as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
Engrossments | ||
---|---|---|
Introduction | Posted on 08/14/1998 |
1.1 A bill for an act 1.2 relating to public administration; appropriating money 1.3 and supplementing, reducing, and transferring earlier 1.4 appropriations, with certain conditions; amending 1.5 Minnesota Statutes 1994, sections 8.15, by adding a 1.6 subdivision; 16A.11, subdivision 1, and by adding a 1.7 subdivision; 16A.152, by adding a subdivision; 16D.04, 1.8 as amended; 16D.05; 16D.07; 16D.08, as amended; 1.9 16D.10; 17.117, subdivision 3; 43A.06, by adding a 1.10 subdivision; 69.021, subdivision 4, and by adding a 1.11 subdivision; 69.031, subdivisions 1 and 5; 124.17, 1.12 subdivision 1e, and by adding subdivisions; 124.195, 1.13 subdivision 7; 144C.03, subdivision 2; 257.0755, 1.14 subdivision 3; 363.071, subdivision 7; and 609.52, 1.15 subdivision 2; Minnesota Statutes 1995 Supplement, 1.16 sections 16A.152, subdivision 2; 16D.02, subdivision 1.17 8; 16D.06; 16D.11; 16D.12; 16D.14; 16D.16; 79.561, 1.18 subdivision 3; 103F.725, subdivision 1a; 120.064, 1.19 subdivision 15; 121.904, subdivision 4a; 124.17, 1.20 subdivision 1d; 124.195, subdivisions 10 and 12; 1.21 124.225, subdivision 8l; 124.961; 353.65, subdivision 1.22 7; and 446A.07, subdivision 8; Laws 1995, chapters 1.23 220, section 7, subdivision 4; 224, section 2, 1.24 subdivision 2; and 231, article 1, section 33; Laws 1.25 1995, First Special Session chapter 3, article 3, 1.26 section 19, by adding a subdivision; article 5, 1.27 section 20, subdivision 5; article 8, section 25, 1.28 subdivision 2; article 11, sections 21, subdivision 2, 1.29 and by adding a subdivision; 22; and 23; article 12, 1.30 section 12, subdivision 7, and by adding subdivisions; 1.31 article 14, section 5; and article 15, section 26, 1.32 subdivisions 7 and 8; proposing coding for new law in 1.33 Minnesota Statutes, chapters 16A; 62J; 116J; 120; 1.34 124C; 168A; 241; 299A; and 363; repealing Minnesota 1.35 Statutes 1994, sections 116J.873, subdivisions 1, 2, 1.36 and 4; 135A.01; 135A.02; 135A.03; 135A.031, 1.37 subdivisions 1, 3, 4, 5, and 6; 135A.032; 135A.033; 1.38 135A.034; and 268.9783, subdivision 8; Minnesota 1.39 Statutes 1995 Supplement, sections 116J.873, 1.40 subdivisions 3 and 5; 121.904, subdivisions 4c and 4d; 1.41 and 135A.031, subdivision 2. 1.42 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.43 ARTICLE 1 2.1 K-12 EDUCATION FINANCE 2.2 Section 1. Laws 1995, First Special Session chapter 3, 2.3 article 14, section 5, is amended to read: 2.4 Sec. 5. [FISCAL YEAR 1998 AND 1999 APPROPRIATIONS.] 2.5 The appropriations for the 1998-99 biennium for programs 2.6 contained in this act shall be$2,943,900,000$2,975,606,000 for 2.7 fiscal year 1998 and$3,076,600,000$3,027,891,000 for fiscal 2.8 year 1999, plus or minus any adjustments due to variance in 2.9 pupil forecasts, levies, or other factors generating 2.10 entitlements for the general revenue program. These amounts 2.11 shall first be allocated to fully fund the general revenue 2.12 program. Amounts remaining shall be allocated to other programs 2.13 in proportion to the fiscal year 1997 appropriations or to 2.14 entitlements generated by existing law for those programs for 2.15 each year, up to the amount of the entitlement or the fiscal 2.16 year 1997 appropriations. Any amounts remaining after 2.17 allocation to these other programs shall be maintained for 2.18 allocation recommendations by the governor and legislature in 2.19 the 1997 session. 2.20 Sec. 2. Laws 1995, First Special Session chapter 3, 2.21 article 5, section 20, subdivision 5, is amended to read: 2.22 Subd. 5. [DEBT SERVICE AID.] For debt service aid 2.23 according to Minnesota Statutes, section 124.95, subdivision 5: 2.24 $30,054,000 ..... 1996 2.25$27,370,000$28,228,000 ..... 1997 2.26 The 1996 appropriation includes $30,054,000 for 1996. 2.27 The 1997 appropriation includes$27,370,000$28,228,000 for 2.28 1997. This appropriation is 85 percent of the aid entitlement 2.29 for 1997. 2.30 Sec. 3. Laws 1995, First Special Session chapter 3, 2.31 article 8, section 25, subdivision 2, is amended to read: 2.32 Subd. 2. [ABATEMENT AID.] For abatement aid according to 2.33 Minnesota Statutes, section 124.214: 2.34$24,241,000$22,251,600 ..... 1996 2.35$ 7,905,000$ 9,543,400 ..... 1997 2.36 The 1996 appropriation includes $1,135,000 for 1995 and 3.1$23,106,000$21,116,600 for 1996. 3.2 The 1997 appropriation includes$4,077,000$3,726,400 for 3.3 1996 and$3,828,000$5,817,000 for 1997. 3.4 Sec. 4. Laws 1995, First Special Session chapter 3, 3.5 article 15, section 26, subdivision 7, is amended to read: 3.6 Subd. 7. [TARGETED NEEDS AID.] For targeted needs aid: 3.7$37,682,000$39,591,100 ..... 1996 3.8$41,597,000$41,614,100 ..... 1997 3.9 (a) Of the 1996 amount, $945,000 is for 1995 LEP aid and 3.10$4,359,000$6,268,100 is for 1996 LEP aid. Of the 1996 amount, 3.11 $1,979,000 is for 1995 AOM aid and $11,555,000 is for 1996 AOM 3.12 aid. Of the 1996 amount, $18,844,000 is for 1996 integration 3.13 aid. 3.14 (b) Of the 1997 amount,$1,089,000$1,106,100 is for 1996 3.15 LEP aid and $7,913,000 is for 1997 LEP aid. Of the 1997 amount, 3.16 $2,039,000 is for 1996 AOM aid and $11,712,000 is for 1997 AOM 3.17 aid. Of the 1997 amount, $18,844,000 is for 1997 integration 3.18 aid. 3.19 (c) As a condition of receiving a grant, each district must 3.20 continue to report its costs according to the uniform financial 3.21 accounting and reporting system. As a further condition of 3.22 receiving a grant, each district must submit a report to the 3.23 chairs of the education committees of the legislature about the 3.24 actual expenditures it made for integration using the grant 3.25 money including achievement results. These grants may be used to 3.26 transport students attending a nonresident district under 3.27 Minnesota Statutes, section 120.062, to the border of the 3.28 resident district. A district may allocate a part of the grant 3.29 to the transportation fund for this purpose. 3.30 Sec. 5. Laws 1995, First Special Session chapter 3, 3.31 article 15, section 26, subdivision 8, is amended to read: 3.32 Subd. 8. [SECONDARY VOCATIONAL; STUDENTS WITH 3.33 DISABILITIES.] For aid for secondary vocational education for 3.34 pupils with disabilities according to Minnesota Statutes, 3.35 section 124.574: 3.36$4,489,000$5,026,000 ..... 1996 4.1$5,424,000$6,147,000 ..... 1997 4.2 The 1996 appropriation includes $590,000 for 1995 and 4.3$3,899,000$4,436,000 for 1996. 4.4 The 1997 appropriation includes$688,000$782,000 for 1996 4.5 and$4,736,000$5,365,000 for 1997. 4.6 Sec. 6. Laws 1995, First Special Session chapter 3, 4.7 article 3, section 19, is amended by adding a subdivision to 4.8 read: 4.9 Subd. 18. [MONTEVIDEO GRANT.] For a grant to independent 4.10 school district No. 129, Montevideo, for the unreimbursed costs 4.11 of an adult farm management program: 4.12 $100,000 ..... 1996 4.13 Sec. 7. [120.063] [STUDENT AND FAMILY EDUCATION CHOICE 4.14 THROUGH VOUCHERS.] 4.15 Subdivision 1. [COMMISSIONER ADMINISTERS.] The 4.16 commissioner shall administer the voucher program set out in 4.17 this section. 4.18 Subd. 2. [PURPOSES.] The purposes of the voucher program 4.19 are: 4.20 (1) to provide expanded learning opportunities for children 4.21 who, because of income, have less access to education 4.22 opportunities provided by nonpublic schools; 4.23 (2) to provide, through competition, added incentives for 4.24 the public education system to continue to improve; 4.25 (3) to empower parents to determine the type of educational 4.26 program they want for their children; 4.27 (4) to ensure that a child's right to an education under 4.28 the state constitution is met while enabling parents to exercise 4.29 more fully their right to direct the upbringing and education of 4.30 their children; 4.31 (5) to encourage greater parental involvement in education 4.32 by increasing family commitment to the school of choice and by 4.33 enhancing relationships between school officials and parents; 4.34 (6) to recognize the success of Minnesota's existing school 4.35 choice programs and to further broaden educational options; and 4.36 (7) to accommodate the increasing numbers of school-age 5.1 children in a cost-efficient manner by making greater use of 5.2 existing school facilities and resources. 5.3 Subd. 3. [ELIGIBLE STUDENT.] (a) Students eligible for the 5.4 voucher program are described in this subdivision. A student 5.5 must be of school age and a resident of special school district 5.6 No. 1, Minneapolis; independent school district Nos. 286, 5.7 Brooklyn Center; or 625, Saint Paul, or an out-state district 5.8 chosen by the commissioner. The commissioner shall establish 5.9 criteria to determine the out-state district. The student's 5.10 household income must not be more than 275 percent of the 5.11 federal poverty level. The student must be enrolled in 5.12 kindergarten or grade 1 to 12 in a school described in 5.13 subdivision 4. 5.14 (b) Interested persons residing in out-state areas may 5.15 apply to the commissioner for the person's resident district to 5.16 be included in the voucher program. 5.17 Subd. 4. [ELIGIBLE SCHOOL.] An eligible student may use a 5.18 voucher in an eligible school. An eligible school must: 5.19 (1) be a nonpublic school other than a home school; 5.20 (2) be one in which a child is provided instruction in 5.21 compliance with sections 120.101 and 120.102; 5.22 (3) accept vouchers in payment of tuition and instructional 5.23 fees for an eligible student enrolled in the school; 5.24 (4) allow the commissioner to periodically verify the 5.25 actual enrollment of eligible students; and 5.26 (5) use a performance-based accreditation system by an 5.27 accrediting agency recognized under Minnesota Statutes, section 5.28 123.935, allow its eligible students to participate in the state 5.29 graduation standards, or develop and publish performance 5.30 standards and assessments based on the performance standards. 5.31 Subd. 5. [PROGRAM PROCEDURE.] The commissioner must make 5.32 information available to parents or guardians of school age 5.33 children in the eligible school districts, develop a simple 5.34 voucher form to implement this subdivision, and provide the 5.35 voucher form to those who request it. The parent or guardian 5.36 primarily responsible to pay an eligible student's tuition must 6.1 fill out the voucher form and certify the student's residency 6.2 and household income eligibility. The parent or guardian must 6.3 then assign the voucher to the eligible school that enrolls the 6.4 student. The school must certify the student's enrollment and 6.5 tuition and instructional fees to redeem the voucher. The 6.6 commissioner must pay the amount of the redeemed voucher to the 6.7 eligible school. 6.8 Subd. 6. [BASIC VOUCHER AMOUNT.] (a) Subject to paragraphs 6.9 (b) and (c), the amount of an eligible student's voucher will 6.10 vary from $500 for a student whose household income is at 275 6.11 percent of the federal poverty level to $3,000 for a student 6.12 whose household income is at or below 130 percent of the federal 6.13 poverty level. The commissioner shall adopt a sliding scale for 6.14 voucher amounts for students with household incomes between 130 6.15 and 275 percent of the federal poverty level. 6.16 (b) The basic voucher amount is for the cost of tuition and 6.17 instructional fees. 6.18 (c) The voucher amount for an eligible student enrolled at 6.19 an eligible school for less than a full school year must be 6.20 prorated. 6.21 Subd. 7. [SPECIAL EDUCATION.] (a) After the basic 6.22 education voucher is calculated, a parent or guardian may 6.23 request a special education voucher. Subject to paragraph (b), 6.24 the special education voucher amount is the state average 6.25 special education revenue per special education student. The 6.26 parent or guardian of a student is responsible to annually 6.27 submit the certification of the student's qualification for 6.28 special education services. 6.29 (b) The special education voucher amount is for the cost of 6.30 providing special education instruction and services. 6.31 (c) Any law or rule requiring a resident district to 6.32 provide special education instruction and services for a 6.33 resident student shall not apply to an eligible student 6.34 receiving a special education voucher. 6.35 Subd. 8. [TRANSPORTATION.] (a) After the basic education 6.36 voucher is calculated, a parent or guardian may request a 7.1 transportation voucher. The transportation voucher amount is 7.2 the per pupil amount of nonpublic pupil transportation revenue 7.3 for the resident district. 7.4 (b) Any law or rule requiring a district to provide 7.5 transportation for a resident student shall not apply to an 7.6 eligible student receiving a transportation voucher. 7.7 Subd. 9. [TUITION CHARGE.] An eligible school must not 7.8 charge more than its published tuition and instructional fees to 7.9 an eligible student. An eligible school may charge an eligible 7.10 student who receives the voucher an amount equal to the 7.11 difference between the student's voucher amount and the sum of 7.12 the school's tuition and instructional fees. 7.13 Sec. 8. [120.0631] [OTHER AIDS.] 7.14 (a) A school district may include an eligible student who 7.15 attended a public school in the district in the year directly 7.16 preceding the year the student first received a voucher and is 7.17 currently receiving a voucher, in its total pupil count for 7.18 purposes of otherwise applicable school revenue programs. The 7.19 commissioner shall reduce the amount of state aids to which a 7.20 district is entitled by the amount of the basic voucher and 7.21 special education and transportation vouchers as they apply. 7.22 (b) A student receiving a transportation voucher is not 7.23 eligible for aid under section 124.225, subdivision 16. 7.24 (c) A student receiving a basic voucher is not eligible for 7.25 aid under sections 123.931 to 123.947. 7.26 Sec. 9. [120.0632] [IMPLEMENTATION GUIDELINES.] 7.27 The commissioner shall adopt guidelines and implement the 7.28 voucher program. The guidelines must be adopted with the advice 7.29 and consent of the council established under section 123.935, 7.30 subdivision 7. The guidelines must include: (1) the manner of 7.31 payments, which shall be in the form of a voucher redeemable 7.32 upon presentation to the department of children, families, and 7.33 learning by an eligible school for services provided; (2) a 7.34 process for verification of student eligibility before payment 7.35 of the basic voucher; (3) the process for verification of 7.36 student eligibility before payment of the special education 8.1 voucher; and (4) the pupil application form and submission 8.2 process. 8.3 Sec. 10. [120.0633] [EDUCATION VOUCHER PROGRAM 8.4 APPROPRIATION.] 8.5 For fiscal year 1998 and thereafter, there is annually 8.6 appropriated from the general fund to the department of 8.7 children, families, and learning the amount necessary for the 8.8 education voucher program. This amount shall be reduced by the 8.9 amount of any money specifically appropriated for the same 8.10 purpose in any year from any state fund. 8.11 Sec. 11. [APPROPRIATION.] 8.12 $15,000,000 in fiscal year 1997 is appropriated from the 8.13 general fund to the commissioner of the department of children, 8.14 families, and learning to implement sections 1 and 3 and to 8.15 redeem vouchers for the 1996-1997 school year. 8.16 Sec. 12. [EFFECTIVE DATES.] 8.17 Sections 7, 8, 9, and 11 are effective the day following 8.18 final enactment to make the voucher program operational for the 8.19 1996-1997 school year and thereafter. Section 10 is effective 8.20 July 1, 1997. 8.21 Sec. 13. [AFTER-SCHOOL ENRICHMENT PROGRAMS.] 8.22 Subdivision 1. [NEIGHBORHOOD DESIGNATION.] The 8.23 commissioner of children, families, and learning shall designate 8.24 one community organization in each of three qualifying 8.25 neighborhoods in St. Paul and three qualifying neighborhoods in 8.26 Minneapolis to plan and implement after-school enrichment 8.27 programs. The commissioner shall provide technical assistance 8.28 to the organizations, if needed, to develop a plan. 8.29 Subd. 2. [PROGRAM OUTCOMES.] The outcomes of the 8.30 after-school enrichment programs shall be to: 8.31 (1) increase the number of children participating in 8.32 after-school programs who live in the designated neighborhoods; 8.33 (2) reduce the juvenile crime rate in the designated 8.34 neighborhoods; 8.35 (3) reduce the number of police calls involving juveniles 8.36 during the afternoon after-school hours; 9.1 (4) increase school attendance; 9.2 (5) reduce the number of school suspensions; 9.3 (6) increase the number of youth engaged in community 9.4 service; 9.5 (7) increase youth academic achievement; and 9.6 (8) increase the skills of youth in computers, the arts, 9.7 athletics, and other activities. 9.8 Subd. 3. [PLAN.] By July 1, 1996, each designated 9.9 community organization shall develop a plan for an after-school 9.10 enrichment program for children ages nine through 13 who reside 9.11 in the designated neighborhood served by the community 9.12 organization. Each community organization developing a plan 9.13 shall identify points of collaboration with other organizations 9.14 and resources available to implement an after-school enrichment 9.15 program. The plan shall include: 9.16 (1) collaboration and leverage of community resources that 9.17 exist and are effective; 9.18 (2) creative outreach to the children; 9.19 (3) collaboration of grassroots organizations; 9.20 (4) local governments and schools acting as resources; 9.21 (5) community control over the design of the enrichment 9.22 program; and 9.23 (6) the availability of enrichment activities for a minimum 9.24 of five days per week after school with future plans to extend 9.25 to seven days per week. 9.26 Subd. 4. [BOARD; PLAN APPROVAL; GRANTS.] (a) A plan 9.27 developed by a community organization under subdivision 3 shall 9.28 be submitted to a review board consisting of three members 9.29 appointed by the governor. When an organization's plan is 9.30 approved by the board, the board shall award a grant to the 9.31 community organization for the implementation of the plan. The 9.32 board also shall award small amounts of grant money to the 9.33 community organization to develop a plan. 9.34 (b) The board may develop additional outcomes under 9.35 subdivision 2 and plan requirements under subdivision 3. 9.36 Sec. 14. [APPROPRIATION.] 10.1 $5,000,000 is appropriated in fiscal year 1996 to the 10.2 commissioner of children, families, and learning for the 10.3 purposes of section 13. The appropriation is available until 10.4 expended. 10.5 Sec. 15. [EFFECTIVE DATE.] 10.6 Sections 13 and 14 are effective the day following final 10.7 enactment. 10.8 Sec. 16. Minnesota Statutes 1995 Supplement, section 10.9 124.17, subdivision 1d, is amended to read: 10.10 Subd. 1d. [FISCAL YEAR 1997 AFDC PUPIL UNITS.] AFDC pupil 10.11 units for fiscal year1993 and thereafter1997 must be computed 10.12 according to this subdivision. 10.13 (a) The AFDC concentration percentage for a district equals 10.14 the product of 100 times the ratio of: 10.15 (1) the number of pupils enrolled in the district from 10.16 families receiving aid to families with dependent children 10.17 according to subdivision 1e; to 10.18 (2) the number of pupils in average daily membership 10.19 according to subdivision 1e enrolled in the district. 10.20 (b) The AFDC pupil weighting factor for a district equals 10.21 the lesser of one or the quotient obtained by dividing the 10.22 district's AFDC concentration percentage by 11.5. 10.23 (c) The AFDC pupil units for a district for fiscal year 10.24 1993 and thereafter equals the product of: 10.25 (1) the number of pupils enrolled in the district from 10.26 families receiving aid to families with dependent children 10.27 according to subdivision 1e; times 10.28 (2) the AFDC pupil weighting factor for the district; times 10.29 (3) .67. 10.30 Sec. 17. Minnesota Statutes 1994, section 124.17, 10.31 subdivision 1e, is amended to read: 10.32 Subd. 1e. [FISCAL YEAR 1997 AFDC PUPIL COUNTS.] AFDC pupil 10.33 counts and average daily membership for subdivisions 1b and 1d 10.34 shall be determined according to this subdivision: 10.35 (a) For districts where the number of pupils from families 10.36 receiving aid to families with dependent children has increased 11.1 over the preceding year for each of the two previous years, the 11.2 number of pupils enrolled in the district from families 11.3 receiving aid to families with dependent children shall be those 11.4 counted on October 1 of the previous school year. The average 11.5 daily membership used shall be from the previous school year. 11.6 (b) For districts that do not meet the requirement of 11.7 paragraph (a), the number of pupils enrolled in the district 11.8 from families receiving aid to families with dependent children 11.9 shall be the average number of pupils on October 1 of the second 11.10 previous school year and October 1 of the previous school year. 11.11 The average daily membership used shall be the average number 11.12 enrolled in the previous school year and the second previous 11.13 school year. 11.14 (c) Notwithstanding paragraphs (a) and (b), for charter 11.15 schools in the first three years of operation, the number of 11.16 pupils enrolled from families receiving aid to families with 11.17 dependent children shall be those counted on October 1 of the 11.18 current school year. The average daily membership used shall be 11.19 from the current school year. 11.20 Sec. 18. Minnesota Statutes 1994, section 124.17, is 11.21 amended by adding a subdivision to read: 11.22 Subd. 1f. [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 11.23 year 1998 and thereafter must be computed according to this 11.24 subdivision. 11.25 (a) The AFDC concentration percentage for a district equals 11.26 the product of 100 times the ratio of: 11.27 (1) the number of pupils residing in the district from 11.28 families receiving aid to families with dependent children 11.29 according to subdivision 1g, paragraph (a); 11.30 (2) the number of pupils in average daily membership 11.31 according to subdivision 1g, paragraph (a), residing in the 11.32 district. 11.33 (b) The AFDC pupil weighting factor for AFDC pupils 11.34 residing in a district equals the lesser of one or the quotient 11.35 obtained by dividing the district's AFDC concentration 11.36 percentage by 11.5. 12.1 (c) The AFDC pupil units for a district for fiscal year 12.2 1998 and thereafter for each pupil enrolled in the district from 12.3 a family receiving aid to families with dependent children 12.4 according to subdivision 1g, paragraph (b), equals the product 12.5 of: 12.6 (1) the AFDC pupil weighting factor for pupil's district of 12.7 residence; times 12.8 (2) .67. 12.9 Sec. 19. Minnesota Statutes 1994, section 124.17, is 12.10 amended by adding a subdivision to read: 12.11 Subd. 1g. [AFDC PUPIL COUNTS.] (a) AFDC pupil counts and 12.12 average daily membership for subdivision 1f, paragraph (a), 12.13 shall be determined according to this paragraph. 12.14 (1) For districts where the number of resident pupils from 12.15 families receiving aid to families with dependent children has 12.16 increased over the preceding year for each of the two previous 12.17 years, the number of pupils residing in the district from 12.18 families receiving aid to families with dependent children shall 12.19 be those counted on October 1 of the previous school year. The 12.20 average daily membership used shall be from the previous school 12.21 year. 12.22 (2) For districts that do not meet the requirement of 12.23 paragraph (1), the number of pupils residing in the district 12.24 from families receiving aid to families with dependent children 12.25 shall be the average number of pupils on October 1 of the second 12.26 previous school year and October 1 of the previous school year. 12.27 The average daily membership used shall be the average number of 12.28 pupils residing in the district in the previous school year and 12.29 the second previous school year. 12.30 (b) AFDC pupil counts for subdivision 1f, paragraph (b), 12.31 shall be determined according to this paragraph. 12.32 (1) For districts where the number of pupils from families 12.33 receiving aid to families with dependent children enrolled in 12.34 the district has increased over the preceding year for each of 12.35 the two previous years, the pupils enrolled in the district from 12.36 families receiving aid to families with dependent children shall 13.1 be those counted on October 1 of the previous school year. 13.2 (2) For districts that do not meet the requirement of 13.3 paragraph (1), pupils enrolled in the district from families 13.4 receiving aid to families with dependent children shall be those 13.5 counted on October 1 of the previous school year times one-half, 13.6 plus those counted on October 1 of the second previous school 13.7 year times one-half. 13.8 (3) Notwithstanding clauses (1) and (2), for charter 13.9 schools in the first three years of operation, the number of 13.10 pupils enrolled from families receiving aid to families with 13.11 dependent children shall be those counted on October 1 of the 13.12 current school year. 13.13 Sec. 20. [124C.75] [EDUCATION TECHNOLOGY CLEARINGHOUSE AND 13.14 UPGRADE SYSTEM.] 13.15 Subdivision 1. [ESTABLISHMENT OF TECHNOLOGY 13.16 CLEARINGHOUSE.] Through a competitive grant process, the 13.17 commissioner shall establish two or more education technology 13.18 clearinghouses. The purpose of such clearinghouses shall be as 13.19 follows: 13.20 (1) to serve as centers where businesses or others may 13.21 donate new or used computers or other technology for use by 13.22 Minnesota public and private elementary and secondary schools 13.23 and to upgrade that technology so that it shall be useful to 13.24 schools; 13.25 (2) to upgrade current district technology to make it more 13.26 useful for educational programming; 13.27 (3) to inform districts regarding the technology available 13.28 through the clearinghouse; 13.29 (4) to collaborate with businesses and other potential 13.30 donors regarding the types of technology needed as well as how 13.31 to make the technology available from the donors to schools 13.32 through the clearinghouse. 13.33 The clearinghouse will retain the ability to review 13.34 equipment for suitability and refuse equipment that does not 13.35 meet district needs. 13.36 Subd. 2. [SYSTEM FOR TECHNOLOGY DISTRIBUTION.] The 14.1 commissioner shall establish and communicate the process to be 14.2 used for districts to access the clearinghouse. Part of that 14.3 process shall include a provision that the business or other 14.4 donor may designate the district or school site where the 14.5 technology is to be used. 14.6 Subd. 3. [REVENUE USE.] The revenue appropriated for this 14.7 section may be used to purchase needed technology for upgrading 14.8 the computers and other technology from donors, employing staff 14.9 at the technology clearinghouse and upgrade centers, for 14.10 informing districts and businesses about the program, and other 14.11 uses approved by the commissioner. 14.12 Sec. 21. [124C.76] [COMPUTER HARDWARE AND 14.13 TELECOMMUNICATIONS HARDWARE GRANTS TO DISTRICTS.] 14.14 Subdivision 1. [PUBLIC AND PRIVATE PARTNERSHIP.] A program 14.15 is established to promote public and private partnership with 14.16 school districts for the purchase of computer hardware, network 14.17 hardware, and telecommunications hardware. 14.18 Subd. 2. [PROGRAM ADMINISTRATION.] The commissioner of the 14.19 department of children, families, and learning will establish 14.20 guidelines and an application process to distribute funds to 14.21 school districts who can obtain matching funds from either a 14.22 public or private source for purchase of new computer, network, 14.23 or telecommunications hardware. Hardware purchased under this 14.24 program must be used for support of classroom instruction, the 14.25 implementation of computer networks, or support of 14.26 telecommunications connectivity. Funding for this program will 14.27 be provided to school districts on the basis of a per pupil 14.28 formula. School districts will provide 40 percent of the 14.29 purchase costs of equipment through local and matching funds and 14.30 the department will provide 60 percent of the purchase costs 14.31 through the per pupil formula. The commissioner shall establish 14.32 a process to distribute any unallocated funds. 14.33 Sec. 22. [124C.77] [AFTER-SCHOOL PROGRAMS.] 14.34 The commissioner shall establish a process to initiate a 14.35 competitive grant program to enhance the use of technology in 14.36 after-school programs. Eligible organizations include school 15.1 districts, private schools, nonprofit community organizations, 15.2 public housing agencies, and other successful programs that 15.3 serve youth. 15.4 Sec. 23. Laws 1995, First Special Session chapter 3, 15.5 article 12, section 12, subdivision 7, is amended to read: 15.6 Subd. 7. [TELECOMMUNICATION ACCESS GRANTS.] For grants to 15.7 school districts and regional public library systems to 15.8 establish connections to MNet according to section 124C.74: 15.9 $5,500,000 ..... 1996 15.10$5,000,000$13,000,000 ..... 1997 15.11 This appropriation is available until June 30, 1997. 15.12 Sec. 24. Laws 1995, First Special Session chapter 3, 15.13 article 12, section 12, is amended by adding a subdivision to 15.14 read: 15.15 Subd. 11. For education technology clearinghouse and to 15.16 upgrade system: 15.17 $1,000,000 ..... 1997 15.18 Sec. 25. Laws 1995, First Special Session chapter 3, 15.19 article 12, section 12, is amended by adding a subdivision to 15.20 read: 15.21 Subd. 12. For computer hardware, network hardware, and 15.22 telecommunications hardware grants to school districts: 15.23 $12,000,000 ..... 1997 15.24 Sec. 26. Laws 1995, First Special Session chapter 3, 15.25 article 12, section 12, is amended by adding a subdivision to 15.26 read: 15.27 Subd. 13. For after-school programs: 15.28 $1,000,000 ..... 1997 15.29 Sec. 27. [REFERENDUM AUTHORITY; PARK RAPIDS.] 15.30 Subdivision 1. [REVENUE.] Notwithstanding the reduction 15.31 required by Minnesota Statutes, section 124A.03, subdivision 3b, 15.32 the referendum revenue allowance for independent school district 15.33 No. 309, Park Rapids, is $315 per pupil unit. This referendum 15.34 authorization is available for the number of years specified on 15.35 the district's referendum ballot held during June 1995. 15.36 Subd. 2. [LEVY RECLASSIFICATION.] Independent school 16.1 district No. 309, Park Rapids, may reclassify as payable 1996 16.2 referendum levy other payable 1996 levies. The amount 16.3 reclassified may not exceed the difference between the levy 16.4 authority authorized in subdivision 1 and the amount of 16.5 referendum levy certified by the district for taxes payable in 16.6 1996. Any reclassified levy is not subject to the market value 16.7 requirement in Minnesota Statutes, section 124A.03, subdivision 16.8 2a. 16.9 Sec. 28. [EFFECTIVE DATE.] 16.10 Section 27 is effective the day following final enactment 16.11 and applies for revenue for 1996-1997 and later school years. 16.12 Sec. 29. Minnesota Statutes 1995 Supplement, section 16.13 124.961, is amended to read: 16.14 124.961 [DEBT SERVICE APPROPRIATION.] 16.15 (a) $30,054,000 in fiscal year 16.16 1996,$27,370,000$28,228,000 in fiscal year 1997, 16.17 and$32,200,000$33,210,000 in fiscal year 1998 and each year 16.18 thereafter is appropriated from the general fund to the 16.19 commissioner of children, families, and learning for payment of 16.20 debt service equalization aid under section 124.95. The 1998 16.21 appropriation includes$4,830,000$4,982,000 for 1997 and 16.22$27,370,000$28,228,000 for 1998. 16.23 (b) The appropriations in paragraph (a) must be reduced by 16.24 the amount of any money specifically appropriated for the same 16.25 purpose in any year from any state fund. 16.26 Sec. 30. [APPROVAL FOR DEBT SERVICE EQUALIZATION AID; 16.27 ROYALTON.] 16.28 Notwithstanding Minnesota Statutes, section 124.95, 16.29 subdivision 2, debt service levy attributable to bonds 16.30 authorized at an election conducted in 1995 by independent 16.31 school district No. 485, Royalton, qualifies for debt service 16.32 equalization aid. 16.33 Sec. 31. [EFFECTIVE DATE.] 16.34 Sections 29 and 30 are effective the day following final 16.35 enactment and apply to debt service equalization aid payments 16.36 for fiscal year 1997 and thereafter. 17.1 Sec. 32. Minnesota Statutes 1995 Supplement, section 17.2 124.195, subdivision 12, is amended to read: 17.3 Subd. 12. [AID ADJUSTMENT FOR TRA CONTRIBUTION RATE 17.4 CHANGE.] (a) The department of children, families, and learning 17.5 shall reduce general education aid or any other aid paid in a 17.6 fiscal year directly to school districts, intermediate school17.7districts, education districts, education cooperative service17.8units, special education cooperatives, secondary vocational17.9cooperatives, regional management information centers, or17.10another. Any district or cooperative unit providing elementary 17.11 or secondary education services that is prohibited from 17.12 receiving direct state aids by section 124.193 or 124.32, 17.13 subdivision 12, is exempt from this reduction. The reduction 17.14 shall equal the following percent of salaries paid in a fiscal 17.15 year by the entity to members of the teachers retirement 17.16 association established in chapter 354. However, salaries paid 17.17 to members of the association who are employed by a technical 17.18 college shall be excluded from this calculation: 17.19 (1) in fiscal year 1991, 0.84 percent, 17.20 (2) in fiscal year 1992 and later years, the greater of 17.21 (i) zero, or 17.22 (ii) 4.48 percent less the additional employer contribution 17.23 rate established under section 354.42, subdivision 5. 17.24 (b) In fiscal year 1991, this reduction is estimated to 17.25 equal $14,260,000. 17.26 Sec. 33. Minnesota Statutes 1995 Supplement, section 17.27 120.064, subdivision 15, is amended to read: 17.28 Subd. 15. [TRANSPORTATION.] (a) By July 1 of each year, a 17.29 charter school shall notify the district in which the school is 17.30 located and the department of children, families, and learning 17.31 if it will provide transportation for pupils enrolled at the 17.32 school for the fiscal year. 17.33 (b) If a charter school elects to provide transportation 17.34 for pupils, the transportation shall be provided by the charter 17.35 school within the district in which the charter school is 17.36 located. The state shall pay transportation aid to the charter 18.1 school according to section 124.248, subdivision 1a. 18.2 For pupils who reside outside the district in which the 18.3 charter school is located, the charter school is not required to 18.4 provide or pay for transportation between the pupil's residence 18.5 and the border of the district in which the charter school is 18.6 located. A parent may be reimbursed by the charter school for 18.7 costs of transportation from the pupil's residence to the border 18.8 of the district in which the charter school is located if the 18.9 pupil is from a family whose income is at or below the poverty 18.10 level, as determined by the federal government. The 18.11 reimbursement may not exceed the pupil's actual cost of 18.12 transportation or 15 cents per mile traveled, whichever is 18.13 less. Reimbursement may not be paid for more than 250 miles per 18.14 week. 18.15 At the time a pupil enrolls in a charter school, the 18.16 charter school shall provide the parent or guardian with 18.17 information regarding the transportation. 18.18 (c) If a charter school does not elect to provide 18.19 transportation, transportation for pupils enrolled at the school 18.20 shall be provided by the district in which the school is 18.21 located, according to sections 120.062, subdivision 9, and 18.22 123.39, subdivision 6, for a pupil residing in the same district18.23in which the charter school is located. Transportation may be18.24provided by the district in which the school is located,18.25according to sections 120.062, subdivision 9, and 123.39,18.26subdivision 6, for a pupil residing in a different district. 18.27 Sec. 34. Minnesota Statutes 1995 Supplement, section 18.28 124.225, subdivision 8l, is amended to read: 18.29 Subd. 8l. [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 18.30 that enrolls nonresident pupils in programs under sections 18.31 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 18.32 126.22, may provide authorized transportation to the pupil 18.33 within the attendance area for the school that the pupil 18.34 attends. A district shall also provide authorized 18.35 transportation within the attendance area to a pupil enrolled in 18.36 a charter school under section 120.064, if the charter school 19.1 does not elect to provide transportation according to section 19.2 120.064, subdivision 15. The state shall pay transportation aid 19.3 attributable to the pupil to the nonresident district according 19.4 to this section. The resident district need not provide or pay 19.5 for transportation between the pupil's residence and the 19.6 district's border. 19.7 Sec. 35. Laws 1995, First Special Session chapter 3, 19.8 article 11, section 21, subdivision 2, is amended to read: 19.9 Subd. 2. [DEPARTMENT.] For the department of education: 19.10$23,150,000$24,875,000 ..... 1996 19.11$21,803,000$23,538,000 ..... 1997 19.12 (a) Any balance in the first year does not cancel but is 19.13 available in the second year. 19.14 (b) $21,000 each year is from the trunk highway fund. 19.15 (c) $522,000 each year is for the academic excellence 19.16 foundation. 19.17 Up to $50,000 each year is contingent upon the match of $1 19.18 in the previous year from private sources consisting of either 19.19 direct monetary contributions or in-kind contributions of 19.20 related goods or services, for each $1 of the appropriation. 19.21 The commissioner of education must certify receipt of the money 19.22 or documentation for the private matching funds or in-kind 19.23 contributions. The unencumbered balance from the amount 19.24 actually appropriated from the contingent amount in 1996 does 19.25 not cancel but is available in 1997. The amount carried forward 19.26 must not be used to establish a larger annual base appropriation 19.27 for later fiscal years. 19.28 (d) $204,000 each year is for the state board of education. 19.29 (e) $227,000 each year is for the board of teaching. 19.30 (f) $775,000 each year is for educational effectiveness 19.31 programs according to Minnesota Statutes, sections 121.602 and 19.32 121.608. 19.33 (g) $60,000 each year is for contracting with the state 19.34 fire marshal to provide the services required according to 19.35 Minnesota Statutes, section 121.1502. 19.36 (h) $400,000 each year is for health and safety management 20.1 assistance contracts under Minnesota Statutes, section 124.83. 20.2 (i) The expenditures of federal grants and aids as shown in 20.3 the biennial budget document and its supplements are approved 20.4 and appropriated and shall be spent as indicated. 20.5 (j) The commissioner shall maintain no more than five total 20.6 complement in the categories of commissioner, deputy 20.7 commissioner, assistant commissioner, assistant to the 20.8 commissioner, and executive assistant. 20.9 The department of education may establish full-time, 20.10 part-time, or seasonal positions as necessary to carry out 20.11 assigned responsibilities and missions. Actual employment 20.12 levels are limited by the availability of state funds 20.13 appropriated for salaries, benefits, and agency operations or 20.14 funds available from other sources for such purposes. 20.15 (k) The department of education shall develop a performance 20.16 report on the quality of its programs and services. The report 20.17 must be consistent with the process specified in Minnesota 20.18 Statutes, sections 15.90 to 15.92. The goals, objectives, and 20.19 measures of this report must be developed in cooperation with 20.20 the chairs of the finance divisions of the education committees 20.21 of the house of representatives and senate, the department of 20.22 finance, and the office of legislative auditor. The report 20.23 prepared in 1995 must include a complete set of goals, 20.24 objectives, and measures for the department. The report 20.25 presented in 1996 and subsequent years must include data to 20.26 indicate the progress of the department in meeting its goals and 20.27 objectives. 20.28 The department of education must present a plan for a 20.29 biennial report on the quality and performance of key education 20.30 programs in Minnesota's public early childhood, elementary, 20.31 middle, and secondary education programs. To the extent 20.32 possible, the plan must be consistent with Minnesota Statutes, 20.33 sections 15.90 to 15.92. The department must consult with the 20.34 chairs of the finance divisions of the education committees of 20.35 the house of representatives and senate, the department of 20.36 finance, and the office of legislative auditor in developing 21.1 this plan. The plan for this report must be presented in 1995 21.2 and the first biennial report presented in 1996. 21.3 (l) The commissioner of education shall perform a 21.4 facilities standards evaluation of public elementary and 21.5 secondary facilities in the state. This evaluation shall 21.6 include a measure of the following: 21.7 (1) the physical condition of education facilities; 21.8 (2) the level of utilization relative to the capacity of 21.9 education facilities; 21.10 (3) the intensity of technological use in both 21.11 administrative and instructional areas in education facilities; 21.12 (4) the alignment between education programs in place and 21.13 the structure of education facilities; and 21.14 (5) an estimate of facility construction over the next 21.15 decade. 21.16 This evaluation may be based on a sample of facilities but 21.17 must include geographic breakdowns of the state. 21.18 The report shall indicate which construction and repair of 21.19 district facilities is required to bring a district into 21.20 compliance with fire safety codes, occupational safety and 21.21 health requirements, and the Americans with Disabilities Act. 21.22 The commissioner shall recommend to the 1996 legislature 21.23 standards for the review and comment process under Minnesota 21.24 Statutes, section 121.15. The standards must integrate the use 21.25 of technology, both current and potential, flexible scheduling, 21.26 and program adjustments relative to implementation of the 21.27 graduation rule. 21.28 (m) $120,000 is for a feasibility and design study to 21.29 develop a statewide student performance accountability report. 21.30 The department must identify and assess the current availability 21.31 of critical data-based information about student performance and 21.32 feasibility of using information from the existing sources, 21.33 recommend additional data-based elements and data collection 21.34 strategies that will provide for ongoing assessment of 21.35 educational reform and improvement, and recommend methods for 21.36 improving the coordination and dissemination of local 22.1 accountability reports as part of a statewide reporting system. 22.2 The study must include a statewide implementation and budget 22.3 plan. The study process must involve other government units, 22.4 school and citizen leaders, and members of higher education 22.5 concerned with the education and development of children and 22.6 youth. It must also consider ways to access the research and 22.7 development capacity of institutions of higher education in 22.8 Minnesota. The commissioner shall report the results of the 22.9 study to the education committees of the legislature and the 22.10 state board of education by February 1, 1996. 22.11 (n) $1,000,000 in fiscal year 1996 is for grants to special 22.12 school district No. 1, Minneapolis, and independent school 22.13 district No. 625, St. Paul, for after school enrichment pilot 22.14 programs targeted towards junior high and middle school 22.15 students. These programs shall be developed collaboratively 22.16 with city government, park boards, family services 22.17 collaboratives, and any other community organizations offering 22.18 similar programming. Any balance remaining in the first year 22.19 does not cancel but is available in the second year. 22.20 (o) $188,000 each year is appropriated from the special 22.21 revenue fund for the graduation rule. The department 22.22 appropriation is to be used to fund continued assessment and 22.23 standards development and piloting; to broaden public 22.24 understanding through communication; to continue development of 22.25 learning benchmarks; for ongoing statewide assessment efforts; 22.26 to develop system performance standards; and to provide 22.27 technical assistance to schools throughout the state. The 22.28 appropriation from the special revenue fund is to be used for 22.29 appropriate development efforts in health-related standards and 22.30 assessments. Any amount of this appropriation does not cancel 22.31 and shall be carried forward to the following fiscal year. 22.32 Notwithstanding any law to the contrary, the commissioner may 22.33 contract for national expertise and related services in each of 22.34 these development areas. Notwithstanding Minnesota Statutes, 22.35 section 15.53, subdivision 2, the commissioner of education may 22.36 contract with a school district for a period no longer than five 23.1 consecutive years for the services of an educator to work in the 23.2 development, implementation, or both, of the graduation rule. 23.3 The commissioner may contract for services and expertise as 23.4 necessary for development and implementation of the graduation 23.5 standards. Notwithstanding any law to the contrary, the 23.6 contracts are not subject to the contract certification 23.7 procedures of the commissioner of administration or of Minnesota 23.8 Statutes, chapter 16B, and are not subject to or included in any 23.9 spending limitations on contracts. 23.10 (p) $600,000 in 1996 and $350,000 in 1997 is for transition 23.11 aid for information support. 23.12 (q) Up to $50,000 each year is for grants to school 23.13 districts for mentorship cooperative ventures between school 23.14 districts and post-secondary teacher preparation institutions 23.15 for alternative licensure programs according to Minnesota 23.16 Statutes, section 125.188. 23.17 (r) Up to $50,000 each year is for GED coordination. 23.18 Sec. 36. Laws 1995, First Special Session chapter 3, 23.19 article 11, section 21, is amended by adding a subdivision to 23.20 read: 23.21 Subd. 4. [LITIGATION COSTS.] For the department of 23.22 children, families, and learning for costs associated with 23.23 desegregation litigation. 23.24 $298,000 ..... 1996 23.25 $433,000 ..... 1997 23.26 Sec. 37. Laws 1995, First Special Session chapter 3, 23.27 article 11, section 22, is amended to read: 23.28 Sec. 22. [APPROPRIATIONS; MINNESOTA CENTER FOR ARTS 23.29 EDUCATION.] 23.30 The sums indicated in this section are appropriated from 23.31 the general fund to the Minnesota center for arts education for 23.32 the fiscal years designated: 23.33$5,217,000$5,330,000 ..... 1996 23.34$5,217,000$5,456,000 ..... 1997 23.35 Of the fiscal year 1996 appropriation, $154,000 is to fund 23.36 artist and arts organization participation in the education 24.1 residency and education technology projects, $75,000 is for 24.2 school support for the residency project, and $121,000 is for 24.3 further development of the partners: arts and school for 24.4 students (PASS) program, including pilots. Of the fiscal year 24.5 1997 appropriation, $154,000 is to fund artist and arts 24.6 organizations participation in the education residency project, 24.7 $75,000 is for school support for the residency project, and 24.8 $121,000 is to fund the PASS program, including additional 24.9 pilots. The guidelines for the education residency project and 24.10 the pass program shall be developed and defined by the Minnesota 24.11 arts board. The Minnesota arts board shall participate in the 24.12 review and allocation process. The center for arts education 24.13 shall cooperate with the Minnesota arts board to fund these 24.14 projects. 24.15 Any balance remaining in the first year does not cancel, 24.16 but is available in the second year. 24.17 The Minnesota center for arts education may establish 24.18 full-time, part-time, or seasonal positions as necessary to 24.19 carry out assigned responsibilities and missions. Actual 24.20 employment levels are limited by the availability of state funds 24.21 appropriated for salaries, benefits and agency operations or 24.22 funds available from other sources for such purposes. 24.23 In the next biennial budget, the Minnesota center for arts 24.24 education must assess its progress in meeting its established 24.25 performance measures and inform the legislature on the content 24.26 of that assessment. The information must include an assessment 24.27 of its progress by consumers and employees. 24.28 Sec. 38. Laws 1995, First Special Session chapter 3, 24.29 article 11, section 23, is amended to read: 24.30 Sec. 23. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 24.31 The sums indicated in this section are appropriated from 24.32 the general fund to the department of education for the 24.33 Faribault academies for the fiscal years designated: 24.34$8,075,000$8,316,000 ..... 1996 24.35$8,075,000$8,526,000 ..... 1997 24.36 Any balance in the first year does not cancel but is 25.1 available in the second year. 25.2 The state board of education may establish full-time, 25.3 part-time, or seasonal positions as necessary to carry out 25.4 assigned responsibilities and missions of the Faribault 25.5 academies. Actual employment levels are limited by the 25.6 availability of state funds appropriated for salaries, benefits 25.7 and agency operations or funds available from other sources for 25.8 such purposes. 25.9 In the next biennial budget, the academies must assess 25.10 their progress in meeting the established performance measures 25.11 for the Faribault academies and inform the legislature on the 25.12 content of that assessment. The information must include an 25.13 assessment of its progress by consumers and employees. 25.14 Sec. 39. Minnesota Statutes 1995 Supplement, section 25.15 121.904, subdivision 4a, is amended to read: 25.16 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 25.17 settlement revenue" means the current, delinquent, and 25.18 manufactured home property tax receipts collected by the county 25.19 and distributed to the school district, including distributions 25.20 made pursuant to section 279.37, subdivision 7, and excluding 25.21 the amount levied pursuant to section 124.914, subdivision 1. 25.22 (b) In June of each year, the school district shall 25.23 recognize as revenue, in the fund for which the levy was made, 25.24 the lesser of: 25.25 (1) the May, June, and July school district tax settlement 25.26 revenue received in that calendar year; or 25.27 (2) the sum of the state aids and credits enumerated in 25.28 section 124.155, subdivision 2, which are for the fiscal year 25.29 payable in that fiscal year plus an amount equal to the levy 25.30 recognized as revenue in June of the prior year plus4818.3 25.31 percent for fiscal year 1996 and 48 percent for fiscal year 1997 25.32 and thereafter of the amount of the levy certified in the prior 25.33 calendar year according to section 124A.03, subdivision 2, plus 25.34 or minus auditor's adjustments, not including levy portions that 25.35 are assumed by the state; except that for fiscal year 1997, 25.36 districts qualifying under this clause shall recognize the sum 26.1 of state aids and credits enumerated in section 124.155, 26.2 subdivision 2, plus an amount equal to the levy that would have 26.3 been recognized in June of the prior year if the tax shift 26.4 recognition percent had been 48 percent plus 48 percent of the 26.5 levy certified in the prior calendar year according to section 26.6 124A.03, subdivision 2, plus or minus auditor's adjustments, not 26.7 including levy portions that are assumed by the state; or 26.8 (3)4818.3 percent for fiscal year 1996, 48 percent for 26.9 fiscal year 1997 and thereafter of the amount of the levy 26.10 certified in the prior calendar year, plus or minus auditor's 26.11 adjustments, not including levy portions that are assumed by the 26.12 state, which remains after subtracting, by fund, the amounts 26.13 levied for the following purposes: 26.14 (i) reducing or eliminating projected deficits in the 26.15 reserved fund balance accounts for unemployment insurance and 26.16 bus purchases; 26.17 (ii) statutory operating debt pursuant to section 124.914, 26.18 subdivision 1; 26.19 (iii) retirement and severance pay pursuant to sections 26.20 122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 26.21 124.912, subdivision 1, and 124.916, subdivision 3, and Laws 26.22 1975, chapter 261, section 4; 26.23 (iv) amounts levied for bonds issued and interest thereon, 26.24 amounts levied for debt service loans and capital loans, amounts 26.25 levied for down payments under section 124.82, subdivision 3, 26.26 and amounts levied pursuant to section 136C.411; and 26.27 (v) amounts levied under section 124.755. 26.28 (c) In July of each year, the school district shall 26.29 recognize as revenue that portion of the school district tax 26.30 settlement revenue received in that calendar year and not 26.31 recognized as revenue for the previous fiscal year pursuant to 26.32 clause (b). 26.33 (d) All other school district tax settlement revenue shall 26.34 be recognized as revenue in the fiscal year of the settlement. 26.35 Portions of the school district levy assumed by the state, 26.36 including prior year adjustments and the amount to fund the 27.1 school portion of the reimbursement made pursuant to section 27.2 273.425, shall be recognized as revenue in the fiscal year 27.3 beginning in the calendar year for which the levy is payable. 27.4 Sec. 40. [REPEALER.] 27.5 Minnesota Statutes 1995 Supplement, section 121.904, 27.6 subdivisions 4c and 4d, are repealed. 27.7 ARTICLE 2 27.8 HIGHER EDUCATION 27.9 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 27.10 The sums in the columns headed "APPROPRIATIONS" are 27.11 appropriated from the general fund, or another named fund, to 27.12 the agencies and for the purposes specified to be available for 27.13 the fiscal years indicated for each purpose. 27.14 APPROPRIATIONS 27.15 Available for the Year 27.16 Ending June 30 27.17 1996 1997 27.18 Sec. 2. HIGHER EDUCATION 27.19 SERVICES OFFICE $ -0- $ 200,000 27.20 The higher education services office 27.21 shall award grants to public or private 27.22 nonprofit organizations in the cities 27.23 of Minneapolis and St. Paul for the 27.24 purpose of hiring college students to 27.25 provide after-school tutoring, 27.26 mentoring, academic support, or other 27.27 enrichment programs to students in 27.28 grades four through eight. College 27.29 students hired must be enrolled at 27.30 least half-time in a Minnesota public 27.31 or private post-secondary institution. 27.32 This appropriation is nonrecurring. 27.33 Sec. 3. MINNESOTA STATE COLLEGES 27.34 AND UNIVERSITIES -0- 50,000 27.35 This appropriation is for Bemidji State 27.36 University to establish an applied 27.37 research, design, and development 27.38 center. The center will contract with 27.39 Minnesota businesses and industries to 27.40 conduct applied research. This 27.41 appropriation is nonrecurring. 27.42 Sec. 4. UNIVERSITY OF MINNESOTA 27.43 (a) Reengineer Health Care 27.44 Education 27.45 -0- 5,000,000 27.46 This appropriation is for the academic 27.47 health center to redesign and 27.48 restructure its health care education 27.49 programs. These funds may be used for 27.50 curriculum redesign, to underwrite the 28.1 development of new or expanded 28.2 programs, and cover the costs of 28.3 downsizing programs and retraining 28.4 faculty and staff. This appropriation 28.5 is nonrecurring. 28.6 (b) Academic Health Center 28.7 Technology 28.8 -0- 9,500,000 28.9 This appropriation is for the academic 28.10 health center for the development and 28.11 purchase of new information technology 28.12 to improve the delivery of health care 28.13 education programs. 28.14 Sec. 5. DEPARTMENT OF 28.15 ADMINISTRATION -0- 250,000 28.16 This appropriation is for the 28.17 information policy office to select and 28.18 plan for the implementation of a 28.19 statewide on-line information system 28.20 for the libraries of Minnesota. These 28.21 funds are to determine the 28.22 functionality and compatibility needed 28.23 for the system, and to evaluate 28.24 possible systems and vendors. The 28.25 system selected shall be open to all 28.26 Minnesota academic, school, state 28.27 agency, public, and private libraries. 28.28 The IPO shall manage the selection and 28.29 planning process with the review and 28.30 comment of the library planning task 28.31 force and in coordination with all 28.32 possible participants in the new system. 28.33 Sec. 6. [POST-SECONDARY FINANCE POLICY.] 28.34 Subdivision 1. [FINANCE POLICY.] It is the policy of the 28.35 state to invest in the development of its human capital through 28.36 appropriations that support post-secondary education and 28.37 training, research, and the application and dissemination of new 28.38 knowledge for the public benefit. It is the policy of the state 28.39 to set performance measures to regularly evaluate the outcomes 28.40 of its investments in post-secondary education, research, and 28.41 public service. 28.42 Subd. 2. [PERFORMANCE MEASURES.] Each post-secondary 28.43 system shall establish at least one measurable performance 28.44 outcome for each category of direct state appropriation it 28.45 receives. Each system shall report on its performance for each 28.46 of these outcomes in the state's biennial performance report. 28.47 Subd. 3. [APPROPRIATIONS FOR INSTRUCTION.] The direct 28.48 appropriations for instruction to the University of Minnesota 28.49 and to the Minnesota state colleges and universities shall be 29.1 used to support the direct and indirect costs of providing 29.2 programs of instruction that award credit for a degree. 29.3 Subd. 4. [INSTRUCTIONAL PROGRAM REPORTS.] (a) Each public 29.4 post-secondary system shall report in the biennial budget 29.5 document data on the annual costs, enrollment, and outputs for 29.6 all programs of instruction that award credit leading to a 29.7 degree. 29.8 (b) The report shall present data by the following levels 29.9 of instruction, where applicable: lower division undergraduate 29.10 level, upper division undergraduate level, graduate level, and 29.11 professional graduate level. 29.12 (1) The enrollment data shall include total full-year 29.13 equivalent enrollment and subtotals for the following 29.14 categories, where applicable: 29.15 (i) legal residents of Minnesota; 29.16 (ii) residents of other states or provinces with which 29.17 Minnesota has a reciprocity agreement, and students enrolled 29.18 under the Midwest Compact student exchange program; and 29.19 (iii) students who are concurrently enrolled in a public 29.20 secondary school under the post-secondary enrollment options act. 29.21 (2) The output data shall be the annual number of degrees 29.22 awarded. 29.23 (3) The cost data shall be reported in total and average 29.24 amounts for the indirect, direct, and fully allocated costs of 29.25 instruction. 29.26 Sec. 7. [REPEALER.] 29.27 Minnesota Statutes 1994, sections 135A.01; 135A.02; 29.28 135A.03; 135A.031, subdivisions 1, 3, 4, 5, and 6; 135A.032; 29.29 135A.033; and 135A.034; Minnesota Statutes 1995 Supplement, 29.30 section 135A.031, subdivision 2, are repealed. 29.31 ARTICLE 3 29.32 HEALTH AND HUMAN SERVICES 29.33 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 29.34 The sums in the columns headed "APPROPRIATIONS" are 29.35 appropriated or reductions from appropriations from the general 29.36 fund, or another named fund, to the agencies and for the 30.1 purposes specified to be available for the fiscal years 30.2 indicated for each purpose. 30.3 SUMMARY BY FUND 30.4 1996 1997 30.5 General $ (114,693,000)$ (51,028,000) 30.6 State Government Special 30.7 Revenue Fund 50,000 100,000 30.8 APPROPRIATIONS 30.9 Available for the Year 30.10 Ending June 30 30.11 1996 1997 30.12 Sec. 2. COMMISSIONER OF 30.13 HUMAN SERVICES $ (114,693,000)$ (65,028,000) 30.14 Subdivision 1. Finance 30.15 and Management 30.16 -0- 250,000 30.17 Subd. 2. Life Skills 30.18 Self-Sufficiency 30.19 (3,462,000) (146,000) 30.20 The amounts that may be spent from this 30.21 appropriation for each purpose are as 30.22 follows: 30.23 (a) Chemical Dependency 30.24 Consolidated Treatment 30.25 (3,462,000) (1,346,000) 30.26 (b) Administration and Other 30.27 Grants 30.28 -0- 1,200,000 30.29 Subd. 3. Children's Program 30.30 -0- 1,500,000 30.31 Subd. 4. Economic 30.32 Self-Sufficiency 30.33 (13,697,000) (17,544,000) 30.34 The amounts that may be spent from this 30.35 appropriation for each purpose are as 30.36 follows: 30.37 (a) AFDC Grants 30.38 (13,092,000) (16,794,000) 30.39 (b) MFIP Grants 30.40 -0- 64,000 30.41 (c) Child Care Entitlement 30.42 Grants 30.43 (1,258,000) (871,000) 31.1 (d) General Assistance 31.2 Grants 31.3 958,000 470,000 31.4 (e) MSA Grants 31.5 (740,000) (823,000) 31.6 (f) Administration and 31.7 Other Grants 31.8 435,000 410,000 31.9 Subd. 5. Health Care 31.10 (97,534,000) (49,088,000) 31.11 The amounts that may be spent from this 31.12 appropriation for each purpose are as 31.13 follows: 31.14 (a) Group Residential Housing 31.15 Grants 31.16 (3,318,000) (4,501,000) 31.17 (b) MA Long-Term 31.18 Facilities 31.19 (19,997,000) (9,014,000) 31.20 (c) MA Long-Term Care Waivers 31.21 and Home Care 31.22 (2,313,000) 318,000 31.23 (d) MA Managed Care and Fee 31.24 for Service 31.25 (20,231,000) (9,331,000) 31.26 (e) General Assistance Medical 31.27 Care 31.28 (52,145,000) (30,375,000) 31.29 (f) Administration and Other 31.30 Grants 31.31 470,000 3,815,000 31.32 Administrative money appropriated for 31.33 the prepaid medical assistance program 31.34 may be transferred between grants and 31.35 nongrant administration costs. 31.36 Sec. 3. COMMISSIONER OF HEALTH -0- 14,000,000 31.37 $4,000,000 is appropriated to the 31.38 commissioner for core public health 31.39 functions. Of this amount, up to five 31.40 percent is available to the 31.41 commissioner for administrative and 31.42 technical support of community health 31.43 boards. The commissioner is 31.44 responsible for the distribution of 31.45 these funds to community health boards 31.46 in qualifying community health services 31.47 areas according to the existing 31.48 community health services subsidy 32.1 formula. Funds distributed shall not 32.2 be used to displace current funding 32.3 appropriations or to provide individual 32.4 personal health care services. These 32.5 funds shall be distributed only to 32.6 those community health services areas 32.7 which are participating in the state's 32.8 prepaid medical assistance program. 32.9 Base funding for core public health 32.10 functions shall be transferred from the 32.11 general fund to the health care access 32.12 fund for the fiscal year beginning July 32.13 1, 1997. 32.14 Sec. 4. MEDICAL PRACTICES BOARD 50,000 100,000 32.15 $50,000 in fiscal year 1996 and 32.16 $100,000 in fiscal year 1997 is 32.17 appropriated from the state government 32.18 special revenue fund to the board of 32.19 medical practice for the health 32.20 professionals services program and is 32.21 added to the appropriation in Laws 32.22 1995, chapter 207, article 1, section 32.23 5, subdivision 6. 32.24 Sec. 5. [62J.69] [MEDICAL EDUCATION AND RESEARCH TRUST 32.25 FUND.] 32.26 Subdivision 1. [PURPOSE.] Since all health care 32.27 stakeholders, as well as society at large, benefit from medical 32.28 education and health care research, and the costs of these 32.29 activities should be fairly allocated across the health care 32.30 system, the commissioner of health shall appoint an advisory 32.31 commission to assist in the development and implementation of a 32.32 mechanism by which to administer a special trust fund to be set 32.33 up for funding the activities of medical education and research. 32.34 Subd. 2. [DEFINITIONS.] For purposes of this section, the 32.35 following definitions apply: 32.36 (a) "Medical education" means the accredited clinical 32.37 training of physicians (medical students and residents), 32.38 dentists, advanced practice nurses (clinical nurse specialist, 32.39 certified registered nurse anesthetists, nurse practitioners, 32.40 and certified nurse midwives), and physician assistants. 32.41 (b) "Clinical training" means training that occurs in both 32.42 inpatient and ambulatory care settings. 32.43 (c) "Trainee" means students involved in an accredited 32.44 clinical training program for medical education as defined in 32.45 paragraph (a). 32.46 (d) "Health care research" means approved clinical, 33.1 outcomes, and health services investigations that are funded by 33.2 patient out-of-pocket expenses or a third-party payor. 33.3 (e) "Commissioner" means the commissioner of health. 33.4 Subd. 3. [ALLOCATION AND FUNDING FOR MEDICAL EDUCATION AND 33.5 RESEARCH.] (a) The commissioner shall establish a trust fund for 33.6 the purposes of funding medical education and research 33.7 activities in the state of Minnesota. 33.8 (b) By January 1, 1997, the commissioner shall appoint a 33.9 commission to provide advice and oversight on the distribution 33.10 of funds from the medical education and research trust fund. 33.11 The commissioner shall: (1) consider the interest of all 33.12 stakeholders when selecting commission members; (2) select 33.13 members that represent both urban and rural interest; and (3) 33.14 select members that include ambulatory care as well as inpatient 33.15 perspectives. The commissioner shall appoint to the commission 33.16 representatives of the following groups: medical researchers, 33.17 public and private academic medical centers, managed care 33.18 organizations, Blue Cross and Blue Shield of Minnesota, 33.19 commercial carriers, Minnesota Medical Association, nursing, 33.20 employers, and other relevant stakeholders, including 33.21 consumers. The commission is governed by section 15.059 for 33.22 membership terms and removal of members and will sunset on June 33.23 30, 1999. 33.24 (c) Eligible applicants for funds include institutions, 33.25 facilities, or training programs directly involved in medical 33.26 education training. Applications must be received by September 33.27 30 of each year for distribution by January 1 of the following 33.28 year. An application for funds must include the following: 33.29 (1) the official name and address of the institution, 33.30 facility, or program that is applying for funding; 33.31 (2) the name, title, and business address of those persons 33.32 responsible for administering the funds; 33.33 (3) the total number, type, and specialty orientation of 33.34 eligible trainees in each medical education program applying for 33.35 funds; 33.36 (4) audited clinical training costs per trainee for each 34.1 medical education program; 34.2 (5) a description of current sources of funding for medical 34.3 education costs including a description and dollar amount of all 34.4 state and federal financial support; 34.5 (6) other revenue received for the purposes of clinical 34.6 training; 34.7 (7) a statement identifying unfunded costs; and 34.8 (8) other supporting information the commissioner, with 34.9 advice from the advisory commission, determines is necessary for 34.10 the equitable distribution of funds. 34.11 (d) The commissioner shall distribute medical education 34.12 funds to all qualifying applicants based on the following basic 34.13 criteria: (1) total medical education funds available; (2) 34.14 total trainees in each eligible education program; (3) the 34.15 statewide average cost per trainee, by type of trainee, in each 34.16 medical education program; and (4) a program incentive factor to 34.17 be determined each year by the commissioner in consultation with 34.18 the advisory commission. The program incentive factor should 34.19 reflect the priorities and needs of the state in terms of health 34.20 care workforce. The incentive factor may not be used if the 34.21 commissioner finds (i) that workforce needs and priorities have 34.22 not been adequately documented, or (ii) if market forces are 34.23 adequately addressing workforce requirements. Funds distributed 34.24 shall not be used to displace current funding appropriations 34.25 from federal or state sources. 34.26 (e) Medical education programs receiving funds from the 34.27 trust fund must submit annual cost and program reports based on 34.28 criteria established by the commissioner. The reports must 34.29 include: 34.30 (1) the total number of eligible trainees in the program; 34.31 (2) the type of programs and residencies funded; 34.32 (3) the average cost per trainee and a detailed breakdown 34.33 of the components of those costs; 34.34 (4) other state or federal appropriations received for the 34.35 purposes of clinical training; 34.36 (5) other revenue received for the purposes of clinical 35.1 training; and 35.2 (6) other information the commissioner, with advice from 35.3 the advisory commission, deems appropriate to evaluate the 35.4 effectiveness of the use of funds for clinical training. 35.5 The commissioner, with advice from the advisory commission, 35.6 will provide an annual summary report to the legislature on 35.7 program implementation due February 15 of each year. 35.8 (f) The commissioner is authorized to distribute additional 35.9 funds made available through: 35.10 (1) voluntary contributions by employers or other entities; 35.11 (2) allocations for the department of human services to 35.12 support medical education and research; and 35.13 (3) other sources as identified and deemed appropriate by 35.14 the legislature for inclusion in the trust fund. 35.15 (g) The commission shall continue to study and make 35.16 recommendations on: 35.17 (1) the funding of medical research consistent with work 35.18 currently mandated by the legislature and under way at the 35.19 department of health; 35.20 (2) the costs and benefits associated with medical 35.21 education and research; and 35.22 (3) workforce requirements and state priorities. 35.23 Sec. 6. Minnesota Statutes 1994, section 257.0755, 35.24 subdivision 3, is amended to read: 35.25 Subd. 3. [APPROPRIATION.] Money appropriated for each 35.26 ombudsperson from the general fund or the special fund 35.27 authorized by section 256.01, subdivision 2, clause (15), is 35.28 under the control of each ombudsperson for which it is 35.29 appropriated. Each ombudsperson may apply for and receive 35.30 nonstate funds. Any funds received are appropriated to the 35.31 office for the purpose for which the funds were granted. 35.32 ARTICLE 4 35.33 ENVIRONMENT AND NATURAL RESOURCES 35.34 Section 1. [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.] 35.35 The sums in the columns headed "APPROPRIATIONS" are 35.36 appropriated from the general fund, or another named fund, to 36.1 the agencies and for the purposes specified to be available for 36.2 the fiscal years indicated for each purpose. 36.3 SUMMARY BY FUND 36.4 1996 1997 36.5 General Fund $ 713,000 $ 2,030,000 36.6 APPROPRIATIONS 36.7 Available for the Year 36.8 Ending June 30 36.9 1996 1997 36.10 Sec. 2. POLLUTION CONTROL 36.11 AGENCY $ 400,000 $ -0- 36.12 $200,000 is appropriated in fiscal year 36.13 1996 to conduct a detailed assessment 36.14 of the water quality point source 36.15 activities as detailed in the 1995 blue 36.16 ribbon task force report to the 36.17 legislature. The unencumbered balance 36.18 in the first year does not cancel but 36.19 is available through June 30, 1997. 36.20 $200,000 is appropriated in fiscal year 36.21 1996 for legal defense of a lawsuit 36.22 filed by environmental agencies against 36.23 the state. The unencumbered balance in 36.24 the first year does not cancel but is 36.25 available through June 30, 1997. 36.26 Sec. 3. NATURAL RESOURCES 313,000 2,030,000 36.27 Subdivision 1. Forest Management 36.28 293,000 -0- 36.29 This appropriation is for unanticipated 36.30 costs the agency incurred for the 36.31 assessment of timber damage, cleanup, 36.32 reconstruction, and replacement of 36.33 damaged natural resources, facilities, 36.34 and roads related to July 1995 storm 36.35 damage. 36.36 Subd. 2. Parks and Recreation 36.37 20,000 -0- 36.38 This appropriation is for unanticipated 36.39 costs the agency incurred for removal 36.40 of damaged trees and other storm 36.41 debris, and the cleanup and repair of 36.42 state park facilities related to July 36.43 1995 storm damage. 36.44 Subd. 3. Trails and Waterways 36.45 -0- 1,650,000 36.46 $150,000 is appropriated in 1997 for 36.47 the development of a recreation plan 36.48 for the Minnesota River Valley. Of 36.49 this amount, $100,000 is for a grant to 36.50 the Minnesota River joint powers board 36.51 for their work and preparation of the 36.52 recreation plan. 37.1 $1,500,000 is appropriated in 1997 for 37.2 the construction of a new protected 37.3 public water access at Taconite Harbor 37.4 on Lake Superior. This appropriation 37.5 is available until expended. 37.6 Subd. 4. Operations Support 37.7 -0- 380,000 37.8 $300,000 is appropriated in 1997 to 37.9 partially restore a program reduction 37.10 made to the administrative, regional, 37.11 and support functions of the agency. 37.12 This appropriation is added to the 37.13 appropriation in Laws 1995, chapter 37.14 220, section 5, subdivision 9. 37.15 $80,000 is appropriated in 1997 to 37.16 prepare recommendations on the 37.17 reorganization of state and local 37.18 entities that protect and manage state 37.19 water resources. 37.20 Sec. 4. Minnesota Statutes 1994, section 17.117, 37.21 subdivision 3, is amended to read: 37.22 Subd. 3. [APPROPRIATIONS.] Up to$20,000,000$40,000,000 37.23 of the balance in the water pollution control revolving fund in 37.24 section 446A.07, as determined by the public facilities 37.25 authority, is appropriated to the commissioner for the 37.26 establishment of this program. 37.27 Sec. 5. Minnesota Statutes 1995 Supplement, section 37.28 103F.725, subdivision 1a, is amended to read: 37.29 Subd. 1a. [FINANCIAL ASSISTANCE; LOANS.] (a) Up to 37.30$12,000,000$24,000,000 of the balance in the water pollution 37.31 control revolving fund in section 446A.07, as determined by the 37.32 public facilities authority shall be appropriated to the 37.33 commissioner for the establishment of a clean water partnership 37.34 loan program. 37.35 (b) The agency may award loans for up to 100 percent of the 37.36 costs associated with activities identified by the agency as 37.37 best management practices pursuant to section 319 and section 37.38 320 of the federal Water Quality Act of 1987, as amended, 37.39 including associated administrative costs. 37.40 (c) Loans may be used to finance clean water partnership 37.41 grant project eligible costs not funded by grant assistance. 37.42 (d) The interest rate, at or below market rate, and the 37.43 term, not to exceed 20 years, shall be determined by the agency 38.1 in consultation with the public facilities authority. 38.2 (e) The repayment must be deposited in the water pollution 38.3 control revolving fund under section 446A.07. 38.4 (f) The local unit of government receiving the loan is 38.5 responsible for repayment of the loan. 38.6 (g) For the purpose of obtaining a loan from the agency, a 38.7 local government unit may provide to the agency its general 38.8 obligation note. All obligations incurred by a local government 38.9 unit in obtaining a loan from the agency must be in accordance 38.10 with chapter 475, except that so long as the obligations are 38.11 issued to evidence a loan from the agency to the local 38.12 government unit, an election is not required to authorize the 38.13 obligations issued, and the amount of the obligations shall not 38.14 be included in determining the net indebtedness of the local 38.15 government unit under the provisions of any law or chapter 38.16 limiting the indebtedness. 38.17 Sec. 6. Minnesota Statutes 1995 Supplement, section 38.18 446A.07, subdivision 8, is amended to read: 38.19 Subd. 8. [OTHER USES OF REVOLVING FUND.] The water 38.20 pollution control revolving fund may be used as provided in 38.21 title VI of the Federal Water Pollution Control Act, including 38.22 the following uses: 38.23 (1) to buy or refinance the debt obligation of governmental 38.24 units for treatment works where debt was incurred and 38.25 construction begun after March 7, 1985, at or below market 38.26 rates; 38.27 (2) to guarantee or purchase insurance for local 38.28 obligations to improve credit market access or reduce interest 38.29 rates; 38.30 (3) to provide a source of revenue or security for the 38.31 payment of principal and interest on revenue or general 38.32 obligation bonds issued by the authority if the bond proceeds 38.33 are deposited in the fund; 38.34 (4) to provide loan guarantees, loans, or set-aside for 38.35 similar revolving funds established by a governmental unit other 38.36 than state agencies, or state agencies under sections 17.117, 39.1 103F.725, subdivision 1a, 116J.403, and 116J.617; provided that 39.2 no more than$2,000,000$4,000,000 of the balance in the fund 39.3 may be used for the small cities block grant program under 39.4 section 116J.403 and the tourism loan program under section 39.5 116J.617, taken together; 39.6 (5) to earn interest on fund accounts; and 39.7 (6) to pay the reasonable costs incurred by the authority 39.8 and the agency of administering the fund and conducting 39.9 activities required under the federal Water Pollution Control 39.10 Act, including water quality management planning under section 39.11 205(j) of the act and water quality standards continuing 39.12 planning under section 303(e) of the act. 39.13 Amounts spent under clause (6) may not exceed the amount 39.14 allowed under the Federal Water Pollution Control Act. 39.15 Sec. 7. Laws 1995, chapter 220, section 7, subdivision 4, 39.16 is amended to read: 39.17 Subd. 4. Administration and 39.18 Financial Assistance 39.19 6,608,000 5,713,000 39.20 Summary by Fund 39.21 General 6,600,000 5,705,000 39.22 Special Revenue 8,000 8,000 39.23 $1,200,000 from the balance in the 39.24 special account created in Minnesota 39.25 Statutes, section 41.61, shall be 39.26 transferred to the general fund by June 39.27 30, 1997. 39.28 $150,000 the first year and $50,000 the 39.29 second year are for dairy policy 39.30 studies and federal milk marketing 39.31 order reform. 39.32 $285,000 the first year and $285,000 39.33 the second year are for family farm 39.34 security interest payment adjustments. 39.35 If the appropriation for either year is 39.36 insufficient, the appropriation for the 39.37 other year is available for it. No new 39.38 loans may be approved in fiscal year 39.39 1996 or 1997. 39.40 $199,000 the first year and $199,000 39.41 the second year are for the family farm 39.42 advocacy program. 39.43 $80,000 the first year and $80,000 the 39.44 second year are for grants to farmers 39.45 for demonstration projects involving 39.46 sustainable agriculture. If a project 40.1 cost is more than $25,000, the amount 40.2 above $25,000 must be cost-shared at a 40.3 state-applicant ratio of one to one. 40.4 Priorities must be given for projects 40.5 involving multiple parties. Up to 40.6 $20,000 each year may be used for 40.7 dissemination of information about the 40.8 demonstration grant projects. If the 40.9 appropriation for either year is 40.10 insufficient, the appropriation for the 40.11 other is available. 40.12 $70,000 the first year and $70,000 the 40.13 second year are for the Northern Crops 40.14 Institute. These appropriations may be 40.15 spent to purchase equipment and are 40.16 available until spent. 40.17 $150,000 the first year and $150,000 40.18 the second year are for grants to 40.19 agriculture information centers.The40.20grants are only available on a match40.21basis. The funds may be released at40.22the rate of $4 of state money for each40.23$1 of matching nonstate money that is40.24raised. Any appropriated amounts not40.25matched by April 1 of each year are40.26available for other purposes within the40.27department, of which $10,000 each year40.28may be used for farm safety programs40.29and remains available until June 30,40.301997.40.31 $53,000 the first year and $53,000 the 40.32 second year are for payment of claims 40.33 relating to livestock damaged by 40.34 threatened or endangered animal species 40.35 and agricultural crops damaged by elk. 40.36 If the appropriation for either year is 40.37 insufficient, the appropriation for the 40.38 other year is available for it. 40.39 $115,000 the first year and $115,000 40.40 the second year are for the seaway port 40.41 authority of Duluth. 40.42 $19,000 the first year and $19,000 the 40.43 second year is for a grant to the 40.44 Minnesota livestock breeder's 40.45 association. 40.46 $75,000 the first year and $75,000 the 40.47 second year are for grants to the 40.48 University of Minnesota for applied 40.49 research on odor control at feedlots. 40.50 This appropriation is available only if 40.51 matched by the same amount in nonstate 40.52 money. The research must provide: (1) 40.53 an evaluation of cost-effective covers 40.54 for manure storage structures; and (2) 40.55 development of economical means of 40.56 altering the biological activity in 40.57 manure storage structures to reduce 40.58 odor emissions. 40.59 $25,000 the first year is for a grant 40.60 to the University of Minnesota for 40.61 research into the effects feedlots have 40.62 on the value of nearby property. The 40.63 research must take into account the 40.64 distance the property is from the 41.1 feedlot, the type of feedlot, and be 41.2 based on actual sales of property near 41.3 feedlots. 41.4 Notwithstanding any other law to the 41.5 contrary, for fiscal year 1995 $800,000 41.6 from the general fund may be 41.7 transferred to the special account 41.8 created in Minnesota Statutes, section 41.9 17B.15, subdivision 1, to provide an 41.10 operating loan to the grain inspection 41.11 and weighing account. The commissioner 41.12 of agriculture shall repay the loan 41.13 from the special account by June 30, 41.14 1997. 41.15 $50,000 in the first year shall be used 41.16 by the commissioner of agriculture as a 41.17 grant for a pilot project for an 41.18 anaerobic digestion plant for the 41.19 management of animal manures and 41.20 research of other appropriate 41.21 technologies for management of animal 41.22 manures. 41.23 $350,000 the first year is for transfer 41.24 to the ethanol development account in 41.25 the special revenue fund. 41.26 $200,000 the first year is for transfer 41.27 to the value added agriculture product 41.28 revolving loan account in the special 41.29 revenue fund. 41.30 ARTICLE 5 41.31 ECONOMIC DEVELOPMENT 41.32 Section 1. [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 41.33 The sums in the columns marked "APPROPRIATIONS" are 41.34 appropriated from the general fund, or another named fund, to 41.35 the agencies and for the purposes specified in this article, to 41.36 be available for the fiscal years indicated for each purpose. 41.37 SUMMARY BY FUND 41.38 1996 1997 41.39 General $ 3,000,000 $ 16,422,000 41.40 Petroleum 41.41 Tank Cleanup 47,000 93,000 41.42 Special 41.43 Compensation -0- 2,800,000 41.44 TOTAL $ 3,047,000 $ 19,315,000 41.45 APPROPRIATIONS 41.46 Available for the Year 41.47 Ending June 30 41.48 1996 1997 41.49 Sec. 2. DEPARTMENT OF TRADE AND 41.50 ECONOMIC DEVELOPMENT $ 3,000,000 $ 6,737,000 41.51 (a) Minnesota Investment Fund 42.1 -0- 6,000,000 42.2 $6,000,000 is appropriated in 1997 for 42.3 the purposes of sections 116J.8731 and 42.4 116J.8732. 42.5 Any funds previously appropriated for 42.6 the economic recovery grants program 42.7 that are unobligated, unexpended, and 42.8 otherwise available for expenditure on 42.9 the effective date of this act may be 42.10 expended for the purposes of Minnesota 42.11 Statutes, sections 116J.8731 and 42.12 116J.8732. 42.13 (b) Bio-Medical Endowment 42.14 3,000,000 -0- 42.15 $3,000,000 is appropriated in 1996 to 42.16 leverage private funds to contribute to 42.17 an endowment fund for the bio-medical 42.18 engineering center at the University of 42.19 Minnesota. 42.20 (c) One-Stop Permitting 42.21 -0- 737,000 42.22 $737,000 is appropriated in 1997 to 42.23 support the initial phase of the 42.24 development of a computerized database 42.25 to store information relevant to 42.26 business licenses and permits required 42.27 by the state of Minnesota. 42.28 Sec. 3. MINNESOTA WORLD TRADE CENTER 42.29 CORPORATION -0- 285,000 42.30 $285,000 is appropriated in 1997 for 42.31 the full and final payment of the 42.32 remaining 1988 debt of the Minnesota 42.33 World Trade Center Corporation which 42.34 was incurred for conference center 42.35 furniture, fixtures, and equipment. 42.36 Sec. 4. DEPARTMENT OF ECONOMIC 42.37 SECURITY -0- 9,400,000 42.38 (a) Minnesota Youth Program 42.39 -0- 6,000,000 42.40 $6,000,000 is appropriated in 1997 to 42.41 offset anticipated reductions in the 42.42 federal Title IIB, Job Training 42.43 Partnership Act (JTPA) Summer Youth 42.44 program. 42.45 (b) Minnesota Workforce Center System 42.46 -0- 1,800,000 42.47 $1,800,000 is appropriated in 1997 to 42.48 leverage federal dollars in support of 42.49 the establishment of a public access 42.50 computer system to Minnesota Workforce 42.51 System services. 42.52 (c) Uniform Business Identifier 43.1 -0- 1,600,000 43.2 $1,600,000 is appropriated in 1997 for 43.3 the initial design and implementation 43.4 phase of a Uniform Business Identifier 43.5 (UBI) registration process and database 43.6 for business in the state of Minnesota. 43.7 Sec. 5. DEPARTMENT OF 43.8 COMMERCE 47,000 93,000 43.9 This appropriation is from the 43.10 petroleum tank release cleanup fund and 43.11 is for legal services. This 43.12 appropriation is added to the 43.13 appropriation in Laws 1995, chapter 43.14 224, section 7, subdivision 5. 43.15 Sec. 6. DEPARTMENT OF LABOR 43.16 AND INDUSTRY -0- 2,800,000 43.17 This appropriation is from the special 43.18 compensation fund for the Daedalus 43.19 imaging systems project. This 43.20 appropriation is added to the 43.21 appropriation in Laws 1995, chapter 43.22 224, section 12, subdivision 2. 43.23 Sec. 7. Laws 1995, chapter 224, section 2, subdivision 2, 43.24 is amended to read: 43.25 Subd. 2. Business and Community 43.26 Development 43.27 23,961,000 9,351,000 43.28 $100,000 the first year and $100,000 43.29 the second year are for the affirmative 43.30 enterprise program. The appropriation 43.31 is available until spent. 43.32 $6,017,000 the first year is for 43.33 economic recovery grants, of which 43.34 $500,000 may be used for the purposes 43.35 of the capital access program, and is 43.36 available until spent. 43.37 $379,000 the first year and $379,000 43.38 the second year are for the small 43.39 cities federal match. 43.40 $200,000 the first year and $200,000 43.41 the second year are for grants to 43.42 Advantage Minnesota, Inc. The funds 43.43 are available only if matched on at 43.44 least a dollar-for-dollar basis from 43.45 other sources. The commissioner may 43.46 release the funds only upon: 43.47 (1) certification that matching funds 43.48 from each participating organization 43.49 are available; and 43.50 (2) review and approval by the 43.51 commissioner of the proposed operations 43.52 plan of Advantage Minnesota, Inc. for 43.53 the biennium. 43.54 $450,000 the first year and $450,000 43.55 the second year are for the state's 44.1 match for the federal small business 44.2 development centers. If funding in one 44.3 year is insufficient, the other year's 44.4 appropriation is available. 44.5 $1,987,000 the first year and 44.6 $1,962,000 the second year are for the 44.7 job skills partnership program. 44.8 $300,000 is to the job skills 44.9 partnership board for the purpose of 44.10 funding the development and 44.11 implementation of a program by the city 44.12 of St. Paul which connects the economic 44.13 development activities of the St. Paul 44.14 port authority with the city of St. 44.15 Paul's employment and job development 44.16 programs. This employment connection 44.17 program shall be administered by the 44.18 port authority consistent with, and 44.19 subject to, the program requirements of 44.20 the Minnesota job skills partnership 44.21 program. The appropriation is 44.22 available until spent. 44.23 $100,000 the first year and $100,000 44.24 the second year are to the job skills 44.25 partnership board for a grant to the 44.26 city of Minneapolis' employment 44.27 connection program with the Minneapolis 44.28 Community Development Agency. 44.29 $7,800,000 is for grants under 44.30 Minnesota Statutes, sections 116J.551 44.31 to 116J.558. Of this amount, up to 44.32 $117,00 is available for administration 44.33 of the program. This appropriation is 44.34 available until spent. 44.35 $100,000 is for a grant to the Phoenix 44.36 Group, Inc. The grant must be used to 44.37 make grants and loans and provide 44.38 technical and other assistance to 44.39 community residents in neighborhoods 44.40 with high levels of poverty for the 44.41 purpose of creating business 44.42 opportunities to promote 44.43 self-sufficiency. The appropriation is 44.44 available for the biennium ending June 44.45 30, 1997. 44.46 $200,000 the first year is for a grant 44.47 to Hennepin county for the 44.48 multijurisdictional reinvestment 44.49 program established in Minnesota 44.50 Statutes, section 383B.79. Hennepin 44.51 county, working in conjunction with the 44.52 metropolitan council, shall report to 44.53 the senate committee on jobs, energy, 44.54 and community development and the house 44.55 committee on economic development, 44.56 infrastructure, and regulation finance 44.57 by February 15, 1996, with its 44.58 recommendations, funding needs, and 44.59 potential funding sources to carry out 44.60 the multijurisdictional reinvestment 44.61 program. This appropriation does not 44.62 lapse, and is available until spent. 44.63 $450,000 the first year and $515,000 44.64 the second year are from fees collected 45.1 under Minnesota Statutes, section 45.2 446A.04, subdivision 5, and credited to 45.3 the general fund to administer the 45.4 programs of the public facilities 45.5 authority. 45.6 $250,000 is for the state's share for a 45.7 matching defense conversion grant to 45.8 Hennepin and Ramsey counties from the 45.9 United States department of commerce 45.10 economic development administration. 45.11 The state and local government 45.12 contribution must be matched at least 45.13 three to one by the federal 45.14 government. This appropriation is 45.15 available until spent. 45.16 Sec. 8. Laws 1995, chapter 231, article 1, section 33, is 45.17 amended to read: 45.18 Sec. 33. [APPROPRIATION.] 45.19 The $900,000isappropriated from the special compensation 45.20 fund for the biennium ending June 30, 1997, to the department of 45.21 commerce shall be used for the purposes ofrateregulation of 45.22 commercial self-insurance groups under Minnesota Statutes, 45.23 sections 79A.19 to 79A.32 and workers' compensation rate 45.24 regulation under Minnesota Statutes, sections 79.50 to 79.561. 45.25 The complement of the department of commerce is increased by 13 45.26 positions for the purposes of rate regulation. 45.27 Sec. 9. Minnesota Statutes 1995 Supplement, section 45.28 79.561, subdivision 3, is amended to read: 45.29 Subd. 3. [CONSULTANTS AND COSTS.] The commissioner may 45.30 retain consultants, including a consulting actuary or other 45.31 experts, that the commissioner determines necessary for purposes 45.32 of this chapter. The salary limit set by section 43A.17 does 45.33 not apply to a consulting actuary retained under this 45.34 subdivision. A consulting actuary shall be a fellow in the 45.35 casualty actuarial society and shall have demonstrated 45.36 experience in workers' compensation insurance ratemaking. Any 45.37 individual not so qualified shall not render an opinion or 45.38 testify on actuarial aspects of a filing, including but not 45.39 limited to, data quality, loss development, and trending. The 45.40costs incurred incommissioner may determine the costs necessary 45.41 for implementing and conducting a contested case hearing under 45.42 subdivision 2, including, but not limited to, retaining any 46.1 consulting actuaries and experts, and those costs shall be 46.2 reimbursed by the special compensation fund. 46.3 Sec. 10. [116J.8731] [MINNESOTA INVESTMENT FUND.] 46.4 Subdivision 1. [PURPOSE.] The Minnesota investment fund is 46.5 created to provide financial assistance, through partnership 46.6 with communities, for the creation of new employment or to 46.7 maintain existing employment, and for business start-up, 46.8 expansions, and retention. It shall accomplish these goals by 46.9 the following means: 46.10 (1) creation or retention of permanent private-sector jobs 46.11 in order to create above-average economic growth consistent with 46.12 environmental protection; 46.13 (2) stimulation or leverage of private investment to ensure 46.14 economic renewal and competitiveness; 46.15 (3) increasing the local tax base, based on demonstrated 46.16 measurable outcomes, to guarantee a diversified industry mix; 46.17 (4) improvement of employment and economic opportunity for 46.18 citizens in the region to create a reasonable standard of 46.19 living, consistent with federal and state guidelines on low- to 46.20 moderate-income persons; and 46.21 (5) stimulation of productivity growth through improved 46.22 manufacturing or new technologies. 46.23 Subd. 2. [ADMINISTRATION.] The commissioner shall 46.24 administer the fund as part of the small cities development 46.25 block grant program. Funds shall be made available to local 46.26 communities and recognized Indian tribal governments in 46.27 accordance with the rules adopted for economic development 46.28 grants in the small cities community development block grant 46.29 program, except that all units of general purpose local 46.30 government are eligible applicants for Minnesota investment 46.31 funds. A home rule charter or statutory city, county, or town 46.32 may loan or grant money under this section to a regional 46.33 development commission to provide the local match required for 46.34 capitalization of a regional revolving loan fund. 46.35 Subd. 3. [GRANT LIMITS.] Grants made to local units of 46.36 government may not be approved for an amount over $500,000. If 47.1 the amount of the grant is less than $500,000, the reasons for 47.2 the reduction must be given to the applicant. The portion of a 47.3 grant to a unit of government that exceeds $100,000 must be 47.4 repaid to the state when it is repaid to the local government or 47.5 recognized Indian tribal government by the person or entity to 47.6 which it was loaned. Money repaid to the state must be credited 47.7 to the general fund. 47.8 Sec. 11. [116J.8732] [PROJECTS.] 47.9 Subdivision 1. [ELIGIBLE EXPENDITURES.] The money 47.10 appropriated for this section may be used to provide grants for 47.11 infrastructure, loans, loan guarantees, interest buy-downs, and 47.12 other forms of participation with private sources of financing, 47.13 provided that a loan to a private enterprise must be for a 47.14 principal amount not to exceed one-half of the cost of the 47.15 project for which financing is sought. 47.16 Subd. 2. [ELIGIBLE PROJECTS.] Assistance may be provided 47.17 to projects which are eligible under this section and must be 47.18 evaluated on the existence of the following conditions: 47.19 (1) creation of new jobs or retention of existing jobs; 47.20 (2) increase in the tax base; 47.21 (3) the project can demonstrate that investment of public 47.22 dollars induces private funds; 47.23 (4) the project can demonstrate an excessive public 47.24 infrastructure or improvement costs beyond the means of the 47.25 affected community and private participants in the project; 47.26 (5) the project provides higher wage levels to the 47.27 community or the project will add value to current workforce 47.28 skills; 47.29 (6) whether assistance is necessary to retain existing 47.30 business; and 47.31 (7) whether assistance is necessary to attract out-of-state 47.32 business. 47.33 Subd. 3. [CONTRACTUAL OBLIGATIONS.] Any business receiving 47.34 funds under this program must demonstrate why public dollars are 47.35 necessary for the project, including private investment that 47.36 will be made available for the project. The project must have 48.1 an established rate of return on investment of public funds, as 48.2 well as job creation goals. Any recipient that does not meet 48.3 the negotiated terms of the agreement must repay the assistance 48.4 in terms specified in the agreement. 48.5 Sec. 12. [REPEALER.] 48.6 Minnesota Statutes 1994, sections 116J.873, subdivisions 1, 48.7 2, and 4; and 268.9783, subdivision 8, are repealed. 48.8 Minnesota Statutes 1995 Supplement, section 116J.873, 48.9 subdivisions 3 and 5, is repealed. 48.10 ARTICLE 6 48.11 TRANSPORTATION 48.12 Section 1. [TRANSPORTATION AND OTHER AGENCIES APPROPRIATIONS.] 48.13 The sums in the columns headed "APPROPRIATIONS" are 48.14 appropriated from the general fund, or another named fund, to 48.15 the agencies and for the purposes specified to be available for 48.16 the fiscal years indicated for each purpose. 48.17 SUMMARY BY FUND 48.18 1996 1997 48.19 General Fund $ -0- $ 6,697,000 48.20 Trunk Highway Fund -0- 42,760,000 48.21 APPROPRIATIONS 48.22 Available for the Year 48.23 Ending June 30 48.24 1996 1997 48.25 Sec. 2. METROPOLITAN COUNCIL $ -0- $ 6,000,000 48.26 $6,000,000 is for metropolitan transit 48.27 operations in fiscal year 1997 and is 48.28 added to the appropriation in Laws 48.29 1995, chapter 265, article 2, section 3. 48.30 Sec. 3. DEPARTMENT OF PUBLIC 48.31 SAFETY -0- 4,847,000 48.32 (a) State Patrol 48.33 -0- 3,852,000 48.34 $467,000 for fiscal year 1997 is added 48.35 to the appropriations in Laws 1995, 48.36 chapter 265, article 2, section 5, 48.37 subdivision 3, for 6 additional state 48.38 patrol troopers for security services 48.39 in the capitol complex. 48.40 $3,385,000 from the trunk highway fund 48.41 for fiscal year 1997 is added to the 48.42 appropriations in Laws 1995, chapter 48.43 265, article 2, section 5, subdivision 48.44 3, for 40 additional state patrol 49.1 troopers, four communication operators, 49.2 and four support positions for enhanced 49.3 patrol services. 49.4 (b) Administration and 49.5 Related Services 49.6 -0- 995,000 49.7 $230,000 for fiscal year 1997 is added 49.8 to the appropriations in Laws 1995, 49.9 chapter 265, article 2, section 5, 49.10 subdivision 2, for agency critical 49.11 operations systems. 49.12 $765,000 for fiscal year 1997 from the 49.13 trunk highway fund is added to the 49.14 appropriations in Laws 1995, chapter 49.15 265, article 2, section 5, subdivision 49.16 2, for agency critical operations 49.17 systems. 49.18 Sec. 4. DEPARTMENT OF 49.19 TRANSPORTATION -0- 38,610,000 49.20 (a) State Road Construction 49.21 -0- 33,000,000 49.22 $33,000,000 is appropriated from the 49.23 trunk highway fund for state road 49.24 construction in fiscal year 1997 and is 49.25 added to the appropriation in Laws 49.26 1995, chapter 265, article 2, section 49.27 2, subdivision 7, clause (a). 49.28 (b) Design Engineering 49.29 and Construction Engineering 49.30 -0- 5,610,000 49.31 $5,610,000 is appropriated from the 49.32 trunk highway fund for design 49.33 engineering and construction 49.34 engineering and is added to the 49.35 appropriations in Laws 1995, chapter 49.36 265, article 2, section 2, subdivision 49.37 7, clauses (d) and (e), as needed. 49.38 (c) Greater Minnesota Transit 49.39 Assistance 49.40 Any unencumbered balance from Laws 49.41 1995, article 2, section 2, subdivision 49.42 3, clause (a), for greater Minnesota 49.43 transit assistance remaining the first 49.44 year does not cancel but is available 49.45 for the second year of the biennium. 49.46 ARTICLE 7 49.47 CRIMINAL JUSTICE 49.48 Section 1. [CRIMINAL JUSTICE APPROPRIATIONS.] 49.49 The sums in the columns headed "APPROPRIATIONS" are 49.50 appropriated from the general fund, or another named fund, to 49.51 the agencies and for the purposes specified to be available for 50.1 the fiscal years indicated for each purpose. 50.2 SUMMARY BY FUND 50.3 1996 1997 50.4 General Fund Total $ 564,000 $ 14,820,000 50.5 Trunk Highway Fund 19,000 -0- 50.6 Special Revenue Fund -0- 930,000 50.7 TOTAL $ 583,000 $ 15,750,000 50.8 APPROPRIATIONS 50.9 Available for the Year 50.10 Ending June 30 50.11 1996 1997 50.12 Sec. 2. DEPARTMENT OF 50.13 PUBLIC SAFETY $ 483,000 $ 4,700,000 50.14 (a) Auto Theft Prevention Program 50.15 -0- 930,000 50.16 $930,000 for fiscal year 1997 is 50.17 appropriated from the special revenue 50.18 fund for program administration and 50.19 grants for vehicle theft prevention 50.20 activities. This appropriation is 50.21 added to the appropriation in Laws 50.22 1995, chapter 226, article 1, section 7. 50.23 (b) Criminal Apprehension 50.24 -0- 740,000 50.25 $740,000 for fiscal year 1997 is added 50.26 to the appropriations in Laws 1995, 50.27 chapter 226, article 1, section 7, 50.28 subdivision 4, for six forensic 50.29 scientists for enhanced laboratory 50.30 services and for six special agents. 50.31 (c) Emergency Management 50.32 483,000 30,000 50.33 $464,000 from the general fund and 50.34 $19,000 from the trunk highway fund is 50.35 for disaster relief for the Great Wind 50.36 Storm of 1995. This appropriation is 50.37 added to the appropriation for fiscal 50.38 year 1996 in Laws 1995, chapter 226, 50.39 article 1, section 7, subdivision 2. 50.40 $30,000 from the general fund is for 50.41 program administration and disaster 50.42 relief for the Great Wind Storm of 50.43 1995. This appropriation is added to 50.44 the appropriation for fiscal year 1997 50.45 in Laws 1995, chapter 226, article 1, 50.46 section 7, subdivision 2. 50.47 (d) Safe Streets Initiative 50.48 -0- 3,000,000 50.49 $1,100,000 is appropriated for safe 50.50 streets grants for local law 51.1 enforcement. This appropriation is 51.2 added to the appropriation for fiscal 51.3 year 1997 in Laws 1995, chapter 226, 51.4 article 1, section 7. 51.5 $1,800,000 is appropriated for safe 51.6 street grants for community policing 51.7 activities. This appropriation is 51.8 added to the appropriation for fiscal 51.9 year 1997 in Laws 1995, chapter 226, 51.10 article 1, section 7. 51.11 $100,000 is appropriated for program 51.12 administration. This appropriation is 51.13 added to the appropriation for fiscal 51.14 year 1997 in Laws 1995, chapter 226, 51.15 article 1, section 7. 51.16 Sec. 3. JUDICIAL STANDARDS 51.17 BOARD 100,000 50,000 51.18 These appropriations are added to the 51.19 appropriations in Laws 1995, chapter 51.20 226, article 1, section 5, and are for 51.21 professional and technical services 51.22 involving the investigations of 51.23 complaints presented to the board. 51.24 Sec. 4. DEPARTMENT OF 51.25 CORRECTIONS -0- 11,000,000 51.26 (a) Structural Deficiency 51.27 -0- 7,000,000 51.28 This appropriation is added to the 51.29 appropriations in Laws 1995, chapter 51.30 226, article 1, section 11, 51.31 subdivisions 2 and 3, for correctional 51.32 institutions and community services. 51.33 (b) Youth Intervention Program 51.34 -0- 4,000,000 51.35 This appropriation is for the purposes 51.36 of Minnesota Statutes, section 241.81. 51.37 Sec. 5. [168A.40] [AUTOMOBILE THEFT PREVENTION PROGRAM.] 51.38 Subdivision 1. [ADVISORY COUNCIL CREATED; MEMBERSHIP.] An 51.39 automobile theft prevention program is created to be 51.40 administered by the commissioner of public safety. The governor 51.41 shall appoint an advisory council under section 15.059, which 51.42 shall consist of seven members representing law enforcement, 51.43 prosecuting attorneys, the department of public safety, 51.44 automobile insurers, and the public. The council shall annually 51.45 elect a chair from among its members. The council may request, 51.46 and the commissioner shall provide, professional, technical, 51.47 consulting, and clerical service staff of the department of 51.48 public safety. The council is governed by section 15.059 except 52.1 that the term of each council member is for no longer than two 52.2 years. The commissioner of the department of public safety 52.3 shall provide office space and administrative support to the 52.4 council and shall oversee its operations. 52.5 Subd. 2. [PROGRAM DUTIES.] The automobile theft prevention 52.6 council shall advise and assist the commissioner to: 52.7 (1) develop and sponsor the implementation of statewide 52.8 plans, programs, and strategies to combat vehicle theft, review 52.9 the administration of the vehicle theft laws, and provide a 52.10 forum for identification of critical problems for those persons 52.11 dealing with vehicle theft; 52.12 (2) coordinate the development, adoption, and 52.13 implementation of plans, programs, and strategies relating to 52.14 interagency and intergovernmental cooperation with respect to 52.15 vehicle theft enforcement; 52.16 (3) audit at the commissioner's discretion the plans and 52.17 programs that the program has funded in whole or in part in 52.18 order to evaluate the effectiveness of the plans and programs, 52.19 and withdraw funding should the commissioner determine that a 52.20 plan or program is ineffective or is no longer in need of 52.21 further financial support from the fund; 52.22 (4) develop a plan of operation including an assessment of 52.23 the scope of the problem of vehicle theft, including areas of 52.24 the state where the problem is greatest; an analysis of various 52.25 methods of combating the problem of vehicle theft; a plan for 52.26 providing financial support to combat vehicle theft; a plan for 52.27 combating car hijacking; and an estimate of the funds required 52.28 to implement the plan; and 52.29 (5) distribute money from the vehicle theft prevention 52.30 account for vehicle theft prevention activities, including: 52.31 (i) paying the administrative costs of the council; 52.32 (ii) providing financial support to law enforcement 52.33 agencies for vehicle theft enforcement efforts; 52.34 (iii) providing financial support to state or local law 52.35 enforcement agencies for programs designed to reduce the 52.36 incidence of vehicle theft; 53.1 (iv) providing financial support to local prosecutors for 53.2 programs designed to reduce the incidence of vehicle theft; 53.3 (v) providing financial support to judicial agencies for 53.4 programs designed to reduce the incidence of vehicle theft; 53.5 (vi) providing financial support for neighborhood or 53.6 community organizations, business organizations, or for programs 53.7 designed to reduce the incidence of vehicle theft; 53.8 (vii) providing financial support for vehicle theft 53.9 educational and training programs for state and local law 53.10 enforcement officials, any other governmental agency involved in 53.11 vehicle theft, and members of the judiciary; and 53.12 (viii) conducting educational programs designed to inform 53.13 vehicle owners of methods of preventing vehicle theft. 53.14 On or before January 15 of each year, the council shall 53.15 report to the governor and legislature on its activities and 53.16 expenditures in the preceding year. 53.17 Subd. 3. [SURCHARGE.] Each insurer in the writing of 53.18 policies of automobile insurance shall collect a surcharge, at 53.19 the rate of 50 cents per vehicle for every six months of 53.20 coverage, on each policy of automobile insurance providing 53.21 comprehensive insurance coverage issued or renewed in this 53.22 state. The surcharge may not be considered premium for any 53.23 purpose, including the computation of premium tax or agents' 53.24 commissions. The amount of the surcharge must be separately 53.25 stated on either a billing or policy declaration sent to an 53.26 insured. Insurers shall remit the revenue derived from this 53.27 surcharge to the council for purposes of the vehicle theft 53.28 prevention program. For purposes of this subdivision, "policy 53.29 of automobile insurance" has the meaning given it in section 53.30 65B.14, except that no vehicle with a gross vehicle weight in 53.31 excess of 10,000 pounds is included within this definition. 53.32 Subd. 4. [AUTOMOBILE THEFT PREVENTION ACCOUNT; 53.33 APPROPRIATION.] A vehicle theft prevention account is created in 53.34 the state treasury consisting of the proceeds of the surcharge 53.35 imposed under subdivision 3 and earnings attributable to 53.36 investment of money deposited in the account. Money in the 54.1 account is annually appropriated to the commissioner for the 54.2 purposes of this section. 54.3 Sec. 6. [COMMENCEMENT OF SURCHARGE.] 54.4 Each insurer governed by section 1, subdivision 3, shall 54.5 begin to collect and remit the surcharge required by that 54.6 subdivision on January 1, 1997. 54.7 Sec. 7. [241.81] [COMMUNITY INTERVENTION PROGRAM GRANTS.] 54.8 Subdivision 1. [COMMUNITY APPLICANT.] (a) In order to 54.9 qualify for a criminal justice intervention program grant from 54.10 the children's cabinet, a community applicant must agree to 54.11 develop or provide services for children and youth designed to 54.12 encourage, expand, or enhance community alternatives for youth 54.13 at risk. 54.14 (b) Community applicants are expected to have broad 54.15 community representation, which may include judges, police, 54.16 corrections, county attorneys, local providers, including school 54.17 districts, counties, public health entities, other 54.18 municipalities, existing culturally specific community 54.19 organizations, family service collaboratives, local health 54.20 organizations, private and nonprofit service providers, child 54.21 care providers, local foundations, community-based service 54.22 groups, businesses, local transit authorities, or other 54.23 transportation providers, community action agencies under 54.24 section 268.53, senior citizen volunteer organizations, parents, 54.25 students, youth service organizations, and sectarian 54.26 organizations that provide nonsectarian services. 54.27 Subd. 2. [DUTIES.] (a) Each community applicant shall: 54.28 (1) establish clear goals for addressing the needs of 54.29 children and youth and use outcome-based indicators to measure 54.30 progress toward achieving those goals; 54.31 (2) establish or have engaged in a comprehensive planning 54.32 process that involves all sectors of the community, identifies 54.33 local needs, and surveys existing local programs; and 54.34 (3) design or implement an integrated local community 54.35 program that coordinates services across agencies and is client 54.36 centered. 55.1 (b) The outcome-based indicators developed in paragraph 55.2 (a), clause (1), may include apprehensions of children, violent 55.3 crimes reported, and the rate of violent and injury-related 55.4 deaths. 55.5 Subd. 3. [PROGRAM ELEMENTS.] A community applicant shall 55.6 design or implement a program that gives priority to: 55.7 (1) juvenile restitution; 55.8 (2) prearrest diversion; 55.9 (3) probation innovation; 55.10 (4) teen courts; 55.11 (5) community service; or 55.12 (6) postincarceration alternatives to assist youth in 55.13 returning to their communities. 55.14 Subd. 4. [LOCAL PLANS.] Each community applicant shall 55.15 prepare a plan. The plan shall describe how the community 55.16 applicant will carry out the duties required under this 55.17 section. The plan shall include a list of the community 55.18 participants, a copy of the agreement required under subdivision 55.19 1, and methods for increasing local participation in the 55.20 program, involving parents and other community members in 55.21 implementing and operating the program. The plan shall also 55.22 include specific goals that the community intends to achieve and 55.23 methods for objectively measuring progress toward meeting the 55.24 goals. 55.25 Subd. 5. [PLAN APPROVAL BY CHILDREN'S CABINET.] (a) The 55.26 children's cabinet established under Minnesota Statutes, section 55.27 4.045, shall approve local plans for community justice 55.28 intervention programs. In approving local plans, the children's 55.29 cabinet shall give highest priority to a plan that provides: 55.30 (1) services for youth eight years old to 13 years old; 55.31 (2) participation by the maximum number of public and 55.32 private, local, county, and state funding sources; and 55.33 (3) clearly defined outcomes and valid methods of 55.34 assessment. 55.35 (b) The children's cabinet shall ensure that the programs 55.36 funded under this section do not conflict with any state or 56.1 federal policy or program and do not negatively impact the state 56.2 budget. 56.3 Subd. 6. [GRANTS.] The children's cabinet may make grants 56.4 to community applicants to fund criminal justice intervention 56.5 programs as described in subdivision 4. The children's cabinet 56.6 shall develop a grant application form, inform criminal justice, 56.7 social service, and other groups described in subdivision 2, 56.8 paragraph (b), about the availability of grants, and set a date 56.9 by which applications must be received by the cabinet. 56.10 Subd. 7. [FUNDS.] The amount of grant money available 56.11 shall be apportioned on a county population basis. Funds not 56.12 applied for shall be reallocated to the applicants, for 56.13 technical amendments, or for evaluations at the commissioner of 56.14 corrections' discretion. 56.15 Subd. 8. [RECEIPT OF FUNDS.] The commissioner may receive 56.16 and administer public and private funds for the purposes of this 56.17 act. 56.18 Sec. 8. [299A.62] [LAW ENFORCEMENT AND COMMUNITY GRANTS.] 56.19 Subdivision 1. [GRANT PROGRAMS.] (a) The commissioner of 56.20 public safety may develop grant programs to fund community-based 56.21 programs that are designed to enhance the community's sense of 56.22 personal security and to assist the community in its crime 56.23 control efforts to include but are not limited to the following 56.24 programs that: 56.25 (1) assist law enforcement agencies in purchasing 56.26 equipment, provide undercover buy money, and pay other 56.27 nonpersonnel costs; 56.28 (2) assist community and neighborhood organizations in 56.29 efforts to prevent or reduce criminal activities in their areas, 56.30 particularly activities involving youth and the use and sale of 56.31 drugs; 56.32 (3) assist enforcement agencies in efforts to target and 56.33 apprehend violent habitual criminals; 56.34 (4) provide neighborhood block clubs and innovative 56.35 community-based crime watch programs; 56.36 (5) provide community-based programs designed to intervene 57.1 with juvenile offenders who are identified as likely to engage 57.2 in repeated criminal activity in the future unless intervention 57.3 is undertaken; 57.4 (6) provide other community-based crime prevention programs 57.5 that are innovative and encourage substantial involvement by 57.6 members of the community served by the program; and 57.7 (7) enable law enforcement agencies to assign overtime 57.8 officers to high-crime areas for the purpose of vigorously 57.9 enforcing curfew, truancy, and traffic laws, initiating street 57.10 contracts, checking for outstanding warrants, generating 57.11 intelligence information on suspected drug dealers and gang 57.12 members, and arresting criminal law violators. 57.13 The commissioner shall prescribe criteria for eligibility and 57.14 the award of grants and reporting requirements for recipients. 57.15 Sec. 9. Minnesota Statutes 1994, section 609.52, 57.16 subdivision 2, is amended to read: 57.17 Subd. 2. [ACTS CONSTITUTING THEFT.] Whoever does any of 57.18 the following commits theft and may be sentenced as provided in 57.19 subdivision 3: 57.20 (1) intentionally and without claim of right takes, uses, 57.21 transfers, conceals or retains possession of movable property of 57.22 another without the other's consent and with intent to deprive 57.23 the owner permanently of possession of the property; or 57.24 (2) having a legal interest in movable property, 57.25 intentionally and without consent, takes the property out of the 57.26 possession of a pledgee or other person having a superior right 57.27 of possession, with intent thereby to deprive the pledgee or 57.28 other person permanently of the possession of the property; or 57.29 (3) obtains for the actor or another the possession, 57.30 custody, or title to property of or performance of services by a 57.31 third person by intentionally deceiving the third person with a 57.32 false representation which is known to be false, made with 57.33 intent to defraud, and which does defraud the person to whom it 57.34 is made. "False representation" includes without limitation: 57.35 (a) the issuance of a check, draft, or order for the 57.36 payment of money, except a forged check as defined in section 58.1 609.631, or the delivery of property knowing that the actor is 58.2 not entitled to draw upon the drawee therefor or to order the 58.3 payment or delivery thereof; or 58.4 (b) a promise made with intent not to perform. Failure to 58.5 perform is not evidence of intent not to perform unless 58.6 corroborated by other substantial evidence; or 58.7 (c) the preparation or filing of a claim for reimbursement, 58.8 a rate application, or a cost report used to establish a rate or 58.9 claim for payment for medical care provided to a recipient of 58.10 medical assistance under chapter 256B, which intentionally and 58.11 falsely states the costs of or actual services provided by a 58.12 vendor of medical care; or 58.13 (d) the preparation or filing of a claim for reimbursement 58.14 for providing treatment or supplies required to be furnished to 58.15 an employee under section 176.135 which intentionally and 58.16 falsely states the costs of or actual treatment or supplies 58.17 provided; or 58.18 (e) the preparation or filing of a claim for reimbursement 58.19 for providing treatment or supplies required to be furnished to 58.20 an employee under section 176.135 for treatment or supplies that 58.21 the provider knew were medically unnecessary, inappropriate, or 58.22 excessive; or 58.23 (4) by swindling, whether by artifice, trick, device, or 58.24 any other means, obtains property or services from another 58.25 person; or 58.26 (5) intentionally commits any of the acts listed in this 58.27 subdivision but with intent to exercise temporary control only 58.28 and: 58.29 (a) the control exercised manifests an indifference to the 58.30 rights of the owner or the restoration of the property to the 58.31 owner; or 58.32 (b) the actor pledges or otherwise attempts to subject the 58.33 property to an adverse claim; or 58.34 (c) the actor intends to restore the property only on 58.35 condition that the owner pay a reward or buy back or make other 58.36 compensation; or 59.1 (6) finds lost property and, knowing or having reasonable 59.2 means of ascertaining the true owner, appropriates it to the 59.3 finder's own use or to that of another not entitled thereto 59.4 without first having made reasonable effort to find the owner 59.5 and offer and surrender the property to the owner; or 59.6 (7) intentionally obtains property or services, offered 59.7 upon the deposit of a sum of money or tokens in a coin or token 59.8 operated machine or other receptacle, without making the 59.9 required deposit or otherwise obtaining the consent of the 59.10 owner; or 59.11 (8) intentionally and without claim of right converts any 59.12 article representing a trade secret, knowing it to be such, to 59.13 the actor's own use or that of another person or makes a copy of 59.14 an article representing a trade secret, knowing it to be such, 59.15 and intentionally and without claim of right converts the same 59.16 to the actor's own use or that of another person. It shall be a 59.17 complete defense to any prosecution under this clause for the 59.18 defendant to show that information comprising the trade secret 59.19 was rightfully known or available to the defendant from a source 59.20 other than the owner of the trade secret; or 59.21 (9) leases or rents personal property under a written 59.22 instrument and who with intent to place the property beyond the 59.23 control of the lessor conceals or aids or abets the concealment 59.24 of the property or any part thereof, or any lessee of the 59.25 property who sells, conveys, or encumbers the property or any 59.26 part thereof without the written consent of the lessor, without 59.27 informing the person to whom the lessee sells, conveys, or 59.28 encumbers that the same is subject to such lease and with intent 59.29 to deprive the lessor of possession thereof. Evidence that a 59.30 lessee used a false or fictitious name or address in obtaining 59.31 the property or fails or refuses to return the property to 59.32 lessor within five days after written demand for the return has 59.33 been served personally in the manner provided for service of 59.34 process of a civil action or sent by certified mail to the last 59.35 known address of the lessee, whichever shall occur later, shall 59.36 be evidence of intent to violate this clause. Service by 60.1 certified mail shall be deemed to be complete upon deposit in 60.2 the United States mail of such demand, postpaid and addressed to 60.3 the person at the address for the person set forth in the lease 60.4 or rental agreement, or, in the absence of the address, to the 60.5 person's last known place of residence; or 60.6 (10) alters, removes, or obliterates numbers or symbols 60.7 placed on movable property for purpose of identification by the 60.8 owner or person who has legal custody or right to possession 60.9 thereof with the intent to prevent identification, if the person 60.10 who alters, removes, or obliterates the numbers or symbols is 60.11 not the owner and does not have the permission of the owner to 60.12 make the alteration, removal, or obliteration; or 60.13 (11) with the intent to prevent the identification of 60.14 property involved, so as to deprive the rightful owner of 60.15 possession thereof, alters or removes any permanent serial 60.16 number, permanent distinguishing number or manufacturer's 60.17 identification number on personal property or possesses, sells 60.18 or buys any personal propertywith knowledgeknowing or having 60.19 reason to know that the permanent serial number, permanent 60.20 distinguishing number or manufacturer's identification number 60.21 has been removed or altered may be sentenced in accordance with 60.22 the provisions of section 609.52, subdivision 3; or 60.23 (12) intentionally deprives another of a lawful charge for 60.24 cable television service by: 60.25 (i) making or using or attempting to make or use an 60.26 unauthorized external connection outside the individual dwelling 60.27 unit whether physical, electrical, acoustical, inductive, or 60.28 other connection, or by 60.29 (ii) attaching any unauthorized device to any cable, wire, 60.30 microwave, or other component of a licensed cable communications 60.31 system as defined in chapter 238. Nothing herein shall be 60.32 construed to prohibit the electronic video rerecording of 60.33 program material transmitted on the cable communications system 60.34 by a subscriber for fair use as defined by Public Law Number 60.35 94-553, section 107; or 60.36 (13) except as provided in paragraphs (12) and (14), 61.1 obtains the services of another with the intention of receiving 61.2 those services without making the agreed or reasonably expected 61.3 payment of money or other consideration; or 61.4 (14) intentionally deprives another of a lawful charge for 61.5 telecommunications service by: 61.6 (i) making, using, or attempting to make or use an 61.7 unauthorized connection whether physical, electrical, by wire, 61.8 microwave, radio, or other means to a component of a local 61.9 telecommunication system as provided in chapter 237; or 61.10 (ii) attaching an unauthorized device to a cable, wire, 61.11 microwave, radio, or other component of a local 61.12 telecommunication system as provided in chapter 237. 61.13 The existence of an unauthorized connection is prima facie 61.14 evidence that the occupier of the premises: 61.15 (i) made or was aware of the connection; and 61.16 (ii) was aware that the connection was unauthorized; or 61.17 (15) with intent to defraud, diverts corporate property 61.18 other than in accordance with general business purposes or for 61.19 purposes other than those specified in the corporation's 61.20 articles of incorporation; or 61.21 (16) with intent to defraud, authorizes or causes a 61.22 corporation to make a distribution in violation of section 61.23 302A.551, or any other state law in conformity with it; or 61.24 (17) intentionally takes or drives a motor vehicle without 61.25 the consent of the owner or an authorized agent of the owner. 61.26 Sec. 10. [EFFECTIVE DATE; EXPIRATION.] 61.27 Sections 5 and 6 are effective January 1, 1997, and expire 61.28 on January 1, 2002. 61.29 ARTICLE 8 61.30 STATE GOVERNMENT 61.31 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 61.32 The sums in the columns headed "APPROPRIATIONS" are 61.33 appropriated from the general fund, or another named fund, to 61.34 the agencies and for the purposes specified to be available for 61.35 the fiscal years indicated for each purpose. 61.36 SUMMARY BY FUND 62.1 1996 1997 62.2 General Fund $ 4,397,000 $ 23,034,000 62.3 Special Revenue Fund -0- 35,000 62.4 APPROPRIATIONS 62.5 Available for the Year 62.6 Ending June 30 62.7 1996 1997 62.8 Sec. 2. DEPARTMENT OF 62.9 HUMAN RIGHTS $ -0- $ 110,000 62.10 Complaint Processing 62.11 $35,000 in fiscal year 1997 is added to 62.12 the appropriation in Laws 1995, chapter 62.13 254, article 1, section 18, subdivision 62.14 3, for litigation expenses. This 62.15 appropriation is from the special 62.16 revenue fund. 62.17 $75,000 in fiscal year 1997 is added to 62.18 the appropriation in Laws 1995, chapter 62.19 254, article 1, section 18, subdivision 62.20 3, for an alternative dispute 62.21 resolution program. 62.22 Sec. 3. DEPARTMENT OF 62.23 ADMINISTRATION -0- 7,811,000 62.24 (a) Information Policy Office 62.25 -0- 7,200,000 62.26 $7,200,000 in fiscal year 1997 is 62.27 appropriated for impact analysis, 62.28 staff, and software for state 62.29 information system modifications 62.30 relating to year 2000 date change 62.31 requirements and is added to the 62.32 appropriation in Laws 1995, chapter 62.33 254, article 1, section 11, subdivision 62.34 6. 62.35 (b) Operations Management 62.36 -0- 611,000 62.37 $611,000 in fiscal year 1997 is for 62.38 critical statewide operating systems 62.39 and is added to the appropriation in 62.40 Laws 1995, chapter 254, article 1, 62.41 section 11, subdivision 2. 62.42 (c) Transfer to Micrographics 62.43 Rental Fund 62.44 $134,000 of contributed capital is 62.45 transferred from the electronic 62.46 equipment rental fund to the 62.47 micrographics/records center fund in 62.48 fiscal year 1996. 62.49 Sec. 4. DEPARTMENT OF 62.50 EMPLOYEE RELATIONS -0- 250,000 62.51 Human Resource Management 62.52 $250,000 in fiscal year 1997 is for 63.1 critical statewide operating systems 63.2 and is added to the appropriation in 63.3 Laws 1995, chapter 254, article 1, 63.4 section 15, subdivision 2. 63.5 Sec. 5. DEPARTMENT OF 63.6 FINANCE 4,397,000 14,898,000 63.7 (a) Information Services 63.8 $4,397,000 in fiscal year 1996 and 63.9 $7,662,000 in fiscal year 1997 is for 63.10 critical statewide operating systems 63.11 and is added to the appropriation in 63.12 Laws 1995, chapter 254, article 1, 63.13 section 14, subdivision 6. 63.14 (b) Debt Service 63.15 $7,236,000 in fiscal year 1997 is for 63.16 transfer to the debt service fund and 63.17 is added to the appropriation in Laws 63.18 1995, chapter 254, article 1, section 63.19 14. 63.20 Sec. 6. Minnesota Statutes 1994, section 8.15, is amended 63.21 by adding a subdivision to read: 63.22 Subd. 5. [REIMBURSEMENTS.] State agencies receiving legal 63.23 services for nongeneral funded activities shall reimburse the 63.24 full cost of those services to the general fund. 63.25 Agencies shall reimburse the general fund based on periodic 63.26 billings prepared by the attorney general. Payment will be made 63.27 to the attorney general for deposit to the general fund as a 63.28 nondedicated receipt. 63.29 Reimbursement policy and procedures related to legal 63.30 services will be developed by the attorney general in 63.31 consultation with the commissioner of finance. 63.32 There is appropriated for fiscal year 1997 from all direct 63.33 appropriated nongeneral funds an amount sufficient to reimburse 63.34 the general fund for legal costs attributable to general fund 63.35 expenditures. 63.36 All agency activities supported by fees shall include the 63.37 cost of legal services provided in the fees collected. 63.38 Sec. 7. [16A.104] [LONG-TERM EXPENDITURE PLAN.] 63.39 Subdivision 1. [PURPOSE, DEFINITION.] The long-term 63.40 expenditure plan is a statement of expenditure goals to provide 63.41 long-range policy and program direction to state programs and 63.42 recipients of state funds. The plan shall be based on the most 64.1 recent forecasts under section 16A.103 and the governor's and 64.2 legislature's determination of state and local needs. The plan 64.3 shall be for the period comprising two biennia, consistent with 64.4 provisions of section 16A.102. 64.5 Subd. 2. [GOVERNOR'S RECOMMENDATION.] By the fourth Monday 64.6 in January in each odd-numbered year, the governor shall submit 64.7 to the legislature a recommended general fund expenditure plan 64.8 for the next two biennia. 64.9 (a) The plan must specify expenditure targets for all major 64.10 functional areas. Expenditure targets must be identified by 64.11 year for, but not limited to, kindergarten through grade 12 64.12 education finance, post-secondary education, property tax aid 64.13 and credit and local government aid programs, health care, 64.14 family support, criminal justice, and all other general fund 64.15 spending, including debt service. 64.16 (b) The expenditure plan must not exceed the revenue 64.17 targets under section 16A.102 for the same biennium. 64.18 (c) If a proposed expenditure plan is not structurally 64.19 balanced, because prior period balances are proposed to be used, 64.20 the plan must identify the one-time nature of any proposed use 64.21 of prior period balances and must exclude such balances from the 64.22 ongoing expenditure base. 64.23 (d) If proposed expenditure targets by functional area are 64.24 less than forecast current law expenditures prepared by the 64.25 department of finance under sections 16A.103 and 16A.11, the 64.26 expenditure plan must identify (by fiscal year) proposed 64.27 specific program and policy changes which would be implemented 64.28 to reduce expenditures to the target levels. 64.29 Subd. 3. [LEGISLATIVE EXPENDITURE TARGET RESOLUTION.] By 64.30 April 1 of each odd-numbered year, the legislature shall, by 64.31 concurrent resolution, adopt general fund expenditure targets 64.32 for the next two biennia. The resolution must conform with the 64.33 requirements of subdivision 2, paragraphs (a) to (d). The 64.34 resolution must be based on the revenue targets recommended by 64.35 the legislature under section 16A.102, subdivision 2. 64.36 Subd. 4. [EVEN-NUMBERED YEAR AND SPECIAL SESSIONS.] The 65.1 governor or the legislature may elect to modify their 65.2 expenditure targets in a special session or an even-numbered 65.3 year regular session. The requirements of subdivisions 1 to 3 65.4 apply, except that within ten days of the start of the session 65.5 the dates provided in those subdivisions must be modified to be 65.6 consistent with the planned date of adjournment. 65.7 Sec. 8. Minnesota Statutes 1994, section 16A.11, 65.8 subdivision 1, is amended to read: 65.9 Subdivision 1. [WHEN.] The governor shall submit a 65.10three-partfour-part budget to the legislature. Parts one and 65.11 two, the budget message and detailed operating budget, must be 65.12 submitted by the fourth Tuesday in January in each odd-numbered 65.13 year. Part three, the detailed recommendations as to capital 65.14 expenditure, must be submitted as follows: agency capital 65.15 budget requests by June 15 of each odd-numbered year; 65.16 preliminary governor's recommendations by September 1 of each 65.17 odd-numbered year; and final recommendations by February 1 of 65.18 each even-numbered year. Part four, the detailed 65.19 recommendations as to information technology expenditure, must 65.20 be submitted at the same time, or no later than 14 days after, 65.21 the governor submits the budget message to the legislature. 65.22 Sec. 9. Minnesota Statutes 1994, section 16A.11, is 65.23 amended by adding a subdivision to read: 65.24 Subd. 3b. [PART FOUR; DETAILED INFORMATION TECHNOLOGY 65.25 BUDGET.] The detailed information technology budget must include 65.26 recommendations for information technology projects to be funded 65.27 during the next biennium and planning estimates for an 65.28 additional two biennia. It must be submitted with projects rank 65.29 ordered in order of importance among all projects as determined 65.30 by the governor. 65.31 Sec. 10. [16A.123] [STAFF RETIREMENT SAVINGS AND 65.32 INVESTMENTS IN TECHNOLOGY/STAFF DEVELOPMENT.] 65.33 Subdivision 1. [APPLICATION.] (a) This section applies to 65.34 employees of all state departments and agencies that receive a 65.35 direct appropriation from the state's general fund excluding the 65.36 following: 66.1 (1) employees in the department of corrections having 66.2 regular contact with inmates; 66.3 (2) sworn officers of the state patrol; 66.4 (3) bureau of criminal apprehension agents; 66.5 (4) department of natural resources conservation officers; 66.6 (5) employees of the University of Minnesota and the 66.7 Minnesota state colleges and universities; 66.8 (6) employees in the offices of the state's constitutional 66.9 officers, the legislature, and the judiciary; 66.10 (7) drivers for the metropolitan transit commission; and 66.11 (8) employees of the metropolitan council and the 66.12 metropolitan waste control commission. 66.13 (b) This act does not apply to department and agency heads. 66.14 Subd. 2. [ACCOUNT ESTABLISHED.] The commissioner of 66.15 finance shall establish in the general fund a "technology 66.16 investment/staff development account" for transfers from agency 66.17 budgets related to service retirements. Amounts remaining in 66.18 the account at the end of a fiscal year shall be carried into 66.19 the next fiscal year. Prior to June 30 of each fiscal year, the 66.20 commissioner of finance shall transfer to the account, from each 66.21 state agency's general fund appropriation for that year, an 66.22 amount equal to general fund compensation savings related to 66.23 service retirements. 66.24 Subd. 3. [PROCEDURES.] The commissioner of employee 66.25 relations, and the commissioner of finance, shall establish 66.26 specific procedures to determine the amount of appropriated 66.27 general fund money transferred to the account established in 66.28 subdivision 2 because of service retirements, and the method of 66.29 reflecting the resources allocated to the account in years 66.30 beyond the 1996-1997 fiscal biennium. 66.31 Subd. 4. [CRITERIA.] (a) An agency may request and be 66.32 appropriated nonrecurring funds from the technology 66.33 investment/staff development account for special technology 66.34 investment or staff development proposals. General criteria 66.35 that may be used in making this determination include: 66.36 (1) funds from this account must not be used as a 67.1 substitute for technology or staff development investments 67.2 regularly made by the requesting agency; 67.3 (2) funds are to be used for projects essential to agency 67.4 restructuring and the delivery of services in a more effective 67.5 and efficient manner; or 67.6 (3) funds are to be used for training to enable 67.7 redeployment of staff at risk of layoff to different functions 67.8 in state government. 67.9 (b) The commissioner of finance, in consultation with the 67.10 commissioners of employee relations and administration, shall 67.11 prepare more specific criteria for use in evaluating agency 67.12 requests. 67.13 (c) The commissioner of finance, in consultation with the 67.14 commissioners of employee relations and administration, shall 67.15 periodically evaluate the requests from agencies and determine 67.16 whether the requests are to be funded. 67.17 Subd. 5. [REPORT.] The commissioner of finance shall 67.18 report annually to the legislature on the amounts in the 67.19 technology investment/staff development account and the amounts 67.20 allocated to agencies from the technology investment/staff 67.21 development account. In years during which a detailed 67.22 information technology budget is prepared, this information must 67.23 be integrated into that budget presentation. 67.24 Subd. 6. [APPROPRIATION.] Amounts available in the 67.25 technology investment/staff development account are annually 67.26 appropriated to the commissioner of finance for the purpose of 67.27 grants to agencies as specified in subdivision 4. Grants to 67.28 agencies in any fiscal year shall not cancel, but shall be 67.29 available until expended or until a specific date identified in 67.30 an approved project award. 67.31 Subd. 7. [ESTIMATES.] Implementation of this section is 67.32 estimated to yield cumulative transfers to the technology 67.33 investment/staff development account equaling $2,000,000 for the 67.34 biennium ending June 30, 1997, $33,000,000 for the biennium 67.35 ending June 30, 1999, and $100,000,000 for the biennium ending 67.36 June 30, 2001. 68.1 Sec. 11. [OTHER AGENCIES ENCOURAGED TO DEVELOP SIMILAR 68.2 PROCESS.] 68.3 The University of Minnesota, the Minnesota state colleges 68.4 and universities, the state's constitutional officers, the 68.5 legislature, the judiciary, the metropolitan transit commission, 68.6 metropolitan council, and the metropolitan waste control 68.7 commission are encouraged to adopt a process similar to that 68.8 established in section 10. 68.9 Sec. 12. [TIME OF APPLICATION.] 68.10 Section 10 applies to retirements taking effect on and 68.11 after the first day of the first state pay period beginning 68.12 after the day of final enactment of section 10. 68.13 Sec. 13. Minnesota Statutes 1995 Supplement, section 68.14 16A.152, subdivision 2, is amended to read: 68.15 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] If on the basis 68.16 of a forecast of general fund revenues and expenditures the 68.17 commissioner of finance determines that there will be a positive 68.18 unrestricted budgetary general fund balance at the close of the 68.19 biennium, the commissioner of finance must allocate money to the 68.20 budget reserve until the total amount in the account is 68.21 $220,000,000.Additional biennial unrestricted budgetary68.22general fund balances available after November 1 of every68.23odd-numbered calendar year are appropriated in January of the68.24following year to reduce the property tax levy recognition68.25percent under section 121.904, subdivision 4a, to zero before68.26additional money beyond $220,000,000 is allocated to the budget68.27reserve account.68.28 The amounts necessary to meet the requirements of this 68.29 section are appropriated from the general fund. 68.30 Sec. 14. Minnesota Statutes 1994, section 16A.152, is 68.31 amended by adding a subdivision to read: 68.32 Subd. 8. [CASH FLOW ACCOUNT.] (a) A school cash flow 68.33 account is created in the general fund in the state treasury. 68.34 Interest and revenues as specified in law shall be deposited 68.35 into the account. 68.36 (b) $500,000,000 is for initial capitalization. Funds 69.1 shall be transferred from the general fund to the cash flow 69.2 account twice each month beginning on July 15, 1996. The amount 69.3 transferred to the school cash flow account each period will be 69.4 determined by the department of children, families, and learning 69.5 and will reflect the difference between the payment which would 69.6 be distributed by the education aids metering system for the 69.7 semimonthly period in fiscal year 1997 and the amount of the 69.8 payment which would have occurred in fiscal year 1997 for the 69.9 payment period if the revenue recognition percent for fiscal 69.10 year 1996 had been maintained at 48 percent. The amount 69.11 transferred during fiscal year 1997 shall not exceed 69.12 $500,000,000. 69.13 (c) The department of children, families, and learning 69.14 shall estimate the potential school district borrowing needs 69.15 attributable to the revenue recognition policy, consistent with 69.16 the assumptions about district expenditure patterns in section 69.17 124.195. When the school cash flow account has a sufficient 69.18 balance, aids payments shall be advanced to the district from 69.19 the school cash flow account for the time needed to avoid 69.20 borrowing by the school district. 69.21 (d) The department of children, families, and learning 69.22 shall report to the county auditors the amount of funds advanced 69.23 to districts under paragraph (c). County treasurers shall 69.24 reduce tax settlements made to school districts and reimburse 69.25 the state treasury for the amounts listed in the report by June 69.26 30. 69.27 (e) School districts may apply to the department of 69.28 children, families, and learning for supplemental 69.29 interest-bearing cash flow loans. The interest rate on these 69.30 loans shall be determined by the commissioner of finance. 69.31 Approval of the loan requests would be contingent on the 69.32 availability of cash in the school cash flow account, as 69.33 determined by the department of finance. 69.34 (f) Advances approved under paragraph (c), loans approved 69.35 under paragraph (e), and the interest owed to the state on those 69.36 loans shall be repaid to the school cash flow account no later 70.1 than the last day of the biennium. If the advances or the 70.2 supplemental loans have not been repaid, the state shall recover 70.3 the funds through the procedures specified in section 124.755, 70.4 subdivisions 5 and 6. 70.5 (g) Additional criteria and repayment terms shall be 70.6 determined by the department of children, families, and learning 70.7 in consultation with the department of finance. 70.8 (h) On July 15 of fiscal year 1998, and each July 15 70.9 thereafter, all investment earnings attributable to the prior 70.10 fiscal year and all interest payments paid to the account 70.11 related to loans under paragraph (e) shall be available for 70.12 grants to school districts as determined by the department of 70.13 children, families, and learning, in consultation with the 70.14 workforce development council. 70.15 (i) The amounts necessary to meet the provisions of 70.16 paragraphs (c), (e), and (h) are appropriated from the school 70.17 cash flow account to the commissioner of children, families, and 70.18 learning. 70.19 Sec. 15. Minnesota Statutes 1995 Supplement, section 70.20 16D.02, subdivision 8, is amended to read: 70.21 Subd. 8. [ENTERPRISE.] "Enterprise" means the Minnesota 70.22 collection enterprise, aseparateunit of government established 70.23 to carry out the provisions of this chapter,pursuant tounder 70.24 thecommissioner'sauthorityto contract withof the 70.25 commissioner of revenuefor collection services under section70.2616D.04, subdivision 1. 70.27 Sec. 16. Minnesota Statutes 1994, section 16D.04, as 70.28 amended by Laws 1995, chapter 254, article 5, sections 5 and 6, 70.29 is amended to read: 70.30 16D.04 [COLLECTION ACTIVITIES.] 70.31 Subdivision 1. [RESPONSIBILITY.] The commissioner of 70.32 revenue shall supervise and operate the enterprise in all debt 70.33 collection activity. 70.34 Subd. 1a. [DUTIES.] Thecommissionerenterprise shall 70.35 provide services to the state and its agencies to collect debts 70.36 owed the state. Thecommissionerenterprise is not a collection 71.1 agency as defined by section 332.31, subdivision 3, and is not 71.2 licensed, bonded, or regulated by the commissioner of commerce 71.3 under sections 332.31 to 332.35 or 332.38 to 332.45. 71.4 Thecommissionerenterprise is subject to section 332.37, except 71.5 clause (9) or (10).The commissioner may contract with the71.6commissioner of revenue for collection services, and may71.7delegate to the commissioner of revenue any of the71.8commissioner's duties and powers under this chapter.Debts 71.9 referred to the commissioner of revenue for collection 71.10 underthis section orsection 256.9792 may in turn be referred 71.11 by the commissioner of revenue to the enterprise. An audited 71.12 financial statement may not be required as a condition of debt 71.13 placement with a private agency if the private agency: (1) has 71.14 errors and omissions coverage under a professional liability 71.15 policy in an amount of at least $1,000,000; or (2) has a 71.16 fidelity bond to cover actions of its employees, in an amount of 71.17 at least $100,000. In cases of debts referred under section 71.18 256.9792, the provisions of this chapter and section 256.9792 71.19 apply to the extent they are not in conflict. If they are in 71.20 conflict, the provisions of section 256.9792 control. For 71.21 purposes of this chapter, the referring agency for such debts 71.22 remains the department of human services. 71.23 Subd. 2. [AGENCY PARTICIPATION.] A state agency may, at 71.24 its option, refer debts to thecommissionerenterprise for 71.25 collection. The ultimate responsibility for the debt, including 71.26 the reporting of the debt to the commissioner and the decision 71.27 with regard to the continuing collection and uncollectibility of 71.28 the debt, remains with the referring state agency. 71.29 Subd. 3. [SERVICES.] Thecommissionerenterprise shall 71.30 provide collection services for a state agency, and may provide 71.31 for collection services for a court, in accordance with the 71.32 terms and conditions of a signed debt qualification plan. 71.33 Subd. 4. [AUTHORITY TO CONTRACT.] The commissioner and the 71.34 enterprise may contract with credit bureaus, private collection 71.35 agencies, and other entities as necessary for the collection of 71.36 debts. A private collection agency acting under a contract with 72.1 the commissioner or the enterprise is subject to sections 332.31 72.2 to 332.45, except that the private collection agency may 72.3 indicate that it is acting under a contract with the 72.4 commissioner or the enterprise. The commissioner and the 72.5 enterprise may not delegate the powers provided under section 72.6 16D.08 to any nongovernmental entity. 72.7 Sec. 17. Minnesota Statutes 1994, section 16D.05, is 72.8 amended to read: 72.9 16D.05 [PRIORITY OF SATISFACTION OF DEBTS.] 72.10 Subdivision 1. [MULTIPLE DEBTS.] If two or more debts owed 72.11 by the same debtor are submitted to thecommissionerenterprise, 72.12 amounts collected on those debts must be applied as prescribed 72.13 in this section. 72.14 Subd. 2. [ENFORCEMENT OF LIENS.] If the money received is 72.15 collected on a judgment lien under chapter 550, a lien provided 72.16 by chapter 514, a consensual lien or security interest, 72.17 protection of an interest in property through chapter 570, by 72.18 collection process provided by chapters 551 and 571, or by any 72.19 other process by which thecommissionerenterprise is enforcing 72.20 rights in a particular debt, the money must be applied to that 72.21 particular debt. 72.22 Subd. 3. [OTHER METHODS OF COLLECTION.] If the money is 72.23 collected in any manner not specified in subdivision 2, the 72.24 money collected must apply first to the satisfaction of any 72.25 debts for child support. Any debts other than child support 72.26 must be satisfied in the order in time in which thecommissioner72.27 enterprise received the debts from the referring agency. 72.28 Sec. 18. Minnesota Statutes 1995 Supplement, section 72.29 16D.06, is amended to read: 72.30 16D.06 [DEBTOR INFORMATION.] 72.31 Subdivision 1. [ACCESS TO GOVERNMENT DATA NOT PUBLIC.] 72.32 Notwithstanding chapter 13 or any other state law classifying or 72.33 restricting access to government data, upon request from the 72.34commissionerenterprise or the attorney general, state agencies, 72.35 political subdivisions, and statewide systems shall disseminate 72.36 not public data to thecommissionerenterprise or the attorney 73.1 general for the sole purpose of collecting debt. Not public 73.2 data disseminated under this subdivision is limited to financial 73.3 data of the debtor or data related to the location of the debtor 73.4 or the assets of the debtor. 73.5 Subd. 2. [DISCLOSURE OF DATA.] Data received, collected, 73.6 created, or maintained by thecommissionerenterprise or the 73.7 attorney general to collect debts are classified as private data 73.8 on individuals under section 13.02, subdivision 12, or nonpublic 73.9 data under section 13.02, subdivision 9. Thecommissioner73.10 enterprise or the attorney general may disclose not public data: 73.11 (1) under section 13.05; 73.12 (2) under court order; 73.13 (3) under a statute specifically authorizing access to the 73.14 not public data; 73.15 (4) to provide notices required or permitted by statute; 73.16 (5) to an agent of thecommissionerenterprise or the 73.17 attorney general, including a law enforcement person, attorney, 73.18 or investigator acting for thecommissionerenterprise or the 73.19 attorney general in the investigation or prosecution of a 73.20 criminal or civil proceeding relating to collection of a debt; 73.21 (6) to report names of debtors, amount of debt, date of 73.22 debt, and the agency to whom debt is owed to credit bureaus and 73.23 private collection agencies under contract with thecommissioner73.24 enterprise; 73.25 (7) when necessary to locate the debtor, locate the assets 73.26 of the debtor, or to enforce or implement the collection of a 73.27 debt; and 73.28 (8) to the commissioner of revenue for tax administration 73.29 purposes. 73.30 Thecommissionerenterprise and the attorney general may 73.31 not disclose data that is not public to a private collection 73.32 agency or other entity with whom thecommissionerenterprise has 73.33 contracted under section 16D.04, subdivision 4, unless 73.34 disclosure is otherwise authorized by law. 73.35 Sec. 19. Minnesota Statutes 1994, section 16D.07, is 73.36 amended to read: 74.1 16D.07 [NOTICE TO DEBTOR.] 74.2 The referring agency shall send notice to the debtor by 74.3 United States mail or personal delivery at the debtor's last 74.4 known address at least 20 days before the debt is referred to 74.5 thecommissionerenterprise. The notice must state the nature 74.6 and amount of the debt, identify to whom the debt is owed, and 74.7 inform the debtor of the remedies available under this chapter. 74.8 Sec. 20. Minnesota Statutes 1994, section 16D.08, as 74.9 amended by Laws 1995, chapter 254, article 5, section 8, is 74.10 amended to read: 74.11 16D.08 [COLLECTION DUTIES AND POWERS.] 74.12 Subdivision 1. [DUTIES.] Thecommissionerenterprise shall 74.13 take all reasonable and cost-effective actions to collect debts 74.14 referred to thecommissionerenterprise. 74.15 Subd. 2. [POWERS.] In addition to the collection remedies 74.16 available to private collection agencies in this state, 74.17 thecommissionerenterprise, with legal assistance from the 74.18 attorney general, may utilize any statutory authority granted to 74.19 a referring agency for purposes of collecting debt owed to that 74.20 referring agency. Thecommissionerenterprise may also use the 74.21 tax collection remedies of the commissioner of revenue in 74.22 sections 270.06, clauses (7) and (17), excluding the power to 74.23 subpoena witnesses; 270.66; 270.69, excluding subdivisions 7 and 74.24 13; 270.70, excluding subdivision 14; 270.7001 to 270.72; and 74.25 290.92, subdivision 23, except that a continuous wage levy under 74.26 section 290.92, subdivision 23, is only effective for 70 days, 74.27 unless no competing wage garnishments, executions, or levies are 74.28 served within the 70-day period, in which case a wage levy is 74.29 continuous until a competing garnishment, execution, or levy is 74.30 served in the second or a succeeding 70-day period, in which 74.31 case a continuous wage levy is effective for the remainder of 74.32 that period. A debtor who qualifies for cancellation of the 74.33 collection penalty under section 16D.11, subdivision 3, clause 74.34 (1), can apply to the commissioner of revenue for reduction or 74.35 release of a continuous wage levy, if the debtor establishes 74.36 that the debtor needs all or a portion of the wages being levied 75.1 upon to pay for essential living expenses, such as food, 75.2 clothing, shelter, medical care, or expenses necessary for 75.3 maintaining employment. The commissioner's determination not to 75.4 reduce or release a continuous wage levy is appealable to 75.5 district court. The word "tax" or "taxes" when used in the tax 75.6 collection statutes listed in this subdivision also means debts 75.7 referred under this chapter. For debts other than state taxes 75.8 or child support, before any of the tax collection remedies 75.9 listed in this subdivision can be used, except for the remedies 75.10 in section 270.06, clauses (7) and (17), if the referring agency 75.11 has not already obtained a judgment or filed a lien, 75.12 thecommissionerenterprise must first obtain a judgment against 75.13 the debtor. 75.14 Sec. 21. Minnesota Statutes 1994, section 16D.10, is 75.15 amended to read: 75.16 16D.10 [CASE REVIEWER.] 75.17 Thecommissionerenterprise shall make a case reviewer 75.18 available to debtors. The reviewer must be available to answer 75.19 a debtor's questions concerning the collection process and to 75.20 review the collection activity taken. If the reviewer 75.21 reasonably believes that the particular action being taken is 75.22 unreasonable or unfair, the reviewer may make recommendations to 75.23 thecommissionerenterprise in regard to the collection action. 75.24 Sec. 22. Minnesota Statutes 1995 Supplement, section 75.25 16D.11, is amended to read: 75.26 16D.11 [COLLECTION PENALTY.] 75.27 Subdivision 1. [IMPOSITION.] As determined by the 75.28 commissioner, a penalty shall be added to the debts referred to 75.29 thecommissionerenterprise or private collection agency for 75.30 collection. The penalty is collectible by thecommissioner75.31 enterprise or private agency from the debtor at the same time 75.32 and in the same manner as the referred debt. The referring 75.33 agency shall advise the debtor of the penalty under this section 75.34 and the debtor's right to cancellation of the penalty under 75.35 subdivision 3 at the time the agency sends notice to the debtor 75.36 under section 16D.07. If thecommissionerenterprise or private 76.1 agency collects an amount less than the total due, the payment 76.2 is applied proportionally to the penalty and the underlying 76.3 debt. Penalties collected by thecommissionerenterprise under 76.4 this subdivision or retained under subdivision 6 shall be 76.5 deposited in the general fund as nondedicated receipts. 76.6 Penalties collected by private agencies are appropriated to the 76.7 referring agency to pay the collection fees charged by the 76.8 private agency. Penalty collections in excess of collection 76.9 agency fees must be deposited in the general fund as 76.10 nondedicated receipts. 76.11 Subd. 2. [COMPUTATION.] Beginning July 1, 1995, at the 76.12 time a debt is referred, the amount of the penalty is equal to 76.13 15 percent of the debt, or 25 percent of the debt remaining 76.14 unpaid if thecommissionerenterprise or private collection 76.15 agency has to take enforced collection action by serving a 76.16 summons and complaint on or entering judgment against the 76.17 debtor, or by utilizing any of the remedies authorized under 76.18 section 16D.08, subdivision 2, except for the remedies in 76.19 sections 270.06, clause (7), and 270.66 or when referred by 76.20 thecommissionerenterprise for additional collection activity 76.21 by a private collection agency. If, after referral of a debt to 76.22 a private collection agency, the debtor requests cancellation of 76.23 the penalty under subdivision 3, the debt must be returned to 76.24 thecommissionerenterprise for resolution of the request. 76.25 Subd. 3. [CANCELLATION.] The penalty imposed under 76.26 subdivision 1 shall be canceled and subtracted from the amount 76.27 due if: 76.28 (1) the debtor's household income as defined in section 76.29 290A.03, subdivision 5, excluding the exemption subtractions in 76.30 subdivision 3, paragraph (3) of that section, for the 12 months 76.31 preceding the date of referral is less than twice the annual 76.32 federal poverty guideline under United States Code, title 42, 76.33 section 9902, subsection (2); 76.34 (2) within 60 days after the first contact with the debtor 76.35 by the enterprise or collection agency, the debtor establishes 76.36 reasonable cause for the failure to pay the debt prior to 77.1 referral of the debt to the enterprise; 77.2 (3) a good faith dispute as to the legitimacy or the amount 77.3 of the debt is made, and payment is remitted or a payment 77.4 agreement is entered into within 30 days after resolution of the 77.5 dispute; 77.6 (4) good faith litigation occurs and the debtor's position 77.7 is substantially justified, and if the debtor does not totally 77.8 prevail, the debt is paid or a payment agreement is entered into 77.9 within 30 days after the judgment becomes final and 77.10 nonappealable; or 77.11 (5) penalties have been added by the referring agency and 77.12 are included in the amount of the referred debt. 77.13 Subd. 4. [APPEAL.] Decisions of the commissioner of 77.14 revenue denying an application to cancel the penalty under 77.15 subdivision 3 are subject to the contested case procedure under 77.16 chapter 14. 77.17 Subd. 5. [REFUND.] If a penalty is collected and then 77.18 canceled, the amount of the penalty shall be refunded to the 77.19 debtor within 30 days. The amount necessary to pay the refunds 77.20 is annually appropriated to thecommissionerenterprise. 77.21 Subd. 6. [CHARGE TO REFERRING AGENCY.] If the penalty is 77.22 canceled under subdivision 3, an amount equal to the penalty is 77.23 retained by thecommissionerenterprise from the debt collected, 77.24 and is accounted for and subject to the same provisions of this 77.25 chapter as if the penalty had been collected from the debtor. 77.26 Subd. 7. [ADJUSTMENT OF RATE.] By June 1 of each year, the 77.27 commissioner shall determine the rate of the penalty for debts 77.28 referred to the enterprise during the next fiscal year. The 77.29 rate is a percentage of the debts in an amount that most nearly 77.30 equals the costs of the enterprise necessary to process and 77.31 collect referred debts under this chapter. In no event shall 77.32 the rate of the penalty when a debt is first referred exceed 77.33 three-fifths of the maximum penalty, and in no event shall the 77.34 rate of the maximum penalty exceed 25 percent of the debt. 77.35 Determination of the rate of the penalty under this section is 77.36 not rulemaking under chapter 14, and is not subject to the fee 78.1 setting requirements of section 16A.1285. 78.2 Sec. 23. Minnesota Statutes 1995 Supplement, section 78.3 16D.12, is amended to read: 78.4 16D.12 [PAYMENT OF COLLECTION AGENCY FEES.] 78.5 Unless otherwise expressly prohibited by law, a state 78.6 agency may pay for the services ofa statethe enterprise or 78.7 private collection agency from the money collected. The portion 78.8 of the money collected which must be paid to the enterprise or 78.9 private collection agency as its collection fee is appropriated 78.10 from the fund to which the collected money is due. 78.11 Sec. 24. Minnesota Statutes 1995 Supplement, section 78.12 16D.14, is amended to read: 78.13 16D.14 [VENUE.] 78.14 Subdivision 1. [AUTHORIZATION.] Thecommissioner78.15 enterprise or the attorney general may bring an action to 78.16 recover debts owed to the state in Ramsey county district court 78.17 or Ramsey county conciliation court at the discretion of the 78.18 state. In order to bring a cause of action under this section 78.19 in any county other than the county where the debtor resides or 78.20 where the cause of action arose, thecommissionerenterprise or 78.21 the attorney general must notify the debtor as provided in 78.22 subdivisions 2 to 4, unless that venue is authorized by other 78.23 law. 78.24 Subd. 2. [CONCILIATION COURT; CLAIMS FOR $2,500 OR LESS.] 78.25 (a) Before bringing a conciliation court action for a claim for 78.26 $2,500 or less under this section in any county other than where 78.27 the debtor resides or where the cause of action arose, the 78.28commissionerenterprise or the attorney general shall send a 78.29 form by first class mail to the debtor's last known address 78.30 notifying the debtor of the intent to bring an action in Ramsey 78.31 county. Thecommissionerenterprise or attorney general must 78.32 enclose a form for the debtor to use to request that the action 78.33 not be brought in Ramsey county and a self-addressed, postage 78.34 paid envelope. The form must advise the debtor of the right to 78.35 request that the action not be brought in Ramsey county and that 78.36 the debtor has 30 days from the date of the form to make this 79.1 request. 79.2 (b) If the debtor timely returns the form requesting the 79.3 action not be brought in Ramsey county, thecommissioner79.4 enterprise or attorney general may only file the action in the 79.5 county of the debtor's residence, the county where the cause of 79.6 action arose, or as provided by other law. Thecommissioner79.7 enterprise or attorney general shall notify the debtor of the 79.8 action taken. If the debtor does not timely return the form, 79.9 venue is as chosen by thecommissionerenterprise or attorney 79.10 general as authorized under this section. 79.11 (c) If a judgment is obtained in Ramsey county conciliation 79.12 court when the form was sent by first class mail under this 79.13 subdivision and the debtor reasonably demonstrates that the 79.14 debtor did not reside at the address where the form was sent or 79.15 that the debtor did not receive the form, thecommissioner79.16 enterprise or the attorney general shall vacate the judgment 79.17 without prejudice and return any funds collected as a result of 79.18 enforcement of the judgment. Evidence of the debtor's correct 79.19 address include, but are not limited to, a driver's license, 79.20 homestead declaration, school registration, utility bills, or a 79.21 lease or rental agreement. 79.22 Subd. 3. [CONCILIATION COURT CLAIMS EXCEEDING $2,500.] (a) 79.23 In order to bring a conciliation court claim that exceeds $2,500 79.24 under this section in a county other than where the debtor 79.25 resides or where the cause of action arose, the 79.26commissionerenterprise or the attorney general shall serve with 79.27 the conciliation court claim a change of venue form for the 79.28 debtor to use to request that venue be changed and a 79.29 self-addressed, postage paid return envelope. This form must 79.30 advise the debtor that the form must be returned within 30 days 79.31 of the date of service or venue will remain in Ramsey county. 79.32 (b) If the debtor timely returns the change of venue form 79.33 requesting a change of venue, thecommissionerenterprise or 79.34 attorney general shall change the venue of the action to the 79.35 county of the debtor's residence, the county where the cause of 79.36 action arose, as provided by other law, or dismiss the action. 80.1 Thecommissionerenterprise or attorney general must notify the 80.2 debtor of the action taken. If the debtor does not timely 80.3 return the form, venue is as chosen by thecommissioner80.4 enterprise or attorney general as authorized under this 80.5 section. Thecommissionerenterprise or the attorney general 80.6 shall file the signed return receipt card or the proof of 80.7 service with the court. 80.8 Subd. 4. [DISTRICT COURT.] (a) In order to bring a 80.9 district court action under this section in any county other 80.10 than where the debtor resides or where the cause of action 80.11 arose, thecommissionerenterprise or attorney general shall 80.12 serve the change of venue form with the summons and complaint or 80.13 petition commencing the collection action. Two copies of the 80.14 form must be served along with a self-addressed, postage paid 80.15 return envelope. The form must advise the debtor that the form 80.16 must be returned within 20 days of the date of service or venue 80.17 will remain in Ramsey county. If the debtor timely returns the 80.18 change of venue form, the time to answer the summons and 80.19 complaint or petition runs from the date of debtor's request for 80.20 change of venue. 80.21 (b) If the debtor timely returns the change of venue form 80.22 requesting that the action not be brought in Ramsey county, the 80.23commissionerenterprise or attorney general shall change the 80.24 venue of the action to the county of the debtor's residence, the 80.25 county where the cause of action arose, as provided by other 80.26 law, or dismiss the action. Thecommissionerenterprise or 80.27 attorney general shall notify the debtor of the action taken. 80.28 If the debtor is served the form to change venue along with the 80.29 district court summons and complaint or petition, in accordance 80.30 with court rules, but does not return the form within the 80.31 statutory timelines, venue is as chosen by thecommissioner80.32 enterprise or attorney general as authorized under this 80.33 section. Thecommissionerenterprise or attorney general shall 80.34 file the proof of service along with the summons and complaint 80.35 or petition commencing the lawsuit. 80.36 Subd. 5. [FEES.] No court filing fees, docketing fees, or 81.1 release of judgment fees may be assessed against the state for 81.2 collection actions filed under this chapter. 81.3 Sec. 25. Minnesota Statutes 1995 Supplement, section 81.4 16D.16, is amended to read: 81.5 16D.16 [SETOFFS.] 81.6 Subdivision 1. [AUTHORIZATION.] Thecommissioner81.7 enterprise or a state agency may automatically deduct the amount 81.8 of a debt owed to the state from any state payment due to the 81.9 debtor, except tax refunds, earned income tax credit, child care 81.10 tax credit, prejudgment debts of $5,000 or less, funds exempt 81.11 under section 550.37, or funds owed an individual who receives 81.12 assistance under the provisions of chapter 256 are not subject 81.13 to setoff under this chapter. If a debtor has entered into a 81.14 written payment plan with respect to payment of a specified 81.15 debt, the right of setoff may not be used to satisfy that debt. 81.16 Notwithstanding section 181.79, the state may deduct from the 81.17 wages due or earned by a state employee to collect a debt, 81.18 subject to the limitations in section 571.922. 81.19 Subd. 2. [NOTICE AND HEARING.] Before setoff, the 81.20commissionerenterprise or state agency shall mail written 81.21 notice by certified mail to the debtor, addressed to the 81.22 debtor's last known address, that thecommissionerenterprise or 81.23 state agency intends to set off a debt owed to the state by the 81.24 debtor against future payments due the debtor from the state. 81.25 For debts owed to the state that have not been reduced to 81.26 judgment, if no opportunity to be heard or administrative appeal 81.27 process has yet been made available to the debtor to contest the 81.28 validity or accuracy of the debt, before setoff for a 81.29 prejudgment debt, the notice to the debtor must advise that the 81.30 debtor has a right to make a written request for a contested 81.31 case hearing on the validity of the debt or the right to 81.32 setoff. The debtor has 30 days from the date of that notice to 81.33 make a written request for a contested case hearing to contest 81.34 the validity of the debt or the right to setoff. The debtor's 81.35 request must state the debtor's reasons for contesting the debt 81.36 or the right to setoff. If thecommissionerenterprise or state 82.1 agency desires to pursue the right to setoff following receipt 82.2 of the debtor's request for a hearing, thecommissioner82.3 enterprise or state agency shall schedule a contested case 82.4 hearing within 30 days of the receipt of the request for the 82.5 hearing. If thecommissionerenterprise or state agency decides 82.6 not to pursue the right to setoff, the debtor must be notified 82.7 of that decision. 82.8 Sec. 26. Minnesota Statutes 1994, section 43A.06, is 82.9 amended by adding a subdivision to read: 82.10 Subd. 9. [INVESTIGATION OF ALLEGED OR SUSPECTED 82.11 MISCONDUCT.] The commissioner shall have the authority to 82.12 investigate any matter of suspected or alleged misconduct on the 82.13 part of any state employee, and may assess individual agencies 82.14 for costs incurred in the process of any investigation relating 82.15 to that agency. The assessment is appropriated to the 82.16 department of employee relations. 82.17 Sec. 27. Minnesota Statutes 1994, section 69.021, 82.18 subdivision 4, is amended to read: 82.19 Subd. 4. [DETERMINATION OF QUALIFIED STATE AID RECIPIENTS; 82.20 CERTIFICATION TO COMMISSIONER OF REVENUE.] The commissioner 82.21 shall determine which municipalities and independent nonprofit 82.22 firefighting corporations are qualified to receive fire state 82.23 aid and which municipalities and counties are qualified to 82.24 receive state peace officer aid. The commissioner shall 82.25 determine qualification upon receipt of (1) the fire department 82.26 personnel and equipment certification or the police department 82.27 and qualified peace officers certificate, whichever is 82.28 applicable, required under section 69.011, (2) the financial 82.29 compliance report required under section 6.495, and (3) any 82.30 other relevant information which comes to the attention of the 82.31 commissioner. Upon completion of the determination, on or 82.32 beforeSeptemberOctober 1, the commissioner shall calculate 82.33 under subdivision 6 the amount of (a) state peace officer aid 82.34 which each county or municipality is to receive and (b) fire 82.35 state aid which each municipality or nonprofit firefighting 82.36 corporation is to receive. The commissioner shall certify to 83.1 the commissioner of finance the name of each county or 83.2 municipality, and the amount of state aid which each county or 83.3 municipality is to receive, in the case of state peace officer 83.4 aid; and the name of each municipality or independent nonprofit 83.5 firefighting corporation and the amount of state aid which each 83.6 municipality or independent nonprofit firefighting corporation 83.7 is to receive, in the case of fire state aid. 83.8 Sec. 28. Minnesota Statutes 1994, section 69.021, is 83.9 amended by adding a subdivision to read: 83.10 Subd. 10. [REDUCTION.] The commissioner of revenue shall 83.11 reduce the apportionment of police state aid under subdivisions 83.12 5, paragraph (b), 6, and 7, for eligible employer units by any 83.13 amount in excess of the employer's total prior calendar year 83.14 obligation under section 353.65, as certified by the executive 83.15 director of the public employees retirement association. The 83.16 total shall be deposited in a separate excess police state aid 83.17 account in the general fund, administered and distributed as 83.18 provided in section 353.65, subdivision 7. 83.19 Sec. 29. Minnesota Statutes 1994, section 69.031, 83.20 subdivision 1, is amended to read: 83.21 Subdivision 1. [COMMISSIONER OF FINANCE'S WARRANT.] The 83.22 commissioner of finance shall issue to the county, municipality, 83.23 or independent nonprofit firefighting corporation certified to 83.24 the commissioner of finance by the commissioner a warrant for an 83.25 amount equal to the amount certified to by the commissioner 83.26 pursuant to section 69.021. The amount due and not paid 83.27 bySeptemberOctober 1 accrues interest at the rate of one 83.28 percent for each month or part of a month the amount remains 83.29 unpaid, beginning the preceding July 1. 83.30 Sec. 30. Minnesota Statutes 1994, section 69.031, 83.31 subdivision 5, is amended to read: 83.32 Subd. 5. [DEPOSIT OF STATE AID.] (1) The municipal 83.33 treasurer, on receiving the fire state aid, shall within 30 days 83.34 after receipt transmit it to the treasurer of the duly 83.35 incorporated firefighters' relief association if there is one 83.36 organized and the association has filed a financial report with 84.1 the municipality; but if there is no relief association 84.2 organized, or if any association dissolve, be removed, or has 84.3 heretofore dissolved, or has been removed as trustees of state 84.4 aid, then the treasurer of the municipality shall keep the money 84.5 in the municipal treasury as provided for in section 424A.08 and 84.6 shall be disbursed only for the purposes and in the manner set 84.7 forth in that section. 84.8 (2) The municipal treasurer, upon receipt of the police 84.9 state aid, shall disburse the police state aid in the following 84.10 manner: 84.11 (a) For a municipality in which a local police relief 84.12 association exists and all peace officers are members of the 84.13 association, the total state aid shall be transmitted to the 84.14 treasurer of the relief association within 30 days of the date 84.15 of receipt, and the treasurer of the relief association shall 84.16 immediately deposit the total state aid in the special fund of 84.17 the relief association; 84.18 (b) For a municipality in which police retirement coverage 84.19 is provided by the public employees police and fire fund and all 84.20 peace officers are members of the fund, the total state aid 84.21 shall be applied toward the municipality's employer contribution 84.22 to the public employees police and fire fund pursuant to section 84.23 353.65, subdivision 3, and any state aid in excess of the amount84.24required to meet the employer's contribution pursuant to section84.25353.65, subdivision 3, shall be deposited in the excess84.26contributions holding account of the public employees retirement84.27association; or 84.28 (c) For a municipality other than a city of the first class 84.29 with a population of more than 300,000 in which both a police 84.30 relief association exists and police retirement coverage is 84.31 provided in part by the public employees police and fire fund, 84.32 the municipality may elect at its option to transmit the total 84.33 state aid to the treasurer of the relief association as provided 84.34 in clause (a), to use the total state aid to apply toward the 84.35 municipality's employer contribution to the public employees 84.36 police and fire fund subject to all the provisions set forth in 85.1 clause (b), or to allot the total state aid proportionately to 85.2 be transmitted to the police relief association as provided in 85.3 this subdivision and to apply toward the municipality's employer 85.4 contribution to the public employees police and fire fund 85.5 subject to the provisions of clause (b) on the basis of the 85.6 respective number of active full-time peace officers, as defined 85.7 in section 69.011, subdivision 1, clause (g). 85.8 For a city of the first class with a population of more 85.9 than 300,000, in addition, the city may elect to allot the 85.10 appropriate portion of the total police state aid to apply 85.11 toward the employer contribution of the city to the public 85.12 employees police and fire fund based on the covered salary of 85.13 police officers covered by the fund each payroll period and to 85.14 transmit the balance to the police relief association. 85.15 (3) The county treasurer, upon receipt of the police state 85.16 aid for the county, shall apply the total state aid toward the 85.17 county's employer contribution to the public employees police 85.18 and fire fund pursuant to section 353.65, subdivision 3, and any85.19state aid in excess of the amount required to meet the85.20employer's contribution pursuant to section 353.65, subdivision85.213, shall be deposited in the excess contributions holding85.22account of the public employees retirement association. 85.23 (4) The designated metropolitan airports commission 85.24 official, upon receipt of the police state aid for the 85.25 metropolitan airports commission, shall apply the total police 85.26 state aid toward the commission's employer contribution to the 85.27 Minneapolis employees retirement fund under section 422A.101, 85.28 subdivision 2a. 85.29 Sec. 31. Minnesota Statutes 1994, section 124.195, 85.30 subdivision 7, is amended to read: 85.31 Subd. 7. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 85.32 fiscal year state general fund payments for a district 85.33 nonoperating fund shall be made at 85 percent of the estimated 85.34 entitlement during the fiscal year of the entitlement, unless a85.35higher rate has been established according to section 121.904,85.36subdivision 4d. This amount shall be paid in 12 equal monthly 86.1 installments. The amount of the actual entitlement, after 86.2 adjustment for actual data, minus the payments made during the 86.3 fiscal year of the entitlement shall be paid prior to October 31 86.4 of the following school year. The commissioner may make advance 86.5 payments of homestead and agricultural credit aid for a 86.6 district's debt service fund earlier than would occur under the 86.7 preceding schedule if the district submits evidence showing a 86.8 serious cash flow problem in the fund. The commissioner may 86.9 make earlier payments during the year and, if necessary, 86.10 increase the percent of the entitlement paid to reduce the cash 86.11 flow problem. 86.12 Sec. 32. Minnesota Statutes 1995 Supplement, section 86.13 124.195, subdivision 10, is amended to read: 86.14 Subd. 10. [AID PAYMENT PERCENTAGE.] Except as provided in 86.15 subdivisions 8, 9, and 11, each fiscal year, all education aids 86.16 and credits in this chapter and chapters 121, 123, 124A, 124B, 86.17 125, 126, 134, and section 273.1392, shall be paid at 90 percent 86.18 for districts operating a program under section 121.585 for 86.19 grades 1 to 12 for all students in the district and 85 percent 86.20 for other districts of the estimated entitlement during the 86.21 fiscal year of the entitlement, unless a higher rate has been86.22established according to section 121.904, subdivision 4d. 86.23 Districts operating a program under section 121.585 for grades 1 86.24 to 12 for all students in the district shall receive 85 percent 86.25 of the estimated entitlement plus an additional amount of 86.26 general education aid equal to five percent of the estimated 86.27 entitlement. For all districts, the final adjustment payment, 86.28 according to subdivision 6, shall be the amount of the actual 86.29 entitlement, after adjustment for actual data, minus the 86.30 payments made during the fiscal year of the entitlement. 86.31 Sec. 33. Minnesota Statutes 1994, section 144C.03, 86.32 subdivision 2, is amended to read: 86.33 Subd. 2. [TRUST ACCOUNT.] (a) There is established in the 86.34 general fund an ambulance service personnel longevity award and 86.35 incentive trust account and an ambulance service personnel 86.36 longevity award and incentive suspense account. 87.1 (b) The trust account must be credited with: 87.2 (1) general fund appropriations for that purpose; 87.3 (2) transfers from the ambulance service personnel 87.4 longevity award and incentive suspense account; and 87.5 (3) investment earnings on those accumulated proceeds. The 87.6 assets and income of the trust account must be held and managed 87.7 by the commissioner of finance and the state board of investment 87.8 for the benefit of the state of Minnesota and its general 87.9 creditors. 87.10 (c) The suspense account must be credited with transfers 87.11 from the excesscontributionspolice state aid holding account 87.12 established in section 353.65, subdivision 7, any 87.13 per-year-of-service allocation under section 144C.07, 87.14 subdivision 2, paragraph (c), that was not made for an 87.15 individual, and investment earnings on those accumulated 87.16 proceeds. The suspense account must be managed by the 87.17 commissioner of finance and the state board of investment. From 87.18 the suspense account to the trust account there must be 87.19 transferred to the ambulance service personnel longevity award 87.20 and incentive trust account, as the suspense account balance 87.21 permits, the following amounts: 87.22 (1) an amount equal to any general fund appropriation to 87.23 the ambulance service personnel longevity award and incentive 87.24 trust account for that fiscal year; and 87.25 (2) an amount equal to the percentage of the remaining 87.26 balance in the account after the deduction of the amount under 87.27 clause (1), as specified for the applicable fiscal year: 87.28 Fiscal year Percentage 87.29 1995 20 87.30 1996 40 87.31 1997 50 87.32 1998 60 87.33 1999 70 87.34 2000 80 87.35 2001 90 87.36 2002 and thereafter 100 88.1 Sec. 34. Minnesota Statutes 1995 Supplement, section 88.2 353.65, subdivision 7, is amended to read: 88.3 Subd. 7. [EXCESSCONTRIBUTIONSPOLICE STATE AID HOLDING 88.4 ACCOUNT.] (a) The excess contributions holding account is 88.5 established in thepublic employees retirement88.6associationgeneral fund. Excesscontributions established88.7bypolice state aid determined according to section 88.869.031......,subdivisionsubdivisions 5,paragraphs (2),88.9clauses (b) and (c), and (3)paragraph (a), 6, and 7, must be 88.10 deposited in the account.These contributions and all88.11investment earnings associated with themThis excess aid must be 88.12 regularly transferred as provided in paragraph (b). 88.13 (b) From the amount oftheexcesscontributions and88.14associated investment earnings:88.15(1)police state aid, $1,000,000 must be transferred 88.16 annually to the ambulance service personnel longevity award and 88.17 incentive suspense account established by section 144C.03, 88.18 subdivision 2; and88.19(2) any remaining balance, after deduction of the88.20additional amortization aid allocation, if any, under paragraph88.21(d), must be transferred to the general fund. 88.22 (c) If a law is enacted creating a police officer stress 88.23 reduction program, and money is appropriated for the program, an 88.24 amount equal to the appropriation must be transferred from the 88.25 excess contributions holding account to the stress reduction 88.26 program before money is allocated under paragraph(b), clause88.27(2)(d). 88.28 (d) On October 1, 1997, and annually on each October 1 88.29 thereafter, one-half of themoneyremaining balance in the 88.30 excesscontributionspolice state aid holding accountunder88.31paragraph (b), clause (2), collected during the immediately88.32preceding July 1 through June 30 periodmust be allocated by the 88.33 commissioner of revenue to all local police or salaried 88.34 firefighter relief associations governed by and in full 88.35 compliance with section 69.77 that had an unfunded actuarial 88.36 accrued liability in the actuarial valuation prepared under 89.1 sections 356.215 and 356.216 as of the preceding December 31, 89.2 and to all local police or salaried firefighter consolidation 89.3 accounts governed by chapter 353A that are certified by the 89.4 executive director of the public employees retirement 89.5 association as having for the current fiscal year an additional 89.6 municipal contribution amount under section 353A.09, subdivision 89.7 5, paragraph (b), and that have implemented Minnesota Statutes 89.8 1994, section 353A.083, if the effective date of the 89.9 consolidation preceded May 24, 1993, and that have implemented 89.10 section 353A.083, if the effective date of the consolidation 89.11 preceded the date of enactment, on the basis of the relief 89.12 association or consolidation account's proportional share of the 89.13 total unfunded actuarial accrued liability of all recipient 89.14 relief associations and consolidation accounts as of December 89.15 31, 1993, or June 30, 1994, whichever applies. Any remaining 89.16 balance in the excess police state aid account cancels to the 89.17 general fund. 89.18 Sec. 35. [363.065] [ALTERNATIVE DISPUTE RESOLUTION.] 89.19 There shall be, in the department, an alternative dispute 89.20 resolution program to resolve disputes arising under the human 89.21 rights act, with a process to: 89.22 (1) administer the alternative dispute resolution program; 89.23 (2) follow-up with parties willing to use alternative 89.24 dispute resolution; 89.25 (3) develop and maintain a panel of mediators and advisors 89.26 and assign them to cases; 89.27 (4) track progress of alternative dispute resolution cases; 89.28 and 89.29 (5) conduct evaluations of the program. 89.30 Sec. 36. Minnesota Statutes 1994, section 363.071, 89.31 subdivision 7, is amended to read: 89.32 Subd. 7. [LITIGATION AND HEARING COSTS.] The 89.33 administrative law judge shall order a respondent who is 89.34 determined to have engaged in an unfair discriminatory practice 89.35 to reimburse the department and the attorney general for all 89.36 appropriate litigation and hearing costs expended in preparing 90.1 for and conducting the hearing, unless payment of the costs 90.2 would impose a financial hardship on the respondent. 90.3 Appropriate costs include but are not limited to the costs of 90.4 services rendered by the attorney general, private attorneys if 90.5 engaged by the department, administrative law judges, court 90.6 reporters, and expert witnesses as well as the costs of 90.7 transcripts and other necessary supplies and materials. 90.8 Money reimbursed to the department of human rights under 90.9 this subdivision must be paid into the state treasury and 90.10 credited to a special revenue account. Money in that account is 90.11 appropriated to the commissioner of human rights to the extent 90.12 the reimbursements were made to cover the department's costs and 90.13 are available for the department's activities in enforcing the 90.14 Minnesota human rights act. 90.15 Sec. 37. [REVISOR INSTRUCTION.] 90.16 The revisor of statutes shall renumber Minnesota Statutes, 90.17 section 353.65, subdivision 7, to section 69.021, subdivision 90.18 11, and correct cross-references in this act and Minnesota 90.19 Statutes 1996 and subsequent editions of the statutes. 90.20 Sec. 38. [EFFECTIVE DATE.] 90.21 This act is effective the day after final enactment, except 90.22 that section 6 is effective July 1, 1996, and is the basis for 90.23 the attorney general's costs for the 1998-1999 biennium.