1st Unofficial Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; prekindergarten through grade 1.3 12; higher education; early childhood and family 1.4 education; providing for general education, special 1.5 programs, employment and other transitions, facilities 1.6 and technology, education excellence and other policy, 1.7 nutrition and other programs, libraries, and the 1.8 department of children, families, and learning; making 1.9 technical, conforming, and clarifying amendments; 1.10 appropriating money; amending Minnesota Statutes 1998, 1.11 sections 119B.03, by adding a subdivision; 120A.22, 1.12 subdivision 3; 120B.13, subdivision 4; 121A.22, 1.13 subdivisions 2 and 3; 121A.61, subdivision 3; 122A.25, 1.14 subdivision 3, and by adding subdivisions; 122A.31, 1.15 subdivision 4; 122A.68, subdivision 4; 123A.485, 1.16 subdivision 4; 123B.02, by adding a subdivision; 1.17 123B.04, subdivision 2; 123B.143, subdivision 1; 1.18 123B.51, subdivision 6; 123B.52, by adding a 1.19 subdivision; 123B.53, as amended; 123B.57, subdivision 1.20 1; 123B.58, subdivisions 3 and 4; 123B.59, as amended; 1.21 123B.63, subdivisions 3 and 4; 123B.71, subdivision 1.22 10; 123B.72, subdivision 3; 123B.75, subdivision 5; 1.23 123B.77, subdivision 3; 123B.79, subdivision 7; 1.24 123B.80, by adding a subdivision; 123B.85, subdivision 1.25 1; 123B.86, subdivision 1; 123B.88, subdivision 3; 1.26 123B.90, subdivision 1; 124D.03, subdivision 1; 1.27 124D.081, subdivision 6; 124D.10, subdivisions 9 and 1.28 20; 124D.111, subdivision 1; 124D.128, subdivision 4; 1.29 124D.16, subdivision 1; 124D.44; 124D.454, 1.30 subdivisions 2, 4, 6, 7, and 10; 124D.52, subdivisions 1.31 1, 2, 3, and by adding a subdivision; 124D.86, 1.32 subdivision 6, and by adding subdivisions; 124D.88, by 1.33 adding a subdivision; 124D.892, subdivision 3; 1.34 125A.76, subdivision 7; 126C.10, by adding 1.35 subdivisions; 126C.12, subdivision 2; 126C.16; 1.36 126C.40, subdivisions 1, 2, and 3; 126C.69, 1.37 subdivision 15; 127A.05, subdivision 4; 127A.41, 1.38 subdivisions 8 and 9; 128D.11, subdivision 3; 1.39 136A.125, by adding a subdivision; 169.447, by adding 1.40 a subdivision; 169.448, subdivision 3; 171.06, 1.41 subdivision 2; 171.321; 245A.14, subdivision 4, and by 1.42 adding a subdivision; 354.05, subdivision 2; 354A.011, 1.43 subdivision 27; and 471.15; Minnesota Statutes 1999 1.44 Supplement, sections 119B.011, subdivisions 12, 15, 1.45 and 20; 119B.03, subdivision 4; 119B.05, subdivision 1.46 1; 120B.30, subdivision 1; 122A.18, subdivision 3; 2.1 122A.20, subdivision 1; 122A.23; 122A.31, subdivisions 2.2 1 and 2; 122A.61, subdivision 1; 123B.54; 123B.83, 2.3 subdivision 4; 123B.90, subdivision 2; 123B.91, 2.4 subdivision 1; 124D.10, subdivisions 3, 4, 8, 11, 15, 2.5 and 23; 124D.11, subdivisions 1, 4, and 6; 124D.128, 2.6 subdivision 2; 124D.221, subdivision 2; 124D.53, 2.7 subdivision 3; 124D.68, subdivision 9; 124D.84, 2.8 subdivision 1; 124D.86, subdivisions 1 and 3; 124D.87; 2.9 124D.88, subdivision 3; 125A.023, subdivisions 3 and 2.10 5; 125A.027, subdivision 3; 125A.08; 125A.51; 125A.76, 2.11 subdivisions 1 and 2; 125A.79, subdivisions 1, 2, 5, 2.12 and 8; 125A.80; 125B.21, subdivision 3; 126C.05, 2.13 subdivisions 3, 5, and 6; 126C.10, subdivisions 2, 5, 2.14 13, 14, 24, 25, and 26; 126C.17, subdivision 9; 2.15 126C.40, subdivision 6; 126C.44; 127A.05, subdivision 2.16 6; 127A.42, subdivision 3; 127A.45, subdivision 12a; 2.17 127A.51; 148.235, by adding a subdivision; and 2.18 181A.04, subdivision 6; Laws 1992, chapter 499, 2.19 article 7, sections 31, as amended; and 32; Laws 1997, 2.20 chapter 157, section 71, as amended; Laws 1997, First 2.21 Special Session chapter 4, article 8, section 4, as 2.22 amended; Laws 1998, chapter 404, section 5, 2.23 subdivision 11, as amended; Laws 1998, First Special 2.24 Session chapter 1, article 1, sections 10 and 11; Laws 2.25 1999, chapters 205, articles 1, sections 65 and 71, 2.26 subdivisions 3, 7, and 9; 2, section 4, subdivision 3; 2.27 4, section 12, subdivisions 5, 6, and 7; 214, article 2.28 1, section 4, subdivision 2; 241, articles 1, sections 2.29 68, subdivisions 2, 4, and 5; and 69; 2, section 60, 2.30 subdivisions 7, 9, 12, 13, 14, 17, and 19; 3, section 2.31 3, subdivisions 2 and 4; 4, section 27, subdivisions 2.32 2, 3, 4, and 5; 5, section 18, subdivisions 5 and 6; 2.33 6, section 14, subdivisions 2, 3, 4, and 5; 7, section 2.34 2, subdivisions 2 and 5; 8, section 4, subdivisions 4 2.35 and 5; 9, section 49; and 10, section 6; proposing 2.36 coding for new law in Minnesota Statutes, chapters 2.37 120B; 121A; 123B; 124D; 125B; 126C; and 134; repealing 2.38 Minnesota Statutes 1998, sections 120A.41; and 2.39 124D.53, subdivisions 1, 2, and 5; Minnesota Statutes 2.40 1999 Supplement, sections 124D.1155, subdivision 5; 2.41 and 124D.53, subdivision 4; Laws 1998, First Special 2.42 Session chapter 1, article 1, section 10, subdivision 2.43 2; Laws 1999, chapters 241, article 9, sections 35 and 2.44 36; and 245, article 4, section 3; Minnesota Rules, 2.45 parts 3535.9920; 4830.9005; 4830.9010; 4830.9015; 2.46 4830.9020; and 4830.9030. 2.47 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.48 ARTICLE 1 2.49 GENERAL EDUCATION 2.50 Section 1. Minnesota Statutes 1999 Supplement, section 2.51 122A.61, subdivision 1, is amended to read: 2.52 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 2.53 required to reserve an amount equal to at least
onetwo percent 2.54 of the basic revenue under section 126C.10, subdivision 2, for 2.55 in-service education for programs under section 120B.22, 2.56 subdivision 2, for staff development plans, including plans for 2.57 challenging instructional activities and experiences under 2.58 section 122A.60, and for curriculum development and programs, 3.1 other in-service education, teachers' workshops, teacher 3.2 conferences, the cost of substitute teachers staff development 3.3 purposes, and other related costs for staff development 3.4 efforts. A district may annually waive the requirement to 3.5 reserve their basic revenue under this section if a majority 3.6 vote of the licensed teachers in the district and a majority 3.7 vote of the school board agree to a resolution to waive the 3.8 requirement. A district in statutory operating debt is exempt 3.9 from reserving basic revenue according to this section. 3.10 Districts may expend an additional amount of unreserved revenue 3.11 for staff development based on their needs. With the exception 3.12 of amounts reserved for staff development from revenues 3.13 allocated directly to school sites, the board must initially 3.14 allocate 50 percent of the reserved revenue to each school site 3.15 in the district on a per teacher basis, which must be retained 3.16 by the school site until used. The board may retain 25 percent 3.17 to be used for district wide staff development efforts. The 3.18 remaining 25 percent of the revenue must be used to make grants 3.19 to school sites for best practices methods. A grant may be used 3.20 for any purpose authorized under section 120B.22, subdivision 2, 3.21 122A.60, or for the costs of curriculum development and 3.22 programs, other in-service education, teachers' workshops, 3.23 teacher conferences, substitute teachers for staff development 3.24 purposes, and other staff development efforts, and determined by 3.25 the site professional development team. The site professional 3.26 development team must demonstrate to the school board the extent 3.27 to which staff at the site have met the outcomes of the 3.28 program. The board may withhold a portion of initial allocation 3.29 of revenue if the staff development outcomes are not being met. 3.30 Sec. 2. Minnesota Statutes 1998, section 122A.68, 3.31 subdivision 4, is amended to read: 3.32 Subd. 4. [EMPLOYMENT CONDITIONS.] A school district must 3.33 pay a teaching resident a salary equal to 7590 percent of the 3.34 salary of a first-year teacher with a bachelor's degree in the 3.35 district. The resident shall be a member of the local 3.36 bargaining unit and shall be covered under the terms of the 4.1 contract, except for salary and benefits, unless otherwise 4.2 provided in this subdivision. The school district must provide 4.3 health insurance coverage for the resident if the district 4.4 provides it for teachers, and may provide other benefits upon 4.5 negotiated agreement. 4.6 Sec. 3. Minnesota Statutes 1998, section 123A.485, 4.7 subdivision 4, is amended to read: 4.8 Subd. 4. [NEW DISTRICTS.] If a district consolidates with 4.9 another district that has received aid under section 123A.39, 4.10 subdivision 3, or 123A.485 for a combination or consolidation 4.11 taking effect within six years of the effective date of the new 4.12 consolidation, only the pupil units in the district or districts 4.13 not previously reorganized must be counted for aid purposes 4.14 under subdivision 2. If two or more districts consolidate and 4.15 all districts received aid under subdivision 2 for a 4.16 consolidation taking effect within six years of the effective 4.17 date of the new consolidation, only one quarter of the pupil 4.18 units in the newly created district must be used to determine 4.19 aid under subdivision 2. 4.20 Sec. 4. Minnesota Statutes 1998, section 123B.75, 4.21 subdivision 5, is amended to read: 4.22 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 4.23 settlement revenue" means the current, delinquent, and 4.24 manufactured home property tax receipts collected by the county 4.25 and distributed to the school district. 4.26 (b) In June of each year, the school district must 4.27 recognize as revenue, in the fund for which the levy was made, 4.28 the lesser of: 4.29 (1) the May, June, and July school district tax settlement 4.30 revenue received in that calendar year; or 4.31 (2) the sum of: 4.32 (i) 31 percent of the referendum levy certified in the 4.33 prior calendar year according to section 126C.17, subdivision 9; 4.34 plus 4.35 (ii) the entire amount of the levy certified in the prior 4.36 calendar year according to sections 124D.86, subdivision 4, for 5.1 school districts receiving revenue under section 124D.86, 5.2 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 5.3 1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 5.4 2; and 126C.48, subdivision 6. 5.5 Sec. 5. Minnesota Statutes 1999 Supplement, section 5.6 124D.11, subdivision 1, is amended to read: 5.7 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 5.8 education revenue must be paid to a charter school as though it 5.9 were a district. The general education revenue for each 5.10 adjusted marginal cost pupil unit is the state average general 5.11 education revenue per pupil unit, plus the referendum 5.12 equalization aid allowance in the pupil's district of residence, 5.13 minus an amount equal to the product of the formula allowance 5.14 according to section 126C.10, subdivision 2, times .0485, 5.15 calculated without basic skills revenue, transportation sparsity 5.16 revenue, and the transportation portion of the transition 5.17 revenue adjustment, plus basic skills revenue as though the 5.18 school were a school district. 5.19 (b) Notwithstanding paragraph (a), for charter schools in 5.20 the first year of operation, general education revenue shall be 5.21 computed using the number of adjusted pupil units in the current 5.22 fiscal year. 5.23 Sec. 6. Minnesota Statutes 1999 Supplement, section 5.24 124D.86, subdivision 1, is amended to read: 5.25 Subdivision 1. [USE OF THE REVENUE.] Integration revenue 5.26 under this section must be used for programs established under a 5.27 desegregation plan filed with the department of children, 5.28 families, and learning, according to Minnesota Rules, parts 5.29 3535.0100 to 3535.0180 or under court order , to increase. The 5.30 revenue must be used to create or enhance learning opportunities 5.31 and reduce the learning gap between learners living in high5.32 concentrations of poverty and their peerswhich are designed to 5.33 provide opportunities for students to have increased interracial 5.34 contacts through classroom experiences, staff initiatives, and 5.35 other educationally related programs. 5.36 Sec. 7. Minnesota Statutes 1998, section 124D.86, is 6.1 amended by adding a subdivision to read: 6.2 Subd. 1a. [BUDGET APPROVAL PROCESS.] Each year before a 6.3 district receives any revenue under subdivision 3, clause (4), 6.4 the district must submit to the department of children, 6.5 families, and learning, for its review and approval a budget 6.6 detailing the costs of the desegregation/integration plan filed 6.7 under Minnesota Rules, parts 3535.0100 to 3535.0180. 6.8 Notwithstanding chapter 14, the department may develop criteria 6.9 for budget approval. The department shall consult with the 6.10 desegregation advisory board in developing these criteria. The 6.11 criteria developed by the department should address, at a 6.12 minimum, the following: 6.13 (1) budget items cannot be approved unless they are part of 6.14 any overall desegregation plan approved by the district for 6.15 isolated sites or by the multidistrict collaboration council and 6.16 participation individual members; 6.17 (2) the budget must indicate how revenue expenditures will 6.18 be used specifically to support increased opportunities for 6.19 interracial contact; 6.20 (3) components of the budget to be considered by the 6.21 department, including staffing, curriculum, transportation, 6.22 facilities, materials, and equipment and reasonable planning 6.23 costs, as determined by the department; 6.24 (4) if plans are proposed to enhance existing programs, the 6.25 total budget being appropriated to the program must be included, 6.26 indicating what part is to be funded using integration revenue 6.27 and what part is to be funded using other revenues; and 6.28 (5) the commissioner may deny revenue under this section if 6.29 the district is not meeting its goals outlined under subdivision 6.30 1b. 6.31 Sec. 8. Minnesota Statutes 1998, section 124D.86, is 6.32 amended by adding a subdivision to read: 6.33 Subd. 1b. [PLAN COMPONENTS.] Plans submitted by each 6.34 district under Minnesota Rules, parts 3535.0160 and 3535.0170, 6.35 must be approved by the district's board each year before 6.36 integration revenue will be awarded. If a district is applying 7.1 for revenue for a plan that is part of a multidistrict council, 7.2 the individual district shall not receive revenue unless it 7.3 ratifies the plan adopted by its multidistrict council or 7.4 approves a modified plan with a written explanation of any 7.5 modifications. Each plan shall contain: 7.6 (1) an identification of the integration issues at the 7.7 sites or districts covered by Minnesota Rules, parts 3535.0100 7.8 to 3535.0180; 7.9 (2) a description of the community outreach that preceded 7.10 the integration plan, such that the commissioner can determine 7.11 whether the membership of the planning councils complied with 7.12 the requirements of Minnesota Rules, parts 3535.0100 to 7.13 3535.0180; and 7.14 (3) the specific goals of the integration plan. 7.15 By June 30 of the subsequent fiscal year, each district shall 7.16 report to the commissioner in writing about the extent to which 7.17 the integration goals identified in the plan were met. 7.18 Sec. 9. Minnesota Statutes 1999 Supplement, section 7.19 124D.86, subdivision 3, is amended to read: 7.20 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 2000 and 7.21 later fiscal years, integration revenue equals the following 7.22 amounts: 7.23 (1) for independent school district No. 709, Duluth, $207 7.24 times the adjusted pupil units for the school year; 7.25 (2) for independent school district No. 625, St. Paul, $446 7.26 times the adjusted pupil units for the school year; 7.27 (3) for special school district No. 1, Minneapolis, $536 7.28 times the adjusted pupil units for the school year; and 7.29 (4) for a district not listed in clause (1), (2), or (3) 7.30 that is required to implement a plan according to the 7.31 requirements of Minnesota Rules, parts 3535.0100 to 7.32 3535.0180, as proposed in 23 State Register 1344, December 7,7.33 1998,the lesser of 7.34 (i) the actual cost of implementing the plan during the 7.35 fiscal year minus the aid received under subdivision 6, or 7.36 (ii) $93 times the adjusted pupil units for the school year. 8.1 Any money received by districts in clauses (1) to (3) which 8.2 exceeds the amount received in fiscal year 2000 shall be subject 8.3 to the budget requirements in subdivision 1a. 8.4 Sec. 10. Minnesota Statutes 1998, section 124D.86, 8.5 subdivision 6, is amended to read: 8.6 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 8.7 integration aid under subdivision 5 must be adjusted for each 8.8 pupil residing in a district eligible for integration revenue 8.9 under subdivision 3, clause (1), (2), or (3), and attending a 8.10 nonresident district under sections 123A.05 to 123A.08, 124D.03, 8.11 124D.06, 124D.07, and 124D.08, that is not eligible for 8.12 integration revenue under subdivision 3, clause (1), (2), or 8.13 (3), and has implemented a plan under Minnesota Rules, parts 8.14 3535.0100 to 3535.0180, if the enrollment of the pupil in the 8.15 nonresident district contributes to desegregation or integration 8.16 purposes. The adjustments must be made according to this 8.17 subdivision. 8.18 (b) Aid paid to the district of the pupil's residence must8.19 be reduced by an amount equal to the revenue per resident pupil8.20 unit of the resident district times the number of resident pupil8.21 units attributable to the pupil for the time the pupil is8.22 enrolled in a nonresident district.8.23 (c)Aid paid to a district serving nonresidents must be 8.24 increased by an amount equal to the aid reduction to the8.25 resident district under paragraphs (b) and (d)revenue per pupil 8.26 unit of the resident district under subdivision 3, clause (1), 8.27 (2), or (3), minus the revenue attributable to the pupil in the 8.28 nonresident district under subdivision 3, clause (4), for the 8.29 time the pupil is enrolled in the nonresident district. 8.30 (d) If the amount of the reduction to be made from the aid8.31 of a district is greater than the amount of aid otherwise due8.32 the district, the excess reduction must be made from other state8.33 aids due the district.8.34 Sec. 11. Minnesota Statutes 1999 Supplement, section 8.35 124D.87, is amended to read: 8.36 124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 9.1 TRANSPORTATION AID.] 9.2 (a) A district that provides transportation of pupils to 9.3 and from an interdistrict program for desegregation or 9.4 integration purposes is eligible for state aid to cover9.5 reimburse the additional costs of transportation during the 9.6 preceding fiscal year. 9.7 (b) A district in the metropolitan area may apply to the 9.8 commissioner for state aid to coverreimburse the costs of 9.9 transporting pupils who are enrolled under section 9.10 124D.03 during the preceding fiscal year if the enrollment of 9.11 the student in the nonresident district contributes to 9.12 desegregation or integration purposes. The commissioner shall 9.13 develop the form and manner of applications for state aid, the 9.14 criteria to be used to determine when transportation is for 9.15 desegregation or integration purposes, and the accounting 9.16 procedure to be used to determine excess costs. In determining 9.17 aid amounts, the commissioner shall consider other revenue 9.18 received by the district for transportation for desegregation or 9.19 integration purposes. 9.20 (c) Aid must be paid under paragraph (b) only if aid9.21 amounts under paragraph (a) have been fully funded.9.22 Sec. 12. Minnesota Statutes 1999 Supplement, section 9.23 126C.05, subdivision 5, is amended to read: 9.24 Subd. 5. [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 9.25 for a district or charter school means the sum of: 9.26 (1) the number of pupil units served, according to 9.27 subdivision 7, plus 9.28 (2) pupil units according to subdivision 1 for whom the 9.29 district or charter school pays tuition under section 123A.18, 9.30 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 9.31 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 9.32 125A.65, minus 9.33 (3) pupil units according to subdivision 1 for whom the 9.34 district or charter school receives tuition under section 9.35 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 9.36 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 10.1 125A.65. 10.2 (b) Adjusted marginal cost pupil units means the sum 10.3 of .9.77 times the pupil units defined in paragraph (a) for the 10.4 current school year and .1.23 times the pupil units defined in 10.5 paragraph (a) for the previous school year. 10.6 Sec. 13. Minnesota Statutes 1999 Supplement, section 10.7 126C.05, subdivision 6, is amended to read: 10.8 Subd. 6. [RESIDENT PUPIL UNITS.] (a) Resident pupil units 10.9 for a district means the number of pupil units according to 10.10 subdivision 1 residing in the district. 10.11 (b) Resident marginal cost pupil units means the sum 10.12 of .9.77 times the pupil units defined in paragraph (a) for the 10.13 current year and .1.23 times the pupil units defined in 10.14 paragraph (a) for the previous school year. 10.15 Sec. 14. Minnesota Statutes 1999 Supplement, section 10.16 126C.10, subdivision 2, is amended to read: 10.17 Subd. 2. [BASIC REVENUE.] The basic revenue for each 10.18 district equals the formula allowance times the resident pupil 10.19 units for the school year. The formula allowance for fiscal 10.20 year 1998 is $3,581. The formula allowance for fiscal year 1999 10.21 is $3,530. The formula allowance for fiscal year 2000 is 10.22 $3,740. The formula allowance for fiscal year 2001 and 10.23 subsequent fiscal years is $3,875$3,964. 10.24 Sec. 15. Minnesota Statutes 1999 Supplement, section 10.25 126C.10, subdivision 5, is amended to read: 10.26 Subd. 5. [TRAINING AND EXPERIENCE REVENUE.] (a) The 10.27 training and experience revenue for each district equals the 10.28 greater of zero or the result of the following computation: 10.29 (1) subtract .8 from the training and experience index; 10.30 (2) multiply the result in clause (1) by the product of 10.31 $660 times the adjusted marginal cost pupil units for the school 10.32 year. 10.33 (b) Training and experience revenue equals the greater of 10.34 the amount calculated in paragraph (a) for fiscal year 2001 or 10.35 the training and experience adjustment revenue, according to 10.36 subdivision 5b. 11.1 EFFECTIVE DATE:This section is effective the day 11.2 following final enactment. 11.3 Sec. 16. Minnesota Statutes 1998, section 126C.10, is 11.4 amended by adding a subdivision to read: 11.5 Subd. 5a. [TRAINING AND EXPERIENCE ADJUSTMENT BASE.] The 11.6 training and experience adjustment base equals the product of 11.7 $130 plus the district's training and experience transition 11.8 allowance for fiscal year 1998 under Minnesota Statutes 1996, 11.9 section 124A.22, subdivision 13b, paragraph (c), times the 11.10 actual pupil units for 1998. 11.11 EFFECTIVE DATE:This section is effective the day 11.12 following final enactment. 11.13 Sec. 17. Minnesota Statutes 1998, section 126C.10, is 11.14 amended by adding a subdivision to read: 11.15 Subd. 5b. [TRAINING AND EXPERIENCE ADJUSTMENT 11.16 REVENUE.] For fiscal year 2001, the training and experience 11.17 adjustment revenue equals 45 percent of the training and 11.18 experience base. 11.19 EFFECTIVE DATE:This section is effective the day 11.20 following final enactment. 11.21 Sec. 18. Minnesota Statutes 1999 Supplement, section 11.22 126C.10, subdivision 24, is amended to read: 11.23 Subd. 24. [EQUITY REVENUE.] (a) A school district 11.24 qualifies for equity revenue if the school district's adjusted 11.25 marginal cost pupil unit amount of basic revenue, supplemental 11.26 revenue, transition revenue, and referendum revenue is less than 11.27 the value of the school district at or immediately above the 11.28 90th percentile of school districts in its equity region for 11.29 those revenue categories and the school district's 11.30 administrative offices are not located in a city of the first 11.31 class on July 1, 1999. 11.32 (b) Equity revenue for a qualifying district that receives 11.33 referendum revenue under section 126C.17, subdivision 4, equals 11.34 the product of (1) the district's adjusted marginal cost pupil 11.35 units for that year; times (2) the sum of (i) $10, plus (ii) 11.36 $30, times the school district's equity index computed under 12.1 section 126C.10, subdivision 6. 12.2 (c) Equity revenue for a qualifying district that does not 12.3 receive referendum revenue under section 126C.17, subdivision 4, 12.4 equals the product of the district's adjusted marginal cost 12.5 pupil units for that year times $10. 12.6 EFFECTIVE DATE:This section is effective for revenue in 12.7 fiscal year 2000. 12.8 Sec. 19. Minnesota Statutes 1999 Supplement, section 12.9 126C.10, subdivision 25, is amended to read: 12.10 Subd. 25. [REGIONAL EQUITY GAP.] The regional equity gap 12.11 equals the difference between the value of the school district 12.12 at or immediately above the fifth percentile of adjusted general 12.13 revenue per marginal cost pupil unit and the value of the school 12.14 district at or immediately above the 90th percentile of adjusted 12.15 general revenue per adjusted marginal cost pupil unit. 12.16 EFFECTIVE DATE:This section is effective for revenue in 12.17 fiscal year 2000. 12.18 Sec. 20. Minnesota Statutes 1999 Supplement, section 12.19 126C.10, subdivision 26, is amended to read: 12.20 Subd. 26. [DISTRICT EQUITY GAP.] A district's equity gap 12.21 equals the greater of zero or the difference between the 12.22 district's adjusted general revenue and the value of the school 12.23 district at or immediately above the regional 90th percentile of 12.24 adjusted general revenue per adjusted marginal cost pupil unit. 12.25 EFFECTIVE DATE:This section is effective for revenue in 12.26 fiscal year 2000. 12.27 Sec. 21. Minnesota Statutes 1998, section 126C.16, is 12.28 amended to read: 12.29 126C.16 [REFERENDUM AND DESEGREGATION REVENUE CONVERSION.] 12.30 Subdivision 1. [REVENUE CONVERSION.] Except as provided 12.31 under subdivision 3, the referendum authority under section 12.32 126C.17 and the levy authority under section 124.912, 12.33 subdivisions 2 and 3, of a district must be converted by the 12.34 department according to this section. 12.35 Subd. 2. [RATE ADJUSTMENT.] The department must adjust a 12.36 district's referendum authority for a referendum approved before 13.1 July 1, 1991, excluding authority based on a dollar amount, and 13.2 the levy authority under section 124.912, subdivisions 2 and 3, 13.3 by multiplying the sum of the rates authorized by a district 13.4 under section 126C.17 and the rates in section 124.912, 13.5 subdivisions 2 and 3, by the ratio determined under subdivision 13.6 2 for the assessment year for which the revenue is 13.7 attributable. The adjusted rates for assessment year 1993 apply 13.8 to later years for which the revenue is authorized. 13.9 Subd. 3. [PER PUPIL REVENUE CONVERSION.] (a) The 13.10 department must convert each district's referendum revenue 13.11 authority for fiscal year 2002 and later years to an allowance 13.12 per pupil unit as follows: the revenue allowance equals the 13.13 amount determined by dividing the district's maximum revenue 13.14 under section 126C.17, for fiscal year 2001 by the district's 13.15 2000-2001 resident marginal cost pupil units. A district's 13.16 maximum revenue for all later years for which the revenue is 13.17 authorized equals the revenue allowance times the district's 13.18 resident marginal cost pupil units for that year. 13.19 (b) The referendum allowance reduction must be applied 13.20 first to the authority with the earliest expiration date. 13.21 Sec. 22. Minnesota Statutes 1999 Supplement, section 13.22 126C.17, subdivision 9, is amended to read: 13.23 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 13.24 by section 126C.10, subdivision 1, may be increased in the 13.25 amount approved by the voters of the district at a referendum 13.26 called for the purpose. The referendum may be called by the 13.27 board or shall be called by the board upon written petition of 13.28 qualified voters of the district. The referendum must be 13.29 conducted one or two calendar years before the increased levy 13.30 authority, if approved, first becomes payable. Only one 13.31 election to approve an increase may be held in a calendar year. 13.32 Unless the referendum is conducted by mail under paragraph (g), 13.33 the referendum must be held on the first Tuesday after the first 13.34 Monday in November. The ballot must state the maximum amount of 13.35 the increased revenue per resident marginal cost pupil unit, the 13.36 estimated referendum tax rate as a percentage of referendum 14.1 market value in the first year it is to be levied, and that the 14.2 revenue must be used to finance school operations. The ballot 14.3 may state a schedule, determined by the board, of increased 14.4 revenue per resident marginal cost pupil unitsunit that differs 14.5 from year to year over the number of years for which the 14.6 increased revenue is authorized. If the ballot contains a 14.7 schedule showing different amounts, it must also indicate the 14.8 estimated referendum tax rate as a percent of referendum market 14.9 value for the amount specified for the first year and for the 14.10 maximum amount specified in the schedule. The ballot may state 14.11 that existing referendum levy authority is expiring. In this 14.12 case, the ballot may also compare the proposed levy authority to 14.13 the existing expiring levy authority, and express the proposed 14.14 increase as the amount, if any, over the expiring referendum 14.15 levy authority. The ballot must designate the specific number 14.16 of years, not to exceed ten, for which the referendum 14.17 authorization applies. The notice required under section 275.60 14.18 may be modified to read, in cases of renewing existing levies: 14.19 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 14.20 FOR A PROPERTY TAX INCREASE." 14.21 The ballot may contain a textual portion with the 14.22 information required in this subdivision and a question stating 14.23 substantially the following: 14.24 "Shall the increase in the revenue proposed by (petition 14.25 to) the board of ........., School District No. .., be approved?" 14.26 If approved, an amount equal to the approved revenue per 14.27 resident marginal cost pupil unit times the resident marginal 14.28 cost pupil units for the school year beginning in the year after 14.29 the levy is certified shall be authorized for certification for 14.30 the number of years approved, if applicable, or until revoked or 14.31 reduced by the voters of the district at a subsequent referendum. 14.32 (b) The board must prepare and deliver by first class mail 14.33 at least 15 days but no more than 30 days before the day of the 14.34 referendum to each taxpayer a notice of the referendum and the 14.35 proposed revenue increase. The board need not mail more than 14.36 one notice to any taxpayer. For the purpose of giving mailed 15.1 notice under this subdivision, owners must be those shown to be 15.2 owners on the records of the county auditor or, in any county 15.3 where tax statements are mailed by the county treasurer, on the 15.4 records of the county treasurer. Every property owner whose 15.5 name does not appear on the records of the county auditor or the 15.6 county treasurer is deemed to have waived this mailed notice 15.7 unless the owner has requested in writing that the county 15.8 auditor or county treasurer, as the case may be, include the 15.9 name on the records for this purpose. The notice must project 15.10 the anticipated amount of tax increase in annual dollars and 15.11 annual percentage for typical residential homesteads, 15.12 agricultural homesteads, apartments, and commercial-industrial 15.13 property within the school district. 15.14 The notice for a referendum may state that an existing 15.15 referendum levy is expiring and project the anticipated amount 15.16 of increase over the existing referendum levy in the first year, 15.17 if any, in annual dollars and annual percentage for typical 15.18 residential homesteads, agricultural homesteads, apartments, and 15.19 commercial-industrial property within the district. 15.20 The notice must include the following statement: "Passage 15.21 of this referendum will result in an increase in your property 15.22 taxes." However, in cases of renewing existing levies, the 15.23 notice may include the following statement: "Passage of this 15.24 referendum may result in an increase in your property taxes." 15.25 (c) A referendum on the question of revoking or reducing 15.26 the increased revenue amount authorized pursuant to paragraph 15.27 (a) may be called by the board and shall be called by the board 15.28 upon the written petition of qualified voters of the district. 15.29 A referendum to revoke or reduce the levy amount must be based 15.30 upon the dollar amount, local tax rate, or amount per resident 15.31 marginal cost pupil unit, that was stated to be the basis for 15.32 the initial authorization. Revenue approved by the voters of 15.33 the district pursuant to paragraph (a) must be received at least 15.34 once before it is subject to a referendum on its revocation or 15.35 reduction for subsequent years. Only one revocation or 15.36 reduction referendum may be held to revoke or reduce referendum 16.1 revenue for any specific year and for years thereafter. 16.2 (d) A petition authorized by paragraph (a) or (c) is 16.3 effective if signed by a number of qualified voters in excess of 16.4 15 percent of the registered voters of the district on the day 16.5 the petition is filed with the board. A referendum invoked by 16.6 petition must be held on the date specified in paragraph (a). 16.7 (e) The approval of 50 percent plus one of those voting on 16.8 the question is required to pass a referendum authorized by this 16.9 subdivision. 16.10 (f) At least 15 days before the day of the referendum, the 16.11 district must submit a copy of the notice required under 16.12 paragraph (b) to the commissioner and to the county auditor of 16.13 each county in which the district is located. Within 15 days 16.14 after the results of the referendum have been certified by the 16.15 board, or in the case of a recount, the certification of the 16.16 results of the recount by the canvassing board, the district 16.17 must notify the commissioner of the results of the referendum. 16.18 (g) Except for a referendum held under subdivision 11, any 16.19 referendum under this section held on a day other than the first 16.20 Tuesday after the first Monday in November must be conducted by 16.21 mail in accordance with section 204B.46. Notwithstanding 16.22 paragraph (b) to the contrary, in the case of a referendum 16.23 conducted by mail under this paragraph, the notice required by 16.24 paragraph (b) must be prepared and delivered by first class mail 16.25 at least 20 days before the referendum. 16.26 Sec. 23. [126C.37.] [SECONDARY VOCATIONAL REVENUE 16.27 RESERVE.] 16.28 Subdivision 1. [RESERVE REVENUE.] For fiscal year 2001 and 16.29 later, a district must reserve an amount equal to the number of 16.30 adjusted marginal cost pupil units times the amount of secondary 16.31 vocational aid, according to section 124D.453, paid to the 16.32 district in fiscal year 2000, divided by the district's adjusted 16.33 marginal cost pupil units for fiscal year 2000. A school board 16.34 may vote to not reserve secondary vocational aid as determined 16.35 by this section. 16.36 Subd. 2. [REVENUE USE.] Revenue must be used for: 17.1 (1) salaries paid to essential, licensed personnel 17.2 providing direct instructional services to students in that 17.3 fiscal year for services rendered in the district's approved 17.4 career and technical education programs; 17.5 (2) contracted services provided by a public or private 17.6 agency other than a Minnesota school district or cooperative 17.7 center; 17.8 (3) necessary travel between instructional sites by 17.9 licensed career and technical education personnel; 17.10 (4) necessary travel by licensed career and technical 17.11 education personnel for vocational student organization 17.12 activities held within the state for instructional purposes; 17.13 (5) curriculum development activities that are part of a 17.14 five-year plan for improvement based on program assessment; 17.15 (6) necessary travel by licensed career and technical 17.16 education personnel for noncollegiate credit bearing 17.17 professional development; or 17.18 (7) specialized vocational instructional supplies and 17.19 equipment. 17.20 Sec. 24. Minnesota Statutes 1999 Supplement, section 17.21 127A.45, subdivision 12a, is amended to read: 17.22 Subd. 12a. [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 17.23 percent of the state aid in fiscal year 1999, and 31 percent of 17.24 the state aid in fiscal years 2000 and later received under 17.25 section 124D.86 must be paid by the state to the recipient 17.26 school district on July 15 of that year. The recipient school 17.27 district must recognize this aid in the same fiscal year as the 17.28 levy is recognized. 17.29 (b) One hundred percent of the state aid in fiscal years 17.30 2003 and later received under section 124D.87 must be paid by 17.31 the state to the recipient school district on August 30 of that 17.32 year. The recipient school district must recognize this aid in 17.33 the previous fiscal year. 17.34 Sec. 25. Minnesota Statutes 1999 Supplement, section 17.35 127A.51, is amended to read: 17.36 127A.51 [STATEWIDE AVERAGE REVENUE.] 18.1 By October 1 of each year the commissioner must estimate 18.2 the statewide average adjusted general revenue per adjusted 18.3 marginal cost pupil unit and the disparity in adjusted general 18.4 revenue among pupils and districts by computing the ratio of the 18.5 ninety-fifth percentile to the fifth percentile of adjusted 18.6 general revenue. The commissioner must provide that information 18.7 to all districts. 18.8 If the disparity in adjusted general revenue as measured by 18.9 the ratio of the ninety-fifth percentile to the fifth percentile 18.10 increases in any year, the commissioner shall recommend to the 18.11 legislature options for change in the general education formula 18.12 that will limit the disparity in adjusted general revenue to no 18.13 more than the disparity for the previous school year. The 18.14 commissioner must submit the recommended options to the 18.15 education committees of the legislature by January 15. 18.16 For purposes of this section and section 126C.10, adjusted 18.17 general revenue means the sum of basic revenue under section 18.18 126C.10, subdivision 2; supplemental revenue under section 18.19 126C.10, subdivisions 9 and 12; transition revenue under section 18.20 126C.10, subdivision 20; and referendum revenue under section 18.21 126C.17. 18.22 Sec. 26. Minnesota Statutes 1998, section 128D.11, 18.23 subdivision 3, is amended to read: 18.24 Subd. 3. [NO ELECTION.] Subject to the provisions of 18.25 subdivisions 7 to 10, the school district may also by a 18.26 two-thirds majority vote of all the members of its board of 18.27 education and without any election by the voters of the 18.28 district, issue and sell in each calendar year general 18.29 obligation bonds of the district in an amount not to exceed 18.30 5-1/10 per cent of the net tax capacity of the taxable property 18.31 in the district (plus, for calendar years 1990 to 20032008, an 18.32 amount not to exceed $7,500,000$15,000,000; with an additional 18.33 provision that any amount of bonds so authorized for sale in a 18.34 specific year and not sold can be carried forward and sold in 18.35 the year immediately following). 18.36 Sec. 27. Laws 1992, chapter 499, article 7, section 32, is 19.1 amended to read: 19.2 Sec. 32. [EFFECTIVE DATE.] 19.3 Sections 1, 9, 14, 18, 19, 20, 21, 22, 23, and 30 are 19.4 effective the day following final enactment. Sections 4 to 8 19.5 are effective for revenue for fiscal year 20002002. 19.6 Sec. 28. Laws 1992, chapter 499, article 7, section 31, as 19.7 amended by Laws 1998, chapter 398, article 1, section 39, and 19.8 Laws 1999, chapter 241, article 1, section 31, is amended to 19.9 read: 19.10 Sec. 31. [REPEALER.] 19.11 Minnesota Statutes 1990, sections 124A.02, subdivision 24; 19.12 124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 19.13 124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 19.14 Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 19.15 23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 19.16 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 19.17 124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 19.18 1; and 124A.29, subdivision 1, are repealed effective June 30, 19.19 20012004; Laws 1991, chapter 265, article 7, section 35, is 19.20 repealed. 19.21 Sec. 29. Laws 1999, chapter 241, article 1, section 68, 19.22 subdivision 2, is amended to read: 19.23 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 19.24 general and supplemental education aid: 19.25 $3,062,321,000$3,066,166,000 ..... 2000 19.26 $3,160,518,000$3,261,304,000 ..... 2001 19.27 The 2000 appropriation includes $272,186,000 for 1999 and 19.28 $2,790,135,000$2,793,980,000 for 2000. 19.29 The 2001 appropriation includes $310,015,000$310,442,000 19.30 for 2000 and $2,850,503,000$2,950,862,000 for 2001. 19.31 Sec. 30. Laws 1999, chapter 241, article 1, section 68, 19.32 subdivision 4, is amended to read: 19.33 Subd. 4. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 19.34 transportation of pupils attending post-secondary institutions 19.35 according to Minnesota Statutes, section 124D.09, or for 19.36 transportation of pupils attending nonresident districts 20.1 according to Minnesota Statutes, section 124D.03: 20.2 $102,000$70,000 ..... 2000 20.3 $102,000$70,000 ..... 2001 20.4 Any balance in the first year does not cancel but is 20.5 available in the second year. 20.6 Sec. 31. Laws 1999, chapter 241, article 1, section 68, 20.7 subdivision 5, is amended to read: 20.8 Subd. 5. [DISTRICT COOPERATION REVENUE.] For district 20.9 cooperation revenue aid: 20.10 $5,940,000$5,881,000 ..... 2000 20.11 $ 563,000$ 556,000 ..... 2001 20.12 The 2000 appropriation includes $869,000 for 1999 and 20.13 $5,071,000$5,012,000 for 2000. 20.14 The 2001 appropriation includes $563,000$556,000 for 2000 20.15 and $0 for 2001. 20.16 Sec. 32. [FISCAL YEARS 2003 TO 2007 AIRPORT RUNWAY IMPACT 20.17 PUPIL UNIT AID; RICHFIELD.] 20.18 Subdivision 1. [AIRPORT IMPACT ZONE PUPIL UNITS, 20.19 DEFINITION.] For the purposes of this section, "airport impact 20.20 zone pupil units" means the number of pupil units, according to 20.21 Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 20.22 1, in school year 1998-1999 that were attributable to the 20.23 airport impact zone, as defined in Laws 1999, chapter 243, 20.24 article 16, section 35, subdivision 1. 20.25 Subd. 2. [FISCAL YEAR 2003.] For fiscal year 2003 only, 20.26 independent school district No. 280, Richfield, is eligible for 20.27 declining pupil unit aid equal to the product of 70 percent of 20.28 the airport impact zone pupil units times the general education 20.29 formula allowance for fiscal year 2003. 20.30 Subd. 3. [FISCAL YEAR 2004.] For fiscal year 2004 only, 20.31 independent school district No. 280, Richfield, is eligible for 20.32 declining pupil unit aid equal to the product of 70 percent of 20.33 the airport impact zone pupil units times the general education 20.34 formula allowance for fiscal year 2004. 20.35 Subd. 4. [FISCAL YEAR 2005.] For fiscal year 2005 only, 20.36 independent school district No. 280, Richfield, is eligible for 21.1 declining pupil unit aid equal to the product of 52.5 percent of 21.2 the airport impact zone pupil units times the general education 21.3 formula allowance for fiscal year 2005. 21.4 Subd. 5. [FISCAL YEAR 2006.] For fiscal year 2006 only, 21.5 independent school district No. 280, Richfield, is eligible for 21.6 declining pupil unit aid equal to the product of 35 percent of 21.7 the airport impact zone pupil units times the general education 21.8 formula allowance for fiscal year 2006. 21.9 Subd. 6. [FISCAL YEAR 2007.] For fiscal year 2007 only, 21.10 independent school district No. 280, Richfield, is eligible for 21.11 declining pupil unit aid equal to the product of 17.5 percent of 21.12 the airport impact zone pupil units times the general education 21.13 formula allowance for fiscal year 2007. 21.14 EFFECTIVE DATE:This section is effective the day 21.15 following final enactment. 21.16 Sec. 33. [LEVY RECOGNITION FOR INTEGRATION LEVY 21.17 ADJUSTMENT.] 21.18 Notwithstanding Minnesota Statutes, section 123B.75, 21.19 subdivision 5, the full amount of integration levy for taxes 21.20 payable in 2001, attributable to fiscal year 2001, for school 21.21 districts receiving revenue under Minnesota Statutes, section 21.22 124D.86, subdivision 3, clause (4), shall be recognized in 21.23 fiscal year 2001. 21.24 Sec. 34. [DIRECTION TO THE DEPARTMENT.] 21.25 For the purposes of providing aid to independent school 21.26 district No. 508, St. Peter, under Laws 1999, chapter 241, 21.27 article 4, section 22, the department of children, families, and 21.28 learning shall make appropriate weighting adjustments to fiscal 21.29 year 1997 pupil units to reflect the impact of Minnesota 21.30 Statutes, section 126C.05, subdivision 5, paragraph (b), and 21.31 subdivision 6, paragraph (b). 21.32 Sec. 35. [SPARSITY CORRECTION REVENUE.] 21.33 Subdivision 1. [QUALIFICATION FOR REVENUE.] A school 21.34 district qualifies for sparsity correction revenue if it 21.35 qualifies for sparsity revenue, according to Minnesota Statutes, 21.36 section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 22.1 2001 and the amount of sparsity revenue it received in those 22.2 years is less than the amount it would have received in fiscal 22.3 year 2000 or 2001 prior to the passage of Laws 1999, chapter 22.4 241, article 1, sections 18 and 19. 22.5 Subd. 2. [FISCAL YEAR 2000 CALCULATION.] For fiscal year 22.6 2000, a school district's sparsity correction revenue equals the 22.7 difference between sparsity revenue in fiscal year 2000 22.8 calculated according to Laws 1999, chapter 241, article 1, 22.9 sections 18 and 19, and the sparsity revenue the district would 22.10 have received for fiscal year 2000 had these sections of law not 22.11 been approved. 22.12 Subd. 3. [FISCAL YEAR 2001 CALCULATION.] For fiscal year 22.13 2001, a school district's sparsity correction revenue equals .5 22.14 times the difference between sparsity revenue in fiscal year 22.15 2001 calculated according to Laws 1999, chapter 241, article 1, 22.16 sections 18 and 19, and the sparsity revenue the district would 22.17 have received for fiscal year 2001 had these sections of law not 22.18 been approved. 22.19 Sec. 36. [MARGINAL COST IMPACT AID.] 22.20 School districts that have fewer marginal cost pupil units 22.21 as a result of the changes to Minnesota Statutes, section 22.22 126C.05, subdivisions 5 and 6, in this bill are eligible for 22.23 marginal cost impact revenue. For fiscal year 2001 only, the 22.24 marginal cost impact aid for an eligible district equals the 22.25 difference between the general education and referendum revenue 22.26 the district would have received based on the marginal cost 22.27 pupil units defined in Minnesota Statutes 1999 Supplement, 22.28 section 126C.05, subdivisions 5 and 6, and the marginal cost 22.29 pupil units computed according to sections 12 and 13. 22.30 Sec. 37. [SEVERANCE LEVY; MESABI EAST.] 22.31 Independent school district No. 2711, Mesabi East, may levy 22.32 an amount up to $250,000 each year for a period of five years 22.33 for severance and early retirement incentives for licensed 22.34 employees who have retired early as a result of the district's 22.35 combination that was effective July 1, 1991. 22.36 EFFECTIVE DATE:This section is effective for taxes 23.1 payable in 2001 and later years. 23.2 Sec. 38. [METRO EQUITY AID.] 23.3 (a) For fiscal year 2001 only, a district that is located 23.4 in the metro equity district according to Minnesota Statutes, 23.5 section 126C.10, subdivision 28, and qualifies for equity 23.6 revenue under Minnesota Statutes, section 126C.10, subdivision 23.7 10, shall receive $40 times the district equity index under 23.8 Minnesota Statutes, section 126C.10, subdivision 27, times its 23.9 adjusted marginal cost pupil units. 23.10 (b) For fiscal year 2001 only, a school district that is 23.11 located in a city of the first class and is outside the 23.12 seven-county metropolitan area and has an adjusted net tax 23.13 capacity of less than $100,000,000 is eligible for metro equity 23.14 aid equal to $40 times its district equity index, under 23.15 Minnesota Statutes, section 126C.10, subdivision 27, times its 23.16 adjusted marginal cost pupil units. The district's equity index 23.17 shall be computed as if it were eligible for equity revenue 23.18 under Minnesota Statutes, section 126C.10, subdivision 24. 23.19 (c) For fiscal year 2001 only, a school district that is 23.20 located in a city with population exceeding 75,000 and is 23.21 located outside the seven-county metropolitan area but is not 23.22 eligible for metro equity aid under paragraph (b) is eligible 23.23 for metro equity aid equal to $20 times its district equity 23.24 index, under Minnesota Statutes, section 126C.10, subdivision 23.25 27, times its adjusted marginal cost pupil units. 23.26 Sec. 39. [APPROPRIATIONS.] 23.27 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 23.28 LEARNING.] The sums indicated in this section are appropriated 23.29 from the general fund to the department of children, families, 23.30 and learning for the fiscal years designated. 23.31 Subd. 2. [MARGINAL COST IMPACT AID.] For marginal cost 23.32 impact aid: 23.33 $4,025,000 ..... 2001 23.34 Subd. 3. [SPARSITY CORRECTION REVENUE.] For sparsity 23.35 correction revenue: 23.36 $1,030,000 ..... 2000 24.1 $ 515,000 ..... 2001 24.2 Subd. 4. [METRO EQUITY AID.] For metro equity aid: 24.3 $9,709,000 ..... 2001 24.4 ARTICLE 2 24.5 SPECIAL PROGRAMS 24.6 Section 1. Minnesota Statutes 1999 Supplement, section 24.7 122A.31, subdivision 1, is amended to read: 24.8 Subdivision 1. [REQUIREMENTS FOR AMERICAN SIGN 24.9 LANGUAGE/ENGLISH INTERPRETERS.] In addition to any other 24.10 requirements that a school district establishes, any person 24.11 employed to provide American sign language/English interpreting 24.12 or sign transliterating services on a full-time or part-time 24.13 basis for a school district after July 1, 20002001, must: 24.14 (1) hold current interpreter and transliterator 24.15 certificates awarded by the Registry of Interpreters for the 24.16 Deaf (RID), or the general level interpreter proficiency 24.17 certificate awarded by the National Association of the Deaf, or 24.18 a comparable state certification from the commissioner of 24.19 children, families, and learning; and 24.20 (2) satisfactorily complete an interpreter/transliterator 24.21 training program affiliated with an accredited educational 24.22 institution. 24.23 Sec. 2. Minnesota Statutes 1999 Supplement, section 24.24 122A.31, subdivision 2, is amended to read: 24.25 Subd. 2. [ORAL OR CUED SPEECH TRANSLITERATORS.] In 24.26 addition to any other requirements that a school district 24.27 establishes, any person employed to provide oral transliterating 24.28 or cued speech transliterating services on a full-time or 24.29 part-time basis for a school district after July 1, 20002001, 24.30 must hold a current applicable transliterator certificate 24.31 awarded by the national certifying association or comparable 24.32 state certification from the commissioner of children, families, 24.33 and learning. 24.34 Sec. 3. Minnesota Statutes 1999 Supplement, section 24.35 124D.68, subdivision 9, is amended to read: 24.36 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 25.1 attending an eligible program full time under subdivision 3, 25.2 paragraph (d), the department must pay 90 percent of the 25.3 district's average general education revenue less basic skills 25.4 revenue to the eligible program and ten percent of the 25.5 district's average general education revenue less basic skills 25.6 revenue to the residentcontracting district within 30 days 25.7 after the eligible program verifies enrollment using the form 25.8 provided by the department. For a pupil attending an eligible 25.9 program part time, revenue shall be reduced proportionately, 25.10 according to the amount of time the pupil attends the program, 25.11 and the payments to the eligible program and the resident25.12 contracting district shall be reduced accordingly. A pupil for 25.13 whom payment is made according to this section may not be 25.14 counted by any district for any purpose other than computation 25.15 of general education revenue. If payment is made for a pupil 25.16 under this subdivision, a district shall not reimburse a program 25.17 under section 124D.69 for the same pupil. Basic skills revenue 25.18 shall be paid according to section 126C.10, subdivision 4. 25.19 (b) The department must pay up to 100 percent of the 25.20 revenue to the eligible program if there is an agreement to that 25.21 effect between the school district and the eligible program. 25.22 (c) Notwithstanding paragraphs (a) and (b), for an eligible 25.23 program that provides chemical treatment services to students, 25.24 the department must pay 100 percent of the revenue to the 25.25 eligible program. 25.26 EFFECTIVE DATE:This section is effective the day 25.27 following final enactment. 25.28 Sec. 4. Minnesota Statutes 1999 Supplement, section 25.29 124D.84, subdivision 1, is amended to read: 25.30 Subdivision 1. [AWARDS.] The commissioner, with the advice 25.31 and counsel of the Minnesota Indian scholarship committee, may 25.32 award scholarships to any Minnesota resident student who is of 25.33 one-fourth or more Indian ancestry, who has applied for other 25.34 existing state and federal scholarship and grant programs, and 25.35 who, in the opinion of the commissioner, has the capabilities to 25.36 benefit from further education. Scholarships must be 26.1 for advanced or specialized educationaccredited degree programs 26.2 in accredited colleges or universities or for courses in 26.3 accredited or approved colleges or inbusiness, technical or 26.4 vocational schools. Scholarships shall be used to defray the 26.5 total cost of education including tuition, incidental fees, 26.6 books, supplies, transportation, other related school costs and 26.7 the cost of board and room and shall be paid directly to the 26.8 college or school concerned. The total cost of education 26.9 includes all tuition and fees for each student enrolling in a 26.10 public institution and the portion of tuition and fees for each 26.11 student enrolling in a private institution that does not exceed 26.12 the tuition and fees at a comparable public institution. Each 26.13 student shall be awarded a scholarship based on the total cost 26.14 of the student's education and a standardized need analysis. 26.15 The amount and type of each scholarship shall be determined 26.16 through the advice and counsel of the Minnesota Indian 26.17 scholarship committee. 26.18 When an Indian student satisfactorily completes the work 26.19 required by a certain college or school in a school year the 26.20 student is eligible for additional scholarships, if additional 26.21 training is necessary to reach the student's educational and 26.22 vocational objective. Scholarships may not be given to any 26.23 Indian student for more than five years of study without special 26.24 approval of the Minnesota Indian scholarship committee. 26.25 Sec. 5. Minnesota Statutes 1999 Supplement, section 26.26 124D.88, subdivision 3, is amended to read: 26.27 Subd. 3. [GRANT APPLICATION PROCESS.] (a) Any group of 26.28 school districts that meets the criteria required under 26.29 paragraph (b)(1) may apply for a magnet school grant in an 26.30 amount not to exceed $20,800,000 forthe approved costs or 26.31 expansion of a magnet school facility. 26.32 (b)(1) Any group of districts that submits an application 26.33 for a grant shall submit a proposal to the commissioner for 26.34 review and comment under section 123B.71, and the commissioner 26.35 shall prepare a review and comment on the proposed magnet school 26.36 facility, regardless of the amount of the capital expenditure 27.1 required to design, acquire, construct, remodel, improve, 27.2 furnish, or equip the facility. The commissioner must not 27.3 approve an application for a magnet school grant for any 27.4 facility unless the facility receives a favorable review and 27.5 comment under section 123B.71 and the participating districts: 27.6 (i) establish a joint powers board under section 471.59 to 27.7 represent all participating districts and govern the magnet 27.8 school facility; 27.9 (ii) design the planned magnet school facility to meet the 27.10 applicable requirements contained in Minnesota Rules, chapter 27.11 3535; 27.12 (iii) submit a statement of need, including reasons why the 27.13 magnet school will facilitate integration and improve learning; 27.14 (iv) prepare an educational plan that includes input from 27.15 both community and professional staff; and 27.16 (v) develop an education program that will improve learning 27.17 opportunities for students attending the magnet school. 27.18 (2) The districts may develop a plan that permits social 27.19 service, health, and other programs serving students and 27.20 community residents to be located within the magnet school 27.21 facility. The commissioner shall consider this plan when 27.22 preparing a review and comment on the proposed facility. 27.23 (c) When two or more districts enter into an agreement 27.24 establishing a joint powers board to govern the magnet school 27.25 facility, all member districts shall have the same powers. 27.26 (d) A joint powers board of participating school districts 27.27 established under paragraphs (b) and (c) that intends to apply 27.28 for a grant must adopt a resolution stating the costs of the 27.29 proposed project, the purpose for which the debt is to be 27.30 incurred, and an estimate of the dates when the contracts for 27.31 the proposed project will be completed. A copy of the 27.32 resolution must accompany any application for a state grant 27.33 under this section. 27.34 (e)(1) The commissioner shall examine and consider all 27.35 grant applications. If the commissioner finds that any joint 27.36 powers district is not a qualified grant applicant, the 28.1 commissioner shall promptly notify that joint powers board. The 28.2 commissioner shall make awards to no more than two qualified 28.3 applicants whose applications have been on file with the 28.4 commissioner more than 30 days. 28.5 (2) A grant award is subject to verification by the joint 28.6 powers board under paragraph (f). A grant award must not be 28.7 made until the participating districts determine the site of the 28.8 magnet school facility. If the total amount of the approved 28.9 applications exceeds the amount of grant funding that is or can 28.10 be made available, the commissioner shall allot the available 28.11 amount equally between the approved applicant districts. The 28.12 commissioner shall promptly certify to each qualified joint 28.13 powers board the amount, if any, of the grant awarded to it. 28.14 (f) Each grant must be evidenced by a contract between the 28.15 joint powers board and the state acting through the 28.16 commissioner. The contract obligates the state to pay to the 28.17 joint powers board an amount computed according to paragraph 28.18 (e)(2) and a schedule, and terms and conditions acceptable to 28.19 the commissioner of finance. 28.20 (g) Notwithstanding the provisions of section 123B.02, 28.21 subdivision 3, the joint powers and its individual members may 28.22 enter into long-term lease agreements as part of the magnet 28.23 school program. 28.24 EFFECTIVE DATE:This section is effective the day 28.25 following final enactment. 28.26 Sec. 6. Minnesota Statutes 1998, section 124D.88, is 28.27 amended by adding a subdivision to read: 28.28 Subd. 4. [START-UP COSTS.] During the first two years of a 28.29 metropolitan magnet school's operation, the school is eligible 28.30 for aid to pay for start-up costs and additional operating 28.31 costs. Start-up cost aid equals $500 times the magnet school's 28.32 pupil units served for that year. 28.33 Sec. 7. Minnesota Statutes 1998, section 124D.892, 28.34 subdivision 3, is amended to read: 28.35 Subd. 3. [ADVISORY BOARD.] The commissioner shall 28.36 establish an advisory board composed of: 29.1 (1) eightnine superintendents, each of whomeight shall be 29.2 selected by the superintendents of the school districts located 29.3 in whole or in part within each of the eight metropolitan 29.4 districts established under section 473.123, subdivision 3c, and 29.5 one superintendent of a district outside the seven-county 29.6 metropolitan area and is from a district that is considered 29.7 racially isolated or has a racially isolated school site 29.8 according to Minnesota Rules, part 3535.0110; and29.9 (2) one person each selected by the Indian affairs council, 29.10 the council on Asian-Pacific Minnesotans, the council on Black 29.11 Minnesotans, and the council on affairs of Chicano/Latino 29.12 people; and 29.13 (3) the superintendent of independent school district No. 29.14 709, Duluth. 29.15 The advisory board shall advise the office on complying 29.16 with the requirements under subdivision 1. The advisory board 29.17 may solicit comments from teachers, parents, students, and 29.18 interested community organizations and others. 29.19 Sec. 8. Minnesota Statutes 1999 Supplement, section 29.20 125A.027, subdivision 3, is amended to read: 29.21 Subd. 3. [IMPLEMENTATION TIMELINE.] By July 1, 2000, the 29.22 individual interagency intervention plan must be available and 29.23 by January 1, 2001, all governing boards of interagency early 29.24 intervention committees statewide must implement a coordinated 29.25 service system for children up to age five with disabilities 29.26 consistent with the requirements of this section and section 29.27 125A.023 and the evaluation results from the demonstration 29.28 projects under section 125A.023, subdivision 5. Children with 29.29 disabilities up to the age of 21 shall be eligible for 29.30 coordinated services and their eligibility to receive such 29.31 services under this section shall be phased in over a four-year 29.32 period as follows: 29.33 (1) July 1, 2001, children up to age nine become eligible; 29.34 (2) July 1, 2002, children up to age 14 become eligible; 29.35 and 29.36 (3) July 1, 2003, children up to age 21 become eligible. 30.1 Sec. 9. Minnesota Statutes 1999 Supplement, section 30.2 125A.51, is amended to read: 30.3 125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 30.4 EDUCATION AND TRANSPORTATION.] 30.5 The responsibility for providing instruction and 30.6 transportation for a pupil without a disability who has a 30.7 short-term or temporary physical or emotional illness or 30.8 disability, as determined by the standards of the commissioner, 30.9 and who is temporarily placed for care and treatment for that 30.10 illness or disability, must be determined as provided in this 30.11 section. 30.12 (a) The school district of residence of the pupil is the 30.13 district in which the pupil's parent or guardian resides. 30.14 (b) When parental rights have been terminated by court 30.15 order, the legal residence of a child placed in a residential or 30.16 foster facility for care and treatment is the district in which 30.17 the child resides when parental rights have been terminated. 30.18 (c) Before the placement of a pupil for care and treatment, 30.19 the district of residence must be notified and provided an 30.20 opportunity to participate in the placement decision. When an 30.21 immediate emergency placement is necessary and time does not 30.22 permit resident district participation in the placement 30.23 decision, the district in which the pupil is temporarily placed, 30.24 if different from the district of residence, must notify the 30.25 district of residence of the emergency placement within 15 days 30.26 of the placement. 30.27 (d) When a pupil without a disability is temporarily placed 30.28 for care and treatment in a day program and the pupil continues 30.29 to live within the district of residence during the care and 30.30 treatment, the district of residence must provide instruction 30.31 and necessary transportation to and from the treatment facility 30.32 for the pupil. Transportation shall only be provided by the 30.33 district during regular operating hours of the district. The 30.34 district may provide the instruction at a school within the 30.35 district of residence, at the pupil's residence, or in the case 30.36 of a placement outside of the resident district, in the district 31.1 in which the day treatment program is located by paying tuition 31.2 to that district. The district of placement may contract with a 31.3 facility to provide instruction by teachers licensed by the 31.4 state board of teaching. 31.5 (e) When a pupil without a disability is temporarily placed 31.6 in a residential program for care and treatment, the district in 31.7 which the pupil is placed must provide instruction for the pupil 31.8 and necessary transportation while the pupil is receiving 31.9 instruction, and in the case of a placement outside of the 31.10 district of residence, the nonresident district must bill the 31.11 district of residence for the actual cost of providing the 31.12 instruction for the regular school year and for summer school, 31.13 excluding transportation costs. When a pupil without a 31.14 disability is temporarily placed in a residential program 31.15 outside the district of residence, the administrator of the 31.16 court placing the pupil must send timely written notice of the 31.17 placement to the district of residence. The district of 31.18 placement may contract with a residential facility to provide 31.19 instruction by teachers licensed by the state board of teaching. 31.20 For purposes of this section, the state correctional facilities 31.21 operated on a fee-for-service basis are considered to be 31.22 residential programs for care and treatment. 31.23 (f) The district of residence must include the pupil in its 31.24 residence count of pupil units and pay tuition as provided in 31.25 section 123A.488 to the district providing the instruction. 31.26 Transportation costs must be paid by the district providing the 31.27 transportation and the state must pay transportation aid to that 31.28 district. For purposes of computing state transportation aid, 31.29 pupils governed by this subdivision must be included in the 31.30 disabled transportation category. 31.31 Sec. 10. Minnesota Statutes 1999 Supplement, section 31.32 125A.76, subdivision 1, is amended to read: 31.33 Subdivision 1. [DEFINITIONS.] For the purposes of this 31.34 section, the definitions in this subdivision apply. 31.35 (a) "Base year" for fiscal year 1998 and later fiscal years 31.36 means the second fiscal year preceding the fiscal year for which 32.1 aid will be paid. 32.2 (b) "Basic revenue" has the meaning given it in section 32.3 126C.10, subdivision 2. For the purposes of computing basic 32.4 revenue pursuant to this section, each child with a disability 32.5 shall be counted as prescribed in section 126C.05, subdivision 1. 32.6 (c) "Essential personnel" means teachers, related services, 32.7 and support services staff providing direct services to students. 32.8 (d) "Average daily membership" has the meaning given it in 32.9 section 126C.05. 32.10 (e) "Program growth factor" means 1.0121.123 for fiscal 32.11 year 2002, and 1.062 for fiscal year 2003 and later. 32.12 Sec. 11. Minnesota Statutes 1999 Supplement, section 32.13 125A.76, subdivision 2, is amended to read: 32.14 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 32.15 education base revenue equals the sum of the following amounts 32.16 computed using base year data: 32.17 (1) 68 percent of the salary of each essential person 32.18 employed in the district's program for children with a 32.19 disability during the fiscal year, not including the share of 32.20 salaries for personnel providing health-related services counted 32.21 in clause (8), whether the person is employed by one or more 32.22 districts or a Minnesota correctional facility operating on a 32.23 fee-for-service basis; 32.24 (2) for the Minnesota state academy for the deaf or the 32.25 Minnesota state academy for the blind, 68 percent of the salary 32.26 of each instructional aide assigned to a child attending the 32.27 academy, if that aide is required by the child's individual 32.28 education plan; 32.29 (3) for special instruction and services provided to any 32.30 pupil by contracting with public, private, or voluntary agencies 32.31 other than school districts, in place of special instruction and 32.32 services provided by the district, 52 percent of the difference 32.33 between the amount of the contract and the basic revenue of the 32.34 district for that pupil for the fraction of the school day the 32.35 pupil receives services under the contract; 32.36 (4) for special instruction and services provided to any 33.1 pupil by contracting for services with public, private, or 33.2 voluntary agencies other than school districts, that are 33.3 supplementary to a full educational program provided by the 33.4 school district, 52 percent of the amount of the contract for 33.5 that pupil; 33.6 (5) for supplies and equipment purchased or rented for use 33.7 in the instruction of children with a disability, not including 33.8 the portion of the expenses for supplies and equipment used to 33.9 provide health-related services counted in clause (8), an amount 33.10 equal to 47 percent of the sum actually expended by the 33.11 district, or a Minnesota correctional facility operating on a 33.12 fee-for-service basis, but not to exceed an average of $47 in 33.13 any one school year for each child with a disability receiving 33.14 instruction; 33.15 (6) for fiscal years 1997 and later, special education base 33.16 revenue shall include amounts under clauses (1) to (5) for 33.17 special education summer programs provided during the base year 33.18 for that fiscal year; and 33.19 (7) for fiscal years 1999 and later, the cost of providing 33.20 transportation services for children with disabilities under 33.21 section 123B.92, subdivision 1, paragraph (b), clause (4) ; and33.22 (8) for fiscal years 2001 and later, the cost of salaries,33.23 supplies and equipment, and other related costs actually33.24 expended by the district for the nonfederal share of medical33.25 assistance services according to section 256B.0625, subdivision33.26 26. 33.27 The department shall establish procedures through the 33.28 Uniform Financial Accounting and Reporting System to identify 33.29 and track all revenues generated from third-party billings as 33.30 special education revenue at the school district level; include 33.31 revenue generated from third-party billings as special education 33.32 revenue in the annual cross subsidy report; and exclude 33.33 third-party revenue from calculation of excess cost aid to the 33.34 districts. 33.35 (b) If requested by a school district operating a special 33.36 education program during the base year for less than the full 34.1 fiscal year, or a school district in which is located a 34.2 Minnesota correctional facility operating on a fee-for-service 34.3 basis for less than the full fiscal year, the commissioner may 34.4 adjust the base revenue to reflect the expenditures that would 34.5 have occurred during the base year had the program been operated 34.6 for the full fiscal year. 34.7 (c) Notwithstanding paragraphs (a) and (b), the portion of 34.8 a school district's base revenue attributable to a Minnesota 34.9 correctional facility operating on a fee-for-service basis 34.10 during the facility's first year of operating on a 34.11 fee-for-service basis shall be computed using current year data. 34.12 Sec. 12. Minnesota Statutes 1999 Supplement, section 34.13 125A.79, subdivision 1, is amended to read: 34.14 Subdivision 1. [DEFINITIONS.] For the purposes of this 34.15 section, the definitions in this subdivision apply. 34.16 (a) "Unreimbursed special education cost" means the sum of 34.17 the following: 34.18 (1) expenditures for teachers' salaries, contracted 34.19 services, supplies, equipment, and transportation services 34.20 eligible for revenue under section 125A.76; plus 34.21 (2) expenditures for tuition bills received under sections 34.22 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 34.23 under sections 125A.76, subdivision 2, and 124.3202, subdivision 34.24 1; minus 34.25 (3) revenue for teachers' salaries, contracted services, 34.26 supplies, and equipment under sections 124.3202 and 124A.76; 34.27 minus 34.28 (4) tuition receipts under sections 125A.03 to 125A.24 and 34.29 125A.65 for services eligible for revenue under sections 34.30 124.3202, subdivision 1, and 124A.76, subdivision 2. 34.31 (b) "General revenue" means for fiscal year 1996, the sum 34.32 of the general education revenue according to section 126C.10, 34.33 subdivision 1, as adjusted according to section 127A.47, 34.34 subdivision 7, plus the total referendum revenue according to 34.35 section 126C.17, subdivision 4. For fiscal years 1997 and 34.36 later, "general revenue" means the sum of the general education 35.1 revenue according to section 126C.10, subdivision 1, as adjusted 35.2 according to section 127A.47, subdivisions 7 and 8, plus the 35.3 total referendum revenue minus transportation sparsity revenue 35.4 minus total operating capital revenue. For fiscal year 2001 35.5 only, "general revenue" means the sum of the general education 35.6 revenue according to section 126C.10, subdivision 1, as adjusted 35.7 according to section 127A.47, subdivisions 7 and 8, plus the 35.8 total referendum revenue minus transportation sparsity revenue 35.9 minus total operating capital revenue minus training and 35.10 experience adjustment revenue. 35.11 (c) "Average daily membership" has the meaning given it in 35.12 section 126C.05. 35.13 (d) "Program growth factor" means 1.044 for fiscal year 35.14 2002 and 1.02 for fiscal year 2003 and later. 35.15 Sec. 13. Minnesota Statutes 1999 Supplement, section 35.16 125A.79, subdivision 2, is amended to read: 35.17 Subd. 2. [EXCESS COST AID, FISCAL YEARS 2000 AND 2001.] 35.18 For fiscal years 2000 and 2001, a district's special education 35.19 excess cost aid equals the greatest of: 35.20 (a) 75 percent of the difference between (1) the district's 35.21 unreimbursed special education cost and (2) 4.44.37 percent of 35.22 the district's general revenue; 35.23 (b) 70 percent of the difference between (1) the increase 35.24 in the district's unreimbursed special education cost between 35.25 the base year as defined in section 125A.76, subdivision 1, and 35.26 the current year and (2) 1.6 percent of the district's general 35.27 revenue; or 35.28 (c) zero. 35.29 Sec. 14. Minnesota Statutes 1999 Supplement, section 35.30 125A.79, subdivision 5, is amended to read: 35.31 Subd. 5. [INITIAL EXCESS COST AID.] For fiscal years 2002 35.32 and later, a district's initial excess cost aid equals the 35.33 greatest of: 35.34 (1) 75 percent of the difference between (i) the district's 35.35 unreimbursed special education cost and (ii) 4.44.7 percent of 35.36 the district's general revenue; 36.1 (2) 70 percent of the difference between (i) the increase 36.2 in the district's unreimbursed special education cost between 36.3 the base year as defined in section 125A.76, subdivision 1, and 36.4 the current year and (ii) 1.6 percent of the district's general 36.5 revenue; or 36.6 (3) zero. 36.7 Sec. 15. Minnesota Statutes 1999 Supplement, section 36.8 126C.44, is amended to read: 36.9 126C.44 [CRIME-RELATED COSTS LEVY.] 36.10 Each district may make a levy on all taxable property 36.11 located within the district for the purposes specified in this 36.12 subdivisionsection. The maximum amount which may be levied for 36.13 all costs under this subdivisionsection shall be equal to 36.14 $1.50$14.75 multiplied by the population of the school district36.15 district's adjusted marginal cost pupil units for the school 36.16 year. For purposes of this subdivision, "population" of the36.17 school district means the same as contained in section 2184.108.40.206 The proceeds of the levy must be used for directly funding the 36.19 following purposes or for reimbursing the cities and counties 36.20 who contract with the district for the following purposes: (1) 36.21 to pay the costs incurred for the salaries, benefits, and 36.22 transportation costs of peace officers and sheriffs for liaison 36.23 in services in the district's middle and secondaryschools; (2) 36.24 to pay the costs for a drug abuse prevention program as defined 36.25 in Minnesota Statutes 1991 Supplement, section 609.101, 36.26 subdivision 3, paragraph (f), in the elementary schools; (3) to 36.27 pay the costs for a gang resistance education training 36.28 curriculum in the middledistrict's schools; or(4) to pay the 36.29 costs for security in the districts' schools and on school 36.30 property; or (5) to pay the costs for other crime prevention 36.31 and, drug abuse, student and staff safety, and violence 36.32 prevention measures taken by the school district. The district 36.33 must initially attempt to contract for services to be provided 36.34 by peace officers or sheriffs with the police department of each 36.35 city or the sheriff's department of the county within the 36.36 district containing the school receiving the services. If a 37.1 local police department or a county sheriff's department does 37.2 not wish to provide the necessary services, the district may 37.3 contract for these services with any other police or sheriff's 37.4 department located entirely or partially within the school 37.5 district's boundaries. The levy authorized under 37.6 this subdivisionsection is not included in determining the 37.7 school district's levy limitations. 37.8 EFFECTIVE DATE:This section is effective July 1, 2000, 37.9 for levies for taxes payable in 2001 and later. 37.10 Sec. 16. Minnesota Statutes 1999 Supplement, section 37.11 127A.42, subdivision 3, is amended to read: 37.12 Subd. 3. [ASSURANCE OF COMPLIANCE.] (a) After consultation 37.13 with the commissioner of human rights, the commissioner of 37.14 children, families, and learning shall adopt rules in 37.15 conformance with chapter 14. The rules must direct districts to 37.16 file with the commissioner of children, families, and learning 37.17 assurances of compliance with state and federal laws prohibiting 37.18 discrimination and specify the information required to be37.19 submitted in support of the assurances. The commissioner shall37.20 provide copies of the assurances and the supportive information37.21 to the commissioner of human rightsThe assurances must be 37.22 provided in a form and manner prescribed by the commissioner. 37.23 (b) If , after reviewing the assurances and the supportive37.24 informationit appears that one or more violations of the 37.25 Minnesota Human Rights Act are occurring in thea district, the 37.26 commissioner of human rights shall notify the commissioner of 37.27 the violations, and the commissioner of children, families, and 37.28 learning may then proceed pursuant to subdivision 4. 37.29 Sec. 17. Laws 1999, chapter 241, article 2, section 60, 37.30 subdivision 7, is amended to read: 37.31 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 37.32 school aid according to Minnesota Statutes, section 124D.83: 37.33 $2,706,000$1,671,000 ..... 2000 37.34 $2,790,000$1,882,000 ..... 2001 37.35 The 2000 appropriation includes $283,000 for 1999 and 37.36 $2,423,000$1,388,000 for 2000. 38.1 The 2001 appropriation includes $269,000$154,000 for 2000 38.2 and $2,521,000$1,728,000 for 2001. 38.3 Sec. 18. Laws 1999, chapter 241, article 2, section 60, 38.4 subdivision 9, is amended to read: 38.5 Subd. 9. [MAGNET SCHOOL GRANTS.] For magnet school and 38.6 program grants under Laws 1994, chapter 647, article 8, section 38.7 38: 38.8 $1,750,000 ..... 2000 38.9 $1,750,000 ..... 2001 38.10 These amounts may be used for magnet school programs 38.11 according to Minnesota Statutes, section 124D.88. The budget 38.12 base for this program for fiscal year 2003 and each year 38.13 thereafter is $1,050,000. 38.14 Sec. 19. Laws 1999, chapter 241, article 2, section 60, 38.15 subdivision 12, is amended to read: 38.16 Subd. 12. [AID FOR CHILDREN WITH A DISABILITY.] For aid 38.17 according to Minnesota Statutes, section 125A.75, subdivision 3, 38.18 for children with a disability placed in residential facilities 38.19 within the district boundaries for whom no district of residence 38.20 can be determined: 38.21 $ 443,000$ 433,000 ..... 2000 38.22 $1,064,000$4,263,000 ..... 2001 38.23 If the appropriation for either year is insufficient, the 38.24 appropriation for the other year is available. Any balance in 38.25 the first year does not cancel but is available in the second 38.26 year. 38.27 Sec. 20. Laws 1999, chapter 241, article 2, section 60, 38.28 subdivision 13, is amended to read: 38.29 Subd. 13. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 38.30 teacher travel for home-based services according to Minnesota 38.31 Statutes, section 125A.75, subdivision 1: 38.32 $133,000$125,000 ..... 2000 38.33 $139,000$130,000 ..... 2001 38.34 The 2000 appropriation includes $11,000 for 1999 and 38.35 $122,000$114,000 for 2000. 38.36 The 2001 appropriation includes $13,000 for 2000 and 39.1 $126,000$117,000 for 2001. 39.2 Sec. 21. Laws 1999, chapter 241, article 2, section 60, 39.3 subdivision 14, is amended to read: 39.4 Subd. 14. [SPECIAL EDUCATION EXCESS COST AID.] For excess 39.5 cost aid: 39.6 $60,498,000$66,032,000 ..... 2000 39.7 $79,405,000$89,072,000 ..... 2001 39.8 The 2000 appropriation includes $4,693,000 for 1999 and 39.9 $55,805,000$61,339,000 for 2000. 39.10 The 2001 appropriation includes $6,200,000$6,815,000 for 39.11 2000 and $73,205,000$82,257,000 for 2001. 39.12 Sec. 22. Laws 1999, chapter 241, article 2, section 60, 39.13 subdivision 17, is amended to read: 39.14 Subd. 17. [INTEGRATION AID.] For integration aid: 39.15 $37,182,000$37,610,000 ..... 2000 39.16 $43,787,000$55,828,000 ..... 2001 39.17 The 2000 appropriation includes $2,902,000 for 1999 and 39.18 $34,280,000$34,708,000 for 2000. 39.19 The 2001 appropriation includes $3,809,000$3,856,000 for 39.20 2000 and $39,978,000$51,972,000 for 2001. 39.21 Sec. 23. Laws 1999, chapter 241, article 2, section 60, 39.22 subdivision 19, is amended to read: 39.23 Subd. 19. [INTERDISTRICT DESEGREGATION OR INTEGRATION 39.24 TRANSPORTATION AID.] (a) For interdistrict desegregation or 39.25 integration transportation aid under Minnesota Statutes, section 39.26 124D.87: 39.27 $970,000 ..... 2000 39.28 $970,000 ..... 2001 39.29 Any balance in the first year does not cancel but is 39.30 available in the second year. 39.31 (b) The budget base for this program for fiscal year 2002 39.32 is $500,000. This amount may be spent for interdistrict 39.33 desegregation or integration transportation aid. For fiscal 39.34 year 2003 and later, the budget base for this program is the 39.35 forecasted cost of fully reimbursing districts according to 39.36 Minnesota Statutes, section 124D.87. 40.1 Sec. 24. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 40.2 For fiscal year 2000, a school district shall receive an 40.3 amount of revenue equal to $15 times the district's adjusted 40.4 marginal cost pupil units. For fiscal year 2001, a school 40.5 district shall receive an amount of revenue equal to $35 times 40.6 the district's adjusted marginal cost pupil units. Special 40.7 education cross-subsidy revenue must be used to pay for a 40.8 district's unfunded special education costs that are currently 40.9 cross-subsidized by a district's general education revenue. 40.10 Sec. 25. [STUDY.] 40.11 The commissioner of children, families, and learning shall 40.12 contract with a qualified expert to determine and report the 40.13 number and overall incidence rate of Minnesota school children, 40.14 by district, age, grade level, gender, and race, diagnosed with 40.15 attention deficit disorder (ADD) or attention deficit 40.16 hyperactivity disorder (ADHD) currently taking amphetamine 40.17 prescription drugs such as Ritalin. In preparing the report, 40.18 the contractor also must determine the number and overall 40.19 incidence rate of students not identified with ADD or ADHD 40.20 currently taking amphetamine prescription drugs such as 40.21 Ritalin. The commissioner, the commissioner's designee, and 40.22 school districts must comply with Minnesota Statutes, chapter 40.23 13, when gathering data for this report. The commissioner must 40.24 submit the report and any recommendations to the education 40.25 committees of the legislature by February 15, 2001. 40.26 Sec. 26. [FEDERAL MANDATE.] 40.27 The legislature of the state of Minnesota strongly supports 40.28 governor Jesse Ventura's efforts to have Congress speedily enact 40.29 legislation to fund at least 40 percent of the cost of special 40.30 education services provided as a result of the federal mandate 40.31 to provide a free and appropriate public education for students 40.32 with disabilities. Current federal requirements impede the 40.33 ability of the state and school districts to adequately fund 40.34 kindergarten through grade 12 education for all students. 40.35 Sec. 27. [APPROPRIATIONS.] 40.36 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 41.1 LEARNING.] The sums indicated in this section are appropriated 41.2 from the general fund to the department of children, families, 41.3 and learning for the fiscal years designated. 41.4 Subd. 2. [LITTLE FALLS; REVENUE REIMBURSEMENT.] For 41.5 independent school district No. 482, Little Falls, for partial 41.6 reimbursement of revenue returned to the state as a result of a 41.7 finding that the district had over-counted kindergarten pupils 41.8 in earlier years: 41.9 $300,000 ..... 2000 41.10 Revenue appropriated to the district under this subdivision 41.11 must be used for all-day kindergarten services and must be 41.12 matched by fees collected from parents by the district for 41.13 providing all-day kindergarten services. 41.14 Subd. 3. [NORTHLAND LEARNING CENTER.] For a grant to the 41.15 Northland joint powers board for start-up costs associated with 41.16 the delay of special education funding for the Northland 41.17 learning center: 41.18 $200,000 ..... 2001 41.19 Subd. 4. [MAGNET SCHOOL START-UP AID.] For magnet school 41.20 start-up aid under Minnesota Statutes, section 124D.88: 41.21 $250,000 ..... 2001 41.22 Subd. 5. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 41.23 special education cross-subsidy revenue: 41.24 $14,537,000 ..... 2000 41.25 $33,829,000 ..... 2001 41.26 Subd. 6. [STUDY.] For a report on the number and overall 41.27 incident rate of Minnesota school children diagnosed with 41.28 attention deficit disorder or attention deficit hyperactivity 41.29 disorder: 41.30 $40,000 ..... 2001 41.31 Subd. 7. [GRANT TO INDEPENDENT SCHOOL DISTRICT NO. 707, 41.32 NETT LAKE.] For a grant to independent school district No. 707, 41.33 Nett Lake, to pay obligations of the school district for 41.34 unemployment compensation. The appropriation must be paid to 41.35 the appropriate state agency for such purposes in the name of 41.36 the school district: 42.1 $ 30,000 ..... 2001 42.2 Sec. 28. [REPEALER.] 42.3 Minnesota Rules, part 3535.9920, is repealed. 42.4 ARTICLE 3 42.5 EMPLOYMENT AND OTHER TRANSITIONS 42.6 Section 1. Minnesota Statutes 1998, section 124D.44, is 42.7 amended to read: 42.8 124D.44 [MATCH REQUIREMENTS.] 42.9 Youth works grant funds must be used for the living 42.10 allowance, cost of employer taxes under sections 3111 and 3301 42.11 of the Internal Revenue Code of 1986, workers' compensation 42.12 coverage, andhealth benefits for each program participant, and 42.13 administrative expenses, which must not exceed five percent of 42.14 total program costs. Youthworks grant funds may also be used to 42.15 supplement applicant resources to fund postservice benefits for 42.16 program participants. Applicant resources, from sources and in 42.17 a form determined by the commission and, beginning January 1,42.18 1997, the council, must be used to provide for all other program 42.19 costs, including the portion of the applicant's obligation for 42.20 postservice benefits that is not covered by state or federal 42.21 grant funds and such costs as supplies, materials, 42.22 transportation, and salaries and benefits of those staff 42.23 directly involved in the operation, internal monitoring, and 42.24 evaluation of the program. Administrative expenses must not42.25 exceed five percent of total program costs.42.26 Sec. 2. Minnesota Statutes 1998, section 124D.454, 42.27 subdivision 4, is amended to read: 42.28 Subd. 4. [ADJUSTED SECONDARY42.29 VOCATIONAL-DISABLEDTRANSITION-DISABLED BASE REVENUE.] For 42.30 fiscal year 1996 and later, a district's adjusted secondary42.31 vocational-disabledtransition-disabled base revenue equals the 42.32 district's secondary vocational-disabledtransition-disabled 42.33 base revenue times the ratio of the district's average daily 42.34 membership for the current school year to the district's average 42.35 daily membership for the base year. 42.36 Sec. 3. Minnesota Statutes 1998, section 124D.454, 43.1 subdivision 6, is amended to read: 43.2 Subd. 6. [SCHOOL DISTRICT SECONDARY43.3 VOCATIONAL-DISABLEDTRANSITION-DISABLED REVENUE.] (a) A school 43.4 district's secondary vocational-disabledtransition-disabled 43.5 revenue for fiscal year 1996 and later equals the state 43.6 total secondary vocational-disabledtransition-disabled revenue, 43.7 minus the amount determined under paragraph (b), times the ratio 43.8 of the district's adjusted secondary43.9 vocational-disabledtransition-disabled base revenue to the 43.10 state total adjusted secondary43.11 vocational-disabledtransition-disabled base revenue. 43.12 (b) Notwithstanding paragraph (a), if the secondary43.13 vocational-disabledtransition-disabled base revenue for a 43.14 district equals zero and no district residents were enrolled 43.15 in secondary vocational-disabledtransition-disabled programs 43.16 during the base year, the secondary43.17 vocational-disabledtransition-disabled revenue equals the 43.18 amount computed according to subdivision 3 using current year 43.19 data. 43.20 Sec. 4. Minnesota Statutes 1998, section 124D.454, 43.21 subdivision 7, is amended to read: 43.22 Subd. 7. [SCHOOL DISTRICT SECONDARY43.23 VOCATIONAL-DISABLEDTRANSITION-DISABLED AID.] A school 43.24 district's secondary vocational-disabledtransition-disabled aid 43.25 for fiscal year 1996 and later equals the district's secondary43.26 vocational-disabledtransition-disabled revenue times the aid 43.27 percentage factor for that year. 43.28 Sec. 5. Laws 1997, chapter 157, section 71, as amended by 43.29 Laws 1998, chapter 398, article 3, section 11, is amended to 43.30 read: 43.31 Sec. 71. [SCHOOL BANK PILOT PROJECTBANKS.] 43.32 (a) A school bank sponsored by independent school district 43.33 No. 31, Bemidji, independent school district No. 316, 43.34 Greenway-Coleraine, independent school district No. 2170, 43.35 Staples-Motley, or by independent school district No. 508, St. 43.36 Peter, that meets all requirements of paragraph (b) is not 44.1 subject to Minnesota Statutes, section 47.03, subdivision 1, or 44.2 to any other statute or rule that regulates banks, other 44.3 financial institutions, or currency exchanges. 44.4 (b) To qualify under paragraph (a), the school bank must: 44.5 (1) be operated as part of a high school educational 44.6 program and under guidelines adopted by the school board; 44.7 (2) be advised on a regular basis by one or more 44.8 state-chartered or federally-charteredfederally chartered 44.9 financial institutions, but not owned or operated by any 44.10 financial institution; 44.11 (3) be located on school premises and have as customers 44.12 only students enrolled in, or employees of, the school in which 44.13 it is located; and 44.14 (4) have a written commitment from the school board, 44.15 guaranteeing reimbursement of any depositor's funds lost due to 44.16 insolvency of the school bank. 44.17 (c) Funds of a school bank that meets the requirements of 44.18 this section are not school district or other public funds for 44.19 purposes of any state law governing the use or investment of 44.20 school district or other public funds. 44.21 (d) The school district shall annually file with the 44.22 commissioner of commerce a report, prepared by the students and 44.23 teachers involved, summarizing the operation of the school bank. 44.24 (e) This section expires June 30, 2000. The commissioner44.25 of commerce shall, no later than December 15, 1999, provide a44.26 written report to the legislature regarding this pilot project44.27 and any recommended legislation regarding school banks.44.28 EFFECTIVE DATE:This section is effective the day 44.29 following final enactment. 44.30 Sec. 6. Laws 1999, chapter 241, article 3, section 3, 44.31 subdivision 2, is amended to read: 44.32 Subd. 2. [SECONDARY VOCATIONAL EDUCATION AID.] For 44.33 secondary vocational education aid according to Minnesota 44.34 Statutes, section 124D.453: 44.35 $11,335,000$12,413,000 ..... 2000 44.36 $1,130,000$ 1,250,000 ..... 2001 45.1 The 2000 appropriation includes $1,159,000 for 1999 and 45.2 $10,176,000$11,254,000 for 2000. The 2001 appropriation 45.3 includes $1,130,000$1,250,000 for 2000. 45.4 EFFECTIVE DATE:This section is effective the day 45.5 following final enactment. 45.6 Sec. 7. Laws 1999, chapter 241, article 3, section 3, 45.7 subdivision 4, is amended to read: 45.8 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 45.9 GRANTS.] For education and employment transitions programming 45.10 under Minnesota Statutes, section 124D.46: 45.11 $3,225,000 ..... 2000 45.12 $3,225,000 ..... 2001 45.13 $200,000 each year is for the development and 45.14 implementation of the ISEEK Internet-based education and 45.15 employment information system. 45.16 $1,000,000 each year is for an employer rebate program for 45.17 qualifying employers who offer youth internships to educators. 45.18 $500,000 each year is for youth entrepreneurship grants. 45.19 $750,000 each year is for youth apprenticeship grants. 45.20 $300,000 each year is for grants to programs in cities of 45.21 the first class to expand the number of at-risk students 45.22 participating in school-to-work projects. 45.23 $350,000 each year is for agricultural school-to-work 45.24 grants. 45.25 $125,000 each year is to conduct a high school follow-up 45.26 survey to include first, third, and sixth year graduates of 45.27 Minnesota schools. 45.28 Any balance in the first year does not cancel but is 45.29 available in the second year. 45.30 ARTICLE 4 45.31 FACILITIES AND TECHNOLOGY 45.32 Section 1. Minnesota Statutes 1998, section 123B.51, 45.33 subdivision 6, is amended to read: 45.34 Subd. 6. [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 45.35 the sale or exchange of school buildings or real property of the 45.36 district must be used as provided in this subdivision. 46.1 (b) In districts with outstanding bonds, the proceeds of 46.2 the sale or exchange shall first be deposited in the debt 46.3 retirement fund of the district in an amount sufficient to meet 46.4 when due that percentage of the principal and interest payments 46.5 for outstanding bonds which is ascribable to the payment of 46.6 expenses necessary and incidental to the construction or 46.7 purchase of the particular building or property which is sold. 46.8 (c) After satisfying the requirements of paragraph (b), a 46.9 district with outstanding bonds may deposit proceeds of the sale 46.10 or exchange in its capital expenditure fundgeneral fund 46.11 reserved for operating capital account if the amount deposited 46.12 is used for the following: 46.13 (1) for expenditures for the cleanup of polychlorinated 46.14 biphenyls, if the method for cleanup is approved by the 46.15 department; 46.16 (2) for capital expenditures for the betterment, as defined 46.17 in section 475.51, subdivision 8, of district-owned school 46.18 buildings; or 46.19 (3) to replace the building or property sold. 46.20 (d) In a district with outstanding bonds, the amount of the 46.21 proceeds of the sale or exchange remaining after the application 46.22 of paragraphs (b) and (c), which is sufficient to meet when due 46.23 that percentage of the principal and interest payments for the 46.24 district's outstanding bonds which is not governed by paragraph 46.25 (b), shall be deposited in the debt retirement fund. 46.26 (e) Any proceeds of the sale or exchange remaining in 46.27 districts with outstanding bonds after the application of 46.28 paragraphs (b), (c), and (d), and all proceeds of the sale or 46.29 exchange in districts without outstanding bonds shall be 46.30 deposited in the capital expendituregeneral fund reserved for 46.31 operating capital account of the district. 46.32 (f) Notwithstanding paragraphs (c) and (d), a district with 46.33 outstanding bonds may deposit in its capital expendituregeneral 46.34 fund reserved for operating capital account and use for any 46.35 lawful operating capital expenditure without the reduction of 46.36 any levy limitation the same percentage of the proceeds of the 47.1 sale or exchange of a building or property as the percentage of 47.2 the initial cost of purchasing or constructing the building or 47.3 property which was paid using revenue from the capital47.4 expendituregeneral fund reserved for operating capital account. 47.5 Sec. 2. Minnesota Statutes 1998, section 123B.53, as 47.6 amended by Laws 1999, chapter 241, is amended to read: 47.7 123B.53 [ DEBT SERVICEFACILITIES EQUALIZATION PROGRAM.] 47.8 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 47.9 section, the eligible debt servicefacilities revenue of a 47.10 district is defined as follows: 47.11 (1) the amount needed to produce between five and six 47.12 percent in excess of the amount needed to meet when due the 47.13 principal and interest payments on the obligations of the 47.14 district for eligible projects according to subdivision 2, 47.15 including the amounts necessary for repayment of energy loans 47.16 according to section 216C.37 or sections 298.292 to 298.29847.17 126C.40, subdivision 5, debt service loans and capital loans, 47.18 lease purchase payments under section 126C.40, subdivision 247.19 subdivisions 2 and 6; Laws 1995, First Special Session chapter 47.20 3, article 5, section 19; and Laws 1997, First Special Session 47.21 chapter 4, article 4, section 30, alternative facilities levies47.22 revenue under section 123B.59, subdivision 5; health and safety 47.23 revenue, under section 123B.57, subdivision 3; handicapped 47.24 access and fire safety revenue, under section 123B.58, 47.25 subdivision 3; building construction and lease revenue, under 47.26 section 123B.63, subdivision 3; building lease revenue, under 47.27 section 126C.40, subdivision 1; and cooperative building repair 47.28 revenue, under section 126C.40, subdivision 3, minus 47.29 (2) the amount of debt service excess levy reduction for 47.30 that school year calculated according to the procedure 47.31 established by the commissioner. 47.32 (b) The obligations in this paragraph are excluded from 47.33 eligible debt servicefacilities revenue: 47.34 (1) obligations under section 123B.61; 47.35 (2) the part of debt service principal and interest paid 47.36 from the taconite environmental protection fund or northeast 48.1 Minnesota economic protection trust; 48.2 (3) obligations issued under Laws 1991, chapter 265, 48.3 article 5, section 18, as amended by Laws 1992, chapter 499, 48.4 article 5, section 24; and 48.5 (4) obligations under section 123B.62. 48.6 (c) For purposes of this section, if a preexisting school 48.7 district reorganized under sections 123A.35 to 123A.43, 123A.46, 48.8 and 123A.48 is solely responsible for retirement of the 48.9 preexisting district's bonded indebtedness, capital loans or 48.10 debt service loans, debt servicefacilities equalization aid 48.11 must be computed separately for each of the preexisting 48.12 districts. 48.13 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 48.14 district's debt service levyfacilities revenue qualify for debt48.15 servicefacilities equalization: 48.16 (1) debt service for repayment of principal and interest on 48.17 bonds issued before July 2, 1992; 48.18 (2) debt service for bonds refinanced after July 1, 1992, 48.19 if the bond schedule has been approved by the commissioner and, 48.20 if necessary, adjusted to reflect a 20-year maturity schedule; 48.21 and48.22 (3) debt service for bonds issued after July 1, 1992, for 48.23 construction projects that have received a positive review and 48.24 comment according to section 123B.71, if the commissioner has 48.25 determined that the district has met the criteria under section 48.26 126C.69, subdivision 3, except section 126C.69, subdivision 3, 48.27 paragraph (a), clause (2), and if the bond schedule has been 48.28 approved by the commissioner and, if necessary, adjusted to 48.29 reflect a 20-year maturity schedule; 48.30 (4) alternative facilities revenue, according to section 48.31 123B.59, subdivision 5; 48.32 (5) health and safety revenue, according to section 48.33 123B.57, subdivision 3; 48.34 (6) handicapped access and fire safety revenue, according 48.35 to section 123B.58, subdivision 3; 48.36 (7) building construction and lease revenue, according to 49.1 section 123B.63, subdivision 3; 49.2 (8) building lease revenue, according to section 126C.40, 49.3 subdivision 1; and 49.4 (9) cooperative building repair revenue, according to 49.5 section 126C.40, subdivision 3. 49.6 (b) The criterion described in section 126C.69, subdivision 49.7 3, paragraph (a), clause (9), does not apply to bonds authorized 49.8 by elections held before July 1, 1992. 49.9 (c) For the purpose of this subdivision the department 49.10 shall determine the eligibility for sparsity at the location of 49.11 the new facility, or the site of the new facility closest to the 49.12 nearest operating school if there is more than one new facility. 49.13 (d) Notwithstanding paragraphs (a) to (c), debt service for 49.14 repayment of principal and interest on bonds issued after July 49.15 1, 1997, doesor leases on buildings do not qualify for debt 49.16 service equalization aid unless the primary purpose of the 49.17 facility is to serve students in kindergarten through grade 12. 49.18 Subd. 3. [NOTIFICATION.] A district eligible for debt49.19 servicefacilities equalization revenue under subdivision 2 must 49.20 notify the commissioner of the amount of its intended debt49.21 servicefacilities equalization revenue calculated under 49.22 subdivision 1 for all bonds sold prior to the notification by 49.23 July 1 of the calendar year the levy is certified. 49.24 Subd. 4. [ DEBT SERVICEFACILITIES EQUALIZATION REVENUE.] 49.25 The debt servicefacilities equalization revenue of a district 49.26 equals the eligible debt servicefacilities equalization revenue 49.27 minus the amount raised by a levy of 1211 percent times the 49.28 adjusted net tax capacity of the district. 49.29 Subd. 5. [EQUALIZED DEBT SERVICEFACILITIES LEVY.] To 49.30 obtain debt servicefacilities equalization revenue, a district 49.31 must levy an amount not to exceed the district's debt service49.32 facilities equalization revenue times the lesser of one or the 49.33 ratio of: 49.34 (1) the quotient derived by dividing the adjusted net tax 49.35 capacity of the district for the year before the year the levy 49.36 is certified by the adjusted pupil units in the district for the 50.1 school year ending in the year prior to the year the levy is 50.2 certified; to 50.3 (2) $4,000$4,210. 50.4 Subd. 6. [ DEBT SERVICEFACILITIES EQUALIZATION AID.] A 50.5 district's debt servicefacilities equalization aid is the 50.6 difference between the debt servicefacilities equalization 50.7 revenue and the equalized debt servicefacilities levy. If a 50.8 district does not levy the entire amount permitted, the 50.9 district's aid must be reduced in proportion to the amount 50.10 levied. 50.11 Subd. 7. [ DEBT SERVICEFACILITIES EQUALIZATION AID PAYMENT 50.12 SCHEDULE.] Debt serviceFacilities equalization aid must be paid 50.13 according to section 127A.45, subdivision 10. 50.14 Subd. 8. [DEBT SERVICE PRIORITY.] Of the amount paid under 50.15 this section, the district must first allocate the amount 50.16 attributable to obligations under chapter 475. Remaining aid 50.17 may be used for other purposes of this section. 50.18 EFFECTIVE DATE:This section is effective for revenue for 50.19 fiscal year 2002 and thereafter. 50.20 Sec. 3. Minnesota Statutes 1999 Supplement, section 50.21 123B.54, is amended to read: 50.22 123B.54 [ DEBT SERVICEFACILITIES EQUALIZATION 50.23 APPROPRIATION.] 50.24 (a) $33,165,000 in fiscal year 2000, $32,057,000 in fiscal 50.25 year 2001, and $31,280,000$44,407,000 in fiscal year 2002 and 50.26 each year thereafter is appropriated from the general fund to 50.27 the commissioner of children, families, and learning for payment 50.28 of debt servicefacilities equalization aid under section 50.29 123B.53. The 2002 appropriation includes $3,201,000 for 2001 50.30 and $29,079,000$41,206,000 for 2002. 50.31 (b) The appropriations in paragraph (a) must be reduced by 50.32 the amount of any money specifically appropriated for the same 50.33 purpose in any year from any state fund. 50.34 Sec. 4. Minnesota Statutes 1998, section 123B.57, 50.35 subdivision 1, is amended to read: 50.36 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive 51.1 health and safety revenue for any fiscal year a district must 51.2 submit to the commissioner an application for aid and levy51.3 revenue by the date determined by the commissioner. The 51.4 application may be for hazardous substance removal, fire and 51.5 life safety code repairs, labor and industry regulated facility 51.6 and equipment violations, and health, safety, and environmental 51.7 management, including indoor air quality management. The 51.8 application must include a health and safety program adopted by 51.9 the school district board. The program must include the 51.10 estimated cost, per building, of the program by fiscal year. 51.11 EFFECTIVE DATE:This section is effective for revenue for 51.12 fiscal year 2002 and thereafter. 51.13 Sec. 5. Minnesota Statutes 1998, section 123B.58, 51.14 subdivision 3, is amended to read: 51.15 Subd. 3. [ LEVY AUTHORITYREVENUE.] The district may levy51.16 is eligible for revenue up to $300,000 under this section, as 51.17 approved by the commissioner. The approved amount may be levied51.18 received over eight or fewer years. 51.19 EFFECTIVE DATE:This section is effective for revenue for 51.20 fiscal year 2002 and thereafter. 51.21 Sec. 6. Minnesota Statutes 1998, section 123B.58, 51.22 subdivision 4, is amended to read: 51.23 Subd. 4. [ LEVY AUTHORITYREVENUE IN COMBINED DISTRICTS.] 51.24 Notwithstanding subdivision 3, a district that has combined or 51.25 consolidated may levyreceive revenue up to 50 percent times 51.26 $300,000 times the number of former districts that operated on 51.27 June 30, 1991, in the area that now makes up the combined or 51.28 consolidated district. The approved amount is reduced by any 51.29 amount levied under subdivision 3 in the consolidated or 51.30 combined district or in the former districts that make up the 51.31 consolidated or combined district. Levy authority under this 51.32 subdivision expires at the same time as levy authority under 51.33 subdivision 3. 51.34 EFFECTIVE DATE:This section is effective for revenue for 51.35 fiscal year 2002 and thereafter. 51.36 Sec. 7. Minnesota Statutes 1998, section 123B.59, as 52.1 amended by Laws 1999, chapter 241, is amended to read: 52.2 123B.59 [ALTERNATIVE FACILITIES BONDING AND LEVYREVENUE 52.3 PROGRAM.] 52.4 Subdivision 1. [TO QUALIFY.] An independent or special 52.5 school district qualifies to participate in the alternative 52.6 facilities bonding and levyrevenue program if the district has: 52.7 (1) more than 66 students per grade; 52.8 (2) over 1,850,000 square feet of space; 52.9 (3) average age of building space is 15 years or older; 52.10 (4) insufficient funds from projected health and safety 52.11 revenue and capital facilities revenue to meet the requirements 52.12 for deferred maintenance, to make accessibility improvements, or 52.13 to make fire, safety, or health repairs; and 52.14 (5) a ten-year facility plan approved by the commissioner 52.15 according to subdivision 2. 52.16 Subd. 2. [TEN-YEAR PLAN.] (a) A qualifying district must 52.17 have a ten-year facility plan approved by the commissioner that 52.18 includes an inventory of projects and costs that would be 52.19 eligible for: 52.20 (1) health and safety revenue; 52.21 (2) disabled access levy; and 52.22 (3) deferred capital expenditures and maintenance projects 52.23 necessary to prevent further erosion of facilities. 52.24 (b) The school district must: 52.25 (1) annually update the plan; 52.26 (2) biennially submit a facility maintenance plan; and 52.27 (3) indicate whether the district will issue bonds to 52.28 finance the plan or levyannually include program revenue under 52.29 the facilities equalization program, under section 123B.53, for 52.30 the costs. 52.31 Subd. 3. [BOND AUTHORIZATION.] A school district, upon 52.32 approval of its board and the commissioner, may issue general 52.33 obligation bonds under this section to finance approved 52.34 facilities plans. Chapter 475, except sections 475.58 and 52.35 475.59, must be complied with. The district may levy under52.36 subdivision 5 for the debt service revenue.The authority to 53.1 issue bonds under this section is in addition to any bonding 53.2 authority authorized by this chapter, or other law. The amount 53.3 of bonding authority authorized under this section must be 53.4 disregarded in calculating the bonding or net debt limits of 53.5 this chapter, or any other law other than section 475.53, 53.6 subdivision 4. 53.7 Subd. 4. [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 53.8 district that participates in the alternative facilities bonding53.9 and levyrevenue program is not eligible to levy and cannot53.10 receive aidfor revenue under sections 123B.57 and 123B.58 for 53.11 any capital projects funded under this section. A district 53.12 may levy and receive aid for health and safetyreceive revenue 53.13 for environmental management costs and health and safety 53.14 regulatory, hazard assessment, record keeping, and maintenance 53.15 programs as defined in section 123A.443123B.57, subdivision 2, 53.16 and approved by the commissioner. 53.17 Subd. 5. [ LEVYREVENUE AUTHORIZED.] A district, after 53.18 local board approval, may levyreceive revenue for costs related 53.19 to an approved facility plan as follows: 53.20 (a) if the district has indicated to the commissioner that 53.21 bonds will be issued, the district may levyreceive revenue for 53.22 the principal and interest payments on outstanding bonds issued 53.23 according to subdivision 3 after reduction for any alternative 53.24 facilities aid receivable under subdivision 6; or 53.25 (b) if the district has indicated to the commissioner that 53.26 the plan will be funded through levy authorized under section 53.27 123B.53, subdivision 5, the district may levy according to the 53.28 schedule approved in the plan after reduction for any 53.29 alternative facilities aid receivable under subdivision 6. 53.30 Subd. 6. [ALTERNATIVE FACILITIES AID.] A district's 53.31 alternative facilities aid is the amount equal to the district's 53.32 annual debt service costs, provided that the amount does not 53.33 exceed the amount certified to be levied for those purposes for 53.34 taxes payable in 1997, or for a district that made a levy under 53.35 subdivision 5, paragraph (b), the lesser of the district's 53.36 annual levy amount, or one-sixth of the amount of levy that it 54.1 certified for that purpose for taxes payable in 1998. 54.2 Subd. 8. [SEPARATE ACCOUNT.] A district must establish a 54.3 separate account under the uniform financial accounting and 54.4 reporting standards (UFARS) for this program. If the district's 54.5 levyrevenue exceeds the necessary interest and principal 54.6 payments and noncapital health and safety costs, the district 54.7 must reserve the revenue to replace future bonding authority, 54.8 prepay bonds authorized under this program, or make payments on 54.9 principal and interest. 54.10 EFFECTIVE DATE:This section is effective for revenue for 54.11 fiscal year 2002 and thereafter. 54.12 Sec. 8. Minnesota Statutes 1998, section 123B.63, 54.13 subdivision 3, is amended to read: 54.14 Subd. 3. [FACILITIES DOWN PAYMENT LEVYREVENUE 54.15 REFERENDUM.] A district may levy the local tax ratereceive 54.16 revenue under the facilities equalization program for the 54.17 purposes of financing the acquisition and betterment of a school 54.18 construction project or to pay for the lease on a new school 54.19 building used primarily for regular kindergarten, elementary, or 54.20 secondary instruction if authorization is approved by a majority 54.21 of the electors voting on the question to provide funds for a54.22 down payment foran approved project. The election must take 54.23 place no more than five years before the estimated date of 54.24 commencement of the project. The referendum must be held on a 54.25 date set by the board. A referendum for a project notreceiving 54.26 a positivean unfavorable review and comment by the commissioner 54.27 under section 123B.71 must be approved by at least 60 percent of 54.28 the voters voting on the question at the election. The 54.29 referendum may be called by the school board and may be held: 54.30 (1) separately, before an election for the issuance of 54.31 obligations for the project under chapter 475; or 54.32 (2) in conjunction with an election for the issuance of 54.33 obligations for the project under chapter 475; or 54.34 (3) notwithstanding section 475.59, as a conjunctive 54.35 question authorizing both the down payment levyrevenue and the 54.36 issuance of obligations for the project under chapter 475. Any 55.1 obligations authorized for a project may be issued within five 55.2 years of the date of the election. 55.3 The ballot must provide a general description of the 55.4 proposed project, state the estimated total cost of the project, 55.5 state whether the project has received a positive or negative55.6 unfavorable review and comment from the commissioner, state the 55.7 maximum amount of the down paymentequalized facility levy as a 55.8 percentage of net tax capacity, state the amount that will be 55.9 raised by that local tax rate in the first year it is to be 55.10 levied, and state the maximum number of years that the levy 55.11 authorization will apply. 55.12 The ballot must contain a textual portion with the 55.13 information required in this section and a question stating 55.14 substantially the following: 55.15 "Shall the down paymentfacility levy proposed by the board 55.16 of .......... School District No. .......... be approved?" 55.17 If approved, the amount provided by the approved local tax 55.18 rate applied to the net tax capacity for the year preceding the 55.19 year the levy is certified may be certified for the number of 55.20 years approved. 55.21 In the event a conjunctive question proposes to authorize 55.22 both the down paymentequalized facilities levy, under section 55.23 123B.53, and the issuance of obligations for the project, 55.24 appropriate language authorizing the issuance of obligations 55.25 must also be included in the question. 55.26 The district must notify the commissioner of the results of 55.27 the referendum. 55.28 EFFECTIVE DATE:This section is effective for revenue for 55.29 fiscal year 2002 and thereafter. 55.30 Sec. 9. Minnesota Statutes 1998, section 123B.63, 55.31 subdivision 4, is amended to read: 55.32 Subd. 4. [EXCESS BUILDING CONSTRUCTION FUND LEVY 55.33 PROCEEDS.] (a) For the purpose of a school construction project, 55.34 any funds remaining in the down payment accountthat are not 55.35 applied to the payment of the costs of the approved project 55.36 before its final completion must be transferred to the 56.1 district's debt redemption fund. 56.2 (b) For the purposes of a leased building, any funds that 56.3 are applied to the payment of the lease at the termination of 56.4 the lease must be transferred to the district's debt redemption 56.5 fund. 56.6 EFFECTIVE DATE:This section is effective for revenue for 56.7 fiscal year 2002 and thereafter. 56.8 Sec. 10. Minnesota Statutes 1998, section 123B.71, 56.9 subdivision 10, is amended to read: 56.10 Subd. 10. [INDOOR AIR QUALITY.] A school board seeking a 56.11 review and comment under this section must submit information 56.12 demonstrating to the commissioner's satisfaction that: 56.13 (1) indoor air quality issues have been considered; and 56.14 (2) the architects and engineers designing the facility 56.15 will have professional liability insurance. 56.16 Plans submitted under subdivisions 3 and 4 for projects to 56.17 be placed in service after July 1, 2002, must demonstrate that: 56.18 (a) the facility's heating, ventilation, and air 56.19 conditioning systems meet or exceed the standards established by 56.20 code; and 56.21 (b) the facility's design will provide the ability for 56.22 monitoring of outdoor airflow and total airflow of ventilation 56.23 systems in new school facilities. 56.24 Sec. 11. Minnesota Statutes 1998, section 123B.72, 56.25 subdivision 3, is amended to read: 56.26 Subd. 3. [CERTIFICATION.] Prior to occupying or 56.27 reoccupying a school facility affected by this section, a school 56.28 board or its designee shall submit a document prepared by a 56.29 system inspector to the building official or to the 56.30 commissioner, verifying that the facility's heating, 56.31 ventilation, and air conditioning system has been installed and 56.32 operates according to design specifications and code, according 56.33 to section 123B.71, subdivision 10, clause (3). A systems 56.34 inspector shall also verify that the facility's design will 56.35 provide the ability for monitoring of outdoor airflow and total 56.36 airflow of ventilation systems in new school facilities and that 57.1 any heating, ventilation, or air conditioning system that is 57.2 installed or modified for a project subject to this section must 57.3 provide a filtration system with a current ASHRAE standard. 57.4 EFFECTIVE DATE:This section is effective on July 1, 2002. 57.5 Sec. 12. [125B.25] [TELECOMMUNICATIONS ACCESS REVENUE.] 57.6 Subdivision 1. [COSTS TO BE SUBMITTED.] A district shall 57.7 submit its outstanding ongoing or recurring telecommunications 57.8 access costs associated with data lines and video links to the 57.9 department of children, families, and learning. Costs of 57.10 telecommunications hardware or equipment must not be included in 57.11 the costs submitted by districts to the department. A district 57.12 may include installation charges associated with new lines or 57.13 upgraded lines, but may not include costs of hardware or 57.14 equipment. 57.15 Subd. 2. [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 57.16 recurring telecommunications access costs submitted to the 57.17 department by each district under this section are limited to 57.18 the operation costs equal to the greater of: 57.19 (1) one data line or video link that relies on a transport 57.20 medium that operates at a minimum speed of 1.544 megabytes per 57.21 second for each elementary school, middle school, or high school 57.22 under section 120A.05, subdivisions 9, 11, and 13; or 57.23 (2) one data line or video link that relies on a transport 57.24 medium that operates at a minimum speed of 1.544 megabytes per 57.25 second for each district. 57.26 (b) A district may include costs associated with 57.27 cooperative arrangements with other post-secondary institutions, 57.28 school districts, and community and regional libraries in its 57.29 geographic region. A district may continue to purchase its 57.30 ongoing or recurring telecommunications access services through 57.31 existing contracts. 57.32 Subd. 3. [E-RATES.] To be eligible for revenue under this 57.33 section, a district is required to file an e-rate application 57.34 either separately or through their telecommunications grant 57.35 cluster. Discounts received on telecommunications expenditures 57.36 shall be used to offset the amount submitted to the department 58.1 for per pupil revenue under this section. 58.2 Subd. 4. [CALCULATION OF COSTS.] By February 15 of each 58.3 year, the commissioner shall calculate the ongoing or recurring 58.4 telecommunications access cost per adjusted marginal cost pupil 58.5 unit submitted by each school district under subdivisions 1 and 58.6 2 for the year in which the data is submitted minus the reserved 58.7 revenue under section 126C.10, subdivision 13, paragraph (d). 58.8 Districts shall submit their anticipated ongoing or recurring 58.9 telecommunications access costs, adjusted for any e-rate revenue 58.10 received to the department based on contracts entered into by 58.11 the district for that school year. Districts shall also submit 58.12 their actual telecommunications access costs by August 15 of 58.13 each year and adjusted for any e-rate revenue received to the 58.14 department as prescribed by the commissioner. 58.15 Subd. 5. [DISTRICT REVENUE.] A district shall receive an 58.16 amount equal to the amount as calculated by the commissioner 58.17 under subdivision 4, times the adjusted marginal cost pupil 58.18 units for that year, times 80 percent. 58.19 Subd. 6. [REVENUE FOR CHARTER SCHOOLS.] Each charter 58.20 school shall receive revenue equal to the greater of: 58.21 (1) the per marginal cost pupil unit amount for the 58.22 district in which the charter school is located as determined by 58.23 the commissioner according to subdivision 4; or 58.24 (2) $5; 58.25 times the adjusted marginal cost pupil units for that year, 58.26 times 80 percent. 58.27 Subd. 7. [REVENUE FOR NONPUBLIC SCHOOLS.] Notwithstanding 58.28 any other law to the contrary, each nonpublic school, not 58.29 including home schools, shall receive an amount equal to the 58.30 greater of: 58.31 (1) the per marginal cost pupil unit amount for the 58.32 district in which the nonpublic school is located as determined 58.33 by the commissioner according to subdivision 4; or 58.34 (2) $5; 58.35 times the number of pupils who are enrolled at the nonpublic 58.36 school as of October 1 of the current school year. 59.1 Subd. 8. [REIMBURSEMENT CRITERIA.] The commissioner, 59.2 working with the commissioner of administration and the 59.3 Minnesota education telecommunications council, shall develop 59.4 reimbursement criteria that schools must address when submitting 59.5 ongoing or recurring telecommunications costs as determined in 59.6 subdivisions 1 and 2. The criteria must assist schools to 59.7 procure telecommunications access services in the most efficient 59.8 and cost effective manner possible. 59.9 Subd. 9. [EXPIRATION.] This section expires on July 1, 59.10 2003. 59.11 Sec. 13. Minnesota Statutes 1999 Supplement, section 59.12 126C.10, subdivision 13, is amended to read: 59.13 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 59.14 fiscal year 2000 and thereafter, total operating capital revenue 59.15 for a district equals the amount determined under paragraph (b) 59.16 or (c), plus $68$73 times the adjusted marginal cost pupil 59.17 units for the school year. The revenue must be placed in a 59.18 reserved account in the general fund and may only be used 59.19 according to paragraph (d) or subdivision 14. 59.20 (b) For fiscal years 2000 and later, capital revenue for a 59.21 district equals $100 times the district's maintenance cost index 59.22 times its adjusted marginal cost pupil units for the school year. 59.23 (c) For fiscal years 2000 and later, the revenue for a 59.24 district that operates a program under section 124D.128, is 59.25 increased by an amount equal to $30 times the number of marginal 59.26 cost pupil units served at the site where the program is 59.27 implemented. 59.28 (d) For fiscal years 2001, 2002, and 2003, the district 59.29 must reserve an amount equal to $5 per adjusted marginal cost 59.30 pupil unit for telecommunication access costs. Reserve revenue 59.31 under this paragraph must first be used to pay for ongoing or 59.32 recurring telecommunication access costs, including access to 59.33 data lines, video lines, or Internet access. Any revenue 59.34 remaining after covering all ongoing or recurring access costs 59.35 may be used for computer hardware or equipment. 59.36 Sec. 14. Minnesota Statutes 1998, section 126C.40, 60.1 subdivision 1, is amended to read: 60.2 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 60.3 district finds it economically advantageous to rent or lease a 60.4 building or land for any instructional purposes or for school 60.5 storage or furniture repair, and it determines that the 60.6 operating capital revenue authorized under section 126C.10, 60.7 subdivision 13, is insufficient for this purpose, it may apply 60.8 to the commissioner for permission to make an additional capital60.9 expenditure levyincrease its equalized facilities revenue under 60.10 section 123B.53, subdivision 5, for this purpose. An 60.11 application for permission to levy under this subdivision60.12 increase the equalized facilities revenue must contain financial 60.13 justification for the proposed levyincrease, the terms and 60.14 conditions of the proposed lease, and a description of the space 60.15 to be leased and its proposed use. 60.16 (b) The criteria for approval of applications to levy under 60.17 this subdivision must include: the reasonableness of the price, 60.18 the appropriateness of the space to the proposed activity, the 60.19 feasibility of transporting pupils to the leased building or 60.20 land, conformity of the lease to the laws and rules of the state 60.21 of Minnesota, and the appropriateness of the proposed lease to 60.22 the space needs and the financial condition of the district. 60.23 The commissioner must not authorize a levyrevenue under this 60.24 subdivision in an amount greater than the cost to the district 60.25 of renting or leasing a building or land for approved purposes. 60.26 The proceeds of this levy must not be used for custodial or 60.27 other maintenance services. A district may not levyreceive 60.28 revenue under this subdivision for the purpose of leasing or 60.29 renting a district-owned building or site to itself. 60.30 (c) For agreements finalized after July 1, 1997, a district 60.31 may not levyreceive revenue under this subdivision for the 60.32 purpose of leasing: (1) a newly constructed building used 60.33 primarily for regular kindergarten, elementary, or secondary 60.34 instruction; or (2) a newly constructed building addition or 60.35 additions used primarily for regular kindergarten, elementary, 60.36 or secondary instruction that contains more than 20 percent of 61.1 the square footage of the previously existing building. 61.2 (d) The total levyrevenue under this subdivision for a 61.3 district for any year must not exceed $100 times the resident 61.4 pupil units for the fiscal year to which the levy is 61.5 attributable. 61.6 (e) For agreements for which a review and comment have been 61.7 submitted to the department of children, families, and learning 61.8 after April 1, 1998, the term "instructional purpose" as used in 61.9 this subdivision excludes expenditures on stadiums. 61.10 EFFECTIVE DATE:This section is effective for revenue for 61.11 fiscal year 2002 and thereafter. 61.12 Sec. 15. Minnesota Statutes 1998, section 126C.40, 61.13 subdivision 1, is amended to read: 61.14 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 61.15 district finds it economically advantageous to rent or lease a 61.16 building or land for any instructional purposes or for school 61.17 storage or furniture repair, and it determines that the 61.18 operating capital revenue authorized under section 126C.10, 61.19 subdivision 13, is insufficient for this purpose, it may apply 61.20 to the commissioner for permission to make an additional capital 61.21 expenditure levy for this purpose. An application for 61.22 permission to levy under this subdivision must contain financial 61.23 justification for the proposed levy, the terms and conditions of 61.24 the proposed lease, and a description of the space to be leased 61.25 and its proposed use. 61.26 (b) The criteria for approval of applications to levy under 61.27 this subdivision must include: the reasonableness of the price, 61.28 the appropriateness of the space to the proposed activity, the 61.29 feasibility of transporting pupils to the leased building or 61.30 land, conformity of the lease to the laws and rules of the state 61.31 of Minnesota, and the appropriateness of the proposed lease to 61.32 the space needs and the financial condition of the district. 61.33 The commissioner must not authorize a levy under this 61.34 subdivision in an amount greater than the cost to the district 61.35 of renting or leasing a building or land for approved purposes. 61.36 The proceeds of this levy must not be used for custodial or 62.1 other maintenance services. A district may not levy under this 62.2 subdivision for the purpose of leasing or renting a 62.3 district-owned building or site to itself. 62.4 (c) For agreements finalized after July 1, 1997, a district 62.5 may not levy under this subdivision for the purpose of leasing: 62.6 (1) a newly constructed building used primarily for regular 62.7 kindergarten, elementary, or secondary instruction; or (2) a 62.8 newly constructed building addition or additions used primarily 62.9 for regular kindergarten, elementary, or secondary instruction 62.10 that contains more than 20 percent of the square footage of the 62.11 previously existing building. 62.12 (d) Notwithstanding paragraph (b), a district may levy 62.13 under this subdivision for the purpose of leasing or renting a 62.14 district-owned building or site to itself only if the amount is 62.15 needed by the district to make payments required by a lease 62.16 purchase agreement, installment purchase agreement, or other 62.17 deferred payments agreement authorized by law, and the levy 62.18 meets the requirements of paragraph (c). A levy authorized for 62.19 a district by the commissioner under this paragraph may be in 62.20 the amount needed by the district to make payments required by a 62.21 lease purchase agreement, installment purchase agreement, or 62.22 other deferred payments agreement authorized by law, provided 62.23 that any agreement include a provision giving the school 62.24 districts the right to terminate the agreement annually without 62.25 penalty. 62.26 (e) The total levy under this subdivision for a district 62.27 for any year must not exceed $100 times the resident pupil units 62.28 for the fiscal year to which the levy is attributable. 62.29 (e)(f) For agreements for which a review and comment have 62.30 been submitted to the department of children, families, and 62.31 learning after April 1, 1998, the term "instructional purpose" 62.32 as used in this subdivision excludes expenditures on stadiums. 62.33 (g) For purposes of this subdivision, any reference to 62.34 building or land includes personal property. 62.35 (h) The commissioner of children, families, and learning 62.36 may authorize a school district to exceed the limit in paragraph 63.1 (e) if the school district petitions the commissioner for 63.2 approval. The commissioner shall grant approval to a school 63.3 district to exceed the limit in paragraph (e) for not more than 63.4 five years if the district meets the following criteria: 63.5 (1) the school district has been experiencing pupil 63.6 enrollment growth in the preceding five years; 63.7 (2) the purpose of the increased levy is in the long-term 63.8 public interest; 63.9 (3) the purpose of the increased levy promotes colocation 63.10 of government services; and 63.11 (4) the purpose of the increased levy is in the long-term 63.12 interest of the district by avoiding over construction of school 63.13 facilities. 63.14 Sec. 16. Minnesota Statutes 1998, section 126C.40, 63.15 subdivision 2, is amended to read: 63.16 Subd. 2. [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 63.17 A district may annually levyincrease the amount of its 63.18 equalized facilities revenue needed to make payments required by 63.19 a lease purchase agreement, installment purchase agreement, or 63.20 other deferred payment agreement authorized by Minnesota 63.21 Statutes 1989 Supplement, section 465.71, if: 63.22 (1) the agreement was approved by the commissioner before 63.23 July 1, 1990, according to Minnesota Statutes 1989 Supplement, 63.24 section 275.125, subdivision 11d; or 63.25 (2) the district levied in 1989 for the payments. 63.26 EFFECTIVE DATE:This section is effective for revenue for 63.27 fiscal year 2002 and thereafter. 63.28 Sec. 17. Minnesota Statutes 1998, section 126C.40, 63.29 subdivision 3, is amended to read: 63.30 Subd. 3. [COOPERATING DISTRICTS.] A district that has an 63.31 agreement according to section 123A.30 or 123A.32 may levy63.32 increase its equalized facilities revenue under section 123B.53, 63.33 subdivision 5, for the repair costs, as approved by the 63.34 department of a building located in another district that is a 63.35 party to the agreement. 63.36 EFFECTIVE DATE:This section is effective for revenue for 64.1 fiscal year 2002 and thereafter. 64.2 Sec. 18. Minnesota Statutes 1999 Supplement, section 64.3 126C.40, subdivision 6, is amended to read: 64.4 Subd. 6. [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 64.5 application to, and approval by, the commissioner in accordance 64.6 with the procedures and limits in subdivision 1, paragraphs (a) 64.7 and (b), a district, as defined in this subdivision, may: 64.8 (1) purchase real or personal property under an installment 64.9 contract or may lease real or personal property with an option 64.10 to purchase under a lease purchase agreement, by which 64.11 installment contract or lease purchase agreement title is kept 64.12 by the seller or vendor or assigned to a third party as security 64.13 for the purchase price, including interest, if any; and 64.14 (2) annually levy the amounts necessary to pay the 64.15 district's obligations under the installment contract or lease 64.16 purchase agreement. 64.17 (b) The obligation created by the installment contract or 64.18 the lease purchase agreement must not be included in the 64.19 calculation of net debt for purposes of section 475.53, and does 64.20 not constitute debt under other law. An election is not 64.21 required in connection with the execution of the installment 64.22 contract or the lease purchase agreement. 64.23 (c) The proceeds of the levy authorized by this subdivision 64.24 must not be used to acquire a facility to be primarily used for 64.25 athletic or school administration purposes. 64.26 (d) For the purposes of this subdivision, "district" means: 64.27 (1) a school district required to have a comprehensive plan 64.28 for the elimination of segregation whose plan has been 64.29 determined by the commissioner to be in compliance with 64.30 department of children, families, and learning rules relating to 64.31 equality of educational opportunity and school desegregation and 64.32 for a district qualifying for revenue under section 124D.86, 64.33 subdivision 3, clause (4), where the property subject to the 64.34 levy authority is determined by the commissioner to contribute 64.35 to implementation of the desegregation plan; or 64.36 (2) a school district that participates in a joint program 65.1 for interdistrict desegregation with a district defined in 65.2 clause (1) if the facility acquired under this subdivision is to 65.3 be primarily used for the joint program and the commissioner 65.4 determines that the joint programs are being undertaken to 65.5 implement the districts' desegregation plan. 65.6 (e) Notwithstanding subdivision 1, the prohibition against 65.7 a levy by a district to lease or rent a district-owned building 65.8 to itself does not apply to levies otherwise authorized by this 65.9 subdivision. 65.10 (f) For the purposes of this subdivision, any references in 65.11 subdivision 1 to building or land shall include personal 65.12 property. 65.13 Sec. 19. Minnesota Statutes 1999 Supplement, section 65.14 126C.40, subdivision 6, is amended to read: 65.15 Subd. 6. [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 65.16 application to, and approval by, the commissioner in accordance 65.17 with the procedures and limits in subdivision 1, paragraphs (a) 65.18 and (b), a district, as defined in this subdivision, may: 65.19 (1) purchase real or personal property under an installment 65.20 contract or may lease real or personal property with an option 65.21 to purchase under a lease purchase agreement, by which 65.22 installment contract or lease purchase agreement title is kept 65.23 by the seller or vendor or assigned to a third party as security 65.24 for the purchase price, including interest, if any; and 65.25 (2) annually levyincrease its equalized facilities revenue 65.26 under section 123B.53, subdivision 5, by the amounts necessary 65.27 to pay the district's obligations under the installment contract 65.28 or lease purchase agreement. 65.29 (b) The obligation created by the installment contract or 65.30 the lease purchase agreement must not be included in the 65.31 calculation of net debt for purposes of section 475.53, and does 65.32 not constitute debt under other law. An election is not 65.33 required in connection with the execution of the installment 65.34 contract or the lease purchase agreement. 65.35 (c) The proceeds of the levyequalized facilities revenue 65.36 increase authorized by this subdivision must not be used to 66.1 acquire a facility to be primarily used for athletic or school 66.2 administration purposes. 66.3 (d) For the purposes of this subdivision, "district" means: 66.4 (1) a school district required to have a comprehensive plan 66.5 for the elimination of segregation whose plan has been 66.6 determined by the commissioner to be in compliance with 66.7 department of children, families, and learning rules relating to 66.8 equality of educational opportunity and school desegregation; or 66.9 (2) a school district that participates in a joint program 66.10 for interdistrict desegregation with a district defined in 66.11 clause (1) if the facility acquired under this subdivision is to 66.12 be primarily used for the joint program. 66.13 (e) Notwithstanding subdivision 1, the prohibition against 66.14 a levy bya district to leasereceiving revenue for the purpose 66.15 of leasing or rentrenting a district-owned building to itself 66.16 does not apply to leviesrevenues otherwise authorized by this 66.17 subdivision. 66.18 (f) For the purposes of this subdivision, any references in 66.19 subdivision 1 to building or land shall include personal 66.20 property. 66.21 EFFECTIVE DATE:This section is effective for revenue for 66.22 fiscal year 2002 and thereafter. 66.23 Sec. 20. Minnesota Statutes 1998, section 126C.69, 66.24 subdivision 15, is amended to read: 66.25 Subd. 15. [BOND SALE LIMITATIONS.] A district having an 66.26 outstanding state loan must not issue and sell any bonds on the 66.27 public market, except to refund state loans, unless it agrees to 66.28 make the maximum effort debt service levy in each later year at 66.29 the higher rate provided in section 126C.63, subdivision 8, and 66.30 unless it schedules the maturities of the bonds according to 66.31 section 475.54, subdivision 2. A district that refunds bonds at 66.32 a lower interest rate may continue to make the maximum effort 66.33 debt service levy in each later year at the current rate 66.34 provided in section 126C.63, subdivision 8, if the district can 66.35 demonstrate to the commissioner's satisfaction that the 66.36 district's repayments of the state loan will not be reduced 67.1 below the previous year's level. The district must report each 67.2 sale to the commissioner. 67.3 After a district's capital loan has been outstanding for 2067.4 30 years, the district must not issue bonds on the public market 67.5 except to refund the loan. 67.6 Sec. 21. Laws 1998, chapter 404, section 5, subdivision 67.7 11, as amended by Laws 1999, chapter 26, section 1, is amended 67.8 to read: 67.9 Subd. 11. McLeod West 67.10 School District No. 2887 500,000 67.11 For a grant to the McLeod West school 67.12 district No. 2887, to design and67.13 acquire land for a new grade 7 through67.14 12remodel an educational facility. 67.15 EFFECTIVE DATE:This section is effective the day 67.16 following final enactment. 67.17 Sec. 22. Laws 1999, chapter 241, article 4, section 27, 67.18 subdivision 2, is amended to read: 67.19 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 67.20 aid according to Minnesota Statutes, section 123B.57, 67.21 subdivision 5: 67.22 $14,528,000$14,015,000 ..... 2000 67.23 $14,957,000$14,450,000 ..... 2001 67.24 The 2000 appropriation includes $1,415,000 for 1999 and 67.25 $13,113,000$12,812,000 for 2000. 67.26 The 2001 appropriation includes $1,456,000$1,423,000 for 67.27 2000 and $13,501,000$13,365,000 for 2001. 67.28 Sec. 23. Laws 1999, chapter 241, article 4, section 27, 67.29 subdivision 3, is amended to read: 67.30 Subd. 3. [DEBT SERVICE AID.] For debt service aid 67.31 according to Minnesota Statutes, section 123B.53, subdivision 6: 67.32 $33,165,000$33,141,000 ..... 2000 67.33 $32,084,000$29,400,000 ..... 2001 67.34 The 2000 appropriation includes $3,842,000 for 1999 and 67.35 $29,323,000$29,299,000 for 2000. 67.36 The 2001 appropriation includes $3,256,000$3,255,000 for 67.37 2000 and $28,828,000$25,841,000 for 2001. 67.38 Sec. 24. Laws 1999, chapter 241, article 4, section 27, 68.1 subdivision 4, is amended to read: 68.2 Subd. 4. [INTERACTIVE TELEVISION (ITV) AID.] For 68.3 interactive television (ITV) aid under Minnesota Statutes, 68.4 section 126C.40, subdivision 4: 68.5 $4,197,000$4,194,000 ..... 2000 68.6 $2,851,000$2,761,000 ..... 2001 68.7 The 2000 appropriation includes $405,000 for 1999 and 68.8 $3,792,000$3,784,000 for 2000. 68.9 The 2001 appropriation includes $421,000 for 2000 and 68.10 $2,430,000$2,338,000 for 2001. 68.11 Sec. 25. Laws 1999, chapter 241, article 4, section 27, 68.12 subdivision 5, is amended to read: 68.13 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 68.14 alternative facilities bonding aid, according to Minnesota 68.15 Statutes, section 123B.59: 68.16 $19,058,000$18,920,000 ..... 2000 68.17 $19,286,000$19,134,000 ..... 2001 68.18 The 2000 appropriation includes $1,700,000 for 2000 and 68.19 $17,358,000$17,220,000 for 2001. 68.20 The 2001 appropriation includes $1,928,000$1,914,000 for 68.21 2000 and $17,358,000$17,288,000 for 2001. 68.22 Sec. 26. [ONE-TIME FACILITIES AID.] 68.23 (a) For fiscal year 2001 only, a district's one-time 68.24 facilities aid is equal to: 68.25 (1) $11.20 times the adjusted marginal cost pupil units for 68.26 the school year; plus 68.27 (2) $25 times the adjusted marginal cost pupil units for 68.28 the school year for a district that does not qualify for 68.29 alternative facilities bonding under Minnesota Statutes, section 68.30 123B.59, or under Laws 1999, chapter 241, article 4, section 25. 68.31 (b) Aid received under this section must be used for 68.32 deferred maintenance, to make accessibility improvements, or to 68.33 make fire, safety, or health repairs. 68.34 Sec. 27. [PROJECT QUALIFICATION; TRITON.] 68.35 Subdivision 1. [ELIGIBILITY.] Notwithstanding Minnesota 68.36 Statutes, section 123B.57, independent school district No. 2125, 69.1 Triton, may include all unreimbursed costs associated with the 69.2 testing, evaluation, removal, and replacement of building 69.3 fixtures and equipment necessitated by the discovery of mold in 69.4 a school building in its health and safety plan not to exceed 69.5 $400,000. 69.6 Subd. 2. [COST RECOVERY.] Independent school district No. 69.7 2125, Triton, must pursue all reasonable options to recover 69.8 expenses resulting from the mold from its insurance company, the 69.9 subcontractors, and any other parties responsible for the damage 69.10 caused by the mold. 69.11 EFFECTIVE DATE:This section is effective the day 69.12 following final enactment. 69.13 Sec. 28. [MAXIMUM EFFORT CAPITAL LOANS.] 69.14 Subdivision 1. [INDEPENDENT SCHOOL DISTRICT NO. 38, RED 69.15 LAKE.] $11,166,000 is appropriated to the commissioner of 69.16 children, families, and learning to make a capital loan to 69.17 independent school district No. 38, Red Lake. $11,166,296 is 69.18 approved for a capital loan to independent school district No. 69.19 38, Red Lake. 69.20 Subd. 2. [INDEPENDENT SCHOOL DISTRICT NO. 115, CASS 69.21 LAKE.] $7,505,000 is appropriated to the commissioner of 69.22 children, families, and learning to make a capital loan to 69.23 independent school district No. 115, Cass Lake. $7,505,000 is 69.24 approved for a capital loan to independent school district No. 69.25 115, Cass Lake. 69.26 Subd. 3. [INDEPENDENT SCHOOL DISTRICT NO. 299, 69.27 CALEDONIA.] $14,134,000 is appropriated to the commissioner of 69.28 children, families, and learning to make a capital loan to 69.29 independent school district No. 299, Caledonia. $14,133,788 is 69.30 approved for a capital loan to independent school district No. 69.31 299, Caledonia. 69.32 Subd. 4. [INDEPENDENT SCHOOL DISTRICT NO. 306, 69.33 LAPORTE.] $7,200,000 is appropriated to the commissioner of 69.34 children, families, and learning to make a capital loan to 69.35 independent school district No. 306, LaPorte. $7,200,000 is 69.36 approved for a capital loan to independent school district No. 70.1 306, LaPorte. 70.2 Subd. 5. [INDEPENDENT SCHOOL DISTRICT NO. 914, 70.3 ULEN-HITTERDAHL.] $4,025,000 is appropriated to the commissioner 70.4 of children, families, and learning to make a capital loan to 70.5 independent school district No. 914, Ulen-Hitterdahl. 70.6 $4,025,000 is approved for a capital loan to independent school 70.7 district No. 914, Ulen-Hitterdahl. 70.8 EFFECTIVE DATE:This section is effective the day 70.9 following final enactment. 70.10 Sec. 29. [COMMISSIONER RECOMMENDATION.] 70.11 By February 1, 2003, the commissioner of children, 70.12 families, and learning, in cooperation with the commissioner of 70.13 administration and the Minnesota education telecommunication 70.14 council, shall recommend to the legislature a permanent method 70.15 for funding telecommunications access as part of the general 70.16 education revenue formula under Minnesota Statutes, section 70.17 126C.10. The commissioner shall consider the following in 70.18 making the recommendation: 70.19 (1) the range of costs for providing a minimum level of 70.20 telecommunications access for all students; 70.21 (2) the flexibility that is necessary to accommodate 70.22 emerging technological advances in the telecommunications field; 70.23 and 70.24 (3) other related efforts within the state, including the 70.25 state's higher education and public library systems. 70.26 Sec. 30. [REVISOR'S INSTRUCTION.] 70.27 In subsequent editions of Minnesota Statutes, the revisor 70.28 of statutes shall change the headnote on section 123B.63 to 70.29 "BUILDING CONSTRUCTION AND LEASE PROGRAM." 70.30 Sec. 31. [FACILITY CONSOLIDATION IMPACT REVENUE.] 70.31 For fiscal year 2002 only, a school district that, as a 70.32 result of the consolidation of facility levies in this act, 70.33 experiences an increase in overall district levy, shall receive 70.34 an amount of aid equal to the amount of increased levy. The 70.35 property tax levy for taxes payable in 2001 shall be reduced by 70.36 the amount of the state aid. 71.1 Sec. 32. [CHISHOLM SCHOOL DISTRICT BONDS.] 71.2 Subdivision 1. [AUTHORIZATION.] Independent school 71.3 district No. 695, Chisholm, may issue bonds in an aggregate 71.4 principal amount not exceeding $4,250,000. 71.5 Subd. 2. [USES; PROCESS.] The bonds authorized under 71.6 subdivision 1 may be issued in addition to any bonds already 71.7 issued or authorized. The proceeds of the bonds shall be used 71.8 to provide funds to design, construct, equip, furnish, remodel, 71.9 rehabilitate, and acquire land for school facilities and 71.10 buildings and to pay any architect, engineer and legal fees 71.11 incidental to those purposes or to the sale of bonds. Except as 71.12 permitted by this section, the bonds shall be authorized, 71.13 issued, sold, executed, and delivered in the manner provided by 71.14 Minnesota Statutes, chapter 475. A referendum on the question 71.15 of issuing the bonds authorized under subdivision 1 is 71.16 required. A resolution of the board levying taxes for the 71.17 payment of the bonds and interest on them shall be deemed to be 71.18 in compliance with the provisions of Minnesota Statutes, chapter 71.19 475, with respect to the levying of taxes for their payment. 71.20 Subd. 3. [APPROPRIATION.] There is annually appropriated 71.21 from the distribution of taconite production tax revenues to the 71.22 taconite environmental protection fund pursuant to Minnesota 71.23 Statutes, section 298.28, subdivision 11, and to the northeast 71.24 Minnesota economic protection trust pursuant to Minnesota 71.25 Statutes, section 298.28, subdivisions 9 and 11, in equal 71.26 shares, an amount sufficient to pay when due 80 percent of the 71.27 principal and interest on the bonds issued under subdivision 1. 71.28 If the annual distribution to the northeast Minnesota economic 71.29 protection trust is insufficient to pay its share after 71.30 fulfilling any obligations of the trust under Minnesota 71.31 Statutes, section 298.225 or 298.293, the deficiency shall be 71.32 appropriated from the taconite environmental protection fund. 71.33 Subd. 4. [DISTRICT OBLIGATIONS.] Bonds issued under 71.34 authority of this section shall be the general obligations of 71.35 the school district, for which its full faith and credit and 71.36 unlimited taxing powers shall be pledged. If there are any 72.1 deficiencies in the amount received under subdivision 3, they 72.2 shall be satisfied by general levies, not subject to limit, on 72.3 all taxable properties in the district in accordance with 72.4 Minnesota Statutes, section 475.74. If any deficiency levies 72.5 are necessary, the school board may effect a temporary loan or 72.6 loans on certificates of indebtedness issued in anticipation of 72.7 them to meet payments of principal or interest on the bonds due 72.8 or about to become due. 72.9 Subd. 5. [DISTRICT LEVY.] The school board of the school 72.10 district authorized to issue bonds under subdivision 1 shall by 72.11 resolution levy on all property in the school district subject 72.12 to the general ad valorem school tax levies, and not subject to 72.13 taxation under Minnesota Statutes, sections 298.23 to 298.28, a 72.14 direct annual ad valorem tax for each year of the term of the 72.15 bonds in amounts that, if collected in full, will produce the 72.16 amounts needed to meet when due 20 percent of the principal and 72.17 interest payments on the bonds. A copy of the resolution shall 72.18 be filed, and the necessary taxes shall be extended, assessed, 72.19 collected, and remitted in accordance with Minnesota Statutes, 72.20 section 475.61. 72.21 Subd. 6. [LEVY LIMITATIONS.] Taxes levied pursuant to this 72.22 section shall be disregarded in the calculation of any other tax 72.23 levies or limits on tax levies provided by other law. 72.24 Subd. 7. [BONDING LIMITATIONS.] Bonds may be issued under 72.25 authority of this section notwithstanding any limitations upon 72.26 the indebtedness of a district, and their amounts shall not be 72.27 included in computing the indebtedness of a district for any 72.28 purpose, including the issuance of subsequent bonds and the 72.29 incurring of subsequent indebtedness. 72.30 Subd. 8. [TERMINATION OF APPROPRIATION.] The appropriation 72.31 authorized in subdivision 3 terminates upon payment or maturity 72.32 of the last of the bonds issued under this section. 72.33 Subd. 9. [BOND ISSUE REQUIREMENT.] No bonds may be issued 72.34 under this section after April 30, 2002, unless they are issued 72.35 under a contract in effect on or before April 30, 2002. 72.36 Subd. 10. [LOCAL APPROVAL.] This section is effective for 73.1 independent school district No. 695 the day after its governing 73.2 body complies with Minnesota Statutes, section 645.021, 73.3 subdivision 3. 73.4 Sec. 33. [GREENWAY-COLERAINE SCHOOL DISTRICT BONDS.] 73.5 Subdivision 1. [AUTHORIZATION.] Independent school 73.6 district No. 316, Greenway-Coleraine, may issue bonds in an 73.7 aggregate principal amount not exceeding $2,500,000. 73.8 Subd. 2. [USES; PROCESS.] The bonds authorized under 73.9 subdivision 1 may be issued in addition to any bonds already 73.10 issued or authorized. The proceeds of the bonds shall be used 73.11 to provide funds to design, construct, equip, furnish, remodel, 73.12 rehabilitate, and acquire land for school facilities and 73.13 buildings and to pay any architect, engineer and legal fees 73.14 incidental to those purposes or to the sale of bonds. Except as 73.15 permitted by this section, the bonds shall be authorized, 73.16 issued, sold, executed, and delivered in the manner provided by 73.17 Minnesota Statutes, chapter 475. A referendum on the question 73.18 of issuing the bonds authorized under subdivision 1 is 73.19 required. A resolution of the board levying taxes for the 73.20 payment of the bonds and interest on them shall be deemed to be 73.21 in compliance with the provisions of Minnesota Statutes, chapter 73.22 475, with respect to the levying of taxes for their payment. 73.23 Subd. 3. [APPROPRIATION.] There is annually appropriated 73.24 from the distribution of taconite production tax revenues to the 73.25 taconite environmental protection fund pursuant to Minnesota 73.26 Statutes, section 298.28, subdivision 11, and to the northeast 73.27 Minnesota economic protection trust pursuant to Minnesota 73.28 Statutes, section 298.28, subdivisions 9 and 11, in equal 73.29 shares, an amount sufficient to pay when due 80 percent of the 73.30 principal and interest on the bonds issued under subdivision 1. 73.31 If the annual distribution to the northeast Minnesota economic 73.32 protection trust is insufficient to pay its share after 73.33 fulfilling any obligations of the trust under Minnesota 73.34 Statutes, section 298.225 or 298.293, the deficiency shall be 73.35 appropriated from the taconite environmental protection fund. 73.36 Subd. 4. [DISTRICT OBLIGATIONS.] Bonds issued under 74.1 authority of this section shall be the general obligations of 74.2 the school district, for which its full faith and credit and 74.3 unlimited taxing powers shall be pledged. If there are any 74.4 deficiencies in the amount received under subdivision 3, they 74.5 shall be satisfied by general levies, not subject to limit, on 74.6 all taxable properties in the district in accordance with 74.7 Minnesota Statutes, section 475.74. If any deficiency levies 74.8 are necessary, the school board may effect a temporary loan or 74.9 loans on certificates of indebtedness issued in anticipation of 74.10 them to meet payments of principal or interest on the bonds due 74.11 or about to become due. 74.12 Subd. 5. [DISTRICT LEVY.] The school board of the school 74.13 district authorized to issue bonds under subdivision 1 shall by 74.14 resolution levy on all property in the school district subject 74.15 to the general ad valorem school tax levies, and not subject to 74.16 taxation under Minnesota Statutes, sections 298.23 to 298.28, a 74.17 direct annual ad valorem tax for each year of the term of the 74.18 bonds in amounts that, if collected in full, will produce the 74.19 amounts needed to meet when due 20 percent of the principal and 74.20 interest payments on the bonds. A copy of the resolution shall 74.21 be filed, and the necessary taxes shall be extended, assessed, 74.22 collected, and remitted in accordance with Minnesota Statutes, 74.23 section 475.61. 74.24 Subd. 6. [LEVY LIMITATIONS.] Taxes levied pursuant to this 74.25 section shall be disregarded in the calculation of any other tax 74.26 levies or limits on tax levies provided by other law. 74.27 Subd. 7. [BONDING LIMITATIONS.] Bonds may be issued under 74.28 authority of this section notwithstanding any limitations upon 74.29 the indebtedness of a district, and their amounts shall not be 74.30 included in computing the indebtedness of a district for any 74.31 purpose, including the issuance of subsequent bonds and the 74.32 incurring of subsequent indebtedness. 74.33 Subd. 8. [TERMINATION OF APPROPRIATION.] The appropriation 74.34 authorized in subdivision 3 terminates upon payment or maturity 74.35 of the last of the bonds issued under this section. 74.36 Subd. 9. [BOND ISSUE REQUIREMENT.] No bonds may be issued 75.1 under this section after April 30, 2002, unless they are issued 75.2 under a contract in effect on or before April 30, 2002. 75.3 Subd. 10. [LOCAL APPROVAL.] This section is effective for 75.4 independent school district No. 316 the day after its governing 75.5 body complies with Minnesota Statutes, section 645.021, 75.6 subdivision 3. 75.7 Sec. 34. [LAKE SUPERIOR SCHOOL DISTRICT BONDS.] 75.8 Subdivision 1. [AUTHORIZATION.] Independent school 75.9 district No. 381, Lake Superior, may issue bonds in an aggregate 75.10 principal amount not exceeding $6,000,000. 75.11 Subd. 2. [USES; PROCESS.] The bonds authorized under 75.12 subdivision 1 may be issued in addition to any bonds already 75.13 issued or authorized. The proceeds of the bonds shall be used 75.14 to provide funds to design, construct, equip, furnish, remodel, 75.15 rehabilitate, and acquire land for school facilities and 75.16 buildings and to pay any architect, engineer and legal fees 75.17 incidental to those purposes or to the sale of bonds. Except as 75.18 permitted by this section, the bonds shall be authorized, 75.19 issued, sold, executed, and delivered in the manner provided by 75.20 Minnesota Statutes, chapter 475. A referendum on the question 75.21 of issuing the bonds authorized under subdivision 1 is 75.22 required. A resolution of the board levying taxes for the 75.23 payment of the bonds and interest on them shall be deemed to be 75.24 in compliance with the provisions of Minnesota Statutes, chapter 75.25 475, with respect to the levying of taxes for their payment. 75.26 Subd. 3. [APPROPRIATION.] There is annually appropriated 75.27 from the distribution of taconite production tax revenues to the 75.28 taconite environmental protection fund pursuant to Minnesota 75.29 Statutes, section 298.28, subdivision 11, and to the northeast 75.30 Minnesota economic protection trust pursuant to Minnesota 75.31 Statutes, section 298.28, subdivisions 9 and 11, in equal 75.32 shares, an amount sufficient to pay when due 80 percent of the 75.33 principal and interest on the bonds issued under subdivision 1. 75.34 If the annual distribution to the northeast Minnesota economic 75.35 protection trust is insufficient to pay its share after 75.36 fulfilling any obligations of the trust under Minnesota 76.1 Statutes, section 298.225 or 298.293, the deficiency shall be 76.2 appropriated from the taconite environmental protection fund. 76.3 Subd. 4. [DISTRICT OBLIGATIONS.] Bonds issued under 76.4 authority of this section shall be the general obligations of 76.5 the school district, for which its full faith and credit and 76.6 unlimited taxing powers shall be pledged. If there are any 76.7 deficiencies in the amount received under subdivision 3, they 76.8 shall be satisfied by general levies, not subject to limit, on 76.9 all taxable properties in the district in accordance with 76.10 Minnesota Statutes, section 475.74. If any deficiency levies 76.11 are necessary, the school board may effect a temporary loan or 76.12 loans on certificates of indebtedness issued in anticipation of 76.13 them to meet payments of principal or interest on the bonds due 76.14 or about to become due. 76.15 Subd. 5. [DISTRICT LEVY.] The school board of the school 76.16 district authorized to issue bonds under subdivision 1 shall by 76.17 resolution levy on all property in the school district subject 76.18 to the general ad valorem school tax levies, and not subject to 76.19 taxation under Minnesota Statutes, sections 298.23 to 298.28, a 76.20 direct annual ad valorem tax for each year of the term of the 76.21 bonds in amounts that, if collected in full, will produce the 76.22 amounts needed to meet when due 20 percent of the principal and 76.23 interest payments on the bonds. A copy of the resolution shall 76.24 be filed, and the necessary taxes shall be extended, assessed, 76.25 collected, and remitted in accordance with Minnesota Statutes, 76.26 section 475.61. 76.27 Subd. 6. [LEVY LIMITATIONS.] Taxes levied pursuant to this 76.28 section shall be disregarded in the calculation of any other tax 76.29 levies or limits on tax levies provided by other law. 76.30 Subd. 7. [BONDING LIMITATIONS.] Bonds may be issued under 76.31 authority of this section notwithstanding any limitations upon 76.32 the indebtedness of a district, and their amounts shall not be 76.33 included in computing the indebtedness of a district for any 76.34 purpose, including the issuance of subsequent bonds and the 76.35 incurring of subsequent indebtedness. 76.36 Subd. 8. [TERMINATION OF APPROPRIATION.] The appropriation 77.1 authorized in subdivision 3 terminates upon payment or maturity 77.2 of the last of the bonds issued under this section. 77.3 Subd. 9. [BOND ISSUE REQUIREMENT.] No bonds may be issued 77.4 under this section after April 30, 2002, unless they are issued 77.5 under a contract in effect on or before April 30, 2002. 77.6 Subd. 10. [LOCAL APPROVAL.] This section is effective for 77.7 independent school district No. 381 the day after its governing 77.8 body complies with Minnesota Statutes, section 645.021, 77.9 subdivision 3. 77.10 Sec. 35. [APPROPRIATIONS.] 77.11 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 77.12 LEARNING.] The sums indicated in this section are appropriated 77.13 from the general fund to the department of children, families, 77.14 and learning for fiscal years designated. 77.15 Subd. 2. [TELECOMMUNICATION ACCESS REVENUE.] For 77.16 telecommunication access cost revenue under Minnesota Statutes, 77.17 section 125B.25: 77.18 $26,230,000 ..... 2001 77.19 Subd. 3. [INTEREST ON FLOOD LOANS.] For interest paid on 77.20 flood loans: 77.21 $ 970,000 ..... 2000 77.22 Of this amount, $761,000 is for independent school district 77.23 No. 595, East Grand Forks, and $209,000 is for independent 77.24 school district No. 2854, Ada-Borup. 77.25 This appropriation is available until June 30, 2001. 77.26 Subd. 4. [ONE-TIME FACILITIES AID.] For one-time 77.27 facilities aid: 77.28 $26,411,000 ..... 2001 77.29 Subd. 5. [SCHOOL FACILITIES GRANTS.] For grants to 77.30 construct school facilities: 77.31 $ 7,100,000 ..... 2000 77.32 Of this amount: 77.33 (a) $4,100,000 is for a grant to independent school 77.34 district No. 25, Pine Point, for the construction of a new 77.35 school facility serving kindergarten through grade 8. 77.36 (b) $3,000,000 is for a grant to independent school 78.1 district No. 495, Grand Meadow, to construct a new school using 78.2 monolithic dome construction techniques. The commissioner shall 78.3 award the grant to demonstrate that a school constructed using 78.4 monolithic dome construction techniques can provide operating 78.5 and construction savings for school districts throughout the 78.6 state. Grand Meadow school district must agree to provide the 78.7 state with information and data about this construction method 78.8 and with an analysis of a monolithic dome as a suitable 78.9 educational environment. 78.10 Subd. 6. [MAXIMUM EFFORT CAPITAL LOANS.] For capital loans 78.11 to school districts as provided in Minnesota Statutes, sections 78.12 126C.60 to 126C.72: 78.13 $44,031,000 ..... 2001 78.14 The commissioner shall review the proposed plan and budget 78.15 of the project and may reduce the amount of the loan to ensure 78.16 that the project will be economical. The commissioner may 78.17 recover the cost incurred by the commissioner for any 78.18 professional services associated with the final review and 78.19 construction by reducing the proceeds of the loan paid by the 78.20 district. The commissioner shall report to the legislature any 78.21 reductions to the above appropriations by January 10, 2001. 78.22 Notwithstanding any contrary provision of Minnesota Statutes, 78.23 sections 126C.60 to 126C.72, the repayments for the capital 78.24 loans approved in section 28 shall be made to the state general 78.25 fund and shall not be transferred to the school loan bond 78.26 account. The capital loan contract shall not contain 78.27 restrictions on investment of the loan funds by the school 78.28 district that would otherwise be required if the loans were 78.29 funded from state bond proceeds. Notwithstanding Minnesota 78.30 Statutes, section 126C.69, subdivision 12, the monies for 78.31 maximum effort loans approved in this article are from the 78.32 general fund. The interest rate on the loans shall equal the 78.33 weighted average annual rate payable on state bonds issued on a 78.34 date closest to the execution of the contract between the state 78.35 and the district. 78.36 Subd. 7. [ERITREAN COMMUNITY CENTER OF MINNESOTA.] For a 79.1 building lease start-up grant for an Eritrean community center 79.2 of Minnesota: 79.3 $ 150,000 ..... 2001 79.4 The commissioner shall consult with the commissioner of 79.5 administration on the availability of state-owned building space 79.6 for the community center. 79.7 Subd. 8. [FACILITIES CONSOLIDATION IMPACT REVENUE.] For 79.8 facilities consolidation impact revenue: 79.9 $ 2,422,000 ..... 2001 79.10 ARTICLE 5 79.11 EDUCATION EXCELLENCE AND OTHER POLICY 79.12 Section 1. Minnesota Statutes 1998, section 120B.13, 79.13 subdivision 4, is amended to read: 79.14 Subd. 4. [INFORMATION.] The commissioner shall submit the 79.15 following information to the education committees of the 79.16 legislature each year by JanuaryFebruary 1: 79.17 (1) the number of pupils enrolled in advanced placement and 79.18 international baccalaureate courses in each school district; 79.19 (2) the number of teachers in each district attending 79.20 training programs offered by the college board or International 79.21 Baccalaureate North America, Inc.; 79.22 (3) the number of teachers in each district participating 79.23 in support programs; 79.24 (4) recent trends in the field of advanced placement and 79.25 international baccalaureate programs; 79.26 (5) expenditures for each category in this section; and 79.27 (6) other recommendations for the state program. 79.28 Sec. 2. [120B.25] [PROHIBITION AGAINST PROGRAMS ADVOCATING 79.29 SEXUAL ACTIVITY BY STUDENTS.] 79.30 A public elementary, middle, or secondary school shall not 79.31 implement or carry out a program, activity, or curriculum that 79.32 has the purpose of encouraging sexual activity by minors except 79.33 that public health programs shall be permitted. 79.34 Sec. 3. Minnesota Statutes 1999 Supplement, section 79.35 120B.30, subdivision 1, is amended to read: 79.36 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 80.1 with advice from experts with appropriate technical 80.2 qualifications and experience and stakeholders, shall include in 80.3 the comprehensive assessment system, for each grade level to be 80.4 tested, a single statewide norm-referenced or 80.5 criterion-referenced test, or a combination of a norm-referenced 80.6 and a criterion-referenced test, which shall be highly 80.7 correlated with the state's graduation standards and 80.8 administered annually to all students in the third, fifth, and 80.9 eighth grades. The commissioner shall establish one or more 80.10 months during which schools shall administer the tests to 80.11 students each school year. Only Minnesota basic skills tests in 80.12 reading, mathematics, and writing shall fulfill students' 80.13 testing requirements for a passing state notation. The passing 80.14 scores of the state tests in reading and mathematics are the 80.15 equivalent of: 80.16 (1) 70 percent correct for students entering grade 9 in 80.17 1996; and 80.18 (2) 75 percent correct for students entering grade 9 in 80.19 1997 and thereafter, as based on the first uniform test 80.20 administration of February 1998. 80.21 (b) In addition, at the secondary level, districts shall 80.22 assess student performance in all required learning areas and 80.23 selected required standards within each area of the profile of 80.24 learning. The testing instruments and testing process shall be 80.25 determined by the commissioner. The results shall be aggregated 80.26 at the site and district level. The testing shall be 80.27 administered beginning in the 1999-2000 school year and 80.28 thereafter. 80.29 (c) The comprehensive assessment system shall include an 80.30 evaluation of school site and school district performance levels 80.31 during the 1997-1998 school year and thereafter using an 80.32 established performance baseline developed from students' test 80.33 scores under this section that records, at a minimum, students' 80.34 unweighted mean test scores in each tested subject, a second 80.35 performance baseline that reports, at a minimum, the same 80.36 unweighted mean test scores of only those students enrolled in 81.1 the school by January 1 of the previous school year, and a third 81.2 performance baseline that reports the same unweighted test 81.3 scores of all students except those students receiving limited 81.4 English proficiency instruction. The evaluation also shall 81.5 record separately, in proximity to the performance baselines, 81.6 the percentages of students who are eligible to receive a free 81.7 or reduced price school meal, demonstrate limited English 81.8 proficiency, or are eligible to receive special education 81.9 services. 81.10 (d) In addition to the testing and reporting requirements 81.11 under paragraphs (a), (b), and (c), the commissioner shall 81.12 include the following components in the statewide educational 81.13 accountability and public reporting system: 81.14 (1) uniform statewide testing of all third, fifth, eighth, 81.15 and post-eighth grade students with exemptions, only with parent 81.16 or guardian approval, from the testing requirement only for 81.17 those very few students for whom the student's individual 81.18 education plan team under sections 125A.05 and 125A.06, 81.19 determines that the student is incapable of taking a statewide 81.20 test, or a limited English proficiency student under section 81.21 124D.59, subdivision 2, if the student has been in the United 81.22 States for fewer than 12 months and for whom special language 81.23 barriers exist, such as the student's native language does not 81.24 have a written form or the district does not have access to 81.25 appropriate interpreter services for the student's native 81.26 language; 81.27 (2) educational indicators that can be aggregated and 81.28 compared across school districts and across time on a statewide 81.29 basis; 81.30 (3) students' scores on the American College Test; 81.31 (4) participation in the National Assessment of Educational 81.32 Progress so that the state can benchmark its performance against 81.33 the nation and other states, and, where possible, against other 81.34 countries, and contribute to the national effort to monitor 81.35 achievement; and 81.36 (5) basic skills and advanced competencies connecting 82.1 teaching and learning to high academic standards, assessment, 82.2 and transitions to citizenship and employment. 82.3 (e) Districts must report exemptions under paragraph (d), 82.4 clause (1), to the commissioner consistent with a format 82.5 provided by the commissioner. 82.6 EFFECTIVE DATE:This section is effective the day 82.7 following final enactment and applies to test administrations 82.8 beginning in February 2000. 82.9 Sec. 4. Minnesota Statutes 1998, section 121A.22, 82.10 subdivision 2, is amended to read: 82.11 Subd. 2. [EXCLUSIONS.] In addition, this section does not 82.12 apply to drugs or medicine: 82.13 (1) that can be purchased without a prescription;82.14 (2)that are used by a pupil who is 18 years old or older; 82.15 (3)(2) that are used in connection with services for which 82.16 a minor may give effective consent, including section 144.343, 82.17 subdivision 1, and any other law; 82.18 (4)(3) that are used in situations in which, in the 82.19 judgment of the school personnel who are present or available, 82.20 the risk to the pupil's life or health is of such a nature that 82.21 drugs or medicine should be given without delay; 82.22 (5)(4) that are used off the school grounds; 82.23 (6)(5) that are used in connection with athletics or extra 82.24 curricular activities; 82.25 (7)(6) that are used in connection with activities that 82.26 occur before or after the regular school day; or 82.27 (8)(7) that are provided or administered by a public 82.28 health agency in order to prevent or control an illness or a 82.29 disease outbreak as provided for in sections 144.05 and 144.12. 82.30 Sec. 5. Minnesota Statutes 1998, section 121A.22, 82.31 subdivision 3, is amended to read: 82.32 Subd. 3. [LABELING.] Prescription drugs or medicine 82.33 subject to this section must be in a container with a label 82.34 prepared by a pharmacist according to section 151.212 and 82.35 applicable rules. Nonprescription drugs or medicines must be 82.36 FDA approved and in the original container with an original 83.1 label containing use instructions. 83.2 Sec. 6. [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 83.3 Subdivision 1. [REASONABLE FORCE STANDARD.] (a) A teacher, 83.4 in exercising the person's lawful authority, may use reasonable 83.5 force when it is necessary under the circumstances to correct or 83.6 restrain a student or prevent bodily harm or death to another. 83.7 (b) A school employee, school bus driver, or other agent of 83.8 a district, in exercising the person's lawful authority, may use 83.9 reasonable force when it is necessary under the circumstances to 83.10 restrain a student or prevent bodily harm or death to another. 83.11 (c) Paragraphs (a) and (b) do not authorize conduct 83.12 prohibited under sections 121A.58 and 121A.67. 83.13 Subd. 2. [CIVIL LIABILITY.] (a) A teacher who, in the 83.14 exercise of the person's lawful authority, uses reasonable force 83.15 under the standard in subdivision 1, paragraph (a), has a 83.16 defense against a civil action for damages under section 123B.25. 83.17 (b) A school employee, bus driver, or other agent of a 83.18 district who, in the exercise of the person's lawful authority, 83.19 uses reasonable force under the standard in subdivision 1, 83.20 paragraph (b), has a defense against a civil action for damages 83.21 under section 123B.25. 83.22 Subd. 3. [CRIMINAL PROSECUTION.] (a) A teacher who, in the 83.23 exercise of the person's lawful authority, uses reasonable force 83.24 under the standard in subdivision 1, paragraph (a), has a 83.25 defense against a criminal prosecution under section 609.06, 83.26 subdivision 1. 83.27 (b) A school employee, bus driver, or other agent of a 83.28 district who, in the exercise of the person's lawful authority, 83.29 uses reasonable force under the standard in subdivision 1, 83.30 paragraph (b), has a defense against a criminal prosecution 83.31 under section 609.06, subdivision 1. 83.32 Subd. 4. [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 83.33 defense in this section is supplementary to those specified in 83.34 section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 83.35 EFFECTIVE DATE:This section is effective for the 83.36 2000-2001 school year and later. 84.1 Sec. 7. Minnesota Statutes 1998, section 121A.61, 84.2 subdivision 3, is amended to read: 84.3 Subd. 3. [POLICY COMPONENTS.] The policy must include at 84.4 least the following components: 84.5 (a) rules governing student conduct and procedures for 84.6 informing students of the rules; 84.7 (b) the grounds for removal of a student from a class; 84.8 (c) the authority of the classroom teacher to remove 84.9 students from the classroom pursuant to procedures and rules 84.10 established in the district's policy; 84.11 (d) the procedures for removal of a student from a class by 84.12 a teacher, school administrator, or other school district 84.13 employee; 84.14 (e) the period of time for which a student may be removed 84.15 from a class, which may not exceed five class periods for a 84.16 violation of a rule of conduct; 84.17 (f) provisions relating to the responsibility for and 84.18 custody of a student removed from a class; 84.19 (g) the procedures for return of a student to the specified 84.20 class from which the student has been removed; 84.21 (h) the procedures for notifying a student and the 84.22 student's parents or guardian of violations of the rules of 84.23 conduct and of resulting disciplinary actions; 84.24 (i) any procedures determined appropriate for encouraging 84.25 early involvement of parents or guardians in attempts to improve 84.26 a student's behavior; 84.27 (j) any procedures determined appropriate for encouraging 84.28 early detection of behavioral problems; 84.29 (k) any procedures determined appropriate for referring a 84.30 student in need of special education services to those services; 84.31 (1) the procedures for consideration of whether there is a 84.32 need for a further assessment or of whether there is a need for 84.33 a review of the adequacy of a current individual education plan 84.34 of a student with a disability who is removed from class; 84.35 (m) procedures for detecting and addressing chemical abuse 84.36 problems of a student while on the school premises; 85.1 (n) the minimum consequences for violations of the code of 85.2 conduct; and85.3 (o) procedures for immediate and appropriate interventions 85.4 tied to violations of the code; and 85.5 (p) a provision that states that a teacher, school 85.6 employee, school bus driver, or other agent of the school 85.7 district may use reasonable force in compliance with section 85.8 121A.582 and other laws. 85.9 EFFECTIVE DATE:The section is effective for the 2001-2002 85.10 school year and later. 85.11 Sec. 8. Minnesota Statutes 1999 Supplement, section 85.12 122A.18, subdivision 3, is amended to read: 85.13 Subd. 3. [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 85.14 ETHICS.] (a) The commissioner of children, families, and 85.15 learning must issue licenses under its jurisdiction to persons 85.16 the commissioner finds to be qualified and competent for their 85.17 respective positions under the rules it adopts. The 85.18 commissioner of children, families, and learning may develop, by 85.19 rule, a code of ethics for supervisory personnel covering 85.20 standards of professional practices, including areas of ethical 85.21 conduct and professional performance and methods of enforcement. 85.22 (b) Notwithstanding Minnesota Rules, part 3512.2500, the 85.23 commissioner of children, families, and learning may approve a 85.24 licensure program offered by an entity other than a college or 85.25 university in administration and supervision, if the program 85.26 meets the requirements for approval and continuation that apply 85.27 to colleges and universities. 85.28 Sec. 9. Minnesota Statutes 1999 Supplement, section 85.29 122A.20, subdivision 1, is amended to read: 85.30 Subdivision 1. [GROUNDS FOR REVOCATION, SUSPENSION, OR 85.31 DENIAL.] (a) The board of teaching or the commissioner, with the 85.32 advice from an advisory task force of supervisory personnel 85.33 established under section 15.014, whichever has jurisdiction 85.34 over a teacher's licensure, may, on the written complaint of the 85.35 school board employing a teacher, a teacher organization, or any 85.36 other interested person, refuse to issue, refuse to renew, 86.1 suspend, or revoke a teacher's license to teach for any of the 86.2 following causes: 86.3 (1) Immoral character or conduct; 86.4 (2) Failure, without justifiable cause, to teach for the 86.5 term of the teacher's contract; 86.6 (3) Gross inefficiency or willful neglect of duty; or86.7 (4) Knowingly altering, counterfeiting, or misreporting 86.8 student assessment information required under chapter 120B, with 86.9 the intent to deceive; 86.10 (4)(5) Failure to meet licensure requirements; or 86.11 (5)(6) Fraud or misrepresentation in obtaining a license. 86.12 The written complaint must specify the nature and character 86.13 of the charges. 86.14 (b) The board of teaching or the commissioner of children, 86.15 families, and learning whichever has jurisdiction over a 86.16 teacher's licensure, shall refuse to issue, refuse to renew, or 86.17 automatically revoke a teacher's license to teach without the 86.18 right to a hearing upon receiving a certified copy of a 86.19 conviction showing that the teacher has been convicted of child 86.20 abuse, as defined in section 609.185, or sexual abuse under 86.21 section 609.342, 609.343, 609.344, 609.345, 609.3451, 86.22 subdivision 3, or 617.23, subdivision 3, or under a similar law 86.23 of another state or the United States. The board shall send 86.24 notice of this licensing action to the district in which the 86.25 teacher is currently employed. 86.26 (c) A person whose license to teach has been revoked, not 86.27 issued, or not renewed under paragraph (b), may petition the 86.28 board to reconsider the licensing action if the person's 86.29 conviction for child abuse or sexual abuse is reversed by a 86.30 final decision of the court of appeals or the supreme court or 86.31 if the person has received a pardon for the offense. The 86.32 petitioner shall attach a certified copy of the appellate 86.33 court's final decision or the pardon to the petition. Upon 86.34 receiving the petition and its attachment, the board shall 86.35 schedule and hold a disciplinary hearing on the matter under 86.36 section 214.10, subdivision 2, unless the petitioner waives the 87.1 right to a hearing. If the board finds that, notwithstanding 87.2 the reversal of the petitioner's criminal conviction or the 87.3 issuance of a pardon, the petitioner is disqualified from 87.4 teaching under paragraph (a), clause (1), the board shall affirm 87.5 its previous licensing action. If the board finds that the 87.6 petitioner is not disqualified from teaching under paragraph 87.7 (a), clause (1), it shall reverse its previous licensing action. 87.8 (d) For purposes of this subdivision, the board of teaching 87.9 is delegated the authority to suspend or revoke coaching 87.10 licenses. 87.11 Sec. 10. Minnesota Statutes 1999 Supplement, section 87.12 122A.23, is amended to read: 87.13 122A.23 [APPLICANTS TRAINED IN OTHER STATES.] 87.14 Subdivision 1. [PREPARATION EQUIVALENCY.] When a license 87.15 to teach is authorized to be issued to any holder of a diploma 87.16 or a degree of a Minnesota state university, or of the 87.17 University of Minnesota, or of a liberal arts university, or a 87.18 technical training institution, such license may also, in the 87.19 discretion of the board of teaching or the commissioner of 87.20 children, families, and learning, whichever has jurisdiction, be 87.21 issued to any holder of a diploma or a degree of a teacher 87.22 training institution of equivalent rank and standing of any 87.23 other state. The diploma or degree must be granted by virtue of 87.24 the completion of a course in teacher preparation essentially 87.25 equivalent in content to that required by such Minnesota state 87.26 university or the University of Minnesota or a liberal arts 87.27 university in Minnesota or a technical training institution as 87.28 preliminary to the granting of a diploma or a degree of the same 87.29 rank and class. 87.30 Subd. 2. [APPLICANTS LICENSED IN OTHER STATES.] (a) If an 87.31 applicant for a Minnesota teaching license holds at least a 87.32 baccalaureate degree from a regionally accredited college or 87.33 university, and holds or has held a similar teaching license in 87.34 another state, and the license was issued based on successful 87.35 completion of teacher preparation program approved by the 87.36 issuing state, including field-specific methods of teaching and 88.1 student teaching or essentially equivalent experience, then the 88.2 board of teaching shall issue the license using the criteria in 88.3 paragraphs (b) to (e). 88.4 (b) If the applicant has successfully completed all 88.5 examinations and human relations preparation components required 88.6 by the board of teaching and holds or has held a license in 88.7 another state to teach the same content field and grade levels 88.8 equal to, greater than, or not more than one year less than a 88.9 similar license available in Minnesota, then the board shall 88.10 issue a license identical to the license it would issue to an 88.11 applicant who has successfully completed those requirements in a 88.12 Minnesota teacher preparation program. 88.13 (c) If the applicant holds or has held a teaching license 88.14 issued by another state to teach the same content field and 88.15 grade levels equal to, greater than, or not more than one year 88.16 less than a similar license available in Minnesota, but has not 88.17 successfully completed all examinations and human relations 88.18 preparation components required by the board of teaching, then 88.19 the board shall issue a temporary license according to board 88.20 rules to provide the applicant time to complete required 88.21 examination and human relations components. 88.22 (d) If the applicant has successfully completed all 88.23 examinations and human relations preparation components required 88.24 by the board of teaching and holds a license issued by another 88.25 state based on successful completion of a teacher preparation 88.26 program approved by the issuing state but has not completed 88.27 student teaching or equivalent experience, field-specific 88.28 methods of teaching, or both, then the board shall issue a 88.29 temporary license according to board rules to provide the 88.30 applicant time to complete student teaching or equivalent 88.31 experience, field-specific methods of teaching, or both. An 88.32 applicant may fulfill the student teaching or equivalent 88.33 experience requirement, field-specific methods of teaching 88.34 requirement, or both, by successfully completing a year in a 88.35 school district mentorship program consistent with the standards 88.36 of effective practice adopted by the board of teaching and the 89.1 Minnesota graduation requirements. 89.2 (e) If the applicant has successfully completed all 89.3 examinations and human relations preparation components required 89.4 by the board of teaching and holds or has held a license issued 89.5 by another state, but the license is more limited in the content 89.6 field, grade levels, or both, than a similar Minnesota license, 89.7 then the applicant shall be issued a temporary license valid for 89.8 up to three years for only the content field, grade levels, or 89.9 both, for which the applicant was licensed in the other state, 89.10 to provide time for the applicant to meet full Minnesota 89.11 licensure requirements in the field. 89.12 (f) No applicant shall be issued any temporary license or 89.13 combination of temporary licenses under paragraphs (c) to (e) 89.14 for a period of time exceeding three years. 89.15 (g) No license shall be issued under this subdivision when 89.16 the licensure field requires additional degrees, credentials, or 89.17 licenses that the candidate has not achieved. 89.18 Sec. 11. Minnesota Statutes 1998, section 122A.25, is 89.19 amended by adding a subdivision to read: 89.20 Subd. 2a. [INDIVIDUAL PREAPPROVAL.] (a) An individual not 89.21 licensed by the board of teaching that holds certification, 89.22 credentials, or professional recognition as an expert in a 89.23 specialized method of instruction not typically offered in the 89.24 school program may apply to the board of teaching to be granted 89.25 preapproval as a community expert eligible to teach in a public 89.26 school or charter school under this section. In making its 89.27 determination, the board shall consider only the criteria of 89.28 subdivision 2, clause (1). 89.29 (b) A preapproved community expert under this subdivision 89.30 may be hired to teach by a school district or charter school 89.31 only if the school district or charter school applies under 89.32 subdivision 2 and the board of teaching approves the application 89.33 after considering the criteria of subdivision 2, clauses (2) to 89.34 (7). 89.35 Sec. 12. Minnesota Statutes 1998, section 122A.25, is 89.36 amended by adding a subdivision to read: 90.1 Subd. 2b. [BACKGROUND CHECK.] The school district or 90.2 charter school shall request a criminal history background check 90.3 under section 123B.03 on a hired nonlicensed community expert 90.4 and verify the completion of the criminal history background 90.5 check to the board of teaching. 90.6 Sec. 13. Minnesota Statutes 1998, section 122A.25, is 90.7 amended by adding a subdivision to read: 90.8 Subd. 2c. [EXCEPTION.] A current or former faculty member 90.9 in a board of teaching approved teacher preparation program 90.10 shall be automatically approved as a nonlicensed community 90.11 expert to teach courses in or otherwise serve a school district 90.12 or charter school in the individual's field of expertise upon a 90.13 district or charter school's registering the intention to employ 90.14 that current or former faculty member under this subdivision. 90.15 Sec. 14. Minnesota Statutes 1998, section 122A.25, 90.16 subdivision 3, is amended to read: 90.17 Subd. 3. [APPROVAL OF PLAN.] The board of teaching shall 90.18 approve or disapprove an application within 60 days of receiving 90.19 it from a school district or, charter school, or individual. 90.20 Sec. 15. Minnesota Statutes 1998, section 123B.04, 90.21 subdivision 2, is amended to read: 90.22 Subd. 2. [AGREEMENT.] (a) Either the school board or the 90.23 school site decision-making team may request that the school 90.24 board enter into an agreement with a school site decision-making 90.25 team concerning the governance, management, or control of the 90.26 school. A school site decision-making team may include the 90.27 school principal, teachers in the school or their designee, 90.28 other employees in the school, parents of pupils in the school, 90.29 representatives of pupils in the school, or other members in the 90.30 community. The school site decision-making team shall include 90.31 the school principal or other person having general control and 90.32 supervision of the school. The site decision-making team must 90.33 reflect the diversity of the education site. No more than 90.34 one-half of the members shall be employees of the district, 90.35 unless an employee is the parent of a student enrolled in the 90.36 school site, in which case the employee may elect to serve as a 91.1 parent member of the site team. 91.2 (b) School site decision-making agreements must delegate 91.3 powers, duties, and broad management responsibilities to site 91.4 teams and involve staff members, students as appropriate, and 91.5 parents in decision making. 91.6 (c) An agreement shall include a statement of powers, 91.7 duties, responsibilities, and authority to be delegated to and 91.8 within the site. 91.9 (d) An agreement may include: 91.10 (1) an achievement contract according to subdivision 4; 91.11 (2) a mechanism to allow principals, or other persons 91.12 having general control and supervision of the school, to make 91.13 decisions regarding how financial and personnel resources are 91.14 best allocated at the site and from whom goods or services are 91.15 purchased; 91.16 (3) a mechanism to implement parental involvement programs 91.17 under section 124D.895 and to provide for effective parental 91.18 communication and feedback on this involvement at the site 91.19 level; 91.20 (4) a provision that would allow the team to determine who 91.21 is hired into licensed and nonlicensed positions; 91.22 (5) a provision that would allow teachers to choose the 91.23 principal or other person having general control; 91.24 (6) an amount of revenue allocated to the site under 91.25 subdivision 3; and 91.26 (7) any other powers and duties determined appropriate by 91.27 the board. 91.28 The school board of the district remains the legal employer 91.29 under clauses (4) and (5). 91.30 (e) Any powers or duties not delegated to the school site 91.31 management team in the school site management agreement shall 91.32 remain with the school board. 91.33 (f) Approved agreements shall be filed with the 91.34 commissioner. If a school board denies a request to enter into 91.35 a school site management agreement, it shall provide a copy of 91.36 the request and the reasons for its denial to the commissioner. 92.1 EFFECTIVE DATE:This section is effective July 1, 2000. 92.2 Sec. 16. Minnesota Statutes 1998, section 123B.143, 92.3 subdivision 1, is amended to read: 92.4 Subdivision 1. [CONTRACT; DUTIES.] All districts 92.5 maintaining a classified secondary school must employ a 92.6 superintendent who shall be an ex officio nonvoting member of 92.7 the school board. The authority for selection and employment of 92.8 a superintendent must be vested in the board in all cases. An 92.9 individual employed by a board as a superintendent shall have an 92.10 initial employment contract for a period of time no longer than 92.11 three years from the date of employment. Any subsequent 92.12 employment contract must not exceed a period of three years. A 92.13 board, at its discretion, may or may not renew an employment 92.14 contract. A board must not, by action or inaction, extend the 92.15 duration of an existing employment contract. Beginning 365 days 92.16 prior to the expiration date of an existing employment contract, 92.17 a board may negotiate and enter into a subsequent employment 92.18 contract to take effect upon the expiration of the existing 92.19 contract. A subsequent contract must be contingent upon the 92.20 employee completing the terms of an existing contract. If a 92.21 contract between a board and a superintendent is terminated 92.22 prior to the date specified in the contract, the board may not 92.23 enter into another superintendent contract with that same 92.24 individual that has a term that extends beyond the date 92.25 specified in the terminated contract. A board may terminate a 92.26 superintendent during the term of an employment contract for any 92.27 of the grounds specified in section 122A.40, subdivision 9 or 13. 92.28 A superintendent shall not rely upon an employment contract with 92.29 a board to assert any other continuing contract rights in the 92.30 position of superintendent under section 122A.40. 92.31 Notwithstanding the provisions of sections 122A.40, subdivision 92.32 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 92.33 individual shall have a right to employment as a superintendent 92.34 based on order of employment in any district. If two or more 92.35 districts enter into an agreement for the purchase or sharing of 92.36 the services of a superintendent, the contracting districts have 93.1 the absolute right to select one of the individuals employed to 93.2 serve as superintendent in one of the contracting districts and 93.3 no individual has a right to employment as the superintendent to 93.4 provide all or part of the services based on order of employment 93.5 in a contracting district. The superintendent of a district 93.6 shall perform the following: 93.7 (1) visit and supervise the schools in the district, report 93.8 and make recommendations about their condition when advisable or 93.9 on request by the board; 93.10 (2) recommend to the board employment and dismissal of 93.11 teachers; 93.12 (3) superintend school grading practices and examinations 93.13 for promotions; 93.14 (4) make reports required by the commissioner; 93.15 (5) by January 10, submit an annual report to the 93.16 commissioner in a manner prescribed by the commissioner, in 93.17 consultation with school districts, identifying the expenditures 93.18 that the district requires to ensure an 80 percent and a 90 93.19 percent student passage rate on the basic standards test taken 93.20 in the eighth grade, identifying the amount of expenditures that 93.21 the district requires to ensure a 99 percent student passage 93.22 rate on the basic standards test by 12th grade, and how much the 93.23 district is cross-subsidizing programs with special education, 93.24 compensatorybasic skills, and general education revenue; and 93.25 (6) perform other duties prescribed by the board. 93.26 Sec. 17. Minnesota Statutes 1998, section 123B.52, is 93.27 amended by adding a subdivision to read: 93.28 Subd. 6. [DISPOSING OF SURPLUS SCHOOL 93.29 COMPUTERS.] Notwithstanding section 471.345 governing school 93.30 district contracts made upon sealed bid or otherwise complying 93.31 with the requirements for competitive bidding, other provisions 93.32 of this section governing school district contracts or other law 93.33 to the contrary, a school district under this subdivision may 93.34 dispose of a surplus school computer and related equipment if 93.35 the district disposes of the surplus property by conveying the 93.36 property and title to: 94.1 (1) another school district; 94.2 (2) the state department of corrections; 94.3 (3) the board of trustees of the Minnesota state colleges 94.4 and universities; or 94.5 (4) the family of a student residing in the district whose 94.6 total family income meets the federal definition of poverty. 94.7 EFFECTIVE DATE:This section is effective the day 94.8 following final enactment. 94.9 Sec. 18. Minnesota Statutes 1998, section 123B.77, 94.10 subdivision 3, is amended to read: 94.11 Subd. 3. [STATEMENT FOR COMPARISON AND CORRECTION.] By 94.12 November 30 of the calendar year of the submission of the 94.13 unaudited financial data, the district must provide to the 94.14 commissioner audited financial data for the preceding fiscal 94.15 year. The audit must be conducted in compliance with generally 94.16 accepted governmental auditing standards, the federal Single 94.17 Audit Act, and the Minnesota legal compliance guide issued by 94.18 the office of the state auditor. An audited financial statement 94.19 prepared in a form which will allow comparison with and 94.20 correction of material differences in the unaudited financial 94.21 data shall be submitted to the commissioner and the state 94.22 auditor by December 31. The audited financial statement must 94.23 also provide a statement of assurance pertaining to uniform 94.24 financial accounting and reporting standards compliance and a 94.25 copy of the management letter submitted to the district by the 94.26 school district's auditor. 94.27 Sec. 19. Minnesota Statutes 1998, section 123B.79, 94.28 subdivision 7, is amended to read: 94.29 Subd. 7. [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 94.30 district may maintain in a designatedreserve for certain 94.31 severance pay account not more than 50 percent of the amount 94.32 necessary to meet the obligations for the portion of severance 94.33 pay that constitutes compensation for accumulated sick leave to 94.34 be used for payment of premiums for group insurance provided for 94.35 former employees by the district. The amount necessary must be 94.36 calculated according to standards established by the advisory95.1 council on uniform financial accounting and reporting95.2 standardsdepartment. 95.3 Sec. 20. Minnesota Statutes 1999 Supplement, section 95.4 123B.83, subdivision 4, is amended to read: 95.5 Subd. 4. [SPECIAL OPERATING PLAN.] (1) If the net negative95.6 unappropriated operatingunreserved general fund balance as95.7 defined in section 126C.01, subdivision 11, calculated in 95.8 accordance with the uniform financial accounting and reporting 95.9 standards for Minnesota school districts, as of June 30 each 95.10 year, is more than 2-1/2 percent of the year's expenditure 95.11 amount, the district must, prior to January 31 of the next 95.12 fiscal year, submit a special operating plan to reduce the 95.13 district's deficit expenditures to the commissioner for 95.14 approval. The commissioner may also require the district to 95.15 provide evidence that the district meets and will continue to 95.16 meet all high school graduation requirements. 95.17 Notwithstanding any other law to the contrary, a district 95.18 submitting a special operating plan to the commissioner under 95.19 this clause which is disapproved by the commissioner must not 95.20 receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 95.21 124D, 125A, 126C, and 127A until a special operating plan of the 95.22 district is so approved. 95.23 (2) A district must receive aids pending the approval of 95.24 its special operating plan under clause (1). A district which 95.25 complies with its approved operating plan must receive aids as 95.26 long as the district continues to comply with the approved 95.27 operating plan. 95.28 Sec. 21. Minnesota Statutes 1998, section 123B.86, 95.29 subdivision 1, is amended to read: 95.30 Subdivision 1. [GENERAL PROVISIONS.] A district shall 95.31 provide equal transportation within the district for all school 95.32 children to any school when transportation is deemed necessary 95.33 by the school board because of distance or traffic condition in 95.34 like manner and form as provided in sections 123B.88 and 124.22395.35 123B.92, when applicable. 95.36 Sec. 22. Minnesota Statutes 1998, section 123B.88, 96.1 subdivision 3, is amended to read: 96.2 Subd. 3. [TRANSPORTATION SERVICES CONTRACTS.] The board 96.3 may contract for the furnishing of authorized transportation 96.4 under rules established by the commissionersection 123B.52, and 96.5 may purchase gasoline and furnish same to a contract carrier for 96.6 use in the performance of a contract with the school district 96.7 for transportation of school children to and from school. 96.8 Sec. 23. Minnesota Statutes 1998, section 123B.90, 96.9 subdivision 1, is amended to read: 96.10 Subdivision 1. [SCHOOL BUS SAFETY WEEK.] The third week of 96.11 school is designated as school bus safety week. 96.12 A school board may designate one day of school bus safety96.13 week as school bus driver day.96.14 EFFECTIVE DATE:This section is effective the day 96.15 following final enactment. 96.16 Sec. 24. Minnesota Statutes 1999 Supplement, section 96.17 123B.90, subdivision 2, is amended to read: 96.18 Subd. 2. [STUDENT TRAINING.] (a) Each district must 96.19 provide public school pupils enrolled in grades kindergarten 96.20 through 10 with age-appropriate school bus safety training. The 96.21 training must be results-oriented and shall consist of both 96.22 classroom instruction and practical training using a school 96.23 bus. Upon completing the training, a student shall be able to 96.24 demonstrate knowledge and understanding of at least the 96.25 following competencies and concepts: 96.26 (1) transportation by school bus is a privilege and not a 96.27 right; 96.28 (2) district policies for student conduct and school bus 96.29 safety; 96.30 (3) appropriate conduct while on the school bus; 96.31 (4) the danger zones surrounding a school bus; 96.32 (5) procedures for safely boarding and leaving a school 96.33 bus; 96.34 (6) procedures for safe street or road crossing; 96.35 (7) school bus evacuation and other emergency procedures; 96.36 and 97.1 (8) appropriate training on the use of lap belts or lap and 97.2 shoulder belts, if the district uses buses equipped with lap 97.3 belts or lap and shoulder belts. 97.4 (b) Each nonpublic school located within the district must 97.5 provide all nonpublic school pupils enrolled in grades 97.6 kindergarten through 10 who are transported by school bus at 97.7 public expense and attend school within the district's 97.8 boundaries with training as required in paragraph (a). The 97.9 school district shall make a bus available for the practical 97.10 training if the district transports the nonpublic students. 97.11 Each nonpublic school shall provide the instruction. 97.12 (c) All students enrolled in grades kindergarten through 3 97.13 who are transported by school bus and are enrolled during the 97.14 first or second week of school must demonstrate achievement of 97.15 the school bus safety training competencies by the end of the 97.16 third week of school. All students enrolled in grades 4 through 97.17 10 who are transported by school bus and are enrolled during the 97.18 first or second week of school must demonstrate achievement of 97.19 the competencies by the end of the sixth week of school. 97.20 Students enrolled in grades kindergarten through 10 who enroll 97.21 in a school after the second week of school and are transported 97.22 by school bus shall undergo school bus safety training and 97.23 demonstrate achievement of the school bus safety competencies 97.24 within four weeks of the first day of attendance. The pupil97.25 school transportation safety director in each district must 97.26 certify to the commissioner annually that all students 97.27 transported by school bus within the district have 97.28 satisfactorily demonstrated knowledge and understanding of the 97.29 school bus safety competencies according to this section or 97.30 provide an explanation for a student's failure to demonstrate 97.31 the competencies. The principal or other chief administrator of 97.32 each nonpublic school must certify annually to the publicschool 97.33 transportation safety director of the district in which the 97.34 school is located that all of the school's students transported 97.35 by school bus at public expense have received training. A 97.36 district may deny transportation to a student who fails to 98.1 demonstrate the competencies, unless the student is unable to 98.2 achieve the competencies due to a disability, or to a student 98.3 who attends a nonpublic school that fails to provide training as 98.4 required by this subdivision. 98.5 (d) A district and a nonpublic school with students 98.6 transported by school bus at public expense must, to the extent 98.7 possible, provide kindergarten pupils with bus safety training 98.8 before the first day of school. 98.9 (e) A district and a nonpublic school with students 98.10 transported by school bus at public expense must also provide 98.11 student safety education for bicycling and pedestrian safety, 98.12 for students enrolled in grades kindergarten through 5. 98.13 (f) A district and a nonpublic school with students 98.14 transported by school bus at public expense must make reasonable 98.15 accommodations for the school bus, bicycle, and pedestrian 98.16 safety training of pupils known to speak English as a second 98.17 language and pupils with disabilities. 98.18 Sec. 25. Minnesota Statutes 1999 Supplement, section 98.19 123B.91, subdivision 1, is amended to read: 98.20 Subdivision 1. [COMPREHENSIVE POLICY.] (a) Each district 98.21 mustshall develop and implement a comprehensive, written policy 98.22 governing pupil transportation safety, including transportation 98.23 of nonpublic school students, when applicable. The 98.24 policy shall, at minimum, must contain: 98.25 (1) provisions for appropriate student bus safety training 98.26 under section 123B.90; 98.27 (2) rules governing student conduct on school buses and in 98.28 school bus loading and unloading areas; 98.29 (3) a statement of parent or guardian responsibilities 98.30 relating to school bus safety; 98.31 (4) provisions for notifying students and parents or 98.32 guardians of their responsibilities and the rules, including the 98.33 district's seat belt policy, if applicable; 98.34 (5) an intradistrict system for reporting school bus 98.35 accidents or misconduct and a system for dealing with local law 98.36 enforcement officials in cases of criminal conduct on a school 99.1 bus; 99.2 (6) a discipline policy to address violations of school bus 99.3 safety rules, including procedures for revoking a student's bus 99.4 riding privileges in cases of serious or repeated misconduct; 99.5 (7) a system for integrating school bus misconduct records 99.6 with other discipline records; 99.7 (8) a statement of bus driver duties; 99.8 (9) planned expenditures for safety activities under99.9 section 123B.89 and,where applicable, provisions governing bus 99.10 monitor qualifications, training, and duties; 99.11 (10) rules governing the use and maintenance of type III 99.12 vehicles, drivers of type III vehicles, qualifications to drive 99.13 a type III vehicle, qualifications for a type III vehicle, and 99.14 the circumstances under which a student may be transported in a 99.15 type III vehicle; 99.16 (11) operating rules and procedures; 99.17 (12) provisions for annual bus driver in-service training 99.18 and evaluation; 99.19 (13) emergency procedures; 99.20 (14) a system for maintaining and inspecting equipment; 99.21 (15) requirements of the school district, if any, that 99.22 exceed state law minimum requirements for school bus operations; 99.23 and 99.24 (16) requirements for basic first aid training, which must 99.25 include the Heimlich maneuver and procedures for dealing with 99.26 obstructed airways, shock, bleeding, and seizures. 99.27 (b) Districts are encouraged to use the model policy 99.28 developed by the Minnesota school boards association, the 99.29 department of public safety, and the department of children, 99.30 families, and learning, as well as the current edition of the 99.31 "National Standards for School Buses and Operations99.32 Transportation," published by the National Safety Council,in 99.33 developing safety policies. Each district shall review its 99.34 policy annually and make appropriate amendments, which must be99.35 submitted to the school bus safety advisory committee within one99.36 month of approval by the school boardto ensure that it conforms 100.1 to law. 100.2 EFFECTIVE DATE:This section is effective the day 100.3 following final enactment. 100.4 Sec. 26. Minnesota Statutes 1998, section 124D.03, 100.5 subdivision 1, is amended to read: 100.6 Subdivision 1. [ESTABLISHMENT.] (a) An enrollment options 100.7 program is established to enable any pupil to attend a school or 100.8 program in a district in which the pupil does not reside, 100.9 subject to the limitations in this section. 100.10 (b) A district may refuse to allow a pupil who is expelled 100.11 under section 121A.45 to enroll during the term of the expulsion 100.12 if the student was expelled for: 100.13 (1) possessing a dangerous weapon, as defined by United 100.14 States Code, title 18, section 930, paragraph (g)(2), at school 100.15 or a school function; 100.16 (2) possessing or using an illegal drug at school or a 100.17 school function; 100.18 (3) selling or soliciting the sale of a controlled 100.19 substance while at school or a school function; or 100.20 (4) committing a third-degree assault as described in 100.21 section 609.223, subdivision 1. 100.22 EFFECTIVE DATE:This section is effective for the 100.23 2000-2001 school year and later. 100.24 Sec. 27. Minnesota Statutes 1998, section 124D.081, 100.25 subdivision 6, is amended to read: 100.26 Subd. 6. [PREPAREDNESS REVENUE.] (a) A qualifying school 100.27 district is eligible for first-grade preparedness revenue equal 100.28 to the basic formula allowance for that year times the number of 100.29 children five years of age or older enrolled in a kindergarten 100.30 program at the site on October 1 of the previous year times .53. 100.31 (b) This revenue must supplement and not replace 100.32 compensatory revenue that the district uses for the same or 100.33 similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 100.34 and 127A. 100.35 (c) A pupil enrolled in the first grade preparedness 100.36 program at a qualifying school site is eligible for 101.1 transportation under section 123B.88, subdivision 1. 101.2 (d) First grade preparedness revenue paid to a charter 101.3 school for which a school district is providing transportation 101.4 according to section 124D.10, subdivision 16, shall be decreased 101.5 by an amount equal to the product of $170the formula allowance 101.6 according to section 126C.10, subdivision 2, times .0485 times 101.7 the pupil units calculated according to paragraph (a). This 101.8 amount shall be paid to the school district for transportation 101.9 costs. 101.10 Sec. 28. Minnesota Statutes 1999 Supplement, section 101.11 124D.10, subdivision 3, is amended to read: 101.12 Subd. 3. [SPONSOR.] A school board, intermediate school 101.13 district school board, education districtsdistrict organized 101.14 under sections 123A.15 to 123A.19, charitable organization under 101.15 section 501(c) (3) of the Internal Revenue Code of 1986 that is 101.16 a member of the Minnesota council on foundations and reports an 101.17 end of year fund balance of at least $3,000,000, Minnesota 101.18 private college ,that grants two- or four-year degrees and is 101.19 registered with the higher education services office under 101.20 chapter 136A, community college, state university, technical 101.21 college, or the University of Minnesota may sponsor one or more 101.22 charter schools. 101.23 EFFECTIVE DATE:This section is effective the day 101.24 following final enactment. 101.25 Sec. 29. Minnesota Statutes 1999 Supplement, section 101.26 124D.10, subdivision 4, is amended to read: 101.27 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 101.28 authorize one or more licensed teachers under section 122A.18, 101.29 subdivision 1, to operate a charter school subject to approval 101.30 by the commissioner. A board must vote on charter school 101.31 application for sponsorship no later than 90 days after 101.32 receiving the application. After 90 days, the applicant may 101.33 apply to the commissioner. If a board elects not to sponsor a 101.34 charter school, the applicant may appeal the board's decision to 101.35 the commissioner. The appeal must be made no later than 90 days 101.36 after the school board elects not to sponsor a charter school. 102.1 If the commissioner authorizes the school, the commissioner must 102.2 sponsor the school according to this section. The school must 102.3 be organized and operated as a cooperative under chapter 308A or 102.4 nonprofit corporation under chapter 317A. 102.5 (b) Before the operators may form and operate a school, the 102.6 sponsor must file an affidavit with the commissioner stating its 102.7 intent to authorize a charter school. The affidavit must state 102.8 the terms and conditions under which the sponsor would authorize 102.9 a charter school. The commissioner must approve or disapprove 102.10 the sponsor's proposed authorization within 60 days of receipt 102.11 of the affidavit. Failure to obtain commissioner approval 102.12 precludes a sponsor from authorizing the charter school that was 102.13 the subject of the affidavit. 102.14 (c) The operators authorized to organize and operate a 102.15 school must hold an election for members of the school's board 102.16 of directors in a timely manner after the school is operating. 102.17 Any staff members who are employed at the school, including 102.18 teachers providing instruction under a contract with a 102.19 cooperative, and all parents of children enrolled in the school 102.20 may participate in the election. Licensed teachers employed at 102.21 the school, including teachers providing instruction under a 102.22 contract with a cooperative, must be a majority of the members 102.23 of the board of directors, unless the commissioner waives the 102.24 requirement for the school or the licensed teachers employed at 102.25 the school elect to constitute a majority that consists of both 102.26 teachers employed at the school and parents of children enrolled 102.27 in the school with a minimum of one teacher director and one 102.28 parent director. A provisional board may operate before the 102.29 election of the school's board of directors. Board of director 102.30 meetings must comply with section 471.705. 102.31 (d) The granting or renewal of a charter by a sponsoring 102.32 entity must not be conditioned upon the bargaining unit status 102.33 of the employees of the school. 102.34 Sec. 30. Minnesota Statutes 1999 Supplement, section 102.35 124D.10, subdivision 8, is amended to read: 102.36 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 103.1 school shall meet all applicable state and local health and 103.2 safety requirements. 103.3 (b) A school sponsored by a school board may be located in 103.4 any district, unless the school board of the district of the 103.5 proposed location disapproves by written resolution. If such a 103.6 board denies a request to locate within its boundaries a charter 103.7 school sponsored by another school board, the sponsoring school 103.8 board may appeal to the commissioner. If the commissioner 103.9 authorizes the school, the commissioner must sponsor the school. 103.10 (c) A charter school must be nonsectarian in its programs, 103.11 admission policies, employment practices, and all other 103.12 operations. A sponsor may not authorize a charter school or 103.13 program that is affiliated with a nonpublic sectarian school or 103.14 a religious institution. 103.15 (d) Charter schools must not be used as a method of 103.16 providing education or generating revenue for students who are 103.17 being home-schooled. 103.18 (e) The primary focus of a charter school must be to 103.19 provide a comprehensive program of instruction for at least one 103.20 grade or age group from five through 18 years of age. 103.21 Instruction may be provided to people younger than five years 103.22 and older than 18 years of age. 103.23 (f) A charter school may not charge tuition. 103.24 (g) A charter school is subject to and must comply with 103.25 chapter 363 and section 121A.04. 103.26 (h) A charter school is subject to and must comply with The 103.27 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 103.28 Minnesota Public School Fee law, sections 123B.34 to 123B.39. 103.29 (i) A charter school is subject to the same financial 103.30 audits, audit procedures, and audit requirements as a district. 103.31 The audit must be consistentin compliance with the requirements 103.32 of sections 123B.75 to 123B.83, except to the extent deviations 103.33 are necessary because of the program at the school. The 103.34 department of children, families, and learning, state auditor, 103.35 or legislative auditor may conduct financial, program, or 103.36 compliance audits. 104.1 (j) A charter school is a district for the purposes of tort 104.2 liability under chapter 466. 104.3 EFFECTIVE DATE:This section is effective the day 104.4 following final enactment. 104.5 Sec. 31. Minnesota Statutes 1998, section 124D.10, 104.6 subdivision 9, is amended to read: 104.7 Subd. 9. [ADMISSION REQUIREMENTS.] A charter school may 104.8 limit admission to: 104.9 (1) pupils within an age group or grade level; 104.10 (2) people who are eligible to participate in the 104.11 graduation incentives program under section 124D.68; or 104.12 (3) residents of a specific geographic area where the 104.13 percentage of the population of non-Caucasian people of that 104.14 area is greater than the percentage of the non-Caucasian 104.15 population in the congressional district in which the geographic 104.16 area is located, and as long as the school reflects the racial 104.17 and ethnic diversity of the specific area. 104.18 A charter school shall enroll an eligible pupil who submits 104.19 a timely application, unless the number of applications exceeds 104.20 the capacity of a program, class, grade level, or building. In 104.21 this case, pupils must be accepted by lot. If a charter school 104.22 is the only school located in a town serving pupils within a 104.23 particular grade level, then pupils that are residents of the 104.24 town must be given preference for enrollment before accepting 104.25 pupils by lot. If a pupil lives within two miles of a charter 104.26 school and the next closest public school is more than five 104.27 miles away, the charter school must give those pupils preference 104.28 for enrollment before accepting other pupils by lot. 104.29 A charter school shall give preference for enrollment to a 104.30 sibling of an enrolled pupil and to a foster child of that 104.31 pupil's parents before accepting other pupils by lot. 104.32 A charter school may not limit admission to pupils on the 104.33 basis of intellectual ability, measures of achievement or 104.34 aptitude, or athletic ability. 104.35 Sec. 32. Minnesota Statutes 1999 Supplement, section 104.36 124D.10, subdivision 11, is amended to read: 105.1 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 105.2 charter school must employ or contract with necessary teachers, 105.3 as defined by section 122A.15, subdivision 1, who hold valid 105.4 licenses to perform the particular service for which they are 105.5 employed in the school. The charter school's state aid may be 105.6 reduced under section 127A.42 if the school employs a teacher 105.7 who is not appropriately licensed or approved by the board of 105.8 teaching. The school may employ necessary employees who are not 105.9 required to hold teaching licenses to perform duties other than 105.10 teaching and may contract for other services. The school may 105.11 discharge teachers and nonlicensed employees. A person, without 105.12 holding a valid administrator's license, may perform 105.13 administrative, supervisory, or instructional leadership duties. 105.14 The board of directors also shall decide matters related to 105.15 the operation of the school, including budgeting, curriculum and 105.16 operating procedures. 105.17 Sec. 33. Minnesota Statutes 1999 Supplement, section 105.18 124D.10, subdivision 15, is amended to read: 105.19 Subd. 15. [REVIEW AND COMMENT.] The department must review 105.20 and comment on the evaluation, by the chartering school district105.21 sponsor, of the performance of a charter school before the 105.22 charter school's contract is renewed. A sponsor shall monitor 105.23 and evaluate the fiscal and student performance of the school, 105.24 and may for this purpose annually assess the school up to $10 105.25 per student up to a maximum of $3,500. The information fromfor 105.26 the review and comment shall be reported by the sponsor to the 105.27 commissioner of children, families, and learning in a timely 105.28 manner. Periodically, the commissioner shall report trends or 105.29 suggestions based on the evaluation of charter school contracts 105.30 to the education committees of the state legislature. 105.31 Sec. 34. Minnesota Statutes 1998, section 124D.10, 105.32 subdivision 20, is amended to read: 105.33 Subd. 20. [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 105.34 teacher employed by a district makes a written request for an 105.35 extended leave of absence to teach at a charter school whether 105.36 as an employee of the school, as an employee of a cooperative or 106.1 other teacher controlled professional association providing 106.2 instructional services to the school, or in any other capacity, 106.3 the district must grant the leave. The district must grant a 106.4 leave for any number of years requested by the teacher, and must 106.5 extend the leave at the teacher's request. The district may 106.6 require that the request for a leave or extension of leave be 106.7 made up to 90 days before the teacher would otherwise have to 106.8 report for duty. Except as otherwise provided in this 106.9 subdivision and except for section 122A.46, subdivision 7, the 106.10 leave is governed by section 122A.46, including, but not limited 106.11 to, reinstatement, notice of intention to return, seniority, 106.12 salary, and insurance. 106.13 During a leave, the teacher may continue to aggregate 106.14 benefits and credits in the teachers' retirement association 106.15 account by paying both the employer and employee contributions 106.16 based upon the annual salary of the teacher for the last full 106.17 pay period before the leave began. The retirement association 106.18 may impose reasonable requirements to efficiently administer 106.19 this subdivision. 106.20 Sec. 35. Minnesota Statutes 1999 Supplement, section 106.21 124D.10, subdivision 23, is amended to read: 106.22 Subd. 23. [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 106.23 SCHOOL CONTRACT.] (a) The duration of the contract with a 106.24 sponsor must be for the term contained in the contract according 106.25 to subdivision 6. The sponsor may or may not renew a contract 106.26 at the end of the term for any ground listed in paragraph (b). 106.27 A sponsor may unilaterally terminate a contract during the term 106.28 of the contract for any ground listed in paragraph (b). At 106.29 least 60 days before not renewing or terminating a contract, the 106.30 sponsor shall notify the board of directors of the charter 106.31 school of the proposed action in writing. The notice shall 106.32 state the grounds for the proposed action in reasonable detail 106.33 and that the charter school's board of directors may request in 106.34 writing an informal hearing before the sponsor within 14 days of 106.35 receiving notice of nonrenewal or termination of the contract. 106.36 Failure by the board of directors to make a written request for 107.1 a hearing within the 14-day period shall be treated as 107.2 acquiescence to the proposed action. Upon receiving a timely 107.3 written request for a hearing, the sponsor shall give reasonable 107.4 notice to the charter school's board of directors of the hearing 107.5 date. The sponsor shall conduct an informal hearing before 107.6 taking final action. The sponsor shall take final action to 107.7 renew or not renew a contract by the last day of classes in the 107.8 school year. If the sponsor is a local board, the school's 107.9 board of directors may appeal the sponsor's decision to the 107.10 commissioner. 107.11 (b) A contract may be terminated or not renewed upon any of 107.12 the following grounds: 107.13 (1) failure to meet the requirements for pupil performance 107.14 contained in the contract; 107.15 (2) failure to meet generally accepted standards of fiscal 107.16 management; 107.17 (3) violations of law; or 107.18 (4) other good cause shown. 107.19 If a contract is terminated or not renewed, the school must 107.20 be dissolved according to the applicable provisions of chapter 107.21 308A or 317A, except when the commissioner approves the decision 107.22 of a different eligible sponsor to authorize the charter school. 107.23 (c) The commissioner, after providing reasonable notice to 107.24 the governing body of a charter school and the existing sponsor, 107.25 and after providing an opportunity for a public hearing, may 107.26 terminate the existing sponsorial relationship if: 107.27 (1) the charter school has a history of financial 107.28 mismanagement; or 107.29 (2) the charter school has a history of repeated violations 107.30 of the law. 107.31 EFFECTIVE DATE:This section is effective the day 107.32 following final enactment. 107.33 Sec. 36. Minnesota Statutes 1999 Supplement, section 107.34 124D.11, subdivision 4, is amended to read: 107.35 Subd. 4. [BUILDING LEASE AID.] When a charter school finds107.36 it economically advantageous to rent or lease a building or land108.1 for any instructional purposes and it determines that the total108.2 operating capital revenue under section 126C.10, subdivision 13,108.3 is insufficient for this purpose, it may apply to the108.4 commissioner for building lease aid for this purpose.Criteria 108.5 for aid approval and revenue uses shall be as defined for the 108.6 building lease levy in section 126C.40, subdivision 1, 108.7 paragraphs (a) and (b). A charter school is eligible for 108.8 building lease aid. Buildings leased by charter schools must 108.9 meet all local and state building codes, state health and safety 108.10 requirements, and federal Americans with Disabilities Act 108.11 requirements. The commissioner shall approve the amount of 108.12 building lease aid. The amount of building lease aid per pupil 108.13 unit served for a charter school for any year shall not exceed108.14 equals the lesser of (a) 90 percent of the approved cost or (b) 108.15 the product of the pupil units served for the current school 108.16 year times $1,500$750. Existing charter schools must apply by 108.17 January 15 of the fiscal year in which the lease applies to be 108.18 considered for this program. The amount of building lease aid 108.19 shall be subject to proration based upon the actual 108.20 appropriation. 108.21 Sec. 37. Minnesota Statutes 1999 Supplement, section 108.22 124D.11, subdivision 6, is amended to read: 108.23 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 108.24 school is eligible to receive other aids, grants, and revenue 108.25 according to chapters 120A to 129C, as though it were a district. 108.26 (b) Notwithstanding paragraph (a), a charter school may not 108.27 receive aid, a grant, or revenue if a levy is required to obtain 108.28 the money, except as otherwise provided in this section. 108.29 (c) Federal aid received by the state must be paid to the 108.30 school, if it qualifies for the aid as though it were a school 108.31 district. 108.32 (d) A charter school may receive money from any source for 108.33 capital facilities needs. In the year-end report to the 108.34 commissioner of children, families, and learning, the charter 108.35 school shall report the total amount of funds received from 108.36 grants and other outside sources. 109.1 (e) Notwithstanding paragraph (a) or (b), a charter school 109.2 is eligiblemay apply for a grant to receive the aid portion of 109.3 integration revenue under section 124D.86, subdivision 3, for 109.4 enrolled students who are residents of a district that is 109.5 eligible for integration revenue if the enrollment of the pupil109.6 in the charter school contributes to desegregation or109.7 integration purposes. The commissioner shall determine grant 109.8 recipients and may adopt application guidelines. The grants 109.9 must be competitively determined and must demonstrate that the 109.10 enrollment of pupils in the charter school contributes to 109.11 desegregation or integration purposes as determined by the 109.12 commissioner. If the charter school has elected not to provide 109.13 transportation under section 124D.10, subdivision 16, the aid 109.14 shall be reduced by the amount per pupil unit specified for the 109.15 district where the charter school is located under section 109.16 123B.92, subdivision 8. 109.17 EFFECTIVE DATE:This section is effective the day 109.18 following final enactment. 109.19 Sec. 38. Minnesota Statutes 1998, section 124D.128, 109.20 subdivision 4, is amended to read: 109.21 Subd. 4. [TRANSPORTATION.] A district must report data to 109.22 the department as required by the department to account for 109.23 learning year summer transportation expenditures for this109.24 program must be included in nonregular transportation according109.25 to sections 124.225, subdivision 8; and 124.226, subdivision 4. 109.26 Sec. 39. [125B.22] [INTERNET ACCESS FOR STUDENTS.] 109.27 (a) Recognizing the difference between school libraries, 109.28 school computer labs, and school media centers, which serve 109.29 unique educational purposes, and public libraries, which are 109.30 designed for public inquiry, all computers at a school site with 109.31 access to the Internet available for student use must be 109.32 equipped, to the maximum extent possible, to restrict, including 109.33 by use of available software filtering technology, all student 109.34 access to material that is reasonably believed to be obscene or 109.35 child pornography or material harmful to minors under federal or 109.36 state law. 110.1 (b) A school site is not required to purchase filtering 110.2 technology if the school site would incur more than incidental 110.3 expense in making the purchase. 110.4 (c) "School site" means an education site as defined in 110.5 section 123B.04, subdivision 1, or charter school under section 110.6 124D.10. 110.7 Sec. 40. Minnesota Statutes 1999 Supplement, section 110.8 126C.05, subdivision 3, is amended to read: 110.9 Subd. 3. [COMPENSATION REVENUE PUPIL UNITS.] Compensation 110.10 revenue pupil units for fiscal year 1998 and thereafter must be 110.11 computed according to this subdivision. 110.12 (a) The compensation revenue concentration percentage for 110.13 each building in a district equals the product of 100 times the 110.14 ratio of: 110.15 (1) the sum of the number of pupils enrolled in the 110.16 building eligible to receive free lunch plus one-half of the 110.17 pupils eligible to receive reduced priced lunch on October 1 of 110.18 the previous fiscal year; to 110.19 (2) the number of pupils enrolled in the building on 110.20 October 1 of the previous fiscal year. 110.21 (b) The compensation revenue pupil weighting factor for a 110.22 building equals the lesser of one or the quotient obtained by 110.23 dividing the building's compensation revenue concentration 110.24 percentage by 80.0. 110.25 (c) The compensation revenue pupil units for a building 110.26 equals the product of: 110.27 (1) the sum of the number of pupils enrolled in the 110.28 building eligible to receive free lunch and one-half of the 110.29 pupils eligible to receive reduced priced lunch on October 1 of 110.30 the previous fiscal year; times 110.31 (2) the compensation revenue pupil weighting factor for the 110.32 building; times 110.33 (3) .60. 110.34 (d) Notwithstanding paragraphs (a) to (c), for charter 110.35 schools and contracted alternative programs in the first year of 110.36 operation, or for any year of operation when the number of 111.1 pupils eligible for free or reduced lunch in the current year is 111.2 more than 20 percent greater than in the previous year, 111.3 compensation revenue pupil units shall be computed using data 111.4 for the current fiscal year. If the charter school or 111.5 contracted alternative program begins operation after October 1, 111.6 compensatory revenue pupil units shall be computed based on 111.7 pupils enrolled on an alternate date determined by the 111.8 commissioner, and the compensation revenue pupil units shall be 111.9 prorated based on the ratio of the number of days of student 111.10 instruction to 170 days. 111.11 (e) The percentages in this subdivision must be based on 111.12 the count of individual pupils and not on a building average or 111.13 minimum. 111.14 Sec. 41. Minnesota Statutes 1999 Supplement, section 111.15 127A.05, subdivision 6, is amended to read: 111.16 Subd. 6. [SURVEY OF DISTRICTS.] The commissioner of 111.17 children, families, and learning shall survey the state's school 111.18 districts and teacher preparation programs and report to the 111.19 education committees of the legislature by January 15 of each 111.20 odd-numbered year on the status of teacher early retirement 111.21 patterns, the teacher shortage, and the substitute teacher 111.22 shortage, including patterns and shortages in subject areas and 111.23 regions of the state. The report must also include how 111.24 districts are making progress in hiring teachers and substitutes 111.25 in the areas of shortage and a five-year projection of teacher 111.26 demand for each district. 111.27 Sec. 42. [134.77] [INTERNET ACCESS FOR CHILDREN.] 111.28 (a) Recognizing the difference between public libraries, 111.29 which are designed for public inquiry, and school libraries, 111.30 school computer labs, and school media centers, which serve 111.31 unique educational purposes, all public library computers with 111.32 access to the Internet available for use by children under the 111.33 age of 17 must be equipped, to the maximum extent possible, to 111.34 restrict, including by use of available software filtering 111.35 technology, all access by children to material that is 111.36 reasonably believed to be obscene or child pornography or 112.1 material harmful to minors under federal or state law. 112.2 (b) A public library is not required to purchase filtering 112.3 technology if the public library would incur more than 112.4 incidental expense in making the purchase. 112.5 (c) This section does not apply to the libraries of 112.6 post-secondary institutions. 112.7 Sec. 43. Minnesota Statutes 1999 Supplement, section 112.8 148.235, is amended by adding a subdivision to read: 112.9 Subd. 8. [NONPRESCRIPTION DRUGS IN SCHOOLS.] Nothing in 112.10 sections 148.171 to 148.285 prohibits a school nurse from 112.11 providing nonprescription drugs or medications to a pupil in a 112.12 school upon the request of a parent or guardian of the pupil as 112.13 long as the nonprescription drugs or medications are 112.14 administered in accordance with section 121A.22. 112.15 Sec. 44. Minnesota Statutes 1998, section 169.447, is 112.16 amended by adding a subdivision to read: 112.17 Subd. 2a. [PASSENGER LAP AND SHOULDER BELTS.] (a) In 112.18 addition to the requirements in section 169.4501, subdivision 1, 112.19 a school bus may be equipped with an approved lap belt or an 112.20 approved lap and shoulder belt installed for each 112.21 passenger-seating position on the bus. The design and 112.22 installation of lap belts and lap and shoulder belts required 112.23 under this paragraph must meet the standards of the commissioner 112.24 established under paragraph (b). 112.25 (b) The commissioner shall consider all concerns necessary 112.26 to properly integrate lap belts or lap and shoulder belts into 112.27 the current compartmentalization safety system and prescribe 112.28 standards for the design and installation of lap and shoulder 112.29 belts required under paragraph (a). The standards are not 112.30 subject to chapter 14 and are specifically not subject to 112.31 section 14.386. 112.32 (c) This subdivision does not apply to specially equipped 112.33 school buses under section 169.4504. 112.34 (d) A passenger on a school bus equipped with lap belts or 112.35 lap and shoulder belts must use these lap belts or lap and 112.36 shoulder belts unless the passenger, or if the passenger is a 113.1 minor, the passenger's parent or guardian, has notified the 113.2 school district in writing that the passenger does not intend to 113.3 wear the lap belt or lap and shoulder belt. 113.4 (e) In an action for personal injury or wrongful death 113.5 against a school district, a school bus operator under contract 113.6 with a school district, or any agent or employee of a school 113.7 district or operator, or against a volunteer, no such person or 113.8 entity shall be held liable solely because the injured party was 113.9 not wearing a safety belt; provided, however, that nothing 113.10 contained herein shall be construed to grant immunity from 113.11 liability for failure to: 113.12 (1) maintain in operating order any equipment required by 113.13 statute, rule, or school district policy; or 113.14 (2) comply with an applicable statute, rule, or school 113.15 district policy. 113.16 (f) In an action for personal injury or wrongful death, a 113.17 school district, a school bus contract operator, any agent or 113.18 employee of a school district or operator, or a volunteer is not 113.19 liable for failing to assist any child with the adjustment, 113.20 fastening, unfastening, or other use of the lap belt or lap and 113.21 shoulder belt. 113.22 EFFECTIVE DATE:This section is effective the day 113.23 following final enactment. 113.24 Sec. 45. Minnesota Statutes 1998, section 169.448, 113.25 subdivision 3, is amended to read: 113.26 Subd. 3. [HEAD START VEHICLE.] Notwithstanding subdivision 113.27 1, a vehicle used to transport passengersstudents under Public 113.28 Law Number 99-425, the Head Start Act, may be equipped as a 113.29 school bus or Head Start bus. 113.30 EFFECTIVE DATE:This section is effective the day 113.31 following final enactment. 113.32 Sec. 46. Minnesota Statutes 1998, section 171.06, 113.33 subdivision 2, is amended to read: 113.34 Subd. 2. [FEES.] (a) The fees for a license and Minnesota 113.35 identification card are as follows: 113.36 Classified Driver's License D-$18.50 C-$22.50 B-$29.50 A-$37.50 114.1 Classified Under-21 D.L. D-$18.50 C-$22.50 B-$29.50 A-$17.50 114.2 Instruction Permit $ 9.50 114.3 Provisional License $ 9.50 114.4 Duplicate License or 114.5 duplicate identification card $ 8.00 114.6 Minnesota identification card or Under-21 Minnesota 114.7 identification card, other than duplicate, 114.8 except as otherwise provided in section 171.07, 114.9 subdivisions 3 and 3a $12.50 114.10 (b) Notwithstanding paragraph (a), a person who holds a 114.11 provisional license and has a driving record free of (1) 114.12 convictions for a violation of section 169.121, 169.1218, 114.13 169.122, or 169.123, (2) convictions for crash-related moving 114.14 violations, and (3) convictions for moving violations that are 114.15 not crash related, shall have a $3.50 credit toward the fee for 114.16 any classified under-21 driver's license. "Moving violation" 114.17 has the meaning given it in section 171.04, subdivision 1. 114.18 (c) In addition to the driver's license fee required under 114.19 paragraph (a), the registrar shall collect an additional $4 114.20 processing fee from each new applicant or person renewing a 114.21 license with a school bus endorsement to cover the costs for 114.22 processing an applicant's initial and biennial physical 114.23 examination certificate. The department shall not charge these 114.24 applicants any other fee to receive or renew the endorsement. 114.25 EFFECTIVE DATE:This section is effective the day 114.26 following final enactment. 114.27 Sec. 47. Minnesota Statutes 1998, section 171.321, is 114.28 amended to read: 114.29 171.321 [QUALIFICATIONS OF SCHOOL BUS DRIVER.] 114.30 Subdivision 1. [SCHOOL BUS ENDORSEMENT.] (a) No person 114.31 shall drive a school bus when transporting school children to or 114.32 from school or upon a school-related trip or activity without 114.33 having a valid class A, class B, orclass C, or class D driver's 114.34 license with a school bus endorsement except that a person 114.35 possessing a valid driver's license but not a school bus 114.36 endorsement may drive a vehicle with a seating capacity of ten 115.1 or lessfewer persons used as a school bus but not outwardly 115.2 equipped or identified as a school bus. 115.3 (b) Notwithstanding section 171.08, a person who otherwise 115.4 meets the qualifications for a school bus endorsement or 115.5 temporary endorsement under subdivision 3, paragraph (b), may 115.6 drive a school bus for up to 30 days without an endorsement so 115.7 long as the employer of the person: 115.8 (1) has in possession all documentation required for 115.9 issuing the endorsement; and 115.10 (2) has forwarded proof of possession of the documentation 115.11 to the commissioner of public safety. 115.12 Subd. 1a. [RESPONSIBILITY FOR ENDORSEMENT STATUS.] It is 115.13 the responsibility of the commissioner of public safety to issue 115.14 a school bus endorsement to a qualified applicant. When the 115.15 endorsement has been issued, it is the responsibility of the 115.16 individual to whom the endorsement is issued to ensure that the 115.17 endorsement is in effect before the individual operates a school 115.18 bus. The employer of a school bus driver shall check the 115.19 endorsement status when the school bus driver is hired and at 115.20 least twice during each 12-month period thereafter. 115.21 Subd. 2. [RULES.] (a) The commissioner of public safety 115.22 shall prescribe rules governing the physical qualifications of 115.23 school bus drivers and tests required to obtain a school bus 115.24 endorsement. The rules must provide that an applicant for a 115.25 school bus endorsement or renewal is exempt from the physical 115.26 qualifications and medical examination required to operate a 115.27 school bus upon providing evidence of being medically examined 115.28 and certified within the preceding 24 months as physically 115.29 qualified to operate a commercial motor vehicle, pursuant to 115.30 Code of Federal Regulations, title 49, part 391, subpart E, or 115.31 rules of the commissioner of transportation incorporating those 115.32 federal regulations. The commissioner shall accept physical 115.33 examinations for school bus drivers conducted by medical 115.34 examiners authorized as provided by the Code of Federal 115.35 Regulations, title 49, chapter 3, part 391, subpart E. 115.36 (b) The commissioner of public safety, in conjunction with 116.1 the commissioner of economic security, shall adopt rules 116.2 prescribing a training program for Head Start bus drivers. The 116.3 program must provide for initial classroom and behind-the-wheel 116.4 training, and annual in-service training. The program must 116.5 provide training in defensive driving, human relations, 116.6 emergency and accident procedures, vehicle maintenance, traffic 116.7 laws, and use of safety equipment. The program must provide 116.8 that the training will be conducted by the contract operator for 116.9 a Head Start agency, the Head Start grantee, a licensed driver 116.10 training school, or by another person or entity approved by both 116.11 commissioners. 116.12 Subd. 3. [RECORDS CHECK OF APPLICANT.] (a) Before issuing 116.13 or renewing a school bus endorsement, the commissioner shall 116.14 conduct a criminal and driver's license records check of the 116.15 applicant. The commissioner may also conduct the check at any 116.16 time while a person is so licensed. The check shallmust 116.17 consist of a criminal records check of the state criminal 116.18 records repository and a check of the driver's license records 116.19 system. If the applicant has resided in Minnesota for less than 116.20 five years, the check shallmust also include a criminal records 116.21 check of information from the state law enforcement agencies in 116.22 the states where the person resided during the five years before 116.23 moving to Minnesota, and of the national criminal records 116.24 repository including the criminal justice data communications 116.25 network. The applicant's failure to cooperate with the 116.26 commissioner in conducting the records check is reasonable cause 116.27 to deny an application or cancel a school bus endorsement. The 116.28 commissioner may not release the results of the records check to 116.29 any person except the applicant or the applicant's designee in 116.30 writing. 116.31 (b) The commissioner may issue to an otherwise qualified 116.32 applicant a temporary school bus endorsement, effective for no 116.33 more than 180 days, upon presentation of (1) an affidavit by the 116.34 applicant that the applicant has not been convicted of a 116.35 disqualifying offense and (2) a criminal history check from each 116.36 state of residence for the previous five years. The criminal 117.1 history check may be conducted and prepared by any public or 117.2 private source acceptable to the commissioner. The commissioner 117.3 may reissue the temporary endorsement if the National Criminal 117.4 Records Repository check is timely submitted but not completed 117.5 within the 180-day period. 117.6 Subd. 4. [TRAINING.] (a) No person shall drive a class A, 117.7 B, C, or D school bus when transporting school children to or 117.8 from school or upon a school-related trip or activity without 117.9 having demonstrated sufficient skills and knowledge to transport 117.10 students in a safe and legal manner. 117.11 (b) A bus driver must have training or experience that 117.12 allows the driver to meet at least the following competencies: 117.13 (1) safely operate the type of school bus the driver will 117.14 be driving; 117.15 (2) understand student behavior, including issues relating 117.16 to students with disabilities; 117.17 (3) encourage orderly conduct of students on the bus and 117.18 handle incidents of misconduct appropriately; 117.19 (4) know and understand relevant laws, rules of the road, 117.20 and local school bus safety policies; 117.21 (5) handle emergency situations; and 117.22 (6) safely load and unload students. 117.23 (c) The commissioner of public safety, in conjunction with 117.24 the commissioner of children, families, and learning, shall 117.25 develop a comprehensive model school bus driver training program 117.26 and model assessments for school bus driver training 117.27 competencies, which are not subject to chapter 14. A school 117.28 district may use alternative assessments for bus driver training 117.29 competencies with the approval of the commissioner of public 117.30 safety. The employer shall keep the assessment for the current 117.31 period available for inspection by representatives of the 117.32 commissioner. 117.33 Subd. 5. [ANNUAL EVALUATION.] A school district's pupil 117.34 transportation safety director, the chief administrator of a 117.35 nonpublic school, or a private contractor shall certify annually 117.36 to the commissioner of public safetyschool board or governing 118.1 board of a nonpublic school that, at minimum, each school bus 118.2 driver meets the school bus driver training competencies under 118.3 subdivision 4 and shall report the number of hours of in-service118.4 training completed by each driver. A school district, nonpublic 118.5 school, or private contractor also shall provide in-service 118.6 training annually to each school bus driver. A district,118.7 nonpublic school, or private contractor also shall check the118.8 license of each person who transports students for the district118.9 with the National Drivers Register or the department of public118.10 safety annually. The school board must approve and forward the118.11 competency certification and in-service report to the118.12 commissioner of public safety.118.13 EFFECTIVE DATE:This section is effective the day 118.14 following final enactment. 118.15 Sec. 48. Minnesota Statutes 1998, section 354.05, 118.16 subdivision 2, is amended to read: 118.17 Subd. 2. [TEACHER.] (a) "Teacher" means: 118.18 (1) a person who renders service as a teacher, supervisor, 118.19 principal, superintendent, librarian, nurse, counselor, social 118.20 worker, therapist, or psychologist in the public schools of the 118.21 state located outside of the corporate limits of the cities of 118.22 the first class as those cities were so classified on January 1, 118.23 1979, or in the state colleges and universities system, or in 118.24 any charitable, penal, or correctional institutions of a 118.25 governmental subdivision, or who is engaged in educational 118.26 administration in connection with the state public school 118.27 system, including the state colleges and university system, but 118.28 excluding the University of Minnesota, whether the position be a 118.29 public office or an employment, not including members or 118.30 officers of any general governing or managing board or body; 118.31 (2) an employee of the teachers retirement association 118.32 unless the employee is covered by the Minnesota state retirement 118.33 system by virtue of prior employment by the association; 118.34 (3) a person who renders teaching service on a part-time 118.35 basis and who also renders other services for a single employing 118.36 unit. In such cases, the executive director shall determine 119.1 whether all or none of the combined service is covered by the 119.2 association, however a person whose teaching service comprises 119.3 at least 50 percent of the combined employment salary is a 119.4 member of the association for all services with the single 119.5 employing unit; or 119.6 (4) a person who renders services as a teacher, supervisor, 119.7 principal, superintendent, librarian, nurse, counselor, social 119.8 worker, therapist, or psychologist in a public school, 119.9 including, but not limited to, charter schools organized under 119.10 section 124D.10, when such services are provided by such person 119.11 as an employee of a teacher controlled professional association 119.12 formed under chapters 308A, 319B, 322B, 323, 323A, or any other 119.13 appropriate law. 119.14 (b) The term does not mean: 119.15 (1) an employee described in section 352D.02, subdivision 119.16 1a, who is hired after the effective date of Laws 1986, chapter 119.17 458; 119.18 (2) a person who works for a school or institution as an 119.19 independent contractor as defined by the Internal Revenue 119.20 Service; 119.21 (3) a person employed in subsidized on-the-job training, 119.22 work experience or public service employment as an enrollee 119.23 under the federal Comprehensive Employment and Training Act from 119.24 and after March 30, 1978, unless the person has, as of the later 119.25 of March 30, 1978, or the date of employment, sufficient service 119.26 credit in the retirement association to meet the minimum vesting 119.27 requirements for a deferred retirement annuity, or the employer 119.28 agrees in writing on forms prescribed by the executive director 119.29 to make the required employer contributions, including any 119.30 employer additional contributions, on account of that person 119.31 from revenue sources other than funds provided under the federal 119.32 Comprehensive Training and Employment Act, or the person agrees 119.33 in writing on forms prescribed by the executive director to make 119.34 the required employer contribution in addition to the required 119.35 employee contribution; 119.36 (4) a person holding a part-time adult supplementary 120.1 technical college license who renders part-time teaching service 120.2 in a technical college if (i) the service is incidental to the 120.3 regular nonteaching occupation of the person; and (ii) the 120.4 applicable technical college stipulates annually in advance that 120.5 the part-time teaching service will not exceed 300 hours in a 120.6 fiscal year and retains the stipulation in its records; and 120.7 (iii) the part-time teaching service actually does not exceed 120.8 300 hours in a fiscal year; or 120.9 (5) a person exempt from licensure pursuant to section 120.10 122A.30. 120.11 Sec. 49. Minnesota Statutes 1998, section 354A.011, 120.12 subdivision 27, is amended to read: 120.13 Subd. 27. [TEACHER.] "Teacher" means any person who 120.14 renders service in a public school district, including, but not 120.15 limited to, a charter school organized under section 124D.10, 120.16 located in the corporate limits of one of the cities of the 120.17 first class which was so classified on January 1, 1979, as any 120.18 of the following: 120.19 (a) a full-time employee in a position for which a valid 120.20 license from the state department of children, families, and 120.21 learning is required; 120.22 (b) an employee of the teachers retirement fund association 120.23 located in the city of the first class unless the employee has 120.24 exercised the option pursuant to Laws 1955, chapter 10, section 120.25 1, to retain membership in the Minneapolis employees retirement 120.26 fund established pursuant to chapter 422A; 120.27 (c) a part-time employee in a position for which a valid 120.28 license from the state department of children, families, and 120.29 learning is required; or120.30 (d) a part-time employee in a position for which a valid 120.31 license from the state department of children, families, and 120.32 learning is required who also renders other nonteaching services 120.33 for the school district unless the board of trustees of the 120.34 teachers retirement fund association determines that the 120.35 combined employment is on the whole so substantially dissimilar 120.36 to teaching service that the service shall not be covered by the 121.1 association; or 121.2 (e) an employee of a teacher controlled professional 121.3 association formed under chapter 308A, 319B, 322B, 323, 323A, or 121.4 any other appropriate law. 121.5 The term shall not mean any person who renders service in 121.6 the school district as any of the following: 121.7 (1) an independent contractor or the employee of an 121.8 independent contractor; 121.9 (2) an employee who is a full-time teacher covered by 121.10 another teachers retirement fund association established 121.11 pursuant to this chapter or chapter 354; 121.12 (3) an employee exempt from licensure pursuant to section 121.13 122A.30; 121.14 (4) an employee who is a teacher in a technical college 121.15 located in a city of the first class unless the person elects 121.16 coverage by the applicable first class city teacher retirement 121.17 fund association under section 354B.21, subdivision 2; or 121.18 (5) an employee who is a part-time teacher in a technical 121.19 college in a city of the first class and who has elected 121.20 coverage by the applicable first class city teacher retirement 121.21 fund association under section 354B.21, subdivision 2, but (i) 121.22 the teaching service is incidental to the regular nonteaching 121.23 occupation of the person; (ii) the applicable technical college 121.24 stipulates annually in advance that the part-time teaching 121.25 service will not exceed 300 hours in a fiscal year; and (iii) 121.26 the part-time teaching actually does not exceed 300 hours in the 121.27 fiscal year to which the certification applies. 121.28 Sec. 50. Minnesota Statutes 1998, section 471.15, is 121.29 amended to read: 121.30 471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 121.31 BONDS.] 121.32 (a) Any home rule charter or statutory city or any town, 121.33 county, school district, or any board thereof, or any 121.34 incorporated post of the American Legion or any other 121.35 incorporated veterans' organization, may expend not to exceed 121.36 $800 in any one year, for the purchase of awards and trophies 122.1 and may operate a program of public recreation and playgrounds; 122.2 acquire, equip, and maintain land, buildings, or other 122.3 recreational facilities, including an outdoor or indoor swimming 122.4 pool; and expend funds for the operation of such program 122.5 pursuant to the provisions of sections 471.15 to 471.19. The 122.6 city, town, county or school district may issue bonds pursuant 122.7 to chapter 475 for the purpose of carrying out the powers 122.8 granted by this section. The city, town, county or school 122.9 district may operate the program and facilities directly or 122.10 establish one or more recreation boards to operate all or 122.11 various parts of them. 122.12 (b) A town may expend funds for the purpose of supporting 122.13 student academic and extra curricula activities sponsored by the 122.14 local school district. 122.15 Sec. 51. Laws 1999, chapter 241, article 5, section 18, 122.16 subdivision 5, is amended to read: 122.17 Subd. 5. [CHARTER SCHOOL BUILDING LEASE AID.] For building 122.18 lease aid according to Minnesota Statutes, section 124D.11, 122.19 subdivision 4: 122.20 $2,992,000$5,981,000 ..... 2000 122.21 $3,616,000$9,975,000 ..... 2001 122.22 The 2000 appropriation includes $194,000 for 1999 and 122.23 $2,798,000$5,787,000 for 2000. 122.24 The 2001 appropriation includes $311,000$643,000 for 2000 122.25 and $3,305,000$9,332,000 for 2001. 122.26 EFFECTIVE DATE:This section is effective the day 122.27 following final enactment. 122.28 Sec. 52. Laws 1999, chapter 241, article 5, section 18, 122.29 subdivision 6, is amended to read: 122.30 Subd. 6. [CHARTER SCHOOL START-UP GRANTS.] For charter 122.31 school start-up cost aid under Minnesota Statutes, section 122.32 124D.11: 122.33 $1,789,000$1,955,000 ..... 2000 122.34 $1,876,000$2,926,000 ..... 2001 122.35 The 2000 appropriation includes $100,000 for 1999 and 122.36 $1,689,000$1,855,000 for 2000. 123.1 The 2001 appropriation includes $188,000$706,000 for 1999123.2 2000 and $1,688,000$2,720,000 for 2001. 123.3 Any balance in the first year does not cancel but is 123.4 available in the second year. This appropriation may also be 123.5 used for grants to convert existing schools into charter schools. 123.6 EFFECTIVE DATE:This section is effective the day 123.7 following final enactment. 123.8 Sec. 53. [MINNESOTA NEW TEACHER PROJECT.] 123.9 Subdivision 1. [ESTABLISHMENT; PARTICIPATION.] The 123.10 Minnesota new teacher project is established in the department 123.11 of children, families, and learning in order to retain new 123.12 teachers in the profession and to provide models for supporting 123.13 the professional development of first-year and second-year 123.14 teachers. In order for a school district to participate in the 123.15 new teacher project, a school board and an exclusive 123.16 representative of the teachers in the district, or for a charter 123.17 school the majority of the teachers, must agree to participate 123.18 in the new teacher project and to the district plan under 123.19 subdivision 2. 123.20 Subd. 2. [DISTRICT PLAN.] A district that participates in 123.21 the new teacher project must submit a plan for the project to 123.22 the commissioner for approval. The new teacher project plan 123.23 must be consistent with the knowledge and skills required in the 123.24 teacher licensure rules adopted by the board of teaching and the 123.25 state graduation requirements and include curricula of best 123.26 practice activities such as one-on-one mentoring, intensive 123.27 summer orientation, first-year and second-year training 123.28 workshops, peer review, mutual observation between new and 123.29 experienced teachers, classroom management techniques, cultural 123.30 diversity, reading strategies, lighter workloads, and first-year 123.31 residency. The plan must include the participation of a teacher 123.32 preparation program approved by the board of teaching. 123.33 Districts receiving a grant under this section must report 123.34 to the board of teaching regarding its chosen new teacher 123.35 project plan. 123.36 Subd. 3. [STATE MATCH.] A district that has an approved 124.1 new teacher project plan is eligible to receive $3,000 of state 124.2 money for each new teacher participating in the project. The 124.3 district must contribute $2,000 of district money for each new 124.4 teacher participating in the project. 124.5 Sec. 54. [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE 124.6 TASK FORCE.] 124.7 (a) The commissioner of employee relations shall convene a 124.8 task force on postretirement and active employee health care. 124.9 The task force shall identify strategies for providing 124.10 postretirement and active employee health care coverage for 124.11 public employees and make recommendations regarding the most 124.12 appropriate and efficient manner for providing postretirement 124.13 and active employee health care. 124.14 (b) One-half of the task force membership shall be composed 124.15 of employees and the other half of the membership must be 124.16 composed of employers. The task force shall include, but not be 124.17 limited to, the following: 124.18 (1) a representative of the department of employee 124.19 relations; 124.20 (2) a representative of the Minnesota state retirement 124.21 system; 124.22 (3) a representative of the teachers retirement 124.23 association; 124.24 (4) a representative of the public employees retirement 124.25 association; 124.26 (5) a representative of the first class city teacher 124.27 retirement fund associations; 124.28 (6) a representative of the first class city police and 124.29 fire department relief associations; 124.30 (7) a representative of the Minneapolis employees 124.31 retirement fund; 124.32 (8) a representative of the legislative coordinating 124.33 commission subcommittee on employee relations; 124.34 (9) one representative each from the Minnesota school 124.35 boards association, Minnesota service cooperatives, the 124.36 association of Minnesota counties, the Minnesota association of 125.1 townships, and the league of Minnesota cities; 125.2 (10) exclusive representatives of affected public 125.3 employees; and 125.4 (11) representatives of major public employers. 125.5 (c) The task force shall report its findings and 125.6 recommendations to the legislature by November 15, 2000. The 125.7 report shall address: 125.8 (1) alternative methods of providing and paying for 125.9 postretirement and active employee health care; 125.10 (2) the estimated cost of providing postretirement and 125.11 active employee health care under various alternatives, 125.12 including statewide, regional, or market alternatives; 125.13 (3) the most efficient administrative structure for 125.14 providing for postretirement and active employee health care; 125.15 and 125.16 (4) issues of adverse selection, cost containment, consumer 125.17 choice, and consider options for dealing with other employee 125.18 concerns. 125.19 (d) The task force shall conduct the study and assemble 125.20 data in a manner that will provide for the ability to conduct 125.21 analysis for subsets of the groups being studied by employer and 125.22 employee types. 125.23 Sec. 55. [TASK FORCE ON SCHOOL GOVERNANCE AND MANAGEMENT.] 125.24 Subdivision 1. [ESTABLISHMENT.] The task force on school 125.25 governance and management is established to examine the existing 125.26 constitutional and statutory provisions that dictate the 125.27 governance responsibilities and authority of the respective 125.28 components of the state's public education system. 125.29 Subd. 2. [MEMBERSHIP; STAFFING.] (a) The task force on 125.30 school governance and management must be composed of nine 125.31 members, with three members appointed by the governor, three 125.32 members appointed by the speaker of the house of 125.33 representatives, and three members appointed by the subcommittee 125.34 on committees of the senate committee on rules and 125.35 administration. Members should represent the business 125.36 community, education stakeholders, parents, or other interested 126.1 community members. 126.2 (b) The executive branch through the office of the governor 126.3 shall make staff available to assist the task force. 126.4 Subd. 3. [REPORT.] (a) The task force on school governance 126.5 and management must report to the governor and the appropriate 126.6 committees of the house and senate no later than December 1, 126.7 2000. 126.8 (b) The task force must do the following: 126.9 (1) identify any governance or organizational barriers that 126.10 inhibit or preclude schools or school districts from: 126.11 (i) ensuring all students meet state and local graduation 126.12 standards; 126.13 (ii) ensuring instructional programs are available to meet 126.14 individual student's academic needs; 126.15 (iii) making efficient changes in instructional and 126.16 noninstructional program and service delivery; and 126.17 (iv) delegating instructional and general operating 126.18 decision-making to the school level; and 126.19 (2) make recommendations regarding the statutory changes 126.20 needed to enable school districts to: 126.21 (i) continuously identify changes to meet the needs of 126.22 student cohorts; 126.23 (ii) provide a variety of instructional opportunities to 126.24 meet individual student needs; 126.25 (iii) measure individual student academic achievement; and 126.26 (iv) modify or expand instructional programs if student 126.27 achievement does not meet expectations. 126.28 Subd. 4. [EXPIRATION.] The task force on school governance 126.29 and management expires on December 31, 2000. 126.30 EFFECTIVE DATE:This section is effective the day 126.31 following final enactment. 126.32 Sec. 56. [2000-2001 SCHOOL YEAR START DATE.] 126.33 Subdivision 1. [LABOR DAY START.] Notwithstanding 126.34 Minnesota Statutes, section 120A.40, for the 2000-2001 school 126.35 year only, a district must not begin the elementary or secondary 126.36 school year prior to Labor Day. 127.1 Subd. 2. [MABEL-CANTON.] Notwithstanding subdivision 1 and 127.2 Minnesota Statutes, section 120A.40, for the 2000-2001 school 127.3 year only, independent school district No. 238, Mabel-Canton, 127.4 may start the school year up to five weekdays before Labor Day 127.5 for the purpose of scheduling an additional academic term during 127.6 the regular school year. 127.7 Sec. 57. [TEACHER PREPARATION PROGRAM CREATED.] 127.8 Subdivision 1. [TEACHER PREPARATION LEADING TO LICENSURE.] 127.9 The board of trustees of the Minnesota state colleges and 127.10 universities shall offer a program of teacher preparation 127.11 leading to licensure, involving Metropolitan state university, 127.12 Inver Hills community college, and Minneapolis community and 127.13 technical college. The institutions involved shall enter into 127.14 an agreement whereby Inver Hills community college and 127.15 Minneapolis community and technical college shall provide the 127.16 first two years of the program, and Metropolitan state 127.17 university shall provide the final two years of the program. In 127.18 fall semester 2000, Minneapolis community and technical college 127.19 and Inver Hills community college shall offer a preeducation 127.20 program. After development of the program in fiscal year 2001, 127.21 Metropolitan state university shall begin its licensure program 127.22 in fall semester 2001. The program shall focus on preparing 127.23 teachers to meet the specific needs of urban and inner-ring 127.24 suburban schools and shall emphasize significant direct 127.25 classroom teaching experience and mentoring throughout each 127.26 student's preparation. The program may also focus on the 127.27 professional development of pretenure teachers. Metropolitan 127.28 state university, Inver Hills community college, and Minneapolis 127.29 community and technical college are encouraged to enter into 127.30 partnerships with urban and inner-ring suburban schools to 127.31 provide for significant involvement of elementary and secondary 127.32 teachers in the mentoring of students enrolled in the program. 127.33 The program shall establish a goal that at least 50 percent of 127.34 the participants be students of color. 127.35 Subd. 2. [REPORT REQUIRED.] By February 15, 2002, the 127.36 board of trustees shall provide a progress report to the chairs 128.1 of the higher education finance divisions of the legislature 128.2 regarding the development of the teacher preparation program. 128.3 The report shall include feedback from enrolled students 128.4 concerning how the program meets their needs, as well as from 128.5 cooperating elementary and secondary schools on how the students 128.6 are performing on site. The report shall also include the 128.7 number of participants in the program who are students of color. 128.8 Sec. 58. [CHARTER SCHOOL BUILDING LEASE AID ADJUSTMENT.] 128.9 Notwithstanding Minnesota Statutes, section 124D.11, 128.10 subdivision 4, for fiscal year 2000 and fiscal year 2001 only, 128.11 the amount of building lease aid for a charter school with a 128.12 lease signed before March 15, 2000, equals the lesser of: 128.13 (1) 90 percent of the approved cost in the current year for 128.14 leases signed before March 15, 2000; or 128.15 (2) the product of the pupil units served for the current 128.16 school year times $1,500. 128.17 EFFECTIVE DATE:This section is effective the day 128.18 following final enactment. 128.19 Sec. 59. [CHARTER SCHOOL BUILDING LEASE AID REVIEW.] 128.20 The department of children, families, and learning shall 128.21 work with charter school operators and other interested parties 128.22 to create recommendations for appropriate criteria for charter 128.23 school building lease aid and report its findings to the 128.24 education committees of the legislature by January 15, 2001. 128.25 Sec. 60. [APPROPRIATIONS.] 128.26 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 128.27 LEARNING.] The sum indicated in this section is appropriated 128.28 from the general fund to the department of children, families, 128.29 and learning for the fiscal year indicated. 128.30 Subd. 2. [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE.] 128.31 For a report on postretirement and active employee health care: 128.32 $7,000 ..... 2001 128.33 Subd. 3. [BUSINESS CHARTER SCHOOL START-UP GRANT.] For a 128.34 new charter school with a business immersion program that 128.35 occupies a publicly owned building in St. Paul: 128.36 $200,000 ..... 2001 129.1 Subd. 4. [PROFESSIONAL TEACHING STANDARDS.] For grant 129.2 awards for national board for professional teaching standards 129.3 certification according to Laws 1997, First Special Session 129.4 chapter 4, article 5, section 22: 129.5 $150,000 ..... 2001 129.6 Sec. 61. [REPEALER.] 129.7 Minnesota Statutes 1998, section 120A.41, is repealed 129.8 effective for the 2000-2001 and later school years. 129.9 ARTICLE 6 129.10 NUTRITION AND OTHER PROGRAMS 129.11 Section 1. [123B.575] [PESTICIDE APPLICATION AT SCHOOLS.] 129.12 Subdivision 1. [PARENTS' RIGHT-TO-KNOW ACT.] Subdivisions 129.13 2 to 9 may be cited as the Janet B. Johnson Parents' 129.14 Right-to-Know Act of 2000. 129.15 Subd. 2. [PESTICIDE APPLICATION NOTIFICATION.] A school 129.16 that plans to apply a pesticide which is a toxicity category I, 129.17 II, or III pesticide product, as classified by the United States 129.18 Environmental Protection Agency, or a restricted use pesticide, 129.19 as designated under the Federal Insecticide, Fungicide, and 129.20 Rodenticide Act, must provide a notice to parents and employees 129.21 that it applies such pesticides. The notice required under 129.22 subdivision 3 must: 129.23 (1) provide that an estimated schedule of the pesticide 129.24 applications is available for review or copying at the school 129.25 offices where such pesticides are applied; 129.26 (2) state that long-term health effects on children from 129.27 the application of such pesticides or the class of chemicals to 129.28 which they belong may not be fully understood; 129.29 (3) inform parents that a parent may request the school 129.30 notify him or her in the manner specified in subdivision 6 129.31 before any application of a pesticide listed in this subdivision. 129.32 Subd. 3. [NOTICE; TIMING; DISTRIBUTION.] The notice must 129.33 be provided during the first two weeks of each school year 129.34 during which pesticides listed in subdivision 2 are planned to 129.35 be applied. The notice may be included with other notices 129.36 provided by the school, but must be separately identified and 130.1 clearly visible to the reader. 130.2 Subd. 4. [SCHOOL HANDBOOK OR NEWSLETTER INFORMATION.] In 130.3 addition to the notice provided during the first two weeks of 130.4 the school year, a school that is required to provide notice 130.5 under this section shall include in any school handbook or 130.6 newsletter a section informing parents that an estimated 130.7 schedule of applications of pesticides listed in subdivision 2 130.8 is available for review or copying at the school offices, and 130.9 that a parent may receive prior notice of each application if 130.10 specifically requested. 130.11 Subd. 5. [NOTICE AVAILABILITY.] A school that uses a 130.12 pesticide listed in subdivision 2 must keep a copy of all 130.13 notifications required under subdivisions 2 and 3 in a manner 130.14 available to the public. 130.15 Subd. 6. [NOTIFICATION FOR INDIVIDUAL PARENTS.] A parent 130.16 of a student at a school may request that the school principal 130.17 or other person having general control and supervision of the 130.18 school notify the parent prior to the application of any 130.19 pesticides listed in subdivision 2 at the school. The school 130.20 principal or other person having general control and supervision 130.21 of the school must provide reasonable notice to a parent who has 130.22 requested such notification prior to applying such pesticides. 130.23 The notice may be waived for emergency applications required 130.24 only by appropriate state or local health officials. The notice 130.25 must include the pesticide to be applied, the time of the 130.26 planned application, and the location at the school of the 130.27 planned application. 130.28 Subd. 7. [MODEL NOTICE.] The department of health, in 130.29 consultation with the department of children, families, and 130.30 learning and the office of environmental assistance, shall 130.31 develop and make available to schools by August 1, 2000, a model 130.32 notice in a form that can be used by a school if it chooses to 130.33 do so. The model notice must include the information required 130.34 by this section. The department of health must provide an 130.35 opportunity for environmental groups and interested parents to 130.36 work with the department in developing the model notice. 131.1 Subd. 8. [PLAN.] A school is not required to adopt an 131.2 integrated pest management plan. A school board may only notify 131.3 students, parents, or employees that it has adopted an 131.4 integrated pest management plan if the plan is a managed pest 131.5 control program designed to minimize the risk to human health 131.6 and the environment and to reduce the use of chemical 131.7 pesticides, and which ranks the district's response to pests in 131.8 the following manner: 131.9 (1) identifying pests which need to be controlled; 131.10 (2) establishing tolerable limits of each identified pest; 131.11 (3) designing future buildings and landscapes to prevent 131.12 identified pests; 131.13 (4) excluding identified pests from sites and buildings 131.14 using maintenance practices; 131.15 (5) adapting cleaning activities and best management 131.16 practices to minimize the number of pests; 131.17 (6) using mechanical methods of controlling identified 131.18 pests; and 131.19 (7) controlling identified pests using the least toxic 131.20 pesticides with the least exposure to persons as is practicable. 131.21 Subd. 9. [PESTICIDE DEFINED; CLEANING PRODUCTS 131.22 EXCLUDED.] For purposes of this section, the term "pesticide" 131.23 has the meaning given it in section 18B.01, subdivision 18, 131.24 except that it does not include any disinfectants, sanitizers, 131.25 deodorizers, or antimicrobial agents used for general cleaning 131.26 purposes. 131.27 Subd. 10. [PEST DEFINED.] For purposes of this section, 131.28 the term "pest" has the meaning given it in section 18B.01, 131.29 subdivision 17. 131.30 Subd. 11. [SCHOOL DEFINED.] For the purposes of this 131.31 section, "school" means a school as defined in section 120A.22, 131.32 subdivision 4, excluding home schools. 131.33 Subd. 12. [IMMUNITY FROM LIABILITY.] No cause of action 131.34 may be brought against a school district, a school, or the 131.35 districts or school's employees or agents for any action taken 131.36 by them in performing their duties under this section. 132.1 EFFECTIVE DATE:This section is effective August 1, 2000. 132.2 Sec. 2. Minnesota Statutes 1998, section 123B.80, is 132.3 amended by adding a subdivision to read: 132.4 Subd. 4. [FUND TRANSFER.] A district may permanently 132.5 transfer funds without a levy reduction under section 475.61 if 132.6 at least 30 days prior to the transfer it adopts a board 132.7 resolution authorizing the action and informs each property 132.8 taxpayer in the district by first-class mail of the proposed 132.9 amount to be transferred. The notice must indicate that state 132.10 law requires the district to otherwise reduce school levies and 132.11 that levies will be higher by the amount. This notice 132.12 requirement also applies to any transfer made under this section 132.13 or by any special provision enacted into law. If the transfer 132.14 under this section or special law would not otherwise have 132.15 resulted in a levy reduction, the notice must include the amount 132.16 and must indicate that property tax levies will not be used for 132.17 the original purpose for which they were levied. 132.18 Sec. 3. Minnesota Statutes 1998, section 124D.111, 132.19 subdivision 1, is amended to read: 132.20 Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school 132.21 year, the state must pay districts participating in the national 132.22 school lunch program the amount of 6.5eight cents for each full 132.23 paid, reduced, and free student lunch served to students in the 132.24 district. 132.25 EFFECTIVE DATE:This section is effective the day 132.26 following final enactment. 132.27 Sec. 4. Laws 1999, chapter 241, article 6, section 14, 132.28 subdivision 2, is amended to read: 132.29 Subd. 2. [ABATEMENT AID.] For abatement aid according to 132.30 Minnesota Statutes, section 127A.49: 132.31 $9,110,000$9,577,000 ..... 2000 132.32 $8,947,000$8,279,000 ..... 2001 132.33 The 2000 appropriation includes $1,352,000 for 1999 and 132.34 $7,758,000$8,225,000 for 2000. 132.35 The 2001 appropriation includes $861,000$914,000 for 2000 132.36 and $8,086,000$7,365,000 for 2001. 133.1 EFFECTIVE DATE:This section is effective the day 133.2 following final enactment. 133.3 Sec. 5. Laws 1999, chapter 241, article 6, section 14, 133.4 subdivision 3, is amended to read: 133.5 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 133.6 education aid according to Minnesota Statutes, sections 123B.40 133.7 to 123B.48 and 123B.87: 133.8 $10,996,000$11,552,000 ..... 2000 133.9 $11,878,000$12,757,000 ..... 2001 133.10 The 2000 appropriation includes $970,000 for 1999 and 133.11 $10,026,000$10,582,000 for 2000. 133.12 The 2001 appropriation includes $1,114,000$1,175,000 for 133.13 2000 and $10,764,000$11,582,000 for 2001. 133.14 The department shall recompute the maximum allotments 133.15 established on March 1, 1999, for fiscal year 2000 under 133.16 Minnesota Statutes, sections 123B.42, subdivision 3, and 133.17 123B.44, subdivision 6, to reflect the amount appropriated in 133.18 this subdivision for fiscal year 2000. 133.19 EFFECTIVE DATE:This section is effective the day 133.20 following final enactment. 133.21 Sec. 6. Laws 1999, chapter 241, article 6, section 14, 133.22 subdivision 4, is amended to read: 133.23 Subd. 4. [CONSOLIDATION TRANSITION AID.] For districts 133.24 consolidating under Minnesota Statutes, section 123A.485: 133.25 $451,000$563,000 ..... 2000 133.26 $375,000$455,000 ..... 2001 133.27 The 2000 appropriation includes $113,000 for 1999 and 133.28 $338,000$450,000 for 2000. 133.29 The 2001 appropriation includes $37,000$50,000 for 2000 133.30 and $338,000$405,000 for 2001. 133.31 Any balance in the first year does not cancel but is 133.32 available in the second year. 133.33 EFFECTIVE DATE:This section is effective the day 133.34 following final enactment. 133.35 Sec. 7. Laws 1999, chapter 241, article 6, section 14, 133.36 subdivision 5, is amended to read: 134.1 Subd. 5. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 134.2 pupil transportation aid under Minnesota Statutes, section 134.3 123B.92, subdivision 9: 134.4 $18,586,000$20,358,000 ..... 2000 134.5 $20,922,000$21,333,000 ..... 2001 134.6 The 2000 appropriation includes $1,848,000 for 2000 and 134.7 $16,738,000$18,510,000 for 2001. 134.8 The 2001 appropriation includes $1,860,000$2,057,000 for 134.9 2000 and $19,062,000$19,276,000 for 2001. 134.10 EFFECTIVE DATE:This section is effective the day 134.11 following final enactment. 134.12 Sec. 8. Laws 1999, chapter 241, article 7, section 2, 134.13 subdivision 2, is amended to read: 134.14 Subd. 2. [SCHOOL LUNCH AID.] (a) For school lunch aid 134.15 according to Minnesota Statutes, section 124D.111, and Code of 134.16 Federal Regulations, title 7, section 210.17, and for school 134.17 milk aid according to Minnesota Statutes, section 124D.118: 134.18 $8,200,000 ..... 2000 134.19 $8,200,000 ..... 2001 134.20 (b) Any unexpended balance remaining from the 134.21 appropriations in this subdivision shall be prorated among 134.22 participating schools based on the number of free, reduced, and 134.23 fully paid federally reimbursable student lunches served during 134.24 that school year. 134.25 (c) If the appropriation amount attributable to either year134.26 is insufficient, the rate of payment for each fully paid student134.27 lunch shall be reduced and the aid for that year shall be134.28 prorated among participating schools so as not to exceed the134.29 total authorized appropriation for that year.134.30 (d)Not more than $800,000 of the amount appropriated each 134.31 year may be used for school milk aid. 134.32 EFFECTIVE DATE:This section is effective the day 134.33 following final enactment. 134.34 Sec. 9. Laws 1999, chapter 241, article 7, section 2, 134.35 subdivision 5, is amended to read: 134.36 Subd. 5. [SCHOOL BREAKFAST.] To operate the school 135.1 breakfast program according to Minnesota Statutes, sections 135.2 124D.115 and 124D.117: 135.3 $456,000$713,000 ..... 2000 135.4 $456,000$713,000 ..... 2001 135.5 If the appropriation amount attributable to either year is135.6 insufficient, the rate of payment for each fully paid student135.7 breakfast shall be reduced and the aid for that year shall be135.8 prorated among participating schools so as not to exceed the135.9 total authorized appropriation for that year.Any unexpended 135.10 balance remaining shall be used to subsidize the payments made 135.11 for school lunch aid per Minnesota Statutes, section 124D.111. 135.12 Up to one percent of the program funding can be used by the 135.13 department of children, families, and learning for technical and 135.14 administrative assistance. 135.15 EFFECTIVE DATE:This section is effective the day 135.16 following final enactment. 135.17 Sec. 10. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 135.18 WEB SITE.] 135.19 The department of children, families, and learning must 135.20 maintain a list of pesticides that are classified as toxicity 135.21 category I, II, or III pesticide products or as restricted use 135.22 pesticides under the Federal Insecticide, Fungicide, and 135.23 Rodenticide Act. The department must maintain the list on its 135.24 Web site or as a prominent link on its Web site to another state 135.25 or federal agency's Web site. 135.26 EFFECTIVE DATE:This section is effective August 1, 2000. 135.27 Sec. 11. [FUND TRANSFERS.] 135.28 Subdivision 1. [BROWERVILLE.] Notwithstanding Minnesota 135.29 Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 135.30 on June 30, 2000, independent school district No. 787, 135.31 Browerville, may permanently transfer up to $110,000 from its 135.32 debt redemption fund to its operating capital fund without 135.33 making a levy reduction. 135.34 Subd. 2. [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 135.35 Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 135.36 2000, upon approval of the commissioner of children, families, 136.1 and learning, independent school district No. 771, 136.2 Chokio-Alberta, may permanently transfer up to $121,000 from its 136.3 reserved account for disabled accessibility to its undesignated 136.4 general fund balance. 136.5 (b) Prior to making the fund transfer, independent school 136.6 district No. 771, Chokio-Alberta, must demonstrate to the 136.7 commissioner's satisfaction that the district's school buildings 136.8 are accessible to students or employees with disabilities. 136.9 Subd. 3. [FERGUS FALLS.] Notwithstanding Minnesota 136.10 Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 136.11 independent school district No. 544, Fergus Falls, on June 30, 136.12 2000, may permanently transfer up to $200,000 from the debt 136.13 redemption fund to the general fund without making a levy 136.14 reduction. 136.15 Subd. 4. [GRAND MEADOW.] Notwithstanding Minnesota 136.16 Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 136.17 independent school district No. 495, Grand Meadow, may 136.18 permanently transfer up to $300,000 from its disabled access 136.19 account in the general fund to its capital fund. This transfer 136.20 is contingent upon the school district's successful construction 136.21 of a new kindergarten through grade 12 school. 136.22 Subd. 5. [LAKEVILLE.] Notwithstanding Minnesota Statutes, 136.23 section 123B.79 or 123B.80, independent school district No. 194, 136.24 Lakeville, may transfer up to $1,000,000 from its reserved 136.25 account for operating capital to the unreserved, undesignated 136.26 general fund. When independent school district No. 194, 136.27 Lakeville, attains a positive unreserved, undesignated general 136.28 fund balance greater than ten percent of the most recent fiscal 136.29 year's expenditures, the district shall transfer the amount 136.30 exceeding ten percent to its reserve account for operating 136.31 capital until an amount is transferred back that is equal to the 136.32 amount transferred under this authority. This subdivision 136.33 expires on December 31, 2014. 136.34 Subd. 6. [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 136.35 sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 136.36 30, 2000, independent school district No. 832, Mahtomedi, may 137.1 permanently transfer up to $525,000 from its debt redemption 137.2 fund to its capital account in its general fund without making a 137.3 levy reduction to purchase land for a school facility. 137.4 Subd. 7. [NORMAN COUNTY EAST.] Notwithstanding Minnesota 137.5 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 137.6 on June 2000, independent school district No. 2215, Norman 137.7 County East, may permanently transfer up to $419,000 from its 137.8 building construction fund to the reserved account for operating 137.9 capital in the general fund without making a levy reduction. 137.10 Subd. 8. [ST. FRANCIS.] Notwithstanding Minnesota 137.11 Statutes, section 123B.53, on June 30, 2000, independent school 137.12 district No. 15, St. Francis, may permanently transfer $543,000 137.13 from its debt service fund to the general fund to help the 137.14 district out of statutory operating debt without making a levy 137.15 reduction. This transfer is contingent upon the district 137.16 maintaining 105 percent of principal and interest against the 137.17 debt service fund liabilities. 137.18 Subd. 9. [STAPLES-MOTLEY.] Notwithstanding Minnesota 137.19 Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 137.20 on May 31, 2000, independent school district No. 2170, 137.21 Staples-Motley, may permanently transfer up to $71,000 from the 137.22 debt service account of the former independent school district 137.23 No. 483, Motley, to independent school district No. 2170, 137.24 Staples-Motley's, operating capital fund without making a levy 137.25 reduction. 137.26 Subd. 10. [WIN-E-MAC.] At the completion of the 137.27 consolidation of independent school district No. 604, Mentor, 137.28 and independent school district No. 2609, Win-E-Mac, up to 137.29 $125,000 may be transferred from the former Mentor school 137.30 district health and safety reserve fund to the Win-E-Mac health 137.31 and safety reserve fund. 137.32 Subd. 11. [PARKERS PRAIRIE.] Notwithstanding Minnesota 137.33 Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 137.34 independent school district No. 547, Parkers Prairie, on June 137.35 30, 2000, may permanently transfer up to $105,000 from the debt 137.36 redemption fund to the reserved account for operating capital in 138.1 the general fund without making a levy reduction. 138.2 Subd. 12. [LAKEVIEW SCHOOLS.] Notwithstanding any law to 138.3 the contrary, independent school district No. 2167, Lakeview 138.4 schools, is authorized to retain a cooperative facilities grant 138.5 awarded in fiscal year 1995, and may permanently transfer that 138.6 amount to its reserve account for operating capital. 138.7 EFFECTIVE DATE:This section is effective the day 138.8 following final enactment. 138.9 Sec. 12. [INTERMEDIATE DISTRICTS.] 138.10 Notwithstanding any termination date in the agreements 138.11 between the intermediate school districts and the Minnesota 138.12 state colleges and universities board for the use of space in 138.13 the technical colleges or any law to the contrary, the 138.14 agreements shall not expire or terminate. 138.15 Sec. 13. [REVIEW OF FEDERAL RESTRICTIONS ON SCHOOL TRUST 138.16 FUND LANDS.] 138.17 The attorney general and the commissioner of natural 138.18 resources shall review the extent to which federal law and 138.19 policy diminish the return to the school trust fund by impairing 138.20 the use of school trust fund land. The attorney general and the 138.21 commissioner shall pursue efforts to make the school trust fund 138.22 whole, including the use of litigation if necessary. 138.23 Sec. 14. [APPROPRIATIONS.] 138.24 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 138.25 LEARNING.] The sums indicated in this section are appropriated 138.26 from the general fund to the department of children, families, 138.27 and learning for the fiscal years designated. 138.28 Subd. 2. [ASSISTANCE FOR IMMIGRANT FAMILIES.] For grants 138.29 to organizations that assist immigrants, ages 12 to 24, in 138.30 becoming literate and acquiring vocational skills: 138.31 $500,000 ..... 2001 138.32 Subd. 3. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 138.33 HOMELESS CHILDREN.] For matching grants for education programs 138.34 serving homeless children under Laws 1997, First Special Session 138.35 chapter 4, article 2, section 48: 138.36 $1,000,000 ..... 2001 139.1 Subd. 4. [COOPERATIVE SECONDARY FACILITY; PLANNING AND 139.2 EXPENSES.] For a grant and administrative expenses to facilitate 139.3 planning for a cooperative secondary facility under a joint 139.4 powers agreement for school district Nos. 411, Balaton, 402, 139.5 Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 139.6 Tyler: 139.7 $100,000 ..... 2001 139.8 Subd. 5. [ARTS VIA THE INTERNET.] For an arts via the 139.9 Internet collaborative project between the Walker art center and 139.10 the Minneapolis institute of arts: 139.11 $1,000,000 ..... 2001 139.12 Subd. 6. [BEST PRACTICES SEMINARS.] For best practices 139.13 graduation rule seminars to be conducted by the commissioner 139.14 after consultation with Education Minnesota: 139.15 $4,000,000 ..... 2001 139.16 Of this amount, $500,000 is for the Minnesota children's museum 139.17 reading program and $1,000,000 is for the Minnesota new teacher 139.18 project. 139.19 Subd. 7. [MAGNET SCHOOL FACILITIES GRANTS.] (a) For magnet 139.20 school facilities grants: 139.21 $1,500,000 ..... 2001 139.22 (b) Of this amount, $1,200,000 is for the discovery magnet 139.23 school in independent school district No. 347, Willmar, for 139.24 capital and operating costs of the magnet school serving 139.25 children from birth through grade 4. 139.26 (c) Of this amount, $300,000 is to independent school 139.27 district No. 696, Ely, to determine the feasibility of 139.28 establishing a joint secondary and higher education 139.29 environmental studies magnet school. 139.30 Subd. 8. [GEOGRAPHIC INFORMATION SYSTEMS.] To the director 139.31 of the office of strategic and long-range planning to enhance 139.32 the office's use of geographic information systems for 139.33 educational demographics and other purposes: 139.34 $100,000 ..... 2001 139.35 Subd. 9. [SOBRIETY HIGH GRANT; UNITED SOUTH CENTRAL.] For 139.36 a grant to independent school district No. 2134, United South 140.1 Central, for its sobriety high program: 140.2 $50,000 ..... 2001 140.3 Sec. 15. [REPEALER.] 140.4 Minnesota Statutes 1999 Supplement, section 124D.1155, 140.5 subdivision 5, is repealed. 140.6 EFFECTIVE DATE:This section is effective the day 140.7 following final enactment. 140.8 ARTICLE 7 140.9 LIBRARIES 140.10 Section 1. Minnesota Statutes 1999 Supplement, section 140.11 126C.10, subdivision 14, is amended to read: 140.12 Subd. 14. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 140.13 operating capital revenue may be used only for the following 140.14 purposes: 140.15 (1) to acquire land for school purposes; 140.16 (2) to acquire or construct buildings for school purposes; 140.17 (3) to rent or lease buildings, including the costs of 140.18 building repair or improvement that are part of a lease 140.19 agreement; 140.20 (4) to improve and repair school sites and buildings, and 140.21 equip or reequip school buildings with permanent attached 140.22 fixtures, including library media centers; 140.23 (5) for a surplus school building that is used 140.24 substantially for a public nonschool purpose; 140.25 (6) to eliminate barriers or increase access to school 140.26 buildings by individuals with a disability; 140.27 (7) to bring school buildings into compliance with the 140.28 Uniform Fire Code adopted according to chapter 299F; 140.29 (8) to remove asbestos from school buildings, encapsulate 140.30 asbestos, or make asbestos-related repairs; 140.31 (9) to clean up and dispose of polychlorinated biphenyls 140.32 found in school buildings; 140.33 (10) to clean up, remove, dispose of, and make repairs 140.34 related to storing heating fuel or transportation fuels such as 140.35 alcohol, gasoline, fuel oil, and special fuel, as defined in 140.36 section 296A.01; 141.1 (11) for energy audits for school buildings and to modify 141.2 buildings if the audit indicates the cost of the modification 141.3 can be recovered within ten years; 141.4 (12) to improve buildings that are leased according to 141.5 section 123B.51, subdivision 4; 141.6 (13) to pay special assessments levied against school 141.7 property but not to pay assessments for service charges; 141.8 (14) to pay principal and interest on state loans for 141.9 energy conservation according to section 216C.37 or loans made 141.10 under the Northeast Minnesota Economic Protection Trust Fund Act 141.11 according to sections 298.292 to 298.298; 141.12 (15) to purchase or lease interactive telecommunications 141.13 equipment; 141.14 (16) by board resolution, to transfer money into the debt 141.15 redemption fund to: (i) pay the amounts needed to meet, when 141.16 due, principal and interest payments on certain obligations 141.17 issued according to chapter 475; or (ii) pay principal and 141.18 interest on debt service loans or capital loans according to 141.19 section 126C.70; 141.20 (17) to pay operating capital-related assessments of any 141.21 entity formed under a cooperative agreement between two or more 141.22 districts; 141.23 (18) to purchase or lease computers and related materials, 141.24 copying machines, telecommunications equipment, and other 141.25 noninstructional equipment; 141.26 (19) to purchase or lease assistive technology or equipment 141.27 for instructional programs; 141.28 (20) to purchase textbooks; 141.29 (21) to purchase new and replacement library booksmedia 141.30 resources or technology; 141.31 (22) to purchase vehicles; 141.32 (23) to purchase or lease telecommunications equipment, 141.33 computers, and related equipment for integrated information 141.34 management systems for: 141.35 (i) managing and reporting learner outcome information for 141.36 all students under a results-oriented graduation rule; 142.1 (ii) managing student assessment, services, and achievement 142.2 information required for students with individual education 142.3 plans; and 142.4 (iii) other classroom information management needs; and 142.5 (24) to pay personnel costs directly related to the 142.6 acquisition, operation, and maintenance of telecommunications 142.7 systems, computers, related equipment, and network and 142.8 applications software. 142.9 EFFECTIVE DATE:This section is effective for the 142.10 2000-2001 and later school years. 142.11 Sec. 2. Laws 1997, First Special Session chapter 4, 142.12 article 8, section 4, as amended by Laws 1998, chapter 398, 142.13 article 7, section 1, and Laws 1999, chapter 241, article 8, 142.14 section 1, is amended to read: 142.15 Sec. 4. [LIBRARY PROJECT.] 142.16 Subdivision 1. [ESTABLISHMENT.] Notwithstanding law to the 142.17 contrary and subject to approvals in subdivision 2, a public 142.18 library may operate as a library project jointly with the school 142.19 library at Nashwauk-Keewatin high school, located in the city of 142.20 Nashwauk. The public library is established to serve persons 142.21 within the boundaries of independent school district No. 319, 142.22 except the city of Keewatin. 142.23 Subd. 2. [APPROVALS.] Operation of the public library is 142.24 contingent upon the governing bodies of cities, towns, and 142.25 unorganized townships within the geographical boundaries of 142.26 independent school district No. 319, except for the city of 142.27 Keewatin, entering into a joint powers agreement under Minnesota 142.28 Statutes 1998, section 471.59, to accomplish the purpose of this 142.29 section. The joint powers agreement must provide for continuing 142.30 the library project if one partyor more parties to the 142.31 agreement withdraws from or fails to enter into the agreement. 142.32 For the purposes of this subdivision, the Itasca county board is 142.33 designated as the governing body for the unorganized townships. 142.34 Subd. 3. [BOARD; APPOINTMENTS.] The joint powers agreement 142.35 in subdivision 2 shall provide for a library board ofup to 142.36 seven members as follows: two members appointed by the school 143.1 board of independent school district No. 319, one member 143.2 appointed by each town board located within independent school 143.3 district No. 319 boundaries that is a signatory to the joint 143.4 powers agreement, one member appointed by the council of the 143.5 city of Nashwauk, and one member appointed by the Itasca county 143.6 board to represent the unorganized towns within the school 143.7 district territory. 143.8 Subd. 4. [BOARD TERMS; COMPENSATION.] The library board 143.9 members shall serve for the term of the library project or to a 143.10 maximum of three consecutive three-year terms. An appointing 143.11 authority may remove for misconduct or neglect any member it has 143.12 appointed to the board and may replace that member by 143.13 appointment. Board members shall receive no compensation for 143.14 their services but may be reimbursed for actual and necessary 143.15 travel expenses incurred in the discharge of library board 143.16 duties and activities. 143.17 Subd. 5. [FUNDING.] For taxes payable in 1998, 1999, 2000,143.18 2001, 2002, and 2003 only, and provided that the joint powers 143.19 agreement under subdivision 2 has been executed by September 1 143.20 of the previous calendar year, the library board may levy a tax 143.21 in an amount up to $25,000 annually on property located within 143.22 the boundaries of independent school district No. 319, except 143.23 the city of Keewatin. The Itasca county auditor shall collect 143.24 the tax and distribute it to the library board. The levy shall 143.25 be assessed against the individual members of the joint powers 143.26 agreement. The money may be used for library staff and for the 143.27 purchase of library materials, including computer software. The143.28 levy must also fund the amount necessary to receive bookmobile143.29 services from the Arrowhead regional library system.For taxes 143.30 payable in 1998, 1999, 2000,2001, 2002, and 2003 only, the 143.31 county may not levy under Minnesota Statutes, section 134.07, 143.32 for the areas described in this section. 143.33 Subd. 6. [BUILDING.] The school district shall provide the 143.34 physical space and costs associated with operating the library 143.35 including, but not limited to, heat, light, telephone service, 143.36 and maintenance. 144.1 Subd. 7. [ORGANIZATION.] Immediately after appointment, 144.2 the library board shall organize by electing one of its number 144.3 as president and one as secretary, and it may appoint other 144.4 officers it finds necessary. 144.5 Subd. 8. [DUTIES.] The library board shall adopt bylaws 144.6 and regulations for the library and for the conduct of its 144.7 business as may be expedient and conformable to law. It shall 144.8 have exclusive control of the expenditure of all money collected 144.9 for it. The library board shall appoint a qualified library 144.10 director and other staff, establish the compensation of 144.11 employees, and remove any of them for cause. The library board 144.12 may contract with the school board, the regional library board, 144.13 or the city in which the library is located to provide 144.14 personnel, fiscal, or administrative services. The contract 144.15 shall state the personnel, fiscal, and administrative services 144.16 and payments to be provided by each party. 144.17 Subd. 9. [CRITERIA.] The library shall meet all 144.18 requirements in statutes and rules applicable to public 144.19 libraries and school media centers. A media supervisor licensed 144.20 by the board of teaching may be the director of the library. 144.21 Public parking, restrooms, drinking water, and other necessities 144.22 shall be easily accessible to library patrons. 144.23 EFFECTIVE DATE:This section is effective the day 144.24 following final enactment. 144.25 Sec. 3. Laws 1999, chapter 241, article 8, section 4, 144.26 subdivision 4, is amended to read: 144.27 Subd. 4. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 144.28 grants to regional public library systems under Minnesota 144.29 Statutes, section 125B.20, subdivision 3: 144.30 $1,200,000 ..... 2000 144.31 $1,200,000$3,700,000 ..... 2001 144.32 Any balance in the first year does not cancel but is 144.33 available in the second year. 144.34 Notwithstanding Minnesota Statutes, section 125B.20, 144.35 subdivision 3, this appropriation may be used for video lines in 144.36 addition to the uses under Minnesota Statutes, section 125B.20, 145.1 subdivision 3. 145.2 The budget base for this program for fiscal years 2002 and 145.3 2003 is $1,200,000 for each year. 145.4 Sec. 4. Laws 1999, chapter 241, article 8, section 4, 145.5 subdivision 5, is amended to read: 145.6 Subd. 5. [LIBRARY FOR THE BLIND.] For compact shelving, 145.7 technology, and staffing for the Minnesota library for the blind 145.8 and physically handicapped: 145.9 $212,000 ..... 2000 145.10 This appropriation is available until June 30, 2001. 145.11 ARTICLE 8 145.12 DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 145.13 Section 1. Laws 1999, chapter 241, article 10, section 6, 145.14 is amended to read: 145.15 Sec. 6. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 145.16 CENTER FOR ARTS EDUCATION.] 145.17 The sums indicated in this section are appropriated from 145.18 the general fund to the center for arts education for the fiscal 145.19 years designated: 145.20 $7,239,000 ..... 2000 145.21 $7,400,000 ..... 2001 145.22 Of each year's appropriation, $154,000 is to fund artist 145.23 and arts organization participation in the education residency 145.24 and education technology projects, $75,000 is for school support 145.25 for the residency project, $121,000 is for further development 145.26 of the partners: arts and school for students (PASS) program, 145.27 including pilots, and $220,000$110,000 is to fund the center 145.28 for arts education base for asset preservation and facility 145.29 repair. The guidelines for the education residency project and 145.30 the pass program shall be developed and defined by the center 145.31 for arts education in cooperation with the Minnesota arts 145.32 board. The Minnesota arts board shall participate in the review 145.33 and allocation process. The center for arts education and the 145.34 Minnesota arts board shall cooperate to fund these projects. 145.35 Any balance in the first year does not cancel but is 145.36 available in the second year. 146.1 EFFECTIVE DATE:This section is effective the day 146.2 following final enactment. 146.3 Sec. 2. [PURCHASING COMPUTER HARDWARE AND SOFTWARE.] 146.4 The department of children, families, and learning and 146.5 local school districts shall not be precluded from purchasing 146.6 computer hardware and software from specific vendors. The 146.7 department of children, families, and learning's technology 146.8 standards shall include provisions for interoperability of 146.9 computer systems. 146.10 ARTICLE 9 146.11 TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS 146.12 Section 1. Minnesota Statutes 1998, section 120A.22, 146.13 subdivision 3, is amended to read: 146.14 Subd. 3. [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 146.15 this section and sections 120A.24 ,and 120A.26, and 120A.41,146.16 "parent" means a parent, guardian, or other person having legal 146.17 custody of a child. 146.18 (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 146.19 means a parent, guardian, or other person having legal custody 146.20 of a child under age 18. For an unmarried pupil age 18 or over, 146.21 "parent" means the pupil unless a guardian or conservator has 146.22 been appointed, in which case it means the guardian or 146.23 conservator. 146.24 (c) For purposes of sections 125A.03 to 125A.24 and 146.25 125A.65, the school district of residence for an unmarried pupil 146.26 age 18 or over who is a parent under paragraph (b) and who is 146.27 placed in a center for care and treatment, shall be the school 146.28 district in which the pupil's biological or adoptive parent or 146.29 designated guardian resides. 146.30 (d) For a married pupil age 18 or over, the school district 146.31 of residence is the school district in which the married pupil 146.32 resides. 146.33 Sec. 2. Minnesota Statutes 1998, section 122A.31, 146.34 subdivision 4, is amended to read: 146.35 Subd. 4. [REIMBURSEMENT.] For purposes of revenue 146.36 under sections 125A.77 andsection 125A.78, the department of 147.1 children, families, and learning must only reimburse school 147.2 districts for the services of those interpreters/transliterators 147.3 who satisfy the standards of competency under this section. 147.4 Sec. 3. Minnesota Statutes 1998, section 123B.02, is 147.5 amended by adding a subdivision to read: 147.6 Subd. 5a. [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 147.7 school property shall be governed according to section 609.605, 147.8 subdivision 4. 147.9 Sec. 4. Minnesota Statutes 1998, section 123B.85, 147.10 subdivision 1, is amended to read: 147.11 Subdivision 1. [APPLICATION.] The following words and 147.12 terms in sections 121A.585, 121A.59, 123B.84 to 123B.87, and147.13 123B.89 to123B.90, and 123B.91, shall have the following 147.14 meanings ascribed to them. 147.15 Sec. 5. Minnesota Statutes 1999 Supplement, section 147.16 124D.128, subdivision 2, is amended to read: 147.17 Subd. 2. [COMMISSIONER DESIGNATION.] An area learning 147.18 center designated by the state must be a site. To be 147.19 designated, a district or center must demonstrate to the 147.20 commissioner that it will: 147.21 (1) provide a program of instruction that permits pupils to 147.22 receive instruction throughout the entire year; and 147.23 (2) maintain a record system that, for purposes of section 147.24 124.17126C.05, permits identification of membership 147.25 attributable to pupils participating in the program. The record 147.26 system and identification must ensure that the program will not 147.27 have the effect of increasing the total number of pupil units 147.28 attributable to an individual pupil as a result of a learning 147.29 year program. 147.30 Sec. 6. Minnesota Statutes 1998, section 124D.454, 147.31 subdivision 2, is amended to read: 147.32 Subd. 2. [DEFINITIONS.] For the purposes of this 147.33 section and section 125A.77, the definitions in this subdivision 147.34 apply. 147.35 (a) "Base year" for fiscal year 1996 means fiscal year 1995. 147.36 Base year for later fiscal years means the second fiscal year 148.1 preceding the fiscal year for which aid will be paid. 148.2 (b) "Basic revenue" has the meaning given it in section 148.3 126C.10, subdivision 2. For the purposes of computing basic 148.4 revenue pursuant to this section, each child with a disability 148.5 shall be counted as prescribed in section 126C.05, subdivision 1. 148.6 (c) "Average daily membership" has the meaning given it in 148.7 section 126C.05. 148.8 (d) "Program growth factor" means 1.00 for fiscal year 1998 148.9 and later. 148.10 (e) "Aid percentage factor" means 60 percent for fiscal 148.11 year 1996, 70 percent for fiscal year 1997, 80 percent for 148.12 fiscal year 1998, 90 percent for fiscal year 1999, and 100 148.13 percent for fiscal year 2000 and later. 148.14 Sec. 7. Minnesota Statutes 1998, section 124D.454, 148.15 subdivision 10, is amended to read: 148.16 Subd. 10. [EXCLUSION.] A district shall not receive aid 148.17 pursuant to section 124D.453 ,or 125A.76 , or 125A.77for 148.18 salaries, supplies, travel or equipment for which the district 148.19 receives aid pursuant to this section. 148.20 Sec. 8. Minnesota Statutes 1999 Supplement, section 148.21 125A.023, subdivision 3, is amended to read: 148.22 Subd. 3. [DEFINITIONS.] For purposes of this section and 148.23 section 125A.027, the following terms have the meanings given 148.24 them: 148.25 (a) "Health plan" means: 148.26 (1) a health plan under section 62Q.01, subdivision 3; 148.27 (2) a county-based purchasing plan under section 256B.692; 148.28 (3) a self-insured health plan established by a local 148.29 government under section 471.617; or 148.30 (4) self-insured health coverage provided by the state to 148.31 its employees or retirees. 148.32 (b) For purposes of this section, "health plan company" 148.33 means an entity that issues a health plan as defined in 148.34 paragraph (a). 148.35 (c) "Individual interagency intervention plan" means a 148.36 standardized written plan describing those programs or services 149.1 and the accompanying funding sources available to eligible 149.2 children with disabilities. 149.3 (d) "Interagency intervention service system" means a 149.4 system that coordinates services and programs required in state 149.5 and federal law to meet the needs of eligible children with 149.6 disabilities ages three to 21, including: 149.7 (1) services provided under the following programs or 149.8 initiatives administered by state or local agencies: 149.9 (i) the maternal and child health program under title V of 149.10 the Social Security Act, United States Code, title 42, sections 149.11 701 to 709; 149.12 (ii) the Individuals with Disabilities Education Act under 149.13 United States Code, title 20, chapter 33, subchapter II, 149.14 sections 1411 to 1420; 149.15 (iii) medical assistance under the Social Security Act, 149.16 United States Code, title 42, chapter 7, subchapter XIX, section 149.17 1396, et seq.; 149.18 (iv) the Developmental Disabilities Assistance and Bill of 149.19 Rights Act, United States Code, title 42, chapter 75, subchapter 149.20 II, sections 6021 to 6030, Part B; 149.21 (v) the Head Start Act, United States Code, title 42, 149.22 chapter 105, subchapter II, sections 9831 to 9852; 149.23 (vi) rehabilitation services provided under chapter 268A; 149.24 (vii) Juvenile Court Act services provided under sections 149.25 260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 149.26 260C.451; 149.27 (viii) the children's mental health collaboratives under 149.28 section 245.493; 149.29 (ix) the family service collaboratives under section 149.30 124D.23; 149.31 (x) the family community support plan under section 149.32 245.4881, subdivision 4; 149.33 (xi) the MinnesotaCare program under chapter 256L; 149.34 (xii) the community health services grants under chapter 149.35 145; 149.36 (xiii) the Community Social Services Act funding under the 150.1 Social Security Act, United States Code, title 42, sections 1397 150.2 to 1397f; and 150.3 (xiv) the community interagencytransition interagency 150.4 committees under section 125A.22; 150.5 (2) services provided under a health plan in conformity 150.6 with an individual family service plan or an individual 150.7 education plan; and 150.8 (3) additional appropriate services that local agencies and 150.9 counties provide on an individual need basis upon determining 150.10 eligibility and receiving a request from the interagency early 150.11 intervention committee and the child's parent. 150.12 (e) "Children with disabilities" has the meaning given in 150.13 section 125A.02. 150.14 (f) A "standardized written plan" means those individual 150.15 services or programs available through the interagency 150.16 intervention service system to an eligible child other than the 150.17 services or programs described in the child's individual 150.18 education plan or the child's individual family service plan. 150.19 Sec. 9. Minnesota Statutes 1999 Supplement, section 150.20 125A.023, subdivision 5, is amended to read: 150.21 Subd. 5. [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 150.22 commissioner of children, families, and learning, based on 150.23 recommendations from the state interagency committee, shall 150.24 issue a request for proposals by January 1, 1999, for grants to 150.25 the governing boards of interagency early intervention 150.26 committees under section 125A.027 or a combination of one or 150.27 more counties and school districts to establish five voluntary 150.28 interagency intervention demonstration projects. One grant 150.29 shall be used to implement a coordinated service system for all 150.30 eligible children with disabilities up to age five who received 150.31 services under sections 125A.26 to 125A.48. One grant shall be 150.32 used to implement a coordinated service system for a population 150.33 of minority children with disabilities from ages 12 to 21, who 150.34 may have behavioral problems and are in need of transitional 150.35 services. Each project must be operational by July 1, 1999. 150.36 The governing boards of the interagency early intervention 151.1 committees and the counties and school districts receiving 151.2 project grants must develop efficient ways to coordinate 151.3 services and funding for children with disabilities ages three 151.4 to 21, consistent with the requirements of this section and 151.5 section 125A.027 and the guidelines developed by the state 151.6 interagency committee under this section. 151.7 (b) The state interagency committee shall evaluate the 151.8 demonstration projects and provide the evaluation results to 151.9 interagency early intervention committees. 151.10 Sec. 10. Minnesota Statutes 1999 Supplement, section 151.11 125A.08, is amended to read: 151.12 125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 151.13 (a) As defined in this section, to the extent required by151.14 federal law as of July 1, 2000,every district must ensure the 151.15 following: 151.16 (1) all students with disabilities are provided the special 151.17 instruction and services which are appropriate to their needs. 151.18 Where the individual education plan team has determined 151.19 appropriate goals and objectives based on the student's needs, 151.20 including the extent to which the student can be included in the 151.21 least restrictive environment, and where there are essentially 151.22 equivalent and effective instruction, related services, or 151.23 assistive technology devices available to meet the student's 151.24 needs, cost to the district may be among the factors considered 151.25 by the team in choosing how to provide the appropriate services, 151.26 instruction, or devices that are to be made part of the 151.27 student's individual education plan. The individual education 151.28 plan team shall consider and may authorize services covered by 151.29 medical assistance according to section 256B.0625, subdivision 151.30 26. The student's needs and the special education instruction 151.31 and services to be provided must be agreed upon through the 151.32 development of an individual education plan. The plan must 151.33 address the student's need to develop skills to live and work as 151.34 independently as possible within the community. By grade 9 or 151.35 age 14, the plan must address the student's needs for transition 151.36 from secondary services to post-secondary education and 152.1 training, employment, community participation, recreation, and 152.2 leisure and home living. In developing the plan, districts must 152.3 inform parents of the full range of transitional goals and 152.4 related services that should be considered. The plan must 152.5 include a statement of the needed transition services, including 152.6 a statement of the interagency responsibilities or linkages or 152.7 both before secondary services are concluded; 152.8 (2) children with a disability under age five and their 152.9 families are provided special instruction and services 152.10 appropriate to the child's level of functioning and needs; 152.11 (3) children with a disability and their parents or 152.12 guardians are guaranteed procedural safeguards and the right to 152.13 participate in decisions involving identification, assessment 152.14 including assistive technology assessment, and educational 152.15 placement of children with a disability; 152.16 (4) eligibility and needs of children with a disability are 152.17 determined by an initial assessment or reassessment, which may 152.18 be completed using existing data under United States Code, title 152.19 20, section 33, et seq.; 152.20 (5) to the maximum extent appropriate, children with a 152.21 disability, including those in public or private institutions or 152.22 other care facilities, are educated with children who are not 152.23 disabled, and that special classes, separate schooling, or other 152.24 removal of children with a disability from the regular 152.25 educational environment occurs only when and to the extent that 152.26 the nature or severity of the disability is such that education 152.27 in regular classes with the use of supplementary services cannot 152.28 be achieved satisfactorily; 152.29 (6) in accordance with recognized professional standards, 152.30 testing and evaluation materials, and procedures used for the 152.31 purposes of classification and placement of children with a 152.32 disability are selected and administered so as not to be 152.33 racially or culturally discriminatory; and 152.34 (7) the rights of the child are protected when the parents 152.35 or guardians are not known or not available, or the child is a 152.36 ward of the state. 153.1 (b) For paraprofessionals employed to work in programs for 153.2 students with disabilities, the school board in each district 153.3 shall ensure that: 153.4 (1) before or immediately upon employment, each 153.5 paraprofessional develops sufficient knowledge and skills in 153.6 emergency procedures, building orientation, roles and 153.7 responsibilities, confidentiality, vulnerability, and 153.8 reportability, among other things, to begin meeting the needs of 153.9 the students with whom the paraprofessional works; 153.10 (2) annual training opportunities are available to enable 153.11 the paraprofessional to continue to further develop the 153.12 knowledge and skills that are specific to the students with whom 153.13 the paraprofessional works, including understanding 153.14 disabilities, following lesson plans, and implementing follow-up 153.15 instructional procedures and activities; and 153.16 (3) a districtwide process obligates each paraprofessional 153.17 to work under the ongoing direction of a licensed teacher and, 153.18 where appropriate and possible, the supervision of a school 153.19 nurse. 153.20 Sec. 11. Minnesota Statutes 1998, section 125A.76, 153.21 subdivision 7, is amended to read: 153.22 Subd. 7. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 153.23 INTERMEDIATES.] For the purposes of this section and section153.24 125A.77, a special education cooperative or an intermediate 153.25 district must allocate its approved expenditures for special 153.26 education programs among participating school districts. 153.27 Sec. 12. Minnesota Statutes 1999 Supplement, section 153.28 125A.79, subdivision 8, is amended to read: 153.29 Subd. 8. [OUT-OF-STATE TUITION.] For children who are 153.30 residents of the state, receive services under section 125A.76, 153.31 subdivisions 1 and 2, and are placed in a care and treatment 153.32 facility by court action in a state that does not have a 153.33 reciprocity agreement with the commissioner under section 153.34 125A.115125A.155, the resident school district shall submit the 153.35 balance of the tuition bills, minus the amount of the basic 153.36 revenue, as defined by section 126C.10, subdivision 2, of the 154.1 district for the child and the special education aid, and any 154.2 other aid earned on behalf of the child. 154.3 Sec. 13. Minnesota Statutes 1999 Supplement, section 154.4 125A.80, is amended to read: 154.5 125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 154.6 OUT-OF-HOME PLACED STUDENTS.] 154.7 The commissioner, in cooperation with the commissioners of 154.8 human services and corrections and with input from appropriate 154.9 billing system users, shall develop and implement a uniform 154.10 billing system for school districts and other agencies, 154.11 including private providers, who provide the educational 154.12 services for students who are placed out of the home. The 154.13 uniform billing system must: 154.14 (1) allow for the proper and timely billing to districts by 154.15 service providers with a minimum amount of district 154.16 administration; 154.17 (2) allow districts to bill the state for certain types of 154.18 special education and regular education services as provided by 154.19 law; 154.20 (3) provide flexibility for the types of services that are 154.21 provided for children placed out of the home, including day 154.22 treatment services; 154.23 (4) allow the commissioner to track the type, cost, and 154.24 quality of services provided for children placed out of the 154.25 home; 154.26 (5) conform existing special education and proposed regular 154.27 education billing procedures; 154.28 (6) provide a uniform reporting standard of per diem rates; 154.29 (7) determine allowable expenses and maximum reimbursement 154.30 rates for the state reimbursement of care and treatment services 154.31 according to section 124D.701; and 154.32 (8) provide a process for the district to appeal to the 154.33 commissioner tuition bills submitted to districts and to the 154.34 state. 154.35 Sec. 14. Minnesota Statutes 1999 Supplement, section 154.36 125B.21, subdivision 3, is amended to read: 155.1 Subd. 3. [CRITERIA.] In addition to responsibilities of 155.2 the council under Laws 1993, First Special Session chapter 2, as 155.3 amended, the telecommunications council shall evaluate grant 155.4 applications under section 124C.74125B.20 and applications from 155.5 district organizations using the following criteria: 155.6 (1) evidence of cooperative arrangements with other 155.7 post-secondary institutions, school districts, and community and 155.8 regional libraries in the geographic region; 155.9 (2) plans for shared classes and programs; 155.10 (3) avoidance of network duplication; 155.11 (4) evidence of efficiencies to be achieved in delivery of 155.12 instruction due to use of telecommunications; 155.13 (5) a plan for development of a list of all courses 155.14 available in the region for delivery at a distance; 155.15 (6) a plan for coordinating and scheduling courses; and 155.16 (7) a plan for evaluation of costs, access, and outcomes. 155.17 Sec. 15. Minnesota Statutes 1999 Supplement, section 155.18 126C.10, subdivision 24, is amended to read: 155.19 Subd. 24. [EQUITY REVENUE.] (a) A school district 155.20 qualifies for equity revenue if the school district's adjusted 155.21 marginal cost pupil unit amount of basic revenue, supplemental 155.22 revenue, transition revenue, and referendum revenue is less than 155.23 the 90th percentile of school districts in its equity region for 155.24 those revenue categories and the school district's 155.25 administrative offices are not located in a city of the first 155.26 class on July 1, 1999. 155.27 (b) Equity revenue for a qualifying district that receives 155.28 referendum revenue under section 126C.17, subdivision 4, equals 155.29 the product of (1) the district's adjusted marginal cost pupil 155.30 units for that year; times (2) the sum of (i) $10, plus (ii) 155.31 $30, times the school district's equity index computed under 155.32 section 126C.10,subdivision 627. 155.33 (c) Equity revenue for a qualifying district that does not 155.34 receive referendum revenue under section 126C.17, subdivision 4, 155.35 equals the product of the district's adjusted marginal cost 155.36 pupil units for that year times $10. 156.1 Sec. 16. Minnesota Statutes 1998, section 126C.12, 156.2 subdivision 2, is amended to read: 156.3 Subd. 2. [INSTRUCTOR DEFINED.] Primary instructor means a 156.4 public employee licensed by the board of teaching whose duties 156.5 are full-time instruction, excluding a teacher for whom 156.6 categorical aids are received pursuant to sectionssection 156.7 125A.76 and 125A.77. Except as provided in section 122A.68, 156.8 subdivision 6, instructor does not include supervisory and 156.9 support personnel, except school social workers as defined in 156.10 section 122A.15. An instructor whose duties are less than 156.11 full-time instruction must be included as an equivalent only for 156.12 the number of hours of instruction in grades kindergarten 156.13 through 6. 156.14 Sec. 17. Minnesota Statutes 1998, section 127A.05, 156.15 subdivision 4, is amended to read: 156.16 Subd. 4. [ADMINISTRATIVE RULES.] The commissioner may 156.17 adopt new rules and amend themor amend any existing rules only 156.18 under specific authority and consistent with the requirements of 156.19 chapter 14. The commissioner may repeal any existing 156.20 rules adopted by the commissioner. Notwithstanding the 156.21 provisions of section 14.05, subdivision 4, the commissioner may 156.22 grant a variance to rules adopted by the commissioner upon 156.23 application by a school district for purposes of implementing 156.24 experimental programs in learning or school management. This 156.25 subdivision shall not prohibit the commissioner from making 156.26 technical changes or corrections to adoptedrules adopted by the 156.27 commissioner. 156.28 Sec. 18. Minnesota Statutes 1998, section 127A.41, 156.29 subdivision 8, is amended to read: 156.30 Subd. 8. [APPROPRIATION TRANSFERS.] If a direct 156.31 appropriation from the general fund to the department for any 156.32 education aid or grant authorized in this chapter and chapters 156.33 122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 156.34 under sections 124D.135, 124D.14,124D.16, 124D.20, 124D.21, 156.35 124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 156.36 exceeds the amount required, the commissioner may transfer the 157.1 excess to any education aid or grant appropriation that is 157.2 insufficient. However, section 126C.20 applies to a deficiency 157.3 in the direct appropriation for general education aid. Excess 157.4 appropriations must be allocated proportionately among aids or 157.5 grants that have insufficient appropriations. The commissioner 157.6 of finance shall make the necessary transfers among 157.7 appropriations according to the determinations of the 157.8 commissioner. If the amount of the direct appropriation for the 157.9 aid or grant plus the amount transferred according to this 157.10 subdivision is insufficient, the commissioner shall prorate the 157.11 available amount among eligible districts. The state is not 157.12 obligated for any additional amounts. 157.13 Sec. 19. Minnesota Statutes 1998, section 127A.41, 157.14 subdivision 9, is amended to read: 157.15 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 157.16 PROGRAMS.] If a direct appropriation from the general fund to 157.17 the department of children, families, and learning for an 157.18 education aid or grant authorized under section 157.19 124D.135, 124D.14,124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 157.20 124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 157.21 required, the commissioner of children, families, and learning 157.22 may transfer the excess to any education aid or grant 157.23 appropriation that is insufficiently funded under these sections. 157.24 Excess appropriations shall be allocated proportionately among 157.25 aids or grants that have insufficient appropriations. The 157.26 commissioner of finance shall make the necessary transfers among 157.27 appropriations according to the determinations of the 157.28 commissioner of children, families, and learning. If the amount 157.29 of the direct appropriation for the aid or grant plus the amount 157.30 transferred according to this subdivision is insufficient, the 157.31 commissioner shall prorate the available amount among eligible 157.32 districts. The state is not obligated for any additional 157.33 amounts. 157.34 Sec. 20. Minnesota Statutes 1999 Supplement, section 157.35 181A.04, subdivision 6, is amended to read: 157.36 Subd. 6. A high school student under the age of 18 must 158.1 not be permitted to work after 11:00 p.m. on an evening before a 158.2 school day or before 5:00 a.m. on a school day, except as 158.3 permitted by section 181A.07, subdivisions 1, 2, 3, and 4. If a 158.4 high school student under the age of 18 has supplied the 158.5 employer with a note signed by the parent or guardian of the 158.6 student, the student may be permitted to work until 11:30 p.m. 158.7 on the evening before a school day and beginning at 4:30 a.m. on 158.8 a school day. 158.9 For the purpose of this subdivision, a high school student 158.10 does not include a student enrolled in an alternative education 158.11 program approved by the commissioner of children, families, and 158.12 learning or an area learning center, including area learning 158.13 centers under sections 123A.05 to 123A.08 or according to 158.14 section 122A.164122A.163. 158.15 Sec. 21. Laws 1999, chapter 241, article 1, section 69, is 158.16 amended to read: 158.17 Sec. 69. [REPEALER.] 158.18 (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 158.19 subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 158.20 (b) Minnesota Statutes 1998, section 120B.05, is repealed 158.21 effective for revenue for fiscal year 2000. 158.22 (c) Minnesota Statutes 1998, section 124D.65, subdivisions 158.23 1, 2, and 3, are repealed effective for revenue for fiscal year 158.24 2001. 158.25 (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 158.26 subdivision 4; and 126C.06, are repealed effective the day 158.27 following final enactment. 158.28 This appropriation is available until June 30, 2001.158.29 Sec. 22. Laws 1999, chapter 241, article 4, section 27, 158.30 subdivision 5, is amended to read: 158.31 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 158.32 alternative facilities bonding aid, according to Minnesota 158.33 Statutes, section 123B.59: 158.34 $19,058,000 ..... 2000 158.35 $19,286,000 ..... 2001 158.36 The 2000 appropriation includes $1,700,000 for 20001999 159.1 and $17,358,000 for 20012000. 159.2 The 2001 appropriation includes $1,928,000 for 2000 and 159.3 $17,358,000 for 2001. 159.4 EFFECTIVE DATE:This section is effective the day 159.5 following final enactment. 159.6 Sec. 23. Laws 1999, chapter 241, article 6, section 14, 159.7 subdivision 5, is amended to read: 159.8 Subd. 5. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 159.9 pupil transportation aid under Minnesota Statutes, section 159.10 123B.92, subdivision 9: 159.11 $18,586,000 ..... 2000 159.12 $20,922,000 ..... 2001 159.13 The 2000 appropriation includes $1,848,000 for 20001999 159.14 and $16,738,000 for 20012000. 159.15 The 2001 appropriation includes $1,860,000 for 2000 and 159.16 $19,062,000 for 2001. 159.17 EFFECTIVE DATE:This section is effective the day 159.18 following final enactment. 159.19 Sec. 24. Laws 1999, chapter 241, article 9, section 49, is 159.20 amended to read: 159.21 Sec. 49. [TRANSITION.] 159.22 Notwithstanding Minnesota Statutes, section 15.0597, the 159.23 terms of persons who are members appointed by the governor 159.24 before the effective date of section 837, shall have their term 159.25 end on July 31 of the year following the last year of their 159.26 appointment. 159.27 Sec. 25. [REVISOR INSTRUCTION.] 159.28 In the next and subsequent editions of Minnesota Statutes, 159.29 the revisor shall renumber section 123B.02, subdivision 12, as 159.30 120A.22, subdivision 1a. The revisor shall correct all 159.31 cross-references to be consistent with the renumbering. 159.32 Sec. 26. [REPEALER.] 159.33 Laws 1999, chapter 241, article 9, sections 35 and 36, are 159.34 repealed. Laws 1999, chapter 245, article 4, section 3, is 159.35 repealed. 159.36 ARTICLE 10 160.1 HIGHER EDUCATION 160.2 APPROPRIATIONS 160.3 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 160.4 The sums in the columns marked "APPROPRIATIONS" are 160.5 appropriated from the general fund, or other named fund, to the 160.6 agencies and for the purposes specified in this article. The 160.7 listing of an amount under the figure "2000" or "2001" in this 160.8 article indicates that the amount is appropriated to be 160.9 available for the fiscal year ending June 30, 2000, or June 30, 160.10 2001, respectively. "The first year" is fiscal year 2000. "The 160.11 second year" is fiscal year 2001. "The biennium" is fiscal 160.12 years 2000 and 2001. 160.13 SUMMARY BY FUND 160.14 2000 2001 TOTAL 160.15 General -0- $ 29,000,000 $ 29,000,000 160.16 SUMMARY BY AGENCY - ALL FUNDS 160.17 2000 2001 TOTAL 160.18 Board of Trustees of the Minnesota 160.19 State Colleges and Universities 160.20 -0- 13,180,000 13,180,000 160.21 Board of Regents of the University 160.22 of Minnesota 160.23 -0- 15,820,000 15,820,000 160.24 APPROPRIATIONS 160.25 Available for the Year 160.26 Ending June 30 160.27 2000 2001 160.28 Sec. 2. BOARD OF TRUSTEES OF THE 160.29 MINNESOTA STATE COLLEGES AND UNIVERSITIES 160.30 Subdivision 1. Total 160.31 Appropriation $13,180,000 160.32 The amounts that may be spent from this 160.33 appropriation for each purpose are 160.34 specified in the following subdivisions. 160.35 Subd. 2. Deficiency 160.36 Appropriations 160.37 -0- 11,600,000 160.38 This is a one-time appropriation under 160.39 Minnesota Statutes, section 135A.031, 160.40 subdivision 4, to fund unanticipated 160.41 enrollment increases. This 160.42 appropriation is added to the 160.43 appropriation in Laws 1999, chapter 160.44 214, article 1, section 3, subdivision 161.1 1. 161.2 Subd. 3. Farm Business 161.3 Management 161.4 -0- 250,000 161.5 This appropriation is to provide 161.6 educational and management services to 161.7 a greater number of farmers facing 161.8 financial hardship in the farm wrap and 161.9 farm help network service areas. 161.10 Subd. 4. Urban Teacher 161.11 Preparation 161.12 -0- 1,250,000 161.13 This appropriation is for the 161.14 development and implementation of the 161.15 secondary and early childhood education 161.16 components of the program established 161.17 by this subdivision. 161.18 (a) The board shall offer a program of 161.19 teacher preparation leading to 161.20 licensure, involving Metropolitan State 161.21 University, Inver Hills Community 161.22 College, and Minneapolis Community and 161.23 Technical College. The institutions 161.24 involved shall enter into an agreement 161.25 whereby Inver Hills Community College 161.26 and Minneapolis Community and Technical 161.27 College shall provide the first two 161.28 years of the program, and Metropolitan 161.29 State University shall provide the 161.30 final two years of the program. In 161.31 fall semester 2000, Minneapolis 161.32 Community and Technical College and 161.33 Inver Hills Community College shall 161.34 offer a preeducation program. After 161.35 development of the program in fiscal 161.36 year 2001, Metropolitan State 161.37 University shall begin its licensure 161.38 program in fall semester 2001. The 161.39 program shall focus on preparing 161.40 teachers to meet the specific needs of 161.41 urban and inner-ring suburban schools 161.42 and shall emphasize significant direct 161.43 classroom teaching experience and 161.44 mentoring throughout each student's 161.45 preparation. The program may also 161.46 focus on the professional development 161.47 of pretenure teachers. Metropolitan 161.48 State University, Inver Hills Community 161.49 College, and Minneapolis Community and 161.50 Technical College are encouraged to 161.51 enter into partnerships with urban and 161.52 inner-ring suburban schools to provide 161.53 for significant involvement of 161.54 elementary and secondary teachers in 161.55 the mentoring of students enrolled in 161.56 the program. 161.57 (b) The legislature expects the program 161.58 to enroll at least 50 percent students 161.59 of color. 161.60 (c) By February 15, 2002, and annually 161.61 thereafter, the board of trustees shall 161.62 provide a progress report to the chairs 162.1 of the higher education finance 162.2 divisions of the legislature regarding 162.3 the development of the teacher 162.4 preparation program. The annual report 162.5 shall include, to the extent 162.6 practicable at the time of preparation, 162.7 information comparing program outcomes 162.8 with the target expectations set forth 162.9 in paragraph (b). The report shall 162.10 include feedback from enrolled students 162.11 concerning how the program meets their 162.12 needs, as well as from cooperating 162.13 elementary and secondary schools on how 162.14 the students are performing on site. 162.15 Subd. 5. Cook County Higher 162.16 Education Project 162.17 -0- 80,000 162.18 This appropriation is for the Cook 162.19 county higher education project for 162.20 delivery of educational services 162.21 electronically. The board shall submit 162.22 a report in the biennial budget 162.23 document on uses of the appropriation. 162.24 The report shall include information 162.25 regarding the number of students 162.26 served, credit hours delivered, other 162.27 services provided, strategic direction 162.28 of the project, expected future funding 162.29 sources, and collaborations with other 162.30 organizations. 162.31 Sec. 3. BOARD OF REGENTS OF THE 162.32 UNIVERSITY OF MINNESOTA 162.33 Subdivision 1. Total 162.34 Appropriation 15,820,000 162.35 The amounts that may be spent from this 162.36 appropriation for each purpose are 162.37 specified in the following subdivisions. 162.38 Subd. 2. Operations and 162.39 Maintenance 162.40 (a) North Star Research Coalition 162.41 -0- 15,000,000 162.42 This is a one-time appropriation for 162.43 the university's contribution to the 162.44 North Star Research Coalition. The 162.45 commissioner of finance may not release 162.46 this appropriation until the university 162.47 presents evidence that a nonprofit 162.48 tax-exempt corporation, to be known as 162.49 the North Star Research Coalition, in a 162.50 form complying with this paragraph, has 162.51 been established. The commissioner 162.52 shall release the money appropriated, 162.53 as a one-for-one match for money from 162.54 nonstate sources, on a quarterly basis, 162.55 until the appropriation is expended. 162.56 Notwithstanding any law to the 162.57 contrary, this appropriation shall not 162.58 cancel, but is available until expended. 162.59 The board of regents is requested to 162.60 establish a partnership with private 163.1 industry to leverage the university's 163.2 research capabilities into economic 163.3 development results through the 163.4 creation of a nonprofit tax-exempt 163.5 corporation to be known as the North 163.6 Star Research Coalition. The money for 163.7 projects funded under this initiative 163.8 must be used to fund research projects 163.9 consistent with priorities established 163.10 by the partnership, purchase equipment 163.11 for research laboratories, and 163.12 establish endowed faculty chairs in the 163.13 area of technology-based research. 163.14 The coalition may fund research 163.15 projects that establish collaborative 163.16 research efforts among the University 163.17 of Minnesota and the private sector, 163.18 the Mayo Clinic, nonprofit research 163.19 institutes, or the Minnesota state 163.20 colleges and universities. 163.21 The duties of the coalition include: 163.22 (1) identifying technology-based 163.23 research projects that have the 163.24 potential to create significant 163.25 opportunities for economic development 163.26 and industrial growth in the state; 163.27 (2) strengthening the university's 163.28 research capabilities in subject areas 163.29 associated with emerging 163.30 technology-based industries; 163.31 (3) expanding the research capacity of 163.32 the university through the creation of 163.33 opportunities for the university to 163.34 assist private enterprises in emerging 163.35 technology-based industries; 163.36 (4) promoting the transfer of 163.37 technology from the research laboratory 163.38 to commercial application by 163.39 businesses; 163.40 (5) developing application procedures 163.41 for, reviewing, and prioritizing 163.42 research projects seeking funding under 163.43 this initiative; and 163.44 (6) creating opportunities for 163.45 collaborative research opportunities 163.46 among the University of Minnesota, the 163.47 Mayo Clinic, nonprofit research 163.48 institutes, and the Minnesota state 163.49 colleges and universities. 163.50 The board shall have the authority to 163.51 allocate state and nonstate money to 163.52 projects. 163.53 The incorporating documents of the 163.54 North Star Research Coalition must 163.55 provide for representation of 163.56 university and private sector interests 163.57 on the coalition's board of directors 163.58 and provide that changes in the 163.59 governance structure require a super 163.60 majority of the board. The board 163.61 consists of 12 members. Six shall be 164.1 appointed by the board of regents of 164.2 the University of Minnesota and need 164.3 not be affiliated with the university. 164.4 The initial six members representing 164.5 the private sector shall be appointed 164.6 by the governor. Subsequent members 164.7 representing the private sector shall 164.8 be appointed by the incumbent members. 164.9 Private sector members of the board 164.10 must have expertise in the technology 164.11 research needs of the state and not be 164.12 affiliated with the university. 164.13 (b) Duluth; Child Care 164.14 -0- 220,000 164.15 To provide for child care in the newly 164.16 renovated Kirby Center. 164.17 Subd. 3. Special 164.18 Appropriation 164.19 Agricultural Rapid Response Fund 164.20 -0- 600,000 164.21 This appropriation is for the rapid 164.22 agricultural response fund. The 164.23 university shall report on the uses of 164.24 this appropriation in the biennial 164.25 budget document. This appropriation is 164.26 added to the appropriation in Laws 164.27 1999, chapter 214, article 1, section 164.28 4, subdivision 5, paragraph (a). 164.29 Sec. 4. Minnesota Statutes 1998, section 136A.125, is 164.30 amended by adding a subdivision to read: 164.31 Subd. 4c. [SURPLUS FUNDS.] Any projected surplus 164.32 appropriation in the child care grant program in the first year 164.33 of a biennium shall be used to augment the maximum award in 164.34 subdivision 4 in the second year of the biennium. 164.35 Sec. 5. Laws 1999, chapter 214, article 1, section 4, 164.36 subdivision 2, is amended to read: 164.37 Subd. 2. Operations and 164.38 Maintenance 513,279,000 533,870,000 164.39 Estimated Expenditures 164.40 and Appropriations 164.41 The legislature estimates that 164.42 instructional expenditures will be 164.43 $461,521,000 in the first year and 164.44 $484,679,000 in the second year. 164.45 The legislature estimates that 164.46 noninstructional expenditures will be 164.47 $202,367,000 in the first year and 164.48 $201,717,000 in the second year. 164.49 By January 30, 2000, the University 164.50 shall submit to the governor and the 164.51 legislature a master academic plan for 165.1 the Rochester region that clearly 165.2 defines the academic needs of the 165.3 region, short and long-term plans to 165.4 address those needs including the 165.5 designation of responsibility among the 165.6 partner institutions, short and 165.7 long-term demographic and enrollment 165.8 projections, physical plant capacity 165.9 and needs, and a delineation of 165.10 missions among the partner institutions 165.11 to avoid competition and duplication. 165.12 Notwithstanding Minnesota Statutes 165.13 1998, section 137.022, subdivision 4, 165.14 in fiscal year 2001 the first $200,000 165.15 of permanent university fund income 165.16 from royalties for mining under state 165.17 mineral leases designated for the 165.18 natural resources research institute 165.19 shall be allocated by the board of 165.20 regents to the department of landscape 165.21 architecture to develop a long-range 165.22 plan for the reclamation of taconite 165.23 mining lands. The board shall allocate 165.24 the money only if an equal or greater165.25 amount of matching money from nonstate165.26 sources has been pledged to support the165.27 project by June 30, 2000in increments 165.28 of $50,000 as each $50,000 is matched 165.29 by nonstate sources, provided that no 165.30 money may be allocated after June 30, 165.31 2001. 165.32 The University of Minnesota academic 165.33 health center, after consultation with 165.34 the health care community and medical 165.35 education and research costs advisory 165.36 committee, shall report by January 15, 165.37 2000, to the higher education finance 165.38 committees on the strategic direction 165.39 of its health professional programs. 165.40 The plans shall include a programmatic 165.41 and financial model for health 165.42 professional education that will meet 165.43 the state's future workforce needs, 165.44 maintain the integrity of the education 165.45 process, provide an appropriate level 165.46 of ongoing financial support, and 165.47 provide a framework for the health 165.48 community and academic health center to 165.49 work together in meeting the health 165.50 needs of the state. The academic 165.51 health center is requested to provide 165.52 the report also to the commissioner of 165.53 health and the legislative commission 165.54 on health care access. 165.55 Sec. 6. [REPEALER.] 165.56 Minnesota Rules, parts 4830.9005, 4830.9010, 4830.9015, 165.57 4830.9020, and 4830.9030, are repealed. 165.58 ARTICLE 11 165.59 EARLY CHILDHOOD AND FAMILY EDUCATION 165.60 Section 1. Minnesota Statutes 1999 Supplement, section 165.61 119B.011, subdivision 12, is amended to read: 166.1 Subd. 12. [EMPLOYMENT PLAN.] "Employment plan" means 166.2 employment of recipients financially eligible for child care 166.3 assistance, or other work activities defined under section 166.4 256J.49, approved in an employability development, job search 166.5 support plan, or employment plan that is developed by the county 166.6 agency, if it is acting as an employment and training service 166.7 provider, or by an employment and training service provider 166.8 certified by the commissioner of economic security or an 166.9 individual designated by the county to provide employment and 166.10 training services. The plans and designation of a service 166.11 provider must meet the requirements of this chapter and chapter 166.12 256J or chapter 256K, Minnesota Rules, parts 3400.0010 to 166.13 3400.0230, and other programs that provide federal reimbursement 166.14 for child care services. 166.15 Sec. 2. Minnesota Statutes 1999 Supplement, section 166.16 119B.011, subdivision 15, is amended to read: 166.17 Subd. 15. [INCOME.] "Income" means earned or unearned 166.18 income received by all family members, including public 166.19 assistance cash benefits and at-home infant care subsidy 166.20 payments, unless specifically excluded. The following are 166.21 excluded from income: funds used to pay for health insurance 166.22 premiums for family members, Supplemental Security Income, 166.23 scholarships, work-study income, and grants that cover costs or 166.24 reimbursement for tuition, fees, books, and educational 166.25 supplies; student loans for tuition, fees, books, supplies, and 166.26 living expenses; state and federal earned income tax credits; 166.27 in-kind income such as food stamps, energy assistance, foster 166.28 care assistance, medical assistance, child care assistance, and 166.29 housing subsidies; earned income of fullfull-time or part-time 166.30 students up to the age of 19, who have not earned a high school 166.31 diploma or GED high school equivalency diploma including 166.32 earnings from summer employment; grant awards under the family 166.33 subsidy program; nonrecurring lump sum income only to the extent 166.34 that it is earmarked and used for the purpose for which it is 166.35 paid; and any income assigned to the public authority according 166.36 to section 256.74 or 256.741. 167.1 Sec. 3. Minnesota Statutes 1999 Supplement, section 167.2 119B.011, subdivision 20, is amended to read: 167.3 Subd. 20. [TRANSITION YEAR FAMILIES.] "Transition year 167.4 families" means families who have received MFIP assistance, or 167.5 who were eligible to receive MFIP assistance after choosing to 167.6 discontinue receipt of the cash portion of MFIP assistance under 167.7 section 256J.31, subdivision 12, for at least three of the last 167.8 six months before losing eligibility for MFIP due to increased167.9 income from employment or child or spousal supportor families 167.10 participating in work first under chapter 256K who meet the 167.11 requirements of section 256K.07. Transition year child care may 167.12 be used to support employment or job search. Transition year 167.13 child care is not available to families who have been 167.14 disqualified from MFIP due to fraud. 167.15 Sec. 4. Minnesota Statutes 1999 Supplement, section 167.16 119B.03, subdivision 4, is amended to read: 167.17 Subd. 4. [FUNDING PRIORITY.] (a) First priority for child 167.18 care assistance under the basic sliding fee program must be 167.19 given to eligible non-MFIP families who do not have a high 167.20 school or general equivalency diploma or who need remedial and 167.21 basic skill courses in order to pursue employment or to pursue 167.22 education leading to employment and who need child care 167.23 assistance to participate in the education program. Within this 167.24 priority, the following subpriorities must be used: 167.25 (1) child care needs of minor parents; 167.26 (2) child care needs of parents under 21 years of age; and 167.27 (3) child care needs of other parents within the priority 167.28 group described in this paragraph. 167.29 (b) Second priority must be given to parents who have 167.30 completed their MFIP or work first transition year. 167.31 (c) Third priority must be given to families who are 167.32 eligible for portable basic sliding fee assistance through the 167.33 portability pool under subdivision 9. 167.34 Sec. 5. Minnesota Statutes 1998, section 119B.03, is 167.35 amended by adding a subdivision to read: 167.36 Subd. 6a. [ALLOCATION DUE TO INCREASED FUNDING.] When 168.1 funding increases are implemented within a calendar year, every 168.2 county must receive an allocation at least equal and 168.3 proportionate to its original allocation for the same time 168.4 period. The remainder of the allocation must be recalculated to 168.5 reflect the funding increase, according to formulas identified 168.6 in subdivision 6. 168.7 Sec. 6. Minnesota Statutes 1999 Supplement, section 168.8 119B.05, subdivision 1, is amended to read: 168.9 Subdivision 1. [ELIGIBLE PARTICIPANTS.] Families eligible 168.10 for child care assistance under the MFIP child care program are: 168.11 (1) MFIP participants who are employed or in job search and 168.12 meet the requirements of section 119B.10; 168.13 (2) persons who are members of transition year families 168.14 under section 119B.011, subdivision 20; 168.15 (3) families who are participating in employment 168.16 orientation or job search, or other employment or training 168.17 activities that are included in an approved employability 168.18 development plan under chapter 256K; 168.19 (4) MFIP families who are participating in work activities 168.20 defined under section 256J.49 as required in their job search 168.21 support or employment plan, or in appeals, hearings, 168.22 assessments, or orientations according to chapter 256J . Child168.23 care assistance to support work activities as described in168.24 section 256J.49 must be available according to sections168.25 119B.011, subdivision 11, 124D.13, 256E.08, and 611A.32 and168.26 titles IVA, IVB, IVE, and XX of the Social Security Act; and 168.27 (5) families who are participating in programs as required 168.28 in tribal contracts under section 119B.02, subdivision 2, or 168.29 256.01, subdivision 2. 168.30 Sec. 7. Minnesota Statutes 1998, section 124D.16, 168.31 subdivision 1, is amended to read: 168.32 Subdivision 1. [PROGRAM REVIEW AND APPROVAL.] By February168.33 15, 1992, for the 1991-1992 school year or by May 1 preceding168.34 subsequent school years, a district must submit to the168.35 commissioners of children, families, and learning, and healthA 168.36 school district shall biennially by May 1 submit to the 169.1 commissioners of children, families, and learning and health the 169.2 program plan required under this subdivision. As determined by 169.3 the commissioners, one-half of the districts shall first submit 169.4 the plan by May 1 of the 2000-2001 school year and one-half of 169.5 the districts shall first submit the plan by May 1 of the 169.6 2001-2002 school year. The program plan must include: 169.7 (1) a description of the services to be provided; 169.8 (2) a plan to ensure children at greatest risk receive 169.9 appropriate services; 169.10 (3) a description of procedures and methods to be used to 169.11 coordinate public and private resources to maximize use of 169.12 existing community resources, including school districts, health 169.13 care facilities, government agencies, neighborhood 169.14 organizations, and other resources knowledgeable in early 169.15 childhood development; 169.16 (4) comments about the district's proposed program by the 169.17 advisory council required by section 124D.15, subdivision 7; and 169.18 (5) agreements with all participating service providers. 169.19 Each commissioner may review and comment on the program, 169.20 and make recommendations to the commissioner of children, 169.21 families, and learning, within 30 days of receiving the plan. 169.22 Sec. 8. Minnesota Statutes 1999 Supplement, section 169.23 124D.221, subdivision 2, is amended to read: 169.24 Subd. 2. [PRIORITY NEIGHBORHOODS.] For grants in 169.25 Minneapolis and St. Paul, the commissioner must give priority to 169.26 neighborhoods in this subdivision. In Minneapolis, priority 169.27 neighborhoods are Near North, Hawthorne, Sumner-Glenwood, 169.28 Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland, 169.29 McKinley, Waite Park, Sheridan, Holland, Lyndale, Folwell, and 169.30 Phillips. In St. Paul, priority neighborhoods are 169.31 Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons 169.32 Bluff, and the West Side. 169.33 Sec. 9. [124D.515] [ADULT BASIC EDUCATION AID 169.34 DEFINITIONS.] 169.35 Subdivision 1. [APPLICABILITY.] For purposes of this 169.36 chapter, the following terms have the meanings given them. 170.1 Subd. 2. [ADULT BASIC EDUCATION CONSORTIUM.] "Adult basic 170.2 education consortium" means a voluntary association of school 170.3 districts, public agencies, or nonprofit organizations that work 170.4 together to provide coordinated adult basic education services 170.5 in a designated geographic area, and that act as a fiscal entity 170.6 providing adult basic education services. 170.7 Subd. 3. [CONTACT HOURS.] (a) "Contact hours" means the 170.8 number of hours during which a student was engaged in learning 170.9 activities provided by an approved adult education program. 170.10 (b) Contact hours for an organization funded in fiscal year 170.11 2000, but not eligible for basic population aid in fiscal year 170.12 2001, is computed by multiplying the organization's contact 170.13 hours by 1.08. 170.14 (c) Contact hours excludes homework. 170.15 Subd. 4. [FIRST PRIOR PROGRAM YEAR.] "First prior program 170.16 year" means the period from May 1 of the second prior fiscal 170.17 year through April 30 of the first prior fiscal year. 170.18 Subd. 5. [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 170.19 means allowable adult basic education expenses of a program that 170.20 are not covered by payments from federal or private for profit 170.21 sources. 170.22 Sec. 10. Minnesota Statutes 1998, section 124D.52, 170.23 subdivision 1, is amended to read: 170.24 Subdivision 1. [PROGRAM REQUIREMENTS.] An adult basic 170.25 education program is a day or evening program offered by a 170.26 district that is for people over 16 years of age who do not 170.27 attend an elementary or secondary school. The program offers 170.28 academic instruction necessary to earn a high school diploma or 170.29 equivalency certificate. Tuition and fees may not be charged to 170.30 a learner for instruction paid under this section, except for a 170.31 security deposit to assure return of materials, supplies, and 170.32 equipment. 170.33 Each approved adult basic education program must develop a 170.34 memorandum of understanding with the local workforce development 170.35 centers located in the approved program's service delivery 170.36 area. The memorandum of understanding must describe how the 171.1 adult basic education program and the workforce development 171.2 centers will cooperate and coordinate services to provide 171.3 unduplicated, efficient, and effective services to clients. 171.4 Adult basic education aid must be spent for adult basic 171.5 education purposes, and to meet the adult basic education 171.6 criteria, as specified in sections 124D.515 to 124D.531. 171.7 Sec. 11. Minnesota Statutes 1998, section 124D.52, 171.8 subdivision 2, is amended to read: 171.9 Subd. 2. [PROGRAM APPROVAL.] (a) To receive aid under this 171.10 section, a district, a consortium of districts, or a private 171.11 nonprofit organization must submit an application by June 1 171.12 describing the program, on a form provided by the department. 171.13 The program must be approved by the commissioner according to 171.14 the following criteria: 171.15 (1) how the needs of different levels of learning will be 171.16 met; 171.17 (2) for continuing programs, an evaluation of results; 171.18 (3) anticipated number and education level of participants; 171.19 (4) coordination with other resources and services; 171.20 (5) participation in a consortium, if any, and money 171.21 available from other participants; 171.22 (6) management and program design; 171.23 (7) volunteer training and use of volunteers; 171.24 (8) staff development services; 171.25 (9) program sites and schedules; and171.26 (10) program expenditures that qualify for aid; 171.27 (11) program ability to provide data related to learner 171.28 outcomes as required by law; and 171.29 (12) a copy of the memorandum of understanding described in 171.30 subdivision 1 submitted to the commissioner. 171.31 (b) The commissioner may grant adult basic education funds171.32 to a private, nonprofit organization to provide services that171.33 are not offered by a district or that are supplemental to a171.34 district's program. The program provided under this provision171.35 must be approved and funded according to the same criteria used171.36 for district programs.172.1 (c)Adult basic education programs may be approved under 172.2 this subdivision for up to five years. Five-year program 172.3 approval must be granted to an applicant who has demonstrated 172.4 the capacity to: 172.5 (1) offer comprehensive learning opportunities and support 172.6 service choices appropriate for and accessible to adults at all 172.7 basic skill need levels; 172.8 (2) provide a participatory and experiential learning 172.9 approach based on the strengths, interests, and needs of each 172.10 adult, that enables adults with basic skill needs to: 172.11 (i) identify, plan for, and evaluate their own progress 172.12 toward achieving their defined educational and occupational 172.13 goals; 172.14 (ii) master the basic academic reading, writing, and 172.15 computational skills, as well as the problem-solving, decision 172.16 making, interpersonal effectiveness, and other life and learning 172.17 skills they need to function effectively in a changing society; 172.18 (iii) locate and be able to use the health, governmental, 172.19 and social services and resources they need to improve their own 172.20 and their families' lives; and 172.21 (iv) continue their education, if they desire, to at least 172.22 the level of secondary school completion, with the ability to 172.23 secure and benefit from continuing education that will enable 172.24 them to become more employable, productive, and responsible 172.25 citizens; 172.26 (3) plan, coordinate, and develop cooperative agreements 172.27 with community resources to address the needs that the adults 172.28 have for support services, such as transportation, flexible 172.29 course scheduling, convenient class locations, and child care; 172.30 (4) collaborate with business, industry, labor unions, and 172.31 employment-training agencies, as well as with family and 172.32 occupational education providers, to arrange for resources and 172.33 services through which adults can attain economic 172.34 self-sufficiency; 172.35 (5) provide sensitive and well trained adult education 172.36 personnel who participate in local, regional, and statewide 173.1 adult basic education staff development events to master 173.2 effective adult learning and teaching techniques; 173.3 (6) participate in regional adult basic education peer 173.4 program reviews and evaluations; and173.5 (7) submit accurate and timely performance and fiscal 173.6 reports; 173.7 (8) submit accurate and timely reports related to program 173.8 outcomes and learner follow-up information; and 173.9 (9) spend adult basic education aid on adult basic 173.10 education purposes only, which are specified in sections 173.11 124D.515 to 124D.531. 173.12 (c) The commissioner shall require each district to provide 173.13 notification by February 1, 2001, of its intent to apply for 173.14 funds under this section as a single district or as part of an 173.15 identified consortium of districts. A district receiving funds 173.16 under this section must notify the commissioner by February 1 of 173.17 its intent to change its application status for applications due 173.18 the following June 1. 173.19 Sec. 12. Minnesota Statutes 1998, section 124D.52, 173.20 subdivision 3, is amended to read: 173.21 Subd. 3. [ACCOUNTS; REVENUE; AID.] Each district, group of 173.22 districts, or private nonprofit organization providing adult 173.23 basic education programs must establish and maintain accounts 173.24 separate from all other district accounts for the receipt and 173.25 disbursement of all funds related to these programs. All 173.26 revenue received pursuant to this section must be utilized 173.27 solely for the purposes of adult basic education programs. 173.28 Federal and state aid plus levymust not equal more than 100 173.29 percent of the actual costunreimbursed expenses of providing 173.30 these programs, excluding in-kind costs. 173.31 Sec. 13. Minnesota Statutes 1998, section 124D.52, is 173.32 amended by adding a subdivision to read: 173.33 Subd. 6. [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 173.34 ADULT BASIC EDUCATION PROGRAMS.] (a) A school district, or adult 173.35 basic education consortium that receives revenue under section 173.36 124D.531, may deliver English as a second language, citizenship, 174.1 or other adult education programming in collaboration with 174.2 community-based and nonprofit organizations located within its 174.3 district or region, and with correctional institutions. The 174.4 organization or correctional institution must have the 174.5 demonstrated capacity to offer education programs for adults. 174.6 Community-based or nonprofit organizations must meet the 174.7 criteria in paragraph (b), or have prior experience. A 174.8 community-based or nonprofit organization or a correctional 174.9 institution may be reimbursed for unreimbursed expenses as 174.10 defined in section 124D.515, subdivision 5, for the 174.11 administration of English as a second language or adult basic 174.12 education programs, not to exceed eight percent of the total 174.13 funds provided by a school district or adult basic education 174.14 consortium. The administrative reimbursement for a school 174.15 district or adult basic education consortium that delivers 174.16 services cooperatively with a community-based or nonprofit 174.17 organization or correctional institution is limited to five 174.18 percent of the program aid, not to exceed the unreimbursed 174.19 expenses of administering programs delivered by community-based 174.20 or nonprofit organizations or correctional institutions. 174.21 (b) A community-based organization or nonprofit 174.22 organization that delivers education services under this section 174.23 must demonstrate that it has met the following criteria: 174.24 (1) be legally established as a nonprofit organization; 174.25 (2) have an established system for fiscal accounting and 174.26 reporting that is consistent with the department of children, 174.27 families, and learning's adult basic education completion report 174.28 and reporting requirements under section 124D.531; 174.29 (3) require all instructional staff to complete a training 174.30 course in teaching adult learners; and 174.31 (4) develop a learning plan for each student that 174.32 identifies defined educational and occupational goals with 174.33 measures to evaluate progress. 174.34 Sec. 14. [124D.521] [CONSORTIUM REQUIREMENTS.] 174.35 Each consortium, as defined under section 124D.515, 174.36 subdivision 1, must meet at least twice per year to develop and 175.1 amend as necessary an annual consortium agreement signed by all 175.2 members and filed with the department of children, families, and 175.3 learning that at a minimum includes: 175.4 (1) a description of the members and fiscal agent of the 175.5 consortium; 175.6 (2) a description of the contributions of each member of 175.7 the consortium and the process for distributing state aid among 175.8 the members; and 175.9 (3) the state adult basic education assurances from the 175.10 annual adult basic education program application. 175.11 As a condition of membership in a consortium, each member 175.12 must make a documented contribution toward the cost of adult 175.13 basic education programming, either as a direct financial 175.14 contribution, or an in-kind contribution. 175.15 Each consortium's designated fiscal agent must: 175.16 (1) collect data from consortium members; 175.17 (2) submit required performance reports and fiscal reports 175.18 to the state; 175.19 (3) receive state adult basic education aid under section 175.20 124D.531 for adult basic education programming delivered by the 175.21 consortium; and 175.22 (4) distribute state adult basic education aid to members 175.23 of the consortium according to the consortium agreement under 175.24 sources. 175.25 Sec. 15. [124D.522] [ADULT BASIC EDUCATION SUPPLEMENTAL 175.26 SERVICE GRANTS.] 175.27 (a) The commissioner, in consultation with the policy 175.28 review task force under section 124D.521, may make grants to 175.29 nonprofit organizations to provide services that are not offered 175.30 by a district adult basic education program or that are 175.31 supplemental to either the statewide adult basic education 175.32 program, or a district's adult basic education program. The 175.33 commissioner may make grants for: staff development for adult 175.34 basic education teachers and administrators; training for 175.35 volunteer tutors; training, services, and materials for serving 175.36 disabled students through adult basic education programs; 176.1 statewide promotion of adult basic education services and 176.2 programs; development and dissemination of instructional and 176.3 administrative technology for adult basic education programs; 176.4 programs delivered by communities of color; adult basic 176.5 education distance learning projects, including television 176.6 instruction programs; and other supplemental services to support 176.7 the mission of adult basic education and innovative delivery of 176.8 adult basic education services. 176.9 (b) The commissioner must establish eligibility criteria 176.10 and grant application procedures. Grants under this section 176.11 must support services throughout the state, focus on educational 176.12 results for adult learners, and promote outcome-based 176.13 achievement through adult basic education programs. The 176.14 commissioner may make grants under this section from funds 176.15 specifically appropriated for supplemental service grants. Up 176.16 to one-third of the appropriation for supplemental service 176.17 grants must be used for grants for adult basic education 176.18 programs to encourage and support innovations in adult basic 176.19 education instruction and service delivery. A grant to a single 176.20 organization must be for two years or less and cannot exceed 176.21 $100,000. Nothing in this section prevents an approved adult 176.22 basic education program from using state or federal aid to 176.23 purchase supplemental services. 176.24 Sec. 16. Minnesota Statutes 1999 Supplement, section 176.25 124D.53, subdivision 3, is amended to read: 176.26 Subd. 3. [AID.] For fiscal year 2000, adult basic 176.27 education aid for each approved program equals $2,295 for fiscal176.28 year 2000 and $2,338 for fiscal year 2001 and later fiscal176.29 years$1,767 times the number of full-time equivalent students 176.30 in its adult basic education program during the first prior 176.31 program year. 176.32 Sec. 17. [124D.531] [ADULT BASIC EDUCATION AID.] 176.33 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] (a) 176.34 The state total adult basic education aid for fiscal year 2001 176.35 equals $30,207,000. The state total adult basic education aid 176.36 for later years equals: 177.1 (1) the state total adult basic education aid for the 177.2 preceding fiscal year; times 177.3 (2) the lesser of: 177.4 (i) 1.08, or 177.5 (ii) the greater of 1.00 or the ratio of the state total 177.6 contact hours in the first prior program year to the state total 177.7 contact hours in the second prior program year. 177.8 (b) The state total adult basic education aid, excluding 177.9 basic population aid, equals the difference between the amount 177.10 computed in paragraph (a), and the state total basic population 177.11 aid under subdivision 2. 177.12 Subd. 2. [BASIC POPULATION AID.] A district is eligible 177.13 for basic population aid if the district has a basic service 177.14 level approved by the commissioner under section 124D.52, 177.15 subdivision 5, or is a member of a consortium with an approved 177.16 basic service level. Basic population aid is equal to the 177.17 greater of $4,000 or $1.80 times the population of the district. 177.18 District population is determined according to section 275.14. 177.19 Subd. 3. [PROGRAM REVENUE.] Adult basic education programs 177.20 established under section 124D.52 and approved by the 177.21 commissioner are eligible for revenue under this subdivision. 177.22 For fiscal year 2001 and later, adult basic education revenue 177.23 for each approved program equals the sum of: 177.24 (1) the basic population aid under subdivision 2 for 177.25 districts participating in the program during the current 177.26 program year; plus 177.27 (2)(i) for fiscal year 2001, 84 percent times the amount 177.28 computed in subdivision 1, paragraph (b), times the ratio of the 177.29 contact hours for students participating in the program during 177.30 the first prior program year to the state total contact hours 177.31 during the first prior program year; plus 177.32 (ii) for fiscal year 2002, 84 percent times the amount 177.33 computed in subdivision 1, paragraph (b), times the ratio of the 177.34 contact hours for students participating in the program during 177.35 the first and second prior program years to the state total 177.36 contact hours during the first and second prior program years; 178.1 plus 178.2 (iii) for fiscal year 2003, and thereafter, 84 percent 178.3 times the amount computed in subdivision 1, paragraph (b), times 178.4 the ratio of the contact hours for students participating in the 178.5 program during the first, second, and third prior program years 178.6 to the state total contact hours during the first, second, and 178.7 third prior program years; plus 178.8 (3) eight percent times the amount computed in subdivision 178.9 1, paragraph (b), times the ratio of the enrollment of students 178.10 with limited English proficiency during the prior school year in 178.11 districts participating in the program during the current 178.12 program year to the state total enrollment of students with 178.13 limited English proficiency during the prior school year in 178.14 districts participating in adult basic education programs during 178.15 the current program year; plus 178.16 (4) eight percent times the amount computed in subdivision 178.17 1, paragraph (b), times the ratio of the latest federal census 178.18 count of the number of adults aged 20 or older with no diploma 178.19 residing in the districts participating in the program during 178.20 the current program year to the latest federal census count of 178.21 the state total number of adults aged 20 or older with no 178.22 diploma residing in the districts participating in adult basic 178.23 education programs during the current program year. 178.24 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 178.25 Notwithstanding subdivisions 2 and 3, the total adult basic 178.26 education aid for a program per prior year contact hour must not 178.27 exceed four times the rate per prior year contact hour computed 178.28 under subdivision 3, clause (2). 178.29 (b) For fiscal year 2002 and later, the aid for a program 178.30 under subdivision 3, clause (2), adjusted for changes in program 178.31 membership, must not exceed the aid for that program under 178.32 subdivision 3, clause (2), for the first preceding fiscal year 178.33 by more than the greater of 20 percent or $20,000. 178.34 (c) Adult basic education aid is payable to a program for 178.35 unreimbursed costs. 178.36 Subd. 5. [INSTITUTIONAL PROGRAMS.] Notwithstanding section 179.1 124D.531, for fiscal year 2001 only, adult basic education aid 179.2 for an approved program in its first year of operation that 179.3 provides adult basic education services at a newly constructed 179.4 correctional facility equals the product of the number of 179.5 contact hours during the current program year, times 1.08, times 179.6 the rate per contact hour established under section 124D.531, 179.7 subdivision 3, clause (2). 179.8 Subd. 6. [AID GUARANTEE.] Notwithstanding subdivisions 1, 179.9 3, and 4, for fiscal year 2001, any adult basic education 179.10 program qualifying for aid under this section, that receives 179.11 less state aid than in fiscal year 2000 must receive additional 179.12 aid equal to the difference between its fiscal year 2000 aid and 179.13 its fiscal year 2001 aid. 179.14 Subd. 7. [PAYMENT OF AID TO FISCAL AGENT.] Adult basic 179.15 education aid must be paid directly to the fiscal agent of each 179.16 approved program. An approved program must have only one fiscal 179.17 agent. 179.18 Subd. 8. [PROGRAM AUDITS.] Programs that receive aid under 179.19 this section must maintain records that support the aid 179.20 payments. The commissioner may audit these records upon 179.21 request. The commissioner must establish procedures for 179.22 conducting fiscal audits of adult basic education programs 179.23 according to the schedule in this subdivision. In fiscal year 179.24 2002, the commissioner must audit all approved adult basic 179.25 education programs that received aid for fiscal year 2001. 179.26 Beginning with fiscal year 2003, the commissioner must, at a 179.27 minimum, audit each adult basic education program once every 179.28 five years. The commissioner must establish procedures to 179.29 reconcile any discrepancies between aid payments based on 179.30 information reported to the commissioner and aid estimates based 179.31 on a program audit. 179.32 Subd. 9. [ADMINISTRATIVE CAP.] A consortium or district 179.33 shall not spend more than five percent of the consortium or 179.34 district's total adult basic education aid on administrative 179.35 costs. 179.36 Subd. 10. [FISCAL REPORTS.] Programs that receive aid 180.1 under this section must submit an annual report to the 180.2 commissioner that includes revenue and expense reports for each 180.3 district and program, including instructional services offered 180.4 in partnership with businesses and nonprofit organizations. 180.5 EFFECTIVE DATE:This section is effective for revenue for 180.6 fiscal years beginning with 2001. 180.7 Sec. 18. Minnesota Statutes 1998, section 245A.14, 180.8 subdivision 4, is amended to read: 180.9 Subd. 4. [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 180.10 child care programs serving 14 or fewer children that are 180.11 conducted at a location other than the license holder's own 180.12 residence shall be licensed under this section and the rules 180.13 governing family day care or group family day care if: 180.14 (a) the license holder is the primary provider of care and 180.15 the nonresidential child care program is conducted in a dwelling 180.16 that is located on a residential lot; or180.17 (b) the license holder is an employer who may or may not be 180.18 the primary provider of care, and the purpose for the child care 180.19 program is to provide child care services to children of the 180.20 license holder's employees; or 180.21 (c) the license holder is a church or religious 180.22 organization. 180.23 Sec. 19. Minnesota Statutes 1998, section 245A.14, is 180.24 amended by adding a subdivision to read: 180.25 Subd. 8. [EXPERIENCED AIDES; CHILD CARE CENTERS.] (a) An 180.26 individual employed as an aide at a child care center may work 180.27 with children without being directly supervised for up to 25 180.28 percent of the individual's daily work shift if: 180.29 (1) a teacher is in the building; 180.30 (2) the individual has received first aid training within 180.31 the last three years; and 180.32 (3) the individual is at least 20 years old and has at 180.33 least 4,160 hours of child care experience as defined in section 180.34 245A.02, subdivision 6b. 180.35 (b) The use of an experienced aide working without direct 180.36 supervision under paragraph (a) is limited to 25 percent of each 181.1 classrooms' daily hours of operation. 181.2 (c) A child care center that utilizes experienced aides 181.3 under this subdivision must notify the parents or guardians of 181.4 the children who are cared for under this subdivision, and must 181.5 send a duplicate letter to the commissioner of human services, 181.6 licensing division. The notice must provide the approximate 181.7 number of hours per classroom per month that this subdivision is 181.8 utilized. 181.9 (d) This subdivision sunsets June 30, 2002. 181.10 Sec. 20. Laws 1998, First Special Session chapter 1, 181.11 article 1, section 10, is amended to read: 181.12 Sec. 10. [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 181.13 Subdivision 1. [INITIAL ELIGIBILITY.] To be eligible for 181.14 state or TANF matching funds in the family assets for 181.15 independence initiative, a household must have income at or181.16 below 185 percent of the federal poverty level and assets of181.17 $15,000 or less. An individual who is a dependent of another181.18 person for federal income tax purposes may not be a separate181.19 eligible household for purposes of establishing a family asset181.20 account. An individual who is a debtor for a judgment resulting181.21 from nonpayment of a court-ordered child support obligation may181.22 not participate in this program. Households accessing TANF181.23 matching funds are subject to the MFIP definition of household181.24 under Minnesota Statutes, section 256J.08, subdivision 46.181.25 Income and assets are determined according to eligibility181.26 guidelines for the energy assistance programmeet the 181.27 eligibility requirements of the federal Assets for Independence 181.28 Act, Public Law Number 105-285, in title IV, section 408, of 181.29 that act. 181.30 Sec. 21. Laws 1998, First Special Session chapter 1, 181.31 article 1, section 11, is amended to read: 181.32 Sec. 11. [WITHDRAWAL; MATCHING; PERMISSIBLE USES.] 181.33 Subdivision 1. [WITHDRAWAL OF FUNDS.] To receive a match, 181.34 a participating household must transfer funds withdrawn from a 181.35 family asset account to its matching fund custodial account held 181.36 by the fiscal agent, according to the family asset agreement. 182.1 The fiduciary organizationfiscal agent must determine if the 182.2 match request is for a permissible use consistent with the 182.3 household's family asset agreement. 182.4 The fiscal agent must ensure the household's custodial 182.5 account contains the applicable matching funds to match the 182.6 balance in the household's account, including interest, on at 182.7 least a quarterly basis and at the time of an approved 182.8 withdrawal. Matches must be provided as follows: 182.9 (1) from state grant and TANF funds a matching contribution 182.10 of $1.50 for every $1 of funds withdrawn from the family asset 182.11 account equal to the lesser of $720 per year or a $3,000 182.12 lifetime limit; and 182.13 (2) from nonstate funds, a matching contribution of no less 182.14 than $1.50 for every $1 of funds withdrawn from the family asset 182.15 account equal to the lesser of $720 per year or a $3,000 182.16 lifetime limit. 182.17 Sec. 22. Laws 1999, chapter 205, article 1, section 65, is 182.18 amended to read: 182.19 Sec. 65. [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 182.20 FISCAL YEAR 2000 AND FISCAL YEAR 2001.] 182.21 A district that complies with Minnesota Statutes, section 182.22 124D.13, shall receive additional early childhood family 182.23 education aid for fiscal year 2000 and fiscal year 2001 equal to 182.24 $2.46 times the greater of: 182.25 (1) 150; or 182.26 (2) the number of people under five years of age residing 182.27 in the school district on October 1 of the previous school 182.28 year. The additional early childhood family education aid may 182.29 be used only for early childhood family education programs. 182.30 Sec. 23. Laws 1999, chapter 205, article 1, section 71, 182.31 subdivision 3, is amended to read: 182.32 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 182.33 childhood family education aid according to Minnesota Statutes, 182.34 section 124D.135: 182.35 $20,485,000$20,109,000 ..... 2000 182.36 $19,420,000$21,107,000 ..... 2001 183.1 The 2000 appropriation includes $1,390,000 for 1999 and 183.2 $19,095,000$18,719,000 for 2000. 183.3 The 2001 appropriation includes $2,122,000$2,079,000 for 183.4 2000 and $17,298,000$19,028,000 for 2001. 183.5 Any balance in the first year does not cancel but is 183.6 available in the second year. 183.7 Sec. 24. Laws 1999, chapter 205, article 1, section 71, 183.8 subdivision 7, is amended to read: 183.9 Subd. 7. [SCHOOL AGE CARE AID.] For extended day aid 183.10 according to Minnesota Statutes, section 124D.22: 183.11 $274,000 ..... 2000 183.12 $216,000$245,000 ..... 2001 183.13 The 2000 appropriation includes $30,000 for 1999 and 183.14 $244,000 for 2000. 183.15 The 2001 appropriation includes $27,000 for 2000 and 183.16 $189,000$218,000 for 2001. 183.17 Any balance in the first year does not cancel but is 183.18 available in the second year. 183.19 Sec. 25. Laws 1999, chapter 205, article 1, section 71, 183.20 subdivision 9, is amended to read: 183.21 Subd. 9. [MFIP CHILD CARE.] For child care assistance 183.22 according to Minnesota Statutes, section 119B.05: 183.23 $86,318,000$66,524,000 ..... 2000 183.24 $88,443,000$78,606,000 ..... 2001 183.25 Any balance in the first year does not cancel but is 183.26 available in the second year. 183.27 Sec. 26. Laws 1999, chapter 205, article 2, section 4, 183.28 subdivision 3, is amended to read: 183.29 Subd. 3. [COMMUNITY EDUCATION AID.] For community 183.30 education aid according to Minnesota Statutes, section 124D.20: 183.31 $14,136,000 ..... 2000 183.32 $14,696,000$15,274,000 ..... 2001 183.33 The 2000 appropriation includes $160,000 for 1999 and 183.34 $13,976,000 for 2000. 183.35 The 2001 appropriation includes $1,552,000 for 2000 and 183.36 $13,144,000$13,722,000 for 2001. 184.1 Any balance in the first year does not cancel but is 184.2 available in the second year. 184.3 Sec. 27. Laws 1999, chapter 205, article 4, section 12, 184.4 subdivision 5, is amended to read: 184.5 Subd. 5. [ADULT BASIC EDUCATION AID.] For adult basic 184.6 education aid according to Minnesota Statutes, section 124D.52, 184.7 in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 184.8 fiscal year 2001: 184.9 $20,132,000 ..... 2000 184.10 $22,477,000$29,168,000 ..... 2001 184.11 The 2000 appropriation includes $1,227,000 for 1999 and 184.12 $18,905,000 for 2000. 184.13 The 2001 appropriation includes $2,101,000 for 2000 and 184.14 $20,376,000$27,067,000 for 2001. 184.15 Sec. 28. Laws 1999, chapter 205, article 4, section 12, 184.16 subdivision 6, is amended to read: 184.17 Subd. 6. [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 184.18 basic population aid for eligible districts under section 7: 184.19 $1,960,000$1,974,000 ..... 2000 184.20 Notwithstanding Minnesota Statutes, section 127A.45, 184.21 subdivision 12, 100 percent of this appropriation is for fiscal 184.22 year 2000. 184.23 Any balance in the first year does not cancel but is 184.24 available in the second year. This is a one-time appropriation. 184.25 Sec. 29. Laws 1999, chapter 205, article 4, section 12, 184.26 subdivision 7, is amended to read: 184.27 Subd. 7. [ADULT GRADUATION AID.] For adult graduation aid 184.28 according to Minnesota Statutes, section 124D.54: 184.29 $3,184,000$2,760,000 ..... 2000 184.30 $4,732,000$3,031,000 ..... 2001 184.31 The 2000 appropriation includes $258,000$258,000 for 1999 184.32 and $2,926,000$2,502,000 for 2000. 184.33 The 2001 appropriation includes $325,000$278,000 for 2000 184.34 and $4,407,000$2,753,000 for 2001. 184.35 Sec. 30. [COMPETENCY-BASED ADULT BASIC EDUCATION AND 184.36 ENGLISH AS A SECOND LANGUAGE LICENSE.] 185.1 The board of teaching must convene a task force to develop 185.2 a competency-based license for teachers of adult basic education 185.3 classes and English as a second language class. The 185.4 competency-based license must be an alternative to the current 185.5 licensing requirements. By January 15, 2002, the board of 185.6 teaching must present their recommendations to the committees of 185.7 the legislature responsible for teacher licensing and funding of 185.8 adult basic education programs, including recommendations for 185.9 implementing competency-based licensing for teachers of adult 185.10 learners. 185.11 Sec. 31. [ADULT BASIC EDUCATION POLICY TASK FORCE.] 185.12 Subdivision 1. [ESTABLISHMENT.] A nine-member adult basic 185.13 education policy task force shall recommend to the legislature 185.14 on program and funding policies for adult basic education 185.15 programs that receive aid under Minnesota Statutes, section 185.16 124D.531. The commissioner of children, families, and learning 185.17 shall appoint task force members. Members do not receive per 185.18 diem, but may be reimbursed for expenses as specified in 185.19 Minnesota Statutes, section 15.059, subdivision 3. All other 185.20 matters of the task force's operation, except expiration of the 185.21 board under subdivision 4, are governed by Minnesota Statutes, 185.22 section 15.069. 185.23 Subd. 2. [MEMBERSHIP.] Members are appointed by the 185.24 commissioner of children, families, and learning. The 185.25 commissioner must appoint two members of the task force from 185.26 rural programs, two members from suburban programs, two members 185.27 from urban programs, one member from a nonprofit group that has 185.28 knowledge and expertise in the area of adult literacy, one 185.29 member who is currently an adult basic education learner or has 185.30 participated in an adult basic education program, and one member 185.31 who is an adult basic education instructor. The composition of 185.32 the task force must allow for equal representation from adult 185.33 basic education learners, instructors, and administrators. 185.34 Subd. 3. [DUTIES.] The task force must: 185.35 (1) recommend to the legislature a mission statement for a 185.36 statewide system of adult basic education programs that includes 186.1 educational outcomes, services, eligible learners, requirements 186.2 for teacher licensing, expectations for student advancement and 186.3 progress, and recognition of the importance of distance learning 186.4 and other technology-based instruction methods; 186.5 (2) recommend to the legislature the minimum number of 186.6 contact hours that are necessary in order for the program to 186.7 continue; 186.8 (3) recommend to the legislature an adequate and reasonable 186.9 hourly rate for smaller programs; 186.10 (4) recommend to the legislature a reasonable range for the 186.11 number of instructional hours or a reasonable cap on the number 186.12 of hours individuals may spend in adult basic education 186.13 instruction; 186.14 (5) recommend to the legislature an outcome-based adult 186.15 basic education funding system that rewards and recognizes 186.16 student progress in attaining educational goals; and 186.17 (6) review statewide grant applications for supplemental 186.18 services under Minnesota Statutes, section 124D.522. 186.19 Subd. 4. [EXPIRATION.] The adult basic education policy 186.20 task force expires on January 2, 2001. 186.21 Sec. 32. [ADULT BASIC EDUCATION CONSORTIUM DISTRIBUTION TO 186.22 MEMBERS.] 186.23 Consortiums receiving additional funding based on 186.24 population aid shall proportionately distribute that additional 186.25 funding to noneducation institution members of the consortium 186.26 based upon the percentage of contact hours each noneducation 186.27 institution member provides. This provision shall be effective 186.28 through June 30, 2001. 186.29 Sec. 33. [ENERGY ASSISTANCE PROGRAM.] 186.30 (a) The commissioner of economic security shall establish 186.31 policies and procedures to address the findings in the 186.32 department of administration's evaluation of Minnesota's energy 186.33 assistance program published in December 1999. 186.34 (b) The commissioner of economic security shall develop: 186.35 (1) outcome measures, in accordance with federal 186.36 recommendations, by which to evaluate subgrantee performance and 187.1 the program as a whole; 187.2 (2) methods to identify the eligible population for the 187.3 energy assistance program; 187.4 (3) procedures to improve program consistency across the 187.5 state. This shall address program start and end dates, 187.6 eligibility determination, eligibility verification, and 187.7 application and payment processing times; and 187.8 (4) improved internal management practices. This includes 187.9 program oversight, evaluation and auditing of the service 187.10 delivery agencies, computer software system, and overall 187.11 management. The report shall also include proposals for the 187.12 utilization of technology to provide for the most cost-effective 187.13 service delivery. 187.14 Sec. 34. [FEDERAL TANF APPROPRIATIONS.] 187.15 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 187.16 LEARNING.] The sums indicated in this section are appropriated 187.17 from the federal TANF block grant fund to the commissioner of 187.18 children, families, and learning for the fiscal years 187.19 indicated. These amounts are available until expended and may 187.20 be carried forward and spent in the 2002-2003 biennium. 187.21 Subd. 2. [TRANSITIONAL HOUSING PROGRAMS.] For transitional 187.22 housing programs according to Minnesota Statutes, section 187.23 119A.43: 187.24 $3,700,000 ..... 2001 187.25 The amount appropriated under this subdivision does not 187.26 cancel, but is available until expended. 187.27 Sec. 35. [FEDERAL TANF TRANSFERS.] 187.28 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 187.29 LEARNING.] The sums indicated in this section are transferred 187.30 from the federal TANF fund to the child care and development 187.31 fund and appropriated to the commissioner of children, families, 187.32 and learning for the fiscal year designated. The commissioner 187.33 shall ensure that all transferred funds are expended in 187.34 accordance with the child care and development fund regulations 187.35 and that the maximum allowable transferred funds are used for 187.36 the program in this section. 188.1 Subd. 2. [BASIC SLIDING FEE CHILD CARE.] For child care 188.2 assistance according to Minnesota Statutes, section 119B.03: 188.3 $11,789,000 ..... 2001 188.4 $ 5,888,000 ..... 2002 188.5 $ 2,488,000 ..... 2003 188.6 The amounts appropriated under this subdivision do not 188.7 cancel, but are available until expended. 188.8 Subd. 3. [MFIP SOCIAL SERVICE CHILD CARE.] For social 188.9 service child care costs of eligible MFIP participants according 188.10 to Minnesota Statutes, section 119B.05: 188.11 $3,233,000 ..... 2001 188.12 $3,297,000 ..... 2002 188.13 $2,865,000 ..... 2003 188.14 This amount shall be added to the federal TANF block grant 188.15 base with regard to this program. 188.16 Subd. 4. [MFIP EDUCATION CHILD CARE.] For child care costs 188.17 related to the possible modifications to Minnesota Statutes, 188.18 section 256J.522, made in the 2000 legislative session in the 188.19 health and family security omnibus bill, which allows 24 months 188.20 of education to eligible MFIP participants under certain 188.21 circumstances. If the changes to Minnesota Statutes, section 188.22 256J.522, relating to 24 months of education do not pass into 188.23 law, the money appropriated under this subdivision shall revert 188.24 to the basic sliding fee program under subdivision 2, for fiscal 188.25 year 2001: 188.26 $600,000 ..... 2001 188.27 Subd. 5. [TRANSITION YEAR FAMILIES.] To provide 188.28 uninterrupted assistance under Minnesota Statutes, section 188.29 119B.03, for families completing transition year child care 188.30 assistance: 188.31 $1,080,000 ..... 2001 188.32 $3,620,000 ..... 2002 188.33 $4,040,000 ..... 2003 188.34 A balance may be carried forward one fiscal year. Any 188.35 amount remaining in fiscal year 2003 that is not needed for 188.36 uninterrupted child care must be used for assistance under 189.1 Minnesota Statutes, section 119B.03. 189.2 Sec. 36. [GENERAL FUND APPROPRIATIONS.] 189.3 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 189.4 LEARNING.] The sums indicated in this section are appropriated 189.5 from the general fund to the commissioner of children, families, 189.6 and learning for the fiscal years designated. The amounts are 189.7 available until expended and may be carried forward to the 189.8 2002-2003 biennium. 189.9 Subd. 2. [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 189.10 GRANTS.] For adult basic education supplemental service grants 189.11 according to Minnesota Statutes, section 124D.522: 189.12 $700,000 ..... 2001 189.13 This appropriation is added to the base for fiscal years 189.14 2002 and 2003. 189.15 Subd. 3. [ADULT BASIC ADMINISTRATION.] For the adult basic 189.16 policy review task force under Minnesota Statutes, section 189.17 124D.521, and for administration of the state adult basic 189.18 education program including auditing, technical assistance, and 189.19 reporting requirements under this act: 189.20 $100,000 ..... 2001 189.21 This appropriation is added to the fiscal year 2002 and 189.22 2003 base. 189.23 Subd. 4. [CITIZENSHIP PROMOTION.] For the citizenship 189.24 promotion program under Laws 1997, chapter 162, article 2, 189.25 section 32: 189.26 $350,000 ..... 2001 189.27 Subd. 5. [ADULTS WITH DISABILITIES.] For purposes of the 189.28 adults with disabilities pilot programs under Laws 1997, chapter 189.29 162, article 2, section 31, subdivision 4: 189.30 $40,000 ..... 2001 189.31 Subd. 6. [EMERGENCY SERVICES.] For emergency services 189.32 grants according to Laws 1997, chapter 162, article 3, section 7: 189.33 $1,477,000 ..... 2001 189.34 Sec. 37. [REPORT.] 189.35 The commissioner of economic security shall submit a report 189.36 to the legislature detailing the costs and benefits of operating 190.1 the energy assistance program. The report shall be submitted to 190.2 the senate jobs, energy and community development committee, and 190.3 the house jobs and economic development policy committee by 190.4 January 30, 2001. 190.5 Sec. 38. [TRANSFER OF ENERGY ASSISTANCE AND WEATHERIZATION 190.6 RESPONSIBILITIES.] 190.7 Energy assistance and weatherization responsibilities under 190.8 Minnesota Statutes, sections 119A.40, 119A.41, 119A.42, and 190.9 119A.425, are transferred from the department of children, 190.10 families, and learning to the department of economic security. 190.11 Sec. 39. [INSTRUCTION TO REVISOR.] 190.12 The revisor of statutes shall renumber each section of 190.13 Minnesota Statutes listed in column A with the number listed in 190.14 column B. The revisor shall also make necessary cross-reference 190.15 changes consistent with the renumbering. 190.16 column A column B 190.17 119A.40 268.985 190.18 119A.41 268.986 190.19 119A.42 268.987 190.20 119A.425 268.989 190.21 Sec. 40. [REPEALER.] 190.22 Minnesota Statutes 1998, section 124D.53, subdivisions 1, 190.23 2, and 5, are repealed. Minnesota Statutes 1999 Supplement, 190.24 section 124D.53, subdivision 4, is repealed. Laws 1998, First 190.25 Special Session chapter 1, article 1, section 10, subdivision 2, 190.26 is repealed. 190.27 Sec. 41. [EFFECTIVE DATE.] 190.28 Sections 33 and 37 to 39 are effective the day following 190.29 final enactment.