Minnesota Legislature
HF 3270
4th Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to the financing of state government; 1.3 appropriating money and reducing appropriations for 1.4 kindergarten through grade 12, early childhood and 1.5 family education, higher education, environment, state 1.6 government, and health and human services; canceling 1.7 balances and appropriations and transferring balances 1.8 to the general fund in order to avert a deficit; 1.9 converting certain capital project financing from 1.10 general fund cash to general obligation bonding; 1.11 modifying education aids; transferring programs; 1.12 changing certain fees; modifying certain programs; 1.13 amending Minnesota Statutes 2000, sections 13.05, 1.14 subdivision 4; 16A.28, subdivision 6; 16B.27, by 1.15 adding a subdivision; 79.251, subdivision 1; 115A.557, 1.16 subdivision 1; 115A.96, subdivisions 2, 3, 4, 5, 7, as 1.17 added; 124D.69, by adding a subdivision; 125A.65, 1.18 subdivisions 1, 3, 8, 9; 127A.45, subdivisions 2, 3, 1.19 10, 13, 14, 16, by adding a subdivision; 136A.121, 1.20 subdivision 7; 144.395, subdivision 1, as amended; 1.21 241.44, by adding a subdivision; 256.9657, subdivision 1.22 1, as amended; 256B.431, subdivisions 23, as amended, 1.23 37, as added; 256E.06, subdivision 3; 256J.425, by 1.24 adding a subdivision; 256L.01, subdivision 4; 1.25 Minnesota Statutes 2001 Supplement, sections 62J.694, 1.26 subdivision 1; 123B.54, as amended; 124D.11, 1.27 subdivision 9; 126C.10, subdivision 13; 126C.17, 1.28 subdivision 7; 127A.45, subdivision 14a; 241.021, 1.29 subdivision 4; 256B.5013, subdivision 1, as amended; 1.30 256J.425, subdivisions 3, 4, 5; Laws 1997, chapter 1.31 202, article 2, section 61, as amended; Laws 2001, 1.32 First Special Session chapter 3, article 1, section 1.33 17, subdivision 2; Laws 2001, First Special Session 1.34 chapter 3, article 1, section 17, subdivision 3, as 1.35 amended; Laws 2001, First Special Session chapter 3, 1.36 article 1, section 17, subdivision 4; Laws 2001, First 1.37 Special Session chapter 3, article 1, section 17, 1.38 subdivision 7, as amended; Laws 2001, First Special 1.39 Session chapter 3, article 1, section 17, subdivision 1.40 9, as amended; Laws 2001, First Special Session 1.41 chapter 3, article 1, section 19, subdivision 3, as 1.42 amended; Laws 2001, First Special Session chapter 3, 1.43 article 1, section 19, subdivision 5, as amended; Laws 1.44 2001, First Special Session chapter 3, article 2, 1.45 section 15, subdivision 3, as amended; Laws 2001, 1.46 First Special Session chapter 3, article 2, section 2.1 15, subdivision 4; Laws 2001, First Special Session 2.2 chapter 3, article 2, section 15, subdivision 6; Laws 2.3 2001, First Special Session chapter 3, article 3, 2.4 section 9, subdivision 5; Laws 2001 First Special 2.5 Session chapter 3, article 3, section 9, subdivision 2.6 7; Laws 2001, First Special Session chapter 3, article 2.7 4, section 5, subdivision 2, as amended; Laws 2001, 2.8 First Special Session chapter 3, article 4, section 5, 2.9 subdivision 3; Laws 2001, First Special Session 2.10 chapter 5, article 2, section 29, subdivision 2, as 2.11 amended; Laws 2001, First Special Session chapter 6, 2.12 article 1, section 54, subdivision 2, as amended; Laws 2.13 2001, First Special Session chapter 6, article 1, 2.14 section 54, subdivision 4, as amended; Laws 2001, 2.15 First Special Session chapter 6, article 1, section 2.16 54, subdivision 5, as amended; Laws 2001, First 2.17 Special Session chapter 6, article 1, section 54, 2.18 subdivision 6, as amended; Laws 2001, First Special 2.19 Session chapter 6, article 1, section 54, subdivision 2.20 7, as amended; Laws 2001, First Special Session 2.21 chapter 6, article 2, section 77, subdivision 4, as 2.22 amended; Laws 2001, First Special Session chapter 6, 2.23 article 2, section 77, subdivision 5, as amended; Laws 2.24 2001, First Special Session chapter 6, article 2, 2.25 section 77, subdivision 6; Laws 2001, First Special 2.26 Session chapter 6, article 2, section 77, subdivision 2.27 8, as amended; Laws 2001, First Special Session 2.28 chapter 6, article 2, section 77, subdivision 11, as 2.29 amended; Laws 2001, First Special Session chapter 6, 2.30 article 2, section 77, subdivision 15, as amended; 2.31 Laws 2001, First Special Session chapter 6, article 2, 2.32 section 77, subdivision 18, as amended; Laws 2001, 2.33 First Special Session chapter 6, article 3, section 2.34 21, subdivision 2, as amended; Laws 2001, First 2.35 Special Session chapter 6, article 3, section 21, 2.36 subdivision 3, as amended; Laws 2001, First Special 2.37 Session chapter 6, article 3, section 21, subdivision 2.38 4, as amended; Laws 2001, First Special Session 2.39 chapter 6, article 3, section 21, subdivision 5, as 2.40 amended; Laws 2001, First Special Session chapter 6, 2.41 article 3, section 21, subdivision 7, as amended; Laws 2.42 2001, First Special Session chapter 6, article 4, 2.43 section 27, subdivision 2, as amended; Laws 2001, 2.44 First Special Session chapter 6, article 4, section 2.45 27, subdivision 3, as amended; Laws 2001, First 2.46 Special Session chapter 6, article 4, section 27, 2.47 subdivision 5, as amended; Laws 2001, First Special 2.48 Session chapter 6, article 5, section 13, subdivision 2.49 3; Laws 2001, First Special Session chapter 6, article 2.50 7, section 14, as amended; Laws 2001, First Special 2.51 Session chapter 9, article 2, section 74; Laws 2002, 2.52 chapter 220, article 2, section 14, subdivision 1; 2.53 Laws 2002, chapter 220, article 8, section 15; Laws 2.54 2002, chapter 220, article 10, section 4; Laws 2002, 2.55 chapter 220, article 10, section 36; Laws 2002, 2.56 chapter 220, article 10, section 37, as amended; Laws 2.57 2002 chapter 220, article 10, section 38, subdivision 2.58 2; Laws 2002, chapter 220, article 10, section 38, 2.59 subdivision 3; Laws 2002, chapter 220, article 10, 2.60 section 39; Laws 2002, chapter 220, article 13, 2.61 section 7; Laws 2002, chapter 220, article 13, section 2.62 9, subdivision 1; Laws 2002, chapter 220, article 13, 2.63 section 9, subdivision 2. 2.64 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.65 ARTICLE 1 2.66 EDUCATION AID PAYMENT DELAY 2.67 Section 1. Minnesota Statutes 2001 Supplement, section 3.1 124D.11, subdivision 9, is amended to read: 3.2 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 3.3 Notwithstanding section 127A.45, subdivision 3, aid payments for 3.4 the current fiscal year to a charter school not in its first 3.5 year of operation shall be of an equal amount on each of the 23 3.6 payment dates. A charter school in its first year of operation 3.7 shall receive, on its first payment date, ten percent of its 3.8 cumulative amount guaranteed for the year and 22 payments of an 3.9 equal amount thereafter the sum of which shall be 90 percent of 3.10 the cumulative amount guaranteed. 3.11 (b) Notwithstanding paragraph (a), for a charter school 3.12 ceasing operation prior to the end of a school year,9083 3.13 percent of the amount due for the school year may be paid to the 3.14 school after audit of prior fiscal year and current fiscal year 3.15 pupil counts. 3.16 (c) Notwithstanding section 127A.45, subdivision 3, and 3.17 paragraph (a),9083 percent of the start-up cost aid under 3.18 subdivision 8 shall be paid within 45 days after the first day 3.19 of student attendance for that school year. 3.20 (d) In order to receive state aid payments under this 3.21 subdivision, a charter school in its first three years of 3.22 operation must submit a quarterly report to the department of 3.23 children, families, and learning. The report must list each 3.24 student by grade, show the student's start and end dates, if 3.25 any, with the charter school, and for any student participating 3.26 in a learning year program, the report must list the hours and 3.27 times of learning year activities. The report must be submitted 3.28 not more than two weeks after the end of the calendar quarter to 3.29 the department. The department must develop a Web-based 3.30 reporting form for charter schools to use when submitting 3.31 enrollment reports. A charter school in its fourth and 3.32 subsequent year of operation must submit enrollment information 3.33 to the department in the form and manner requested by the 3.34 department. 3.35 Sec. 2. Minnesota Statutes 2000, section 127A.45, 3.36 subdivision 2, is amended to read: 4.1 Subd. 2. [DEFINITIONS.] (a) The term "other district 4.2 receipts" means payments by county treasurers pursuant to 4.3 section 276.10, apportionments from the school endowment fund 4.4 pursuant to section 127A.33, apportionments by the county 4.5 auditor pursuant to section 127A.34, subdivision 2, and payments 4.6 to school districts by the commissioner of revenue pursuant to 4.7 chapter 298. 4.8 (b) The term "cumulative amount guaranteed" means the 4.9 product of 4.10 (1) the cumulative disbursement percentage shown in 4.11 subdivision 3; times 4.12 (2) the sum of 4.13 (i)9083 percent of the estimated aid and credit 4.14 entitlements paid according to subdivision 13; plus 4.15 (ii) 100 percent of the entitlements paid according to 4.16 subdivisions 11 and 12; plus 4.17 (iii) the other district receipts; plus4.18(iv) the final adjustment payment according to subdivision4.199. 4.20 (c) The term "payment date" means the date on which state 4.21 payments to districts are made by the electronic funds transfer 4.22 method. If a payment date falls on a Saturday, a Sunday, or a 4.23 weekday which is a legal holiday, the payment shall be made on 4.24 the immediately preceding business day. The commissioner may 4.25 make payments on dates other than those listed in subdivision 3, 4.26 but only for portions of payments from any preceding payment 4.27 dates which could not be processed by the electronic funds 4.28 transfer method due to documented extenuating circumstances. 4.29 Sec. 3. Minnesota Statutes 2000, section 127A.45, 4.30 subdivision 3, is amended to read: 4.31 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] (a) For fiscal 4.32 year 2003, the commissioner shall pay to a district on the dates 4.33 indicated an amount computed as follows: the cumulative amount 4.34 guaranteed minus the sum of (a) the district's other district 4.35 receipts through the current payment, and (b) the aid and credit 4.36 payments through the immediately preceding payment. For 5.1 purposes of this computation, the payment dates and the 5.2 cumulative disbursement percentages are as follows: 5.3 Payment date Percentage 5.4 Payment 1 July 15:4.65.1 5.5 Payment 2 July 30:6.97.7 5.6 Payment 3 August 15:the greater of (a) the final5.7adjustment for the prior fiscal year for5.8the state paid property tax credits5.9established in section 273.1392, or5.10(b) the amount needed to provide 15.2 percent16.9 5.11 Payment 4 August 30:17.419.3 5.12 Payment 5 September 15:19.621.8 5.13 Payment 6 September 30:21.824.3 5.14 Payment 7 October 15:the greater of (a) one-half of5.15the final adjustment for the prior fiscal year5.16for all aid entitlements except state paid5.17property tax credits, or (b) the amount needed to5.18provide 24 percent26.3 5.19 Payment 8 October 30:the greater of (a) one-half of the5.20final adjustment for the prior fiscal year for all5.21aid entitlements except state paid property5.22tax credits, or (b) the amount needed5.23to provide 27.3percent28.3 5.24 Payment 9 November 15:33.332.8 5.25 Payment 10 November 30:39.339.1 5.26 Payment 11 December 15:42.342.4 5.27 Payment 12 December 30:45.345.6 5.28 Payment 13 January 15:49.550.5 5.29 Payment 14 January 30:53.855.0 5.30 Payment 15 February 15:58.360.2 5.31 Payment 16 February 28:62.865.0 5.32 Payment 17 March 15:67.669.7 5.33 Payment 18 March 30:72.374.3 5.34 Payment 19 April 15:75.378.3 5.35 Payment 20 April 30:81.384.2 5.36 Payment 21 May 15:84.388.7 6.1 Payment 22 May 30:92.393.3 6.2 Payment 23 June 20: 100.0 6.3 (b) In addition to the amounts paid under paragraph (a), 6.4 for fiscal year 2003, the commissioner shall pay to a district 6.5 on the dates indicated an amount computed as follows: 6.6 Payment 3 August 15: the final adjustment for the 6.7 prior fiscal year for the state paid 6.8 property tax credits established in 6.9 section 273.1392 6.10 Payment 7 October 15: one-half of the final adjustment 6.11 for the prior fiscal year for all aid 6.12 entitlements except state paid property 6.13 tax credits 6.14 Payment 8 October 30: one-half of the final adjustment 6.15 for the prior fiscal year for all aid 6.16 entitlements except state paid property 6.17 tax credits 6.18 (c) For fiscal year 2004 and later, the commissioner shall 6.19 pay to a district on the dates indicated an amount computed as 6.20 follows: the cumulative amount guaranteed minus the sum of (a) 6.21 the district's other district receipts through the current 6.22 payment, and (b) the aid and credit payments through the 6.23 immediately preceding payment. For purposes of this 6.24 computation, the payment dates and the cumulative disbursement 6.25 percentages are as follows: 6.26 Payment date Percentage 6.27 Payment 1 July 15: 5.1 6.28 Payment 2 July 30: 7.7 6.29 Payment 3 August 15: 16.9 6.30 Payment 4 August 30: 19.3 6.31 Payment 5 September 15: 21.8 6.32 Payment 6 September 30: 24.3 6.33 Payment 7 October 15: 26.3 6.34 Payment 8 October 30: 28.3 6.35 Payment 9 November 15: 30.3 6.36 Payment 10 November 30: 35.0 7.1 Payment 11 December 15: 40.0 7.2 Payment 12 December 30: 43.0 7.3 Payment 13 January 15: 48.0 7.4 Payment 14 January 30: 52.0 7.5 Payment 15 February 15: 56.0 7.6 Payment 16 February 28: 61.0 7.7 Payment 17 March 15: 66.0 7.8 Payment 18 March 30: 72.0 7.9 Payment 19 April 15: 76.0 7.10 Payment 20 April 30: 83.0 7.11 Payment 21 May 15: 88.0 7.12 Payment 22 May 30: 95.0 7.13 Payment 23 June 20: 100.0 7.14 (d) In addition to the amounts paid under paragraph (c), 7.15 for fiscal year 2004 and later, the commissioner shall pay to a 7.16 district on the dates indicated an amount computed as follows: 7.17 Payment 3 August 15: the final adjustment for the 7.18 prior fiscal year for the state paid 7.19 property tax credits established in 7.20 section 273.1392 7.21 Payment 4 August 30: one-third of the final adjustment 7.22 for the prior fiscal year for all aid 7.23 entitlements except state paid property 7.24 tax credits 7.25 Payment 6 September 30: one-third of the final adjustment 7.26 for the prior fiscal year for all aid 7.27 entitlements except state paid property 7.28 tax credits 7.29 Payment 8 October 30: one-third of the final adjustment 7.30 for the prior fiscal year for all aid 7.31 entitlements except state paid property 7.32 tax credits 7.33 Sec. 4. Minnesota Statutes 2000, section 127A.45, is 7.34 amended by adding a subdivision to read: 7.35 Subd. 7a. [ADVANCE FINAL PAYMENT.] (a) Notwithstanding 7.36 subdivisions 3 and 7, a school district or a charter school 8.1 exceeding its expenditure limitations under section 123B.83 as 8.2 of June 30 of the prior fiscal year may receive a portion of its 8.3 final payment for the current fiscal year on June 20, if 8.4 requested by the district. The amount paid under this 8.5 subdivision must not exceed the lesser of: 8.6 (1) seven percent of the district or charter school's 8.7 general education aid for the current fiscal year; or 8.8 (2) the amount by which the district or charter school's 8.9 net negative unreserved general fund balance as of June 30 of 8.10 the prior fiscal year exceeds 2.5 percent of the district or 8.11 charter school's expenditures for that fiscal year. 8.12 (b) The state total advance final payment under this 8.13 subdivision for any year must not exceed $17,500,000. If the 8.14 amount requested exceeds $17,500,000, the advance final payment 8.15 for each eligible district must be reduced proportionately. 8.16 Sec. 5. Minnesota Statutes 2000, section 127A.45, 8.17 subdivision 10, is amended to read: 8.18 Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 8.19 fiscal year state general fund payments for a district 8.20 nonoperating fund must be made at9083 percent of the estimated 8.21 entitlement during the fiscal year of the entitlement. This 8.22 amount shall be paid in 12 equal monthly installments. The 8.23 amount of the actual entitlement, after adjustment for actual 8.24 data, minus the payments made during the fiscal year of the 8.25 entitlement must be paid prior to October 31 of the following 8.26 school year. The commissioner may make advance payments of debt 8.27 service equalization aid or homestead and agricultural credit 8.28 aid for a district's debt service fund earlier than would occur 8.29 under the preceding schedule if the district submits evidence 8.30 showing a serious cash flow problem in the fund. The 8.31 commissioner may make earlier payments during the year and, if 8.32 necessary, increase the percent of the entitlement paid to 8.33 reduce the cash flow problem. 8.34 Sec. 6. Minnesota Statutes 2000, section 127A.45, 8.35 subdivision 13, is amended to read: 8.36 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 9.1 subdivisions 11, 12, 12a, and 14, each fiscal year, all 9.2 education aids and credits in this chapter and chapters 120A, 9.3 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 9.4 section 273.1392, shall be paid at9083 percent of the 9.5 estimated entitlement during the fiscal year of the 9.6 entitlement. For the purposes of this subdivision, a district's 9.7 estimated entitlement for special education excess cost aid 9.8 under section 125A.79 equals 70 percent of the district's 9.9 entitlement for the second prior fiscal year. The final 9.10 adjustment payment, according to subdivision 9, must be the 9.11 amount of the actual entitlement, after adjustment for actual 9.12 data, minus the payments made during the fiscal year of the 9.13 entitlement. 9.14 Sec. 7. Minnesota Statutes 2000, section 127A.45, 9.15 subdivision 14, is amended to read: 9.16 Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid 9.17 according to sections 123B.40 to 123B.48 for pupils attending 9.18 nonpublic schools as follows: 9.19 (1) an advance payment by November 30 equal to9083 9.20 percent of the estimated entitlement for the current fiscal 9.21 year; and 9.22 (2) a final payment by October 31 of the following fiscal 9.23 year, adjusted for actual data. 9.24 If a payment advance to meet cash flow needs is requested 9.25 by a district and approved by the commissioner, the state shall 9.26 pay nonpublic pupil transportation aid according to section 9.27 123B.92 by October 31. 9.28 Sec. 8. Minnesota Statutes 2001 Supplement, section 9.29 127A.45, subdivision 14a, is amended to read: 9.30 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 9.31 subdivision 3, the state shall pay 100 percent of the aid for 9.32 the current year according to sections 124D.111, 124D.115, and 9.33 124D.118 and9083 percent of the aid for the current year 9.34 according to section 124D.1156 based on submitted monthly 9.35 vouchers showing meals and milk served. The remainingten17 9.36 percent according to section 124D.1156 shall be paid by October 10.1 30 of the following fiscal year. 10.2 Sec. 9. Minnesota Statutes 2000, section 127A.45, 10.3 subdivision 16, is amended to read: 10.4 Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 10.5 subdivision 3,9083 percent of the amounts under section 10.6 123A.26, subdivision 3, shall be paid in equal installments on 10.7 August 30, December 30, and March 30, with aten17 percent 10.8 final adjustment payment on October 30 of the next fiscal year. 10.9 Sec. 10. [APPROPRIATION, ADVANCE FINAL PAYMENT.] 10.10 $17,500,000 is appropriated from the general fund to the 10.11 commissioner of children, families, and learning to make advance 10.12 final payments to school districts and charter schools under 10.13 section 4. 10.14 ARTICLE 2 10.15 EARLY CHILDHOOD AND FAMILY EDUCATION 10.16 Section 1. Laws 2001, First Special Session chapter 3, 10.17 article 1, section 17, subdivision 2, is amended to read: 10.18 Subd. 2. [SCHOOL READINESS PROGRAM REVENUE.] For revenue 10.19 for school readiness programs according to Minnesota Statutes, 10.20 sections 124D.15 and 124D.16: 10.21 $10,395,000 ..... 2002 10.22$10,395,000$9,667,000 ..... 2003 10.23 The 2002 appropriation includes $1,039,000 for 2001 and 10.24 $9,356,000 for 2002. 10.25 The 2003 appropriation includes $1,039,000 for 2002 and 10.26$9,356,000$8,628,000 for 2003. 10.27 Any balance in the first year does not cancel but is 10.28 available in the second year. 10.29 Sec. 2. Laws 2001, First Special Session chapter 3, 10.30 article 1, section 17, subdivision 3, as amended by Laws 2002, 10.31 chapter 220, article 2, section 2, is amended to read: 10.32 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 10.33 childhood family education aid according to Minnesota Statutes, 10.34 section 124D.135: 10.35$20,725,000$20,746,000 ..... 2002 10.36$20,624,000$19,184,000 ..... 2003 11.1 The 2002 appropriation includes $2,036,000 for 2001 and 11.2$18,689,000$18,710,000 for 2002. 11.3 The 2003 appropriation includes$2,076,000$2,079,000 for 11.4 2002 and$18,548,000$17,105,000 for 2003. 11.5 Any balance in the first year does not cancel but is 11.6 available in the second year. 11.7 Sec. 3. Laws 2001, First Special Session chapter 3, 11.8 article 1, section 17, subdivision 4, is amended to read: 11.9 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 11.10 health and developmental screening aid according to Minnesota 11.11 Statutes, sections 121A.17 and 121A.19: 11.12 $2,661,000 ..... 2002 11.13$2,661,000$2,475,000 ..... 2003 11.14 The 2002 appropriation includes $266,000 for 2001 and 11.15 $2,395,000 for 2002. 11.16 The 2003 appropriation includes $266,000 for 2002 and 11.17$2,395,000$2,209,000 for 2003. 11.18 Any balance in the first year does not cancel but is 11.19 available in the second year. 11.20 Sec. 4. Laws 2001, First Special Session chapter 3, 11.21 article 1, section 17, subdivision 7, as amended by Laws 2002, 11.22 chapter 220, article 2, section 3, is amended to read: 11.23 Subd. 7. [SCHOOL AGE CARE AID.] For school age care aid 11.24 according to Minnesota Statutes, section 124D.22: 11.25 $221,000 ..... 2002 11.26$100,000$94,000 ..... 2003 11.27 The 2002 appropriation includes $30,000 for 2001 and 11.28 $191,000 for 2002. 11.29 The 2003 appropriation includes $21,000 for 2002 and 11.30$79,000$73,000 for 2003. 11.31 Any balance in the first year does not cancel but is 11.32 available in the second year. 11.33 Sec. 5. Laws 2001, First Special Session chapter 3, 11.34 article 1, section 17, subdivision 9, as amended by Laws 2002, 11.35 chapter 220, article 2, section 5, is amended to read: 11.36 Subd. 9. [MFIP CHILD CARE.] For child care assistance 12.1 according to Minnesota Statutes, section 119B.05: 12.2$69,201,000$59,956,000 ..... 2002 12.3$77,122,000$68,182,000 ..... 2003 12.4 Any balance in the first year does not cancel but is 12.5 available in the second year. 12.6 Sec. 6. Laws 2001, First Special Session chapter 3, 12.7 article 1, section 19, subdivision 3, as amended by Laws 2002, 12.8 chapter 220, article 2, section 8, is amended to read: 12.9 Subd. 3. [TRANSITION YEAR FAMILIES.] To provide 12.10 uninterrupted assistance under Minnesota Statutes, section 12.11 119B.03, for families completing transition year child care 12.12 assistance: 12.13$1,404,000$1,695,000 ..... 2002 12.14$1,357,000$1,014,000 ..... 2003 12.15 Any unspent balance from the appropriations for 2002 and 12.16 2003 is returned to the TANF reserve. TANF dollars appropriated 12.17 for this purpose in 2001 which are not encumbered by January 1, 12.18 2002, are returned to the TANF reserve. 12.19 Sec. 7. Laws 2001, First Special Session chapter 3, 12.20 article 1, section 19, subdivision 5, as amended by Laws 2002, 12.21 chapter 220, article 2, section 9, is amended to read: 12.22 Subd. 5. [MFIP SOCIAL SERVICES CHILD CARE.] For social 12.23 services child care costs of eligible MFIP participants under 12.24 Minnesota Statutes, section 119B.05, subdivision 1, clause (5): 12.25$973,000$775,000 ..... 2002 12.26$997,000$801,000 ..... 2003 12.27 Any unspent balance from the appropriations for 2002 and 12.28 2003 is returned to the TANF reserve. TANF dollars appropriated 12.29 for this purpose in 2001 which are not encumbered by January 1, 12.30 2002, are returned to the TANF reserve. 12.31 Sec. 8. Laws 2001, First Special Session chapter 3, 12.32 article 2, section 15, subdivision 3, as amended by Laws 2002, 12.33 chapter 220, article 2, section 10, is amended to read: 12.34 Subd. 3. [COMMUNITY EDUCATION AID.] For community 12.35 education aid according to Minnesota Statutes, section 124D.20: 12.36$14,190,000$14,194,000 ..... 2002 13.1$ 8,186,000$ 7,664,000 ..... 2003 13.2 The 2002 appropriation includes $1,528,000 for 2001 and 13.3$12,662,000$12,666,000 for 2002. 13.4 The 2003 appropriation includes$1,406,000$1,407,000 for 13.5 2002 and$6,780,000$6,257,000 for 2003. 13.6 Any balance in the first year does not cancel but is 13.7 available in the second year. 13.8 Sec. 9. Laws 2001, First Special Session chapter 3, 13.9 article 2, section 15, subdivision 4, is amended to read: 13.10 Subd. 4. [ADULTS WITH DISABILITIES PROGRAM AID.] For 13.11 adults with disabilities programs according to Minnesota 13.12 Statutes, section 124D.56: 13.13 $639,000 ..... 2002 13.14$710,000$661,000 ..... 2003 13.15 The 2002 appropriation includes $0 for 2001 and $639,000 13.16 for 2002. 13.17 The 2003 appropriation includes $71,000 for 2002 and 13.18$639,000$590,000 for 2003. 13.19 Any balance in the first year does not cancel but is 13.20 available in the second year. 13.21 Sec. 10. Laws 2001, First Special Session chapter 3, 13.22 article 2, section 15, subdivision 6, is amended to read: 13.23 Subd. 6. [VIOLENCE PREVENTION EDUCATION GRANTS.] For 13.24 violence prevention education grants according to Minnesota 13.25 Statutes, section 120B.23: 13.26 $1,305,000 ..... 2002 13.27$1,450,000$1,349,000 ..... 2003 13.28 The 2002 appropriation includes $0 for 2001 and $1,305,000 13.29 for 2002. 13.30 The 2003 appropriation includes $145,000 for 2002 and 13.31$1,305,000$1,204,000 for 2003. 13.32 Any balance in the first year does not cancel but is 13.33 available in the second year. 13.34 Sec. 11. Laws 2001, First Special Session chapter 3, 13.35 article 3, section 9, subdivision 5, is amended to read: 13.36 Subd. 5. [ADULT BASIC EDUCATION AID.] For adult basic 14.1 education aid according to Minnesota Statutes, section 124D.531: 14.2 $32,150,000 ..... 2002 14.3$34,731,000$32,282,000 ..... 2003 14.4 The 2002 appropriation includes $3,019,000 for 2001 and 14.5 $29,131,000 for 2002. 14.6 The 2003 appropriation includes $3,237,000 for 2002 and 14.7$31,494,000$29,045,000 for 2003. 14.8 Sec. 12. Laws 2001, First Special Session chapter 3, 14.9 article 3, section 9, subdivision 7, is amended to read: 14.10 Subd. 7. [ADULT GRADUATION AID.] For adult graduation aid 14.11 according to Minnesota Statutes, section 124D.54: 14.12$3,195,000$2,462,000 ..... 2002 14.13$3,356,000$2,327,000 ..... 2003 14.14 The 2002 appropriation includes $305,000 for 2001 and 14.15$2,890,000$2,157,000 for 2002. 14.16 The 2003 appropriation includes$321,000$240,000 for 2002 14.17 and$3,035,000$2,087,000 for 2003. 14.18 Sec. 13. Laws 2001, First Special Session chapter 3, 14.19 article 4, section 5, subdivision 2, as amended by Laws 2002, 14.20 chapter 220, article 2, section 12, is amended to read: 14.21 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 14.22 according to Minnesota Statutes, sections 134.32 to 134.35: 14.23 $8,570,000 ..... 2002 14.24$8,570,000$7,971,000 ..... 2003 14.25 The 2002 appropriation includes $857,000 for 2001 and 14.26 $7,713,000 for 2002. 14.27 The 2003 appropriation includes $857,000 for 2002 and 14.28$7,713,000$7,114,000 for 2003. 14.29 Base level funding for fiscal year 2004 is 14.30$9,823,000$9,754,000 and$9,822,000$9,962,000 for fiscal year 14.31 2005. 14.32 Sec. 14. Laws 2001, First Special Session chapter 3, 14.33 article 4, section 5, subdivision 3, is amended to read: 14.34 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 14.35 grants according to Minnesota Statutes, sections 134.353 and 14.36 134.354, to multicounty, multitype library systems: 15.1 $903,000 ..... 2002 15.2$903,000$840,000 ..... 2003 15.3 The 2002 appropriation includes $90,000 for 2001 and 15.4 $813,000 for 2002. 15.5 The 2003 appropriation includes $90,000 for 2002 and 15.6$813,000$750,000 for 2003. 15.7 Any balance in the first year does not cancel but is 15.8 available in the second year. 15.9 Sec. 15. Laws 2002, chapter 220, article 2, section 14, 15.10 subdivision 1, is amended to read: 15.11 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 15.12 LEARNING.] The sum indicated in this section isappropriated to15.13the commissioner of children, families, and learningtransferred 15.14 from the federal Temporary Assistance for Needy Families block 15.15 grant to the child care and development fund and appropriated to 15.16 the department of children, families, and learning for the 15.17 fiscal year designated. This amount is available for 15.18 expenditure until June 30, 2003. 15.19 Sec. 16. [EFFECTIVE DATE.] 15.20 This article is effective the day following final enactment. 15.21 ARTICLE 3 15.22 K-12 EDUCATION APPROPRIATION ADJUSTMENTS 15.23 Section 1. Minnesota Statutes 2001 Supplement, section 15.24 123B.54, as amended by Laws 2002, chapter 220, article 4, 15.25 section 1, is amended to read: 15.26 123B.54 [DEBT SERVICE APPROPRIATION.] 15.27 (a) $25,987,000 in fiscal year 2002, 15.28$31,892,000$29,941,000 in fiscal year 2003, 15.29$36,629,000$40,075,000 in fiscal year 2004, and 15.30$36,931,000$39,774,000 in fiscal years 2005 and later are 15.31 appropriated from the general fund to the commissioner of 15.32 children, families, and learning for payment of debt service 15.33 equalization aid under section 123B.53. 15.34 (b) The appropriations in paragraph (a) must be reduced by 15.35 the amount of any money specifically appropriated for the same 15.36 purpose in any year from any state fund. 16.1 Sec. 2. Laws 2001, First Special Session chapter 5, 16.2 article 2, section 29, subdivision 2, as amended by Laws 2002, 16.3 chapter 220, article 4, section 2, is amended to read: 16.4 Subd. 2. [REFERENDUM TAX BASE REPLACEMENT AID.] For 16.5 referendum tax base replacement aid according to Minnesota 16.6 Statutes, section 126C.17, subdivision 7a: 16.7$7,616,000$7,027,000 ..... 2003 16.8 The 2003 appropriation includes $0 for 2002 and 16.9$7,616,000$7,027,000 for 2003. 16.10 Sec. 3. Laws 2001, First Special Session chapter 6, 16.11 article 1, section 54, subdivision 2, as amended by Laws 2002, 16.12 chapter 220, article 3, section 8, is amended to read: 16.13 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] (a) For 16.14 general and supplemental education aid: 16.15$3,404,787,000$3,414,168,000 ..... 2002 16.16$4,982,334,000$4,616,467,000 ..... 2003 16.17 The 2002 appropriation includes$323,767,000$333,756,000 16.18 for 2001 and$3,081,020,000$3,080,412,000 for 2002. 16.19 The 2003 appropriation includes$335,220,000$335,163,000 16.20 for 2002 and$4,647,114,000$4,281,304,000 for 2003. 16.21 (b) The fiscal year 2003 appropriation in paragraph (a) is 16.22 reduced by $1,901,000. 16.23 Sec. 4. Laws 2001, First Special Session chapter 6, 16.24 article 1, section 54, subdivision 4, as amended by Laws 2002, 16.25 chapter 220, article 4, section 3, is amended to read: 16.26 Subd. 4. [ABATEMENT AID.] For abatement aid according to 16.27 Minnesota Statutes, section 127A.49: 16.28 $5,698,000 ..... 2002 16.29$2,990,000$2,870,000 ..... 2003 16.30 The 2002 appropriation includes $640,000 for 2001 and 16.31 $5,058,000 for 2002. 16.32 The 2003 appropriation includes $562,000 for 2002 16.33 and$2,428,000$2,308,000 for 2003. 16.34 Sec. 5. Laws 2001, First Special Session chapter 6, 16.35 article 1, section 54, subdivision 5, as amended by Laws 2002, 16.36 chapter 220, article 4, section 4, is amended to read: 17.1 Subd. 5. [NONPUBLIC PUPIL AID.] For nonpublic pupil 17.2 education aid according to Minnesota Statutes, sections 123.79 17.3 and 123B.40 to 123B.43: 17.4$14,441,000$14,254,000 ..... 2002 17.5$15,977,000$14,259,000 ..... 2003 17.6 The 2002 appropriation includes $1,330,000 for 2001 and 17.7$13,111,000$12,924,000 for 2002. 17.8 The 2003 appropriation includes$1,457,000$1,436,000 for 17.9 2002 and$14,520,000$12,823,000 for 2003. 17.10 Sec. 6. Laws 2001, First Special Session chapter 6, 17.11 article 1, section 54, subdivision 6, as amended by Laws 2002, 17.12 chapter 220, article 4, section 5, is amended to read: 17.13 Subd. 6. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 17.14 pupil transportation aid under Minnesota Statutes, section 17.15 123B.92, subdivision 9: 17.16$20,635,000$20,634,000 ..... 2002 17.17$25,347,000$22,236,000 ..... 2003 17.18 The 2002 appropriation includes $2,000,000 for 2001 and 17.19$18,635,000$18,634,000 for 2002. 17.20 The 2003 appropriation includes$2,070,000$2,071,000 for 17.21 2002 and$23,277,000$20,165,000 for 2003. 17.22 Sec. 7. Laws 2001, First Special Session chapter 6, 17.23 article 1, section 54, subdivision 7, as amended by Laws 2002, 17.24 chapter 220, article 4, section 6, is amended to read: 17.25 Subd. 7. [CONSOLIDATION TRANSITION AID.] For districts 17.26 consolidating under Minnesota Statutes, section 123A.485: 17.27$531,000$539,000 ..... 2002 17.28$736,000$225,000 ..... 2003 17.29 The 2002 appropriation includes $44,000 for 2001 and 17.30$487,000$495,000 for 2002. 17.31 The 2003 appropriation includes $54,000 for 2002 17.32 and$682,000$171,000 for 2003. 17.33 Any balance in the first year does not cancel but is 17.34 available in the second year. 17.35 Sec. 8. Laws 2001, First Special Session chapter 6, 17.36 article 2, section 77, subdivision 4, as amended by Laws 2002, 18.1 chapter 220, article 4, section 7, is amended to read: 18.2 Subd. 4. [CHARTER SCHOOL BUILDING LEASE AID.] For building 18.3 lease aid under Minnesota Statutes, section 124D.11, subdivision 18.4 4: 18.5$12,323,000$12,286,000 ..... 2002 18.6$15,330,000$14,394,000 ..... 2003 18.7 The 2002 appropriation includes $1,114,000 for 2001 and 18.8$11,209,000$11,172,000 for 2002. 18.9 The 2003 appropriation includes$1,245,000$1,241,000 for 18.10 2002 and$14,085,000$13,153,000 for 2003. 18.11 Sec. 9. Laws 2001, First Special Session chapter 6, 18.12 article 2, section 77, subdivision 5, as amended by Laws 2002, 18.13 chapter 220, article 4, section 8, is amended to read: 18.14 Subd. 5. [CHARTER SCHOOL STARTUP GRANTS.] For charter 18.15 school startup cost aid under Minnesota Statutes, section 18.16 124D.11: 18.17$2,090,000$2,064,000 ..... 2002 18.18$1,549,000$1,456,000 ..... 2003 18.19 The 2002 appropriation includes $258,000 for 2001 18.20 and$1,832,000$1,806,000 for 2002. 18.21 The 2003 appropriation includes$204,000$200,000 for 2002 18.22 and$1,345,000$1,256,000 for 2003. 18.23 Sec. 10. Laws 2001, First Special Session chapter 6, 18.24 article 2, section 77, subdivision 6, is amended to read: 18.25 Subd. 6. [CHARTER SCHOOL INTEGRATION AID.] For grants to 18.26 charter schools to promote integration and desegregation under 18.27 Minnesota Statutes, section 124D.11, subdivision 6, paragraph 18.28 (e): 18.29 $45,000 ..... 2002 18.30$50,000$47,000 ..... 2003 18.31 The 2002 appropriation includes $0 for 2001 and $45,000 for 18.32 2002. 18.33 The 2003 appropriation includes $5,000 for 2002 and 18.34$45,000$42,000 for 2003. 18.35 Any balance in the first year does not cancel but is 18.36 available in the second year. 19.1 Sec. 11. Laws 2001, First Special Session chapter 6, 19.2 article 2, section 77, subdivision 8, as amended by Laws 2002, 19.3 chapter 220, article 4, section 9, is amended to read: 19.4 Subd. 8. [INTEGRATION AID.] For integration aid: 19.5$63,421,000$63,311,000 ..... 2002 19.6$53,890,000$50,418,000 ..... 2003 19.7 The 2002 appropriation includes $5,729,000 for 2001 and 19.8$57,692,000$57,582,000 for 2002. 19.9 The 2003 appropriation includes$6,410,000$6,398,000 for 19.10 2002 and$47,480,000$44,020,000 for 2003. 19.11 Sec. 12. Laws 2001, First Special Session chapter 6, 19.12 article 2, section 77, subdivision 11, as amended by Laws 2002, 19.13 chapter 220, article 4, section 10, is amended to read: 19.14 Subd. 11. [MAGNET SCHOOL STARTUP AID.] For magnet school 19.15 startup aid under Minnesota Statutes, section 124D.88: 19.16$475,000$448,000 ..... 2002 19.17$298,000$326,000 ..... 2003 19.18 The 2002 appropriation includes $25,000 for 2001 and 19.19$450,000$423,000 for 2002. 19.20 The 2003 appropriation includes$50,000$47,000 for 2002 19.21 and$248,000$279,000 for 2003. 19.22 Sec. 13. Laws 2001, First Special Session chapter 6, 19.23 article 2, section 77, subdivision 15, as amended by Laws 2002, 19.24 chapter 220, article 4, section 11, is amended to read: 19.25 Subd. 15. [SUCCESS FOR THE FUTURE.] For American Indian 19.26 success for the future grants according to Minnesota Statutes, 19.27 section 124D.81: 19.28 $1,924,000 ..... 2002 19.29$2,137,000$1,987,000 ..... 2003 19.30 The 2002 appropriation includes $0 for 2001 and $1,924,000 19.31 for 2002. 19.32 The 2003 appropriation includes $213,000 for 2002 19.33 and$1,924,000$1,774,000 for 2003. 19.34 Sec. 14. Laws 2001, First Special Session chapter 6, 19.35 article 2, section 77, subdivision 18, as amended by Laws 2002, 19.36 chapter 220, article 4, section 12, is amended to read: 20.1 Subd. 18. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 20.2 school aid under Minnesota Statutes, section 124D.83: 20.3$2,304,000$2,147,000 ..... 2002 20.4$2,408,000$2,221,000 ..... 2003 20.5 The 2002 appropriation includes $192,000 for 2001 and 20.6$2,112,000$1,955,000 for 2002. 20.7 The 2003 appropriation includes$235,000$217,000 for 2002 20.8 and$2,173,000$2,004,000 for 2003. 20.9 Sec. 15. Laws 2001, First Special Session chapter 6, 20.10 article 3, section 21, subdivision 2, as amended by Laws 2002, 20.11 chapter 220, article 4, section 13, is amended to read: 20.12 Subd. 2. [SPECIAL EDUCATION AID.] For special education 20.13 aid according to Minnesota Statutes, section 125A.75: 20.14$507,841,000$507,928,000 ..... 2002 20.15$532,282,000$495,032,000 ..... 2003 20.16 The 2002 appropriation includes $47,400,000 for 2001 and 20.17$460,441,000$460,528,000 for 2002. 20.18 The 2003 appropriation includes$51,160,000$51,170,000 for 20.19 2002 and$481,122,000$443,862,000 for 2003. 20.20 Sec. 16. Laws 2001, First Special Session chapter 6, 20.21 article 3, section 21, subdivision 3, as amended by Laws 2002, 20.22 chapter 220, article 4, section 14, is amended to read: 20.23 Subd. 3. [AID FOR CHILDREN WITH A DISABILITY.] For aid 20.24 according to Minnesota Statutes, section 125A.75, subdivision 3, 20.25 for children with a disability placed in residential facilities 20.26 within the district boundaries for whom no district of residence 20.27 can be determined: 20.28$1,358,000$1,346,000 ..... 2002 20.29$3,161,000$2,363,000 ..... 2003 20.30 If the appropriation for either year is insufficient, the 20.31 appropriation for the other year is available. 20.32 Any balance in the first year does not cancel but is 20.33 available in the second year. 20.34 Sec. 17. Laws 2001, First Special Session chapter 6, 20.35 article 3, section 21, subdivision 4, as amended by Laws 2002, 20.36 chapter 220, article 4, section 15, is amended to read: 21.1 Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 21.2 teacher travel for home-based services according to Minnesota 21.3 Statutes, section 125A.75, subdivision 1: 21.4$143,000$139,000 ..... 2002 21.5$148,000$134,000 ..... 2003 21.6 The 2002 appropriation includes$14,000$13,000 for 2001 21.7 and$129,000$126,000 for 2002. 21.8 The 2003 appropriation includes$15,000$14,000 for 2002 21.9 and$133,000$120,000 for 2003. 21.10 Sec. 18. Laws 2001, First Special Session chapter 6, 21.11 article 3, section 21, subdivision 5, as amended by Laws 2002, 21.12 chapter 220, article 4, section 16, is amended to read: 21.13 Subd. 5. [SPECIAL EDUCATION EXCESS COST AID.] For excess 21.14 cost aid: 21.15$103,061,000$92,622,000 ..... 2002 21.16$105,289,000$60,372,000 ..... 2003 21.17 The 2002 appropriation includes $9,889,000 for 2001 and 21.18$93,172,000$82,733,000 for 2002. 21.19 The 2003 appropriation includes$10,352,000$9,192,000 for 21.20 2002 and$94,937,000$51,180,000 for 2003. 21.21 Sec. 19. Laws 2001, First Special Session chapter 6, 21.22 article 3, section 21, subdivision 7, as amended by Laws 2002, 21.23 chapter 220, article 4, section 17, is amended to read: 21.24 Subd. 7. [TRANSITION PROGRAMS; STUDENTS WITH 21.25 DISABILITIES.] For aid for transition programs for pupils with 21.26 disabilities according to Minnesota Statutes, section 124D.454: 21.27$8,960,000$8,962,000 ..... 2002 21.28$8,952,000$8,328,000 ..... 2003 21.29 The 2002 appropriation includes $896,000 for 2001 and 21.30$8,064,000$8,066,000 for 2002. 21.31 The 2003 appropriation includes $896,000 for 2002 21.32 and$8,056,000$7,432,000 for 2003. 21.33 Sec. 20. Laws 2001, First Special Session chapter 6, 21.34 article 4, section 27, subdivision 2, as amended by Laws 2002, 21.35 chapter 220, article 4, section 18, is amended to read: 21.36 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 22.1 aid according to Minnesota Statutes, section 123B.57, 22.2 subdivision 5: 22.3$13,630,000$12,280,000 ..... 2002 22.4$10,800,000$ 9,085,000 ..... 2003 22.5 The 2002 appropriation includes $1,480,000 for 2001 and 22.6$12,150,000$10,800,000 for 2002. 22.7 The 2003 appropriation includes$1,350,000$1,200,000 for 22.8 2002 and$9,450,000$7,885,000 for 2003. 22.9 Sec. 21. Laws 2001, First Special Session chapter 6, 22.10 article 4, section 27, subdivision 3, as amended by Laws 2002, 22.11 chapter 220, article 4, section 19, is amended to read: 22.12 Subd. 3. [DEBT SERVICE AID.] For debt service aid 22.13 according to Minnesota Statutes, section 123B.53, subdivision 6: 22.14 $25,987,000 ..... 2002 22.15$31,892,000$29,941,000 ..... 2003 22.16 The 2002 appropriation includes $2,890,000 for 2001 and 22.17 $23,097,000 for 2002. 22.18 The 2003 appropriation includes $2,566,000 for 2002 22.19 and$29,326,000$27,375,000 for 2003. 22.20 Sec. 22. Laws 2001, First Special Session chapter 6, 22.21 article 4, section 27, subdivision 5, as amended by Laws 2002, 22.22 chapter 220, article 4, section 20, is amended to read: 22.23 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 22.24 alternative facilities bonding aid, according to Minnesota 22.25 Statutes, section 123B.59, subdivision 1: 22.26 $19,280,000 ..... 2002 22.27$19,287,000$17,937,000 ..... 2003 22.28 The 2002 appropriation includes $1,921,000 for 2001 and 22.29 $17,359,000 for 2002. 22.30 The 2003 appropriation includes $1,928,000 for 2002 22.31 and$17,359,000$16,009,000 for 2003. 22.32 Sec. 23. Laws 2001, First Special Session chapter 6, 22.33 article 5, section 13, subdivision 3, is amended to read: 22.34 Subd. 3. [SCHOOL BREAKFAST.] For school breakfast aid 22.35 under Minnesota Statutes, section 124D.115: 22.36 $640,000 ..... 2002 23.1$700,000$680,000 ..... 2003 23.2 Sec. 24. [EFFECTIVE DATE.] 23.3 This article is effective the day following final enactment. 23.4 ARTICLE 4 23.5 K-12 EDUCATION 23.6 Section 1. Minnesota Statutes 2000, section 124D.69, is 23.7 amended by adding a subdivision to read: 23.8 Subd. 3. [UNCOMMON SCHOOLS SERVING STUDENTS WITH CHEMICAL 23.9 DEPENDENCIES; ALLOCATION OF FUNDS.] In addition to the amounts 23.10 provided in section 124D.68, subdivision 9, a school district 23.11 may allocate funds from its undesignated general fund to a 23.12 private contracted alternative program, including a private 23.13 contracted alternative program that is tuition free and provides 23.14 a comprehensive secondary academic program for students who have 23.15 been assessed chemically dependent and who have completed a 23.16 licensed treatment program for chemical dependency. 23.17 Sec. 2. Minnesota Statutes 2000, section 125A.65, 23.18 subdivision 1, is amended to read: 23.19 Subdivision 1. [RESPONSIBILITY ALLOCATED.] Responsibility 23.20 for special instruction and services for avisually23.21disabledblind/visually impaired orhearing impaireddeaf/hard 23.22 of hearing child attending the Minnesota state academy for the 23.23 deaf or the Minnesota state academy for the blind must be 23.24 determined in subdivisions 2 to 10. 23.25 Sec. 3. Minnesota Statutes 2000, section 125A.65, 23.26 subdivision 3, is amended to read: 23.27 Subd. 3. [EDUCATIONAL PROGRAM; TUITION.] When it is 23.28 determined pursuant to section 125A.69, subdivision 1 or 2, that 23.29 the child is entitled to attend either school, the board of the 23.30 Minnesota state academies must provide the appropriate 23.31 educational program for the child. The board of the Minnesota 23.32 state academies must make a tuition charge to the child's 23.33 district of residence for the cost of providing the program. 23.34 The amount of tuition charged must not exceed thebasic revenue23.35of the districtgeneral education revenue formula allowance 23.36 times the pupil unit weighting factor pursuant to section 24.1 126C.05 for that child, for the amount of time the child is in 24.2 the program.For purposes of this subdivision, "basic revenue"24.3has the meaning given it in section 126C.10, subdivision 2.The 24.4 district of the child's residence must pay the tuition and may 24.5 claim general education aid for the child. Tuition received by 24.6 the board of the Minnesota state academies, except for tuition 24.7 received under subdivision 4, must be deposited in the state 24.8 treasury as provided in subdivision 8. 24.9 Sec. 4. Minnesota Statutes 2000, section 125A.65, 24.10 subdivision 8, is amended to read: 24.11 Subd. 8. [STUDENT COUNT; TUITION.] (a) On May 1of each24.12year, 1996, and each year thereafter, the board of the Minnesota 24.13 state academies shall count the actual number of Minnesota 24.14 residentkindergarten and elementary students and the actual24.15number of Minnesota resident secondaryspecial education 24.16 eligible students enrolled and receiving education services at 24.17 the Minnesota state academy for the deaf and the Minnesota state 24.18 academy for the blind. The board of the Minnesota state 24.19 academies shall deposit in the state treasury an amount equal to 24.20 all tuition received less:the amount calculated in paragraph 24.21 (b). 24.22(1) the total number of students on May 1 less 175, times24.23the ratio of the number of kindergarten and elementary students24.24to the total number of students on May 1, times the general24.25education formula allowance; plus24.26(2) the total number of students on May 1 less 175, times24.27the ratio of the number of secondary students on May 1 to the24.28total number of students on May 1, times 1.3, times the general24.29education formula allowance.24.30 (b) The Minnesota state academies shall credit to their 24.31 general operation account an amount equal to the tuition 24.32 received which represents tuition earned for the total number of 24.33 students over 175 based on: 24.34 (1) the total number of enrolled students on May 1 less 24.35 175; times 24.36 (2) the ratio of the number of students in that grade 25.1 category to the total number of students on May 1; times 25.2 (3) the general education revenue formula allowance; times 25.3 (4) the pupil unit weighting factor pursuant to section 25.4 126C.05. 25.5 Sec. 5. Minnesota Statutes 2000, section 125A.65, 25.6 subdivision 9, is amended to read: 25.7 Subd. 9. [CALCULATION.] The sum provided by the 25.8 calculation in subdivision 8, clauses (1) and (2),must be 25.9 deposited in the state treasury and credited to the general 25.10 operation account of theacademy for the deaf and the academy25.11for the blindMinnesota state academy for the deaf and the 25.12 Minnesota state academy for the blind. 25.13 Sec. 6. Minnesota Statutes 2001 Supplement, section 25.14 126C.10, subdivision 13, is amended to read: 25.15 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 25.16 fiscal year 2000 and thereafter, total operating capital revenue 25.17 for a district equals the amount determined under paragraph (b) 25.18 or (c), plus $73 times the adjusted marginal cost pupil units 25.19 for the school year. The revenue must be placed in a reserved 25.20 account in the general fund and may only be used according to 25.21 paragraph (d) or subdivision 14. 25.22 (b) For fiscal years 2000 and later, capital revenue for a 25.23 district equals $100 times the district's maintenance cost index 25.24 times its adjusted marginal cost pupil units for the school year. 25.25 (c) For fiscal years 2000 and later, the revenue for a 25.26 district that operates a program under section 124D.128, is 25.27 increased by an amount equal to $30 times the number of marginal 25.28 cost pupil units served at the site where the program is 25.29 implemented. 25.30 (d) For fiscal years 2001and, 2002, and 2003, the district 25.31 must reserve an amount equal to $5 per adjusted marginal cost 25.32 pupil unit for telecommunication access costs. Reserve revenue 25.33 under this paragraph must first be used to pay for ongoing or 25.34 recurring telecommunication access costs, including access to 25.35 data and video connections, including Internet access. Any 25.36 revenue remaining after covering all ongoing or recurring access 26.1 costs may be used for computer hardware or equipment. 26.2 Sec. 7. Minnesota Statutes 2001 Supplement, section 26.3 126C.17, subdivision 7, is amended to read: 26.4 Subd. 7. [REFERENDUM EQUALIZATION AID.] (a) A district's 26.5 referendum equalization aid equals the difference between its 26.6 referendum equalization revenue and levy. 26.7 (b) If a district's actual levy for first or second tier 26.8 referendum equalization revenue is less than its maximum levy 26.9 limit for that tier, aid shall be proportionately reduced. 26.10 (c) Notwithstanding paragraph (a), the referendum 26.11 equalization aid for a district, where the referendum 26.12 equalization aid under paragraph (a) exceeds 90 percent of the 26.13 referendum revenue, must not exceed 18.2 percent of the formula 26.14 allowance times the district's resident marginal cost pupil 26.15 units. A district's referendum levy is increased by the amount 26.16 of any reduction in referendum aid under this paragraph. 26.17 [EFFECTIVE DATE.] This section is effective for operating 26.18 referendum elections January 1, 2002, and later. 26.19 Sec. 8. Laws 2001, First Special Session chapter 6, 26.20 article 7, section 14, as amended by Laws 2002, chapter 220, 26.21 article 3, section 16, is amended to read: 26.22 Sec. 14. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 26.23 EDUCATION.] 26.24 The sums indicated in this section are appropriated from 26.25 the general fund to the Perpich Center for Arts Education for 26.26 the fiscal years designated: 26.27$7,431,000$7,681,000 ..... 2002 26.28$7,316,000$7,816,000 ..... 2003 26.29 $150,000 each year is to extend the partnership network to 26.30 up to five new partnership sites and for developing 26.31 whole-school, arts-based teaching and learning curriculum at new 26.32 sites. 26.33 Any balance in the first year does not cancel but is 26.34 available in the second year. 26.35 Sec. 9. [REFERENDUM TRANSFER ADJUSTMENT.] 26.36 Notwithstanding Minnesota Statutes, section 126C.17, 27.1 subdivision 1, paragraph (b), for fiscal year 2003 and later, 27.2 the initial referendum allowance for independent school district 27.3 No. 709, Duluth, equals the sum of the allowance under Minnesota 27.4 Statutes, section 126C.16, subdivision 2, plus the referendum 27.5 conversion allowance approved under Minnesota Statutes, section 27.6 126C.17, subdivision 13, minus $373. If the district has more 27.7 than one referendum authority, the reduction must be computed 27.8 separately for each authority. The reduction must be applied 27.9 first to the referendum authority with the earliest expiration 27.10 date. The district's initial referendum allowance may not be 27.11 less than zero. 27.12 Sec. 10. [DECLINING PUPIL UNIT AID; ALBERT LEA.] 27.13 Subdivision 1. [FISCAL YEAR 2003.] For fiscal year 2003, 27.14 independent school district No. 241, Albert Lea, is eligible for 27.15 declining enrollment aid equal to $300,000. 27.16 Subd. 2. [FISCAL YEAR 2004.] For fiscal year 2004, 27.17 independent school district No. 241, Albert Lea, is eligible for 27.18 declining enrollment aid equal to 75 percent of the fiscal year 27.19 2003 appropriation in subdivision 1. 27.20 Subd. 3. [FISCAL YEAR 2005.] For fiscal year 2005, 27.21 independent school district No. 241, Albert Lea, is eligible for 27.22 declining enrollment aid equal to 50 percent of the fiscal year 27.23 2003 appropriation in subdivision 1. 27.24 Subd. 4. [FISCAL YEAR 2006.] For fiscal year 2006, 27.25 independent school district No. 241, Albert Lea, is eligible for 27.26 declining enrollment aid equal to 25 percent of the fiscal year 27.27 2003 appropriation in subdivision 1. 27.28 Sec. 11. [DECLINING ENROLLMENT; LTV DISLOCATION.] 27.29 Subdivision 1. [FISCAL YEAR 2003.] For fiscal year 2003, 27.30 independent school district No. 2711, Mesabi East, is eligible 27.31 for declining enrollment aid equal to $200,000. 27.32 Subd. 2. [FISCAL YEAR 2004.] For fiscal year 2004, 27.33 independent school district No. 2711, Mesabi East, is eligible 27.34 for declining enrollment aid equal to 75 percent of the amount 27.35 that the district received in the fiscal year 2003 appropriation 27.36 in subdivision 1. 28.1 Subd. 3. [FISCAL YEAR 2005.] For fiscal year 2005, 28.2 independent school district No. 2711, Mesabi East, is eligible 28.3 for declining enrollment aid equal to 50 percent of the amount 28.4 that the district received in the fiscal year 2003 appropriation 28.5 in subdivision 1. 28.6 Subd. 4. [FISCAL YEAR 2006.] For fiscal year 2006, 28.7 independent school district No. 2711, Mesabi East, is eligible 28.8 for declining enrollment aid equal to 25 percent of the amount 28.9 that the district received in the fiscal year 2003 appropriation 28.10 in subdivision 1. 28.11 [EFFECTIVE DATE.] This section is effective the day 28.12 following final enactment. 28.13 Sec. 12. [FUND TRANSFER; BUTTERFIELD.] 28.14 Notwithstanding Minnesota Statutes, section 123B.79 or 28.15 123B.80, on June 30, 2002, independent school district No. 836, 28.16 Butterfield, may permanently transfer up to $117,000 from its 28.17 reserves for operating capital account in its general fund to 28.18 the undesignated fund balance. 28.19 [EFFECTIVE DATE.] This section is effective the day 28.20 following final enactment. 28.21 Sec. 13. [FUND TRANSFER; TRUMAN.] 28.22 Notwithstanding Minnesota Statutes, section 123B.79 or 28.23 123B.80, on June 30, 2002, independent school district No. 458, 28.24 Truman, may permanently transfer up to $500,000 from its 28.25 reserves for operating capital account in its general fund to 28.26 the undesignated fund balance. 28.27 [EFFECTIVE DATE.] This section is effective the day 28.28 following final enactment. 28.29 Sec. 14. [APPROPRIATION.] 28.30 (a) $300,000 in fiscal year 2003 is appropriated from the 28.31 general fund to the commissioner of children, families, and 28.32 learning for declining pupil unit aid to independent school 28.33 district No. 241, Albert Lea. 28.34 (b) In addition to the amounts appropriated for general and 28.35 supplemental education aid, $295,000 in fiscal year 2003 is 28.36 appropriated from the general fund to the commissioner of 29.1 children, families, and learning for the aid portion of the 29.2 referendum transfer adjustment for independent school district 29.3 No. 709, Duluth. 29.4 (c) $200,000 in fiscal year 2003 is appropriated from the 29.5 general fund to the commissioner of children, families, and 29.6 learning for declining pupil unit aid to independent school 29.7 district No. 2711, Mesabi East. 29.8 Sec. 15. [EFFECTIVE DATE.] 29.9 Except as otherwise provided in this article, this article 29.10 is effective the day following final enactment. 29.11 ARTICLE 5 29.12 HIGHER EDUCATION 29.13 Section 1. Minnesota Statutes 2000, section 136A.121, 29.14 subdivision 7, is amended to read: 29.15 Subd. 7. [INSUFFICIENT APPROPRIATION.] If the amount 29.16 appropriated is determined by the office to be insufficient to 29.17 make full awards to applicants under subdivision 5, before any 29.18 award for that year has been disbursed, awards must be reduced 29.19 by 29.20 (1) adding a surcharge tothe contribution ofthe 29.21 applicant'sparents, andassigned family responsibility, as 29.22 defined in section 136A.101, subdivision 5a; and 29.23 (2) a percentage increase in the applicant'scontribution29.24 assigned student responsibility, as defined in subdivision 5. 29.25 Sec. 2. [STATE GRANT APPROPRIATION.] 29.26 $5,000,000 is appropriated from the general fund to the 29.27 higher education services office to make state grants. This 29.28 appropriation is added to the appropriation in Laws 2001, First 29.29 Special Session chapter 1, article 1, section 2, subdivision 2, 29.30 for fiscal year 2002. 29.31 The higher education services office, by July 1, 2002, must 29.32 make a determination of the projected sufficiency or deficiency 29.33 in state money available for the state grant program to make 29.34 full state grant awards through fiscal year 2003. If it is 29.35 determined that a deficiency is projected, then, notwithstanding 29.36 Minnesota Statutes, section 136A.121, subdivision 7, the higher 30.1 education services office shall immediately transfer to the 30.2 state grant appropriation from the work study appropriation and 30.3 notwithstanding Minnesota Statutes, section 136A.125, 30.4 subdivision 4c, from the child care grant appropriation in Laws 30.5 2001, First Special Session chapter 1, article 1, section 2, the 30.6 amount necessary to make full state grant awards in fiscal year 30.7 2003. If state money available for the state grant program 30.8 continues to be insufficient to make full state grant awards 30.9 after the initial transfers, subsequent transfers must be made 30.10 before any reduction in state grant awards under Minnesota 30.11 Statutes, section 136A.121, subdivision 7, is made. 30.12 Sec. 3. [EFFECTIVE DATE.] 30.13 This article is effective the day following final enactment. 30.14 ARTICLE 6 30.15 ENVIRONMENT AND NATURAL RESOURCES 30.16 Section 1. [SCORE BLOCK GRANT APPROPRIATION SHIFT.] 30.17 $9,000,000 of the appropriation in Laws 2001, First Special 30.18 Session chapter 2, section 3, from the general fund to the 30.19 office of environmental assistance for SCORE block grants to 30.20 counties in fiscal year 2003 is canceled. This is a onetime 30.21 reduction and the same amount must be restored to the general 30.22 fund budget base for fiscal year 2004. 30.23 $9,000,000 is appropriated from the solid waste fund to the 30.24 office of environmental assistance for SCORE block grants to 30.25 counties in fiscal year 2003. This is a onetime appropriation. 30.26 [EFFECTIVE DATE.] This section is effective the day 30.27 following final enactment. 30.28 Sec. 2. Minnesota Statutes 2000, section 115A.557, 30.29 subdivision 1, is amended to read: 30.30 Subdivision 1. [DISTRIBUTION; FORMULA.] Any funds 30.31 appropriated to the director for the purpose of distribution to 30.32 counties under this section must be distributed each fiscal year 30.33 by the director based on population, except a county may not 30.34 receive less than $55,000 in a fiscal year. If the amount 30.35 available for distribution under this section is less than the 30.36 amount available in fiscal year 2001, the minimum county payment 31.1 under this section is reduced proportionately. For purposes of 31.2 this subdivision, "population" has the definition given in 31.3 section 477A.011, subdivision 3. A county that participates in 31.4 a multicounty district that manages solid waste and that has 31.5 responsibility for recycling programs as authorized in section 31.6 115A.552, must pass through to the districts funds received by 31.7 the county in excess of the$55,000 annual baseminimum county 31.8 payment under this section in proportion to the population of 31.9 the county served by that district. 31.10 [EFFECTIVE DATE.] This section is effective the day 31.11 following final enactment. 31.12 Sec. 3. Minnesota Statutes 2000, section 115A.96, 31.13 subdivision 2, is amended to read: 31.14 Subd. 2. [MANAGEMENT PROGRAM.] Theagencyoffice shall 31.15 establish a statewide program to manage household hazardous 31.16 wastes. The program must include: 31.17 (1) the establishment and operation of collection sites; 31.18 and 31.19 (2) the provision of information, education, and technical 31.20 assistance regarding proper management of household hazardous 31.21 wastes. 31.22 [EFFECTIVE DATE.] This section is effective July 1, 2003. 31.23 Sec. 4. Minnesota Statutes 2000, section 115A.96, 31.24 subdivision 3, is amended to read: 31.25 Subd. 3. [OTHER PARTICIPANTS.] (a) Theagencyoffice may 31.26 establish or operate all or part of the management program or 31.27 may provide for services by contract or other agreement with 31.28 public or private entities. 31.29 (b) Theagencyoffice shall allow these programs to accept 31.30 up to 100 pounds of waste per year from a hazardous waste 31.31 generator that generates 220 pounds or less of hazardous waste 31.32 per month. 31.33 [EFFECTIVE DATE.] This section is effective July 1, 2003. 31.34 Sec. 5. Minnesota Statutes 2000, section 115A.96, 31.35 subdivision 4, is amended to read: 31.36 Subd. 4. [MANAGEMENT.] Any person who establishes or 32.1 operates all or part of a household hazardous waste management 32.2 program shall manage collected waste in compliance with 32.3 standards applicable to a hazardous waste generator. If 32.4 collected waste must be stored for a time exceeding those 32.5 standards, theagencyoffice or other entity shall obtain the 32.6 approval of the commissioner of the agency and shall manage the 32.7 waste in compliance with applicable standards for the use and 32.8 management of containers, but no facility permit is required. 32.9 Waste accepted under subdivision 3, paragraph (b), must be 32.10 managed in accordance with standards applicable to the waste. 32.11 [EFFECTIVE DATE.] This section is effective July 1, 2003. 32.12 Sec. 6. Minnesota Statutes 2000, section 115A.96, 32.13 subdivision 5, is amended to read: 32.14 Subd. 5. [OTHER PROGRAMS.] A person must notify the 32.15 commissioner of the agency and director of the office before 32.16 establishing and operating any part of a household hazardous 32.17 waste management program. 32.18 [EFFECTIVE DATE.] This section is effective July 1, 2003. 32.19 Sec. 7. Minnesota Statutes 2000, section 115A.96, 32.20 subdivision 7, as added by Laws 2002, chapter 265, section 2, is 32.21 amended to read: 32.22 Subd. 7. [INDEMNIFICATION; MUNICIPALITIES.] (a) A 32.23 municipality, when operating or participating in a household 32.24 hazardous waste management program pursuant to a contract with 32.25 theagencyoffice under this section or other law, is an 32.26 employee of the state, certified to be acting within the scope 32.27 of employment, for purposes of the indemnification provisions of 32.28 section 3.736, subdivision 9, for claims that arise out of the 32.29 transportation, management, or disposal of any waste covered by 32.30 the contract: 32.31 (1) from and after the time the waste permanently leaves 32.32 the municipality's possession and comes into the possession of 32.33 theagency'soffice's authorized transporter; and 32.34 (2) during the time the waste is transported between the 32.35 municipality's facilities by theagency'soffice's authorized 32.36 transporter. 33.1 (b) The state is not obligated to defend or indemnify a 33.2 municipality under this subdivision to the extent of the 33.3 municipality's liability insurance. The municipality's right to 33.4 indemnity is not a waiver of the limitations, defenses, and 33.5 immunities available to either the municipality or the state by 33.6 law. 33.7 [EFFECTIVE DATE.] This section is effective July 1, 2003. 33.8 Sec. 8. Laws 2002, chapter 220, article 8, section 15, is 33.9 amended to read: 33.10 Sec. 15. [INCREASE TO WATER QUALITY PERMIT FEES.] 33.11 (a) The pollution control agency shall collect water 33.12 quality permit application and annual fees that reflect the fees 33.13 in Minnesota Rules, part 7002.0310, increased to the amounts 33.14 described in paragraphs (b) to (g). 33.15 (b) The application fee for individual permits, general 33.16 permits, and general industrial stormwater permits is $240. 33.17 (c) The annual fees for individual National Pollutant 33.18 Discharge Elimination System permits for major municipal 33.19 facilities are as follows: 33.20 Design Flow in 33.21 Million Gallons Per Day Annual Fee 33.23 50 and over$175,750$175,500 33.24 20 to 49.99 $40,350 33.25 5 to 19.99 $14,350 33.26 Up to 4.99 $5,900 33.27 (d) The annual fees for individual National Pollutant 33.28 Discharge Elimination System permits for major nonmunicipal 33.29 facilities are as follows: 33.30 Design Flow in 33.31 Million Gallons Per Day Annual Fee 33.33 20 to 49.99 $44,200 33.34 5 to 19.99 $18,250 33.35 Up to 4.99 $8,450 33.36 Cooling or mine pit 33.37 dewatering (any flow) $16,900 33.38 (e) The annual fees for individual National Pollutant 33.39 Discharge Elimination System and State Disposal System permits 33.40 for nonmajor municipal facilities with design flows greater than 33.41 0.100 million gallons per day are $1,450. 33.42 (f) The annual fees for general industrial stormwater 34.1 permits are $280. 34.2 (g) The annual fees for general National Pollutant 34.3 Discharge Elimination System and State Disposal System permits 34.4 are $345. 34.5 (h) The application and annual fees are not increased for 34.6 general construction stormwater permits and sanitary sewer 34.7 extension permits. The annual fees are not increased for 34.8 National Pollutant Discharge Elimination System and State 34.9 Disposal System permits regulating municipal nonmajors with 34.10 facility design flow of 0 to .100, sewage sludge landspreading 34.11 facilities, and nonmajor nonmunicipal facilities. 34.12 (i) The increased permit fees are effective July 1, 2002. 34.13 The agency shall adopt amended water quality permit fee rules 34.14 incorporating the permit fee increases in this subdivision under 34.15 Minnesota Statutes, section 14.389. The pollution control 34.16 agency shall begin collecting the increased permit fees on July 34.17 1, 2002, even if the rule adoption process has not been 34.18 initiated or completed. Notwithstanding Minnesota Statutes, 34.19 section 14.18, subdivision 2, the increased permit fees 34.20 reflecting the permit fee increases in this section and the rule 34.21 amendments incorporating those permit fee increases do not 34.22 require further legislative approval. 34.23 [EFFECTIVE DATE.] This section is effective the day 34.24 following final enactment. 34.25 Sec. 9. [HOUSEHOLD HAZARDOUS WASTE PROGRAM TRANSFER.] 34.26 Responsibility for the household hazardous waste program is 34.27 transferred under Minnesota Statutes, section 15.039, from the 34.28 pollution control agency to the office of environmental 34.29 assistance on July 1, 2003. The amount of base funding to be 34.30 transferred is $1,041,000 from the solid waste fund. 34.31 Sec. 10. [DIRECTOR OF THE OFFICE OF ENVIRONMENTAL 34.32 ASSISTANCE; APPOINTING AUTHORITY.] 34.33 The governor is encouraged to evaluate the advantages and 34.34 disadvantages associated with making the governor the appointing 34.35 authority for the director of environmental assistance, instead 34.36 of the commissioner of the pollution control agency as required 35.1 by Minnesota Statutes, section 115A.055, subdivision 1. 35.2 [EFFECTIVE DATE.] This section is effective the day 35.3 following final enactment. 35.4 ARTICLE 7 35.5 STATE GOVERNMENT 35.6 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 35.7 The dollar amounts in the columns under "APPROPRIATIONS" 35.8 are added to or, if shown in parentheses, are subtracted from 35.9 the appropriations in Laws 2001, First Special Session chapter 35.10 10, or other law to the specified agencies. The appropriations 35.11 are from the general fund or other named fund and are available 35.12 for the fiscal years indicated for each purpose. The figure 35.13 "2002" or "2003" means that the addition to or subtraction from 35.14 the appropriations listed under the figure are for the fiscal 35.15 year ending June 30, 2002, or June 30, 2003, respectively. 35.16 SUMMARY BY FUND 35.17 2002 2003 TOTAL 35.18 APPROPRIATIONS 35.19 General $ (2,995,000) $ (1,620,000)$ (4,615,000) 35.20 TRANSFERS IN (2,000,000) -0- (2,000,000) 35.21 APPROPRIATIONS 35.22 Available for the Year 35.23 Ending June 30 35.24 2002 2003 35.25 Sec. 2. LEGISLATURE 35.26 Subdivision 1. Total 35.27 Appropriation (3,000,000) (2,000,000) 35.28 Subd. 2. Senate 35.29 (1,000,000) (1,000,000) 35.30 Subd. 3. House of Representatives 35.31 (2,000,000) (1,000,000) 35.32 $1,000,000 of the reduction in the 35.33 first year is from amounts previously 35.34 carried forward under Minnesota 35.35 Statutes, section 16A.281. 35.36 Sec. 3. GOVERNOR -0- 375,000 35.37 $200,000 is to the office of the 35.38 governor to reopen the governor's 35.39 residence and make it available for 35.40 public use. 35.41 $175,000 is to the commissioner of 36.1 public safety to provide security at 36.2 the governor's residence. 36.3 Sec. 4. ADMINISTRATION 36.4 $2,000,000 of the balance in the State 36.5 Building Code account in the state 36.6 government special revenue fund as of 36.7 June 30, 2002, is canceled and must be 36.8 transferred to the general fund. 36.9 Sec. 5. UNIFORM LAWS COMMISSION 5,000 5,000 36.10 These appropriations are added to the 36.11 appropriations in Laws 2001, First 36.12 Special Session chapter 8, article 4, 36.13 section 8. 36.14 Sec. 6. Minnesota Statutes 2000, section 16A.28, 36.15 subdivision 6, is amended to read: 36.16 Subd. 6. [CANCELED OCTOBER 15.] On October 15 all 36.17 allotments and encumbrances for the last fiscal year shall be 36.18 canceled unless an agency head certifies to the commissioner 36.19 that there is an encumbrance for services renderedor, goods 36.20 ordered, or grants issued in the last fiscal year, or certifies 36.21 that funding will be carried forward under subdivision 36.22 1. Encumbrances for grants issued by June 30 may be certified 36.23 for a period of one year beyond the year in which the funds were 36.24 originally appropriated. Services rendered under grant 36.25 contracts may occur during the certification period. The 36.26 commissioner may:reinstate the part of the cancellation needed 36.27 to meet the certified encumbrance or charge the certified 36.28 encumbrance against the current year's appropriation. 36.29 Sec. 7. Minnesota Statutes 2000, section 16B.27, is 36.30 amended by adding a subdivision to read: 36.31 Subd. 6. [USE BY NONSTATE ENTITIES.] A nonstate entity 36.32 using the governor's residence must pay the state for all direct 36.33 and indirect costs associated with use of the facility. 36.34 Sec. 8. Laws 1997, chapter 202, article 2, section 61, as 36.35 amended by Laws 1999, chapter 250, article 1, section 106, and 36.36 Laws 2001, First Special Session chapter 10, article 2, section 36.37 85, is amended to read: 36.38 Sec. 61. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 36.39 Appointing authorities in state government may allow each 36.40 employee to take an unpaid leave of absence for up to 320 hours 37.1 during the period ending June 30, 2003, and an additional 160 37.2 hours during the period beginning July 1, 2003, and ending June 37.3 30, 2005. Each appointing authority approving such a leave 37.4 shall allow the employee to continue accruing vacation and sick 37.5 leave, be eligible for paid holidays and insurance benefits, 37.6 accrue seniority, and accrue service credit in state retirement 37.7 plans permitting service credits for authorized leaves of 37.8 absence as if the employee had actually been employed during the 37.9 time of the leave. If the leave of absence is for one full pay 37.10 period or longer, any holiday pay shall be included in the first 37.11 payroll warrant after return from the leave of absence. The 37.12 appointing authority shall attempt to grant requests for unpaid 37.13 leaves of absence consistent with the need to continue efficient 37.14 operation of the agency. However, each appointing authority 37.15 shall retain discretion to grant or refuse to grant requests for 37.16 leaves of absence and to schedule and cancel leaves, subject to 37.17 applicable provisions of collective bargaining agreements and 37.18 compensation plans. 37.19 Sec. 9. Laws 2002, chapter 220, article 10, section 4, is 37.20 amended to read: 37.21 Sec. 4. GOVERNOR'S OFFICE (460,000) (702,000) 37.22No funding may be used for the37.23operation of the Washington, D.C.,37.24office of the state of Minnesota.37.25 Sec. 10. Laws 2002, chapter 220, article 10, section 36, 37.26 is amended to read: 37.27 Sec. 36. [REDUCTION IN CONTRACT EXPENDITURES.] 37.28 During the biennium ending June 30, 2003, the governor must 37.29 reduce planned executive branch state agency general fund 37.30 expenditures on contracts for professional or technical services 37.31 by at least$35,000,000$28,300,000. The governor must allocate 37.32 this reduction among executive branch state agencies. If the 37.33 governor determines that the mandated contract savings cannot be 37.34 achieved, the governor must make proportional reductions to 37.35 executive agency operating budgets in order to achieve the 37.36 savings. For purposes of this section and section 37, 37.37 "professional or technical services" has the meaning given in 38.1 Minnesota Statutes, section 16C.08, subdivision 1; and 38.2 "executive branch state agency" has the meaning given in 38.3 Minnesota Statutes, section 16A.011, subdivision 12a,and38.4includesbut does not include the Minnesota state colleges and 38.5 universities or the higher education services office.The base38.6for these reductions is the amount allocated for professional or38.7technical service contracts in agency spending plans as of38.8January 1, 2002.38.9 Sec. 11. Laws 2002, chapter 220, article 10, section 37, 38.10 as amended by Laws 2002, chapter 364, section 30, is amended to 38.11 read: 38.12 Sec. 37. [MORATORIUM ON CONSULTANT CONTRACTS.] 38.13 (a) An entity in the executive branch of state government, 38.14includingother than the Minnesota state colleges and 38.15 universities or the higher education services office, may not 38.16 enter into a new contract or renew an existing contract for 38.17 professional or technical services after the effective date of 38.18 this section and before July 1, 2003. This section does not 38.19 apply to a contract: 38.20 (1) that relates to a threat to public health, welfare, or 38.21 safety that threatens the functioning of government, the 38.22 protection of property, or the health or safety of people; 38.23 (2) that is paid for entirely with federal fundsreceived38.24before the effective date of this sectionor the cost of which 38.25 is entirely recovered from nonstate entities; 38.26 (3) that is paid entirely with funds from the state 38.27 airports fund, trunk highway fund, county state-aid highway 38.28 fund, or municipal state-aid street fund;or38.29 (4) for a trunk highway project of a type described in Laws 38.30 2000, chapter 479, article 1, section 2, subdivision 3, 38.31 paragraph (a), clauses (1) to (3); or 38.32 (5) that is necessary to avoid a disruption of essential 38.33 state functions, will reduce state costs, or is necessary to 38.34 avoid a legal liability. 38.35 (b) An entity in the executive branch may apply for a 38.36 waiver of the moratorium by sending a letter with reasons for 39.1 the request to thecommissioner of administration for executive39.2branch entitiesgovernor. Upon a finding that a consultant 39.3 contract is necessary, thecommissionergovernor may grant a 39.4 waiver.The decision of the commissioner is final and not39.5subject to appeal.A monthly report of all exceptions granted 39.6 under paragraph (a) and all waivers granted must be filedby the39.7entity granting the waiver. The report must be published onthe39.8entity'sa state Web site, and copies must be provided to the 39.9 chairs of the house ways and means and senate finance committees 39.10 and to the legislative reference library. 39.11 Sec. 12. Laws 2002, chapter 220, article 10, section 38, 39.12 subdivision 2, is amended to read: 39.13 Subd. 2. [EXCEPTIONS.] Subdivision 1 does not apply to: 39.14 (1) an employee at a state correctional facility; 39.15 (2) an employee of the department of corrections who 39.16 provides direct services to offenders; 39.17 (3) an employee of state-operated services under the 39.18 department of human services; 39.19 (4) a studentin a work-study positionworker;or39.20(2)(5) a position that is necessary to perform essential 39.21 government services; or 39.22 (6) an employee who is paid entirely with federal funds or 39.23 a special revenue fund, or whose costs are entirely recovered 39.24 from nonstate entities, or a combination of them. 39.25 A determination under clause(2)(5) must be made by the 39.26 speaker of the house of representatives with respect to house 39.27 employees, the chair of the committee on rules and 39.28 administration with respect to senate employees, and the 39.29 legislative coordinating commission with respect to its 39.30 employees, by a constitutional officer with respect to employees 39.31 of the constitutional office, and by the governor with respect 39.32 to any other employee covered by this section. Exceptions 39.33 granted under clause(2)(5) must be reported monthly by the 39.34 entity granting the exception. The reports must be published on 39.35 the entity's Web site, and copies must be provided to the chairs 39.36 of the house ways and means and senate finance committees and to 40.1 the legislative reference library. 40.2 Sec. 13. Laws 2002, chapter 220, article 10, section 38, 40.3 subdivision 3, is amended to read: 40.4 Subd. 3. [ANTICIPATED SAVINGS.] The legislature 40.5 anticipates that application of this section to executive branch 40.6 agenciesand to the Minnesota state colleges and universities40.7 will result in savings to the general fund of 40.8$40,000,000$29,736,000 by June 30, 2003. If the governor 40.9 determines that application of this section will not result 40.10 in$40,000,000$29,736,000 in savings to the general fund by 40.11 June 30, 2003, the governor must make proportional reductions in 40.12 executive agency operating budgets necessary to achieve these 40.13 savings. If the governor makes proportional reductions to 40.14 executive agency operating budgets to achieve the required 40.15 savings, the governor shall exclude from the reductions: 40.16 (1) the department of corrections with respect to employees 40.17 at state correctional institutions or who provide direct 40.18 services to offenders; and 40.19 (2) the department of human services with respect to 40.20 state-operated services. 40.21 Sec. 14. Laws 2002, chapter 220, article 10, section 39, 40.22 is amended to read: 40.23 Sec. 39. [SAVINGS ARE ADDITIONAL.] 40.24 Savings achieved in sections 36 to 38 from the freeze in 40.25 state hiring or the reduction in the number of state contracts 40.26 for professional or technical services are in addition to 40.27 reductions in spending required by other sections of this 40.28articleact. 40.29 Sec. 15. [NONPROFIT GRANT AND CONTRACT DECISIONS.] 40.30 Subdivision 1. [FISCAL YEAR 2002 PROCESSING.] (a) This 40.31 subdivision applies when: 40.32 (1) a state agency has delayed its final decision on 40.33 whether to enter into a grant or contract with a nonprofit 40.34 corporation to spend money appropriated for the fiscal year 40.35 ending June 30, 2002, pending elimination of the state budget 40.36 deficit; and 41.1 (2) the nonprofit corporation has provided services based 41.2 on an appropriation that names the nonprofit corporation or 41.3 based on a grant award letter from a state agency to the 41.4 nonprofit corporation. 41.5 (b) In a circumstance described in paragraph (a), within 15 41.6 business days after final enactment of this act the state agency 41.7 must: 41.8 (1) process the grant or contract with the nonprofit 41.9 corporation; and 41.10 (2) issue payment to the nonprofit corporation for services 41.11 already provided. 41.12 Subd. 2. [FISCAL YEAR 2002 RETROACTIVITY.] A contract 41.13 encumbered or a grant awarded by a state agency to a nonprofit 41.14 corporation for services rendered in the fiscal year ending June 41.15 30, 2002, is retroactive to the date that services were first 41.16 provided under the contract or grant. 41.17 Subd. 3. [FISCAL YEAR 2003.] A contract encumbered or a 41.18 grant awarded by a state agency to a nonprofit corporation for 41.19 services rendered in the fiscal year ending June 30, 2003, is 41.20 retroactive to the date that services were first provided under 41.21 the contract or grant. 41.22 Sec. 16. [VOTING EQUIPMENT GRANTS.] 41.23 Within 30 days after the effective date of this section, 41.24 the commissioner of administration must make voting equipment 41.25 grants authorized by Minnesota Statutes 2001 Supplement, section 41.26 204B.48, to the full extent of appropriations available for 41.27 these grants under Laws 2001, First Special Session chapter 10, 41.28 article 1, section 12, subdivision 7, as amended by Laws 2002, 41.29 chapter 220, article 10, section 10, subdivision 8. 41.30 Sec. 17. [EFFECTIVE DATE.] 41.31 This article is effective the day following final enactment. 41.32 ARTICLE 8 41.33 CANCELLATIONS; CASH FLOW; TRANSFERS IN 41.34 Section 1. Minnesota Statutes 2001 Supplement, section 41.35 62J.694, subdivision 1, is amended to read: 41.36 Subdivision 1. [CREATION.] (a) The medical education 42.1 endowment fund is created in the state treasury. The state 42.2 board of investment shall invest the fund under section 11A.24. 42.3 All earnings of the fund must be credited to the fund. The 42.4 principal of the fund must be maintained inviolate, except that 42.5 the principal may be used to make expenditures from the fund for 42.6 the purposes specified in this section when the market value of 42.7 the fund falls below 105 percent of the cumulative total of the 42.8 tobacco settlement payments received by the state and credited 42.9 to the tobacco settlement fund under section 16A.87, subdivision 42.10 2. For purposes of this section, "principal" means an amount 42.11 equal to the cumulative total of the tobacco settlement payments 42.12 received by the state and credited to the tobacco settlement 42.13 fund under section 16A.87, subdivision 2. 42.14 (b) If the commissioner of finance determines that probable 42.15 receipts to the general fund will be sufficient to meet the need 42.16 for expenditures from the general fund for a fiscal biennium, 42.17 after using the cash reserves of the tobacco use prevention and 42.18 local public health endowment fund, excluding an amount 42.19 sufficient to meet the annual appropriations in section 144.395, 42.20 subdivision 2, the commissioner may use cash reserves of the 42.21 medical education endowment fund, excluding the amounts needed 42.22 to meet the appropriations described in subdivisions 2 and 2a, 42.23 to pay expenses of the general fund. If cash reserves are 42.24 transferred to the general fund to meet cash flow needs, the 42.25 amount transferred, plus interest at a rate comparable to the 42.26 rate earned by the state on invested treasurer's cash, as 42.27 determined monthly by the commissioner, must be returned to the 42.28 endowment fund as soon as sufficient cash balances are available 42.29 in the general fund, but in any event before the end of the 42.30 fiscal biennium. An amount necessary to pay the interest is 42.31 appropriated from the general fund. If cash reserves of the 42.32 endowment fund are used to pay expenses for the general fund, 42.33 notwithstanding subdivision 2, paragraph (d), the academic 42.34 health center shall be held harmless to the extent possible. 42.35 When determining the fair market value of the fund, for the 42.36 purposes described in subdivisions 2 and 2a, the value of the 43.1 cash reserves transferred to the general fund must be included 43.2 in the determination. 43.3 (c) The academic health center account is created as a 43.4 separate account in the medical education endowment fund. The 43.5 account is invested under paragraph (a). All earnings of the 43.6 account must be credited to the account. The principal of the 43.7 account must be maintained inviolate, except that the principal 43.8 may be used to make expenditures from the account for the 43.9 purposes specified in subdivision 2a when the value of the 43.10 account falls below an amount equal to deposits made to the 43.11 account under section 16A.87, subdivision 3, paragraph (b). 43.12 Sec. 2. Minnesota Statutes 2000, section 79.251, 43.13 subdivision 1, is amended to read: 43.14 Subdivision 1. [ASSIGNED RISK PLAN REVIEW BOARD.] (a) (1) 43.15 An assigned risk plan review board is created for the purposes 43.16 of review of the operation of section 79.252 and this section. 43.17 The board shall have all the usual powers and authorities 43.18 necessary for the discharge of its duties under this section and 43.19 may contract with individuals in discharge of those duties. 43.20 (2) The board shall consist of six members to be appointed 43.21 by the commissioner of commerce. Three members shall be 43.22 insureds holding policies or contracts of coverage issued 43.23 pursuant to subdivision 4. Two members shall be insurers 43.24 licensed pursuant to section 60A.06, subdivision 1, clause (5), 43.25 paragraph (b). The commissioner shall be the sixth member and 43.26 shall vote. 43.27 Initial appointments shall be made by September 1, 1981, 43.28 and terms shall be for three years duration. Removal, the 43.29 filling of vacancies and compensation of the members other than 43.30 the commissioner shall be as provided in section 15.059. 43.31 (3) The assigned risk plan review board shall audit the 43.32 reserves established (a) for individual cases arising under 43.33 policies and contracts of coverage issued under subdivision 4 43.34 and (b) for the total book of business issued under subdivision 43.35 4. If the board determines on the basis of an audit that there 43.36 is an excess surplus in the assigned risk plan, it must notify 44.1 the commissioner of finance who shall transfer assets of the 44.2 plan equal to the excess surplus to the budget reserve account 44.3 in the general fund. 44.4 (4) The assigned risk plan review board shall monitor the 44.5 operations of section 79.252 and this section and shall 44.6 periodically make recommendations to the commissioner, and to 44.7 the governor and legislature when appropriate, for improvement 44.8 in the operation of those sections. 44.9 (5) All insurers and self-insurance administrators issuing 44.10 policies or contracts under subdivision 4 shall pay to the 44.11 commissioner a .25 percent assessment on premiums for policies 44.12 and contracts of coverage issued under subdivision 4 for the 44.13 purpose of defraying the costs of the assigned risk plan review 44.14 board. Proceeds of the assessment shall be deposited in the 44.15 state treasury and credited to the general fund. 44.16 (6) The assigned risk plan and the assigned risk plan 44.17 review board shall not be deemed a state agency. 44.18 (b) As used in this subdivision, "excess surplus" means the 44.19 amount of assigned risk plan assets in excess of the amount 44.20 needed to pay all current liabilities of the plan, including, 44.21 but not limited to: 44.22 (1) administrative expenses; 44.23 (2) benefit claims; and 44.24 (3) if the assigned risk plan is dissolved under 44.25 subdivision 8, the amounts that would be due insurers who have 44.26 paid assessments to the plan. 44.27 Sec. 3. Minnesota Statutes 2000, section 144.395, 44.28 subdivision 1, as amended by Laws 2002, chapter 220, article 13, 44.29 section 6, is amended to read: 44.30 Subdivision 1. [CREATION.] (a) The tobacco use prevention 44.31 and local public health endowment fund is created in the state 44.32 treasury. The state board of investment shall invest the fund 44.33 under section 11A.24. All earnings of the fund must be credited 44.34 to the fund. The principal of the fund must be maintained 44.35 inviolate, except that the principal may be used to make 44.36 expenditures from the fund for the purposes specified in this 45.1 section when the market value of the fund falls below 105 45.2 percent of the cumulative total of the tobacco settlement 45.3 payments received by the state and credited to the tobacco 45.4 settlement fund under section 16A.87, subdivision 2. For 45.5 purposes of this section, "principal" means an amount equal to 45.6 the cumulative total of the tobacco settlement payments received 45.7 by the state and credited to the tobacco settlement fund under 45.8 section 16A.87, subdivision 2. 45.9 (b) If the commissioner of finance determines that probable 45.10 receipts to the general fund willnotbe sufficient to meet the 45.11 need for expenditures from the general fund for a fiscal 45.12 biennium, the commissioner may use cash reserves of the tobacco 45.13 use prevention and local public health endowment fund, excluding 45.14 an amount sufficient to meet the annual appropriations in 45.15 subdivision 2, to pay expenses of the general fund. If cash 45.16 reserves are transferred to the general fund to meet cash flow 45.17 needs, thecash flow transfersamount transferred, plus interest 45.18 at a rate comparable to the rate earned by the state on invested 45.19 treasurer's cash, as determined monthly by the commissioner, 45.20 must be returned to the endowment fund as soon as sufficient 45.21 cash balances are available in the general fund, but in any 45.22 event before the end of the fiscal biennium.Any interest45.23earned on cash flow transfers from the endowment fund accrues to45.24the endowment fund and not to the general fund.An amount 45.25 necessary to pay the interest is appropriated from the general 45.26 fund. If cash reserves of the endowment fund are used to pay 45.27 expenses for the general fund, the recipients of the grants 45.28 shall be held harmless to the extent possible in the following 45.29 order: (1) local public health; (2) local tobacco prevention; 45.30 and (3) statewide tobacco prevention. When determining the fair 45.31 market value of the fund, for the purposes described in 45.32 subdivision 2, the value of the cash reserves transferred to the 45.33 general fund must be included in the determination. 45.34 Sec. 4. Laws 2002, chapter 220, article 13, section 7, is 45.35 amended to read: 45.36 Sec. 7. [BALANCES CANCELED TO GENERAL FUND.] 46.1 The unobligated balances in the following general fund 46.2 accounts created in the sections of Minnesota Statutes indicated 46.3 are canceled to the general fund in the fiscal years indicated: 46.4 (1) the budget reserve account, Minnesota Statutes, section 46.5 16A.152, subdivision 1a, estimated to be $653,000,000, in fiscal 46.6 year 2002; 46.7 (2) the local government aid reform account, Minnesota 46.8 Statutes, section 16A.1523, estimated to be $14,000,000, in 46.9 fiscal year 2003; 46.10 (3) the tax relief account, Minnesota Statutes, section 46.11 16A.1522, subdivision 4, estimated to be $158,148,000, in fiscal 46.12 year20042003; and 46.13 (4)$195,000,000$350,000,000 of the unobligated balance in 46.14 the cash flow account in Minnesota Statutes, section 16A.152, 46.15 subdivision 1. 46.16 Sec. 5. Laws 2002, chapter 220, article 13, section 9, 46.17 subdivision 1, is amended to read: 46.18 Subdivision 1. [ASSIGNED RISK PLAN.] By June 30, 2002, the 46.19 commissioner of finance shall transfer$120,000,000$134,000,000 46.20 in assets of the assigned risk plan created under Minnesota 46.21 Statutes, section 79.252, to the general fund. $25,100,000 is 46.22 appropriated from the general fund to the commissioner of 46.23 finance to fund the settlement of the lawsuit entitled Danny's 46.24 Trannys, Inc. et al. v. State, et al., Ramsey County District 46.25 Court No. C7-00-5714, and to reimburse the tort claims account 46.26 for amounts paid to implement settlement of this lawsuit. 46.27 Sec. 6. Laws 2002, chapter 220, article 13, section 9, 46.28 subdivision 2, is amended to read: 46.29 Subd. 2. [SPECIAL COMPENSATION FUND.] After June 1, 2003, 46.30 but no later than June 30, 2003, the commissioner of finance 46.31 shall transfer$230,000,000$250,000,000 in assets of the excess 46.32 surplus account of the special compensation fund created under 46.33 Minnesota Statutes, section 176.129, to the general fund. 46.34 Sec. 7. [BALANCES DEPOSITED IN BUDGET RESERVE.] 46.35 Notwithstanding Minnesota Statutes, section 16A.1522, any 46.36 positive unrestricted general fund balance on June 30, 2003, 47.1 must be allocated to the budget reserve account in the general 47.2 fund. 47.3 Sec. 8. [EFFECTIVE DATE.] 47.4 This article is effective the day following final 47.5 enactment, except that section 2 is effective January 1, 2003, 47.6 and sections 1 and 3 are effective July 1, 2003. 47.7 ARTICLE 9 47.8 HEALTH AND HUMAN SERVICES APPROPRIATIONS 47.9 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 47.10 The dollar amounts shown in the columns marked 47.11 "APPROPRIATIONS" are added to or, if shown in parentheses, are 47.12 subtracted from the appropriations in Laws 2001, First Special 47.13 Session chapter 9, and Laws 2002, chapter 220, or other law, and 47.14 are appropriated from the general fund, or any other fund named, 47.15 to the agencies and for the purposes specified in this article, 47.16 to be available for the fiscal years indicated for each 47.17 purpose. The figures "2002" and "2003" used in this article 47.18 mean that the appropriation or appropriations listed under them 47.19 are available for the fiscal year ending June 30, 2002, or June 47.20 30, 2003, respectively. 47.21 SUMMARY BY FUND 47.22 2002 2003 TOTAL 47.23 General 47.24 Forecast 47.25 Adjustments $47,032,000 $26,019,000 $73,051,000 47.26 Nonforecast 1,660,000 (26,554,000) (24,894,000) 47.27 Health Care 47.28 Access (2,605,000) (4,318,000) (6,923,000) 47.29 Federal TANF (7,383,000) 8,896,000 1,513,000 47.30 State Government 47.31 Special Revenue -0- 4,000 4,000 47.32 APPROPRIATIONS 47.33 Available for the Year 47.34 Ending June 30 47.35 2002 2003 47.36 Sec. 2. COMMISSIONER OF 47.37 HUMAN SERVICES 47.38 Subdivision 1. Total 47.39 Appropriation $ 38,704,000 $ 3,143,000 47.40 Summary by Fund 48.1 General 48,692,000 (1,435,000) 48.2 Health Care 48.3 Access (2,605,000) (4,318,000) 48.4 Federal TANF (7,383,000) 8,896,000 48.5 Subd. 2. Children's 48.6 Grants 48.7 General -0- (4,748,000) 48.8 [FAMILY PRESERVATION AND CHILDREN'S 48.9 MENTAL HEALTH GRANTS.] This 48.10 appropriation includes a reduction of 48.11 $6,548,000 in family preservation and 48.12 children's mental health grants due to 48.13 changes in allocations and an increase 48.14 of $1,800,000 in local collaboratives 48.15 wraparound services coordination 48.16 grants. The increased appropriation 48.17 for coordination grants shall become 48.18 part of base level funding for the 48.19 biennium beginning July 1, 2003. 48.20 Subd. 3. Basic Health Care 48.21 Grants 48.22 General 10,999,000 6,126,000 48.23 Health Care 48.24 Access (2,605,000) (4,318,000) 48.25 The amounts that may be spent from this 48.26 appropriation for each purpose are as 48.27 follows: 48.28 (a) MinnesotaCare Grants 48.29 Health Care 48.30 Access (2,605,000) (4,318,000) 48.31 [MINNESOTACARE ELIGIBILITY 48.32 DETERMINATION CARRYOVER.] The 48.33 appropriation for the biennium 48.34 beginning July 1, 2001, in Laws 2001, 48.35 First Special Session chapter 9, 48.36 article 17, section 2, subdivision 7, 48.37 paragraph (b), for activities related 48.38 to processing MinnesotaCare 48.39 applications and determining applicant 48.40 eligibility shall not cancel but shall 48.41 be available until June 30, 2005. 48.42 (b) MA Basic Health Care 48.43 Grants - Families and Children 48.44 General 7,437,000 (5,285,000) 48.45 (c) MA Basic Health Care 48.46 Grants - Elderly and Disabled 48.47 General (779,000) 7,476,000 48.48 (d) General Assistance 48.49 Medical Care Grants 48.50 General 2,681,000 5,080,000 48.51 (e) Health Care Grants - 48.52 Other Assistance 49.1 General 1,660,000 (1,145,000) 49.2 [U SPECIAL KIDS PROGRAM.] Of this 49.3 appropriation, $350,000 in fiscal year 49.4 2002 is immediately available to the 49.5 commissioner to be transferred 49.6 immediately to the University of 49.7 Minnesota for the U Special Kids 49.8 program. The money may be used to 49.9 match private grants. The money shall 49.10 be used to provide physician-supervised 49.11 medical case management services for up 49.12 to 50 Minnesota children in the program 49.13 who are eligible for medical 49.14 assistance. Any unspent portion of 49.15 this appropriation shall not cancel but 49.16 shall be available for these purposes 49.17 until June 30, 2005. This is a onetime 49.18 appropriation and shall not become part 49.19 of base level funding for the 2004-2005 49.20 biennium. 49.21 [HIV/AIDS DRUG REBATES.] For the fiscal 49.22 year ending June 30, 2003, $1,150,000 49.23 of the general fund appropriations for 49.24 HIV/AIDS grants and services that are 49.25 no longer needed as a result of greater 49.26 than anticipated collections under the 49.27 AIDS drug assistance program rebate 49.28 must be used to meet funding needs of 49.29 the state prescription drug program. 49.30 [ADAP FUNDING.] For the fiscal year 49.31 ending June 30, 2003, $1,150,000 from 49.32 the AIDS drug assistance program (ADAP) 49.33 rebate program shall be used to meet 49.34 the needs of the HIV/AIDS grants and 49.35 services program. 49.36 Subd. 4. State-Operated 49.37 Services 49.38 General -0- 4,000,000 49.39 [STATE-OPERATED SERVICES DEDICATED 49.40 REVENUE ACCOUNTS.] The commissioner of 49.41 human services shall provide the chairs 49.42 of the house and senate health and 49.43 human services finance committees 49.44 copies of all dedicated revenue account 49.45 quarterly and annual financial 49.46 statements that are reviewed by the 49.47 state-operated services governing 49.48 board. The annual financial statement 49.49 must include a summary of revenues, 49.50 expenditures, obligations, and cash 49.51 balances. The description of cash 49.52 balances must specifically identify 49.53 cash balances included in funded 49.54 depreciation accounts and in cash flow 49.55 reserves for 120 days of operating 49.56 expense. The annual financial 49.57 statement must clearly delineate any 49.58 amount of cash reserve that is in 49.59 excess of requirements for funded 49.60 depreciation and 120 days of operating 49.61 expense. Quarterly financial 49.62 statements must be available to the 49.63 chairs within 30 days of the closing 49.64 date for that quarter. The annual 50.1 financial statement must be available 50.2 by August 15 of each year. 50.3 [ONETIME APPROPRIATION.] Of the 50.4 appropriation for fiscal year 2003, 50.5 $4,000,000 is from the general fund to 50.6 the commissioner of human services for 50.7 state-operated services. This is a 50.8 onetime appropriation and shall not 50.9 become part of base level funding. 50.10 [STATE-OPERATED SERVICES STUDY.] The 50.11 commissioner of human services, in 50.12 consultation with community 50.13 representatives, shall evaluate 50.14 strategies to consolidate the delivery 50.15 of state-operated services. Strategies 50.16 shall be considered in the context of 50.17 other community-based services 50.18 options. By January 15, 2003, the 50.19 commissioner shall provide 50.20 recommendations to the 2003 legislature 50.21 that result from this evaluation. 50.22 [ONETIME REDUCTION TO SHARED SERVICES 50.23 DEDICATED REVENUES.] For fiscal year 50.24 2003 only, $564,000 of fund balances 50.25 within the accounts established under 50.26 Minnesota Statutes, section 246.57, 50.27 subdivision 1, shall be transferred to 50.28 the general fund. 50.29 Subd. 5. Continuing Care 50.30 Grants 50.31 [FUNDING USAGE.] Up to 75 percent of 50.32 the fiscal year 2004 appropriations for 50.33 family preservation grants, 50.34 developmental disability 50.35 semi-independent living services, 50.36 developmental disability family 50.37 support, adult mental health grants, 50.38 and children's mental health grants may 50.39 be used to fund calendar year 2003 50.40 allocations for these programs, with 50.41 the resulting calendar year funding 50.42 pattern continuing into the future. 50.43 Appropriation reductions associated 50.44 with this shift are one time only. 50.45 General 27,896,000 (4,863,000) 50.46 The amounts that may be spent from this 50.47 appropriation for each purpose are as 50.48 follows: 50.49 (a) Medical Assistance 50.50 Long-Term Care Waivers and 50.51 Home Care Grants 50.52 General 26,054,000 26,552,000 50.53 (b) Medical Assistance 50.54 Long-Term Care Facilities 50.55 Grants 50.56 General 1,815,000 (736,000) 50.57 (c) Group Residential 50.58 Housing Grants 51.1 General 27,000 689,000 51.2 (d) Chemical Dependency 51.3 Entitlement Grants 51.4 General -0- (1,000,000) 51.5 [ADDITIONAL CONSOLIDATED CHEMICAL 51.6 DEPENDENCY TREATMENT FUND RESERVE 51.7 TRANSFER.] In addition to the amount 51.8 transferred in Laws 2002, chapter 220, 51.9 article 17, section 2, subdivision 6, 51.10 paragraph (e), an additional $7,000,000 51.11 of funds available in the consolidated 51.12 chemical dependency treatment fund 51.13 general reserve account is transferred 51.14 to the general fund in fiscal year 2003. 51.15 (e) Community Social 51.16 Service Grants 51.17 General -0- (13,730,000) 51.18 (f) Mental Health 51.19 Grants 51.20 General -0- (13,635,000) 51.21 This reduction is one time only. 51.22 (g) Community Support 51.23 Grants 51.24 General -0- (3,003,000) 51.25 Subd. 6. Economic 51.26 Support Grants 51.27 General 9,797,000 (1,950,000) 51.28 Federal TANF (7,383,000) 8,896,000 51.29 The amounts that may be spent from the 51.30 appropriation for each purpose are as 51.31 follows: 51.32 (a) Assistance to Families 51.33 Grants 51.34 General 8,712,000 (3,740,000) 51.35 Federal TANF (7,383,000) 8,803,000 51.36 [AUTHORITY TO CARRYFORWARD AUTHORIZED 51.37 TRANSFER.] The $11,000,000 in TANF 51.38 funds authorized for transfer to title 51.39 XX of the federal Social Security Act 51.40 grants in fiscal year 2003 by Laws 51.41 1999, chapter 245, article 1, section 51.42 2, subdivision 11, are available for 51.43 expenditure in fiscal year 2004. 51.44 (b) General Assistance 51.45 Grants 51.46 General 1,361,000 1,779,000 51.47 (c) Economic Support - 51.48 Other Assistance 51.49 Federal TANF -0- 93,000 52.1 [TANF TRANSFER TO THE DEPARTMENT OF 52.2 CHILDREN, FAMILIES, AND LEARNING.] Of 52.3 the TANF appropriation, $93,000 in 52.4 fiscal year 2003 is appropriated to the 52.5 commissioner of children, families, and 52.6 learning for the purposes of Minnesota 52.7 Statutes, section 119B.05. The 52.8 commissioner of human services shall 52.9 authorize a sufficient transfer of 52.10 funds from the state's federal TANF 52.11 block grant to the state's federal 52.12 child care development fund block grant 52.13 to meet this appropriation. 52.14 (d) Minnesota Supplemental 52.15 Aid Grants 52.16 General (276,000) 11,000 52.17 Sec. 3. COMMISSIONER OF HEALTH 52.18 Subdivision 1. Total Appropriation -0- 4,000 52.19 Summary by Fund 52.20 State Government 52.21 Special Revenue -0- 4,000 52.22 Subd. 2. Family and Provider 52.23 Compliance 52.24 State Government 52.25 Special Revenue -0- 4,000 52.26 [REGISTRATION COSTS.] This 52.27 appropriation in fiscal year 2003 is to 52.28 the commissioner for the costs of 52.29 registering establishments under 52.30 Minnesota Statutes, section 144D.025. 52.31 Sec. 4. VETERANS NURSING 52.32 HOMES BOARD 52.33 Summary by Fund 52.34 General -0- 900,000 52.35 [DEFICIENCY APPROPRIATION.] The 52.36 appropriation to the veterans nursing 52.37 homes board for fiscal year 2003 is for 52.38 a deficiency in board operations. This 52.39 is a onetime appropriation and shall 52.40 not become part of base level funding 52.41 for the 2004-2005 biennium. 52.42 Sec. 5. [VETERANS NURSING HOMES BOARD FUNDING.] 52.43 (a) Notwithstanding Minnesota Statutes, section 16B.31, 52.44 subdivision 7, on July 1, 2002, the commissioner of 52.45 administration shall transfer to the veterans nursing homes 52.46 board any remaining portion of the payments received from 52.47 contractors for the mold damage at the Luverne facility. 52.48 (b) Notwithstanding the provisions of Minnesota Statutes, 52.49 section 16A.151, any payments made during fiscal year 2003 from 53.1 contractors to settle legal issues regarding the mold damage at 53.2 the Luverne facility are appropriated to the veterans nursing 53.3 homes board. 53.4 (c) Total appropriations to the veterans nursing homes 53.5 board under this section shall not exceed $500,000. 53.6 Sec. 6. [EXEMPTIONS FROM REDUCTION IN CONTRACT 53.7 EXPENDITURES AND FROM HIRING FREEZE.] 53.8 For fiscal year 2003, the department of human services is 53.9 exempt from the hiring freeze established in Laws 2002, chapter 53.10 220, article 10, section 38, as amended by article 7, section 53.11 12, and the contract moratorium established in Laws 2002, 53.12 chapter 220, article 10, section 37, as amended by article 7, 53.13 section 11, and by Laws 2002, chapter 364, section 30, as it 53.14 relates to the establishment and implementation of a 53.15 supplemental drug rebate program. 53.16 Sec. 7. [INCARCERATION REPORT.] 53.17 By February 1, 2003, the commissioner of corrections must 53.18 report to the chairs and ranking minority members of the house 53.19 of representatives and senate committees having jurisdiction 53.20 over criminal justice and judiciary finance divisions 53.21 alternatives for dealing with offenders who actually serve less 53.22 than one year in prison. This report shall include capital and 53.23 operating costs, possible partnerships, renting beds from public 53.24 or private facilities, and current prison capacities. 53.25 Sec. 8. [FISCAL 2003 TANF MAINTENANCE OF EFFORT.] 53.26 The commissioner of human services must ensure that the 53.27 maintenance of effort amount used in the MFIP forecast of 53.28 November 2002 and February 2003 is not less than $188,937,000 53.29 with respect to fiscal year 2003. 53.30 Sec. 9. [SUNSET OF UNCODIFIED LANGUAGE.] 53.31 All uncodified language contained in this article expires 53.32 June 30, 2003, unless a different expiration date is explicit. 53.33 Sec. 10. [EFFECTIVE DATE.] 53.34 Except as otherwise provided in this article, this article 53.35 is effective the day following final enactment. 53.36 ARTICLE 10 54.1 HEALTH AND HUMAN SERVICES 54.2 Section 1. Minnesota Statutes 2000, section 13.05, 54.3 subdivision 4, is amended to read: 54.4 Subd. 4. [LIMITATIONS ON COLLECTION AND USE OF DATA.] 54.5 Private or confidential data on an individual shall not be 54.6 collected, stored, used, or disseminated by political 54.7 subdivisions, statewide systems, or state agencies for any 54.8 purposes other than those stated to the individual at the time 54.9 of collection in accordance with section 13.04, except as 54.10 provided in this subdivision. 54.11 (a) Data collected prior to August 1, 1975, and which have 54.12 not been treated as public data, may be used, stored, and 54.13 disseminated for the purposes for which the data was originally 54.14 collected or for purposes which are specifically approved by the 54.15 commissioner as necessary to public health, safety, or welfare. 54.16 (b) Private or confidential data may be used and 54.17 disseminated to individuals or agencies specifically authorized 54.18 access to that data by state, local, or federal law enacted or 54.19 promulgated after the collection of the data. 54.20 (c) Private or confidential data may be used and 54.21 disseminated to individuals or agencies subsequent to the 54.22 collection of the data when the responsible authority 54.23 maintaining the data has requested approval for a new or 54.24 different use or dissemination of the data and that request has 54.25 been specifically approved by the commissioner as necessary to 54.26 carry out a function assigned by law. 54.27 (d) Private data may be used by and disseminated to any 54.28 person or agency if the individual subject or subjects of the 54.29 data have given their informed consent. Whether a data subject 54.30 has given informed consent shall be determined by rules of the 54.31 commissioner. Informed consent shall not be deemed to have been 54.32 given by an individual subject of the data by the signing of any 54.33 statement authorizing any person or agency to disclose 54.34 information about the individual to an insurer or its authorized 54.35 representative, unless the statement is: 54.36 (1) in plain language; 55.1 (2) dated; 55.2 (3) specific in designating the particular persons or 55.3 agencies the data subject is authorizing to disclose information 55.4 about the data subject; 55.5 (4) specific as to the nature of the information the 55.6 subject is authorizing to be disclosed; 55.7 (5) specific as to the persons or agencies to whom the 55.8 subject is authorizing information to be disclosed; 55.9 (6) specific as to the purpose or purposes for which the 55.10 information may be used by any of the parties named in clause 55.11 (5), both at the time of the disclosure and at any time in the 55.12 future; 55.13 (7) specific as to its expiration date which should be 55.14 within a reasonable period of time, not to exceed one year 55.15 except in the case of authorizations given in connection with 55.16 applications for (i) life insurance or noncancelable or 55.17 guaranteed renewable health insurance and identified as such, 55.18 two years after the date of the policy or (ii) medical 55.19 assistance under chapter 256B or MinnesotaCare under chapter 55.20 256L, which shall be ongoing during all terms of eligibility, 55.21 for individual education plan health-related services provided 55.22 by a school district under section 125A.21, subdivision 2. 55.23 The responsible authority may require a person requesting 55.24 copies of data under this paragraph to pay the actual costs of 55.25 making, certifying, and compiling the copies. 55.26 (e) Private or confidential data on an individual may be 55.27 discussed at a meeting open to the public to the extent provided 55.28 in section 13D.05. 55.29 [EFFECTIVE DATE.] This section is effective the day 55.30 following final enactment. 55.31 Sec. 2. Minnesota Statutes 2001 Supplement, section 55.32 241.021, subdivision 4, is amended to read: 55.33 Subd. 4. [HEALTH CARE.] The commissioner of corrections 55.34 shall provide professional health care to persons confined in 55.35 institutions under the control of the commissioner of 55.36 corrections and pay the costs of their care in hospitals and 56.1 other medical facilities not under the control of the 56.2 commissioner of corrections. All reimbursements for these 56.3 health care services shall be deposited in the general fund. 56.4 The commissioner of corrections is authorized to contract 56.5 with or reimburse entities, including health care management 56.6 companies, to provide health care to inmates, at reimbursement 56.7 rates equal to medical assistance unless otherwise negotiated. 56.8 With respect to these contracts, these entities shall not be 56.9 regulated as, or otherwise considered to be, health plan 56.10 companies as defined in section 62Q.01, subdivision 4. 56.11 Sec. 3. Minnesota Statutes 2000, section 241.44, is 56.12 amended by adding a subdivision to read: 56.13 Subd. 5. [GRANTS.] The ombudsman may apply for and receive 56.14 grants from public and private entities for purposes of carrying 56.15 out the ombudsman's powers and duties under sections 241.41 to 56.16 241.45. 56.17 Sec. 4. Minnesota Statutes 2000, section 256.9657, 56.18 subdivision 1, as amended by Laws 2002, chapter 220, article 14, 56.19 section 5, is amended to read: 56.20 Subdivision 1. [NURSING HOME LICENSE SURCHARGE.] (a) 56.21 Effective July 1, 1993, each non-state-operated nursing home 56.22 licensed under chapter 144A shall pay to the commissioner an 56.23 annual surcharge according to the schedule in subdivision 4. 56.24 The surcharge shall be calculated as $620 per licensed bed. If 56.25 the number of licensed beds is reduced, the surcharge shall be 56.26 based on the number of remaining licensed beds the second month 56.27 following the receipt of timely notice by the commissioner of 56.28 human services that beds have been delicensed. The nursing home 56.29 must notify the commissioner of health in writing when beds are 56.30 delicensed. The commissioner of health must notify the 56.31 commissioner of human services within ten working days after 56.32 receiving written notification. If the notification is received 56.33 by the commissioner of human services by the 15th of the month, 56.34 the invoice for the second following month must be reduced to 56.35 recognize the delicensing of beds. Beds on layaway status 56.36 continue to be subject to the surcharge. The commissioner of 57.1 human services must acknowledge a medical care surcharge appeal 57.2 within 30 days of receipt of the written appeal from the 57.3 provider. 57.4 (b) Effective July 1, 1994, the surcharge in paragraph (a) 57.5 shall be increased to $625. 57.6 (c)Effective August 15, 2003, the surcharge under57.7paragraph (b) shall be increased by an amount necessary to57.8ensure a net gain to the general fund of $9,620,000 during57.9fiscal year 2004 as a result of:57.10(1) the total transfers anticipated during the fiscal year57.11ending June 30, 2004, under section 256B.19, subdivision 1d,57.12paragraph (c);57.13(2) the county nursing home payment adjustments under57.14section 256B.431, subdivision 23, paragraph (c);57.15(3) the surcharges under this paragraph; and57.16(4) the nursing facility rate increases under section57.17256B.431, subdivision 37.57.18The increase under this paragraph shall not exceed $365 per bed.57.19(d)Effective August 15,20042002, the surcharge under 57.20 paragraph(c)(b) shall beequal to an amount necessary to57.21ensure a net gain to the general fund each fiscal year of57.22$10,228,000 as a result of:increased to $990. 57.23(1) the total transfers anticipated during the fiscal year57.24under section 256B.19, subdivision 1d, paragraph (c);57.25(2) the county nursing home payment adjustments under57.26section 256B.431, subdivision 23, paragraph (c);57.27(3) the surcharges under this paragraph; and57.28(4) the nursing facility rate increases under section57.29256B.431, subdivision 37.57.30The surcharge under this paragraph shall not exceed $365 per bed.57.31 Sec. 5. Minnesota Statutes 2000, section 256B.431, 57.32 subdivision 23, as amended by Laws 2002, chapter 220, article 57.33 14, section 9, is amended to read: 57.34 Subd. 23. [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a) 57.35 Beginning in 1994, the commissioner shall pay a nursing home 57.36 payment adjustment on May 31 after noon to a county in which is 58.1 located a nursing home that,as of January 1 of the previous58.2yearon that date, was county-owned and operated, with the 58.3 county named as licensee by the commissioner of health, and had 58.4 over 40 beds and medical assistance occupancy in excess of 50 58.5 percent during the reporting year ending September 30, 1991. 58.6 The adjustment shall be an amount equal to $16 per calendar day 58.7 multiplied by the number of beds licensed in the facility as of 58.8 September 30, 1991. 58.9 (b) Payments under paragraph (a) are excluded from medical 58.10 assistance per diem rate calculations. These payments are 58.11 required notwithstanding any rule prohibiting medical assistance 58.12 payments from exceeding payments from private pay residents. A 58.13 facility receiving a payment under paragraph (a) may not 58.14 increase charges to private pay residents by an amount 58.15 equivalent to the per diem amount payments under paragraph (a) 58.16 would equal if converted to a per diem. 58.17 (c) Beginning in 2002, in addition to any payment under 58.18 paragraph (a), the commissioner shall pay to a nursing facility 58.19 described in paragraph (a) an adjustment in an amount equal to 58.20 $29.55 per calendar day multiplied by the number of beds 58.21 licensed in the facility on that date. The provisions of 58.22 paragraphs (a) and (b) apply to payments under this paragraph. 58.23 (d) The commissioner may reduce payments under paragraph (c) 58.24 based on the commissioner's determination of Medicare upper 58.25 payment limits. Any adjustments must be proportional to 58.26 adjustments made under section 256B.19, subdivision 1d, 58.27 paragraph (d). 58.28 Sec. 6. Minnesota Statutes 2000, section 256B.431, 58.29 subdivision 37, as added by Laws 2002, chapter 220, article 14, 58.30 section 10, is amended to read: 58.31 Subd. 37. [NURSING HOME RATE INCREASES EFFECTIVE JULY 1, 58.3220032002.] For rate years beginning on or after July 1,200358.33 2002, the commissioner shall provide to each nursing home 58.34 reimbursed under this section or section 256B.434 an increase in 58.35 each case mix payment rate equal to the increase in the per-bed 58.36 surcharge paid under section 256.9657, subdivision 1, paragraph 59.1 (c)or (d), divided by 365 and further divided by .80. The 59.2 increase under this subdivision shall be added following the 59.3 determination of the payment rate for the home under this 59.4 chapter. The increase shall not be subject to any annual 59.5 percentage increase. 59.6 Sec. 7. Minnesota Statutes 2001 Supplement, section 59.7 256B.5013, subdivision 1, as amended by Laws 2002, chapter 220, 59.8 article 14, section 14, is amended to read: 59.9 Subdivision 1. [VARIABLE RATE ADJUSTMENTS.] (a) For rate 59.10 years beginning on or after October 1, 2000, when there is a 59.11 documented increase in the needs of a current ICF/MR recipient, 59.12 the county of financial responsibility may recommend a variable 59.13 rate to enable the facility to meet the individual's increased 59.14 needs. Variable rate adjustments made under this subdivision 59.15 replace payments for persons with special needs under section 59.16 256B.501, subdivision 8, and payments for persons with special 59.17 needs for crisis intervention services under section 256B.501, 59.18 subdivision 8a. Effective July 1, 2003, facilities with a base 59.19 rate above the 50th percentile of the statewide average 59.20 reimbursement rate for a Class A facility or Class B facility, 59.21 whichever matches the facility licensure, are not eligible for a 59.22 variable rate adjustment. Variable rate adjustments may not 59.23 exceed a 12-month period, except when approved for purposes 59.24 established in paragraph (b), clause (1). Variable rate 59.25 adjustments approved solely on the basis of changes on a 59.26 developmental disabilities screening document will end June 30, 59.27 2002. 59.28 (b) A variable rate may be recommended by the county of 59.29 financial responsibility for increased needs in the following 59.30 situations: 59.31 (1) a need for resources due to an individual's full or 59.32 partial retirement from participation in a day training and 59.33 habilitation service when the individual: (i) has reached the 59.34 age of 65 or has a change in health condition that makes it 59.35 difficult for the person to participate in day training and 59.36 habilitation services over an extended period of time because it 60.1 is medically contraindicated; and (ii) has expressed a desire 60.2 for change through the mental retardation and related conditions 60.3 screening process under section 256B.092; 60.4 (2) a need for additional resources for intensive 60.5 short-term programming which is necessary prior to an 60.6 individual's discharge to a less restrictive, more integrated 60.7 setting; 60.8 (3) a demonstrated medical need that significantly impacts 60.9 the type or amount of services needed by the individual; or 60.10 (4) a demonstrated behavioral need that significantly 60.11 impacts the type or amount of services needed by the individual. 60.12 (c) The county of financial responsibility must justify the 60.13 purpose, the projected length of time, and the additional 60.14 funding needed for the facility to meet the needs of the 60.15 individual. 60.16 (d) The facility shall provide a quarterly report to the 60.17 county case manager on the use of the variable rate funds and 60.18 the status of the individual on whose behalf the funds were 60.19 approved. The county case manager will forward the facility's 60.20 report with a recommendation to the commissioner to approve or 60.21 disapprove a continuation of the variable rate. 60.22 (e) Funds made available through the variable rate process 60.23 that are not used by the facility to meet the needs of the 60.24 individual for whom they were approved shall be returned to the 60.25 state. 60.26 Sec. 8. Minnesota Statutes 2000, section 256E.06, 60.27 subdivision 3, is amended to read: 60.28 Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human 60.29 services shall make payments for community social services to 60.30 each countyin four installments peron or before July 10 of 60.31 each year.The commissioner of human services may certify the60.32payments for the first three months of a calendar year based on60.33estimates of the unduplicated number of persons receiving60.34Minnesota family investment program assistance, general60.35assistance, and medical assistance for the prior year. The60.36following three payments shall be adjusted to reflect the actual61.1unduplicated number of persons who received Minnesota family61.2investment program assistance, general assistance, and medical61.3assistance as required by subdivision 1. The commissioner shall61.4ensure that the pertinent payment of the allotment for that61.5quarter is made to each county on the first working day after61.6the end of each quarter of the calendar year, except for the61.7last quarter of the calendar year. The commissioner shall61.8ensure that each county receives its payment of the allotment61.9for that quarter no later than the last working day of that61.10quarter. This scheduling of payments does not require61.11compliance with subdivision 10.61.12 Sec. 9. Minnesota Statutes 2001 Supplement, section 61.13 256J.425, subdivision 3, is amended to read: 61.14 Subd. 3. [HARD-TO-EMPLOY PARTICIPANTS.] An assistance unit 61.15 subject to the time limit in section 256J.42, subdivision 1, in 61.16 which any participant has received 60 counted months of 61.17 assistance, is eligible to receive months of assistance under a 61.18 hardship extension if the participant belongs to any of the 61.19 following groups: 61.20 (1) a person who is diagnosed by a licensed physician, 61.21 psychological practitioner, or other qualified professional, as 61.22 mentally retarded or mentally ill, and that condition prevents 61.23 the person from obtaining or retaining unsubsidized employment; 61.24 (2) a person who: 61.25 (i) has been assessed by a vocational specialist or the 61.26 county agency to be unemployable for purposes of this 61.27 subdivision; or 61.28 (ii) has an IQ below 80 who has been assessed by a 61.29 vocational specialist or a county agency to be employable, but 61.30 not at a level that makes the participant eligible for an 61.31 extension under subdivision 4 or, in the case of a 61.32 non-English-speaking person for whom it is not possible to 61.33 provide a determination due to language barriers or absence of 61.34 culturally appropriate assessment tools, is determined by a 61.35 qualified professional to have an IQ below 80. A person is 61.36 considered employable if positions of employment in the local 62.1 labor market exist, regardless of the current availability of 62.2 openings for those positions, that the person is capable of 62.3 performing;or62.4 (3) a person who is determined by the county agency to be 62.5 learning disabled or, in the case of a non-English-speaking 62.6 person for whom it is not possible to provide a medical 62.7 diagnosis due to language barriers or absence of culturally 62.8 appropriate assessment tools, is determined by a qualified 62.9 professional to have a learning disability. If a rehabilitation 62.10 plan for the person is developed or approved by the county 62.11 agency, the plan must be incorporated into the employment plan. 62.12 However, a rehabilitation plan does not replace the requirement 62.13 to develop and comply with an employment plan under section 62.14 256J.52. For purposes of this section, "learning disabled" 62.15 means the applicant or recipient has a disorder in one or more 62.16 of the psychological processes involved in perceiving, 62.17 understanding, or using concepts through verbal language or 62.18 nonverbal means. The disability must severely limit the 62.19 applicant or recipient in obtaining, performing, or maintaining 62.20 suitable employment. Learning disabled does not include 62.21 learning problems that are primarily the result of visual, 62.22 hearing, or motor handicaps; mental retardation; emotional 62.23 disturbance; or due to environmental, cultural, or economic 62.24 disadvantage; or 62.25 (4) a person who is a victim of family violence as defined 62.26 in section 256J.49, subdivision 2, and who is participating in 62.27 an alternative employment plan under section 256J.49, 62.28 subdivision 1a. 62.29 Sec. 10. Minnesota Statutes 2001 Supplement, section 62.30 256J.425, subdivision 4, is amended to read: 62.31 Subd. 4. [EMPLOYED PARTICIPANTS.] (a) An assistance unit 62.32 subject to the time limit under section 256J.42, subdivision 1, 62.33 in which any participant has received 60 months of assistance, 62.34 is eligible to receive assistance under a hardship extension if 62.35 the participant belongs to: 62.36 (1) a one-parent assistance unit in which the participant 63.1 is participating in work activities for at least 30 hours per 63.2 week, of which an average of at least 25 hours per week every 63.3 month are spent participating in employment;or63.4 (2) a two-parent assistance unit in which the participants 63.5 are participating in work activities for at least 55 hours per 63.6 week, of which an average of at least 45 hours per week every 63.7 month are spent participating in employment; or 63.8 (3) an assistance unit in which a participant is 63.9 participating in employment for fewer hours than those specified 63.10 in clause (1), and the participant submits verification from a 63.11 health care provider, in a form acceptable to the commissioner, 63.12 stating that the number of hours the participant may work is 63.13 limited due to illness or disability, as long as the participant 63.14 is participating in employment for at least the number of hours 63.15 specified by the health care provider. The participant must be 63.16 following the treatment recommendations of the health care 63.17 provider providing the verification. The commissioner shall 63.18 develop a form to be completed and signed by the health care 63.19 provider, documenting the diagnosis and any additional 63.20 information necessary to document the functional limitations of 63.21 the participant that limit work hours. If the participant is 63.22 part of a two-parent assistance unit, the other parent must be 63.23 treated as a one-parent assistance unit for purposes of meeting 63.24 the work requirements under this subdivision. 63.25 For purposes of this section, employment means: 63.26 (1) unsubsidized employment under section 256J.49, 63.27 subdivision 13, clause (1); 63.28 (2) subsidized employment under section 256J.49, 63.29 subdivision 13, clause (2); 63.30 (3) on-the-job training under section 256J.49, subdivision 63.31 13, clause (4); 63.32 (4) an apprenticeship under section 256J.49, subdivision 63.33 13, clause (19); 63.34 (5) supported work. For purposes of this section, 63.35 "supported work" means services supporting a participant on the 63.36 job which include, but are not limited to, supervision, job 64.1 coaching, and subsidized wages; 64.2 (6) a combination of (1) to (5); or 64.3 (7) child care under section 256J.49, subdivision 13, 64.4 clause (25), if it is in combination with paid employment. 64.5 (b) If a participant is complying with a child protection 64.6 plan under chapter 260C, the number of hours required under the 64.7 child protection plan count toward the number of hours required 64.8 under this subdivision. 64.9 (c) The county shall provide the opportunity for subsidized 64.10 employment to participants needing that type of employment 64.11 within available appropriations. 64.12 (d) To be eligible for a hardship extension for employed 64.13 participants under this subdivision, a participant in a 64.14 one-parent assistance unit or both parents in a two-parent 64.15 assistance unit must be in compliance for at least ten out of 64.16 the 12 months immediately preceding the participant's 61st month 64.17 on assistance. If only one parent in a two-parent assistance 64.18 unit fails to be in compliance ten out of the 12 months 64.19 immediately preceding the participant's 61st month, the county 64.20 shall give the assistance unit the option of disqualifying the 64.21 noncompliant parent. If the noncompliant participant is 64.22 disqualified, the assistance unit must be treated as a 64.23 one-parent assistance unit for the purposes of meeting the work 64.24 requirements under this subdivision and the assistance unit's 64.25 MFIP grant shall be calculated using the shared household 64.26 standard under section 256J.08, subdivision 82a. 64.27 (e) The employment plan developed under section 256J.52, 64.28 subdivision 5, for participants under this subdivision must 64.29 contain the number of hours specified in paragraph (a) related 64.30 to employment and work activities. The job counselor and the 64.31 participant must sign the employment plan to indicate agreement 64.32 between the job counselor and the participant on the contents of 64.33 the plan. 64.34 (f) Participants who fail to meet the requirements in 64.35 paragraph (a), without good cause under section 256J.57, shall 64.36 be sanctioned or permanently disqualified under subdivision 6. 65.1 Good cause may only be granted for that portion of the month for 65.2 which the good cause reason applies. Participants must meet all 65.3 remaining requirements in the approved employment plan or be 65.4 subject to sanction or permanent disqualification. 65.5 (g) If the noncompliance with an employment plan is due to 65.6 the involuntary loss of employment, the participant is exempt 65.7 from the hourly employment requirement under this subdivision 65.8 for one month. Participants must meet all remaining 65.9 requirements in the approved employment plan or be subject to 65.10 sanction or permanent disqualification. This exemption is 65.11 available to one-parent assistance units two times in a 12-month 65.12 period, and two-parent assistance units, two times per parent in 65.13 a 12-month period. 65.14 (h) This subdivision expires on June 30, 2004. 65.15 Sec. 11. Minnesota Statutes 2000, section 256J.425, is 65.16 amended by adding a subdivision to read: 65.17 Subd. 4a. [HARDSHIP EXTENSION PENDING DOCUMENTATION.] If 65.18 the documentation needed to determine if a participant is 65.19 eligible for a hardship extension under subdivision 2 or 3 is 65.20 not available by the 60th month, the county agency may extend 65.21 the participant pending receipt of the documentation if the 65.22 county believes the participant is likely to qualify for a 65.23 hardship extension and the participant is cooperating with 65.24 efforts to obtain the documentation. If the participant is 65.25 found to be not eligible for an extension, the participant may 65.26 be responsible for an overpayment. 65.27 Sec. 12. Minnesota Statutes 2001 Supplement, section 65.28 256J.425, subdivision 5, is amended to read: 65.29 Subd. 5. [ACCRUAL OF CERTAIN EXEMPT MONTHS.] (a) A 65.30 participant who received TANF assistance that counted towards 65.31 the federal 60-month time limit while the participant was exempt 65.32 under section 256J.56, paragraph (a), clause (7), from 65.33 employment and training services requirements and who is no 65.34 longer eligible for assistance under a hardship extension under 65.35 subdivision 2, paragraph (a), clause (3), is eligible for 65.36 assistance under a hardship extension for a period of time equal 66.1 to the number of months that were counted toward the federal 66.2 60-month time limit while the participant was exempt under 66.3 section 256J.56, paragraph (a), clause (7), from the employment 66.4 and training services requirements. 66.5 (b) A participant who received TANF assistance that counted 66.6 towards the federal 60-month time limit while the participant 66.7 met the state time limit exemption criteria under section 66.8 256J.42, subdivision 4 or 5, is eligible for assistance under a 66.9 hardship extension for a period of time equal to the number of 66.10 months that were counted toward the federal 60-month time limit 66.11 while the participant met the state time limit exemption 66.12 criteria under section 256J.42, subdivision 5. 66.13 (c) A participant who received TANF assistance that counted 66.14 towards the federal 60-month time limit while the participant 66.15 was exempt under section 256J.56, paragraph (a), clause (3), 66.16 from employment and training services requirements, who 66.17 demonstrates at the time of the case review required under 66.18 section 256J.42, subdivision 6, that the participant met the 66.19 exemption criteria under section 256J.56, paragraph (a), clause 66.20 (7), during one or more months the participant was exempt under 66.21 section 256J.56, paragraph (a), clause (3), before or after July 66.22 1, 2002, is eligible for assistance under a hardship extension 66.23 for a period of time equal to the number of months that were 66.24 counted toward the federal 60-month time limit during the time 66.25 the participant met the criteria under section 256J.56, 66.26 paragraph (a), clause (7). At the time of the case review, a 66.27 county agency must explain to the participant the basis for 66.28 receiving a hardship extension based on the accrual of exempt 66.29 months. The participant must provide documentation necessary to 66.30 enable the county agency to determine whether the participant is 66.31 eligible to receive a hardship extension based on the accrual of 66.32 exempt months or authorize a county agency to verify the 66.33 information. 66.34 Sec. 13. Minnesota Statutes 2000, section 256L.01, 66.35 subdivision 4, is amended to read: 66.36 Subd. 4. [GROSS INDIVIDUAL OR GROSS FAMILY INCOME.] (a) 67.1 "Gross individual or gross family income" forfarm andnonfarm 67.2 self-employed means income calculated using as the baseline the 67.3 adjusted gross income reported on the applicant's federal income 67.4 tax form for the previous year and adding back in reported 67.5 depreciation, carryover loss, and net operating loss amounts 67.6 that apply to the business in which the family is currently 67.7 engaged. 67.8 (b) "Gross individual or gross family income" for farm 67.9 self-employed means income calculated using as the baseline the 67.10 adjusted gross income reported on the applicant's federal income 67.11 tax form for the previous year and adding back in reported 67.12 depreciation amounts that apply to the business in which the 67.13 family is currently engaged. 67.14 (c) Applicants shall report the most recent financial 67.15 situation of the family if it has changed from the period of 67.16 time covered by the federal income tax form. The report may be 67.17 in the form of percentage increase or decrease. 67.18 Sec. 14. Laws 2001, First Special Session chapter 9, 67.19 article 2, section 74, is amended to read: 67.20 Sec. 74. [ELIGIBILITY EXCEPTION TO THE PRESCRIPTION DRUG 67.21 PROGRAM.] 67.22 Notwithstanding the requirements of Minnesota Statutes, 67.23 section 256.955, subdivision 2, paragraph (d), from March 1, 67.24 2001, to June 30,20022003, the definition of a "qualified 67.25 individual" in the prescription drug program established under 67.26 Minnesota Statutes, section 256.955, shall include an individual 67.27 who: 67.28 (1) was enrolled in the prescription drug program prior to 67.29 March 1, 2001; 67.30 (2) was enrolled in a Medicare risk plan prior to March 1, 67.31 2001, to which an annual prescription drug benefit of $400 was 67.32 added on March 1, 2001; and 67.33 (3) meets the requirements described in Minnesota Statutes, 67.34 section 256.955, subdivision 2, paragraph (d), clauses (1) and 67.35 (5), and subdivision 2a. 67.36 The prescription benefit offered by the Medicare risk plan shall 68.1 be primary to benefits provided under the prescription drug 68.2 program. 68.3 ARTICLE 11 68.4 GENERAL FUND CONVERSION TO BOND FUNDS 68.5 Section 1. [INTENT.] 68.6 This article intends to return to the unreserved general 68.7 fund $75,043,000 by changing the fund source of the projects 68.8 listed in this article in the amounts shown in sections 2 to 14, 68.9 by decreasing the appropriation from the general fund and by 68.10 appropriating an equal amount from the aggregate of the bond 68.11 proceeds fund and the transportation fund. This action changes 68.12 the designation of the fund sources made under the cumulative 68.13 effect of Laws 1998, chapter 404; Laws 1999, chapter 250; and 68.14 Laws 2000, chapters 479 and 492. This article also makes a new 68.15 appropriation of $77,000 from the bond proceeds fund for bond 68.16 sale expenses in connection with the bonds authorized in this 68.17 article. 68.18 Sec. 2. [CAPITAL IMPROVEMENT APPROPRIATIONS.] 68.19 The sums in the column under "APPROPRIATIONS" are 68.20 appropriated from the bond proceeds fund or other named fund to 68.21 the state agencies or officials indicated, to be spent for 68.22 public purposes, including to acquire and to better public land 68.23 and buildings and other public improvements of a capital nature, 68.24 as specified in this article. 68.25 SUMMARY 68.26 UNIVERSITY OF MINNESOTA $ 500,000 68.27 CHILDREN, FAMILIES, AND LEARNING 500,000 68.28 NATURAL RESOURCES 6,973,000 68.29 WATER AND SOIL RESOURCES BOARD 300,000 68.30 ADMINISTRATION 43,350,000 68.31 CAPITOL AREA ARCHITECTURAL AND 68.32 PLANNING BOARD 250,000 68.33 AMATEUR SPORTS COMMISSION 690,000 68.34 TRANSPORTATION 13,590,000 68.35 HUMAN SERVICES 1,500,000 68.36 CORRECTIONS 250,000 69.1 TRADE AND ECONOMIC DEVELOPMENT 5,590,000 69.2 MINNESOTA HISTORICAL SOCIETY 1,550,000 69.3 BOND SALE EXPENSES 77,000 69.4 TOTAL $ 75,120,000 69.5 Bond Proceeds Fund 61,530,000 69.6 Transportation Fund 13,590,000 69.7 APPROPRIATIONS 69.8 $ 69.9 Sec. 3. UNIVERSITY OF MINNESOTA 500,000 69.10 To the board of regents of the 69.11 University of Minnesota for 1998 Higher 69.12 Education Asset Preservation and 69.13 Replacement. 69.14 Sec. 4. CHILDREN, FAMILIES, AND LEARNING 500,000 69.15 To the commissioner of children, 69.16 families, and learning for 1998 Early 69.17 Childhood Learning Facilities. 69.18 Sec. 5. NATURAL RESOURCES 69.19 Subdivision 1. To the commissioner 69.20 of natural resources for the purposes 69.21 specified in this section 6,973,000 69.22 Subd. 2. 1998 Park Building Rehabilitation 500,000 69.23 Subd. 3. 1998 Park Betterment 69.24 and Rehabilitation 500,000 69.25 Subd. 4. 1998 Forest Roads and Bridges 750,000 69.26 Subd. 5. 1998 Metro Greenways Acquisition 2,000,000 69.27 Subd. 6. Safe Harbors Program 3,223,000 69.28 Sec. 6. BOARD OF WATER AND 69.29 SOIL RESOURCES 300,000 69.30 To the board of water and soil 69.31 resources for local road replacement. 69.32 Sec. 7. ADMINISTRATION 69.33 Subdivision 1. To the commissioner of 69.34 administration for the purposes specified 69.35 in this section 45,350,000 69.36 Subd. 2. 2000 Asset Preservation 350,000 69.37 Subd. 3. 2000 Bureau of Criminal 69.38 Apprehension Facility 40,000,000 69.39 Subd. 4. 2000 Property Acquisition 450,000 69.40 Subd. 5. 1998 Asset Preservation 1,250,000 69.41 Subd. 6. 1998 Real Property Acquisition 1,000,000 69.42 Subd. 7. 1998 BCA Land Acquisition 300,000 70.1 Sec. 8. CAPITOL AREA ARCHITECTURAL 70.2 AND PLANNING BOARD 250,000 70.3 To the commissioner of administration 70.4 for the HHH Memorial. 70.5 Sec. 9. AMATEUR SPORTS COMMISSION 690,000 70.6 To the amateur sports commission for 70.7 the Giants Ridge Facility. 70.8 Sec. 10. TRANSPORTATION 70.9 Subdivision 1. To the commissioner of 70.10 transportation for the purposes specified 70.11 in this section 13,590,000 70.12 This appropriation is from the 70.13 transportation fund. 70.14 Subd. 2. 2000 County and Local Bridges 13,000,000 70.15 Subd. 3. 1998 CSAH Highway 90 590,000 70.16 Sec. 11. HUMAN SERVICES 1,500,000 70.17 To the commissioner of administration 70.18 for 1998 Asset Preservation. 70.19 Sec. 12. CORRECTIONS 250,000 70.20 To the commissioner of administration 70.21 for 1998 Asset Preservation. 70.22 Sec. 13. TRADE AND ECONOMIC DEVELOPMENT 5,590,000 70.23 To the commissioner of trade and 70.24 economic development for 2000 70.25 Wastewater Infrastructure. 70.26 Sec. 14. MINNESOTA HISTORICAL SOCIETY 70.27 Subdivision 1. To the Minnesota 70.28 historical society for the purposes 70.29 specified in this section 1,550,000 70.30 Subd. 2. 1998 Historic Site 70.31 Preservation and Repair 850,000 70.32 Subd. 3. Split Rock Lighthouse 700,000 70.33 Sec. 15. BOND SALE EXPENSES 77,000 70.34 To the commissioner of finance for 70.35 bond sale expenses under Minnesota 70.36 Statutes, section 16A.641, subdivision 8. 70.37 Sec. 16. [IDENTICAL PROJECTS.] 70.38 The purpose and use of appropriations in this article are 70.39 for the same purpose and use and for identical projects as 70.40 authorized in Laws 1998, chapter 404; Laws 1999, chapter 250; 70.41 and Laws 2000, chapters 479 and 492. Except for the fund source 70.42 of unspent parts of the appropriations listed in this article, 70.43 this article does not change or limit the purpose and use of the 71.1 appropriations and related requirements in Laws 1998, chapter 71.2 404; Laws 1999, chapter 250; and Laws 2000, chapters 479 and 492. 71.3 Sec. 17. [BOND SALE AUTHORIZATIONS.] 71.4 Subdivision 1. [BOND PROCEEDS FUND.] To provide the money 71.5 appropriated in this article from the bond proceeds fund, the 71.6 commissioner of finance shall sell and issue bonds of the state 71.7 in an amount up to $61,530,000 in the manner, upon the terms, 71.8 and with the effect prescribed by Minnesota Statutes, sections 71.9 16A.631 to 16A.675, and by the Minnesota Constitution, article 71.10 XI, sections 4 to 7. 71.11 Subd. 2. [TRANSPORTATION FUND.] To provide the money 71.12 appropriated in this article from the transportation fund, the 71.13 commissioner of finance shall sell and issue bonds of the state 71.14 in an amount up to $13,590,000 in the manner, upon the terms, 71.15 and with the effect prescribed by Minnesota Statutes, sections 71.16 16A.631 to 16A.675, and by the Minnesota Constitution, article 71.17 XI, sections 4 to 7. The proceeds of the bonds, except accrued 71.18 interest and any premium received on the sale of the bonds, must 71.19 be credited to a bond proceeds account in the state 71.20 transportation fund. 71.21 Sec. 18. [CANCELLATION TO GENERAL FUND.] 71.22 Money appropriated from the general fund pursuant to 1998, 71.23 1999, and 2000 acts and not yet spent for the projects listed in 71.24 this article is canceled to the general fund in the amount shown 71.25 for each project. 71.26 Sec. 19. [EFFECTIVE DATE.] 71.27 This article is effective the day following final enactment.