 56.5 $982,000 ..... 2000 56.6 $982,000 ..... 2001 56.7 Any balance in the first year does not cancel but is 56.8 available in the second year. 56.9 Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American 56.10 Indian scholarships according to Minnesota Statutes, section 56.11 124D.84: 56.12 $1,875,000 ..... 2000 56.13 $1,875,000 ..... 2001 56.14 Any balance in the first year does not cancel but is 56.15 available in the second year. 56.16 Subd. 6. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 56.17 joint grants to assist Indian people to become teachers: 56.18 $190,000 ..... 2000 56.19 $190,000 ..... 2001 56.20 (b) Up to $70,000 each year is for a joint grant to the 56.21 University of Minnesota at Duluth and independent school 56.22 district No. 709, Duluth. 56.23 (c) Up to $40,000 each year is for a joint grant to each of 56.24 the following: 56.25 (1) Bemidji state university and independent school 56.26 district No. 38, Red Lake; 56.27 (2) Moorhead state university and a school district located 56.28 within the White Earth reservation; and 56.29 (3) Augsburg college, independent school district No. 625, 56.30 St. Paul, and special school district No. 1, Minneapolis. 56.31 (d) Money not used for students at one location may be 56.32 transferred for use at another location. 56.33 (e) Any balance in the first year does not cancel but is 56.34 available in the second year. 56.35 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 56.36 school aid according to Minnesota Statutes, section 124D.83: 57.1 $2,706,000 ..... 2000 57.2 $2,790,000 ..... 2001 57.3 The 2000 appropriation includes $283,000 for 1999 and 57.4 $2,423,000 for 2000. 57.5 The 2001 appropriation includes $269,000 for 2000 and 57.6 $2,521,000 for 2001. 57.7 Subd. 8. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 57.8 early childhood family education programs at tribal contract 57.9 schools: 57.10 $68,000 ..... 2000 57.11 $68,000 ..... 2001 57.12 Subd. 9. [MAGNET SCHOOL GRANTS.] For magnet school and 57.13 program grants: 57.14 $1,750,000 ..... 2000 57.15 $1,750,000 ..... 2001 57.16 These amounts may be used for magnet school programs 57.17 according to Minnesota Statutes, section 124D.88. 57.18 Subd. 10. [INTEGRATION PROGRAMS.] For minority fellowship 57.19 grants according to Laws 1994, chapter 647, article 8, section 57.20 29; minority teacher incentives according to Minnesota Statutes, 57.21 section 122A.65; teachers of color grants according to Minnesota 57.22 Statutes, section 122A.64; and cultural exchange grants 57.23 according to Minnesota Statutes, section 124D.89: 57.24 $1,000,000 ..... 2000 57.25 $1,000,000 ..... 2001 57.26 Any balance in the first year does not cancel but is 57.27 available in the second year. 57.28 In awarding teacher of color grants, priority must be given 57.29 to districts that have students who are currently in the process 57.30 of completing their academic program. 57.31 Subd. 11. [SPECIAL EDUCATION AID.] For special education 57.32 aid according to Minnesota Statutes, section 125A.75: 57.33 $456,015,000 ..... 2000 57.34 $472,900,000 ..... 2001 57.35 The 2000 appropriation includes $39,300,000 for 1999 and 57.36 $416,715,000 for 2000. 58.1 The 2001 appropriation includes $46,300,000 for 2000 and 58.2 $426,600,000 for 2001. 58.3 Subd. 12. [AID FOR CHILDREN WITH A DISABILITY.] For aid 58.4 according to Minnesota Statutes, section 125A.75, subdivision 3, 58.5 for children with a disability placed in residential facilities 58.6 within the district boundaries for whom no district of residence 58.7 can be determined: 58.8 $443,000 ..... 2000 58.9 $464,000 ..... 2001 58.10 If the appropriation for either year is insufficient, the 58.11 appropriation for the other year is available. Any balance in 58.12 the first year does not cancel but is available in the second 58.13 year. 58.14 Subd. 13. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 58.15 teacher travel for home-based services according to Minnesota 58.16 Statutes, section 125A.75, subdivision 1: 58.17 $133,000 ..... 2000 58.18 $139,000 ..... 2001 58.19 The 2000 appropriation includes $11,000 for 1999 and 58.20 $122,000 for 2000. 58.21 The 2001 appropriation includes $13,000 for 2000 and 58.22 $126,000 for 2001. 58.23 Subd. 14. [SPECIAL EDUCATION EXCESS COST AID.] For excess 58.24 cost aid: 58.25 $55,999,000 ..... 2000 58.26 $80,040,000 ..... 2001 58.27 The 2000 appropriation includes $4,693,000 for 1999 and 58.28 $51,306,000 for 2000. 58.29 The 2001 appropriation includes $5,701,000 for 2000 and 58.30 $74,339,000 for 2001. 58.31 Subd. 15. [CAREER AND TECHNICAL PROGRAMS; CHILDREN WITH 58.32 DISABILITIES.] For aid for career and technical programs for 58.33 children with disabilities according to Minnesota Statutes, 58.34 section 124D.454: 58.35 $8,892,000 ..... 2000 58.36 $8,968,000 ..... 2001 59.1 The 2000 appropriation includes $808,000 for 1999 and 59.2 $8,084,000 for 2000. 59.3 The 2001 appropriation includes $898,000 for 2000 and 59.4 $8,070,000 for 2001. 59.5 Subd. 16. [SPECIAL PROGRAMS EQUALIZATION AID.] For special 59.6 education levy equalization aid according to Minnesota Statutes, 59.7 section 125A.77: 59.8 $526,000 ..... 2000 59.9 The 2000 appropriation includes $526,000 for 1999 and $0 59.10 for 2000. 59.11 Subd. 17. [INTEGRATION AID.] For integration aid: 59.12 $37,182,000 ..... 2000 59.13 $43,787,000 ..... 2001 59.14 The 2000 appropriation includes $2,902,000 for 1999 and 59.15 $34,280,000 for 2000. 59.16 The 2001 appropriation includes $3,809,000 for 2000 and 59.17 $39,978,000 for 2001. 59.18 Subd. 18. [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 59.19 additional revenue for homeless students according to Minnesota 59.20 Statutes, section 124D.70: 59.21 $20,000 ..... 2000 59.22 The 2000 appropriation includes $20,000 for 1999 and $0 for 59.23 2000. 59.24 Subd. 19. [INTERDISTRICT DESEGREGATION OR INTEGRATION 59.25 TRANSPORTATION AID.] For interdistrict desegregation or 59.26 integration transportation aid under Minnesota Statutes, section 59.27 124D.87: 59.28 $970,000 ..... 2000 59.29 $970,000 ..... 2001 59.30 Any balance in the first year does not cancel but is 59.31 available in the second year. 59.32 Subd. 20. [LITIGATION COSTS.] For paying the costs a 59.33 district incurs under Minnesota Statutes, section 125A.75, 59.34 subdivision 8: 59.35 $500,000 ..... 2000 59.36 $500,000 ..... 2001 60.1 Subd. 21. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 60.2 reimbursing serving school districts for unreimbursed eligible 60.3 expenditures attributable to children placed in the serving 60.4 school district by court action under Minnesota Statutes, 60.5 section 125A.79, subdivision 4: 60.6 $350,000 ..... 2000 60.7 $350,000 ..... 2001 60.8 This appropriation is available until June 30, 2001. 60.9 Subd. 22. [ROCHESTER SCHOOL DISTRICT.] For a special 60.10 education revenue adjustment for independent school district No. 60.11 535, Rochester: 60.12 $150,000 ..... 2000 60.13 $ 15,000 ..... 2001 60.14 Any balance in the first year does not cancel but is 60.15 available in the second year. 60.16 Sec. 28. [REPEALER.] 60.17 Minnesota Statutes 1998, sections 122A.31, subdivision 4; 60.18 124D.65, subdivision 3; 124D.70; 125A.76, subdivision 6; 60.19 125A.77; and 125A.79, subdivision 3, are repealed. Laws 1995, 60.20 First Special Session chapter 3, article 3, section 11; Laws 60.21 1997, First Special Session chapter 4, article 2, section 51, 60.22 subdivision 10; and Laws 1998, chapter 398, article 2, section 60.23 57, are repealed. 60.24 Sec. 29. [EFFECTIVE DATES.] 60.25 When preparing the prekindergarten through grade 12 60.26 education conference committee report for adoption by the 60.27 legislature, the revisor shall combine all effective date 60.28 notations in this article into this effective dates section. 60.29 ARTICLE 3 60.30 LIFEWORK DEVELOPMENT 60.31 Section 1. Minnesota Statutes 1998, section 124D.453, 60.32 subdivision 3, is amended to read: 60.33 Subd. 3. [SECONDARY VOCATIONAL AID.] A district's 60.34 secondary vocational education aid forafiscal year 2001 equals 60.35 the lesser of: 60.36 (a)$80$70 times the district's average daily membership 61.1 in grades 10 to 12; or 61.2 (b) 25 percent of approved expenditures for the following: 61.3 (1) salaries paid to essential, licensed personnel 61.4 providing direct instructional services to students in that 61.5 fiscal year for services rendered in the district's approved 61.6 secondary vocational education programs; 61.7 (2) contracted services provided by a public or private 61.8 agency other than a Minnesota school district or cooperative 61.9 center under subdivision 7; 61.10 (3) necessary travel between instructional sites by 61.11 licensed secondary vocational education personnel; 61.12 (4) necessary travel by licensed secondary vocational 61.13 education personnel for vocational student organization 61.14 activities held within the state for instructional purposes; 61.15 (5) curriculum development activities that are part of a 61.16 five-year plan for improvement based on program assessment; 61.17 (6) necessary travel by licensed secondary vocational 61.18 education personnel for noncollegiate credit bearing 61.19 professional development; and 61.20 (7) specialized vocational instructional supplies. 61.21 (c) Up to ten percent of a district's secondary vocational 61.22 aid may be spent on equipment purchases. Districts using 61.23 secondary vocational aid for equipment purchases must report to 61.24 the department on the improved learning opportunities for 61.25 students that result from the investment in equipment. 61.26 Sec. 2. [APPROPRIATIONS.] 61.27 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 61.28 LEARNING.] The sums indicated in this section are appropriated 61.29 from the general fund to the department of children, families, 61.30 and learning for the fiscal years designated. 61.31 Subd. 2. [SECONDARY VOCATIONAL EDUCATION AID.] For 61.32 secondary vocational education aid according to Minnesota 61.33 Statutes, section 124D.453: 61.34 $12,465,000 ..... 2000 61.35 $11,249,000 ..... 2001 61.36 The 2000 appropriation includes $1,159,000 for 1999 and 62.1 $11,306,000 for 2000. 62.2 The 2001 appropriation includes $1,256,000 for 2000 and 62.3 $9,993,000 for 2001. 62.4 Subd. 3. [YOUTHWORKS PROGRAMS.] For funding youthworks 62.5 programs according to Minnesota Statutes, sections 124D.37 to 62.6 124D.45: 62.7 $1,788,000 ..... 2000 62.8 $1,788,000 ..... 2001 62.9 A grantee organization may provide health and child care 62.10 coverage to the dependents of each participant enrolled in a 62.11 full-time youthworks program to the extent such coverage is not 62.12 otherwise available. 62.13 Any balance in the first year does not cancel but is 62.14 available in the second year. 62.15 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 62.16 GRANTS.] For education and employment transitions programming 62.17 under Minnesota Statutes, section 124D.46: 62.18 $3,900,000 ..... 2000 62.19 $3,900,000 ..... 2001 62.20 Of this appropriation, $100,000 each year is for ISEEK. 62.21 Subd. 5. [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION 62.22 FOUNDATION.] For the Minnesota school-to-work student 62.23 organization foundation under Minnesota Statutes, section 62.24 124D.34: 62.25 $ 625,000 ..... 2000 62.26 $ 625,000 ..... 2001 62.27 Any balance in the first year does not cancel but is 62.28 available in the second year. 62.29 Sec. 3. [REPEALER.] 62.30 (a) Minnesota Statutes 1998, sections 124D.32; and 62.31 136A.233, are repealed. 62.32 (b) Minnesota Statutes 1998, section 124D.453, is repealed 62.33 effective June 30, 2001. 62.34 ARTICLE 4 62.35 FACILITIES AND TECHNOLOGY 62.36 Section 1. Minnesota Statutes 1998, section 123B.53, 63.1 subdivision 4, is amended to read: 63.2 Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.](a) For63.3fiscal years 1995 and later,The debt service equalization 63.4 revenue of a district equals the eligible debt service revenue 63.5 minus the amount raised by a levy often12 percent times the 63.6 adjusted net tax capacity of the district. 63.7(b) For fiscal year 1993, debt service equalization revenue63.8equals one-third of the amount calculated in paragraph (a).63.9(c) For fiscal year 1994, debt service equalization revenue63.10equals two-thirds of the amount calculated in paragraph (a).63.11 (Effective Date: Section 1 (123B.53, subdivision 4) is 63.12 effective for revenue for fiscal years 2000 and later.) 63.13 Sec. 2. Minnesota Statutes 1998, section 123B.53, 63.14 subdivision 5, is amended to read: 63.15 Subd. 5. [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 63.16 service equalization revenue, a district must levy an amount not 63.17 to exceed the district's debt service equalization revenue times 63.18 the lesser of one or the ratio of: 63.19 (1) the quotient derived by dividing the adjusted net tax 63.20 capacity of the district for the year before the year the levy 63.21 is certified by the resident pupil units in the district for the 63.22 school year ending in the year prior to the year the levy is 63.23 certified; to 63.24 (2)$4,707.50$4,000. 63.25 (Effective Date: Section 2 (123B.53, subdivision 5) is 63.26 effective for revenue for fiscal years 2000 and later.) 63.27 Sec. 3. Minnesota Statutes 1998, section 123B.53, 63.28 subdivision 6, is amended to read: 63.29 Subd. 6. [DEBT SERVICE EQUALIZATION AID.] A district's 63.30 debt service equalization aid is the difference between the debt 63.31 service equalization revenue and the equalized debt service levy. 63.32If the amount of debt service equalization aid actually63.33appropriated for the fiscal year in which this calculation is63.34made is insufficient to fully fund debt service equalization63.35aid, the commissioner shall prorate the amount of aid across all63.36eligible districts.64.1 Sec. 4. Minnesota Statutes 1998, section 123B.54, is 64.2 amended to read: 64.3 123B.54 [DEBT SERVICE APPROPRIATION.] 64.4 (a)$35,480,000$33,165,000 in fiscal year 64.519982000,$38,159,000$32,057,000 in fiscal year19992001, 64.6 and$38,390,000$31,280,000 in fiscal year20002002 and each 64.7 year thereafter is appropriated from the general fund to the 64.8 commissioner of children, families, and learning for payment of 64.9 debt service equalization aid under section 123B.53. The200064.10 2002 appropriation includes$3,842,000$3,201,000 for199964.11 2001 and$34,548,000$29,079,000 for20002002. 64.12 (b) The appropriations in paragraph (a) must be reduced by 64.13 the amount of any money specifically appropriated for the same 64.14 purpose in any year from any state fund. 64.15 Sec. 5. Minnesota Statutes 1998, section 123B.57, 64.16 subdivision 4, is amended to read: 64.17 Subd. 4. [HEALTH AND SAFETY LEVY.] To receive health and 64.18 safety revenue, a district may levy an amount equal to the 64.19 district's health and safety revenue as defined in subdivision 3 64.20 multiplied by the lesser of one, or the ratio of the quotient 64.21 derived by dividing the adjusted net tax capacity of the 64.22 district for the year preceding the year the levy is certified 64.23 by the resident pupil units in the district for the school year 64.24 to which the levy is attributable, to$4,707.50$3,956. 64.25 (Effective Date: Section 5 (123B.57, subdivision 4) is 64.26 effective for revenue for fiscal years 2000 and later.) 64.27 Sec. 6. Minnesota Statutes 1998, section 123B.61, is 64.28 amended to read: 64.29 123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 64.30 The board of a district may issue general obligation 64.31 certificates of indebtedness or capital notes subject to the 64.32 district debt limits topurchase: (a) purchase vehicles, 64.33 computers, telephone systems, cable equipment, photocopy and 64.34 office equipment, technological equipment for instruction, and 64.35 other capital equipment having an expected useful life at least 64.36 as long as the terms of the certificates or 65.1 notes;and(b) purchase computer hardware and software, without 65.2 regard to its expected useful life, whether bundled with 65.3 machinery or equipment or unbundled, together with application 65.4 development services and training related to the use of the 65.5 computer; and (c) prepay special assessments. The certificates 65.6 or notes must be payable in not more than five years and must be 65.7 issued on the terms and in the manner determined by the board, 65.8 except that certificates or notes issued to prepay special 65.9 assessments must be payable in not more than 20 years. The 65.10 certificates or notes may be issued by resolution and without 65.11 the requirement for an election. The certificates or notes are 65.12 general obligation bonds for purposes of section 126C.55. A tax 65.13 levy must be made for the payment of the principal and interest 65.14 on the certificates or notes, in accordance with section 475.61, 65.15 as in the case of bonds. The sum of the tax levies under this 65.16 section and section 123B.62 for each year must not exceed the 65.17 amount of the district's total operating capital revenue for the 65.18 year the initial debt service levies are certified. The 65.19 district's general education levy for each year must be reduced 65.20 by the sum of (1) the amount of the tax levies for debt service 65.21 certified for each year for payment of the principal and 65.22 interest on the certificates or notes as required by section 65.23 475.61, and (2) any excess amount in the debt redemption fund 65.24 used to retire certificates or notes issued after April 1, 1997, 65.25 other than amounts used to pay capitalized interest. A district 65.26 using an excess amount in the debt redemption fund to retire the 65.27 certificates or notes shall report the amount used for this 65.28 purpose to the commissioner by July 15 of the following fiscal 65.29 year. A district having an outstanding capital loan under 65.30 section 126C.69 or an outstanding debt service loan under 65.31 section 126C.68 must not use an excess amount in the debt 65.32 redemption fund to retire the certificates or notes. 65.33 Sec. 7. Minnesota Statutes 1998, section 124C.55, is 65.34 amended by adding a subdivision to read: 65.35 Subd. 10. [CONTINUING DISCLOSURE AGREEMENTS.] The 65.36 commissioner of finance may enter into written agreements or 66.1 contracts relating to the continuing disclosure of information 66.2 needed to facilitate the ability of school districts to issue 66.3 debt obligations according to federal securities laws, rules, 66.4 and regulations, including securities and exchange commission 66.5 rules and regulations, section 240.15c2-12. Such agreements or 66.6 contracts may be in any form the commissioner of finance deems 66.7 reasonable and in the state's best interests. 66.8 Sec. 8. Minnesota Statutes 1998, section 124D.88, 66.9 subdivision 3, is amended to read: 66.10 Subd. 3. [GRANT APPLICATION PROCESS.] (a) Any group of 66.11 school districts that meets the criteria required under 66.12 paragraph (b)(i)(1) may apply for a magnet school grant in an 66.13 amount not to exceed $15,000,000 for the approved costs or 66.14 expansion of a magnet school facility. 66.15 (b)(i)(1) Any group of districts that submits an 66.16 application for a grant shall submit a proposal to the 66.17 commissioner for review and comment under section 123B.71, and 66.18 the commissioner shall prepare a review and comment on the 66.19 proposed magnet school facility, regardless of the amount of the 66.20 capital expenditure required to design, acquire, construct, 66.21 remodel, improve, furnish, or equip the facility. The 66.22 commissioner must not approve an application for a magnet school 66.23 grant for any facility unless the facility receives a favorable 66.24 review and comment under section 123B.71 and the participating 66.25 districts: 66.26(1)(i) establish a joint powers board under section 471.59 66.27 to represent all participating districts and govern the magnet 66.28 school facility; 66.29(2)(ii) design the planned magnet school facility to meet 66.30 the applicable requirements contained in Minnesota Rules, 66.31 chapter 3535; 66.32(3)(iii) submit a statement of need, including reasons why 66.33 the magnet school will facilitate integration and improve 66.34 learning; 66.35(4)(iv) prepare an educational plan that includes input 66.36 from both community and professional staff; and 67.1(5)(v) develop an education program that will improve 67.2 learning opportunities for students attending the magnet school. 67.3(ii)(2) The districts may develop a plan that permits 67.4 social service, health, and other programs serving students and 67.5 community residents to be located within the magnet school 67.6 facility. The commissioner shall consider this plan when 67.7 preparing a review and comment on the proposed facility. 67.8 (c) When two or more districts enter into an agreement 67.9 establishing a joint powers board to govern the magnet school 67.10 facility, all member districts shall have the same powers. 67.11 (d) A joint powers board of participating school districts 67.12 established under paragraphs (b) and (c) that intends to apply 67.13 for a grant must adopt a resolution stating the costs of the 67.14 proposed project, the purpose for which the debt is to be 67.15 incurred, and an estimate of the dates when the contracts for 67.16 the proposed project will be completed. A copy of the 67.17 resolution must accompany any application for a state grant 67.18 under this section. 67.19 (e)(i)(1) The commissioner shall examine and consider all 67.20 grant applications. If the commissioner finds that any joint 67.21 powers district is not a qualified grant applicant, the 67.22 commissioner shall promptly notify that joint powers board. The 67.23 commissioner shall make awards to no more than two qualified 67.24 applicants whose applications have been on file with the 67.25 commissioner more than 30 days. 67.26(ii)(2) A grant award is subject to verification by the 67.27 joint powers board under paragraph (f). A grant award must not 67.28 be made until the participating districts determine the site of 67.29 the magnet school facility. If the total amount of the approved 67.30 applications exceeds the amount of grant funding that is or can 67.31 be made available, the commissioner shall allot the available 67.32 amount equally between the approved applicant districts. The 67.33 commissioner shall promptly certify to each qualified joint 67.34 powers board the amount, if any, of the grant awarded to it. 67.35 (f) Each grant must be evidenced by a contract between the 67.36 joint powers board and the state acting through the 68.1 commissioner. The contract obligates the state to pay to the 68.2 joint powers board an amount computed according to paragraph 68.3 (e)(ii)(2) and a schedule, and terms and conditions acceptable 68.4 to the commissioner of finance. 68.5 (g) Notwithstanding the provisions of section 123B.02, 68.6 subdivision 3, the joint powers and its individual members may 68.7 enter into long-term lease agreements as part of the magnet 68.8 school program. 68.9 Sec. 9. Minnesota Statutes 1998, section 125B.20, is 68.10 amended to read: 68.11 125B.20 [TELECOMMUNICATION ACCESS GRANT AND STATEWIDE 68.12 COORDINATION.] 68.13 Subdivision 1. [ESTABLISHMENT; PURPOSE.] The purpose of 68.14 developing a statewide school district telecommunications 68.15 network is to expand the availability of a broad range of 68.16 courses and degrees to students throughout the state, to share 68.17 information resources to improve access, quality, and 68.18 efficiency, to improve learning, and distance cooperative 68.19 learning opportunities, and to promote the exchange of ideas 68.20 among students, parents, teachers, media generalists, 68.21 librarians, and the public. In addition, through the 68.22 development of this statewide telecommunications network 68.23 emphasizing cost-effective, competitive connections, all 68.24 Minnesotans will benefit by enhancing access to 68.25 telecommunications technology throughout the state. Network 68.26 connections for school districts and public librarieswill be68.27 are coordinated and fully integrated into the existing state 68.28 telecommunications and interactive television networks to 68.29 achieve comprehensive and efficient interconnectivity of school 68.30 districts and libraries to higher education institutions, state 68.31 agencies, other governmental units, agencies, and institutions 68.32 throughout Minnesota. A school district may apply to the 68.33 commissioner for a grant under subdivision 2, and a regional 68.34 public library may apply under subdivision 3. The Minnesota 68.35 education telecommunication council established in Laws 1995, 68.36 First Special Session chapter 3, article 12, section 7, shall 69.1 establish priorities for awarding grants, making grant awards, 69.2 and being responsible for the coordination of networks. 69.3 Subd. 2. [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) A 69.4 school district may apply for a grant under this subdivision 69.5 to: (1) establish connections among school districts, and 69.6 between school districts and the state information 69.7 infrastructure administered by the department of administration 69.8 under section 16B.465; or (2) if such a connection meeting 69.9 minimum electronic connectivity standards is already 69.10 established, maintain and enhance telecommunications capacity 69.11 for a school district.The minimum standards of capacity are a69.1256 kilobyte data line and 768 kilobyte ITV connection, subject69.13to change based on the recommendations by the Minnesota69.14education telecommunications council.A district may submit a 69.15 grant application for interactive television with higher 69.16 capacity connections in order to maintain multiple simultaneous 69.17 connections. To ensure coordination among school districts, a 69.18 school district must submit its grant application to the council 69.19 throughan organization that coordinates the applications and69.20connections of at least ten school districts or through an69.21existing technology cooperativethe telecommunications cluster 69.22 organization of which the district is a member. 69.23 (b) The application must, at a minimum, contain information 69.24 to document for each applicant school district the following: 69.25 (1) that the proposed connection meets the minimum 69.26 standards and employs an open network architecture that will 69.27 ensure interconnectivity and interoperability with other 69.28 education institutions and libraries; 69.29 (2) that the proposed connection and system will be 69.30 connected to the state information infrastructure through the 69.31 department of administration under section 16B.465and that a69.32network service and management agreement is in place; 69.33 (3) that the proposed connection and system will be 69.34 connected to the higher education telecommunication network and 69.35 that a governance agreement has been adopted which includes 69.36 agreements between the school district system, a higher 70.1 education regional council, libraries, and coordinating 70.2 entities; 70.3 (4) the telecommunication vendor selected to provide 70.4 service from the district to a state information infrastructure 70.5 hub or to a more cost-effective connection point to the state 70.6 information infrastructure; and 70.7 (5) other information, as determined by the commissioner in 70.8 consultation with the education telecommunications council, to 70.9 ensure that connections are coordinated, meet state standards 70.10 and are cost-effective, and that service is provided in an 70.11 efficient and cost-effective manner. 70.12 (c) A school district may include, in its grant 70.13 application, telecommunications access for collaboration with 70.14 nonprofit arts organizations for the purpose of educational 70.15 programs, or access for a secondary media center that: (1) is a 70.16 member of a multitype library system; (2) is open during periods 70.17 of the year when classroom instruction is occurring; and (3) has 70.18 licensed school media staff on site. 70.19 (d) The Minnesota education telecommunications council 70.20 shall award grants and the funds shall be dispersed by the 70.21 commissioner.The highest priority for these grants shall be to70.22bring school districts up to the minimum connectivity standards.70.23A grant to enhance telecommunications capacity beyond the70.24minimum connectivity standards shall be no more than 75 percent70.25of the maximum grant under this subdivision. Grant applications70.26for minimum connection and enhanced telecommunications capacity70.27grants must be submitted to the commissioner by a coordinating70.28organization including, but not limited to, service cooperatives70.29and education districts.For the purposes of the grant, a 70.30 school district may include a charter school under section 70.31 124D.10, or the Faribault academies. Based on the award made by 70.32 the council, all grants under this subdivision shall be paid by 70.33 the commissioner directly to a school district,(unlessthisthe 70.34 application requests that the funds be paid to the coordinating 70.35 agency). Nonpublic schools as defined in section 237.065, 70.36 subdivision 2, located within the district may access the 71.1 network. The nonpublic school is responsible for actual costs 71.2 for connection from the school to the access site. 71.3 (e) Money awarded under this section may be used only for 71.4 the purposes explicitly stated in the grant application. 71.5 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 71.6 regional public library system may apply for a telecommunication 71.7 access grant. The grant must be used to create or expand the 71.8 capacity of electronic data access and connect the library 71.9 system with the state information infrastructure administered by 71.10 the department of administration under section 71.11 16B.465.Connections must meet minimum system standards of a 5671.12kilobyte data line and 768 kilobyte ITV connection.To be 71.13 eligible for a telecommunications access grant, a regional 71.14 public library system must: (1) meet the level of local support 71.15 required under section 134.34; and (2) be open at least 20 hours 71.16 per week. 71.17 (b) Any grant award under this subdivision may not be used 71.18 to substitute for any existing local funds allocated to provide 71.19 electronic access, or equipment for library staff or the public, 71.20 or local funds previously dedicated to other library operations. 71.21 (c) An application for a regional public library 71.22 telecommunications access grant must, at a minimum, contain 71.23 information to document the following: 71.24 (1) that the connection meets the minimum standards and 71.25 employs an open network architecture that will ensure 71.26 interconnectivity and interoperability with other libraries and 71.27 the educational system; 71.28 (2) that the connection is being established through the 71.29 most cost-effective means and that the public library has 71.30 explored and coordinated connections through school districts or 71.31 other governmental agencies; 71.32 (3) that the proposed connection and system will be 71.33 connected to the state information infrastructure through the 71.34 department of administration under section 16B.465and that a71.35network service and management agreement is in place; 71.36 (4) that the proposed connection and system will be 72.1 connected to the higher education and to the school district 72.2 telecommunication networks subject to a governance agreement 72.3 with one or more school districts and a higher education 72.4 regional council specifying how the system will be coordinated; 72.5 (5) the telecommunication vendor selected to provide 72.6 service from the library to a state information infrastructure 72.7 hub or through a more cost-effective connection point to the 72.8 state information infrastructure; and 72.9 (6) other information, as determined by the commissioner, 72.10 to ensure that connections are coordinated, meet state 72.11 standards, are cost-effective, and that service is provided in 72.12 an efficient and cost-effective manner so that libraries 72.13 throughout the state are connected in as seamless a manner as 72.14 technically possible. 72.15 Subd. 4. [AWARD OF GRANTS.] The council shall develop 72.16 application forms and procedures forschool district minimum72.17connectivity grants, enhanced telecommunications grants, and72.18regional librarytelecommunication access grants. The council 72.19 shall select the grant recipient and shall promptly notify any 72.20 applicant that is found not to be qualified. The commissioner 72.21 shall make the grant payments directly to the school district or 72.22 regional library system. At the request of the district or 72.23 regional library system, the commissioner may make the grant 72.24 payment directly to the coordinating organization.If72.25appropriations are insufficient to fund all applications, the72.26commissioner shall first fully fund the minimum connectivity72.27grants. Unsuccessful applicants may reapply for a grant.72.28 (Effective Date: Section 9 (125B.20) is effective the day 72.29 following final enactment.) 72.30 Sec. 10. Minnesota Statutes 1998, section 126C.40, 72.31 subdivision 4, is amended to read: 72.32 Subd. 4. [INTERACTIVE TELEVISION.] (a) A district with its 72.33 central administrative office located within economic 72.34 development region one, two, three, four, five, six, seven, 72.35 eight, nine, and ten may apply to the commissioner for ITV 72.36 revenue up to the greater of.5.6 percent of the adjusted net 73.1 tax capacity of the district or $25,000. Eligible interactive 73.2 television expenditures include the construction, maintenance, 73.3 and lease costs of an interactive television system for 73.4 instructional purposes. An eligible school district that has 73.5 completed the construction of its interactive television system 73.6 may also purchase computer hardware and software used primarily 73.7 for instructional purposes and access to the Internet provided 73.8 that its total expenditures for interactive television 73.9 maintenance and lease costs and for computer hardware and 73.10 software under this subdivision do not exceed its interactive 73.11 television revenue for fiscal year 1998. The approval by the 73.12 commissioner and the application procedures set forth in 73.13 subdivision 1 shall apply to the revenue in this subdivision. 73.14 In granting the approval, the commissioner shall consider 73.15 whether the district is maximizing efficiency through peak use 73.16 and off-peak use pricing structures. 73.17 (b) To obtain ITV revenue, a district may levy an amount 73.18 not to exceed the district's ITV revenue times the lesser of one 73.19 or the ratio of: 73.20 (1) the quotient derived by dividing the adjusted net tax 73.21 capacity of the district for the year before the year the levy 73.22 is certified by the resident pupil units in the district for the 73.23 year to which the levy is attributable; to 73.24 (2)$10,000$8,404. 73.25 (c) A district's ITV aid is the difference between its ITV 73.26 revenue and the ITV levy. 73.27 (d) The revenue in the first year after reorganization for 73.28 a district that has reorganized under sections 123A.35 to 73.29 123A.41, 123A.46, or 123A.48 shall be the greater of: 73.30 (1) the revenue computed for the reorganized district under 73.31 paragraph (a), or 73.32 (2)(i) for two districts that reorganized, 75 percent of 73.33 the revenue computed as if the districts involved in the 73.34 reorganization were separate, or 73.35 (ii) for three or more districts that reorganized, 50 73.36 percent of the revenue computed as if the districts involved in 74.1 the reorganization were separate. 74.2 (e) The revenue in paragraph (d) is increased by the 74.3 difference between the initial revenue and ITV lease costs for 74.4 leases that had been entered into by the preexisting districts 74.5 on the effective date of the consolidation or combination and 74.6 with a term not exceeding ten years. This increased revenue is 74.7 only available for the remaining term of the lease. However, in 74.8 no case shall the revenue exceed the amount available had the 74.9 preexisting districts received revenue separately. 74.10 (f) Effective for fiscal year 2000, the revenue under this 74.11 section shall be 75 percent of the amount determined in 74.12 paragraph (a); for fiscal year 2001, 50 percent of the amount in 74.13 paragraph (a); and for fiscal year 2002, 25 percent of the 74.14 amount in paragraph (a). 74.15 (g) Thissectionsubdivision expires effective for revenue 74.16 for fiscal year 2003, or when leases in existence on the74.17effective date of Laws 1997, First Special Session chapter 4,74.18expire. 74.19 (Effective Date: Section 10 (126C.40, subdivision 4) is 74.20 effective for revenue for fiscal years 2000 and later.) 74.21 Sec. 11. Minnesota Statutes 1998, section 126C.63, 74.22 subdivision 5, is amended to read: 74.23 Subd. 5. [LEVY.] "Levy" means a district's net debt 74.24 service levy after the reduction of debt service equalization 74.25 aid under section 123B.53, subdivision 6. For taxes payable in 74.26 1994 and later, each district's maximum effort debt service levy 74.27 for purposes of subdivision 8, must be reduced by an equal 74.28 number of percentage points if the commissioner determines that 74.29 the levy reduction will not result in a statewide property tax 74.30 as would be required under Minnesota Statutes 1992, section 74.31 124.46, subdivision 3. A district's levy that is adjusted under 74.32 this section must not be reduced below18.7422.3 percent of the 74.33 district's adjusted net tax capacity. 74.34 (Effective Date: Section 11 (126C.63, subdivision 5) is 74.35 effective for revenue for fiscal years 2000 and later.) 74.36 Sec. 12. Minnesota Statutes 1998, section 126C.63, 75.1 subdivision 8, is amended to read: 75.2 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 75.3 effort debt service levy" means the lesser of: 75.4 (1) a levy in whichever of the following amounts is 75.5 applicable: 75.6 (a) in any district receiving a debt service loan for a 75.7 debt service levy payable in 1991 and thereafter, or granted a 75.8 capital loan after January 1, 1990, a levy in a total dollar 75.9 amount computed at a rate of2024 percent of adjusted net tax 75.10 capacity for taxes payable in 1991 and thereafter; 75.11 (b) in any district granted a debt service loan after July 75.12 31, 1981, or granted a capital loan which is approved after July 75.13 31, 1981, a levy in a total dollar amount computed as atax rate75.14of 13.08 percent on the adjusted gross tax capacity for taxes75.15payable in 1990 or atax rate of18.4221.92 percent on the 75.16 adjusted net tax capacity for taxes payable in 1991 and 75.17 thereafter; 75.18(c) in any district granted a debt service loan before75.19August 1, 1981, or granted a capital loan which was approved75.20before August 1, 1981, a levy in a total dollar amount computed75.21as a tax rate of 12.26 percent on the adjusted gross tax75.22capacity for taxes payable in 1990 or a tax rate of 17.1775.23percent on the adjusted net tax capacity for taxes payable in75.241991 and thereafter, until and unless the district receives an75.25additional loan;or 75.26 (2) a levyin whichever of the following amounts is75.27applicable:75.28(a) in any district which received a debt service or75.29capital loan from the state before January 1, 1965, a levy in a75.30total dollar amount computed as 4.10 mills on the market value75.31in each year, unless the district applies or has applied for an75.32additional loan subsequent to January 1, 1965, or issues or has75.33issued bonds on the public market, other than bonds refunding75.34state loans, subsequent to January 1, 1967;75.35(b) in any district granted a debt service or capital loan75.36between January 1, 1965, and July 1, 1969, a levy in a total76.1dollar amount computed as 5-1/2 mills on the market value in76.2each year, until and unless the district receives an additional76.3loan;76.4(c) in any district granted a debt service or capital loan76.5between July 1, 1969, and July 1, 1975, a levy in a total dollar76.6amount computed as 6.3 mills on market value in each year until76.7and unless the district has received an additional loan;76.8(d)in any district for which a capital loan was approved 76.9 prior to August 1, 1981, a levy in a total dollar amount equal 76.10 to the sum of the amount of the required debt service levy and 76.11 an amount which when levied annually will in the opinion of the 76.12 commissioner be sufficient to retire the remaining interest and 76.13 principal on any outstanding loans from the state within 30 76.14 years of the original date when the capital loan was granted. 76.15 The board in any district affected by the provisions of 76.16 clause (2)(d)may elect instead to determine the amount of its 76.17 levy according to the provisions of clause (1). If a district's 76.18 capital loan is not paid within 30 years because it elects to 76.19 determine the amount of its levy according to the provisions of 76.20 clause (2)(d), the liability of the district for the amount of 76.21 the difference between the amount it levied under clause (2)(d)76.22 and the amount it would have levied under clause (1), and for 76.23 interest on the amount of that difference, must not be satisfied 76.24 and discharged pursuant to Minnesota Statutes 1988, or an 76.25 earlier edition of Minnesota Statutes if applicable, section 76.26 124.43, subdivision 4. 76.27 (Effective Date: Section 12 (126C.63, subdivision 8) is 76.28 effective for revenue for fiscal years 2000 and later.) 76.29 Sec. 13. Minnesota Statutes 1998, section 126C.69, 76.30 subdivision 2, is amended to read: 76.31 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 76.32 1,19921999, a district is not eligible for a capital loan 76.33 unless the district's estimated net debt tax rate as computed by 76.34 the commissioner after debt service equalization aid would be 76.35 more than2024 percent of adjusted net tax capacity. The 76.36 estimate must assume a 20-year maturity schedule for new debt. 77.1 (Effective Date: Section 13 (126C.69, subdivision 2) is 77.2 effective for revenue for fiscal years 2000 and later.) 77.3 Sec. 14. Minnesota Statutes 1998, section 126C.69, 77.4 subdivision 9, is amended to read: 77.5 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 77.6 recommended for approval for a district exceeding an amount 77.7 computed as follows: 77.8 (1) the amount requested by the district under subdivision 77.9 6; 77.10 (2) plus the aggregate principal amount of general 77.11 obligation bonds of the district outstanding on June 30 of the 77.12 year following the year the application was received, not 77.13 exceeding the limitation on net debt of the district in section 77.14 475.53, subdivision 4, or305363 percent of its adjusted net 77.15 tax capacity as most recently determined, whichever is less; 77.16 (3) less the maximum net debt permissible for the district 77.17 on December 1 of the year the application is received, under the 77.18 limitation in section 475.53, subdivision 4, or305363 percent 77.19 of its adjusted net tax capacity as most recently determined, 77.20 whichever is less; 77.21 (4) less any amount by which the amount voted exceeds the 77.22 total cost of the facilities for which the loan is granted. 77.23 (b) The loan may be approved in an amount computed as 77.24 provided in paragraph (a), clauses (1) to (3), subject to later 77.25 reduction according to paragraph (a), clause (4). 77.26 (Effective Date: Section 14 (126C.69, subdivision 9) is 77.27 effective for revenue for fiscal years 2000 and later.) 77.28 Sec. 15. Laws 1995, First Special Session chapter 3, 77.29 article 12, section 7, as amended by Laws 1997, First Special 77.30 Session chapter 4, article 9, section 2, Laws 1998, chapter 270, 77.31 section 4, and Laws 1998, chapter 359, section 20, is amended to 77.32 read: 77.33 Sec. 7. [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 77.34 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 77.35 of the Minnesota education telecommunications council 77.36 established in Laws 1993, First Special Session chapter 2, is 78.1 expanded to include representatives of elementary and secondary 78.2 education. The membership shall consist of three 78.3 representatives from the University of Minnesota; three 78.4 representatives of the board of trustees for Minnesota state 78.5 colleges and universities; one representative of the higher 78.6 education services offices; one representative appointed by the 78.7 private college council; one representative selected by the 78.8 commissioner of administration; eight representatives selected 78.9 by the commissioner of children, families, and learning, at 78.10 least one of which must come from each of the six higher 78.11 education telecommunication regions; a representative from the 78.12 office of technology; two members each from the senate and the 78.13 house of representatives selected by the subcommittee on 78.14 committees of the committee on rules and administration of the 78.15 senate and the speaker of the house, one member from each body 78.16 must be a member of the minority party; and three 78.17 representatives of libraries, one representing regional public 78.18 libraries, one representing multitype libraries, and one 78.19 representing community libraries, selected by the governor. The 78.20 council shall: 78.21 (1) develop a statewide vision and plans for the use of 78.22 distance learning technologies and provide leadership in 78.23 implementing the use of such technologies; 78.24 (2)recommend to the commissioner and the legislature by78.25December 15, 1996, a plan for long-term governance and a78.26proposed structure for statewide and regional78.27telecommunications;78.28(3)recommend educational policy relating to 78.29 telecommunications; 78.30(4)(3) determine priorities for use; 78.31(5)(4) oversee coordination of networks for post-secondary 78.32 campuses,K-12kindergarten through grade 12 education, and 78.33 regional and community libraries; 78.34(6)(5) review application for telecommunications access 78.35 grants under Minnesota Statutes, section124C.74125B.20, and 78.36recommend to the department grants for fundingmake grant 79.1 awards; 79.2(7)(6) determine priorities for grant funding proposals; 79.3 and 79.4(8)(7) work with the information policy office to ensure 79.5 consistency of the operation of the learning network with 79.6 standards of an open system architecture. 79.7 The council shall consult with representatives of the 79.8 telecommunication industry in implementing this section. 79.9 Subd. 2. [DISTRICT COUNCIL MEMBERSHIP.] District 79.10 organizations that coordinate applications for telecommunication 79.11 access grants are encouraged to become members of the regional 79.12 higher education telecommunication council in their area. 79.13 Subd. 3. [CRITERIA.] In addition to responsibilities of 79.14 the council under Laws 1993, First Special Session chapter 2, as 79.15 amended, the telecommunications council shall evaluate grant 79.16 applications under Minnesota Statutes, section 124C.74 and 79.17 applications from district organizations using the following 79.18 criteria: 79.19 (1) evidence of cooperative arrangements with other 79.20 post-secondary institutions, school districts, and community and 79.21 regional libraries in the geographic region; 79.22 (2) plans for shared classes and programs; 79.23 (3) avoidance of network duplication; 79.24 (4) evidence of efficiencies to be achieved in delivery of 79.25 instruction due to use of telecommunications; 79.26 (5) a plan for development of a list of all courses 79.27 available in the region for delivery at a distance; 79.28 (6) a plan for coordinating and scheduling courses; and 79.29 (7) a plan for evaluation of costs, access, and outcomes. 79.30 (Effective Date: Section 15 (Laws 1995, First Special 79.31 Session chapter 3, article 12, section 7) is effective the day 79.32 following final enactment.) 79.33 Sec. 16. Laws 1997, First Special Session chapter 4, 79.34 article 9, section 13, is amended to read: 79.35 Sec. 13. [REPEALER.] 79.36 (a) Minnesota Statutes 1996, section 124C.74, is repealed 80.1 effective July 1,19992001. 80.2 (b) Minnesota Statutes 1996, section 134.46, is repealed. 80.3 (Effective Date: Section 16 (Laws 1997, First Special 80.4 Session chapter 4, article 9, section 13) is effective the day 80.5 following final enactment.) 80.6 Sec. 17. [REORGANIZATION DEBT; HOWARD 80.7 LAKE-WAVERLY-WINSTED.] 80.8 Notwithstanding Laws 1994, chapter 647, article 6, section 80.9 38, or any other law to the contrary, the unreserved operating 80.10 fund balance used to compute the reorganization operating debt 80.11 levy authority for independent school district No. 2687, Howard 80.12 Lake-Waverly-Winsted, is June 30, 1995. 80.13 (Effective Date: Section 17 (Howard Lake) is effective 80.14 retroactive to July 1, 1996.) 80.15 Sec. 18. [FISCAL YEARS 2000 AND 2001 DECLINING PUPIL UNIT 80.16 AID; ADA-BORUP; WARREN-ALVARADO-OSLO; BRECKENRIDGE; EAST GRAND 80.17 FORKS; KITTSON CENTRAL; ARGYLE-STEPHEN; CLIMAX.] 80.18 Subdivision 1. [FISCAL YEAR 2000.] For fiscal year 2000 80.19 only, independent school district Nos. 2854, Ada-Borup; 846, 80.20 Breckenridge; 595, East Grand Forks; 2176, Warren-Alvarado-Oslo; 80.21 2171, Kittson Central; 2856, Argyle-Stephen; and 592, Climax, 80.22 are eligible for declining pupil unit aid equal to the product 80.23 of the general education formula allowance for fiscal year 2000 80.24 times 50 percent of the difference between the districts' actual 80.25 pupil units for the 1996-1997 school year and the districts' 80.26 actual pupil units for the 1999-2000 school year. 80.27 Subd. 2. [FISCAL YEAR 2001.] For fiscal year 2001 only, 80.28 independent school district Nos. 2854, Ada-Borup; 846, 80.29 Breckenridge; 595, East Grand Forks; 2176, Warren-Alvarado-Oslo; 80.30 2171, Kittson Central; 2856, Argyle-Stephen; and 592, Climax, 80.31 are eligible for declining pupil unit aid equal to the product 80.32 of the general education formula allowance for fiscal year 2001 80.33 times 25 percent of the difference between the districts' actual 80.34 pupil units for the 1996-1997 school year and the districts' 80.35 actual pupil units for the 2000-2001 school year. 80.36 Sec. 19. [APPROPRIATIONS.] 81.1 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 81.2 LEARNING.] The sums indicated in this section are appropriated 81.3 from the general fund to the department of children, families, 81.4 and learning for the fiscal years designated. 81.5 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 81.6 aid according to Minnesota Statutes, section 123B.57, 81.7 subdivision 5: 81.8 $14,528,000 ..... 2000 81.9 $14,957,000 ..... 2001 81.10 The 2000 appropriation includes $1,415,000 for 1999 and 81.11 $13,113,000 for 2000. 81.12 The 2001 appropriation includes $1,456,000 for 2000 and 81.13 $13,501,000 for 2001. 81.14 Subd. 3. [DEBT SERVICE AID.] For debt service aid 81.15 according to Minnesota Statutes, section 123B.53, subdivision 6: 81.16 $33,165,000 ..... 2000 81.17 $32,057,000 ..... 2001 81.18 The 2000 appropriation includes $3,842,000 for 1999 and 81.19 $29,323,000 for 2000. 81.20 The 2001 appropriation includes $3,256,000 for 2000 and 81.21 $28,801,000 for 2001. 81.22 Subd. 4. [INTERACTIVE TELEVISION (ITV) AID.] For 81.23 interactive television (ITV) aid under Minnesota Statutes, 81.24 section 126C.40, subdivision 4: 81.25 $4,197,000 ..... 2000 81.26 $2,851,000 ..... 2001 81.27 The 2000 appropriation includes $405,000 for 1999 and 81.28 $3,792,000 for 2000. 81.29 The 2001 appropriation includes $421,000 for 2000 and 81.30 $2,430,000 for 2001. 81.31 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 81.32 alternative facilities bonding aid, according to Minnesota 81.33 Statutes, section 123B.59: 81.34 $19,058,000 ..... 2000 81.35 $19,286,000 ..... 2001 81.36 The 2000 appropriation includes $1,700,000 for 2000 and 82.1 $17,358,000 for 2001. 82.2 The 2001 appropriation includes $1,928,000 for 2000 and 82.3 $17,358,000 for 2001. 82.4 Subd. 6. [COOPERATIVE SECONDARY FACILITY; PLANNING AND 82.5 EXPENSES.] For a grant and administrative expenses to facilitate 82.6 planning for a cooperative secondary facility under a joint 82.7 powers agreement for school district Nos. 411, Balaton, 402, 82.8 Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 82.9 Tyler: 82.10 $ 100,000 ..... 2000 82.11 Subd. 7. [TELECOMMUNICATIONS ACCESS GRANTS.] (a) For 82.12 telecommunications access grants according to Minnesota 82.13 Statutes, section 125B.20: 82.14 $20,000,000 ..... 2000 82.15 (b) Of the amount appropriated under paragraph (a), at 82.16 least $300,000 must be reserved for grants to intermediate 82.17 school districts. 82.18 (c) Any balance in the first year does not cancel but is 82.19 available in the second year. This amount shall not be included 82.20 as part of the base for fiscal year 2002-2003. 82.21 Subd. 8. [TECHNOLOGY GRANT; BATTLE LAKE.] (a) For a 82.22 technology grant to independent school district No. 542, Battle 82.23 Lake: 82.24 $ 266,000 ..... 2000 82.25 (b) This appropriation is available until June 30, 2001. 82.26 Subd. 9. [TECHNOLOGY GRANT; DASSEL-COKATO.] (a) For a 82.27 technology grant to independent school district No. 466, 82.28 Dassel-Cokato: 82.29 $ 200,000 ..... 2000 82.30 (b) The technology grant must be used to purchase computer 82.31 hardware and software, install cable and wiring, improve 82.32 telecommunications access, and other technology improvements 82.33 designed to enhance student achievement. 82.34 (c) This appropriation is available until June 30, 2001. 82.35 Subd. 10. [TECHNOLOGY GRANT; BIG LAKE.] (a) For a 82.36 technology grant to independent school district No. 727, Big 83.1 Lake: 83.2 $ 150,000 ..... 2000 83.3 (b) This appropriation is available until June 30, 2001. 83.4 Subd. 11. [TECHNOLOGY GRANT; MONTICELLO.] (a) For a 83.5 technology grant to independent school district No. 882, 83.6 Monticello: 83.7 $ 200,000 ..... 2000 83.8 (b) This appropriation is available until June 30, 2001. 83.9 Subd. 12. [TECHNOLOGY GRANT; FRAZEE.] (a) For a technology 83.10 grant to independent school district No. 23, Frazee: 83.11 $ 50,000 ..... 2000 83.12 (b) The technology grant must be used to purchase computer 83.13 hardware and software, install cable and wiring, improve 83.14 telecommunications access, and other technology improvements 83.15 designed to enhance student achievement. 83.16 (c) This appropriation is available until June 30, 2001. 83.17 Subd. 13. [TECHNOLOGY GRANT; HAYFIELD.] (a) For a 83.18 technology grant to independent school district No. 203, 83.19 Hayfield: 83.20 $ 144,000 ..... 2000 83.21 (b) The grant must be used to purchase and install cabling 83.22 and wiring, provide network and Internet capabilities, purchase 83.23 new computers, and ensure appropriate telecommunications access 83.24 throughout the school district. 83.25 (c) This appropriation is available until June 30, 2001. 83.26 Subd. 14. [TECHNOLOGY GRANT; KENYON-WANAMINGO.] (a) For a 83.27 technology grant to independent school district No. 2172, 83.28 Kenyon-Wanamingo: 83.29 $ 75,000 ..... 2000 83.30 (b) The technology grant must be used to purchase computer 83.31 hardware and software, install cable and wiring, improve 83.32 telecommunications access, and other technology improvements 83.33 designed to enhance student achievement. 83.34 (c) This appropriation is available until June 30, 2001. 83.35 Subd. 15. [TECHNOLOGY GRANT; PILLAGER.] (a) For a 83.36 technology grant to independent school district No. 116, 84.1 Pillager: 84.2 $ 200,000 ..... 2000 84.3 (b) The technology grant must be used to purchase computer 84.4 hardware and software, install cable and wiring, improve 84.5 telecommunications access, and other technology improvements 84.6 designed to enhance student achievement. 84.7 (c) This appropriation is available until June 30, 2001. 84.8 Subd. 16. [TECHNOLOGY GRANT; LE CENTER.] (a) For a 84.9 technology integration grant to independent school district No. 84.10 392, Le Center: 84.11 $ 200,000 ..... 2000 84.12 (b) The grant may be used for facilities review, land 84.13 acquisition costs, or for technology purposes designed to 84.14 demonstrate successful and effective uses of technology for 84.15 students and teachers to improve student achievement. 84.16 (c) This appropriation is available until June 30, 2001. 84.17 Subd. 17. [COMMUNITY RESOURCE CENTER; NORTHFIELD.] (a) For 84.18 a grant to independent school district No. 659, Northfield, for 84.19 the Northfield community resource center: 84.20 $ 150,000 ..... 2000 84.21 (b) This appropriation is available to establish a 84.22 collaborative community resource center. The Northfield 84.23 community resource center must involve other governmental units 84.24 and encourage participation with nonpublic agencies, 84.25 foundations, and private donors. 84.26 (c) This appropriation is available until June 30, 2001. 84.27 Subd. 18. [DISASTER RELIEF FACILITIES GRANT; ST. 84.28 PETER.] (a) For a disaster relief facilities grant to 84.29 independent school district No. 508, St. Peter: 84.30 $ 541,000 ..... 2000 84.31 (b) This grant is for facilities replacements costs not 84.32 covered by the district's insurance settlement or through 84.33 federal emergency management agency payments. 84.34 Subd. 19. [DISASTER RELIEF FACILITIES GRANT; COMFREY.] For 84.35 a grant to independent school district No. 81, Comfrey, for 84.36 losses related to the March 29, 1998 tornado: 85.1 $ 325,000 ..... 2000 85.2 Subd. 20. [OPERATING LOSSES; ST. PETER.] For a grant to 85.3 independent school district No. 508, St. Peter, to ameliorate 85.4 general fund operating losses associated with the March, 1998 85.5 tornado: 85.6 $ 211,000 ..... 2000 85.7 $ 282,000 ..... 2001 85.8 Subd. 21. [FLOODS; DECLINING PUPIL AID.] For declining 85.9 pupil aid under section 18: 85.10 $1,409,000 ..... 2000 85.11 $ 869,000 ..... 2001 85.12 Sec. 20. [REPEALER.] 85.13 (a) Minnesota Statutes 1998, section 123B.64, subdivision 85.14 4, is repealed effective for revenue for fiscal year 2000. 85.15 (b) Minnesota Statutes 1998, section 123B.64, subdivisions 85.16 1, 2, and 3, are repealed effective for revenue for fiscal year 85.17 2001. 85.18 Sec. 21. [REVISOR INSTRUCTION.] 85.19 In the next and subsequent editions of Minnesota Statutes, 85.20 the revisor shall codify section 15 as Minnesota Statutes, 85.21 section 125B.21. 85.22 Sec. 22. [EFFECTIVE DATES.] 85.23 When preparing the prekindergarten through grade 12 85.24 education conference committee report for adoption by the 85.25 legislature, the revisor shall combine all effective date 85.26 notations in this article into this effective dates section. 85.27 ARTICLE 5 85.28 EDUCATION EXCELLENCE 85.29 Section 1. Minnesota Statutes 1998, section 120A.22, 85.30 subdivision 5, is amended to read: 85.31 Subd. 5. [AGES AND TERMS.] (a) Every child between seven 85.32 and 16 years of age must receive instruction. A child enrolled 85.33 in a public school must receive a minimum of 170 days of student 85.34 instruction or its equivalent consistent with section 120A.41. 85.35 Every child under the age of seven who is enrolled in a half-day 85.36 kindergarten, or a full-day kindergarten program on alternate 86.1 days, or other kindergarten programs shall receive instruction. 86.2 Except as provided in subdivision 6, a parent may withdraw a 86.3 child under the age of seven from enrollment at any time. 86.4 (b) A school district by annual board action may require 86.5 children subject to this subdivision to receive instruction in 86.6 summer school. A district that acts to require children to 86.7 receive instruction in summer school shall establish at the time 86.8 of its action the criteria for determining which children must 86.9 receive instruction. 86.10 Sec. 2. Minnesota Statutes 1998, section 120A.41, is 86.11 amended to read: 86.12 120A.41 [LENGTH OF SCHOOL YEAR; MINIMUM NUMBER OF DAYS OF 86.13 INSTRUCTION.] 86.14 For the 1999-2000 school year and later, a school board's 86.15 annual school calendar must include at leastthree86.16additional170 days of student instructionbeyond the number of86.17days of student instruction the board formally adopted as its86.18school calendar at the beginning of the 1996-1997 school year., 86.19 not including summer school, or the equivalent of 170 days of 86.20 student instruction in a district operating a flexible school 86.21 year program, and at least 175 days when school is in session. 86.22 For grades 1 to 12, days devoted to parent-teacher conferences, 86.23 teachers' workshops, or other staff development opportunities 86.24 are not part of the minimum number of days of student 86.25 instruction. Days devoted to meetings authorized or called by 86.26 the commissioner are not part of the required minimum number of 86.27 days of student instruction. 86.28 (Effective Date: Section 2 (120A.41) is effective for the 86.29 1999-2000 school year and thereafter.) 86.30 Sec. 3. Minnesota Statutes 1998, section 122A.07, 86.31 subdivision 1, is amended to read: 86.32 Subdivision 1. [APPOINTMENT OF MEMBERS.] The board of 86.33 teaching consists of 11 members appointed by the governor, with86.34the advice and consent of the senate. Membership terms, 86.35 compensation of members, removal of members, the filling of 86.36 membership vacancies, and fiscal year and reporting requirements 87.1 are as provided in sections 214.07 to 214.09. No member may be 87.2 reappointed for more than one additional term. 87.3 (Effective Date: Section 3 (122A.07, subdivision 1) is 87.4 effective the day following final enactment, and applies 87.5 retroactively to appointments to the board made before that 87.6 date, so that senate confirmation is not required for any 87.7 pending appointment.) 87.8 Sec. 4. Minnesota Statutes 1998, section 122A.18, is 87.9 amended by adding a subdivision to read: 87.10 Subd. 7a. [SUBSTITUTE TEACHER LICENSES.] (a) The board of 87.11 teaching may grant a license limited to substitute teaching to a 87.12 person who is enrolled in and making satisfactory progress in a 87.13 board-approved teacher program and who has successfully 87.14 completed student teaching. This license shall be valid for one 87.15 year or until the person successfully completes the teacher 87.16 preparation program, whichever occurs first. 87.17 (b) The department of children, families, and learning 87.18 shall develop procedures to expeditiously issue licenses under 87.19 paragraph (a). Upon receipt of a person's application for 87.20 licensure and other required documents, the department shall 87.21 complete processing of the application within one week. 87.22 Sec. 5. Minnesota Statutes 1998, section 122A.60, 87.23 subdivision 3, is amended to read: 87.24 Subd. 3. [STAFF DEVELOPMENT OUTCOMES.] The staff 87.25 development committee must adopt a staff development plan for 87.26 improving student achievement of education outcomes. The plan 87.27 must be consistent with education outcomes that the school board 87.28 determines. The plan must include ongoing staff development 87.29 activities that contribute toward continuous improvement in 87.30 achievement of the following goals: 87.31 (1) improve student achievement of state and local 87.32 education standards in all areas of the curriculum by using best 87.33 practices methods; 87.34 (2) effectively meet the needs of a diverse student 87.35 population, including at-risk children, children with 87.36 disabilities, and gifted children, within the regular classroom 88.1 and other settings; 88.2 (3) provide an inclusive curriculum for a racially, 88.3 ethnically, and culturally diverse student population that is 88.4 consistent with the state education diversity rule and the 88.5 district's education diversity plan; 88.6 (4) improve staff ability to collaborate and consult with 88.7 one another and to resolve conflicts; 88.8 (5) effectively teach and model violence prevention policy 88.9 and curriculum that address issues of harassment and teach 88.10 nonviolent alternatives for conflict resolution;and88.11 (6) provide teachers and other members of site-based 88.12 management teams with appropriate management and financial 88.13 management skills; and 88.14 (7) effectively mentor or support teachers new to the 88.15 school or district. 88.16 Sec. 6. Minnesota Statutes 1998, section 122A.61, 88.17 subdivision 1, is amended to read: 88.18 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 88.19 required to reserve an amount equal to at least one percent of 88.20 the basic revenue under section 126C.10, subdivision 2, for 88.21 in-service education for programs under section 120B.22, 88.22 subdivision 2, for staff development plans, including plans for 88.23 challenging instructional activities and experiences under 88.24 section 122A.60, and for curriculum development and programs, 88.25 other in-service education, teachers' workshops, teacher 88.26 conferences, the cost of substitute teachers staff development 88.27 purposes, and other related costs for staff development 88.28 efforts. Districts may expend an additional amount ofbasic88.29 unreserved revenue for staff development based on their needs. 88.30 With the exception of amounts reserved for staff development 88.31 from revenues allocated directly to school sites, the board must 88.32 initially allocate 50 percent of the reserved revenue to each 88.33 school site in the district on a per teacher basis, which must 88.34 be retained by the school site until used. The board may retain 88.35 25 percent to be used for district wide staff development 88.36 efforts. The remaining 25 percent of the revenue must first be 89.1 used to implement mentoring programs to assist teachers in the 89.2 first years of teaching in the district and then may be used to 89.3 make grants to school sites that demonstrate exemplary use of 89.4 allocated staff development revenue. A grant may be used for 89.5 any purpose authorized under section 120B.22, subdivision 2, 89.6 122A.60, or for the costs of curriculum development and 89.7 programs, other in-service education, teachers' workshops, 89.8 teacher conferences, substitute teachers for staff development 89.9 purposes, and other staff development efforts, and determined by 89.10 the site decision-making team. The site decision-making team 89.11 must demonstrate to the school board the extent to which staff 89.12 at the site have met the outcomes of the program. The board may 89.13 withhold a portion of initial allocation of revenue if the staff 89.14 development outcomes are not being met. 89.15 Sec. 7. Minnesota Statutes 1998, section 123B.36, 89.16 subdivision 1, is amended to read: 89.17 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 89.18 purposes of this subdivision, "home school" means a home school 89.19 as defined in sections 120A.22 and 120A.24 with five or fewer 89.20 students receiving instruction. 89.21 (b) A school board is authorized to require payment of fees 89.22 in the following areas: 89.23 (1) in any program where the resultant product, in excess 89.24 of minimum requirements and at the pupil's option, becomes the 89.25 personal property of the pupil; 89.26 (2) admission fees or charges for extra curricular 89.27 activities, where attendance is optional and where the admission 89.28 fees or charges a student must pay to attend or participate in 89.29 an extracurricular activity is the same for all students, 89.30 regardless of whether the student is enrolled in a public or a 89.31 home school; 89.32 (3) a security deposit for the return of materials, 89.33 supplies, or equipment; 89.34 (4) personal physical education and athletic equipment and 89.35 apparel, although any pupil may personally provide it if it 89.36 meets reasonable requirements and standards relating to health 90.1 and safety established by the board; 90.2 (5) items of personal use or products that a student has an 90.3 option to purchase such as student publications, class rings, 90.4 annuals, and graduation announcements; 90.5 (6) fees specifically permitted by any other statute, 90.6 including but not limited to section 171.05, subdivision 2; 90.7 provided (i) driver education fees do not exceed the actual cost 90.8 to the school and school district of providing driver education, 90.9 and (ii) the driver education courses are open to enrollment to 90.10 persons between the ages of 15 and 18 who reside or attend 90.11 school in the school district; 90.12 (7) field trips considered supplementary to a district 90.13 educational program; 90.14 (8) any authorized voluntary student health and accident 90.15 benefit plan; 90.16 (9) for the use of musical instruments owned or rented by 90.17 the district, a reasonable rental fee not to exceed either the 90.18 rental cost to the district or the annual depreciation plus the 90.19 actual annual maintenance cost for each instrument; 90.20 (10) transportation of pupils to and from extra curricular 90.21 activities conducted at locations other than school, where 90.22 attendance is optional; 90.23 (11) transportation of pupils to and from school for which 90.24 aid for fiscal year 1996 is not authorized under Minnesota 90.25 Statutes 1994, section 124.223, subdivision 1, and for which 90.26 levy for fiscal year 1996 is not authorized under Minnesota 90.27 Statutes 1994, section 124.226, subdivision 5, if a district 90.28 charging fees for transportation of pupils establishes 90.29 guidelines for that transportation to ensure that no pupil is 90.30 denied transportation solely because of inability to pay; 90.31 (12) motorcycle classroom education courses conducted 90.32 outside of regular school hours; provided the charge must not 90.33 exceed the actual cost of these courses to the school district; 90.34 (13) transportation to and from post-secondary institutions 90.35 for pupils enrolled under the post-secondary enrollment options 90.36 program under section 123B.88, subdivision 22. Fees collected 91.1 for this service must be reasonable and must be used to reduce 91.2 the cost of operating the route. Families who qualify for 91.3 mileage reimbursement under section 124D.09, subdivision 22, may 91.4 use their state mileage reimbursement to pay this fee. If no 91.5 fee is charged, districts must allocate costs based on the 91.6 number of pupils riding the route. 91.7 (Effective Date: Section 7 (123B.36, subdivision 1) is 91.8 effective for the 1999-2000 school year and later.) 91.9 Sec. 8. Minnesota Statutes 1998, section 123B.49, 91.10 subdivision 4, is amended to read: 91.11 Subd. 4. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 91.12 (a) The board may take charge of and control all extracurricular 91.13 activities of the teachers and children of the public schools in 91.14 the district. Extracurricular activities means all direct and 91.15 personal services forpublic schoolpupils for their enjoyment 91.16 that are managed and operated under the guidance of an adult or 91.17 staff member. The board shall allow all resident pupils 91.18 receiving instruction in a home school as defined in section 91.19 123B.36, subdivision 1, paragraph (a), to be eligible to fully 91.20 participate in extracurricular activities on the same basis as 91.21 public school students. 91.22 (b) Extracurricular activities have all of the following 91.23 characteristics: 91.24 (1) they are not offered for school credit nor required for 91.25 graduation; 91.26 (2) they are generally conducted outside school hours, or 91.27 if partly during school hours, at times agreed by the 91.28 participants, and approved by school authorities; 91.29 (3) the content of the activities is determined primarily 91.30 by the pupil participants under the guidance of a staff member 91.31 or other adult. 91.32 (c) If the board does not take charge of and control 91.33 extracurricular activities, these activities shall be 91.34 self-sustaining with all expenses, except direct salary costs 91.35 and indirect costs of the use of school facilities, met by dues, 91.36 admissions, or other student fundraising events. The general 92.1 fund must reflect only those salaries directly related to and 92.2 readily identified with the activity and paid by public funds. 92.3 Other revenues and expenditures for extra curricular activities 92.4 must be recorded according to the "Manual of Instruction for 92.5 Uniform Student Activities Accounting for Minnesota School 92.6 Districts and Area Vocational-Technical Colleges." 92.7 Extracurricular activities not under board control must have an 92.8 annual financial audit and must also be audited annually for 92.9 compliance with this section. 92.10 (d) If the board takes charge of and controls 92.11 extracurricular activities, any or all costs of these activities 92.12 may be provided from school revenues and all revenues and 92.13 expenditures for these activities shall be recorded in the same 92.14 manner as other revenues and expenditures of the district. 92.15 (e) If the board takes charge of and controls 92.16 extracurricular activities, the teachers or pupils in the 92.17 district must not participate in such activity, nor shall the 92.18 school name or any allied name be used in connection therewith, 92.19 except by consent and direction of the board. 92.20 (Effective Date: Section 8 (123B.49, subdivision 4) is 92.21 effective for the 1999-2000 school year and later.) 92.22 Sec. 9. Minnesota Statutes 1998, section 124D.10, 92.23 subdivision 3, is amended to read: 92.24 Subd. 3. [SPONSOR; GRANT.] A school board, intermediate 92.25 school district school board, education cooperative board, town 92.26 or city governing entity, private college, community college, 92.27 state university, technical college, or the University of 92.28 Minnesota may sponsor one or more charter schools. 92.29 Sec. 10. Minnesota Statutes 1998, section 124D.10, is 92.30 amended by adding a subdivision to read: 92.31 Subd. 3a. [CHARTER SCHOOL APPEALS BOARD.] The commissioner 92.32 shall appoint a charter school appeals board of nine members. 92.33 The board must review and approve or disapprove charter school 92.34 applications and requests for waivers. The board must provide 92.35 outreach and technical assistance to sponsors. 92.36 (Effective date: Section 10 (124D.10, subdivision 3a) is 93.1 effective June 30, 2000, to be consistent with sections 22 (Laws 93.2 1998, chapter 398, article 6, section 38) and 23 (Laws 1998, 93.3 chapter 398, article 6, section 39).) 93.4 Sec. 11. Minnesota Statutes 1998, section 124D.10, 93.5 subdivision 4, is amended to read: 93.6 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 93.7 authorize one or more licensed teachers under section 122A.18, 93.8 subdivision 1, to operate a charter school subject to approval 93.9 by the state board. A board must vote on charter school 93.10 application for sponsorship no later than 90 days after 93.11 receiving the application. After 90 days, the applicant may 93.12 apply to the state board. If a board elects not to sponsor a 93.13 charter school, the applicant may appeal the board's decision to 93.14 the state boardif two members of the board voted to sponsor the93.15school. If the state board authorizes the school, the state 93.16 board must sponsor the school according to this section. The 93.17 school must be organized and operated as a cooperative under 93.18 chapter 308A or nonprofit corporation under chapter 317A. 93.19 (b) Before the operators may form and operate a school, the 93.20 sponsor must file an affidavit with the state board stating its 93.21 intent to authorize a charter school. The affidavit must state 93.22 the terms and conditions under which the sponsor would authorize 93.23 a charter school. The state board must approve or disapprove 93.24 the sponsor's proposed authorization within 60 days of receipt 93.25 of the affidavit. Failure to obtain state board approval 93.26 precludes a sponsor from authorizing the charter school that was 93.27 the subject of the affidavit. 93.28 (c) The operators authorized to organize and operate a 93.29 school must hold an election for members of the school's board 93.30 of directors in a timely manner after the school is operating. 93.31 Any staff members who are employed at the school, including 93.32 teachers providing instruction under a contract with a 93.33 cooperative, and all parents of children enrolled in the school 93.34 may participate in the election. Licensed teachers employed at 93.35 the school, including teachers providing instruction under a 93.36 contract with a cooperative, must be a majority of the members 94.1 of the board of directors, unless the state board waives the 94.2 requirement for the school. A provisional board may operate 94.3 before the election of the school's board of directors. Board 94.4 of director meetings must comply with section 471.705. A 94.5 charter school established under section 124D.101 must elect a 94.6 board of directors under this paragraph. 94.7 (d) The granting or renewal of a charter by a sponsoring 94.8 entity must not be conditioned upon the bargaining unit status 94.9 of the employees of the school. 94.10 Sec. 12. Minnesota Statutes 1998, section 124D.10, 94.11 subdivision 5, is amended to read: 94.12 Subd. 5. [CONVERSION OF EXISTING SCHOOLS.] A board may 94.13 convert one or more of its existing schools to charter schools 94.14 under this section if90 percentthe majority of the full-time 94.15 teachers at the school sign a petition seeking conversion. The 94.16 conversion must occur at the beginning of an academic year. 94.17 Sec. 13. Minnesota Statutes 1998, section 124D.10, 94.18 subdivision 6, is amended to read: 94.19 Subd. 6. [CONTRACT.] The sponsor's authorization for a 94.20 charter school must be in the form of a written contract signed 94.21 by the sponsor and the board of directors of the charter 94.22 school. The contract must be completed within 45 days of the 94.23 date the state board approves the sponsor's proposed 94.24 authorization. The contract for a charter school must be in 94.25 writing and contain at least the following: 94.26 (1) a description of a program that carries out one or more 94.27 of the purposes in subdivision 1; 94.28 (2) specific outcomes pupils are to achieve under 94.29 subdivision 10; 94.30 (3) admission policies and procedures; 94.31 (4) management and administration of the school; 94.32 (5) requirements and procedures for program and financial 94.33 audits; 94.34 (6) how the school will comply with subdivisions 8, 13, 16, 94.35 and 23; 94.36 (7) assumption of liability by the charter school; 95.1 (8) types and amounts of insurance coverage to be obtained 95.2 by the charter school; 95.3 (9) the term of the contract, which may be up to three 95.4 years; and 95.5 (10) if the board of directors or the operators of the 95.6 charter school provide special instruction and services for 95.7 children with a disability under sections 125A.03 to 125A.24, 95.8 and 125A.65, a description of the financial parameters within 95.9 which the charter school will operate to provide the special 95.10 instruction and services to children with a disability. 95.11 Sec. 14. Minnesota Statutes 1998, section 124D.10, 95.12 subdivision 10, is amended to read: 95.13 Subd. 10. [PUPIL PERFORMANCE.] A charter school must 95.14 design its programs to at least provide instruction in the 95.15 subject areas under section 120A.22, subdivision 9, and meet the 95.16outcomesbasic skills requirements in reading, mathematics, and 95.17 writing adopted by the state board for public school students. 95.18 In the absence of state board requirements, the school must meet 95.19 the outcomes contained in the contract with the sponsor. The 95.20 achievement levels of the outcomes contained in the contract may 95.21 exceed the achievement levels of any outcomes adopted by the 95.22 state board for public school students. 95.23 (Effective Date: Section 14 (124D.10, subdivision 10) is 95.24 effective for the 1999-2000 school year and later.) 95.25 Sec. 15. Minnesota Statutes 1998, section 124D.10, 95.26 subdivision 11, is amended to read: 95.27 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 95.28 charter school must employ or contract with necessary teachers, 95.29 as defined by section 122A.15, subdivision 1, who hold valid 95.30 licenses to perform the particular service for which they are 95.31 employed in the school. The school may employ necessary 95.32 employees who are not required to hold teaching licenses to 95.33 perform duties other than teaching and may contract for other 95.34 services. The school may discharge teachers and nonlicensed 95.35 employees. A teacher, without holding a valid administrator's 95.36 license, may perform administrative, supervisory, or 96.1 instructional leadership duties. 96.2 The board of directors also shall decide matters related to 96.3 the operation of the school, including budgeting, curriculum and 96.4 operating procedures. 96.5 (Effective Date: Section 15 (124D.10, subdivision 11) is 96.6 effective for the 1999-2000 school year and later.) 96.7 Sec. 16. Minnesota Statutes 1998, section 124D.11, 96.8 subdivision 4, is amended to read: 96.9 Subd. 4. [BUILDING LEASE AID.] When a charter school finds 96.10 it economically advantageous to rent or lease a building or land 96.11 for any instructional purposes and it determines that the total 96.12 operating capital revenue under section 126C.10, subdivision 13, 96.13 is insufficient for this purpose, it may apply to the 96.14 commissioner for building lease aid for this purpose. Criteria 96.15 for aid approval and revenue uses shall be as defined for the 96.16 building lease levy in section 126C.40, subdivision 1, 96.17 paragraphs (a) and (b). The amount of building lease aid per 96.18 pupil unit served for a charter school for any year shall not 96.19 exceed the lesser of (a)8090 percent of the approved cost or 96.20 (b) the product of the pupil units served for the current school 96.21 year timesthe sum of the state average debt redemption fund96.22revenue plus capital revenue, according to section 126C.40, per96.23pupil unit served for the current fiscal year$1,200. 96.24 Sec. 17. Minnesota Statutes 1998, section 124D.11, 96.25 subdivision 6, is amended to read: 96.26 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 96.27 school is eligible to receive other aids, grants, and revenue 96.28 according to chapters 120A to 129C, as though it were a district. 96.29except that, notwithstanding section 127A.45, subdivision 3, the96.30payments must be of an equal amount on each of the 23 payment96.31dates unless a charter school is in its first year of operation96.32in which case it shall receive on its first payment date ten96.33percent of its cumulative amount guaranteed for the year and 2296.34payments of an equal amount thereafter the sum of which shall be96.3590 percent of the cumulative amount guaranteed. However, it96.36 (b) Notwithstanding paragraph (a), a charter school may not 97.1 receive aid, a grant, or revenue if a levy is required to obtain 97.2 the money, except as otherwise provided in this section. 97.3 (c) Federal aid received by the state must be paid to the 97.4 school, if it qualifies for the aid as though it were a school 97.5 district. 97.6(b)(d) A charter school may receive money from any source 97.7 for capital facilities needs. In the year-end report to the 97.8 state board of education, the charter school shall report the 97.9 total amount of funds received from grants and other outside 97.10 sources. 97.11 Sec. 18. Minnesota Statutes 1998, section 124D.11, 97.12 subdivision 7, is amended to read: 97.13 Subd. 7. [USE OF STATE MONEY.] Money received from the 97.14 state may not be used to purchase land or buildings unless the 97.15 written contract for a charter school provides for a charter 97.16 school program operated jointly by the board of directors of the 97.17 charter school and a residential academy under Laws 1998, 97.18 chapter 398, article 5, section 46, in which case money may be 97.19 used to purchase land or buildings. The school may own land and 97.20 buildings if obtained through nonstate sources. 97.21 Sec. 19. Minnesota Statutes 1998, section 124D.11, 97.22 subdivision 8, is amended to read: 97.23 Subd. 8. [START-UP COSTS.] (a) During the first two years 97.24 of a charter school's operation, the charter school is eligible 97.25 for aid to pay for start-up costs and additional operating costs. 97.26 (b) In the first year of operation, start-up cost aid 97.27 equals thegreaterlesser of: 97.28 (1)$50,000$250,000 per charter school; or 97.29 (2)$500$50,000 plus the product of $2,000 times the 97.30 charter school's pupil units served for that year. 97.31 (c) In the second year of operation, start-up cost aid 97.32 equals the greater of: 97.33 (1) $50,000 per charter school; or 97.34 (2) $500 times the charter school's pupil units served for 97.35 that year. 97.36 (d) A charter school in its third year of operation or 98.1 later is eligible for one additional year of start-up cost aid 98.2 equal to $500 times the increase in its pupil units in the 98.3 current fiscal year over its pupil units served in the preceding 98.4 fiscal year if the charter school's board has adopted a 98.5 resolution substantially expanding the mission of the charter 98.6 school or substantially expanding the grades served by the 98.7 charter school. 98.8 (e) The department of children, families, and learning must 98.9 pay charter school start-up aid as follows: 98.10 (1) for any charter school not yet operating that qualifies 98.11 for aid under this subdivision, 90 percent of the start-up cost 98.12 aid must be paid within 60 days of the date on which the state 98.13 board of education approves the sponsor's proposed authorization 98.14 under section 124D.10, subdivision 4, clause (b); or 98.15 (2) in all other cases, 90 percent of the funding for 98.16 start-up costs to each eligible charter school within 45 days 98.17 after the first day of student attendance for that year. 98.18 Sec. 20. Minnesota Statutes 1998, section 124D.11, is 98.19 amended by adding a subdivision to read: 98.20 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 98.21 Notwithstanding section 127A.45, subdivision 3, aid payments for 98.22 the current fiscal year to a charter school not in its first 98.23 year of operation shall be of an equal amount on each of the 23 98.24 payment dates. A charter school in its first year of operation 98.25 shall receive, on its first payment date, ten percent of its 98.26 cumulative amount guaranteed for the year and 22 payments of an 98.27 equal amount thereafter the sum of which shall be 90 percent of 98.28 the cumulative amount guaranteed. 98.29 (b) Notwithstanding paragraph (a) and section 127A.45, 98.30 subdivision 3, start-up cost aid must be paid according to 98.31 subdivision 8. 98.32 Sec. 21. Minnesota Statutes 1998, section 125B.05, 98.33 subdivision 3, is amended to read: 98.34 Subd. 3. [SOFTWARE DEVELOPMENT.]The commissioner may98.35charge school districts or cooperative units for the actual cost98.36of software development used by the district or cooperative99.1unit. Any amount received is annually appropriated to the99.2department of children, families, and learning for this99.3purpose.A school district, charter school, or cooperative unit 99.4 may not implement apayrollfinancial, student, or staff 99.5 software systemafter June 30, 1994,until the system has been 99.6 reviewed by the department to ensure that it provides the 99.7 required data elements and format. 99.8 Sec. 22. Laws 1998, chapter 398, article 6, section 38, is 99.9 amended to read: 99.10 Sec. 38. [REPEALER.] 99.11 (a) Minnesota Statutes 1996, section 121.11, subdivisions 99.12 5, 7, 7b, 9, 11, 12, and 14; and Minnesota Statutes 1997 99.13 Supplement, section 121.11, subdivision 7e, are repealed 99.14 effectiveDecember 31, 1999June 30, 2000. 99.15 (b) Minnesota Statutes 1996, section 121.11, subdivision 99.16 7d, is repealed effective January 10, 1999. 99.17 (c) Minnesota Statutes 1996, section 124.647; and Minnesota 99.18 Statutes 1997 Supplement, section 169.452, are repealed. 99.19 (Effective Date: Section 22 (Laws 1998, chapter 398, 99.20 article 6, section 38) is effective the day following final 99.21 enactment.) 99.22 Sec. 23. Laws 1998, chapter 398, article 6, section 39, is 99.23 amended to read: 99.24 Sec. 39. [EFFECTIVE DATES.] 99.25 (a) Sections 1 to 13 are effectiveDecember 31, 1999June 99.26 30, 2000. 99.27 (b) Sections 14, 28, 34, and 35 are effective the day 99.28 following final enactment. 99.29 (c) Sections 17, 25, and 26 are effective July 1, 1998. 99.30 (d) Section 29 is effective for the 2000-2001 school year. 99.31 (e) Section 36 is effective June 30, 1998. 99.32 (Effective Date: Section 23 (Laws 1998, chapter 398, 99.33 article 6, section 39) is effective the day following final 99.34 enactment.) 99.35 Sec. 24. [PILOT PROGRAM TO IMPROVE TEACHER TRAINING.] 99.36 Subdivision 1. [ESTABLISHMENT.] A pilot program is 100.1 established to allow Minnesota school districts, in 100.2 collaboration with accredited teacher preparation institutions, 100.3 to offer undergraduate and graduate teacher training 100.4 opportunities. The program must provide teacher training 100.5 opportunities that effectively address the needs of different 100.6 types of schools, students, and teachers. 100.7 Subd. 2. [ELIGIBILITY; PROGRAM USES; EMPLOYMENT TERMS.] (a) 100.8 An applicant under this pilot program must be a school 100.9 district. The program must be used to assist in improving 100.10 teacher education by placing teacher education students in 100.11 elementary and secondary classrooms under the supervision of a 100.12 licensed classroom teacher. 100.13 (b) Each school district participating in this program may 100.14 select the teacher training model that best promotes 100.15 understanding the needs of each educational system or 100.16 institution. For example: 100.17 (1) a public school educator may teach courses that assist 100.18 in preparing future educators, or take professional development 100.19 courses; or 100.20 (2) a post-secondary teacher may teach courses at the 100.21 school district and mentor student teachers. Participation is 100.22 not limited to one school or institution and may involve other 100.23 participants including parent/community groups, teacher 100.24 organizations, and business groups. Participating schools and 100.25 institutions are encouraged to develop program components that 100.26 engage nontraditional teacher education students. 100.27 (c) Temporary placements of teachers made under this 100.28 program must not have a negative effect on participants' 100.29 salaries, seniority, or other benefits. Specifically, temporary 100.30 placements of teachers may not displace or cause any reduction 100.31 in the number of nonovertime hours worked, wages, or benefits of 100.32 a currently employed teacher. Notwithstanding Minnesota 100.33 Statutes, sections 122A.16 and 123B.02, subdivision 14, a member 100.34 of the staff of a post-secondary institution may teach in an 100.35 elementary or secondary school or perform a service, agreed upon 100.36 under this section, for which a license would otherwise be 101.1 required without holding the applicable license. In addition, a 101.2 licensed educator employed by a school district may teach or 101.3 perform a service, agreed upon under this section, at a 101.4 post-secondary institution without meeting the applicable 101.5 qualifications of the post-secondary institution. A district is 101.6 not subject to Minnesota Statutes, section 127A.43, as a result 101.7 of entering into an agreement according to this section that 101.8 enables a post-secondary educator to teach or provide services 101.9 in the district. All arrangements and details regarding an 101.10 exchange must be mutually agreed to by each participating school 101.11 district and post-secondary institution before implementing the 101.12 exchange and must not violate any term or condition of the 101.13 participating school district's collective bargaining agreement. 101.14 (d) An educator who held a temporary position or an 101.15 exchanged position under this section must be continued in or 101.16 restored to the position previously held, or to a position of 101.17 like seniority, status, and pay upon return. Retirement 101.18 benefits under an employer-sponsored pension or retirement plan 101.19 must not be reduced because of time spent on an exchange or 101.20 temporary position under this section. 101.21 (e) An educator who is continued in or restored to a 101.22 position under paragraph (d): 101.23 (1) must be continued or restored without loss of 101.24 seniority; and 101.25 (2) may participate in insurance or other benefits offered 101.26 by the employer under its established rules and practices. 101.27 Subd. 3. [APPLICATION PROCESS.] To participate in this 101.28 pilot program, a school district must submit an application to 101.29 the commissioner of children, families, and learning in the form 101.30 and manner established by the commissioner. The application 101.31 must describe how the applicant will improve teacher education 101.32 by providing undergraduate or graduate teacher training 101.33 opportunities in order to effectively address the needs of 101.34 different types of schools, students, and teachers, and how the 101.35 applicant will use technology to implement the program. The 101.36 commissioner may require additional information from an 102.1 applicant. 102.2 Subd. 4. [PROGRAM PARTICIPANTS; MONETARY AWARDS.] (a) When 102.3 selecting program participants, the commissioner must determine: 102.4 (1) whether an applicant has met the requirements of this 102.5 section; 102.6 (2) whether the location of a program is particularly 102.7 suitable for realizing the purpose of this section; 102.8 (3) the number of teacher candidates, teachers, and 102.9 students who would participate in the program; 102.10 (4) the ability of the applicant to demonstrate the 102.11 positive effect of the existing program on elementary and 102.12 secondary students enrolled in a participating site by using 102.13 standardized test scores, the rate at which students pass the 102.14 state's reading, math, and writing basic skills tests, or other 102.15 valid and reliable assessment measures; 102.16 (5) whether accredited teacher preparation institutions and 102.17 other organizations representing parents, business interests, 102.18 and community groups are integral participants in the proposed 102.19 program; and 102.20 (6) the ability of the applicant to provide information 102.21 about the program to interested school districts and 102.22 post-secondary institutions. 102.23 (b) The commissioner shall create an advisory committee 102.24 composed of representatives of at least parents, the community, 102.25 teachers, business groups, the state board of teaching, and 102.26 accredited four-year, degree-granting institutions to review and 102.27 recommend applicants to the commissioner. The commissioner may 102.28 select up to five applicants to participate in this program for 102.29 the 1999-2000 school year and later. Participants must be 102.30 located throughout the state. The commissioner must provide 102.31 one-time start-up costs of up to $20,000 per participating site. 102.32 Subd. 5. [POST-SECONDARY INSTITUTION FUNDING.] 102.33 Notwithstanding other law to the contrary, and consistent with 102.34 subdivision 6, a post-secondary institution participating in 102.35 this pilot program must provide the instructional costs of 102.36 teacher education students and may charge the students the costs 103.1 of tuition. 103.2 Subd. 6. [PARTICIPANTS' FEES.] A school district 103.3 participating in this program may charge reasonable fees to 103.4 teacher education students placed in an elementary or secondary 103.5 classroom to receive teacher training. 103.6 Subd. 7. [EVALUATION.] The commissioner must contract with 103.7 an independent qualified expert to evaluate the impact of the 103.8 pilot program on teacher efficacy and student performance and 103.9 present a report to the commissioner and the education 103.10 committees of the legislature by February 15, 2005. 103.11 (Effective Date: Section 24 (pilot program to improve 103.12 teacher training) is effective the day following final 103.13 enactment.) 103.14 Sec. 25. [SALARY CREDIT FOR PRIOR EXPERIENCE AND 103.15 TRAINING.] 103.16 Notwithstanding other law to the contrary, and for purposes 103.17 of determining the placement on the salary schedule of a program 103.18 graduate of the collaborative urban educator, southeast Asian 103.19 teacher licensure, or circles of support in educational 103.20 leadership program, a school district that employs a program 103.21 graduate may give additional credit on the salary schedule for 103.22 that person's teaching experience and academic preparation 103.23 attained while participating in the program, and also may 103.24 consider the person's employment experience and academic 103.25 preparation attained before enrolling in any of these three 103.26 programs. 103.27 (Effective Date: Section 25 (salary credit) is effective 103.28 for the 1999-2000 school year.) 103.29 Sec. 26. [GRANT CLARIFICATION.] 103.30 Notwithstanding any other law to the contrary, the portion 103.31 of the grant awarded to the Southwest Star Concept School for 103.32 funds that were initially awarded, but not encumbered by July 1, 103.33 1998, is available until June 30, 1999, to independent school 103.34 district No. 330, Heron Lake-Okabena. 103.35 (Effective Date: Section 26 (grant clarification) is 103.36 effective retroactive to June 30, 1998.) 104.1 Sec. 27. [CHANGES TO STATE BOARD OF EDUCATION.] 104.2 The provisions of Laws 1998, chapter 398, article 5, 104.3 section 55, and related sections apply except as provided under 104.4 Minnesota Statutes, section 124D.10, subdivision 3a. 104.5 Sec. 28. [APPROPRIATIONS.] 104.6 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 104.7 LEARNING.] The sums indicated in this section are appropriated 104.8 from the general fund to the department of children, families, 104.9 and learning for the fiscal years designated. 104.10 Subd. 2. [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 104.11 grant to independent school district No. 625, St. Paul, for the 104.12 operation of a community-based school program: 104.13 $3,000,000 ..... 2000 104.14 The school district must report to the legislature on the 104.15 academic and social results of this program by January 15, 2000. 104.16 Any balance in the first year does not cancel but is 104.17 available in the second year. This is a one-time appropriation. 104.18 Subd. 3. [RIGOROUS STANDARDS.] For implementing rigorous 104.19 academic standards under Minnesota Statutes, section 120B.02: 104.20 $ 8,458,000 ..... 2000 104.21 $ 8,358,000 ..... 2001 104.22 Of this amount, $500,000 each year is for the department to 104.23 contract with the independent office of educational 104.24 accountability under Minnesota Statutes, section 120B.31, 104.25 subdivision 3. 104.26 $100,000 of the fiscal year 2000 amount is a one-time 104.27 appropriation to the independent office of educational 104.28 accountability to establish statistically reliable 104.29 norm-referenced interpretations based upon nationally 104.30 representative samples of students that align with districts' 104.31 and schools' existing longitudinal norm-referenced databases for 104.32 the results from the state's third and fifth grade reading, 104.33 mathematics, and writing tests and the eighth grade basic skills 104.34 reading and mathematics tests that comprise part of the 104.35 statewide testing system under Minnesota Statutes, section 104.36 120B.30, subdivision 1. 105.1 Any balance in the first year does not cancel but is 105.2 available in the second year. 105.3 Subd. 4. [ADVANCED PLACEMENT AND INTERNATIONAL 105.4 BACCALAUREATE PROGRAMS.] For the state advanced placement and 105.5 international baccalaureate programs: 105.6 $1,875,000 ..... 2000 105.7 $1,875,000 ..... 2001 105.8 Notwithstanding Minnesota Statutes, section 120B.13, 105.9 subdivisions 1 and 2, $375,000 each year is for teachers to 105.10 attend subject matter summer training programs and follow-up 105.11 support workshops approved by the advanced placement or 105.12 international baccalaureate programs. The amount of the subsidy 105.13 for each teacher attending an advanced placement or 105.14 international baccalaureate summer training program or workshop 105.15 shall be the same. The commissioner shall determine the payment 105.16 process and the amount of the subsidy. 105.17 Notwithstanding Minnesota Statutes, section 120B.13, 105.18 subdivision 3, in each year to the extent of available 105.19 appropriations, the commissioner shall pay all examination fees 105.20 for all students sitting for an advanced placement examination, 105.21 international baccalaureate examination, or both. If this 105.22 amount is not adequate, the commissioner may pay less than the 105.23 full examination fee. 105.24 A teacher or team of teachers who teach an advanced 105.25 placement or international baccalaureate course shall receive a 105.26 stipend for each student in that course taught by the teacher or 105.27 team of teachers who receives a three or better on the advanced 105.28 placement or a four or better on the international baccalaureate 105.29 examination that covers the subject matter of the course. The 105.30 commissioner shall determine the payment process and the amount 105.31 of the teacher stipend ranging from $25 to $50 for each student 105.32 receiving a qualifying score. 105.33 A stipend awarded to a teacher or team of teachers under 105.34 this subdivision shall not be a mandatory subject of bargaining 105.35 under Minnesota Statutes, chapter 179A, or any other law and 105.36 shall not be a term or condition of employment. The amount of 106.1 any award shall be final and shall not be subject to review by 106.2 an arbitrator through any grievance or other process or by a 106.3 court through any appeal process. 106.4 Any balance in the first year does not cancel but is 106.5 available in the second year. 106.6 Subd. 5. [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 106.7 grants to collaborative urban educator programs that prepare and 106.8 license people of color to teach: 106.9 $700,000 ..... 2000 106.10 $700,000 ..... 2001 106.11 Any balance in the first year does not cancel but is 106.12 available in the second year. These are one-time appropriations. 106.13 Subd. 6. [CHARTER SCHOOL BUILDING LEASE AID.] For building 106.14 lease aid according to Minnesota Statutes, section 124D.11, 106.15 subdivision 4: 106.16 $2,992,000 ..... 2000 106.17 $3,616,000 ..... 2001 106.18 The 2000 appropriation includes $194,000 for 1999 and 106.19 $2,798,000 for 2000. 106.20 The 2001 appropriation includes $311,000 for 2000 and 106.21 $3,305,000 for 2001. 106.22 Subd. 7. [CHARTER SCHOOL START-UP GRANTS.] For charter 106.23 school start-up cost aid under Minnesota Statutes, section 106.24 124D.11, subdivision 8: 106.25 $2,579,000 ..... 2000 106.26 $2,754,000 ..... 2001 106.27 The 2000 appropriation includes $100,000 for 1999 and 106.28 $2,479,000 for 2000. 106.29 The 2001 appropriation includes $275,000 for 1999 and 106.30 $2,479,000 for 2001. 106.31 Any balance in the first year does not cancel but is 106.32 available in the second year. This appropriation may also be 106.33 used for grants to convert existing schools into charter schools. 106.34 If any balance remains after payments are made to charter 106.35 schools in their first or second year of operation, a charter 106.36 school in operation before the existence of charter school 107.1 start-up aid may receive reimbursement of up to $50,000 for 107.2 unreimbursed health and safety expenditures during the charter 107.3 school's first two years of operation. 107.4 Subd. 8. [RESIDENTIAL ACADEMIES OPERATING COSTS.] For 107.5 operating costs associated with the three residential academies 107.6 created under Laws 1998, chapter 398, article 5, sections 46 and 107.7 54, subdivision 3: 107.8 $ 405,000 ..... 2000 107.9 $1,246,000 ..... 2001 107.10 Any balance in the first year does not cancel but is 107.11 available in the second year. 107.12 Subd. 9. [MINNESOTA TALENTED YOUTH MATH PROJECT.] For a 107.13 grant to the South Central Service Cooperative for the Minnesota 107.14 talented youth math project program operated by the South 107.15 Central Service Cooperative and as fiscal agent for the talented 107.16 youth math project programs established and operated by the 107.17 Northwest Service Cooperative, Northeast Service Cooperative, 107.18 North Central Service Cooperative, and Southwest/West Central 107.19 Service Cooperative. 107.20 $ 145,000 ..... 2000 107.21 $ 175,000 ..... 2001 107.22 Any balance in the first year does not cancel but is 107.23 available in the second year. This is a one-time appropriation. 107.24 Subd. 10. [PILOT PROGRAM TO IMPROVE TEACHER TRAINING.] For 107.25 providing start-up costs to participants in the pilot program to 107.26 improve teacher training: 107.27 $ 100,000 ..... 2000 107.28 The commissioner of children, families, and learning must 107.29 award $20,000 in one-time start-up costs to independent school 107.30 district No. 138, North Branch, if the district meets the 107.31 requirements of section 24. This is a one-time appropriation. 107.32 This appropriation is available until June 30, 2001. 107.33 Subd. 11. [PROFESSIONAL TEACHING STANDARDS.] For grant 107.34 awards for national board for professional teaching standards 107.35 certification and for regional coordinators to counsel and 107.36 assist teacher candidates for the certification: 108.1 $ 300,000 ..... 2000 108.2 This appropriation is available until June 30, 2001. This 108.3 is a one-time appropriation. 108.4 Subd. 12. [CLASS SIZE PROJECT.] For a class size project 108.5 in independent school district No. 12, Centennial, to 108.6 demonstrate that significantly lower class size and 108.7 instructor-to-learner ratios in a suburban community will result 108.8 in measurable achievements for students, staff, and parents: 108.9 $ 100,000 ..... 2000 108.10 This appropriation is available until June 30, 2001. This 108.11 is a one-time appropriation. 108.12 Subd. 13. [PROMOTING STUDENT SUCCESS IN KINDERGARTEN 108.13 THROUGH GRADE 12.] For a program grant to independent school 108.14 district No. 241, Albert Lea, to give at-risk children 108.15 differentiated learning opportunities for developing learning 108.16 readiness and language skills through a program that provides a 108.17 17:1 student-teacher ratio, para-educator assistance, and an 108.18 accommodation plan for each child: 108.19 $ 100,000 ..... 2000 108.20 This appropriation is available until June 30, 2001. This 108.21 is a one-time appropriation. 108.22 Subd. 14. [SCHOOL LINKED PREVENTION AND EARLY 108.23 INTERVENTION.] For a grant to independent school district No. 108.24 283, St. Louis Park, and the Aquila community together program: 108.25 $ 30,000 ..... 2000 108.26 $ 30,000 ..... 2001 108.27 The purpose of the grant is to provide students in 108.28 kindergarten through grade 6 with case management services, 108.29 individual and group counseling, prevention education, and 108.30 volunteers who serve as mentors or tutors for individual 108.31 students and their families. Any balance in the first year does 108.32 not cancel but is available in the second year. This is a 108.33 one-time appropriation. 108.34 Subd. 15. [ALTERNATIVE FACILITIES DESIGN GRANT.] For a 108.35 facilities grant to independent school district No. 495, Grand 108.36 Meadow: 109.1 $1,500,000 ..... 2000 109.2 The purpose of the grant is to demonstrate that a school 109.3 constructed using monolithic dome construction techniques can 109.4 provide operating and construction savings for school districts 109.5 throughout the state. The school district shall agree to 109.6 provide the state with information and data about the potential 109.7 benefits of this construction method. The school district shall 109.8 provide the state with an analysis of a monolithic dome as a 109.9 suitable educational environment. This is a one-time 109.10 appropriation. 109.11 Sec. 29. [REPEALER.] 109.12 (a) Minnesota Statutes 1998, section 124D.90, is repealed. 109.13 (b) Minnesota Statutes 1998, section 135A.081, is repealed 109.14 effective the day following final enactment. If the effective 109.15 date of this repeal is after May 1, 1999, the repeal shall be 109.16 retroactive to May 1, 1999. 109.17 Sec. 30. [EFFECTIVE DATES.] 109.18 When preparing the prekindergarten through grade 12 109.19 education conference committee report for adoption by the 109.20 legislature, the revisor shall combine all effective date 109.21 notations in this article into this effective dates section. 109.22 ARTICLE 6 109.23 OTHER PROGRAMS 109.24 Section 1. Minnesota Statutes 1998, section 120A.24, 109.25 subdivision 1, is amended to read: 109.26 Subdivision 1. [REPORTS TO SUPERINTENDENT.] The person in 109.27 charge of providing instruction to a child must submit the 109.28 following information to the superintendent of the district in 109.29 which the child resides: 109.30 (1) by October 1 of each school year, the name,agebirth 109.31 date, and address of each child receiving instruction; 109.32 (2) the name of each instructor and evidence of compliance 109.33 with one of the requirements specified in section 120A.22, 109.34 subdivision 10; 109.35 (3) an annual instructional calendar; and 109.36 (4) for each child instructed by a parent who meets only 110.1 the requirement of section 120A.22, subdivision 10, clause (6), 110.2 a quarterly report card on the achievement of the child in each 110.3 subject area required in section 120A.22, subdivision 9. 110.4 Sec. 2. Minnesota Statutes 1998, section 123A.48, 110.5 subdivision 10, is amended to read: 110.6 Subd. 10. [DISTRICT BOARD ADOPTION OF PROPOSED PLAT.] The 110.7 board of any independent district maintaining a secondary 110.8 school, the board of any common district maintaining a secondary 110.9 school, all or part of whose land is included in the proposed 110.10 new district, must, within 45 days of the approval of the plat 110.11 by the commissioner, either adopt or reject the plan as proposed 110.12 in the approved plat. If the board of any such district 110.13 entitled to act on the petition rejects the proposal, the 110.14 proceedings are terminated and dismissed. If any board fails to 110.15 act on the plat within the time allowed, the proceedings are 110.16 terminated. If any school board is unable to obtain a majority 110.17 of its members' votes to accept or reject the plat and plan, a 110.18 petition of residents of the district unable to obtain a 110.19 majority of votes equal to 20 percent of the votes cast in the 110.20 last school district general election in that district may be 110.21 submitted to the county auditor requesting a public vote to 110.22 accept or reject the plat and plan. The vote shall be scheduled 110.23 on the next available election date. The county auditor shall 110.24 notify the commissioner of the scheduled vote, conduct the 110.25 election in that district and certify the results of the 110.26 election to the commissioner. Other affected school boards that 110.27 approve the plat and plan may choose to hold an election. If 110.28 elections are conducted in each affected school district, 110.29 results shall be separate and a majority vote to approve the 110.30 plat and plan must be reached in each of the affected 110.31 districts. If the plat and plan are rejected by the voters, a 110.32 new plat and plan cannot be submitted, except by school board 110.33 resolution in a district where the plat and plan were rejected, 110.34 until January 1 of the year following the next school district 110.35 general election. 110.36 Sec. 3. Minnesota Statutes 1998, section 123B.195, is 111.1 amended to read: 111.2 123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 111.3 Notwithstanding section 471.88, subdivision 5, a school 111.4 board member may be newly employed or may continue to be 111.5 employed by a school district as an employee only if there is a 111.6 reasonable expectation at the beginning of the fiscal year or at 111.7 the time the contract is entered into or extended that the 111.8 amount to be earned by that officer under that contract or 111.9 employment relationship will not exceed $5,000 in that fiscal 111.10 year. Notwithstanding section 122A.40 or 122A.41 or other law, 111.11 if the officer does not receiveunanimousmajority approval to 111.12 be initially employed or to continue in employment at a meeting 111.13 at which all board members are present, that employment is 111.14 immediately terminated and that officer has no further rights to 111.15 employment while serving as a school board member in the 111.16 district. 111.17 Sec. 4. Minnesota Statutes 1998, section 124D.94, 111.18 subdivision 3, is amended to read: 111.19 Subd. 3. [BOARD OF DIRECTORS.] The board of directors of 111.20 the foundation shall consist of the commissioner of children, 111.21 families, and learning, a member of the state board of education111.22selected by the state board who shall serve as chairand 20 111.23 members to be appointed by the governor. Of the 20 members 111.24 appointed by the governor, eight shall represent a variety of 111.25 education groups and 12 shall represent a variety of business 111.26 groups. The commissioner of children, families, and learning 111.27 shall serve as secretary for the board of directors and provide 111.28 administrative support to the foundation. An executive 111.29 committee of the foundation board composed of the board officers 111.30 and chairs of board committees, may only advise and make 111.31 recommendations to the foundation board. 111.32 Sec. 5. Minnesota Statutes 1998, section 124D.94, 111.33 subdivision 6, is amended to read: 111.34 Subd. 6. [CONTRACTS.] The foundation board shall review 111.35 and approve each contract of the board. Each contract of the 111.36 foundation board shall be subject to the same review and 112.1 approval procedures as a contract of thestate board of112.2educationdepartment of children, families, and learning. 112.3 Sec. 6. Minnesota Statutes 1998, section 124D.94, 112.4 subdivision 7, is amended to read: 112.5 Subd. 7. [FOUNDATION STAFF.] (a) Thestate board112.6 foundation board with review by the commissioner shall appoint 112.7 the executive director and other staff who shall perform duties 112.8 and have responsibilities solely related to the foundation. 112.9 (b) As part of the annual plan of work, the foundation, 112.10under the direction ofwith review by thestate112.11boardcommissioner, may appoint up to three employees. The 112.12 employees appointed under this paragraph are not state employees 112.13 under chapter 43A, but are covered under section 3.736. At the 112.14 foundation board's discretion, the employees may participate in 112.15 the state health and state insurance plans for employees in 112.16 unclassified service. The employees shall be supervised by the 112.17 executive director. 112.18 Sec. 7. Minnesota Statutes 1998, section 126C.42, 112.19 subdivision 1, is amended to read: 112.20 Subdivision 1. [1977 STATUTORY OPERATING DEBT.] (a) In 112.21 each year in which so required by this subdivision, a district 112.22 must make an additional levy to eliminate its statutory 112.23 operating debt, determined as of June 30, 1977, and certified 112.24 and adjusted by the commissioner. This levy shall not be made 112.25 in more than 30 successive years and each year before it is 112.26 made, it must be approved by the commissioner and the approval 112.27 shall specify its amount. This levy shall be an amount which is 112.28 equal to the amount raised by a levy of a net tax rate of1.66112.29 1.98 percent times the adjusted net tax capacity of the district 112.30 for the preceding year for taxes payable in19912000 and 112.31 thereafter; provided that in the last year in which the district 112.32 is required to make this levy, it must levy an amount not to 112.33 exceed the amount raised by a levy of a net tax rate of1.66112.34 1.98 percent times the adjusted net tax capacity of the district 112.35 for the preceding year for taxes payable in19912000 and 112.36 thereafter. When the sum of the cumulative levies made pursuant 113.1 to this subdivision and transfers made according to section 113.2 123B.79, subdivision 6, equals an amount equal to the statutory 113.3 operating debt of the district, the levy shall be discontinued. 113.4 (b) The district must establish a special account in the 113.5 general fund which shall be designated "appropriated fund 113.6 balance reserve account for purposes of reducing statutory 113.7 operating debt" on its books and records. This account shall 113.8 reflect the levy authorized pursuant to this subdivision. The 113.9 proceeds of this levy must be used only for cash flow 113.10 requirements and must not be used to supplement district 113.11 revenues or income for the purposes of increasing the district's 113.12 expenditures or budgets. 113.13 (c) Any district which is required to levy pursuant to this 113.14 subdivision must certify the maximum levy allowable under 113.15 section 126C.13, subdivision 2, in that same year. 113.16 (d) Each district shall make permanent fund balance 113.17 transfers so that the total statutory operating debt of the 113.18 district is reflected in the general fund as of June 30, 1977. 113.19 Sec. 8. Minnesota Statutes 1998, section 126C.42, 113.20 subdivision 2, is amended to read: 113.21 Subd. 2. [1983 OPERATING DEBT.] (1) Each year, a district 113.22 may make an additional levy to eliminate a deficit in the net 113.23 unappropriated operating funds of the district, determined as of 113.24 June 30, 1983, and certified and adjusted by the commissioner. 113.25 This levy may in each year be an amount not to exceed the amount 113.26 raised by a levy of a net tax rate of1.852.2 percent times the 113.27 adjusted net tax capacity for taxes payable in19912000 and 113.28 thereafter of the district for the preceding year as determined 113.29 by the commissioner. However, the total amount of this levy for 113.30 all years it is made must not exceed the lesser of (a) the 113.31 amount of the deficit in the net unappropriated operating funds 113.32 of the district as of June 30, 1983, or (b) the amount of the 113.33 aid reduction, according to Laws 1981, Third Special Session 113.34 chapter 2, article 2, section 2, but excluding clauses (l), (m), 113.35 (n), (o), and (p), and Laws 1982, Third Special Session chapter 113.36 1, article 3, section 6, to the district in fiscal year 1983. 114.1 When the cumulative levies made pursuant to this subdivision 114.2 equal the total amount permitted by this subdivision, the levy 114.3 must be discontinued. 114.4 (2) The proceeds of this levy must be used only for cash 114.5 flow requirements and must not be used to supplement district 114.6 revenues or income for the purposes of increasing the district's 114.7 expenditures or budgets. 114.8 (3) A district that levies pursuant to this subdivision 114.9 must certify the maximum levy allowable under section 126C.13, 114.10 subdivision 2, in that same year. 114.11 Sec. 9. Minnesota Statutes 1998, section 126C.46, is 114.12 amended to read: 114.13 126C.46 [ABATEMENT LEVY.] 114.14 (a) Each year, a school district may levy an amount to 114.15 replace the net revenue lost to abatements that have occurred 114.16 under chapter 278, section 270.07, 375.192, or otherwise. The 114.17 maximum abatement levy is the sum of: 114.18 (1) the amount of the net revenue loss determined under 114.19 section 127A.49, subdivision 2, that is not paid in state aid 114.20 including any aid amounts not paid due to proration; 114.21 (2) the difference of (i) the amount of any abatements that 114.22 have been reported by the county auditor for the first six 114.23 months of the calendar year during which the abatement levy is 114.24 certified that the district chooses to levy, (ii) less any 114.25 amount actually levied under this clause that was certified in 114.26 the previous calendar year for the first six months of the 114.27 previous calendar year; and 114.28 (3) an amount equal to any interest paid on abatement 114.29 refunds. 114.30 (b) A district may spread this levy over a period not to 114.31 exceedthreetwo years. With the approval of the commissioner, 114.32 a district may spread this levy over a period not to exceed 114.33 three years. 114.34 By July 15, the county auditor shall separately report the 114.35 abatements that have occurred during the first six calendar 114.36 months of that year to the commissioner and each district 115.1 located within the county. 115.2 Sec. 10. Minnesota Statutes 1998, section 127A.45, 115.3 subdivision 2, is amended to read: 115.4 Subd. 2. [DEFINITIONS.] (a) The term "other district 115.5 receipts" means payments by county treasurers pursuant to 115.6 section 276.10, apportionments from the school endowment fund 115.7 pursuant to section 127A.33, apportionments by the county 115.8 auditor pursuant to section 127A.34, subdivision 2, and payments 115.9 to school districts by the commissioner of revenue pursuant to 115.10 chapter 298. 115.11 (b) The term "cumulative amount guaranteed" meansthe sum115.12of the following:115.13(1) one-third of the final adjustment payment according to115.14subdivision 9; plus115.15(2)the product of 115.16(i)(1) the cumulative disbursement percentage shown in 115.17 subdivision 3; times 115.18(ii)(2) the sum of 115.19 (i) 90 percent of the estimated aid and credit entitlements 115.20 paid according to subdivision 13; plus 115.21 (ii) 100 percent of the entitlements paid according to 115.22 subdivisions 11 and 12; plus 115.23 (iii) the other district receipts; plus 115.24 (iv) the final adjustment payment according to subdivision 115.25 9. 115.26 (c) The term "payment date" means the date on which state 115.27 payments to districts are made by the electronic funds transfer 115.28 method. If a payment date falls on a Saturday, a Sunday, or a 115.29 weekday which is a legal holiday, the payment shall be made on 115.30 the immediatelyfollowingpreceding business day. The 115.31 commissioner may make payments on dates other than those listed 115.32 in subdivision 3, but only for portions of payments from any 115.33 preceding payment dates which could not be processed by the 115.34 electronic funds transfer method due to documented extenuating 115.35 circumstances. 115.36 (Effective Date: Section 10 (127A.45, subdivision 2) is 116.1 effective for the payment of state aids for fiscal year 2000 and 116.2 later.) 116.3 Sec. 11. Minnesota Statutes 1998, section 127A.45, 116.4 subdivision 3, is amended to read: 116.5 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] The commissioner 116.6 shall pay to a district on the dates indicated an amount 116.7 computed as follows: the cumulative amount guaranteed minus the 116.8 sum of (a) the district's other district receipts through the 116.9 current payment, and (b) the aid and credit payments through the 116.10 immediately preceding payment. For purposes of this 116.11 computation, the payment dates and the cumulative disbursement 116.12 percentages are as follows: 116.13 Payment date Percentage 116.14 Payment 1 July 15:2.254.6 116.15 Payment 2 July 30:4.506.9 116.16 Payment 3 August 15: the greater of (a) the final 116.17 adjustment for the prior fiscal year for 116.18 the state paid property tax credits 116.19 established in section 273.1392, or 116.20 (b) the amount needed to provide6.7515.2 percent 116.21 Payment 4 August 30:9.017.4 116.22 Payment 5 September 15:12.7519.6 116.23 Payment 6 September 30:16.5021.8 116.24 Payment 7 October 15: the greater of (a) one-half of 116.25 the final adjustment for the prior fiscal year 116.26 for all aid entitlements except state paid 116.27 property tax credits, or (b) the amount needed to 116.28 provide20.7524 percent 116.29 Payment 8 October 30: the greater of (a) one-half of the 116.30 final adjustment for the prior fiscal year for all 116.31 aid entitlements except state paid property 116.32 tax credits, or (b) the amount needed 116.33 to provide25.027.3 percent 116.34 Payment 9 November 15:31.033.3 116.35 Payment 10 November 30:37.039.3 116.36 Payment 11 December 15:40.042.3 117.1 Payment 12 December 30:43.045.3 117.2 Payment 13 January 15:47.2549.5 117.3 Payment 14 January 30:51.553.8 117.4 Payment 15 February 15:56.058.3 117.5 Payment 16 February 28:60.562.8 117.6 Payment 17 March 15:65.2567.6 117.7 Payment 18 March 30:70.072.3 117.8 Payment 19 April 15:73.075.3 117.9 Payment 20 April 30:79.081.3 117.10 Payment 21 May 15:82.084.3 117.11 Payment 22 May 30:90.092.3 117.12 Payment 23 June 20: 100.0 117.13 (Effective Date: Section 11 (127A.45, subdivision 3) is 117.14 effective for the payment of state aids for fiscal year 2000 and 117.15 later.) 117.16 Sec. 12. Minnesota Statutes 1998, section 127A.45, 117.17 subdivision 4, is amended to read: 117.18 Subd. 4. [APPEAL.] (a) The commissioner, in consultation 117.19 with the commissioner of finance, may revise the payment dates 117.20 and percentages in subdivision 3 for a district if it is 117.21 determined that: 117.22 (1) there is an emergency; or 117.23 (2) there are serious cash flow problems in the district 117.24 that cannot be resolved by issuing warrants or other forms of 117.25 indebtedness; or 117.26 (3) the district is facing a serious cash flow problem 117.27 because of an abatement that exceeds $100 times the resident 117.28 pupil units of the district. 117.29 (b) The commissioner shall establish a process and criteria 117.30 for districts to appeal the payment dates and percentages 117.31 established in subdivision 3. 117.32 (Effective Date: Section 12 (127A.45, subdivision 4) is 117.33 effective for the payment of state aids for fiscal year 2000 and 117.34 later.) 117.35 Sec. 13. Minnesota Statutes 1998, section 127A.49, 117.36 subdivision 2, is amended to read: 118.1 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 118.2 sections 270.07, 375.192, or otherwise, the net tax capacity of 118.3 any district for any taxable year is changed after the taxes for 118.4 that year have been spread by the county auditor and the local 118.5 tax rate as determined by the county auditor based upon the 118.6 original net tax capacity is applied upon the changed net tax 118.7 capacities, the county auditor shall, prior to February 1 of 118.8 each year, certify to the commissioner of children, families, 118.9 and learning the amount of any resulting net revenue loss that 118.10 accrued to the district during the preceding year. Each year, 118.11 the commissioner shall pay an abatement adjustment to the 118.12 district in an amount calculated according to the provisions of 118.13 this subdivision. This amount shall be deducted from the amount 118.14 of the levy authorized by section 126C.46. The amount of the 118.15 abatement adjustment must be the product of: 118.16 (1) the net revenue loss as certified by the county 118.17 auditor, times 118.18 (2) the ratio of: 118.19 (i) the sum of the amounts of the district's certified levy 118.20 in the preceding year according to the following: 118.21 (A) section 126C.13 if the district received general 118.22 education aid according to that section for the second preceding 118.23 year; 118.24 (B)section 124.226, subdivisions 1 and 4, if the district118.25received transportation aid according to section 123B.92 for the118.26second preceding year;118.27(C) section 124.243, if the district received capital118.28expenditure facilities aid according to that section for the118.29second preceding year;118.30(D) section 124.244, if the district received capital118.31expenditure equipment aid according to that section for the118.32second preceding year;118.33(E)section 123B.57, if the district received health and 118.34 safety aid according to that section for the second preceding 118.35 year; 118.36(F)(C) sections 124D.20, 124D.21, and 124D.56, if the 119.1 district received aid for community education programs according 119.2 to any of those sections for the second preceding year; 119.3(G)(D) section 124D.135, subdivision 3, if the district 119.4 received early childhood family education aid according to 119.5 section 124D.135 for the second preceding year; and 119.6(H) section 125A.77, subdivision 3, if the district119.7received special education levy equalization aid according to119.8that section for the second preceding year;119.9(I)(E) section 126C.17, subdivision 6, if the district 119.10 received referendum equalization aid according to that section 119.11 for the second preceding year;and119.12(J) section 124A.22, subdivision 4a, if the district119.13received training and experience aid according to that section119.14for the second preceding year;to 119.15 (ii) the total amount of the district's certified levy in 119.16 the precedingOctoberDecember, plus or minus auditor's 119.17 adjustments. 119.18 Sec. 14. Minnesota Statutes 1998, section 127A.49, 119.19 subdivision 3, is amended to read: 119.20 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 119.21 tax increment is made to a district pursuant to section 469.176, 119.22 subdivision 2, or upon decertification of a tax increment 119.23 district, the school district's aid and levy limitations must be 119.24 adjusted for the fiscal year in which the excess tax increment 119.25 is paid under the provisions of this subdivision. 119.26 (b) An amount must be subtracted from the district's aid 119.27 for the current fiscal year equal to the product of: 119.28 (1) the amount of the payment of excess tax increment to 119.29 the district, times 119.30 (2) the ratio of: 119.31 (i) the sum of the amounts of the district's certified levy 119.32 for the fiscal year in which the excess tax increment is paid 119.33 according to the following: 119.34 (A) section 126C.13, if the district received general 119.35 education aid according to that section for the second preceding 119.36 year; 120.1 (B)section 124.226, subdivisions 1 and 4, if the district120.2received transportation aid according to section 123B.92 for the120.3second preceding year;120.4(C) section 124.243, if the district received capital120.5expenditure facilities aid according to that section for the120.6second preceding year;120.7(D) section 124.244, if the district received capital120.8expenditure equipment aid according to that section for the120.9second preceding year;120.10(E)section 123B.57, if the district received health and 120.11 safety aid according to that section for the second preceding 120.12 year; 120.13(F)(C) sections 124D.20, 124D.21, and 124D.56, if the 120.14 district received aid for community education programs according 120.15 to any of those sections for the second preceding year; 120.16(G)(D) section 124D.135, subdivision 3, if the district 120.17 received early childhood family education aid according to 120.18 section 124D.135 for the second preceding year; and 120.19(H) section 125A.77, subdivision 3, if the district120.20received special education levy equalization aid according to120.21that section for the second preceding year;120.22(I)(E) section 126C.17, subdivision 6, if the district 120.23 received referendum equalization aid according to that section 120.24 for the second preceding year;and120.25(J) section 124A.22, subdivision 4a, if the district120.26received training and experience aid according to that section120.27for the second preceding year;to 120.28 (ii) the total amount of the district's certified levy for 120.29 the fiscal year, plus or minus auditor's adjustments. 120.30 (c) An amount must be subtracted from the school district's 120.31 levy limitation for the next levy certified equal to the 120.32 difference between: 120.33 (1) the amount of the distribution of excess increment; and 120.34 (2) the amount subtracted from aid pursuant to clause (a). 120.35 If the aid and levy reductions required by this subdivision 120.36 cannot be made to the aid for the fiscal year specified or to 121.1 the levy specified, the reductions must be made from aid for 121.2 subsequent fiscal years, and from subsequent levies. The school 121.3 district must use the payment of excess tax increment to replace 121.4 the aid and levy revenue reduced under this subdivision. 121.5 (d) This subdivision applies only to the total amount of 121.6 excess increments received by a district for a calendar year 121.7 that exceeds $25,000. 121.8 Sec. 15. [INDEPENDENT SCHOOL DISTRICT NO. 656, FARIBAULT; 121.9 FUND TRANSFER.] 121.10 Notwithstanding Minnesota Statutes, section 123B.79, or 121.11 other law, on or before June 30, 2000, independent school 121.12 district No. 656, Faribault, may transfer up to $1,000,000 121.13 realized from the sale of real property from its capital 121.14 expenditure account to the undesignated general fund. 121.15 (Effective Date: Section 15 (Faribault fund transfer) is 121.16 effective the day following final enactment.) 121.17 Sec. 16. [APPROPRIATIONS.] 121.18 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 121.19 LEARNING.] The sums indicated in this section are appropriated 121.20 from the general fund to the department of children, families, 121.21 and learning for the fiscal years designated. 121.22 Subd. 2. [ABATEMENT AID.] For abatement aid according to 121.23 Minnesota Statutes, section 127A.49: 121.24 $9,110,000 ..... 2000 121.25 $8,947,000 ..... 2001 121.26 The 2000 appropriation includes $1,352,000 for 1999 and 121.27 $7,758,000 for 2000. 121.28 The 2001 appropriation includes $861,000 for 2000 and 121.29 $8,086,000 for 2001. 121.30 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 121.31 education aid according to Minnesota Statutes, sections 123B.40 121.32 to 123B.48 and 123B.87: 121.33 $10,996,000 ..... 2000 121.34 $11,878,000 ..... 2001 121.35 The 2000 appropriation includes $970,000 for 1999 and 121.36 $10,026,000 for 2000. 122.1 The 2001 appropriation includes $1,114,000 for 2000 and 122.2 $10,764,000 for 2001. 122.3 The department shall recompute the maximum allotments 122.4 established on March 1, 1999, for fiscal year 2000 under 122.5 Minnesota Statutes, sections 123B.42, subdivision 3, and 122.6 123B.44, subdivision 6, to reflect the amount appropriated in 122.7 this subdivision for fiscal year 2000. 122.8 Subd. 4. [CONSOLIDATION TRANSITION AID.] For districts 122.9 consolidating under Minnesota Statutes, section 123A.485: 122.10 $451,000 ..... 2000 122.11 $375,000 ..... 2001 122.12 The 2000 appropriation includes $113,000 for 1999 and 122.13 $338,000 for 2000. 122.14 The 2001 appropriation includes $37,000 for 2000 and 122.15 $338,000 for 2001. 122.16 Any balance in the first year does not cancel but is 122.17 available in the second year. 122.18 Subd. 5. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 122.19 pupil transportation aid under Minnesota Statutes, section 122.20 123B.92, subdivision 9: 122.21 $18,183,000 ..... 2000 122.22 $20,432,000 ..... 2001 122.23 The 2000 appropriation includes $1,848,000 for 2000 and 122.24 $16,335,000 for 2001. 122.25 The 2001 appropriation includes $1,815,000 for 2000 and 122.26 $18,617,000 for 2001. 122.27 Subd. 6. [MINNESOTA LEARNING RESOURCE CENTER.] For a grant 122.28 to A Chance To Grow/New Visions for start-up costs related to 122.29 implementing the Minnesota learning resource center's 122.30 comprehensive training program for education professionals 122.31 charged with helping children acquire basic reading and math 122.32 skills: 122.33 $250,000 ..... 2000 122.34 This appropriation is available until June 30, 2001. This 122.35 is a one-time appropriation. 122.36 Sec. 17. [REPEALER.] 123.1 Minnesota Statutes 1998, sections 124D.24; 124D.25; 123.2 124D.26; 124D.27; 124D.28; 124D.29; 124D.30; and 127A.45, 123.3 subdivision 5, are repealed. 123.4 Sec. 18. [EFFECTIVE DATES.] 123.5 When preparing the prekindergarten through grade 12 123.6 education conference committee report for adoption by the 123.7 legislature, the revisor shall combine all effective date 123.8 notations in this article into this effective dates section. 123.9 ARTICLE 7 123.10 NUTRITION PROGRAMS 123.11 Section 1. [124D.1155] [FAST BREAK TO LEARNING GRANTS.] 123.12 Subdivision 1. [ESTABLISHMENT.] A grant program is 123.13 established to ensure that all children have an opportunity to 123.14 eat a nutritious breakfast each school day and that barriers 123.15 such as the social stigma of poverty, or inadequate facilities 123.16 or transportation do not deny student access to nutritious food. 123.17 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 123.18 public elementary school that participates in the federal school 123.19 breakfast and lunch programs. The commissioner must give first 123.20 priority to schools where at least 33 percent of the lunches the 123.21 school served to children during the preceding school year were 123.22 provided free or at a reduced price. The commissioner must give 123.23 second priority to all other public elementary schools. 123.24 Subd. 3. [APPLICATION PROCESS.] To obtain a grant to 123.25 receive reimbursement for providing breakfasts to all children, 123.26 a public elementary school must submit an application to the 123.27 commissioner in the form and manner the commissioner 123.28 prescribes. The application must describe how the applicant 123.29 will encourage all children in the school to participate in the 123.30 breakfast program. The applicant also must demonstrate to the 123.31 commissioner that the applicant will collect a $1 local funding 123.32 match for every $3 of state funding the applicant receives. The 123.33 applicant must raise the local match either by charging student 123.34 households not eligible for federal free or reduced price meals 123.35 or by soliciting funds from nonpublic sources. The applicant 123.36 can determine the method for charging student households for 124.1 school breakfast, but must consider the household's ability to 124.2 pay. The applicant cannot charge student households for school 124.3 breakfast so that the total charges exceed the difference 124.4 between the revenue from federal and state aids and the actual 124.5 cost of providing the breakfast. The commissioner may require 124.6 additional information from the applicant. 124.7 Subd. 4. [GRANT AWARDS.] The commissioner shall award 124.8 grants to the 41 grant recipients under Laws 1997, First Special 124.9 Session chapter 4, article 6, section 19, and then according to 124.10 need as determined by the percentage of students enrolled in the 124.11 school who are eligible for federal free or reduced price meals 124.12 and that meet the requirements of subdivisions 2 and 3 until 124.13 funding under this section is expended. The commissioner shall 124.14 determine the amount of the grant using average statewide 124.15 statistics and individual school statistics adjusted for other 124.16 state and federal reimbursements. Grant recipients must use the 124.17 proceeds to provide breakfast to school children every day 124.18 school is in session. 124.19 Subd. 5. [EXPIRATION.] This section expires June 30, 2001. 124.20 Sec. 2. [APPROPRIATIONS.] 124.21 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 124.22 LEARNING.] The sums indicated in this section are appropriated 124.23 from the general fund to the department of children, families, 124.24 and learning for the fiscal years designated. 124.25 Subd. 2. [SCHOOL LUNCH AID.] (a) For school lunch aid 124.26 according to Minnesota Statutes, section 124D.111, and Code of 124.27 Federal Regulations, title 7, section 210.17, and for school 124.28 milk aid according to Minnesota Statutes, section 124D.118: 124.29 $7,770,000 ..... 2000 124.30 $7,770,000 ..... 2001 124.31 (b) Any unexpended balance remaining from the 124.32 appropriations in this subdivision shall be prorated among 124.33 participating schools based on the number of free, reduced, and 124.34 fully paid federally reimbursable student lunches served during 124.35 that school year. 124.36 (c) If the appropriation amount attributable to either year 125.1 is insufficient, the rate of payment for each fully paid student 125.2 lunch shall be reduced and the aid for that year shall be 125.3 prorated among participating schools so as not to exceed the 125.4 total authorized appropriation for that year. 125.5 (d) Not more than $800,000 of the amount appropriated each 125.6 year may be used for school milk aid. 125.7 Subd. 3. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 125.8 food service replacement aid under Minnesota Statutes, section 125.9 124D.119: 125.10 $150,000 ..... 2000 125.11 $150,000 ..... 2001 125.12 Subd. 4. [FAST BREAK TO LEARNING GRANTS.] For fast break 125.13 to learning grants under Minnesota Statutes, section 124D.1155: 125.14 $2,956,000 ..... 2000 125.15 $2,956,000 ..... 2001 125.16 Any balance in the first year does not cancel but is 125.17 available in the second year. 125.18 Sec. 3. [REPEALER.] 125.19 Minnesota Statutes 1998, sections 124D.112, 124D.113, 125.20 124D.115, and 124D.116, are repealed. 125.21 ARTICLE 8 125.22 LIBRARIES 125.23 Section 1. Minnesota Statutes 1998, section 123B.93, is 125.24 amended to read: 125.25 123B.93 [ADVERTISING ON SCHOOL BUSES.] 125.26 (a) The commissioner, through a competitive process, and 125.27 with the approval of the school bus safety advisory committee 125.28 may contract with advertisers regarding advertising on school 125.29 buses. At a minimum, the contract must prohibit advertising and 125.30 advertising images that: 125.31 (1) solicit the sale of, or promote the use of, alcoholic 125.32 beverages and tobacco products; 125.33 (2) are discriminatory in nature or content; 125.34 (3) imply or declare an endorsement of the product or 125.35 service by the school district; 125.36 (4) contain obscene material; 126.1 (5) are false, misleading, or deceptive; or 126.2 (6) relate to an illegal activity or antisocial behavior. 126.3 (b) Advertisement must meet the following conditions: 126.4 (1) the advertising attached to the school bus does not 126.5 interfere with bus identification under section 169.441; and 126.6 (2) the bus with attached advertising meets the school bus 126.7 equipment standards under sections 169.4501 to 169.4504. 126.8 (c) All buses operated by school districts may be attached 126.9 with advertisements under the state contract. All school 126.10 district contracts shall include a provision for advertisement. 126.11 Each school district shall be reimbursed by the advertiser for 126.12 all costs incurred by the district and its contractors for 126.13 supporting the advertising program, including, but not limited 126.14 to, retrofitting buses, storing advertising, attaching 126.15 advertising to the bus, and related maintenance. 126.16 (d) The commissioner shall hold harmless and indemnify each 126.17 district for all liabilities arising from the advertising 126.18 program. Each district must tender defense of all such claims 126.19 to the commissioner within five days of receipt. 126.20 (e) All revenue from the contract shall be deposited in the 126.21 general fund. The commissioner shall establish the criteria, 126.22 procedures, and application process for distributing money to 126.23 school districts using software filtering technology under 126.24 section 125B.22. 126.25 Sec. 2. [125B.22] [INTERNET ACCESS FOR STUDENTS.] 126.26 Recognizing the difference between school libraries, school 126.27 computer labs, and school media centers, which serve unique 126.28 educational purposes, and public libraries, which are designed 126.29 for public inquiry, all school district computers with access to 126.30 the Internet available for student use, to the maximum extent 126.31 possible under the law, must be equipped to restrict, including 126.32 by use of available software filtering technology, all access by 126.33 students to material that is reasonably believed to be obscene 126.34 or child pornography or material harmful to minors under federal 126.35 or state law. 126.36 Sec. 3. [134.47] [INTERNET ACCESS FOR CHILDREN.] 127.1 Recognizing the difference between public libraries, which 127.2 are designed for public inquiry, and school libraries, school 127.3 computer labs, and school media centers, which serve unique 127.4 educational purposes, all public library computers with access 127.5 to the Internet available for use by children under the age of 127.6 18, to the maximum extent possible under the law, must be 127.7 equipped to restrict, including by use of available software 127.8 filtering technology, all access by children to material that is 127.9 reasonably believed to be obscene or child pornography or 127.10 material harmful to minors under federal or state law. 127.11 Sec. 4. Laws 1997, First Special Session chapter 4, 127.12 article 8, section 4, is amended to read: 127.13 Sec. 4. [LIBRARYPILOTPROJECT.] 127.14 Subdivision 1. [ESTABLISHMENT.] Notwithstanding law to the 127.15 contrary and subject to approvals in subdivision 2, a public 127.16 library may operate as apilotlibrary project jointly with the 127.17 school library at Nashwauk-Keewatin high school, located in the 127.18 city of Nashwauk. The public library is established to serve 127.19 persons within the boundaries of independent school district No. 127.20 319, except the city of Keewatin. 127.21 Subd. 2. [APPROVALS.] Operation of the public library is 127.22 contingent upona resolution approved bythe governing bodies of 127.23 cities, towns, and unorganized townships within the geographical 127.24 boundaries of independent school district No. 319, except for 127.25 the city of Keewatin, entering into a joint powers agreement 127.26 under Minnesota Statutes, section 471.59, to accomplish the 127.27 purpose of this section. The joint powers agreement must 127.28 provide for continuing the library project if one party to the 127.29 agreement withdraws from the agreement. For the purposes of 127.30 this subdivision, the Itasca county board is designated as the 127.31 governing body for the unorganized townships. 127.32 Subd. 3. [BOARD; APPOINTMENTS.] Theresolutionjoint 127.33 powers agreement in subdivision 2 shall provide for a library 127.34 board of five members as follows: two members appointed by the 127.35 school board of independent school district No. 319, one member 127.36 appointed by each town board located within independent school 128.1 district No. 319 boundaries, one member appointed by the council 128.2 of the city of Nashwauk, and one member appointed by the Itasca 128.3 county board to represent the unorganized towns within the 128.4 school district territory. 128.5 Subd. 4. [BOARD TERMS; COMPENSATION.] The library board 128.6 members shall serve for the term of thepilot programlibrary 128.7 project. An appointing authority may remove for misconduct or 128.8 neglect any member it has appointed to the board and may replace 128.9 that member by appointment. Board members shall receive no 128.10 compensation for their services but may be reimbursed for actual 128.11 and necessary travel expenses incurred in the discharge of 128.12 library board duties and activities. 128.13 Subd. 5. [FUNDING.] For taxes payable in 1998 and 1999 128.14 only, the library board may levy a tax in an amount up to 128.15 $25,000 annually on property located within the boundaries of 128.16 independent school district No. 319, except the city of 128.17 Keewatin. The Itasca county auditor shall collect the tax and 128.18 distribute it to the library board. The money may be used for 128.19 library staff and for the purchase of library materials, 128.20 including computer software. The levy must also fund the amount 128.21 necessary to receive bookmobile services from the Arrowhead 128.22 regional library system. For taxes payable in 1998 and 1999 128.23 only, the county may not levy under Minnesota Statutes, section 128.24 134.07, for the areas described in this section. 128.25 Subd. 6. [BUILDING.] The school district shall provide the 128.26 physical space and costs associated with operating the library 128.27 including, but not limited to, heat, light, telephone service, 128.28 and maintenance. 128.29 Subd. 7. [ORGANIZATION.] Immediately after appointment, 128.30 the library board shall organize by electing one of its number 128.31 as president and one as secretary, and it may appoint other 128.32 officers it finds necessary. 128.33 Subd. 8. [DUTIES.] The library board shall adopt bylaws 128.34 and regulations for the library and for the conduct of its 128.35 business as may be expedient and conformable to law. It shall 128.36 have exclusive control of the expenditure of all money collected 129.1 for it. The library board shall appoint a qualified library 129.2 director and other staff, establish the compensation of 129.3 employees, and remove any of them for cause. The library board 129.4 may contract with the school board, the regional library board, 129.5 or the city in which the library is located to provide 129.6 personnel, fiscal, or administrative services. The contract 129.7 shall state the personnel, fiscal, and administrative services 129.8 and payments to be provided by each party. 129.9 Subd. 9. [CRITERIA.] The library shall meet all 129.10 requirements in statutes and rules applicable to public 129.11 libraries and school media centers. A media supervisor licensed 129.12 by the board of teaching may be the director of the library. 129.13 Public parking, restrooms, drinking water, and other necessities 129.14 shall be easily accessible to library patrons. 129.15Subd. 10. [REPORT.] The library board shall report to the129.16department of children, families, and learning by February 1,129.171999, about the costs of providing the library service and the129.18number of patrons served.129.19Subd. 11. [EXPIRATION.] This section expires January 31,129.202000.129.21 Sec. 5. [SCHOOL DISTRICT INTERNET USE POLICY.] 129.22 Notwithstanding any law to the contrary, each school 129.23 district must adopt an Internet use policy or amend an existing 129.24 Internet use policy to comply with Minnesota Statutes, section 129.25 125B.22. 129.26 Sec. 6. [APPROPRIATIONS.] 129.27 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 129.28 LEARNING.] The sums indicated in this section are appropriated 129.29 from the general fund to the department of children, families, 129.30 and learning for the fiscal years designated. 129.31 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 129.32 according to Minnesota Statutes, sections 134.32 to 134.35: 129.33 $8,495,000 ..... 2000 129.34 $8,570,000 ..... 2001 129.35 The 2000 appropriation includes $782,000 for 1999 and 129.36 $7,713,000 for 2000. 130.1 The 2001 appropriation includes $857,000 for 2000 and 130.2 $7,713,000 for 2001. 130.3 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 130.4 grants according to Minnesota Statutes, sections 134.353 and 130.5 134.354, to multicounty, multitype library systems: 130.6 $903,000 ..... 2000 130.7 $903,000 ..... 2001 130.8 The 2000 appropriation includes $90,000 for 1999 and 130.9 $813,000 for 2000. 130.10 The 2001 appropriation includes $90,000 for 2000 and 130.11 $813,000 for 2001. 130.12 Subd. 4. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 130.13 grants to regional public library systems under Minnesota 130.14 Statutes, section 125B.20, subdivision 3: 130.15 $1,700,000 ..... 2000 130.16 $1,700,000 ..... 2001 130.17 Any balance in the first year does not cancel but is 130.18 available in the second year. 130.19 Subd. 5. [BUS ADVERTISING REVENUE ALLOCATION.] For school 130.20 district expenses under Minnesota Statutes, section 125B.22: 130.21 $2,500,000 ..... 2000 130.22 $2,500,000 ..... 2001 130.23 The commissioner must proportionally reduce this 130.24 appropriation if the revenue in any year under Minnesota 130.25 Statutes, section 123B.93, is less than the appropriation. The 130.26 commissioner also may use a portion of the appropriation to 130.27 reimburse districts that demonstrate they incurred excess costs 130.28 in implementing Minnesota Statutes, section 123B.93. 130.29 Sec. 7. [REPEALER.] 130.30 Minnesota Statutes 1998, section 134.155, is repealed. 130.31 Laws 1997, First Special Session chapter 4, article 3, section 130.32 5; and article 8, section 5, are repealed. 130.33 ARTICLE 9 130.34 EDUCATION POLICY 130.35 Section 1. Minnesota Statutes 1998, section 13.46, 130.36 subdivision 2, is amended to read: 131.1 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 131.2 a statute specifically provides a different classification, data 131.3 on individuals collected, maintained, used, or disseminated by 131.4 the welfare system is private data on individuals, and shall not 131.5 be disclosed except: 131.6 (1) according to section 13.05; 131.7 (2) according to court order; 131.8 (3) according to a statute specifically authorizing access 131.9 to the private data; 131.10 (4) to an agent of the welfare system, including a law 131.11 enforcement person, attorney, or investigator acting for it in 131.12 the investigation or prosecution of a criminal or civil 131.13 proceeding relating to the administration of a program; 131.14 (5) to personnel of the welfare system who require the data 131.15 to determine eligibility, amount of assistance, and the need to 131.16 provide services of additional programs to the individual; 131.17 (6) to administer federal funds or programs; 131.18 (7) between personnel of the welfare system working in the 131.19 same program; 131.20 (8) the amounts of cash public assistance and relief paid 131.21 to welfare recipients in this state, including their names, 131.22 social security numbers, income, addresses, and other data as 131.23 required, upon request by the department of revenue to 131.24 administer the property tax refund law, supplemental housing 131.25 allowance, early refund of refundable tax credits, and the 131.26 income tax. "Refundable tax credits" means the dependent care 131.27 credit under section 290.067, the Minnesota working family 131.28 credit under section 290.0671, the property tax refund under 131.29 section 290A.04, and, if the required federal waiver or waivers 131.30 are granted, the federal earned income tax credit under section 131.31 32 of the Internal Revenue Code; 131.32 (9) between the department of human services and the 131.33 Minnesota department of economic security for the purpose of 131.34 monitoring the eligibility of the data subject for reemployment 131.35 insurance, for any employment or training program administered, 131.36 supervised, or certified by that agency, for the purpose of 132.1 administering any rehabilitation program, whether alone or in 132.2 conjunction with the welfare system, or to monitor and evaluate 132.3 the statewide Minnesota family investment program by exchanging 132.4 data on recipients and former recipients of food stamps, cash 132.5 assistance under chapter 256, 256D, 256J, or 256K, child care 132.6 assistance under chapter 119B, or medical programs under chapter 132.7 256B, 256D, or 256L; 132.8 (10) to appropriate parties in connection with an emergency 132.9 if knowledge of the information is necessary to protect the 132.10 health or safety of the individual or other individuals or 132.11 persons; 132.12 (11) data maintained by residential programs as defined in 132.13 section 245A.02 may be disclosed to the protection and advocacy 132.14 system established in this state according to Part C of Public 132.15 Law Number 98-527 to protect the legal and human rights of 132.16 persons with mental retardation or other related conditions who 132.17 live in residential facilities for these persons if the 132.18 protection and advocacy system receives a complaint by or on 132.19 behalf of that person and the person does not have a legal 132.20 guardian or the state or a designee of the state is the legal 132.21 guardian of the person; 132.22 (12) to the county medical examiner or the county coroner 132.23 for identifying or locating relatives or friends of a deceased 132.24 person; 132.25 (13) data on a child support obligor who makes payments to 132.26 the public agency may be disclosed to the higher education 132.27 services office to the extent necessary to determine eligibility 132.28 under section 136A.121, subdivision 2, clause (5); 132.29 (14) participant social security numbers and names 132.30 collected by the telephone assistance program may be disclosed 132.31 to the department of revenue to conduct an electronic data match 132.32 with the property tax refund database to determine eligibility 132.33 under section 237.70, subdivision 4a; 132.34 (15) the current address of a recipient of aid to families 132.35 with dependent children or Minnesota family investment 132.36 program-statewide may be disclosed to law enforcement officers 133.1 who provide the name of the recipient and notify the agency that: 133.2 (i) the recipient: 133.3 (A) is a fugitive felon fleeing to avoid prosecution, or 133.4 custody or confinement after conviction, for a crime or attempt 133.5 to commit a crime that is a felony under the laws of the 133.6 jurisdiction from which the individual is fleeing; or 133.7 (B) is violating a condition of probation or parole imposed 133.8 under state or federal law; 133.9 (ii) the location or apprehension of the felon is within 133.10 the law enforcement officer's official duties; and 133.11 (iii) the request is made in writing and in the proper 133.12 exercise of those duties; 133.13 (16) the current address of a recipient of general 133.14 assistance or general assistance medical care may be disclosed 133.15 to probation officers and corrections agents who are supervising 133.16 the recipient and to law enforcement officers who are 133.17 investigating the recipient in connection with a felony level 133.18 offense; 133.19 (17) information obtained from food stamp applicant or 133.20 recipient households may be disclosed to local, state, or 133.21 federal law enforcement officials, upon their written request, 133.22 for the purpose of investigating an alleged violation of the 133.23 Food Stamp Act, according to Code of Federal Regulations, title 133.24 7, section 272.1(c); 133.25 (18) the address, social security number, and, if 133.26 available, photograph of any member of a household receiving 133.27 food stamps shall be made available, on request, to a local, 133.28 state, or federal law enforcement officer if the officer 133.29 furnishes the agency with the name of the member and notifies 133.30 the agency that: 133.31 (i) the member: 133.32 (A) is fleeing to avoid prosecution, or custody or 133.33 confinement after conviction, for a crime or attempt to commit a 133.34 crime that is a felony in the jurisdiction the member is 133.35 fleeing; 133.36 (B) is violating a condition of probation or parole imposed 134.1 under state or federal law; or 134.2 (C) has information that is necessary for the officer to 134.3 conduct an official duty related to conduct described in subitem 134.4 (A) or (B); 134.5 (ii) locating or apprehending the member is within the 134.6 officer's official duties; and 134.7 (iii) the request is made in writing and in the proper 134.8 exercise of the officer's official duty; 134.9 (19) certain information regarding child support obligors 134.10 who are in arrears may be made public according to section 134.11 518.575; 134.12 (20) data on child support payments made by a child support 134.13 obligor and data on the distribution of those payments excluding 134.14 identifying information on obligees may be disclosed to all 134.15 obligees to whom the obligor owes support, and data on the 134.16 enforcement actions undertaken by the public authority, the 134.17 status of those actions, and data on the income of the obligor 134.18 or obligee may be disclosed to the other party; 134.19 (21) data in the work reporting system may be disclosed 134.20 under section 256.998, subdivision 7; 134.21 (22) to the department of children, families, and learning 134.22 for the purpose of matching department of children, families, 134.23 and learning student data with public assistance data to 134.24 determine students eligible for free and reduced price meals, 134.25 meal supplements, and free milk according to United States Code, 134.26 title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773;to134.27produce accurate numbers of students receiving aid to families134.28with dependent children or Minnesota family investment134.29program-statewide as required by section 126C.06;to allocate 134.30 federal and state funds that are distributed based on income of 134.31 the student's family; and to verify receipt of energy assistance 134.32 for the telephone assistance plan; 134.33 (23) the current address and telephone number of program 134.34 recipients and emergency contacts may be released to the 134.35 commissioner of health or a local board of health as defined in 134.36 section 145A.02, subdivision 2, when the commissioner or local 135.1 board of health has reason to believe that a program recipient 135.2 is a disease case, carrier, suspect case, or at risk of illness, 135.3 and the data are necessary to locate the person; 135.4 (24) to other state agencies, statewide systems, and 135.5 political subdivisions of this state, including the attorney 135.6 general, and agencies of other states, interstate information 135.7 networks, federal agencies, and other entities as required by 135.8 federal regulation or law for the administration of the child 135.9 support enforcement program; 135.10 (25) to personnel of public assistance programs as defined 135.11 in section 256.741, for access to the child support system 135.12 database for the purpose of administration, including monitoring 135.13 and evaluation of those public assistance programs; or 135.14 (26) to monitor and evaluate the statewide Minnesota family 135.15 investment program by exchanging data between the departments of 135.16 human services and children, families, and learning, on 135.17 recipients and former recipients of food stamps, cash assistance 135.18 under chapter 256, 256D, 256J, or 256K, child care assistance 135.19 under chapter 119B, or medical programs under chapter 256B, 135.20 256D, or 256L. 135.21 (b) Information on persons who have been treated for drug 135.22 or alcohol abuse may only be disclosed according to the 135.23 requirements of Code of Federal Regulations, title 42, sections 135.24 2.1 to 2.67. 135.25 (c) Data provided to law enforcement agencies under 135.26 paragraph (a), clause (15), (16), (17), or (18), or paragraph 135.27 (b), are investigative data and are confidential or protected 135.28 nonpublic while the investigation is active. The data are 135.29 private after the investigation becomes inactive under section 135.30 13.82, subdivision 5, paragraph (a) or (b). 135.31 (d) Mental health data shall be treated as provided in 135.32 subdivisions 7, 8, and 9, but is not subject to the access 135.33 provisions of subdivision 10, paragraph (b). 135.34 Sec. 2. Minnesota Statutes 1998, section 43A.18, 135.35 subdivision 4a, is amended to read: 135.36 Subd. 4a. [COMPENSATION REPORTS.] On July 1 of each 136.1 odd-numbered year the state agricultural society, the World 136.2 Trade Center corporation board of directors,and the Minnesota 136.3 Technology, Inc. board of directors, and the governing board of136.4the Minnesota state high school leagueshall each submit a 136.5 report to the legislative commission on employee relations on 136.6 the total compensation plan for their employees. 136.7 (Effective Date: Section 2 (43A.18, subdivision 4a) is 136.8 effective for the 1999-2000 school year and later.) 136.9 Sec. 3. Minnesota Statutes 1998, section 121A.15, 136.10 subdivision 1, is amended to read: 136.11 Subdivision 1. (a) Except as provided in subdivisions 3, 136.12 4, and 10, no person over two months old may be allowed to 136.13 enroll or remain enrolled in any elementary or secondary school 136.14 or child care facility in this state until the person has 136.15 submitted to the administrator or other person having general 136.16 control and supervision of the school or child care facility, 136.17 one of the following statements: 136.18 (1) a statement from a physician or a public clinic which 136.19 provides immunizations stating that the person has received 136.20 immunization, consistent with medically acceptable standards, 136.21 against measles after having attained the age of 12 months, 136.22 rubella, diphtheria, tetanus, pertussis, polio, mumps, 136.23 haemophilus influenza type b, and hepatitis B; or 136.24 (2) a statement from a physician or a public clinic which 136.25 provides immunizations stating that the person has received 136.26 immunizations, consistent with medically acceptable standards, 136.27 against measles after having attained the age of 12 months, 136.28 rubella, mumps, and haemophilus influenza type b and that the 136.29 person has commenced a schedule of immunizations for diphtheria, 136.30 tetanus, pertussis, polio, and hepatitis B and which indicates 136.31 the month and year of each immunization received. 136.32 (b) The administrator or other person having general 136.33 control and supervision of the school or child care facility 136.34 must inform the parent or guardian of the person seeking to 136.35 enroll or remain enrolled of the exemptions from immunizations 136.36 permitted under subdivision 3. 137.1 Sec. 4. Minnesota Statutes 1998, section 128C.01, 137.2 subdivision 4, is amended to read: 137.3 Subd. 4. [BOARD.] (a) The league must have a 20-member 137.4 governing board. 137.5 (1) The governor must appoint four members according to 137.6 section 15.0597. Each of the four appointees must be a parent. 137.7 At least one of them must be an American Indian, an Asian, a 137.8 Black, or a Hispanic. 137.9 (2) The Minnesota association of secondary school 137.10 principals must appoint two of its members. 137.11 (3) The remaining 14 members must be selected according to 137.12 league bylaws. 137.13 (b) The terms, compensation, removal of members, and the 137.14 filling of membership vacancies are governed by section 15.0575, 137.15 except that the four-year terms begin on August 1 and end on 137.16 July 31. As provided by section 15.0575, members who are 137.17 full-time state employees or full-time employees of school 137.18 districts or other political subdivisions of the state may not 137.19 receive any per diem payment for service on the board. 137.20 (Effective Date: Section 4 (128C.01, subdivision 4) is 137.21 effective immediately.) 137.22 Sec. 5. Minnesota Statutes 1998, section 128C.01, 137.23 subdivision 5, is amended to read: 137.24 Subd. 5. [CERTAIN COMMERCIAL RELATIONSHIPS PROHIBITED.] 137.25 The board maynotenter into corporate partnerships or similar 137.26 agreements.with any business or commercial organization that137.27sells products or services used by student or adult participants137.28in league activities while they participate in activities137.29regulated by the league.The board may sell advertising to any 137.30 such business or organization if the advertising is clearly 137.31 identified as advertising paid for by the business or commercial 137.32 organization. 137.33 (Effective Date: Section 5 (128C.01, subdivision 5) is 137.34 effective for the 1999-2000 school year.) 137.35 Sec. 6. [128C.015] [OMBUDSPERSON.] 137.36 The state high school league shall appoint an ombudsperson 138.1 who shall be available for persons concerned about league 138.2 bylaws, policies, rules, or other issues and who feel that their 138.3 concerns have not received proper attention. The ombudsperson 138.4 also may investigate issues such as a student's eligibility and 138.5 may advocate on behalf of parents and students before the 138.6 league's representative assembly. The league and the 138.7 commissioner must publicize the availability of the 138.8 ombudsperson's services using means reasonably calculated to 138.9 inform interested persons. One form of notice must be the 138.10 Internet where the league must include on its Internet website 138.11 the name, address, and telephone number of the ombudsperson. 138.12 (Effective Date: Section 6 (128C.015) is effective for the 138.13 1999-2000 school year and later.) 138.14 Sec. 7. Minnesota Statutes 1998, section 128C.02, is 138.15 amended by adding a subdivision to read: 138.16 Subd. 9. [PURCHASING.] In purchasing goods and services, 138.17 the league must follow all laws that apply to school districts 138.18 under sections 123B.52 and 471.345. 138.19 (Effective Date: Section 7 (128C.02, subdivision 9) is 138.20 effective for the 1999-2000 school year and later.) 138.21 Sec. 8. Minnesota Statutes 1998, section 128C.12, 138.22 subdivision 1, is amended to read: 138.23 Subdivision 1. [DUES AND EVENTS REVENUE.] The state 138.24 auditor annually must examine the accounts of, and audit all 138.25 money paid to, the state high school league by its members. The 138.26 audit must include financial and compliance issues. The state 138.27 auditor must also audit all money derived from any event 138.28 sponsored by the league.League audits must include audits of138.29 The state auditor may audit administrative regions of the league. 138.30The league and itsAdministrative regions of the league maynot138.31 contract with private auditors. The scope of the state 138.32 auditor's examinations of the league must be agreed upon by the 138.33 board and the state auditor, provided that all requirements of 138.34 this section must be met. 138.35 (Effective Date: Section 8 (128C.12, subdivision 1) is 138.36 effective for the 1999-2000 school year and later.) 139.1 Sec. 9. Minnesota Statutes 1998, section 128C.20, is 139.2 amended to read: 139.3 128C.20 [COMMISSIONER REVIEW OF LEAGUE.] 139.4 Subdivision 1. [ANNUALLY.] Each year the commissioner of 139.5 children, families, and learning shallobtainsubmit a written 139.6 report to the legislature after obtaining andreviewreviewing 139.7 the following information about the league: 139.8 (1) an accurate and concise summary of the annual financial 139.9 and compliance audit prepared by the state auditor that includes 139.10 information about the compensation of and the expenditures by 139.11 the executive director of the league and league staff; 139.12 (2) a list of all complaints filed with the league and all 139.13 lawsuits filed against the league and the disposition of those 139.14 complaints and lawsuits; 139.15 (3) an explanation of the executive director's performance 139.16 review; 139.17 (4) information about the extent to which the league has 139.18 implemented its affirmative action policy, its comparable worth 139.19 plan, and its sexual harassment and violence policy and rules; 139.20 and 139.21 (5) an evaluation of any proposed changes in league bylaws 139.22 and policy. Copies of the commissioner's report must be 139.23 provided to the representative assembly and the board of 139.24 directors before a change in the league's bylaws or policies. 139.25 Subd. 2. [RECOMMEND LAWS.] The commissioner may recommend 139.26 to the legislature whether any legislation is made necessary by 139.27 league activities. 139.28 Subd. 3. [ISSUE REVIEW.] The commissioner of children, 139.29 families, and learning may examine league-related issues, at the 139.30 discretion of the commissioner. 139.31 (Effective Date: Section 9 (128C.20) is effective for the 139.32 1999-2000 school year and later.) 139.33 Sec. 10. [TRANSITION.] 139.34 Notwithstanding Minnesota Statutes, section 15.0597, the 139.35 terms of persons who are members appointed by the governor 139.36 before the effective date of Minnesota Statutes, section 140.1 128C.01, subdivision 4, shall have their term end on July 31 of 140.2 the last year of their appointment. 140.3 (Effective Date: Section 10 (transition) is effective 140.4 immediately.) 140.5 Sec. 11. [REVISOR INSTRUCTION.] 140.6 In the next and subsequent editions of Minnesota Statutes 140.7 and Minnesota Rules, the revisor shall change all references of 140.8 the "Lola and Rudy Perpich Minnesota center for arts education" 140.9 to the "Perpich center for arts education." 140.10 Sec. 12. [EFFECTIVE DATES.] 140.11 When preparing the prekindergarten through grade 12 140.12 education conference committee report for adoption by the 140.13 legislature, the revisor shall combine all effective date 140.14 notations in this article into this effective dates section. 140.15 ARTICLE 10 140.16 STATE AGENCIES 140.17 Section 1. Minnesota Statutes 1998, section 119A.01, 140.18 subdivision 1, is amended to read: 140.19 Subdivision 1. [ABOLISHMENT.] The position of commissioner 140.20 of education and the department of education are abolished. The 140.21 employees of the department of education are transferred to the 140.22 department of education, children, and families, and learning140.23 under section 15.039, subdivision 7. 140.24 Sec. 2. Minnesota Statutes 1998, section 119A.01, 140.25 subdivision 2, is amended to read: 140.26 Subd. 2. [ESTABLISHMENT.] The department of education, 140.27 children, and families, and learningis established. 140.28 Sec. 3. [EXEMPTION TO LABOR DAY SCHOOL START RESTRICTION.] 140.29 Notwithstanding Minnesota Statutes, section 120A.40, the 140.30 Lola and Rudy Perpich Minnesota Center for Arts Education may 140.31 begin the 1999-2000 and 2000-2001 school years any day prior to 140.32 Labor Day. 140.33 (Effective Date: Section 3 (Exemption to School Start) is 140.34 effective the day following final enactment.) 140.35 Sec. 4. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 140.36 AND LEARNING.] 141.1 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 141.2 LEARNING.] The sums in this section are appropriated from the 141.3 general fund unless otherwise indicated to the department of 141.4 children, families, and learning for the fiscal years designated. 141.5 Subd. 2. [DEPARTMENT.] For the department of children, 141.6 families, and learning: 141.7 $30,099,000 ..... 2000 141.8 $27,385,000 ..... 2001 141.9 (a) Any balance in the first year does not cancel but is 141.10 available in the second year. 141.11 (b) $21,000 each year is from the trunk highway fund. 141.12 (c) $634,000 in 2000 and $642,000 in 2001 is for the 141.13 academic excellence foundation. 141.14 (d) $255,000 in 2000 is for the state board of education. 141.15 (e) $687,000 in 2000 and $692,000 in 2001 is for the board 141.16 of teaching. 141.17 (f) The expenditures of federal grants and aids as shown in 141.18 the biennial budget document and its supplements are approved 141.19 and appropriated and shall be spent as indicated. 141.20 (g) At least $50,000 is to ensure compliance with state and 141.21 federal laws prohibiting discrimination because of race, 141.22 religion, or sex. The department shall use the appropriation to 141.23 provide state-level leadership on equal education opportunities 141.24 which promote elimination of discriminatory practices in the 141.25 areas of race, religion, and sex in public schools and public 141.26 educational agencies under its general supervision and on 141.27 activities including, at least, compliance monitoring and 141.28 voluntary compliance when local school district deficiencies are 141.29 found. 141.30 (h) $2,000,000 in 2000 is for litigation-related costs. 141.31 This is a one-time appropriation. 141.32 (i) $78,000 each year is for additional staffing and 141.33 technology for the Minnesota library for the blind and 141.34 physically handicapped. 141.35 Sec. 5. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 141.36 CENTER FOR ARTS EDUCATION.] 142.1 The sums indicated in this section are appropriated from 142.2 the general fund to the center for arts education for the fiscal 142.3 years designated: 142.4 $6,889,000 ..... 2000 142.5 $7,035,000 ..... 2001 142.6 Of each year's appropriation, $154,000 is to fund artist 142.7 and arts organization participation in the education residency 142.8 and education technology projects, $75,000 is for school support 142.9 for the residency project, $121,000 is for further development 142.10 of the partners: arts and school for students (PASS) program, 142.11 including pilots, and $220,000 is to fund asset preservation and 142.12 facility repair. The center for arts education, in cooperation 142.13 with the Minnesota arts board, shall develop the guidelines for 142.14 the education residency project and the PASS program. The 142.15 Minnesota arts board shall participate in the review and 142.16 allocation process. The center for arts education and the 142.17 Minnesota arts board shall cooperate to fund these projects. 142.18 Any balance in the first year does not cancel but is 142.19 available in the second year. 142.20 Sec. 6. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 142.21 (a) The sums indicated in this section are appropriated 142.22 from the general fund to the Faribault academies for the deaf 142.23 and the blind for the fiscal years designated: 142.24 $10,025,000 ..... 2000 142.25 $10,244,000 ..... 2001 142.26 (b) Of this appropriation, $75,000 in each fiscal year is 142.27 for asset preservation and facility repair. 142.28 (c) Any balance in the first year does not cancel but is 142.29 available in the second year. 142.30 Sec. 7. [REVISOR INSTRUCTION.] 142.31 In the next and subsequent editions of Minnesota Statutes 142.32 and Minnesota Rules, all references to the commissioner of 142.33 children, families, and learning shall be changed to the 142.34 commissioner of education, children, and families and all 142.35 references to the department of children, families, and learning 142.36 shall be changed to the department of education, children, and 143.1 families. 143.2 Sec. 8. [EFFECTIVE DATE.] 143.3 When preparing the prekindergarten through grade 12 143.4 education conference committee report for adoption by the 143.5 legislature, the revisor shall combine all effective date 143.6 notations in this article into this effective date section.