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Minnesota Legislature

Office of the Revisor of Statutes

HF 3270

Conference Committee Report - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/11/2002
1st Engrossment Posted on 03/14/2002
2nd Engrossment Posted on 03/20/2002
3rd Engrossment Posted on 03/22/2002
4th Engrossment Posted on 05/15/2002
Unofficial Engrossments
1st Unofficial Engrossment Posted on 12/05/2002
Conference Committee Reports
CCR-HF3270 Posted on 01/27/2003

Current Version - Conference Committee Report

  1.1             CONFERENCE COMMITTEE REPORT ON H.F. NO. 3270 
  1.2                          A bill for an act 
  1.3             relating to state government; creating office of state 
  1.4             treasurer and modifying related provisions; providing 
  1.5             for governor's cabinet and organizing certain 
  1.6             government agencies; modifying certain fund 
  1.7             provisions; requiring the commissioner of finance to 
  1.8             prepare a forecast of state revenues and expenditures 
  1.9             in July in each even-numbered year; requiring certain 
  1.10            payments; modifying provisions of constitutional 
  1.11            officers' salaries; reducing certain appropriations; 
  1.12            modifying consulting moratorium and hiring freeze 
  1.13            provisions; amending Minnesota Statutes 2000, sections 
  1.14            4.06; 8.05; 10.01; 11A.08, subdivision 1; 16A.103, 
  1.15            subdivision 1; 40A.151, subdivision 1; 40A.152, 
  1.16            subdivisions 1, 3; 43A.18, subdivision 4; 168A.40, 
  1.17            subdivision 4, as amended; 204B.11, subdivision 1; 
  1.18            204D.10, subdivision 2; 209.01, subdivision 2; 
  1.19            240A.08; 471.975; Minnesota Statutes 2001 Supplement, 
  1.20            section 16E.09, subdivision 1; Laws 2001, First 
  1.21            Special Session chapter 10, article 1, section 2, 
  1.22            subdivision 4; Laws 2002, chapter 220, article 10, 
  1.23            sections 2; 3; 7; 10, subdivision 3; 16; 36; 37; 38; 
  1.24            proposing coding for new law in Minnesota Statutes, 
  1.25            chapters 7; 15; 43A. 
  1.26                                                 May 15, 2002
  1.27  The Honorable Steve Sviggum 
  1.28  Speaker of the House of Representatives
  1.30  The Honorable Don Samuelson 
  1.31  President of the Senate
  1.33     We, the undersigned conferees for H.F. No. 3270, report 
  1.34  that we have agreed upon the items in dispute and recommend as 
  1.35  follows: 
  1.36     
  1.37     That the Senate recede from its amendments and that H.F. No.
  1.38  3270 be further amended as follows: 
  2.1      Delete everything after the enacting clause and insert: 
  2.2                              "ARTICLE 1
  2.3                     EDUCATION AID PAYMENT DELAY
  2.4      Section 1.  Minnesota Statutes 2001 Supplement, section 
  2.5   124D.11, subdivision 9, is amended to read: 
  2.6      Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
  2.7   Notwithstanding section 127A.45, subdivision 3, aid payments for 
  2.8   the current fiscal year to a charter school not in its first 
  2.9   year of operation shall be of an equal amount on each of the 23 
  2.10  payment dates.  A charter school in its first year of operation 
  2.11  shall receive, on its first payment date, ten percent of its 
  2.12  cumulative amount guaranteed for the year and 22 payments of an 
  2.13  equal amount thereafter the sum of which shall be 90 percent of 
  2.14  the cumulative amount guaranteed. 
  2.15     (b) Notwithstanding paragraph (a), for a charter school 
  2.16  ceasing operation prior to the end of a school year, 90 83 
  2.17  percent of the amount due for the school year may be paid to the 
  2.18  school after audit of prior fiscal year and current fiscal year 
  2.19  pupil counts. 
  2.20     (c) Notwithstanding section 127A.45, subdivision 3, and 
  2.21  paragraph (a), 90 83 percent of the start-up cost aid under 
  2.22  subdivision 8 shall be paid within 45 days after the first day 
  2.23  of student attendance for that school year. 
  2.24     (d) In order to receive state aid payments under this 
  2.25  subdivision, a charter school in its first three years of 
  2.26  operation must submit a quarterly report to the department of 
  2.27  children, families, and learning.  The report must list each 
  2.28  student by grade, show the student's start and end dates, if 
  2.29  any, with the charter school, and for any student participating 
  2.30  in a learning year program, the report must list the hours and 
  2.31  times of learning year activities.  The report must be submitted 
  2.32  not more than two weeks after the end of the calendar quarter to 
  2.33  the department.  The department must develop a Web-based 
  2.34  reporting form for charter schools to use when submitting 
  2.35  enrollment reports.  A charter school in its fourth and 
  2.36  subsequent year of operation must submit enrollment information 
  3.1   to the department in the form and manner requested by the 
  3.2   department. 
  3.3      Sec. 2.  Minnesota Statutes 2000, section 127A.45, 
  3.4   subdivision 2, is amended to read: 
  3.5      Subd. 2.  [DEFINITIONS.] (a) The term "other district 
  3.6   receipts" means payments by county treasurers pursuant to 
  3.7   section 276.10, apportionments from the school endowment fund 
  3.8   pursuant to section 127A.33, apportionments by the county 
  3.9   auditor pursuant to section 127A.34, subdivision 2, and payments 
  3.10  to school districts by the commissioner of revenue pursuant to 
  3.11  chapter 298.  
  3.12     (b) The term "cumulative amount guaranteed" means the 
  3.13  product of 
  3.14     (1) the cumulative disbursement percentage shown in 
  3.15  subdivision 3; times 
  3.16     (2) the sum of 
  3.17     (i) 90 83 percent of the estimated aid and credit 
  3.18  entitlements paid according to subdivision 13; plus 
  3.19     (ii) 100 percent of the entitlements paid according to 
  3.20  subdivisions 11 and 12; plus 
  3.21     (iii) the other district receipts; plus 
  3.22     (iv) the final adjustment payment according to subdivision 
  3.23  9.  
  3.24     (c) The term "payment date" means the date on which state 
  3.25  payments to districts are made by the electronic funds transfer 
  3.26  method.  If a payment date falls on a Saturday, a Sunday, or a 
  3.27  weekday which is a legal holiday, the payment shall be made on 
  3.28  the immediately preceding business day.  The commissioner may 
  3.29  make payments on dates other than those listed in subdivision 3, 
  3.30  but only for portions of payments from any preceding payment 
  3.31  dates which could not be processed by the electronic funds 
  3.32  transfer method due to documented extenuating circumstances.  
  3.33     Sec. 3.  Minnesota Statutes 2000, section 127A.45, 
  3.34  subdivision 3, is amended to read: 
  3.35     Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] (a) For fiscal 
  3.36  year 2003, the commissioner shall pay to a district on the dates 
  4.1   indicated an amount computed as follows:  the cumulative amount 
  4.2   guaranteed minus the sum of (a) the district's other district 
  4.3   receipts through the current payment, and (b) the aid and credit 
  4.4   payments through the immediately preceding payment.  For 
  4.5   purposes of this computation, the payment dates and the 
  4.6   cumulative disbursement percentages are as follows:  
  4.7                            Payment date               Percentage 
  4.8   Payment 1    July 15:                                    4.6 5.1
  4.9   Payment 2    July 30:                                    6.9 7.7
  4.10  Payment 3    August 15:  the greater of (a) the final        
  4.11               adjustment for the prior fiscal year for
  4.12               the state paid property tax credits
  4.13               established in section 273.1392, or
  4.14               (b) the amount needed to provide 15.2 percent 16.9
  4.15  Payment 4    August 30:                                 17.4 19.3
  4.16  Payment 5    September 15:                              19.6 21.8
  4.17  Payment 6    September 30:                              21.8 24.3
  4.18  Payment 7    October 15:  the greater of (a) one-half of
  4.19               the final adjustment for the prior fiscal year
  4.20               for all aid entitlements except state paid
  4.21               property tax credits, or (b) the amount needed to
  4.22               provide 24 percent 26.3
  4.23  Payment 8    October 30:  the greater of (a) one-half of the
  4.24               final adjustment for the prior fiscal year for all
  4.25               aid entitlements except state paid property
  4.26               tax credits, or (b) the amount needed
  4.27               to provide 27.3 percent 28.3
  4.28  Payment 9    November 15:                               33.3 32.8
  4.29  Payment 10   November 30:                               39.3 39.1
  4.30  Payment 11   December 15:                               42.3 42.4
  4.31  Payment 12   December 30:                               45.3 45.6
  4.32  Payment 13   January 15:                                49.5 50.5
  4.33  Payment 14   January 30:                                53.8 55.0
  4.34  Payment 15   February 15:                               58.3 60.2
  4.35  Payment 16   February 28:                               62.8 65.0
  4.36  Payment 17   March 15:                                  67.6 69.7
  5.1   Payment 18   March 30:                                  72.3 74.3
  5.2   Payment 19   April 15:                                  75.3 78.3
  5.3   Payment 20   April 30:                                  81.3 84.2
  5.4   Payment 21   May 15:                                    84.3 88.7
  5.5   Payment 22   May 30:                                    92.3 93.3
  5.6   Payment 23   June 20:                                       100.0
  5.7      (b) In addition to the amounts paid under paragraph (a), 
  5.8   for fiscal year 2003, the commissioner shall pay to a district 
  5.9   on the dates indicated an amount computed as follows: 
  5.10  Payment 3    August 15:  the final adjustment for the
  5.11               prior fiscal year for the state paid
  5.12               property tax credits established in
  5.13               section 273.1392
  5.14  Payment 7    October 15:  one-half of the final adjustment
  5.15               for the prior fiscal year for all aid
  5.16               entitlements except state paid property
  5.17               tax credits 
  5.18  Payment 8    October 30:  one-half of the final adjustment
  5.19               for the prior fiscal year for all aid
  5.20               entitlements except state paid property
  5.21               tax credits 
  5.22     (c) For fiscal year 2004 and later, the commissioner shall 
  5.23  pay to a district on the dates indicated an amount computed as 
  5.24  follows:  the cumulative amount guaranteed minus the sum of (a) 
  5.25  the district's other district receipts through the current 
  5.26  payment, and (b) the aid and credit payments through the 
  5.27  immediately preceding payment.  For purposes of this 
  5.28  computation, the payment dates and the cumulative disbursement 
  5.29  percentages are as follows: 
  5.30             Payment date                      Percentage 
  5.31  Payment 1    July 15:                                    5.1
  5.32  Payment 2    July 30:                                    7.7
  5.33  Payment 3    August 15:                                 16.9
  5.34  Payment 4    August 30:                                 19.3
  5.35  Payment 5    September 15:                              21.8
  5.36  Payment 6    September 30:                              24.3
  6.1   Payment 7    October 15:                                26.3
  6.2   Payment 8    October 30:                                28.3
  6.3   Payment 9    November 15:                               30.3
  6.4   Payment 10   November 30:                               35.0
  6.5   Payment 11   December 15:                               40.0
  6.6   Payment 12   December 30:                               43.0
  6.7   Payment 13   January 15:                                48.0
  6.8   Payment 14   January 30:                                52.0
  6.9   Payment 15   February 15:                               56.0
  6.10  Payment 16   February 28:                               61.0
  6.11  Payment 17   March 15:                                  66.0
  6.12  Payment 18   March 30:                                  72.0
  6.13  Payment 19   April 15:                                  76.0
  6.14  Payment 20   April 30:                                  83.0
  6.15  Payment 21   May 15:                                    88.0
  6.16  Payment 22   May 30:                                    95.0
  6.17  Payment 23   June 20:                                  100.0
  6.18     (d) In addition to the amounts paid under paragraph (c), 
  6.19  for fiscal year 2004 and later, the commissioner shall pay to a 
  6.20  district on the dates indicated an amount computed as follows: 
  6.21  Payment 3    August 15:  the final adjustment for the
  6.22               prior fiscal year for the state paid
  6.23               property tax credits established in 
  6.24               section 273.1392 
  6.25  Payment 4    August 30:  one-third of the final adjustment
  6.26               for the prior fiscal year for all aid
  6.27               entitlements except state paid property
  6.28               tax credits 
  6.29  Payment 6    September 30:  one-third of the final adjustment
  6.30               for the prior fiscal year for all aid
  6.31               entitlements except state paid property
  6.32               tax credits
  6.33  Payment 8    October 30:  one-third of the final adjustment
  6.34               for the prior fiscal year for all aid
  6.35               entitlements except state paid property
  6.36               tax credits
  7.1      Sec. 4.  Minnesota Statutes 2000, section 127A.45, is 
  7.2   amended by adding a subdivision to read: 
  7.3      Subd. 7a.  [ADVANCE FINAL PAYMENT.] (a) Notwithstanding 
  7.4   subdivisions 3 and 7, a school district or a charter school 
  7.5   exceeding its expenditure limitations under section 123B.83 as 
  7.6   of June 30 of the prior fiscal year may receive a portion of its 
  7.7   final payment for the current fiscal year on June 20, if 
  7.8   requested by the district.  The amount paid under this 
  7.9   subdivision must not exceed the lesser of: 
  7.10     (1) seven percent of the district or charter school's 
  7.11  general education aid for the current fiscal year; or 
  7.12     (2) the amount by which the district or charter school's 
  7.13  net negative unreserved general fund balance as of June 30 of 
  7.14  the prior fiscal year exceeds 2.5 percent of the district or 
  7.15  charter school's expenditures for that fiscal year. 
  7.16     (b) The state total advance final payment under this 
  7.17  subdivision for any year must not exceed $17,500,000.  If the 
  7.18  amount requested exceeds $17,500,000, the advance final payment 
  7.19  for each eligible district must be reduced proportionately. 
  7.20     Sec. 5.  Minnesota Statutes 2000, section 127A.45, 
  7.21  subdivision 10, is amended to read: 
  7.22     Subd. 10.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
  7.23  fiscal year state general fund payments for a district 
  7.24  nonoperating fund must be made at 90 83 percent of the estimated 
  7.25  entitlement during the fiscal year of the entitlement.  This 
  7.26  amount shall be paid in 12 equal monthly installments.  The 
  7.27  amount of the actual entitlement, after adjustment for actual 
  7.28  data, minus the payments made during the fiscal year of the 
  7.29  entitlement must be paid prior to October 31 of the following 
  7.30  school year.  The commissioner may make advance payments of debt 
  7.31  service equalization aid or homestead and agricultural credit 
  7.32  aid for a district's debt service fund earlier than would occur 
  7.33  under the preceding schedule if the district submits evidence 
  7.34  showing a serious cash flow problem in the fund.  The 
  7.35  commissioner may make earlier payments during the year and, if 
  7.36  necessary, increase the percent of the entitlement paid to 
  8.1   reduce the cash flow problem. 
  8.2      Sec. 6.  Minnesota Statutes 2000, section 127A.45, 
  8.3   subdivision 13, is amended to read: 
  8.4      Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
  8.5   subdivisions 11, 12, 12a, and 14, each fiscal year, all 
  8.6   education aids and credits in this chapter and chapters 120A, 
  8.7   120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 
  8.8   section 273.1392, shall be paid at 90 83 percent of the 
  8.9   estimated entitlement during the fiscal year of the 
  8.10  entitlement.  For the purposes of this subdivision, a district's 
  8.11  estimated entitlement for special education excess cost aid 
  8.12  under section 125A.79 equals 70 percent of the district's 
  8.13  entitlement for the second prior fiscal year.  The final 
  8.14  adjustment payment, according to subdivision 9, must be the 
  8.15  amount of the actual entitlement, after adjustment for actual 
  8.16  data, minus the payments made during the fiscal year of the 
  8.17  entitlement. 
  8.18     Sec. 7.  Minnesota Statutes 2000, section 127A.45, 
  8.19  subdivision 14, is amended to read: 
  8.20     Subd. 14.  [NONPUBLIC AIDS.] The state shall pay aid 
  8.21  according to sections 123B.40 to 123B.48 for pupils attending 
  8.22  nonpublic schools as follows: 
  8.23     (1) an advance payment by November 30 equal to 90 83 
  8.24  percent of the estimated entitlement for the current fiscal 
  8.25  year; and 
  8.26     (2) a final payment by October 31 of the following fiscal 
  8.27  year, adjusted for actual data.  
  8.28     If a payment advance to meet cash flow needs is requested 
  8.29  by a district and approved by the commissioner, the state shall 
  8.30  pay nonpublic pupil transportation aid according to section 
  8.31  123B.92 by October 31. 
  8.32     Sec. 8.  Minnesota Statutes 2001 Supplement, section 
  8.33  127A.45, subdivision 14a, is amended to read: 
  8.34     Subd. 14a.  [STATE NUTRITION PROGRAMS.] Notwithstanding 
  8.35  subdivision 3, the state shall pay 100 percent of the aid for 
  8.36  the current year according to sections 124D.111, 124D.115, and 
  9.1   124D.118 and 90 83 percent of the aid for the current year 
  9.2   according to section 124D.1156 based on submitted monthly 
  9.3   vouchers showing meals and milk served.  The remaining ten 17 
  9.4   percent according to section 124D.1156 shall be paid by October 
  9.5   30 of the following fiscal year. 
  9.6      Sec. 9.  Minnesota Statutes 2000, section 127A.45, 
  9.7   subdivision 16, is amended to read: 
  9.8      Subd. 16.  [PAYMENTS TO THIRD PARTIES.] Notwithstanding 
  9.9   subdivision 3, 90 83 percent of the amounts under section 
  9.10  123A.26, subdivision 3, shall be paid in equal installments on 
  9.11  August 30, December 30, and March 30, with a ten 17 percent 
  9.12  final adjustment payment on October 30 of the next fiscal year. 
  9.13     Sec. 10.  [APPROPRIATION, ADVANCE FINAL PAYMENT.] 
  9.14     $17,500,000 is appropriated from the general fund to the 
  9.15  commissioner of children, families, and learning to make advance 
  9.16  final payments to school districts and charter schools under 
  9.17  section 4.  
  9.18                             ARTICLE 2
  9.19                EARLY CHILDHOOD AND FAMILY EDUCATION
  9.20     Section 1.  Laws 2001, First Special Session chapter 3, 
  9.21  article 1, section 17, subdivision 2, is amended to read: 
  9.22     Subd. 2.  [SCHOOL READINESS PROGRAM REVENUE.] For revenue 
  9.23  for school readiness programs according to Minnesota Statutes, 
  9.24  sections 124D.15 and 124D.16: 
  9.25       $10,395,000    .....     2002
  9.26       $10,395,000 $9,667,000    .....     2003
  9.27     The 2002 appropriation includes $1,039,000 for 2001 and 
  9.28  $9,356,000 for 2002. 
  9.29     The 2003 appropriation includes $1,039,000 for 2002 and 
  9.30  $9,356,000 $8,628,000 for 2003.  
  9.31     Any balance in the first year does not cancel but is 
  9.32  available in the second year. 
  9.33     Sec. 2.  Laws 2001, First Special Session chapter 3, 
  9.34  article 1, section 17, subdivision 3, as amended by Laws 2002, 
  9.35  chapter 220, article 2, section 2, is amended to read: 
  9.36     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
 10.1   childhood family education aid according to Minnesota Statutes, 
 10.2   section 124D.135: 
 10.3        $20,725,000 $20,746,000     .....     2002 
 10.4        $20,624,000 $19,184,000     .....     2003
 10.5      The 2002 appropriation includes $2,036,000 for 2001 and 
 10.6   $18,689,000 $18,710,000 for 2002.  
 10.7      The 2003 appropriation includes $2,076,000 $2,079,000 for 
 10.8   2002 and $18,548,000 $17,105,000 for 2003.  
 10.9      Any balance in the first year does not cancel but is 
 10.10  available in the second year. 
 10.11     Sec. 3.  Laws 2001, First Special Session chapter 3, 
 10.12  article 1, section 17, subdivision 4, is amended to read: 
 10.13     Subd. 4.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
 10.14  health and developmental screening aid according to Minnesota 
 10.15  Statutes, sections 121A.17 and 121A.19: 
 10.16       $2,661,000     .....     2002 
 10.17       $2,661,000 $2,475,000     .....     2003 
 10.18     The 2002 appropriation includes $266,000 for 2001 and 
 10.19  $2,395,000 for 2002.  
 10.20     The 2003 appropriation includes $266,000 for 2002 and 
 10.21  $2,395,000 $2,209,000 for 2003.  
 10.22     Any balance in the first year does not cancel but is 
 10.23  available in the second year. 
 10.24     Sec. 4.  Laws 2001, First Special Session chapter 3, 
 10.25  article 1, section 17, subdivision 7, as amended by Laws 2002, 
 10.26  chapter 220, article 2, section 3, is amended to read: 
 10.27     Subd. 7.  [SCHOOL AGE CARE AID.] For school age care aid 
 10.28  according to Minnesota Statutes, section 124D.22: 
 10.29       $221,000     .....     2002 
 10.30       $100,000 $94,000     .....     2003
 10.31     The 2002 appropriation includes $30,000 for 2001 and 
 10.32  $191,000 for 2002. 
 10.33     The 2003 appropriation includes $21,000 for 2002 and 
 10.34  $79,000 $73,000 for 2003. 
 10.35     Any balance in the first year does not cancel but is 
 10.36  available in the second year. 
 11.1      Sec. 5.  Laws 2001, First Special Session chapter 3, 
 11.2   article 1, section 17, subdivision 9, as amended by Laws 2002, 
 11.3   chapter 220, article 2, section 5, is amended to read: 
 11.4      Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
 11.5   according to Minnesota Statutes, section 119B.05: 
 11.6        $69,201,000 $59,956,000     .....     2002 
 11.7        $77,122,000 $68,182,000     .....     2003 
 11.8      Any balance in the first year does not cancel but is 
 11.9   available in the second year. 
 11.10     Sec. 6.  Laws 2001, First Special Session chapter 3, 
 11.11  article 1, section 19, subdivision 3, as amended by Laws 2002, 
 11.12  chapter 220, article 2, section 8, is amended to read: 
 11.13     Subd. 3.  [TRANSITION YEAR FAMILIES.] To provide 
 11.14  uninterrupted assistance under Minnesota Statutes, section 
 11.15  119B.03, for families completing transition year child care 
 11.16  assistance: 
 11.17       $1,404,000 $1,695,000   .....     2002
 11.18       $1,357,000 $1,014,000   .....     2003
 11.19     Any unspent balance from the appropriations for 2002 and 
 11.20  2003 is returned to the TANF reserve.  TANF dollars appropriated 
 11.21  for this purpose in 2001 which are not encumbered by January 1, 
 11.22  2002, are returned to the TANF reserve. 
 11.23     Sec. 7.  Laws 2001, First Special Session chapter 3, 
 11.24  article 1, section 19, subdivision 5, as amended by Laws 2002, 
 11.25  chapter 220, article 2, section 9, is amended to read: 
 11.26     Subd. 5.  [MFIP SOCIAL SERVICES CHILD CARE.] For social 
 11.27  services child care costs of eligible MFIP participants under 
 11.28  Minnesota Statutes, section 119B.05, subdivision 1, clause (5): 
 11.29       $973,000 $775,000   .....     2002
 11.30       $997,000 $801,000   .....     2003
 11.31     Any unspent balance from the appropriations for 2002 and 
 11.32  2003 is returned to the TANF reserve.  TANF dollars appropriated 
 11.33  for this purpose in 2001 which are not encumbered by January 1, 
 11.34  2002, are returned to the TANF reserve. 
 11.35     Sec. 8.  Laws 2001, First Special Session chapter 3, 
 11.36  article 2, section 15, subdivision 3, as amended by Laws 2002, 
 12.1   chapter 220, article 2, section 10, is amended to read: 
 12.2      Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
 12.3   education aid according to Minnesota Statutes, section 124D.20: 
 12.4        $14,190,000 $14,194,000     .....     2002
 12.5        $ 8,186,000 $ 7,664,000     .....     2003
 12.6      The 2002 appropriation includes $1,528,000 for 2001 and 
 12.7   $12,662,000 $12,666,000 for 2002.  
 12.8      The 2003 appropriation includes $1,406,000 $1,407,000 for 
 12.9   2002 and $6,780,000 $6,257,000 for 2003.  
 12.10     Any balance in the first year does not cancel but is 
 12.11  available in the second year. 
 12.12     Sec. 9.  Laws 2001, First Special Session chapter 3, 
 12.13  article 2, section 15, subdivision 4, is amended to read: 
 12.14     Subd. 4.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
 12.15  adults with disabilities programs according to Minnesota 
 12.16  Statutes, section 124D.56: 
 12.17       $639,000     .....     2002 
 12.18       $710,000 $661,000     .....     2003 
 12.19     The 2002 appropriation includes $0 for 2001 and $639,000 
 12.20  for 2002. 
 12.21     The 2003 appropriation includes $71,000 for 2002 and 
 12.22  $639,000 $590,000 for 2003. 
 12.23     Any balance in the first year does not cancel but is 
 12.24  available in the second year. 
 12.25     Sec. 10.  Laws 2001, First Special Session chapter 3, 
 12.26  article 2, section 15, subdivision 6, is amended to read: 
 12.27     Subd. 6.  [VIOLENCE PREVENTION EDUCATION GRANTS.] For 
 12.28  violence prevention education grants according to Minnesota 
 12.29  Statutes, section 120B.23: 
 12.30       $1,305,000     .....     2002
 12.31       $1,450,000 $1,349,000     .....     2003
 12.32     The 2002 appropriation includes $0 for 2001 and $1,305,000 
 12.33  for 2002. 
 12.34     The 2003 appropriation includes $145,000 for 2002 and 
 12.35  $1,305,000 $1,204,000 for 2003. 
 12.36     Any balance in the first year does not cancel but is 
 13.1   available in the second year. 
 13.2      Sec. 11.  Laws 2001, First Special Session chapter 3, 
 13.3   article 3, section 9, subdivision 5, is amended to read: 
 13.4      Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
 13.5   education aid according to Minnesota Statutes, section 124D.531: 
 13.6        $32,150,000     .....     2002 
 13.7        $34,731,000 $32,282,000     .....     2003
 13.8      The 2002 appropriation includes $3,019,000 for 2001 and 
 13.9   $29,131,000 for 2002.  
 13.10     The 2003 appropriation includes $3,237,000 for 2002 and 
 13.11  $31,494,000 $29,045,000 for 2003.  
 13.12     Sec. 12.  Laws 2001, First Special Session chapter 3, 
 13.13  article 3, section 9, subdivision 7, is amended to read: 
 13.14     Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
 13.15  according to Minnesota Statutes, section 124D.54: 
 13.16       $3,195,000 $2,462,000     .....     2002 
 13.17       $3,356,000 $2,327,000     .....     2003 
 13.18     The 2002 appropriation includes $305,000 for 2001 and 
 13.19  $2,890,000 $2,157,000 for 2002.  
 13.20     The 2003 appropriation includes $321,000 $240,000 for 2002 
 13.21  and $3,035,000 $2,087,000 for 2003.  
 13.22     Sec. 13.  Laws 2001, First Special Session chapter 3, 
 13.23  article 4, section 5, subdivision 2, as amended by Laws 2002, 
 13.24  chapter 220, article 2, section 12, is amended to read: 
 13.25     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
 13.26  according to Minnesota Statutes, sections 134.32 to 134.35: 
 13.27       $8,570,000     .....     2002 
 13.28       $8,570,000 $7,971,000     .....     2003 
 13.29     The 2002 appropriation includes $857,000 for 2001 and 
 13.30  $7,713,000 for 2002. 
 13.31     The 2003 appropriation includes $857,000 for 2002 and 
 13.32  $7,713,000 $7,114,000 for 2003. 
 13.33     Base level funding for fiscal year 2004 is 
 13.34  $9,823,000 $9,754,000 and $9,822,000 $9,962,000 for fiscal year 
 13.35  2005. 
 13.36     Sec. 14.  Laws 2001, First Special Session chapter 3, 
 14.1   article 4, section 5, subdivision 3, is amended to read: 
 14.2      Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
 14.3   grants according to Minnesota Statutes, sections 134.353 and 
 14.4   134.354, to multicounty, multitype library systems: 
 14.5        $903,000     .....     2002 
 14.6        $903,000 $840,000     .....     2003 
 14.7      The 2002 appropriation includes $90,000 for 2001 and 
 14.8   $813,000 for 2002. 
 14.9      The 2003 appropriation includes $90,000 for 2002 and 
 14.10  $813,000 $750,000 for 2003. 
 14.11     Any balance in the first year does not cancel but is 
 14.12  available in the second year. 
 14.13     Sec. 15.  Laws 2002, chapter 220, article 2, section 14, 
 14.14  subdivision 1, is amended to read: 
 14.15     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 14.16  LEARNING.] The sum indicated in this section is appropriated to 
 14.17  the commissioner of children, families, and learning transferred 
 14.18  from the federal Temporary Assistance for Needy Families block 
 14.19  grant to the child care and development fund and appropriated to 
 14.20  the department of children, families, and learning for the 
 14.21  fiscal year designated.  This amount is available for 
 14.22  expenditure until June 30, 2003. 
 14.23     Sec. 16.  [EFFECTIVE DATE.] 
 14.24     This article is effective the day following final enactment.
 14.25                             ARTICLE 3
 14.26              K-12 EDUCATION APPROPRIATION ADJUSTMENTS
 14.27     Section 1.  Minnesota Statutes 2001 Supplement, section 
 14.28  123B.54, as amended by Laws 2002, chapter 220, article 4, 
 14.29  section 1, is amended to read: 
 14.30     123B.54 [DEBT SERVICE APPROPRIATION.] 
 14.31     (a) $25,987,000 in fiscal year 2002, 
 14.32  $31,892,000 $29,941,000 in fiscal year 2003, 
 14.33  $36,629,000 $40,075,000 in fiscal year 2004, and 
 14.34  $36,931,000 $39,774,000 in fiscal years 2005 and later are 
 14.35  appropriated from the general fund to the commissioner of 
 14.36  children, families, and learning for payment of debt service 
 15.1   equalization aid under section 123B.53.  
 15.2      (b) The appropriations in paragraph (a) must be reduced by 
 15.3   the amount of any money specifically appropriated for the same 
 15.4   purpose in any year from any state fund. 
 15.5      Sec. 2.  Laws 2001, First Special Session chapter 5, 
 15.6   article 2, section 29, subdivision 2, as amended by Laws 2002, 
 15.7   chapter 220, article 4, section 2, is amended to read: 
 15.8      Subd. 2.  [REFERENDUM TAX BASE REPLACEMENT AID.] For 
 15.9   referendum tax base replacement aid according to Minnesota 
 15.10  Statutes, section 126C.17, subdivision 7a: 
 15.11       $7,616,000 $7,027,000     .....     2003
 15.12     The 2003 appropriation includes $0 for 2002 and 
 15.13  $7,616,000 $7,027,000 for 2003.  
 15.14     Sec. 3.  Laws 2001, First Special Session chapter 6, 
 15.15  article 1, section 54, subdivision 2, as amended by Laws 2002, 
 15.16  chapter 220, article 3, section 8, is amended to read: 
 15.17     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] (a) For 
 15.18  general and supplemental education aid:  
 15.19       $3,404,787,000 $3,414,168,000     .....     2002
 15.20       $4,982,334,000 $4,616,467,000     .....     2003
 15.21     The 2002 appropriation includes $323,767,000 $333,756,000 
 15.22  for 2001 and $3,081,020,000 $3,080,412,000 for 2002.  
 15.23     The 2003 appropriation includes $335,220,000 $335,163,000 
 15.24  for 2002 and $4,647,114,000 $4,281,304,000 for 2003.  
 15.25     (b) The fiscal year 2003 appropriation in paragraph (a) is 
 15.26  reduced by $1,901,000. 
 15.27     Sec. 4.  Laws 2001, First Special Session chapter 6, 
 15.28  article 1, section 54, subdivision 4, as amended by Laws 2002, 
 15.29  chapter 220, article 4, section 3, is amended to read: 
 15.30     Subd. 4.  [ABATEMENT AID.] For abatement aid according to 
 15.31  Minnesota Statutes, section 127A.49:  
 15.32       $5,698,000    .....     2002 
 15.33       $2,990,000 $2,870,000    .....     2003 
 15.34     The 2002 appropriation includes $640,000 for 2001 and 
 15.35  $5,058,000 for 2002.  
 15.36     The 2003 appropriation includes $562,000 for 2002 
 16.1   and $2,428,000 $2,308,000 for 2003.  
 16.2      Sec. 5.  Laws 2001, First Special Session chapter 6, 
 16.3   article 1, section 54, subdivision 5, as amended by Laws 2002, 
 16.4   chapter 220, article 4, section 4, is amended to read: 
 16.5      Subd. 5.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
 16.6   education aid according to Minnesota Statutes, sections 123.79 
 16.7   and 123B.40 to 123B.43: 
 16.8        $14,441,000 $14,254,000   .....     2002 
 16.9        $15,977,000 $14,259,000   .....     2003 
 16.10     The 2002 appropriation includes $1,330,000 for 2001 and 
 16.11  $13,111,000 $12,924,000 for 2002. 
 16.12     The 2003 appropriation includes $1,457,000 $1,436,000 for 
 16.13  2002 and $14,520,000 $12,823,000 for 2003. 
 16.14     Sec. 6.  Laws 2001, First Special Session chapter 6, 
 16.15  article 1, section 54, subdivision 6, as amended by Laws 2002, 
 16.16  chapter 220, article 4, section 5, is amended to read: 
 16.17     Subd. 6.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 16.18  pupil transportation aid under Minnesota Statutes, section 
 16.19  123B.92, subdivision 9: 
 16.20       $20,635,000 $20,634,000    .....     2002 
 16.21       $25,347,000 $22,236,000    .....     2003 
 16.22     The 2002 appropriation includes $2,000,000 for 2001 and 
 16.23  $18,635,000 $18,634,000 for 2002. 
 16.24     The 2003 appropriation includes $2,070,000 $2,071,000 for 
 16.25  2002 and $23,277,000 $20,165,000 for 2003. 
 16.26     Sec. 7.  Laws 2001, First Special Session chapter 6, 
 16.27  article 1, section 54, subdivision 7, as amended by Laws 2002, 
 16.28  chapter 220, article 4, section 6, is amended to read: 
 16.29     Subd. 7.  [CONSOLIDATION TRANSITION AID.] For districts 
 16.30  consolidating under Minnesota Statutes, section 123A.485: 
 16.31       $531,000 $539,000       .....     2002 
 16.32       $736,000 $225,000       .....     2003 
 16.33     The 2002 appropriation includes $44,000 for 2001 and 
 16.34  $487,000 $495,000 for 2002. 
 16.35     The 2003 appropriation includes $54,000 for 2002 
 16.36  and $682,000 $171,000 for 2003. 
 17.1      Any balance in the first year does not cancel but is 
 17.2   available in the second year. 
 17.3      Sec. 8.  Laws 2001, First Special Session chapter 6, 
 17.4   article 2, section 77, subdivision 4, as amended by Laws 2002, 
 17.5   chapter 220, article 4, section 7, is amended to read: 
 17.6      Subd. 4.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
 17.7   lease aid under Minnesota Statutes, section 124D.11, subdivision 
 17.8   4: 
 17.9        $12,323,000 $12,286,000     .....     2002 
 17.10       $15,330,000 $14,394,000     .....     2003 
 17.11     The 2002 appropriation includes $1,114,000 for 2001 and 
 17.12  $11,209,000 $11,172,000 for 2002. 
 17.13     The 2003 appropriation includes $1,245,000 $1,241,000 for 
 17.14  2002 and $14,085,000 $13,153,000 for 2003.  
 17.15     Sec. 9.  Laws 2001, First Special Session chapter 6, 
 17.16  article 2, section 77, subdivision 5, as amended by Laws 2002, 
 17.17  chapter 220, article 4, section 8, is amended to read: 
 17.18     Subd. 5.  [CHARTER SCHOOL STARTUP GRANTS.] For charter 
 17.19  school startup cost aid under Minnesota Statutes, section 
 17.20  124D.11: 
 17.21       $2,090,000 $2,064,000    .....     2002 
 17.22       $1,549,000 $1,456,000    .....     2003 
 17.23     The 2002 appropriation includes $258,000 for 2001 
 17.24  and $1,832,000 $1,806,000 for 2002.  
 17.25     The 2003 appropriation includes $204,000 $200,000 for 2002 
 17.26  and $1,345,000 $1,256,000 for 2003. 
 17.27     Sec. 10.  Laws 2001, First Special Session chapter 6, 
 17.28  article 2, section 77, subdivision 6, is amended to read: 
 17.29     Subd. 6.  [CHARTER SCHOOL INTEGRATION AID.] For grants to 
 17.30  charter schools to promote integration and desegregation under 
 17.31  Minnesota Statutes, section 124D.11, subdivision 6, paragraph 
 17.32  (e): 
 17.33       $45,000        .....     2002 
 17.34       $50,000 $47,000        .....     2003 
 17.35     The 2002 appropriation includes $0 for 2001 and $45,000 for 
 17.36  2002.  
 18.1      The 2003 appropriation includes $5,000 for 2002 and 
 18.2   $45,000 $42,000 for 2003. 
 18.3      Any balance in the first year does not cancel but is 
 18.4   available in the second year. 
 18.5      Sec. 11.  Laws 2001, First Special Session chapter 6, 
 18.6   article 2, section 77, subdivision 8, as amended by Laws 2002, 
 18.7   chapter 220, article 4, section 9, is amended to read: 
 18.8      Subd. 8.  [INTEGRATION AID.] For integration aid: 
 18.9        $63,421,000 $63,311,000     .....    2002 
 18.10       $53,890,000 $50,418,000     .....    2003 
 18.11     The 2002 appropriation includes $5,729,000 for 2001 and 
 18.12  $57,692,000 $57,582,000 for 2002. 
 18.13     The 2003 appropriation includes $6,410,000 $6,398,000 for 
 18.14  2002 and $47,480,000 $44,020,000 for 2003.  
 18.15     Sec. 12.  Laws 2001, First Special Session chapter 6, 
 18.16  article 2, section 77, subdivision 11, as amended by Laws 2002, 
 18.17  chapter 220, article 4, section 10, is amended to read: 
 18.18     Subd. 11.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
 18.19  startup aid under Minnesota Statutes, section 124D.88: 
 18.20       $475,000 $448,000      .....     2002 
 18.21       $298,000 $326,000      .....     2003 
 18.22     The 2002 appropriation includes $25,000 for 2001 and 
 18.23  $450,000 $423,000 for 2002.  
 18.24     The 2003 appropriation includes $50,000 $47,000 for 2002 
 18.25  and $248,000 $279,000 for 2003. 
 18.26     Sec. 13.  Laws 2001, First Special Session chapter 6, 
 18.27  article 2, section 77, subdivision 15, as amended by Laws 2002, 
 18.28  chapter 220, article 4, section 11, is amended to read: 
 18.29     Subd. 15.  [SUCCESS FOR THE FUTURE.] For American Indian 
 18.30  success for the future grants according to Minnesota Statutes, 
 18.31  section 124D.81: 
 18.32       $1,924,000     .....     2002
 18.33       $2,137,000 $1,987,000     .....     2003
 18.34     The 2002 appropriation includes $0 for 2001 and $1,924,000 
 18.35  for 2002. 
 18.36     The 2003 appropriation includes $213,000 for 2002 
 19.1   and $1,924,000 $1,774,000 for 2003. 
 19.2      Sec. 14.  Laws 2001, First Special Session chapter 6, 
 19.3   article 2, section 77, subdivision 18, as amended by Laws 2002, 
 19.4   chapter 220, article 4, section 12, is amended to read: 
 19.5      Subd. 18.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 19.6   school aid under Minnesota Statutes, section 124D.83: 
 19.7        $2,304,000 $2,147,000    .....     2002
 19.8        $2,408,000 $2,221,000    .....     2003
 19.9      The 2002 appropriation includes $192,000 for 2001 and 
 19.10  $2,112,000 $1,955,000 for 2002. 
 19.11     The 2003 appropriation includes $235,000 $217,000 for 2002 
 19.12  and $2,173,000 $2,004,000 for 2003. 
 19.13     Sec. 15.  Laws 2001, First Special Session chapter 6, 
 19.14  article 3, section 21, subdivision 2, as amended by Laws 2002, 
 19.15  chapter 220, article 4, section 13, is amended to read: 
 19.16     Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
 19.17  aid according to Minnesota Statutes, section 125A.75: 
 19.18       $507,841,000 $507,928,000  .....     2002 
 19.19       $532,282,000 $495,032,000  .....     2003 
 19.20     The 2002 appropriation includes $47,400,000 for 2001 and 
 19.21  $460,441,000 $460,528,000 for 2002. 
 19.22     The 2003 appropriation includes $51,160,000 $51,170,000 for 
 19.23  2002 and $481,122,000 $443,862,000 for 2003. 
 19.24     Sec. 16.  Laws 2001, First Special Session chapter 6, 
 19.25  article 3, section 21, subdivision 3, as amended by Laws 2002, 
 19.26  chapter 220, article 4, section 14, is amended to read: 
 19.27     Subd. 3.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 19.28  according to Minnesota Statutes, section 125A.75, subdivision 3, 
 19.29  for children with a disability placed in residential facilities 
 19.30  within the district boundaries for whom no district of residence 
 19.31  can be determined: 
 19.32       $1,358,000 $1,346,000    .....     2002 
 19.33       $3,161,000 $2,363,000    .....     2003 
 19.34     If the appropriation for either year is insufficient, the 
 19.35  appropriation for the other year is available.  
 19.36     Any balance in the first year does not cancel but is 
 20.1   available in the second year. 
 20.2      Sec. 17.  Laws 2001, First Special Session chapter 6, 
 20.3   article 3, section 21, subdivision 4, as amended by Laws 2002, 
 20.4   chapter 220, article 4, section 15, is amended to read: 
 20.5      Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 20.6   teacher travel for home-based services according to Minnesota 
 20.7   Statutes, section 125A.75, subdivision 1: 
 20.8        $143,000 $139,000      .....     2002 
 20.9        $148,000 $134,000      .....     2003 
 20.10     The 2002 appropriation includes $14,000 $13,000 for 2001 
 20.11  and $129,000 $126,000 for 2002. 
 20.12     The 2003 appropriation includes $15,000 $14,000 for 2002 
 20.13  and $133,000 $120,000 for 2003. 
 20.14     Sec. 18.  Laws 2001, First Special Session chapter 6, 
 20.15  article 3, section 21, subdivision 5, as amended by Laws 2002, 
 20.16  chapter 220, article 4, section 16, is amended to read: 
 20.17     Subd. 5.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 20.18  cost aid: 
 20.19       $103,061,000 $92,622,000     .....     2002 
 20.20       $105,289,000 $60,372,000     .....     2003 
 20.21     The 2002 appropriation includes $9,889,000 for 2001 and 
 20.22  $93,172,000 $82,733,000 for 2002. 
 20.23     The 2003 appropriation includes $10,352,000 $9,192,000 for 
 20.24  2002 and $94,937,000 $51,180,000 for 2003. 
 20.25     Sec. 19.  Laws 2001, First Special Session chapter 6, 
 20.26  article 3, section 21, subdivision 7, as amended by Laws 2002, 
 20.27  chapter 220, article 4, section 17, is amended to read: 
 20.28     Subd. 7.  [TRANSITION PROGRAMS; STUDENTS WITH 
 20.29  DISABILITIES.] For aid for transition programs for pupils with 
 20.30  disabilities according to Minnesota Statutes, section 124D.454: 
 20.31       $8,960,000 $8,962,000    .....     2002 
 20.32       $8,952,000 $8,328,000    .....     2003 
 20.33     The 2002 appropriation includes $896,000 for 2001 and 
 20.34  $8,064,000 $8,066,000 for 2002.  
 20.35     The 2003 appropriation includes $896,000 for 2002 
 20.36  and $8,056,000 $7,432,000 for 2003.  
 21.1      Sec. 20.  Laws 2001, First Special Session chapter 6, 
 21.2   article 4, section 27, subdivision 2, as amended by Laws 2002, 
 21.3   chapter 220, article 4, section 18, is amended to read: 
 21.4      Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 21.5   aid according to Minnesota Statutes, section 123B.57, 
 21.6   subdivision 5: 
 21.7        $13,630,000 $12,280,000   .....     2002 
 21.8        $10,800,000 $ 9,085,000   .....     2003 
 21.9      The 2002 appropriation includes $1,480,000 for 2001 and 
 21.10  $12,150,000 $10,800,000 for 2002. 
 21.11     The 2003 appropriation includes $1,350,000 $1,200,000 for 
 21.12  2002 and $9,450,000 $7,885,000 for 2003. 
 21.13     Sec. 21.  Laws 2001, First Special Session chapter 6, 
 21.14  article 4, section 27, subdivision 3, as amended by Laws 2002, 
 21.15  chapter 220, article 4, section 19, is amended to read: 
 21.16     Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 21.17  according to Minnesota Statutes, section 123B.53, subdivision 6: 
 21.18       $25,987,000     .....     2002 
 21.19       $31,892,000 $29,941,000     .....     2003 
 21.20     The 2002 appropriation includes $2,890,000 for 2001 and 
 21.21  $23,097,000 for 2002. 
 21.22     The 2003 appropriation includes $2,566,000 for 2002 
 21.23  and $29,326,000 $27,375,000 for 2003. 
 21.24     Sec. 22.  Laws 2001, First Special Session chapter 6, 
 21.25  article 4, section 27, subdivision 5, as amended by Laws 2002, 
 21.26  chapter 220, article 4, section 20, is amended to read: 
 21.27     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 21.28  alternative facilities bonding aid, according to Minnesota 
 21.29  Statutes, section 123B.59, subdivision 1: 
 21.30       $19,280,000     .....     2002 
 21.31       $19,287,000 $17,937,000     .....     2003 
 21.32     The 2002 appropriation includes $1,921,000 for 2001 and 
 21.33  $17,359,000 for 2002. 
 21.34     The 2003 appropriation includes $1,928,000 for 2002 
 21.35  and $17,359,000 $16,009,000 for 2003. 
 21.36     Sec. 23.  Laws 2001, First Special Session chapter 6, 
 22.1   article 5, section 13, subdivision 3, is amended to read: 
 22.2      Subd. 3.  [SCHOOL BREAKFAST.] For school breakfast aid 
 22.3   under Minnesota Statutes, section 124D.115: 
 22.4        $640,000       .....     2002 
 22.5        $700,000 $680,000       .....     2003 
 22.6      Sec. 24.  [EFFECTIVE DATE.] 
 22.7      This article is effective the day following final enactment.
 22.8                              ARTICLE 4
 22.9                            K-12 EDUCATION
 22.10     Section 1.  Minnesota Statutes 2000, section 124D.69, is 
 22.11  amended by adding a subdivision to read: 
 22.12     Subd. 3.  [UNCOMMON SCHOOLS SERVING STUDENTS WITH CHEMICAL 
 22.13  DEPENDENCIES; ALLOCATION OF FUNDS.] In addition to the amounts 
 22.14  provided in section 124D.68, subdivision 9, a school district 
 22.15  may allocate funds from its undesignated general fund to a 
 22.16  private contracted alternative program, including a private 
 22.17  contracted alternative program that is tuition free and provides 
 22.18  a comprehensive secondary academic program for students who have 
 22.19  been assessed chemically dependent and who have completed a 
 22.20  licensed treatment program for chemical dependency. 
 22.21     Sec. 2.  Minnesota Statutes 2000, section 125A.65, 
 22.22  subdivision 1, is amended to read: 
 22.23     Subdivision 1.  [RESPONSIBILITY ALLOCATED.] Responsibility 
 22.24  for special instruction and services for a visually 
 22.25  disabled blind/visually impaired or hearing impaired deaf/hard 
 22.26  of hearing child attending the Minnesota state academy for the 
 22.27  deaf or the Minnesota state academy for the blind must be 
 22.28  determined in subdivisions 2 to 10. 
 22.29     Sec. 3.  Minnesota Statutes 2000, section 125A.65, 
 22.30  subdivision 3, is amended to read: 
 22.31     Subd. 3.  [EDUCATIONAL PROGRAM; TUITION.] When it is 
 22.32  determined pursuant to section 125A.69, subdivision 1 or 2, that 
 22.33  the child is entitled to attend either school, the board of the 
 22.34  Minnesota state academies must provide the appropriate 
 22.35  educational program for the child.  The board of the Minnesota 
 22.36  state academies must make a tuition charge to the child's 
 23.1   district of residence for the cost of providing the program.  
 23.2   The amount of tuition charged must not exceed the basic revenue 
 23.3   of the district general education revenue formula allowance 
 23.4   times the pupil unit weighting factor pursuant to section 
 23.5   126C.05 for that child, for the amount of time the child is in 
 23.6   the program.  For purposes of this subdivision, "basic revenue" 
 23.7   has the meaning given it in section 126C.10, subdivision 2.  The 
 23.8   district of the child's residence must pay the tuition and may 
 23.9   claim general education aid for the child.  Tuition received by 
 23.10  the board of the Minnesota state academies, except for tuition 
 23.11  received under subdivision 4, must be deposited in the state 
 23.12  treasury as provided in subdivision 8. 
 23.13     Sec. 4.  Minnesota Statutes 2000, section 125A.65, 
 23.14  subdivision 8, is amended to read: 
 23.15     Subd. 8.  [STUDENT COUNT; TUITION.] (a) On May 1 of each 
 23.16  year, 1996, and each year thereafter, the board of the Minnesota 
 23.17  state academies shall count the actual number of Minnesota 
 23.18  resident kindergarten and elementary students and the actual 
 23.19  number of Minnesota resident secondary special education 
 23.20  eligible students enrolled and receiving education services at 
 23.21  the Minnesota state academy for the deaf and the Minnesota state 
 23.22  academy for the blind.  The board of the Minnesota state 
 23.23  academies shall deposit in the state treasury an amount equal to 
 23.24  all tuition received less: the amount calculated in paragraph 
 23.25  (b). 
 23.26     (1) the total number of students on May 1 less 175, times 
 23.27  the ratio of the number of kindergarten and elementary students 
 23.28  to the total number of students on May 1, times the general 
 23.29  education formula allowance; plus 
 23.30     (2) the total number of students on May 1 less 175, times 
 23.31  the ratio of the number of secondary students on May 1 to the 
 23.32  total number of students on May 1, times 1.3, times the general 
 23.33  education formula allowance. 
 23.34     (b) The Minnesota state academies shall credit to their 
 23.35  general operation account an amount equal to the tuition 
 23.36  received which represents tuition earned for the total number of 
 24.1   students over 175 based on: 
 24.2      (1) the total number of enrolled students on May 1 less 
 24.3   175; times 
 24.4      (2) the ratio of the number of students in that grade 
 24.5   category to the total number of students on May 1; times 
 24.6      (3) the general education revenue formula allowance; times 
 24.7      (4) the pupil unit weighting factor pursuant to section 
 24.8   126C.05. 
 24.9      Sec. 5.  Minnesota Statutes 2000, section 125A.65, 
 24.10  subdivision 9, is amended to read: 
 24.11     Subd. 9.  [CALCULATION.] The sum provided by the 
 24.12  calculation in subdivision 8, clauses (1) and (2), must be 
 24.13  deposited in the state treasury and credited to the general 
 24.14  operation account of the academy for the deaf and the academy 
 24.15  for the blind Minnesota state academy for the deaf and the 
 24.16  Minnesota state academy for the blind. 
 24.17     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
 24.18  126C.10, subdivision 13, is amended to read: 
 24.19     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 24.20  fiscal year 2000 and thereafter, total operating capital revenue 
 24.21  for a district equals the amount determined under paragraph (b) 
 24.22  or (c), plus $73 times the adjusted marginal cost pupil units 
 24.23  for the school year.  The revenue must be placed in a reserved 
 24.24  account in the general fund and may only be used according to 
 24.25  paragraph (d) or subdivision 14. 
 24.26     (b) For fiscal years 2000 and later, capital revenue for a 
 24.27  district equals $100 times the district's maintenance cost index 
 24.28  times its adjusted marginal cost pupil units for the school year.
 24.29     (c) For fiscal years 2000 and later, the revenue for a 
 24.30  district that operates a program under section 124D.128, is 
 24.31  increased by an amount equal to $30 times the number of marginal 
 24.32  cost pupil units served at the site where the program is 
 24.33  implemented. 
 24.34     (d) For fiscal years 2001 and, 2002, and 2003, the district 
 24.35  must reserve an amount equal to $5 per adjusted marginal cost 
 24.36  pupil unit for telecommunication access costs.  Reserve revenue 
 25.1   under this paragraph must first be used to pay for ongoing or 
 25.2   recurring telecommunication access costs, including access to 
 25.3   data and video connections, including Internet access.  Any 
 25.4   revenue remaining after covering all ongoing or recurring access 
 25.5   costs may be used for computer hardware or equipment. 
 25.6      Sec. 7.  Minnesota Statutes 2001 Supplement, section 
 25.7   126C.17, subdivision 7, is amended to read: 
 25.8      Subd. 7.  [REFERENDUM EQUALIZATION AID.] (a) A district's 
 25.9   referendum equalization aid equals the difference between its 
 25.10  referendum equalization revenue and levy. 
 25.11     (b) If a district's actual levy for first or second tier 
 25.12  referendum equalization revenue is less than its maximum levy 
 25.13  limit for that tier, aid shall be proportionately reduced. 
 25.14     (c) Notwithstanding paragraph (a), the referendum 
 25.15  equalization aid for a district, where the referendum 
 25.16  equalization aid under paragraph (a) exceeds 90 percent of the 
 25.17  referendum revenue, must not exceed 18.2 percent of the formula 
 25.18  allowance times the district's resident marginal cost pupil 
 25.19  units.  A district's referendum levy is increased by the amount 
 25.20  of any reduction in referendum aid under this paragraph. 
 25.21     [EFFECTIVE DATE.] This section is effective for operating 
 25.22  referendum elections January 1, 2002, and later. 
 25.23     Sec. 8.  Laws 2001, First Special Session chapter 6, 
 25.24  article 7, section 14, as amended by Laws 2002, chapter 220, 
 25.25  article 3, section 16, is amended to read: 
 25.26     Sec. 14.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
 25.27  EDUCATION.] 
 25.28     The sums indicated in this section are appropriated from 
 25.29  the general fund to the Perpich Center for Arts Education for 
 25.30  the fiscal years designated: 
 25.31   $7,431,000 $7,681,000    .....     2002 
 25.32   $7,316,000 $7,816,000    .....     2003 
 25.33     $150,000 each year is to extend the partnership network to 
 25.34  up to five new partnership sites and for developing 
 25.35  whole-school, arts-based teaching and learning curriculum at new 
 25.36  sites. 
 26.1      Any balance in the first year does not cancel but is 
 26.2   available in the second year. 
 26.3      Sec. 9.  [REFERENDUM TRANSFER ADJUSTMENT.] 
 26.4      Notwithstanding Minnesota Statutes, section 126C.17, 
 26.5   subdivision 1, paragraph (b), for fiscal year 2003 and later, 
 26.6   the initial referendum allowance for independent school district 
 26.7   No. 709, Duluth, equals the sum of the allowance under Minnesota 
 26.8   Statutes, section 126C.16, subdivision 2, plus the referendum 
 26.9   conversion allowance approved under Minnesota Statutes, section 
 26.10  126C.17, subdivision 13, minus $373.  If the district has more 
 26.11  than one referendum authority, the reduction must be computed 
 26.12  separately for each authority.  The reduction must be applied 
 26.13  first to the referendum authority with the earliest expiration 
 26.14  date.  The district's initial referendum allowance may not be 
 26.15  less than zero. 
 26.16     Sec. 10.  [DECLINING PUPIL UNIT AID; ALBERT LEA.] 
 26.17     Subdivision 1.  [FISCAL YEAR 2003.] For fiscal year 2003, 
 26.18  independent school district No. 241, Albert Lea, is eligible for 
 26.19  declining enrollment aid equal to $300,000. 
 26.20     Subd. 2.  [FISCAL YEAR 2004.] For fiscal year 2004, 
 26.21  independent school district No. 241, Albert Lea, is eligible for 
 26.22  declining enrollment aid equal to 75 percent of the fiscal year 
 26.23  2003 appropriation in subdivision 1. 
 26.24     Subd. 3.  [FISCAL YEAR 2005.] For fiscal year 2005, 
 26.25  independent school district No. 241, Albert Lea, is eligible for 
 26.26  declining enrollment aid equal to 50 percent of the fiscal year 
 26.27  2003 appropriation in subdivision 1. 
 26.28     Subd. 4.  [FISCAL YEAR 2006.] For fiscal year 2006, 
 26.29  independent school district No. 241, Albert Lea, is eligible for 
 26.30  declining enrollment aid equal to 25 percent of the fiscal year 
 26.31  2003 appropriation in subdivision 1. 
 26.32     Sec. 11.  [DECLINING ENROLLMENT; LTV DISLOCATION.] 
 26.33     Subdivision 1.  [FISCAL YEAR 2003.] For fiscal year 2003, 
 26.34  independent school district No. 2711, Mesabi East, is eligible 
 26.35  for declining enrollment aid equal to $200,000. 
 26.36     Subd. 2.  [FISCAL YEAR 2004.] For fiscal year 2004, 
 27.1   independent school district No. 2711, Mesabi East, is eligible 
 27.2   for declining enrollment aid equal to 75 percent of the amount 
 27.3   that the district received in the fiscal year 2003 appropriation 
 27.4   in subdivision 1. 
 27.5      Subd. 3.  [FISCAL YEAR 2005.] For fiscal year 2005, 
 27.6   independent school district No. 2711, Mesabi East, is eligible 
 27.7   for declining enrollment aid equal to 50 percent of the amount 
 27.8   that the district received in the fiscal year 2003 appropriation 
 27.9   in subdivision 1. 
 27.10     Subd. 4.  [FISCAL YEAR 2006.] For fiscal year 2006, 
 27.11  independent school district No. 2711, Mesabi East, is eligible 
 27.12  for declining enrollment aid equal to 25 percent of the amount 
 27.13  that the district received in the fiscal year 2003 appropriation 
 27.14  in subdivision 1. 
 27.15     [EFFECTIVE DATE.] This section is effective the day 
 27.16  following final enactment. 
 27.17     Sec. 12.  [FUND TRANSFER; BUTTERFIELD.] 
 27.18     Notwithstanding Minnesota Statutes, section 123B.79 or 
 27.19  123B.80, on June 30, 2002, independent school district No. 836, 
 27.20  Butterfield, may permanently transfer up to $117,000 from its 
 27.21  reserves for operating capital account in its general fund to 
 27.22  the undesignated fund balance. 
 27.23     [EFFECTIVE DATE.] This section is effective the day 
 27.24  following final enactment. 
 27.25     Sec. 13.  [FUND TRANSFER; TRUMAN.] 
 27.26     Notwithstanding Minnesota Statutes, section 123B.79 or 
 27.27  123B.80, on June 30, 2002, independent school district No. 458, 
 27.28  Truman, may permanently transfer up to $500,000 from its 
 27.29  reserves for operating capital account in its general fund to 
 27.30  the undesignated fund balance. 
 27.31     [EFFECTIVE DATE.] This section is effective the day 
 27.32  following final enactment. 
 27.33     Sec. 14.  [APPROPRIATION.] 
 27.34     (a) $300,000 in fiscal year 2003 is appropriated from the 
 27.35  general fund to the commissioner of children, families, and 
 27.36  learning for declining pupil unit aid to independent school 
 28.1   district No. 241, Albert Lea. 
 28.2      (b) In addition to the amounts appropriated for general and 
 28.3   supplemental education aid, $295,000 in fiscal year 2003 is 
 28.4   appropriated from the general fund to the commissioner of 
 28.5   children, families, and learning for the aid portion of the 
 28.6   referendum transfer adjustment for independent school district 
 28.7   No. 709, Duluth. 
 28.8      (c) $200,000 in fiscal year 2003 is appropriated from the 
 28.9   general fund to the commissioner of children, families, and 
 28.10  learning for declining pupil unit aid to independent school 
 28.11  district No. 2711, Mesabi East. 
 28.12     Sec. 15.  [EFFECTIVE DATE.] 
 28.13     Except as otherwise provided in this article, this article 
 28.14  is effective the day following final enactment. 
 28.15                             ARTICLE 5
 28.16                          HIGHER EDUCATION
 28.17     Section 1.  Minnesota Statutes 2000, section 136A.121, 
 28.18  subdivision 7, is amended to read: 
 28.19     Subd. 7.  [INSUFFICIENT APPROPRIATION.] If the amount 
 28.20  appropriated is determined by the office to be insufficient to 
 28.21  make full awards to applicants under subdivision 5, before any 
 28.22  award for that year has been disbursed, awards must be reduced 
 28.23  by 
 28.24     (1) adding a surcharge to the contribution of the 
 28.25  applicant's parents, and assigned family responsibility, as 
 28.26  defined in section 136A.101, subdivision 5a; and 
 28.27     (2) a percentage increase in the applicant's contribution 
 28.28  assigned student responsibility, as defined in subdivision 5.  
 28.29     Sec. 2.  [STATE GRANT APPROPRIATION.] 
 28.30     $5,000,000 is appropriated from the general fund to the 
 28.31  higher education services office to make state grants.  This 
 28.32  appropriation is added to the appropriation in Laws 2001, First 
 28.33  Special Session chapter 1, article 1, section 2, subdivision 2, 
 28.34  for fiscal year 2002. 
 28.35     The higher education services office, by July 1, 2002, must 
 28.36  make a determination of the projected sufficiency or deficiency 
 29.1   in state money available for the state grant program to make 
 29.2   full state grant awards through fiscal year 2003.  If it is 
 29.3   determined that a deficiency is projected, then, notwithstanding 
 29.4   Minnesota Statutes, section 136A.121, subdivision 7, the higher 
 29.5   education services office shall immediately transfer to the 
 29.6   state grant appropriation from the work study appropriation and 
 29.7   notwithstanding Minnesota Statutes, section 136A.125, 
 29.8   subdivision 4c, from the child care grant appropriation in Laws 
 29.9   2001, First Special Session chapter 1, article 1, section 2, the 
 29.10  amount necessary to make full state grant awards in fiscal year 
 29.11  2003.  If state money available for the state grant program 
 29.12  continues to be insufficient to make full state grant awards 
 29.13  after the initial transfers, subsequent transfers must be made 
 29.14  before any reduction in state grant awards under Minnesota 
 29.15  Statutes, section 136A.121, subdivision 7, is made. 
 29.16     Sec. 2.  [EFFECTIVE DATE.] 
 29.17     This article is effective the day following final enactment.
 29.18                             ARTICLE 6
 29.19                 ENVIRONMENT AND NATURAL RESOURCES
 29.20     Section 1.  [SCORE BLOCK GRANT APPROPRIATION SHIFT.] 
 29.21     $9,000,000 of the appropriation in Laws 2001, First Special 
 29.22  Session chapter 2, section 3, from the general fund to the 
 29.23  office of environmental assistance for SCORE block grants to 
 29.24  counties in fiscal year 2003 is canceled.  This is a onetime 
 29.25  reduction and the same amount must be restored to the general 
 29.26  fund budget base for fiscal year 2004. 
 29.27     $9,000,000 is appropriated from the solid waste fund to the 
 29.28  office of environmental assistance for SCORE block grants to 
 29.29  counties in fiscal year 2003.  This is a onetime appropriation. 
 29.30     [EFFECTIVE DATE.] This section is effective the day 
 29.31  following final enactment. 
 29.32     Sec. 2.  Minnesota Statutes 2000, section 115A.557, 
 29.33  subdivision 1, is amended to read: 
 29.34     Subdivision 1.  [DISTRIBUTION; FORMULA.] Any funds 
 29.35  appropriated to the director for the purpose of distribution to 
 29.36  counties under this section must be distributed each fiscal year 
 30.1   by the director based on population, except a county may not 
 30.2   receive less than $55,000 in a fiscal year.  If the amount 
 30.3   available for distribution under this section is less than the 
 30.4   amount available in fiscal year 2001, the minimum county payment 
 30.5   under this section is reduced proportionately.  For purposes of 
 30.6   this subdivision, "population" has the definition given in 
 30.7   section 477A.011, subdivision 3.  A county that participates in 
 30.8   a multicounty district that manages solid waste and that has 
 30.9   responsibility for recycling programs as authorized in section 
 30.10  115A.552, must pass through to the districts funds received by 
 30.11  the county in excess of the $55,000 annual base minimum county 
 30.12  payment under this section in proportion to the population of 
 30.13  the county served by that district. 
 30.14     [EFFECTIVE DATE.] This section is effective the day 
 30.15  following final enactment. 
 30.16     Sec. 3.  Minnesota Statutes 2000, section 115A.96, 
 30.17  subdivision 2, is amended to read: 
 30.18     Subd. 2.  [MANAGEMENT PROGRAM.] The agency office shall 
 30.19  establish a statewide program to manage household hazardous 
 30.20  wastes.  The program must include: 
 30.21     (1) the establishment and operation of collection sites; 
 30.22  and 
 30.23     (2) the provision of information, education, and technical 
 30.24  assistance regarding proper management of household hazardous 
 30.25  wastes. 
 30.26     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
 30.27     Sec. 4.  Minnesota Statutes 2000, section 115A.96, 
 30.28  subdivision 3, is amended to read: 
 30.29     Subd. 3.  [OTHER PARTICIPANTS.] (a) The agency office may 
 30.30  establish or operate all or part of the management program or 
 30.31  may provide for services by contract or other agreement with 
 30.32  public or private entities.  
 30.33     (b) The agency office shall allow these programs to accept 
 30.34  up to 100 pounds of waste per year from a hazardous waste 
 30.35  generator that generates 220 pounds or less of hazardous waste 
 30.36  per month.  
 31.1      [EFFECTIVE DATE.] This section is effective July 1, 2003. 
 31.2      Sec. 5.  Minnesota Statutes 2000, section 115A.96, 
 31.3   subdivision 4, is amended to read: 
 31.4      Subd. 4.  [MANAGEMENT.] Any person who establishes or 
 31.5   operates all or part of a household hazardous waste management 
 31.6   program shall manage collected waste in compliance with 
 31.7   standards applicable to a hazardous waste generator.  If 
 31.8   collected waste must be stored for a time exceeding those 
 31.9   standards, the agency office or other entity shall obtain the 
 31.10  approval of the commissioner of the agency and shall manage the 
 31.11  waste in compliance with applicable standards for the use and 
 31.12  management of containers, but no facility permit is required.  
 31.13  Waste accepted under subdivision 3, paragraph (b), must be 
 31.14  managed in accordance with standards applicable to the waste.  
 31.15     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
 31.16     Sec. 6.  Minnesota Statutes 2000, section 115A.96, 
 31.17  subdivision 5, is amended to read: 
 31.18     Subd. 5.  [OTHER PROGRAMS.] A person must notify the 
 31.19  commissioner of the agency and director of the office before 
 31.20  establishing and operating any part of a household hazardous 
 31.21  waste management program. 
 31.22     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
 31.23     Sec. 7.  Minnesota Statutes 2000, section 115A.96, 
 31.24  subdivision 7, as added by Laws 2002, chapter 265, section 2, is 
 31.25  amended to read: 
 31.26     Subd. 7.  [INDEMNIFICATION; MUNICIPALITIES.] (a) A 
 31.27  municipality, when operating or participating in a household 
 31.28  hazardous waste management program pursuant to a contract with 
 31.29  the agency office under this section or other law, is an 
 31.30  employee of the state, certified to be acting within the scope 
 31.31  of employment, for purposes of the indemnification provisions of 
 31.32  section 3.736, subdivision 9, for claims that arise out of the 
 31.33  transportation, management, or disposal of any waste covered by 
 31.34  the contract:  
 31.35     (1) from and after the time the waste permanently leaves 
 31.36  the municipality's possession and comes into the possession of 
 32.1   the agency's office's authorized transporter; and 
 32.2      (2) during the time the waste is transported between the 
 32.3   municipality's facilities by the agency's office's authorized 
 32.4   transporter. 
 32.5      (b) The state is not obligated to defend or indemnify a 
 32.6   municipality under this subdivision to the extent of the 
 32.7   municipality's liability insurance.  The municipality's right to 
 32.8   indemnity is not a waiver of the limitations, defenses, and 
 32.9   immunities available to either the municipality or the state by 
 32.10  law. 
 32.11     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
 32.12     Sec. 8.  Laws 2002, chapter 220, article 8, section 15, is 
 32.13  amended to read: 
 32.14     Sec. 15.  [INCREASE TO WATER QUALITY PERMIT FEES.] 
 32.15     (a) The pollution control agency shall collect water 
 32.16  quality permit application and annual fees that reflect the fees 
 32.17  in Minnesota Rules, part 7002.0310, increased to the amounts 
 32.18  described in paragraphs (b) to (g). 
 32.19     (b) The application fee for individual permits, general 
 32.20  permits, and general industrial stormwater permits is $240. 
 32.21     (c) The annual fees for individual National Pollutant 
 32.22  Discharge Elimination System permits for major municipal 
 32.23  facilities are as follows: 
 32.24        Design Flow in  
 32.25        Million Gallons Per Day           Annual Fee
 32.27          50 and over                      $175,750 $175,500
 32.28          20 to 49.99                       $40,350
 32.29           5 to 19.99                       $14,350
 32.30           Up to 4.99                        $5,900
 32.31     (d) The annual fees for individual National Pollutant 
 32.32  Discharge Elimination System permits for major nonmunicipal 
 32.33  facilities are as follows: 
 32.34        Design Flow in  
 32.35        Million Gallons Per Day           Annual Fee 
 32.37          20 to 49.99                       $44,200
 32.38           5 to 19.99                       $18,250
 32.39           Up to 4.99                        $8,450
 32.40          Cooling or mine pit 
 32.41          dewatering (any flow)             $16,900
 32.42     (e) The annual fees for individual National Pollutant 
 33.1   Discharge Elimination System and State Disposal System permits 
 33.2   for nonmajor municipal facilities with design flows greater than 
 33.3   0.100 million gallons per day are $1,450. 
 33.4      (f) The annual fees for general industrial stormwater 
 33.5   permits are $280. 
 33.6      (g) The annual fees for general National Pollutant 
 33.7   Discharge Elimination System and State Disposal System permits 
 33.8   are $345. 
 33.9      (h) The application and annual fees are not increased for 
 33.10  general construction stormwater permits and sanitary sewer 
 33.11  extension permits.  The annual fees are not increased for 
 33.12  National Pollutant Discharge Elimination System and State 
 33.13  Disposal System permits regulating municipal nonmajors with 
 33.14  facility design flow of 0 to .100, sewage sludge landspreading 
 33.15  facilities, and nonmajor nonmunicipal facilities. 
 33.16     (i) The increased permit fees are effective July 1, 2002.  
 33.17  The agency shall adopt amended water quality permit fee rules 
 33.18  incorporating the permit fee increases in this subdivision under 
 33.19  Minnesota Statutes, section 14.389.  The pollution control 
 33.20  agency shall begin collecting the increased permit fees on July 
 33.21  1, 2002, even if the rule adoption process has not been 
 33.22  initiated or completed.  Notwithstanding Minnesota Statutes, 
 33.23  section 14.18, subdivision 2, the increased permit fees 
 33.24  reflecting the permit fee increases in this section and the rule 
 33.25  amendments incorporating those permit fee increases do not 
 33.26  require further legislative approval. 
 33.27     [EFFECTIVE DATE.] This section is effective the day 
 33.28  following final enactment. 
 33.29     Sec. 9.  [HOUSEHOLD HAZARDOUS WASTE PROGRAM TRANSFER.] 
 33.30     Responsibility for the household hazardous waste program is 
 33.31  transferred under Minnesota Statutes, section 15.039, from the 
 33.32  pollution control agency to the office of environmental 
 33.33  assistance on July 1, 2003.  The amount of base funding to be 
 33.34  transferred is $1,041,000 from the solid waste fund. 
 33.35     Sec. 10.  [DIRECTOR OF THE OFFICE OF ENVIRONMENTAL 
 33.36  ASSISTANCE; APPOINTING AUTHORITY.] 
 34.1      The governor is encouraged to evaluate the advantages and 
 34.2   disadvantages associated with making the governor the appointing 
 34.3   authority for the director of environmental assistance, instead 
 34.4   of the commissioner of the pollution control agency as required 
 34.5   by Minnesota Statutes, section 115A.055, subdivision 1. 
 34.6      [EFFECTIVE DATE.] This section is effective the day 
 34.7   following final enactment. 
 34.8                              ARTICLE 7 
 34.9                           STATE GOVERNMENT  
 34.10  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
 34.11     The dollar amounts in the columns under "APPROPRIATIONS" 
 34.12  are added to or, if shown in parentheses, are subtracted from 
 34.13  the appropriations in Laws 2001, First Special Session chapter 
 34.14  10, or other law to the specified agencies.  The appropriations 
 34.15  are from the general fund or other named fund and are available 
 34.16  for the fiscal years indicated for each purpose.  The figure 
 34.17  "2002" or "2003" means that the addition to or subtraction from 
 34.18  the appropriations listed under the figure are for the fiscal 
 34.19  year ending June 30, 2002, or June 30, 2003, respectively. 
 34.20                          SUMMARY BY FUND 
 34.21                            2002          2003           TOTAL
 34.22  APPROPRIATIONS
 34.23  General            $   (2,995,000) $  (1,620,000)$   (4,615,000)
 34.24  TRANSFERS IN           (2,000,000)         -0-       (2,000,000)
 34.25                                             APPROPRIATIONS 
 34.26                                         Available for the Year 
 34.27                                             Ending June 30 
 34.28                                            2002         2003 
 34.29  Sec. 2.  LEGISLATURE          
 34.30  Subdivision 1.  Total           
 34.31  Appropriation                         (3,000,000)    (2,000,000)
 34.32  Subd. 2.  Senate             
 34.33      (1,000,000)    (1,000,000)
 34.34  Subd. 3.  House of Representatives 
 34.35      (2,000,000)    (1,000,000)
 34.36  $1,000,000 of the reduction in the 
 34.37  first year is from amounts previously 
 34.38  carried forward under Minnesota 
 34.39  Statutes, section 16A.281. 
 35.1   Sec. 3.  GOVERNOR                          -0-          375,000 
 35.2   $200,000 is to the office of the 
 35.3   governor to reopen the governor's 
 35.4   residence and make it available for 
 35.5   public use. 
 35.6   $175,000 is to the commissioner of 
 35.7   public safety to provide security at 
 35.8   the governor's residence. 
 35.9   Sec. 4.  ADMINISTRATION
 35.10  $2,000,000 of the balance in the State 
 35.11  Building Code account in the state 
 35.12  government special revenue fund as of 
 35.13  June 30, 2002, is canceled and must be 
 35.14  transferred to the general fund. 
 35.15  Sec. 5.  UNIFORM LAWS COMMISSION           5,000          5,000 
 35.16  These appropriations are added to the 
 35.17  appropriations in Laws 2001, First 
 35.18  Special Session chapter 8, article 4, 
 35.19  section 8. 
 35.20     Sec. 6.  Minnesota Statutes 2000, section 16A.28, 
 35.21  subdivision 6, is amended to read: 
 35.22     Subd. 6.  [CANCELED OCTOBER 15.] On October 15 all 
 35.23  allotments and encumbrances for the last fiscal year shall be 
 35.24  canceled unless an agency head certifies to the commissioner 
 35.25  that there is an encumbrance for services rendered or, goods 
 35.26  ordered, or grants issued in the last fiscal year, or certifies 
 35.27  that funding will be carried forward under subdivision 
 35.28  1.  Encumbrances for grants issued by June 30 may be certified 
 35.29  for a period of one year beyond the year in which the funds were 
 35.30  originally appropriated.  Services rendered under grant 
 35.31  contracts may occur during the certification period.  The 
 35.32  commissioner may: reinstate the part of the cancellation needed 
 35.33  to meet the certified encumbrance or charge the certified 
 35.34  encumbrance against the current year's appropriation. 
 35.35     Sec. 7.  Minnesota Statutes 2000, section 16B.27, is 
 35.36  amended by adding a subdivision to read: 
 35.37     Subd. 6.  [USE BY NONSTATE ENTITIES.] A nonstate entity 
 35.38  using the governor's residence must pay the state for all direct 
 35.39  and indirect costs associated with use of the facility. 
 35.40     Sec. 8.  Laws 1997, chapter 202, article 2, section 61, as 
 35.41  amended by Laws 1999, chapter 250, article 1, section 106, and 
 35.42  Laws 2001, First Special Session chapter 10, article 2, section 
 36.1   85, is amended to read: 
 36.2      Sec. 61.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
 36.3      Appointing authorities in state government may allow each 
 36.4   employee to take an unpaid leave of absence for up to 320 hours 
 36.5   during the period ending June 30, 2003, and an additional 160 
 36.6   hours during the period beginning July 1, 2003, and ending June 
 36.7   30, 2005.  Each appointing authority approving such a leave 
 36.8   shall allow the employee to continue accruing vacation and sick 
 36.9   leave, be eligible for paid holidays and insurance benefits, 
 36.10  accrue seniority, and accrue service credit in state retirement 
 36.11  plans permitting service credits for authorized leaves of 
 36.12  absence as if the employee had actually been employed during the 
 36.13  time of the leave.  If the leave of absence is for one full pay 
 36.14  period or longer, any holiday pay shall be included in the first 
 36.15  payroll warrant after return from the leave of absence.  The 
 36.16  appointing authority shall attempt to grant requests for unpaid 
 36.17  leaves of absence consistent with the need to continue efficient 
 36.18  operation of the agency.  However, each appointing authority 
 36.19  shall retain discretion to grant or refuse to grant requests for 
 36.20  leaves of absence and to schedule and cancel leaves, subject to 
 36.21  applicable provisions of collective bargaining agreements and 
 36.22  compensation plans. 
 36.23     Sec. 9.  Laws 2002, chapter 220, article 10, section 4, is 
 36.24  amended to read: 
 36.25  Sec. 4.  GOVERNOR'S OFFICE              (460,000)      (702,000)
 36.26  No funding may be used for the 
 36.27  operation of the Washington, D.C., 
 36.28  office of the state of Minnesota. 
 36.29     Sec. 10.  Laws 2002, chapter 220, article 10, section 36, 
 36.30  is amended to read: 
 36.31     Sec. 36.  [REDUCTION IN CONTRACT EXPENDITURES.] 
 36.32     During the biennium ending June 30, 2003, the governor must 
 36.33  reduce planned executive branch state agency general fund 
 36.34  expenditures on contracts for professional or technical services 
 36.35  by at least $35,000,000 $28,300,000.  The governor must allocate 
 36.36  this reduction among executive branch state agencies.  If the 
 36.37  governor determines that the mandated contract savings cannot be 
 37.1   achieved, the governor must make proportional reductions to 
 37.2   executive agency operating budgets in order to achieve the 
 37.3   savings.  For purposes of this section and section 37, 
 37.4   "professional or technical services" has the meaning given in 
 37.5   Minnesota Statutes, section 16C.08, subdivision 1; and 
 37.6   "executive branch state agency" has the meaning given in 
 37.7   Minnesota Statutes, section 16A.011, subdivision 12a, and 
 37.8   includes but does not include the Minnesota state colleges and 
 37.9   universities or the higher education services office.  The base 
 37.10  for these reductions is the amount allocated for professional or 
 37.11  technical service contracts in agency spending plans as of 
 37.12  January 1, 2002.  
 37.13     Sec. 11.  Laws 2002, chapter 220, article 10, section 37, 
 37.14  as amended by Laws 2002, chapter 364, section 30, is amended to 
 37.15  read: 
 37.16     Sec. 37.  [MORATORIUM ON CONSULTANT CONTRACTS.] 
 37.17     (a) An entity in the executive branch of state government, 
 37.18  including other than the Minnesota state colleges and 
 37.19  universities or the higher education services office, may not 
 37.20  enter into a new contract or renew an existing contract for 
 37.21  professional or technical services after the effective date of 
 37.22  this section and before July 1, 2003.  This section does not 
 37.23  apply to a contract: 
 37.24     (1) that relates to a threat to public health, welfare, or 
 37.25  safety that threatens the functioning of government, the 
 37.26  protection of property, or the health or safety of people; 
 37.27     (2) that is paid for entirely with federal funds received 
 37.28  before the effective date of this section or the cost of which 
 37.29  is entirely recovered from nonstate entities; 
 37.30     (3) that is paid entirely with funds from the state 
 37.31  airports fund, trunk highway fund, county state-aid highway 
 37.32  fund, or municipal state-aid street fund; or 
 37.33     (4) for a trunk highway project of a type described in Laws 
 37.34  2000, chapter 479, article 1, section 2, subdivision 3, 
 37.35  paragraph (a), clauses (1) to (3); or 
 37.36     (5) that is necessary to avoid a disruption of essential 
 38.1   state functions, will reduce state costs, or is necessary to 
 38.2   avoid a legal liability. 
 38.3      (b) An entity in the executive branch may apply for a 
 38.4   waiver of the moratorium by sending a letter with reasons for 
 38.5   the request to the commissioner of administration for executive 
 38.6   branch entities governor.  Upon a finding that a consultant 
 38.7   contract is necessary, the commissioner governor may grant a 
 38.8   waiver.  The decision of the commissioner is final and not 
 38.9   subject to appeal.  A monthly report of all exceptions granted 
 38.10  under paragraph (a) and all waivers granted must be filed by the 
 38.11  entity granting the waiver.  The report must be published on the 
 38.12  entity's a state Web site, and copies must be provided to the 
 38.13  chairs of the house ways and means and senate finance committees 
 38.14  and to the legislative reference library. 
 38.15     Sec. 12.  Laws 2002, chapter 220, article 10, section 38, 
 38.16  subdivision 2, is amended to read: 
 38.17     Subd. 2.  [EXCEPTIONS.] Subdivision 1 does not apply to: 
 38.18     (1) an employee at a state correctional facility; 
 38.19     (2) an employee of the department of corrections who 
 38.20  provides direct services to offenders; 
 38.21     (3) an employee of state-operated services under the 
 38.22  department of human services; 
 38.23     (4) a student in a work-study position worker; or 
 38.24     (2) (5) a position that is necessary to perform essential 
 38.25  government services; or 
 38.26     (6) an employee who is paid entirely with federal funds or 
 38.27  a special revenue fund, or whose costs are entirely recovered 
 38.28  from nonstate entities, or a combination of them. 
 38.29     A determination under clause (2) (5) must be made by the 
 38.30  speaker of the house of representatives with respect to house 
 38.31  employees, the chair of the committee on rules and 
 38.32  administration with respect to senate employees, and the 
 38.33  legislative coordinating commission with respect to its 
 38.34  employees, by a constitutional officer with respect to employees 
 38.35  of the constitutional office, and by the governor with respect 
 38.36  to any other employee covered by this section.  Exceptions 
 39.1   granted under clause (2) (5) must be reported monthly by the 
 39.2   entity granting the exception.  The reports must be published on 
 39.3   the entity's Web site, and copies must be provided to the chairs 
 39.4   of the house ways and means and senate finance committees and to 
 39.5   the legislative reference library.  
 39.6      Sec. 13.  Laws 2002, chapter 220, article 10, section 38, 
 39.7   subdivision 3, is amended to read: 
 39.8      Subd. 3.  [ANTICIPATED SAVINGS.] The legislature 
 39.9   anticipates that application of this section to executive branch 
 39.10  agencies and to the Minnesota state colleges and universities 
 39.11  will result in savings to the general fund of 
 39.12  $40,000,000 $29,736,000 by June 30, 2003.  If the governor 
 39.13  determines that application of this section will not result 
 39.14  in $40,000,000 $29,736,000 in savings to the general fund by 
 39.15  June 30, 2003, the governor must make proportional reductions in 
 39.16  executive agency operating budgets necessary to achieve these 
 39.17  savings.  If the governor makes proportional reductions to 
 39.18  executive agency operating budgets to achieve the required 
 39.19  savings, the governor shall exclude from the reductions: 
 39.20     (1) the department of corrections with respect to employees 
 39.21  at state correctional institutions or who provide direct 
 39.22  services to offenders; and 
 39.23     (2) the department of human services with respect to 
 39.24  state-operated services. 
 39.25     Sec. 14.  Laws 2002, chapter 220, article 10, section 39, 
 39.26  is amended to read: 
 39.27     Sec. 39.  [SAVINGS ARE ADDITIONAL.] 
 39.28     Savings achieved in sections 36 to 38 from the freeze in 
 39.29  state hiring or the reduction in the number of state contracts 
 39.30  for professional or technical services are in addition to 
 39.31  reductions in spending required by other sections of this 
 39.32  article act. 
 39.33     Sec. 15.  [NONPROFIT GRANT AND CONTRACT DECISIONS.] 
 39.34     Subdivision 1.  [FISCAL YEAR 2002 PROCESSING.] (a) This 
 39.35  subdivision applies when: 
 39.36     (1) a state agency has delayed its final decision on 
 40.1   whether to enter into a grant or contract with a nonprofit 
 40.2   corporation to spend money appropriated for the fiscal year 
 40.3   ending June 30, 2002, pending elimination of the state budget 
 40.4   deficit; and 
 40.5      (2) the nonprofit corporation has provided services based 
 40.6   on an appropriation that names the nonprofit corporation or 
 40.7   based on a grant award letter from a state agency to the 
 40.8   nonprofit corporation.  
 40.9      (b) In a circumstance described in paragraph (a), within 15 
 40.10  business days after final enactment of this act the state agency 
 40.11  must: 
 40.12     (1) process the grant or contract with the nonprofit 
 40.13  corporation; and 
 40.14     (2) issue payment to the nonprofit corporation for services 
 40.15  already provided. 
 40.16     Subd. 2.  [FISCAL YEAR 2002 RETROACTIVITY.] A contract 
 40.17  encumbered or a grant awarded by a state agency to a nonprofit 
 40.18  corporation for services rendered in the fiscal year ending June 
 40.19  30, 2002, is retroactive to the date that services were first 
 40.20  provided under the contract or grant. 
 40.21     Subd. 3.  [FISCAL YEAR 2003.] A contract encumbered or a 
 40.22  grant awarded by a state agency to a nonprofit corporation for 
 40.23  services rendered in the fiscal year ending June 30, 2003, is 
 40.24  retroactive to the date that services were first provided under 
 40.25  the contract or grant. 
 40.26     Sec. 16.  [VOTING EQUIPMENT GRANTS.] 
 40.27     Within 30 days after the effective date of this section, 
 40.28  the commissioner of administration must make voting equipment 
 40.29  grants authorized by Minnesota Statutes 2001 Supplement, section 
 40.30  204B.48, to the full extent of appropriations available for 
 40.31  these grants under Laws 2001, First Special Session chapter 10, 
 40.32  article 1, section 12, subdivision 7, as amended by Laws 2002, 
 40.33  chapter 220, article 10, section 10, subdivision 8. 
 40.34     Sec. 17.  [EFFECTIVE DATE.] 
 40.35     This article is effective the day following final enactment.
 40.36                             ARTICLE 8
 41.1                CANCELLATIONS; CASH FLOW; TRANSFERS IN
 41.2      Section 1.  Minnesota Statutes 2001 Supplement, section 
 41.3   62J.694, subdivision 1, is amended to read: 
 41.4      Subdivision 1.  [CREATION.] (a) The medical education 
 41.5   endowment fund is created in the state treasury.  The state 
 41.6   board of investment shall invest the fund under section 11A.24.  
 41.7   All earnings of the fund must be credited to the fund.  The 
 41.8   principal of the fund must be maintained inviolate, except that 
 41.9   the principal may be used to make expenditures from the fund for 
 41.10  the purposes specified in this section when the market value of 
 41.11  the fund falls below 105 percent of the cumulative total of the 
 41.12  tobacco settlement payments received by the state and credited 
 41.13  to the tobacco settlement fund under section 16A.87, subdivision 
 41.14  2.  For purposes of this section, "principal" means an amount 
 41.15  equal to the cumulative total of the tobacco settlement payments 
 41.16  received by the state and credited to the tobacco settlement 
 41.17  fund under section 16A.87, subdivision 2.  
 41.18     (b) If the commissioner of finance determines that probable 
 41.19  receipts to the general fund will be sufficient to meet the need 
 41.20  for expenditures from the general fund for a fiscal biennium, 
 41.21  after using the cash reserves of the tobacco use prevention and 
 41.22  local public health endowment fund, excluding an amount 
 41.23  sufficient to meet the annual appropriations in section 144.395, 
 41.24  subdivision 2, the commissioner may use cash reserves of the 
 41.25  medical education endowment fund, excluding the amounts needed 
 41.26  to meet the appropriations described in subdivisions 2 and 2a, 
 41.27  to pay expenses of the general fund.  If cash reserves are 
 41.28  transferred to the general fund to meet cash flow needs, the 
 41.29  amount transferred, plus interest at a rate comparable to the 
 41.30  rate earned by the state on invested treasurer's cash, as 
 41.31  determined monthly by the commissioner, must be returned to the 
 41.32  endowment fund as soon as sufficient cash balances are available 
 41.33  in the general fund, but in any event before the end of the 
 41.34  fiscal biennium.  An amount necessary to pay the interest is 
 41.35  appropriated from the general fund.  If cash reserves of the 
 41.36  endowment fund are used to pay expenses for the general fund, 
 42.1   notwithstanding subdivision 2, paragraph (d), the academic 
 42.2   health center shall be held harmless to the extent possible.  
 42.3   When determining the fair market value of the fund, for the 
 42.4   purposes described in subdivisions 2 and 2a, the value of the 
 42.5   cash reserves transferred to the general fund must be included 
 42.6   in the determination.  
 42.7      (c) The academic health center account is created as a 
 42.8   separate account in the medical education endowment fund.  The 
 42.9   account is invested under paragraph (a).  All earnings of the 
 42.10  account must be credited to the account.  The principal of the 
 42.11  account must be maintained inviolate, except that the principal 
 42.12  may be used to make expenditures from the account for the 
 42.13  purposes specified in subdivision 2a when the value of the 
 42.14  account falls below an amount equal to deposits made to the 
 42.15  account under section 16A.87, subdivision 3, paragraph (b). 
 42.16     Sec. 2.  Minnesota Statutes 2000, section 79.251, 
 42.17  subdivision 1, is amended to read: 
 42.18     Subdivision 1.  [ASSIGNED RISK PLAN REVIEW BOARD.] (a) (1) 
 42.19  An assigned risk plan review board is created for the purposes 
 42.20  of review of the operation of section 79.252 and this section.  
 42.21  The board shall have all the usual powers and authorities 
 42.22  necessary for the discharge of its duties under this section and 
 42.23  may contract with individuals in discharge of those duties.  
 42.24     (2) The board shall consist of six members to be appointed 
 42.25  by the commissioner of commerce.  Three members shall be 
 42.26  insureds holding policies or contracts of coverage issued 
 42.27  pursuant to subdivision 4.  Two members shall be insurers 
 42.28  licensed pursuant to section 60A.06, subdivision 1, clause (5), 
 42.29  paragraph (b).  The commissioner shall be the sixth member and 
 42.30  shall vote. 
 42.31     Initial appointments shall be made by September 1, 1981, 
 42.32  and terms shall be for three years duration.  Removal, the 
 42.33  filling of vacancies and compensation of the members other than 
 42.34  the commissioner shall be as provided in section 15.059.  
 42.35     (3) The assigned risk plan review board shall audit the 
 42.36  reserves established (a) for individual cases arising under 
 43.1   policies and contracts of coverage issued under subdivision 4 
 43.2   and (b) for the total book of business issued under subdivision 
 43.3   4.  If the board determines on the basis of an audit that there 
 43.4   is an excess surplus in the assigned risk plan, it must notify 
 43.5   the commissioner of finance who shall transfer assets of the 
 43.6   plan equal to the excess surplus to the budget reserve account 
 43.7   in the general fund. 
 43.8      (4) The assigned risk plan review board shall monitor the 
 43.9   operations of section 79.252 and this section and shall 
 43.10  periodically make recommendations to the commissioner, and to 
 43.11  the governor and legislature when appropriate, for improvement 
 43.12  in the operation of those sections.  
 43.13     (5) All insurers and self-insurance administrators issuing 
 43.14  policies or contracts under subdivision 4 shall pay to the 
 43.15  commissioner a .25 percent assessment on premiums for policies 
 43.16  and contracts of coverage issued under subdivision 4 for the 
 43.17  purpose of defraying the costs of the assigned risk plan review 
 43.18  board.  Proceeds of the assessment shall be deposited in the 
 43.19  state treasury and credited to the general fund. 
 43.20     (6) The assigned risk plan and the assigned risk plan 
 43.21  review board shall not be deemed a state agency.  
 43.22     (b) As used in this subdivision, "excess surplus" means the 
 43.23  amount of assigned risk plan assets in excess of the amount 
 43.24  needed to pay all current liabilities of the plan, including, 
 43.25  but not limited to: 
 43.26     (1) administrative expenses; 
 43.27     (2) benefit claims; and 
 43.28     (3) if the assigned risk plan is dissolved under 
 43.29  subdivision 8, the amounts that would be due insurers who have 
 43.30  paid assessments to the plan. 
 43.31     Sec. 3.  Minnesota Statutes 2000, section 144.395, 
 43.32  subdivision 1, as amended by Laws 2002, chapter 220, article 13, 
 43.33  section 6, is amended to read: 
 43.34     Subdivision 1.  [CREATION.] (a) The tobacco use prevention 
 43.35  and local public health endowment fund is created in the state 
 43.36  treasury.  The state board of investment shall invest the fund 
 44.1   under section 11A.24.  All earnings of the fund must be credited 
 44.2   to the fund.  The principal of the fund must be maintained 
 44.3   inviolate, except that the principal may be used to make 
 44.4   expenditures from the fund for the purposes specified in this 
 44.5   section when the market value of the fund falls below 105 
 44.6   percent of the cumulative total of the tobacco settlement 
 44.7   payments received by the state and credited to the tobacco 
 44.8   settlement fund under section 16A.87, subdivision 2.  For 
 44.9   purposes of this section, "principal" means an amount equal to 
 44.10  the cumulative total of the tobacco settlement payments received 
 44.11  by the state and credited to the tobacco settlement fund under 
 44.12  section 16A.87, subdivision 2.  
 44.13     (b) If the commissioner of finance determines that probable 
 44.14  receipts to the general fund will not be sufficient to meet the 
 44.15  need for expenditures from the general fund for a fiscal 
 44.16  biennium, the commissioner may use cash reserves of the tobacco 
 44.17  use prevention and local public health endowment fund, excluding 
 44.18  an amount sufficient to meet the annual appropriations in 
 44.19  subdivision 2, to pay expenses of the general fund.  If cash 
 44.20  reserves are transferred to the general fund to meet cash flow 
 44.21  needs, the cash flow transfers amount transferred, plus interest 
 44.22  at a rate comparable to the rate earned by the state on invested 
 44.23  treasurer's cash, as determined monthly by the commissioner, 
 44.24  must be returned to the endowment fund as soon as sufficient 
 44.25  cash balances are available in the general fund, but in any 
 44.26  event before the end of the fiscal biennium.  Any interest 
 44.27  earned on cash flow transfers from the endowment fund accrues to 
 44.28  the endowment fund and not to the general fund.  An amount 
 44.29  necessary to pay the interest is appropriated from the general 
 44.30  fund.  If cash reserves of the endowment fund are used to pay 
 44.31  expenses for the general fund, the recipients of the grants 
 44.32  shall be held harmless to the extent possible in the following 
 44.33  order:  (1) local public health; (2) local tobacco prevention; 
 44.34  and (3) statewide tobacco prevention.  When determining the fair 
 44.35  market value of the fund, for the purposes described in 
 44.36  subdivision 2, the value of the cash reserves transferred to the 
 45.1   general fund must be included in the determination.  
 45.2      Sec. 4.  Laws 2002, chapter 220, article 13, section 7, is 
 45.3   amended to read: 
 45.4      Sec. 7.  [BALANCES CANCELED TO GENERAL FUND.] 
 45.5      The unobligated balances in the following general fund 
 45.6   accounts created in the sections of Minnesota Statutes indicated 
 45.7   are canceled to the general fund in the fiscal years indicated: 
 45.8      (1) the budget reserve account, Minnesota Statutes, section 
 45.9   16A.152, subdivision 1a, estimated to be $653,000,000, in fiscal 
 45.10  year 2002; 
 45.11     (2) the local government aid reform account, Minnesota 
 45.12  Statutes, section 16A.1523, estimated to be $14,000,000, in 
 45.13  fiscal year 2003; 
 45.14     (3) the tax relief account, Minnesota Statutes, section 
 45.15  16A.1522, subdivision 4, estimated to be $158,148,000, in fiscal 
 45.16  year 2004 2003; and 
 45.17     (4) $195,000,000 $350,000,000 of the unobligated balance in 
 45.18  the cash flow account in Minnesota Statutes, section 16A.152, 
 45.19  subdivision 1. 
 45.20     Sec. 5.  Laws 2002, chapter 220, article 13, section 9, 
 45.21  subdivision 1, is amended to read: 
 45.22     Subdivision 1.  [ASSIGNED RISK PLAN.] By June 30, 2002, the 
 45.23  commissioner of finance shall transfer $120,000,000 $134,000,000 
 45.24  in assets of the assigned risk plan created under Minnesota 
 45.25  Statutes, section 79.252, to the general fund.  $25,100,000 is 
 45.26  appropriated from the general fund to the commissioner of 
 45.27  finance to fund the settlement of the lawsuit entitled Danny's 
 45.28  Trannys, Inc. et al. v. State, et al., Ramsey County District 
 45.29  Court No. C7-00-5714, and to reimburse the tort claims account 
 45.30  for amounts paid to implement settlement of this lawsuit. 
 45.31     Sec. 6.  Laws 2002, chapter 220, article 13, section 9, 
 45.32  subdivision 2, is amended to read: 
 45.33     Subd. 2.  [SPECIAL COMPENSATION FUND.] After June 1, 2003, 
 45.34  but no later than June 30, 2003, the commissioner of finance 
 45.35  shall transfer $230,000,000 $250,000,000 in assets of the excess 
 45.36  surplus account of the special compensation fund created under 
 46.1   Minnesota Statutes, section 176.129, to the general fund. 
 46.2      Sec. 7.  [BALANCES DEPOSITED IN BUDGET RESERVE.] 
 46.3      Notwithstanding Minnesota Statutes, section 16A.1522, any 
 46.4   positive unrestricted general fund balance on June 30, 2003, 
 46.5   must be allocated to the budget reserve account in the general 
 46.6   fund. 
 46.7      Sec. 8.  [EFFECTIVE DATE.] 
 46.8      This article is effective the day following final 
 46.9   enactment, except that section 2 is effective January 1, 2003, 
 46.10  and sections 1 and 3 are effective July 1, 2003. 
 46.11                             ARTICLE 9
 46.12              HEALTH AND HUMAN SERVICES APPROPRIATIONS 
 46.13  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
 46.14     The dollar amounts shown in the columns marked 
 46.15  "APPROPRIATIONS" are added to or, if shown in parentheses, are 
 46.16  subtracted from the appropriations in Laws 2001, First Special 
 46.17  Session chapter 9, and Laws 2002, chapter 220, or other law, and 
 46.18  are appropriated from the general fund, or any other fund named, 
 46.19  to the agencies and for the purposes specified in this article, 
 46.20  to be available for the fiscal years indicated for each 
 46.21  purpose.  The figures "2002" and "2003" used in this article 
 46.22  mean that the appropriation or appropriations listed under them 
 46.23  are available for the fiscal year ending June 30, 2002, or June 
 46.24  30, 2003, respectively.  
 46.25                          SUMMARY BY FUND
 46.26                            2002          2003           TOTAL
 46.27  General  
 46.28  Forecast 
 46.29  Adjustments           $47,032,000    $26,019,000    $73,051,000
 46.30  Nonforecast             1,660,000    (26,554,000)   (24,894,000)
 46.31  Health Care
 46.32  Access                 (2,605,000)    (4,318,000)    (6,923,000)
 46.33  Federal TANF           (7,383,000)     8,896,000      1,513,000 
 46.34  State Government
 46.35  Special Revenue           -0-              4,000          4,000
 46.36                                             APPROPRIATIONS 
 46.37                                         Available for the Year 
 46.38                                             Ending June 30 
 46.39                                            2002         2003 
 47.1   Sec. 2.  COMMISSIONER OF
 47.2   HUMAN SERVICES
 47.3   Subdivision 1.  Total
 47.4   Appropriation                     $   38,704,000 $    3,143,000 
 47.5                 Summary by Fund
 47.6   General              48,692,000    (1,435,000)
 47.7   Health Care
 47.8   Access               (2,605,000)   (4,318,000)
 47.9   Federal TANF         (7,383,000)    8,896,000
 47.10  Subd. 2.  Children's
 47.11  Grants                   
 47.12  General                 -0-        (4,748,000)
 47.13  [FAMILY PRESERVATION AND CHILDREN'S 
 47.14  MENTAL HEALTH GRANTS.] This 
 47.15  appropriation includes a reduction of 
 47.16  $6,548,000 in family preservation and 
 47.17  children's mental health grants due to 
 47.18  changes in allocations and an increase 
 47.19  of $1,800,000 in local collaboratives 
 47.20  wraparound services coordination 
 47.21  grants.  The increased appropriation 
 47.22  for coordination grants shall become 
 47.23  part of base level funding for the 
 47.24  biennium beginning July 1, 2003. 
 47.25  Subd. 3.  Basic Health Care
 47.26  Grants
 47.27  General              10,999,000     6,126,000
 47.28  Health Care
 47.29  Access               (2,605,000)   (4,318,000)
 47.30  The amounts that may be spent from this 
 47.31  appropriation for each purpose are as 
 47.32  follows: 
 47.33  (a) MinnesotaCare Grants
 47.34  Health Care
 47.35  Access               (2,605,000)   (4,318,000)
 47.36  [MINNESOTACARE ELIGIBILITY 
 47.37  DETERMINATION CARRYOVER.] The 
 47.38  appropriation for the biennium 
 47.39  beginning July 1, 2001, in Laws 2001, 
 47.40  First Special Session chapter 9, 
 47.41  article 17, section 2, subdivision 7, 
 47.42  paragraph (b), for activities related 
 47.43  to processing MinnesotaCare 
 47.44  applications and determining applicant 
 47.45  eligibility shall not cancel but shall 
 47.46  be available until June 30, 2005.  
 47.47  (b) MA Basic Health Care
 47.48  Grants - Families and Children
 47.49  General               7,437,000    (5,285,000)
 47.50  (c) MA Basic Health Care
 47.51  Grants - Elderly and Disabled
 47.52  General                (779,000)    7,476,000
 48.1   (d) General Assistance
 48.2   Medical Care Grants
 48.3   General               2,681,000     5,080,000
 48.4   (e) Health Care Grants -
 48.5   Other Assistance
 48.6   General               1,660,000    (1,145,000)
 48.7   [U SPECIAL KIDS PROGRAM.] Of this 
 48.8   appropriation, $350,000 in fiscal year 
 48.9   2002 is immediately available to the 
 48.10  commissioner to be transferred 
 48.11  immediately to the University of 
 48.12  Minnesota for the U Special Kids 
 48.13  program.  The money may be used to 
 48.14  match private grants.  The money shall 
 48.15  be used to provide physician-supervised 
 48.16  medical case management services for up 
 48.17  to 50 Minnesota children in the program 
 48.18  who are eligible for medical 
 48.19  assistance.  Any unspent portion of 
 48.20  this appropriation shall not cancel but 
 48.21  shall be available for these purposes 
 48.22  until June 30, 2005.  This is a onetime 
 48.23  appropriation and shall not become part 
 48.24  of base level funding for the 2004-2005 
 48.25  biennium. 
 48.26  [HIV/AIDS DRUG REBATES.] For the fiscal 
 48.27  year ending June 30, 2003, $1,150,000 
 48.28  of the general fund appropriations for 
 48.29  HIV/AIDS grants and services that are 
 48.30  no longer needed as a result of greater 
 48.31  than anticipated collections under the 
 48.32  AIDS drug assistance program rebate 
 48.33  must be used to meet funding needs of 
 48.34  the state prescription drug program. 
 48.35  [ADAP FUNDING.] For the fiscal year 
 48.36  ending June 30, 2003, $1,150,000 from 
 48.37  the AIDS drug assistance program (ADAP) 
 48.38  rebate program shall be used to meet 
 48.39  the needs of the HIV/AIDS grants and 
 48.40  services program. 
 48.41  Subd. 4.  State-Operated
 48.42  Services
 48.43  General                   -0-      4,000,000 
 48.44  [STATE-OPERATED SERVICES DEDICATED 
 48.45  REVENUE ACCOUNTS.] The commissioner of 
 48.46  human services shall provide the chairs 
 48.47  of the house and senate health and 
 48.48  human services finance committees 
 48.49  copies of all dedicated revenue account 
 48.50  quarterly and annual financial 
 48.51  statements that are reviewed by the 
 48.52  state-operated services governing 
 48.53  board.  The annual financial statement 
 48.54  must include a summary of revenues, 
 48.55  expenditures, obligations, and cash 
 48.56  balances.  The description of cash 
 48.57  balances must specifically identify 
 48.58  cash balances included in funded 
 48.59  depreciation accounts and in cash flow 
 48.60  reserves for 120 days of operating 
 48.61  expense.  The annual financial 
 48.62  statement must clearly delineate any 
 49.1   amount of cash reserve that is in 
 49.2   excess of requirements for funded 
 49.3   depreciation and 120 days of operating 
 49.4   expense.  Quarterly financial 
 49.5   statements must be available to the 
 49.6   chairs within 30 days of the closing 
 49.7   date for that quarter.  The annual 
 49.8   financial statement must be available 
 49.9   by August 15 of each year.  
 49.10  [ONETIME APPROPRIATION.] Of the 
 49.11  appropriation for fiscal year 2003, 
 49.12  $4,000,000 is from the general fund to 
 49.13  the commissioner of human services for 
 49.14  state-operated services.  This is a 
 49.15  onetime appropriation and shall not 
 49.16  become part of base level funding.  
 49.17  [STATE-OPERATED SERVICES STUDY.] The 
 49.18  commissioner of human services, in 
 49.19  consultation with community 
 49.20  representatives, shall evaluate 
 49.21  strategies to consolidate the delivery 
 49.22  of state-operated services.  Strategies 
 49.23  shall be considered in the context of 
 49.24  other community-based services 
 49.25  options.  By January 15, 2003, the 
 49.26  commissioner shall provide 
 49.27  recommendations to the 2003 legislature 
 49.28  that result from this evaluation.  
 49.29  [ONETIME REDUCTION TO SHARED SERVICES 
 49.30  DEDICATED REVENUES.] For fiscal year 
 49.31  2003 only, $564,000 of fund balances 
 49.32  within the accounts established under 
 49.33  Minnesota Statutes, section 246.57, 
 49.34  subdivision 1, shall be transferred to 
 49.35  the general fund.  
 49.36  Subd. 5.  Continuing Care 
 49.37  Grants
 49.38  [FUNDING USAGE.] Up to 75 percent of 
 49.39  the fiscal year 2004 appropriations for 
 49.40  family preservation grants, 
 49.41  developmental disability 
 49.42  semi-independent living services, 
 49.43  developmental disability family 
 49.44  support, adult mental health grants, 
 49.45  and children's mental health grants may 
 49.46  be used to fund calendar year 2003 
 49.47  allocations for these programs, with 
 49.48  the resulting calendar year funding 
 49.49  pattern continuing into the future.  
 49.50  Appropriation reductions associated 
 49.51  with this shift are one time only.  
 49.52  General              27,896,000   (4,863,000)
 49.53  The amounts that may be spent from this 
 49.54  appropriation for each purpose are as 
 49.55  follows: 
 49.56  (a) Medical Assistance
 49.57  Long-Term Care Waivers and
 49.58  Home Care Grants
 49.59  General              26,054,000    26,552,000
 49.60  (b) Medical Assistance
 49.61  Long-Term Care Facilities
 50.1   Grants
 50.2   General               1,815,000      (736,000)
 50.3   (c) Group Residential
 50.4   Housing Grants
 50.5   General                  27,000       689,000
 50.6   (d) Chemical Dependency 
 50.7   Entitlement Grants
 50.8   General                  -0-       (1,000,000)
 50.9   [ADDITIONAL CONSOLIDATED CHEMICAL 
 50.10  DEPENDENCY TREATMENT FUND RESERVE 
 50.11  TRANSFER.] In addition to the amount 
 50.12  transferred in Laws 2002, chapter 220, 
 50.13  article 17, section 2, subdivision 6, 
 50.14  paragraph (e), an additional $7,000,000 
 50.15  of funds available in the consolidated 
 50.16  chemical dependency treatment fund 
 50.17  general reserve account is transferred 
 50.18  to the general fund in fiscal year 2003.
 50.19  (e) Community Social
 50.20  Service Grants         
 50.21  General                  -0-      (13,730,000)
 50.22  (f) Mental Health 
 50.23  Grants  
 50.24  General                  -0-      (13,635,000)
 50.25  This reduction is one time only. 
 50.26  (g) Community Support
 50.27  Grants 
 50.28  General                  -0-       (3,003,000)
 50.29  Subd. 6.  Economic
 50.30  Support Grants
 50.31  General               9,797,000    (1,950,000)
 50.32  Federal TANF         (7,383,000)    8,896,000
 50.33  The amounts that may be spent from the 
 50.34  appropriation for each purpose are as 
 50.35  follows: 
 50.36  (a) Assistance to Families
 50.37  Grants
 50.38  General               8,712,000    (3,740,000)
 50.39  Federal TANF         (7,383,000)    8,803,000
 50.40  [AUTHORITY TO CARRYFORWARD AUTHORIZED 
 50.41  TRANSFER.] The $11,000,000 in TANF 
 50.42  funds authorized for transfer to title 
 50.43  XX of the federal Social Security Act 
 50.44  grants in fiscal year 2003 by Laws 
 50.45  1999, chapter 245, article 1, section 
 50.46  2, subdivision 11, are available for 
 50.47  expenditure in fiscal year 2004. 
 50.48  (b) General Assistance
 50.49  Grants
 51.1   General               1,361,000     1,779,000
 51.2   (c) Economic Support - 
 51.3   Other Assistance
 51.4   Federal TANF            -0-            93,000
 51.5   [TANF TRANSFER TO THE DEPARTMENT OF 
 51.6   CHILDREN, FAMILIES, AND LEARNING.] Of 
 51.7   the TANF appropriation, $93,000 in 
 51.8   fiscal year 2003 is appropriated to the 
 51.9   commissioner of children, families, and 
 51.10  learning for the purposes of Minnesota 
 51.11  Statutes, section 119B.05.  The 
 51.12  commissioner of human services shall 
 51.13  authorize a sufficient transfer of 
 51.14  funds from the state's federal TANF 
 51.15  block grant to the state's federal 
 51.16  child care development fund block grant 
 51.17  to meet this appropriation. 
 51.18  (d) Minnesota Supplemental
 51.19  Aid Grants
 51.20  General                (276,000)       11,000
 51.21  Sec. 3.  COMMISSIONER OF HEALTH
 51.22  Subdivision 1.  Total Appropriation      -0-              4,000
 51.23                Summary by Fund
 51.24  State Government
 51.25  Special Revenue         -0-             4,000  
 51.26  Subd. 2.  Family and Provider 
 51.27  Compliance    
 51.28  State Government
 51.29  Special Revenue         -0-             4,000
 51.30  [REGISTRATION COSTS.] This 
 51.31  appropriation in fiscal year 2003 is to 
 51.32  the commissioner for the costs of 
 51.33  registering establishments under 
 51.34  Minnesota Statutes, section 144D.025. 
 51.35  Sec. 4.  VETERANS NURSING
 51.36  HOMES BOARD 
 51.37                Summary by Fund
 51.38  General                 -0-           900,000
 51.39  [DEFICIENCY APPROPRIATION.] The 
 51.40  appropriation to the veterans nursing 
 51.41  homes board for fiscal year 2003 is for 
 51.42  a deficiency in board operations.  This 
 51.43  is a onetime appropriation and shall 
 51.44  not become part of base level funding 
 51.45  for the 2004-2005 biennium. 
 51.46     Sec. 5.  [VETERANS NURSING HOMES BOARD FUNDING.] 
 51.47     (a) Notwithstanding Minnesota Statutes, section 16B.31, 
 51.48  subdivision 7, on July 1, 2002, the commissioner of 
 51.49  administration shall transfer to the veterans nursing homes 
 52.1   board any remaining portion of the payments received from 
 52.2   contractors for the mold damage at the Luverne facility. 
 52.3      (b) Notwithstanding the provisions of Minnesota Statutes, 
 52.4   section 16A.151, any payments made during fiscal year 2003 from 
 52.5   contractors to settle legal issues regarding the mold damage at 
 52.6   the Luverne facility are appropriated to the veterans nursing 
 52.7   homes board. 
 52.8      (c) Total appropriations to the veterans nursing homes 
 52.9   board under this section shall not exceed $500,000. 
 52.10     Sec. 6.  [EXEMPTIONS FROM REDUCTION IN CONTRACT 
 52.11  EXPENDITURES AND FROM HIRING FREEZE.] 
 52.12     For fiscal year 2003, the department of human services is 
 52.13  exempt from the hiring freeze established in Laws 2002, chapter 
 52.14  220, article 10, section 38, as amended by article 7, section 
 52.15  12, and the contract moratorium established in Laws 2002, 
 52.16  chapter 220, article 10, section 37, as amended by article 7, 
 52.17  section 11, and by Laws 2002, chapter 364, section 30, as it 
 52.18  relates to the establishment and implementation of a 
 52.19  supplemental drug rebate program.  
 52.20     Sec. 7.  [INCARCERATION REPORT.] 
 52.21     By February 1, 2003, the commissioner of corrections must 
 52.22  report to the chairs and ranking minority members of the house 
 52.23  of representatives and senate committees having jurisdiction 
 52.24  over criminal justice and judiciary finance divisions 
 52.25  alternatives for dealing with offenders who actually serve less 
 52.26  than one year in prison.  This report shall include capital and 
 52.27  operating costs, possible partnerships, renting beds from public 
 52.28  or private facilities, and current prison capacities.  
 52.29     Sec. 8.  [FISCAL 2003 TANF MAINTENANCE OF EFFORT.] 
 52.30     The commissioner of human services must ensure that the 
 52.31  maintenance of effort amount used in the MFIP forecast of 
 52.32  November 2002 and February 2003 is not less than $188,937,000 
 52.33  with respect to fiscal year 2003. 
 52.34     Sec. 9.  [SUNSET OF UNCODIFIED LANGUAGE.] 
 52.35     All uncodified language contained in this article expires 
 52.36  June 30, 2003, unless a different expiration date is explicit. 
 53.1      Sec. 10.  [EFFECTIVE DATE.] 
 53.2      Except as otherwise provided in this article, this article 
 53.3   is effective the day following final enactment. 
 53.4                              ARTICLE 10 
 53.5                      HEALTH AND HUMAN SERVICES 
 53.6      Section 1.  Minnesota Statutes 2000, section 13.05, 
 53.7   subdivision 4, is amended to read: 
 53.8      Subd. 4.  [LIMITATIONS ON COLLECTION AND USE OF DATA.] 
 53.9   Private or confidential data on an individual shall not be 
 53.10  collected, stored, used, or disseminated by political 
 53.11  subdivisions, statewide systems, or state agencies for any 
 53.12  purposes other than those stated to the individual at the time 
 53.13  of collection in accordance with section 13.04, except as 
 53.14  provided in this subdivision. 
 53.15     (a) Data collected prior to August 1, 1975, and which have 
 53.16  not been treated as public data, may be used, stored, and 
 53.17  disseminated for the purposes for which the data was originally 
 53.18  collected or for purposes which are specifically approved by the 
 53.19  commissioner as necessary to public health, safety, or welfare. 
 53.20     (b) Private or confidential data may be used and 
 53.21  disseminated to individuals or agencies specifically authorized 
 53.22  access to that data by state, local, or federal law enacted or 
 53.23  promulgated after the collection of the data. 
 53.24     (c) Private or confidential data may be used and 
 53.25  disseminated to individuals or agencies subsequent to the 
 53.26  collection of the data when the responsible authority 
 53.27  maintaining the data has requested approval for a new or 
 53.28  different use or dissemination of the data and that request has 
 53.29  been specifically approved by the commissioner as necessary to 
 53.30  carry out a function assigned by law. 
 53.31     (d) Private data may be used by and disseminated to any 
 53.32  person or agency if the individual subject or subjects of the 
 53.33  data have given their informed consent.  Whether a data subject 
 53.34  has given informed consent shall be determined by rules of the 
 53.35  commissioner.  Informed consent shall not be deemed to have been 
 53.36  given by an individual subject of the data by the signing of any 
 54.1   statement authorizing any person or agency to disclose 
 54.2   information about the individual to an insurer or its authorized 
 54.3   representative, unless the statement is: 
 54.4      (1) in plain language; 
 54.5      (2) dated; 
 54.6      (3) specific in designating the particular persons or 
 54.7   agencies the data subject is authorizing to disclose information 
 54.8   about the data subject; 
 54.9      (4) specific as to the nature of the information the 
 54.10  subject is authorizing to be disclosed; 
 54.11     (5) specific as to the persons or agencies to whom the 
 54.12  subject is authorizing information to be disclosed; 
 54.13     (6) specific as to the purpose or purposes for which the 
 54.14  information may be used by any of the parties named in clause 
 54.15  (5), both at the time of the disclosure and at any time in the 
 54.16  future; 
 54.17     (7) specific as to its expiration date which should be 
 54.18  within a reasonable period of time, not to exceed one year 
 54.19  except in the case of authorizations given in connection with 
 54.20  applications for (i) life insurance or noncancelable or 
 54.21  guaranteed renewable health insurance and identified as such, 
 54.22  two years after the date of the policy or (ii) medical 
 54.23  assistance under chapter 256B or MinnesotaCare under chapter 
 54.24  256L, which shall be ongoing during all terms of eligibility, 
 54.25  for individual education plan health-related services provided 
 54.26  by a school district under section 125A.21, subdivision 2. 
 54.27     The responsible authority may require a person requesting 
 54.28  copies of data under this paragraph to pay the actual costs of 
 54.29  making, certifying, and compiling the copies. 
 54.30     (e) Private or confidential data on an individual may be 
 54.31  discussed at a meeting open to the public to the extent provided 
 54.32  in section 13D.05.  
 54.33     [EFFECTIVE DATE.] This section is effective the day 
 54.34  following final enactment.  
 54.35     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 54.36  241.021, subdivision 4, is amended to read: 
 55.1      Subd. 4.  [HEALTH CARE.] The commissioner of corrections 
 55.2   shall provide professional health care to persons confined in 
 55.3   institutions under the control of the commissioner of 
 55.4   corrections and pay the costs of their care in hospitals and 
 55.5   other medical facilities not under the control of the 
 55.6   commissioner of corrections.  All reimbursements for these 
 55.7   health care services shall be deposited in the general fund.  
 55.8   The commissioner of corrections is authorized to contract 
 55.9   with or reimburse entities, including health care management 
 55.10  companies, to provide health care to inmates, at reimbursement 
 55.11  rates equal to medical assistance unless otherwise negotiated.  
 55.12  With respect to these contracts, these entities shall not be 
 55.13  regulated as, or otherwise considered to be, health plan 
 55.14  companies as defined in section 62Q.01, subdivision 4. 
 55.15     Sec. 3.  Minnesota Statutes 2000, section 241.44, is 
 55.16  amended by adding a subdivision to read: 
 55.17     Subd. 5.  [GRANTS.] The ombudsman may apply for and receive 
 55.18  grants from public and private entities for purposes of carrying 
 55.19  out the ombudsman's powers and duties under sections 241.41 to 
 55.20  241.45. 
 55.21     Sec. 4.  Minnesota Statutes 2000, section 256.9657, 
 55.22  subdivision 1, as amended by Laws 2002, chapter 220, article 14, 
 55.23  section 5, is amended to read: 
 55.24     Subdivision 1.  [NURSING HOME LICENSE SURCHARGE.] (a) 
 55.25  Effective July 1, 1993, each non-state-operated nursing home 
 55.26  licensed under chapter 144A shall pay to the commissioner an 
 55.27  annual surcharge according to the schedule in subdivision 4.  
 55.28  The surcharge shall be calculated as $620 per licensed bed.  If 
 55.29  the number of licensed beds is reduced, the surcharge shall be 
 55.30  based on the number of remaining licensed beds the second month 
 55.31  following the receipt of timely notice by the commissioner of 
 55.32  human services that beds have been delicensed.  The nursing home 
 55.33  must notify the commissioner of health in writing when beds are 
 55.34  delicensed.  The commissioner of health must notify the 
 55.35  commissioner of human services within ten working days after 
 55.36  receiving written notification.  If the notification is received 
 56.1   by the commissioner of human services by the 15th of the month, 
 56.2   the invoice for the second following month must be reduced to 
 56.3   recognize the delicensing of beds.  Beds on layaway status 
 56.4   continue to be subject to the surcharge.  The commissioner of 
 56.5   human services must acknowledge a medical care surcharge appeal 
 56.6   within 30 days of receipt of the written appeal from the 
 56.7   provider. 
 56.8      (b) Effective July 1, 1994, the surcharge in paragraph (a) 
 56.9   shall be increased to $625. 
 56.10     (c) Effective August 15, 2003, the surcharge under 
 56.11  paragraph (b) shall be increased by an amount necessary to 
 56.12  ensure a net gain to the general fund of $9,620,000 during 
 56.13  fiscal year 2004 as a result of: 
 56.14     (1) the total transfers anticipated during the fiscal year 
 56.15  ending June 30, 2004, under section 256B.19, subdivision 1d, 
 56.16  paragraph (c); 
 56.17     (2) the county nursing home payment adjustments under 
 56.18  section 256B.431, subdivision 23, paragraph (c); 
 56.19     (3) the surcharges under this paragraph; and 
 56.20     (4) the nursing facility rate increases under section 
 56.21  256B.431, subdivision 37. 
 56.22  The increase under this paragraph shall not exceed $365 per bed. 
 56.23     (d) Effective August 15, 2004 2002, the surcharge under 
 56.24  paragraph (c) (b) shall be equal to an amount necessary to 
 56.25  ensure a net gain to the general fund each fiscal year of 
 56.26  $10,228,000 as a result of: increased to $990. 
 56.27     (1) the total transfers anticipated during the fiscal year 
 56.28  under section 256B.19, subdivision 1d, paragraph (c); 
 56.29     (2) the county nursing home payment adjustments under 
 56.30  section 256B.431, subdivision 23, paragraph (c); 
 56.31     (3) the surcharges under this paragraph; and 
 56.32     (4) the nursing facility rate increases under section 
 56.33  256B.431, subdivision 37. 
 56.34  The surcharge under this paragraph shall not exceed $365 per bed.
 56.35     Sec. 5.  Minnesota Statutes 2000, section 256B.431, 
 56.36  subdivision 23, as amended by Laws 2002, chapter 220, article 
 57.1   14, section 9, is amended to read: 
 57.2      Subd. 23.  [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a) 
 57.3   Beginning in 1994, the commissioner shall pay a nursing home 
 57.4   payment adjustment on May 31 after noon to a county in which is 
 57.5   located a nursing home that, as of January 1 of the previous 
 57.6   year on that date, was county-owned and operated, with the 
 57.7   county named as licensee by the commissioner of health, and had 
 57.8   over 40 beds and medical assistance occupancy in excess of 50 
 57.9   percent during the reporting year ending September 30, 1991.  
 57.10  The adjustment shall be an amount equal to $16 per calendar day 
 57.11  multiplied by the number of beds licensed in the facility as of 
 57.12  September 30, 1991. 
 57.13     (b) Payments under paragraph (a) are excluded from medical 
 57.14  assistance per diem rate calculations.  These payments are 
 57.15  required notwithstanding any rule prohibiting medical assistance 
 57.16  payments from exceeding payments from private pay residents.  A 
 57.17  facility receiving a payment under paragraph (a) may not 
 57.18  increase charges to private pay residents by an amount 
 57.19  equivalent to the per diem amount payments under paragraph (a) 
 57.20  would equal if converted to a per diem. 
 57.21     (c) Beginning in 2002, in addition to any payment under 
 57.22  paragraph (a), the commissioner shall pay to a nursing facility 
 57.23  described in paragraph (a) an adjustment in an amount equal to 
 57.24  $29.55 per calendar day multiplied by the number of beds 
 57.25  licensed in the facility on that date.  The provisions of 
 57.26  paragraphs (a) and (b) apply to payments under this paragraph.  
 57.27     (d) The commissioner may reduce payments under paragraph (c)
 57.28  based on the commissioner's determination of Medicare upper 
 57.29  payment limits.  Any adjustments must be proportional to 
 57.30  adjustments made under section 256B.19, subdivision 1d, 
 57.31  paragraph (d). 
 57.32     Sec. 6.  Minnesota Statutes 2000, section 256B.431, 
 57.33  subdivision 37, as added by Laws 2002, chapter 220, article 14, 
 57.34  section 10, is amended to read: 
 57.35     Subd. 37.  [NURSING HOME RATE INCREASES EFFECTIVE JULY 1, 
 57.36  2003 2002.] For rate years beginning on or after July 1, 2003 
 58.1   2002, the commissioner shall provide to each nursing home 
 58.2   reimbursed under this section or section 256B.434 an increase in 
 58.3   each case mix payment rate equal to the increase in the per-bed 
 58.4   surcharge paid under section 256.9657, subdivision 1, paragraph 
 58.5   (c) or (d), divided by 365 and further divided by .80.  The 
 58.6   increase under this subdivision shall be added following the 
 58.7   determination of the payment rate for the home under this 
 58.8   chapter.  The increase shall not be subject to any annual 
 58.9   percentage increase. 
 58.10     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
 58.11  256B.5013, subdivision 1, as amended by Laws 2002, chapter 220, 
 58.12  article 14, section 14, is amended to read: 
 58.13     Subdivision 1.  [VARIABLE RATE ADJUSTMENTS.] (a) For rate 
 58.14  years beginning on or after October 1, 2000, when there is a 
 58.15  documented increase in the needs of a current ICF/MR recipient, 
 58.16  the county of financial responsibility may recommend a variable 
 58.17  rate to enable the facility to meet the individual's increased 
 58.18  needs.  Variable rate adjustments made under this subdivision 
 58.19  replace payments for persons with special needs under section 
 58.20  256B.501, subdivision 8, and payments for persons with special 
 58.21  needs for crisis intervention services under section 256B.501, 
 58.22  subdivision 8a.  Effective July 1, 2003, facilities with a base 
 58.23  rate above the 50th percentile of the statewide average 
 58.24  reimbursement rate for a Class A facility or Class B facility, 
 58.25  whichever matches the facility licensure, are not eligible for a 
 58.26  variable rate adjustment.  Variable rate adjustments may not 
 58.27  exceed a 12-month period, except when approved for purposes 
 58.28  established in paragraph (b), clause (1).  Variable rate 
 58.29  adjustments approved solely on the basis of changes on a 
 58.30  developmental disabilities screening document will end June 30, 
 58.31  2002. 
 58.32     (b) A variable rate may be recommended by the county of 
 58.33  financial responsibility for increased needs in the following 
 58.34  situations: 
 58.35     (1) a need for resources due to an individual's full or 
 58.36  partial retirement from participation in a day training and 
 59.1   habilitation service when the individual:  (i) has reached the 
 59.2   age of 65 or has a change in health condition that makes it 
 59.3   difficult for the person to participate in day training and 
 59.4   habilitation services over an extended period of time because it 
 59.5   is medically contraindicated; and (ii) has expressed a desire 
 59.6   for change through the mental retardation and related conditions 
 59.7   screening process under section 256B.092; 
 59.8      (2) a need for additional resources for intensive 
 59.9   short-term programming which is necessary prior to an 
 59.10  individual's discharge to a less restrictive, more integrated 
 59.11  setting; 
 59.12     (3) a demonstrated medical need that significantly impacts 
 59.13  the type or amount of services needed by the individual; or 
 59.14     (4) a demonstrated behavioral need that significantly 
 59.15  impacts the type or amount of services needed by the individual. 
 59.16     (c) The county of financial responsibility must justify the 
 59.17  purpose, the projected length of time, and the additional 
 59.18  funding needed for the facility to meet the needs of the 
 59.19  individual.  
 59.20     (d) The facility shall provide a quarterly report to the 
 59.21  county case manager on the use of the variable rate funds and 
 59.22  the status of the individual on whose behalf the funds were 
 59.23  approved.  The county case manager will forward the facility's 
 59.24  report with a recommendation to the commissioner to approve or 
 59.25  disapprove a continuation of the variable rate. 
 59.26     (e) Funds made available through the variable rate process 
 59.27  that are not used by the facility to meet the needs of the 
 59.28  individual for whom they were approved shall be returned to the 
 59.29  state. 
 59.30     Sec. 8.  Minnesota Statutes 2000, section 256E.06, 
 59.31  subdivision 3, is amended to read: 
 59.32     Subd. 3.  [PAYMENTS TO COUNTIES.] The commissioner of human 
 59.33  services shall make payments for community social services to 
 59.34  each county in four installments per on or before July 10 of 
 59.35  each year.  The commissioner of human services may certify the 
 59.36  payments for the first three months of a calendar year based on 
 60.1   estimates of the unduplicated number of persons receiving 
 60.2   Minnesota family investment program assistance, general 
 60.3   assistance, and medical assistance for the prior year.  The 
 60.4   following three payments shall be adjusted to reflect the actual 
 60.5   unduplicated number of persons who received Minnesota family 
 60.6   investment program assistance, general assistance, and medical 
 60.7   assistance as required by subdivision 1.  The commissioner shall 
 60.8   ensure that the pertinent payment of the allotment for that 
 60.9   quarter is made to each county on the first working day after 
 60.10  the end of each quarter of the calendar year, except for the 
 60.11  last quarter of the calendar year.  The commissioner shall 
 60.12  ensure that each county receives its payment of the allotment 
 60.13  for that quarter no later than the last working day of that 
 60.14  quarter.  This scheduling of payments does not require 
 60.15  compliance with subdivision 10.  
 60.16     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
 60.17  256J.425, subdivision 3, is amended to read: 
 60.18     Subd. 3.  [HARD-TO-EMPLOY PARTICIPANTS.] An assistance unit 
 60.19  subject to the time limit in section 256J.42, subdivision 1, in 
 60.20  which any participant has received 60 counted months of 
 60.21  assistance, is eligible to receive months of assistance under a 
 60.22  hardship extension if the participant belongs to any of the 
 60.23  following groups: 
 60.24     (1) a person who is diagnosed by a licensed physician, 
 60.25  psychological practitioner, or other qualified professional, as 
 60.26  mentally retarded or mentally ill, and that condition prevents 
 60.27  the person from obtaining or retaining unsubsidized employment; 
 60.28     (2) a person who: 
 60.29     (i) has been assessed by a vocational specialist or the 
 60.30  county agency to be unemployable for purposes of this 
 60.31  subdivision; or 
 60.32     (ii) has an IQ below 80 who has been assessed by a 
 60.33  vocational specialist or a county agency to be employable, but 
 60.34  not at a level that makes the participant eligible for an 
 60.35  extension under subdivision 4 or, in the case of a 
 60.36  non-English-speaking person for whom it is not possible to 
 61.1   provide a determination due to language barriers or absence of 
 61.2   culturally appropriate assessment tools, is determined by a 
 61.3   qualified professional to have an IQ below 80.  A person is 
 61.4   considered employable if positions of employment in the local 
 61.5   labor market exist, regardless of the current availability of 
 61.6   openings for those positions, that the person is capable of 
 61.7   performing; or 
 61.8      (3) a person who is determined by the county agency to be 
 61.9   learning disabled or, in the case of a non-English-speaking 
 61.10  person for whom it is not possible to provide a medical 
 61.11  diagnosis due to language barriers or absence of culturally 
 61.12  appropriate assessment tools, is determined by a qualified 
 61.13  professional to have a learning disability.  If a rehabilitation 
 61.14  plan for the person is developed or approved by the county 
 61.15  agency, the plan must be incorporated into the employment plan.  
 61.16  However, a rehabilitation plan does not replace the requirement 
 61.17  to develop and comply with an employment plan under section 
 61.18  256J.52.  For purposes of this section, "learning disabled" 
 61.19  means the applicant or recipient has a disorder in one or more 
 61.20  of the psychological processes involved in perceiving, 
 61.21  understanding, or using concepts through verbal language or 
 61.22  nonverbal means.  The disability must severely limit the 
 61.23  applicant or recipient in obtaining, performing, or maintaining 
 61.24  suitable employment.  Learning disabled does not include 
 61.25  learning problems that are primarily the result of visual, 
 61.26  hearing, or motor handicaps; mental retardation; emotional 
 61.27  disturbance; or due to environmental, cultural, or economic 
 61.28  disadvantage; or 
 61.29     (4) a person who is a victim of family violence as defined 
 61.30  in section 256J.49, subdivision 2, and who is participating in 
 61.31  an alternative employment plan under section 256J.49, 
 61.32  subdivision 1a.  
 61.33     Sec. 10.  Minnesota Statutes 2001 Supplement, section 
 61.34  256J.425, subdivision 4, is amended to read: 
 61.35     Subd. 4.  [EMPLOYED PARTICIPANTS.] (a) An assistance unit 
 61.36  subject to the time limit under section 256J.42, subdivision 1, 
 62.1   in which any participant has received 60 months of assistance, 
 62.2   is eligible to receive assistance under a hardship extension if 
 62.3   the participant belongs to: 
 62.4      (1) a one-parent assistance unit in which the participant 
 62.5   is participating in work activities for at least 30 hours per 
 62.6   week, of which an average of at least 25 hours per week every 
 62.7   month are spent participating in employment; or 
 62.8      (2) a two-parent assistance unit in which the participants 
 62.9   are participating in work activities for at least 55 hours per 
 62.10  week, of which an average of at least 45 hours per week every 
 62.11  month are spent participating in employment; or 
 62.12     (3) an assistance unit in which a participant is 
 62.13  participating in employment for fewer hours than those specified 
 62.14  in clause (1), and the participant submits verification from a 
 62.15  health care provider, in a form acceptable to the commissioner, 
 62.16  stating that the number of hours the participant may work is 
 62.17  limited due to illness or disability, as long as the participant 
 62.18  is participating in employment for at least the number of hours 
 62.19  specified by the health care provider.  The participant must be 
 62.20  following the treatment recommendations of the health care 
 62.21  provider providing the verification.  The commissioner shall 
 62.22  develop a form to be completed and signed by the health care 
 62.23  provider, documenting the diagnosis and any additional 
 62.24  information necessary to document the functional limitations of 
 62.25  the participant that limit work hours.  If the participant is 
 62.26  part of a two-parent assistance unit, the other parent must be 
 62.27  treated as a one-parent assistance unit for purposes of meeting 
 62.28  the work requirements under this subdivision. 
 62.29     For purposes of this section, employment means: 
 62.30     (1) unsubsidized employment under section 256J.49, 
 62.31  subdivision 13, clause (1); 
 62.32     (2) subsidized employment under section 256J.49, 
 62.33  subdivision 13, clause (2); 
 62.34     (3) on-the-job training under section 256J.49, subdivision 
 62.35  13, clause (4); 
 62.36     (4) an apprenticeship under section 256J.49, subdivision 
 63.1   13, clause (19); 
 63.2      (5) supported work.  For purposes of this section, 
 63.3   "supported work" means services supporting a participant on the 
 63.4   job which include, but are not limited to, supervision, job 
 63.5   coaching, and subsidized wages; 
 63.6      (6) a combination of (1) to (5); or 
 63.7      (7) child care under section 256J.49, subdivision 13, 
 63.8   clause (25), if it is in combination with paid employment. 
 63.9      (b) If a participant is complying with a child protection 
 63.10  plan under chapter 260C, the number of hours required under the 
 63.11  child protection plan count toward the number of hours required 
 63.12  under this subdivision.  
 63.13     (c) The county shall provide the opportunity for subsidized 
 63.14  employment to participants needing that type of employment 
 63.15  within available appropriations. 
 63.16     (d) To be eligible for a hardship extension for employed 
 63.17  participants under this subdivision, a participant in a 
 63.18  one-parent assistance unit or both parents in a two-parent 
 63.19  assistance unit must be in compliance for at least ten out of 
 63.20  the 12 months immediately preceding the participant's 61st month 
 63.21  on assistance.  If only one parent in a two-parent assistance 
 63.22  unit fails to be in compliance ten out of the 12 months 
 63.23  immediately preceding the participant's 61st month, the county 
 63.24  shall give the assistance unit the option of disqualifying the 
 63.25  noncompliant parent.  If the noncompliant participant is 
 63.26  disqualified, the assistance unit must be treated as a 
 63.27  one-parent assistance unit for the purposes of meeting the work 
 63.28  requirements under this subdivision and the assistance unit's 
 63.29  MFIP grant shall be calculated using the shared household 
 63.30  standard under section 256J.08, subdivision 82a. 
 63.31     (e) The employment plan developed under section 256J.52, 
 63.32  subdivision 5, for participants under this subdivision must 
 63.33  contain the number of hours specified in paragraph (a) related 
 63.34  to employment and work activities.  The job counselor and the 
 63.35  participant must sign the employment plan to indicate agreement 
 63.36  between the job counselor and the participant on the contents of 
 64.1   the plan. 
 64.2      (f) Participants who fail to meet the requirements in 
 64.3   paragraph (a), without good cause under section 256J.57, shall 
 64.4   be sanctioned or permanently disqualified under subdivision 6.  
 64.5   Good cause may only be granted for that portion of the month for 
 64.6   which the good cause reason applies.  Participants must meet all 
 64.7   remaining requirements in the approved employment plan or be 
 64.8   subject to sanction or permanent disqualification.  
 64.9      (g) If the noncompliance with an employment plan is due to 
 64.10  the involuntary loss of employment, the participant is exempt 
 64.11  from the hourly employment requirement under this subdivision 
 64.12  for one month.  Participants must meet all remaining 
 64.13  requirements in the approved employment plan or be subject to 
 64.14  sanction or permanent disqualification.  This exemption is 
 64.15  available to one-parent assistance units two times in a 12-month 
 64.16  period, and two-parent assistance units, two times per parent in 
 64.17  a 12-month period. 
 64.18     (h) This subdivision expires on June 30, 2004. 
 64.19     Sec. 11.  Minnesota Statutes 2000, section 256J.425, is 
 64.20  amended by adding a subdivision to read: 
 64.21     Subd. 4a.  [HARDSHIP EXTENSION PENDING DOCUMENTATION.] If 
 64.22  the documentation needed to determine if a participant is 
 64.23  eligible for a hardship extension under subdivision 2 or 3 is 
 64.24  not available by the 60th month, the county agency may extend 
 64.25  the participant pending receipt of the documentation if the 
 64.26  county believes the participant is likely to qualify for a 
 64.27  hardship extension and the participant is cooperating with 
 64.28  efforts to obtain the documentation.  If the participant is 
 64.29  found to be not eligible for an extension, the participant may 
 64.30  be responsible for an overpayment. 
 64.31     Sec. 12.  Minnesota Statutes 2001 Supplement, section 
 64.32  256J.425, subdivision 5, is amended to read: 
 64.33     Subd. 5.  [ACCRUAL OF CERTAIN EXEMPT MONTHS.] (a) A 
 64.34  participant who received TANF assistance that counted towards 
 64.35  the federal 60-month time limit while the participant was exempt 
 64.36  under section 256J.56, paragraph (a), clause (7), from 
 65.1   employment and training services requirements and who is no 
 65.2   longer eligible for assistance under a hardship extension under 
 65.3   subdivision 2, paragraph (a), clause (3), is eligible for 
 65.4   assistance under a hardship extension for a period of time equal 
 65.5   to the number of months that were counted toward the federal 
 65.6   60-month time limit while the participant was exempt under 
 65.7   section 256J.56, paragraph (a), clause (7), from the employment 
 65.8   and training services requirements. 
 65.9      (b) A participant who received TANF assistance that counted 
 65.10  towards the federal 60-month time limit while the participant 
 65.11  met the state time limit exemption criteria under section 
 65.12  256J.42, subdivision 4 or 5, is eligible for assistance under a 
 65.13  hardship extension for a period of time equal to the number of 
 65.14  months that were counted toward the federal 60-month time limit 
 65.15  while the participant met the state time limit exemption 
 65.16  criteria under section 256J.42, subdivision 5. 
 65.17     (c) A participant who received TANF assistance that counted 
 65.18  towards the federal 60-month time limit while the participant 
 65.19  was exempt under section 256J.56, paragraph (a), clause (3), 
 65.20  from employment and training services requirements, who 
 65.21  demonstrates at the time of the case review required under 
 65.22  section 256J.42, subdivision 6, that the participant met the 
 65.23  exemption criteria under section 256J.56, paragraph (a), clause 
 65.24  (7), during one or more months the participant was exempt under 
 65.25  section 256J.56, paragraph (a), clause (3), before or after July 
 65.26  1, 2002, is eligible for assistance under a hardship extension 
 65.27  for a period of time equal to the number of months that were 
 65.28  counted toward the federal 60-month time limit during the time 
 65.29  the participant met the criteria under section 256J.56, 
 65.30  paragraph (a), clause (7).  At the time of the case review, a 
 65.31  county agency must explain to the participant the basis for 
 65.32  receiving a hardship extension based on the accrual of exempt 
 65.33  months.  The participant must provide documentation necessary to 
 65.34  enable the county agency to determine whether the participant is 
 65.35  eligible to receive a hardship extension based on the accrual of 
 65.36  exempt months or authorize a county agency to verify the 
 66.1   information. 
 66.2      Sec. 13.  Minnesota Statutes 2000, section 256L.01, 
 66.3   subdivision 4, is amended to read: 
 66.4      Subd. 4.  [GROSS INDIVIDUAL OR GROSS FAMILY INCOME.] (a) 
 66.5   "Gross individual or gross family income" for farm and nonfarm 
 66.6   self-employed means income calculated using as the baseline the 
 66.7   adjusted gross income reported on the applicant's federal income 
 66.8   tax form for the previous year and adding back in reported 
 66.9   depreciation, carryover loss, and net operating loss amounts 
 66.10  that apply to the business in which the family is currently 
 66.11  engaged.  
 66.12     (b) "Gross individual or gross family income" for farm 
 66.13  self-employed means income calculated using as the baseline the 
 66.14  adjusted gross income reported on the applicant's federal income 
 66.15  tax form for the previous year and adding back in reported 
 66.16  depreciation amounts that apply to the business in which the 
 66.17  family is currently engaged.  
 66.18     (c) Applicants shall report the most recent financial 
 66.19  situation of the family if it has changed from the period of 
 66.20  time covered by the federal income tax form.  The report may be 
 66.21  in the form of percentage increase or decrease. 
 66.22     Sec. 14.  Laws 2001, First Special Session chapter 9, 
 66.23  article 2, section 74, is amended to read: 
 66.24     Sec. 74.  [ELIGIBILITY EXCEPTION TO THE PRESCRIPTION DRUG 
 66.25  PROGRAM.] 
 66.26     Notwithstanding the requirements of Minnesota Statutes, 
 66.27  section 256.955, subdivision 2, paragraph (d), from March 1, 
 66.28  2001, to June 30, 2002 2003, the definition of a "qualified 
 66.29  individual" in the prescription drug program established under 
 66.30  Minnesota Statutes, section 256.955, shall include an individual 
 66.31  who: 
 66.32     (1) was enrolled in the prescription drug program prior to 
 66.33  March 1, 2001; 
 66.34     (2) was enrolled in a Medicare risk plan prior to March 1, 
 66.35  2001, to which an annual prescription drug benefit of $400 was 
 66.36  added on March 1, 2001; and 
 67.1      (3) meets the requirements described in Minnesota Statutes, 
 67.2   section 256.955, subdivision 2, paragraph (d), clauses (1) and 
 67.3   (5), and subdivision 2a. 
 67.4   The prescription benefit offered by the Medicare risk plan shall 
 67.5   be primary to benefits provided under the prescription drug 
 67.6   program. 
 67.7                              ARTICLE 11
 67.8                GENERAL FUND CONVERSION TO BOND FUNDS
 67.9      Section 1.  [INTENT.] 
 67.10     This article intends to return to the unreserved general 
 67.11  fund $75,043,000 by changing the fund source of the projects 
 67.12  listed in this article in the amounts shown in sections 2 to 14, 
 67.13  by decreasing the appropriation from the general fund and by 
 67.14  appropriating an equal amount from the aggregate of the bond 
 67.15  proceeds fund and the transportation fund.  This action changes 
 67.16  the designation of the fund sources made under the cumulative 
 67.17  effect of Laws 1998, chapter 404; Laws 1999, chapter 250; and 
 67.18  Laws 2000, chapters 479 and 492.  This article also makes a new 
 67.19  appropriation of $77,000 from the bond proceeds fund for bond 
 67.20  sale expenses in connection with the bonds authorized in this 
 67.21  article. 
 67.22  Sec. 2.  [CAPITAL IMPROVEMENT APPROPRIATIONS.] 
 67.23     The sums in the column under "APPROPRIATIONS" are 
 67.24  appropriated from the bond proceeds fund or other named fund to 
 67.25  the state agencies or officials indicated, to be spent for 
 67.26  public purposes, including to acquire and to better public land 
 67.27  and buildings and other public improvements of a capital nature, 
 67.28  as specified in this article. 
 67.29                              SUMMARY
 67.30  UNIVERSITY OF MINNESOTA                            $    500,000
 67.31  CHILDREN, FAMILIES, AND LEARNING                        500,000
 67.32  NATURAL RESOURCES                                     6,973,000
 67.33  WATER AND SOIL RESOURCES BOARD                          300,000
 67.34  ADMINISTRATION                                       43,350,000
 67.35  CAPITOL AREA ARCHITECTURAL AND
 67.36  PLANNING BOARD                                          250,000
 68.1   AMATEUR SPORTS COMMISSION                               690,000
 68.2   TRANSPORTATION                                       13,590,000
 68.3   HUMAN SERVICES                                        1,500,000
 68.4   CORRECTIONS                                             250,000
 68.5   TRADE AND ECONOMIC DEVELOPMENT                        5,590,000
 68.6   MINNESOTA HISTORICAL SOCIETY                          1,550,000
 68.7   BOND SALE EXPENSES                                       77,000
 68.8   TOTAL                                            $   75,120,000
 68.9   Bond Proceeds Fund                                   61,530,000
 68.10  Transportation Fund                                  13,590,000
 68.11                                                   APPROPRIATIONS
 68.12                                                   $             
 68.13  Sec. 3.  UNIVERSITY OF MINNESOTA                        500,000
 68.14  To the board of regents of the 
 68.15  University of Minnesota for 1998 Higher 
 68.16  Education Asset Preservation and 
 68.17  Replacement.  
 68.18  Sec. 4.  CHILDREN, FAMILIES, AND LEARNING               500,000
 68.19  To the commissioner of children, 
 68.20  families, and learning for 1998 Early 
 68.21  Childhood Learning Facilities.  
 68.22  Sec. 5.  NATURAL RESOURCES 
 68.23  Subdivision 1.  To the commissioner
 68.24  of natural resources for the purposes 
 68.25  specified in this section                             6,973,000
 68.26  Subd. 2.  1998 Park Building Rehabilitation             500,000
 68.27  Subd. 3.  1998 Park Betterment 
 68.28  and Rehabilitation                                      500,000
 68.29  Subd. 4.  1998 Forest Roads and Bridges                 750,000
 68.30  Subd. 5.  1998 Metro Greenways Acquisition            2,000,000
 68.31  Subd. 6.  Safe Harbors Program                        3,223,000
 68.32  Sec. 6.  BOARD OF WATER AND 
 68.33  SOIL RESOURCES                                          300,000
 68.34  To the board of water and soil 
 68.35  resources for local road replacement.  
 68.36  Sec. 7.  ADMINISTRATION 
 68.37  Subdivision 1.  To the commissioner of 
 68.38  administration for the purposes specified 
 68.39  in this section                                      45,350,000
 68.40  Subd. 2.  2000 Asset Preservation                       350,000
 68.41  Subd. 3.  2000 Bureau of Criminal 
 68.42  Apprehension Facility                                40,000,000
 69.1   Subd. 4.  2000 Property Acquisition                     450,000
 69.2   Subd. 5.  1998 Asset Preservation                     1,250,000
 69.3   Subd. 6.  1998 Real Property Acquisition              1,000,000
 69.4   Subd. 7.  1998 BCA Land Acquisition                     300,000
 69.5   Sec. 8.  CAPITOL AREA ARCHITECTURAL 
 69.6   AND PLANNING BOARD                                      250,000
 69.7   To the commissioner of administration 
 69.8   for the HHH Memorial.  
 69.9   Sec. 9.  AMATEUR SPORTS COMMISSION                      690,000
 69.10  To the amateur sports commission for 
 69.11  the Giants Ridge Facility.  
 69.12  Sec. 10.  TRANSPORTATION 
 69.13  Subdivision 1.  To the commissioner of 
 69.14  transportation for the purposes specified 
 69.15  in this section                                      13,590,000
 69.16  This appropriation is from the 
 69.17  transportation fund. 
 69.18  Subd. 2.  2000 County and Local Bridges              13,000,000
 69.19  Subd. 3.  1998 CSAH Highway 90                          590,000
 69.20  Sec. 11.  HUMAN SERVICES                              1,500,000
 69.21  To the commissioner of administration 
 69.22  for 1998 Asset Preservation.  
 69.23  Sec. 12.  CORRECTIONS                                   250,000
 69.24  To the commissioner of administration 
 69.25  for 1998 Asset Preservation.  
 69.26  Sec. 13.  TRADE AND ECONOMIC DEVELOPMENT              5,590,000
 69.27  To the commissioner of trade and 
 69.28  economic development for 2000 
 69.29  Wastewater Infrastructure.  
 69.30  Sec. 14.  MINNESOTA HISTORICAL SOCIETY
 69.31  Subdivision 1.  To the Minnesota 
 69.32  historical society for the purposes
 69.33  specified in this section                             1,550,000
 69.34  Subd. 2.  1998 Historic Site 
 69.35  Preservation and Repair                                 850,000
 69.36  Subd. 3.  Split Rock Lighthouse                         700,000
 69.37  Sec. 15.  BOND SALE EXPENSES                             77,000
 69.38  To the commissioner of finance for 
 69.39  bond sale expenses under Minnesota 
 69.40  Statutes, section 16A.641, subdivision 8.
 69.41     Sec. 16.  [IDENTICAL PROJECTS.] 
 69.42     The purpose and use of appropriations in this article are 
 69.43  for the same purpose and use and for identical projects as 
 70.1   authorized in Laws 1998, chapter 404; Laws 1999, chapter 250; 
 70.2   and Laws 2000, chapters 479 and 492.  Except for the fund source 
 70.3   of unspent parts of the appropriations listed in this article, 
 70.4   this article does not change or limit the purpose and use of the 
 70.5   appropriations and related requirements in Laws 1998, chapter 
 70.6   404; Laws 1999, chapter 250; and Laws 2000, chapters 479 and 492.
 70.7      Sec. 17.  [BOND SALE AUTHORIZATIONS.] 
 70.8      Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
 70.9   appropriated in this article from the bond proceeds fund, the 
 70.10  commissioner of finance shall sell and issue bonds of the state 
 70.11  in an amount up to $61,530,000 in the manner, upon the terms, 
 70.12  and with the effect prescribed by Minnesota Statutes, sections 
 70.13  16A.631 to 16A.675, and by the Minnesota Constitution, article 
 70.14  XI, sections 4 to 7. 
 70.15     Subd. 2.  [TRANSPORTATION FUND.] To provide the money 
 70.16  appropriated in this article from the transportation fund, the 
 70.17  commissioner of finance shall sell and issue bonds of the state 
 70.18  in an amount up to $13,590,000 in the manner, upon the terms, 
 70.19  and with the effect prescribed by Minnesota Statutes, sections 
 70.20  16A.631 to 16A.675, and by the Minnesota Constitution, article 
 70.21  XI, sections 4 to 7.  The proceeds of the bonds, except accrued 
 70.22  interest and any premium received on the sale of the bonds, must 
 70.23  be credited to a bond proceeds account in the state 
 70.24  transportation fund. 
 70.25     Sec. 18.  [CANCELLATION TO GENERAL FUND.] 
 70.26     Money appropriated from the general fund pursuant to 1998, 
 70.27  1999, and 2000 acts and not yet spent for the projects listed in 
 70.28  this article is canceled to the general fund in the amount shown 
 70.29  for each project. 
 70.30     Sec. 19.  [EFFECTIVE DATE.] 
 70.31     This article is effective the day following final 
 70.32  enactment." 
 70.33     Delete the title and insert: 
 70.34                         "A bill for an act 
 70.35            relating to the financing of state government; 
 70.36            appropriating money and reducing appropriations for 
 70.37            kindergarten through grade 12, early childhood and 
 71.1             family education, higher education, environment, state 
 71.2             government, and health and human services; canceling 
 71.3             balances and appropriations and transferring balances 
 71.4             to the general fund in order to avert a deficit; 
 71.5             converting certain capital project financing from 
 71.6             general fund cash to general obligation bonding; 
 71.7             modifying education levies and aids; transferring 
 71.8             programs; changing certain fees; modifying certain 
 71.9             programs; amending Minnesota Statutes 2000, sections 
 71.10            13.05, subdivision 4; 16A.28, subdivision 6; 16B.27, 
 71.11            by adding a subdivision; 79.251, subdivision 1; 
 71.12            115A.557, subdivision 1; 115A.96, subdivisions 2, 3, 
 71.13            4, 5, 7, as added; 124D.69, by adding a subdivision; 
 71.14            125A.65, subdivisions 1, 3, 8, 9; 127A.45, 
 71.15            subdivisions 2, 3, 10, 13, 14, 16, by adding a 
 71.16            subdivision; 136A.121, subdivision 7; 144.395, 
 71.17            subdivision 1, as amended; 241.44, by adding a 
 71.18            subdivision; 256.9657, subdivision 1, as amended; 
 71.19            256B.431, subdivisions 23, as amended, 37, as added; 
 71.20            256E.06, subdivision 3; 256J.425, by adding a 
 71.21            subdivision; 256L.01, subdivision 4; Minnesota 
 71.22            Statutes 2001 Supplement, sections 62J.694, 
 71.23            subdivision 1; 123B.54, as amended; 124D.11, 
 71.24            subdivision 9; 126C.10, subdivision 13; 126C.17, 
 71.25            subdivision 7; 127A.45, subdivision 14a; 241.021, 
 71.26            subdivision 4; 256B.5013, subdivision 1, as amended; 
 71.27            256J.425, subdivisions 3, 4, 5; Laws 1997, chapter 
 71.28            202, article 2, section 61, as amended; Laws 2001, 
 71.29            First Special Session chapter 3, article 1, section 
 71.30            17, subdivision 2; Laws 2001, First Special Session 
 71.31            chapter 3, article 1, section 17, subdivision 3, as 
 71.32            amended; Laws 2001, First Special Session chapter 3, 
 71.33            article 1, section 17, subdivision 4; Laws 2001, First 
 71.34            Special Session chapter 3, article 1, section 17, 
 71.35            subdivision 7, as amended; Laws 2001, First Special 
 71.36            Session chapter 3, article 1, section 17, subdivision 
 71.37            9, as amended; Laws 2001, First Special Session 
 71.38            chapter 3, article 1, section 19, subdivision 3, as 
 71.39            amended; Laws 2001, First Special Session chapter 3, 
 71.40            article 1, section 19, subdivision 5, as amended; Laws 
 71.41            2001, First Special Session chapter 3, article 2, 
 71.42            section 15, subdivision 3, as amended; Laws 2001, 
 71.43            First Special Session chapter 3, article 2, section 
 71.44            15, subdivision 4; Laws 2001, First Special Session 
 71.45            chapter 3, article 2, section 15, subdivision 6; Laws 
 71.46            2001, First Special Session chapter 3, article 3, 
 71.47            section 9, subdivision 5; Laws 2001 First Special 
 71.48            Session chapter 3, article 3, section 9, subdivision 
 71.49            7; Laws 2001, First Special Session chapter 3, article 
 71.50            4, section 5, subdivision 2, as amended; Laws 2001, 
 71.51            First Special Session chapter 3, article 4, section 5, 
 71.52            subdivision 3; Laws 2001, First Special Session 
 71.53            chapter 5, article 2, section 29, subdivision 2, as 
 71.54            amended; Laws 2001, First Special Session chapter 6, 
 71.55            article 1, section 54, subdivision 2, as amended; Laws 
 71.56            2001, First Special Session chapter 6, article 1, 
 71.57            section 54, subdivision 4, as amended; Laws 2001, 
 71.58            First Special Session chapter 6, article 1, section 
 71.59            54, subdivision 5, as amended; Laws 2001, First 
 71.60            Special Session chapter 6, article 1, section 54, 
 71.61            subdivision 6, as amended; Laws 2001, First Special 
 71.62            Session chapter 6, article 1, section 54, subdivision 
 71.63            7, as amended; Laws 2001, First Special Session 
 71.64            chapter 6, article 2, section 77, subdivision 4, as 
 71.65            amended; Laws 2001, First Special Session chapter 6, 
 71.66            article 2, section 77, subdivision 5, as amended; Laws 
 71.67            2001, First Special Session chapter 6, article 2, 
 71.68            section 77, subdivision 6; Laws 2001, First Special 
 71.69            Session chapter 6, article 2, section 77, subdivision 
 71.70            8, as amended; Laws 2001, First Special Session 
 71.71            chapter 6, article 2, section 77, subdivision 11, as 
 72.1             amended; Laws 2001, First Special Session chapter 6, 
 72.2             article 2, section 77, subdivision 15, as amended; 
 72.3             Laws 2001, First Special Session chapter 6, article 2, 
 72.4             section 77, subdivision 18, as amended; Laws 2001, 
 72.5             First Special Session chapter 6, article 3, section 
 72.6             21, subdivision 2, as amended; Laws 2001, First 
 72.7             Special Session chapter 6, article 3, section 21, 
 72.8             subdivision 3, as amended; Laws 2001, First Special 
 72.9             Session chapter 6, article 3, section 21, subdivision 
 72.10            4, as amended; Laws 2001, First Special Session 
 72.11            chapter 6, article 3, section 21, subdivision 5, as 
 72.12            amended; Laws 2001, First Special Session chapter 6, 
 72.13            article 3, section 21, subdivision 7, as amended; Laws 
 72.14            2001, First Special Session chapter 6, article 4, 
 72.15            section 27, subdivision 2, as amended; Laws 2001, 
 72.16            First Special Session chapter 6, article 4, section 
 72.17            27, subdivision 3, as amended; Laws 2001, First 
 72.18            Special Session chapter 6, article 4, section 27, 
 72.19            subdivision 5, as amended; Laws 2001, First Special 
 72.20            Session chapter 6, article 5, section 13, subdivision 
 72.21            3; Laws 2001, First Special Session chapter 6, article 
 72.22            7, section 14, as amended; Laws 2001, First Special 
 72.23            Session chapter 9, article 2, section 74; Laws 2002, 
 72.24            chapter 220, article 2, section 14, subdivision 1; 
 72.25            Laws 2002, chapter 220, article 8, section 15; Laws 
 72.26            2002, chapter 220, article 10, section 4; Laws 2002, 
 72.27            chapter 220, article 10, section 36; Laws 2002, 
 72.28            chapter 220, article 10, section 37, as amended; Laws 
 72.29            2002 chapter 220, article 10, section 38, subdivision 
 72.30            2; Laws 2002, chapter 220, article 10, section 38, 
 72.31            subdivision 3; Laws 2002, chapter 220, article 10, 
 72.32            section 39; Laws 2002, chapter 220, article 13, 
 72.33            section 7; Laws 2002, chapter 220, article 13, section 
 72.34            9, subdivision 1; Laws 2002, chapter 220, article 13, 
 72.35            section 9, subdivision 2." 
 73.1      We request adoption of this report and repassage of the 
 73.2   bill. 
 73.5      House Conferees: 
 73.8   .........................     .........................
 73.9   Kevin Goodno                  Philip Krinkie 
 73.12  .........................     .........................
 73.13  Alice Seagren                 Ron Abrams   
 73.16  ......................... 
 73.17  Thomas Pugh 
 73.22     Senate Conferees: 
 73.25  .........................     .........................
 73.26  Douglas J. Johnson            Linda Berglin  
 73.29  .........................     .........................
 73.30  Lawrence J. Pogemiller        Dick Day  
 73.33  ......................... 
 73.34  Leonard R. Price