1st Engrossment - 83rd Legislature, 2003 1st Special Session (2003 - 2003) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; providing for early childhood, 1.3 family, and kindergarten through grade 12 education 1.4 including general education, education excellence, 1.5 special programs, facilities and technology, 1.6 nutrition, school accounting, other programs, 1.7 libraries, early childhood family support, prevention, 1.8 self-sufficiency and life long learning, state 1.9 agencies, deficiencies, and technical amendments; 1.10 providing for rulemaking; appropriating money; 1.11 amending Minnesota Statutes 2002, sections 12.21, 1.12 subdivision 3; 84A.51, subdivision 4; 119A.52; 1.13 119A.53; 119B.011, subdivision 20; 120A.05, 1.14 subdivisions 9, 11; 120A.24, subdivision 4; 120A.41; 1.15 121A.21; 121A.41, subdivision 10; 121A.55; 121A.61, 1.16 subdivision 3; 121A.64; 122A.09, subdivisions 4, 10; 1.17 122A.12, subdivisions 1, 2; 122A.18, subdivision 7a; 1.18 122A.21; 122A.22; 122A.41, subdivision 2; 122A.414, by 1.19 adding a subdivision; 122A.415, subdivisions 1, 3; 1.20 122A.58; 122A.63, subdivision 3; 123A.06, subdivision 1.21 3; 123A.18, subdivision 2; 123A.73, subdivisions 3, 4, 1.22 5; 123B.02, subdivision 1; 123B.14, subdivision 1; 1.23 123B.51, subdivisions 3, 4; 123B.52, by adding a 1.24 subdivision; 123B.53, subdivision 4; 123B.57, 1.25 subdivisions 1, 4, 6; 123B.59, subdivisions 1, 2, 3, 1.26 5, by adding a subdivision; 123B.63, subdivisions 1, 1.27 2, 3, 4; 123B.72, subdivision 3; 123B.75, subdivision 1.28 5; 123B.88, subdivision 2; 123B.90, subdivisions 2, 3; 1.29 123B.91, subdivision 1; 123B.92, subdivisions 1, 3, 9; 1.30 123B.93; 124D.03, subdivision 12; 124D.081, by adding 1.31 a subdivision; 124D.09, subdivisions 3, 9, 10, 13, 16, 1.32 20; 124D.10, subdivisions 2a, 3, 4, 13, 16, 20, 23a; 1.33 124D.11, subdivisions 1, 2, 4, 6, 9; 124D.118, 1.34 subdivision 4; 124D.13, subdivisions 2, 4, 8; 1.35 124D.135, subdivisions 1, 8; 124D.15, subdivision 7; 1.36 124D.16, subdivisions 1, 6; 124D.19, subdivision 3; 1.37 124D.20, subdivisions 3, 5, by adding subdivisions; 1.38 124D.22, subdivision 3; 124D.42, subdivision 6; 1.39 124D.454, subdivisions 1, 2, 3, 8, 10, by adding a 1.40 subdivision; 124D.52, subdivisions 1, 3; 124D.531, 1.41 subdivisions 1, 2, 4, 7; 124D.59, subdivision 2; 1.42 124D.65, subdivision 5; 124D.86, subdivisions 1a, 3, 1.43 4, 5, 6; 125A.05; 125A.12; 125A.21, subdivision 2; 1.44 125A.28; 125A.30; 125A.76, subdivisions 1, 4; 125A.79, 1.45 subdivisions 1, 6; 126C.05, subdivisions 8, 14, 15, 1.46 16, 17, by adding a subdivision; 126C.10, subdivisions 2.1 1, 3, 4, 17, 24, 28, by adding subdivisions; 126C.13, 2.2 subdivision 4; 126C.15, subdivision 1; 126C.17, 2.3 subdivisions 1, 2, 5, 7, 7a, 9, 13; 126C.21, 2.4 subdivision 3; 126C.40, subdivision 1; 126C.42, 2.5 subdivision 1; 126C.43, subdivisions 2, 3; 126C.44; 2.6 126C.45; 126C.457; 126C.48, subdivision 3; 126C.63, 2.7 subdivisions 5, 8; 126C.69, subdivisions 2, 9; 2.8 127A.05, subdivision 4; 127A.45, subdivisions 2, 3, 2.9 7a, 10, 12, 13, 14, 14a, 16; 127A.47, subdivisions 7, 2.10 8; 127A.49, subdivisions 2, 3; 128C.02, subdivision 1; 2.11 128C.05, by adding a subdivision; 128D.11, subdivision 2.12 8; 134.34, subdivision 4; 134.47, subdivision 1; 2.13 169.26, subdivision 3; 169.28, subdivision 1; 169.435; 2.14 169.449, subdivision 1; 169.4501, subdivisions 3, 4; 2.15 169.4503, subdivision 4; 169.454, subdivisions 2, 6; 2.16 169.973, subdivision 1; 171.321, subdivision 5; 2.17 178.02, subdivision 1; 200.02, subdivisions 7, 23; 2.18 205A.03, subdivisions 1, 3, 4; 205A.06, subdivision 2.19 1a; 205A.07, by adding a subdivision; 268.052, 2.20 subdivisions 2, 4; 273.138, subdivision 6; 298.28, 2.21 subdivision 4; 475.61, subdivisions 1, 3, 4; 611A.78, 2.22 subdivision 1; Laws 1965, chapter 705, as amended; 2.23 Laws 2001, First Special Session chapter 6, article 2, 2.24 section 72; proposing coding for new law in Minnesota 2.25 Statutes, chapters 123B; 124D; 125A; 126C; 127A; 134; 2.26 repealing Minnesota Statutes 2002, sections 15.014, 2.27 subdivision 3; 93.22, subdivision 2; 93.223, 2.28 subdivision 1; 122A.62; 122A.64; 122A.65; 123A.73, 2.29 subdivisions 7, 10, 11; 123B.81, subdivision 6; 2.30 123B.90, subdivision 1; 124D.09, subdivision 15; 2.31 124D.115; 124D.1156; 124D.17; 124D.21; 124D.221; 2.32 124D.54; 124D.65, subdivision 4; 124D.84, subdivision 2.33 2; 124D.89; 124D.93; 125A.023, subdivision 5; 125A.09; 2.34 125A.47; 125A.79, subdivision 2; 125B.11; 126C.01, 2.35 subdivision 4; 126C.05, subdivision 12; 126C.125; 2.36 126C.14; 126C.55, subdivision 5; 127A.41, subdivision 2.37 6; 128C.01, subdivision 5; 128C.02, subdivision 8; 2.38 128C.13; 144.401, subdivision 5; 169.441, subdivision 2.39 4; 239.004; Laws 1993, chapter 224, article 8, section 2.40 20, subdivision 2, as amended; Laws 2000, chapter 489, 2.41 article 2, section 36, as amended; Laws 2001, First 2.42 Special Session chapter 3, article 4, sections 1, 2; 2.43 Laws 2001, First Special Session chapter 6, article 2, 2.44 section 52; Laws 2001, First Special Session chapter 2.45 6, article 5, section 12, as amended; Minnesota Rules, 2.46 parts 3500.0600; 3520.0400; 3520.1400; 3520.3300; 2.47 3530.1500; 3530.2700; 3530.4400; 3530.4500; 3530.4700; 2.48 3550.0100. 2.49 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.50 ARTICLE 1 2.51 GENERAL EDUCATION 2.52 Section 1. Minnesota Statutes 2002, section 123A.06, 2.53 subdivision 3, is amended to read: 2.54 Subd. 3. [HOURS OF INSTRUCTION EXEMPTION.] Notwithstanding 2.55 any law to the contrary, the center programs must be available 2.56 throughout the entire year.
Pupils in a center may receive2.57 instruction for more than or less than the daily number of hours2.58 required by the rules of the commissioner of children, families,2.59 and learning. However, a pupil must receive instruction each3.1 year for at least the total number of instructional hours3.2 required by statutes and rules.A center may petition the state 3.3 board under Minnesota Rules, part 3500.1000, for exemption from 3.4 other rules. 3.5 Sec. 2. Minnesota Statutes 2002, section 123A.18, 3.6 subdivision 2, is amended to read: 3.7 Subd. 2. [EXTENDED YEAR INSTRUCTION.] The agreement may 3.8 provide opportunities for pupils to receive instruction 3.9 throughout the entire year and for teachers to coordinate 3.10 educational opportunities and provide instruction throughout the 3.11 entire year. Pupils may receive instruction for more than or3.12 less than the daily number of hours required by the rules of the3.13 commissioner of children, families, and learning. However, the3.14 pupil must receive instruction each year for at least the total3.15 number of instructional hours required by statutes and rules.A 3.16 teacher who is employed for the extended year may develop, in 3.17 consultation with pupils and parents, individual educational 3.18 programs for not more than 125 pupils. 3.19 Sec. 3. Minnesota Statutes 2002, section 123A.73, 3.20 subdivision 3, is amended to read: 3.21 Subd. 3. [VOLUNTARY DISSOLUTION; REFERENDUM REVENUE.] As 3.22 of the effective date of the voluntary dissolution of a district 3.23 and its attachment to one or more existing districts pursuant to 3.24 section 123A.46, the authorization for all referendum revenues 3.25 previously approved by the voters of all affected districts for 3.26 those districts pursuant to section 126C.17, subdivision 9, or 3.27 its predecessor provision, is canceled. However, if all of the 3.28 territory of any independent district is included in the 3.29 enlarged district, and if the adjusted net tax capacity of 3.30 taxable property in that territory comprises 90 percent or more 3.31 of the adjusted net tax capacity of all taxable property in an 3.32 enlarged district, the enlarged district's referendum revenue 3.33 shall be determined as follows: 3.34 If the referendum revenue previously approved in the3.35 preexisting district is authorized as a tax rate, the referendum3.36 revenue in the enlarged district is the tax rate times the net4.1 tax capacity of the enlarged district. If referendum revenue4.2 previously approved in the preexisting district is authorized as4.3 revenue per resident pupil unit,The referendum revenue shall be 4.4 the revenue per resident marginal cost pupil unit times the 4.5 number of resident marginal cost pupil units in the enlarged 4.6 district. If referendum revenue in the preexisting district is4.7 authorized both as a tax rate and as revenue per resident pupil4.8 unit, the referendum revenue in the enlarged district shall be4.9 the sum of both plus any referendum revenue in the preexisting4.10 district authorized as a dollar amount.Any new referendum 4.11 revenue shall be authorized only after approval is granted by 4.12 the voters of the entire enlarged district in an election 4.13 pursuant to section 126C.17, subdivision 9. 4.14 Sec. 4. Minnesota Statutes 2002, section 123A.73, 4.15 subdivision 4, is amended to read: 4.16 Subd. 4. [CONSOLIDATION; MAXIMUM AUTHORIZED REFERENDUM 4.17 REVENUES.] As of the effective date of a consolidation pursuant 4.18 to section 123A.48, if the plan for consolidation so provides, 4.19 or if the plan for consolidation makes no provision concerning 4.20 referendum revenues, the authorization for all referendum 4.21 revenues previously approved by the voters of all affected 4.22 districts for those districts pursuant to section 126C.17, 4.23 subdivision 9, or its predecessor provision shall be 4.24 recalculated as provided in this subdivision. The referendum 4.25 revenue authorization for the newly created district shall be 4.26 the net tax capacity raterevenue per resident marginal cost 4.27 pupil unit that would raise an amount equal to the combined 4.28 dollar amount of the referendum revenues authorized by each of 4.29 the component districts for the year preceding the 4.30 consolidation, unless the referendum revenue authorization of 4.31 the newly created district is subsequently modified pursuant to 4.32 section 126C.17, subdivision 9. If the referendum revenue4.33 authorizations for each of the component districts were limited4.34 to a specified number of years,The referendum revenue 4.35 authorization for the newly created district shall continue for 4.36 a period of time equal to the longest period authorized for any 5.1 component district. If the referendum revenue authorization of5.2 any component district is not limited to a specified number of5.3 years, the referendum revenue authorization for the newly5.4 created district shall not be limited to a specified number of5.5 years.5.6 Sec. 5. Minnesota Statutes 2002, section 123A.73, 5.7 subdivision 5, is amended to read: 5.8 Subd. 5. [ALTERNATIVE METHOD.] As of the effective date of 5.9 a consolidation pursuant to section 123A.48, if the plan for 5.10 consolidation so provides, the authorization for all referendum 5.11 revenues previously approved by the voters of all affected 5.12 districts for those districts pursuant to section 126C.17, 5.13 subdivision 9, or its predecessor provision shall be combined as 5.14 provided in this subdivision. The referendum revenue 5.15 authorization for the newly created district may be any 5.16 allowance per resident marginal cost pupil unit provided in the 5.17 plan for consolidation, but may not exceed the allowance per 5.18 resident marginal cost pupil unit that would raise an amount 5.19 equal to the combined dollar amount of the referendum revenues 5.20 authorized by each of the component districts for the year 5.21 preceding the consolidation. If the referendum revenue5.22 authorizations for each of the component districts were limited5.23 to a specified number of years,The referendum revenue 5.24 authorization for the newly created district shall continue for 5.25 a period of time equal to the longest period authorized for any 5.26 component district. If the referendum revenue authorization of5.27 any component district is not limited to a specified number of5.28 years, the referendum revenue authorization for the newly5.29 created district shall not be limited to a specified number of5.30 years.The referendum revenue authorization for the newly 5.31 created district may be modified pursuant to section 126C.17, 5.32 subdivision 9. 5.33 Sec. 6. Minnesota Statutes 2002, section 123B.90, 5.34 subdivision 2, is amended to read: 5.35 Subd. 2. [STUDENT TRAINING.] (a) Each district must 5.36 provide public school pupils enrolled in gradeskindergarten 6.1 through grade 10 with age-appropriate school bus safety training .6.2 The training must be results-oriented and shall consist of both6.3 classroom instruction and practical training using a school6.4 bus. Upon completing the training, a student shall be able to6.5 demonstrate knowledge and understanding, as described in this 6.6 section, of at leastthe following competencies andconcepts: 6.7 (1) transportation by school bus is a privilege and not a 6.8 right; 6.9 (2) district policies for student conduct and school bus 6.10 safety; 6.11 (3) appropriate conduct while on the school bus; 6.12 (4) the danger zones surrounding a school bus; 6.13 (5) procedures for safely boarding and leaving a school 6.14 bus; 6.15 (6) procedures for safe street or road crossing; and 6.16 (7) school bus evacuation and other emergency procedures;6.17 and6.18 (8) appropriate training on the use of lap belts or lap and6.19 shoulder belts, if the district uses buses equipped with lap6.20 belts or lap and shoulder belts. 6.21 (b) Each nonpublic school located within the district must 6.22 provide all nonpublic school pupils enrolled in grades6.23 kindergarten through grade 10 who are transported by school bus 6.24 at public expense and attend school within the district's 6.25 boundaries with training as required in paragraph (a). The6.26 school district shall make a bus available for the practical6.27 training if the district transports the nonpublic students.6.28 Each nonpublic school shall provide the instruction.6.29 (c) AllStudents enrolled in gradeskindergarten through 36.30 grade 6 who are transported by school bus and are enrolled 6.31 during the first or second week of school must demonstrate6.32 achievement ofreceive the school bus safety training 6.33 competencies by the end of the third week of school. All6.34 Students enrolled in grades 47 through 10 who are transported 6.35 by school bus and are enrolled during the first or second week 6.36 of school and have not received school bus safety training in 7.1 kindergarten through grade 6 must demonstrate achievement7.2 ofreceive the competenciestraining by the end of the sixth 7.3 week of school. Students in grades 9 and 10 must receive 7.4 training in the laws and proper procedures when operating a 7.5 motor vehicle in the vicinity of a school bus. Students 7.6 enrolled in gradeskindergarten through grade 10 who enroll in a 7.7 school after the second week of school and are transported by 7.8 school bus and have not received training in their previous 7.9 school district shall undergo school bus safety training and7.10 demonstrate achievement of the school bus safety competenciesor 7.11 receive bus safety instructional materials within four weeks of 7.12 the first day of attendance. The school transportation safety 7.13 director in each district must certify to the commissioner7.14 superintendent of schools annually that all students transported 7.15 by school bus within the district have satisfactorily7.16 demonstrated knowledge and understanding ofreceived the school 7.17 bus safety competenciestraining according to this section or7.18 provide an explanation for a student's failure to demonstrate7.19 the competencies. The principal or other chief administrator of 7.20 each nonpublic school must certify annually to the school 7.21 transportation safety director of the district in which the 7.22 school is located that all ofthe school's students transported 7.23 by school bus at public expense have received training according 7.24 to this section. A district may deny transportation to a7.25 student who fails to demonstrate the competencies, unless the7.26 student is unable to achieve the competencies due to a7.27 disability, or to a student who attends a nonpublic school that7.28 fails to provide training as required by this subdivision.7.29 (d) A district and a nonpublic school with students 7.30 transported by school bus at public expense must, to the extent7.31 possible,may provide kindergarten pupils with bus safety 7.32 training before the first day of school. 7.33 (e) A district and a nonpublic school with students 7.34 transported by school bus at public expense mustmay also 7.35 provide student safety education for bicycling and pedestrian 7.36 safety, for students enrolled in gradeskindergarten through 8.1 grade 5. 8.2 (f) A district and a nonpublic school with students 8.3 transported by school bus at public expense must make reasonable 8.4 accommodations for the school bus , bicycle, and pedestrian8.5 safety training of pupils known to speak English as a second 8.6 language and pupils with disabilities. 8.7 (g) The district must provide students enrolled in 8.8 kindergarten through grade 3 school bus safety training twice 8.9 during the school year. 8.10 Sec. 7. Minnesota Statutes 2002, section 123B.90, 8.11 subdivision 3, is amended to read: 8.12 Subd. 3. [MODEL TRAINING PROGRAM.] The commissioner shall 8.13 develop a comprehensive model school bus safety training program 8.14 for pupils who ride the bus that includes bus safety curriculum 8.15 for both classroom and practical instruction , methods for8.16 assessing attainment of school bus safety competencies,and 8.17 age-appropriate instructional materials. The model training8.18 program for students riding buses with lap belts or lap and8.19 shoulder belts must include information on the appropriate use8.20 of lap belts or lap and shoulder belts. The program must be8.21 adaptable for use by students with disabilities.8.22 Sec. 8. Minnesota Statutes 2002, section 123B.91, 8.23 subdivision 1, is amended to read: 8.24 Subdivision 1. [COMPREHENSIVE POLICY.] (a)Each district 8.25 shall develop and implement a comprehensive, written policy 8.26 governing pupil transportation safety, including transportation 8.27 of nonpublic school students, when applicable. The policy, at 8.28 minimum, must contain: 8.29 (1) provisions for appropriate student bus safety training 8.30 under section 123B.90; 8.31 (2) rules governing student conduct on school buses and in 8.32 school bus loading and unloading areas; 8.33 (3) a statement of parent or guardian responsibilities 8.34 relating to school bus safety; 8.35 (4) provisions for notifying students and parents or8.36 guardians of their responsibilities and the rules, including the9.1 district's seat belt policy, if applicable;9.2 (5)an intradistrict system for reporting school bus 9.3 accidents or misconduct and a system for dealing with local law 9.4 enforcement officials in cases of criminal conduct on a school 9.5 bus; 9.6 (6)(5) a discipline policy to address violations of school 9.7 bus safety rules, including procedures for revoking a student's 9.8 bus riding privileges in cases of serious or repeated 9.9 misconduct; 9.10 (7)(6) a system for integrating school bus misconduct 9.11 records with other discipline records; 9.12 (8) a statement of bus driver duties;9.13 (9)(7) where applicable, provisions governing bus monitor 9.14 qualifications, training, and duties; 9.15 (10)(8) rules governing the use and maintenance of type 9.16 III vehicles, drivers of type III vehicles, qualifications to 9.17 drive a type III vehicle, qualifications for a type III vehicle, 9.18 and the circumstances under which a student may be transported 9.19 in a type III vehicle; 9.20 (11)(9) operating rules and procedures; 9.21 (12) provisions for annual bus driver in-service training9.22 and evaluation;9.23 (13)(10) emergency procedures; 9.24 (14)(11) a system for maintaining and inspecting 9.25 equipment; and 9.26 (15)(12) any other requirements of the school district , if9.27 any, that exceed state law minimum requirements for school bus9.28 operations; and9.29 (16) requirements for basic first aid training, which must9.30 include the Heimlich maneuver and procedures for dealing with9.31 obstructed airways, shock, bleeding, and seizures. 9.32 (b) Districts are encouraged to use the model policy9.33 developed by the Minnesota school boards association, the9.34 department of public safety, and the department of children,9.35 families, and learning, as well as the current edition of the9.36 "National Standards for School Transportation," in developing10.1 safety policies. Each district shall review its policy annually10.2 to ensure that it conforms to law.10.3 Sec. 9. Minnesota Statutes 2002, section 123B.92, 10.4 subdivision 1, is amended to read: 10.5 Subdivision 1. [DEFINITIONS.] For purposes of this section 10.6 and section 125A.76, the terms defined in this subdivision have 10.7 the meanings given to them. 10.8 (a) "Actual expenditure per pupil transported in the 10.9 regular and excess transportation categories" means the quotient 10.10 obtained by dividing: 10.11 (1) the sum of: 10.12 (i) all expenditures for transportation in the regular 10.13 category, as defined in paragraph (b), clause (1), and the 10.14 excess category, as defined in paragraph (b), clause (2), plus 10.15 (ii) an amount equal to one year's depreciation on the 10.16 district's school bus fleet and mobile units computed on a 10.17 straight line basis at the rate of 15 percent per year for 10.18 districts operating a program under section 124D.128 for grades 10.19 1 to 12 for all students in the district and 12-1/2 percent per 10.20 year for other districts of the cost of the fleet, plus 10.21 (iii) an amount equal to one year's depreciation on the 10.22 district's type three school buses, as defined in section 10.23 169.01, subdivision 6, clause (5), which must be used a majority 10.24 of the time for pupil transportation purposes, computed on a 10.25 straight line basis at the rate of 20 percent per year of the 10.26 cost of the type three school buses by: 10.27 (2) the number of pupils eligible for transportation in the 10.28 regular category, as defined in paragraph (b), clause (1), and 10.29 the excess category, as defined in paragraph (b), clause (2). 10.30 (b) "Transportation category" means a category of 10.31 transportation service provided to pupils as follows: 10.32 (1) Regular transportation is: 10.33 (i) transportation to and from school during the regular 10.34 school year for resident elementary pupils residing one mile or 10.35 more from the public or nonpublic school they attend, and 10.36 resident secondary pupils residing two miles or more from the 11.1 public or nonpublic school they attend, excluding desegregation 11.2 transportation and noon kindergarten transportation; but with 11.3 respect to transportation of pupils to and from nonpublic 11.4 schools, only to the extent permitted by sections 123B.84 to 11.5 123B.87; 11.6 (ii) transportation of resident pupils to and from language 11.7 immersion programs; 11.8 (iii) transportation of a pupil who is a custodial parent 11.9 and that pupil's child between the pupil's home and the child 11.10 care provider and between the provider and the school, if the 11.11 home and provider are within the attendance area of the school; 11.12 and11.13 (iv) transportation to and from or board and lodging in 11.14 another district, of resident pupils of a district without a 11.15 secondary school; and 11.16 (v) transportation to and from school during the regular 11.17 school year required under subdivision 3 for nonresident 11.18 elementary pupils when the distance from the attendance area 11.19 border to the public school is one mile or more, and for 11.20 nonresident secondary pupils when the distance from the 11.21 attendance area border to the public school is two miles or 11.22 more, excluding desegregation transportation and noon 11.23 kindergarten transportation. 11.24 For the purposes of this paragraph, a district may 11.25 designate a licensed day care facility, respite care facility, 11.26 the residence of a relative, or the residence of a person chosen 11.27 by the pupil's parent or guardian as the home of a pupil for 11.28 part or all of the day, if requested by the pupil's parent or 11.29 guardian, and if that facility or residence is within the 11.30 attendance area of the school the pupil attends. 11.31 (2) Excess transportation is: 11.32 (i) transportation to and from school during the regular 11.33 school year for resident secondary pupils residing at least one 11.34 mile but less than two miles from the public or nonpublic school 11.35 they attend, and transportation to and from school for resident 11.36 pupils residing less than one mile from school who are 12.1 transported because of extraordinary traffic, drug, or crime 12.2 hazards; and 12.3 (ii) transportation to and from school during the regular 12.4 school year required under subdivision 3 for nonresident 12.5 secondary pupils when the distance from the attendance area 12.6 border to the school is at least one mile but less than two 12.7 miles from the public school they attend, and for nonresident 12.8 pupils when the distance from the attendance area border to the 12.9 school is less than one mile from the school and who are 12.10 transported because of extraordinary traffic, drug, or crime 12.11 hazards. 12.12 (3) Desegregation transportation is transportation within 12.13 and outside of the district during the regular school year of 12.14 pupils to and from schools located outside their normal 12.15 attendance areas under a plan for desegregation mandated by the 12.16 commissioner or under court order. 12.17 (4) "Transportation services for pupils with disabilities" 12.18 is: 12.19 (i) transportation of pupils with disabilities who cannot 12.20 be transported on a regular school bus between home or a respite 12.21 care facility and school; 12.22 (ii) necessary transportation of pupils with disabilities 12.23 from home or from school to other buildings, including centers 12.24 such as developmental achievement centers, hospitals, and 12.25 treatment centers where special instruction or services required 12.26 by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 12.27 are provided, within or outside the district where services are 12.28 provided; 12.29 (iii) necessary transportation for resident pupils with 12.30 disabilities required by sections 125A.12, and 125A.26 to 12.31 125A.48; 12.32 (iv) board and lodging for pupils with disabilities in a 12.33 district maintaining special classes; 12.34 (v) transportation from one educational facility to another 12.35 within the district for resident pupils enrolled on a 12.36 shared-time basis in educational programs, and necessary 13.1 transportation required by sections 125A.18, and 125A.26 to 13.2 125A.48, for resident pupils with disabilities who are provided 13.3 special instruction and services on a shared-time basis; 13.4 (vi) transportation for resident pupils with disabilities 13.5 to and from board and lodging facilities when the pupil is 13.6 boarded and lodged for educational purposes; and 13.7 (vii) services described in clauses (i) to (vi), when 13.8 provided for pupils with disabilities in conjunction with a 13.9 summer instructional program that relates to the pupil's 13.10 individual education plan or in conjunction with a learning year 13.11 program established under section 124D.128. 13.12 (5) "Nonpublic nonregular transportation" is: 13.13 (i) transportation from one educational facility to another 13.14 within the district for resident pupils enrolled on a 13.15 shared-time basis in educational programs, excluding 13.16 transportation for nonpublic pupils with disabilities under 13.17 clause (4); 13.18 (ii) transportation within district boundaries between a 13.19 nonpublic school and a public school or a neutral site for 13.20 nonpublic school pupils who are provided pupil support services 13.21 pursuant to section 123B.44; and 13.22 (iii) late transportation home from school or between 13.23 schools within a district for nonpublic school pupils involved 13.24 in after-school activities. 13.25 (c) "Mobile unit" means a vehicle or trailer designed to 13.26 provide facilities for educational programs and services, 13.27 including diagnostic testing, guidance and counseling services, 13.28 and health services. A mobile unit located off nonpublic school 13.29 premises is a neutral site as defined in section 123B.41, 13.30 subdivision 13. 13.31 Sec. 10. Minnesota Statutes 2002, section 123B.92, 13.32 subdivision 3, is amended to read: 13.33 Subd. 3. [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 13.34 that enrolls nonresident pupils in programs under sections 13.35 124D.03, 124D.06, 124D.07,124D.08, 123A.05 to 123A.08, and 13.36 124D.68, must provide authorized transportation to the pupil 14.1 within the attendance area for the school that the pupil attends 14.2 at the same level of service that is provided to resident pupils 14.3 within the attendance area. The resident district need not 14.4 provide or pay for transportation between the pupil's residence 14.5 and the district's border. 14.6 Sec. 11. Minnesota Statutes 2002, section 123B.92, 14.7 subdivision 9, is amended to read: 14.8 Subd. 9. [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 14.9 district's nonpublic pupil transportation aid for the 1996-1997 14.10 and later school years for transportation services for nonpublic 14.11 school pupils according to sections 123B.88, 123B.84 to 123B.86, 14.12 and this section, equals the sum of the amounts computed in 14.13 paragraphs (b) and (c). This aid does not limit the obligation 14.14 to transport pupils under sections 123B.84 to 123B.87. 14.15 (b) For regular and excess transportation according to 14.16 subdivision 1, paragraph (b), clauses (1) and (2), an amount 14.17 equal to the product of: 14.18 (1) the district's actual expenditure per pupil transported 14.19 in the regular and excess transportation categories during the 14.20 second preceding school year; times 14.21 (2) the number of nonpublic school pupils residing in the 14.22 district who receive regular or excess transportation service or 14.23 reimbursement for the current school year; times 14.24 (3) the ratio of the formula allowance pursuant to section 14.25 126C.10, subdivision 2, for the current school year to the 14.26 formula allowance pursuant to section 126C.10, subdivision 2, 14.27 for the second preceding school year. 14.28 (c) For nonpublic nonregular transportation according to 14.29 subdivision 1, paragraph (b), clause (5), an amount equal to the 14.30 product of: 14.31 (1) the district's actual expenditure for nonpublic 14.32 nonregular transportation during the second preceding school 14.33 year; times 14.34 (2) the ratio of the formula allowance pursuant to section 14.35 126C.10, subdivision 2, for the current school year to the 14.36 formula allowance pursuant to section 126C.10, subdivision 2, 15.1 for the second preceding school year. 15.2 (d) Notwithstanding the amount of the formula allowance for 15.3 fiscal years 2000, 2001, and 2002year 2004 in section 126C.10, 15.4 subdivision 2, the commissioner shall use the amount of the 15.5 formula allowance for the current year plus $87minus $415 in 15.6 determining the nonpublic pupil transportation revenue in 15.7 paragraphs (b) and (c) for fiscal year 2000, and the amount of15.8 the formula allowance less $110 in determining the nonpublic15.9 pupil transportation revenue in paragraphs (b) and (c) for15.10 fiscal years 2001 and 20022004. 15.11 [EFFECTIVE DATE.] This section is effective for revenue for 15.12 fiscal year 2004. 15.13 Sec. 12. Minnesota Statutes 2002, section 124D.09, 15.14 subdivision 13, is amended to read: 15.15 Subd. 13. [FINANCIAL ARRANGEMENTS.] For a pupil enrolled 15.16 in a course under this section, the department must make 15.17 payments according to this subdivision for courses that were 15.18 taken for secondary credit. 15.19 The department must not make payments to a school district 15.20 or post-secondary institution for a course taken for 15.21 post-secondary credit only. The department must not make 15.22 payments to a post-secondary institution for a course from which 15.23 a student officially withdraws during the first 14 days of the 15.24 quarter or semester or who has been absent from the 15.25 post-secondary institution for the first 15 consecutive school 15.26 days of the quarter or semester and is not receiving instruction 15.27 in the home or hospital. 15.28 A post-secondary institution shall receive the following: 15.29 (1) for an institution granting quarter credit, the 15.30 reimbursement per credit hour shall be an amount equal to 88 15.31 percent of the product of the formula allowance minus $415, 15.32 multiplied by 1.3, and divided by 45; or 15.33 (2) for an institution granting semester credit, the 15.34 reimbursement per credit hour shall be an amount equal to 88 15.35 percent of the product of the general revenue formula 15.36 allowance minus $415, multiplied by 1.3, and divided by 30. 16.1 The department must pay to each post-secondary institution 16.2 100 percent of the amount in clause (1) or (2) within 30 days of 16.3 receiving initial enrollment information each quarter or 16.4 semester. If changes in enrollment occur during a quarter or 16.5 semester, the change shall be reported by the post-secondary 16.6 institution at the time the enrollment information for the 16.7 succeeding quarter or semester is submitted. At any time the 16.8 department notifies a post-secondary institution that an 16.9 overpayment has been made, the institution shall promptly remit 16.10 the amount due. 16.11 Sec. 13. Minnesota Statutes 2002, section 124D.59, 16.12 subdivision 2, is amended to read: 16.13 Subd. 2. [PUPIL OF LIMITED ENGLISH PROFICIENCY.] 16.14 (a) "Pupil of limited English proficiency" means a pupil in 16.15 kindergarten through grade 12 who meets the following 16.16 requirements: 16.17 (1) the pupil in kindergarten through grade 12, as declared 16.18 by a parent or guardian first learned a language other than 16.19 English, comes from a home where the language usually spoken is 16.20 other than English, or usually speaks a language other than 16.21 English; and 16.22 (2) for a pupil in kindergarten through grade 2,the pupil 16.23 is determined by developmentally appropriate measures, which 16.24 might include observations, teacher judgment, parent 16.25 recommendations, or developmentally appropriate assessment 16.26 instruments, to lack the necessary English skills to participate 16.27 fully in classes taught in English ; or. 16.28 (3) the(b) Notwithstanding paragraph (a), a pupil in 16.29 grades 34 through 12 scoreswho was enrolled in a Minnesota 16.30 public school on the dates during the previous school year when 16.31 a commissioner provided assessment that measures the pupil's 16.32 emerging academic English was administered, shall not be counted 16.33 as a pupil of limited English proficiency in calculating limited 16.34 English proficiency pupil units under section 126C.05, 16.35 subdivision 17, and shall not generate state limited English 16.36 proficiency aid under section 124D.65, subdivision 5, unless the 17.1 pupil scored below the state cutoff score on an assessment 17.2 measuring emerging academic English provided by the commissioner 17.3 during the previous school year. 17.4 (c) Notwithstanding paragraphs (a) and (b), a pupil in 17.5 kindergarten through grade 12 shall not be counted as a pupil of 17.6 limited English proficiency in calculating limited English 17.7 proficiency pupil units under section 126C.05, subdivision 17, 17.8 and shall not generate state limited English proficiency aid 17.9 under section 124D.65, subdivision 5, if: 17.10 (i) the pupil is not enrolled during the current fiscal 17.11 year in an educational program for pupils of limited English 17.12 proficiency in accordance with sections 124D.58 to 124D.64; or 17.13 (ii) the pupil has generated five or more years of average 17.14 daily membership in Minnesota public schools since July 1, 1996. 17.15 Sec. 14. Minnesota Statutes 2002, section 124D.65, 17.16 subdivision 5, is amended to read: 17.17 Subd. 5. [SCHOOL DISTRICT LEP REVENUE.] (a) A school17.18 district's limited English proficiency programs revenue for17.19 fiscal year 2000 equals the state total limited English17.20 proficiency programs revenue, minus the amount determined under17.21 paragraph (b), times the ratio of the district's adjusted17.22 limited English proficiency programs base revenue to the state17.23 total adjusted limited English proficiency programs base revenue.17.24 (b) Notwithstanding paragraph (a), if the limited English17.25 proficiency programs base revenue for a district equals zero,17.26 the limited English proficiency programs revenue equals the sum17.27 of the following amounts, computed using current year data:17.28 (1) 68 percent of the salary of one full-time equivalent17.29 teacher for each 40 pupils of limited English proficiency17.30 enrolled, or 68 percent of the salary of one-half of a full-time17.31 teacher in a district with 20 or fewer pupils of limited English17.32 proficiency enrolled; and17.33 (2) for supplies and equipment purchased or rented for use17.34 in the instruction of pupils of limited English proficiency an17.35 amount equal to 47 percent of the sum actually spent by the17.36 district but not to exceed an average of $47 in any one school18.1 year for each pupil of limited English proficiency receiving18.2 instruction.18.3 (c)A district's limited English proficiency programs 18.4 revenue for fiscal year 2001 and laterequals the product 18.5 of $584(1) $700 in fiscal year 2004 and later times (2) the 18.6 greater of 20 or the number ofadjusted marginal cost average 18.7 daily membership of eligible pupils of limited English 18.8 proficiency enrolled in the district during the current fiscal 18.9 year. 18.10 (d)(b) A pupil ceases to generate state limited English 18.11 proficiency aid in the school year following the school year in 18.12 which the pupil attains the state cutoff score on a 18.13 commissioner-provided assessment that measures the pupil's 18.14 emerging academic English. 18.15 Sec. 15. Minnesota Statutes 2002, section 126C.05, 18.16 subdivision 8, is amended to read: 18.17 Subd. 8. [AVERAGE DAILY MEMBERSHIP.] (a) Membership for 18.18 pupils in grades kindergarten through 12 and for prekindergarten 18.19 pupils with disabilities shall mean the number of pupils on the 18.20 current roll of the school, counted from the date of entry until 18.21 withdrawal. The date of withdrawal shall mean the day the pupil 18.22 permanently leaves the school or the date it is officially known 18.23 that the pupil has left or has been legally excused. However, a 18.24 pupil, regardless of age, who has been absent from school for 15 18.25 consecutive school days during the regular school year or for 18.26 five consecutive school days during summer school or 18.27 intersession classes of flexible school year programs without 18.28 receiving instruction in the home or hospital shall be dropped 18.29 from the roll and classified as withdrawn. Nothing in this 18.30 section shall be construed as waiving the compulsory attendance 18.31 provisions cited in section 120A.22. Average daily membership 18.32 equals the sum for all pupils of the number of days of the 18.33 school year each pupil is enrolled in the district's schools 18.34 divided by the number of days the schools are in session. Days 18.35 of summer school or intersession classes of flexible school year 18.36 programs are only included in the computation of membership for 19.1 pupils with a disability not appropriately served primarily in 19.2 the regular classroom. A student must not be counted as more 19.3 than 1.2 pupils in average daily membership under this section. 19.4 When the initial total average daily membership exceeds 1.2 for 19.5 a pupil enrolled in more than one school district during the 19.6 fiscal year, each district's average daily membership must be 19.7 reduced proportionately. 19.8 (b) A student must not be counted as more than one pupil in 19.9 average daily membership except for purposes of section 126C.10, 19.10 subdivision 2a. 19.11 Sec. 16. Minnesota Statutes 2002, section 126C.05, 19.12 subdivision 14, is amended to read: 19.13 Subd. 14. [COMPUTING PUPIL UNITS FOR A PRIOR YEAR.] In 19.14 computing pupil units for a prior year, the number of pupil 19.15 units shall be adjusted to reflect any change for the current 19.16 year in relative weightings by grade level or category of 19.17 special assistance, any change in measurement from average daily 19.18 attendance to average daily membership, any change in the limit 19.19 on average daily membership that can be generated by a pupil for 19.20 a fiscal year as provided in subdivisions 8 and 15, and any 19.21 change in school district boundaries, but not for the addition 19.22 for the first time in the current year of a specified category 19.23 of special assistance as provided in subdivision 1, clause (4). 19.24 Sec. 17. Minnesota Statutes 2002, section 126C.05, 19.25 subdivision 15, is amended to read: 19.26 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 19.27 enrolled in a learning year program under section 124D.128, an 19.28 area learning center under sections 123A.05 and 123A.06, an 19.29 alternative program approved by the commissioner, or a contract 19.30 alternative program under section 124D.68, subdivision 3, 19.31 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 19.32 school year for a secondary student, more than 935 hours in a 19.33 school year for an elementary student, or more than 425 hours in 19.34 a school year for a kindergarten student without a disability, 19.35 that pupil may be counted as more than one pupil in average 19.36 daily membership for purposes of section 126C.10, subdivision 20.1 2a. The amount in excess of one pupil must be determined by the 20.2 ratio of the number of hours of instruction provided to that 20.3 pupil in excess of: (i) the greater of 1,020 hours or the 20.4 number of hours required for a full-time secondary pupil in the 20.5 district to 1,020 for a secondary pupil; (ii) the greater of 935 20.6 hours or the number of hours required for a full-time elementary 20.7 pupil in the district to 935 for an elementary pupil in grades 1 20.8 through 6; and (iii) the greater of 425 hours or the number of 20.9 hours required for a full-time kindergarten student without a 20.10 disability in the district to 425 for a kindergarten student 20.11 without a disability. Hours that occur after the close of the 20.12 instructional year in June shall be attributable to the 20.13 following fiscal year. A kindergarten student must not be 20.14 counted as more than 1.2 pupils in average daily membership 20.15 under this subdivision. A student in grades 1 through 12 must 20.16 not be counted as more than 1.51.2 pupils in average daily 20.17 membership under this subdivision. 20.18 (b)(i) To receive general education revenue for a pupil in 20.19 an alternative program that has an independent study component, 20.20 a district must meet the requirements in this paragraph. The 20.21 district must develop, for the pupil, a continual learning plan 20.22 consistent with section 124D.128, subdivision 3. Each school 20.23 district that has a state-approved public alternative program 20.24 must reserve revenue in an amount equal to at least 90 percent 20.25 of the district average general education revenue per pupil unit 20.26 less compensatory revenue per pupil unit times the number of 20.27 pupil units generated by students attending a state-approved 20.28 public alternative program. The amount of reserved revenue 20.29 available under this subdivision may only be spent for program 20.30 costs associated with the state-approved public alternative 20.31 program. Compensatory revenue must be allocated according to 20.32 section 126C.15, subdivision 2. 20.33 (ii) General education revenue for a pupil in an approved 20.34 alternative program without an independent study component must 20.35 be prorated for a pupil participating for less than a full year, 20.36 or its equivalent. The district must develop a continual 21.1 learning plan for the pupil, consistent with section 124D.128, 21.2 subdivision 3. Each school district that has a state-approved 21.3 public alternative program must reserve revenue in an amount 21.4 equal to at least 90 percent of the district average general 21.5 education revenue per pupil unit less compensatory revenue per 21.6 pupil unit times the number of pupil units generated by students 21.7 attending a state-approved public alternative program. The 21.8 amount of reserved revenue available under this subdivision may 21.9 only be spent for program costs associated with the 21.10 state-approved public alternative program. Compensatory revenue 21.11 must be allocated according to section 126C.15, subdivision 2. 21.12 (iii) General education revenue for a pupil in an approved 21.13 alternative program that has an independent study component must 21.14 be paid for each hour of teacher contact time and each hour of 21.15 independent study time completed toward a credit or graduation 21.16 standards necessary for graduation. Average daily membership 21.17 for a pupil shall equal the number of hours of teacher contact 21.18 time and independent study time divided by 1,020. 21.19 (iv) For an alternative program having an independent study 21.20 component, the commissioner shall require a description of the 21.21 courses in the program, the kinds of independent study involved, 21.22 the expected learning outcomes of the courses, and the means of 21.23 measuring student performance against the expected outcomes. 21.24 Sec. 18. Minnesota Statutes 2002, section 126C.05, 21.25 subdivision 16, is amended to read: 21.26 Subd. 16. [FREE AND REDUCED PRICED LUNCHES.] The 21.27 commissioner shall determine the number of children eligible to 21.28 receive either a free or reduced priced lunch on October 1 each 21.29 year. Children enrolled in a building on October 1 and 21.30 determined to be eligible to receive free or reduced price lunch 21.31 by JanuaryDecember 15 of the followingthat school year shall 21.32 be counted as eligible on October 1 for purposes of subdivision 21.33 3. The commissioner may use federal definitions for these 21.34 purposes and may adjust these definitions as appropriate. The 21.35 commissioner may adopt reporting guidelines to assure accuracy 21.36 of data counts and eligibility. Districts shall use any 22.1 guidelines adopted by the commissioner. 22.2 Sec. 19. Minnesota Statutes 2002, section 126C.05, 22.3 subdivision 17, is amended to read: 22.4 Subd. 17. [LEP PUPIL UNITS.] (a) Limited English 22.5 proficiency pupil units for fiscal year 19982004 and thereafter 22.6 shall be determined according to this subdivision. 22.7 (b) The limited English proficiency concentration 22.8 percentage for a district equals the product of 100 times the 22.9 ratio of: 22.10 (1) the number of eligible pupils of limited English 22.11 proficiency in average daily membership enrolled in the district 22.12 during the current fiscal year; to 22.13 (2) the number of pupils in average daily membership 22.14 enrolled in the district. 22.15 (c) The limited English proficiency pupil units for 22.16 each eligible pupil enrolled in a program for pupilsof limited 22.17 English proficiency in accordance with sections 124D.58 to22.18 124D.64in average daily membership equals the lesser of one or 22.19 the quotient obtained by dividing the limited English 22.20 proficiency concentration percentage for the pupil's district of 22.21 enrollment by 11.5. 22.22 (d) Limited English proficiency pupil units shall be 22.23 counted by the district of enrollment. 22.24 (e) Notwithstanding paragraph (d), for the purposes of this 22.25 subdivision, pupils enrolled in a cooperative or intermediate 22.26 school district shall be counted by the district of residence. 22.27 (f) For the purposes of this subdivision, the terms defined 22.28 in section 124D.59 have the same meaning. 22.29 Sec. 20. Minnesota Statutes 2002, section 126C.10, 22.30 subdivision 1, is amended to read: 22.31 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal22.32 year 2002, the general education revenue for each district22.33 equals the sum of the district's basic revenue, basic skills22.34 revenue, training and experience revenue, secondary sparsity22.35 revenue, elementary sparsity revenue, transportation sparsity22.36 revenue, total operating capital revenue, equity revenue,23.1 transition revenue, and supplemental revenue.23.2 (b)For fiscal year 2003 and later, the general education 23.3 revenue for each district equals the sum of the district's basic 23.4 revenue, basic skills revenue, training and experience revenue, 23.5 secondary sparsity revenue, elementary sparsity revenue, 23.6 transportation sparsity revenue, total operating capital 23.7 revenue, and equity revenue. 23.8 (b) For fiscal year 2004 and later, the general education 23.9 revenue for each district equals the sum of the district's basic 23.10 revenue, extended time revenue, basic skills revenue, secondary 23.11 sparsity revenue, elementary sparsity revenue, transportation 23.12 sparsity revenue, total operating capital revenue, equity 23.13 revenue, and transition revenue. 23.14 Sec. 21. Minnesota Statutes 2002, section 126C.10, is 23.15 amended by adding a subdivision to read: 23.16 Subd. 2a. [EXTENDED TIME REVENUE.] (a) A school district's 23.17 extended time revenue is equal to the product of $4,601 and the 23.18 sum of the adjusted marginal cost pupil units of the district 23.19 for each pupil in average daily membership in excess of 1.0 and 23.20 less than 1.2 according to section 126C.05, subdivision 8. 23.21 (b) A school district's extended time revenue may be used 23.22 for extended day programs, extended week programs, summer 23.23 school, and other programming authorized under the learning year 23.24 program. 23.25 Sec. 22. Minnesota Statutes 2002, section 126C.10, 23.26 subdivision 3, is amended to read: 23.27 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] The 23.28 compensatory education revenue for each building in the district 23.29 equals the formula allowance minus $415 times the compensation 23.30 revenue pupil units computed according to section 126C.05, 23.31 subdivision 3. Revenue shall be paid to the district and must 23.32 be allocated according to section 126C.15, subdivision 2. 23.33 Sec. 23. Minnesota Statutes 2002, section 126C.10, 23.34 subdivision 4, is amended to read: 23.35 Subd. 4. [BASIC SKILLS REVENUE.] (a) For fiscal year 2002,23.36 a school district's basic skills revenue equals the sum of:24.1 (1) compensatory revenue under subdivision 3; plus24.2 (2) limited English proficiency revenue according to24.3 section 124D.65, subdivision 5; plus24.4 (3) $190 times the limited English proficiency pupil units24.5 according to section 126C.05, subdivision 17; plus24.6 (4) $22.50 times the number of adjusted marginal cost pupil24.7 units in kindergarten to grade 8.24.8 (b) For fiscal year 2003 and later,A school district's 24.9 basic skills revenue equals the sum of: 24.10 (1) compensatory revenue under subdivision 3; plus 24.11 (2) limited English proficiency revenue under section 24.12 124D.65, subdivision 5; plus 24.13 (3) $190$250 times the limited English proficiency pupil 24.14 units under section 126C.05, subdivision 17. 24.15 Sec. 24. Minnesota Statutes 2002, section 126C.10, is 24.16 amended by adding a subdivision to read: 24.17 Subd. 13a. [OPERATING CAPITAL LEVY.] To obtain operating 24.18 capital revenue for fiscal year 2005 and later, a district may 24.19 levy an amount not more than the product of its operating 24.20 capital revenue for the fiscal year times the lesser of one or 24.21 the ratio of its adjusted net tax capacity per adjusted marginal 24.22 pupil cost to $22,222. 24.23 Sec. 25. Minnesota Statutes 2002, section 126C.10, is 24.24 amended by adding a subdivision to read: 24.25 Subd. 13b. [OPERATING CAPITAL AID.] A district's operating 24.26 capital aid equals its operating capital revenue minus its 24.27 operating capital levy times the ratio of the actual amount 24.28 levied to the permitted levy. 24.29 Sec. 26. Minnesota Statutes 2002, section 126C.10, 24.30 subdivision 17, is amended to read: 24.31 Subd. 17. [TRANSPORTATION SPARSITY DEFINITIONS.] The 24.32 definitions in this subdivision apply to subdivisions 18 and 19. 24.33 (a) "Sparsity index" for a district means the greater of .2 24.34 or the ratio of the square mile area of the district to the 24.35 resident pupil units of the district. 24.36 (b) "Density index" for a district means the ratio of the 25.1 square mile area of the district to the resident pupil units of 25.2 the district. However, the density index for a district cannot 25.3 be greater than .2 or less than .005. 25.4 (c) "Fiscal year 1996 base allowance" for a district means25.5 the result of the following computation:25.6 (1) sum the following amounts:25.7 (i) the fiscal year 1996 regular transportation revenue for25.8 the district according to Minnesota Statutes 1996, section25.9 124.225, subdivision 7d, paragraph (a), excluding the revenue25.10 attributable nonpublic school pupils and to pupils with25.11 disabilities receiving special transportation services; plus25.12 (ii) the fiscal year 1996 nonregular transportation revenue25.13 for the district according to Minnesota Statutes 1996, section25.14 124.225, subdivision 7d, paragraph (b), excluding the revenue25.15 for desegregation transportation according to Minnesota Statutes25.16 1996, section 124.225, subdivision 1, paragraph (c), clause (4),25.17 and the revenue attributable to nonpublic school pupils and to25.18 pupils with disabilities receiving special transportation25.19 services or board and lodging; plus25.20 (iii) the fiscal year 1996 excess transportation levy for25.21 the district according to Minnesota Statutes 1996, section25.22 124.226, subdivision 5, excluding the levy attributable to25.23 nonpublic school pupils; plus25.24 (iv) the fiscal year 1996 late activity bus levy for the25.25 district according to Minnesota Statutes 1996, section 124.226,25.26 subdivision 9, excluding the levy attributable to nonpublic25.27 school pupils; plus25.28 (v) an amount equal to one-third of the fiscal year 199625.29 bus depreciation for the district according to Minnesota25.30 Statutes 1996, section 124.225, subdivision 1, paragraph (b),25.31 clauses (2), (3), and (4).25.32 (2) divide the result in clause (1) by the district's25.33 1995-1996 fund balance pupil units.25.34 Sec. 27. Minnesota Statutes 2002, section 126C.10, 25.35 subdivision 24, is amended to read: 25.36 Subd. 24. [EQUITY REVENUE.] (a) A school district 26.1 qualifies for equity revenue if: 26.2 (1) the school district's adjusted marginal cost pupil unit 26.3 amount of basic revenue, supplemental revenue, transition 26.4 revenue, and referendum revenue is less than the value of the 26.5 school district at or immediately above the 95th percentile of 26.6 school districts in its equity region for those revenue 26.7 categories; and 26.8 (2) the school district's administrative offices are not 26.9 located in a city of the first class on July 1, 1999. 26.10 (b) Equity revenue for a qualifying district that receives 26.11 referendum revenue under section 126C.17, subdivision 4, equals 26.12 the product of (1) the district's adjusted marginal cost pupil 26.13 units for that year; times (2) the sum of (i) $10$13, plus (ii) 26.14 $55$75, times the school district's equity index computed under 26.15 subdivision 27. 26.16 (c) Equity revenue for a qualifying district that does not 26.17 receive referendum revenue under section 126C.17, subdivision 4, 26.18 equals the product of the district's adjusted marginal cost 26.19 pupil units for that year times $10$13. 26.20 [EFFECTIVE DATE.] This section is effective for revenue for 26.21 fiscal year 2005. 26.22 Sec. 28. Minnesota Statutes 2002, section 126C.10, is 26.23 amended by adding a subdivision to read: 26.24 Subd. 29. [EQUITY LEVY.] To obtain equity revenue for 26.25 fiscal year 2005 and later, a district may levy an amount not 26.26 more than the product of its equity revenue for the fiscal year 26.27 times the lesser of one or the ratio of its referendum market 26.28 value per resident marginal cost pupil unit to $476,000. 26.29 Sec. 29. Minnesota Statutes 2002, section 126C.10, is 26.30 amended by adding a subdivision to read: 26.31 Subd. 30. [EQUITY AID.] A district's equity aid equals its 26.32 equity revenue minus its equity levy times the ratio of the 26.33 actual amount levied to the permitted levy. 26.34 Sec. 30. Minnesota Statutes 2002, section 126C.10, is 26.35 amended by adding a subdivision to read: 26.36 Subd. 31. [TRANSITION REVENUE.] (a) A district's 27.1 transition allowance for fiscal years 2004 through 2008 equals 27.2 the greater of zero or the product of the ratio of the number of 27.3 adjusted marginal cost pupil units the district would have 27.4 counted for fiscal year 2004 under Minnesota Statutes 2002 to 27.5 the district's adjusted marginal cost pupil units for fiscal 27.6 year 2004, times the difference between: (1) the lesser of the 27.7 district's general education revenue per adjusted marginal cost 27.8 pupil unit for fiscal year 2003 or the amount of general 27.9 education revenue the district would have received per adjusted 27.10 marginal cost pupil unit for fiscal year 2004 according to 27.11 Minnesota Statutes 2002, and (2) the district's general 27.12 education revenue for fiscal year 2004 excluding transition 27.13 revenue divided by the number of adjusted marginal cost pupil 27.14 units the district would have counted for fiscal year 2004 under 27.15 Minnesota Statutes 2002. A district's transition allowance for 27.16 fiscal year 2009 and later is zero. 27.17 (b) A district's transition revenue for fiscal year 2004 27.18 and later equals the product of the district's transition 27.19 allowance times the district's adjusted marginal cost pupil 27.20 units. 27.21 Sec. 31. Minnesota Statutes 2002, section 126C.10, is 27.22 amended by adding a subdivision to read: 27.23 Subd. 32. [TRANSITION LEVY.] To obtain transition revenue 27.24 for fiscal year 2005 and later, a district may levy an amount 27.25 not more than the product of its transition revenue for the 27.26 fiscal year times the lesser of one or the ratio of its 27.27 referendum market value per resident marginal cost pupil unit to 27.28 $476,000. 27.29 Sec. 32. Minnesota Statutes 2002, section 126C.10, is 27.30 amended by adding a subdivision to read: 27.31 Subd. 33. [TRANSITION AID.] (a) For fiscal year 2004, a 27.32 district's transition aid equals its transition revenue. 27.33 (b) For fiscal year 2005 and later, a district's transition 27.34 aid equals its transition revenue minus its transition levy 27.35 times the ratio of the actual amount levied to the permitted 27.36 levy. 28.1 Sec. 33. Minnesota Statutes 2002, section 126C.13, 28.2 subdivision 4, is amended to read: 28.3 Subd. 4. [GENERAL EDUCATION AID.] (a) For fiscal year 28.4 2004, a district's general education aid is the sum of the 28.5 following amounts: 28.6 (1) general education revenue; 28.7 (2) shared time aid according to section 126C.01, 28.8 subdivision 7; and28.9 (3) referendum aid according to section 126C.17; and 28.10 (4) distance education aid according to section 126C.24. 28.11 (b) For fiscal year 2005 and later, a district's general 28.12 education aid is the sum of the following amounts: 28.13 (1) general education revenue, excluding equity revenue and 28.14 transition revenue; 28.15 (2) equity aid according to section 126C.10, subdivision 28.16 30; 28.17 (3) transition aid according to section 126C.10, 28.18 subdivision 33; 28.19 (4) shared time aid according to section 126C.01, 28.20 subdivision 7; 28.21 (5) referendum aid according to section 126C.17; and 28.22 (6) distance education aid according to section 126C.24. 28.23 Sec. 34. Minnesota Statutes 2002, section 126C.15, 28.24 subdivision 1, is amended to read: 28.25 Subdivision 1. [USE OF THE REVENUE.] The basic skills 28.26 revenue under section 126C.10, subdivision 4, and the portion of28.27 the transition revenue adjustment under section 126C.10,28.28 subdivision 20, attributable to the compensatory transition28.29 allowance under section 126C.10, subdivision 19, paragraph (b),28.30 must be reserved and used to meet the educational needs of 28.31 pupils who enroll under-prepared to learn and whose progress 28.32 toward meeting state or local content or performance standards 28.33 is below the level that is appropriate for learners of their 28.34 age. Any of the following may be provided to meet these 28.35 learners' needs: 28.36 (1) direct instructional services under the assurance of 29.1 mastery program according to section 124D.66; 29.2 (2) remedial instruction in reading, language arts, 29.3 mathematics, other content areas, or study skills to improve the 29.4 achievement level of these learners; 29.5 (3) additional teachers and teacher aides to provide more 29.6 individualized instruction to these learners through individual 29.7 tutoring, lower instructor-to-learner ratios, or team teaching; 29.8 (4) a longer school day or week during the regular school 29.9 year or through a summer program that may be offered directly by 29.10 the site or under a performance-based contract with a 29.11 community-based organization; 29.12 (5) comprehensive and ongoing staff development consistent 29.13 with district and site plans according to section 122A.60, for 29.14 teachers, teacher aides, principals, and other personnel to 29.15 improve their ability to identify the needs of these learners 29.16 and provide appropriate remediation, intervention, 29.17 accommodations, or modifications; 29.18 (6) instructional materials and technology appropriate for 29.19 meeting the individual needs of these learners; 29.20 (7) programs to reduce truancy, encourage completion of 29.21 high school, enhance self-concept, provide health services, 29.22 provide nutrition services, provide a safe and secure learning 29.23 environment, provide coordination for pupils receiving services 29.24 from other governmental agencies, provide psychological services 29.25 to determine the level of social, emotional, cognitive, and 29.26 intellectual development, and provide counseling services, 29.27 guidance services, and social work services; 29.28 (8) bilingual programs, bicultural programs, and programs 29.29 for learners of limited English proficiency; 29.30 (9) all day kindergarten; 29.31 (10) extended school day and extended school year programs; 29.32 and 29.33 (11) substantial parent involvement in developing and 29.34 implementing remedial education or intervention plans for a 29.35 learner, including learning contracts between the school, the 29.36 learner, and the parent that establish achievement goals and 30.1 responsibilities of the learner and the learner's parent or 30.2 guardian. 30.3 Sec. 35. Minnesota Statutes 2002, section 126C.17, 30.4 subdivision 1, is amended to read: 30.5 Subdivision 1. [REFERENDUM ALLOWANCE.] (a) For fiscal year30.6 2002, a district's referendum revenue allowance equals the sum30.7 of the allowance under section 126C.16, subdivision 2, plus any30.8 additional allowance per resident marginal cost pupil unit30.9 authorized under subdivision 9 for fiscal year 2002.30.10 (b)For fiscal year 2003 and later, a district's initial 30.11 referendum revenue allowance equals the sum of the allowance 30.12 under section 126C.16, subdivision 2, plus any additional 30.13 allowance per resident marginal cost pupil unit authorized under 30.14 subdivision 9 before May 1, 2001, for fiscal year 2002 and 30.15 later, plus the referendum conversion allowance approved under 30.16 subdivision 13, minus $415. For districts with more than one 30.17 referendum authority, the reduction must be computed separately 30.18 for each authority. The reduction must be applied first to the 30.19 referendum conversion allowance and next to the authority with 30.20 the earliest expiration date. A district's initial referendum 30.21 revenue allowance may not be less than zero. 30.22 (c)(b) For fiscal year 2003 and later, a district's 30.23 referendum revenue allowance equals the initial referendum 30.24 allowance plus any additional allowance per resident marginal 30.25 cost pupil unit authorized under subdivision 9 afterbetween 30.26 April 30, 2001, and December 30, 2001, for fiscal year 2003 and 30.27 later. 30.28 (c) For fiscal year 2004 and later, a district's referendum 30.29 revenue allowance equals the sum of: 30.30 (1) the product of (i) the ratio of the resident marginal 30.31 cost pupil units the district would have counted for fiscal year 30.32 2004 under Minnesota Statutes 2002, section 126C.05, to the 30.33 district's resident marginal cost pupil units for fiscal year 30.34 2004, times (ii) the initial referendum allowance plus any 30.35 additional allowance per resident marginal cost pupil unit 30.36 authorized under subdivision 9 between April 30, 2001, and May 31.1 30, 2003, for fiscal year 2003 and later, plus 31.2 (2) any additional allowance per resident marginal cost 31.3 pupil unit authorized under subdivision 9 after May 30, 2003, 31.4 for fiscal year 2005 and later. 31.5 Sec. 36. Minnesota Statutes 2002, section 126C.17, 31.6 subdivision 2, is amended to read: 31.7 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding31.8 subdivision 1, for fiscal year 2002, a district's referendum31.9 allowance must not exceed the greater of:31.10 (1) the district's referendum allowance for fiscal year31.11 1994;31.12 (2) 25 percent of the formula allowance; or31.13 (3) for a newly reorganized district created after July 1,31.14 1994, the sum of the referendum revenue authority for the31.15 reorganizing districts for the fiscal year preceding the31.16 reorganization, divided by the sum of the resident marginal cost31.17 pupil units of the reorganizing districts for the fiscal year31.18 preceding the reorganization.31.19 (b)Notwithstanding subdivision 1, for fiscal year 2003 and31.20 later fiscal years, a district's referendum allowance must not 31.21 exceed the greater of: 31.22 (1) the sum of a district's referendum allowance for fiscal 31.23 year 1994 times 1.162 plus its referendum conversion allowance 31.24 for fiscal year 2003, minus $415; 31.25 (2) 18.2 percent of the formula allowance; 31.26 (3) for a newly reorganized district created on July 1, 31.27 2002, the referendum revenue authority for each reorganizing 31.28 district in the year preceding reorganization divided by its 31.29 resident marginal cost pupil units for the year preceding 31.30 reorganization, minus $415; or 31.31 (4) for a newly reorganized district created after July 1, 31.32 2002, the referendum revenue authority for each reorganizing 31.33 district in the year preceding reorganization divided by its 31.34 resident marginal cost pupil units for the year preceding 31.35 reorganization. 31.36 (b) Notwithstanding subdivision 1, for fiscal year 2004 and 32.1 later, a district's referendum allowance must not exceed the 32.2 greater of: 32.3 (1) the sum of: (i) a district's referendum allowance for 32.4 fiscal year 1994 times 1.177 times the annual inflationary 32.5 increase as calculated under paragraph (c) plus (ii) its 32.6 referendum conversion allowance for fiscal year 2003, minus 32.7 (iii) $415; 32.8 (2) the greater of (i) 18.6 percent of the formula 32.9 allowance or (ii) the previous year's referendum allowance times 32.10 the annual inflationary increase as calculated under paragraph 32.11 (c); or 32.12 (3) for a newly reorganized district created after July 1, 32.13 2002, the referendum revenue authority for each reorganizing 32.14 district in the year preceding reorganization divided by its 32.15 resident marginal cost pupil units for the year preceding 32.16 reorganization. 32.17 (c) For purposes of this subdivision, for fiscal year 2005 32.18 and later, "inflationary increase" means one plus the percentage 32.19 change in the Consumer Price Index for urban consumers, as 32.20 prepared by the United States Bureau of Labor Standards, for the 32.21 current fiscal year to fiscal year 2004. For fiscal years 2009 32.22 and later, for purposes of paragraph (b), clause (1), the 32.23 inflationary increase equals the inflationary increase for 32.24 fiscal year 2008 plus one-fourth of the percentage increase in 32.25 the formula allowance for that year compared with the formula 32.26 allowance for fiscal year 2008. 32.27 [EFFECTIVE DATE.] This section is effective for taxes 32.28 payable in 2004. 32.29 Sec. 37. Minnesota Statutes 2002, section 126C.17, 32.30 subdivision 5, is amended to read: 32.31 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) For fiscal 32.32 year 2003 and later, a district's referendum equalization 32.33 revenue equals the sum of the first tier referendum equalization 32.34 revenue and the second tier referendum equalization revenue. 32.35 (b) A district's first tier referendum equalization revenue 32.36 equals the district's first tier referendum equalization 33.1 allowance times the district's resident marginal cost pupil 33.2 units for that year. 33.3 (c) For fiscal years 2003 and 2004, a district's first tier 33.4 referendum equalization allowance equals the lesser of the 33.5 district's referendum allowance under subdivision 1 or 33.6 $126. For fiscal year 2005, a district's first tier referendum 33.7 equalization allowance equals the lesser of the district's 33.8 referendum allowance under subdivision 1 or $405. For fiscal 33.9 year 2006 and later, a district's first tier referendum 33.10 equalization allowance equals the lesser of the district's 33.11 referendum allowance under subdivision 1 or $500. 33.12 (d) A district's second tier referendum equalization 33.13 revenue equals the district's second tier referendum 33.14 equalization allowance times the district's resident marginal 33.15 cost pupil units for that year. 33.16 (e) A district's second tier referendum equalization 33.17 allowance equals the lesser of the district's referendum 33.18 allowance under subdivision 1 or 18.218.6 percent of the 33.19 formula allowance, minus the district's first tier referendum 33.20 equalization allowance. 33.21 (f) Notwithstanding paragraph (e), the second tier 33.22 referendum allowance for a district qualifying for secondary 33.23 sparsity revenue under section 126C.10, subdivision 7, or 33.24 elementary sparsity revenue under section 126C.10, subdivision 33.25 8, equals the district's referendum allowance under subdivision 33.26 1 minus the district's first tier referendum equalization 33.27 allowance. 33.28 Sec. 38. Minnesota Statutes 2002, section 126C.17, 33.29 subdivision 7, is amended to read: 33.30 Subd. 7. [REFERENDUM EQUALIZATION AID.] (a) A district's 33.31 referendum equalization aid equals the difference between its 33.32 referendum equalization revenue and levy. 33.33 (b) If a district's actual levy for first or second tier 33.34 referendum equalization revenue is less than its maximum levy 33.35 limit for that tier, aid shall be proportionately reduced. 33.36 (c) Notwithstanding paragraph (a), the referendum 34.1 equalization aid for a district, where the referendum 34.2 equalization aid under paragraph (a) exceeds 90 percent of the 34.3 referendum revenue, must not exceed 18.218.6 percent of the 34.4 formula allowance times the district's resident marginal cost 34.5 pupil units. A district's referendum levy is increased by the 34.6 amount of any reduction in referendum aid under this paragraph. 34.7 Sec. 39. Minnesota Statutes 2002, section 126C.17, 34.8 subdivision 7a, is amended to read: 34.9 Subd. 7a. [REFERENDUM TAX BASE REPLACEMENT AID.] For each 34.10 school district that had a referendum allowance for fiscal year 34.11 2002 exceeding $415, for each separately authorized referendum 34.12 levy, the commissioner of revenue, in consultation with the 34.13 commissioner of children, families, and learningeducation, 34.14 shall certify the amount of the referendum levy in taxes payable 34.15 year 2001 attributable to the portion of the referendum 34.16 allowance exceeding $415 levied against property classified as 34.17 class 2, noncommercial 4c(1), or 4c(4), under section 273.13, 34.18 excluding the portion of the tax paid by the portion of class 2a 34.19 property consisting of the house, garage, and surrounding one 34.20 acre of land. The resulting amount must be used to reduce the 34.21 district's referendum levy amount otherwise determined, and must 34.22 be paid to the district each year that the referendum authority 34.23 remains in effect, is renewed, or new referendum authority is 34.24 approved. The aid payable under this subdivision must be 34.25 subtracted from the district's referendum equalization aid under 34.26 subdivision 7. The referendum equalization aid after the 34.27 subtraction must not be less than zero. 34.28 For the purposes of this subdivision, the referendum levy34.29 with the latest year of expiration is assumed to be at the34.30 highest level of equalization, and the referendum levy with the34.31 earliest year of expiration is assumed to be at the lowest level34.32 of equalization.34.33 Sec. 40. Minnesota Statutes 2002, section 126C.17, 34.34 subdivision 9, is amended to read: 34.35 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 34.36 by section 126C.10, subdivision 1, may be increased in the 35.1 amount approved by the voters of the district at a referendum 35.2 called for the purpose. The referendum may be called by the 35.3 board or shall be called by the board upon written petition of 35.4 qualified voters of the district. The referendum must be 35.5 conducted one or two calendar years before the increased levy 35.6 authority, if approved, first becomes payable. Only one 35.7 election to approve an increase may be held in a calendar year. 35.8 Unless the referendum is conducted by mail under paragraph (g), 35.9 the referendum must be held on the first Tuesday after the first 35.10 Monday in November. The ballot must state the maximum amount of 35.11 the increased revenue per resident marginal cost pupil unit, the 35.12 estimated referendum tax rate as a percentage of referendum 35.13 market value in the first year it is to be levied, and that the 35.14 revenue must be used to finance school operations. The ballot 35.15 may state a schedule, determined by the board, of increased 35.16 revenue per resident marginal cost pupil unit that differs from 35.17 year to year over the number of years for which the increased 35.18 revenue is authorized. If the ballot contains a schedule 35.19 showing different amounts, it must also indicate the estimated 35.20 referendum tax rate as a percent of referendum market value for 35.21 the amount specified for the first year and for the maximum 35.22 amount specified in the schedule. The ballot may state that 35.23 existing referendum levy authority is expiring. In this case, 35.24 the ballot may also compare the proposed levy authority to the 35.25 existing expiring levy authority, and express the proposed 35.26 increase as the amount, if any, over the expiring referendum 35.27 levy authority. The ballot must designate the specific number 35.28 of years, not to exceed ten, for which the referendum 35.29 authorization applies. The notice required under section 275.60 35.30 may be modified to read, in cases of renewing existing levies: 35.31 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 35.32 FOR A PROPERTY TAX INCREASE." 35.33 The ballot may contain a textual portion with the 35.34 information required in this subdivision and a question stating 35.35 substantially the following: 35.36 "Shall the increase in the revenue proposed by (petition 36.1 to) the board of ........., School District No. .., be approved?" 36.2 If approved, an amount equal to the approved revenue per 36.3 resident marginal cost pupil unit times the resident marginal 36.4 cost pupil units for the school year beginning in the year after 36.5 the levy is certified shall be authorized for certification for 36.6 the number of years approved, if applicable, or until revoked or 36.7 reduced by the voters of the district at a subsequent referendum. 36.8 (b) The board must prepare and deliver by first class mail 36.9 at least 15 days but no more than 30 days before the day of the 36.10 referendum to each taxpayer a notice of the referendum and the 36.11 proposed revenue increase. The board need not mail more than 36.12 one notice to any taxpayer. For the purpose of giving mailed 36.13 notice under this subdivision, owners must be those shown to be 36.14 owners on the records of the county auditor or, in any county 36.15 where tax statements are mailed by the county treasurer, on the 36.16 records of the county treasurer. Every property owner whose 36.17 name does not appear on the records of the county auditor or the 36.18 county treasurer is deemed to have waived this mailed notice 36.19 unless the owner has requested in writing that the county 36.20 auditor or county treasurer, as the case may be, include the 36.21 name on the records for this purpose. The notice must project 36.22 the anticipated amount of tax increase in annual dollars and 36.23 annual percentage for typical residential homesteads, 36.24 agricultural homesteads, apartments, and commercial-industrial 36.25 property within the school district. 36.26 The notice for a referendum may state that an existing 36.27 referendum levy is expiring and project the anticipated amount 36.28 of increase over the existing referendum levy in the first year, 36.29 if any, in annual dollars and annual percentage for typical 36.30 residential homesteads, agricultural homesteads, apartments, and 36.31 commercial-industrial property within the district. 36.32 The notice must include the following statement: "Passage 36.33 of this referendum will result in an increase in your property 36.34 taxes." However, in cases of renewing existing levies, the 36.35 notice may include the following statement: "Passage of this 36.36 referendum may result in an increase in your property taxes." 37.1 (c) A referendum on the question of revoking or reducing 37.2 the increased revenue amount authorized pursuant to paragraph 37.3 (a) may be called by the board and shall be called by the board 37.4 upon the written petition of qualified voters of the district. 37.5 A referendum to revoke or reduce the levyrevenue amount must be37.6 based upon the dollar amount, local tax rate, orstate the 37.7 amount per resident marginal cost pupil unit , that was stated to37.8 be the basis for the initial authorizationby which the 37.9 authority is to be reduced. Revenue authority approved by the 37.10 voters of the district pursuant to paragraph (a) must 37.11 be receivedavailable to the school district at least once 37.12 before it is subject to a referendum on its revocation or 37.13 reduction for subsequent years. Only one revocation or 37.14 reduction referendum may be held to revoke or reduce referendum 37.15 revenue for any specific year and for years thereafter. 37.16 (d) A petition authorized by paragraph (a) or (c) is 37.17 effective if signed by a number of qualified voters in excess of 37.18 15 percent of the registered voters of the district on the day 37.19 the petition is filed with the board. A referendum invoked by 37.20 petition must be held on the date specified in paragraph (a). 37.21 (e) The approval of 50 percent plus one of those voting on 37.22 the question is required to pass a referendum authorized by this 37.23 subdivision. 37.24 (f) At least 15 days before the day of the referendum, the 37.25 district must submit a copy of the notice required under 37.26 paragraph (b) to the commissioner and to the county auditor of 37.27 each county in which the district is located. Within 15 days 37.28 after the results of the referendum have been certified by the 37.29 board, or in the case of a recount, the certification of the 37.30 results of the recount by the canvassing board, the district 37.31 must notify the commissioner of the results of the referendum. 37.32 Sec. 41. Minnesota Statutes 2002, section 126C.17, 37.33 subdivision 13, is amended to read: 37.34 Subd. 13. [REFERENDUM CONVERSION ALLOWANCE.] (a) A school 37.35 district that received supplemental or transition revenue in 37.36 fiscal year 2002 may convert its supplemental revenue conversion 38.1 allowance and transition revenue conversion allowance to 38.2 additional referendum allowance under subdivision 1 for fiscal 38.3 year 2003 and thereafter. A majority of the school board must 38.4 approve the conversion at a public meeting before November 1, 38.5 2001. For a district with other referendum authority, the 38.6 referendum conversion allowance approved by the board continues 38.7 until the portion of the district's other referendum authority 38.8 with the earliest expiration date after June 30, 2006, expires. 38.9 For a district with no other referendum authority, the 38.10 referendum conversion allowance approved by the board continues 38.11 until June 30, 2012. 38.12 (b) A school district that received transition revenue in 38.13 fiscal year 2004 may convert all or part of its transition 38.14 revenue to referendum revenue with voter approval in a 38.15 referendum called for the purpose. The referendum must be held 38.16 in accordance with subdivision 9, except that the ballot may 38.17 state that existing transition revenue authority is being 38.18 canceled or is expiring. In this case, the ballot shall compare 38.19 the proposed referendum allowance to the canceled or expiring 38.20 transition revenue allowance. For purposes of this comparison, 38.21 the canceled or expiring transition revenue allowance per 38.22 adjusted marginal cost pupil unit shall be converted to an 38.23 allowance per resident marginal cost pupil unit based on the 38.24 district's ratio of adjusted marginal cost pupil units to 38.25 resident marginal cost pupil units for the preceding fiscal 38.26 year. The referendum must be held on the first Tuesday after 38.27 the first Monday in November. The notice required under section 38.28 275.60 may be modified to read: "BY VOTING 'YES' ON THIS BALLOT 38.29 QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE." 38.30 Elections under this paragraph must be held in 2007 or earlier. 38.31 Sec. 42. Minnesota Statutes 2002, section 126C.21, 38.32 subdivision 3, is amended to read: 38.33 Subd. 3. [COUNTY APPORTIONMENT DEDUCTION.] Each year the 38.34 amount of money apportioned to a district for that year pursuant 38.35 to section 127A.34, subdivision 2, excluding any district where38.36 the general education levy is determined according to section39.1 126C.13, subdivision 3,must be deducted from the general 39.2 education aid earned by that district for the same year or from 39.3 aid earned from other state sources. 39.4 Sec. 43. Minnesota Statutes 2002, section 126C.457, is 39.5 amended to read: 39.6 126C.457 [CAREER AND TECHNICAL LEVY.] 39.7 For taxes payable in 2003 only,A school district may levy 39.8 an amount equal to the greater of (1) $10,000, or (2) the 39.9 district's fiscal year 2001 entitlement for career and technical 39.10 aid under section 124D.453. The district must recognize the 39.11 full amount of this levy as revenue for the fiscal year in which 39.12 it is certified. Revenue received under this section must be 39.13 reserved and used only for career and technical programs. 39.14 [EFFECTIVE DATE.] This section is effective for taxes 39.15 payable in 2004. 39.16 Sec. 44. Minnesota Statutes 2002, section 169.28, 39.17 subdivision 1, is amended to read: 39.18 Subdivision 1. [STOP REQUIRED.] (a) The driver of any 39.19 motor vehicle carrying passengers for hire, or of any school bus 39.20 whether carrying passengers or not, or of any Head Start bus 39.21 whether carrying passengers or not, or of any vehicle that is 39.22 required to stop at railroad grade crossings under Code of 39.23 Federal Regulations, title 49, section 392.10, before crossing 39.24 at grade any track or tracks of a railroad, shall stop the 39.25 vehicle not less than 15 feet nor more than 50 feet from the 39.26 nearest rail of the railroad and while so stopped shall listen 39.27 and look in both directions along the track for any approaching 39.28 train, and for signals indicating the approach of a train, 39.29 except as hereinafter provided, and shall not proceed until safe 39.30 to do so. The driver must not shift gears while crossing the 39.31 railroad tracks. 39.32 (b) A school bus or Head Start bus shall not be flagged 39.33 across railroad grade crossings except at those railroad grade 39.34 crossings that the local school administrative officer may 39.35 designate. 39.36 (c) A type III school bus, as defined in section 169.01, is 40.1 exempt from the requirement of school buses to stop at railroad 40.2 grade crossings. 40.3 Sec. 45. Minnesota Statutes 2002, section 169.4503, 40.4 subdivision 4, is amended to read: 40.5 Subd. 4. [CERTIFICATION.] A body manufacturer, school bus 40.6 dealer, or certified Minnesota Commercial Vehicle Inspector who 40.7 is also an employee of an organization purchasing a school bus 40.8 shall certifyprovide preliminary certification to the 40.9 department of public safety that the product meets Minnesota 40.10 standards. Final certification will be granted within 30 days 40.11 upon reinspection by the department of public safety. 40.12 Sec. 46. Minnesota Statutes 2002, section 169.454, 40.13 subdivision 2, is amended to read: 40.14 Subd. 2. [AGE OF VEHICLE.] Vehicles ten12 years or older 40.15 must not be used as type III vehicles to transport school 40.16 children, except those vehicles that are manufactured to meet 40.17 the structural requirements of federal motor vehicle safety 40.18 standard 222, Code of Federal Regulations, title 49, part 571. 40.19 [EFFECTIVE DATE.] This section is effective the day 40.20 following final enactment. 40.21 Sec. 47. Minnesota Statutes 2002, section 169.454, 40.22 subdivision 6, is amended to read: 40.23 Subd. 6. [IDENTIFICATION.] (a)The vehicle must not have 40.24 the words "school bus" in any location on the exterior of the 40.25 vehicle, or in any interior location visible to a motorist. 40.26 (b) The vehicle must display to the rear of the vehicle40.27 this sign: "VEHICLE STOPS AT RR CROSSINGS."40.28 (c) The lettering (except for "AT," which may be one inch40.29 smaller) must be a minimum two-inch "Series D" as specified in40.30 standard alphabets for highway signs as specified by the Federal40.31 Highway Administration. The printing must be in a color giving40.32 a marked contrast with that of the part of the vehicle on which40.33 it is placed.40.34 (d) The sign must have provisions for being covered, or be40.35 of a removable or fold-down type.40.36 Sec. 48. Minnesota Statutes 2002, section 171.321, 41.1 subdivision 5, is amended to read: 41.2 Subd. 5. [ANNUAL EVALUATION AND LICENSE VERIFICATION.] (a) 41.3 A school district's pupil transportation safety director, the41.4 chief administrator of a nonpublic school, or a private41.5 contractor shall certify annually to the school board or41.6 governing board of a nonpublic school that, at minimum, each41.7 school bus driver meets the school bus driver training41.8 competencies under subdivision 4.A school district, nonpublic 41.9 school, or private contractor alsoshall provide in-service 41.10 training annually to each school bus driver. 41.11 (b) A school district, nonpublic school, or private 41.12 contractor shall annually verify the validity of the driver's 41.13 license of each person who transports students for the district 41.14 with the National Drivers Register or with the department of 41.15 public safety. 41.16 Sec. 49. Minnesota Statutes 2002, section 205A.07, is 41.17 amended by adding a subdivision to read: 41.18 Subd. 3a. [NOTICE TO COMMISSIONER OF EDUCATION.] At least 41.19 49 days prior to every school district election, under section 41.20 123B.62, 123B.63, 126C.17, 126C.69, or 475.58, the school 41.21 district clerk shall provide a written notice to the 41.22 commissioner of education. The notice must include the date of 41.23 the election and the title and language for each ballot question 41.24 to be voted on at the election. The certified vote totals for 41.25 each ballot question shall be provided in a written notice to 41.26 the commissioner in a timely manner. 41.27 Sec. 50. [NONPUBLIC PUPIL MATERIALS AND TESTS.] 41.28 Notwithstanding Minnesota Statutes, section 123B.42, 41.29 subdivision 3, paragraph (b), the inflation adjustment for 41.30 nonpublic pupil textbooks, individualized instructional or 41.31 cooperative learning materials, and standardized tests for 41.32 fiscal year 2004 must be computed using the fiscal year 2004 41.33 formula allowance minus $415. 41.34 Sec. 51. [STAFF DEVELOPMENT RESERVED REVENUE; FISCAL YEARS 41.35 2004 AND 2005.] 41.36 Notwithstanding Minnesota Statutes, section 122A.61, 42.1 subdivision 1, for fiscal years 2004 and 2005 only, a school 42.2 district must reserve an amount equal to at least zero percent 42.3 of the basic revenue under Minnesota Statutes, section 126C.10, 42.4 subdivision 2. A district may waive this requirement by a 42.5 majority vote of the licensed teachers in the district and a 42.6 majority vote of the school board. A district in statutory 42.7 operating debt is exempt from this requirement. 42.8 Sec. 52. [LEASE RATE; COOK COUNTY.] 42.9 (a) Notwithstanding Minnesota Statutes, section 92.46, and 42.10 Minnesota Rules, chapter 6122, in 2003, the lease rate for lands 42.11 leased under Minnesota Statutes, section 92.46, that are located 42.12 in Section 16, Township 62 North, Range 4 East, Cook county, 42.13 shall be two percent of the appraised value of the land as 42.14 determined by the commissioner of natural resources at the fifth 42.15 anniversary of the lease. 42.16 (b) In 2004 and every year thereafter, the amount payable 42.17 shall be adjusted for inflation and shall be increased to an 42.18 amount equal to: (1) the amount before the inflation adjustment 42.19 multiplied by (2) one plus the percentage increase in the 42.20 implicit price deflator for government consumption expenditures 42.21 and gross investment for state and local governments prepared by 42.22 the Bureau of Economic Analysis of the United States Department 42.23 of Commerce for the last month of the third quarter of the 42.24 calendar year prior to the year for which the rent is paid. 42.25 Sec. 53. [APPROPRIATIONS.] 42.26 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 42.27 indicated in this section are appropriated from the general fund 42.28 to the department of education for the fiscal years designated. 42.29 Subd. 2. [GENERAL EDUCATION AID.] For general education 42.30 aid under Minnesota Statutes, section 126C.13, subdivision 4: 42.31 $4,764,384,000 ..... 2004 42.32 $5,090,303,000 ..... 2005 42.33 The 2004 appropriation includes $857,432,000 for 2003 and 42.34 $3,906,952,000 for 2004. 42.35 The 2005 appropriation includes $1,009,856,000 for 2004 and 42.36 $4,080,447,000 for 2005. 43.1 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 43.2 referendum tax base replacement aid under Minnesota Statutes, 43.3 section 126C.17, subdivision 7a: 43.4 $ 7,841,000 ..... 2004 43.5 $ 8,543,000 ..... 2005 43.6 The 2004 appropriation includes $1,419,000 for 2003 and 43.7 $6,422,000 for 2004. 43.8 The 2005 appropriation includes $1,605,000 for 2004 and 43.9 $6,938,000 for 2005. 43.10 Subd. 4. [ENROLLMENT OPTIONS TRANSPORTATION.] For 43.11 transportation of pupils attending postsecondary institutions 43.12 under Minnesota Statutes, section 124D.09, or for transportation 43.13 of pupils attending nonresident districts under Minnesota 43.14 Statutes, section 124D.03: 43.15 $50,000 ..... 2004 43.16 $55,000 ..... 2005 43.17 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 43.18 Minnesota Statutes, section 127A.49: 43.19 $2,680,000 ..... 2004 43.20 $2,937,000 ..... 2005 43.21 The 2004 appropriation includes $472,000 for 2003 and 43.22 $2,208,000 for 2004. 43.23 The 2005 appropriation includes $551,000 for 2004 and 43.24 $2,386,000 for 2005. 43.25 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 43.26 consolidating under Minnesota Statutes, section 123A.485: 43.27 $207,000 ..... 2004 43.28 $607,000 ..... 2005 43.29 The 2004 appropriation includes $35,000 for 2003 and 43.30 $172,000 for 2004. 43.31 The 2005 appropriation includes $42,000 for 2004 and 43.32 $565,000 for 2005. 43.33 Subd. 7. [TORNADO IMPACT; YELLOW MEDICINE EAST.] For a 43.34 grant to independent school district No. 2190, Yellow Medicine 43.35 East, for tornado impact declining enrollment aid: 43.36 $78,000 ..... 2004 44.1 $39,000 ..... 2005 44.2 Subd. 8. [DECLINING PUPIL AID; ALBERT LEA.] For declining 44.3 pupil aid to independent school district No. 241, Albert Lea: 44.4 $225,000 ..... 2004 44.5 $150,000 ..... 2005 44.6 Subd. 9. [DECLINING PUPIL AID; MESABI EAST.] For declining 44.7 pupil aid to independent school district No. 2711, Mesabi East: 44.8 $150,000 ..... 2004 44.9 $100,000 ..... 2005 44.10 Subd. 10. [DECLINING PUPIL AID; ROSEAU.] For declining 44.11 pupil aid to independent school district No. 682, Roseau: 44.12 $30,000 ..... 2004 44.13 $20,000 ..... 2005 44.14 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 44.15 education aid under Minnesota Statutes, sections 123B.40 to 44.16 123B.43 and 123B.87: 44.17 $14,626,000 ..... 2004 44.18 $15,594,000 ..... 2005 44.19 The 2004 appropriation includes $2,715,000 for 2003 and 44.20 $11,911,000 for 2004. 44.21 The 2005 appropriation includes $2,977,000 for 2004 and 44.22 $12,617,000 for 2005. 44.23 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 44.24 pupil transportation aid under Minnesota Statutes, section 44.25 123B.92, subdivision 9: 44.26 $21,477,000 ..... 2004 44.27 $21,982,000 ..... 2005 44.28 The 2004 appropriation includes $3,990,000 for 2003 and 44.29 $17,487,000 for 2004. 44.30 The 2005 appropriation includes $4,371,000 for 2004 and 44.31 $17,611,000 for 2005. 44.32 Subd. 13. [ONE-ROOM SCHOOLHOUSE.] For a grant to 44.33 independent school district No. 690, Warroad, to operate the 44.34 Angle Inlet school: 44.35 $50,000 ..... 2004 44.36 $50,000 ..... 2005 45.1 The budget base for this item for fiscal year 2006 and each 45.2 year thereafter is $50,000. 45.3 Sec. 54. [REPEALER.] 45.4 (a) Minnesota Statutes 2002, sections 123A.73, subdivisions 45.5 7, 10, and 11; 123B.81, subdivision 6; 124D.65, subdivision 4; 45.6 126C.01, subdivision 4; and 126C.125, are repealed. 45.7 (b) Minnesota Statutes 2002, section 126C.14, is repealed 45.8 effective for revenue for fiscal year 2003. 45.9 (c) Minnesota Statutes 2002, section 122A.62, is repealed 45.10 effective for taxes payable in 2004. 45.11 (d) Laws 2001, First Special Session chapter 6, article 5, 45.12 section 12, as amended by Laws 2002, chapter 377, article 12, 45.13 section 15, is repealed. 45.14 (e) Laws 2000, chapter 489, article 2, section 36, as 45.15 amended by Laws 2001, First Special Session chapter 6, article 45.16 1, section 44, is repealed effective for revenue for fiscal year 45.17 2004. 45.18 ARTICLE 2 45.19 EDUCATION EXCELLENCE 45.20 Section 1. Minnesota Statutes 2002, section 120A.05, 45.21 subdivision 11, is amended to read: 45.22 Subd. 11. [MIDDLE SCHOOL.] "Middle school" means any 45.23 school other than a secondary school giving an approved course 45.24 of study in a minimum of threetwo consecutive grades above 4th 45.25 but below 10th with building, equipment, courses of study, class 45.26 schedules, enrollment, and staff meeting the standards 45.27 established by the commissioner of children, families, and45.28 learningeducation. 45.29 [EFFECTIVE DATE.] This section is effective for the 45.30 2003-2004 school year and later. 45.31 Sec. 2. Minnesota Statutes 2002, section 120A.24, 45.32 subdivision 4, is amended to read: 45.33 Subd. 4. [REPORTS TO THE STATE.] A superintendent must 45.34 make an annual report to the commissioner of children, families,45.35 and learningeducation. The report must include the following 45.36 information: 46.1 (1) the number of children residing in the district 46.2 attending nonpublic schools or receiving instruction from 46.3 persons or institutions other than a public school; 46.4 (2) the number of children in clause (1) who are in 46.5 compliance with section 120A.22 and this section; and 46.6 (3) the names, ages, and addressesnumber of children whom46.7 in clause (1) who the superintendent has determined are not in 46.8 compliance with section 120A.22 and this section. 46.9 Sec. 3. Minnesota Statutes 2002, section 120A.41, is 46.10 amended to read: 46.11 120A.41 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 46.12 A school board's annual school calendar must include at 46.13 least three additional days of student instruction or staff46.14 development training related to implementing section 120B.031,46.15 subdivision 1, paragraph (f), beyondthe number of days of 46.16 student instruction the board formally adopted as its school 46.17 calendar at the beginning of the 1996-1997 school year. 46.18 [EFFECTIVE DATE.] This section is effective for the 46.19 2003-2004 school year. 46.20 Sec. 4. Minnesota Statutes 2002, section 121A.55, is 46.21 amended to read: 46.22 121A.55 [POLICIES TO BE ESTABLISHED.] 46.23 (a) The commissioner of children, families, and46.24 learningeducation shall promulgate guidelines to assist each 46.25 school board. Each school board shall establish uniform 46.26 criteria for dismissal and adopt written policies and rules to 46.27 effectuate the purposes of sections 121A.40 to 121A.56. The 46.28 policies shall emphasize preventing dismissals through early 46.29 detection of problems and shall be designed to address students' 46.30 inappropriate behavior from recurring. The policies shall 46.31 recognize the continuing responsibility of the school for the 46.32 education of the pupil during the dismissal period. The 46.33 alternative educational services, if the pupil wishes to take 46.34 advantage of them, must be adequate to allow the pupil to make 46.35 progress towards meeting the graduation standards adopted under 46.36 section 120B.02 and help prepare the pupil for readmission. 47.1 (b) An area learning center under section 123A.05 may not 47.2 prohibit an expelled or excluded pupil from enrolling solely 47.3 because a district expelled or excluded the pupil. The board of 47.4 the area learning center may use the provisions of the Pupil 47.5 Fair Dismissal Act to exclude a pupil or to require an admission 47.6 plan. 47.7 (c) The commissioner shall actively encourage and assist47.8 school districts to cooperatively establish alternative47.9 educational services within school buildings or at alternative47.10 program sites that offer instruction to pupils who are dismissed47.11 from school for willfully engaging in dangerous, disruptive, or47.12 violent behavior, including for possessing a firearm in a school47.13 zone.Each school district shall develop a policy and report it 47.14 to the commissioner on the appropriate use of peace officers and 47.15 crisis teams to remove students who have an individualized 47.16 education plan from school grounds. 47.17 [EFFECTIVE DATE.] This section is effective the day 47.18 following final enactment. 47.19 Sec. 5. Minnesota Statutes 2002, section 121A.61, 47.20 subdivision 3, is amended to read: 47.21 Subd. 3. [POLICY COMPONENTS.] The policy must include at 47.22 least the following components: 47.23 (a) rules governing student conduct and procedures for 47.24 informing students of the rules; 47.25 (b) the grounds for removal of a student from a class; 47.26 (c) the authority of the classroom teacher to remove 47.27 students from the classroom pursuant to procedures and rules 47.28 established in the district's policy; 47.29 (d) the procedures for removal of a student from a class by 47.30 a teacher, school administrator, or other school district 47.31 employee; 47.32 (e) the period of time for which a student may be removed 47.33 from a class, which may not exceed five class periods for a 47.34 violation of a rule of conduct; 47.35 (f) provisions relating to the responsibility for and 47.36 custody of a student removed from a class; 48.1 (g) the procedures for return of a student to the specified 48.2 class from which the student has been removed; 48.3 (h) the procedures for notifying a student and the 48.4 student's parents or guardian of violations of the rules of 48.5 conduct and of resulting disciplinary actions; 48.6 (i) any procedures determined appropriate for encouraging 48.7 early involvement of parents or guardians in attempts to improve 48.8 a student's behavior; 48.9 (j) any procedures determined appropriate for encouraging 48.10 early detection of behavioral problems; 48.11 (k) any procedures determined appropriate for referring a 48.12 student in need of special education services to those services; 48.13 (1) the procedures for consideration of whether there is a 48.14 need for a further assessment or of whether there is a need for 48.15 a review of the adequacy of a current individual education plan 48.16 of a student with a disability who is removed from class; 48.17 (m) procedures for detecting and addressing chemical abuse 48.18 problems of a student while on the school premises; 48.19 (n) the minimum consequences for violations of the code of 48.20 conduct; 48.21 (o) procedures for immediate and appropriate interventions 48.22 tied to violations of the code; and48.23 (p) a provision that states that a teacher, school 48.24 employee, school bus driver, or other agent of a district may 48.25 use reasonable force in compliance with section 121A.582 and 48.26 other laws; and 48.27 (q) an agreement regarding procedures to coordinate crisis 48.28 services to the extent funds are available with the county board 48.29 responsible for implementing sections 245.487 to 245.4888 for 48.30 students with a serious emotional disturbance or other students 48.31 who have an individualized education plan whose behavior may be 48.32 addressed by crisis intervention. 48.33 Sec. 6. Minnesota Statutes 2002, section 121A.64, is 48.34 amended to read: 48.35 121A.64 [NOTIFICATION; TEACHERS' LEGITIMATE EDUCATIONAL 48.36 INTEREST.] 49.1 (a) A classroom teacher has a legitimate educational 49.2 interest in knowing which students placed in the teacher's 49.3 classroom have a history of violent behavior and must be 49.4 notified before such students are placed in the teacher's 49.5 classroom. 49.6 (b) Representatives of the school board and the exclusive 49.7 representative of the teachers shall discuss issues related to 49.8 notification prior to placementthe model policy on student 49.9 records adopted under Laws 1999, chapter 241, article 9, section 49.10 50, and any modifications adopted under this act for notifying 49.11 classroom teachers and other school district employees having a 49.12 legitimate educational interest in knowing about students with a 49.13 history of violent behavior placed in classrooms of students49.14 with histories of violent behavior and any. The representatives 49.15 of the school board and the exclusive representative of the 49.16 teachers also may discuss the need for intervention services or 49.17 conflict resolution or training for staff in these casesrelated 49.18 to placing students with a history of violent behavior in 49.19 teachers' classrooms. 49.20 [EFFECTIVE DATE.] This section is effective for the 49.21 2003-2004 school year and later. 49.22 Sec. 7. Minnesota Statutes 2002, section 122A.09, 49.23 subdivision 4, is amended to read: 49.24 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 49.25 rules to license public school teachers and interns subject to 49.26 chapter 14. 49.27 (b) The board must adopt rules requiring a person to 49.28 successfully complete a skills examination in reading, writing, 49.29 and mathematics as a requirement for initial teacher licensure. 49.30 Such rules must require college and universities offering a 49.31 board approved teacher preparation program to provide remedial 49.32 assistance to persons who did not achieve a qualifying score on 49.33 the skills examination, including those for whom English is a 49.34 second language. 49.35 (c) The board must adopt rules to approve teacher 49.36 preparation programs. The board, upon the request of a 50.1 post-secondary student preparing for teacher licensure or a 50.2 licensed graduate of a teacher preparation program, shall assist 50.3 in resolving a dispute between the person and a post-secondary 50.4 institution providing a teacher preparation program when the 50.5 dispute involves an institution's recommendation for licensure 50.6 affecting the person or the person's credentials. At the 50.7 board's discretion, assistance may include the application of 50.8 chapter 14. 50.9 (d) The board must provide the leadership and shall adopt 50.10 rules for the redesign of teacher education programs to 50.11 implement a research based, results-oriented curriculum that 50.12 focuses on the skills teachers need in order to be effective. 50.13 The board shall implement new systems of teacher preparation 50.14 program evaluation to assure program effectiveness based on 50.15 proficiency of graduates in demonstrating attainment of program 50.16 outcomes. 50.17 (e) The board must adopt rules requiring successful 50.18 completion of an examination of general pedagogical knowledge 50.19 and examinations of licensure-specific teaching skills. The 50.20 rules shall be effective on the dates determined by the board 50.21 but not later than September 1, 2001. 50.22 (f) The board must adopt rules requiring teacher educators 50.23 to work directly with elementary or secondary school teachers in 50.24 elementary or secondary schools to obtain periodic exposure to 50.25 the elementary or secondary teaching environment. 50.26 (g) The board must grant licenses to interns and to 50.27 candidates for initial licenses. 50.28 (h) The board must design and implement an assessment 50.29 system which requires a candidate for an initial license and 50.30 first continuing license to demonstrate the abilities necessary 50.31 to perform selected, representative teaching tasks at 50.32 appropriate levels. 50.33 (i) The board must receive recommendations from local 50.34 committees as established by the board for the renewal of 50.35 teaching licenses. 50.36 (j) The board must grant life licenses to those who qualify 51.1 according to requirements established by the board, and suspend 51.2 or revoke licenses pursuant to sections 122A.20 and 214.10. The 51.3 board must not establish any expiration date for application for 51.4 life licenses. 51.5 (k) The board must adopt rules that require all licensed 51.6 teachers who are renewing their continuing license to include in 51.7 their renewal requirements further preparation in the areas of 51.8 using positive behavior interventions and in accommodating, 51.9 modifying, and adapting curricula, materials, and strategies to 51.10 appropriately meet the needs of individual students and ensure 51.11 adequate progress toward the state's graduation rule. 51.12 (l) In adopting rules to license public school teachers who 51.13 provide health-related services for disabled children, the board 51.14 shall adopt rules consistent with license or registration 51.15 requirements of the commissioner of health and the 51.16 health-related boards who license personnel who perform similar 51.17 services outside of the school. 51.18 (m) The board must adopt rules that require all licensed 51.19 teachers who are renewing their continuing license to include in 51.20 their renewal requirements further reading preparation, 51.21 consistent with section 122A.06, subdivision 4. The rules do 51.22 not take effect until they are approved by law. 51.23 (n) The board must adopt rules that require all licensed 51.24 teachers who are renewing their continuing license to include in 51.25 their renewal requirements further preparation in understanding 51.26 the key warning signs of early-onset mental illness in children 51.27 and adolescents. 51.28 Sec. 8. Minnesota Statutes 2002, section 122A.414, is 51.29 amended by adding a subdivision to read: 51.30 Subd. 3. [REPORT.] Participating districts and school 51.31 sites must report on the implementation and effectiveness of the 51.32 alternative teacher compensation plan, particularly addressing 51.33 each requirement under subdivision 2 and make biennial 51.34 recommendations by January 1 to their school boards. The school 51.35 boards shall transmit a summary of the findings and 51.36 recommendations of their district to the commissioner. 52.1 Sec. 9. Minnesota Statutes 2002, section 122A.415, 52.2 subdivision 1, is amended to read: 52.3 Subdivision 1. [AID AMOUNT.] (a) A school district that 52.4 meets the conditions of section 122A.414 and submits an 52.5 application approved by the commissioner is eligible for 52.6 alternative compensation aid. The commissioner must consider 52.7 only applications submitted jointly by a school district and the 52.8 exclusive representative of the teachers for participation in 52.9 the program. The application must contain a formally adopted 52.10 collective bargaining agreement, memorandum of understanding, or 52.11 other binding agreement that implements an alternative teacher 52.12 professional pay system consistent with section 122A.414 and 52.13 includes all teachers in a district, all teachers at a school 52.14 site, or at least 25 percent of the teachers in a district. The 52.15 commissioner, in approving applications, may give preference to 52.16 applications involving entire districts or sites in approving52.17 applicationsor to applications that align measures of teacher 52.18 performance with student academic achievement and progress under 52.19 section 120B.35, subdivision 1. 52.20 (b) Alternative compensation aid for a qualifying school 52.21 district, site, or portion of a district or school site is as 52.22 follows: 52.23 (1) for a school district in which the school board and the 52.24 exclusive representative of the teachers agree to place all 52.25 teachers in the district or at the site on the alternative 52.26 compensation schedule, alternative compensation aid equals $150 52.27 times the district's or the site's number of pupils enrolled on 52.28 October 1 of the previous fiscal year; or 52.29 (2) for a district in which the school board and the 52.30 exclusive representative of the teachers agree that at least 25 52.31 percent of the district's licensed teachers will be paid on the 52.32 alternative compensation schedule, alternative compensation aid 52.33 equals $150 times the percentage of participating teachers times 52.34 the district's number of pupils enrolled as of October 1 of the 52.35 previous fiscal year. 52.36 Sec. 10. Minnesota Statutes 2002, section 122A.415, 53.1 subdivision 3, is amended to read: 53.2 Subd. 3. [AID TIMING.] (a) Districts or sites with 53.3 approved applications must receive alternative compensation aid 53.4 for each school year that the district or site participates in 53.5 the program as described in this subdivision. Districts or 53.6 sites with applications received by the commissioner before June 53.7 1 of the first year of a two-year contract shall receive 53.8 alternative compensation aid for both years of the contract. 53.9 Districts or sites with applications received by the 53.10 commissioner after June 1 of the first year of a two-year 53.11 contract shall receive alternative compensation aid only for the 53.12 second year of the contract. A qualifying district or site that 53.13 received alternative compensation aid for the previous fiscal 53.14 year must receive at least an amount equal to the lesser of the 53.15 amount it received for the previous fiscal year or its 53.16 proportionate share of the previous year's appropriation if the 53.17 district or site submits a timely application and the 53.18 commissioner determines that the district or site continues to 53.19 implement an alternative teacher professional pay system, 53.20 consistent with its application under this section. The 53.21 commissioner must approve initial applications for school 53.22 districts qualifying under subdivision 1, paragraph (b), clause 53.23 (1), by January 15 of each year. If any money remains, the 53.24 commissioner must approve aid amounts for school districts 53.25 qualifying under subdivision 1, paragraph (b), clause (2), by 53.26 February 15 of each year. 53.27 (b) The commissioner shall select applicants that qualify 53.28 for this program, notify school districts and school sites about 53.29 the program, develop and disseminate application materials, and 53.30 carry out other activities needed to implement this section. 53.31 Sec. 11. Minnesota Statutes 2002, section 122A.63, 53.32 subdivision 3, is amended to read: 53.33 Subd. 3. [REVIEW AND COMMENT.] The commissioner must 53.34 submit the joint application to the MinnesotaAmerican Indian 53.35 scholarshipeducation committee for review and comment. 53.36 Sec. 12. [123B.025] [SCHOOL SPONSORSHIP AND ADVERTISING 54.1 REVENUE.] 54.2 Subdivision 1. [BOARD AUTHORITY; CONTRACTS.] A school 54.3 board may enter into a contract with advertisers, sponsors, or 54.4 others regarding advertising and naming rights to school 54.5 facilities under the general charge of the district. A contract 54.6 authorized under this section must be approved by the school 54.7 board. The powers granted to a school board under this section 54.8 are in addition to any other authority the school district may 54.9 have. 54.10 Subd. 2. [AUTHORIZED AGREEMENTS.] A school district may 54.11 enter into a contract to: 54.12 (1) lease the naming rights for school facilities, 54.13 including school buildings, ice arenas, and stadiums; 54.14 (2) sell advertising on or in the facilities listed in 54.15 clause (1); and 54.16 (3) otherwise enter into an agreement with a sponsoring 54.17 agent. 54.18 Subd. 3. [REVENUE USES.] Revenue generated under this 54.19 section must be used according to a plan specified by the school 54.20 board. 54.21 Sec. 13. Minnesota Statutes 2002, section 123B.14, 54.22 subdivision 1, is amended to read: 54.23 Subdivision 1. [OFFICER SELECTION.] Within ten days after54.24 the election of the first board in independent districts and54.25 annually thereafter on July 1,On the first Monday of January of 54.26 each year, or as soon thereafter as practicable, the board must 54.27 meet and organize by selecting a chair, clerk, and a treasurer, 54.28 who shall hold their offices for one year and until their 54.29 successors are selected and qualify. The persons who perform the 54.30 duties of the clerk and treasurer need not be members of the 54.31 board and the board by resolution may combine the duties of the 54.32 offices of clerk and treasurer in a single person in the office 54.33 of business affairs. They may appoint a superintendent who 54.34 shall be ex officio a member of the board, but not entitled to 54.35 vote therein. In districts in which board members are elected54.36 at the general election in November, the annual meeting of the55.1 board must be held on the first Monday of January or as soon55.2 thereafter as practicable.55.3 Sec. 14. Minnesota Statutes 2002, section 123B.88, 55.4 subdivision 2, is amended to read: 55.5 Subd. 2. [VOLUNTARY SURRENDER OF TRANSPORTATION 55.6 PRIVILEGES.] The parent or guardian of a secondarystudent may 55.7 voluntarily surrender the secondarystudent's to and from school 55.8 transportation privileges granted under subdivision 1. 55.9 Sec. 15. Minnesota Statutes 2002, section 124D.081, is 55.10 amended by adding a subdivision to read: 55.11 Subd. 9. [RESERVE ACCOUNT.] First grade preparedness 55.12 revenue must be placed in a reserve account within the general 55.13 fund and may only be used for first grade preparedness programs 55.14 at qualifying school sites. 55.15 Sec. 16. Minnesota Statutes 2002, section 124D.09, 55.16 subdivision 9, is amended to read: 55.17 Subd. 9. [ENROLLMENT PRIORITY.] A post-secondary 55.18 institution shall give priority to its post-secondary students 55.19 when enrolling 11th and 12th grade pupils in its courses. A 55.20 post-secondary institution may provide information about its 55.21 programs to a secondary school or to a pupil or parent, but it 55.22 may not advertise or otherwise recruit or solicit the 55.23 participation on financial grounds,of secondary pupils to 55.24 enroll in its programs on financial grounds. An institution 55.25 must not enroll secondary pupils, for post-secondary enrollment 55.26 options purposes, in remedial, developmental, or other courses 55.27 that are not college level. Once a pupil has been enrolled in a 55.28 post-secondary course under this section, the pupil shall not be 55.29 displaced by another student. 55.30 Sec. 17. Minnesota Statutes 2002, section 124D.09, 55.31 subdivision 10, is amended to read: 55.32 Subd. 10. [COURSES ACCORDING TO AGREEMENTS.] An eligible 55.33 pupil, according to subdivision 45, may enroll in a 55.34 nonsectarian course taught by a secondary teacher or a 55.35 post-secondary faculty member and offered at a secondary school, 55.36 or another location, according to an agreement between a public 56.1 school board and the governing body of an eligible public 56.2 post-secondary system or an eligible private post-secondary 56.3 institution, as defined in subdivision 3. All provisions of 56.4 this section shall apply to a pupil, public school board, 56.5 district, and the governing body of a post-secondary 56.6 institution, except as otherwise provided. 56.7 Sec. 18. Minnesota Statutes 2002, section 124D.09, 56.8 subdivision 16, is amended to read: 56.9 Subd. 16. [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 56.10 ACCORDING TO AGREEMENTS.] (a) The agreement between a board and 56.11 the governing body of a public post-secondary system or private 56.12 post-secondary institution shall set forth the payment amounts 56.13 and arrangements, if any, from the board to the post-secondary 56.14 institution. No payments shall be made by the department 56.15 according to subdivision 1413 or 15. For the purpose of 56.16 computing state aids for a district, a pupil enrolled according 56.17 to subdivision 10 shall be counted in the average daily 56.18 membership of the district as though the pupil were enrolled in 56.19 a secondary course that is not offered in connection with an 56.20 agreement. Nothing in this subdivision shall be construed to 56.21 prohibit a public post-secondary system or private 56.22 post-secondary institution from receiving additional state 56.23 funding that may be available under any other law. 56.24 (b) If a course is provided under subdivision 10, offered 56.25 at a secondary school, and taught by a secondary teacher, the 56.26 post-secondary system or institution must not require a payment 56.27 from the school board that exceeds the cost to the 56.28 post-secondary institution that is directly attributable to 56.29 providing that course. 56.30 Sec. 19. Minnesota Statutes 2002, section 124D.09, 56.31 subdivision 20, is amended to read: 56.32 Subd. 20. [TEXTBOOKS; MATERIALS.] All textbooks and 56.33 equipment provided to a pupil, and paid for under subdivision 56.34 13, are the property of the pupil's school district of residence56.35 postsecondary institution. Each pupil is required to return all 56.36 textbooks and equipment to the districtpostsecondary 57.1 institution after the course has ended. 57.2 Sec. 20. [124D.095] [ON-LINE LEARNING OPTION.] 57.3 Subdivision 1. [CITATION.] This section may be cited as 57.4 the "On-line Learning Option Act." 57.5 Subd. 2. [DEFINITIONS.] For purposes of this section, the 57.6 following terms have the meanings given them. 57.7 (a) "On-line learning" is an interactive course or program 57.8 that delivers instruction to a student by computer; is combined 57.9 with other traditional delivery methods that include frequent 57.10 student assessment and may include actual teacher contact time; 57.11 and meets or exceeds state academic standards. 57.12 (b) "On-line learning provider" is a school district, an 57.13 organization of two or more school districts operating under a 57.14 joint powers agreement, or a charter school located in Minnesota 57.15 that provides on-line learning to students. 57.16 (c) "Student" is a Minnesota resident enrolled in a school 57.17 under section 120A.22, subdivision 4, in kindergarten through 57.18 grade 12. 57.19 (d) "On-line learning student" is a student enrolled in an 57.20 on-line learning course or program delivered by an on-line 57.21 provider under paragraph (b). 57.22 (e) "Enrolling district" means the school district or 57.23 charter school in which a student is enrolled under section 57.24 120A.22, subdivision 4, for purposes of compulsory attendance. 57.25 Subd. 3. [AUTHORIZATION; NOTICE; LIMITATIONS ON 57.26 ENROLLMENT.] (a) A student may apply to an on-line learning 57.27 provider to enroll in on-line learning. A student age 17 or 57.28 younger must have the written consent of a parent or guardian to 57.29 apply. No school district or charter school may prohibit a 57.30 student from applying to enroll in on-line learning. An on-line 57.31 learning provider that accepts a student under this section 57.32 must, within ten days, notify the student and the enrolling 57.33 district if the enrolling district is not the on-line learning 57.34 provider. The notice must report the student's course or 57.35 program and hours of instruction. 57.36 (b) An on-line learning student must notify the enrolling 58.1 district at least 30 days before taking an on-line learning 58.2 course or program if the enrolling district is not providing the 58.3 on-line learning. An on-line learning provider must notify the 58.4 commissioner that it is delivering on-line learning and report 58.5 the number of on-line learning students it is accepting and the 58.6 on-line learning courses and programs it is delivering. 58.7 (c) An on-line learning provider may limit enrollment if 58.8 the provider's school board or board of directors adopts by 58.9 resolution specific standards for accepting and rejecting 58.10 students' applications. 58.11 (d) An enrolling district may reduce an on-line learning 58.12 student's regular classroom instructional membership in 58.13 proportion to the student's membership in on-line learning 58.14 courses. 58.15 Subd. 4. [ON-LINE LEARNING PARAMETERS.] (a) An on-line 58.16 learning student must receive academic credit for completing the 58.17 requirements of an on-line learning course or program. 58.18 Secondary credits granted to an on-line learning student must be 58.19 counted toward the graduation and credit requirements of the 58.20 enrolling district. The enrolling district must apply the same 58.21 graduation requirements to all students, including on-line 58.22 learning students, and must continue to provide nonacademic 58.23 services to on-line learning students. If a student completes 58.24 an on-line learning course or program that meets or exceeds a 58.25 graduation standard or grade progression requirement at the 58.26 enrolling district, that standard or requirement is met. The 58.27 enrolling district must use the same criteria for accepting 58.28 on-line learning credits or courses as it does for accepting 58.29 credits or courses for transfer students under section 124D.03, 58.30 subdivision 9. The enrolling district may reduce the teacher 58.31 contact time of an on-line learning student in proportion to the 58.32 number of on-line learning courses the student takes from an 58.33 on-line learning provider that is not the enrolling district. 58.34 (b) An on-line learning student may: 58.35 (1) enroll during a single school year in a maximum of 12 58.36 semester-long courses or their equivalent delivered by an 59.1 on-line learning provider or the enrolling district; 59.2 (2) complete course work at a grade level that is different 59.3 from the student's current grade level; and 59.4 (3) enroll in additional courses with the on-line learning 59.5 provider under a separate agreement that includes terms for 59.6 payment of any tuition or course fees. 59.7 (c) A student with a disability may enroll in an on-line 59.8 learning course or program if the student's IEP team determines 59.9 that on-line learning is appropriate education for the student. 59.10 (d) An on-line learning student has the same access to the 59.11 computer hardware and education software available in a school 59.12 as all other students in the enrolling district. An on-line 59.13 learning provider must assist an on-line learning student whose 59.14 family qualifies for the education tax credit under section 59.15 290.0674 to acquire computer hardware and educational software 59.16 for on-line learning purposes. 59.17 (e) An enrolling district may offer on-line learning to its 59.18 enrolled students. Such on-line learning does not generate 59.19 on-line learning funds under this section. An enrolling 59.20 district that offers on-line learning only to its enrolled 59.21 students is not subject to the reporting requirements or review 59.22 criteria under subdivision 7. A teacher with a Minnesota 59.23 license must assemble and deliver instruction to enrolled 59.24 students receiving on-line learning from an enrolling district. 59.25 The instruction may include curriculum developed by persons 59.26 other than a teacher with a Minnesota license. 59.27 (f) An on-line learning provider that is not the enrolling 59.28 district is subject to the reporting requirements and review 59.29 criteria under subdivision 7. A teacher with a Minnesota 59.30 license must assemble and deliver instruction to on-line 59.31 learning students. The instruction may include curriculum 59.32 developed by persons other than a teacher with a Minnesota 59.33 license. Unless the commissioner grants a waiver, a teacher 59.34 providing on-line learning instruction must not instruct more 59.35 than 40 students in any one on-line learning course or program. 59.36 Subd. 5. [PARTICIPATION IN EXTRACURRICULAR ACTIVITIES.] An 60.1 on-line learning student may participate in the extracurricular 60.2 activities of the enrolling district on the same basis as other 60.3 enrolled students. 60.4 Subd. 6. [INFORMATION.] School districts and charter 60.5 schools must make available information about on-line learning 60.6 to all interested people. 60.7 Subd. 7. [DEPARTMENT OF EDUCATION.] (a) The department 60.8 must review and certify on-line learning providers. The on-line 60.9 learning courses and programs must be rigorous, aligned with 60.10 state academic standards, and contribute to grade progression in 60.11 a single subject. On-line learning providers must affirm to the 60.12 commissioner that on-line learning courses have equivalent 60.13 standards or instruction, curriculum, and assessment 60.14 requirements as other courses offered to enrolled students. The 60.15 on-line learning provider must also demonstrate expectations for 60.16 actual teacher contact time or other student-to-teacher 60.17 communication. Once an on-line learning provider is approved 60.18 under this paragraph, all of its on-line learning course 60.19 offerings are eligible for payment under this section unless a 60.20 course is successfully challenged by an enrolling district or 60.21 the department under paragraph (b). 60.22 (b) An enrolling district may challenge the validity of a 60.23 course offered by an on-line learning provider. The department 60.24 must review such challenges based on the certification 60.25 procedures under paragraph (a). The department may initiate its 60.26 own review of the validity of an on-line learning course offered 60.27 by an on-line learning provider. 60.28 (c) The department may collect a fee not to exceed $250 for 60.29 certifying on-line learning providers or $50 per course for 60.30 reviewing a challenge by an enrolling district. 60.31 (d) The department must develop, publish, and maintain a 60.32 list of approved on-line learning providers and on-line learning 60.33 courses and programs that it has reviewed and certified. 60.34 Subd. 8. [FINANCIAL ARRANGEMENTS.] (a) For a student 60.35 enrolled in an on-line learning course, the department must 60.36 calculate average daily membership and make payments according 61.1 to this subdivision. 61.2 (b) The initial on-line learning average daily membership 61.3 equals 1/12 for each semester course or a proportionate amount 61.4 for courses of different lengths. The adjusted on-line learning 61.5 average daily membership equals the initial on-line learning 61.6 average daily membership times .88. 61.7 (c) No on-line learning average daily membership shall be 61.8 generated if: (i) the student does not complete the on-line 61.9 learning course, or (ii) the student is enrolled in on-line 61.10 learning provided by the enrolling district and the student was 61.11 enrolled in a Minnesota public school for the school year before 61.12 the school year in which the student first enrolled in on-line 61.13 learning. 61.14 (d) On-line learning average daily membership under this 61.15 subdivision for a student currently enrolled in a Minnesota 61.16 public school and who was enrolled in a Minnesota public school 61.17 for the school year before the school year in which the student 61.18 first enrolled in on-line learning shall be used only for 61.19 computing average daily membership according to section 126C.05, 61.20 subdivision 19, paragraph (a), clause (ii), and for computing 61.21 on-line learning aid according to section 126C.24. 61.22 (e) On-line learning average daily membership under this 61.23 subdivision for students not included in paragraph (c) or (d) 61.24 shall be used only for computing average daily membership 61.25 according to section 126C.05, subdivision 19, paragraph (a), 61.26 clause (ii), and for computing payments under paragraphs (f) and 61.27 (g). 61.28 (f) Subject to the limitations in this subdivision, the 61.29 department must pay an on-line learning provider an amount equal 61.30 to the product of the adjusted on-line learning average daily 61.31 membership for students under paragraph (e) times the student 61.32 grade level weighting under section 126C.05, subdivision 1, 61.33 times the formula allowance. 61.34 (g) The department must pay each on-line learning provider 61.35 100 percent of the amount in paragraph (f) within 45 days of 61.36 receiving final enrollment and course completion information 62.1 each quarter or semester. 62.2 Subd. 9. [PAYMENT PRIORITY.] (a) To the extent funds are 62.3 available, the commissioner must pay an on-line learning 62.4 provider according to subdivision 8, in the order in which a 62.5 on-line learning provider notifies the commissioner under 62.6 subdivision 3, paragraph (b), that it is delivering on-line 62.7 learning. The on-line learning provider must submit to the 62.8 commissioner any student information necessary to process 62.9 payments under this section. 62.10 (b) Before paying other on-line learning providers under 62.11 paragraph (a), the commissioner must pay providers that 62.12 delivered on-line learning in fiscal year 2003. (i) First, the 62.13 commissioner must pay for students who were enrolled in a 62.14 Minnesota on-line learning program during fiscal year 2003 and 62.15 continue to be enrolled in that on-line learning program during 62.16 the current fiscal year. (ii) Second, the commissioner must pay 62.17 for other students enrolled in that on-line learning program 62.18 during the current fiscal year. A provider's qualifying number 62.19 of pupils under clauses (i) and (ii) shall not exceed 100 62.20 percent of the fiscal year 2003 pupils. An on-line learning 62.21 provider that qualifies under this paragraph may also submit an 62.22 application for funding for additional pupils under paragraph 62.23 (a). 62.24 (c) Notwithstanding paragraph (a), the commissioner may 62.25 establish criteria to limit the increase in the number of 62.26 qualifying pupils for an on-line learning provider to enable 62.27 start-up or growth of other providers. 62.28 [EFFECTIVE DATE.] This section is effective for the 62.29 2003-2004 school year and later. 62.30 Sec. 21. Minnesota Statutes 2002, section 124D.10, 62.31 subdivision 2a, is amended to read: 62.32 Subd. 2a. [CHARTER SCHOOL ADVISORY COUNCIL.] (a) A charter 62.33 school advisory council is established under section 62.34 15.059 except that the term for each council member shall be 62.35 three years. The advisory council is composed of seven members 62.36 from throughout the state who have demonstrated experience with 63.1 or interest in charter schools. The members of the council 63.2 shall be appointed by the commissioner. The advisory council 63.3 shall bring to the attention of the commissioner any matters 63.4 related to charter schools that the council deems necessary and 63.5 shall: 63.6 (1) encourage school boards to make full use of charter 63.7 school opportunities; 63.8 (2) encourage the creation of innovative schools; 63.9 (3) provide leadership and support for charter school 63.10 sponsors to increase the innovation in and the effectiveness, 63.11 accountability, and fiscal soundness of charter schools; 63.12 (4) serve an ombudsman function in facilitating the 63.13 operations of new and existing charter schools; 63.14 (5) promote timely financial management training for newly 63.15 elected members of a charter school board of directors and 63.16 ongoing training for other members of a charter school board of 63.17 directors; and 63.18 (6) review charter school applications and recommend63.19 approving or disapproving the applications; and63.20 (7)facilitate compliance with auditing and other reporting 63.21 requirements. The advisory council shall refer all its 63.22 proposals to the commissioner who shall provide time for reports 63.23 from the council. 63.24 (b) The charter school advisory council under this 63.25 subdivision expires June 30, 20032007. 63.26 Sec. 22. Minnesota Statutes 2002, section 124D.10, 63.27 subdivision 3, is amended to read: 63.28 Subd. 3. [SPONSOR.] (a) A school board; intermediate 63.29 school district school board; education district organized under 63.30 sections 123A.15 to 123A.19; charitable organization under 63.31 section 501(c)(3) of the Internal Revenue Code of 1986 that is a 63.32 member of the Minnesota council of nonprofits or the Minnesota 63.33 council on foundations, registered with the attorney general's 63.34 office, and reports an end-of-year fund balance of at least 63.35 $2,000,000; Minnesota private college that grants two- or 63.36 four-year degrees and is registered with the higher education 64.1 services office under chapter 136A; community college, state 64.2 university, or technical college, governed by the board of 64.3 trustees of the Minnesota state colleges and universities; or 64.4 the University of Minnesota may sponsor one or more charter 64.5 schools. 64.6 (b) A nonprofit corporation subject to chapter 317A, 64.7 described in section 317A.905, and exempt from federal income 64.8 tax under section 501(c)(6) of the Internal Revenue Code of 64.9 1986, may sponsor one or more charter schools if the charter 64.10 school has operated for at least three years under a different 64.11 sponsor and if the nonprofit corporation has existed for at 64.12 least 25 years. 64.13 [EFFECTIVE DATE.] This section is effective for the 64.14 2003-2004 school year and later. 64.15 Sec. 23. Minnesota Statutes 2002, section 124D.10, 64.16 subdivision 4, is amended to read: 64.17 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 64.18 authorize one or more licensed teachers under section 122A.18, 64.19 subdivision 1, to operate a charter school subject to approval 64.20 by the commissioner. A board must vote on charter school 64.21 application for sponsorship no later than 90 days after 64.22 receiving the application. After 90 days, the applicant may 64.23 apply to the commissioner. If a board elects not to sponsor a 64.24 charter school, the applicant may appeal the board's decision to 64.25 the commissioner. The commissioner may elect to sponsor the 64.26 charter school or assist the applicant in finding an eligible 64.27 sponsor. The school must be organized and operated as a 64.28 cooperative under chapter 308A or nonprofit corporation under 64.29 chapter 317A and the provisions under the applicable chapter 64.30 shall apply to the school except as provided in this section. 64.31 Notwithstanding sections 465.717 and 465.719, a school district 64.32 may create a corporation for the purpose of creating a charter 64.33 school. 64.34 (b) Before the operators may form and operate a school, the 64.35 sponsor must file an affidavit with the commissioner stating its 64.36 intent to authorize a charter school. The affidavit must state 65.1 the terms and conditions under which the sponsor would authorize 65.2 a charter school. The commissioner must approve or disapprove 65.3 the sponsor's proposed authorization within 60 days of receipt 65.4 of the affidavit. Failure to obtain commissioner approval 65.5 precludes a sponsor from authorizing the charter school that was 65.6 the subject of the affidavit. 65.7 (c) The operators authorized to organize and operate a 65.8 school, before entering into a contract or other agreement for 65.9 professional or other services, goods, or facilities, must 65.10 incorporate as a cooperative under chapter 308A or as a 65.11 nonprofit corporation under chapter 317A and must establish a 65.12 board of directors composed of at least five members until a 65.13 timely election for members of the charter school board of 65.14 directors is held according to the school's articles and 65.15 bylaws. A charter school board of directors must be composed of 65.16 at least five members. Any staff members who are employed at 65.17 the school, including teachers providing instruction under a 65.18 contract with a cooperative, and all parents of children 65.19 enrolled in the school may participate in the election for 65.20 members of the school's board of directors. Licensed teachers 65.21 employed at the school, including teachers providing instruction 65.22 under a contract with a cooperative, must be a majority of the 65.23 members of the board of directors before the school completes 65.24 its third year of operation, unless the commissioner waives the 65.25 requirement for a majority of licensed teachers on the board. 65.26 Board of director meetings must comply with chapter 13D. 65.27 (d) The granting or renewal of a charter by a sponsoring 65.28 entity must not be conditioned upon the bargaining unit status 65.29 of the employees of the school. 65.30 (e) A sponsor may authorize the operators of a charter 65.31 school to expand the operation of the charter school to 65.32 additional sites or to add additional grades at the school 65.33 beyond those described in the sponsor's application as approved 65.34 by the commissioner only after submitting a supplemental 65.35 application to the commissioner in a form and manner prescribed 65.36 by the commissioner. The supplemental application must provide 66.1 evidence that: 66.2 (1) the expansion of the charter school is supported by 66.3 need and projected enrollment; 66.4 (2) the charter school is fiscally sound; 66.5 (3) the sponsor supports the expansion; and 66.6 (4) the building of the additional site meets all health 66.7 and safety requirements to be eligible for lease aid. 66.8 (f) The commissioner annually must provide timely financial 66.9 management training to newly elected members of a charter school 66.10 board of directors and ongoing training to other members of a 66.11 charter school board of directors. Training must address ways 66.12 to: 66.13 (1) proactively assess opportunities for a charter school 66.14 to maximize all available revenue sources; 66.15 (2) establish and maintain complete, auditable records for 66.16 the charter school; 66.17 (3) establish proper filing techniques; 66.18 (4) document formal actions of the charter school, 66.19 including meetings of the charter school board of directors; 66.20 (5) properly manage and retain charter school and student 66.21 records; 66.22 (6) comply with state and federal payroll record-keeping 66.23 requirements; and 66.24 (7) address other similar factors that facilitate 66.25 establishing and maintaining complete records on the charter 66.26 school's operations. 66.27 Sec. 24. Minnesota Statutes 2002, section 124D.10, 66.28 subdivision 16, is amended to read: 66.29 Subd. 16. [TRANSPORTATION.] (a) By July 1 of each year, a 66.30 charter school must notify the district in which the school is 66.31 located and the department of children, families, and66.32 learningeducation if it will provide transportation for pupils 66.33 enrolled in the school for the fiscal year. 66.34 (b) If a charter school elects to provide transportation 66.35 for pupils, the transportation must be provided by the charter 66.36 school within the district in which the charter school is 67.1 located. The state must pay transportation aid to the charter 67.2 school according to section 124D.11, subdivision 2. 67.3 For pupils who reside outside the district in which the 67.4 charter school is located, the charter school is not required to 67.5 provide or pay for transportation between the pupil's residence 67.6 and the border of the district in which the charter school is 67.7 located. A parent may be reimbursed by the charter school for 67.8 costs of transportation from the pupil's residence to the border 67.9 of the district in which the charter school is located if the 67.10 pupil is from a family whose income is at or below the poverty 67.11 level, as determined by the federal government. The 67.12 reimbursement may not exceed the pupil's actual cost of 67.13 transportation or 15 cents per mile traveled, whichever is 67.14 less. Reimbursement may not be paid for more than 250 miles per 67.15 week. 67.16 At the time a pupil enrolls in a charter school, the 67.17 charter school must provide the parent or guardian with 67.18 information regarding the transportation. 67.19 (c) If a charter school does not elect to provide 67.20 transportation, transportation for pupils enrolled at the school 67.21 must be provided by the district in which the school is located, 67.22 according to sections 123B.88, subdivision 6, and 124D.03, 67.23 subdivision 8, for a pupil residing in the same district in 67.24 which the charter school is located. Transportation may be 67.25 provided by the district in which the school is located, 67.26 according to sections 123B.88, subdivision 6, and 124D.03, 67.27 subdivision 8, for a pupil residing in a different district. If 67.28 the district provides the transportation, the scheduling of 67.29 routes, manner and method of transportation, control and 67.30 discipline of the pupils, and any other matter relating to the 67.31 transportation of pupils under this paragraph shall be within 67.32 the sole discretion, control, and management of the district. 67.33 Sec. 25. Minnesota Statutes 2002, section 124D.10, 67.34 subdivision 20, is amended to read: 67.35 Subd. 20. [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 67.36 teacher employed by a district makes a written request for an 68.1 extended leave of absence to teach at a charter school, the 68.2 district must grant the leave. The district must grant a leave 68.3 for any number ofnot to exceed a total of five years requested68.4 by the teacher, and must. Any request to extend the leave at68.5 the teacher's requestshall be granted only at the discretion of 68.6 the school board. The district may require that the request for 68.7 a leave or extension of leave be made up to 90 days before the 68.8 teacher would otherwise have to report for duty. Except as 68.9 otherwise provided in this subdivision and except for section 68.10 122A.46, subdivision 7, the leave is governed by section 68.11 122A.46, including, but not limited to, reinstatement, notice of 68.12 intention to return, seniority, salary, and insurance. 68.13 During a leave, the teacher may continue to aggregate 68.14 benefits and credits in the teachers' retirement association 68.15 account by paying both the employer and employee contributions 68.16 based upon the annual salary of the teacher for the last full 68.17 pay period before the leave began. The retirement association 68.18 may impose reasonable requirements to efficiently administer 68.19 this subdivision. 68.20 [EFFECTIVE DATE.] This section is effective the day 68.21 following final enactment and applies to approvals of leaves or 68.22 approvals of extensions of leaves made after that date. 68.23 Notwithstanding Minnesota Statutes 2002, section 122A.46, 68.24 subdivision 2, a school district, upon request, must grant a 68.25 one-year extension for the 2003-2004 school year to a teacher on 68.26 a leave of absence to teach at a charter school under this 68.27 subdivision who has taught five or more years as of the 68.28 2003-2004 school year. 68.29 Sec. 26. Minnesota Statutes 2002, section 124D.11, 68.30 subdivision 1, is amended to read: 68.31 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 68.32 education revenue must be paid to a charter school as though it 68.33 were a district. The general education revenue for each 68.34 adjusted marginal cost pupil unit is the state average general 68.35 education revenue per pupil unit, plus the referendum 68.36 equalization aid allowance in the pupil's district of residence, 69.1 minus an amount equal to the product of the formula allowance 69.2 according to section 126C.10, subdivision 2, times .0485, 69.3 calculated without basic skills revenue, and transportation 69.4 sparsity revenue, and the transportation portion of the69.5 transition revenue adjustment,plus basic skills revenue and 69.6 transition revenue as though the school were a school district. 69.7 (b) Notwithstanding paragraph (a), for charter schools in 69.8 the first year of operation, general education revenue shall be 69.9 computed using the number of adjusted pupil units in the current 69.10 fiscal year. 69.11 Sec. 27. Minnesota Statutes 2002, section 124D.11, 69.12 subdivision 2, is amended to read: 69.13 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 69.14 must be paid to a charter school that provides transportation 69.15 services according to section 124D.10, subdivision 16, according 69.16 to this subdivision. Transportation aid shall equal 69.17 transportation revenue. 69.18 In addition to the revenue under subdivision 1, a charter 69.19 school providing transportation services must receive general 69.20 education aid for each pupil unit equal to the sum of an amount 69.21 equal to the product of the formula allowance according to 69.22 section 126C.10, subdivision 2, times .0485, plus the 69.23 transportation sparsity allowance for the school district in 69.24 which the charter school is located , plus the transportation69.25 transition allowance for the district in which the charter69.26 school is located. 69.27 Sec. 28. Minnesota Statutes 2002, section 124D.11, 69.28 subdivision 4, is amended to read: 69.29 Subd. 4. [BUILDING LEASE AID.] When a charter school finds 69.30 it economically advantageous to rent or lease a building or land 69.31 for any instructional purposes and it determines that the total 69.32 operating capital revenue under section 126C.10, subdivision 13, 69.33 is insufficient for this purpose, it may apply to the 69.34 commissioner for building lease aid for this purpose. The 69.35 commissioner must review and either approve or deny a lease aid 69.36 application using the following criteria: 70.1 (1) the reasonableness of the price based on current market 70.2 values; 70.3 (2) the extent to which the lease conforms to applicable 70.4 state laws and rules; and 70.5 (3) the appropriateness of the proposed lease in the 70.6 context of the space needs and financial circumstances of the 70.7 charter school. 70.8 A charter school must not use the building lease aid it receives 70.9 for custodial, maintenance service, utility, or other operating 70.10 costs. The amount of building lease aid per pupil unit served 70.11 for a charter school for any year shall not exceed the lesser of 70.12 (a) 90 percent of the approved cost or (b) the product of the 70.13 pupil units served for the current school year times $1,500the 70.14 greater of the charter school's building lease aid per pupil 70.15 unit served for fiscal year 2003, excluding the adjustment under 70.16 Laws 2002, chapter 392, article 6, section 4, or $1,200. 70.17 [EFFECTIVE DATE.] This section is effective for revenue for 70.18 fiscal year 2004. 70.19 Sec. 29. Minnesota Statutes 2002, section 124D.11, 70.20 subdivision 6, is amended to read: 70.21 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 70.22 school is eligible to receive other aids, grants, and revenue 70.23 according to chapters 120A to 129C, as though it were a district. 70.24 (b) Notwithstanding paragraph (a), a charter school may not 70.25 receive aid, a grant, or revenue if a levy is required to obtain 70.26 the money, except as otherwise provided in this section. 70.27 (c) Federal aid received by the state must be paid to the 70.28 school, if it qualifies for the aid as though it were a school 70.29 district. 70.30 (d) A charter school may receive money from any source for 70.31 capital facilities needs. In the year-end report to the 70.32 commissioner of children, families, and learningeducation, the 70.33 charter school shall report the total amount of funds received 70.34 from grants and other outside sources. 70.35 (e) Notwithstanding paragraph (a) or (b), a charter school70.36 may apply for a grant to receive the aid portion of integration71.1 revenue under section 124D.86, subdivision 3, for enrolled71.2 students who are residents of a district that is eligible for71.3 integration revenue. The commissioner shall determine grant71.4 recipients and may adopt application guidelines. The grants71.5 must be competitively determined and must demonstrate that71.6 enrolling pupils in the charter school contributes to71.7 desegregation or integration purposes as determined by the71.8 commissioner. If the charter school has elected not to provide71.9 transportation under section 124D.10, subdivision 16, the aid71.10 shall be reduced by the amount per pupil unit specified for the71.11 district where the charter school is located under section71.12 123B.92, subdivision 8.71.13 [EFFECTIVE DATE.] This section is effective for revenue for 71.14 fiscal year 2004. 71.15 Sec. 30. Minnesota Statutes 2002, section 124D.42, 71.16 subdivision 6, is amended to read: 71.17 Subd. 6. [PROGRAM TRAINING.] (a) The commission must, 71.18 within available resources, ensure an opportunity for each 71.19 participant to have three weeks of training in a residential 71.20 setting. If offered, each training session must: 71.21 (1) orient each participant in the nature, philosophy, and 71.22 purpose of the program; 71.23 (2) build an ethic of community service through general 71.24 community service training; and 71.25 (3) provide additional training as it determines necessary, 71.26 which may include training in evaluating early literacy skills 71.27 and teaching reading to preschool children through the St. Croix 71.28 River education district under Laws 2001, First Special Session 71.29 chapter 6, article 2, section 70, to assist local Head Start 71.30 organizations in establishing and evaluating Head Start programs 71.31 for developing children's early literacy skills. 71.32 (b) Each grantee organization shall also train participants 71.33 in skills relevant to the community service opportunity. 71.34 Sec. 31. Minnesota Statutes 2002, section 124D.86, 71.35 subdivision 1a, is amended to read: 71.36 Subd. 1a. [BUDGET APPROVAL PROCESS.] Each year before a 72.1 district receives any revenue under subdivision 3, clause (4), 72.2 (5), or (6), the district must submit to the department of 72.3 children, families, and learningeducation, for its review and 72.4 approval a budget detailing the costs of the 72.5 desegregation/integration plan filed under Minnesota Rules, 72.6 parts 3535.0100 to 3535.0180. Notwithstanding chapter 14, the 72.7 department may develop criteria for budget approval. The 72.8 department shall consult with the desegregation advisory board 72.9 in developing these criteria. The criteria developed by the 72.10 department should address, at a minimum, the following: 72.11 (1) budget items cannot be approved unless they are part of 72.12 any overall desegregation plan approved by the district for 72.13 isolated sites or by the multidistrict collaboration council and 72.14 participation individual members; 72.15 (2) the budget must indicate how revenue expenditures will 72.16 be used specifically to support increased opportunities for 72.17 interracial contact; 72.18 (3) components of the budget to be considered by the 72.19 department, including staffing, curriculum, transportation, 72.20 facilities, materials, and equipment and reasonable planning 72.21 costs, as determined by the department; and 72.22 (4) if plans are proposed to enhance existing programs, the 72.23 total budget being appropriated to the program must be included, 72.24 indicating what part is to be funded using integration revenue 72.25 and what part is to be funded using other revenues. 72.26 [EFFECTIVE DATE.] This section is effective retroactively 72.27 for revenue for fiscal year 2003. 72.28 Sec. 32. Minnesota Statutes 2002, section 124D.86, 72.29 subdivision 3, is amended to read: 72.30 Subd. 3. [INTEGRATION REVENUE.] Integration revenue equals 72.31 the following amounts: 72.32 (1) for independent school district No. 709, 72.33 Duluth, $207$206 times the adjusted pupil units for the school 72.34 year; 72.35 (2) for independent school district No. 625, St. 72.36 Paul, $446$445 times the adjusted pupil units for the school 73.1 year; 73.2 (3) for special school district No. 1, Minneapolis, the sum 73.3 of $446$445 times the adjusted pupil units for the school year 73.4 and an additional $35 times the adjusted pupil units for the 73.5 school year that is provided entirely through a local levy; 73.6 (4) for a district not listed in clause (1), (2), or (3), 73.7 that must implement a plan under Minnesota Rules, parts 73.8 3535.0100 to 3535.0180, where the district's enrollment of 73.9 protected students, as defined under Minnesota Rules, part 73.10 3535.0110, exceeds 15 percent, the lesser of (i) the actual cost 73.11 of implementing the plan during the fiscal year minus the aid 73.12 received under subdivision 6, or (ii) $130$129 times the 73.13 adjusted pupil units for the school year; 73.14 (5) for a district not listed in clause (1), (2), (3), or 73.15 (4), that is required to implement a plan according to the 73.16 requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 73.17 the lesser of 73.18 (i) the actual cost of implementing the plan during the 73.19 fiscal year minus the aid received under subdivision 6, or 73.20 (ii) $93$92 times the adjusted pupil units for the school 73.21 year. 73.22 Any money received by districts in clauses (1) to (4)(3) 73.23 which exceeds the amount received in fiscal year 2000 shall be 73.24 subject to the budget requirements in subdivision 1a; and 73.25 (6) for a member district of a multidistrict integration 73.26 collaborative that files a plan with the commissioner, but is 73.27 not contiguous to a racially isolated district, integration 73.28 revenue equals the amount defined in clause (5). 73.29 [EFFECTIVE DATE.] This section is effective for revenue for 73.30 fiscal year 2004. 73.31 Sec. 33. Minnesota Statutes 2002, section 124D.86, 73.32 subdivision 4, is amended to read: 73.33 Subd. 4. [INTEGRATION LEVY.] A district may levy an amount 73.34 equal to 37 percent for fiscal year 2003, 2223 percent for 73.35 fiscal year 2004, 29and 30 percent for fiscal year 2005 , and 2273.36 percent for fiscal year 2006and thereafter of the district's 74.1 integration revenue as defined in subdivision 3. 74.2 [EFFECTIVE DATE.] This section is effective for revenue for 74.3 fiscal year 2004. 74.4 Sec. 34. Minnesota Statutes 2002, section 124D.86, 74.5 subdivision 5, is amended to read: 74.6 Subd. 5. [INTEGRATION AID.] A district's integration aid 74.7 equals 63 percent for fiscal year 2003, 78 percent for fiscal74.8 year 2004, 71 percent for fiscal year 2005, and 78 percent for74.9 fiscal year 2006 and thereafter ofthe difference between the 74.10 district's integration revenue as defined in subdivision 3and 74.11 its integration levy. 74.12 [EFFECTIVE DATE.] This section is effective for revenue for 74.13 fiscal year 2004. 74.14 Sec. 35. Minnesota Statutes 2002, section 124D.86, 74.15 subdivision 6, is amended to read: 74.16 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 74.17 integration aid under subdivision 5 must be adjusted for each 74.18 pupil residing in a district eligible for integration revenue 74.19 under subdivision 3, clause (1), (2), or (3), and attending a 74.20 nonresident district under sections 123A.05 to 123A.08, 124D.03, 74.21 124D.06, 124D.07,and 124D.08, that is not eligible for 74.22 integration revenue under subdivision 3, clause (1), (2), or 74.23 (3), and has implemented a plan under Minnesota Rules, parts 74.24 3535.0100 to 3535.0180, if the enrollment of the pupil in the 74.25 nonresident district contributes to desegregation or integration 74.26 purposes. The adjustments must be made according to this 74.27 subdivision. 74.28 (b) Aid paid to a district serving nonresidents must be 74.29 increased by an amount equal to the revenue per pupil unit of 74.30 the resident district under subdivision 3, clause (1), (2), or 74.31 (3), minus the revenue attributable to the pupil in the 74.32 nonresident district under subdivision 3, clause (4), (5), or 74.33 (6), for the time the pupil is enrolled in the nonresident 74.34 district. 74.35 [EFFECTIVE DATE.] This section is effective retroactively 74.36 for fiscal year 2003. 75.1 Sec. 36. Minnesota Statutes 2002, section 126C.05, is 75.2 amended by adding a subdivision to read: 75.3 Subd. 19. [ON-LINE LEARNING STUDENTS.] (a) The average 75.4 daily membership for a public school pupil generating on-line 75.5 learning average daily membership according to section 124D.095, 75.6 subdivision 8, paragraph (b), equals the sum of: (i) the ratio 75.7 of the sum of the number of instructional hours the pupil is 75.8 enrolled in a regular classroom setting at the enrolling school 75.9 to the actual number of instructional hours in the school year 75.10 at the enrolling school, plus (ii) .12 times the initial on-line 75.11 learning average daily membership according to section 124D.095, 75.12 subdivision 8, paragraph (b). 75.13 (b) When the sum of the average daily membership under 75.14 paragraph (a) and the adjusted on-line learning average daily 75.15 membership under section 124D.095, subdivision 8, paragraph (b), 75.16 exceeds the maximum allowed for the student under subdivision 8 75.17 or 15, as applicable, the average daily membership under 75.18 paragraph (a) shall be reduced by the excess over the maximum, 75.19 but shall not be reduced below .12. The adjusted on-line 75.20 learning average daily membership according to section 124D.095, 75.21 subdivision 8, paragraph (b), shall be reduced by any remaining 75.22 excess over the maximum. 75.23 Sec. 37. [126C.24] [ON-LINE LEARNING AID.] 75.24 (a) The on-line learning aid for an on-line learning 75.25 provider equals the product of the adjusted on-line learning 75.26 average daily membership for students under section 124D.095, 75.27 subdivision 8, paragraph (d), times the student grade level 75.28 weighting under section 126C.05, subdivision 1, times the 75.29 formula allowance. 75.30 (b) Notwithstanding section 127A.45, the department must 75.31 pay each on-line learning provider 77 percent of the amount in 75.32 paragraph (a) within 45 days of receiving final enrollment and 75.33 course completion information each quarter or semester. A final 75.34 payment equal to 23 percent of the amount in paragraph (a) must 75.35 be made on September 30 of the next fiscal year. 75.36 Sec. 38. Minnesota Statutes 2002, section 126C.44, is 76.1 amended to read: 76.2 126C.44 [SAFE SCHOOLS LEVY.] 76.3 Each district may make a levy on all taxable property 76.4 located within the district for the purposes specified in this 76.5 section. The maximum amount which may be levied for all costs 76.6 under this section shall be equal to $30$27 multiplied by the 76.7 district's adjusted marginal cost pupil units for the school 76.8 year. The proceeds of the levy must be used for directly 76.9 funding the following purposes or for reimbursing the cities and 76.10 counties who contract with the district for the following 76.11 purposes: (1) to pay the costs incurred for the salaries, 76.12 benefits, and transportation costs of peace officers and 76.13 sheriffs for liaison in services in the district's schools; (2) 76.14 to pay the costs for a drug abuse prevention program as defined 76.15 in section 609.101, subdivision 3, paragraph (e), in the 76.16 elementary schools; (3) to pay the costs for a gang resistance 76.17 education training curriculum in the district's schools; (4) to 76.18 pay the costs for security in the district's schools and on 76.19 school property; or (5) to pay the costs for other crime 76.20 prevention, drug abuse, student and staff safety, and violence 76.21 prevention measures taken by the school district. The district 76.22 must initially attempt to contract for services to be provided 76.23 by peace officers or sheriffs with the police department of each 76.24 city or the sheriff's department of the county within the 76.25 district containing the school receiving the services. If a 76.26 local police department or a county sheriff's department does 76.27 not wish to provide the necessary services, the district may 76.28 contract for these services with any other police or sheriff's 76.29 department located entirely or partially within the school 76.30 district's boundaries. The levy authorized under this section 76.31 is not included in determining the school district's levy 76.32 limitations. 76.33 [EFFECTIVE DATE.] This section is effective for taxes 76.34 payable in 2004. 76.35 Sec. 39. Minnesota Statutes 2002, section 128C.02, 76.36 subdivision 1, is amended to read: 77.1 Subdivision 1. [DECISIONS, POLICIES, ADVISORY COMMITTEES.] 77.2 The board shall establish and adopt policies, including a policy 77.3 on corporate sponsorships and similar agreements, make decisions 77.4 on behalf of the league, and establish advisory committees 77.5 necessary to carry out board functions. 77.6 [EFFECTIVE DATE.] This section is effective the day 77.7 following final enactment. 77.8 Sec. 40. Minnesota Statutes 2002, section 128C.05, is 77.9 amended by adding a subdivision to read: 77.10 Subd. 1a. [SUPERVISED COMPETITIVE HIGH SCHOOL 77.11 DIVING.] Notwithstanding Minnesota Rules, part 4717.3750, any 77.12 pool built before January 1, 1987, that was used for a high 77.13 school diving program during the 2000-2001 school year may be 77.14 used for supervised competitive high school diving unless a pool 77.15 that meets the requirements of Minnesota Rules, part 4717.3750, 77.16 is located within the school district. A school or district 77.17 using a pool for supervised competitive high school diving that 77.18 does not meet the requirements of the rule must provide 77.19 appropriate notice to parents and participants. 77.20 [EFFECTIVE DATE.] This section is effective for the 77.21 2003-2004 school year and later. 77.22 Sec. 41. Minnesota Statutes 2002, section 200.02, 77.23 subdivision 7, is amended to read: 77.24 Subd. 7. [MAJOR POLITICAL PARTY.] (a) "Major political 77.25 party" means a political party that maintains a party 77.26 organization in the state, political division or precinct in 77.27 question and that has presented at least one candidate for 77.28 election to the office of: 77.29 (1)governor and lieutenant governor, secretary of state, 77.30 state auditor, orattorney general, at the last preceding state77.31 general election for those offices; or77.32 (2)presidential elector, or U.S. senator at the last77.33 preceding state general election for presidential electors;at 77.34 the last preceding general election, and whose candidate 77.35 received votes in each county in that election and received 77.36 votes from not less than five percent of the total number of 78.1 individuals who voted in that election. 78.2 (b) "Major political party" also means a political party 78.3 that maintains a party organization in the state, political 78.4 subdivision, or precinct in question and whose members present 78.5 to the secretary of state a petition for a place on the state 78.6 partisan primary ballot, which petition contains signatures of a 78.7 number of the party members equal to at least five percent of 78.8 the total number of individuals who voted in the preceding state 78.9 general election. 78.10 (c) A political party whose candidate receives a sufficient 78.11 number of votes at a state general election described in 78.12 paragraph (a) becomes a major political party as of January 1 78.13 following that election and retains its major party status78.14 notwithstanding that the party fails to present a candidate who78.15 receives the number and percentage of votes required under78.16 paragraph (a) at the following state general election. 78.17 (d) A major political party whose candidates fail to 78.18 receive the number and percentage of votes required under 78.19 paragraph (a) at eitherthe next state general election 78.20 described by paragraph (a)loses major party status as of 78.21 December 31 following the most recentthat state general 78.22 election; except that in a year when presidential elector is the 78.23 only office of those listed in paragraph (a) to be voted on at 78.24 the state general election, a major political party retains its 78.25 major party status until the next state general election. 78.26 [EFFECTIVE DATE.] This section is effective August 1, 2003. 78.27 Sec. 42. Minnesota Statutes 2002, section 200.02, 78.28 subdivision 23, is amended to read: 78.29 Subd. 23. [MINOR POLITICAL PARTY.] (a) "Minor political 78.30 party" means a political party that is not a major political 78.31 party as defined by subdivision 7 and that has adopted a state 78.32 constitution, designated a state party chair, held a state 78.33 convention in the last two years, filed with the secretary of 78.34 state no later than December 31 following the most recent state 78.35 general election a certification that the party has met the 78.36 foregoing requirements, and met the requirements of paragraph 79.1 (b) or (e), as applicable. 79.2 (b) To be considered a minor party in all elections 79.3 statewide ,: 79.4 (1) the political party must have presented at least one 79.5 candidate for election to the office of: 79.6 (1)governor and lieutenant governor, secretary of state, 79.7 state auditor, orattorney general, at the last preceding state79.8 general election for those offices; or79.9 (2)presidential elector, or U.S. senator at the preceding79.10 state general election for presidential electors; andat the 79.11 last preceding general election, who received votes in each 79.12 county that in the aggregate equal at least one percent of the 79.13 total number of individuals who voted in the election, or 79.14 (2) its members must have presented to the secretary of 79.15 state a nominating petition in a form prescribed by the 79.16 secretary of state containing the signatures of party members in 79.17 a number equal to at least one percent of the total number of 79.18 individuals who voted in the preceding state general election. 79.19 (c) A political party whose candidate receives a sufficient 79.20 number of votes at a state general election described in 79.21 paragraph (b) becomes a minor political party as of January 1 79.22 following that election and retains its minor party status79.23 notwithstanding that the party fails to present a candidate who79.24 receives the number and percentage of votes required under79.25 paragraph (b) at the following state general election. 79.26 (d) A minor political party whose candidates fail to 79.27 receive the number and percentage of votes required under 79.28 paragraph (b) at eitherthe next state general election 79.29 described by paragraph (b)loses minor party status as of 79.30 December 31 following the most recentthat state general 79.31 election; except that in a year when presidential elector is the 79.32 only office of those listed in paragraph (b), clause (1), to be 79.33 voted on at the state general election, a minor political party 79.34 retains its minor party status until the next state general 79.35 election. 79.36 (e) To be considered a minor party in an election in a 80.1 legislative district, the political party must have presented at 80.2 least one candidate for a legislative office in that district 80.3 who received votes from at least ten percent of the total number 80.4 of individuals who voted for that office, or its members must 80.5 have presented to the secretary of state a nominating petition 80.6 in a form prescribed by the secretary of state containing the 80.7 signatures of party members in a number equal to at least ten 80.8 percent of the total number of individuals who voted in the 80.9 preceding state general election for that legislative office. 80.10 [EFFECTIVE DATE.] This section is effective August 1, 2003. 80.11 Sec. 43. Minnesota Statutes 2002, section 205A.03, 80.12 subdivision 1, is amended to read: 80.13 Subdivision 1. [ RESOLUTIONREQUIRED PRIMARY IN CERTAIN 80.14 CIRCUMSTANCES.] The school board of a school district may, by80.15 resolution adopted by June 1 of any year, decide to choose80.16 nominees for school district elective offices by a primary as80.17 provided in subdivisions 1 to 6. The resolution, when adopted,80.18 is effective for all ensuing elections of board members in that80.19 school district until it is revoked.In a school district 80.20 election, if there are more than two candidates for a specified 80.21 school board position or more than twice as many school board 80.22 candidates as there are at-large school board positions 80.23 available, a school district must hold a primary. 80.24 [EFFECTIVE DATE.] This section is effective the day 80.25 following final enactment for independent school district No. 80.26 742. This section is effective January 1, 2004, for all other 80.27 school districts and applies to school board elections held in 80.28 2004 and thereafter. 80.29 Sec. 44. Minnesota Statutes 2002, section 205A.03, 80.30 subdivision 3, is amended to read: 80.31 Subd. 3. [CANDIDATES, FILING.] The clerk shall place upon 80.32 the primary ballot without partisan designation the names of 80.33 individuals whose candidacies have been filed and for whom the 80.34 proper filing fee has been paid. When not more than twice the80.35 number of individuals to be elected to a school district80.36 elective officeas many school board candidates as there are 81.1 at-large school board positions available file for nomination 81.2 for the office or when not more than two candidates for a 81.3 specified school board position file for nomination for that 81.4 office, their names must not be placed upon the primary ballot 81.5 and must be placed on the school district general election 81.6 ballot as the nominees for that office. 81.7 Sec. 45. Minnesota Statutes 2002, section 205A.03, 81.8 subdivision 4, is amended to read: 81.9 Subd. 4. [RESULTS.] The school district primary must be 81.10 conducted and the returns made in the manner provided for the 81.11 state primary as far as practicable. Within two days after the 81.12 primary, the school board of the school district shall canvass 81.13 the returns, and the two candidates for each officespecified 81.14 school board position who receive the highest number of votes, 81.15 or a number of candidates equal to twice the number of 81.16 individuals to be elected to the officeat-large school board 81.17 positions who receive the highest number of votes, are the 81.18 nominees for the office named. Their names must be certified to 81.19 the school district clerk who shall place them on the school 81.20 district general election ballot without partisan designation 81.21 and without payment of an additional fee. 81.22 Sec. 46. Minnesota Statutes 2002, section 205A.06, 81.23 subdivision 1a, is amended to read: 81.24 Subd. 1a. [FILING PERIOD.] In school districts nominating81.25 candidates at a school district primary,Affidavits of candidacy 81.26 maymust be filed with the school district clerk no earlier than 81.27 the 70th day and no later than the 56th day before the first 81.28 Tuesday after the second Monday in September in the year when 81.29 the school district general election is held. In all other81.30 school districts, affidavits of candidacy must be filed not more81.31 than 70 days and not less than 56 days before the school81.32 district general election.81.33 [EFFECTIVE DATE.] This section is effective the day 81.34 following final enactment for independent school district No. 81.35 742. This section is effective January 1, 2004, for all other 81.36 school districts and applies to school board elections held in 82.1 2004 and thereafter. 82.2 Sec. 47. Minnesota Statutes 2002, section 611A.78, 82.3 subdivision 1, is amended to read: 82.4 Subdivision 1. [MEMBERSHIP.] A crime victim services 82.5 roundtable is created and shall be convened by the commissioner 82.6 of administration or a designee. The roundtable membership 82.7 shall include representatives from the following: the 82.8 departments of health; human services; children, families, and82.9 learning;corrections; and public safety; the supreme court; the 82.10 Minnesota planning agency; the office of the attorney general; 82.11 the office of crime victim ombudsman; the county attorneys 82.12 association; and the office of dispute resolution. The 82.13 roundtable membership shall also include one person representing 82.14 the four councils designated in sections 3.922, 3.9223, 3.9225, 82.15 and 3.9226. 82.16 Sec. 48. Laws 2001, First Special Session chapter 6, 82.17 article 2, section 72, is amended to read: 82.18 Sec. 72. [DEADLINE AND PENALTY WAIVED.] 82.19 The deadline and penalty under Minnesota Statutes, section 82.20 123B.05, subdivision 2, do not apply for aid payment for 82.21 the 2002-20032004-2005 biennium. 82.22 Sec. 49. [CHARTER SCHOOL ADVISORY BOARD MEMBER TERMS.] 82.23 In order to establish staggered terms for charter school 82.24 advisory board members under Minnesota Statutes, section 82.25 124D.10, subdivision 2a, the commissioner of education shall, by 82.26 lot, determine the length of term for each member serving on the 82.27 board on the effective date of this section. One-third of the 82.28 members shall serve a one-year term, one-third shall serve a 82.29 two-year term, and one-third shall serve a three-year term. 82.30 Thereafter, the term for each member must be three years. 82.31 Sec. 50. [PILOT PROJECT TO EVALUATE PARENT INVOLVEMENT 82.32 POLICIES AND STRATEGIES.] 82.33 Subdivision 1. [DISTRICT AND SCHOOL SITE POLICY 82.34 EVALUATION.] A school board may elect to participate in a 82.35 two-year pilot project to evaluate parent involvement policies 82.36 and strategies in the district and in school sites, with the 83.1 goal of improving the academic achievement of all students 83.2 within the district, including at-risk students. 83.3 Subd. 2. [PARENT INVOLVEMENT REVIEW COMMITTEES.] A school 83.4 board electing to participate and interested school sites within 83.5 that district must establish a parent involvement review 83.6 committee or expand the purview of an existing committee 83.7 composed of a majority of parents. The committees must evaluate 83.8 the effectiveness of district and school site programs and 83.9 strategies intended to provide all parents with meaningful 83.10 opportunities to participate in the process of educating 83.11 students. The committees, among other things, may evaluate the 83.12 operation of the instruction and curriculum advisory committee 83.13 or building team under Minnesota Statutes, section 120B.11, or 83.14 parent involvement programs developed under Minnesota Statutes, 83.15 section 124D.895. A majority of committee members must be 83.16 parents of students enrolled in the district or school site, if 83.17 applicable. The committee also must include teachers employed 83.18 by the district and who teach at a school site, if applicable. 83.19 A district must assist participating school sites at the request 83.20 of the school site. 83.21 Subd. 3. [NOTICE OF PARTICIPATION; NOTICE TO PARENTS.] (a) 83.22 A school board electing to participate under this section must 83.23 notify the commissioner of education of its participation and 83.24 the participation of interested school sites on a form supplied 83.25 by the commissioner. The commissioner may assist participating 83.26 districts and school sites at the request of the district or 83.27 school site. 83.28 (b) Participating school districts must transmit timely 83.29 effective notice of this project to parent organizations 83.30 throughout the district and to parents of children enrolled in 83.31 district schools. 83.32 Subd. 4. [REPORT.] Participating districts and school 83.33 sites must report the findings of the evaluation and related 83.34 recommendations annually by March 1 to the school board, which 83.35 shall transmit a summary of the findings and recommendations to 83.36 the commissioner. Information the commissioner receives under 84.1 this subdivision may be used to modify guidelines and model 84.2 plans for parent involvement programs under Minnesota Statutes, 84.3 section 124D.895. 84.4 [EFFECTIVE DATE.] This section is effective the day 84.5 following final enactment and applies to the 2003-2004 and 84.6 2004-2005 school years. 84.7 Sec. 51. [CHARTER SCHOOL START-UP AID.] 84.8 A charter school in its first year of operation during 84.9 fiscal year 2004 or 2005 is not eligible for charter school 84.10 start-up aid under Minnesota Statutes, section 124D.11, 84.11 subdivision 8. 84.12 Sec. 52. [ALTERNATIVE ATTENDANCE ADJUSTMENTS FOR FISCAL 84.13 YEAR 2002.] 84.14 Notwithstanding Minnesota Statutes, section 124D.86, 84.15 subdivision 6, for fiscal year 2002 only, integration aid under 84.16 Minnesota Statutes, section 124D.86, subdivision 5, must be 84.17 adjusted for each pupil residing in special school district No. 84.18 1, Minneapolis; independent school district No. 625, St. Paul; 84.19 or independent school district No. 709, Duluth, and attending a 84.20 nonresident district under Minnesota Statutes, sections 123A.05 84.21 to 123A.08, 124D.03, 124D.06, and 124D.08, other than 84.22 Minneapolis, St. Paul or Duluth that has implemented a plan 84.23 under Minnesota Rules, parts 3535.0100 to 3535.0180, if the 84.24 enrollment of the pupil in the nonresident district contributes 84.25 to desegregation or integration purposes. The adjustments must 84.26 be made according to this subdivision. 84.27 (b) Aid paid to a district serving nonresident pupils must 84.28 be increased by an amount equal to the revenue per pupil of the 84.29 resident district under Minnesota Statutes, section 124D.86, 84.30 subdivision 3, minus the revenue attributable to the pupil in 84.31 the nonresident district for the time the pupil is enrolled in 84.32 the nonresident district. 84.33 [EFFECTIVE DATE.] This section is effective the day 84.34 following final enactment and applies to fiscal year 2002. 84.35 Sec. 53. [POLICY ON STUDENTS WITH A HISTORY OF VIOLENT 84.36 BEHAVIOR.] 85.1 (a) Representatives of the Minnesota school boards 85.2 association, Education Minnesota, and the information policy 85.3 analysis division in the Minnesota department of administration, 85.4 the parent of a child who has participated in the Title I 85.5 delinquent education program selected by the commissioner of 85.6 education, and the commissioner of education or the 85.7 commissioner's designee, shall develop a model policy by August 85.8 1, 2003, on notifying classroom teachers and other school 85.9 district employees having a legitimate educational interest when 85.10 a student with a history of violent behavior is placed in the 85.11 teacher's classroom. The model policy at least must: 85.12 (1) define what constitutes a history of violent behavior, 85.13 consistent with Minnesota Statutes, section 121A.45, subdivision 85.14 2, clause (c); 85.15 (2) limit reports on violent behavior to a specified number 85.16 of school years; 85.17 (3) define "legitimate educational interest," consistent 85.18 with Minnesota Statutes, section 121A.64; 85.19 (4) indicate the persons at the school or district level 85.20 who determine which school district employees have a legitimate 85.21 educational interest; 85.22 (5) require school districts that transfer the student 85.23 records of a student with a history of violent behavior to 85.24 another school district, charter school, or alternative 85.25 education program to include all information about the student's 85.26 history of violent behavior in the student's educational records 85.27 it transmits to the enrolling school district, charter school, 85.28 or alternative education program, consistent with this policy; 85.29 (6) ensure that the parent of a student with a history of 85.30 violent behavior is able to review the student's educational 85.31 records and data and to effectively exercise rights under both 85.32 federal and state data practices laws to challenge records or 85.33 data on the basis that they are inaccurate, incomplete, 85.34 misleading, or otherwise violate the student's right to privacy 85.35 before the classroom teacher or other district employee is 85.36 notified; and 86.1 (7) require school districts to inform the parent or 86.2 guardian of a student with a history of violent behavior under 86.3 Minnesota Statutes, section 121A.64, that the district gives 86.4 notice about the student's history of violent behavior to the 86.5 classroom teacher and other district employees having a 86.6 legitimate educational interest before placing the student in 86.7 the teacher's classroom. 86.8 (b) The information policy analysis division in the 86.9 Minnesota department of administration by August 15, 2003, must 86.10 post on its division Web site the model policy developed under 86.11 paragraph (a). 86.12 (c) The task force in paragraph (a) expires on August 1, 86.13 2003. 86.14 [EFFECTIVE DATE.] This section is effective the day 86.15 following final enactment. 86.16 Sec. 54. [AT-LARGE SCHOOL BOARD MEMBERS; INDEPENDENT 86.17 SCHOOL DISTRICT NO. 709, DULUTH.] 86.18 (a) Notwithstanding Laws 1969, chapter 698, or other law to 86.19 the contrary, the school board for independent school district 86.20 No. 709, Duluth, may by resolution reduce from five to three the 86.21 number of at-large school board members. 86.22 (b) If the school board adopts the resolution under 86.23 paragraph (a), for the November 2003 election and each four 86.24 years thereafter, the three positions of those members elected 86.25 at large whose terms expire on December 31, 2003, shall be 86.26 reduced to one member elected at large. 86.27 (c) Nothing in this section prevents a member of the school 86.28 board on the effective date of this act who is otherwise 86.29 qualified from running for reelection upon the expiration of 86.30 that member's term. 86.31 [EFFECTIVE DATE.] This section is effective the day 86.32 following final enactment. 86.33 Sec. 55. [APPROPRIATIONS.] 86.34 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 86.35 indicated in this section are appropriated from the general fund 86.36 to the department of education for the fiscal years designated. 87.1 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 87.2 lease aid under Minnesota Statutes, section 124D.11, subdivision 87.3 4: 87.4 $17,140,000 ..... 2004 87.5 $21,018,000 ..... 2005 87.6 The 2004 appropriation includes $2,524,000 for 2003 and 87.7 $14,616,000 for 2004. 87.8 The 2005 appropriation includes $3,654,000 for 2004 and 87.9 $17,364,000 for 2005. 87.10 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 87.11 startup cost aid under Minnesota Statutes, section 124D.11: 87.12 $824,000 ..... 2004 87.13 $151,000 ..... 2005 87.14 The 2004 appropriation includes $220,000 for 2003 and 87.15 $604,000 for 2004. 87.16 The 2005 appropriation includes $151,000 for 2004 and $0 87.17 for 2005. 87.18 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 87.19 to charter schools to promote integration and desegregation 87.20 under Minnesota Statutes, section 124D.11, subdivision 6, 87.21 paragraph (e): 87.22 $8,000 ..... 2004 87.23 This appropriation includes $8,000 for 2003 and $0 for 2004. 87.24 Subd. 5. [INTEGRATION AID.] For integration aid under 87.25 Minnesota Statutes, section 124D.86, subdivision 5: 87.26 $56,869,000 ..... 2004 87.27 $56,092,000 ..... 2005 87.28 The 2004 appropriation includes $8,428,000 for 2003 and 87.29 $48,441,000 for 2004. 87.30 The 2005 appropriation includes $12,110,000 for 2004 and 87.31 $43,982,000 for 2005. 87.32 Subd. 6. [MAGNET SCHOOL GRANTS.] For magnet school and 87.33 program grants: 87.34 $750,000 ..... 2004 87.35 $750,000 ..... 2005 87.36 $90,000 of the fiscal year 2004 appropriation is for 88.1 continuation of the magnet school program authorized under Laws 88.2 2000, chapter 489, article 7, section 15, subdivision 5, for 88.3 independent school district No. 696, Ely. 88.4 These amounts may be used for magnet school programs under 88.5 Minnesota Statutes, section 124D.88. 88.6 Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school 88.7 startup aid under Minnesota Statutes, section 124D.88: 88.8 $ 37,000 ..... 2004 88.9 $454,000 ..... 2005 88.10 The 2004 appropriation includes $37,000 for 2003 and $0 for 88.11 2004. 88.12 The 2005 appropriation includes $0 for 2004 and $437,000 88.13 for 2005. 88.14 Subd. 8. [INTERDISTRICT DESEGREGATION OR INTEGRATION 88.15 TRANSPORTATION GRANTS.] For interdistrict desegregation or 88.16 integration transportation grants under Minnesota Statutes, 88.17 section 124D.87: 88.18 $5,796,000 ..... 2004 88.19 $8,401,000 ..... 2005 88.20 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 88.21 success for the future grants under Minnesota Statutes, section 88.22 124D.81: 88.23 $2,073,000 ..... 2004 88.24 $2,137,000 ..... 2005 88.25 The 2004 appropriation includes $363,000 for 2003 and 88.26 $1,710,000 for 2004. 88.27 The 2005 appropriation includes $427,000 for 2004 and 88.28 $1,710,000 for 2005. 88.29 Subd. 10. [AMERICAN INDIAN SCHOLARSHIPS.] For American 88.30 Indian scholarships under Minnesota Statutes, section 124D.84: 88.31 $1,875,000 ..... 2004 88.32 $1,875,000 ..... 2005 88.33 Subd. 11. [AMERICAN INDIAN TEACHER PREPARATION 88.34 GRANTS.] For joint grants to assist American Indian people to 88.35 become teachers under Minnesota Statutes, section 122A.63: 88.36 $190,000 ..... 2004 89.1 $190,000 ..... 2005 89.2 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 89.3 school aid under Minnesota Statutes, section 124D.83: 89.4 $2,135,000 ..... 2004 89.5 $2,336,000 ..... 2005 89.6 The 2004 appropriation includes $285,000 for 2003 and 89.7 $1,850,000 for 2004. 89.8 The 2005 appropriation includes $462,000 for 2004 and 89.9 $1,874,000 for 2005. 89.10 Subd. 13. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 89.11 SCHOOLS.] For early childhood family education programs at 89.12 tribal contract schools under Minnesota Statutes, section 89.13 124D.83, subdivision 4: 89.14 $68,000 ..... 2004 89.15 $68,000 ..... 2005 89.16 Subd. 14. [STATEWIDE TESTING SUPPORT.] For statewide 89.17 testing support under Minnesota Statutes, section 120B.30. 89.18 $9,000,000 ..... 2004 89.19 $9,000,000 ..... 2005 89.20 Subd. 15. [BEST PRACTICES SEMINARS.] For best practices 89.21 seminars and other professional development capacity building 89.22 activities that assure proficiency in teaching and 89.23 implementation of graduation rule standards: 89.24 $1,000,000 ..... 2004 89.25 $1,000,000 ..... 2005 89.26 $250,000 per year is for a grant to A Chance to Grow/New 89.27 Visions for the Minnesota learning resource center's 89.28 comprehensive training program for education professionals 89.29 charged with helping children acquire basic reading and math 89.30 skills. 89.31 Subd. 16. [ALTERNATIVE TEACHER COMPENSATION.] For 89.32 alternative teacher compensation established under Minnesota 89.33 Statutes, sections 122A.413 to 122A.415: 89.34 $3,700,000 ..... 2004 89.35 $3,700,000 ..... 2005 89.36 If the appropriations under this subdivision are 90.1 insufficient to fund all program participants, a participant may 90.2 receive less than the maximum per pupil amount available under 90.3 Minnesota Statutes, section 122A.415, subdivision 1. A 90.4 qualifying district or site receiving alternative teacher 90.5 compensation funding under this subdivision may use the funding 90.6 it receives to leverage additional funds from a national program 90.7 for enhancing teacher professionalism. 90.8 Subd. 17. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 90.9 PROGRAMS.] (a) For students' advanced placement and 90.10 international baccalaureate examination fees under Minnesota 90.11 Statutes, section 120B.13, subdivision 3, and the training and 90.12 related costs for teachers and other interested educators under 90.13 Minnesota Statutes, section 120B.13, subdivision 1: 90.14 $ 778,000 ..... 2004 90.15 $ 778,000 ..... 2005 90.16 (b) The advanced placement program shall receive 75 percent 90.17 of the appropriation each year and the international 90.18 baccalaureate program shall receive 25 percent of the 90.19 appropriation each year. The department, in consultation with 90.20 representatives of the advanced placement and international 90.21 baccalaureate programs selected by the advanced placement 90.22 advisory council and IBMN, respectively, shall determine the 90.23 amounts of the expenditures each year for examination fees and 90.24 training and support programs for each program. 90.25 (c) Notwithstanding Minnesota Statutes, section 120B.13, 90.26 subdivision 1, $375,000 each year is for teachers to attend 90.27 subject matter summer training programs and follow-up support 90.28 workshops approved by the advanced placement or international 90.29 baccalaureate programs. The amount of the subsidy for each 90.30 teacher attending an advanced placement or international 90.31 baccalaureate summer training program or workshop shall be the 90.32 same. The commissioner shall determine the payment process and 90.33 the amount of the subsidy. 90.34 (d) The commissioner shall pay all examination fees for all 90.35 students of low-income families under Minnesota Statutes, 90.36 section 120B.13, subdivision 3, and to the extent of available 91.1 appropriations shall also pay examination fees for students 91.2 sitting for an advanced placement examination, international 91.3 baccalaureate examination, or both. 91.4 Any balance in the first year does not cancel but is 91.5 available in the second year. 91.6 Subd. 18. [FIRST GRADE PREPAREDNESS.] For first grade 91.7 preparedness grants under Minnesota Statutes, section 124D.081: 91.8 $7,250,000 ..... 2004 91.9 $7,250,000 ..... 2005 91.10 Subd. 19. [YOUTH WORKS PROGRAM.] For funding youth works 91.11 programs under Minnesota Statutes, sections 124D.37 to 124D.45: 91.12 $900,000 ..... 2004 91.13 $900,000 ..... 2005 91.14 (a) $150,000 per year is for training in evaluating early 91.15 literacy skills and teaching reading to preschool children under 91.16 Minnesota Statutes, section 124D.42, subdivision 6, paragraph 91.17 (a), clause (3). 91.18 (b) A grantee organization may provide health and child 91.19 care coverage to the dependents of each participant enrolled in 91.20 a full-time youth works program to the extent such coverage is 91.21 not otherwise available. 91.22 Subd. 20. [STUDENT ORGANIZATIONS.] For student 91.23 organizations: 91.24 $625,000 ..... 2004 91.25 $625,000 ..... 2005 91.26 The allocation for a student organization in fiscal year 91.27 2004 or fiscal year 2005 shall be no less than its fiscal year 91.28 2003 allocation. 91.29 Subd. 21. [DISTANCE EDUCATION.] For distance education 91.30 under Minnesota Statutes, section 124D.095: 91.31 $1,000,000 ..... 2004 91.32 $1,250,000 ..... 2005 91.33 Subd. 22. [COLLABORATIVE URBAN EDUCATOR RECRUITMENT AND 91.34 TRAINING PROGRAMS.] For grants to collaborative urban educator 91.35 recruitment and training programs: 91.36 $528,000 ..... 2004 92.1 $528,000 ..... 2005 92.2 $198,000 each year is for the Southeast Asian teacher 92.3 program at Concordia University, St. Paul; $165,000 each year is 92.4 for the collaborative urban educator program at the University 92.5 of St. Thomas; and $165,000 each year is for the center for 92.6 excellence in urban teaching at Hamline University. Grant 92.7 recipients must collaborate with urban and nonurban school 92.8 districts. 92.9 Any balance in the first year does not cancel but is 92.10 available in the second year. 92.11 Sec. 56. [REPEALER.] 92.12 (a) Minnesota Statutes 2002, sections 122A.64; 122A.65; 92.13 124D.84, subdivision 2; and 124D.89, are repealed. 92.14 (b) Minnesota Statutes 2002, sections 128C.01, subdivision 92.15 5; 128C.02, subdivision 8; and 128C.13, are repealed. 92.16 (c) Laws 1993, chapter 224, article 8, section 20, 92.17 subdivision 2, as amended by Laws 1994, chapter 647, article 8, 92.18 section 29, is repealed. 92.19 ARTICLE 3 92.20 SPECIAL PROGRAMS 92.21 Section 1. Minnesota Statutes 2002, section 121A.41, 92.22 subdivision 10, is amended to read: 92.23 Subd. 10. [SUSPENSION.] "Suspension" means an action by 92.24 the school administration, under rules promulgated by the school 92.25 board, prohibiting a pupil from attending school for a period of 92.26 no more than ten school days. If a suspension is longer than 92.27 five days, the suspending administrator must provide the 92.28 superintendent with a reason for the longer suspension. This 92.29 definition does not apply to dismissal from school for one 92.30 school day or less, except as provided in federal law for a 92.31 student with a disability. Each suspension action may include a 92.32 readmission plan. The readmission plan shall include, where 92.33 appropriate, a provision for implementing alternative 92.34 educational services upon readmission and may not be used to 92.35 extend the current suspension. Consistent with section 125A.09, 92.36 subdivision 3, the readmission plan must not obligate a parent 93.1 to provide a sympathomimetic medication for the parent's child 93.2 as a condition of readmission. The school administration may 93.3 not impose consecutive suspensions against the same pupil for 93.4 the same course of conduct, or incident of misconduct, except 93.5 where the pupil will create an immediate and substantial danger 93.6 to self or to surrounding persons or property, or where the 93.7 district is in the process of initiating an expulsion, in which 93.8 case the school administration may extend the suspension to a 93.9 total of 15 days. In the case of a student with a disability, 93.10 the student's individual education plan team must meet 93.11 immediately but not more than ten school days after the date on 93.12 which the decision to remove the student from the student's 93.13 current education placement is made. The individual education 93.14 plan team and other qualified personnel shall at that meeting: 93.15 conduct a review of the relationship between the child's 93.16 disability and the behavior subject to disciplinary action; and 93.17 determine the appropriateness of the child's education plan. 93.18 The requirements of the individual education plan team 93.19 meeting apply when: 93.20 (1) the parent requests a meeting; 93.21 (2) the student is removed from the student's current 93.22 placement for five or more consecutive days; or 93.23 (3) the student's total days of removal from the student's 93.24 placement during the school year exceed ten cumulative days in a 93.25 school year. The school administration shall implement 93.26 alternative educational services when the suspension exceeds 93.27 five days. A separate administrative conference is required for 93.28 each period of suspension. 93.29 Sec. 2. [124D.452] [DISTRICT REPORT; CAREER AND TECHNICAL 93.30 EDUCATION.] 93.31 Each district and cooperative center must report data to 93.32 the department of education for all career and technical 93.33 education programs as required by the department. 93.34 Sec. 3. Minnesota Statutes 2002, section 124D.454, 93.35 subdivision 1, is amended to read: 93.36 Subdivision 1. [PURPOSE.] The purpose of this section is 94.1 to provide a method to fund transitioncareer and technical 94.2 education programs for children with a disability that are 94.3 components of the student's transition plan. As used in this 94.4 section, the term "children with a disability" shall have the 94.5 meaning ascribed to it in section 125A.02. 94.6 Sec. 4. Minnesota Statutes 2002, section 124D.454, 94.7 subdivision 2, is amended to read: 94.8 Subd. 2. [DEFINITIONS.] For the purposes of this section, 94.9 the definitions in this subdivision apply. 94.10 (a) "Base year" for fiscal year 1996 means fiscal year 1995.94.11 Base year for later fiscal yearsmeans the second fiscal year 94.12 preceding the fiscal year for which aid will be paid. 94.13 (b) "Basic revenue" has the meaning given it in section 94.14 126C.10, subdivision 2. For the purposes of computing basic 94.15 revenue pursuant to this section, each child with a disability 94.16 shall be counted as prescribed in section 126C.05, subdivision 1. 94.17 (c) "Average daily membership" has the meaning given it in 94.18 section 126C.05. 94.19 (d) "Program growth factor" means 1.00 for fiscal year 1998 94.20 and later. 94.21 (e) "Aid percentage factor" means 60 percent for fiscal94.22 year 1996, 70 percent for fiscal year 1997, 80 percent for94.23 fiscal year 1998, 90 percent for fiscal year 1999, and100 94.24 percent for fiscal year 2000 and later. 94.25 (f) "Essential personnel" means a licensed teacher, 94.26 licensed support services staff person, paraprofessional 94.27 providing direct services to students, or licensed personnel 94.28 under subdivision 12, paragraph (c). This definition is not 94.29 intended to change or modify the definition of essential 94.30 employee in chapter 179A. 94.31 Sec. 5. Minnesota Statutes 2002, section 124D.454, 94.32 subdivision 3, is amended to read: 94.33 Subd. 3. [BASE REVENUE.] (a) The transition94.34 program-disabledtransition-disabled program base revenue equals 94.35 the sum of the following amounts computed using base year data: 94.36 (1) 68 percent of the salary of each essential licensed 95.1 person or approved paraprofessional who provides direct 95.2 instructional services to students employed during that fiscal 95.3 year for services rendered in that district's transition program 95.4 for children with a disability; 95.5 (2) 47 percent of the costs of necessary equipment for 95.6 transition programs for children with a disability; 95.7 (3) 47 percent of the costs of necessary travel between 95.8 instructional sites by transition program teachers of children 95.9 with a disability but not including travel to and from local, 95.10 regional, district, state, or national vocationalcareer and 95.11 technical student organization meetings; 95.12 (4) 47 percent of the costs of necessary supplies for 95.13 transition programs for children with a disability but not to 95.14 exceed an average of $47 in any one school year for each child 95.15 with a disability receiving these services; 95.16 (5) for transition programs for children with disabilities 95.17 provided by a contract approved by the commissioner with public, 95.18 private, or voluntary agencies other than a Minnesota school 95.19 district or cooperative center, in place of programs provided by 95.20 the district, 52 percent of the difference between the amount of 95.21 the contract and the basic revenue of the district for that 95.22 pupil for the fraction of the school day the pupil receives 95.23 services under the contract; 95.24 (6) for transition programs for children with disabilities 95.25 provided by a contract approved by the commissioner with public, 95.26 private, or voluntary agencies other than a Minnesota school 95.27 district or cooperative center, that are supplementary to a full 95.28 educational program provided by the school district, 52 percent 95.29 of the amount of the contract; and 95.30 (7) for a contract approved by the commissioner with 95.31 another Minnesota school district or cooperative center for 95.32 vocational evaluation services for children with a disability 95.33 for children that are not yet enrolled in grade 12, 52 percent 95.34 of the amount of the contract. 95.35 (b) If requested by a school district for transition 95.36 programs during the base year for less than the full school 96.1 year, the commissioner may adjust the base revenue to reflect 96.2 the expenditures that would have occurred during the base year 96.3 had the program been operated for the full year. 96.4 Sec. 6. Minnesota Statutes 2002, section 124D.454, 96.5 subdivision 8, is amended to read: 96.6 Subd. 8. [USE OF AID.] The aid provided under this section 96.7 shall be paid only for services rendered or for the costs which 96.8 are incurred according to this section for transition programs 96.9 for children with a disability which are approved by the 96.10 commissioner of children, families, and learningeducation and 96.11 operated in accordance with rules promulgated by the 96.12 commissioner. These rules shall be subject to the restrictions 96.13 provided in section 124D.453,subdivision 612. The procedure 96.14 for application for approval of these programs shall be as 96.15 provided in section 125A.75, subdivisions 4 and 6, and the 96.16 application review process shall be conducted by the office96.17 division of lifework developmentfederal programs in the 96.18 department. 96.19 Sec. 7. Minnesota Statutes 2002, section 124D.454, 96.20 subdivision 10, is amended to read: 96.21 Subd. 10. [EXCLUSION.] A district shall not receive aid 96.22 pursuant to section 124D.453 or125A.76 for salaries, supplies, 96.23 travel or equipment for which the district receives aid pursuant 96.24 to this section. 96.25 Sec. 8. Minnesota Statutes 2002, section 124D.454, is 96.26 amended by adding a subdivision to read: 96.27 Subd. 12. [COMPLIANCE WITH RULES.] Aid must be paid under 96.28 this section only for services rendered or for costs incurred in 96.29 career and technical education programs approved by the 96.30 commissioner and operated in accordance with rules promulgated 96.31 by the commissioner. This aid shall be paid only for services 96.32 rendered and for costs incurred by essential, licensed personnel 96.33 who meet the requirements for licensure pursuant to the rules of 96.34 the Minnesota board of teaching. Licensed personnel means 96.35 persons holding a valid career and technical license issued by 96.36 the commissioner. If an average of five or fewer secondary 97.1 full-time equivalent students are enrolled per teacher in an 97.2 approved postsecondary program at intermediate district No. 287, 97.3 916, or 917, licensed personnel means persons holding a valid 97.4 vocational license issued by the commissioner or the board of 97.5 trustees of the Minnesota state colleges and universities. 97.6 Notwithstanding section 127A.42, the commissioner may modify or 97.7 withdraw the program or aid approval and withhold aid under this 97.8 section without proceeding under section 127A.42 at any time. 97.9 To do so, the commissioner must determine that the program does 97.10 not comply with rules of the department of education or that any 97.11 facts concerning the program or its budget differ from the facts 97.12 in the district's approved application. 97.13 Sec. 9. [125A.091] [ALTERNATIVE DISPUTE RESOLUTION AND DUE 97.14 PROCESS HEARINGS.] 97.15 Subdivision 1. [DISTRICT OBLIGATION.] A school district 97.16 must use the procedures in federal law and state law and rule to 97.17 reach decisions about the identification, evaluation, 97.18 educational placement, manifestation determination, interim 97.19 alternative educational placement, or the provision of a free 97.20 appropriate public education to a child with a disability. 97.21 Subd. 2. [PRIOR WRITTEN NOTICE.] A parent must receive 97.22 prior written notice a reasonable time before the district 97.23 proposes or refuses to initiate or change the identification, 97.24 evaluation, educational placement, or the provision of a free 97.25 appropriate public education to a child with a disability. 97.26 Subd. 3. [CONTENT OF NOTICE.] The notice under subdivision 97.27 2 must: 97.28 (1) describe the action the district proposes or refuses; 97.29 (2) explain why the district proposes or refuses to take 97.30 the action; 97.31 (3) describe any other option the district considered and 97.32 the reason why it rejected the option; 97.33 (4) describe each evaluation procedure, test, record, or 97.34 report the district used as a basis for the proposed or refused 97.35 action; 97.36 (5) describe any other factor affecting the proposal or 98.1 refusal of the district to take the action; 98.2 (6) state that the parent of a child with a disability is 98.3 protected by procedural safeguards and, if this notice is not an 98.4 initial referral for evaluation, how a parent can get a 98.5 description of the procedural safeguards; and 98.6 (7) identify where a parent can get help in understanding 98.7 this law. 98.8 Subd. 4. [UNDERSTANDABLE NOTICE.] (a) The written notice 98.9 under subdivision 2 must be understandable to the general public 98.10 and available in the parent's native language or by another 98.11 communication form, unless it is clearly not feasible to do so. 98.12 (b) If the parent's native language or other communication 98.13 form is not written, the district must take steps to ensure that: 98.14 (1) the notice is translated orally or by other means to 98.15 the parent in the parent's native language or other 98.16 communication form; 98.17 (2) the parent understands the notice; and 98.18 (3) written evidence indicates the requirements in 98.19 subdivision 2 are met. 98.20 Subd. 5. [INITIAL ACTION; PARENT CONSENT.] The district 98.21 must not proceed with the initial evaluation of a child, the 98.22 initial placement of a child in a special education program, or 98.23 the initial provision of special education services for a child 98.24 without the prior written consent of the child's parent. A 98.25 district may not override the written refusal of a parent to 98.26 consent to an initial evaluation or reevaluation. 98.27 Subd. 6. [DISPUTE RESOLUTION PROCESSES; 98.28 GENERALLY.] Parties are encouraged to resolve disputes over the 98.29 identification, evaluation, educational placement, manifestation 98.30 determination, interim alternative educational placement, or the 98.31 provision of a free appropriate public education to a child with 98.32 a disability through conciliation, mediation, facilitated team 98.33 meetings, or other alternative process. All dispute resolution 98.34 options are voluntary on the part of the parent and must not be 98.35 used to deny or delay the right to a due process hearing. All 98.36 dispute resolution processes under this section are provided at 99.1 no cost to the parent. 99.2 Subd. 7. [CONCILIATION CONFERENCE.] A parent must have an 99.3 opportunity to meet with appropriate district staff in at least 99.4 one conciliation conference if the parent objects to any 99.5 proposal of which the parent receives notice under subdivision 2. 99.6 If the parent refuses district efforts to conciliate the 99.7 dispute, the conciliation requirement is satisfied. Following a 99.8 conciliation conference, the district must prepare and provide 99.9 to the parent a conciliation conference memorandum that 99.10 describes the district's final proposed offer of service. This 99.11 memorandum is admissible in evidence in any subsequent 99.12 proceeding. 99.13 Subd. 8. [VOLUNTARY DISPUTE RESOLUTION OPTIONS.] In 99.14 addition to offering at least one conciliation conference, a 99.15 district must inform a parent of other dispute resolution 99.16 processes, including at least mediation and facilitated team 99.17 meetings. The fact that an alternative dispute resolution 99.18 process was used is admissible in evidence at any subsequent 99.19 proceeding. State-provided mediators and team meeting 99.20 facilitators shall not be subpoenaed to testify at a due process 99.21 hearing or civil action under federal special education law nor 99.22 are any records of mediators or state-provided team meeting 99.23 facilitators accessible to the parties. 99.24 Subd. 9. [MEDIATION.] Mediation is a dispute resolution 99.25 process that involves a neutral party provided by the state to 99.26 assist a parent and a district in resolving disputes over the 99.27 identification, evaluation, educational placement, manifestation 99.28 determination, interim alternative educational placement, or the 99.29 provision of a free appropriate public education to a child with 99.30 a disability. A mediation process is available as an informal 99.31 alternative to a due process hearing but must not be used to 99.32 deny or postpone the opportunity of a parent or district to 99.33 obtain a due process hearing. Mediation is voluntary for all 99.34 parties. All mediation discussions are confidential and 99.35 inadmissible in evidence in any subsequent proceeding, unless 99.36 the: 100.1 (1) parties expressly agree otherwise; 100.2 (2) evidence is otherwise available; or 100.3 (3) evidence is offered to prove bias or prejudice of a 100.4 witness. 100.5 Subd. 10. [MEDIATED AGREEMENTS.] Mediated agreements are 100.6 not admissible unless the parties agree otherwise or a party to 100.7 the agreement believes the agreement is not being implemented, 100.8 in which case the aggrieved party may enter the agreement into 100.9 evidence at a due process hearing. The parties may request 100.10 another mediation to resolve a dispute over implementing the 100.11 mediated agreement. After a due process hearing is requested, a 100.12 party may request mediation and the commissioner must provide a 100.13 mediator who conducts a mediation session no later than the 100.14 third business day after the mediation request is made to the 100.15 commissioner. 100.16 Subd. 11. [FACILITATED TEAM MEETING.] A facilitated team 100.17 meeting is an IEP, IFSP, or IIIP team meeting led by an 100.18 impartial state-provided facilitator to promote effective 100.19 communication and assist a team in developing an individualized 100.20 education plan. 100.21 Subd. 12. [IMPARTIAL DUE PROCESS HEARING.] (a) A parent or 100.22 a district is entitled to an impartial due process hearing 100.23 conducted by the state when a dispute arises over the 100.24 identification, evaluation, educational placement, manifestation 100.25 determination, interim alternative educational placement, or the 100.26 provision of a free appropriate public education to a child with 100.27 a disability. The hearing must be held in the district 100.28 responsible for ensuring that a free appropriate public 100.29 education is provided according to state and federal law. The 100.30 proceedings must be recorded and preserved, at state expense, 100.31 pending ultimate disposition of the action. 100.32 (b) The due process hearing must be conducted according to 100.33 the rules of the commissioner and federal law. 100.34 Subd. 13. [HEARING OFFICER QUALIFICATIONS.] The 100.35 commissioner must appoint an individual who is qualified under 100.36 this subdivision to serve as a hearing officer. The hearing 101.1 officer must: 101.2 (1) be knowledgeable and impartial; 101.3 (2) have no personal interest in or specific involvement 101.4 with the student who is a party to the hearing; 101.5 (3) not have been employed as an administrator by the 101.6 district that is a party to the hearing; 101.7 (4) not have been involved in selecting the district 101.8 administrator who is a party to the hearing; 101.9 (5) have no personal, economic, or professional interest in 101.10 the outcome of the hearing other than properly administering 101.11 federal and state laws, rules, and policies; 101.12 (6) have no substantial involvement in developing state or 101.13 local policies or procedures challenged in the hearing; 101.14 (7) not be a current employee or board member of a 101.15 Minnesota public school district, education district, 101.16 intermediate unit or regional education agency, or the 101.17 department if the department is the service provider; and 101.18 (8) not be a current employee or board member of a 101.19 disability advocacy organization or group. 101.20 Subd. 14. [REQUEST FOR HEARING.] A request for a due 101.21 process hearing must: 101.22 (1) be in writing; 101.23 (2) describe the nature of the dispute about providing 101.24 special education services to the student including facts 101.25 relating to the dispute; and 101.26 (3) state, to the extent known, the relief sought. 101.27 Any school district administrator receiving a request for a 101.28 due process hearing must immediately forward the request to the 101.29 commissioner. Within two business days of receiving a request 101.30 for a due process hearing, the commissioner must appoint a 101.31 hearing officer. The commissioner must not deny a request for 101.32 hearing because the request is incomplete. A party may 101.33 disqualify a hearing officer only by affirmatively showing 101.34 prejudice or bias to the commissioner or to the chief 101.35 administrative law judge if the hearing officer is an 101.36 administrative law judge. If a party affirmatively shows 102.1 prejudice against a hearing officer, the commissioner must 102.2 assign another hearing officer to hear the matter. 102.3 Subd. 15. [PREHEARING CONFERENCE.] A prehearing conference 102.4 must be held within five business days of the date the 102.5 commissioner appoints the hearing officer. The hearing officer 102.6 must initiate the prehearing conference which may be conducted 102.7 in person, at a location within the district, or by telephone. 102.8 The hearing officer must create a written verbatim record of the 102.9 prehearing conference which is available to either party upon 102.10 request. At the prehearing conference, the hearing officer must: 102.11 (1) identify the questions that must be answered to resolve 102.12 the dispute and eliminate claims and complaints that are without 102.13 merit; 102.14 (2) set a scheduling order for the hearing and additional 102.15 prehearing activities; 102.16 (3) determine if the hearing can be disposed of without an 102.17 evidentiary hearing and, if so, establish the schedule and 102.18 procedure for doing so; and 102.19 (4) establish the management, control, and location of the 102.20 hearing to ensure its fair, efficient, and effective disposition. 102.21 Subd. 16. [BURDEN OF PROOF.] The burden of proof at a due 102.22 process hearing is on the district to demonstrate, by a 102.23 preponderance of the evidence, that it is complying with the law 102.24 and offered or provided a free appropriate public education to 102.25 the child in the least restrictive environment. If the district 102.26 has not offered or provided a free appropriate public education 102.27 in the least restrictive environment and the parent wants the 102.28 district to pay for a private placement, the burden of proof is 102.29 on the parent to demonstrate, by a preponderance of the 102.30 evidence, that the private placement is appropriate. 102.31 Subd. 17. [ADMISSIBLE EVIDENCE.] The hearing officer may 102.32 admit all evidence that possesses probative value, including 102.33 hearsay, if it is the type of evidence on which reasonable, 102.34 prudent persons are accustomed to rely in conducting their 102.35 serious affairs. The hearing officer must give effect to the 102.36 rules of privilege recognized by law and exclude evidence that 103.1 is incompetent, irrelevant, immaterial, or unduly repetitious. 103.2 Subd. 18. [HEARING OFFICER AUTHORITY.] (a) A hearing 103.3 officer must limit an impartial due process hearing to the time 103.4 sufficient for each party to present its case. 103.5 (b) A hearing officer must establish and maintain control 103.6 and manage the hearing. This authority includes, but is not 103.7 limited to: 103.8 (1) requiring attorneys representing parties at the 103.9 hearing, after notice and an opportunity to be heard, to pay 103.10 court reporting and hearing officer costs, or fines payable to 103.11 the state, for failing to: (i) obey scheduling or prehearing 103.12 orders, (ii) appear, (iii) be prepared, or (iv) participate in 103.13 the hearing process in good faith; 103.14 (2) administering oaths and affirmations; 103.15 (3) issuing subpoenas; 103.16 (4) determining the responsible and providing districts and 103.17 joining those districts, if not already notified, in the 103.18 proceedings; 103.19 (5) making decisions involving identification, evaluation, 103.20 educational placement, manifestation determination, interim 103.21 alternative educational placement, or the provision of a free 103.22 appropriate public education to a child with a disability; and 103.23 (6) ordering an independent educational evaluation of a 103.24 child at district expense. 103.25 Subd. 19. [EXPEDITED DUE PROCESS HEARINGS.] A parent has 103.26 the right to an expedited due process hearing when there is a 103.27 dispute over a manifestation determination or a proposed or 103.28 actual placement in an interim alternative educational setting. 103.29 A district has the right to an expedited due process hearing 103.30 when proposing or seeking to maintain placement in an interim 103.31 alternative educational setting. A hearing officer must hold an 103.32 expedited due process hearing and must issue a decision within 103.33 ten calendar days of the request for a hearing. A hearing 103.34 officer may extend by up to five additional calendar days the 103.35 time for issuing a decision in an expedited due process 103.36 hearing. All policies in this section apply to expedited due 104.1 process hearings to the extent they do not conflict with federal 104.2 law. 104.3 Subd. 20. [HEARING OFFICER'S DECISION; TIME PERIOD.] (a) 104.4 The hearing officer must issue a decision within 45 calendar 104.5 days of the date on which the commissioner receives the request 104.6 for a due process hearing. A hearing officer is encouraged to 104.7 accelerate the time line to 30 days for a child under the age of 104.8 three whose needs change rapidly and who requires quick 104.9 resolution of a dispute. A hearing officer may not extend the 104.10 time beyond the 45-day period unless requested by either party 104.11 for good cause shown on the record. Extensions of time must not 104.12 exceed a total of 30 calendar days unless both parties and the 104.13 hearing officer agree or time is needed to complete an 104.14 independent educational evaluation. Good cause includes, but is 104.15 not limited to, the time required for mediation or other 104.16 settlement discussions, independent educational evaluation, 104.17 complexity and volume of issues, or finding or changing counsel. 104.18 (b) The hearing officer's decision must: 104.19 (1) be in writing; 104.20 (2) state the controlling and material facts upon which the 104.21 decision is made in order to apprise the reader of the basis and 104.22 reason for the decision; and 104.23 (3) be based on local standards, state statute, the rules 104.24 of the commissioner, and federal law. 104.25 Subd. 21. [COMPENSATORY EDUCATIONAL SERVICES.] The hearing 104.26 officer may require the resident or responsible district to 104.27 provide compensatory educational services to the child if the 104.28 hearing officer finds that the district has not offered or made 104.29 available to the child a free appropriate public education in 104.30 the least restrictive environment and the child suffered a loss 104.31 of educational benefit. Such services take the form of direct 104.32 and indirect special education and related services designed to 104.33 address any loss of educational benefit that may have occurred. 104.34 The hearing officer's finding must be based on a present 104.35 determination of whether the child has suffered a loss of 104.36 educational benefit. 105.1 Subd. 22. [CHILD'S EDUCATIONAL PLACEMENT DURING A DUE 105.2 PROCESS HEARING.] (a) Until a due process hearing under this 105.3 section is completed or the district and the parent agree 105.4 otherwise, the child must remain in the child's current 105.5 educational placement and must not be denied initial admission 105.6 to school. 105.7 (b) Until an expedited due process hearing challenging an 105.8 interim alternative educational placement is completed, the 105.9 child must remain in the interim alternative educational setting 105.10 until the decision of the hearing officer or the expiration of 105.11 the 45 days permitted for an interim alternative educational 105.12 setting, whichever occurs first, unless the parent and district 105.13 agree otherwise. 105.14 Subd. 23. [IMPLEMENTATION OF HEARING OFFICER ORDER.] (a) 105.15 That portion of a hearing officer's decision granting relief 105.16 requested by the parent must be implemented upon issuance. 105.17 (b) Except as provided under paragraph (a) or the district 105.18 and parent agree otherwise, following a hearing officer's 105.19 decision granting relief requested by the district, the child 105.20 must remain in the current educational placement until the time 105.21 to request judicial review under subdivision 24 expires or, if 105.22 judicial review is requested, at the time the Minnesota court of 105.23 appeals or the federal district court issues its decision, 105.24 whichever is later. 105.25 Subd. 24. [REVIEW OF HEARING OFFICER DECISIONS.] The 105.26 parent or district may seek review of the hearing officer's 105.27 decision in the Minnesota court of appeals or in the federal 105.28 district court, consistent with federal law. A party must 105.29 appeal to the Minnesota court of appeals within 60 days of 105.30 receiving the hearing officer's decision. 105.31 Subd. 25. [ENFORCEMENT OF ORDERS.] The commissioner must 105.32 monitor final hearing officer decisions and ensure enforcement 105.33 of hearing officer orders. 105.34 Subd. 26. [HEARING OFFICER AND PERSON CONDUCTING 105.35 ALTERNATIVE DISPUTE RESOLUTION ARE STATE EMPLOYEES.] A hearing 105.36 officer or person conducting alternative dispute resolution 106.1 under this section is an employee of the state under section 106.2 3.732 for purposes of section 3.736 only. 106.3 Subd. 27. [HEARING OFFICER TRAINING.] A hearing officer 106.4 must participate in training and follow procedures established 106.5 by the commissioner. 106.6 Subd. 28. [DISTRICT LIABILITY.] A district is not liable 106.7 for harmless technical violations of this section or rules 106.8 implementing this section if the school district can demonstrate 106.9 on a case-by-case basis that the violations did not harm a 106.10 student's educational progress or the parent's right to notice, 106.11 participation, or due process. 106.12 Sec. 10. Minnesota Statutes 2002, section 125A.21, 106.13 subdivision 2, is amended to read: 106.14 Subd. 2. [THIRD PARTY REIMBURSEMENT.] (a) Beginning July 106.15 1, 2000, districts shall seek reimbursement from insurers and 106.16 similar third parties for the cost of services provided by the 106.17 district whenever the services provided by the district are 106.18 otherwise covered by the child's health coverage. Districts 106.19 shall request, but may not require, the child's family to 106.20 provide information about the child's health coverage when a 106.21 child with a disability begins to receive services from the 106.22 district of a type that may be reimbursable, and shall request, 106.23 but may not require, updated information after that as needed. 106.24 (b) For children enrolled in medical assistance under 106.25 chapter 256B or MinnesotaCare under chapter 256L who have no 106.26 other health coverage, a district shall provide an initial 106.27 written notice to the enrolled child's parent or legal 106.28 representative of its intent to seek reimbursement from medical 106.29 assistance or MinnesotaCare for the individual education plan 106.30 health-related services provided by the district. 106.31 (c) The district shall give the parent or legal 106.32 representative annual written notice of: 106.33 (1) the district's intent to seek reimbursement from 106.34 medical assistance or MinnesotaCare for individual education 106.35 plan health-related services provided by the district; 106.36 (2) the right of the parent or legal representative to 107.1 request a copy of all records concerning individual education 107.2 plan health-related services disclosed by the district to any 107.3 third party; and 107.4 (3) the right of the parent or legal representative to 107.5 withdraw consent for disclosure of a child's records at any time 107.6 without consequence. 107.7 The written notice shall be provided as part of the written 107.8 notice required by Code of Federal Regulations, title 34, 107.9 section 300.503300.504. 107.10 (d) In order to access the private health care coverage of 107.11 a child who is covered by private health care coverage in whole 107.12 or in part, a district must: 107.13 (1) obtain annual written informed consent from the parent 107.14 or legal representative, in compliance with subdivision 5; and 107.15 (2) inform the parent or legal representative that a 107.16 refusal to permit the district or state Medicaid agency to 107.17 access their private health care coverage does not relieve the 107.18 district of its responsibility to provide all services necessary 107.19 to provide free and appropriate public education at no cost to 107.20 the parent or legal representative. 107.21 (e) If the commissioner of human services obtains federal 107.22 approval to exempt covered individual education plan 107.23 health-related services from the requirement that private health 107.24 care coverage refuse payment before medical assistance may be 107.25 billed, paragraphs (b), (c), and (d) shall also apply to 107.26 students with a combination of private health care coverage and 107.27 health care coverage through medical assistance or MinnesotaCare. 107.28 (f) In the event that Congress or any federal agency or the 107.29 Minnesota legislature or any state agency establishes lifetime 107.30 limits, limits for any health care services, cost-sharing 107.31 provisions, or otherwise provides that individual education plan 107.32 health-related services impact benefits for persons enrolled in 107.33 medical assistance or MinnesotaCare, the amendments to this 107.34 subdivision adopted in 2002 are repealed on the effective date 107.35 of any federal or state law or regulation that imposes the 107.36 limits. In that event, districts must obtain informed consent 108.1 consistent with this subdivision as it existed prior to the 2002 108.2 amendments and subdivision 5, before seeking reimbursement for 108.3 children enrolled in medical assistance under chapter 256B or 108.4 MinnesotaCare under chapter 256L who have no other health care 108.5 coverage. 108.6 Sec. 11. Minnesota Statutes 2002, section 125A.28, is 108.7 amended to read: 108.8 125A.28 [STATE INTERAGENCY COORDINATING COUNCIL.] 108.9 An interagency coordinating council of at least 17, but not 108.10 more than 25 members is established, in compliance with Public 108.11 Law Number102-119, section 682. The members must be appointed 108.12 by the governor. Council members must elect the council chair. 108.13 The representative of the commissioner may not serve as the 108.14 chair. The council must be composed of at least five parents, 108.15 including persons of color, of children with disabilities under 108.16 age 12, including at least three parents of a child with a 108.17 disability under age seven, five representatives of public or 108.18 private providers of services for children with disabilities 108.19 under age five, including a special education director, county 108.20 social service director, local Head Start director, and a 108.21 community health services or public health nursing 108.22 administrator, one member of the senate, one member of the house 108.23 of representatives, one representative of teacher preparation 108.24 programs in early childhood-special education or other 108.25 preparation programs in early childhood intervention, at least 108.26 one representative of advocacy organizations for children with 108.27 disabilities under age five, one physician who cares for young 108.28 children with special health care needs, one representative each 108.29 from the commissioners of commerce, children, families, and108.30 learningeducation, health, human services, a representative 108.31 from the state agency responsible for child care, and a 108.32 representative from Indian health services or a tribal council. 108.33 Section 15.059, subdivisions 2 to 5, apply to the council. The 108.34 council must meet at least quarterly. 108.35 The council must address methods of implementing the state 108.36 policy of developing and implementing comprehensive, 109.1 coordinated, multidisciplinary interagency programs of early 109.2 intervention services for children with disabilities and their 109.3 families. 109.4 The duties of the council include recommending policies to 109.5 ensure a comprehensive and coordinated system of all state and 109.6 local agency services for children under age five with 109.7 disabilities and their families. The policies must address how 109.8 to incorporate each agency's services into a unified state and 109.9 local system of multidisciplinary assessment practices, 109.10 individual intervention plans, comprehensive systems to find 109.11 children in need of services, methods to improve public 109.12 awareness, and assistance in determining the role of interagency 109.13 early intervention committees. 109.14 By September 1, the council must recommend to the governor 109.15 and the commissioners of children, families, and learning109.16 education, health, human services, commerce, and economic 109.17 security policies for a comprehensive and coordinated system. 109.18 Notwithstanding any other law to the contrary, the state 109.19 interagency coordinating council expires on June 30, 20032005. 109.20 Sec. 12. Minnesota Statutes 2002, section 125A.30, is 109.21 amended to read: 109.22 125A.30 [INTERAGENCY EARLY INTERVENTION COMMITTEES.] 109.23 (a) A school district, group of districts, or special 109.24 education cooperative, in cooperation with the health and human 109.25 service agencies located in the county or counties in which the 109.26 district or cooperative is located, must establish an 109.27 interagency early intervention committee for children with 109.28 disabilities under age five and their families under this 109.29 section, and for children with disabilities ages three to 22 109.30 consistent with the requirements under sections 125A.023 and 109.31 125A.027. Committees must include representatives of local and109.32 regionalhealth, education, and county human service agencies, 109.33 county boards, school boards, early childhood family education 109.34 programs, Head Start, parents of young children with 109.35 disabilities under age 12, child care resource and referral 109.36 agencies, school readiness programs, current service providers, 110.1 and may also include representatives from other private or 110.2 public agencies and school nurses. The committee must elect a 110.3 chair from among its members and must meet at least quarterly. 110.4 (b) The committee must develop and implement interagency 110.5 policies and procedures concerning the following ongoing duties: 110.6 (1) develop public awareness systems designed to inform 110.7 potential recipient families of available programs and services; 110.8 (2) implement interagency child find systems designed to 110.9 actively seek out, identify, and refer infants and young 110.10 children with, or at risk of, disabilities and their families; 110.11 (3) establish and evaluate the identification, referral, 110.12 child and family assessment systems, procedural safeguard 110.13 process, and community learning systems to recommend, where 110.14 necessary, alterations and improvements; 110.15 (4) assure the development of individualized family service 110.16 plans for all eligible infants and toddlers with disabilities 110.17 from birth through age two, and their families, and individual 110.18 education plans and individual service plans when necessary to 110.19 appropriately serve children with disabilities, age three and 110.20 older, and their families and recommend assignment of financial 110.21 responsibilities to the appropriate agencies; 110.22 (5) encourage agencies to develop individual family service 110.23 plans for children with disabilities, age three and older; 110.24 (6) implement a process for assuring that services involve 110.25 cooperating agencies at all steps leading to individualized 110.26 programs; 110.27 (7) facilitate the development of a transitional plan if a 110.28 service provider is not recommended to continue to provide 110.29 services; 110.30 (8) identify the current services and funding being 110.31 provided within the community for children with disabilities 110.32 under age five and their families; 110.33 (9) develop a plan for the allocation and expenditure of 110.34 additional state and federal early intervention funds under 110.35 United States Code, title 20, section 1471 et seq. (Part H, 110.36 Public Law Number102-119) and United States Code, title 20, 111.1 section 631, et seq. (Chapter I, Public Law Number89-313); and 111.2 (10) develop a policy that is consistent with section 111.3 13.05, subdivision 9, and federal law to enable a member of an 111.4 interagency early intervention committee to allow another member 111.5 access to data classified as not public. 111.6 (c) The local committee shall also: 111.7 (1) participate in needs assessments and program planning 111.8 activities conducted by local social service, health and 111.9 education agencies for young children with disabilities and 111.10 their families; and 111.11 (2) review and comment on the early intervention section of 111.12 the total special education system for the district, the county 111.13 social service plan, the section or sections of the community 111.14 health services plan that address needs of and service 111.15 activities targeted to children with special health care 111.16 needs, the section on children with special needs in the county 111.17 child care fund plan, sections in Head Start plans on 111.18 coordinated planning and services for children with special 111.19 needs, any relevant portions of early childhood education plans, 111.20 such as early childhood family education or school readiness, or 111.21 other applicable coordinated school and community plans for 111.22 early childhood programs and services, and the section of the 111.23 maternal and child health special project grants that address 111.24 needs of and service activities targeted to children with 111.25 chronic illness and disabilities. 111.26 Sec. 13. Minnesota Statutes 2002, section 125A.76, 111.27 subdivision 1, is amended to read: 111.28 Subdivision 1. [DEFINITIONS.] For the purposes of this 111.29 section, the definitions in this subdivision apply. 111.30 (a) "Base year" for fiscal year 1998 and later fiscal years 111.31 means the second fiscal year preceding the fiscal year for which 111.32 aid will be paid. 111.33 (b) "Basic revenue" has the meaning given it in section 111.34 126C.10, subdivision 2. For the purposes of computing basic 111.35 revenue pursuant to this section, each child with a disability 111.36 shall be counted as prescribed in section 126C.05, subdivision 1. 112.1 (c) "Essential personnel" means teachers, cultural 112.2 liaisons, related services, and support services staff providing 112.3 direct services to students. Essential personnel may also 112.4 include special education paraprofessionals or clericals 112.5 providing support to teachers and students by preparing 112.6 paperwork and making arrangements related to special education 112.7 compliance requirements, including parent meetings and 112.8 individual education plans. 112.9 (d) "Average daily membership" has the meaning given it in 112.10 section 126C.05. 112.11 (e) "Program growth factor" means 1.08 for fiscal year112.12 2002, and1.046 for fiscal year 2003, and 1.0 for fiscal year 112.13 2004 and later. 112.14 Sec. 14. Minnesota Statutes 2002, section 125A.76, 112.15 subdivision 4, is amended to read: 112.16 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.] The state 112.17 total special education aid for fiscal year 20002004 equals 112.18 $463,000,000$530,642,000. The state total special education 112.19 aid for fiscal year 20012005 equals $474,000,000$529,164,000. 112.20 The state total special education aid for later fiscal years 112.21 equals: 112.22 (1) the state total special education aid for the preceding 112.23 fiscal year; times 112.24 (2) the program growth factor; times 112.25 (3) the ratio of the state total average daily membership 112.26 for the current fiscal year to the state total average daily 112.27 membership for the preceding fiscal year. 112.28 Sec. 15. Minnesota Statutes 2002, section 125A.79, 112.29 subdivision 1, is amended to read: 112.30 Subdivision 1. [DEFINITIONS.] For the purposes of this 112.31 section, the definitions in this subdivision apply. 112.32 (a) "Unreimbursed special education cost" means the sum of 112.33 the following: 112.34 (1) expenditures for teachers' salaries, contracted 112.35 services, supplies, equipment, and transportation services 112.36 eligible for revenue under section 125A.76; plus 113.1 (2) expenditures for tuition bills received under sections 113.2 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 113.3 under section 125A.76, subdivision 2; minus 113.4 (3) revenue for teachers' salaries, contracted services, 113.5 supplies, and equipment under section 125A.76; minus 113.6 (4) tuition receipts under sections 125A.03 to 125A.24 and 113.7 125A.65 for services eligible for revenue under section 125A.76, 113.8 subdivision 2. 113.9 (b) "General revenue" means for fiscal year 1996, the sum 113.10 of the general education revenue according to section 126C.10, 113.11 subdivision 1, as adjusted according to section 127A.47, 113.12 subdivision 7, plus the total referendum revenue according to 113.13 section 126C.17, subdivision 4. For fiscal years 1997 and 113.14 later, "general revenue" means the sum of the general education 113.15 revenue according to section 126C.10, subdivision 1, as adjusted 113.16 according to section 127A.47, subdivisions 7 and 8, plus the 113.17 total referendum revenue minus transportation sparsity revenue 113.18 minus total operating capital revenue. 113.19 (c) "Average daily membership" has the meaning given it in 113.20 section 126C.05. 113.21 (d) "Program growth factor" means 1.044 for fiscal year113.22 2002 and1.02 for fiscal year 2003, and 1.0 for fiscal year 2004 113.23 and later. 113.24 Sec. 16. Minnesota Statutes 2002, section 125A.79, 113.25 subdivision 6, is amended to read: 113.26 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 113.27 The state total special education excess cost aid for fiscal 113.28 year 2004 equals $92,067,000. The state total special education 113.29 aid for fiscal year 2005 equals $91,811,000. The state total 113.30 special education excess cost aid for fiscal year 20022006 and 113.31 later fiscal years equals: 113.32 (1) the state total special education excess cost aid for 113.33 the preceding fiscal year; times 113.34 (2) the program growth factor; times 113.35 (3) the ratio of the state total average daily membership 113.36 for the current fiscal year to the state total average daily 114.1 membership for the preceding fiscal year. 114.2 Sec. 17. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION AID.] 114.3 (a) For fiscal year 2004, a district shall receive special 114.4 education cross-subsidy reduction aid equal to $5,000,000 times 114.5 the ratio of the district's special education excess cost aid 114.6 for the previous fiscal year according to Minnesota Statutes, 114.7 section 125A.79, subdivision 7, to the state total special 114.8 education excess cost aid for the previous fiscal year according 114.9 to Minnesota Statutes, section 125A.79, subdivision 6. 114.10 (b) For fiscal year 2005, a district shall receive special 114.11 education cross-subsidy reduction aid equal to $11,000,000 times 114.12 the ratio of the district's special education excess cost aid 114.13 for the previous fiscal year according to Minnesota Statutes, 114.14 section 125A.79, subdivision 7, to the state total special 114.15 education excess cost aid for the previous fiscal year according 114.16 to Minnesota Statutes, section 125A.79, subdivision 6. 114.17 (c) Special education cross-subsidy reduction aid must be 114.18 used to pay for a district's unfunded special education costs 114.19 that would otherwise be cross-subsidized by a district's general 114.20 education revenue. 114.21 Sec. 18. [IMPACT OF WAIVING SPECIFIC SPECIAL EDUCATION 114.22 REQUIREMENTS THAT EXCEED FEDERAL LAW; THREE-YEAR PILOT PROJECT.] 114.23 Subdivision 1. [ESTABLISHMENT; GOAL.] A three-year pilot 114.24 project is established to permit independent school district No. 114.25 535, Rochester, and up to three other geographically diverse 114.26 school districts or cooperative units under Minnesota Statutes, 114.27 section 125A.11, subdivision 3, selected by the commissioner of 114.28 education to determine the impact, if any, of waiving specific 114.29 special education requirements listed in subdivision 3 on the 114.30 quality and cost-effectiveness of the instructional services and 114.31 educational outcomes provided to eligible students by the 114.32 project participant. 114.33 Subd. 2. [ELIGIBILITY; APPLICATIONS.] The commissioner 114.34 must transmit information about the pilot project and make 114.35 application forms available to interested school districts or 114.36 cooperative units. Applications must be submitted to the 115.1 commissioner by July 1, 2003. An applicant must identify the 115.2 specific special education requirements listed in subdivision 3 115.3 for which the applicant seeks a waiver and indicate how the 115.4 applicant proposes to modify the activities and procedures 115.5 affected by the waiver. The commissioner must approve the 115.6 applications by August 1, 2003. 115.7 Subd. 3. [WAIVERS.] The following state special education 115.8 requirements are waived for the 2003-2004, 2004-2005, and 115.9 2005-2006 school years for independent school district No. 535, 115.10 Rochester, and the other school districts or cooperative units 115.11 participating in this pilot project: 115.12 (1) Minnesota Statutes, section 125A.56, governing 115.13 prereferral interventions; 115.14 (2) Minnesota Statutes, section 125A.08, paragraph (a), 115.15 clause (1), governing transitional services for students when 115.16 reaching age 14 or grade 9, who transition from secondary 115.17 services to postsecondary education and training, employment, 115.18 community participation, recreation and leisure, and home 115.19 living; 115.20 (3) Minnesota Statutes, section 125A.22, governing 115.21 community transition interagency committees; and 115.22 (4) Minnesota Statutes, section 125A.023, governing 115.23 coordinated interagency services but only affecting eligible 115.24 children with disabilities age seven or older. 115.25 Subd. 4. [STUDENTS' RIGHTS.] Eligible students enrolled in 115.26 a district or receiving special instruction and services through 115.27 a cooperative unit that is participating in this pilot project 115.28 remain entitled to the procedural protections provided under 115.29 federal law in any matter that affects the students' 115.30 identification, evaluation, and placement or change in 115.31 placement, or protections provided under state law in dismissal 115.32 proceedings that may result in students' suspension, exclusion, 115.33 or expulsion. Project participants must ensure that students' 115.34 civil rights are protected, provide equal educational 115.35 opportunities, and prohibit discrimination. Failure to comply 115.36 with this subdivision will at least cause a district or 116.1 cooperative unit to become ineligible to participate in the 116.2 pilot project. 116.3 Subd. 5. [TECHNICAL ASSISTANCE.] The commissioner must 116.4 provide project participants, upon request, assistance in 116.5 developing and implementing a valid and uniform procedure under 116.6 subdivision 6 to evaluate the participants' experience. 116.7 Subd. 6. [EVALUATION; REPORT.] All participating school 116.8 districts and cooperative units must evaluate the impact, if 116.9 any, of waiving specific special education requirements listed 116.10 in subdivision 3 on the quality and cost-effectiveness of the 116.11 instructional services and educational outcomes provided to 116.12 eligible students by the project participant. Project 116.13 participants must focus the evaluation on the overall efficacy 116.14 of modifying the activities and procedures affected by the 116.15 waiver. The evaluation must include a mechanism for documenting 116.16 parents' response to the pilot project. Project participants 116.17 must submit to the commissioner a progress report by September 116.18 1, 2004, and a final report by November 1, 2005. The 116.19 commissioner must compile and present the results of the reports 116.20 to the legislature by February 1, 2006, and recommend 116.21 appropriate amendments to the statutory requirements listed in 116.22 subdivision 3. 116.23 [EFFECTIVE DATE.] This section is effective the day 116.24 following final enactment. 116.25 Sec. 19. [DEPARTMENT RESPONSIBILITY.] 116.26 By January 1, 2004, the commissioner of education must 116.27 adopt rules that: 116.28 (1) establish criteria for selecting hearing officers, the 116.29 standards of conduct to which a hearing officer must adhere, and 116.30 a process to evaluate the hearing system; 116.31 (2) ensure that appropriately trained and knowledgeable 116.32 persons conduct due process hearings in compliance with federal 116.33 law; and 116.34 (3) create standards for expedited due process hearings 116.35 under federal law. 116.36 By March 1, 2004, the commissioner of education must 117.1 develop and make available a notice for participants in 117.2 state-provided dispute resolution processes that informs 117.3 participants of their rights concerning dispute resolution. 117.4 Sec. 20. [APPROPRIATIONS.] 117.5 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 117.6 indicated in this section are appropriated from the general fund 117.7 to the department of education for the fiscal years designated. 117.8 Subd. 2. [SPECIAL EDUCATION; REGULAR.] For special 117.9 education aid under Minnesota Statutes, section 125A.75: 117.10 $515,091,000 ..... 2004 117.11 $529,460,000 ..... 2005 117.12 The 2004 appropriation includes $90,577,000 for 2003 and 117.13 $424,514,000 for 2004. 117.14 The 2005 appropriation includes $106,128,000 for 2004 and 117.15 $423,332,000 for 2005. 117.16 Subd. 3. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION 117.17 AID.] For special education cross-subsidy reduction aid under 117.18 section 17: 117.19 $ 5,000,000 ..... 2004 117.20 $11,000,000 ..... 2005 117.21 This is a onetime appropriation. 117.22 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 117.23 under Minnesota Statutes, section 125A.75, subdivision 3, for 117.24 children with disabilities placed in residential facilities 117.25 within the district boundaries for whom no district of residence 117.26 can be determined: 117.27 $2,177,000 ..... 2004 117.28 $2,244,000 ..... 2005 117.29 If the appropriation for either year is insufficient, the 117.30 appropriation for the other year is available. 117.31 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 117.32 teacher travel for home-based services under Minnesota Statutes, 117.33 section 125A.75, subdivision 1: 117.34 $220,000 ..... 2004 117.35 $261,000 ..... 2005 117.36 The 2004 appropriation includes $34,000 for 2003 and 118.1 $186,000 for 2004. 118.2 The 2005 appropriation includes $46,000 for 2004 and 118.3 $215,000 for 2005. 118.4 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 118.5 cost aid under Minnesota Statutes, section 125A.79, subdivision 118.6 7: 118.7 $92,606,000 ..... 2004 118.8 $92,984,000 ..... 2005 118.9 The 2004 appropriation includes $41,754,000 for 2003 and 118.10 $50,852,000 for 2004. 118.11 The 2005 appropriation includes $41,215,000 for 2004 and 118.12 $51,769,000 for 2005. 118.13 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 118.14 paying the costs a district incurs under Minnesota Statutes, 118.15 section 125A.75, subdivision 8: 118.16 $346,000 ..... 2004 118.17 $ 17,000 ..... 2005 118.18 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 118.19 transition programs for children with disabilities under 118.20 Minnesota Statutes, section 124D.454: 118.21 $8,625,000 ..... 2004 118.22 $8,867,000 ..... 2005 118.23 The 2004 appropriation includes $1,516,000 for 2003 and 118.24 $7,109,000 for 2004. 118.25 The 2005 appropriation includes $1,777,000 for 2004 and 118.26 $7,090,000 for 2005. 118.27 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 118.28 reimbursing serving school districts for unreimbursed eligible 118.29 expenditures attributable to children placed in the serving 118.30 school district by court action under Minnesota Statutes, 118.31 section 125A.79, subdivision 4: 118.32 $152,000 ..... 2004 118.33 $160,000 ..... 2005 118.34 Subd. 10. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 118.35 special education out-of-state tuition according to Minnesota 118.36 Statutes, section 125A.79, subdivision 8: 119.1 $250,000 ..... 2004 119.2 $250,000 ..... 2005 119.3 Sec. 21. [REPEALER.] 119.4 Minnesota Statutes 2002, sections 125A.023, subdivision 5; 119.5 125A.09; 125A.47; and 125A.79, subdivision 2, are repealed. 119.6 ARTICLE 4 119.7 FACILITIES AND TECHNOLOGY 119.8 Section 1. Minnesota Statutes 2002, section 123B.51, 119.9 subdivision 3, is amended to read: 119.10 Subd. 3. [LEASE ROOMS OR BUILDINGSREAL PROPERTY.] When 119.11 necessary, the board may lease rooms or buildingsreal property 119.12 for school purposes. 119.13 Sec. 2. Minnesota Statutes 2002, section 123B.51, 119.14 subdivision 4, is amended to read: 119.15 Subd. 4. [LEASE FOR NONSCHOOL PURPOSE.] (a) The board may 119.16 lease to any person, business, or organization a schoolhouse119.17 real property that is not needed for school purposes, or part of 119.18 a schoolhousethe property that is not needed for school 119.19 purposes if the board determines that leasing part of a119.20 schoolhousethe property does not interfere with the educational 119.21 programs taking place in the rest of the buildingon the 119.22 property. The board may charge and collect reasonable 119.23 consideration for the lease and may determine the terms and 119.24 conditions of the lease. 119.25 (b) In districts with outstanding bonds, the net proceeds 119.26 of the lease must be first deposited in the debt retirement fund 119.27 of the district in an amount sufficient to meet when due that 119.28 percentage of the principal and interest payments for 119.29 outstanding bonds that is ascribable to the payment of expenses 119.30 necessary and incidental to the construction or purchase of the 119.31 particular building or property that is leased. Any remaining 119.32 net proceeds in these districts may be deposited in either the 119.33 debt redemption fund or operating capital expenditure119.34 fundaccount. All net proceeds of the lease in districts 119.35 without outstanding bonds shall be deposited in the operating 119.36 capital expenditure fundaccount of the district. 120.1 (c) The board may make capital improvements , including120.2 fixtures, to a schoolhouse or a portion thereofto the real 120.3 property, not exceeding in cost the replacement value of 120.4 the schoolhouseproperty, to facilitate its rental, and the 120.5 lease of anthe improved schoolhouseproperty, or part of it, 120.6 shall provide for rentals which will recover the cost of the 120.7 improvements over the initial term of the lease. 120.8 Notwithstanding paragraph (b), the portion of the rentals 120.9 representing the cost of the improvements shall be deposited in 120.10 the operating capital expenditure fundaccount of the district 120.11 and the balance of the rentals shall be used as provided in 120.12 paragraph (b). 120.13 Sec. 3. Minnesota Statutes 2002, section 123B.52, is 120.14 amended by adding a subdivision to read: 120.15 Subd. 1a. [CONSTRUCTION CONTRACTS.] A project labor 120.16 agreement is a hiring agreement that establishes wages, uniform 120.17 work schedules, and rules for dispute resolution to manage 120.18 construction projects that generally require, among other 120.19 things, payment of union dues or fees to a labor organization or 120.20 membership in or affiliation with a labor organization. A 120.21 school board must adopt at a public meeting a written resolution 120.22 authorizing a project labor agreement to construct or repair a 120.23 facility through a contract or bid. The board must publish in 120.24 the official newspaper of the district notice of the meeting at 120.25 least 30 days in advance. 120.26 Sec. 4. Minnesota Statutes 2002, section 123B.53, 120.27 subdivision 4, is amended to read: 120.28 Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 120.29 service equalization revenue of a district equals the sum of the 120.30 first tier debt service equalization revenue and the second tier 120.31 debt service equalization revenue. 120.32 (b) The first tier debt service equalization revenue of a 120.33 district equals the greater of zero or the eligible debt service 120.34 revenue minus the amount raised by a levy of 15 percent times 120.35 the adjusted net tax capacity of the district minus the second 120.36 tier debt service equalization revenue of the district. 121.1 (c) The second tier debt service equalization revenue of a 121.2 district equals the greater of zero or the eligible debt service 121.3 revenue, excluding alternative facilities levies under section 121.4 123B.59, subdivision 5, minus the amount raised by a levy of 25 121.5 percent times the adjusted net tax capacity of the district. 121.6 [EFFECTIVE DATE.] This section is effective for revenue for 121.7 fiscal year 2005. 121.8 Sec. 5. Minnesota Statutes 2002, section 123B.57, 121.9 subdivision 1, is amended to read: 121.10 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] (a) To receive 121.11 health and safety revenue for any fiscal year a district must 121.12 submit to the commissioner an application for aid and levy by 121.13 the date determined by the commissioner. The application may be 121.14 for hazardous substance removal, fire and life safety code 121.15 repairs, labor and industry regulated facility and equipment 121.16 violations, and health, safety, and environmental management, 121.17 including indoor air quality management. The application must 121.18 include a health and safety program adopted by the school 121.19 district board. The program must include the estimated cost, 121.20 per building, of the program by fiscal year. Upon approval 121.21 through the adoption of a resolution by each of an intermediate 121.22 district's member school district boards and the approval of the 121.23 department of children, families, and learningeducation, a 121.24 school district may include its proportionate share of the costs 121.25 of health and safety projects for an intermediate district in 121.26 its application. 121.27 (b) Health and safety projects with an estimated cost of 121.28 $500,000 or more per site, approved after February 1, 2003, are 121.29 not eligible for health and safety revenue. Health and safety 121.30 projects with an estimated cost of $500,000 or more per site, 121.31 approved after February 1, 2003, that meet all other 121.32 requirements for health and safety funding, are eligible for 121.33 alternative facilities bonding and levy revenue according to 121.34 section 123B.59. A school board shall not separate portions of 121.35 a single project into components to qualify for health and 121.36 safety revenue, and shall not combine unrelated projects into a 122.1 single project to qualify for alternative facilities bonding and 122.2 levy revenue. 122.3 [EFFECTIVE DATE.] This section is effective the day 122.4 following final enactment and applies to projects approved after 122.5 February 1, 2003, for taxes payable in 2004 and later. 122.6 Sec. 6. Minnesota Statutes 2002, section 123B.57, 122.7 subdivision 4, is amended to read: 122.8 Subd. 4. [HEALTH AND SAFETY LEVY.] To receive health and 122.9 safety revenue, a district may levy an amount equal to the 122.10 district's health and safety revenue as defined in subdivision 3 122.11 multiplied by the lesser of one, or the ratio of the quotient 122.12 derived by dividing the adjusted net tax capacity of the 122.13 district for the year preceding the year the levy is certified 122.14 by the adjusted marginal cost pupil units in the district for 122.15 the school year to which the levy is attributable, 122.16 to $3,956$2,935. 122.17 Sec. 7. Minnesota Statutes 2002, section 123B.57, 122.18 subdivision 6, is amended to read: 122.19 Subd. 6. [USES OF HEALTH AND SAFETY REVENUE.] (a) Health 122.20 and safety revenue may be used only for approved expenditures 122.21 necessary to correct fire and life safety hazards, life safety122.22 hazards,or for the removal or encapsulation of asbestos from 122.23 school buildings or property owned or being acquired by the 122.24 district, asbestos-related repairs, cleanup and disposal of 122.25 polychlorinated biphenyls found in school buildings or property 122.26 owned or being acquired by the district, or the cleanup, 122.27 removal, disposal, and repairs related to storing heating fuel 122.28 or transportation fuels such as alcohol, gasoline, fuel oil, and 122.29 special fuel, as defined in section 296A.01, labor and122.30 industryMinnesota occupational safety and health administration 122.31 regulated facility and equipment hazards, indoor air quality 122.32 mold abatement, upgrades or replacement of mechanical 122.33 ventilation systems to meet American Society of Heating, 122.34 Refrigerating and Air Conditioning Engineers standards and state 122.35 mechanical code, department of health food code and swimming 122.36 pool hazards excluding depth correction, and health, safety, and 123.1 environmental management. Health and safety revenue must not be 123.2 used to finance a lease purchase agreement, installment purchase 123.3 agreement, or other deferred payments agreement. Health and 123.4 safety revenue must not be used for the construction of new 123.5 facilities or the purchase of portable classrooms, for interest 123.6 or other financing expenses, or for energy efficiency projects 123.7 under section 123B.65. The revenue may not be used for a 123.8 building or property or part of a building or property used for 123.9 post-secondary instruction or administration or for a purpose 123.10 unrelated to elementary and secondary education. 123.11 (b) Notwithstanding paragraph (a), health and safety 123.12 revenue must not be used for replacement of building materials 123.13 or facilities including roof, walls, windows, internal fixtures 123.14 and flooring, nonhealth and safety costs associated with 123.15 demolition of facilities, structural repair or replacement of 123.16 facilities due to unsafe conditions, violence prevention and 123.17 facility security, ergonomics, building and heating, ventilating 123.18 and air conditioning supplies, maintenance, cleaning, testing, 123.19 and calibration activities. All assessments, investigations, 123.20 inventories, and support equipment not leading to the 123.21 engineering or construction of a project shall be included in 123.22 the health, safety, and environmental management costs in 123.23 subdivision 8, paragraph (a). 123.24 [EFFECTIVE DATE.] This section is effective the day 123.25 following final enactment and applies to projects approved after 123.26 February 1, 2003, for taxes payable in 2004 and later. 123.27 Sec. 8. Minnesota Statutes 2002, section 123B.59, 123.28 subdivision 1, is amended to read: 123.29 Subdivision 1. [TO QUALIFY.] (a) An independent or special 123.30 school district qualifies to participate in the alternative 123.31 facilities bonding and levy program if the district has: 123.32 (1) more than 66 students per grade; 123.33 (2) over 1,850,000 square feet of space and the average age 123.34 of building space is 15 years or older or over 1,500,000 square 123.35 feet and the average age of building space is 35 years or older; 123.36 (3) insufficient funds from projected health and safety 124.1 revenue and capital facilities revenue to meet the requirements 124.2 for deferred maintenance, to make accessibility improvements, or 124.3 to make fire, safety, or health repairs; and 124.4 (4) a ten-year facility plan approved by the commissioner 124.5 according to subdivision 2. 124.6 (b) An independent or special school district not eligible 124.7 to participate in the alternative facilities bonding and levy 124.8 program under paragraph (a) qualifies for limited participation 124.9 in the program if the district has: 124.10 (1) one or more health and safety projects with an 124.11 estimated cost of $500,000 or more per site that would qualify 124.12 for health and safety revenue except for the project size 124.13 limitation in section 123B.57, subdivision 1, paragraph (b); and 124.14 (2) insufficient funds from capital facilities revenue to 124.15 fund those projects. 124.16 [EFFECTIVE DATE.] This section is effective for revenue for 124.17 fiscal year 2005. 124.18 Sec. 9. Minnesota Statutes 2002, section 123B.59, 124.19 subdivision 2, is amended to read: 124.20 Subd. 2. [ TEN-YEARFACILITY PLAN.] (a) A district 124.21 qualifying districtunder subdivision 1, paragraph (a), must 124.22 have a ten-year facility plan approved by the commissioner that 124.23 includes an inventory of projects and costs that would be 124.24 eligible for: 124.25 (1) health and safety revenue, without restriction as to 124.26 project size; 124.27 (2) disabled access levy; and 124.28 (3) deferred capital expenditures and maintenance projects 124.29 necessary to prevent further erosion of facilities. 124.30 (b) A district qualifying under subdivision 1, paragraph 124.31 (b), must have a five-year plan approved by the commissioner 124.32 that includes an inventory of projects and costs for health and 124.33 safety projects with an estimated cost of $500,000 or more per 124.34 site that would qualify for health and safety revenue except for 124.35 the project size limitation in section 123B.57, subdivision 1, 124.36 paragraph (b). 125.1 (c) The school district must: 125.2 (1) annually update the planplans; 125.3 (2) biennially submit a facility maintenance plan; and 125.4 (3) indicate whether the district will issue bonds to 125.5 finance the plan or levy for the costs. 125.6 [EFFECTIVE DATE.] This section is effective for revenue for 125.7 fiscal year 2005. 125.8 Sec. 10. Minnesota Statutes 2002, section 123B.59, 125.9 subdivision 3, is amended to read: 125.10 Subd. 3. [BOND AUTHORIZATION.] (a) A school district , upon125.11 approval of its board and the commissioner,may issue general 125.12 obligation bonds under this section to finance approved125.13 facilities plans approved by its board and the commissioner. 125.14 Chapter 475, except sections 475.58 and 475.59, must be complied 125.15 with. The district may levy under subdivision 5 for the debt 125.16 service revenue. The authority to issue bonds under this 125.17 section is in addition to any bonding authority authorized by 125.18 this chapter, or other law. The amount of bonding authority 125.19 authorized under this section must be disregarded in calculating 125.20 the bonding or net debt limits of this chapter, or any other law 125.21 other than section 475.53, subdivision 4. 125.22 (b) Before a district issues bonds under this subdivision, 125.23 it must publish notice of the intended projects, the amount of 125.24 the bond issue, and the total amount of district indebtedness. 125.25 [EFFECTIVE DATE.] This section is effective the day 125.26 following final enactment and applies to bonds issued after 125.27 April 15, 2003, for taxes payable in 2004 and later. 125.28 Sec. 11. Minnesota Statutes 2002, section 123B.59, is 125.29 amended by adding a subdivision to read: 125.30 Subd. 3a. [LEVY AUTHORIZATION.] (a) A school district may 125.31 levy under this section to finance the portion of facilities 125.32 plans approved by its board and the commissioner that are not 125.33 financed through bond issues according to subdivision 3. 125.34 (b) Before a district levies under this subdivision, it 125.35 must publish notice of the intended projects, including the 125.36 total estimated project cost. 126.1 [EFFECTIVE DATE.] This section is effective the day 126.2 following final enactment and applies to levies for taxes 126.3 payable in 2004 and later. 126.4 Sec. 12. Minnesota Statutes 2002, section 123B.59, 126.5 subdivision 5, is amended to read: 126.6 Subd. 5. [LEVY AUTHORIZED.] A district , after local board126.7 approval,may levy for costs related to an approved facility 126.8 plan as follows: 126.9 (a) if the district has indicated to the commissioner that 126.10 bonds will be issued, the district may levy for the principal 126.11 and interest payments on outstanding bonds issued according to 126.12 subdivision 3 after reduction for any alternative facilities aid126.13 receivable under subdivision 6; or 126.14 (b) if the district has indicated to the commissioner that 126.15 the plan will be funded through levy, the district may levy 126.16 according to the schedule approved in the plan after reduction126.17 for any alternative facilities aid receivable undersubdivision 126.18 63a. 126.19 [EFFECTIVE DATE.] This section is effective for taxes 126.20 payable in 2004. 126.21 Sec. 13. Minnesota Statutes 2002, section 123B.63, 126.22 subdivision 1, is amended to read: 126.23 Subdivision 1. [CREATION OF A DOWN PAYMENTCAPITAL PROJECT 126.24 REFERENDUM ACCOUNT.] A district may create a down payment126.25 capital project referendum account as a separate account in 126.26 its general fund or its building construction fund. All 126.27 proceeds from the down paymentcapital project levy must be 126.28 deposited in the capital expenditure fund and transferred to126.29 this accountproject referendum account in its general fund. 126.30 The portion of the proceeds to be used for building construction 126.31 must be transferred to the capital project referendum account in 126.32 its building construction fund. Interest income attributable to 126.33 the down paymentcapital project referendum account must be 126.34 credited to the account. 126.35 Sec. 14. Minnesota Statutes 2002, section 123B.63, 126.36 subdivision 2, is amended to read: 127.1 Subd. 2. [USES OF THE ACCOUNT.] Money in the down payment127.2 capital project referendum account must be used as a down127.3 paymentfor the futurecosts of acquisition and betterment for a 127.4 project that has been reviewed under section 123B.71 and has 127.5 been approved according to subdivision 3. 127.6 Sec. 15. Minnesota Statutes 2002, section 123B.63, 127.7 subdivision 3, is amended to read: 127.8 Subd. 3. [ FACILITIES DOWN PAYMENTCAPITAL PROJECT LEVY 127.9 REFERENDUM.] A district may levy the local tax rate approved by 127.10 a majority of the electors voting on the question to provide 127.11 funds for a down paymentfor an approved project. The election 127.12 must take place no more than five years before the estimated 127.13 date of commencement of the project. The referendum must be 127.14 held on a date set by the board. A referendum for a project not 127.15 receiving a positive review and comment by the commissioner 127.16 under section 123B.71 must be approved by at least 60 percent of 127.17 the voters at the election. The referendum may be called by the 127.18 school board and may be held: 127.19 (1) separately, before an election for the issuance of 127.20 obligations for the project under chapter 475; or 127.21 (2) in conjunction with an election for the issuance of 127.22 obligations for the project under chapter 475; or 127.23 (3) notwithstanding section 475.59, as a conjunctive 127.24 question authorizing both the down paymentcapital project levy 127.25 and the issuance of obligations for the project under chapter 127.26 475. Any obligations authorized for a project may be issued 127.27 within five years of the date of the election. 127.28 The ballot must provide a general description of the 127.29 proposed project, state the estimated total cost of the project, 127.30 state whether the project has received a positive or negative 127.31 review and comment from the commissioner, state the maximum 127.32 amount of the down paymentcapital project levy as a percentage 127.33 of net tax capacity, state the amount that will be raised by 127.34 that local tax rate in the first year it is to be levied, and 127.35 state the maximum number of years that the levy authorization 127.36 will apply. 128.1 The ballot must contain a textual portion with the 128.2 information required in this section and a question stating 128.3 substantially the following: 128.4 "Shall the down paymentcapital project levy proposed by 128.5 the board of .......... School District No. .......... be 128.6 approved?" 128.7 If approved, the amount provided by the approved local tax 128.8 rate applied to the net tax capacity for the year preceding the 128.9 year the levy is certified may be certified for the number of 128.10 years approved. 128.11 In the event a conjunctive question proposes to authorize 128.12 both the down paymentcapital project levy and the issuance of 128.13 obligations for the project, appropriate language authorizing 128.14 the issuance of obligations must also be included in the 128.15 question. 128.16 The district must notify the commissioner of the results of 128.17 the referendum. 128.18 Sec. 16. Minnesota Statutes 2002, section 123B.63, 128.19 subdivision 4, is amended to read: 128.20 Subd. 4. [EXCESS BUILDING CONSTRUCTION FUNDLEVY 128.21 PROCEEDS.] Any funds remaining in the down paymentcapital 128.22 project referendum account that are not applied to the payment 128.23 of the costs of the approved project before its final completion 128.24 must be transferred to the district's debt redemption fund. 128.25 Sec. 17. Minnesota Statutes 2002, section 126C.40, 128.26 subdivision 1, is amended to read: 128.27 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 128.28 independent or a special school district or a group of 128.29 independent or special school districts finds it economically 128.30 advantageous to rent or lease a building or land for any 128.31 instructional purposes or for school storage or furniture 128.32 repair, and it determines that the operating capital revenue 128.33 authorized under section 126C.10, subdivision 13, is 128.34 insufficient for this purpose, it may apply to the commissioner 128.35 for permission to make an additional capital expenditure levy 128.36 for this purpose. An application for permission to levy under 129.1 this subdivision must contain financial justification for the 129.2 proposed levy, the terms and conditions of the proposed lease, 129.3 and a description of the space to be leased and its proposed use. 129.4 (b) The criteria for approval of applications to levy under 129.5 this subdivision must include: the reasonableness of the price, 129.6 the appropriateness of the space to the proposed activity, the 129.7 feasibility of transporting pupils to the leased building or 129.8 land, conformity of the lease to the laws and rules of the state 129.9 of Minnesota, and the appropriateness of the proposed lease to 129.10 the space needs and the financial condition of the district. 129.11 The commissioner must not authorize a levy under this 129.12 subdivision in an amount greater than 90 percent of the cost to 129.13 the district of renting or leasing a building or land for 129.14 approved purposes. The proceeds of this levy must not be used 129.15 for custodial or other maintenance services. A district may not 129.16 levy under this subdivision for the purpose of leasing or 129.17 renting a district-owned building or site to itself. 129.18 (c) For agreements finalized after July 1, 1997, a district 129.19 may not levy under this subdivision for the purpose of leasing: 129.20 (1) a newly constructed building used primarily for regular 129.21 kindergarten, elementary, or secondary instruction; or (2) a 129.22 newly constructed building addition or additions used primarily 129.23 for regular kindergarten, elementary, or secondary instruction 129.24 that contains more than 20 percent of the square footage of the 129.25 previously existing building. 129.26 (d) Notwithstanding paragraph (b), a district may levy 129.27 under this subdivision for the purpose of leasing or renting a 129.28 district-owned building or site to itself only if the amount is 129.29 needed by the district to make payments required by a lease 129.30 purchase agreement, installment purchase agreement, or other 129.31 deferred payments agreement authorized by law, and the levy 129.32 meets the requirements of paragraph (c). A levy authorized for 129.33 a district by the commissioner under this paragraph may be in 129.34 the amount needed by the district to make payments required by a 129.35 lease purchase agreement, installment purchase agreement, or 129.36 other deferred payments agreement authorized by law, provided 130.1 that any agreement include a provision giving the school 130.2 districts the right to terminate the agreement annually without 130.3 penalty. 130.4 (e) The total levy under this subdivision for a district 130.5 for any year must not exceed $100$90 times the resident pupil 130.6 units for the fiscal year to which the levy is attributable. 130.7 (f) For agreements for which a review and comment have been 130.8 submitted to the department of children, families, and130.9 learningeducation after April 1, 1998, the term "instructional 130.10 purpose" as used in this subdivision excludes expenditures on 130.11 stadiums. 130.12 (g) The commissioner of children, families, and130.13 learningeducation may authorize a school district to exceed the 130.14 limit in paragraph (e) if the school district petitions the 130.15 commissioner for approval. The commissioner shall grant 130.16 approval to a school district to exceed the limit in paragraph 130.17 (e) for not more than five years if the district meets the 130.18 following criteria: 130.19 (1) the school district has been experiencing pupil 130.20 enrollment growth in the preceding five years; 130.21 (2) the purpose of the increased levy is in the long-term 130.22 public interest; 130.23 (3) the purpose of the increased levy promotes colocation 130.24 of government services; and 130.25 (4) the purpose of the increased levy is in the long-term 130.26 interest of the district by avoiding over construction of school 130.27 facilities. 130.28 (h) A school district that is a member of an intermediate 130.29 school district may include in its authority under this 130.30 section 90 percent of the costs associated with leases of 130.31 administrative and classroom space for intermediate school 130.32 district programs. This authority must not exceed $25$22.50 130.33 times the adjusted marginal cost pupil units of the member 130.34 districts. This authority is in addition to any other authority 130.35 authorized under this section. 130.36 (i) In addition to the allowable capital levies in 131.1 paragraph (a), a district that is a member of the "Technology 131.2 and Information Education Systems" data processing joint board, 131.3 that finds it economically advantageous to enter into a lease 131.4 purchase agreement for a building for a group of school 131.5 districts or special school districts for staff development 131.6 purposes, may levy for its portion of lease costs attributed to 131.7 the district within the total levy limit in paragraph (e). 131.8 [EFFECTIVE DATE.] This section is effective for taxes 131.9 payable in 2004. 131.10 Sec. 18. Minnesota Statutes 2002, section 126C.63, 131.11 subdivision 5, is amended to read: 131.12 Subd. 5. [LEVY.] "Levy" means a district's net debt 131.13 service levy after the reduction of debt service equalization 131.14 aid under section 123B.53, subdivision 6. For taxes payable in 131.15 19942003 and later, each district's maximum effort debt service 131.16 levy for purposes of subdivision 8, must be reduced by an equal 131.17 number of percentage points if the commissioner of finance 131.18 determines that the levy reduction will not result in 131.19 a statewide property taxpayment from the general fund in the 131.20 state treasury according to section 16A.641, as would be 131.21 required under Minnesota Statutes 1992, section 124.46126C.72, 131.22 subdivision 3. A district's levy that is adjusted under this 131.23 section must not be reduced below 22.330.1 percent of the 131.24 district's adjusted net tax capacity. 131.25 Sec. 19. Minnesota Statutes 2002, section 126C.63, 131.26 subdivision 8, is amended to read: 131.27 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 131.28 effort debt service levy" means the lesser of: 131.29 (1) a levy in whichever of the following amounts is 131.30 applicable: 131.31 (a)(i) in any district receiving a debt service loan for a 131.32 debt service levy payable in 2002 and thereafter, or granted a 131.33 capital loan after January 1, 20012002, a levy in total dollar 131.34 amount computed at a rate of 3040 percent of adjusted net tax 131.35 capacity for taxes payable in 2002 and thereafter; 131.36 (b)(ii) in any district receiving a debt service loan for 132.1 a debt service levy payable in 1991 and thereafter2001 or 132.2 earlier, or granted a capital loan afterbefore January 1132.3 2, 19902001, a levy in a total dollar amount computed at a rate 132.4 of 2432 percent of adjusted net tax capacity for taxes payable 132.5 in 19912002 and thereafter; 132.6 (c) in any district granted a debt service loan after July132.7 31, 1981, or granted a capital loan which is approved after July132.8 31, 1981, a levy in a total dollar amount computed as a tax rate132.9 of 21.92 percent on the adjusted net tax capacity for taxes132.10 payable in 1991 and thereafter;or 132.11 (2) a levy in any district for which a capital loan was 132.12 approved prior to August 1, 1981, a levy in a total dollar 132.13 amount equal to the sum of the amount of the required debt 132.14 service levy and an amount which when levied annually will in 132.15 the opinion of the commissioner be sufficient to retire the 132.16 remaining interest and principal on any outstanding loans from 132.17 the state within 30 years of the original date when the capital 132.18 loan was granted. 132.19 (b) The board in any district affected by the provisions of 132.20 paragraph (a), clause (2), may elect instead to determine the 132.21 amount of its levy according to the provisions of paragraph (a), 132.22 clause (1). If a district's capital loan is not paid within 30 132.23 years because it elects to determine the amount of its levy 132.24 according to the provisions of paragraph (a), clause (2), the 132.25 liability of the district for the amount of the difference 132.26 between the amount it levied under paragraph (a), clause (2), 132.27 and the amount it would have levied under paragraph (a), clause 132.28 (1), and for interest on the amount of that difference, must not 132.29 be satisfied and discharged pursuant to Minnesota Statutes 1988, 132.30 or an earlier edition of Minnesota Statutes if applicable, 132.31 section 124.43, subdivision 4. 132.32 Sec. 20. Minnesota Statutes 2002, section 126C.69, 132.33 subdivision 2, is amended to read: 132.34 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 132.35 1999, a district is not eligible for a capital loan unless the 132.36 district's estimated net debt tax rate as computed by the 133.1 commissioner after debt service equalization aid would be more 133.2 than 3040 percent of adjusted net tax capacity. The estimate 133.3 must assume a 20-year maturity schedule for new debt. 133.4 Sec. 21. Minnesota Statutes 2002, section 126C.69, 133.5 subdivision 9, is amended to read: 133.6 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 133.7 recommended for approval for a district exceeding an amount 133.8 computed as follows: 133.9 (1) the amount requested by the district under subdivision 133.10 6; 133.11 (2) plus the aggregate principal amount of general 133.12 obligation bonds of the district outstanding on June 30 of the 133.13 year following the year the application was received, not 133.14 exceeding the limitation on net debt of the district in section 133.15 475.53, subdivision 4, or 450607 percent of its adjusted net 133.16 tax capacity as most recently determined, whichever is less; 133.17 (3) less the maximum net debt permissible for the district 133.18 on December 1 of the year the application is received, under the 133.19 limitation in section 475.53, subdivision 4, or 450607 percent 133.20 of its adjusted net tax capacity as most recently determined, 133.21 whichever is less; 133.22 (4) less any amount by which the amount voted exceeds the 133.23 total cost of the facilities for which the loan is granted. 133.24 (b) The loan may be approved in an amount computed as 133.25 provided in paragraph (a), clauses (1) to (3), subject to later 133.26 reduction according to paragraph (a), clause (4). 133.27 Sec. 22. Minnesota Statutes 2002, section 475.61, 133.28 subdivision 1, is amended to read: 133.29 Subdivision 1. [DEBT SERVICE RESOLUTION.] The governing 133.30 body of any municipality issuing general obligations shall, 133.31 prior to delivery of the obligations, levy by resolution a 133.32 direct general ad valorem tax upon all taxable property in the 133.33 municipality to be spread upon the tax rolls for each year of 133.34 the term of the obligations. The tax levies for all years for 133.35 municipalities other than school districts shall be specified 133.36 and such that if collected in full they, together with estimated 134.1 collections of special assessments and other revenues pledged 134.2 for the payment of said obligations, will produce at least five 134.3 percent in excess of the amount needed to meet when due the 134.4 principal and interest payments on the obligations. The tax 134.5 levies for school districts shall be specified and such that if 134.6 collected in full they, together with estimated collection of 134.7 other revenues pledged for the payment of the obligations, will 134.8 produce betweenfive and sixpercent in excess of the amount 134.9 needed to meet when due the principal and interest payments on 134.10 the obligations, rounded up to the nearest dollar; except that, 134.11 with the permission of the commissioner of children, families,134.12 and learningeducation, a school board may specify a tax levy in 134.13 a higher amount if necessary either to meet an anticipated tax 134.14 delinquency or for cash flow needs to meet the required payments 134.15 from the debt redemption fund. Such resolution shall 134.16 irrevocably appropriate the taxes so levied and any special 134.17 assessments or other revenues so pledged to the municipality's 134.18 debt service fund or a special debt service fund or account 134.19 created for the payment of one or more issues of obligations. 134.20 The governing body may, in its discretion, at any time after the 134.21 obligations have been authorized, adopt a resolution levying 134.22 only a portion of such taxes, to be filed, assessed, extended, 134.23 collected, and remitted as hereinafter provided, and the amount 134.24 or amounts therein levied shall be credited against the tax 134.25 required to be levied prior to delivery of the obligations. 134.26 Sec. 23. Minnesota Statutes 2002, section 475.61, 134.27 subdivision 3, is amended to read: 134.28 Subd. 3. [IRREVOCABILITY.] (a) Tax levies so made and 134.29 filed shall be irrevocable, except as provided in this 134.30 subdivision. 134.31 (b) For purposes of this subdivision, "excess debt 134.32 redemption fund balance" means the greater of zero or the 134.33 balance in the district's debt redemption fund as of June 30 of 134.34 the fiscal year ending in the year before the year the levy is 134.35 certified, minus any debt redemption fund balance attributable 134.36 to refunding of existing bonds, minus the amount of the levy 135.1 reduction for the current year and the prior year under 135.2 paragraphs (e) and (f), minus five percent of the district's 135.3 required debt service levy for the next year. 135.4 (c) By July 15 each year, a district shall report to the 135.5 commissioner of children, families, and learningeducation the 135.6 amount of the districts' debt redemption fund balance as of June 135.7 30 of the prior year attributable to refunding of existing bonds. 135.8 (d) By August 15 each year, the commissioner shall 135.9 determine the excess debt redemption fund balance for each 135.10 school district, and shall certify the amount of the excess 135.11 balance to the school district superintendent. 135.12 (e) In each year when a district has an excess debt 135.13 redemption fund balance, the commissioner shall report the135.14 amount of the excess to the county auditor and the auditor shall135.15 reduce the tax levy otherwise to be included in the rolls next 135.16 prepared by the amount certified. 135.17 (f) The school board may, with the approval of the 135.18 commissioner, retain all or part of the excess balance if it is 135.19 necessary to ensure the prompt and full payment of its 135.20 obligations and any call premium on its obligations, will be 135.21 used for redemption of its obligations in accordance with their 135.22 terms, or to level out the debt service tax rate, excluding the 135.23 debt excess adjustment, for its obligations over the next two 135.24 years. A school district requesting authority to retain all or 135.25 part of the excess balance shall provide written documentation 135.26 to the commissioner describing the rationale for its request by 135.27 September 15 including the issuance of new obligations within 135.28 the next year or the refunding of existing obligations. A 135.29 school district that retains an excess may request to transfer 135.30 the excess to its operating capital account in the general fund 135.31 under section 123B.80. The school board may, with the approval 135.32 of the commissioner, specify a tax levy in a higher amount if 135.33 necessary because of anticipated tax delinquency or for cash 135.34 flow needs to meet the required payments from the debt 135.35 redemption fund. 135.36 (g) If the governing body, including the governing body of 136.1 a school district, in any year makes an irrevocable 136.2 appropriation to the debt service fund of money actually on hand 136.3 or if there is on hand any excess amount in the debt service 136.4 fund, the recording officer may certify to the county auditor 136.5 the fact and amount thereof and the auditor shall reduce by the 136.6 amount so certified the amount otherwise to be included in the 136.7 rolls next thereafter prepared. 136.8 Sec. 24. [BONDS; MOUNDS VIEW.] 136.9 Notwithstanding Minnesota Statutes, section 123B.59, 136.10 subdivision 3, independent school district No. 621, Mounds View, 136.11 may issue bonds according to Minnesota Statutes 2002, section 136.12 123B.59, subdivision 3, for projects approved by the 136.13 commissioner before February 1, 2003. 136.14 [EFFECTIVE DATE.] This section is effective the day 136.15 following final enactment. 136.16 Sec. 25. [LEASE LEVY EXCEPTION.] 136.17 Notwithstanding Minnesota Statutes, section 126C.40, 136.18 subdivision 1, a school district that has entered into a 136.19 completed agreement under Laws 2000, chapter 492, article 1, 136.20 section 3, subdivision 4, may continue to levy for 100 percent 136.21 of the costs of any lease required by the agreement. 136.22 Sec. 26. [PROPERTY SALE; ST. FRANCIS SCHOOL DISTRICT.] 136.23 Notwithstanding Minnesota Statutes, section 123B.51, 136.24 subdivision 6, or any other law to the contrary, independent 136.25 school district No. 15, St. Francis, may deposit the proceeds 136.26 from the sale of land that was purchased with funds obtained 136.27 according to Laws 1992, chapter 558, section 7, subdivision 7, 136.28 in the district's general fund reserved for operating capital 136.29 account. The district may only use the proceeds of the sale for 136.30 projects designed to create or improve safe walking routes for 136.31 the students of independent school district No. 15, St. Francis. 136.32 [EFFECTIVE DATE.] This section is effective the day 136.33 following final enactment. 136.34 Sec. 27. [DISABLED ACCESS LEVY AUTHORITY; SOUTHLAND.] 136.35 Notwithstanding the time limits in Minnesota Statutes, 136.36 section 123B.58, subdivision 3, independent school district No. 137.1 500, Southland, may levy up to $66,000 of its remaining disabled 137.2 access levy authority over five or fewer years. 137.3 [EFFECTIVE DATE.] This section is effective the day 137.4 following final enactment. 137.5 Sec. 28. [LEVY; ELGIN-MILLVILLE.] 137.6 Subdivision 1. [LEVY.] For taxes payable in 2004 only, 137.7 independent school district No. 806, Elgin-Millville, may levy 137.8 an amount up to $8,000 for handicapped access and fire safety 137.9 improvements to school buildings. 137.10 Subd. 2. [LEVY LIMITATION.] The sum of the levy in 137.11 subdivision 1 and other levies under Minnesota Statutes, section 137.12 123B.58, must not exceed $300,000. 137.13 [EFFECTIVE DATE.] This section is effective for revenue for 137.14 fiscal year 2005 and thereafter. 137.15 Sec. 29. [GARAGE LEASE LEVY; SARTELL.] 137.16 For taxes payable in 2004, 2005, and 2006, independent 137.17 school district No. 740, Sartell, may levy up to $107,000 each 137.18 year for the purpose of leasing a school bus storage facility. 137.19 The department of education shall include this levy in the 137.20 calculation of eligible building lease levy under Minnesota 137.21 Statutes, section 126C.40, subdivision 1. This levy shall not 137.22 allow the district to exceed the $100 per resident marginal cost 137.23 pupil unit cap in that section. The district is eligible to 137.24 make this levy only if it sells its current school bus storage 137.25 site to the city of Sartell and the district may not use this 137.26 levy as part of a lease purchase agreement to replace its 137.27 current school bus storage facility. 137.28 Sec. 30. [HEALTH AND SAFETY EXCEPTION, ULEN-HITTERDAL.] 137.29 Notwithstanding Minnesota Statutes, section 123B.57, 137.30 independent school district No. 914, Ulen-Hitterdal, may submit 137.31 to the commissioner of education an application that the 137.32 demolition of a portion of the Ulen high school building be 137.33 included in its health and safety revenue for fiscal year 2005. 137.34 The department of education shall consider the district's 137.35 application for health and safety revenue based on the 137.36 eligibility criteria under Minnesota Statutes 2002, section 138.1 123B.57. 138.2 [EFFECTIVE DATE.] This section is effective the day 138.3 following final enactment. 138.4 Sec. 31. [APPROPRIATIONS.] 138.5 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 138.6 indicated in this section are appropriated from the general fund 138.7 to the department of education for the fiscal years designated. 138.8 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 138.9 safety aid according to Minnesota Statutes, section 123B.57, 138.10 subdivision 5: 138.11 $7,839,000 ..... 2004 138.12 $6,068,000 ..... 2005 138.13 The 2004 appropriation includes $1,516,000 for 2003 and 138.14 $6,323,000 for 2004. 138.15 The 2005 appropriation includes $1,580,000 for 2004 and 138.16 $4,488,000 for 2005. 138.17 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 138.18 according to Minnesota Statutes, section 123B.53, subdivision 6: 138.19 $34,500,000 ..... 2004 138.20 $37,575,000 ..... 2005 138.21 The 2004 appropriation includes $5,586,000 for 2003 and 138.22 $28,914,000 for 2004. 138.23 The 2005 appropriation includes $7,228,000 for 2004 and 138.24 $30,347,000 for 2005. 138.25 Subd. 4. [ALTERNATIVE FACILITIES BONDING AID.] For 138.26 alternative facilities bonding aid, according to Minnesota 138.27 Statutes, section 123B.59, subdivision 1: 138.28 $18,708,000 ..... 2004 138.29 $19,287,000 ..... 2005 138.30 The 2004 appropriation includes $3,278,000 for 2003 and 138.31 $15,430,000 for 2004. 138.32 The 2005 appropriation includes $3,857,000 for 2004 and 138.33 $15,430,000 for 2005. 138.34 Sec. 32. [REPEALER.] 138.35 Minnesota Statutes 2002, section 125B.11, is repealed. 138.36 ARTICLE 5 139.1 NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS 139.2 Section 1. Minnesota Statutes 2002, section 12.21, 139.3 subdivision 3, is amended to read: 139.4 Subd. 3. [SPECIFIC AUTHORITY.] In performing duties under 139.5 this chapter and to effect its policy and purpose, the governor 139.6 may: 139.7 (1) make, amend, and rescind the necessary orders and rules 139.8 to carry out the provisions of this chapter and section 216C.15 139.9 within the limits of the authority conferred by this section, 139.10 with due consideration of the plans of the federal government 139.11 and without complying with sections 14.001 to 14.69, but no 139.12 order or rule has the effect of law except as provided by 139.13 section 12.32; 139.14 (2) ensure that a comprehensive emergency operations plan 139.15 and emergency management program for this state are developed 139.16 and maintained, and are integrated into and coordinated with the 139.17 emergency plans of the federal government and of other states to 139.18 the fullest possible extent; 139.19 (3) in accordance with the emergency operations plan and 139.20 the emergency management program of this state, procure 139.21 supplies, equipment, and facilities; institute training programs 139.22 and public information programs; and take all other preparatory 139.23 steps, including the partial or full activation of emergency 139.24 management organizations in advance of actual disaster to ensure 139.25 the furnishing of adequately trained and equipped forces of 139.26 emergency management personnel in time of need; 139.27 (4) make studies and surveys of the industries, resources, 139.28 and facilities in this state as may be necessary to ascertain 139.29 the capabilities of the state for emergency management and to 139.30 plan for the most efficient emergency use of those industries, 139.31 resources, and facilities; 139.32 (5) on behalf of this state, enter into mutual aid 139.33 arrangements or cooperative agreements with other states, tribal 139.34 authorities, and Canadian provinces, and coordinate mutual aid 139.35 plans between political subdivisions of this state; 139.36 (6) delegate administrative authority vested in the 140.1 governor under this chapter, except the power to make rules, and 140.2 provide for the subdelegation of that authority; 140.3 (7) cooperate with the president and the heads of the armed 140.4 forces, the emergency management agency of the United States and 140.5 other appropriate federal officers and agencies, and with the 140.6 officers and agencies of other states in matters pertaining to 140.7 the emergency management of the state and nation, including the 140.8 direction or control of: 140.9 (i) emergency preparedness drills and exercises; 140.10 (ii) warnings and signals for drills or actual emergencies 140.11 and the mechanical devices to be used in connection with them; 140.12 (iii) shutting off water mains, gas mains, electric power 140.13 connections and the suspension of all other utility services; 140.14 (iv) the conduct of persons in the state, including 140.15 entrance or exit from any stricken or threatened public place, 140.16 occupancy of facilities, and the movement and cessation of 140.17 movement of pedestrians, vehicular traffic, and all forms of 140.18 private and public transportation during, prior, and subsequent 140.19 to drills or actual emergencies; 140.20 (v) public meetings or gatherings; and 140.21 (vi) the evacuation, reception, and sheltering of persons; 140.22 (8) contribute to a political subdivision, within the 140.23 limits of the appropriation for that purpose, not more than 25 140.24 percent of the cost of acquiring organizational equipment that 140.25 meets standards established by the governor; 140.26 (9) formulate and execute, with the approval of the 140.27 executive council, plans and rules for the control of traffic in 140.28 order to provide for the rapid and safe movement over public 140.29 highways and streets of troops, vehicles of a military nature, 140.30 and materials for national defense and war or for use in any war 140.31 industry, for the conservation of critical materials, or for 140.32 emergency management purposes; coordinate the activities of the 140.33 departments or agencies of the state and its political 140.34 subdivisions concerned directly or indirectly with public 140.35 highways and streets, in a manner that will best effectuate 140.36 those plans; 141.1 (10) alter or adjust by executive order, without complying 141.2 with sections 14.01 to 14.69, the working hours, work days and 141.3 work week of, and annual and sick leave provisions and payroll 141.4 laws regarding all state employees in the executive branch as 141.5 the governor deems necessary to minimize the impact of the 141.6 disaster or emergency, conforming the alterations or adjustments 141.7 to existing state laws, rules, and collective bargaining 141.8 agreements to the extent practicable; 141.9 (11) authorize the commissioner of children, families, and141.10 learningeducation to alter school schedules, curtail school 141.11 activities, or order schools closed without affecting state aid141.12 to schools,as defined in section 120A.05, subdivisions 9, 11, 141.13 13, and 17, and including charter schools under section 124D.10, 141.14 and elementary schools enrolling prekindergarten pupils in 141.15 district programs; and 141.16 (12) transfer the direction, personnel, or functions of 141.17 state agencies to perform or facilitate response and recovery 141.18 programs. 141.19 Sec. 2. Minnesota Statutes 2002, section 84A.51, 141.20 subdivision 4, is amended to read: 141.21 Subd. 4. [COUNTY'S USE OF FUNDS.] The funds received by 141.22 each county must be apportioned by the county auditor as follows: 141.23 (1) 30 percent to a county development fund, which is 141.24 created, to be spent under the direction of the county board for 141.25 the rehabilitation and development of the portion of the county 141.26 within the conservation area; 141.27 (2) 40 percent to the capital outlaygeneral fund of the 141.28 school district from which derived; 141.29 (3) 20 percent to the county revenue fund; and 141.30 (4) ten percent to the township road and bridge fund of the 141.31 township from which derived. 141.32 If the proceeds are derived from an unorganized township 141.33 with no levy for road and bridge purposes, the township portion 141.34 must be credited to the county revenue fund. 141.35 Sec. 3. Minnesota Statutes 2002, section 120A.05, 141.36 subdivision 9, is amended to read: 142.1 Subd. 9. [ELEMENTARY SCHOOL.] "Elementary school" means 142.2 any school with building, equipment, courses of study, class 142.3 schedules, enrollment of pupils ordinarily in prekindergarten 142.4 through grade 6 or any portion thereof, and staff meeting the 142.5 standards established by the commissioner. 142.6 The commissioner of children, families, and learning shall142.7 not close a school or deny any state aids to a district for its142.8 elementary schools because of enrollment limitations classified142.9 in accordance with the provisions of this subdivision.142.10 Sec. 4. Minnesota Statutes 2002, section 123B.75, 142.11 subdivision 5, is amended to read: 142.12 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 142.13 settlement revenue" means the current, delinquent, and 142.14 manufactured home property tax receipts collected by the county 142.15 and distributed to the school district. 142.16 (b) In June of 2001, the school district must recognize as142.17 revenue, in the fund for which the levy was made, the lesser of:142.18 (1) the sum of May, June, and July school district tax142.19 settlement revenue received in that calendar year plus general142.20 education aid according to section 126C.13, subdivision 4,142.21 received in July and August of that calendar year; or142.22 (2) the sum of:142.23 (i) 31 percent of the referendum levy certified in the142.24 prior calendar year according to section 126C.17, subdivision 9;142.25 plus142.26 (ii) the entire amount of the levy certified in the prior142.27 calendar year according to sections 124D.86, subdivision 4, for142.28 school districts receiving revenue under 124D.86, subdivision 3,142.29 clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,142.30 paragraphs (4), (5), and (6); 126C.43, subdivision 2; and142.31 126C.48, subdivision 6.142.32 (c) For fiscal year 2002 and later years,In June of each142.33 year2003, the school district must recognize as revenue, in the 142.34 fund for which the levy was made, the lesser of: 142.35 (1) the sum of May, June, and July school district tax 142.36 settlement revenue received in that calendar year, plus general 143.1 education aid according to section 126C.13, subdivision 4, 143.2 received in July and August of that calendar year; or 143.3 (2) the sum of: 143.4 (i) 31 percent of the referendum levy certified according 143.5 to section 126C.17, in calendar year 2000; plus 143.6 (ii) the entire amount of the levy certified in the prior 143.7 calendar year according to section 124D.86, subdivision 4, for 143.8 school districts receiving revenue under sections 124D.86, 143.9 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 143.10 1, 2, and 3, paragraphs (4)(b), (5)(c), and (6)(d); 143.11 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 6. 143.12 (c) For fiscal year 2004 and later years, in June of each 143.13 year, the school district must recognize as revenue, in the fund 143.14 for which the levy was made, the lesser of: 143.15 (1) the sum of May, June, and July school district tax 143.16 settlement revenue received in that calendar year, plus general 143.17 education aid according to section 126C.13, subdivision 4, 143.18 received in July and August of that calendar year; or 143.19 (2) the sum of: 143.20 (i) the greater of the percent of the referendum levy 143.21 certified according to section 126C.17, in the prior calendar 143.22 year or 45 percent of the referendum levy certified according to 143.23 section 126C.17, in calendar year 2000; plus 143.24 (ii) the entire amount of the levy certified in the prior 143.25 calendar year according to section 124D.86, subdivision 4, for 143.26 school districts receiving revenue under sections 124D.86, 143.27 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 143.28 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 143.29 2; 126C.457; and 126C.48, subdivision 6; plus 143.30 (iii) 45 percent of the amount of the levy certified in the 143.31 prior calendar year for the school district's general and 143.32 community service funds, plus or minus auditor's adjustments, 143.33 not including levy portions that are assumed by the state, that 143.34 remains after subtracting the referendum levy certified 143.35 according to section 126C.17 and the amount recognized according 143.36 to clause (ii). 144.1 (3) For fiscal year 2005 and later, the percent of the 144.2 referendum levy that is shifted is the greater of 31 percent or 144.3 the percent computed under paragraph (c), clause (2), item (i), 144.4 for fiscal year 2004. 144.5 Sec. 5. Minnesota Statutes 2002, section 124D.11, 144.6 subdivision 9, is amended to read: 144.7 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 144.8 Notwithstanding section 127A.45, subdivision 3, aid payments for 144.9 the current fiscal year to a charter school not in its first 144.10 year of operation shall be of an equal amount on each of the 23 144.11 payment dates. A charter school in its first year of operation 144.12 shall receive, on its first payment date, ten percent of its 144.13 cumulative amount guaranteed for the year and 22 payments of an 144.14 equal amount thereafter the sum of which shall be 90 percent of 144.15 the cumulative amount guaranteed. 144.16 (b) Notwithstanding paragraph (a), for a charter school 144.17 ceasing operation prior to the end of a school year, 8380 144.18 percent of the amount due for the school year may be paid to the 144.19 school after audit of prior fiscal year and current fiscal year 144.20 pupil counts. 144.21 (c) Notwithstanding section 127A.45, subdivision 3, and 144.22 paragraph (a), 8380 percent of the start-up cost aid under 144.23 subdivision 8 shall be paid within 45 days after the first day 144.24 of student attendance for that school year. 144.25 (d) In order to receive state aid payments under this 144.26 subdivision, a charter school in its first three years of 144.27 operation must submit a quarterly report to the department of 144.28 children, families, and learningeducation. The report must 144.29 list each student by grade, show the student's start and end 144.30 dates, if any, with the charter school, and for any student 144.31 participating in a learning year program, the report must list 144.32 the hours and times of learning year activities. The report 144.33 must be submitted not more than two weeks after the end of the 144.34 calendar quarter to the department. The department must develop 144.35 a Web-based reporting form for charter schools to use when 144.36 submitting enrollment reports. A charter school in its fourth 145.1 and subsequent year of operation must submit enrollment 145.2 information to the department in the form and manner requested 145.3 by the department. 145.4 [EFFECTIVE DATE.] This section is effective for revenue for 145.5 fiscal year 2004. 145.6 Sec. 6. [124D.1158] [SCHOOL BREAKFAST PROGRAM.] 145.7 Subdivision 1. [PURPOSE.] The purpose of the school 145.8 breakfast program is to provide affordable morning nutrition to 145.9 children so that they can effectively learn. Public and 145.10 nonpublic schools that participate in the federal school 145.11 breakfast program may receive state breakfast aid. Schools 145.12 shall encourage all children to eat a nutritious breakfast, 145.13 either at home or at school, and shall work to eliminate 145.14 barriers to breakfast participation at school such as inadequate 145.15 facilities and transportation. 145.16 Subd. 2. [PROGRAM; ELIGIBILITY.] Each school year, public 145.17 and nonpublic schools that participate in the federal school 145.18 breakfast program are eligible for the state breakfast program. 145.19 Subd. 3. [PROGRAM REIMBURSEMENT.] Each school year, the 145.20 state must reimburse each participating school 30 cents for each 145.21 reduced price breakfast and 55 cents for each fully paid 145.22 breakfast. 145.23 Subd. 4. [NO FEES.] A school that receives school 145.24 breakfast aid under this section must make breakfast available 145.25 without charge to all participating students who qualify for 145.26 free or reduced price meals. 145.27 Sec. 7. Minnesota Statutes 2002, section 124D.118, 145.28 subdivision 4, is amended to read: 145.29 Subd. 4. [REIMBURSEMENT.] In accordance with program 145.30 guidelines, the commissioner shall prepay orreimburse each 145.31 participating districts for the state share of the district's145.32 cost for providingpublic or nonpublic school nine cents for 145.33 each half-pint of milk that is served to kindergarten students 145.34 and is not part of a school lunch or breakfast reimbursed under 145.35 section 124D.111 or 124D.1158. 145.36 Sec. 8. Minnesota Statutes 2002, section 126C.42, 146.1 subdivision 1, is amended to read: 146.2 Subdivision 1. [1977 STATUTORY OPERATING DEBT.] (a) In 146.3 each year in which so required by this subdivision, a district 146.4 must make an additional levy to eliminate its statutory 146.5 operating debt, determined as of June 30, 1977, and certified 146.6 and adjusted by the commissioner. This levy shall not be made 146.7 in more than 30 successive years and each year before it is 146.8 made, it must be approved by the commissioner and the approval 146.9 shall specify its amount. This levy shall be an amount which is 146.10 equal to the amount raised by a levy of a net tax rate of 1.98146.11 2.67 percent times the adjusted net tax capacity of the district 146.12 for the preceding year for taxes payable in 20002002 and 146.13 thereafter; provided that in the last year in which the district 146.14 is required to make this levy, it must levy an amount not to 146.15 exceed the amount raised by a levy of a net tax rate of 1.98146.16 2.67 percent times the adjusted net tax capacity of the district 146.17 for the preceding year for taxes payable in 20002002 and 146.18 thereafter. When the sum of the cumulative levies made pursuant 146.19 to this subdivision and transfers made according to section 146.20 123B.79, subdivision 6, equals an amount equal to the statutory 146.21 operating debt of the district, the levy shall be discontinued. 146.22 (b) The district must establish a special account in the 146.23 general fund which shall be designated "appropriated fund 146.24 balance reserve account for purposes of reducing statutory 146.25 operating debt" on its books and records. This account shall 146.26 reflect the levy authorized pursuant to this subdivision. The 146.27 proceeds of this levy must be used only for cash flow 146.28 requirements and must not be used to supplement district 146.29 revenues or income for the purposes of increasing the district's 146.30 expenditures or budgets. 146.31 (c) Any district which is required to levy pursuant to this146.32 subdivision must certify the maximum levy allowable under146.33 section 126C.13, subdivision 2, in that same year.146.34 (d)Each district shall make permanent fund balance 146.35 transfers so that the total statutory operating debt of the 146.36 district is reflected in the general fund as of June 30, 1977. 147.1 Sec. 9. Minnesota Statutes 2002, section 126C.43, 147.2 subdivision 2, is amended to read: 147.3 Subd. 2. [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 147.4 FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 147.5 levy 90 percent of the amountsamount exceeding $10 times the 147.6 district's adjusted marginal cost pupil units for the fiscal 147.7 year ending in the year before the year the levy is certified 147.8 necessary (i) to pay the district's obligations under section 147.9 268.052, subdivision 1, and the amounts necessary(ii) to pay 147.10 for job placement services offered to employees who may become 147.11 eligible for benefits pursuant to section 268.085 for the fiscal 147.12 year the levy is certified. 147.13 [EFFECTIVE DATE.] This section is effective for taxes 147.14 payable in 2004. 147.15 Sec. 10. Minnesota Statutes 2002, section 126C.43, 147.16 subdivision 3, is amended to read: 147.17 Subd. 3. [TAX LEVY FOR JUDGMENT.] A district may levy 90 147.18 percent of the amountsamount exceeding $10 times the district's 147.19 adjusted marginal cost pupil units for the fiscal year ending in 147.20 the year before the year the levy is certified necessary to pay 147.21 judgments against the district under section 123B.25 that became 147.22 final after the date the district certified its proposed levy in 147.23 the previous year. With the approval of the commissioner, a 147.24 district may spread this levy over a period not to exceed three 147.25 years. Upon approval through the adoption of a resolution by 147.26 each of an intermediate district's member school district 147.27 boards, a member school district may include its proportionate 147.28 share of the costs of a judgment against an intermediate school 147.29 district that became final under section 123B.25 after the date 147.30 that the earliest member school district certified its proposed 147.31 levy in the previous year. With the approval of the 147.32 commissioner, an intermediate school district member school 147.33 district may spread this levy over a period not to exceed three 147.34 years. 147.35 [EFFECTIVE DATE.] This section is effective for taxes 147.36 payable in 2004. 148.1 Sec. 11. [127A.441] [AID REDUCTION; LEVY REVENUE 148.2 RECOGNITION CHANGE.] 148.3 Each year, the state aids payable to any school district 148.4 for that fiscal year that are recognized as revenue in the 148.5 school district's general and community service funds shall be 148.6 adjusted by an amount equal to (1) the amount the district 148.7 recognized as revenue for the prior fiscal year pursuant to 148.8 section 123B.75, subdivision 5, paragraph (b) or (c), minus (2) 148.9 the amount the district recognized as revenue for the current 148.10 fiscal year pursuant to section 123B.75, subdivision 5, 148.11 paragraph (c). For purposes of making the aid adjustments under 148.12 this section, the amount the district recognizes as revenue for 148.13 either the prior fiscal year or the current fiscal year pursuant 148.14 to section 123B.75, subdivision 5, paragraph (b) or (c), shall 148.15 not include any amount levied pursuant to section 124D.86, 148.16 subdivision 4, for school districts receiving revenue under 148.17 sections 124D.86, subdivision 3, clauses (1), (2), and (3); 148.18 126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 148.19 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 6. 148.20 Payment from the permanent school fund shall not be adjusted 148.21 pursuant to this section. The school district shall be notified 148.22 of the amount of the adjustment made to each payment pursuant to 148.23 this section. 148.24 Sec. 12. Minnesota Statutes 2002, section 126C.45, is 148.25 amended to read: 148.26 126C.45 [ICE ARENA LEVY.] 148.27 (a) Each year, an independent school district operating and 148.28 maintaining an ice arena, may levy for the net operational costs 148.29 of the ice arena. The levy may not exceed 90 percent of the net 148.30 actual costs of operation of the arena for the previous year. 148.31 Net actual costs are defined as operating costs less any 148.32 operating revenues. 148.33 (b) Any district operating and maintaining an ice arena 148.34 must demonstrate to the satisfaction of the office of monitoring 148.35 in the department that the district will offer equal sports 148.36 opportunities for male and female students to use its ice arena, 149.1 particularly in areas of access to prime practice time, team 149.2 support, and providing junior varsity and younger level teams 149.3 for girls' ice sports and ice sports offerings. 149.4 [EFFECTIVE DATE.] This section is effective for taxes 149.5 payable in 2004. 149.6 Sec. 13. Minnesota Statutes 2002, section 126C.48, 149.7 subdivision 3, is amended to read: 149.8 Subd. 3. [ADJUSTMENTS.] If any district levy is found to 149.9 be excessive as a result of a decision of the tax court or a 149.10 redetermination by the commissioner of revenue under section 149.11 127A.48, subdivisions 7 to 16, or for any other reason, the 149.12 amount of the excess shall be deducted from the levy certified 149.13 in the next year for the same purpose. If no levy is certified 149.14 in the next year for the same purpose or if the amount certified 149.15 is less than the amount of the excess, the excess must be 149.16 deducted from that levy and the general fund levy certified 149.17 pursuant to section 126C.13, subdivision 2chapters 122A, 123A, 149.18 123B, 124D, and 126C. If the amount of any aid would have been 149.19 increased in a prior year as a result of a decision of the tax 149.20 court or a redetermination by the commissioner of revenue, the 149.21 amount of the increase shall be added to the amount of current 149.22 aid for the same purposes. 149.23 Sec. 14. Minnesota Statutes 2002, section 127A.45, 149.24 subdivision 2, is amended to read: 149.25 Subd. 2. [DEFINITIONS.] (a) The term "other district 149.26 receipts" means payments by county treasurers pursuant to 149.27 section 276.10, apportionments from the school endowment fund 149.28 pursuant to section 127A.33, apportionments by the county 149.29 auditor pursuant to section 127A.34, subdivision 2, and payments 149.30 to school districts by the commissioner of revenue pursuant to 149.31 chapter 298. 149.32 (b) The term "cumulative amount guaranteed" means the 149.33 product of 149.34 (1) the cumulative disbursement percentage shown in 149.35 subdivision 3; times 149.36 (2) the sum of 150.1 (i) 8380 percent of the estimated aid and credit 150.2 entitlements paid according to subdivision 13; plus 150.3 (ii) 100 percent of the entitlements paid according to 150.4 subdivisions 11 and 12; plus 150.5 (iii) the other district receipts. 150.6 (c) The term "payment date" means the date on which state 150.7 payments to districts are made by the electronic funds transfer 150.8 method. If a payment date falls on a Saturday, a Sunday, or a 150.9 weekday which is a legal holiday, the payment shall be made on 150.10 the immediately preceding business day. The commissioner may 150.11 make payments on dates other than those listed in subdivision 3, 150.12 but only for portions of payments from any preceding payment 150.13 dates which could not be processed by the electronic funds 150.14 transfer method due to documented extenuating circumstances. 150.15 Sec. 15. Minnesota Statutes 2002, section 127A.45, 150.16 subdivision 3, is amended to read: 150.17 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] (a) For fiscal150.18 year 2003, the commissioner shall pay to a district on the dates150.19 indicated an amount computed as follows: the cumulative amount150.20 guaranteed minus the sum of (a) the district's other district150.21 receipts through the current payment, and (b) the aid and credit150.22 payments through the immediately preceding payment. For150.23 purposes of this computation, the payment dates and the150.24 cumulative disbursement percentages are as follows:150.25 Payment date Percentage150.26 Payment 1 July 15: 5.1150.27 Payment 2 July 30: 7.7150.28 Payment 3 August 15: 16.9150.29 Payment 4 August 30: 19.3150.30 Payment 5 September 15: 21.8150.31 Payment 6 September 30: 24.3150.32 Payment 7 October 15: 26.3150.33 Payment 8 October 30: 28.3150.34 Payment 9 November 15: 32.8150.35 Payment 10 November 30: 39.1150.36 Payment 11 December 15: 42.4151.1 Payment 12 December 30: 45.6151.2 Payment 13 January 15: 50.5151.3 Payment 14 January 30: 55.0151.4 Payment 15 February 15: 60.2151.5 Payment 16 February 28: 65.0151.6 Payment 17 March 15: 69.7151.7 Payment 18 March 30: 74.3151.8 Payment 19 April 15: 78.3151.9 Payment 20 April 30: 84.2151.10 Payment 21 May 15: 88.7151.11 Payment 22 May 30: 93.3151.12 Payment 23 June 20: 100.0151.13 (b) In addition to the amounts paid under paragraph (a),151.14 for fiscal year 2003, the commissioner shall pay to a district151.15 on the dates indicated an amount computed as follows:151.16 Payment 3 August 15: the final adjustment for the151.17 prior fiscal year for the state paid151.18 property tax credits established in151.19 section 273.1392151.20 Payment 7 October 15: one-half of the final adjustment151.21 for the prior fiscal year for all aid151.22 entitlements except state paid property151.23 tax credits151.24 Payment 8 October 30: one-half of the final adjustment151.25 for the prior fiscal year for all aid151.26 entitlements except state paid property151.27 tax credits151.28 (c)For fiscal year 2004 and later, the commissioner shall 151.29 pay to a district on the dates indicated an amount computed as 151.30 follows: the cumulative amount guaranteed minus the sum of (a) 151.31 the district's other district receipts through the current 151.32 payment, and (b) the aid and credit payments through the 151.33 immediately preceding payment. For purposes of this 151.34 computation, the payment dates and the cumulative disbursement 151.35 percentages are as follows: 151.36 Payment date Percentage 152.1 Payment 1 July 15: 5.15.5 152.2 Payment 2 July 30: 7.78.0 152.3 Payment 3 August 15: 16.917.5 152.4 Payment 4 August 30: 19.320.0 152.5 Payment 5 September 15: 21.822.5 152.6 Payment 6 September 30: 24.325.0 152.7 Payment 7 October 15: 26.327.0 152.8 Payment 8 October 30: 28.330.0 152.9 Payment 9 November 15: 30.332.5 152.10 Payment 10 November 30: 35.036.5 152.11 Payment 11 December 15: 40.042.0 152.12 Payment 12 December 30: 43.045.0 152.13 Payment 13 January 15: 48.050.0 152.14 Payment 14 January 30: 52.054.0 152.15 Payment 15 February 15: 56.058.0 152.16 Payment 16 February 28: 61.063.0 152.17 Payment 17 March 15: 66.068.0 152.18 Payment 18 March 30: 72.074.0 152.19 Payment 19 April 15: 76.078.0 152.20 Payment 20 April 30: 83.085.0 152.21 Payment 21 May 15: 88.090.0 152.22 Payment 22 May 30: 95.0 152.23 Payment 23 June 20: 100.0 152.24 (d)(b) In addition to the amounts paid under paragraph 152.25 (c)(a), for fiscal year 2004 and later, the commissioner shall 152.26 pay to a district on the dates indicated an amount computed as 152.27 follows: 152.28 Payment 3 August 15: the final adjustment for the 152.29 prior fiscal year for the state paid 152.30 property tax credits established in 152.31 section 273.1392 152.32 Payment 4 August 30: one-third of the final adjustment 152.33 for the prior fiscal year for all aid 152.34 entitlements except state paid property 152.35 tax credits 152.36 Payment 6 September 30: one-third of the final adjustment 153.1 for the prior fiscal year for all aid 153.2 entitlements except state paid property 153.3 tax credits 153.4 Payment 8 October 30: one-third of the final adjustment 153.5 for the prior fiscal year for all aid 153.6 entitlements except state paid property 153.7 tax credits 153.8 (c) In addition to the amounts paid under paragraph (a), 153.9 for fiscal year 2005 and later, the commissioner shall pay to a 153.10 district on the dates indicated an amount computed as follows: 153.11 Payment 3 August 15: the final adjustment for the 153.12 prior fiscal year for the state paid 153.13 property tax credits established in 153.14 section 273.1392 153.15 Payment 4 August 30: 30 percent of the final adjustment 153.16 for the prior fiscal year for all aid 153.17 entitlements except state paid property 153.18 tax credits 153.19 Payment 6 September 30: 40 percent of the final adjustment 153.20 for the prior fiscal year for all aid 153.21 entitlements except state paid property 153.22 tax credits 153.23 Payment 8 October 30: 30 percent of the final adjustment 153.24 for the prior fiscal year for all aid 153.25 entitlements except state paid property 153.26 tax credits 153.27 Sec. 16. Minnesota Statutes 2002, section 127A.45, 153.28 subdivision 7a, is amended to read: 153.29 Subd. 7a. [ADVANCE FINAL PAYMENT.] (a) Notwithstanding 153.30 subdivisions 3 and 7, a school district or a charter school 153.31 exceeding its expenditure limitations under section 123B.83 as 153.32 of June 30 of the prior fiscal year may receive a portion of its 153.33 final payment for the current fiscal year on June 20, if 153.34 requested by the district. The amount paid under this 153.35 subdivision must not exceed the lesser of: 153.36 (1) seven percent of the district or charter school's 154.1 general education aid for the current fiscal year; or 154.2 (2) the amount by which the district or charter school's 154.3 net negative unreserved general fund balance as of June 30 of 154.4 the prior fiscal year exceeds 2.5 percent of the district or 154.5 charter school's expenditures for that fiscal year. 154.6 (b) The state total advance final payment under this 154.7 subdivision for any year must not exceed $17,500,000$12,000,000. 154.8 If the amount requested exceeds $17,500,000$12,000,000, the 154.9 advance final payment for each eligible district must be reduced 154.10 proportionately. 154.11 Sec. 17. Minnesota Statutes 2002, section 127A.45, 154.12 subdivision 10, is amended to read: 154.13 Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 154.14 fiscal year state general fund payments for a district 154.15 nonoperating fund must be made at 8380 percent of the estimated 154.16 entitlement during the fiscal year of the entitlement. This 154.17 amount shall be paid in 12 equal monthly installments. The 154.18 amount of the actual entitlement, after adjustment for actual 154.19 data, minus the payments made during the fiscal year of the 154.20 entitlement must be paid prior to October 31 of the following 154.21 school year. The commissioner may make advance payments of debt 154.22 service equalization aid or homestead and agricultural credit 154.23 aid for a district's debt service fund earlier than would occur 154.24 under the preceding schedule if the district submits evidence 154.25 showing a serious cash flow problem in the fund. The 154.26 commissioner may make earlier payments during the year and, if 154.27 necessary, increase the percent of the entitlement paid to 154.28 reduce the cash flow problem. 154.29 Sec. 18. Minnesota Statutes 2002, section 127A.45, 154.30 subdivision 13, is amended to read: 154.31 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 154.32 subdivisions 11, 12, 12a, and 14, each fiscal year, all 154.33 education aids and credits in this chapter and chapters 120A, 154.34 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 154.35 section 273.1392, shall be paid at 8380 percent of the 154.36 estimated entitlement during the fiscal year of the 155.1 entitlement. For the purposes of this subdivision, a district's 155.2 estimated entitlement for special education excess cost aid 155.3 under section 125A.79 equals 70 percent of the district's 155.4 entitlement for the second prior fiscal year. The final 155.5 adjustment payment, according to subdivision 9, must be the 155.6 amount of the actual entitlement, after adjustment for actual 155.7 data, minus the payments made during the fiscal year of the 155.8 entitlement. 155.9 Sec. 19. Minnesota Statutes 2002, section 127A.45, 155.10 subdivision 14, is amended to read: 155.11 Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid 155.12 according to sections 123B.40 to 123B.48 for pupils attending 155.13 nonpublic schools as follows: 155.14 (1) an advance payment by November 30 equal to 8380 155.15 percent of the estimated entitlement for the current fiscal 155.16 year; and 155.17 (2) a final payment by October 31 of the following fiscal 155.18 year, adjusted for actual data. 155.19 If a payment advance to meet cash flow needs is requested 155.20 by a district and approved by the commissioner, the state shall 155.21 pay nonpublic pupil transportation aid according to section 155.22 123B.92 by October 31. 155.23 Sec. 20. Minnesota Statutes 2002, section 127A.45, 155.24 subdivision 14a, is amended to read: 155.25 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 155.26 subdivision 3, the state shall pay 100 percent of the aid for 155.27 the current year according to sections 124D.111, 155.28 124D.115,124D.1158, and 124D.118 and 83 percent of the aid for155.29 the current year according to section 124D.1156based on 155.30 submitted monthly vouchers showing meals and milk served. The155.31 remaining 17 percent according to section 124D.1156 shall be155.32 paid by October 30 of the following fiscal year.155.33 Sec. 21. Minnesota Statutes 2002, section 127A.45, 155.34 subdivision 16, is amended to read: 155.35 Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 155.36 subdivision 3, 8380 percent of the amounts under section 156.1 123A.26, subdivision 3, shall be paid in equal installments on 156.2 August 30, December 30, and March 30, with a 1720 percent final 156.3 adjustment payment on October 30 of the next fiscal year. 156.4 Sec. 22. Minnesota Statutes 2002, section 127A.47, 156.5 subdivision 7, is amended to read: 156.6 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 156.7 education aid for districts must be adjusted for each pupil 156.8 attending a nonresident district under sections 123A.05 to 156.9 123A.08, 124D.03, 124D.06, 124D.07,124D.08, and 124D.68. The 156.10 adjustments must be made according to this subdivision. 156.11 (a) General education aid paid to a resident district must 156.12 be reduced by an amount equal to the referendum equalization aid 156.13 attributable to the pupil in the resident district. 156.14 (b) General education aid paid to a district serving a 156.15 pupil in programs listed in this subdivision must be increased 156.16 by an amount equal to the referendum equalization aid 156.17 attributable to the pupil in the nonresident district. 156.18 (c) If the amount of the reduction to be made from the 156.19 general education aid of the resident district is greater than 156.20 the amount of general education aid otherwise due the district, 156.21 the excess reduction must be made from other state aids due the 156.22 district. 156.23 (d) The district of residence must pay tuition to a 156.24 district or an area learning center, operated according to 156.25 paragraph (e), providing special instruction and services to a 156.26 pupil with a disability, as defined in section 125A.02, or a 156.27 pupil, as defined in section 125A.51, who is enrolled in a 156.28 program listed in this subdivision. The tuition must be equal 156.29 to (1) the actual cost of providing special instruction and 156.30 services to the pupil, including a proportionate amount for debt 156.31 service and for capital expenditure facilities and equipment, 156.32 and debt service but not including any amount for 156.33 transportation, minus (2) the amount of general education 156.34 revenue and special education aid but not including any amount 156.35 for transportation, attributable to that pupil, that is received 156.36 by the district providing special instruction and services. 157.1 (e) An area learning center operated by a service 157.2 cooperative, intermediate district, education district, or a 157.3 joint powers cooperative may elect through the action of the 157.4 constituent boards to charge the resident district tuition for 157.5 pupils rather than to calculate general education aid157.6 adjustments under paragraph (a), (b), or (c). The tuition must157.7 be equal to the greater of the average general education revenue157.8 per pupil unit attributable to the pupil, or the actual cost of157.9 providing the instruction, excluding transportation costs, if157.10 the pupil meets the requirements of section 125A.02 or157.11 125A.51have the general education revenue paid to a fiscal 157.12 agent school district. Except as provided in paragraph (d), the 157.13 district of residence must pay tuition equal to at least 90 157.14 percent of the district average general education revenue per 157.15 pupil unit minus an amount equal to the product of the formula 157.16 allowance according to section 126C.10, subdivision 2, times 157.17 .0485, calculated without basic skills revenue and 157.18 transportation sparsity revenue, times the number of pupil units 157.19 for pupils attending the area learning center, plus the amount 157.20 of compensatory revenue generated by pupils attending the area 157.21 learning center. 157.22 Sec. 23. Minnesota Statutes 2002, section 127A.47, 157.23 subdivision 8, is amended to read: 157.24 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 157.25 for districts must be adjusted for each pupil attending a 157.26 charter school under section 124D.10. The adjustments must be 157.27 made according to this subdivision. 157.28 (b) General education aid paid to a district in which a 157.29 charter school not providing transportation according to section 157.30 124D.10, subdivision 16, is located must be increased by an 157.31 amount equal to the product of: (1) the sum of an amount equal 157.32 to the product of the formula allowance according to section 157.33 126C.10, subdivision 2, times .0485, plus the transportation 157.34 sparsity allowance for the district , plus the transportation157.35 transition allowance for the district; times (2) the pupil units 157.36 attributable to the pupil. 158.1 Sec. 24. Minnesota Statutes 2002, section 127A.49, 158.2 subdivision 2, is amended to read: 158.3 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 158.4 sections 270.07, 375.192, or otherwise, the net tax capacity of 158.5 any district for any taxable year is changed after the taxes for 158.6 that year have been spread by the county auditor and the local 158.7 tax rate as determined by the county auditor based upon the 158.8 original net tax capacity is applied upon the changed net tax 158.9 capacities, the county auditor shall, prior to February 1 of 158.10 each year, certify to the commissioner of children, families,158.11 and learningeducation the amount of any resulting net revenue 158.12 loss that accrued to the district during the preceding year. 158.13 Each year, the commissioner shall pay an abatement adjustment to 158.14 the district in an amount calculated according to the provisions 158.15 of this subdivision. This amount shall be deducted from the 158.16 amount of the levy authorized by section 126C.46. The amount of 158.17 the abatement adjustment must be the product of: 158.18 (1) the net revenue loss as certified by the county 158.19 auditor, times 158.20 (2) the ratio of: 158.21 (i) the sum of the amounts of the district's certified levy 158.22 in the preceding year according to the following: 158.23 (A) section 126C.13 if the district received general158.24 education aid according to that section for the second preceding158.25 year;158.26 (B)section 123B.57, if the district received health and 158.27 safety aid according to that section for the second preceding 158.28 year; 158.29 (C) sections(B) section 124D.20, 124D.21, and 124D.56,if 158.30 the district received aid for community education programs 158.31 according to any of those sectionsthat section for the second 158.32 preceding year; 158.33 (D)(C) section 124D.135, subdivision 3, if the district 158.34 received early childhood family education aid according to 158.35 section 124D.135 for the second preceding year; and 158.36 (E)(D) section 126C.17, subdivision 6, if the district 159.1 received referendum equalization aid according to that section 159.2 for the second preceding year; to 159.3 (ii) the total amount of the district's certified levy in 159.4 the preceding December, plus or minus auditor's adjustments. 159.5 Sec. 25. Minnesota Statutes 2002, section 127A.49, 159.6 subdivision 3, is amended to read: 159.7 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 159.8 tax increment is made to a district pursuant to section 469.176, 159.9 subdivision 2, or upon decertification of a tax increment 159.10 district, the school district's aid and levy limitations must be 159.11 adjusted for the fiscal year in which the excess tax increment 159.12 is paid under the provisions of this subdivision. 159.13 (b) An amount must be subtracted from the district's aid 159.14 for the current fiscal year equal to the product of: 159.15 (1) the amount of the payment of excess tax increment to 159.16 the district, times 159.17 (2) the ratio of: 159.18 (i) the sum of the amounts of the district's certified levy 159.19 for the fiscal year in which the excess tax increment is paid 159.20 according to the following: 159.21 (A) section 126C.13, if the district received general159.22 education aid according to that section for the second preceding159.23 year;159.24 (B)section 123B.57, if the district received health and 159.25 safety aid according to that section for the second preceding 159.26 year; 159.27 (C) sections(B) section 124D.20, 124D.21, and 124D.56,if 159.28 the district received aid for community education programs 159.29 according to any of those sectionsthat section for the second 159.30 preceding year; 159.31 (D)(C) section 124D.135, subdivision 3, if the district 159.32 received early childhood family education aid according to 159.33 section 124D.135 for the second preceding year; and 159.34 (E)(D) section 126C.17, subdivision 6, if the district 159.35 received referendum equalization aid according to that section 159.36 for the second preceding year; to 160.1 (ii) the total amount of the district's certified levy for 160.2 the fiscal year, plus or minus auditor's adjustments. 160.3 (c) An amount must be subtracted from the school district's 160.4 levy limitation for the next levy certified equal to the 160.5 difference between: 160.6 (1) the amount of the distribution of excess increment; and 160.7 (2) the amount subtracted from aid pursuant to clause (a). 160.8 If the aid and levy reductions required by this subdivision 160.9 cannot be made to the aid for the fiscal year specified or to 160.10 the levy specified, the reductions must be made from aid for 160.11 subsequent fiscal years, and from subsequent levies. The school 160.12 district must use the payment of excess tax increment to replace 160.13 the aid and levy revenue reduced under this subdivision. 160.14 (d) This subdivision applies only to the total amount of 160.15 excess increments received by a district for a calendar year 160.16 that exceeds $25,000. 160.17 Sec. 26. Minnesota Statutes 2002, section 128D.11, 160.18 subdivision 8, is amended to read: 160.19 Subd. 8. [NET DEBT LIMIT.] The school district shall not 160.20 be subject to a net debt in excess of 102144 percent of the net 160.21 tax capacity of all taxable property therein. 160.22 Sec. 27. Minnesota Statutes 2002, section 268.052, 160.23 subdivision 2, is amended to read: 160.24 Subd. 2. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 160.25 A TAXPAYING EMPLOYER.] (a) The state or political 160.26 subdivision excluding a school district may elect to be a 160.27 taxpaying employer for any calendar year if a notice of election 160.28 is filed within 30 calendar days following January 1 of that 160.29 calendar year. Upon election, the state or political 160.30 subdivision shall be assigned the new employer tax rate under 160.31 section 268.051, subdivision 5, for the calendar year of the 160.32 election and until it qualifies for an experience rating under 160.33 section 268.051, subdivision 3. 160.34 (b) An election shall be for a minimum period of two 160.35 calendar years following the effective date of the election and 160.36 continue unless a notice terminating the election is filed not 161.1 later than 30 calendar days before the beginning of the calendar 161.2 year. The termination shall be effective at the beginning of 161.3 the next calendar year. Upon election, the commissioner shall 161.4 establish a reimbursable account for the state or political 161.5 subdivision. A termination of election shall be allowed only if 161.6 the state or political subdivision has, since the beginning of 161.7 the experience rating period under section 268.051, subdivision 161.8 3, paid taxes and made voluntary payments under section 268.051, 161.9 subdivision 7, equal to or more than 125 percent of the 161.10 unemployment benefits used in computing the experience rating. 161.11 In addition, any unemployment benefits paid after the experience 161.12 rating period shall be transferred to the new reimbursable 161.13 account of the state or political subdivision. If the amount of 161.14 taxes and voluntary payments paid since the beginning of the 161.15 experience rating period exceeds 125 percent of the amount of 161.16 unemployment benefits paid during the experience rating period, 161.17 that amount in excess shall be applied against any unemployment 161.18 benefits paid after the experience rating period. 161.19 (c) The method of payments to the fund under subdivisions 3 161.20 and 4 shall apply to all taxes paid by or due from the state or 161.21 political subdivision that elects to be taxpaying employers 161.22 under this subdivision. 161.23 (d) The commissioner may allow a notice of election or a 161.24 notice terminating election to be filed by mail or electronic 161.25 transmission. 161.26 [EFFECTIVE DATE.] This section is effective the day 161.27 following final enactment. 161.28 Sec. 28. Minnesota Statutes 2002, section 268.052, 161.29 subdivision 4, is amended to read: 161.30 Subd. 4. [METHOD OF PAYMENT BY POLITICAL SUBDIVISION.] A 161.31 political subdivision or instrumentality thereof is authorized 161.32 and directed to pay its liabilities by money collected from 161.33 taxes or other revenues. Every political subdivision authorized 161.34 to levy taxes except school districts may include in its tax 161.35 levy the amount necessary to pay its liabilities. School 161.36 districts may levy according to section 126C.43, subdivision 2. 162.1 If the taxes authorized to be levied cause the total amount of 162.2 taxes levied to exceed any limitation upon the power of a 162.3 political subdivision to levy taxes, the political subdivision 162.4 may levy taxes in excess of the limitations in the amounts 162.5 necessary to meet its liability. The expenditures authorized 162.6 shall not be included in computing the cost of government as 162.7 defined in any home rule charter. The governing body of a 162.8 municipality, for the purpose of meeting its liabilities, in the 162.9 event of a deficit, may issue its obligations payable in not 162.10 more than two years, in an amount that may cause its 162.11 indebtedness to exceed any statutory or charter limitations, 162.12 without an election, and may levy taxes in the manner provided 162.13 in section 475.61. 162.14 [EFFECTIVE DATE.] This section is effective for taxes 162.15 payable in 2004. 162.16 Sec. 29. Minnesota Statutes 2002, section 273.138, 162.17 subdivision 6, is amended to read: 162.18 Subd. 6. The amount of aid calculated for a school 162.19 district pursuant to subdivision 3, clauses (2), (3), (4), and 162.20 (5) shall be deducted from the school district's general fund 162.21 levy limitation established pursuant to section 126C.13chapters 162.22 122A, 123A, 123B, 124D, and 126C in determining the amount of 162.23 taxes the school district may levy for general and special 162.24 purposes. 162.25 Sec. 30. Minnesota Statutes 2002, section 298.28, 162.26 subdivision 4, is amended to read: 162.27 Subd. 4. [SCHOOL DISTRICTS.] (a) 17.15 cents per taxable 162.28 ton plus the increase provided in paragraph (d) must be 162.29 allocated to qualifying school districts to be distributed, 162.30 based upon the certification of the commissioner of revenue, 162.31 under paragraphs (b) and (c), except as otherwise provided in 162.32 paragraph (f). 162.33 (b) 3.43 cents per taxable ton must be distributed to the 162.34 school districts in which the lands from which taconite was 162.35 mined or quarried were located or within which the concentrate 162.36 was produced. The distribution must be based on the 163.1 apportionment formula prescribed in subdivision 2. 163.2 (c)(i) 13.72 cents per taxable ton, less any amount 163.3 distributed under paragraph (e), shall be distributed to a group 163.4 of school districts comprised of those school districts in which 163.5 the taconite was mined or quarried or the concentrate produced 163.6 or in which there is a qualifying municipality as defined by 163.7 section 273.134, paragraph (b), in direct proportion to school 163.8 district indexes as follows: for each school district, its 163.9 pupil units determined under section 126C.05 for the prior 163.10 school year shall be multiplied by the ratio of the average 163.11 adjusted net tax capacity per pupil unit for school districts 163.12 receiving aid under this clause as calculated pursuant to 163.13 chapters 122A, 126C, and 127A for the school year ending prior 163.14 to distribution to the adjusted net tax capacity per pupil unit 163.15 of the district. Each district shall receive that portion of 163.16 the distribution which its index bears to the sum of the indices 163.17 for all school districts that receive the distributions. 163.18 (ii) Notwithstanding clause (i), each school district that 163.19 receives a distribution under sections 298.018; 298.23 to 163.20 298.28, exclusive of any amount received under this clause; 163.21 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 163.22 imposing a tax on severed mineral values after reduction for any 163.23 portion distributed to cities and towns under section 126C.48, 163.24 subdivision 8, paragraph (5), that is less than the amount of 163.25 its levy reduction under section 126C.48, subdivision 8, for the 163.26 second year prior to the year of the distribution shall receive 163.27 a distribution equal to the difference; the amount necessary to 163.28 make this payment shall be derived from proportionate reductions 163.29 in the initial distribution to other school districts under 163.30 clause (i). 163.31 (d) Any school district described in paragraph (c) where a 163.32 levy increase pursuant to section 126C.17, subdivision 9, was 163.33 authorized by referendum for taxes payable in 2001, shall 163.34 receive a distribution from a fund that receives a distribution 163.35 in 1998 of 21.3 cents per ton. On July 15 of 1999, and each 163.36 year thereafter, the increase over the amount established for 164.1 the prior year shall be determined according to the increase in 164.2 the implicit price deflator as provided in section 298.24, 164.3 subdivision 1. Each district shall receive $175 times the pupil 164.4 units identified in section 126C.05, subdivision 1, enrolled in 164.5 the second previous year or the 1983-1984 school year, whichever 164.6 is greater, less the product of 1.8 percent times the district's 164.7 taxable net tax capacity in the second previous year. 164.8 If the total amount provided by paragraph (d) is 164.9 insufficient to make the payments herein required then the 164.10 entitlement of $175 per pupil unit shall be reduced uniformly so 164.11 as not to exceed the funds available. Any amounts received by a 164.12 qualifying school district in any fiscal year pursuant to 164.13 paragraph (d) shall not be applied to reduce general education 164.14 aid which the district receives pursuant to section 126C.13 or 164.15 the permissible levies of the district. Any amount remaining 164.16 after the payments provided in this paragraph shall be paid to 164.17 the commissioner of iron range resources and rehabilitation who 164.18 shall deposit the same in the taconite environmental protection 164.19 fund and the northeast Minnesota economic protection trust fund 164.20 as provided in subdivision 11. 164.21 Each district receiving money according to this paragraph 164.22 shall reserve the lesser of the amount received under this 164.23 paragraph or $25 times the number of pupil units served in the 164.24 district. It may use the money for early childhood programs or 164.25 for outcome-based learning programs that enhance the academic 164.26 quality of the district's curriculum. The outcome-based 164.27 learning programs must be approved by the commissioner of 164.28 children, families, and learningeducation. 164.29 (e) There shall be distributed to any school district the 164.30 amount which the school district was entitled to receive under 164.31 section 298.32 in 1975. 164.32 (f) Effective for the distribution in 2003 only, five 164.33 percent of the distributions to school districts under 164.34 paragraphs (b), (c), and (e); subdivision 6, paragraph (c); 164.35 subdivision 11; and section 298.225, shall be distributed to the 164.36 general fund. The remainder less any portion distributed to 165.1 cities and towns under section 126C.48, subdivision 8, paragraph 165.2 (5), shall be distributed to the northeast Minnesota economic 165.3 protection trust fund created in section 298.292. Fifty percent 165.4 of the amount distributed to the northeast Minnesota economic 165.5 protection trust fund shall be made available for expenditure 165.6 under section 298.293 as governed by section 298.296. Effective 165.7 in 2003 only, 100 percent of the distributions to school 165.8 districts under section 477A.15 less any portion distributed to 165.9 cities and towns under section 126C.48, subdivision 8, paragraph 165.10 (5), shall be distributed to the general fund. 165.11 Sec. 31. Minnesota Statutes 2002, section 475.61, 165.12 subdivision 4, is amended to read: 165.13 Subd. 4. [SURPLUS FUNDS.] (a) All such taxes shall be 165.14 collected and remitted to the municipality by the county 165.15 treasurer as other taxes are collected and remitted, and shall 165.16 be used only for payment of the obligations on account of which 165.17 levied or to repay advances from other funds used for such 165.18 payments, except that any surplus remaining in the debt service 165.19 fund when the obligations and interest thereon are paid may be 165.20 appropriated to any other general purpose by the municipality. 165.21 However, the amount of any surplus remaining in the debt service 165.22 fund of a school district when the obligations and interest 165.23 thereon are paid shall be used to reduce the general education165.24 fund levy authorized pursuant to section 126C.13chapters 122A, 165.25 123A, 123B, 124D, and 126C and the state aids authorized 165.26 pursuant to chapters 122A, 123A, 123B, 124D, 125A, 126C, and 165.27 127A. 165.28 (b) The reduction to state aids equals the lesser of (1) 165.29 the amount of the surplus times the ratio of the district's debt 165.30 service equalization aid to the district's debt service 165.31 equalization revenue for the last year that the district 165.32 qualified for debt service equalization aid; or (2) the 165.33 district's cumulative amount of debt service equalization aid. 165.34 (c) The reduction to the general educationfund levy equals 165.35 the total amount of the surplus minus the reduction to state 165.36 aids. 166.1 Sec. 32. Laws 1965, chapter 705, as amended by Laws 1975, 166.2 chapter 261, section 4; Laws 1980, chapter 609, article 6, 166.3 section 37; and Laws 1989, chapter 329, article 13, section 18, 166.4 is amended to read: 166.5 Sec. 6. [ST. PAUL SEVERANCE LEVY.] The school board of 166.6 independent school district No. 625, St. Paul, for the purpose 166.7 of providing moneys for the payment of its severance pay 166.8 obligations under a plan approved by resolution of the district, 166.9 in addition to all other powers possessed by the school district 166.10 and in addition to and in excess of any existing limitation upon 166.11 the amount it is otherwise authorized by law to levy as taxes, 166.12 is authorized to levy taxes annually not exceeding in any one 166.13 year an amount equal to a gross tax capacity rate of .17 percent166.14 for taxes payable in 1990 ora net tax capacity rate of .21.34 166.15 percent for taxes payable in 19912002 and thereafter upon all 166.16 taxable property within the school district which taxes as 166.17 levied shall be spread upon the tax rolls, and all corrections 166.18 thereof shall be held by the school district, and allocated 166.19 therefor to be disbursed and expended by the school district in 166.20 payment of any public school severance pay obligations and for 166.21 no other purpose. Disbursements and expenditures previously 166.22 authorized on behalf of the school district for payment of 166.23 severance pay obligations shall not be deemed to constitute any 166.24 part of the cost of the operation and maintenance of the school 166.25 district within the meaning of any statutory limitation of any 166.26 school district expenditures. 166.27 The amount of such severance pay allowable or to become 166.28 payable in respect of any such employment or to any such 166.29 employee shall not exceed the amount permitted by Minnesota 166.30 Statutes, Section 465.72. 166.31 [EFFECTIVE DATE.] This section is effective retroactively 166.32 for taxes payable in 2002 and thereafter. 166.33 Sec. 33. [FUND TRANSFERS.] 166.34 Subdivision 1. [CHISHOLM.] Notwithstanding Minnesota 166.35 Statutes, section 123B.79 or 123B.80, on June 30, 2003, 166.36 independent school district No. 695, Chisholm, may permanently 167.1 transfer up to $500,000 from its reserved operating capital 167.2 account in its general fund to the undesignated general fund 167.3 balance. 167.4 Subd. 2. [SWANVILLE.] Notwithstanding Minnesota Statutes, 167.5 sections 123B.79, 123B.80, and 475.61, subdivision 4, 167.6 independent school district No. 486, Swanville, on June 30, 167.7 2003, may permanently transfer up to $61,000 from its debt 167.8 redemption fund to its capital account in its general fund 167.9 without making an aid or levy reduction. 167.10 Subd. 3. [WESTONKA.] Notwithstanding Minnesota Statutes, 167.11 sections 123B.79, 123B.80, and 475.61, subdivision 4, 167.12 independent school district No. 277, Westonka, on June 30, 2003, 167.13 may permanently transfer the lesser of $170,000 or the actual 167.14 fund balance from its debt redemption fund to its general fund 167.15 without making a levy reduction. 167.16 [EFFECTIVE DATE.] This section is effective the day 167.17 following final enactment. 167.18 Sec. 34. [DIRECTION TO COMMISSIONER.] 167.19 Notwithstanding Minnesota Statutes, section 123B.75, 167.20 subdivision 5, the commissioner shall calculate the property tax 167.21 recognition shift percentage that raises $230,378,000 in fiscal 167.22 year 2004. The commissioner shall apply this percentage to the 167.23 property tax recognition shift in fiscal year 2004 and later. 167.24 Sec. 35. [APPROPRIATIONS.] 167.25 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 167.26 indicated in this section are appropriated from the general fund 167.27 to the department of education for the fiscal years designated. 167.28 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 167.29 according to Minnesota Statutes, section 124D.111, and Code of 167.30 Federal Regulations, title 7, section 210.17: 167.31 $7,800,000 ..... 2004 167.32 $7,950,000 ..... 2005 167.33 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 167.34 MILK.] For traditional school breakfast aid and kindergarten 167.35 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 167.36 $3,088,000 ..... 2004 168.1 $3,217,000 ..... 2005 168.2 Subd. 4. [FAST BREAK TO LEARNING BREAKFAST.] For fast 168.3 break to learning breakfast under Minnesota Statutes, section 168.4 124D.1156: 168.5 $747,000 ..... 2004 168.6 The 2004 appropriation includes $747,000 for 2003 and $0 168.7 for 2004. 168.8 Subd. 5. [SUMMER SCHOOL SERVICE REPLACEMENT AID.] For 168.9 summer food service replacement aid under Minnesota Statutes, 168.10 section 124D.119: 168.11 $150,000 ..... 2004 168.12 $150,000 ..... 2005 168.13 Sec. 36. [REVISOR INSTRUCTION.] 168.14 In the next and subsequent editions of Minnesota Statutes, 168.15 the revisor shall codify section 32 as Minnesota Statutes, 168.16 section 126C.41, subdivision 5. 168.17 Sec. 37. [REPEALER.] 168.18 Minnesota Statutes 2002, sections 93.22, subdivision 2; 168.19 93.223, subdivision 1; 124D.115; 124D.1156; and 127A.41, 168.20 subdivision 6, are repealed. 168.21 ARTICLE 6 168.22 LIBRARIES 168.23 Section 1. Minnesota Statutes 2002, section 134.34, 168.24 subdivision 4, is amended to read: 168.25 Subd. 4. [LIMITATION.] A regional library basic system 168.26 support grant shall not be made to a regional public library 168.27 system for a participating city or county which decreases the 168.28 dollar amount provided for support for operating purposes of 168.29 public library service below 90 percent of the amount provided 168.30 by it for the second preceding year. This subdivision shall not 168.31 apply to participating cities or counties where the adjusted net 168.32 tax capacity of that city or county has decreased, if the dollar 168.33 amount of the reduction in support is not greater than the 168.34 dollar amount by which support would be decreased if the 168.35 reduction in support were made in direct proportion to the 168.36 decrease in adjusted net tax capacity. 169.1 [EFFECTIVE DATE.] This section is effective for grants 169.2 distributed in 2004 and 2005 only. 169.3 Sec. 2. [134.355] [BASIC REGIONAL LIBRARY SYSTEM; 169.4 SUPPORT.] 169.5 Subdivision 1. [APPROPRIATIONS.] Basic system support 169.6 grants and regional library telecommunications aid provide the 169.7 appropriations for the basic regional library system. 169.8 Sec. 3. Minnesota Statutes 2002, section 134.47, 169.9 subdivision 1, is amended to read: 169.10 Subdivision 1. [ELIGIBILITY.] (a) A regional public 169.11 library system may apply for regional library telecommunications 169.12 aid. The aid must be used for data and video access costs and169.13 other related costs to improve or maintain electronic access and169.14 connect the library system with the state information169.15 infrastructure administered by the department of administration169.16 under section 16B.465. Priority shall be given to public169.17 libraries that have not received access., maintenance, 169.18 equipment, or installation of telecommunication lines. To be 169.19 eligible, a regional public library system must be officially 169.20 designated by the commissioner of children, families, and169.21 learningeducation as a regional public library system as 169.22 defined in section 134.34, subdivision 3, and each of its 169.23 participating cities and counties must meet local support levels 169.24 defined in section 134.34, subdivision 1. A public library 169.25 building that receives aid under this section must be open a 169.26 minimum of 20 hours per week. 169.27 (b) Aid received under this section may not be used to169.28 substitute for any existing local funds allocated to provide169.29 electronic access, equipment for library staff or the public, or169.30 local funds dedicated to other library operations.169.31 (c)(b) An application for regional library 169.32 telecommunications aid must, at a minimum, contain information 169.33 to document the following: 169.34 (1) the connections are adequate and employ an open network 169.35 architecture that will ensure interconnectivity and 169.36 interoperability with school districts, post-secondary 170.1 education, or other governmental agencies; 170.2 (2) that the connection is established through the most 170.3 cost-effective means and that the regional library has explored 170.4 and coordinated connections through school districts, 170.5 post-secondary education, or other governmental agencies; 170.6 (3) that the regional library system has filed an e-rate 170.7 application; and 170.8 (4) other information, as determined by the commissioner of 170.9 children, families, and learning, to ensure that connections are 170.10 coordinated, efficient, and cost-effective, take advantage of 170.11 discounts, and meet applicable state standards. 170.12 The library system may include costs associated with 170.13 cooperative arrangements with post-secondary institutions, 170.14 school districts, and other governmental agencies. 170.15 Sec. 4. [APPROPRIATIONS.] 170.16 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 170.17 indicated in this section are appropriated from the general fund 170.18 to the department of education for the fiscal years designated. 170.19 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 170.20 grants under Minnesota Statutes, section 134.355: 170.21 $8,072,000 ..... 2004 170.22 $8,570,000 ..... 2005 170.23 The 2004 appropriation includes $1,456,000 for 2003 and 170.24 $6,616,000 for 2004. 170.25 The 2005 appropriation includes $1,654,000 for 2004 and 170.26 $6,916,000 for 2005. 170.27 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 170.28 regional library telecommunications aid under Minnesota 170.29 Statutes, section 134.355: 170.30 $1,200,000 ..... 2004 170.31 $1,200,000 ..... 2005 170.32 Subd. 4. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 170.33 grants according to Minnesota Statutes, sections 134.353 and 170.34 134.354, to multicounty, multitype library systems: 170.35 $876,000 ..... 2004 170.36 $903,000 ..... 2005 171.1 The 2004 appropriation includes $153,000 for 2003 and 171.2 $723,000 for 2004. 171.3 The 2005 appropriation includes $180,000 for 2004 and 171.4 $723,000 for 2005. 171.5 Subd. 5. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 171.6 licenses to on-line databases selected in cooperation with the 171.7 higher education services office for school media centers, 171.8 public libraries, state government agency libraries, and public 171.9 or private college or university libraries: 171.10 $400,000 ..... 2004 171.11 $400,000 ..... 2005 171.12 Any balance in the first year does not cancel but is 171.13 available in the second year. 171.14 Sec. 5. [REVISOR INSTRUCTION.] 171.15 The revisor of statutes shall renumber each section of 171.16 Minnesota Statutes listed in column A with the number listed in 171.17 column B. The revisor shall also make necessary cross-reference 171.18 changes consistent with the renumbering. 171.19 Column A Column B 171.20 134.35, subd. 1 134.355, subd. 2 171.21 134.35, subd. 2 134.355, subd. 3 171.22 134.35, subd. 3 134.355, subd. 4 171.23 134.35, subd. 4 134.355, subd. 5 171.24 134.35, subd. 5 134.355, subd. 6 171.25 134.35, subd. 6 134.355, subd. 7 171.26 134.47, subd. 1 171.27 paragraph (a) 134.355, subd. 8 171.28 134.47, subd. 1 171.29 paragraph (b) 134.355, subd. 9 171.30 134.47, subd. 2 134.355, subd. 10 171.31 Sec. 6. [REPEALER.] 171.32 The changes made to Minnesota Statutes, section 134.34, 171.33 subdivision 4, in section 1 are repealed effective July 1, 2005. 171.34 ARTICLE 7 171.35 EARLY CHILDHOOD FAMILY SUPPORT 171.36 Section 1. Minnesota Statutes 2002, section 119A.52, is 172.1 amended to read: 172.2 119A.52 [DISTRIBUTION OF APPROPRIATION AND PROGRAM 172.3 COORDINATION.] 172.4 (a)The commissioner of children, families, and learning172.5 education must distribute money appropriated for that purpose to 172.6 Head Start program grantees to expand services and to serve 172.7 additional low-income children. Money must be allocated to each 172.8 project Head Start grantee in existence on the effective date of 172.9 Laws 1989, chapter 282. Migrant and Indian reservation grantees 172.10 must be initially allocated money based on the grantees' share 172.11 of federal funds. The remaining money must be initially 172.12 allocated to the remaining local agencies based equally on the 172.13 agencies' share of federal funds and on the proportion of 172.14 eligible children in the agencies' service area who are not 172.15 currently being served. A Head Start grantee must be funded at 172.16 a per child rate equal to its contracted, federally funded base 172.17 level for program accounts 20, 22, and 25 at the start of the 172.18 fiscal year. In allocating funds under this paragraph, the 172.19 commissioner of children, families, and learningeducation must 172.20 assure that each Head Start grantee is allocated no less funding 172.21 in any fiscal year than was allocated to that grantee in fiscal 172.22 year 1993. The commissioner may provide additional funding to 172.23 grantees for start-up costs incurred by grantees due to the 172.24 increased number of children to be served. Before paying money 172.25 to the grantees, the commissioner must notify each grantee of 172.26 its initial allocation, how the money must be used, and the 172.27 number of low-income children that must be served with the 172.28 allocation. Each grantee must notifypresent a work plan to the 172.29 commissioner offor approval. The work plan must include the 172.30 estimated number of low-income children and families it will be 172.31 able to serve, a description of the program design and service 172.32 delivery area which meets the needs of and encourages access by 172.33 low-income working families, a program design that ensures fair 172.34 and equitable access to Head Start services for all populations 172.35 and parts of the service area, and a plan for coordinating 172.36 services to maximize assistance for child care costs available 173.1 to families under chapter 119B. For any grantee that cannot 173.2 utilize its full allocation, the commissioner must reduce the 173.3 allocation proportionately. Money available after the initial 173.4 allocations are reduced must be redistributed to eligible 173.5 grantees. 173.6 (b) Up to 11 percent of the funds appropriated annually may173.7 be used to provide grants to local Head Start agencies to173.8 provide funds for innovative programs designed either to target173.9 Head Start resources to particular at-risk groups of children or173.10 to provide services in addition to those currently allowable173.11 under federal Head Start regulations. The commissioner must173.12 award funds for innovative programs under this paragraph on a173.13 competitive basis.173.14 Sec. 2. Minnesota Statutes 2002, section 119A.53, is 173.15 amended to read: 173.16 119A.53 [FEDERAL REQUIREMENTS.] 173.17 Grantees and the commissioner of children, families, and173.18 learningshall comply with federal regulations governing the 173.19 federal Head Start program, except for innovative programs173.20 funded under section 119A.52, paragraph (b)funding for 173.21 innovative initiatives under section 119A.52, which may be used 173.22 to operate differently than federal Head Start regulations , and173.23 except that when. If a state statute or regulationrule 173.24 conflicts with a federal statute or regulation, the state 173.25 statute or regulationrule prevails. 173.26 Sec. 3. Minnesota Statutes 2002, section 124D.13, 173.27 subdivision 2, is amended to read: 173.28 Subd. 2. [PROGRAM CHARACTERISTICS.] Early childhood family 173.29 education programs are programs for children in the period of 173.30 life from birth to kindergarten, for the parents of such 173.31 children, and for expectant parents. TheTo the extent that 173.32 funds are insufficient to provide programs for all children, 173.33 early childhood family education programs should emphasize 173.34 programming for a child from birth to age three and encourage 173.35 parents to involve four- and five-year-old children in school 173.36 readiness programs, and other public and nonpublic early 174.1 learning programs. Early childhood family education programs 174.2 may include the following: 174.3 (1) programs to educate parents about the physical, mental, 174.4 and emotional development of children; 174.5 (2) programs to enhance the skills of parents in providing 174.6 for their children's learning and development; 174.7 (3) learning experiences for children and parents that 174.8 promote children's development; 174.9 (4) activities designed to detect children's physical, 174.10 mental, emotional, or behavioral problems that may cause 174.11 learning problems; 174.12 (5) activities and materials designed to encourage 174.13 self-esteem, skills, and behavior that prevent sexual and other 174.14 interpersonal violence; 174.15 (6) educational materials which may be borrowed for home 174.16 use; 174.17 (7) information on related community resources; 174.18 (8) programs to prevent child abuse and neglect; 174.19 (9) other programs or activities to improve the health, 174.20 development, and school readiness of children; or 174.21 (10) activities designed to maximize development during 174.22 infancy. 174.23 The programs must not include activities for children that 174.24 do not require substantial involvement of the children's 174.25 parents. The programs must be reviewed periodically to assure 174.26 the instruction and materials are not racially, culturally, or 174.27 sexually biased. The programs must encourage parents to be 174.28 aware of practices that may affect equitable development of 174.29 children. 174.30 Sec. 4. Minnesota Statutes 2002, section 124D.13, 174.31 subdivision 4, is amended to read: 174.32 Subd. 4. [HOME VISITING PROGRAM.] (a) The commissionerA 174.33 district that levies for home visiting under section 124D.135, 174.34 subdivision 6, shall use this revenue to include as part of the 174.35 early childhood family education programs a parent education 174.36 component to prevent child abuse and neglect. This parent175.1 education component must include:175.2 (1) expanding statewide the home visiting component of the175.3 early childhood family education programs;175.4 (2) training parent educators, child educators, community175.5 outreach workers, and home visitors in the dynamics of child175.6 abuse and neglect and positive parenting and discipline175.7 practices; and175.8 (3) developing and disseminating education and public175.9 information materials that promote positive parenting skills and175.10 prevent child abuse and neglect.175.11 (b) The parent education component must:175.12 (1) offer to isolated or at-risk families home visiting175.13 parent education services that at least address parenting175.14 skills, a child's development and stages of growth,175.15 communication skills, managing stress, problem-solving skills,175.16 positive child discipline practices, methods of improving175.17 parent-child interactions and enhancing self-esteem, using175.18 community support services and other resources, and encouraging175.19 parents to have fun with and enjoy their children;175.20 (2) develop athat is designed to reach isolated or at-risk 175.21 families. 175.22 The home visiting program must use: 175.23 (1) an established risk assessment tool to determine the 175.24 family's level of risk; 175.25 (3)(2) establish clear objectives and protocols for home 175.26 visits; 175.27 (4) determine the frequency and duration of home visits175.28 based on a risk-need assessment of the client, with home visits175.29 beginning in the second trimester of pregnancy and continuing,175.30 based on client need, until a child is six years old;175.31 (5)(3) encourage families to make a transition from home 175.32 visits to site-based parenting programs to build a family175.33 support network and reduce the effects of isolation; 175.34 (6) develop and distribute education materials on175.35 preventing child abuse and neglect that may be used in home175.36 visiting programs and parent education classes and distributed176.1 to the public;176.2 (7) initially provide at least 40 hours of training and176.3 thereafter ongoing training for parent educators, child176.4 educators, community outreach workers, and home visitors that176.5 covers the dynamics of child abuse and neglect, domestic176.6 violence and victimization within family systems, signs of abuse176.7 or other indications that a child may be at risk of being abused176.8 or neglected, what child abuse and neglect are, how to properly176.9 report cases of child abuse and neglect, respect for cultural176.10 preferences in child rearing, what community resources, social176.11 service agencies, and family support activities and programs are176.12 available, child development and growth, parenting skills,176.13 positive child discipline practices, identifying stress factors176.14 and techniques for reducing stress, home visiting techniques,176.15 and risk assessment measures;176.16 (8)(4) provide program services that are community-based, 176.17 accessible, and culturally relevant; and 176.18 (9)(5) foster collaboration among existing agencies and 176.19 community-based organizations that serve young children and 176.20 their families. 176.21 (c)Home visitors should reflect the demographic 176.22 composition of the community the home visitor is servingto the 176.23 extent possible. 176.24 Sec. 5. Minnesota Statutes 2002, section 124D.13, 176.25 subdivision 8, is amended to read: 176.26 Subd. 8. [COORDINATION.] (a) A district is encouraged to176.27 coordinate the program with its special education and vocational176.28 education programs and with related services provided by other176.29 governmental agencies and nonprofit agencies.must describe 176.30 strategies to coordinate and maximize public and private 176.31 community resources and reduce duplication of services. 176.32 (b) A district is encouraged to coordinate adult basic 176.33 education programs provided to parents and early childhood 176.34 family education programs provided to children to accomplish the 176.35 goals of section 124D.895. 176.36 Sec. 6. Minnesota Statutes 2002, section 124D.135, 177.1 subdivision 1, is amended to read: 177.2 Subdivision 1. [REVENUE.] The revenue for early childhood 177.3 family education programs for a school district equals $113.50177.4 for fiscal years 2000 and 2001 and$120 for 2002 and later177.5 fiscal yearsfor fiscal years 2003 and 2004 and $96 for fiscal 177.6 year 2005 and later, times the greater of: 177.7 (1) 150; or 177.8 (2) the number of people under five years of age residing 177.9 in the district on October 1 of the previous school year. 177.10 Sec. 7. Minnesota Statutes 2002, section 124D.135, 177.11 subdivision 8, is amended to read: 177.12 Subd. 8. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 177.13 the average balance, during the most recent three-year period in 177.14 a district's early childhood family education reserve account on 177.15 June 30 of each year, adjusted for any prior reductions under 177.16 this subdivision, must not be greater than 25 percent of the sum 177.17 of the district's maximum early childhood family education 177.18 annual revenue under subdivision 1, excluding adjustments under 177.19 this subdivision, plus any fees, grants, or other revenue 177.20 received by the district for early childhood family education 177.21 programs for the prior year. 177.22 (b) If a district's adjusted average early childhood family 177.23 education reserve over the three-year period is in excess of 25177.24 percent of the prior year annual revenuethe limit under 177.25 paragraph (a), the district's early childhood family education 177.26 state aid and levy authority for the current school year must be 177.27 reduced by the lesser of the current year revenue under 177.28 subdivision 1 or the excess reserve amount. The aid reduction 177.29 equals the product of the lesser of the excess reserve amount or 177.30 the current year revenue under subdivision 1 times the ratio of 177.31 the district's aid for the priorcurrent year under subdivision 177.32 4 to the district's revenue for the priorcurrent year under 177.33 subdivision 1. The levy reduction equals the excess reserve 177.34 amount minus the aid reduction. The commissioner must177.35 reallocate aid and levy reduced under this subdivision to other177.36 eligible early childhood family education programs in proportion178.1 to each district's revenue for the prior year under subdivision178.2 1.For purposes of this paragraph, if a district does not levy 178.3 the entire amount permitted under subdivision 3, the revenue 178.4 under subdivision 1 must be reduced in proportion to the actual 178.5 amount levied. 178.6 (b)(c) Notwithstanding paragraph (a), for fiscal year 178.7 2003, the excess reserve amount shall be computed using the 178.8 balance in a district's early childhood family education reserve 178.9 account on June 30, 2002. For fiscal year 2004, the excess 178.10 reserve amount shall be computed using the adjusted average 178.11 balance in a district's early childhood family education reserve 178.12 account on June 30, 2002, and June 30, 2003. 178.13 [EFFECTIVE DATE.] This section is effective for revenue for 178.14 fiscal year 2003. 178.15 Sec. 8. Minnesota Statutes 2002, section 124D.15, 178.16 subdivision 7, is amended to read: 178.17 Subd. 7. [ADVISORY COUNCIL.] Each school readiness program 178.18 must have an advisory council composed of members of existing 178.19 early education-related boards, parents of participating 178.20 children, child care providers, culturally specific service 178.21 organizations, local resource and referral agencies, local early 178.22 intervention committees, and representatives of early childhood 178.23 service providers. The council must advise the board in 178.24 creating and administering the program and must monitor the 178.25 progress of the program. The council must ensure that children 178.26 at greatest risk receive appropriate services. If the board is 178.27 unable to appoint to the advisory council members of existing 178.28 early education-related boards, it must appoint parents of 178.29 children enrolled in the program who represent the racial, 178.30 cultural, and economic diversity of the district and 178.31 representatives of early childhood service providers as 178.32 representatives to an existing advisory council. 178.33 Sec. 9. Minnesota Statutes 2002, section 124D.16, 178.34 subdivision 1, is amended to read: 178.35 Subdivision 1. [PROGRAM REVIEW AND APPROVAL.] A school 178.36 district shall biennially by May 1 submit to the commissioners 179.1 of children, families, and learningeducation and health the 179.2 program plan required under this subdivision. As determined by 179.3 the commissioners, one-half of the districts shall first submit 179.4 the plan by May 1 of the 2000-2001 school year and one-half of 179.5 the districts shall first submit the plan by May 1 of the 179.6 2001-2002 school year. The program plan must include: 179.7 (1) a description of the services to be provided; 179.8 (2) a plan to ensure children at greatest risk receive 179.9 appropriate services; 179.10 (3) a description of procedures and methods to be used179.11 strategies to coordinate and maximize public and private 179.12 community resources to maximize use of existing community179.13 resources, including school districts, health care facilities,179.14 government agencies, neighborhood organizations, and other179.15 resources knowledgeable in early childhood developmentand 179.16 reduce duplication of services; 179.17 (4) comments about the district's proposed program by the 179.18 advisory council required by section 124D.15, subdivision 7; and 179.19 (5) agreements with all participating service providers. 179.20 Each commissioner may review and comment on the program, 179.21 and make recommendations to the commissioner of children,179.22 families, and learningeducation, within 3090 days of receiving 179.23 the plan. 179.24 Sec. 10. Minnesota Statutes 2002, section 124D.16, 179.25 subdivision 6, is amended to read: 179.26 Subd. 6. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 179.27 the average balance, during the most recent three-year period, 179.28 in a district's school readiness reserve account on June 30 of 179.29 each year, adjusted for any prior reductions under this 179.30 subdivision, must not be greater than 25 percent of the 179.31 district's school readiness annual revenue for the prior year, 179.32 excluding adjustments under this subdivision. 179.33 (b) If a district's adjusted average school readiness 179.34 reserve over the three-year period is in excess of 25 percent of179.35 the prior year annual revenuethe limit under paragraph (a), the 179.36 district's current year school readiness state aid must be 180.1 reduced by the lesser of the excess reserve amount or the 180.2 current year aid. The commissioner must reallocate aid reduced180.3 under this subdivision to other eligible school readiness180.4 programs in proportion to each district's aid for the prior year180.5 under subdivision 2.180.6 (b)(c) Notwithstanding paragraph (a), for fiscal year 180.7 2003, the excess reserve amount shall be computed using the 180.8 balance in a district's school readiness reserve account on June 180.9 30, 2002. For fiscal year 2004, the excess reserve amount shall 180.10 be computed using the adjusted average balance in a district's 180.11 school readiness reserve account on June 30, 2002, and June 30, 180.12 2003. 180.13 [EFFECTIVE DATE.] This section is effective for revenue for 180.14 fiscal year 2003. 180.15 Sec. 11. [APPROPRIATIONS.] 180.16 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 180.17 indicated in this section are appropriated from the general fund 180.18 to the department of education for the fiscal years designated. 180.19 Subd. 2. [SCHOOL READINESS.] For revenue for school 180.20 readiness programs under Minnesota Statutes, sections 124D.15 180.21 and 124D.16: 180.22 $ 9,536,000 ..... 2004 180.23 $ 9,258,000 ..... 2005 180.24 The 2004 appropriation includes $1,605,000 for 2003 and 180.25 $7,931,000 for 2004. 180.26 The 2005 appropriation includes $1,982,000 for 2004 and 180.27 $7,276,000 for 2005. 180.28 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 180.29 childhood family education aid under Minnesota Statutes, section 180.30 124D.135: 180.31 $19,675,000 ..... 2004 180.32 $15,129,000 ..... 2005 180.33 The 2004 appropriation includes $3,239,000 for 2003 and 180.34 $16,436,000 for 2004. 180.35 The 2005 appropriation includes $4,109,000 for 2004 and 180.36 $11,020,000 for 2005. 181.1 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 181.2 health and developmental screening aid under Minnesota Statutes, 181.3 sections 121A.17 and 121A.19: 181.4 $2,581,000 ..... 2004 181.5 $2,661,000 ..... 2005 181.6 The 2004 appropriation includes $452,000 for 2003 and 181.7 $2,129,000 for 2004. 181.8 The 2005 appropriation includes $532,000 for 2004 and 181.9 $2,129,000 for 2005. 181.10 Subd. 5. [HEAD START PROGRAM.] For Head Start programs 181.11 under Minnesota Statutes, section 119A.52: 181.12 $16,475,000 ..... 2004 181.13 $17,100,000 ..... 2005 181.14 Sec. 12. [REPEALER.] 181.15 Minnesota Statutes 2002, section 124D.17, is repealed. 181.16 ARTICLE 8 181.17 PREVENTION 181.18 Section 1. Minnesota Statutes 2002, section 124D.19, 181.19 subdivision 3, is amended to read: 181.20 Subd. 3. [COMMUNITY EDUCATION DIRECTOR.] (a) Except as 181.21 provided under paragraphs (b) and (c), each board shall employ a 181.22 licensed community education director. The board shall submit 181.23 the name of the person who is serving as director of community 181.24 education under this section on the district's annual community 181.25 education report to the commissioner. 181.26 (b) A board may apply to the commissionerMinnesota board 181.27 of school administrators under Minnesota Rules, part 3512.3500, 181.28 subpart 9, for authority to use an individual who is not 181.29 licensed as a community education director. 181.30 (c) A board of a district with a total population of 2,000 181.31 or less may identify an employee who holds a valid Minnesota 181.32 principal or superintendent license under Minnesota Rules, 181.33 chapter 3512, to serve as director of community education. To 181.34 be eligible for an exception under this paragraph, the board 181.35 shall certify in writing to the commissioner that the district 181.36 has not placed a licensed director of community education on 182.1 unrequested leave. 182.2 Sec. 2. Minnesota Statutes 2002, section 124D.20, 182.3 subdivision 3, is amended to read: 182.4 Subd. 3. [GENERAL COMMUNITY EDUCATION REVENUE.] The 182.5 general community education revenue for a district equals 182.6 $5.95 for fiscal year 2003 and 2004 and $5.23 for fiscal year 182.7 2005 and later, times the greater of 1,335 or the population of 182.8 the district. The population of the district is determined 182.9 according to section 275.14. 182.10 [EFFECTIVE DATE.] This section is effective for revenue for 182.11 fiscal year 2005. 182.12 Sec. 3. Minnesota Statutes 2002, section 124D.20, 182.13 subdivision 5, is amended to read: 182.14 Subd. 5. [TOTAL COMMUNITY EDUCATION LEVY.] To obtain total 182.15 community education revenue, a district operating a youth182.16 after-school enrichment program under section 124D.19,182.17 subdivision 12,may levy the amount raised by a maximum tax rate 182.18 of .7431.985 percent times the adjusted net tax capacity of the 182.19 district. To obtain total community education revenue, a182.20 district not operating a youth after-school enrichment program182.21 may levy the amount raised by a maximum tax rate of .4795182.22 percent times the adjusted net tax capacity of the district.If 182.23 the amount of the total community education levy would exceed 182.24 the total community education revenue, the total community 182.25 education levy shall be determined according to subdivision 6. 182.26 [EFFECTIVE DATE.] This section is effective for revenue for 182.27 fiscal year 2005. 182.28 Sec. 4. Minnesota Statutes 2002, section 124D.20, is 182.29 amended by adding a subdivision to read: 182.30 Subd. 11. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 182.31 the sum of the average balances during the most recent 182.32 three-year period in a district's community education reserve 182.33 account and unreserved/undesignated community service fund 182.34 account on June 30 of each year, adjusted for any prior 182.35 reductions under this subdivision, must not be greater than 25 182.36 percent of the sum of the district's maximum total community 183.1 education revenue under subdivision 1, excluding adjustments 183.2 under this subdivision, plus the district's additional community 183.3 education levy under section 124D.21, plus any fees, grants, or 183.4 other revenue received by the district for community education 183.5 programs for the prior year. For purposes of this paragraph, 183.6 "community education programs" means programs according to 183.7 subdivisions 8, paragraph (a), and 9, and section 124D.19, 183.8 subdivision 12, excluding early childhood family education 183.9 programs under section 124D.13, school readiness programs under 183.10 sections 124D.15 and 124D.17, and adult basic education programs 183.11 under section 124D.52. 183.12 (b) If the sum of the average balances during the most 183.13 recent three-year period in a district's community education 183.14 reserve account and unreserved/undesignated community service 183.15 fund account on June 30 of each year, adjusted for any prior 183.16 reductions under this subdivision, is in excess of the limit 183.17 under paragraph (a), the district's community education state 183.18 aid and levy authority for the current school year must be 183.19 reduced by the lesser of the current year revenue under 183.20 subdivision 1 or the excess reserve amount. The aid reduction 183.21 equals the product of the lesser of the excess reserve amount or 183.22 the current year revenue under subdivision 1 times the ratio of 183.23 the district's aid for the current year under subdivision 7 to 183.24 the district's revenue for the current year under subdivision 183.25 1. The levy reduction equals the excess reserve amount minus 183.26 the aid reduction. For purposes of this paragraph, if a 183.27 district does not levy the entire amount permitted under 183.28 subdivision 5 or 6, the revenue under subdivision 1 must be 183.29 reduced in proportion to the actual amount levied. 183.30 (c) Notwithstanding paragraph (a), for fiscal year 2003, 183.31 the excess reserve amount shall be computed using the balances 183.32 in a district's community education reserve account and 183.33 unreserved/undesignated community service fund account on June 183.34 30, 2002. For fiscal year 2004, the excess reserve amount shall 183.35 be computed using the adjusted average balances in a district's 183.36 community education reserve account and unreserved/undesignated 184.1 community service fund account on June 30, 2002, and June 30, 184.2 2003. 184.3 [EFFECTIVE DATE.] This section is effective for revenue for 184.4 fiscal year 2003. 184.5 Sec. 5. Minnesota Statutes 2002, section 124D.20, is 184.6 amended by adding a subdivision to read: 184.7 Subd. 12. [WAIVER.] (a) If a district anticipates that the 184.8 reserve account may exceed the 25 percent limit established 184.9 under subdivision 11 because of extenuating circumstances, prior 184.10 approval to exceed the limit must be obtained in writing from 184.11 the commissioner. 184.12 (b) Notwithstanding paragraph (a), for fiscal year 2003, a 184.13 district may submit a waiver request within 30 days of the date 184.14 of final enactment. 184.15 [EFFECTIVE DATE.] This section is effective the day 184.16 following final enactment for revenue for fiscal year 2003. 184.17 Sec. 6. Minnesota Statutes 2002, section 124D.22, 184.18 subdivision 3, is amended to read: 184.19 Subd. 3. [SCHOOL-AGE CARE LEVY.] To obtain school-age care 184.20 revenue, a school district may levy an amount equal to the 184.21 district's school-age care revenue as defined in subdivision 2 184.22 multiplied by the lesser of one, or the ratio of the quotient 184.23 derived by dividing the adjusted net tax capacity of the 184.24 district for the year before the year the levy is certified by 184.25 the resident pupil units in the district for the school year to 184.26 which the levy is attributable, to $3,280$2,433. 184.27 Sec. 7. [APPROPRIATIONS.] 184.28 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 184.29 indicated in this section are appropriated from the general fund 184.30 to the department of education for the fiscal years designated. 184.31 Subd. 2. [COMMUNITY EDUCATION AID.] For community 184.32 education aid under Minnesota Statutes, section 124D.20: 184.33 $5,495,000 ..... 2004 184.34 $3,406,000 ..... 2005 184.35 The 2004 appropriation includes $956,000 for 2003 and 184.36 $4,539,000 for 2004. 185.1 The 2005 appropriation includes $1,134,000 for 2004 and 185.2 $2,272,000 for 2005. 185.3 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 185.4 adults with disabilities programs under Minnesota Statutes, 185.5 section 124D.56: 185.6 $688,000 ..... 2004 185.7 $710,000 ..... 2005 185.8 The 2004 appropriation includes $120,000 for 2003 and 185.9 $568,000 for 2004. 185.10 The 2005 appropriation includes $142,000 for 2004 and 185.11 $568,000 for 2005. 185.12 Subd. 4. [HEARING-IMPAIRED ADULTS.] For programs for 185.13 hearing-impaired adults under Minnesota Statutes, section 185.14 124D.57: 185.15 $70,000 ..... 2004 185.16 $70,000 ..... 2005 185.17 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day care 185.18 aid under Minnesota Statutes, section 124D.22: 185.19 $41,000 ..... 2004 185.20 $22,000 ..... 2005 185.21 The 2004 appropriation includes $14,000 for 2003 and 185.22 $27,000 for 2004. 185.23 The 2005 appropriation includes $6,000 for 2004 and $16,000 185.24 for 2005. 185.25 Sec. 8. [REPEALER.] 185.26 Minnesota Statutes 2002, sections 124D.21; 124D.221; 185.27 124D.93; and 144.401, subdivision 5, are repealed. 185.28 ARTICLE 9 185.29 SELF-SUFFICIENCY AND LIFE LONG LEARNING 185.30 Section 1. Minnesota Statutes 2002, section 124D.52, 185.31 subdivision 1, is amended to read: 185.32 Subdivision 1. [PROGRAM REQUIREMENTS.] (a) An adult basic 185.33 education program is a day or evening program offered by a 185.34 district that is for people over 16 years of age who do not 185.35 attend an elementary or secondary school. The program offers 185.36 academic instruction necessary to earn a high school diploma or 186.1 equivalency certificate. Tuition and fees may not be charged to186.2 a learner for instruction paid under this section, except for186.3 (b) Notwithstanding any law to the contrary, a school board 186.4 or the governing body of a consortium offering an adult basic 186.5 education program may adopt a sliding fee schedule based on a 186.6 family's income, but must waive the fee for participants who are 186.7 under the age of 21 or unable to pay. The fees charged must be 186.8 designed to enable individuals of all socioeconomic levels to 186.9 participate in the program. A program may charge a security 186.10 deposit to assure return of materials, supplies, and equipment. 186.11 (c) Each approved adult basic education program must 186.12 develop a memorandum of understanding with the local workforce 186.13 development centers located in the approved program's service 186.14 delivery area. The memorandum of understanding must describe 186.15 how the adult basic education program and the workforce 186.16 development centers will cooperate and coordinate services to 186.17 provide unduplicated, efficient, and effective services to 186.18 clients. 186.19 (d) Adult basic education aid must be spent for adult basic 186.20 education purposes as specified in sections 124D.518 to 124D.531. 186.21 Sec. 2. Minnesota Statutes 2002, section 124D.52, 186.22 subdivision 3, is amended to read: 186.23 Subd. 3. [ACCOUNTS; REVENUE; AID.] (a) Each district, 186.24 group of districts, or private nonprofit organization providing 186.25 adult basic education programs must establish and 186.26 maintain accounts separate from all other district accountsa 186.27 reserve account within the community service fund for the 186.28 receipt and disbursement of all funds related to these 186.29 programs. All revenue received pursuant to this section must be 186.30 utilized solely for the purposes of adult basic education 186.31 programs. State aid must not equal more than 100 percent of the 186.32 unreimbursed expenses of providing these programs, excluding 186.33 in-kind costs. 186.34 (b) Notwithstanding section 123A.26 or any other law to the 186.35 contrary, an adult basic education consortium providing an 186.36 approved adult basic education program may be its own fiscal 187.1 agent and is eligible to receive state-aid payments directly 187.2 from the commissioner. 187.3 Sec. 3. Minnesota Statutes 2002, section 124D.531, 187.4 subdivision 1, is amended to read: 187.5 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 187.6 (a) The state total adult basic education aid for fiscal year 187.7 20012004 equals $30,157,000$34,388,000. The state total adult 187.8 basic education aid for fiscal year 2005 and later is 187.9 $36,509,000. The state total adult basic education aid for187.10 later years equals:187.11 (1) the state total adult basic education aid for the187.12 preceding fiscal year; times187.13 (2) the lesser of:187.14 (i) 1.08, or187.15 (ii) the greater of 1.00 or the ratio of the state total187.16 contact hours in the first prior program year to the state total187.17 contact hours in the second prior program year.Beginning in 187.18 fiscal year 2002, two percent of the state total adult basic 187.19 education aid must be set aside for adult basic education 187.20 supplemental service grants under section 124D.522. 187.21 (b) The state total adult basic education aid, excluding 187.22 basic population aid, equals the difference between the amount 187.23 computed in paragraph (a), and the state total basic population 187.24 aid under subdivision 2. 187.25 Sec. 4. Minnesota Statutes 2002, section 124D.531, 187.26 subdivision 2, is amended to read: 187.27 Subd. 2. [BASIC POPULATION AID.] A district is eligible 187.28 for basic population aid if the district has a basic service 187.29 level approved by the commissioner under section 124D.52, 187.30 subdivision 5, or is a member of a consortium with an approved 187.31 basic service level. Basic population aid is equal to the 187.32 greater of $4,000$3,844 or $1.80$1.73 times the population of 187.33 the district. District population is determined according to 187.34 section 275.14. 187.35 Sec. 5. Minnesota Statutes 2002, section 124D.531, 187.36 subdivision 4, is amended to read: 188.1 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 188.2 Notwithstanding subdivisions 2 and 3, the total adult basic 188.3 education aid for a program per prior year contact hour must not 188.4 exceed four times the rate$21 per prior year contact hour 188.5 computed under subdivision 3, clause (2). 188.6 (b) For fiscal year 2004, the aid for a program under 188.7 subdivision 3, clause (2), adjusted for changes in program 188.8 membership, must not exceed the aid for that program under 188.9 subdivision 3, clause (2), for fiscal year 2003 by more than the 188.10 greater of eight percent or $10,000. 188.11 (c) For fiscal year 2005, the aid for a program under 188.12 subdivision 3, clause (2), adjusted for changes in program 188.13 membership, must not exceed the sum of the aid for that program 188.14 under subdivision 3, clause (2), and section 8, paragraph (a), 188.15 for the preceding fiscal year by more than the greater of eight 188.16 percent or $10,000. 188.17 (d) For fiscal year 20022006 and later, the aid for a 188.18 program under subdivision 3, clause (2), adjusted for changes in 188.19 program membership, must not exceed the aid for that program 188.20 under subdivision 3, clause (2), for the first preceding fiscal 188.21 year by more than the greater of 17eight percent or 188.22 $20,000$10,000. 188.23 (c)(d) Adult basic education aid is payable to a program 188.24 for unreimbursed costs. 188.25 Sec. 6. Minnesota Statutes 2002, section 124D.531, 188.26 subdivision 7, is amended to read: 188.27 Subd. 7. [PROGRAM AUDITS.] Programs that receive aid under 188.28 this section must maintain records that support the aid 188.29 payments. The commissioner may audit these records upon 188.30 request. The commissioner must establish procedures for 188.31 conducting fiscal audits of adult basic education programs 188.32 according to the schedule in this subdivision. In calendar year188.33 2003, the commissioner must audit one-half of approved adult188.34 basic education programs that received aid for fiscal year 2002,188.35 and in calendar year 2004, the commissioner must audit the188.36 remaining unaudited programs for aid received in fiscal year189.1 2003. Beginning with fiscal year 2005, the commissioner must,189.2 at a minimum, audit each adult basic education program once189.3 every five years. The commissioner must establish procedures to 189.4 reconcile any discrepancies between aid payments based on 189.5 information reported to the commissioner and aid estimates based 189.6 on a program audit. 189.7 Sec. 7. [ADULT BASIC EDUCATION PROGRAM APPROVAL AND AID, 189.8 FISCAL YEAR 2004.] 189.9 (a) Notwithstanding Minnesota Statutes 2002, section 189.10 124D.54, subdivision 2, a district or consortium of districts 189.11 that provided a program funded under Minnesota Statutes 2002, 189.12 section 124D.54, in fiscal year 2003 may request an extension of 189.13 the application deadline for approval of an adult basic 189.14 education program for fiscal year 2004. 189.15 (b) For purposes of computing the fiscal year 2005 adult 189.16 basic education aid for a program under Minnesota Statutes, 189.17 section 124D.531, subdivision 3, clause (2), the contact hours 189.18 for students participating in the program during the first prior 189.19 program year must be increased by 17 percent of the adult 189.20 graduation aid average daily attendance for fiscal year 2002. 189.21 Sec. 8. [ADULT BASIC EDUCATION TRANSITION AID.] 189.22 (a) For fiscal year 2004, adult basic education transition 189.23 aid for each qualifying district equals the district's adult 189.24 high school graduation aid for fiscal year 2002. This aid 189.25 amount must be used to provide an adult basic education program 189.26 under Minnesota Statutes, section 124D.52. To qualify for aid 189.27 under this section a district must establish or join an approved 189.28 adult basic education program according to Minnesota Statutes, 189.29 section 124D.52, subdivision 2. 189.30 (b) For fiscal year 2005, the adult high school graduation 189.31 aid program is eliminated. 189.32 Sec. 9. [APPROPRIATIONS.] 189.33 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 189.34 indicated in this section are appropriated from the general fund 189.35 to the department of education for the fiscal years designated. 189.36 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 190.1 education aid under Minnesota Statutes, section 124D.52, in 190.2 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 190.3 fiscal year 2005: 190.4 $33,153,000 ..... 2004 190.5 $35,823,000 ..... 2005 190.6 The 2004 appropriation includes $5,905,000 for 2003 and 190.7 $27,248,000 for 2004. 190.8 The 2005 appropriation includes $6,811,000 for 2004 and 190.9 $29,012,000 for 2005. 190.10 Subd. 3. [ADULT GRADUATION AID.] For adult graduation aid 190.11 under Minnesota Statutes, section 124D.54: 190.12 $2,094,000 ..... 2004 190.13 $ 424,000 ..... 2005 190.14 The 2004 appropriation includes $396,000 for 2003 and 190.15 $1,698,000 for 2004. 190.16 The 2005 appropriation includes $424,000 for 2004 and $0 190.17 for 2005. 190.18 Subd. 4. [GED TESTS.] For payment of 60 percent of the 190.19 costs of GED tests under Laws 1993, chapter 224, article 4, 190.20 section 44, subdivision 10: 190.21 $125,000 ..... 2004 190.22 $125,000 ..... 2005 190.23 Subd. 5. [LEAD ABATEMENT.] For lead abatement according to 190.24 Minnesota Statutes, section 119A.46: 190.25 $ 100,000 ..... 2004 190.26 $ 100,000 ..... 2005 190.27 Any balance in the first year does not cancel but is 190.28 available in the second year. 190.29 Sec. 10. [REPEALER.] 190.30 Minnesota Statutes 2002, sections 124D.09, subdivision 15; 190.31 124D.54; and 126C.05, subdivision 12, are repealed. 190.32 ARTICLE 10 190.33 STATE AGENCIES 190.34 Section 1. Minnesota Statutes 2002, section 122A.09, 190.35 subdivision 10, is amended to read: 190.36 Subd. 10. [VARIANCES.] (a) Notwithstanding subdivision 9 191.1 and section 14.05, subdivision 4, the board of teaching may 191.2 grant a variance to its rules upon application by a school 191.3 district for purposes of implementing experimental programs in 191.4 learning or management. 191.5 (b) To enable a school district to meet the needs of 191.6 students enrolled in an alternative education program and to 191.7 enable licensed teachers instructing those students to satisfy 191.8 content area licensure requirements, the board of teaching 191.9 annually may permit a licensed teacher teaching in an 191.10 alternative education program to instruct students in a content 191.11 area for which the teacher is not licensed, consistent with 191.12 paragraph (a). 191.13 [EFFECTIVE DATE.] This section is effective the day 191.14 following final enactment. 191.15 Sec. 2. Minnesota Statutes 2002, section 122A.12, 191.16 subdivision 1, is amended to read: 191.17 Subdivision 1. [MEMBERSHIP.] A board of school 191.18 administrators is established and must consist of nineten 191.19 members appointed by the governor with the advice and consent of 191.20 the senate, including at least: 191.21 (1) one elementary school principal; 191.22 (2) one secondary school principal; 191.23 (3) one higher education faculty member in an educational 191.24 administration program approved by the board; 191.25 (4) one higher education administrator for an educational 191.26 administration program approved by the board; 191.27 (5) one school superintendent; 191.28 (6) one classroom teacher; 191.29 (7) one community education director or a; 191.30 (8) one special education director; and 191.31 (8)(9) two members of the public, one of whom must be a 191.32 present or former school board member. 191.33 In making appointments, the governor shall solicit 191.34 recommendations from groups representing persons in clauses (1) 191.35 to (8)(9). 191.36 [EFFECTIVE DATE.] This section is effective the day 192.1 following final enactment. 192.2 Sec. 3. Minnesota Statutes 2002, section 122A.12, 192.3 subdivision 2, is amended to read: 192.4 Subd. 2. [TERMS; COMPENSATION; REMOVAL; ADMINISTRATION.] 192.5 Membership terms, removal of members, and the filling of 192.6 membership vacancies are as provided in section 214.09. The 192.7 terms of the initial board members must be determined by lot as 192.8 follows: 192.9 (1) three members must be appointed for terms that expire 192.10 August 1, 2002; 192.11 (2) three members must be appointed for terms that expire 192.12 August 1, 2003; and 192.13 (3) threefour members must be appointed for terms that 192.14 expire August 1, 2004. 192.15 Members shall not receive the daily payment under section 192.16 214.09, subdivision 3. The public employer of a member shall 192.17 not reduce the member's compensation or benefits for the 192.18 member's absence from employment when engaging in the business 192.19 of the board. The provision of staff, administrative services, 192.20 and office space; the review and processing of complaints; the 192.21 setting of fees; the selection and duties of an executive 192.22 secretary to serve the board; and other provisions relating to 192.23 board operations are as provided in chapter 214. Fiscal year 192.24 and reporting requirements are as provided in sections 214.07 192.25 and 214.08. 192.26 [EFFECTIVE DATE.] This section is effective the day 192.27 following final enactment. 192.28 Sec. 4. Minnesota Statutes 2002, section 122A.18, 192.29 subdivision 7a, is amended to read: 192.30 Subd. 7a. [PERMISSION TO SUBSTITUTE TEACH.] (a) The board 192.31 of teaching may allow a person who is enrolled in and making 192.32 satisfactory progress in a board-approved teacher program and 192.33 who has successfully completed student teaching to be employed 192.34 as a short-call substitute teacher. 192.35 (b) The board of teaching may issue a lifetime qualified 192.36 short-call substitute teaching license to a person who: 193.1 (1) was a qualified teacher under section 122A.16 while 193.2 holding a continuing five-year teaching license issued by the 193.3 board, and receives a retirement annuity from the teachers 193.4 retirement association, Minneapolis teachers retirement fund 193.5 association, St. Paul teachers retirement fund association, or 193.6 Duluth teachers retirement fund association; 193.7 (2) holds an out-of-state teaching license and receives a 193.8 retirement annuity as a result of the person's teaching 193.9 experience; or 193.10 (3) held a continuing five-year license issued by the 193.11 board, taught at least three school years in an accredited 193.12 nonpublic school in Minnesota, and receives a retirement annuity 193.13 as a result of the person's teaching experience. 193.14 A person holding a lifetime qualified short-call substitute 193.15 teaching license is not required to complete continuing 193.16 education clock hours. A person holding this license may 193.17 reapply to the board for a continuing five-year license and must 193.18 again complete continuing education clock hours one school year 193.19 after receiving the continuing five-year license. 193.20 [EFFECTIVE DATE.] This section is effective for the 193.21 2003-2004 school year. 193.22 Sec. 5. Minnesota Statutes 2002, section 122A.21, is 193.23 amended to read: 193.24 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 193.25 Each application for the issuance, renewal, or extension of 193.26 a license to teach must be accompanied by a processing fee in an193.27 amount set by the board of teaching by ruleof $57. Each 193.28 application for issuing, renewing, or extending the license of a 193.29 school administrator or supervisor must be accompanied by a 193.30 processing fee in the amount set by the board of teaching. The 193.31 processing fee for a teacher's license and for the licenses of 193.32 supervisory personnel must be paid to the executive secretary of 193.33 the appropriate board. The executive secretary of the board 193.34 shall deposit the fees with the state treasurer, as provided by 193.35 law, and report each month to the commissioner of finance the 193.36 amount of fees collected. The fees as set by the board are 194.1 nonrefundable for applicants not qualifying for a license. 194.2 However, a fee must be refunded by the state treasurer in any 194.3 case in which the applicant already holds a valid unexpired 194.4 license. The board may waive or reduce fees for applicants who 194.5 apply at the same time for more than one license. 194.6 Sec. 6. Minnesota Statutes 2002, section 122A.22, is 194.7 amended to read: 194.8 122A.22 [DISTRICT RECORDINGVERIFICATION OF TEACHER 194.9 LICENSES.] 194.10 No person shall be accounted a qualified teacher until the 194.11 person has filed for record with the district superintendent194.12 where the person intends to teach a license, or certified copy194.13 of a license, authorizing the person to teach school in the194.14 district school systemschool district or charter school 194.15 contracting with the person for teaching services verifies 194.16 through the Minnesota education licensing system available on 194.17 the department Web site that the person is a qualified teacher, 194.18 consistent with sections 122A.16 and 122A.44, subdivision 1. 194.19 [EFFECTIVE DATE.] This section is effective for the 194.20 2003-2004 school year and later. 194.21 Sec. 7. Minnesota Statutes 2002, section 169.26, 194.22 subdivision 3, is amended to read: 194.23 Subd. 3. [DRIVER TRAINING.] All driver education courses 194.24 approved by the commissioner of children, families, and learning194.25 andthe commissioner of public safety must include instruction 194.26 on railroad-highway grade crossing safety. The commissioner of194.27 children, families, and learning and thecommissioner of public 194.28 safety shall by rule establish minimum standards of course 194.29 content relating to operation of vehicles at railroad-highway 194.30 grade crossings. 194.31 Sec. 8. Minnesota Statutes 2002, section 169.973, 194.32 subdivision 1, is amended to read: 194.33 Subdivision 1. [COMMISSIONER'S AUTHORITY; RULES; 194.34 CURRICULUM.] The commissioner of public safety shall supervise 194.35 the administration and conduct of driver improvement clinics and 194.36 youth-oriented driver improvement clinics. The commissioner of 195.1 public safety shall promulgate rules setting forth standards for 195.2 the curriculum and mode of instruction of driver improvement 195.3 clinics and youth-oriented driver improvement clinics and such 195.4 other matters as the commissioner of public safety considers 195.5 necessary for the proper administration of such clinics. In the 195.6 preparation of such standards the commissioner of public safety 195.7 shall consult with the commissioner of children, families, and195.8 learning andstate associations of judges. A driver improvement 195.9 clinic established under sections 169.971 to 169.973 and 171.20, 195.10 subdivision 3, shall conform to the standards promulgated by the 195.11 commissioner of public safety. The course of study at a driver 195.12 improvement clinic and youth-oriented driver improvement clinic 195.13 may not exceed a cumulative total of nine hours with no single 195.14 class session lasting more than three hours. The course of 195.15 study at a driver improvement clinic and youth-oriented driver 195.16 improvement clinic shall include instruction in railroad 195.17 crossing safety. 195.18 Sec. 9. Minnesota Statutes 2002, section 178.02, 195.19 subdivision 1, is amended to read: 195.20 Subdivision 1. [MEMBERS.] The commissioner of labor and 195.21 industry, hereinafter called the commissioner, shall appoint an 195.22 apprenticeship advisory council, hereinafter referred to as the 195.23 council, composed of three representatives each from employer 195.24 and employee organizations, and two representatives of the 195.25 general public. The assistant commissionerdirector of 195.26 children, families, and learningeducation responsible for 195.27 vocationalcareer and technical education or designee shall be 195.28 an ex officio member of the council and shall serve in an 195.29 advisory capacity only. 195.30 Sec. 10. [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 195.31 Subdivision 1. [DEPARTMENT OF EDUCATION.] Unless otherwise 195.32 indicated, the sums indicated in this section are appropriated 195.33 from the general fund to the department of education for the 195.34 fiscal years designated. 195.35 Subd. 2. [DEPARTMENT.] (a) For the department of education: 195.36 $23,653,000 ..... 2004 196.1 $23,653,000 ..... 2005 196.2 Any balance in the first year does not cancel but is 196.3 available in the second year. 196.4 (b) $260,000 each year is for the Minnesota children's 196.5 museum. 196.6 (c) $41,000 each year is for the Minnesota academy of 196.7 science. 196.8 (d) $237,000 of the balance in the state education 196.9 courseware development account in the state government special 196.10 revenue fund as of July 1, 2004, is canceled to the general fund. 196.11 (e) $160,000 of the balance in the state item bank 196.12 revolving account in the state government special revenue fund 196.13 as of July 1, 2004, is canceled to the general fund. 196.14 (f) $621,000 each year is for the board of teaching. 196.15 (g) $165,000 each year is for the board of school 196.16 administrators. 196.17 (h) The commissioner is encouraged to give priority 196.18 consideration to the Minnesota humanities commission when 196.19 issuing grants for professional development of teachers or 196.20 content development from best practices, Federal Title II, Part 196.21 A, Federal Title V, Part A, or other appropriate grant resources 196.22 that have a stated objective of improvement of teacher 196.23 performance. 196.24 (i) An additional $96,000 in fiscal year 2004 and $96,000 196.25 in fiscal year 2005 are appropriated from the special revenue 196.26 fund under Minnesota Statutes, section 517.08, subdivision 1c, 196.27 for family visitation centers. Any balance in the first year 196.28 does not cancel but is available for the second year. 196.29 Subd. 3. [FEDERAL GRANTS AND AIDS.] The expenditures of 196.30 federal grants and aids as shown in the biennial budget document 196.31 and its supplements are approved and appropriated and shall be 196.32 spent as indicated. 196.33 Sec. 11. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 196.34 The sums indicated in this section are appropriated from 196.35 the general fund to the Minnesota state academies for the deaf 196.36 and the blind for the fiscal years designated: 197.1 $10,466,000 ..... 2004 197.2 $10,466,000 ..... 2005 197.3 Any balance in the first year does not cancel but is 197.4 available in the second year. 197.5 Sec. 12. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 197.6 EDUCATION.] 197.7 The sums indicated in this section are appropriated from 197.8 the general fund to the Perpich center for arts education for 197.9 the fiscal years designated: 197.10 $6,864,000 ..... 2004 197.11 $6,423,000 ..... 2005 197.12 Any balance in the first year does not cancel but is 197.13 available in the second year. 197.14 Sec. 13. [REVISOR'S INSTRUCTION.] 197.15 In the next and subsequent editions of Minnesota Statutes, 197.16 the revisor shall change all references to the "commissioner of 197.17 children, families, and learning" to the "commissioner of public 197.18 safety" in Minnesota Statutes, sections 123B.88, subdivision 9; 197.19 168.102; 169.441, subdivision 5; and 171.321, subdivision 4c; 197.20 and "Part H" to "Part C" in Minnesota Statutes, sections 197.21 125A.27, subdivisions 7 and 8; 125A.32; 125A.35; 125A.37; 197.22 125A.39; 125A.44; and 125A.45. 197.23 Sec. 14. [REPEALER.] 197.24 (a) Minnesota Statutes 2002, sections 15.014, subdivision 197.25 3; 123B.90, subdivision 1; 169.441, subdivision 4; and 239.004, 197.26 are repealed. 197.27 (b) Minnesota Rules, parts 3500.0600; 3520.0400; 3520.1400; 197.28 3520.3300; 3530.1500; 3530.2700; 3530.4400; 3530.4500; 197.29 3530.4700; and 3550.0100, are repealed. 197.30 ARTICLE 11 197.31 DEFICIENCIES 197.32 Section 1. [DEPARTMENT OF EDUCATION.] 197.33 The dollar amounts shown are added to or, if shown in 197.34 parentheses, are subtracted from the appropriations in Laws 197.35 2001, First Special Session chapter 6, as amended by Laws 2002, 197.36 chapter 220, and Laws 2002, chapter 374, or other law, and are 198.1 appropriated from the general fund to the department of 198.2 education for the purposes specified in this article, to be 198.3 available for the fiscal year indicated for each purpose. The 198.4 figure "2003" used in this article means that the appropriation 198.5 or appropriations listed are available for the fiscal year 198.6 ending June 30, 2003. 198.7 2003 198.8 APPROPRIATION ADJUSTMENTS $ 10,869,000 198.9 APPROPRIATION CHANGE 198.10 Sec. 2. APPROPRIATIONS; DEPARTMENT OF 198.11 EDUCATION 198.12 Subdivision 1. Community Education Aid 219,000 198.13 Subd. 2. General and Supplemental 198.14 Education Aid 8,791,000 198.15 This change includes ($7,420,000) for 198.16 2002 and $16,211,000 for 2003. 198.17 Subd. 3. Nonpublic Pupil Aid 437,000 198.18 Subd. 4. Consolidation Transition Aid 5,000 198.19 Subd. 5. Interdistrict Desegregation 198.20 or Integration Transportation Grants 169,000 198.21 Subd. 6. Travel for Home-Based 198.22 Services 48,000 198.23 Subd. 7. Debt Service Aid 19,000 198.24 Subd. 8. School Breakfast 100,000 198.25 Subd. 9. Fast Break to Learning 1,081,000 198.26 Sec. 3. [EFFECTIVE DATE.] 198.27 Sections 1 and 2 are effective the day following final 198.28 enactment. 198.29 ARTICLE 12 198.30 TECHNICAL AMENDMENTS 198.31 Section 1. Minnesota Statutes 2002, section 119B.011, 198.32 subdivision 20, is amended to read: 198.33 Subd. 20. [TRANSITION YEAR FAMILIES.] "Transition year 198.34 families" means families who have received MFIP assistance, or 198.35 who were eligible to receive MFIP assistance after choosing to 198.36 discontinue receipt of the cash portion of MFIP assistance under 198.37 section 256J.31, subdivision 12, for at least three of the last 198.38 six months before losing eligibility for MFIP or families199.1 participating in work first under chapter 256K who meet the199.2 requirements of section 256K.07. Transition year child care may 199.3 be used to support employment or job search. Transition year 199.4 child care is not available to families who have been 199.5 disqualified from MFIP due to fraud. 199.6 Sec. 2. Minnesota Statutes 2002, section 121A.21, is 199.7 amended to read: 199.8 121A.21 [SCHOOL HEALTH SERVICES.] 199.9 (a) Every school board must provide services to promote the 199.10 health of its pupils. 199.11 (b) The board of a district with 1,000 pupils or more in 199.12 average daily membership in early childhood family education, 199.13 preschool handicapped, elementary, and secondary programs must 199.14 comply with the requirements of this paragraph. It may use one 199.15 or a combination of the following methods: 199.16 (1) employ personnel, including at least one full-time 199.17 equivalent licensed school nurse or continue to employ a199.18 registered nurse not yet certified as a public health nurse as199.19 defined in section 145A.02, subdivision 18, who is enrolled in a199.20 program that would lead to certification within four years of199.21 August 1, 1988; 199.22 (2) contract with a public or private health organization 199.23 or another public agency for personnel during the regular school 199.24 year, determined appropriate by the board, who are currently 199.25 licensed under chapter 148 and who are certified public health 199.26 nurses; or 199.27 (3) enter into another arrangement approved by the 199.28 commissioner. 199.29 Sec. 3. Minnesota Statutes 2002, section 122A.41, 199.30 subdivision 2, is amended to read: 199.31 Subd. 2. [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] All 199.32 teachers in the public schools in cities of the first class 199.33 during the first three years of consecutive employment shall be 199.34 deemed to be in a probationary period of employment during which 199.35 period any annual contract with any teacher may, or may not, be 199.36 renewed as the school board, after consulting with the peer 200.1 review committee charged with evaluating the probationary 200.2 teachers under subdivision 2a or3, shall see fit. The school 200.3 site management team or the school board if there is no school 200.4 site management team, shall adopt a plan for a written 200.5 evaluation of teachers during the probationary period according 200.6 to subdivision 2a3. Evaluation by the peer review committee 200.7 charged with evaluating probationary teachers under subdivision 200.8 2a3 shall occur at least three times each year for a teacher 200.9 performing services on 120 or more school days, at least two 200.10 times each year for a teacher performing services on 60 to 119 200.11 school days, and at least one time each year for a teacher 200.12 performing services on fewer than 60 school days. Days devoted 200.13 to parent-teacher conferences, teachers' workshops, and other 200.14 staff development opportunities and days on which a teacher is 200.15 absent from school shall not be included in determining the 200.16 number of school days on which a teacher performs services. The 200.17 school board may, during such probationary period, discharge or 200.18 demote a teacher for any of the causes as specified in this 200.19 code. A written statement of the cause of such discharge or 200.20 demotion shall be given to the teacher by the school board at 200.21 least 30 days before such removal or demotion shall become 200.22 effective, and the teacher so notified shall have no right of 200.23 appeal therefrom. 200.24 Sec. 4. Minnesota Statutes 2002, section 122A.58, is 200.25 amended to read: 200.26 122A.58 [COACHES, TERMINATION OF DUTIES.] 200.27 Subdivision 1. [TERMINATION; HEARING.] Before a district 200.28 terminates the coaching duties of an employee who is required to 200.29 hold a license as an athletic coach from the commissioner 200.30 of children, families, and learningeducation, the district must 200.31 notify the employee in writing and state its reason for the 200.32 proposed termination. Within 14 days of receiving this 200.33 notification, the employee may request in writing a hearing on 200.34 the termination before the commissionerboard. If a hearing is 200.35 requested, the commissionerboard must hold a hearing within 25 200.36 days according to the hearing procedures specified in section 201.1 122A.40, subdivision 14, and the termination is final upon the 201.2 order of the commissionerboard after the hearing. 201.3 Subd. 2. [FINAL DECISION.] Within ten days after the 201.4 hearing, the commissionerboard must issue a written decision 201.5 regarding the termination. If the commissionerboard decides to 201.6 terminate the employee's coaching duties, the decision must 201.7 state the reason on which it is based and include findings of 201.8 fact based upon competent evidence in the record. The 201.9 commissionerboard may terminate the employee's duties or not, 201.10 as it sees fit, for any reason which is found to be true based 201.11 on substantial and competent evidence in the record. 201.12 Subd. 3. [NONAPPLICATION OF SECTION.] This section shall 201.13 not apply to the termination of coaching duties pursuant to a 201.14 district transfer policy or as a result of the nonrenewal or 201.15 termination of the employee's contract or the employee's 201.16 discharge, demotion or suspension pursuant to section 122A.40 or 201.17 122A.41. This section shall not apply to the termination of an 201.18 employee's coaching duties prior to completion ofbefore 201.19 completing the probationary period of employment. 201.20 Sec. 5. Minnesota Statutes 2002, section 123B.02, 201.21 subdivision 1, is amended to read: 201.22 Subdivision 1. [BOARD AUTHORITY.] The board must have the 201.23 general charge of the business of the district, the school 201.24 houses, and of the interests of the schools thereof. The 201.25 board's authority to govern, manage, and control the district; 201.26 to carry out its duties and responsibilities; and to conduct the 201.27 business of the district includes implied powers in addition to 201.28 any specific powers granted by the legislature. 201.29 Sec. 6. Minnesota Statutes 2002, section 123B.72, 201.30 subdivision 3, is amended to read: 201.31 Subd. 3. [CERTIFICATION.] Prior to occupying or 201.32 reoccupying a school facility affected by this section, a school 201.33 board or its designee shall submit a document prepared by a 201.34 system inspector to the building official or to the 201.35 commissioner, verifying that the facility's heating, 201.36 ventilation, and air conditioning system has been installed and 202.1 operates according to design specifications and code, according 202.2 to section 123B.71, subdivision 109, clause (3)(11). A 202.3 systems inspector shall also verify that the facility's design 202.4 will provide the ability for monitoring of outdoor airflow and 202.5 total airflow of ventilation systems in new school facilities 202.6 and that any heating, ventilation, or air conditioning system 202.7 that is installed or modified for a project subject to this 202.8 section must provide a filtration system with a current ASHRAE 202.9 standard. 202.10 Sec. 7. Minnesota Statutes 2002, section 123B.93, is 202.11 amended to read: 202.12 123B.93 [ADVERTISING ON SCHOOL BUSES.] 202.13 (a) The commissioner, through a competitive process, and202.14 with the approval of the school bus safety advisory committee202.15 may contract with advertisers regarding advertising on school 202.16 buses. At a minimum, the contract must prohibit advertising and 202.17 advertising images that: 202.18 (1) solicit the sale of, or promote the use of, alcoholic 202.19 beverages and tobacco products; 202.20 (2) are discriminatory in nature or content; 202.21 (3) imply or declare an endorsement of the product or 202.22 service by the school district; 202.23 (4) contain obscene material; 202.24 (5) are false, misleading, or deceptive; or 202.25 (6) relate to an illegal activity or antisocial behavior. 202.26 (b) Advertisement must meet the following conditions: 202.27 (1) the advertising attached to the school bus does not 202.28 interfere with bus identification under section 169.441; and 202.29 (2) the bus with attached advertising meets the school bus 202.30 equipment standards under sections 169.4501 to 169.4504. 202.31 (c) All buses operated by school districts may be attached 202.32 with advertisements under the state contract. All school 202.33 district contracts shall include a provision for advertisement. 202.34 Each school district shall be reimbursed by the advertiser for 202.35 all costs incurred by the district and its contractors for 202.36 supporting the advertising program, including, but not limited 203.1 to, retrofitting buses, storing advertising, attaching 203.2 advertising to the bus, and related maintenance. 203.3 (d) The commissioner shall hold harmless and indemnify each 203.4 district for all liabilities arising from the advertising 203.5 program. Each district must tender defense of all such claims 203.6 to the commissioner within five days of receipt. 203.7 (e) All revenue from the contract shall be deposited in the 203.8 general fund. 203.9 Sec. 8. Minnesota Statutes 2002, section 124D.03, 203.10 subdivision 12, is amended to read: 203.11 Subd. 12. [TERMINATION OF ENROLLMENT.] A district may 203.12 terminate the enrollment of a nonresident student enrolled under 203.13 this section or section 124D.07 or124D.08 at the end of a 203.14 school year if the student meets the definition of a habitual 203.15 truant under section 260C.007, subdivision 19, the student has 203.16 been provided appropriate services under chapter 260A, and the 203.17 student's case has been referred to juvenile court. A district 203.18 may also terminate the enrollment of a nonresident student over 203.19 the age of 16 enrolled under this section if the student is 203.20 absent without lawful excuse for one or more periods on 15 203.21 school days and has not lawfully withdrawn from school under 203.22 section 120A.22, subdivision 8. 203.23 Sec. 9. Minnesota Statutes 2002, section 124D.09, 203.24 subdivision 3, is amended to read: 203.25 Subd. 3. [DEFINITIONS.] For purposes of this section, the 203.26 following terms have the meanings given to them. 203.27 (a) "Eligible institution" means a Minnesota public 203.28 post-secondary institution, a private, nonprofit two-year trade 203.29 and technical school granting associate degrees, an 203.30 opportunities industrialization center accredited by the North 203.31 Central Association of Colleges and Schools, or a private, 203.32 residential, two-year or four-year, liberal arts, 203.33 degree-granting college or university located in Minnesota. 203.34 "Course" means a course or program.203.35 (b) "Course" means a course or program. 203.36 Sec. 10. Minnesota Statutes 2002, section 124D.10, 204.1 subdivision 13, is amended to read: 204.2 Subd. 13. [LENGTH OF SCHOOL YEAR.] A charter school must 204.3 provide instruction each year for at least the number of days 204.4 required by section 120A.22, subdivision 5120A.41. It may 204.5 provide instruction throughout the year according to sections 204.6 124D.12 to 124D.127 or 124D.128. 204.7 Sec. 11. Minnesota Statutes 2002, section 124D.10, 204.8 subdivision 23a, is amended to read: 204.9 Subd. 23a. [RELATED PARTY LEASE COSTS.] (a) A charter 204.10 school is prohibited from entering a lease of real property with 204.11 a related party as defined in this subdivision, unless the 204.12 lessor is a nonprofit corporation under chapter 317A or a 204.13 cooperative under chapter 308A, and the lease cost is reasonable 204.14 under section 124D.11, subdivision 4, clause (1). 204.15 (b) For purposes of this subdivision: 204.16 (1) A "related party" is an affiliate or close relative of 204.17 the other party in question, an affiliate of a close relative, 204.18 or a close relative of an affiliate. 204.19 (2) "Affiliate" means a person that directly, or indirectly 204.20 through one or more intermediaries, controls, or is controlled 204.21 by, or is under common control with, another person. 204.22 (3) "Close relative" means an individual whose relationship 204.23 by blood, marriage, or adoption to another individual is no more 204.24 remote than first cousin. 204.25 (4) "Person" means an individual or entity of any kind. 204.26 (5) "Control" includes the terms "controlling," "controlled 204.27 by," and "under common control with" and means the possession, 204.28 direct or indirect, of the power to direct or cause the 204.29 direction of the management, operations, or policies of a 204.30 person, whether through the ownership of voting securities, by 204.31 contract, or otherwise. 204.32 (c) A lease of real property to be used for a charter 204.33 school, not excluded in paragraph (b), must contain the 204.34 following statement: "This lease is subject to Minnesota 204.35 Statutes, section 124D.10, subdivision 23a." 204.36 (d) If a charter school enters into as lessee a lease with 205.1 a related party and the charter school subsequently closes, the 205.2 commissioner has the right to recover from the lessor any lease 205.3 payments in excess of those that are reasonable under section 205.4 124.11124D.11, subdivision 4, clause (1). 205.5 Sec. 12. Minnesota Statutes 2002, section 125A.05, is 205.6 amended to read: 205.7 125A.05 [METHOD OF SPECIAL INSTRUCTION.] 205.8 (a) As defined in this subdivisionsection, to the extent 205.9 required by federal law as of July 1, 1999, special instruction 205.10 and services for children with a disability must be based on the 205.11 assessment and individual education plan. The instruction and 205.12 services may be provided by one or more of the following methods: 205.13 (1) in connection with attending regular elementary and 205.14 secondary school classes; 205.15 (2) establishment of special classes; 205.16 (3) at the home or bedside of the child; 205.17 (4) in other districts; 205.18 (5) instruction and services by special education 205.19 cooperative centers established under this section, or in 205.20 another member district of the cooperative center to which the 205.21 resident district of the child with a disability belongs; 205.22 (6) in a state residential school or a school department of 205.23 a state institution approved by the commissioner; 205.24 (7) in other states; 205.25 (8) by contracting with public, private or voluntary 205.26 agencies; 205.27 (9) for children under age five and their families, 205.28 programs and services established through collaborative efforts 205.29 with other agencies; 205.30 (10) for children under age five and their families, 205.31 programs in which children with a disability are served with 205.32 children without a disability; and 205.33 (11) any other method approved by the commissioner. 205.34 (b) Preference shall be given to providing special 205.35 instruction and services to children under age three and their 205.36 families in the residence of the child with the parent or 206.1 primary caregiver, or both, present. 206.2 (c) The primary responsibility for the education of a child 206.3 with a disability must remain with the district of the child's 206.4 residence regardless of which method of providing special 206.5 instruction and services is used. If a district other than a 206.6 child's district of residence provides special instruction and 206.7 services to the child, then the district providing the special 206.8 instruction and services must notify the child's district of 206.9 residence before the child's individual education plan is 206.10 developed and must provide the district of residence an 206.11 opportunity to participate in the plan's development. The 206.12 district of residence must inform the parents of the child about 206.13 the methods of instruction that are available. 206.14 Sec. 13. Minnesota Statutes 2002, section 125A.12, is 206.15 amended to read: 206.16 125A.12 [ATTENDANCE IN ANOTHER DISTRICT.] 206.17 No resident of a district who is eligible for special 206.18 instruction and services pursuant to this section may be denied 206.19 provision of this instruction and service because of attending a 206.20 public school in another district pursuant to section 123B.88, 206.21 subdivision 5, if the attendance is not subject to section 206.22 124D.06 , 124D.07,or 124D.08. If the pupil attends a public 206.23 school located in a contiguous district and the district of 206.24 attendance does not provide special instruction and services, 206.25 the district of residence must provide necessary transportation 206.26 for the pupil between the boundary of the district of residence 206.27 and the educational facility where special instruction and 206.28 services are provided within the district of residence. The 206.29 district of residence may provide necessary transportation for 206.30 the pupil between its boundary and the school attended in the 206.31 contiguous district, but must not pay the cost of transportation 206.32 provided outside the boundary of the district of residence. 206.33 Sec. 14. Minnesota Statutes 2002, section 126C.10, 206.34 subdivision 28, is amended to read: 206.35 Subd. 28. [EQUITY REGION.] For the purposes of computing 206.36 equity revenue under subdivision 2324, a district whose 207.1 administrative offices on July 1, 1999, is located in Anoka, 207.2 Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 207.3 part of the metro equity region. Districts whose administrative 207.4 offices on July 1, 1999, are not located in Anoka, Carver, 207.5 Dakota, Hennepin, Ramsey, Scott, or Washington county are part 207.6 of the rural equity region. 207.7 Sec. 15. Minnesota Statutes 2002, section 127A.05, 207.8 subdivision 4, is amended to read: 207.9 Subd. 4. [ADMINISTRATIVE RULES.] The commissioner may 207.10 adopt new rules or amend any existing rules only under specific 207.11 authority and consistent with the requirements of chapter 14. 207.12 The commissioner may repeal any existing rules adopted by the 207.13 commissioner. Notwithstanding the provisions of section 14.05,207.14 subdivision 4,The commissioner may grant a variance to rules 207.15 adopted by the commissioner upon application by a school 207.16 district for purposes of implementing experimental programs in 207.17 learning or school management. This subdivision shall not 207.18 prohibit the commissioner from making technical changes or 207.19 corrections to rules adopted by the commissioner. 207.20 Sec. 16. Minnesota Statutes 2002, section 127A.45, 207.21 subdivision 12, is amended to read: 207.22 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 207.23 hundred percent of the aid for the current fiscal year must be 207.24 paid for the following aids: reimbursement for enrollment 207.25 options transportation, according to sections 124D.03, 207.26 subdivision 8, 124D.09, subdivision 22, and 124D.10; school 207.27 lunch aid, according to section 124D.111; hearing impaired 207.28 support services aid, according to section 124D.57; and Indian 207.29 post-secondary preparation grants according to section 124D.85207.30 124D.80. 207.31 (b) One hundred percent of the aid for the current fiscal 207.32 year, based on enrollment in the previous year, must be paid for 207.33 the first grade preparedness program according to section 207.34 124D.081. 207.35 Sec. 17. Minnesota Statutes 2002, section 169.435, is 207.36 amended to read: 208.1 169.435 [STATE SCHOOL BUS SAFETY ADMINISTRATION.] 208.2 Subdivision 1. [RESPONSIBILITY; DEPARTMENT OF PUBLIC 208.3 SAFETY.] The department of public safety has the primary 208.4 responsibility for school transportation safety. To oversee208.5 school transportation safety, the commissioner of public safety208.6 shall establish a school bus safety advisory committee according208.7 to subdivision 2.The commissioner or the commissioner's 208.8 designee shall serve as state director of pupil transportation 208.9 according to subdivision 3. 208.10 Subd. 3. [PUPIL TRANSPORTATION SAFETY DIRECTOR.] (a) The 208.11 commissioner of public safety or the commissioner's designee 208.12 shall serve as pupil transportation safety director. 208.13 (b) The duties of the pupil transportation safety director 208.14 shall include: 208.15 (1) overseeing all department activities related to school 208.16 bus safety; 208.17 (2) assisting in the development, interpretation, and 208.18 implementation of laws and policies relating to school bus 208.19 safety; 208.20 (3) supervising preparation of the school bus inspection 208.21 manual; and 208.22 (4) in conjunction with the department of children,208.23 families, and learningeducation, assisting school districts in 208.24 developing and implementing comprehensive transportation 208.25 policies ; and208.26 (5) providing information requested by the school bus208.27 safety advisory committee. 208.28 Sec. 18. Minnesota Statutes 2002, section 169.449, 208.29 subdivision 1, is amended to read: 208.30 Subdivision 1. [RULES.] The commissioner of public safety ,208.31 in consultation with the school bus safety advisory committee,208.32 shall adopt rules governing the operation of school buses used 208.33 for transportation of school children, when owned or operated by 208.34 a school or privately owned and operated under a contract with a 208.35 school, and these rules must be made a part of that contract by 208.36 reference. Each school, its officers and employees, and each 209.1 person employed under the contract is subject to these rules. 209.2 Sec. 19. Minnesota Statutes 2002, section 169.4501, 209.3 subdivision 3, is amended to read: 209.4 Subd. 3. [INSPECTION MANUAL.] The department of public 209.5 safety shall develop a school bus inspection manual based on the 209.6 national standards adopted in subdivision 1 and Minnesota 209.7 standards adopted in sections 169.4502 to 169.4504. The 209.8 Minnesota state patrol shall use the manual as the basis for 209.9 inspecting buses as provided in section 169.451. When209.10 appropriate, the school bus safety advisory committee shall209.11 recommend to the education committees of the legislature209.12 modifications to the standards upon which the school bus209.13 inspection manual is based.The department of public safety has 209.14 no rulemaking authority to alter the standards upon which school 209.15 buses are inspected. 209.16 Sec. 20. Minnesota Statutes 2002, section 169.4501, 209.17 subdivision 4, is amended to read: 209.18 Subd. 4. [VARIANCE.] The commissioner of public safety may 209.19 grant a variance to any of the school bus standards to 209.20 accommodate testing of new equipment related to school buses. A 209.21 variance from the standards must be for the sole purpose of 209.22 testing and evaluating new equipment for increased safety, 209.23 efficiency, and economy of pupil transportation. The variance 209.24 expires 18 months from the date on which it is granted unless 209.25 the commissioner specifies an earlier expiration date. The209.26 school bus safety advisory committee shall annually review all209.27 variances that are granted under this subdivision and consider209.28 whether to recommend modifications to the Minnesota school bus209.29 equipment standards based on the variances.209.30 Sec. 21. [REPEALER.] 209.31 (a) Minnesota Statutes 2002, section 126C.55, subdivision 209.32 5, is repealed. 209.33 (b) Laws 2001, First Special Session chapter 3, article 4, 209.34 sections 1 and 2; and Laws 2001, First Special Session chapter 209.35 6, article 2, section 52, are repealed.