as introduced - 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; 205A.03, subdivisions 1, 3, 4; 2.18 205A.06, subdivision 1a; 205A.07, by adding a 2.19 subdivision; 268.052, subdivisions 2, 4; 273.138, 2.20 subdivision 6; 298.28, subdivision 4; 475.61, 2.21 subdivisions 1, 3, 4; 611A.78, subdivision 1; Laws 2.22 1965, chapter 705, as amended; Laws 2001, First 2.23 Special Session chapter 6, article 2, section 72; 2.24 proposing coding for new law in Minnesota Statutes, 2.25 chapters 123B; 124D; 125A; 126C; 127A; 134; repealing 2.26 Minnesota Statutes 2002, sections 15.014, subdivision 2.27 3; 93.22, subdivision 2; 93.223, subdivision 1; 2.28 122A.62; 122A.64; 122A.65; 123A.73, subdivisions 7, 2.29 10, 11; 123B.81, subdivision 6; 123B.90, subdivision 2.30 1; 124D.09, subdivision 15; 124D.115; 124D.1156; 2.31 124D.17; 124D.21; 124D.221; 124D.54; 124D.65, 2.32 subdivision 4; 124D.84, subdivision 2; 124D.89; 2.33 124D.93; 125A.023, subdivision 5; 125A.09; 125A.47; 2.34 125A.79, subdivision 2; 125B.11; 126C.01, subdivision 2.35 4; 126C.05, subdivision 12; 126C.125; 126C.14; 2.36 126C.55, subdivision 5; 127A.41, subdivision 6; 2.37 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 205A.03, 77.23 subdivision 1, is amended to read: 77.24 Subdivision 1. [ RESOLUTIONREQUIRED PRIMARY IN CERTAIN 77.25 CIRCUMSTANCES.] The school board of a school district may, by77.26 resolution adopted by June 1 of any year, decide to choose77.27 nominees for school district elective offices by a primary as77.28 provided in subdivisions 1 to 6. The resolution, when adopted,77.29 is effective for all ensuing elections of board members in that77.30 school district until it is revoked.In a school district 77.31 election, if there are more than two candidates for a specified 77.32 school board position or more than twice as many school board 77.33 candidates as there are at-large school board positions 77.34 available, a school district must hold a primary. 77.35 [EFFECTIVE DATE.] This section is effective the day 77.36 following final enactment for independent school district No. 78.1 742. This section is effective January 1, 2004, for all other 78.2 school districts and applies to school board elections held in 78.3 2004 and thereafter. 78.4 Sec. 42. Minnesota Statutes 2002, section 205A.03, 78.5 subdivision 3, is amended to read: 78.6 Subd. 3. [CANDIDATES, FILING.] The clerk shall place upon 78.7 the primary ballot without partisan designation the names of 78.8 individuals whose candidacies have been filed and for whom the 78.9 proper filing fee has been paid. When not more than twice the78.10 number of individuals to be elected to a school district78.11 elective officeas many school board candidates as there are 78.12 at-large school board positions available file for nomination 78.13 for the office or when not more than two candidates for a 78.14 specified school board position file for nomination for that 78.15 office, their names must not be placed upon the primary ballot 78.16 and must be placed on the school district general election 78.17 ballot as the nominees for that office. 78.18 Sec. 43. Minnesota Statutes 2002, section 205A.03, 78.19 subdivision 4, is amended to read: 78.20 Subd. 4. [RESULTS.] The school district primary must be 78.21 conducted and the returns made in the manner provided for the 78.22 state primary as far as practicable. Within two days after the 78.23 primary, the school board of the school district shall canvass 78.24 the returns, and the two candidates for each officespecified 78.25 school board position who receive the highest number of votes, 78.26 or a number of candidates equal to twice the number of 78.27 individuals to be elected to the officeat-large school board 78.28 positions who receive the highest number of votes, are the 78.29 nominees for the office named. Their names must be certified to 78.30 the school district clerk who shall place them on the school 78.31 district general election ballot without partisan designation 78.32 and without payment of an additional fee. 78.33 Sec. 44. Minnesota Statutes 2002, section 205A.06, 78.34 subdivision 1a, is amended to read: 78.35 Subd. 1a. [FILING PERIOD.] In school districts nominating78.36 candidates at a school district primary,Affidavits of candidacy 79.1 maymust be filed with the school district clerk no earlier than 79.2 the 70th day and no later than the 56th day before the first 79.3 Tuesday after the second Monday in September in the year when 79.4 the school district general election is held. In all other79.5 school districts, affidavits of candidacy must be filed not more79.6 than 70 days and not less than 56 days before the school79.7 district general election.79.8 [EFFECTIVE DATE.] This section is effective the day 79.9 following final enactment for independent school district No. 79.10 742. This section is effective January 1, 2004, for all other 79.11 school districts and applies to school board elections held in 79.12 2004 and thereafter. 79.13 Sec. 45. Minnesota Statutes 2002, section 611A.78, 79.14 subdivision 1, is amended to read: 79.15 Subdivision 1. [MEMBERSHIP.] A crime victim services 79.16 roundtable is created and shall be convened by the commissioner 79.17 of administration or a designee. The roundtable membership 79.18 shall include representatives from the following: the 79.19 departments of health; human services; children, families, and79.20 learning;corrections; and public safety; the supreme court; the 79.21 Minnesota planning agency; the office of the attorney general; 79.22 the office of crime victim ombudsman; the county attorneys 79.23 association; and the office of dispute resolution. The 79.24 roundtable membership shall also include one person representing 79.25 the four councils designated in sections 3.922, 3.9223, 3.9225, 79.26 and 3.9226. 79.27 Sec. 46. Laws 2001, First Special Session chapter 6, 79.28 article 2, section 72, is amended to read: 79.29 Sec. 72. [DEADLINE AND PENALTY WAIVED.] 79.30 The deadline and penalty under Minnesota Statutes, section 79.31 123B.05, subdivision 2, do not apply for aid payment for 79.32 the 2002-20032004-2005 biennium. 79.33 Sec. 47. [CHARTER SCHOOL ADVISORY BOARD MEMBER TERMS.] 79.34 In order to establish staggered terms for charter school 79.35 advisory board members under Minnesota Statutes, section 79.36 124D.10, subdivision 2a, the commissioner of education shall, by 80.1 lot, determine the length of term for each member serving on the 80.2 board on the effective date of this section. One-third of the 80.3 members shall serve a one-year term, one-third shall serve a 80.4 two-year term, and one-third shall serve a three-year term. 80.5 Thereafter, the term for each member must be three years. 80.6 Sec. 48. [PILOT PROJECT TO EVALUATE PARENT INVOLVEMENT 80.7 POLICIES AND STRATEGIES.] 80.8 Subdivision 1. [DISTRICT AND SCHOOL SITE POLICY 80.9 EVALUATION.] A school board may elect to participate in a 80.10 two-year pilot project to evaluate parent involvement policies 80.11 and strategies in the district and in school sites, with the 80.12 goal of improving the academic achievement of all students 80.13 within the district, including at-risk students. 80.14 Subd. 2. [PARENT INVOLVEMENT REVIEW COMMITTEES.] A school 80.15 board electing to participate and interested school sites within 80.16 that district must establish a parent involvement review 80.17 committee or expand the purview of an existing committee 80.18 composed of a majority of parents. The committees must evaluate 80.19 the effectiveness of district and school site programs and 80.20 strategies intended to provide all parents with meaningful 80.21 opportunities to participate in the process of educating 80.22 students. The committees, among other things, may evaluate the 80.23 operation of the instruction and curriculum advisory committee 80.24 or building team under Minnesota Statutes, section 120B.11, or 80.25 parent involvement programs developed under Minnesota Statutes, 80.26 section 124D.895. A majority of committee members must be 80.27 parents of students enrolled in the district or school site, if 80.28 applicable. The committee also must include teachers employed 80.29 by the district and who teach at a school site, if applicable. 80.30 A district must assist participating school sites at the request 80.31 of the school site. 80.32 Subd. 3. [NOTICE OF PARTICIPATION; NOTICE TO PARENTS.] (a) 80.33 A school board electing to participate under this section must 80.34 notify the commissioner of education of its participation and 80.35 the participation of interested school sites on a form supplied 80.36 by the commissioner. The commissioner may assist participating 81.1 districts and school sites at the request of the district or 81.2 school site. 81.3 (b) Participating school districts must transmit timely 81.4 effective notice of this project to parent organizations 81.5 throughout the district and to parents of children enrolled in 81.6 district schools. 81.7 Subd. 4. [REPORT.] Participating districts and school 81.8 sites must report the findings of the evaluation and related 81.9 recommendations annually by March 1 to the school board, which 81.10 shall transmit a summary of the findings and recommendations to 81.11 the commissioner. Information the commissioner receives under 81.12 this subdivision may be used to modify guidelines and model 81.13 plans for parent involvement programs under Minnesota Statutes, 81.14 section 124D.895. 81.15 [EFFECTIVE DATE.] This section is effective the day 81.16 following final enactment and applies to the 2003-2004 and 81.17 2004-2005 school years. 81.18 Sec. 49. [CHARTER SCHOOL START-UP AID.] 81.19 A charter school in its first year of operation during 81.20 fiscal year 2004 or 2005 is not eligible for charter school 81.21 start-up aid under Minnesota Statutes, section 124D.11, 81.22 subdivision 8. 81.23 Sec. 50. [ALTERNATIVE ATTENDANCE ADJUSTMENTS FOR FISCAL 81.24 YEAR 2002.] 81.25 Notwithstanding Minnesota Statutes, section 124D.86, 81.26 subdivision 6, for fiscal year 2002 only, integration aid under 81.27 Minnesota Statutes, section 124D.86, subdivision 5, must be 81.28 adjusted for each pupil residing in special school district No. 81.29 1, Minneapolis; independent school district No. 625, St. Paul; 81.30 or independent school district No. 709, Duluth, and attending a 81.31 nonresident district under Minnesota Statutes, sections 123A.05 81.32 to 123A.08, 124D.03, 124D.06, and 124D.08, other than 81.33 Minneapolis, St. Paul or Duluth that has implemented a plan 81.34 under Minnesota Rules, parts 3535.0100 to 3535.0180, if the 81.35 enrollment of the pupil in the nonresident district contributes 81.36 to desegregation or integration purposes. The adjustments must 82.1 be made according to this subdivision. 82.2 (b) Aid paid to a district serving nonresident pupils must 82.3 be increased by an amount equal to the revenue per pupil of the 82.4 resident district under Minnesota Statutes, section 124D.86, 82.5 subdivision 3, minus the revenue attributable to the pupil in 82.6 the nonresident district for the time the pupil is enrolled in 82.7 the nonresident district. 82.8 [EFFECTIVE DATE.] This section is effective the day 82.9 following final enactment and applies to fiscal year 2002. 82.10 Sec. 51. [POLICY ON STUDENTS WITH A HISTORY OF VIOLENT 82.11 BEHAVIOR.] 82.12 (a) Representatives of the Minnesota school boards 82.13 association, Education Minnesota, and the information policy 82.14 analysis division in the Minnesota department of administration, 82.15 the parent of a child who has participated in the Title I 82.16 delinquent education program selected by the commissioner of 82.17 education, and the commissioner of education or the 82.18 commissioner's designee, shall develop a model policy by August 82.19 1, 2003, on notifying classroom teachers and other school 82.20 district employees having a legitimate educational interest when 82.21 a student with a history of violent behavior is placed in the 82.22 teacher's classroom. The model policy at least must: 82.23 (1) define what constitutes a history of violent behavior, 82.24 consistent with Minnesota Statutes, section 121A.45, subdivision 82.25 2, clause (c); 82.26 (2) limit reports on violent behavior to a specified number 82.27 of school years; 82.28 (3) define "legitimate educational interest," consistent 82.29 with Minnesota Statutes, section 121A.64; 82.30 (4) indicate the persons at the school or district level 82.31 who determine which school district employees have a legitimate 82.32 educational interest; 82.33 (5) require school districts that transfer the student 82.34 records of a student with a history of violent behavior to 82.35 another school district, charter school, or alternative 82.36 education program to include all information about the student's 83.1 history of violent behavior in the student's educational records 83.2 it transmits to the enrolling school district, charter school, 83.3 or alternative education program, consistent with this policy; 83.4 (6) ensure that the parent of a student with a history of 83.5 violent behavior is able to review the student's educational 83.6 records and data and to effectively exercise rights under both 83.7 federal and state data practices laws to challenge records or 83.8 data on the basis that they are inaccurate, incomplete, 83.9 misleading, or otherwise violate the student's right to privacy 83.10 before the classroom teacher or other district employee is 83.11 notified; and 83.12 (7) require school districts to inform the parent or 83.13 guardian of a student with a history of violent behavior under 83.14 Minnesota Statutes, section 121A.64, that the district gives 83.15 notice about the student's history of violent behavior to the 83.16 classroom teacher and other district employees having a 83.17 legitimate educational interest before placing the student in 83.18 the teacher's classroom. 83.19 (b) The information policy analysis division in the 83.20 Minnesota department of administration by August 15, 2003, must 83.21 post on its division Web site the model policy developed under 83.22 paragraph (a). 83.23 (c) The task force in paragraph (a) expires on August 1, 83.24 2003. 83.25 [EFFECTIVE DATE.] This section is effective the day 83.26 following final enactment. 83.27 Sec. 52. [AT-LARGE SCHOOL BOARD MEMBERS; INDEPENDENT 83.28 SCHOOL DISTRICT NO. 709, DULUTH.] 83.29 (a) Notwithstanding Laws 1969, chapter 698, or other law to 83.30 the contrary, the school board for independent school district 83.31 No. 709, Duluth, may by resolution reduce from five to three the 83.32 number of at-large school board members. 83.33 (b) If the school board adopts the resolution under 83.34 paragraph (a), for the November 2003 election and each four 83.35 years thereafter, the three positions of those members elected 83.36 at large whose terms expire on December 31, 2003, shall be 84.1 reduced to one member elected at large. 84.2 (c) Nothing in this section prevents a member of the school 84.3 board on the effective date of this act who is otherwise 84.4 qualified from running for reelection upon the expiration of 84.5 that member's term. 84.6 [EFFECTIVE DATE.] This section is effective the day 84.7 following final enactment. 84.8 Sec. 53. [APPROPRIATIONS.] 84.9 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 84.10 indicated in this section are appropriated from the general fund 84.11 to the department of education for the fiscal years designated. 84.12 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 84.13 lease aid under Minnesota Statutes, section 124D.11, subdivision 84.14 4: 84.15 $17,140,000 ..... 2004 84.16 $21,018,000 ..... 2005 84.17 The 2004 appropriation includes $2,524,000 for 2003 and 84.18 $14,616,000 for 2004. 84.19 The 2005 appropriation includes $3,654,000 for 2004 and 84.20 $17,364,000 for 2005. 84.21 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 84.22 startup cost aid under Minnesota Statutes, section 124D.11: 84.23 $824,000 ..... 2004 84.24 $151,000 ..... 2005 84.25 The 2004 appropriation includes $220,000 for 2003 and 84.26 $604,000 for 2004. 84.27 The 2005 appropriation includes $151,000 for 2004 and $0 84.28 for 2005. 84.29 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 84.30 to charter schools to promote integration and desegregation 84.31 under Minnesota Statutes, section 124D.11, subdivision 6, 84.32 paragraph (e): 84.33 $8,000 ..... 2004 84.34 This appropriation includes $8,000 for 2003 and $0 for 2004. 84.35 Subd. 5. [INTEGRATION AID.] For integration aid under 84.36 Minnesota Statutes, section 124D.86, subdivision 5: 85.1 $56,869,000 ..... 2004 85.2 $56,092,000 ..... 2005 85.3 The 2004 appropriation includes $8,428,000 for 2003 and 85.4 $48,441,000 for 2004. 85.5 The 2005 appropriation includes $12,110,000 for 2004 and 85.6 $43,982,000 for 2005. 85.7 Subd. 6. [MAGNET SCHOOL GRANTS.] For magnet school and 85.8 program grants: 85.9 $750,000 ..... 2004 85.10 $750,000 ..... 2005 85.11 $90,000 of the fiscal year 2004 appropriation is for 85.12 continuation of the magnet school program authorized under Laws 85.13 2000, chapter 489, article 7, section 15, subdivision 5, for 85.14 independent school district No. 696, Ely. 85.15 These amounts may be used for magnet school programs under 85.16 Minnesota Statutes, section 124D.88. 85.17 Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school 85.18 startup aid under Minnesota Statutes, section 124D.88: 85.19 $ 37,000 ..... 2004 85.20 $454,000 ..... 2005 85.21 The 2004 appropriation includes $37,000 for 2003 and $0 for 85.22 2004. 85.23 The 2005 appropriation includes $0 for 2004 and $437,000 85.24 for 2005. 85.25 Subd. 8. [INTERDISTRICT DESEGREGATION OR INTEGRATION 85.26 TRANSPORTATION GRANTS.] For interdistrict desegregation or 85.27 integration transportation grants under Minnesota Statutes, 85.28 section 124D.87: 85.29 $5,796,000 ..... 2004 85.30 $8,401,000 ..... 2005 85.31 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 85.32 success for the future grants under Minnesota Statutes, section 85.33 124D.81: 85.34 $2,073,000 ..... 2004 85.35 $2,137,000 ..... 2005 85.36 The 2004 appropriation includes $363,000 for 2003 and 86.1 $1,710,000 for 2004. 86.2 The 2005 appropriation includes $427,000 for 2004 and 86.3 $1,710,000 for 2005. 86.4 Subd. 10. [AMERICAN INDIAN SCHOLARSHIPS.] For American 86.5 Indian scholarships under Minnesota Statutes, section 124D.84: 86.6 $1,875,000 ..... 2004 86.7 $1,875,000 ..... 2005 86.8 Subd. 11. [AMERICAN INDIAN TEACHER PREPARATION 86.9 GRANTS.] For joint grants to assist American Indian people to 86.10 become teachers under Minnesota Statutes, section 122A.63: 86.11 $190,000 ..... 2004 86.12 $190,000 ..... 2005 86.13 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 86.14 school aid under Minnesota Statutes, section 124D.83: 86.15 $2,135,000 ..... 2004 86.16 $2,336,000 ..... 2005 86.17 The 2004 appropriation includes $285,000 for 2003 and 86.18 $1,850,000 for 2004. 86.19 The 2005 appropriation includes $462,000 for 2004 and 86.20 $1,874,000 for 2005. 86.21 Subd. 13. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 86.22 SCHOOLS.] For early childhood family education programs at 86.23 tribal contract schools under Minnesota Statutes, section 86.24 124D.83, subdivision 4: 86.25 $68,000 ..... 2004 86.26 $68,000 ..... 2005 86.27 Subd. 14. [STATEWIDE TESTING SUPPORT.] For statewide 86.28 testing support under Minnesota Statutes, section 120B.30. 86.29 $9,000,000 ..... 2004 86.30 $9,000,000 ..... 2005 86.31 Subd. 15. [BEST PRACTICES SEMINARS.] For best practices 86.32 seminars and other professional development capacity building 86.33 activities that assure proficiency in teaching and 86.34 implementation of graduation rule standards: 86.35 $1,000,000 ..... 2004 86.36 $1,000,000 ..... 2005 87.1 $250,000 per year is for a grant to A Chance to Grow/New 87.2 Visions for the Minnesota learning resource center's 87.3 comprehensive training program for education professionals 87.4 charged with helping children acquire basic reading and math 87.5 skills. 87.6 Subd. 16. [ALTERNATIVE TEACHER COMPENSATION.] For 87.7 alternative teacher compensation established under Minnesota 87.8 Statutes, sections 122A.413 to 122A.415: 87.9 $3,700,000 ..... 2004 87.10 $3,700,000 ..... 2005 87.11 If the appropriations under this subdivision are 87.12 insufficient to fund all program participants, a participant may 87.13 receive less than the maximum per pupil amount available under 87.14 Minnesota Statutes, section 122A.415, subdivision 1. A 87.15 qualifying district or site receiving alternative teacher 87.16 compensation funding under this subdivision may use the funding 87.17 it receives to leverage additional funds from a national program 87.18 for enhancing teacher professionalism. 87.19 Subd. 17. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 87.20 PROGRAMS.] (a) For students' advanced placement and 87.21 international baccalaureate examination fees under Minnesota 87.22 Statutes, section 120B.13, subdivision 3, and the training and 87.23 related costs for teachers and other interested educators under 87.24 Minnesota Statutes, section 120B.13, subdivision 1: 87.25 $ 778,000 ..... 2004 87.26 $ 778,000 ..... 2005 87.27 (b) The advanced placement program shall receive 75 percent 87.28 of the appropriation each year and the international 87.29 baccalaureate program shall receive 25 percent of the 87.30 appropriation each year. The department, in consultation with 87.31 representatives of the advanced placement and international 87.32 baccalaureate programs selected by the advanced placement 87.33 advisory council and IBMN, respectively, shall determine the 87.34 amounts of the expenditures each year for examination fees and 87.35 training and support programs for each program. 87.36 (c) Notwithstanding Minnesota Statutes, section 120B.13, 88.1 subdivision 1, $375,000 each year is for teachers to attend 88.2 subject matter summer training programs and follow-up support 88.3 workshops approved by the advanced placement or international 88.4 baccalaureate programs. The amount of the subsidy for each 88.5 teacher attending an advanced placement or international 88.6 baccalaureate summer training program or workshop shall be the 88.7 same. The commissioner shall determine the payment process and 88.8 the amount of the subsidy. 88.9 (d) The commissioner shall pay all examination fees for all 88.10 students of low-income families under Minnesota Statutes, 88.11 section 120B.13, subdivision 3, and to the extent of available 88.12 appropriations shall also pay examination fees for students 88.13 sitting for an advanced placement examination, international 88.14 baccalaureate examination, or both. 88.15 Any balance in the first year does not cancel but is 88.16 available in the second year. 88.17 Subd. 18. [FIRST GRADE PREPAREDNESS.] For first grade 88.18 preparedness grants under Minnesota Statutes, section 124D.081: 88.19 $7,250,000 ..... 2004 88.20 $7,250,000 ..... 2005 88.21 Subd. 19. [YOUTH WORKS PROGRAM.] For funding youth works 88.22 programs under Minnesota Statutes, sections 124D.37 to 124D.45: 88.23 $900,000 ..... 2004 88.24 $900,000 ..... 2005 88.25 (a) $150,000 per year is for training in evaluating early 88.26 literacy skills and teaching reading to preschool children under 88.27 Minnesota Statutes, section 124D.42, subdivision 6, paragraph 88.28 (a), clause (3). 88.29 (b) A grantee organization may provide health and child 88.30 care coverage to the dependents of each participant enrolled in 88.31 a full-time youth works program to the extent such coverage is 88.32 not otherwise available. 88.33 Subd. 20. [STUDENT ORGANIZATIONS.] For student 88.34 organizations: 88.35 $625,000 ..... 2004 88.36 $625,000 ..... 2005 89.1 The allocation for a student organization in fiscal year 89.2 2004 or fiscal year 2005 shall be no less than its fiscal year 89.3 2003 allocation. 89.4 Subd. 21. [DISTANCE EDUCATION.] For distance education 89.5 under Minnesota Statutes, section 124D.095: 89.6 $1,000,000 ..... 2004 89.7 $1,250,000 ..... 2005 89.8 Subd. 22. [COLLABORATIVE URBAN EDUCATOR RECRUITMENT AND 89.9 TRAINING PROGRAMS.] For grants to collaborative urban educator 89.10 recruitment and training programs: 89.11 $528,000 ..... 2004 89.12 $528,000 ..... 2005 89.13 $198,000 each year is for the Southeast Asian teacher 89.14 program at Concordia University, St. Paul; $165,000 each year is 89.15 for the collaborative urban educator program at the University 89.16 of St. Thomas; and $165,000 each year is for the center for 89.17 excellence in urban teaching at Hamline University. Grant 89.18 recipients must collaborate with urban and nonurban school 89.19 districts. 89.20 Any balance in the first year does not cancel but is 89.21 available in the second year. 89.22 Sec. 54. [REPEALER.] 89.23 (a) Minnesota Statutes 2002, sections 122A.64; 122A.65; 89.24 124D.84, subdivision 2; and 124D.89, are repealed. 89.25 (b) Minnesota Statutes 2002, sections 128C.01, subdivision 89.26 5; 128C.02, subdivision 8; and 128C.13, are repealed. 89.27 (c) Laws 1993, chapter 224, article 8, section 20, 89.28 subdivision 2, as amended by Laws 1994, chapter 647, article 8, 89.29 section 29, is repealed. 89.30 ARTICLE 3 89.31 SPECIAL PROGRAMS 89.32 Section 1. Minnesota Statutes 2002, section 121A.41, 89.33 subdivision 10, is amended to read: 89.34 Subd. 10. [SUSPENSION.] "Suspension" means an action by 89.35 the school administration, under rules promulgated by the school 89.36 board, prohibiting a pupil from attending school for a period of 90.1 no more than ten school days. If a suspension is longer than 90.2 five days, the suspending administrator must provide the 90.3 superintendent with a reason for the longer suspension. This 90.4 definition does not apply to dismissal from school for one 90.5 school day or less, except as provided in federal law for a 90.6 student with a disability. Each suspension action may include a 90.7 readmission plan. The readmission plan shall include, where 90.8 appropriate, a provision for implementing alternative 90.9 educational services upon readmission and may not be used to 90.10 extend the current suspension. Consistent with section 125A.09, 90.11 subdivision 3, the readmission plan must not obligate a parent 90.12 to provide a sympathomimetic medication for the parent's child 90.13 as a condition of readmission. The school administration may 90.14 not impose consecutive suspensions against the same pupil for 90.15 the same course of conduct, or incident of misconduct, except 90.16 where the pupil will create an immediate and substantial danger 90.17 to self or to surrounding persons or property, or where the 90.18 district is in the process of initiating an expulsion, in which 90.19 case the school administration may extend the suspension to a 90.20 total of 15 days. In the case of a student with a disability, 90.21 the student's individual education plan team must meet 90.22 immediately but not more than ten school days after the date on 90.23 which the decision to remove the student from the student's 90.24 current education placement is made. The individual education 90.25 plan team and other qualified personnel shall at that meeting: 90.26 conduct a review of the relationship between the child's 90.27 disability and the behavior subject to disciplinary action; and 90.28 determine the appropriateness of the child's education plan. 90.29 The requirements of the individual education plan team 90.30 meeting apply when: 90.31 (1) the parent requests a meeting; 90.32 (2) the student is removed from the student's current 90.33 placement for five or more consecutive days; or 90.34 (3) the student's total days of removal from the student's 90.35 placement during the school year exceed ten cumulative days in a 90.36 school year. The school administration shall implement 91.1 alternative educational services when the suspension exceeds 91.2 five days. A separate administrative conference is required for 91.3 each period of suspension. 91.4 Sec. 2. [124D.452] [DISTRICT REPORT; CAREER AND TECHNICAL 91.5 EDUCATION.] 91.6 Each district and cooperative center must report data to 91.7 the department of education for all career and technical 91.8 education programs as required by the department. 91.9 Sec. 3. Minnesota Statutes 2002, section 124D.454, 91.10 subdivision 1, is amended to read: 91.11 Subdivision 1. [PURPOSE.] The purpose of this section is 91.12 to provide a method to fund transitioncareer and technical 91.13 education programs for children with a disability that are 91.14 components of the student's transition plan. As used in this 91.15 section, the term "children with a disability" shall have the 91.16 meaning ascribed to it in section 125A.02. 91.17 Sec. 4. Minnesota Statutes 2002, section 124D.454, 91.18 subdivision 2, is amended to read: 91.19 Subd. 2. [DEFINITIONS.] For the purposes of this section, 91.20 the definitions in this subdivision apply. 91.21 (a) "Base year" for fiscal year 1996 means fiscal year 1995.91.22 Base year for later fiscal yearsmeans the second fiscal year 91.23 preceding the fiscal year for which aid will be paid. 91.24 (b) "Basic revenue" has the meaning given it in section 91.25 126C.10, subdivision 2. For the purposes of computing basic 91.26 revenue pursuant to this section, each child with a disability 91.27 shall be counted as prescribed in section 126C.05, subdivision 1. 91.28 (c) "Average daily membership" has the meaning given it in 91.29 section 126C.05. 91.30 (d) "Program growth factor" means 1.00 for fiscal year 1998 91.31 and later. 91.32 (e) "Aid percentage factor" means 60 percent for fiscal91.33 year 1996, 70 percent for fiscal year 1997, 80 percent for91.34 fiscal year 1998, 90 percent for fiscal year 1999, and100 91.35 percent for fiscal year 2000 and later. 91.36 (f) "Essential personnel" means a licensed teacher, 92.1 licensed support services staff person, paraprofessional 92.2 providing direct services to students, or licensed personnel 92.3 under subdivision 12, paragraph (c). This definition is not 92.4 intended to change or modify the definition of essential 92.5 employee in chapter 179A. 92.6 Sec. 5. Minnesota Statutes 2002, section 124D.454, 92.7 subdivision 3, is amended to read: 92.8 Subd. 3. [BASE REVENUE.] (a) The transition92.9 program-disabledtransition-disabled program base revenue equals 92.10 the sum of the following amounts computed using base year data: 92.11 (1) 68 percent of the salary of each essential licensed 92.12 person or approved paraprofessional who provides direct 92.13 instructional services to students employed during that fiscal 92.14 year for services rendered in that district's transition program 92.15 for children with a disability; 92.16 (2) 47 percent of the costs of necessary equipment for 92.17 transition programs for children with a disability; 92.18 (3) 47 percent of the costs of necessary travel between 92.19 instructional sites by transition program teachers of children 92.20 with a disability but not including travel to and from local, 92.21 regional, district, state, or national vocationalcareer and 92.22 technical student organization meetings; 92.23 (4) 47 percent of the costs of necessary supplies for 92.24 transition programs for children with a disability but not to 92.25 exceed an average of $47 in any one school year for each child 92.26 with a disability receiving these services; 92.27 (5) for transition programs for children with disabilities 92.28 provided by a contract approved by the commissioner with public, 92.29 private, or voluntary agencies other than a Minnesota school 92.30 district or cooperative center, in place of programs provided by 92.31 the district, 52 percent of the difference between the amount of 92.32 the contract and the basic revenue of the district for that 92.33 pupil for the fraction of the school day the pupil receives 92.34 services under the contract; 92.35 (6) for transition programs for children with disabilities 92.36 provided by a contract approved by the commissioner with public, 93.1 private, or voluntary agencies other than a Minnesota school 93.2 district or cooperative center, that are supplementary to a full 93.3 educational program provided by the school district, 52 percent 93.4 of the amount of the contract; and 93.5 (7) for a contract approved by the commissioner with 93.6 another Minnesota school district or cooperative center for 93.7 vocational evaluation services for children with a disability 93.8 for children that are not yet enrolled in grade 12, 52 percent 93.9 of the amount of the contract. 93.10 (b) If requested by a school district for transition 93.11 programs during the base year for less than the full school 93.12 year, the commissioner may adjust the base revenue to reflect 93.13 the expenditures that would have occurred during the base year 93.14 had the program been operated for the full year. 93.15 Sec. 6. Minnesota Statutes 2002, section 124D.454, 93.16 subdivision 8, is amended to read: 93.17 Subd. 8. [USE OF AID.] The aid provided under this section 93.18 shall be paid only for services rendered or for the costs which 93.19 are incurred according to this section for transition programs 93.20 for children with a disability which are approved by the 93.21 commissioner of children, families, and learningeducation and 93.22 operated in accordance with rules promulgated by the 93.23 commissioner. These rules shall be subject to the restrictions 93.24 provided in section 124D.453,subdivision 612. The procedure 93.25 for application for approval of these programs shall be as 93.26 provided in section 125A.75, subdivisions 4 and 6, and the 93.27 application review process shall be conducted by the office93.28 division of lifework developmentfederal programs in the 93.29 department. 93.30 Sec. 7. Minnesota Statutes 2002, section 124D.454, 93.31 subdivision 10, is amended to read: 93.32 Subd. 10. [EXCLUSION.] A district shall not receive aid 93.33 pursuant to section 124D.453 or125A.76 for salaries, supplies, 93.34 travel or equipment for which the district receives aid pursuant 93.35 to this section. 93.36 Sec. 8. Minnesota Statutes 2002, section 124D.454, is 94.1 amended by adding a subdivision to read: 94.2 Subd. 12. [COMPLIANCE WITH RULES.] Aid must be paid under 94.3 this section only for services rendered or for costs incurred in 94.4 career and technical education programs approved by the 94.5 commissioner and operated in accordance with rules promulgated 94.6 by the commissioner. This aid shall be paid only for services 94.7 rendered and for costs incurred by essential, licensed personnel 94.8 who meet the requirements for licensure pursuant to the rules of 94.9 the Minnesota board of teaching. Licensed personnel means 94.10 persons holding a valid career and technical license issued by 94.11 the commissioner. If an average of five or fewer secondary 94.12 full-time equivalent students are enrolled per teacher in an 94.13 approved postsecondary program at intermediate district No. 287, 94.14 916, or 917, licensed personnel means persons holding a valid 94.15 vocational license issued by the commissioner or the board of 94.16 trustees of the Minnesota state colleges and universities. 94.17 Notwithstanding section 127A.42, the commissioner may modify or 94.18 withdraw the program or aid approval and withhold aid under this 94.19 section without proceeding under section 127A.42 at any time. 94.20 To do so, the commissioner must determine that the program does 94.21 not comply with rules of the department of education or that any 94.22 facts concerning the program or its budget differ from the facts 94.23 in the district's approved application. 94.24 Sec. 9. [125A.091] [ALTERNATIVE DISPUTE RESOLUTION AND DUE 94.25 PROCESS HEARINGS.] 94.26 Subdivision 1. [DISTRICT OBLIGATION.] A school district 94.27 must use the procedures in federal law and state law and rule to 94.28 reach decisions about the identification, evaluation, 94.29 educational placement, manifestation determination, interim 94.30 alternative educational placement, or the provision of a free 94.31 appropriate public education to a child with a disability. 94.32 Subd. 2. [PRIOR WRITTEN NOTICE.] A parent must receive 94.33 prior written notice a reasonable time before the district 94.34 proposes or refuses to initiate or change the identification, 94.35 evaluation, educational placement, or the provision of a free 94.36 appropriate public education to a child with a disability. 95.1 Subd. 3. [CONTENT OF NOTICE.] The notice under subdivision 95.2 2 must: 95.3 (1) describe the action the district proposes or refuses; 95.4 (2) explain why the district proposes or refuses to take 95.5 the action; 95.6 (3) describe any other option the district considered and 95.7 the reason why it rejected the option; 95.8 (4) describe each evaluation procedure, test, record, or 95.9 report the district used as a basis for the proposed or refused 95.10 action; 95.11 (5) describe any other factor affecting the proposal or 95.12 refusal of the district to take the action; 95.13 (6) state that the parent of a child with a disability is 95.14 protected by procedural safeguards and, if this notice is not an 95.15 initial referral for evaluation, how a parent can get a 95.16 description of the procedural safeguards; and 95.17 (7) identify where a parent can get help in understanding 95.18 this law. 95.19 Subd. 4. [UNDERSTANDABLE NOTICE.] (a) The written notice 95.20 under subdivision 2 must be understandable to the general public 95.21 and available in the parent's native language or by another 95.22 communication form, unless it is clearly not feasible to do so. 95.23 (b) If the parent's native language or other communication 95.24 form is not written, the district must take steps to ensure that: 95.25 (1) the notice is translated orally or by other means to 95.26 the parent in the parent's native language or other 95.27 communication form; 95.28 (2) the parent understands the notice; and 95.29 (3) written evidence indicates the requirements in 95.30 subdivision 2 are met. 95.31 Subd. 5. [INITIAL ACTION; PARENT CONSENT.] The district 95.32 must not proceed with the initial evaluation of a child, the 95.33 initial placement of a child in a special education program, or 95.34 the initial provision of special education services for a child 95.35 without the prior written consent of the child's parent. A 95.36 district may not override the written refusal of a parent to 96.1 consent to an initial evaluation or reevaluation. 96.2 Subd. 6. [DISPUTE RESOLUTION PROCESSES; 96.3 GENERALLY.] Parties are encouraged to resolve disputes over the 96.4 identification, evaluation, educational placement, manifestation 96.5 determination, interim alternative educational placement, or the 96.6 provision of a free appropriate public education to a child with 96.7 a disability through conciliation, mediation, facilitated team 96.8 meetings, or other alternative process. All dispute resolution 96.9 options are voluntary on the part of the parent and must not be 96.10 used to deny or delay the right to a due process hearing. All 96.11 dispute resolution processes under this section are provided at 96.12 no cost to the parent. 96.13 Subd. 7. [CONCILIATION CONFERENCE.] A parent must have an 96.14 opportunity to meet with appropriate district staff in at least 96.15 one conciliation conference if the parent objects to any 96.16 proposal of which the parent receives notice under subdivision 2. 96.17 If the parent refuses district efforts to conciliate the 96.18 dispute, the conciliation requirement is satisfied. Following a 96.19 conciliation conference, the district must prepare and provide 96.20 to the parent a conciliation conference memorandum that 96.21 describes the district's final proposed offer of service. This 96.22 memorandum is admissible in evidence in any subsequent 96.23 proceeding. 96.24 Subd. 8. [VOLUNTARY DISPUTE RESOLUTION OPTIONS.] In 96.25 addition to offering at least one conciliation conference, a 96.26 district must inform a parent of other dispute resolution 96.27 processes, including at least mediation and facilitated team 96.28 meetings. The fact that an alternative dispute resolution 96.29 process was used is admissible in evidence at any subsequent 96.30 proceeding. State-provided mediators and team meeting 96.31 facilitators shall not be subpoenaed to testify at a due process 96.32 hearing or civil action under federal special education law nor 96.33 are any records of mediators or state-provided team meeting 96.34 facilitators accessible to the parties. 96.35 Subd. 9. [MEDIATION.] Mediation is a dispute resolution 96.36 process that involves a neutral party provided by the state to 97.1 assist a parent and a district in resolving disputes over the 97.2 identification, evaluation, educational placement, manifestation 97.3 determination, interim alternative educational placement, or the 97.4 provision of a free appropriate public education to a child with 97.5 a disability. A mediation process is available as an informal 97.6 alternative to a due process hearing but must not be used to 97.7 deny or postpone the opportunity of a parent or district to 97.8 obtain a due process hearing. Mediation is voluntary for all 97.9 parties. All mediation discussions are confidential and 97.10 inadmissible in evidence in any subsequent proceeding, unless 97.11 the: 97.12 (1) parties expressly agree otherwise; 97.13 (2) evidence is otherwise available; or 97.14 (3) evidence is offered to prove bias or prejudice of a 97.15 witness. 97.16 Subd. 10. [MEDIATED AGREEMENTS.] Mediated agreements are 97.17 not admissible unless the parties agree otherwise or a party to 97.18 the agreement believes the agreement is not being implemented, 97.19 in which case the aggrieved party may enter the agreement into 97.20 evidence at a due process hearing. The parties may request 97.21 another mediation to resolve a dispute over implementing the 97.22 mediated agreement. After a due process hearing is requested, a 97.23 party may request mediation and the commissioner must provide a 97.24 mediator who conducts a mediation session no later than the 97.25 third business day after the mediation request is made to the 97.26 commissioner. 97.27 Subd. 11. [FACILITATED TEAM MEETING.] A facilitated team 97.28 meeting is an IEP, IFSP, or IIIP team meeting led by an 97.29 impartial state-provided facilitator to promote effective 97.30 communication and assist a team in developing an individualized 97.31 education plan. 97.32 Subd. 12. [IMPARTIAL DUE PROCESS HEARING.] (a) A parent or 97.33 a district is entitled to an impartial due process hearing 97.34 conducted by the state when a dispute arises over the 97.35 identification, evaluation, educational placement, manifestation 97.36 determination, interim alternative educational placement, or the 98.1 provision of a free appropriate public education to a child with 98.2 a disability. The hearing must be held in the district 98.3 responsible for ensuring that a free appropriate public 98.4 education is provided according to state and federal law. The 98.5 proceedings must be recorded and preserved, at state expense, 98.6 pending ultimate disposition of the action. 98.7 (b) The due process hearing must be conducted according to 98.8 the rules of the commissioner and federal law. 98.9 Subd. 13. [HEARING OFFICER QUALIFICATIONS.] The 98.10 commissioner must appoint an individual who is qualified under 98.11 this subdivision to serve as a hearing officer. The hearing 98.12 officer must: 98.13 (1) be knowledgeable and impartial; 98.14 (2) have no personal interest in or specific involvement 98.15 with the student who is a party to the hearing; 98.16 (3) not have been employed as an administrator by the 98.17 district that is a party to the hearing; 98.18 (4) not have been involved in selecting the district 98.19 administrator who is a party to the hearing; 98.20 (5) have no personal, economic, or professional interest in 98.21 the outcome of the hearing other than properly administering 98.22 federal and state laws, rules, and policies; 98.23 (6) have no substantial involvement in developing state or 98.24 local policies or procedures challenged in the hearing; 98.25 (7) not be a current employee or board member of a 98.26 Minnesota public school district, education district, 98.27 intermediate unit or regional education agency, or the 98.28 department if the department is the service provider; and 98.29 (8) not be a current employee or board member of a 98.30 disability advocacy organization or group. 98.31 Subd. 14. [REQUEST FOR HEARING.] A request for a due 98.32 process hearing must: 98.33 (1) be in writing; 98.34 (2) describe the nature of the dispute about providing 98.35 special education services to the student including facts 98.36 relating to the dispute; and 99.1 (3) state, to the extent known, the relief sought. 99.2 Any school district administrator receiving a request for a 99.3 due process hearing must immediately forward the request to the 99.4 commissioner. Within two business days of receiving a request 99.5 for a due process hearing, the commissioner must appoint a 99.6 hearing officer. The commissioner must not deny a request for 99.7 hearing because the request is incomplete. A party may 99.8 disqualify a hearing officer only by affirmatively showing 99.9 prejudice or bias to the commissioner or to the chief 99.10 administrative law judge if the hearing officer is an 99.11 administrative law judge. If a party affirmatively shows 99.12 prejudice against a hearing officer, the commissioner must 99.13 assign another hearing officer to hear the matter. 99.14 Subd. 15. [PREHEARING CONFERENCE.] A prehearing conference 99.15 must be held within five business days of the date the 99.16 commissioner appoints the hearing officer. The hearing officer 99.17 must initiate the prehearing conference which may be conducted 99.18 in person, at a location within the district, or by telephone. 99.19 The hearing officer must create a written verbatim record of the 99.20 prehearing conference which is available to either party upon 99.21 request. At the prehearing conference, the hearing officer must: 99.22 (1) identify the questions that must be answered to resolve 99.23 the dispute and eliminate claims and complaints that are without 99.24 merit; 99.25 (2) set a scheduling order for the hearing and additional 99.26 prehearing activities; 99.27 (3) determine if the hearing can be disposed of without an 99.28 evidentiary hearing and, if so, establish the schedule and 99.29 procedure for doing so; and 99.30 (4) establish the management, control, and location of the 99.31 hearing to ensure its fair, efficient, and effective disposition. 99.32 Subd. 16. [BURDEN OF PROOF.] The burden of proof at a due 99.33 process hearing is on the district to demonstrate, by a 99.34 preponderance of the evidence, that it is complying with the law 99.35 and offered or provided a free appropriate public education to 99.36 the child in the least restrictive environment. If the district 100.1 has not offered or provided a free appropriate public education 100.2 in the least restrictive environment and the parent wants the 100.3 district to pay for a private placement, the burden of proof is 100.4 on the parent to demonstrate, by a preponderance of the 100.5 evidence, that the private placement is appropriate. 100.6 Subd. 17. [ADMISSIBLE EVIDENCE.] The hearing officer may 100.7 admit all evidence that possesses probative value, including 100.8 hearsay, if it is the type of evidence on which reasonable, 100.9 prudent persons are accustomed to rely in conducting their 100.10 serious affairs. The hearing officer must give effect to the 100.11 rules of privilege recognized by law and exclude evidence that 100.12 is incompetent, irrelevant, immaterial, or unduly repetitious. 100.13 Subd. 18. [HEARING OFFICER AUTHORITY.] (a) A hearing 100.14 officer must limit an impartial due process hearing to the time 100.15 sufficient for each party to present its case. 100.16 (b) A hearing officer must establish and maintain control 100.17 and manage the hearing. This authority includes, but is not 100.18 limited to: 100.19 (1) requiring attorneys representing parties at the 100.20 hearing, after notice and an opportunity to be heard, to pay 100.21 court reporting and hearing officer costs, or fines payable to 100.22 the state, for failing to: (i) obey scheduling or prehearing 100.23 orders, (ii) appear, (iii) be prepared, or (iv) participate in 100.24 the hearing process in good faith; 100.25 (2) administering oaths and affirmations; 100.26 (3) issuing subpoenas; 100.27 (4) determining the responsible and providing districts and 100.28 joining those districts, if not already notified, in the 100.29 proceedings; 100.30 (5) making decisions involving identification, evaluation, 100.31 educational placement, manifestation determination, interim 100.32 alternative educational placement, or the provision of a free 100.33 appropriate public education to a child with a disability; and 100.34 (6) ordering an independent educational evaluation of a 100.35 child at district expense. 100.36 Subd. 19. [EXPEDITED DUE PROCESS HEARINGS.] A parent has 101.1 the right to an expedited due process hearing when there is a 101.2 dispute over a manifestation determination or a proposed or 101.3 actual placement in an interim alternative educational setting. 101.4 A district has the right to an expedited due process hearing 101.5 when proposing or seeking to maintain placement in an interim 101.6 alternative educational setting. A hearing officer must hold an 101.7 expedited due process hearing and must issue a decision within 101.8 ten calendar days of the request for a hearing. A hearing 101.9 officer may extend by up to five additional calendar days the 101.10 time for issuing a decision in an expedited due process 101.11 hearing. All policies in this section apply to expedited due 101.12 process hearings to the extent they do not conflict with federal 101.13 law. 101.14 Subd. 20. [HEARING OFFICER'S DECISION; TIME PERIOD.] (a) 101.15 The hearing officer must issue a decision within 45 calendar 101.16 days of the date on which the commissioner receives the request 101.17 for a due process hearing. A hearing officer is encouraged to 101.18 accelerate the time line to 30 days for a child under the age of 101.19 three whose needs change rapidly and who requires quick 101.20 resolution of a dispute. A hearing officer may not extend the 101.21 time beyond the 45-day period unless requested by either party 101.22 for good cause shown on the record. Extensions of time must not 101.23 exceed a total of 30 calendar days unless both parties and the 101.24 hearing officer agree or time is needed to complete an 101.25 independent educational evaluation. Good cause includes, but is 101.26 not limited to, the time required for mediation or other 101.27 settlement discussions, independent educational evaluation, 101.28 complexity and volume of issues, or finding or changing counsel. 101.29 (b) The hearing officer's decision must: 101.30 (1) be in writing; 101.31 (2) state the controlling and material facts upon which the 101.32 decision is made in order to apprise the reader of the basis and 101.33 reason for the decision; and 101.34 (3) be based on local standards, state statute, the rules 101.35 of the commissioner, and federal law. 101.36 Subd. 21. [COMPENSATORY EDUCATIONAL SERVICES.] The hearing 102.1 officer may require the resident or responsible district to 102.2 provide compensatory educational services to the child if the 102.3 hearing officer finds that the district has not offered or made 102.4 available to the child a free appropriate public education in 102.5 the least restrictive environment and the child suffered a loss 102.6 of educational benefit. Such services take the form of direct 102.7 and indirect special education and related services designed to 102.8 address any loss of educational benefit that may have occurred. 102.9 The hearing officer's finding must be based on a present 102.10 determination of whether the child has suffered a loss of 102.11 educational benefit. 102.12 Subd. 22. [CHILD'S EDUCATIONAL PLACEMENT DURING A DUE 102.13 PROCESS HEARING.] (a) Until a due process hearing under this 102.14 section is completed or the district and the parent agree 102.15 otherwise, the child must remain in the child's current 102.16 educational placement and must not be denied initial admission 102.17 to school. 102.18 (b) Until an expedited due process hearing challenging an 102.19 interim alternative educational placement is completed, the 102.20 child must remain in the interim alternative educational setting 102.21 until the decision of the hearing officer or the expiration of 102.22 the 45 days permitted for an interim alternative educational 102.23 setting, whichever occurs first, unless the parent and district 102.24 agree otherwise. 102.25 Subd. 23. [IMPLEMENTATION OF HEARING OFFICER ORDER.] (a) 102.26 That portion of a hearing officer's decision granting relief 102.27 requested by the parent must be implemented upon issuance. 102.28 (b) Except as provided under paragraph (a) or the district 102.29 and parent agree otherwise, following a hearing officer's 102.30 decision granting relief requested by the district, the child 102.31 must remain in the current educational placement until the time 102.32 to request judicial review under subdivision 24 expires or, if 102.33 judicial review is requested, at the time the Minnesota court of 102.34 appeals or the federal district court issues its decision, 102.35 whichever is later. 102.36 Subd. 24. [REVIEW OF HEARING OFFICER DECISIONS.] The 103.1 parent or district may seek review of the hearing officer's 103.2 decision in the Minnesota court of appeals or in the federal 103.3 district court, consistent with federal law. A party must 103.4 appeal to the Minnesota court of appeals within 60 days of 103.5 receiving the hearing officer's decision. 103.6 Subd. 25. [ENFORCEMENT OF ORDERS.] The commissioner must 103.7 monitor final hearing officer decisions and ensure enforcement 103.8 of hearing officer orders. 103.9 Subd. 26. [HEARING OFFICER AND PERSON CONDUCTING 103.10 ALTERNATIVE DISPUTE RESOLUTION ARE STATE EMPLOYEES.] A hearing 103.11 officer or person conducting alternative dispute resolution 103.12 under this section is an employee of the state under section 103.13 3.732 for purposes of section 3.736 only. 103.14 Subd. 27. [HEARING OFFICER TRAINING.] A hearing officer 103.15 must participate in training and follow procedures established 103.16 by the commissioner. 103.17 Subd. 28. [DISTRICT LIABILITY.] A district is not liable 103.18 for harmless technical violations of this section or rules 103.19 implementing this section if the school district can demonstrate 103.20 on a case-by-case basis that the violations did not harm a 103.21 student's educational progress or the parent's right to notice, 103.22 participation, or due process. 103.23 Sec. 10. Minnesota Statutes 2002, section 125A.21, 103.24 subdivision 2, is amended to read: 103.25 Subd. 2. [THIRD PARTY REIMBURSEMENT.] (a) Beginning July 103.26 1, 2000, districts shall seek reimbursement from insurers and 103.27 similar third parties for the cost of services provided by the 103.28 district whenever the services provided by the district are 103.29 otherwise covered by the child's health coverage. Districts 103.30 shall request, but may not require, the child's family to 103.31 provide information about the child's health coverage when a 103.32 child with a disability begins to receive services from the 103.33 district of a type that may be reimbursable, and shall request, 103.34 but may not require, updated information after that as needed. 103.35 (b) For children enrolled in medical assistance under 103.36 chapter 256B or MinnesotaCare under chapter 256L who have no 104.1 other health coverage, a district shall provide an initial 104.2 written notice to the enrolled child's parent or legal 104.3 representative of its intent to seek reimbursement from medical 104.4 assistance or MinnesotaCare for the individual education plan 104.5 health-related services provided by the district. 104.6 (c) The district shall give the parent or legal 104.7 representative annual written notice of: 104.8 (1) the district's intent to seek reimbursement from 104.9 medical assistance or MinnesotaCare for individual education 104.10 plan health-related services provided by the district; 104.11 (2) the right of the parent or legal representative to 104.12 request a copy of all records concerning individual education 104.13 plan health-related services disclosed by the district to any 104.14 third party; and 104.15 (3) the right of the parent or legal representative to 104.16 withdraw consent for disclosure of a child's records at any time 104.17 without consequence. 104.18 The written notice shall be provided as part of the written 104.19 notice required by Code of Federal Regulations, title 34, 104.20 section 300.503300.504. 104.21 (d) In order to access the private health care coverage of 104.22 a child who is covered by private health care coverage in whole 104.23 or in part, a district must: 104.24 (1) obtain annual written informed consent from the parent 104.25 or legal representative, in compliance with subdivision 5; and 104.26 (2) inform the parent or legal representative that a 104.27 refusal to permit the district or state Medicaid agency to 104.28 access their private health care coverage does not relieve the 104.29 district of its responsibility to provide all services necessary 104.30 to provide free and appropriate public education at no cost to 104.31 the parent or legal representative. 104.32 (e) If the commissioner of human services obtains federal 104.33 approval to exempt covered individual education plan 104.34 health-related services from the requirement that private health 104.35 care coverage refuse payment before medical assistance may be 104.36 billed, paragraphs (b), (c), and (d) shall also apply to 105.1 students with a combination of private health care coverage and 105.2 health care coverage through medical assistance or MinnesotaCare. 105.3 (f) In the event that Congress or any federal agency or the 105.4 Minnesota legislature or any state agency establishes lifetime 105.5 limits, limits for any health care services, cost-sharing 105.6 provisions, or otherwise provides that individual education plan 105.7 health-related services impact benefits for persons enrolled in 105.8 medical assistance or MinnesotaCare, the amendments to this 105.9 subdivision adopted in 2002 are repealed on the effective date 105.10 of any federal or state law or regulation that imposes the 105.11 limits. In that event, districts must obtain informed consent 105.12 consistent with this subdivision as it existed prior to the 2002 105.13 amendments and subdivision 5, before seeking reimbursement for 105.14 children enrolled in medical assistance under chapter 256B or 105.15 MinnesotaCare under chapter 256L who have no other health care 105.16 coverage. 105.17 Sec. 11. Minnesota Statutes 2002, section 125A.28, is 105.18 amended to read: 105.19 125A.28 [STATE INTERAGENCY COORDINATING COUNCIL.] 105.20 An interagency coordinating council of at least 17, but not 105.21 more than 25 members is established, in compliance with Public 105.22 Law Number102-119, section 682. The members must be appointed 105.23 by the governor. Council members must elect the council chair. 105.24 The representative of the commissioner may not serve as the 105.25 chair. The council must be composed of at least five parents, 105.26 including persons of color, of children with disabilities under 105.27 age 12, including at least three parents of a child with a 105.28 disability under age seven, five representatives of public or 105.29 private providers of services for children with disabilities 105.30 under age five, including a special education director, county 105.31 social service director, local Head Start director, and a 105.32 community health services or public health nursing 105.33 administrator, one member of the senate, one member of the house 105.34 of representatives, one representative of teacher preparation 105.35 programs in early childhood-special education or other 105.36 preparation programs in early childhood intervention, at least 106.1 one representative of advocacy organizations for children with 106.2 disabilities under age five, one physician who cares for young 106.3 children with special health care needs, one representative each 106.4 from the commissioners of commerce, children, families, and106.5 learningeducation, health, human services, a representative 106.6 from the state agency responsible for child care, and a 106.7 representative from Indian health services or a tribal council. 106.8 Section 15.059, subdivisions 2 to 5, apply to the council. The 106.9 council must meet at least quarterly. 106.10 The council must address methods of implementing the state 106.11 policy of developing and implementing comprehensive, 106.12 coordinated, multidisciplinary interagency programs of early 106.13 intervention services for children with disabilities and their 106.14 families. 106.15 The duties of the council include recommending policies to 106.16 ensure a comprehensive and coordinated system of all state and 106.17 local agency services for children under age five with 106.18 disabilities and their families. The policies must address how 106.19 to incorporate each agency's services into a unified state and 106.20 local system of multidisciplinary assessment practices, 106.21 individual intervention plans, comprehensive systems to find 106.22 children in need of services, methods to improve public 106.23 awareness, and assistance in determining the role of interagency 106.24 early intervention committees. 106.25 By September 1, the council must recommend to the governor 106.26 and the commissioners of children, families, and learning106.27 education, health, human services, commerce, and economic 106.28 security policies for a comprehensive and coordinated system. 106.29 Notwithstanding any other law to the contrary, the state 106.30 interagency coordinating council expires on June 30, 20032005. 106.31 Sec. 12. Minnesota Statutes 2002, section 125A.30, is 106.32 amended to read: 106.33 125A.30 [INTERAGENCY EARLY INTERVENTION COMMITTEES.] 106.34 (a) A school district, group of districts, or special 106.35 education cooperative, in cooperation with the health and human 106.36 service agencies located in the county or counties in which the 107.1 district or cooperative is located, must establish an 107.2 interagency early intervention committee for children with 107.3 disabilities under age five and their families under this 107.4 section, and for children with disabilities ages three to 22 107.5 consistent with the requirements under sections 125A.023 and 107.6 125A.027. Committees must include representatives of local and107.7 regionalhealth, education, and county human service agencies, 107.8 county boards, school boards, early childhood family education 107.9 programs, Head Start, parents of young children with 107.10 disabilities under age 12, child care resource and referral 107.11 agencies, school readiness programs, current service providers, 107.12 and may also include representatives from other private or 107.13 public agencies and school nurses. The committee must elect a 107.14 chair from among its members and must meet at least quarterly. 107.15 (b) The committee must develop and implement interagency 107.16 policies and procedures concerning the following ongoing duties: 107.17 (1) develop public awareness systems designed to inform 107.18 potential recipient families of available programs and services; 107.19 (2) implement interagency child find systems designed to 107.20 actively seek out, identify, and refer infants and young 107.21 children with, or at risk of, disabilities and their families; 107.22 (3) establish and evaluate the identification, referral, 107.23 child and family assessment systems, procedural safeguard 107.24 process, and community learning systems to recommend, where 107.25 necessary, alterations and improvements; 107.26 (4) assure the development of individualized family service 107.27 plans for all eligible infants and toddlers with disabilities 107.28 from birth through age two, and their families, and individual 107.29 education plans and individual service plans when necessary to 107.30 appropriately serve children with disabilities, age three and 107.31 older, and their families and recommend assignment of financial 107.32 responsibilities to the appropriate agencies; 107.33 (5) encourage agencies to develop individual family service 107.34 plans for children with disabilities, age three and older; 107.35 (6) implement a process for assuring that services involve 107.36 cooperating agencies at all steps leading to individualized 108.1 programs; 108.2 (7) facilitate the development of a transitional plan if a 108.3 service provider is not recommended to continue to provide 108.4 services; 108.5 (8) identify the current services and funding being 108.6 provided within the community for children with disabilities 108.7 under age five and their families; 108.8 (9) develop a plan for the allocation and expenditure of 108.9 additional state and federal early intervention funds under 108.10 United States Code, title 20, section 1471 et seq. (Part H, 108.11 Public Law Number102-119) and United States Code, title 20, 108.12 section 631, et seq. (Chapter I, Public Law Number89-313); and 108.13 (10) develop a policy that is consistent with section 108.14 13.05, subdivision 9, and federal law to enable a member of an 108.15 interagency early intervention committee to allow another member 108.16 access to data classified as not public. 108.17 (c) The local committee shall also: 108.18 (1) participate in needs assessments and program planning 108.19 activities conducted by local social service, health and 108.20 education agencies for young children with disabilities and 108.21 their families; and 108.22 (2) review and comment on the early intervention section of 108.23 the total special education system for the district, the county 108.24 social service plan, the section or sections of the community 108.25 health services plan that address needs of and service 108.26 activities targeted to children with special health care 108.27 needs, the section on children with special needs in the county 108.28 child care fund plan, sections in Head Start plans on 108.29 coordinated planning and services for children with special 108.30 needs, any relevant portions of early childhood education plans, 108.31 such as early childhood family education or school readiness, or 108.32 other applicable coordinated school and community plans for 108.33 early childhood programs and services, and the section of the 108.34 maternal and child health special project grants that address 108.35 needs of and service activities targeted to children with 108.36 chronic illness and disabilities. 109.1 Sec. 13. Minnesota Statutes 2002, section 125A.76, 109.2 subdivision 1, is amended to read: 109.3 Subdivision 1. [DEFINITIONS.] For the purposes of this 109.4 section, the definitions in this subdivision apply. 109.5 (a) "Base year" for fiscal year 1998 and later fiscal years 109.6 means the second fiscal year preceding the fiscal year for which 109.7 aid will be paid. 109.8 (b) "Basic revenue" has the meaning given it in section 109.9 126C.10, subdivision 2. For the purposes of computing basic 109.10 revenue pursuant to this section, each child with a disability 109.11 shall be counted as prescribed in section 126C.05, subdivision 1. 109.12 (c) "Essential personnel" means teachers, cultural 109.13 liaisons, related services, and support services staff providing 109.14 direct services to students. Essential personnel may also 109.15 include special education paraprofessionals or clericals 109.16 providing support to teachers and students by preparing 109.17 paperwork and making arrangements related to special education 109.18 compliance requirements, including parent meetings and 109.19 individual education plans. 109.20 (d) "Average daily membership" has the meaning given it in 109.21 section 126C.05. 109.22 (e) "Program growth factor" means 1.08 for fiscal year109.23 2002, and1.046 for fiscal year 2003, and 1.0 for fiscal year 109.24 2004 and later. 109.25 Sec. 14. Minnesota Statutes 2002, section 125A.76, 109.26 subdivision 4, is amended to read: 109.27 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.] The state 109.28 total special education aid for fiscal year 20002004 equals 109.29 $463,000,000$530,642,000. The state total special education 109.30 aid for fiscal year 20012005 equals $474,000,000$529,164,000. 109.31 The state total special education aid for later fiscal years 109.32 equals: 109.33 (1) the state total special education aid for the preceding 109.34 fiscal year; times 109.35 (2) the program growth factor; times 109.36 (3) the ratio of the state total average daily membership 110.1 for the current fiscal year to the state total average daily 110.2 membership for the preceding fiscal year. 110.3 Sec. 15. Minnesota Statutes 2002, section 125A.79, 110.4 subdivision 1, is amended to read: 110.5 Subdivision 1. [DEFINITIONS.] For the purposes of this 110.6 section, the definitions in this subdivision apply. 110.7 (a) "Unreimbursed special education cost" means the sum of 110.8 the following: 110.9 (1) expenditures for teachers' salaries, contracted 110.10 services, supplies, equipment, and transportation services 110.11 eligible for revenue under section 125A.76; plus 110.12 (2) expenditures for tuition bills received under sections 110.13 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 110.14 under section 125A.76, subdivision 2; minus 110.15 (3) revenue for teachers' salaries, contracted services, 110.16 supplies, and equipment under section 125A.76; minus 110.17 (4) tuition receipts under sections 125A.03 to 125A.24 and 110.18 125A.65 for services eligible for revenue under section 125A.76, 110.19 subdivision 2. 110.20 (b) "General revenue" means for fiscal year 1996, the sum 110.21 of the general education revenue according to section 126C.10, 110.22 subdivision 1, as adjusted according to section 127A.47, 110.23 subdivision 7, plus the total referendum revenue according to 110.24 section 126C.17, subdivision 4. For fiscal years 1997 and 110.25 later, "general revenue" means the sum of the general education 110.26 revenue according to section 126C.10, subdivision 1, as adjusted 110.27 according to section 127A.47, subdivisions 7 and 8, plus the 110.28 total referendum revenue minus transportation sparsity revenue 110.29 minus total operating capital revenue. 110.30 (c) "Average daily membership" has the meaning given it in 110.31 section 126C.05. 110.32 (d) "Program growth factor" means 1.044 for fiscal year110.33 2002 and1.02 for fiscal year 2003, and 1.0 for fiscal year 2004 110.34 and later. 110.35 Sec. 16. Minnesota Statutes 2002, section 125A.79, 110.36 subdivision 6, is amended to read: 111.1 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 111.2 The state total special education excess cost aid for fiscal 111.3 year 2004 equals $92,067,000. The state total special education 111.4 aid for fiscal year 2005 equals $91,811,000. The state total 111.5 special education excess cost aid for fiscal year 20022006 and 111.6 later fiscal years equals: 111.7 (1) the state total special education excess cost aid for 111.8 the preceding fiscal year; times 111.9 (2) the program growth factor; times 111.10 (3) the ratio of the state total average daily membership 111.11 for the current fiscal year to the state total average daily 111.12 membership for the preceding fiscal year. 111.13 Sec. 17. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION AID.] 111.14 (a) For fiscal year 2004, a district shall receive special 111.15 education cross-subsidy reduction aid equal to $5,000,000 times 111.16 the ratio of the district's special education excess cost aid 111.17 for the previous fiscal year according to Minnesota Statutes, 111.18 section 125A.79, subdivision 7, to the state total special 111.19 education excess cost aid for the previous fiscal year according 111.20 to Minnesota Statutes, section 125A.79, subdivision 6. 111.21 (b) For fiscal year 2005, a district shall receive special 111.22 education cross-subsidy reduction aid equal to $11,000,000 times 111.23 the ratio of the district's special education excess cost aid 111.24 for the previous fiscal year according to Minnesota Statutes, 111.25 section 125A.79, subdivision 7, to the state total special 111.26 education excess cost aid for the previous fiscal year according 111.27 to Minnesota Statutes, section 125A.79, subdivision 6. 111.28 (c) Special education cross-subsidy reduction aid must be 111.29 used to pay for a district's unfunded special education costs 111.30 that would otherwise be cross-subsidized by a district's general 111.31 education revenue. 111.32 Sec. 18. [IMPACT OF WAIVING SPECIFIC SPECIAL EDUCATION 111.33 REQUIREMENTS THAT EXCEED FEDERAL LAW; THREE-YEAR PILOT PROJECT.] 111.34 Subdivision 1. [ESTABLISHMENT; GOAL.] A three-year pilot 111.35 project is established to permit independent school district No. 111.36 535, Rochester, and up to three other geographically diverse 112.1 school districts or cooperative units under Minnesota Statutes, 112.2 section 125A.11, subdivision 3, selected by the commissioner of 112.3 education to determine the impact, if any, of waiving specific 112.4 special education requirements listed in subdivision 3 on the 112.5 quality and cost-effectiveness of the instructional services and 112.6 educational outcomes provided to eligible students by the 112.7 project participant. 112.8 Subd. 2. [ELIGIBILITY; APPLICATIONS.] The commissioner 112.9 must transmit information about the pilot project and make 112.10 application forms available to interested school districts or 112.11 cooperative units. Applications must be submitted to the 112.12 commissioner by July 1, 2003. An applicant must identify the 112.13 specific special education requirements listed in subdivision 3 112.14 for which the applicant seeks a waiver and indicate how the 112.15 applicant proposes to modify the activities and procedures 112.16 affected by the waiver. The commissioner must approve the 112.17 applications by August 1, 2003. 112.18 Subd. 3. [WAIVERS.] The following state special education 112.19 requirements are waived for the 2003-2004, 2004-2005, and 112.20 2005-2006 school years for independent school district No. 535, 112.21 Rochester, and the other school districts or cooperative units 112.22 participating in this pilot project: 112.23 (1) Minnesota Statutes, section 125A.56, governing 112.24 prereferral interventions; 112.25 (2) Minnesota Statutes, section 125A.08, paragraph (a), 112.26 clause (1), governing transitional services for students when 112.27 reaching age 14 or grade 9, who transition from secondary 112.28 services to postsecondary education and training, employment, 112.29 community participation, recreation and leisure, and home 112.30 living; 112.31 (3) Minnesota Statutes, section 125A.22, governing 112.32 community transition interagency committees; and 112.33 (4) Minnesota Statutes, section 125A.023, governing 112.34 coordinated interagency services but only affecting eligible 112.35 children with disabilities age seven or older. 112.36 Subd. 4. [STUDENTS' RIGHTS.] Eligible students enrolled in 113.1 a district or receiving special instruction and services through 113.2 a cooperative unit that is participating in this pilot project 113.3 remain entitled to the procedural protections provided under 113.4 federal law in any matter that affects the students' 113.5 identification, evaluation, and placement or change in 113.6 placement, or protections provided under state law in dismissal 113.7 proceedings that may result in students' suspension, exclusion, 113.8 or expulsion. Project participants must ensure that students' 113.9 civil rights are protected, provide equal educational 113.10 opportunities, and prohibit discrimination. Failure to comply 113.11 with this subdivision will at least cause a district or 113.12 cooperative unit to become ineligible to participate in the 113.13 pilot project. 113.14 Subd. 5. [TECHNICAL ASSISTANCE.] The commissioner must 113.15 provide project participants, upon request, assistance in 113.16 developing and implementing a valid and uniform procedure under 113.17 subdivision 6 to evaluate the participants' experience. 113.18 Subd. 6. [EVALUATION; REPORT.] All participating school 113.19 districts and cooperative units must evaluate the impact, if 113.20 any, of waiving specific special education requirements listed 113.21 in subdivision 3 on the quality and cost-effectiveness of the 113.22 instructional services and educational outcomes provided to 113.23 eligible students by the project participant. Project 113.24 participants must focus the evaluation on the overall efficacy 113.25 of modifying the activities and procedures affected by the 113.26 waiver. The evaluation must include a mechanism for documenting 113.27 parents' response to the pilot project. Project participants 113.28 must submit to the commissioner a progress report by September 113.29 1, 2004, and a final report by November 1, 2005. The 113.30 commissioner must compile and present the results of the reports 113.31 to the legislature by February 1, 2006, and recommend 113.32 appropriate amendments to the statutory requirements listed in 113.33 subdivision 3. 113.34 [EFFECTIVE DATE.] This section is effective the day 113.35 following final enactment. 113.36 Sec. 19. [DEPARTMENT RESPONSIBILITY.] 114.1 By January 1, 2004, the commissioner of education must 114.2 adopt rules that: 114.3 (1) establish criteria for selecting hearing officers, the 114.4 standards of conduct to which a hearing officer must adhere, and 114.5 a process to evaluate the hearing system; 114.6 (2) ensure that appropriately trained and knowledgeable 114.7 persons conduct due process hearings in compliance with federal 114.8 law; and 114.9 (3) create standards for expedited due process hearings 114.10 under federal law. 114.11 By March 1, 2004, the commissioner of education must 114.12 develop and make available a notice for participants in 114.13 state-provided dispute resolution processes that informs 114.14 participants of their rights concerning dispute resolution. 114.15 Sec. 20. [APPROPRIATIONS.] 114.16 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 114.17 indicated in this section are appropriated from the general fund 114.18 to the department of education for the fiscal years designated. 114.19 Subd. 2. [SPECIAL EDUCATION; REGULAR.] For special 114.20 education aid under Minnesota Statutes, section 125A.75: 114.21 $515,091,000 ..... 2004 114.22 $529,460,000 ..... 2005 114.23 The 2004 appropriation includes $90,577,000 for 2003 and 114.24 $424,514,000 for 2004. 114.25 The 2005 appropriation includes $106,128,000 for 2004 and 114.26 $423,332,000 for 2005. 114.27 Subd. 3. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION 114.28 AID.] For special education cross-subsidy reduction aid under 114.29 section 17: 114.30 $ 5,000,000 ..... 2004 114.31 $11,000,000 ..... 2005 114.32 This is a onetime appropriation. 114.33 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 114.34 under Minnesota Statutes, section 125A.75, subdivision 3, for 114.35 children with disabilities placed in residential facilities 114.36 within the district boundaries for whom no district of residence 115.1 can be determined: 115.2 $2,177,000 ..... 2004 115.3 $2,244,000 ..... 2005 115.4 If the appropriation for either year is insufficient, the 115.5 appropriation for the other year is available. 115.6 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 115.7 teacher travel for home-based services under Minnesota Statutes, 115.8 section 125A.75, subdivision 1: 115.9 $220,000 ..... 2004 115.10 $261,000 ..... 2005 115.11 The 2004 appropriation includes $34,000 for 2003 and 115.12 $186,000 for 2004. 115.13 The 2005 appropriation includes $46,000 for 2004 and 115.14 $215,000 for 2005. 115.15 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 115.16 cost aid under Minnesota Statutes, section 125A.79, subdivision 115.17 7: 115.18 $92,606,000 ..... 2004 115.19 $92,984,000 ..... 2005 115.20 The 2004 appropriation includes $41,754,000 for 2003 and 115.21 $50,852,000 for 2004. 115.22 The 2005 appropriation includes $41,215,000 for 2004 and 115.23 $51,769,000 for 2005. 115.24 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 115.25 paying the costs a district incurs under Minnesota Statutes, 115.26 section 125A.75, subdivision 8: 115.27 $346,000 ..... 2004 115.28 $ 17,000 ..... 2005 115.29 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 115.30 transition programs for children with disabilities under 115.31 Minnesota Statutes, section 124D.454: 115.32 $8,625,000 ..... 2004 115.33 $8,867,000 ..... 2005 115.34 The 2004 appropriation includes $1,516,000 for 2003 and 115.35 $7,109,000 for 2004. 115.36 The 2005 appropriation includes $1,777,000 for 2004 and 116.1 $7,090,000 for 2005. 116.2 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 116.3 reimbursing serving school districts for unreimbursed eligible 116.4 expenditures attributable to children placed in the serving 116.5 school district by court action under Minnesota Statutes, 116.6 section 125A.79, subdivision 4: 116.7 $152,000 ..... 2004 116.8 $160,000 ..... 2005 116.9 Subd. 10. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 116.10 special education out-of-state tuition according to Minnesota 116.11 Statutes, section 125A.79, subdivision 8: 116.12 $250,000 ..... 2004 116.13 $250,000 ..... 2005 116.14 Sec. 21. [REPEALER.] 116.15 Minnesota Statutes 2002, sections 125A.023, subdivision 5; 116.16 125A.09; 125A.47; and 125A.79, subdivision 2, are repealed. 116.17 ARTICLE 4 116.18 FACILITIES AND TECHNOLOGY 116.19 Section 1. Minnesota Statutes 2002, section 123B.51, 116.20 subdivision 3, is amended to read: 116.21 Subd. 3. [LEASE ROOMS OR BUILDINGSREAL PROPERTY.] When 116.22 necessary, the board may lease rooms or buildingsreal property 116.23 for school purposes. 116.24 Sec. 2. Minnesota Statutes 2002, section 123B.51, 116.25 subdivision 4, is amended to read: 116.26 Subd. 4. [LEASE FOR NONSCHOOL PURPOSE.] (a) The board may 116.27 lease to any person, business, or organization a schoolhouse116.28 real property that is not needed for school purposes, or part of 116.29 a schoolhousethe property that is not needed for school 116.30 purposes if the board determines that leasing part of a116.31 schoolhousethe property does not interfere with the educational 116.32 programs taking place in the rest of the buildingon the 116.33 property. The board may charge and collect reasonable 116.34 consideration for the lease and may determine the terms and 116.35 conditions of the lease. 116.36 (b) In districts with outstanding bonds, the net proceeds 117.1 of the lease must be first deposited in the debt retirement fund 117.2 of the district in an amount sufficient to meet when due that 117.3 percentage of the principal and interest payments for 117.4 outstanding bonds that is ascribable to the payment of expenses 117.5 necessary and incidental to the construction or purchase of the 117.6 particular building or property that is leased. Any remaining 117.7 net proceeds in these districts may be deposited in either the 117.8 debt redemption fund or operating capital expenditure117.9 fundaccount. All net proceeds of the lease in districts 117.10 without outstanding bonds shall be deposited in the operating 117.11 capital expenditure fundaccount of the district. 117.12 (c) The board may make capital improvements , including117.13 fixtures, to a schoolhouse or a portion thereofto the real 117.14 property, not exceeding in cost the replacement value of 117.15 the schoolhouseproperty, to facilitate its rental, and the 117.16 lease of anthe improved schoolhouseproperty, or part of it, 117.17 shall provide for rentals which will recover the cost of the 117.18 improvements over the initial term of the lease. 117.19 Notwithstanding paragraph (b), the portion of the rentals 117.20 representing the cost of the improvements shall be deposited in 117.21 the operating capital expenditure fundaccount of the district 117.22 and the balance of the rentals shall be used as provided in 117.23 paragraph (b). 117.24 Sec. 3. Minnesota Statutes 2002, section 123B.52, is 117.25 amended by adding a subdivision to read: 117.26 Subd. 1a. [CONSTRUCTION CONTRACTS.] A project labor 117.27 agreement is a hiring agreement that establishes wages, uniform 117.28 work schedules, and rules for dispute resolution to manage 117.29 construction projects that generally require, among other 117.30 things, payment of union dues or fees to a labor organization or 117.31 membership in or affiliation with a labor organization. A 117.32 school board must adopt at a public meeting a written resolution 117.33 authorizing a project labor agreement to construct or repair a 117.34 facility through a contract or bid. The board must publish in 117.35 the official newspaper of the district notice of the meeting at 117.36 least 30 days in advance. 118.1 Sec. 4. Minnesota Statutes 2002, section 123B.53, 118.2 subdivision 4, is amended to read: 118.3 Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 118.4 service equalization revenue of a district equals the sum of the 118.5 first tier debt service equalization revenue and the second tier 118.6 debt service equalization revenue. 118.7 (b) The first tier debt service equalization revenue of a 118.8 district equals the greater of zero or the eligible debt service 118.9 revenue minus the amount raised by a levy of 15 percent times 118.10 the adjusted net tax capacity of the district minus the second 118.11 tier debt service equalization revenue of the district. 118.12 (c) The second tier debt service equalization revenue of a 118.13 district equals the greater of zero or the eligible debt service 118.14 revenue, excluding alternative facilities levies under section 118.15 123B.59, subdivision 5, minus the amount raised by a levy of 25 118.16 percent times the adjusted net tax capacity of the district. 118.17 [EFFECTIVE DATE.] This section is effective for revenue for 118.18 fiscal year 2005. 118.19 Sec. 5. Minnesota Statutes 2002, section 123B.57, 118.20 subdivision 1, is amended to read: 118.21 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] (a) To receive 118.22 health and safety revenue for any fiscal year a district must 118.23 submit to the commissioner an application for aid and levy by 118.24 the date determined by the commissioner. The application may be 118.25 for hazardous substance removal, fire and life safety code 118.26 repairs, labor and industry regulated facility and equipment 118.27 violations, and health, safety, and environmental management, 118.28 including indoor air quality management. The application must 118.29 include a health and safety program adopted by the school 118.30 district board. The program must include the estimated cost, 118.31 per building, of the program by fiscal year. Upon approval 118.32 through the adoption of a resolution by each of an intermediate 118.33 district's member school district boards and the approval of the 118.34 department of children, families, and learningeducation, a 118.35 school district may include its proportionate share of the costs 118.36 of health and safety projects for an intermediate district in 119.1 its application. 119.2 (b) Health and safety projects with an estimated cost of 119.3 $500,000 or more per site, approved after February 1, 2003, are 119.4 not eligible for health and safety revenue. Health and safety 119.5 projects with an estimated cost of $500,000 or more per site, 119.6 approved after February 1, 2003, that meet all other 119.7 requirements for health and safety funding, are eligible for 119.8 alternative facilities bonding and levy revenue according to 119.9 section 123B.59. A school board shall not separate portions of 119.10 a single project into components to qualify for health and 119.11 safety revenue, and shall not combine unrelated projects into a 119.12 single project to qualify for alternative facilities bonding and 119.13 levy revenue. 119.14 [EFFECTIVE DATE.] This section is effective the day 119.15 following final enactment and applies to projects approved after 119.16 February 1, 2003, for taxes payable in 2004 and later. 119.17 Sec. 6. Minnesota Statutes 2002, section 123B.57, 119.18 subdivision 4, is amended to read: 119.19 Subd. 4. [HEALTH AND SAFETY LEVY.] To receive health and 119.20 safety revenue, a district may levy an amount equal to the 119.21 district's health and safety revenue as defined in subdivision 3 119.22 multiplied by the lesser of one, or the ratio of the quotient 119.23 derived by dividing the adjusted net tax capacity of the 119.24 district for the year preceding the year the levy is certified 119.25 by the adjusted marginal cost pupil units in the district for 119.26 the school year to which the levy is attributable, 119.27 to $3,956$2,935. 119.28 Sec. 7. Minnesota Statutes 2002, section 123B.57, 119.29 subdivision 6, is amended to read: 119.30 Subd. 6. [USES OF HEALTH AND SAFETY REVENUE.] (a) Health 119.31 and safety revenue may be used only for approved expenditures 119.32 necessary to correct fire and life safety hazards, life safety119.33 hazards,or for the removal or encapsulation of asbestos from 119.34 school buildings or property owned or being acquired by the 119.35 district, asbestos-related repairs, cleanup and disposal of 119.36 polychlorinated biphenyls found in school buildings or property 120.1 owned or being acquired by the district, or the cleanup, 120.2 removal, disposal, and repairs related to storing heating fuel 120.3 or transportation fuels such as alcohol, gasoline, fuel oil, and 120.4 special fuel, as defined in section 296A.01, labor and120.5 industryMinnesota occupational safety and health administration 120.6 regulated facility and equipment hazards, indoor air quality 120.7 mold abatement, upgrades or replacement of mechanical 120.8 ventilation systems to meet American Society of Heating, 120.9 Refrigerating and Air Conditioning Engineers standards and state 120.10 mechanical code, department of health food code and swimming 120.11 pool hazards excluding depth correction, and health, safety, and 120.12 environmental management. Health and safety revenue must not be 120.13 used to finance a lease purchase agreement, installment purchase 120.14 agreement, or other deferred payments agreement. Health and 120.15 safety revenue must not be used for the construction of new 120.16 facilities or the purchase of portable classrooms, for interest 120.17 or other financing expenses, or for energy efficiency projects 120.18 under section 123B.65. The revenue may not be used for a 120.19 building or property or part of a building or property used for 120.20 post-secondary instruction or administration or for a purpose 120.21 unrelated to elementary and secondary education. 120.22 (b) Notwithstanding paragraph (a), health and safety 120.23 revenue must not be used for replacement of building materials 120.24 or facilities including roof, walls, windows, internal fixtures 120.25 and flooring, nonhealth and safety costs associated with 120.26 demolition of facilities, structural repair or replacement of 120.27 facilities due to unsafe conditions, violence prevention and 120.28 facility security, ergonomics, building and heating, ventilating 120.29 and air conditioning supplies, maintenance, cleaning, testing, 120.30 and calibration activities. All assessments, investigations, 120.31 inventories, and support equipment not leading to the 120.32 engineering or construction of a project shall be included in 120.33 the health, safety, and environmental management costs in 120.34 subdivision 8, paragraph (a). 120.35 [EFFECTIVE DATE.] This section is effective the day 120.36 following final enactment and applies to projects approved after 121.1 February 1, 2003, for taxes payable in 2004 and later. 121.2 Sec. 8. Minnesota Statutes 2002, section 123B.59, 121.3 subdivision 1, is amended to read: 121.4 Subdivision 1. [TO QUALIFY.] (a) An independent or special 121.5 school district qualifies to participate in the alternative 121.6 facilities bonding and levy program if the district has: 121.7 (1) more than 66 students per grade; 121.8 (2) over 1,850,000 square feet of space and the average age 121.9 of building space is 15 years or older or over 1,500,000 square 121.10 feet and the average age of building space is 35 years or older; 121.11 (3) insufficient funds from projected health and safety 121.12 revenue and capital facilities revenue to meet the requirements 121.13 for deferred maintenance, to make accessibility improvements, or 121.14 to make fire, safety, or health repairs; and 121.15 (4) a ten-year facility plan approved by the commissioner 121.16 according to subdivision 2. 121.17 (b) An independent or special school district not eligible 121.18 to participate in the alternative facilities bonding and levy 121.19 program under paragraph (a) qualifies for limited participation 121.20 in the program if the district has: 121.21 (1) one or more health and safety projects with an 121.22 estimated cost of $500,000 or more per site that would qualify 121.23 for health and safety revenue except for the project size 121.24 limitation in section 123B.57, subdivision 1, paragraph (b); and 121.25 (2) insufficient funds from capital facilities revenue to 121.26 fund those projects. 121.27 [EFFECTIVE DATE.] This section is effective for revenue for 121.28 fiscal year 2005. 121.29 Sec. 9. Minnesota Statutes 2002, section 123B.59, 121.30 subdivision 2, is amended to read: 121.31 Subd. 2. [ TEN-YEARFACILITY PLAN.] (a) A district 121.32 qualifying districtunder subdivision 1, paragraph (a), must 121.33 have a ten-year facility plan approved by the commissioner that 121.34 includes an inventory of projects and costs that would be 121.35 eligible for: 121.36 (1) health and safety revenue, without restriction as to 122.1 project size; 122.2 (2) disabled access levy; and 122.3 (3) deferred capital expenditures and maintenance projects 122.4 necessary to prevent further erosion of facilities. 122.5 (b) A district qualifying under subdivision 1, paragraph 122.6 (b), must have a five-year plan approved by the commissioner 122.7 that includes an inventory of projects and costs for health and 122.8 safety projects with an estimated cost of $500,000 or more per 122.9 site that would qualify for health and safety revenue except for 122.10 the project size limitation in section 123B.57, subdivision 1, 122.11 paragraph (b). 122.12 (c) The school district must: 122.13 (1) annually update the planplans; 122.14 (2) biennially submit a facility maintenance plan; and 122.15 (3) indicate whether the district will issue bonds to 122.16 finance the plan or levy for the costs. 122.17 [EFFECTIVE DATE.] This section is effective for revenue for 122.18 fiscal year 2005. 122.19 Sec. 10. Minnesota Statutes 2002, section 123B.59, 122.20 subdivision 3, is amended to read: 122.21 Subd. 3. [BOND AUTHORIZATION.] (a) A school district , upon122.22 approval of its board and the commissioner,may issue general 122.23 obligation bonds under this section to finance approved122.24 facilities plans approved by its board and the commissioner. 122.25 Chapter 475, except sections 475.58 and 475.59, must be complied 122.26 with. The district may levy under subdivision 5 for the debt 122.27 service revenue. The authority to issue bonds under this 122.28 section is in addition to any bonding authority authorized by 122.29 this chapter, or other law. The amount of bonding authority 122.30 authorized under this section must be disregarded in calculating 122.31 the bonding or net debt limits of this chapter, or any other law 122.32 other than section 475.53, subdivision 4. 122.33 (b) Before a district issues bonds under this subdivision, 122.34 it must publish notice of the intended projects, the amount of 122.35 the bond issue, and the total amount of district indebtedness. 122.36 [EFFECTIVE DATE.] This section is effective the day 123.1 following final enactment and applies to bonds issued after 123.2 April 15, 2003, for taxes payable in 2004 and later. 123.3 Sec. 11. Minnesota Statutes 2002, section 123B.59, is 123.4 amended by adding a subdivision to read: 123.5 Subd. 3a. [LEVY AUTHORIZATION.] (a) A school district may 123.6 levy under this section to finance the portion of facilities 123.7 plans approved by its board and the commissioner that are not 123.8 financed through bond issues according to subdivision 3. 123.9 (b) Before a district levies under this subdivision, it 123.10 must publish notice of the intended projects, including the 123.11 total estimated project cost. 123.12 [EFFECTIVE DATE.] This section is effective the day 123.13 following final enactment and applies to levies for taxes 123.14 payable in 2004 and later. 123.15 Sec. 12. Minnesota Statutes 2002, section 123B.59, 123.16 subdivision 5, is amended to read: 123.17 Subd. 5. [LEVY AUTHORIZED.] A district , after local board123.18 approval,may levy for costs related to an approved facility 123.19 plan as follows: 123.20 (a) if the district has indicated to the commissioner that 123.21 bonds will be issued, the district may levy for the principal 123.22 and interest payments on outstanding bonds issued according to 123.23 subdivision 3 after reduction for any alternative facilities aid123.24 receivable under subdivision 6; or 123.25 (b) if the district has indicated to the commissioner that 123.26 the plan will be funded through levy, the district may levy 123.27 according to the schedule approved in the plan after reduction123.28 for any alternative facilities aid receivable undersubdivision 123.29 63a. 123.30 [EFFECTIVE DATE.] This section is effective for taxes 123.31 payable in 2004. 123.32 Sec. 13. Minnesota Statutes 2002, section 123B.63, 123.33 subdivision 1, is amended to read: 123.34 Subdivision 1. [CREATION OF A DOWN PAYMENTCAPITAL PROJECT 123.35 REFERENDUM ACCOUNT.] A district may create a down payment123.36 capital project referendum account as a separate account in 124.1 its general fund or its building construction fund. All 124.2 proceeds from the down paymentcapital project levy must be 124.3 deposited in the capital expenditure fund and transferred to124.4 this accountproject referendum account in its general fund. 124.5 The portion of the proceeds to be used for building construction 124.6 must be transferred to the capital project referendum account in 124.7 its building construction fund. Interest income attributable to 124.8 the down paymentcapital project referendum account must be 124.9 credited to the account. 124.10 Sec. 14. Minnesota Statutes 2002, section 123B.63, 124.11 subdivision 2, is amended to read: 124.12 Subd. 2. [USES OF THE ACCOUNT.] Money in the down payment124.13 capital project referendum account must be used as a down124.14 paymentfor the futurecosts of acquisition and betterment for a 124.15 project that has been reviewed under section 123B.71 and has 124.16 been approved according to subdivision 3. 124.17 Sec. 15. Minnesota Statutes 2002, section 123B.63, 124.18 subdivision 3, is amended to read: 124.19 Subd. 3. [ FACILITIES DOWN PAYMENTCAPITAL PROJECT LEVY 124.20 REFERENDUM.] A district may levy the local tax rate approved by 124.21 a majority of the electors voting on the question to provide 124.22 funds for a down paymentfor an approved project. The election 124.23 must take place no more than five years before the estimated 124.24 date of commencement of the project. The referendum must be 124.25 held on a date set by the board. A referendum for a project not 124.26 receiving a positive review and comment by the commissioner 124.27 under section 123B.71 must be approved by at least 60 percent of 124.28 the voters at the election. The referendum may be called by the 124.29 school board and may be held: 124.30 (1) separately, before an election for the issuance of 124.31 obligations for the project under chapter 475; or 124.32 (2) in conjunction with an election for the issuance of 124.33 obligations for the project under chapter 475; or 124.34 (3) notwithstanding section 475.59, as a conjunctive 124.35 question authorizing both the down paymentcapital project levy 124.36 and the issuance of obligations for the project under chapter 125.1 475. Any obligations authorized for a project may be issued 125.2 within five years of the date of the election. 125.3 The ballot must provide a general description of the 125.4 proposed project, state the estimated total cost of the project, 125.5 state whether the project has received a positive or negative 125.6 review and comment from the commissioner, state the maximum 125.7 amount of the down paymentcapital project levy as a percentage 125.8 of net tax capacity, state the amount that will be raised by 125.9 that local tax rate in the first year it is to be levied, and 125.10 state the maximum number of years that the levy authorization 125.11 will apply. 125.12 The ballot must contain a textual portion with the 125.13 information required in this section and a question stating 125.14 substantially the following: 125.15 "Shall the down paymentcapital project levy proposed by 125.16 the board of .......... School District No. .......... be 125.17 approved?" 125.18 If approved, the amount provided by the approved local tax 125.19 rate applied to the net tax capacity for the year preceding the 125.20 year the levy is certified may be certified for the number of 125.21 years approved. 125.22 In the event a conjunctive question proposes to authorize 125.23 both the down paymentcapital project levy and the issuance of 125.24 obligations for the project, appropriate language authorizing 125.25 the issuance of obligations must also be included in the 125.26 question. 125.27 The district must notify the commissioner of the results of 125.28 the referendum. 125.29 Sec. 16. Minnesota Statutes 2002, section 123B.63, 125.30 subdivision 4, is amended to read: 125.31 Subd. 4. [EXCESS BUILDING CONSTRUCTION FUNDLEVY 125.32 PROCEEDS.] Any funds remaining in the down paymentcapital 125.33 project referendum account that are not applied to the payment 125.34 of the costs of the approved project before its final completion 125.35 must be transferred to the district's debt redemption fund. 125.36 Sec. 17. Minnesota Statutes 2002, section 126C.40, 126.1 subdivision 1, is amended to read: 126.2 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 126.3 independent or a special school district or a group of 126.4 independent or special school districts finds it economically 126.5 advantageous to rent or lease a building or land for any 126.6 instructional purposes or for school storage or furniture 126.7 repair, and it determines that the operating capital revenue 126.8 authorized under section 126C.10, subdivision 13, is 126.9 insufficient for this purpose, it may apply to the commissioner 126.10 for permission to make an additional capital expenditure levy 126.11 for this purpose. An application for permission to levy under 126.12 this subdivision must contain financial justification for the 126.13 proposed levy, the terms and conditions of the proposed lease, 126.14 and a description of the space to be leased and its proposed use. 126.15 (b) The criteria for approval of applications to levy under 126.16 this subdivision must include: the reasonableness of the price, 126.17 the appropriateness of the space to the proposed activity, the 126.18 feasibility of transporting pupils to the leased building or 126.19 land, conformity of the lease to the laws and rules of the state 126.20 of Minnesota, and the appropriateness of the proposed lease to 126.21 the space needs and the financial condition of the district. 126.22 The commissioner must not authorize a levy under this 126.23 subdivision in an amount greater than 90 percent of the cost to 126.24 the district of renting or leasing a building or land for 126.25 approved purposes. The proceeds of this levy must not be used 126.26 for custodial or other maintenance services. A district may not 126.27 levy under this subdivision for the purpose of leasing or 126.28 renting a district-owned building or site to itself. 126.29 (c) For agreements finalized after July 1, 1997, a district 126.30 may not levy under this subdivision for the purpose of leasing: 126.31 (1) a newly constructed building used primarily for regular 126.32 kindergarten, elementary, or secondary instruction; or (2) a 126.33 newly constructed building addition or additions used primarily 126.34 for regular kindergarten, elementary, or secondary instruction 126.35 that contains more than 20 percent of the square footage of the 126.36 previously existing building. 127.1 (d) Notwithstanding paragraph (b), a district may levy 127.2 under this subdivision for the purpose of leasing or renting a 127.3 district-owned building or site to itself only if the amount is 127.4 needed by the district to make payments required by a lease 127.5 purchase agreement, installment purchase agreement, or other 127.6 deferred payments agreement authorized by law, and the levy 127.7 meets the requirements of paragraph (c). A levy authorized for 127.8 a district by the commissioner under this paragraph may be in 127.9 the amount needed by the district to make payments required by a 127.10 lease purchase agreement, installment purchase agreement, or 127.11 other deferred payments agreement authorized by law, provided 127.12 that any agreement include a provision giving the school 127.13 districts the right to terminate the agreement annually without 127.14 penalty. 127.15 (e) The total levy under this subdivision for a district 127.16 for any year must not exceed $100$90 times the resident pupil 127.17 units for the fiscal year to which the levy is attributable. 127.18 (f) For agreements for which a review and comment have been 127.19 submitted to the department of children, families, and127.20 learningeducation after April 1, 1998, the term "instructional 127.21 purpose" as used in this subdivision excludes expenditures on 127.22 stadiums. 127.23 (g) The commissioner of children, families, and127.24 learningeducation may authorize a school district to exceed the 127.25 limit in paragraph (e) if the school district petitions the 127.26 commissioner for approval. The commissioner shall grant 127.27 approval to a school district to exceed the limit in paragraph 127.28 (e) for not more than five years if the district meets the 127.29 following criteria: 127.30 (1) the school district has been experiencing pupil 127.31 enrollment growth in the preceding five years; 127.32 (2) the purpose of the increased levy is in the long-term 127.33 public interest; 127.34 (3) the purpose of the increased levy promotes colocation 127.35 of government services; and 127.36 (4) the purpose of the increased levy is in the long-term 128.1 interest of the district by avoiding over construction of school 128.2 facilities. 128.3 (h) A school district that is a member of an intermediate 128.4 school district may include in its authority under this 128.5 section 90 percent of the costs associated with leases of 128.6 administrative and classroom space for intermediate school 128.7 district programs. This authority must not exceed $25$22.50 128.8 times the adjusted marginal cost pupil units of the member 128.9 districts. This authority is in addition to any other authority 128.10 authorized under this section. 128.11 (i) In addition to the allowable capital levies in 128.12 paragraph (a), a district that is a member of the "Technology 128.13 and Information Education Systems" data processing joint board, 128.14 that finds it economically advantageous to enter into a lease 128.15 purchase agreement for a building for a group of school 128.16 districts or special school districts for staff development 128.17 purposes, may levy for its portion of lease costs attributed to 128.18 the district within the total levy limit in paragraph (e). 128.19 [EFFECTIVE DATE.] This section is effective for taxes 128.20 payable in 2004. 128.21 Sec. 18. Minnesota Statutes 2002, section 126C.63, 128.22 subdivision 5, is amended to read: 128.23 Subd. 5. [LEVY.] "Levy" means a district's net debt 128.24 service levy after the reduction of debt service equalization 128.25 aid under section 123B.53, subdivision 6. For taxes payable in 128.26 19942003 and later, each district's maximum effort debt service 128.27 levy for purposes of subdivision 8, must be reduced by an equal 128.28 number of percentage points if the commissioner of finance 128.29 determines that the levy reduction will not result in 128.30 a statewide property taxpayment from the general fund in the 128.31 state treasury according to section 16A.641, as would be 128.32 required under Minnesota Statutes 1992, section 124.46126C.72, 128.33 subdivision 3. A district's levy that is adjusted under this 128.34 section must not be reduced below 22.330.1 percent of the 128.35 district's adjusted net tax capacity. 128.36 Sec. 19. Minnesota Statutes 2002, section 126C.63, 129.1 subdivision 8, is amended to read: 129.2 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 129.3 effort debt service levy" means the lesser of: 129.4 (1) a levy in whichever of the following amounts is 129.5 applicable: 129.6 (a)(i) in any district receiving a debt service loan for a 129.7 debt service levy payable in 2002 and thereafter, or granted a 129.8 capital loan after January 1, 20012002, a levy in total dollar 129.9 amount computed at a rate of 3040 percent of adjusted net tax 129.10 capacity for taxes payable in 2002 and thereafter; 129.11 (b)(ii) in any district receiving a debt service loan for 129.12 a debt service levy payable in 1991 and thereafter2001 or 129.13 earlier, or granted a capital loan afterbefore January 1129.14 2, 19902001, a levy in a total dollar amount computed at a rate 129.15 of 2432 percent of adjusted net tax capacity for taxes payable 129.16 in 19912002 and thereafter; 129.17 (c) in any district granted a debt service loan after July129.18 31, 1981, or granted a capital loan which is approved after July129.19 31, 1981, a levy in a total dollar amount computed as a tax rate129.20 of 21.92 percent on the adjusted net tax capacity for taxes129.21 payable in 1991 and thereafter;or 129.22 (2) a levy in any district for which a capital loan was 129.23 approved prior to August 1, 1981, a levy in a total dollar 129.24 amount equal to the sum of the amount of the required debt 129.25 service levy and an amount which when levied annually will in 129.26 the opinion of the commissioner be sufficient to retire the 129.27 remaining interest and principal on any outstanding loans from 129.28 the state within 30 years of the original date when the capital 129.29 loan was granted. 129.30 (b) The board in any district affected by the provisions of 129.31 paragraph (a), clause (2), may elect instead to determine the 129.32 amount of its levy according to the provisions of paragraph (a), 129.33 clause (1). If a district's capital loan is not paid within 30 129.34 years because it elects to determine the amount of its levy 129.35 according to the provisions of paragraph (a), clause (2), the 129.36 liability of the district for the amount of the difference 130.1 between the amount it levied under paragraph (a), clause (2), 130.2 and the amount it would have levied under paragraph (a), clause 130.3 (1), and for interest on the amount of that difference, must not 130.4 be satisfied and discharged pursuant to Minnesota Statutes 1988, 130.5 or an earlier edition of Minnesota Statutes if applicable, 130.6 section 124.43, subdivision 4. 130.7 Sec. 20. Minnesota Statutes 2002, section 126C.69, 130.8 subdivision 2, is amended to read: 130.9 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 130.10 1999, a district is not eligible for a capital loan unless the 130.11 district's estimated net debt tax rate as computed by the 130.12 commissioner after debt service equalization aid would be more 130.13 than 3040 percent of adjusted net tax capacity. The estimate 130.14 must assume a 20-year maturity schedule for new debt. 130.15 Sec. 21. Minnesota Statutes 2002, section 126C.69, 130.16 subdivision 9, is amended to read: 130.17 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 130.18 recommended for approval for a district exceeding an amount 130.19 computed as follows: 130.20 (1) the amount requested by the district under subdivision 130.21 6; 130.22 (2) plus the aggregate principal amount of general 130.23 obligation bonds of the district outstanding on June 30 of the 130.24 year following the year the application was received, not 130.25 exceeding the limitation on net debt of the district in section 130.26 475.53, subdivision 4, or 450607 percent of its adjusted net 130.27 tax capacity as most recently determined, whichever is less; 130.28 (3) less the maximum net debt permissible for the district 130.29 on December 1 of the year the application is received, under the 130.30 limitation in section 475.53, subdivision 4, or 450607 percent 130.31 of its adjusted net tax capacity as most recently determined, 130.32 whichever is less; 130.33 (4) less any amount by which the amount voted exceeds the 130.34 total cost of the facilities for which the loan is granted. 130.35 (b) The loan may be approved in an amount computed as 130.36 provided in paragraph (a), clauses (1) to (3), subject to later 131.1 reduction according to paragraph (a), clause (4). 131.2 Sec. 22. Minnesota Statutes 2002, section 475.61, 131.3 subdivision 1, is amended to read: 131.4 Subdivision 1. [DEBT SERVICE RESOLUTION.] The governing 131.5 body of any municipality issuing general obligations shall, 131.6 prior to delivery of the obligations, levy by resolution a 131.7 direct general ad valorem tax upon all taxable property in the 131.8 municipality to be spread upon the tax rolls for each year of 131.9 the term of the obligations. The tax levies for all years for 131.10 municipalities other than school districts shall be specified 131.11 and such that if collected in full they, together with estimated 131.12 collections of special assessments and other revenues pledged 131.13 for the payment of said obligations, will produce at least five 131.14 percent in excess of the amount needed to meet when due the 131.15 principal and interest payments on the obligations. The tax 131.16 levies for school districts shall be specified and such that if 131.17 collected in full they, together with estimated collection of 131.18 other revenues pledged for the payment of the obligations, will 131.19 produce betweenfive and sixpercent in excess of the amount 131.20 needed to meet when due the principal and interest payments on 131.21 the obligations, rounded up to the nearest dollar; except that, 131.22 with the permission of the commissioner of children, families,131.23 and learningeducation, a school board may specify a tax levy in 131.24 a higher amount if necessary either to meet an anticipated tax 131.25 delinquency or for cash flow needs to meet the required payments 131.26 from the debt redemption fund. Such resolution shall 131.27 irrevocably appropriate the taxes so levied and any special 131.28 assessments or other revenues so pledged to the municipality's 131.29 debt service fund or a special debt service fund or account 131.30 created for the payment of one or more issues of obligations. 131.31 The governing body may, in its discretion, at any time after the 131.32 obligations have been authorized, adopt a resolution levying 131.33 only a portion of such taxes, to be filed, assessed, extended, 131.34 collected, and remitted as hereinafter provided, and the amount 131.35 or amounts therein levied shall be credited against the tax 131.36 required to be levied prior to delivery of the obligations. 132.1 Sec. 23. Minnesota Statutes 2002, section 475.61, 132.2 subdivision 3, is amended to read: 132.3 Subd. 3. [IRREVOCABILITY.] (a) Tax levies so made and 132.4 filed shall be irrevocable, except as provided in this 132.5 subdivision. 132.6 (b) For purposes of this subdivision, "excess debt 132.7 redemption fund balance" means the greater of zero or the 132.8 balance in the district's debt redemption fund as of June 30 of 132.9 the fiscal year ending in the year before the year the levy is 132.10 certified, minus any debt redemption fund balance attributable 132.11 to refunding of existing bonds, minus the amount of the levy 132.12 reduction for the current year and the prior year under 132.13 paragraphs (e) and (f), minus five percent of the district's 132.14 required debt service levy for the next year. 132.15 (c) By July 15 each year, a district shall report to the 132.16 commissioner of children, families, and learningeducation the 132.17 amount of the districts' debt redemption fund balance as of June 132.18 30 of the prior year attributable to refunding of existing bonds. 132.19 (d) By August 15 each year, the commissioner shall 132.20 determine the excess debt redemption fund balance for each 132.21 school district, and shall certify the amount of the excess 132.22 balance to the school district superintendent. 132.23 (e) In each year when a district has an excess debt 132.24 redemption fund balance, the commissioner shall report the132.25 amount of the excess to the county auditor and the auditor shall132.26 reduce the tax levy otherwise to be included in the rolls next 132.27 prepared by the amount certified. 132.28 (f) The school board may, with the approval of the 132.29 commissioner, retain all or part of the excess balance if it is 132.30 necessary to ensure the prompt and full payment of its 132.31 obligations and any call premium on its obligations, will be 132.32 used for redemption of its obligations in accordance with their 132.33 terms, or to level out the debt service tax rate, excluding the 132.34 debt excess adjustment, for its obligations over the next two 132.35 years. A school district requesting authority to retain all or 132.36 part of the excess balance shall provide written documentation 133.1 to the commissioner describing the rationale for its request by 133.2 September 15 including the issuance of new obligations within 133.3 the next year or the refunding of existing obligations. A 133.4 school district that retains an excess may request to transfer 133.5 the excess to its operating capital account in the general fund 133.6 under section 123B.80. The school board may, with the approval 133.7 of the commissioner, specify a tax levy in a higher amount if 133.8 necessary because of anticipated tax delinquency or for cash 133.9 flow needs to meet the required payments from the debt 133.10 redemption fund. 133.11 (g) If the governing body, including the governing body of 133.12 a school district, in any year makes an irrevocable 133.13 appropriation to the debt service fund of money actually on hand 133.14 or if there is on hand any excess amount in the debt service 133.15 fund, the recording officer may certify to the county auditor 133.16 the fact and amount thereof and the auditor shall reduce by the 133.17 amount so certified the amount otherwise to be included in the 133.18 rolls next thereafter prepared. 133.19 Sec. 24. [BONDS; MOUNDS VIEW.] 133.20 Notwithstanding Minnesota Statutes, section 123B.59, 133.21 subdivision 3, independent school district No. 621, Mounds View, 133.22 may issue bonds according to Minnesota Statutes 2002, section 133.23 123B.59, subdivision 3, for projects approved by the 133.24 commissioner before February 1, 2003. 133.25 [EFFECTIVE DATE.] This section is effective the day 133.26 following final enactment. 133.27 Sec. 25. [LEASE LEVY EXCEPTION.] 133.28 Notwithstanding Minnesota Statutes, section 126C.40, 133.29 subdivision 1, a school district that has entered into a 133.30 completed agreement under Laws 2000, chapter 492, article 1, 133.31 section 3, subdivision 4, may continue to levy for 100 percent 133.32 of the costs of any lease required by the agreement. 133.33 Sec. 26. [PROPERTY SALE; ST. FRANCIS SCHOOL DISTRICT.] 133.34 Notwithstanding Minnesota Statutes, section 123B.51, 133.35 subdivision 6, or any other law to the contrary, independent 133.36 school district No. 15, St. Francis, may deposit the proceeds 134.1 from the sale of land that was purchased with funds obtained 134.2 according to Laws 1992, chapter 558, section 7, subdivision 7, 134.3 in the district's general fund reserved for operating capital 134.4 account. The district may only use the proceeds of the sale for 134.5 projects designed to create or improve safe walking routes for 134.6 the students of independent school district No. 15, St. Francis. 134.7 [EFFECTIVE DATE.] This section is effective the day 134.8 following final enactment. 134.9 Sec. 27. [DISABLED ACCESS LEVY AUTHORITY; SOUTHLAND.] 134.10 Notwithstanding the time limits in Minnesota Statutes, 134.11 section 123B.58, subdivision 3, independent school district No. 134.12 500, Southland, may levy up to $66,000 of its remaining disabled 134.13 access levy authority over five or fewer years. 134.14 [EFFECTIVE DATE.] This section is effective the day 134.15 following final enactment. 134.16 Sec. 28. [LEVY; ELGIN-MILLVILLE.] 134.17 Subdivision 1. [LEVY.] For taxes payable in 2004 only, 134.18 independent school district No. 806, Elgin-Millville, may levy 134.19 an amount up to $8,000 for handicapped access and fire safety 134.20 improvements to school buildings. 134.21 Subd. 2. [LEVY LIMITATION.] The sum of the levy in 134.22 subdivision 1 and other levies under Minnesota Statutes, section 134.23 123B.58, must not exceed $300,000. 134.24 [EFFECTIVE DATE.] This section is effective for revenue for 134.25 fiscal year 2005 and thereafter. 134.26 Sec. 29. [GARAGE LEASE LEVY; SARTELL.] 134.27 For taxes payable in 2004, 2005, and 2006, independent 134.28 school district No. 740, Sartell, may levy up to $107,000 each 134.29 year for the purpose of leasing a school bus storage facility. 134.30 The department of education shall include this levy in the 134.31 calculation of eligible building lease levy under Minnesota 134.32 Statutes, section 126C.40, subdivision 1. This levy shall not 134.33 allow the district to exceed the $100 per resident marginal cost 134.34 pupil unit cap in that section. The district is eligible to 134.35 make this levy only if it sells its current school bus storage 134.36 site to the city of Sartell and the district may not use this 135.1 levy as part of a lease purchase agreement to replace its 135.2 current school bus storage facility. 135.3 Sec. 30. [HEALTH AND SAFETY EXCEPTION, ULEN-HITTERDAL.] 135.4 Notwithstanding Minnesota Statutes, section 123B.57, 135.5 independent school district No. 914, Ulen-Hitterdal, may submit 135.6 to the commissioner of education an application that the 135.7 demolition of a portion of the Ulen high school building be 135.8 included in its health and safety revenue for fiscal year 2005. 135.9 The department of education shall consider the district's 135.10 application for health and safety revenue based on the 135.11 eligibility criteria under Minnesota Statutes 2002, section 135.12 123B.57. 135.13 [EFFECTIVE DATE.] This section is effective the day 135.14 following final enactment. 135.15 Sec. 31. [APPROPRIATIONS.] 135.16 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 135.17 indicated in this section are appropriated from the general fund 135.18 to the department of education for the fiscal years designated. 135.19 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 135.20 safety aid according to Minnesota Statutes, section 123B.57, 135.21 subdivision 5: 135.22 $7,839,000 ..... 2004 135.23 $6,068,000 ..... 2005 135.24 The 2004 appropriation includes $1,516,000 for 2003 and 135.25 $6,323,000 for 2004. 135.26 The 2005 appropriation includes $1,580,000 for 2004 and 135.27 $4,488,000 for 2005. 135.28 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 135.29 according to Minnesota Statutes, section 123B.53, subdivision 6: 135.30 $34,500,000 ..... 2004 135.31 $37,575,000 ..... 2005 135.32 The 2004 appropriation includes $5,586,000 for 2003 and 135.33 $28,914,000 for 2004. 135.34 The 2005 appropriation includes $7,228,000 for 2004 and 135.35 $30,347,000 for 2005. 135.36 Subd. 4. [ALTERNATIVE FACILITIES BONDING AID.] For 136.1 alternative facilities bonding aid, according to Minnesota 136.2 Statutes, section 123B.59, subdivision 1: 136.3 $18,708,000 ..... 2004 136.4 $19,287,000 ..... 2005 136.5 The 2004 appropriation includes $3,278,000 for 2003 and 136.6 $15,430,000 for 2004. 136.7 The 2005 appropriation includes $3,857,000 for 2004 and 136.8 $15,430,000 for 2005. 136.9 Sec. 32. [REPEALER.] 136.10 Minnesota Statutes 2002, section 125B.11, is repealed. 136.11 ARTICLE 5 136.12 NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS 136.13 Section 1. Minnesota Statutes 2002, section 12.21, 136.14 subdivision 3, is amended to read: 136.15 Subd. 3. [SPECIFIC AUTHORITY.] In performing duties under 136.16 this chapter and to effect its policy and purpose, the governor 136.17 may: 136.18 (1) make, amend, and rescind the necessary orders and rules 136.19 to carry out the provisions of this chapter and section 216C.15 136.20 within the limits of the authority conferred by this section, 136.21 with due consideration of the plans of the federal government 136.22 and without complying with sections 14.001 to 14.69, but no 136.23 order or rule has the effect of law except as provided by 136.24 section 12.32; 136.25 (2) ensure that a comprehensive emergency operations plan 136.26 and emergency management program for this state are developed 136.27 and maintained, and are integrated into and coordinated with the 136.28 emergency plans of the federal government and of other states to 136.29 the fullest possible extent; 136.30 (3) in accordance with the emergency operations plan and 136.31 the emergency management program of this state, procure 136.32 supplies, equipment, and facilities; institute training programs 136.33 and public information programs; and take all other preparatory 136.34 steps, including the partial or full activation of emergency 136.35 management organizations in advance of actual disaster to ensure 136.36 the furnishing of adequately trained and equipped forces of 137.1 emergency management personnel in time of need; 137.2 (4) make studies and surveys of the industries, resources, 137.3 and facilities in this state as may be necessary to ascertain 137.4 the capabilities of the state for emergency management and to 137.5 plan for the most efficient emergency use of those industries, 137.6 resources, and facilities; 137.7 (5) on behalf of this state, enter into mutual aid 137.8 arrangements or cooperative agreements with other states, tribal 137.9 authorities, and Canadian provinces, and coordinate mutual aid 137.10 plans between political subdivisions of this state; 137.11 (6) delegate administrative authority vested in the 137.12 governor under this chapter, except the power to make rules, and 137.13 provide for the subdelegation of that authority; 137.14 (7) cooperate with the president and the heads of the armed 137.15 forces, the emergency management agency of the United States and 137.16 other appropriate federal officers and agencies, and with the 137.17 officers and agencies of other states in matters pertaining to 137.18 the emergency management of the state and nation, including the 137.19 direction or control of: 137.20 (i) emergency preparedness drills and exercises; 137.21 (ii) warnings and signals for drills or actual emergencies 137.22 and the mechanical devices to be used in connection with them; 137.23 (iii) shutting off water mains, gas mains, electric power 137.24 connections and the suspension of all other utility services; 137.25 (iv) the conduct of persons in the state, including 137.26 entrance or exit from any stricken or threatened public place, 137.27 occupancy of facilities, and the movement and cessation of 137.28 movement of pedestrians, vehicular traffic, and all forms of 137.29 private and public transportation during, prior, and subsequent 137.30 to drills or actual emergencies; 137.31 (v) public meetings or gatherings; and 137.32 (vi) the evacuation, reception, and sheltering of persons; 137.33 (8) contribute to a political subdivision, within the 137.34 limits of the appropriation for that purpose, not more than 25 137.35 percent of the cost of acquiring organizational equipment that 137.36 meets standards established by the governor; 138.1 (9) formulate and execute, with the approval of the 138.2 executive council, plans and rules for the control of traffic in 138.3 order to provide for the rapid and safe movement over public 138.4 highways and streets of troops, vehicles of a military nature, 138.5 and materials for national defense and war or for use in any war 138.6 industry, for the conservation of critical materials, or for 138.7 emergency management purposes; coordinate the activities of the 138.8 departments or agencies of the state and its political 138.9 subdivisions concerned directly or indirectly with public 138.10 highways and streets, in a manner that will best effectuate 138.11 those plans; 138.12 (10) alter or adjust by executive order, without complying 138.13 with sections 14.01 to 14.69, the working hours, work days and 138.14 work week of, and annual and sick leave provisions and payroll 138.15 laws regarding all state employees in the executive branch as 138.16 the governor deems necessary to minimize the impact of the 138.17 disaster or emergency, conforming the alterations or adjustments 138.18 to existing state laws, rules, and collective bargaining 138.19 agreements to the extent practicable; 138.20 (11) authorize the commissioner of children, families, and138.21 learningeducation to alter school schedules, curtail school 138.22 activities, or order schools closed without affecting state aid138.23 to schools,as defined in section 120A.05, subdivisions 9, 11, 138.24 13, and 17, and including charter schools under section 124D.10, 138.25 and elementary schools enrolling prekindergarten pupils in 138.26 district programs; and 138.27 (12) transfer the direction, personnel, or functions of 138.28 state agencies to perform or facilitate response and recovery 138.29 programs. 138.30 Sec. 2. Minnesota Statutes 2002, section 84A.51, 138.31 subdivision 4, is amended to read: 138.32 Subd. 4. [COUNTY'S USE OF FUNDS.] The funds received by 138.33 each county must be apportioned by the county auditor as follows: 138.34 (1) 30 percent to a county development fund, which is 138.35 created, to be spent under the direction of the county board for 138.36 the rehabilitation and development of the portion of the county 139.1 within the conservation area; 139.2 (2) 40 percent to the capital outlaygeneral fund of the 139.3 school district from which derived; 139.4 (3) 20 percent to the county revenue fund; and 139.5 (4) ten percent to the township road and bridge fund of the 139.6 township from which derived. 139.7 If the proceeds are derived from an unorganized township 139.8 with no levy for road and bridge purposes, the township portion 139.9 must be credited to the county revenue fund. 139.10 Sec. 3. Minnesota Statutes 2002, section 120A.05, 139.11 subdivision 9, is amended to read: 139.12 Subd. 9. [ELEMENTARY SCHOOL.] "Elementary school" means 139.13 any school with building, equipment, courses of study, class 139.14 schedules, enrollment of pupils ordinarily in prekindergarten 139.15 through grade 6 or any portion thereof, and staff meeting the 139.16 standards established by the commissioner. 139.17 The commissioner of children, families, and learning shall139.18 not close a school or deny any state aids to a district for its139.19 elementary schools because of enrollment limitations classified139.20 in accordance with the provisions of this subdivision.139.21 Sec. 4. Minnesota Statutes 2002, section 123B.75, 139.22 subdivision 5, is amended to read: 139.23 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 139.24 settlement revenue" means the current, delinquent, and 139.25 manufactured home property tax receipts collected by the county 139.26 and distributed to the school district. 139.27 (b) In June of 2001, the school district must recognize as139.28 revenue, in the fund for which the levy was made, the lesser of:139.29 (1) the sum of May, June, and July school district tax139.30 settlement revenue received in that calendar year plus general139.31 education aid according to section 126C.13, subdivision 4,139.32 received in July and August of that calendar year; or139.33 (2) the sum of:139.34 (i) 31 percent of the referendum levy certified in the139.35 prior calendar year according to section 126C.17, subdivision 9;139.36 plus140.1 (ii) the entire amount of the levy certified in the prior140.2 calendar year according to sections 124D.86, subdivision 4, for140.3 school districts receiving revenue under 124D.86, subdivision 3,140.4 clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,140.5 paragraphs (4), (5), and (6); 126C.43, subdivision 2; and140.6 126C.48, subdivision 6.140.7 (c) For fiscal year 2002 and later years,In June of each140.8 year2003, the school district must recognize as revenue, in the 140.9 fund for which the levy was made, the lesser of: 140.10 (1) the sum of May, June, and July school district tax 140.11 settlement revenue received in that calendar year, plus general 140.12 education aid according to section 126C.13, subdivision 4, 140.13 received in July and August of that calendar year; or 140.14 (2) the sum of: 140.15 (i) 31 percent of the referendum levy certified according 140.16 to section 126C.17, in calendar year 2000; plus 140.17 (ii) the entire amount of the levy certified in the prior 140.18 calendar year according to section 124D.86, subdivision 4, for 140.19 school districts receiving revenue under sections 124D.86, 140.20 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 140.21 1, 2, and 3, paragraphs (4)(b), (5)(c), and (6)(d); 140.22 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 6. 140.23 (c) For fiscal year 2004 and later years, in June of each 140.24 year, the school district must recognize as revenue, in the fund 140.25 for which the levy was made, the lesser of: 140.26 (1) the sum of May, June, and July school district tax 140.27 settlement revenue received in that calendar year, plus general 140.28 education aid according to section 126C.13, subdivision 4, 140.29 received in July and August of that calendar year; or 140.30 (2) the sum of: 140.31 (i) the greater of the percent of the referendum levy 140.32 certified according to section 126C.17, in the prior calendar 140.33 year or 45 percent of the referendum levy certified according to 140.34 section 126C.17, in calendar year 2000; plus 140.35 (ii) the entire amount of the levy certified in the prior 140.36 calendar year according to section 124D.86, subdivision 4, for 141.1 school districts receiving revenue under sections 124D.86, 141.2 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 141.3 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 141.4 2; 126C.457; and 126C.48, subdivision 6; plus 141.5 (iii) 45 percent of the amount of the levy certified in the 141.6 prior calendar year for the school district's general and 141.7 community service funds, plus or minus auditor's adjustments, 141.8 not including levy portions that are assumed by the state, that 141.9 remains after subtracting the referendum levy certified 141.10 according to section 126C.17 and the amount recognized according 141.11 to clause (ii). 141.12 (3) For fiscal year 2005 and later, the percent of the 141.13 referendum levy that is shifted is the greater of 31 percent or 141.14 the percent computed under paragraph (c), clause (2), item (i), 141.15 for fiscal year 2004. 141.16 Sec. 5. Minnesota Statutes 2002, section 124D.11, 141.17 subdivision 9, is amended to read: 141.18 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 141.19 Notwithstanding section 127A.45, subdivision 3, aid payments for 141.20 the current fiscal year to a charter school not in its first 141.21 year of operation shall be of an equal amount on each of the 23 141.22 payment dates. A charter school in its first year of operation 141.23 shall receive, on its first payment date, ten percent of its 141.24 cumulative amount guaranteed for the year and 22 payments of an 141.25 equal amount thereafter the sum of which shall be 90 percent of 141.26 the cumulative amount guaranteed. 141.27 (b) Notwithstanding paragraph (a), for a charter school 141.28 ceasing operation prior to the end of a school year, 8380 141.29 percent of the amount due for the school year may be paid to the 141.30 school after audit of prior fiscal year and current fiscal year 141.31 pupil counts. 141.32 (c) Notwithstanding section 127A.45, subdivision 3, and 141.33 paragraph (a), 8380 percent of the start-up cost aid under 141.34 subdivision 8 shall be paid within 45 days after the first day 141.35 of student attendance for that school year. 141.36 (d) In order to receive state aid payments under this 142.1 subdivision, a charter school in its first three years of 142.2 operation must submit a quarterly report to the department of 142.3 children, families, and learningeducation. The report must 142.4 list each student by grade, show the student's start and end 142.5 dates, if any, with the charter school, and for any student 142.6 participating in a learning year program, the report must list 142.7 the hours and times of learning year activities. The report 142.8 must be submitted not more than two weeks after the end of the 142.9 calendar quarter to the department. The department must develop 142.10 a Web-based reporting form for charter schools to use when 142.11 submitting enrollment reports. A charter school in its fourth 142.12 and subsequent year of operation must submit enrollment 142.13 information to the department in the form and manner requested 142.14 by the department. 142.15 [EFFECTIVE DATE.] This section is effective for revenue for 142.16 fiscal year 2004. 142.17 Sec. 6. [124D.1158] [SCHOOL BREAKFAST PROGRAM.] 142.18 Subdivision 1. [PURPOSE.] The purpose of the school 142.19 breakfast program is to provide affordable morning nutrition to 142.20 children so that they can effectively learn. Public and 142.21 nonpublic schools that participate in the federal school 142.22 breakfast program may receive state breakfast aid. Schools 142.23 shall encourage all children to eat a nutritious breakfast, 142.24 either at home or at school, and shall work to eliminate 142.25 barriers to breakfast participation at school such as inadequate 142.26 facilities and transportation. 142.27 Subd. 2. [PROGRAM; ELIGIBILITY.] Each school year, public 142.28 and nonpublic schools that participate in the federal school 142.29 breakfast program are eligible for the state breakfast program. 142.30 Subd. 3. [PROGRAM REIMBURSEMENT.] Each school year, the 142.31 state must reimburse each participating school 30 cents for each 142.32 reduced price breakfast and 55 cents for each fully paid 142.33 breakfast. 142.34 Subd. 4. [NO FEES.] A school that receives school 142.35 breakfast aid under this section must make breakfast available 142.36 without charge to all participating students who qualify for 143.1 free or reduced price meals. 143.2 Sec. 7. Minnesota Statutes 2002, section 124D.118, 143.3 subdivision 4, is amended to read: 143.4 Subd. 4. [REIMBURSEMENT.] In accordance with program 143.5 guidelines, the commissioner shall prepay orreimburse each 143.6 participating districts for the state share of the district's143.7 cost for providingpublic or nonpublic school nine cents for 143.8 each half-pint of milk that is served to kindergarten students 143.9 and is not part of a school lunch or breakfast reimbursed under 143.10 section 124D.111 or 124D.1158. 143.11 Sec. 8. Minnesota Statutes 2002, section 126C.42, 143.12 subdivision 1, is amended to read: 143.13 Subdivision 1. [1977 STATUTORY OPERATING DEBT.] (a) In 143.14 each year in which so required by this subdivision, a district 143.15 must make an additional levy to eliminate its statutory 143.16 operating debt, determined as of June 30, 1977, and certified 143.17 and adjusted by the commissioner. This levy shall not be made 143.18 in more than 30 successive years and each year before it is 143.19 made, it must be approved by the commissioner and the approval 143.20 shall specify its amount. This levy shall be an amount which is 143.21 equal to the amount raised by a levy of a net tax rate of 1.98143.22 2.67 percent times the adjusted net tax capacity of the district 143.23 for the preceding year for taxes payable in 20002002 and 143.24 thereafter; provided that in the last year in which the district 143.25 is required to make this levy, it must levy an amount not to 143.26 exceed the amount raised by a levy of a net tax rate of 1.98143.27 2.67 percent times the adjusted net tax capacity of the district 143.28 for the preceding year for taxes payable in 20002002 and 143.29 thereafter. When the sum of the cumulative levies made pursuant 143.30 to this subdivision and transfers made according to section 143.31 123B.79, subdivision 6, equals an amount equal to the statutory 143.32 operating debt of the district, the levy shall be discontinued. 143.33 (b) The district must establish a special account in the 143.34 general fund which shall be designated "appropriated fund 143.35 balance reserve account for purposes of reducing statutory 143.36 operating debt" on its books and records. This account shall 144.1 reflect the levy authorized pursuant to this subdivision. The 144.2 proceeds of this levy must be used only for cash flow 144.3 requirements and must not be used to supplement district 144.4 revenues or income for the purposes of increasing the district's 144.5 expenditures or budgets. 144.6 (c) Any district which is required to levy pursuant to this144.7 subdivision must certify the maximum levy allowable under144.8 section 126C.13, subdivision 2, in that same year.144.9 (d)Each district shall make permanent fund balance 144.10 transfers so that the total statutory operating debt of the 144.11 district is reflected in the general fund as of June 30, 1977. 144.12 Sec. 9. Minnesota Statutes 2002, section 126C.43, 144.13 subdivision 2, is amended to read: 144.14 Subd. 2. [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 144.15 FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 144.16 levy 90 percent of the amountsamount exceeding $10 times the 144.17 district's adjusted marginal cost pupil units for the fiscal 144.18 year ending in the year before the year the levy is certified 144.19 necessary (i) to pay the district's obligations under section 144.20 268.052, subdivision 1, and the amounts necessary(ii) to pay 144.21 for job placement services offered to employees who may become 144.22 eligible for benefits pursuant to section 268.085 for the fiscal 144.23 year the levy is certified. 144.24 [EFFECTIVE DATE.] This section is effective for taxes 144.25 payable in 2004. 144.26 Sec. 10. Minnesota Statutes 2002, section 126C.43, 144.27 subdivision 3, is amended to read: 144.28 Subd. 3. [TAX LEVY FOR JUDGMENT.] A district may levy 90 144.29 percent of the amountsamount exceeding $10 times the district's 144.30 adjusted marginal cost pupil units for the fiscal year ending in 144.31 the year before the year the levy is certified necessary to pay 144.32 judgments against the district under section 123B.25 that became 144.33 final after the date the district certified its proposed levy in 144.34 the previous year. With the approval of the commissioner, a 144.35 district may spread this levy over a period not to exceed three 144.36 years. Upon approval through the adoption of a resolution by 145.1 each of an intermediate district's member school district 145.2 boards, a member school district may include its proportionate 145.3 share of the costs of a judgment against an intermediate school 145.4 district that became final under section 123B.25 after the date 145.5 that the earliest member school district certified its proposed 145.6 levy in the previous year. With the approval of the 145.7 commissioner, an intermediate school district member school 145.8 district may spread this levy over a period not to exceed three 145.9 years. 145.10 [EFFECTIVE DATE.] This section is effective for taxes 145.11 payable in 2004. 145.12 Sec. 11. [127A.441] [AID REDUCTION; LEVY REVENUE 145.13 RECOGNITION CHANGE.] 145.14 Each year, the state aids payable to any school district 145.15 for that fiscal year that are recognized as revenue in the 145.16 school district's general and community service funds shall be 145.17 adjusted by an amount equal to (1) the amount the district 145.18 recognized as revenue for the prior fiscal year pursuant to 145.19 section 123B.75, subdivision 5, paragraph (b) or (c), minus (2) 145.20 the amount the district recognized as revenue for the current 145.21 fiscal year pursuant to section 123B.75, subdivision 5, 145.22 paragraph (c). For purposes of making the aid adjustments under 145.23 this section, the amount the district recognizes as revenue for 145.24 either the prior fiscal year or the current fiscal year pursuant 145.25 to section 123B.75, subdivision 5, paragraph (b) or (c), shall 145.26 not include any amount levied pursuant to section 124D.86, 145.27 subdivision 4, for school districts receiving revenue under 145.28 sections 124D.86, subdivision 3, clauses (1), (2), and (3); 145.29 126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 145.30 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 6. 145.31 Payment from the permanent school fund shall not be adjusted 145.32 pursuant to this section. The school district shall be notified 145.33 of the amount of the adjustment made to each payment pursuant to 145.34 this section. 145.35 Sec. 12. Minnesota Statutes 2002, section 126C.45, is 145.36 amended to read: 146.1 126C.45 [ICE ARENA LEVY.] 146.2 (a) Each year, an independent school district operating and 146.3 maintaining an ice arena, may levy for the net operational costs 146.4 of the ice arena. The levy may not exceed 90 percent of the net 146.5 actual costs of operation of the arena for the previous year. 146.6 Net actual costs are defined as operating costs less any 146.7 operating revenues. 146.8 (b) Any district operating and maintaining an ice arena 146.9 must demonstrate to the satisfaction of the office of monitoring 146.10 in the department that the district will offer equal sports 146.11 opportunities for male and female students to use its ice arena, 146.12 particularly in areas of access to prime practice time, team 146.13 support, and providing junior varsity and younger level teams 146.14 for girls' ice sports and ice sports offerings. 146.15 [EFFECTIVE DATE.] This section is effective for taxes 146.16 payable in 2004. 146.17 Sec. 13. Minnesota Statutes 2002, section 126C.48, 146.18 subdivision 3, is amended to read: 146.19 Subd. 3. [ADJUSTMENTS.] If any district levy is found to 146.20 be excessive as a result of a decision of the tax court or a 146.21 redetermination by the commissioner of revenue under section 146.22 127A.48, subdivisions 7 to 16, or for any other reason, the 146.23 amount of the excess shall be deducted from the levy certified 146.24 in the next year for the same purpose. If no levy is certified 146.25 in the next year for the same purpose or if the amount certified 146.26 is less than the amount of the excess, the excess must be 146.27 deducted from that levy and the general fund levy certified 146.28 pursuant to section 126C.13, subdivision 2chapters 122A, 123A, 146.29 123B, 124D, and 126C. If the amount of any aid would have been 146.30 increased in a prior year as a result of a decision of the tax 146.31 court or a redetermination by the commissioner of revenue, the 146.32 amount of the increase shall be added to the amount of current 146.33 aid for the same purposes. 146.34 Sec. 14. Minnesota Statutes 2002, section 127A.45, 146.35 subdivision 2, is amended to read: 146.36 Subd. 2. [DEFINITIONS.] (a) The term "other district 147.1 receipts" means payments by county treasurers pursuant to 147.2 section 276.10, apportionments from the school endowment fund 147.3 pursuant to section 127A.33, apportionments by the county 147.4 auditor pursuant to section 127A.34, subdivision 2, and payments 147.5 to school districts by the commissioner of revenue pursuant to 147.6 chapter 298. 147.7 (b) The term "cumulative amount guaranteed" means the 147.8 product of 147.9 (1) the cumulative disbursement percentage shown in 147.10 subdivision 3; times 147.11 (2) the sum of 147.12 (i) 8380 percent of the estimated aid and credit 147.13 entitlements paid according to subdivision 13; plus 147.14 (ii) 100 percent of the entitlements paid according to 147.15 subdivisions 11 and 12; plus 147.16 (iii) the other district receipts. 147.17 (c) The term "payment date" means the date on which state 147.18 payments to districts are made by the electronic funds transfer 147.19 method. If a payment date falls on a Saturday, a Sunday, or a 147.20 weekday which is a legal holiday, the payment shall be made on 147.21 the immediately preceding business day. The commissioner may 147.22 make payments on dates other than those listed in subdivision 3, 147.23 but only for portions of payments from any preceding payment 147.24 dates which could not be processed by the electronic funds 147.25 transfer method due to documented extenuating circumstances. 147.26 Sec. 15. Minnesota Statutes 2002, section 127A.45, 147.27 subdivision 3, is amended to read: 147.28 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] (a) For fiscal147.29 year 2003, the commissioner shall pay to a district on the dates147.30 indicated an amount computed as follows: the cumulative amount147.31 guaranteed minus the sum of (a) the district's other district147.32 receipts through the current payment, and (b) the aid and credit147.33 payments through the immediately preceding payment. For147.34 purposes of this computation, the payment dates and the147.35 cumulative disbursement percentages are as follows:147.36 Payment date Percentage148.1 Payment 1 July 15: 5.1148.2 Payment 2 July 30: 7.7148.3 Payment 3 August 15: 16.9148.4 Payment 4 August 30: 19.3148.5 Payment 5 September 15: 21.8148.6 Payment 6 September 30: 24.3148.7 Payment 7 October 15: 26.3148.8 Payment 8 October 30: 28.3148.9 Payment 9 November 15: 32.8148.10 Payment 10 November 30: 39.1148.11 Payment 11 December 15: 42.4148.12 Payment 12 December 30: 45.6148.13 Payment 13 January 15: 50.5148.14 Payment 14 January 30: 55.0148.15 Payment 15 February 15: 60.2148.16 Payment 16 February 28: 65.0148.17 Payment 17 March 15: 69.7148.18 Payment 18 March 30: 74.3148.19 Payment 19 April 15: 78.3148.20 Payment 20 April 30: 84.2148.21 Payment 21 May 15: 88.7148.22 Payment 22 May 30: 93.3148.23 Payment 23 June 20: 100.0148.24 (b) In addition to the amounts paid under paragraph (a),148.25 for fiscal year 2003, the commissioner shall pay to a district148.26 on the dates indicated an amount computed as follows:148.27 Payment 3 August 15: the final adjustment for the148.28 prior fiscal year for the state paid148.29 property tax credits established in148.30 section 273.1392148.31 Payment 7 October 15: one-half of the final adjustment148.32 for the prior fiscal year for all aid148.33 entitlements except state paid property148.34 tax credits148.35 Payment 8 October 30: one-half of the final adjustment148.36 for the prior fiscal year for all aid149.1 entitlements except state paid property149.2 tax credits149.3 (c)For fiscal year 2004 and later, the commissioner shall 149.4 pay to a district on the dates indicated an amount computed as 149.5 follows: the cumulative amount guaranteed minus the sum of (a) 149.6 the district's other district receipts through the current 149.7 payment, and (b) the aid and credit payments through the 149.8 immediately preceding payment. For purposes of this 149.9 computation, the payment dates and the cumulative disbursement 149.10 percentages are as follows: 149.11 Payment date Percentage 149.12 Payment 1 July 15: 5.15.5 149.13 Payment 2 July 30: 7.78.0 149.14 Payment 3 August 15: 16.917.5 149.15 Payment 4 August 30: 19.320.0 149.16 Payment 5 September 15: 21.822.5 149.17 Payment 6 September 30: 24.325.0 149.18 Payment 7 October 15: 26.327.0 149.19 Payment 8 October 30: 28.330.0 149.20 Payment 9 November 15: 30.332.5 149.21 Payment 10 November 30: 35.036.5 149.22 Payment 11 December 15: 40.042.0 149.23 Payment 12 December 30: 43.045.0 149.24 Payment 13 January 15: 48.050.0 149.25 Payment 14 January 30: 52.054.0 149.26 Payment 15 February 15: 56.058.0 149.27 Payment 16 February 28: 61.063.0 149.28 Payment 17 March 15: 66.068.0 149.29 Payment 18 March 30: 72.074.0 149.30 Payment 19 April 15: 76.078.0 149.31 Payment 20 April 30: 83.085.0 149.32 Payment 21 May 15: 88.090.0 149.33 Payment 22 May 30: 95.0 149.34 Payment 23 June 20: 100.0 149.35 (d)(b) In addition to the amounts paid under paragraph 149.36 (c)(a), for fiscal year 2004 and later, the commissioner shall 150.1 pay to a district on the dates indicated an amount computed as 150.2 follows: 150.3 Payment 3 August 15: the final adjustment for the 150.4 prior fiscal year for the state paid 150.5 property tax credits established in 150.6 section 273.1392 150.7 Payment 4 August 30: one-third of the final adjustment 150.8 for the prior fiscal year for all aid 150.9 entitlements except state paid property 150.10 tax credits 150.11 Payment 6 September 30: one-third of the final adjustment 150.12 for the prior fiscal year for all aid 150.13 entitlements except state paid property 150.14 tax credits 150.15 Payment 8 October 30: one-third of the final adjustment 150.16 for the prior fiscal year for all aid 150.17 entitlements except state paid property 150.18 tax credits 150.19 (c) In addition to the amounts paid under paragraph (a), 150.20 for fiscal year 2005 and later, the commissioner shall pay to a 150.21 district on the dates indicated an amount computed as follows: 150.22 Payment 3 August 15: the final adjustment for the 150.23 prior fiscal year for the state paid 150.24 property tax credits established in 150.25 section 273.1392 150.26 Payment 4 August 30: 30 percent of the final adjustment 150.27 for the prior fiscal year for all aid 150.28 entitlements except state paid property 150.29 tax credits 150.30 Payment 6 September 30: 40 percent of the final adjustment 150.31 for the prior fiscal year for all aid 150.32 entitlements except state paid property 150.33 tax credits 150.34 Payment 8 October 30: 30 percent of the final adjustment 150.35 for the prior fiscal year for all aid 150.36 entitlements except state paid property 151.1 tax credits 151.2 Sec. 16. Minnesota Statutes 2002, section 127A.45, 151.3 subdivision 7a, is amended to read: 151.4 Subd. 7a. [ADVANCE FINAL PAYMENT.] (a) Notwithstanding 151.5 subdivisions 3 and 7, a school district or a charter school 151.6 exceeding its expenditure limitations under section 123B.83 as 151.7 of June 30 of the prior fiscal year may receive a portion of its 151.8 final payment for the current fiscal year on June 20, if 151.9 requested by the district. The amount paid under this 151.10 subdivision must not exceed the lesser of: 151.11 (1) seven percent of the district or charter school's 151.12 general education aid for the current fiscal year; or 151.13 (2) the amount by which the district or charter school's 151.14 net negative unreserved general fund balance as of June 30 of 151.15 the prior fiscal year exceeds 2.5 percent of the district or 151.16 charter school's expenditures for that fiscal year. 151.17 (b) The state total advance final payment under this 151.18 subdivision for any year must not exceed $17,500,000$12,000,000. 151.19 If the amount requested exceeds $17,500,000$12,000,000, the 151.20 advance final payment for each eligible district must be reduced 151.21 proportionately. 151.22 Sec. 17. Minnesota Statutes 2002, section 127A.45, 151.23 subdivision 10, is amended to read: 151.24 Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 151.25 fiscal year state general fund payments for a district 151.26 nonoperating fund must be made at 8380 percent of the estimated 151.27 entitlement during the fiscal year of the entitlement. This 151.28 amount shall be paid in 12 equal monthly installments. The 151.29 amount of the actual entitlement, after adjustment for actual 151.30 data, minus the payments made during the fiscal year of the 151.31 entitlement must be paid prior to October 31 of the following 151.32 school year. The commissioner may make advance payments of debt 151.33 service equalization aid or homestead and agricultural credit 151.34 aid for a district's debt service fund earlier than would occur 151.35 under the preceding schedule if the district submits evidence 151.36 showing a serious cash flow problem in the fund. The 152.1 commissioner may make earlier payments during the year and, if 152.2 necessary, increase the percent of the entitlement paid to 152.3 reduce the cash flow problem. 152.4 Sec. 18. Minnesota Statutes 2002, section 127A.45, 152.5 subdivision 13, is amended to read: 152.6 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 152.7 subdivisions 11, 12, 12a, and 14, each fiscal year, all 152.8 education aids and credits in this chapter and chapters 120A, 152.9 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 152.10 section 273.1392, shall be paid at 8380 percent of the 152.11 estimated entitlement during the fiscal year of the 152.12 entitlement. For the purposes of this subdivision, a district's 152.13 estimated entitlement for special education excess cost aid 152.14 under section 125A.79 equals 70 percent of the district's 152.15 entitlement for the second prior fiscal year. The final 152.16 adjustment payment, according to subdivision 9, must be the 152.17 amount of the actual entitlement, after adjustment for actual 152.18 data, minus the payments made during the fiscal year of the 152.19 entitlement. 152.20 Sec. 19. Minnesota Statutes 2002, section 127A.45, 152.21 subdivision 14, is amended to read: 152.22 Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid 152.23 according to sections 123B.40 to 123B.48 for pupils attending 152.24 nonpublic schools as follows: 152.25 (1) an advance payment by November 30 equal to 8380 152.26 percent of the estimated entitlement for the current fiscal 152.27 year; and 152.28 (2) a final payment by October 31 of the following fiscal 152.29 year, adjusted for actual data. 152.30 If a payment advance to meet cash flow needs is requested 152.31 by a district and approved by the commissioner, the state shall 152.32 pay nonpublic pupil transportation aid according to section 152.33 123B.92 by October 31. 152.34 Sec. 20. Minnesota Statutes 2002, section 127A.45, 152.35 subdivision 14a, is amended to read: 152.36 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 153.1 subdivision 3, the state shall pay 100 percent of the aid for 153.2 the current year according to sections 124D.111, 153.3 124D.115,124D.1158, and 124D.118 and 83 percent of the aid for153.4 the current year according to section 124D.1156based on 153.5 submitted monthly vouchers showing meals and milk served. The153.6 remaining 17 percent according to section 124D.1156 shall be153.7 paid by October 30 of the following fiscal year.153.8 Sec. 21. Minnesota Statutes 2002, section 127A.45, 153.9 subdivision 16, is amended to read: 153.10 Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 153.11 subdivision 3, 8380 percent of the amounts under section 153.12 123A.26, subdivision 3, shall be paid in equal installments on 153.13 August 30, December 30, and March 30, with a 1720 percent final 153.14 adjustment payment on October 30 of the next fiscal year. 153.15 Sec. 22. Minnesota Statutes 2002, section 127A.47, 153.16 subdivision 7, is amended to read: 153.17 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 153.18 education aid for districts must be adjusted for each pupil 153.19 attending a nonresident district under sections 123A.05 to 153.20 123A.08, 124D.03, 124D.06, 124D.07,124D.08, and 124D.68. The 153.21 adjustments must be made according to this subdivision. 153.22 (a) General education aid paid to a resident district must 153.23 be reduced by an amount equal to the referendum equalization aid 153.24 attributable to the pupil in the resident district. 153.25 (b) General education aid paid to a district serving a 153.26 pupil in programs listed in this subdivision must be increased 153.27 by an amount equal to the referendum equalization aid 153.28 attributable to the pupil in the nonresident district. 153.29 (c) If the amount of the reduction to be made from the 153.30 general education aid of the resident district is greater than 153.31 the amount of general education aid otherwise due the district, 153.32 the excess reduction must be made from other state aids due the 153.33 district. 153.34 (d) The district of residence must pay tuition to a 153.35 district or an area learning center, operated according to 153.36 paragraph (e), providing special instruction and services to a 154.1 pupil with a disability, as defined in section 125A.02, or a 154.2 pupil, as defined in section 125A.51, who is enrolled in a 154.3 program listed in this subdivision. The tuition must be equal 154.4 to (1) the actual cost of providing special instruction and 154.5 services to the pupil, including a proportionate amount for debt 154.6 service and for capital expenditure facilities and equipment, 154.7 and debt service but not including any amount for 154.8 transportation, minus (2) the amount of general education 154.9 revenue and special education aid but not including any amount 154.10 for transportation, attributable to that pupil, that is received 154.11 by the district providing special instruction and services. 154.12 (e) An area learning center operated by a service 154.13 cooperative, intermediate district, education district, or a 154.14 joint powers cooperative may elect through the action of the 154.15 constituent boards to charge the resident district tuition for 154.16 pupils rather than to calculate general education aid154.17 adjustments under paragraph (a), (b), or (c). The tuition must154.18 be equal to the greater of the average general education revenue154.19 per pupil unit attributable to the pupil, or the actual cost of154.20 providing the instruction, excluding transportation costs, if154.21 the pupil meets the requirements of section 125A.02 or154.22 125A.51have the general education revenue paid to a fiscal 154.23 agent school district. Except as provided in paragraph (d), the 154.24 district of residence must pay tuition equal to at least 90 154.25 percent of the district average general education revenue per 154.26 pupil unit minus an amount equal to the product of the formula 154.27 allowance according to section 126C.10, subdivision 2, times 154.28 .0485, calculated without basic skills revenue and 154.29 transportation sparsity revenue, times the number of pupil units 154.30 for pupils attending the area learning center, plus the amount 154.31 of compensatory revenue generated by pupils attending the area 154.32 learning center. 154.33 Sec. 23. Minnesota Statutes 2002, section 127A.47, 154.34 subdivision 8, is amended to read: 154.35 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 154.36 for districts must be adjusted for each pupil attending a 155.1 charter school under section 124D.10. The adjustments must be 155.2 made according to this subdivision. 155.3 (b) General education aid paid to a district in which a 155.4 charter school not providing transportation according to section 155.5 124D.10, subdivision 16, is located must be increased by an 155.6 amount equal to the product of: (1) the sum of an amount equal 155.7 to the product of the formula allowance according to section 155.8 126C.10, subdivision 2, times .0485, plus the transportation 155.9 sparsity allowance for the district , plus the transportation155.10 transition allowance for the district; times (2) the pupil units 155.11 attributable to the pupil. 155.12 Sec. 24. Minnesota Statutes 2002, section 127A.49, 155.13 subdivision 2, is amended to read: 155.14 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 155.15 sections 270.07, 375.192, or otherwise, the net tax capacity of 155.16 any district for any taxable year is changed after the taxes for 155.17 that year have been spread by the county auditor and the local 155.18 tax rate as determined by the county auditor based upon the 155.19 original net tax capacity is applied upon the changed net tax 155.20 capacities, the county auditor shall, prior to February 1 of 155.21 each year, certify to the commissioner of children, families,155.22 and learningeducation the amount of any resulting net revenue 155.23 loss that accrued to the district during the preceding year. 155.24 Each year, the commissioner shall pay an abatement adjustment to 155.25 the district in an amount calculated according to the provisions 155.26 of this subdivision. This amount shall be deducted from the 155.27 amount of the levy authorized by section 126C.46. The amount of 155.28 the abatement adjustment must be the product of: 155.29 (1) the net revenue loss as certified by the county 155.30 auditor, times 155.31 (2) the ratio of: 155.32 (i) the sum of the amounts of the district's certified levy 155.33 in the preceding year according to the following: 155.34 (A) section 126C.13 if the district received general155.35 education aid according to that section for the second preceding155.36 year;156.1 (B)section 123B.57, if the district received health and 156.2 safety aid according to that section for the second preceding 156.3 year; 156.4 (C) sections(B) section 124D.20, 124D.21, and 124D.56,if 156.5 the district received aid for community education programs 156.6 according to any of those sectionsthat section for the second 156.7 preceding year; 156.8 (D)(C) section 124D.135, subdivision 3, if the district 156.9 received early childhood family education aid according to 156.10 section 124D.135 for the second preceding year; and 156.11 (E)(D) section 126C.17, subdivision 6, if the district 156.12 received referendum equalization aid according to that section 156.13 for the second preceding year; to 156.14 (ii) the total amount of the district's certified levy in 156.15 the preceding December, plus or minus auditor's adjustments. 156.16 Sec. 25. Minnesota Statutes 2002, section 127A.49, 156.17 subdivision 3, is amended to read: 156.18 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 156.19 tax increment is made to a district pursuant to section 469.176, 156.20 subdivision 2, or upon decertification of a tax increment 156.21 district, the school district's aid and levy limitations must be 156.22 adjusted for the fiscal year in which the excess tax increment 156.23 is paid under the provisions of this subdivision. 156.24 (b) An amount must be subtracted from the district's aid 156.25 for the current fiscal year equal to the product of: 156.26 (1) the amount of the payment of excess tax increment to 156.27 the district, times 156.28 (2) the ratio of: 156.29 (i) the sum of the amounts of the district's certified levy 156.30 for the fiscal year in which the excess tax increment is paid 156.31 according to the following: 156.32 (A) section 126C.13, if the district received general156.33 education aid according to that section for the second preceding156.34 year;156.35 (B)section 123B.57, if the district received health and 156.36 safety aid according to that section for the second preceding 157.1 year; 157.2 (C) sections(B) section 124D.20, 124D.21, and 124D.56,if 157.3 the district received aid for community education programs 157.4 according to any of those sectionsthat section for the second 157.5 preceding year; 157.6 (D)(C) section 124D.135, subdivision 3, if the district 157.7 received early childhood family education aid according to 157.8 section 124D.135 for the second preceding year; and 157.9 (E)(D) section 126C.17, subdivision 6, if the district 157.10 received referendum equalization aid according to that section 157.11 for the second preceding year; to 157.12 (ii) the total amount of the district's certified levy for 157.13 the fiscal year, plus or minus auditor's adjustments. 157.14 (c) An amount must be subtracted from the school district's 157.15 levy limitation for the next levy certified equal to the 157.16 difference between: 157.17 (1) the amount of the distribution of excess increment; and 157.18 (2) the amount subtracted from aid pursuant to clause (a). 157.19 If the aid and levy reductions required by this subdivision 157.20 cannot be made to the aid for the fiscal year specified or to 157.21 the levy specified, the reductions must be made from aid for 157.22 subsequent fiscal years, and from subsequent levies. The school 157.23 district must use the payment of excess tax increment to replace 157.24 the aid and levy revenue reduced under this subdivision. 157.25 (d) This subdivision applies only to the total amount of 157.26 excess increments received by a district for a calendar year 157.27 that exceeds $25,000. 157.28 Sec. 26. Minnesota Statutes 2002, section 128D.11, 157.29 subdivision 8, is amended to read: 157.30 Subd. 8. [NET DEBT LIMIT.] The school district shall not 157.31 be subject to a net debt in excess of 102144 percent of the net 157.32 tax capacity of all taxable property therein. 157.33 Sec. 27. Minnesota Statutes 2002, section 268.052, 157.34 subdivision 2, is amended to read: 157.35 Subd. 2. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 157.36 A TAXPAYING EMPLOYER.] (a) The state or political 158.1 subdivision excluding a school district may elect to be a 158.2 taxpaying employer for any calendar year if a notice of election 158.3 is filed within 30 calendar days following January 1 of that 158.4 calendar year. Upon election, the state or political 158.5 subdivision shall be assigned the new employer tax rate under 158.6 section 268.051, subdivision 5, for the calendar year of the 158.7 election and until it qualifies for an experience rating under 158.8 section 268.051, subdivision 3. 158.9 (b) An election shall be for a minimum period of two 158.10 calendar years following the effective date of the election and 158.11 continue unless a notice terminating the election is filed not 158.12 later than 30 calendar days before the beginning of the calendar 158.13 year. The termination shall be effective at the beginning of 158.14 the next calendar year. Upon election, the commissioner shall 158.15 establish a reimbursable account for the state or political 158.16 subdivision. A termination of election shall be allowed only if 158.17 the state or political subdivision has, since the beginning of 158.18 the experience rating period under section 268.051, subdivision 158.19 3, paid taxes and made voluntary payments under section 268.051, 158.20 subdivision 7, equal to or more than 125 percent of the 158.21 unemployment benefits used in computing the experience rating. 158.22 In addition, any unemployment benefits paid after the experience 158.23 rating period shall be transferred to the new reimbursable 158.24 account of the state or political subdivision. If the amount of 158.25 taxes and voluntary payments paid since the beginning of the 158.26 experience rating period exceeds 125 percent of the amount of 158.27 unemployment benefits paid during the experience rating period, 158.28 that amount in excess shall be applied against any unemployment 158.29 benefits paid after the experience rating period. 158.30 (c) The method of payments to the fund under subdivisions 3 158.31 and 4 shall apply to all taxes paid by or due from the state or 158.32 political subdivision that elects to be taxpaying employers 158.33 under this subdivision. 158.34 (d) The commissioner may allow a notice of election or a 158.35 notice terminating election to be filed by mail or electronic 158.36 transmission. 159.1 [EFFECTIVE DATE.] This section is effective the day 159.2 following final enactment. 159.3 Sec. 28. Minnesota Statutes 2002, section 268.052, 159.4 subdivision 4, is amended to read: 159.5 Subd. 4. [METHOD OF PAYMENT BY POLITICAL SUBDIVISION.] A 159.6 political subdivision or instrumentality thereof is authorized 159.7 and directed to pay its liabilities by money collected from 159.8 taxes or other revenues. Every political subdivision authorized 159.9 to levy taxes except school districts may include in its tax 159.10 levy the amount necessary to pay its liabilities. School 159.11 districts may levy according to section 126C.43, subdivision 2. 159.12 If the taxes authorized to be levied cause the total amount of 159.13 taxes levied to exceed any limitation upon the power of a 159.14 political subdivision to levy taxes, the political subdivision 159.15 may levy taxes in excess of the limitations in the amounts 159.16 necessary to meet its liability. The expenditures authorized 159.17 shall not be included in computing the cost of government as 159.18 defined in any home rule charter. The governing body of a 159.19 municipality, for the purpose of meeting its liabilities, in the 159.20 event of a deficit, may issue its obligations payable in not 159.21 more than two years, in an amount that may cause its 159.22 indebtedness to exceed any statutory or charter limitations, 159.23 without an election, and may levy taxes in the manner provided 159.24 in section 475.61. 159.25 [EFFECTIVE DATE.] This section is effective for taxes 159.26 payable in 2004. 159.27 Sec. 29. Minnesota Statutes 2002, section 273.138, 159.28 subdivision 6, is amended to read: 159.29 Subd. 6. The amount of aid calculated for a school 159.30 district pursuant to subdivision 3, clauses (2), (3), (4), and 159.31 (5) shall be deducted from the school district's general fund 159.32 levy limitation established pursuant to section 126C.13chapters 159.33 122A, 123A, 123B, 124D, and 126C in determining the amount of 159.34 taxes the school district may levy for general and special 159.35 purposes. 159.36 Sec. 30. Minnesota Statutes 2002, section 298.28, 160.1 subdivision 4, is amended to read: 160.2 Subd. 4. [SCHOOL DISTRICTS.] (a) 17.15 cents per taxable 160.3 ton plus the increase provided in paragraph (d) must be 160.4 allocated to qualifying school districts to be distributed, 160.5 based upon the certification of the commissioner of revenue, 160.6 under paragraphs (b) and (c), except as otherwise provided in 160.7 paragraph (f). 160.8 (b) 3.43 cents per taxable ton must be distributed to the 160.9 school districts in which the lands from which taconite was 160.10 mined or quarried were located or within which the concentrate 160.11 was produced. The distribution must be based on the 160.12 apportionment formula prescribed in subdivision 2. 160.13 (c)(i) 13.72 cents per taxable ton, less any amount 160.14 distributed under paragraph (e), shall be distributed to a group 160.15 of school districts comprised of those school districts in which 160.16 the taconite was mined or quarried or the concentrate produced 160.17 or in which there is a qualifying municipality as defined by 160.18 section 273.134, paragraph (b), in direct proportion to school 160.19 district indexes as follows: for each school district, its 160.20 pupil units determined under section 126C.05 for the prior 160.21 school year shall be multiplied by the ratio of the average 160.22 adjusted net tax capacity per pupil unit for school districts 160.23 receiving aid under this clause as calculated pursuant to 160.24 chapters 122A, 126C, and 127A for the school year ending prior 160.25 to distribution to the adjusted net tax capacity per pupil unit 160.26 of the district. Each district shall receive that portion of 160.27 the distribution which its index bears to the sum of the indices 160.28 for all school districts that receive the distributions. 160.29 (ii) Notwithstanding clause (i), each school district that 160.30 receives a distribution under sections 298.018; 298.23 to 160.31 298.28, exclusive of any amount received under this clause; 160.32 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 160.33 imposing a tax on severed mineral values after reduction for any 160.34 portion distributed to cities and towns under section 126C.48, 160.35 subdivision 8, paragraph (5), that is less than the amount of 160.36 its levy reduction under section 126C.48, subdivision 8, for the 161.1 second year prior to the year of the distribution shall receive 161.2 a distribution equal to the difference; the amount necessary to 161.3 make this payment shall be derived from proportionate reductions 161.4 in the initial distribution to other school districts under 161.5 clause (i). 161.6 (d) Any school district described in paragraph (c) where a 161.7 levy increase pursuant to section 126C.17, subdivision 9, was 161.8 authorized by referendum for taxes payable in 2001, shall 161.9 receive a distribution from a fund that receives a distribution 161.10 in 1998 of 21.3 cents per ton. On July 15 of 1999, and each 161.11 year thereafter, the increase over the amount established for 161.12 the prior year shall be determined according to the increase in 161.13 the implicit price deflator as provided in section 298.24, 161.14 subdivision 1. Each district shall receive $175 times the pupil 161.15 units identified in section 126C.05, subdivision 1, enrolled in 161.16 the second previous year or the 1983-1984 school year, whichever 161.17 is greater, less the product of 1.8 percent times the district's 161.18 taxable net tax capacity in the second previous year. 161.19 If the total amount provided by paragraph (d) is 161.20 insufficient to make the payments herein required then the 161.21 entitlement of $175 per pupil unit shall be reduced uniformly so 161.22 as not to exceed the funds available. Any amounts received by a 161.23 qualifying school district in any fiscal year pursuant to 161.24 paragraph (d) shall not be applied to reduce general education 161.25 aid which the district receives pursuant to section 126C.13 or 161.26 the permissible levies of the district. Any amount remaining 161.27 after the payments provided in this paragraph shall be paid to 161.28 the commissioner of iron range resources and rehabilitation who 161.29 shall deposit the same in the taconite environmental protection 161.30 fund and the northeast Minnesota economic protection trust fund 161.31 as provided in subdivision 11. 161.32 Each district receiving money according to this paragraph 161.33 shall reserve the lesser of the amount received under this 161.34 paragraph or $25 times the number of pupil units served in the 161.35 district. It may use the money for early childhood programs or 161.36 for outcome-based learning programs that enhance the academic 162.1 quality of the district's curriculum. The outcome-based 162.2 learning programs must be approved by the commissioner of 162.3 children, families, and learningeducation. 162.4 (e) There shall be distributed to any school district the 162.5 amount which the school district was entitled to receive under 162.6 section 298.32 in 1975. 162.7 (f) Effective for the distribution in 2003 only, five 162.8 percent of the distributions to school districts under 162.9 paragraphs (b), (c), and (e); subdivision 6, paragraph (c); 162.10 subdivision 11; and section 298.225, shall be distributed to the 162.11 general fund. The remainder less any portion distributed to 162.12 cities and towns under section 126C.48, subdivision 8, paragraph 162.13 (5), shall be distributed to the northeast Minnesota economic 162.14 protection trust fund created in section 298.292. Fifty percent 162.15 of the amount distributed to the northeast Minnesota economic 162.16 protection trust fund shall be made available for expenditure 162.17 under section 298.293 as governed by section 298.296. Effective 162.18 in 2003 only, 100 percent of the distributions to school 162.19 districts under section 477A.15 less any portion distributed to 162.20 cities and towns under section 126C.48, subdivision 8, paragraph 162.21 (5), shall be distributed to the general fund. 162.22 Sec. 31. Minnesota Statutes 2002, section 475.61, 162.23 subdivision 4, is amended to read: 162.24 Subd. 4. [SURPLUS FUNDS.] (a) All such taxes shall be 162.25 collected and remitted to the municipality by the county 162.26 treasurer as other taxes are collected and remitted, and shall 162.27 be used only for payment of the obligations on account of which 162.28 levied or to repay advances from other funds used for such 162.29 payments, except that any surplus remaining in the debt service 162.30 fund when the obligations and interest thereon are paid may be 162.31 appropriated to any other general purpose by the municipality. 162.32 However, the amount of any surplus remaining in the debt service 162.33 fund of a school district when the obligations and interest 162.34 thereon are paid shall be used to reduce the general education162.35 fund levy authorized pursuant to section 126C.13chapters 122A, 162.36 123A, 123B, 124D, and 126C and the state aids authorized 163.1 pursuant to chapters 122A, 123A, 123B, 124D, 125A, 126C, and 163.2 127A. 163.3 (b) The reduction to state aids equals the lesser of (1) 163.4 the amount of the surplus times the ratio of the district's debt 163.5 service equalization aid to the district's debt service 163.6 equalization revenue for the last year that the district 163.7 qualified for debt service equalization aid; or (2) the 163.8 district's cumulative amount of debt service equalization aid. 163.9 (c) The reduction to the general educationfund levy equals 163.10 the total amount of the surplus minus the reduction to state 163.11 aids. 163.12 Sec. 32. Laws 1965, chapter 705, as amended by Laws 1975, 163.13 chapter 261, section 4; Laws 1980, chapter 609, article 6, 163.14 section 37; and Laws 1989, chapter 329, article 13, section 18, 163.15 is amended to read: 163.16 Sec. 6. [ST. PAUL SEVERANCE LEVY.] The school board of 163.17 independent school district No. 625, St. Paul, for the purpose 163.18 of providing moneys for the payment of its severance pay 163.19 obligations under a plan approved by resolution of the district, 163.20 in addition to all other powers possessed by the school district 163.21 and in addition to and in excess of any existing limitation upon 163.22 the amount it is otherwise authorized by law to levy as taxes, 163.23 is authorized to levy taxes annually not exceeding in any one 163.24 year an amount equal to a gross tax capacity rate of .17 percent163.25 for taxes payable in 1990 ora net tax capacity rate of .21.34 163.26 percent for taxes payable in 19912002 and thereafter upon all 163.27 taxable property within the school district which taxes as 163.28 levied shall be spread upon the tax rolls, and all corrections 163.29 thereof shall be held by the school district, and allocated 163.30 therefor to be disbursed and expended by the school district in 163.31 payment of any public school severance pay obligations and for 163.32 no other purpose. Disbursements and expenditures previously 163.33 authorized on behalf of the school district for payment of 163.34 severance pay obligations shall not be deemed to constitute any 163.35 part of the cost of the operation and maintenance of the school 163.36 district within the meaning of any statutory limitation of any 164.1 school district expenditures. 164.2 The amount of such severance pay allowable or to become 164.3 payable in respect of any such employment or to any such 164.4 employee shall not exceed the amount permitted by Minnesota 164.5 Statutes, Section 465.72. 164.6 [EFFECTIVE DATE.] This section is effective retroactively 164.7 for taxes payable in 2002 and thereafter. 164.8 Sec. 33. [FUND TRANSFERS.] 164.9 Subdivision 1. [CHISHOLM.] Notwithstanding Minnesota 164.10 Statutes, section 123B.79 or 123B.80, on June 30, 2003, 164.11 independent school district No. 695, Chisholm, may permanently 164.12 transfer up to $500,000 from its reserved operating capital 164.13 account in its general fund to the undesignated general fund 164.14 balance. 164.15 Subd. 2. [SWANVILLE.] Notwithstanding Minnesota Statutes, 164.16 sections 123B.79, 123B.80, and 475.61, subdivision 4, 164.17 independent school district No. 486, Swanville, on June 30, 164.18 2003, may permanently transfer up to $61,000 from its debt 164.19 redemption fund to its capital account in its general fund 164.20 without making an aid or levy reduction. 164.21 Subd. 3. [WESTONKA.] Notwithstanding Minnesota Statutes, 164.22 sections 123B.79, 123B.80, and 475.61, subdivision 4, 164.23 independent school district No. 277, Westonka, on June 30, 2003, 164.24 may permanently transfer the lesser of $170,000 or the actual 164.25 fund balance from its debt redemption fund to its general fund 164.26 without making a levy reduction. 164.27 [EFFECTIVE DATE.] This section is effective the day 164.28 following final enactment. 164.29 Sec. 34. [DIRECTION TO COMMISSIONER.] 164.30 Notwithstanding Minnesota Statutes, section 123B.75, 164.31 subdivision 5, the commissioner shall calculate the property tax 164.32 recognition shift percentage that raises $230,378,000 in fiscal 164.33 year 2004. The commissioner shall apply this percentage to the 164.34 property tax recognition shift in fiscal year 2004 and later. 164.35 Sec. 35. [APPROPRIATIONS.] 164.36 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 165.1 indicated in this section are appropriated from the general fund 165.2 to the department of education for the fiscal years designated. 165.3 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 165.4 according to Minnesota Statutes, section 124D.111, and Code of 165.5 Federal Regulations, title 7, section 210.17: 165.6 $7,800,000 ..... 2004 165.7 $7,950,000 ..... 2005 165.8 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 165.9 MILK.] For traditional school breakfast aid and kindergarten 165.10 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 165.11 $3,088,000 ..... 2004 165.12 $3,217,000 ..... 2005 165.13 Subd. 4. [FAST BREAK TO LEARNING BREAKFAST.] For fast 165.14 break to learning breakfast under Minnesota Statutes, section 165.15 124D.1156: 165.16 $747,000 ..... 2004 165.17 The 2004 appropriation includes $747,000 for 2003 and $0 165.18 for 2004. 165.19 Subd. 5. [SUMMER SCHOOL SERVICE REPLACEMENT AID.] For 165.20 summer food service replacement aid under Minnesota Statutes, 165.21 section 124D.119: 165.22 $150,000 ..... 2004 165.23 $150,000 ..... 2005 165.24 Sec. 36. [REVISOR INSTRUCTION.] 165.25 In the next and subsequent editions of Minnesota Statutes, 165.26 the revisor shall codify section 32 as Minnesota Statutes, 165.27 section 126C.41, subdivision 5. 165.28 Sec. 37. [REPEALER.] 165.29 Minnesota Statutes 2002, sections 93.22, subdivision 2; 165.30 93.223, subdivision 1; 124D.115; 124D.1156; and 127A.41, 165.31 subdivision 6, are repealed. 165.32 ARTICLE 6 165.33 LIBRARIES 165.34 Section 1. Minnesota Statutes 2002, section 134.34, 165.35 subdivision 4, is amended to read: 165.36 Subd. 4. [LIMITATION.] A regional library basic system 166.1 support grant shall not be made to a regional public library 166.2 system for a participating city or county which decreases the 166.3 dollar amount provided for support for operating purposes of 166.4 public library service below 90 percent of the amount provided 166.5 by it for the second preceding year. This subdivision shall not 166.6 apply to participating cities or counties where the adjusted net 166.7 tax capacity of that city or county has decreased, if the dollar 166.8 amount of the reduction in support is not greater than the 166.9 dollar amount by which support would be decreased if the 166.10 reduction in support were made in direct proportion to the 166.11 decrease in adjusted net tax capacity. 166.12 [EFFECTIVE DATE.] This section is effective for grants 166.13 distributed in 2004 and 2005 only. 166.14 Sec. 2. [134.355] [BASIC REGIONAL LIBRARY SYSTEM; 166.15 SUPPORT.] 166.16 Subdivision 1. [APPROPRIATIONS.] Basic system support 166.17 grants and regional library telecommunications aid provide the 166.18 appropriations for the basic regional library system. 166.19 Sec. 3. Minnesota Statutes 2002, section 134.47, 166.20 subdivision 1, is amended to read: 166.21 Subdivision 1. [ELIGIBILITY.] (a) A regional public 166.22 library system may apply for regional library telecommunications 166.23 aid. The aid must be used for data and video access costs and166.24 other related costs to improve or maintain electronic access and166.25 connect the library system with the state information166.26 infrastructure administered by the department of administration166.27 under section 16B.465. Priority shall be given to public166.28 libraries that have not received access., maintenance, 166.29 equipment, or installation of telecommunication lines. To be 166.30 eligible, a regional public library system must be officially 166.31 designated by the commissioner of children, families, and166.32 learningeducation as a regional public library system as 166.33 defined in section 134.34, subdivision 3, and each of its 166.34 participating cities and counties must meet local support levels 166.35 defined in section 134.34, subdivision 1. A public library 166.36 building that receives aid under this section must be open a 167.1 minimum of 20 hours per week. 167.2 (b) Aid received under this section may not be used to167.3 substitute for any existing local funds allocated to provide167.4 electronic access, equipment for library staff or the public, or167.5 local funds dedicated to other library operations.167.6 (c)(b) An application for regional library 167.7 telecommunications aid must, at a minimum, contain information 167.8 to document the following: 167.9 (1) the connections are adequate and employ an open network 167.10 architecture that will ensure interconnectivity and 167.11 interoperability with school districts, post-secondary 167.12 education, or other governmental agencies; 167.13 (2) that the connection is established through the most 167.14 cost-effective means and that the regional library has explored 167.15 and coordinated connections through school districts, 167.16 post-secondary education, or other governmental agencies; 167.17 (3) that the regional library system has filed an e-rate 167.18 application; and 167.19 (4) other information, as determined by the commissioner of 167.20 children, families, and learning, to ensure that connections are 167.21 coordinated, efficient, and cost-effective, take advantage of 167.22 discounts, and meet applicable state standards. 167.23 The library system may include costs associated with 167.24 cooperative arrangements with post-secondary institutions, 167.25 school districts, and other governmental agencies. 167.26 Sec. 4. [APPROPRIATIONS.] 167.27 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 167.28 indicated in this section are appropriated from the general fund 167.29 to the department of education for the fiscal years designated. 167.30 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 167.31 grants under Minnesota Statutes, section 134.355: 167.32 $8,072,000 ..... 2004 167.33 $8,570,000 ..... 2005 167.34 The 2004 appropriation includes $1,456,000 for 2003 and 167.35 $6,616,000 for 2004. 167.36 The 2005 appropriation includes $1,654,000 for 2004 and 168.1 $6,916,000 for 2005. 168.2 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 168.3 regional library telecommunications aid under Minnesota 168.4 Statutes, section 134.355: 168.5 $1,200,000 ..... 2004 168.6 $1,200,000 ..... 2005 168.7 Subd. 4. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 168.8 grants according to Minnesota Statutes, sections 134.353 and 168.9 134.354, to multicounty, multitype library systems: 168.10 $876,000 ..... 2004 168.11 $903,000 ..... 2005 168.12 The 2004 appropriation includes $153,000 for 2003 and 168.13 $723,000 for 2004. 168.14 The 2005 appropriation includes $180,000 for 2004 and 168.15 $723,000 for 2005. 168.16 Subd. 5. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 168.17 licenses to on-line databases selected in cooperation with the 168.18 higher education services office for school media centers, 168.19 public libraries, state government agency libraries, and public 168.20 or private college or university libraries: 168.21 $400,000 ..... 2004 168.22 $400,000 ..... 2005 168.23 Any balance in the first year does not cancel but is 168.24 available in the second year. 168.25 Sec. 5. [REVISOR INSTRUCTION.] 168.26 The revisor of statutes shall renumber each section of 168.27 Minnesota Statutes listed in column A with the number listed in 168.28 column B. The revisor shall also make necessary cross-reference 168.29 changes consistent with the renumbering. 168.30 Column A Column B 168.31 134.35, subd. 1 134.355, subd. 2 168.32 134.35, subd. 2 134.355, subd. 3 168.33 134.35, subd. 3 134.355, subd. 4 168.34 134.35, subd. 4 134.355, subd. 5 168.35 134.35, subd. 5 134.355, subd. 6 168.36 134.35, subd. 6 134.355, subd. 7 169.1 134.47, subd. 1 169.2 paragraph (a) 134.355, subd. 8 169.3 134.47, subd. 1 169.4 paragraph (b) 134.355, subd. 9 169.5 134.47, subd. 2 134.355, subd. 10 169.6 Sec. 6. [REPEALER.] 169.7 The changes made to Minnesota Statutes, section 134.34, 169.8 subdivision 4, in section 1 are repealed effective July 1, 2005. 169.9 ARTICLE 7 169.10 EARLY CHILDHOOD FAMILY SUPPORT 169.11 Section 1. Minnesota Statutes 2002, section 119A.52, is 169.12 amended to read: 169.13 119A.52 [DISTRIBUTION OF APPROPRIATION AND PROGRAM 169.14 COORDINATION.] 169.15 (a)The commissioner of children, families, and learning169.16 education must distribute money appropriated for that purpose to 169.17 Head Start program grantees to expand services and to serve 169.18 additional low-income children. Money must be allocated to each 169.19 project Head Start grantee in existence on the effective date of 169.20 Laws 1989, chapter 282. Migrant and Indian reservation grantees 169.21 must be initially allocated money based on the grantees' share 169.22 of federal funds. The remaining money must be initially 169.23 allocated to the remaining local agencies based equally on the 169.24 agencies' share of federal funds and on the proportion of 169.25 eligible children in the agencies' service area who are not 169.26 currently being served. A Head Start grantee must be funded at 169.27 a per child rate equal to its contracted, federally funded base 169.28 level for program accounts 20, 22, and 25 at the start of the 169.29 fiscal year. In allocating funds under this paragraph, the 169.30 commissioner of children, families, and learningeducation must 169.31 assure that each Head Start grantee is allocated no less funding 169.32 in any fiscal year than was allocated to that grantee in fiscal 169.33 year 1993. The commissioner may provide additional funding to 169.34 grantees for start-up costs incurred by grantees due to the 169.35 increased number of children to be served. Before paying money 169.36 to the grantees, the commissioner must notify each grantee of 170.1 its initial allocation, how the money must be used, and the 170.2 number of low-income children that must be served with the 170.3 allocation. Each grantee must notifypresent a work plan to the 170.4 commissioner offor approval. The work plan must include the 170.5 estimated number of low-income children and families it will be 170.6 able to serve, a description of the program design and service 170.7 delivery area which meets the needs of and encourages access by 170.8 low-income working families, a program design that ensures fair 170.9 and equitable access to Head Start services for all populations 170.10 and parts of the service area, and a plan for coordinating 170.11 services to maximize assistance for child care costs available 170.12 to families under chapter 119B. For any grantee that cannot 170.13 utilize its full allocation, the commissioner must reduce the 170.14 allocation proportionately. Money available after the initial 170.15 allocations are reduced must be redistributed to eligible 170.16 grantees. 170.17 (b) Up to 11 percent of the funds appropriated annually may170.18 be used to provide grants to local Head Start agencies to170.19 provide funds for innovative programs designed either to target170.20 Head Start resources to particular at-risk groups of children or170.21 to provide services in addition to those currently allowable170.22 under federal Head Start regulations. The commissioner must170.23 award funds for innovative programs under this paragraph on a170.24 competitive basis.170.25 Sec. 2. Minnesota Statutes 2002, section 119A.53, is 170.26 amended to read: 170.27 119A.53 [FEDERAL REQUIREMENTS.] 170.28 Grantees and the commissioner of children, families, and170.29 learningshall comply with federal regulations governing the 170.30 federal Head Start program, except for innovative programs170.31 funded under section 119A.52, paragraph (b)funding for 170.32 innovative initiatives under section 119A.52, which may be used 170.33 to operate differently than federal Head Start regulations , and170.34 except that when. If a state statute or regulationrule 170.35 conflicts with a federal statute or regulation, the state 170.36 statute or regulationrule prevails. 171.1 Sec. 3. Minnesota Statutes 2002, section 124D.13, 171.2 subdivision 2, is amended to read: 171.3 Subd. 2. [PROGRAM CHARACTERISTICS.] Early childhood family 171.4 education programs are programs for children in the period of 171.5 life from birth to kindergarten, for the parents of such 171.6 children, and for expectant parents. TheTo the extent that 171.7 funds are insufficient to provide programs for all children, 171.8 early childhood family education programs should emphasize 171.9 programming for a child from birth to age three and encourage 171.10 parents to involve four- and five-year-old children in school 171.11 readiness programs, and other public and nonpublic early 171.12 learning programs. Early childhood family education programs 171.13 may include the following: 171.14 (1) programs to educate parents about the physical, mental, 171.15 and emotional development of children; 171.16 (2) programs to enhance the skills of parents in providing 171.17 for their children's learning and development; 171.18 (3) learning experiences for children and parents that 171.19 promote children's development; 171.20 (4) activities designed to detect children's physical, 171.21 mental, emotional, or behavioral problems that may cause 171.22 learning problems; 171.23 (5) activities and materials designed to encourage 171.24 self-esteem, skills, and behavior that prevent sexual and other 171.25 interpersonal violence; 171.26 (6) educational materials which may be borrowed for home 171.27 use; 171.28 (7) information on related community resources; 171.29 (8) programs to prevent child abuse and neglect; 171.30 (9) other programs or activities to improve the health, 171.31 development, and school readiness of children; or 171.32 (10) activities designed to maximize development during 171.33 infancy. 171.34 The programs must not include activities for children that 171.35 do not require substantial involvement of the children's 171.36 parents. The programs must be reviewed periodically to assure 172.1 the instruction and materials are not racially, culturally, or 172.2 sexually biased. The programs must encourage parents to be 172.3 aware of practices that may affect equitable development of 172.4 children. 172.5 Sec. 4. Minnesota Statutes 2002, section 124D.13, 172.6 subdivision 4, is amended to read: 172.7 Subd. 4. [HOME VISITING PROGRAM.] (a) The commissionerA 172.8 district that levies for home visiting under section 124D.135, 172.9 subdivision 6, shall use this revenue to include as part of the 172.10 early childhood family education programs a parent education 172.11 component to prevent child abuse and neglect. This parent172.12 education component must include:172.13 (1) expanding statewide the home visiting component of the172.14 early childhood family education programs;172.15 (2) training parent educators, child educators, community172.16 outreach workers, and home visitors in the dynamics of child172.17 abuse and neglect and positive parenting and discipline172.18 practices; and172.19 (3) developing and disseminating education and public172.20 information materials that promote positive parenting skills and172.21 prevent child abuse and neglect.172.22 (b) The parent education component must:172.23 (1) offer to isolated or at-risk families home visiting172.24 parent education services that at least address parenting172.25 skills, a child's development and stages of growth,172.26 communication skills, managing stress, problem-solving skills,172.27 positive child discipline practices, methods of improving172.28 parent-child interactions and enhancing self-esteem, using172.29 community support services and other resources, and encouraging172.30 parents to have fun with and enjoy their children;172.31 (2) develop athat is designed to reach isolated or at-risk 172.32 families. 172.33 The home visiting program must use: 172.34 (1) an established risk assessment tool to determine the 172.35 family's level of risk; 172.36 (3)(2) establish clear objectives and protocols for home 173.1 visits; 173.2 (4) determine the frequency and duration of home visits173.3 based on a risk-need assessment of the client, with home visits173.4 beginning in the second trimester of pregnancy and continuing,173.5 based on client need, until a child is six years old;173.6 (5)(3) encourage families to make a transition from home 173.7 visits to site-based parenting programs to build a family173.8 support network and reduce the effects of isolation; 173.9 (6) develop and distribute education materials on173.10 preventing child abuse and neglect that may be used in home173.11 visiting programs and parent education classes and distributed173.12 to the public;173.13 (7) initially provide at least 40 hours of training and173.14 thereafter ongoing training for parent educators, child173.15 educators, community outreach workers, and home visitors that173.16 covers the dynamics of child abuse and neglect, domestic173.17 violence and victimization within family systems, signs of abuse173.18 or other indications that a child may be at risk of being abused173.19 or neglected, what child abuse and neglect are, how to properly173.20 report cases of child abuse and neglect, respect for cultural173.21 preferences in child rearing, what community resources, social173.22 service agencies, and family support activities and programs are173.23 available, child development and growth, parenting skills,173.24 positive child discipline practices, identifying stress factors173.25 and techniques for reducing stress, home visiting techniques,173.26 and risk assessment measures;173.27 (8)(4) provide program services that are community-based, 173.28 accessible, and culturally relevant; and 173.29 (9)(5) foster collaboration among existing agencies and 173.30 community-based organizations that serve young children and 173.31 their families. 173.32 (c)Home visitors should reflect the demographic 173.33 composition of the community the home visitor is servingto the 173.34 extent possible. 173.35 Sec. 5. Minnesota Statutes 2002, section 124D.13, 173.36 subdivision 8, is amended to read: 174.1 Subd. 8. [COORDINATION.] (a) A district is encouraged to174.2 coordinate the program with its special education and vocational174.3 education programs and with related services provided by other174.4 governmental agencies and nonprofit agencies.must describe 174.5 strategies to coordinate and maximize public and private 174.6 community resources and reduce duplication of services. 174.7 (b) A district is encouraged to coordinate adult basic 174.8 education programs provided to parents and early childhood 174.9 family education programs provided to children to accomplish the 174.10 goals of section 124D.895. 174.11 Sec. 6. Minnesota Statutes 2002, section 124D.135, 174.12 subdivision 1, is amended to read: 174.13 Subdivision 1. [REVENUE.] The revenue for early childhood 174.14 family education programs for a school district equals $113.50174.15 for fiscal years 2000 and 2001 and$120 for 2002 and later174.16 fiscal yearsfor fiscal years 2003 and 2004 and $96 for fiscal 174.17 year 2005 and later, times the greater of: 174.18 (1) 150; or 174.19 (2) the number of people under five years of age residing 174.20 in the district on October 1 of the previous school year. 174.21 Sec. 7. Minnesota Statutes 2002, section 124D.135, 174.22 subdivision 8, is amended to read: 174.23 Subd. 8. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 174.24 the average balance, during the most recent three-year period in 174.25 a district's early childhood family education reserve account on 174.26 June 30 of each year, adjusted for any prior reductions under 174.27 this subdivision, must not be greater than 25 percent of the sum 174.28 of the district's maximum early childhood family education 174.29 annual revenue under subdivision 1, excluding adjustments under 174.30 this subdivision, plus any fees, grants, or other revenue 174.31 received by the district for early childhood family education 174.32 programs for the prior year. 174.33 (b) If a district's adjusted average early childhood family 174.34 education reserve over the three-year period is in excess of 25174.35 percent of the prior year annual revenuethe limit under 174.36 paragraph (a), the district's early childhood family education 175.1 state aid and levy authority for the current school year must be 175.2 reduced by the lesser of the current year revenue under 175.3 subdivision 1 or the excess reserve amount. The aid reduction 175.4 equals the product of the lesser of the excess reserve amount or 175.5 the current year revenue under subdivision 1 times the ratio of 175.6 the district's aid for the priorcurrent year under subdivision 175.7 4 to the district's revenue for the priorcurrent year under 175.8 subdivision 1. The levy reduction equals the excess reserve 175.9 amount minus the aid reduction. The commissioner must175.10 reallocate aid and levy reduced under this subdivision to other175.11 eligible early childhood family education programs in proportion175.12 to each district's revenue for the prior year under subdivision175.13 1.For purposes of this paragraph, if a district does not levy 175.14 the entire amount permitted under subdivision 3, the revenue 175.15 under subdivision 1 must be reduced in proportion to the actual 175.16 amount levied. 175.17 (b)(c) Notwithstanding paragraph (a), for fiscal year 175.18 2003, the excess reserve amount shall be computed using the 175.19 balance in a district's early childhood family education reserve 175.20 account on June 30, 2002. For fiscal year 2004, the excess 175.21 reserve amount shall be computed using the adjusted average 175.22 balance in a district's early childhood family education reserve 175.23 account on June 30, 2002, and June 30, 2003. 175.24 [EFFECTIVE DATE.] This section is effective for revenue for 175.25 fiscal year 2003. 175.26 Sec. 8. Minnesota Statutes 2002, section 124D.15, 175.27 subdivision 7, is amended to read: 175.28 Subd. 7. [ADVISORY COUNCIL.] Each school readiness program 175.29 must have an advisory council composed of members of existing 175.30 early education-related boards, parents of participating 175.31 children, child care providers, culturally specific service 175.32 organizations, local resource and referral agencies, local early 175.33 intervention committees, and representatives of early childhood 175.34 service providers. The council must advise the board in 175.35 creating and administering the program and must monitor the 175.36 progress of the program. The council must ensure that children 176.1 at greatest risk receive appropriate services. If the board is 176.2 unable to appoint to the advisory council members of existing 176.3 early education-related boards, it must appoint parents of 176.4 children enrolled in the program who represent the racial, 176.5 cultural, and economic diversity of the district and 176.6 representatives of early childhood service providers as 176.7 representatives to an existing advisory council. 176.8 Sec. 9. Minnesota Statutes 2002, section 124D.16, 176.9 subdivision 1, is amended to read: 176.10 Subdivision 1. [PROGRAM REVIEW AND APPROVAL.] A school 176.11 district shall biennially by May 1 submit to the commissioners 176.12 of children, families, and learningeducation and health the 176.13 program plan required under this subdivision. As determined by 176.14 the commissioners, one-half of the districts shall first submit 176.15 the plan by May 1 of the 2000-2001 school year and one-half of 176.16 the districts shall first submit the plan by May 1 of the 176.17 2001-2002 school year. The program plan must include: 176.18 (1) a description of the services to be provided; 176.19 (2) a plan to ensure children at greatest risk receive 176.20 appropriate services; 176.21 (3) a description of procedures and methods to be used176.22 strategies to coordinate and maximize public and private 176.23 community resources to maximize use of existing community176.24 resources, including school districts, health care facilities,176.25 government agencies, neighborhood organizations, and other176.26 resources knowledgeable in early childhood developmentand 176.27 reduce duplication of services; 176.28 (4) comments about the district's proposed program by the 176.29 advisory council required by section 124D.15, subdivision 7; and 176.30 (5) agreements with all participating service providers. 176.31 Each commissioner may review and comment on the program, 176.32 and make recommendations to the commissioner of children,176.33 families, and learningeducation, within 3090 days of receiving 176.34 the plan. 176.35 Sec. 10. Minnesota Statutes 2002, section 124D.16, 176.36 subdivision 6, is amended to read: 177.1 Subd. 6. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 177.2 the average balance, during the most recent three-year period, 177.3 in a district's school readiness reserve account on June 30 of 177.4 each year, adjusted for any prior reductions under this 177.5 subdivision, must not be greater than 25 percent of the 177.6 district's school readiness annual revenue for the prior year, 177.7 excluding adjustments under this subdivision. 177.8 (b) If a district's adjusted average school readiness 177.9 reserve over the three-year period is in excess of 25 percent of177.10 the prior year annual revenuethe limit under paragraph (a), the 177.11 district's current year school readiness state aid must be 177.12 reduced by the lesser of the excess reserve amount or the 177.13 current year aid. The commissioner must reallocate aid reduced177.14 under this subdivision to other eligible school readiness177.15 programs in proportion to each district's aid for the prior year177.16 under subdivision 2.177.17 (b)(c) Notwithstanding paragraph (a), for fiscal year 177.18 2003, the excess reserve amount shall be computed using the 177.19 balance in a district's school readiness reserve account on June 177.20 30, 2002. For fiscal year 2004, the excess reserve amount shall 177.21 be computed using the adjusted average balance in a district's 177.22 school readiness reserve account on June 30, 2002, and June 30, 177.23 2003. 177.24 [EFFECTIVE DATE.] This section is effective for revenue for 177.25 fiscal year 2003. 177.26 Sec. 11. [APPROPRIATIONS.] 177.27 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 177.28 indicated in this section are appropriated from the general fund 177.29 to the department of education for the fiscal years designated. 177.30 Subd. 2. [SCHOOL READINESS.] For revenue for school 177.31 readiness programs under Minnesota Statutes, sections 124D.15 177.32 and 124D.16: 177.33 $ 9,536,000 ..... 2004 177.34 $ 9,258,000 ..... 2005 177.35 The 2004 appropriation includes $1,605,000 for 2003 and 177.36 $7,931,000 for 2004. 178.1 The 2005 appropriation includes $1,982,000 for 2004 and 178.2 $7,276,000 for 2005. 178.3 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 178.4 childhood family education aid under Minnesota Statutes, section 178.5 124D.135: 178.6 $19,675,000 ..... 2004 178.7 $15,129,000 ..... 2005 178.8 The 2004 appropriation includes $3,239,000 for 2003 and 178.9 $16,436,000 for 2004. 178.10 The 2005 appropriation includes $4,109,000 for 2004 and 178.11 $11,020,000 for 2005. 178.12 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 178.13 health and developmental screening aid under Minnesota Statutes, 178.14 sections 121A.17 and 121A.19: 178.15 $2,581,000 ..... 2004 178.16 $2,661,000 ..... 2005 178.17 The 2004 appropriation includes $452,000 for 2003 and 178.18 $2,129,000 for 2004. 178.19 The 2005 appropriation includes $532,000 for 2004 and 178.20 $2,129,000 for 2005. 178.21 Subd. 5. [HEAD START PROGRAM.] For Head Start programs 178.22 under Minnesota Statutes, section 119A.52: 178.23 $16,475,000 ..... 2004 178.24 $17,100,000 ..... 2005 178.25 Sec. 12. [REPEALER.] 178.26 Minnesota Statutes 2002, section 124D.17, is repealed. 178.27 ARTICLE 8 178.28 PREVENTION 178.29 Section 1. Minnesota Statutes 2002, section 124D.19, 178.30 subdivision 3, is amended to read: 178.31 Subd. 3. [COMMUNITY EDUCATION DIRECTOR.] (a) Except as 178.32 provided under paragraphs (b) and (c), each board shall employ a 178.33 licensed community education director. The board shall submit 178.34 the name of the person who is serving as director of community 178.35 education under this section on the district's annual community 178.36 education report to the commissioner. 179.1 (b) A board may apply to the commissionerMinnesota board 179.2 of school administrators under Minnesota Rules, part 3512.3500, 179.3 subpart 9, for authority to use an individual who is not 179.4 licensed as a community education director. 179.5 (c) A board of a district with a total population of 2,000 179.6 or less may identify an employee who holds a valid Minnesota 179.7 principal or superintendent license under Minnesota Rules, 179.8 chapter 3512, to serve as director of community education. To 179.9 be eligible for an exception under this paragraph, the board 179.10 shall certify in writing to the commissioner that the district 179.11 has not placed a licensed director of community education on 179.12 unrequested leave. 179.13 Sec. 2. Minnesota Statutes 2002, section 124D.20, 179.14 subdivision 3, is amended to read: 179.15 Subd. 3. [GENERAL COMMUNITY EDUCATION REVENUE.] The 179.16 general community education revenue for a district equals 179.17 $5.95 for fiscal year 2003 and 2004 and $5.23 for fiscal year 179.18 2005 and later, times the greater of 1,335 or the population of 179.19 the district. The population of the district is determined 179.20 according to section 275.14. 179.21 [EFFECTIVE DATE.] This section is effective for revenue for 179.22 fiscal year 2005. 179.23 Sec. 3. Minnesota Statutes 2002, section 124D.20, 179.24 subdivision 5, is amended to read: 179.25 Subd. 5. [TOTAL COMMUNITY EDUCATION LEVY.] To obtain total 179.26 community education revenue, a district operating a youth179.27 after-school enrichment program under section 124D.19,179.28 subdivision 12,may levy the amount raised by a maximum tax rate 179.29 of .7431.985 percent times the adjusted net tax capacity of the 179.30 district. To obtain total community education revenue, a179.31 district not operating a youth after-school enrichment program179.32 may levy the amount raised by a maximum tax rate of .4795179.33 percent times the adjusted net tax capacity of the district.If 179.34 the amount of the total community education levy would exceed 179.35 the total community education revenue, the total community 179.36 education levy shall be determined according to subdivision 6. 180.1 [EFFECTIVE DATE.] This section is effective for revenue for 180.2 fiscal year 2005. 180.3 Sec. 4. Minnesota Statutes 2002, section 124D.20, is 180.4 amended by adding a subdivision to read: 180.5 Subd. 11. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 180.6 the sum of the average balances during the most recent 180.7 three-year period in a district's community education reserve 180.8 account and unreserved/undesignated community service fund 180.9 account on June 30 of each year, adjusted for any prior 180.10 reductions under this subdivision, must not be greater than 25 180.11 percent of the sum of the district's maximum total community 180.12 education revenue under subdivision 1, excluding adjustments 180.13 under this subdivision, plus the district's additional community 180.14 education levy under section 124D.21, plus any fees, grants, or 180.15 other revenue received by the district for community education 180.16 programs for the prior year. For purposes of this paragraph, 180.17 "community education programs" means programs according to 180.18 subdivisions 8, paragraph (a), and 9, and section 124D.19, 180.19 subdivision 12, excluding early childhood family education 180.20 programs under section 124D.13, school readiness programs under 180.21 sections 124D.15 and 124D.17, and adult basic education programs 180.22 under section 124D.52. 180.23 (b) If the sum of the average balances during the most 180.24 recent three-year period in a district's community education 180.25 reserve account and unreserved/undesignated community service 180.26 fund account on June 30 of each year, adjusted for any prior 180.27 reductions under this subdivision, is in excess of the limit 180.28 under paragraph (a), the district's community education state 180.29 aid and levy authority for the current school year must be 180.30 reduced by the lesser of the current year revenue under 180.31 subdivision 1 or the excess reserve amount. The aid reduction 180.32 equals the product of the lesser of the excess reserve amount or 180.33 the current year revenue under subdivision 1 times the ratio of 180.34 the district's aid for the current year under subdivision 7 to 180.35 the district's revenue for the current year under subdivision 180.36 1. The levy reduction equals the excess reserve amount minus 181.1 the aid reduction. For purposes of this paragraph, if a 181.2 district does not levy the entire amount permitted under 181.3 subdivision 5 or 6, the revenue under subdivision 1 must be 181.4 reduced in proportion to the actual amount levied. 181.5 (c) Notwithstanding paragraph (a), for fiscal year 2003, 181.6 the excess reserve amount shall be computed using the balances 181.7 in a district's community education reserve account and 181.8 unreserved/undesignated community service fund account on June 181.9 30, 2002. For fiscal year 2004, the excess reserve amount shall 181.10 be computed using the adjusted average balances in a district's 181.11 community education reserve account and unreserved/undesignated 181.12 community service fund account on June 30, 2002, and June 30, 181.13 2003. 181.14 [EFFECTIVE DATE.] This section is effective for revenue for 181.15 fiscal year 2003. 181.16 Sec. 5. Minnesota Statutes 2002, section 124D.20, is 181.17 amended by adding a subdivision to read: 181.18 Subd. 12. [WAIVER.] (a) If a district anticipates that the 181.19 reserve account may exceed the 25 percent limit established 181.20 under subdivision 11 because of extenuating circumstances, prior 181.21 approval to exceed the limit must be obtained in writing from 181.22 the commissioner. 181.23 (b) Notwithstanding paragraph (a), for fiscal year 2003, a 181.24 district may submit a waiver request within 30 days of the date 181.25 of final enactment. 181.26 [EFFECTIVE DATE.] This section is effective the day 181.27 following final enactment for revenue for fiscal year 2003. 181.28 Sec. 6. Minnesota Statutes 2002, section 124D.22, 181.29 subdivision 3, is amended to read: 181.30 Subd. 3. [SCHOOL-AGE CARE LEVY.] To obtain school-age care 181.31 revenue, a school district may levy an amount equal to the 181.32 district's school-age care revenue as defined in subdivision 2 181.33 multiplied by the lesser of one, or the ratio of the quotient 181.34 derived by dividing the adjusted net tax capacity of the 181.35 district for the year before the year the levy is certified by 181.36 the resident pupil units in the district for the school year to 182.1 which the levy is attributable, to $3,280$2,433. 182.2 Sec. 7. [APPROPRIATIONS.] 182.3 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 182.4 indicated in this section are appropriated from the general fund 182.5 to the department of education for the fiscal years designated. 182.6 Subd. 2. [COMMUNITY EDUCATION AID.] For community 182.7 education aid under Minnesota Statutes, section 124D.20: 182.8 $5,495,000 ..... 2004 182.9 $3,406,000 ..... 2005 182.10 The 2004 appropriation includes $956,000 for 2003 and 182.11 $4,539,000 for 2004. 182.12 The 2005 appropriation includes $1,134,000 for 2004 and 182.13 $2,272,000 for 2005. 182.14 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 182.15 adults with disabilities programs under Minnesota Statutes, 182.16 section 124D.56: 182.17 $688,000 ..... 2004 182.18 $710,000 ..... 2005 182.19 The 2004 appropriation includes $120,000 for 2003 and 182.20 $568,000 for 2004. 182.21 The 2005 appropriation includes $142,000 for 2004 and 182.22 $568,000 for 2005. 182.23 Subd. 4. [HEARING-IMPAIRED ADULTS.] For programs for 182.24 hearing-impaired adults under Minnesota Statutes, section 182.25 124D.57: 182.26 $70,000 ..... 2004 182.27 $70,000 ..... 2005 182.28 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day care 182.29 aid under Minnesota Statutes, section 124D.22: 182.30 $41,000 ..... 2004 182.31 $22,000 ..... 2005 182.32 The 2004 appropriation includes $14,000 for 2003 and 182.33 $27,000 for 2004. 182.34 The 2005 appropriation includes $6,000 for 2004 and $16,000 182.35 for 2005. 182.36 Sec. 8. [REPEALER.] 183.1 Minnesota Statutes 2002, sections 124D.21; 124D.221; 183.2 124D.93; and 144.401, subdivision 5, are repealed. 183.3 ARTICLE 9 183.4 SELF-SUFFICIENCY AND LIFE LONG LEARNING 183.5 Section 1. Minnesota Statutes 2002, section 124D.52, 183.6 subdivision 1, is amended to read: 183.7 Subdivision 1. [PROGRAM REQUIREMENTS.] (a) An adult basic 183.8 education program is a day or evening program offered by a 183.9 district that is for people over 16 years of age who do not 183.10 attend an elementary or secondary school. The program offers 183.11 academic instruction necessary to earn a high school diploma or 183.12 equivalency certificate. Tuition and fees may not be charged to183.13 a learner for instruction paid under this section, except for183.14 (b) Notwithstanding any law to the contrary, a school board 183.15 or the governing body of a consortium offering an adult basic 183.16 education program may adopt a sliding fee schedule based on a 183.17 family's income, but must waive the fee for participants who are 183.18 under the age of 21 or unable to pay. The fees charged must be 183.19 designed to enable individuals of all socioeconomic levels to 183.20 participate in the program. A program may charge a security 183.21 deposit to assure return of materials, supplies, and equipment. 183.22 (c) Each approved adult basic education program must 183.23 develop a memorandum of understanding with the local workforce 183.24 development centers located in the approved program's service 183.25 delivery area. The memorandum of understanding must describe 183.26 how the adult basic education program and the workforce 183.27 development centers will cooperate and coordinate services to 183.28 provide unduplicated, efficient, and effective services to 183.29 clients. 183.30 (d) Adult basic education aid must be spent for adult basic 183.31 education purposes as specified in sections 124D.518 to 124D.531. 183.32 Sec. 2. Minnesota Statutes 2002, section 124D.52, 183.33 subdivision 3, is amended to read: 183.34 Subd. 3. [ACCOUNTS; REVENUE; AID.] (a) Each district, 183.35 group of districts, or private nonprofit organization providing 183.36 adult basic education programs must establish and 184.1 maintain accounts separate from all other district accountsa 184.2 reserve account within the community service fund for the 184.3 receipt and disbursement of all funds related to these 184.4 programs. All revenue received pursuant to this section must be 184.5 utilized solely for the purposes of adult basic education 184.6 programs. State aid must not equal more than 100 percent of the 184.7 unreimbursed expenses of providing these programs, excluding 184.8 in-kind costs. 184.9 (b) Notwithstanding section 123A.26 or any other law to the 184.10 contrary, an adult basic education consortium providing an 184.11 approved adult basic education program may be its own fiscal 184.12 agent and is eligible to receive state-aid payments directly 184.13 from the commissioner. 184.14 Sec. 3. Minnesota Statutes 2002, section 124D.531, 184.15 subdivision 1, is amended to read: 184.16 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 184.17 (a) The state total adult basic education aid for fiscal year 184.18 20012004 equals $30,157,000$34,388,000. The state total adult 184.19 basic education aid for fiscal year 2005 and later is 184.20 $36,509,000. The state total adult basic education aid for184.21 later years equals:184.22 (1) the state total adult basic education aid for the184.23 preceding fiscal year; times184.24 (2) the lesser of:184.25 (i) 1.08, or184.26 (ii) the greater of 1.00 or the ratio of the state total184.27 contact hours in the first prior program year to the state total184.28 contact hours in the second prior program year.Beginning in 184.29 fiscal year 2002, two percent of the state total adult basic 184.30 education aid must be set aside for adult basic education 184.31 supplemental service grants under section 124D.522. 184.32 (b) The state total adult basic education aid, excluding 184.33 basic population aid, equals the difference between the amount 184.34 computed in paragraph (a), and the state total basic population 184.35 aid under subdivision 2. 184.36 Sec. 4. Minnesota Statutes 2002, section 124D.531, 185.1 subdivision 2, is amended to read: 185.2 Subd. 2. [BASIC POPULATION AID.] A district is eligible 185.3 for basic population aid if the district has a basic service 185.4 level approved by the commissioner under section 124D.52, 185.5 subdivision 5, or is a member of a consortium with an approved 185.6 basic service level. Basic population aid is equal to the 185.7 greater of $4,000$3,844 or $1.80$1.73 times the population of 185.8 the district. District population is determined according to 185.9 section 275.14. 185.10 Sec. 5. Minnesota Statutes 2002, section 124D.531, 185.11 subdivision 4, is amended to read: 185.12 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 185.13 Notwithstanding subdivisions 2 and 3, the total adult basic 185.14 education aid for a program per prior year contact hour must not 185.15 exceed four times the rate$21 per prior year contact hour 185.16 computed under subdivision 3, clause (2). 185.17 (b) For fiscal year 2004, the aid for a program under 185.18 subdivision 3, clause (2), adjusted for changes in program 185.19 membership, must not exceed the aid for that program under 185.20 subdivision 3, clause (2), for fiscal year 2003 by more than the 185.21 greater of eight percent or $10,000. 185.22 (c) For fiscal year 2005, the aid for a program under 185.23 subdivision 3, clause (2), adjusted for changes in program 185.24 membership, must not exceed the sum of the aid for that program 185.25 under subdivision 3, clause (2), and section 8, paragraph (a), 185.26 for the preceding fiscal year by more than the greater of eight 185.27 percent or $10,000. 185.28 (d) For fiscal year 20022006 and later, the aid for a 185.29 program under subdivision 3, clause (2), adjusted for changes in 185.30 program membership, must not exceed the aid for that program 185.31 under subdivision 3, clause (2), for the first preceding fiscal 185.32 year by more than the greater of 17eight percent or 185.33 $20,000$10,000. 185.34 (c)(d) Adult basic education aid is payable to a program 185.35 for unreimbursed costs. 185.36 Sec. 6. Minnesota Statutes 2002, section 124D.531, 186.1 subdivision 7, is amended to read: 186.2 Subd. 7. [PROGRAM AUDITS.] Programs that receive aid under 186.3 this section must maintain records that support the aid 186.4 payments. The commissioner may audit these records upon 186.5 request. The commissioner must establish procedures for 186.6 conducting fiscal audits of adult basic education programs 186.7 according to the schedule in this subdivision. In calendar year186.8 2003, the commissioner must audit one-half of approved adult186.9 basic education programs that received aid for fiscal year 2002,186.10 and in calendar year 2004, the commissioner must audit the186.11 remaining unaudited programs for aid received in fiscal year186.12 2003. Beginning with fiscal year 2005, the commissioner must,186.13 at a minimum, audit each adult basic education program once186.14 every five years. The commissioner must establish procedures to 186.15 reconcile any discrepancies between aid payments based on 186.16 information reported to the commissioner and aid estimates based 186.17 on a program audit. 186.18 Sec. 7. [ADULT BASIC EDUCATION PROGRAM APPROVAL AND AID, 186.19 FISCAL YEAR 2004.] 186.20 (a) Notwithstanding Minnesota Statutes 2002, section 186.21 124D.54, subdivision 2, a district or consortium of districts 186.22 that provided a program funded under Minnesota Statutes 2002, 186.23 section 124D.54, in fiscal year 2003 may request an extension of 186.24 the application deadline for approval of an adult basic 186.25 education program for fiscal year 2004. 186.26 (b) For purposes of computing the fiscal year 2005 adult 186.27 basic education aid for a program under Minnesota Statutes, 186.28 section 124D.531, subdivision 3, clause (2), the contact hours 186.29 for students participating in the program during the first prior 186.30 program year must be increased by 17 percent of the adult 186.31 graduation aid average daily attendance for fiscal year 2002. 186.32 Sec. 8. [ADULT BASIC EDUCATION TRANSITION AID.] 186.33 (a) For fiscal year 2004, adult basic education transition 186.34 aid for each qualifying district equals the district's adult 186.35 high school graduation aid for fiscal year 2002. This aid 186.36 amount must be used to provide an adult basic education program 187.1 under Minnesota Statutes, section 124D.52. To qualify for aid 187.2 under this section a district must establish or join an approved 187.3 adult basic education program according to Minnesota Statutes, 187.4 section 124D.52, subdivision 2. 187.5 (b) For fiscal year 2005, the adult high school graduation 187.6 aid program is eliminated. 187.7 Sec. 9. [APPROPRIATIONS.] 187.8 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 187.9 indicated in this section are appropriated from the general fund 187.10 to the department of education for the fiscal years designated. 187.11 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 187.12 education aid under Minnesota Statutes, section 124D.52, in 187.13 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 187.14 fiscal year 2005: 187.15 $33,153,000 ..... 2004 187.16 $35,823,000 ..... 2005 187.17 The 2004 appropriation includes $5,905,000 for 2003 and 187.18 $27,248,000 for 2004. 187.19 The 2005 appropriation includes $6,811,000 for 2004 and 187.20 $29,012,000 for 2005. 187.21 Subd. 3. [ADULT GRADUATION AID.] For adult graduation aid 187.22 under Minnesota Statutes, section 124D.54: 187.23 $2,094,000 ..... 2004 187.24 $ 424,000 ..... 2005 187.25 The 2004 appropriation includes $396,000 for 2003 and 187.26 $1,698,000 for 2004. 187.27 The 2005 appropriation includes $424,000 for 2004 and $0 187.28 for 2005. 187.29 Subd. 4. [GED TESTS.] For payment of 60 percent of the 187.30 costs of GED tests under Laws 1993, chapter 224, article 4, 187.31 section 44, subdivision 10: 187.32 $125,000 ..... 2004 187.33 $125,000 ..... 2005 187.34 Subd. 5. [LEAD ABATEMENT.] For lead abatement according to 187.35 Minnesota Statutes, section 119A.46: 187.36 $ 100,000 ..... 2004 188.1 $ 100,000 ..... 2005 188.2 Any balance in the first year does not cancel but is 188.3 available in the second year. 188.4 Sec. 10. [REPEALER.] 188.5 Minnesota Statutes 2002, sections 124D.09, subdivision 15; 188.6 124D.54; and 126C.05, subdivision 12, are repealed. 188.7 ARTICLE 10 188.8 STATE AGENCIES 188.9 Section 1. Minnesota Statutes 2002, section 122A.09, 188.10 subdivision 10, is amended to read: 188.11 Subd. 10. [VARIANCES.] (a) Notwithstanding subdivision 9 188.12 and section 14.05, subdivision 4, the board of teaching may 188.13 grant a variance to its rules upon application by a school 188.14 district for purposes of implementing experimental programs in 188.15 learning or management. 188.16 (b) To enable a school district to meet the needs of 188.17 students enrolled in an alternative education program and to 188.18 enable licensed teachers instructing those students to satisfy 188.19 content area licensure requirements, the board of teaching 188.20 annually may permit a licensed teacher teaching in an 188.21 alternative education program to instruct students in a content 188.22 area for which the teacher is not licensed, consistent with 188.23 paragraph (a). 188.24 [EFFECTIVE DATE.] This section is effective the day 188.25 following final enactment. 188.26 Sec. 2. Minnesota Statutes 2002, section 122A.12, 188.27 subdivision 1, is amended to read: 188.28 Subdivision 1. [MEMBERSHIP.] A board of school 188.29 administrators is established and must consist of nineten 188.30 members appointed by the governor with the advice and consent of 188.31 the senate, including at least: 188.32 (1) one elementary school principal; 188.33 (2) one secondary school principal; 188.34 (3) one higher education faculty member in an educational 188.35 administration program approved by the board; 188.36 (4) one higher education administrator for an educational 189.1 administration program approved by the board; 189.2 (5) one school superintendent; 189.3 (6) one classroom teacher; 189.4 (7) one community education director or a; 189.5 (8) one special education director; and 189.6 (8)(9) two members of the public, one of whom must be a 189.7 present or former school board member. 189.8 In making appointments, the governor shall solicit 189.9 recommendations from groups representing persons in clauses (1) 189.10 to (8)(9). 189.11 [EFFECTIVE DATE.] This section is effective the day 189.12 following final enactment. 189.13 Sec. 3. Minnesota Statutes 2002, section 122A.12, 189.14 subdivision 2, is amended to read: 189.15 Subd. 2. [TERMS; COMPENSATION; REMOVAL; ADMINISTRATION.] 189.16 Membership terms, removal of members, and the filling of 189.17 membership vacancies are as provided in section 214.09. The 189.18 terms of the initial board members must be determined by lot as 189.19 follows: 189.20 (1) three members must be appointed for terms that expire 189.21 August 1, 2002; 189.22 (2) three members must be appointed for terms that expire 189.23 August 1, 2003; and 189.24 (3) threefour members must be appointed for terms that 189.25 expire August 1, 2004. 189.26 Members shall not receive the daily payment under section 189.27 214.09, subdivision 3. The public employer of a member shall 189.28 not reduce the member's compensation or benefits for the 189.29 member's absence from employment when engaging in the business 189.30 of the board. The provision of staff, administrative services, 189.31 and office space; the review and processing of complaints; the 189.32 setting of fees; the selection and duties of an executive 189.33 secretary to serve the board; and other provisions relating to 189.34 board operations are as provided in chapter 214. Fiscal year 189.35 and reporting requirements are as provided in sections 214.07 189.36 and 214.08. 190.1 [EFFECTIVE DATE.] This section is effective the day 190.2 following final enactment. 190.3 Sec. 4. Minnesota Statutes 2002, section 122A.18, 190.4 subdivision 7a, is amended to read: 190.5 Subd. 7a. [PERMISSION TO SUBSTITUTE TEACH.] (a) The board 190.6 of teaching may allow a person who is enrolled in and making 190.7 satisfactory progress in a board-approved teacher program and 190.8 who has successfully completed student teaching to be employed 190.9 as a short-call substitute teacher. 190.10 (b) The board of teaching may issue a lifetime qualified 190.11 short-call substitute teaching license to a person who: 190.12 (1) was a qualified teacher under section 122A.16 while 190.13 holding a continuing five-year teaching license issued by the 190.14 board, and receives a retirement annuity from the teachers 190.15 retirement association, Minneapolis teachers retirement fund 190.16 association, St. Paul teachers retirement fund association, or 190.17 Duluth teachers retirement fund association; 190.18 (2) holds an out-of-state teaching license and receives a 190.19 retirement annuity as a result of the person's teaching 190.20 experience; or 190.21 (3) held a continuing five-year license issued by the 190.22 board, taught at least three school years in an accredited 190.23 nonpublic school in Minnesota, and receives a retirement annuity 190.24 as a result of the person's teaching experience. 190.25 A person holding a lifetime qualified short-call substitute 190.26 teaching license is not required to complete continuing 190.27 education clock hours. A person holding this license may 190.28 reapply to the board for a continuing five-year license and must 190.29 again complete continuing education clock hours one school year 190.30 after receiving the continuing five-year license. 190.31 [EFFECTIVE DATE.] This section is effective for the 190.32 2003-2004 school year. 190.33 Sec. 5. Minnesota Statutes 2002, section 122A.21, is 190.34 amended to read: 190.35 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 190.36 Each application for the issuance, renewal, or extension of 191.1 a license to teach must be accompanied by a processing fee in an191.2 amount set by the board of teaching by ruleof $57. Each 191.3 application for issuing, renewing, or extending the license of a 191.4 school administrator or supervisor must be accompanied by a 191.5 processing fee in the amount set by the board of teaching. The 191.6 processing fee for a teacher's license and for the licenses of 191.7 supervisory personnel must be paid to the executive secretary of 191.8 the appropriate board. The executive secretary of the board 191.9 shall deposit the fees with the state treasurer, as provided by 191.10 law, and report each month to the commissioner of finance the 191.11 amount of fees collected. The fees as set by the board are 191.12 nonrefundable for applicants not qualifying for a license. 191.13 However, a fee must be refunded by the state treasurer in any 191.14 case in which the applicant already holds a valid unexpired 191.15 license. The board may waive or reduce fees for applicants who 191.16 apply at the same time for more than one license. 191.17 Sec. 6. Minnesota Statutes 2002, section 122A.22, is 191.18 amended to read: 191.19 122A.22 [DISTRICT RECORDINGVERIFICATION OF TEACHER 191.20 LICENSES.] 191.21 No person shall be accounted a qualified teacher until the 191.22 person has filed for record with the district superintendent191.23 where the person intends to teach a license, or certified copy191.24 of a license, authorizing the person to teach school in the191.25 district school systemschool district or charter school 191.26 contracting with the person for teaching services verifies 191.27 through the Minnesota education licensing system available on 191.28 the department Web site that the person is a qualified teacher, 191.29 consistent with sections 122A.16 and 122A.44, subdivision 1. 191.30 [EFFECTIVE DATE.] This section is effective for the 191.31 2003-2004 school year and later. 191.32 Sec. 7. Minnesota Statutes 2002, section 169.26, 191.33 subdivision 3, is amended to read: 191.34 Subd. 3. [DRIVER TRAINING.] All driver education courses 191.35 approved by the commissioner of children, families, and learning191.36 andthe commissioner of public safety must include instruction 192.1 on railroad-highway grade crossing safety. The commissioner of192.2 children, families, and learning and thecommissioner of public 192.3 safety shall by rule establish minimum standards of course 192.4 content relating to operation of vehicles at railroad-highway 192.5 grade crossings. 192.6 Sec. 8. Minnesota Statutes 2002, section 169.973, 192.7 subdivision 1, is amended to read: 192.8 Subdivision 1. [COMMISSIONER'S AUTHORITY; RULES; 192.9 CURRICULUM.] The commissioner of public safety shall supervise 192.10 the administration and conduct of driver improvement clinics and 192.11 youth-oriented driver improvement clinics. The commissioner of 192.12 public safety shall promulgate rules setting forth standards for 192.13 the curriculum and mode of instruction of driver improvement 192.14 clinics and youth-oriented driver improvement clinics and such 192.15 other matters as the commissioner of public safety considers 192.16 necessary for the proper administration of such clinics. In the 192.17 preparation of such standards the commissioner of public safety 192.18 shall consult with the commissioner of children, families, and192.19 learning andstate associations of judges. A driver improvement 192.20 clinic established under sections 169.971 to 169.973 and 171.20, 192.21 subdivision 3, shall conform to the standards promulgated by the 192.22 commissioner of public safety. The course of study at a driver 192.23 improvement clinic and youth-oriented driver improvement clinic 192.24 may not exceed a cumulative total of nine hours with no single 192.25 class session lasting more than three hours. The course of 192.26 study at a driver improvement clinic and youth-oriented driver 192.27 improvement clinic shall include instruction in railroad 192.28 crossing safety. 192.29 Sec. 9. Minnesota Statutes 2002, section 178.02, 192.30 subdivision 1, is amended to read: 192.31 Subdivision 1. [MEMBERS.] The commissioner of labor and 192.32 industry, hereinafter called the commissioner, shall appoint an 192.33 apprenticeship advisory council, hereinafter referred to as the 192.34 council, composed of three representatives each from employer 192.35 and employee organizations, and two representatives of the 192.36 general public. The assistant commissionerdirector of 193.1 children, families, and learningeducation responsible for 193.2 vocationalcareer and technical education or designee shall be 193.3 an ex officio member of the council and shall serve in an 193.4 advisory capacity only. 193.5 Sec. 10. [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 193.6 Subdivision 1. [DEPARTMENT OF EDUCATION.] Unless otherwise 193.7 indicated, the sums indicated in this section are appropriated 193.8 from the general fund to the department of education for the 193.9 fiscal years designated. 193.10 Subd. 2. [DEPARTMENT.] (a) For the department of education: 193.11 $23,653,000 ..... 2004 193.12 $23,653,000 ..... 2005 193.13 Any balance in the first year does not cancel but is 193.14 available in the second year. 193.15 (b) $260,000 each year is for the Minnesota children's 193.16 museum. 193.17 (c) $41,000 each year is for the Minnesota academy of 193.18 science. 193.19 (d) $237,000 of the balance in the state education 193.20 courseware development account in the state government special 193.21 revenue fund as of July 1, 2004, is canceled to the general fund. 193.22 (e) $160,000 of the balance in the state item bank 193.23 revolving account in the state government special revenue fund 193.24 as of July 1, 2004, is canceled to the general fund. 193.25 (f) $621,000 each year is for the board of teaching. 193.26 (g) $165,000 each year is for the board of school 193.27 administrators. 193.28 (h) The commissioner is encouraged to give priority 193.29 consideration to the Minnesota humanities commission when 193.30 issuing grants for professional development of teachers or 193.31 content development from best practices, Federal Title II, Part 193.32 A, Federal Title V, Part A, or other appropriate grant resources 193.33 that have a stated objective of improvement of teacher 193.34 performance. 193.35 (i) An additional $96,000 in fiscal year 2004 and $96,000 193.36 in fiscal year 2005 are appropriated from the special revenue 194.1 fund under Minnesota Statutes, section 517.08, subdivision 1c, 194.2 for family visitation centers. Any balance in the first year 194.3 does not cancel but is available for the second year. 194.4 Subd. 3. [FEDERAL GRANTS AND AIDS.] The expenditures of 194.5 federal grants and aids as shown in the biennial budget document 194.6 and its supplements are approved and appropriated and shall be 194.7 spent as indicated. 194.8 Sec. 11. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 194.9 The sums indicated in this section are appropriated from 194.10 the general fund to the Minnesota state academies for the deaf 194.11 and the blind for the fiscal years designated: 194.12 $10,466,000 ..... 2004 194.13 $10,466,000 ..... 2005 194.14 Any balance in the first year does not cancel but is 194.15 available in the second year. 194.16 Sec. 12. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 194.17 EDUCATION.] 194.18 The sums indicated in this section are appropriated from 194.19 the general fund to the Perpich center for arts education for 194.20 the fiscal years designated: 194.21 $6,864,000 ..... 2004 194.22 $6,423,000 ..... 2005 194.23 Any balance in the first year does not cancel but is 194.24 available in the second year. 194.25 Sec. 13. [REVISOR'S INSTRUCTION.] 194.26 In the next and subsequent editions of Minnesota Statutes, 194.27 the revisor shall change all references to the "commissioner of 194.28 children, families, and learning" to the "commissioner of public 194.29 safety" in Minnesota Statutes, sections 123B.88, subdivision 9; 194.30 168.102; 169.441, subdivision 5; and 171.321, subdivision 4c; 194.31 and "Part H" to "Part C" in Minnesota Statutes, sections 194.32 125A.27, subdivisions 7 and 8; 125A.32; 125A.35; 125A.37; 194.33 125A.39; 125A.44; and 125A.45. 194.34 Sec. 14. [REPEALER.] 194.35 (a) Minnesota Statutes 2002, sections 15.014, subdivision 194.36 3; 123B.90, subdivision 1; 169.441, subdivision 4; and 239.004, 195.1 are repealed. 195.2 (b) Minnesota Rules, parts 3500.0600; 3520.0400; 3520.1400; 195.3 3520.3300; 3530.1500; 3530.2700; 3530.4400; 3530.4500; 195.4 3530.4700; and 3550.0100, are repealed. 195.5 ARTICLE 11 195.6 DEFICIENCIES 195.7 Section 1. [DEPARTMENT OF EDUCATION.] 195.8 The dollar amounts shown are added to or, if shown in 195.9 parentheses, are subtracted from the appropriations in Laws 195.10 2001, First Special Session chapter 6, as amended by Laws 2002, 195.11 chapter 220, and Laws 2002, chapter 374, or other law, and are 195.12 appropriated from the general fund to the department of 195.13 education for the purposes specified in this article, to be 195.14 available for the fiscal year indicated for each purpose. The 195.15 figure "2003" used in this article means that the appropriation 195.16 or appropriations listed are available for the fiscal year 195.17 ending June 30, 2003. 195.18 2003 195.19 APPROPRIATION ADJUSTMENTS $ 10,869,000 195.20 APPROPRIATION CHANGE 195.21 Sec. 2. APPROPRIATIONS; DEPARTMENT OF 195.22 EDUCATION 195.23 Subdivision 1. Community Education Aid 219,000 195.24 Subd. 2. General and Supplemental 195.25 Education Aid 8,791,000 195.26 This change includes ($7,420,000) for 195.27 2002 and $16,211,000 for 2003. 195.28 Subd. 3. Nonpublic Pupil Aid 437,000 195.29 Subd. 4. Consolidation Transition Aid 5,000 195.30 Subd. 5. Interdistrict Desegregation 195.31 or Integration Transportation Grants 169,000 195.32 Subd. 6. Travel for Home-Based 195.33 Services 48,000 195.34 Subd. 7. Debt Service Aid 19,000 195.35 Subd. 8. School Breakfast 100,000 195.36 Subd. 9. Fast Break to Learning 1,081,000 195.37 Sec. 3. [EFFECTIVE DATE.] 195.38 Sections 1 and 2 are effective the day following final 196.1 enactment. 196.2 ARTICLE 12 196.3 TECHNICAL AMENDMENTS 196.4 Section 1. Minnesota Statutes 2002, section 119B.011, 196.5 subdivision 20, is amended to read: 196.6 Subd. 20. [TRANSITION YEAR FAMILIES.] "Transition year 196.7 families" means families who have received MFIP assistance, or 196.8 who were eligible to receive MFIP assistance after choosing to 196.9 discontinue receipt of the cash portion of MFIP assistance under 196.10 section 256J.31, subdivision 12, for at least three of the last 196.11 six months before losing eligibility for MFIP or families196.12 participating in work first under chapter 256K who meet the196.13 requirements of section 256K.07. Transition year child care may 196.14 be used to support employment or job search. Transition year 196.15 child care is not available to families who have been 196.16 disqualified from MFIP due to fraud. 196.17 Sec. 2. Minnesota Statutes 2002, section 121A.21, is 196.18 amended to read: 196.19 121A.21 [SCHOOL HEALTH SERVICES.] 196.20 (a) Every school board must provide services to promote the 196.21 health of its pupils. 196.22 (b) The board of a district with 1,000 pupils or more in 196.23 average daily membership in early childhood family education, 196.24 preschool handicapped, elementary, and secondary programs must 196.25 comply with the requirements of this paragraph. It may use one 196.26 or a combination of the following methods: 196.27 (1) employ personnel, including at least one full-time 196.28 equivalent licensed school nurse or continue to employ a196.29 registered nurse not yet certified as a public health nurse as196.30 defined in section 145A.02, subdivision 18, who is enrolled in a196.31 program that would lead to certification within four years of196.32 August 1, 1988; 196.33 (2) contract with a public or private health organization 196.34 or another public agency for personnel during the regular school 196.35 year, determined appropriate by the board, who are currently 196.36 licensed under chapter 148 and who are certified public health 197.1 nurses; or 197.2 (3) enter into another arrangement approved by the 197.3 commissioner. 197.4 Sec. 3. Minnesota Statutes 2002, section 122A.41, 197.5 subdivision 2, is amended to read: 197.6 Subd. 2. [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] All 197.7 teachers in the public schools in cities of the first class 197.8 during the first three years of consecutive employment shall be 197.9 deemed to be in a probationary period of employment during which 197.10 period any annual contract with any teacher may, or may not, be 197.11 renewed as the school board, after consulting with the peer 197.12 review committee charged with evaluating the probationary 197.13 teachers under subdivision 2a or3, shall see fit. The school 197.14 site management team or the school board if there is no school 197.15 site management team, shall adopt a plan for a written 197.16 evaluation of teachers during the probationary period according 197.17 to subdivision 2a3. Evaluation by the peer review committee 197.18 charged with evaluating probationary teachers under subdivision 197.19 2a3 shall occur at least three times each year for a teacher 197.20 performing services on 120 or more school days, at least two 197.21 times each year for a teacher performing services on 60 to 119 197.22 school days, and at least one time each year for a teacher 197.23 performing services on fewer than 60 school days. Days devoted 197.24 to parent-teacher conferences, teachers' workshops, and other 197.25 staff development opportunities and days on which a teacher is 197.26 absent from school shall not be included in determining the 197.27 number of school days on which a teacher performs services. The 197.28 school board may, during such probationary period, discharge or 197.29 demote a teacher for any of the causes as specified in this 197.30 code. A written statement of the cause of such discharge or 197.31 demotion shall be given to the teacher by the school board at 197.32 least 30 days before such removal or demotion shall become 197.33 effective, and the teacher so notified shall have no right of 197.34 appeal therefrom. 197.35 Sec. 4. Minnesota Statutes 2002, section 122A.58, is 197.36 amended to read: 198.1 122A.58 [COACHES, TERMINATION OF DUTIES.] 198.2 Subdivision 1. [TERMINATION; HEARING.] Before a district 198.3 terminates the coaching duties of an employee who is required to 198.4 hold a license as an athletic coach from the commissioner 198.5 of children, families, and learningeducation, the district must 198.6 notify the employee in writing and state its reason for the 198.7 proposed termination. Within 14 days of receiving this 198.8 notification, the employee may request in writing a hearing on 198.9 the termination before the commissionerboard. If a hearing is 198.10 requested, the commissionerboard must hold a hearing within 25 198.11 days according to the hearing procedures specified in section 198.12 122A.40, subdivision 14, and the termination is final upon the 198.13 order of the commissionerboard after the hearing. 198.14 Subd. 2. [FINAL DECISION.] Within ten days after the 198.15 hearing, the commissionerboard must issue a written decision 198.16 regarding the termination. If the commissionerboard decides to 198.17 terminate the employee's coaching duties, the decision must 198.18 state the reason on which it is based and include findings of 198.19 fact based upon competent evidence in the record. The 198.20 commissionerboard may terminate the employee's duties or not, 198.21 as it sees fit, for any reason which is found to be true based 198.22 on substantial and competent evidence in the record. 198.23 Subd. 3. [NONAPPLICATION OF SECTION.] This section shall 198.24 not apply to the termination of coaching duties pursuant to a 198.25 district transfer policy or as a result of the nonrenewal or 198.26 termination of the employee's contract or the employee's 198.27 discharge, demotion or suspension pursuant to section 122A.40 or 198.28 122A.41. This section shall not apply to the termination of an 198.29 employee's coaching duties prior to completion ofbefore 198.30 completing the probationary period of employment. 198.31 Sec. 5. Minnesota Statutes 2002, section 123B.02, 198.32 subdivision 1, is amended to read: 198.33 Subdivision 1. [BOARD AUTHORITY.] The board must have the 198.34 general charge of the business of the district, the school 198.35 houses, and of the interests of the schools thereof. The 198.36 board's authority to govern, manage, and control the district; 199.1 to carry out its duties and responsibilities; and to conduct the 199.2 business of the district includes implied powers in addition to 199.3 any specific powers granted by the legislature. 199.4 Sec. 6. Minnesota Statutes 2002, section 123B.72, 199.5 subdivision 3, is amended to read: 199.6 Subd. 3. [CERTIFICATION.] Prior to occupying or 199.7 reoccupying a school facility affected by this section, a school 199.8 board or its designee shall submit a document prepared by a 199.9 system inspector to the building official or to the 199.10 commissioner, verifying that the facility's heating, 199.11 ventilation, and air conditioning system has been installed and 199.12 operates according to design specifications and code, according 199.13 to section 123B.71, subdivision 109, clause (3)(11). A 199.14 systems inspector shall also verify that the facility's design 199.15 will provide the ability for monitoring of outdoor airflow and 199.16 total airflow of ventilation systems in new school facilities 199.17 and that any heating, ventilation, or air conditioning system 199.18 that is installed or modified for a project subject to this 199.19 section must provide a filtration system with a current ASHRAE 199.20 standard. 199.21 Sec. 7. Minnesota Statutes 2002, section 123B.93, is 199.22 amended to read: 199.23 123B.93 [ADVERTISING ON SCHOOL BUSES.] 199.24 (a) The commissioner, through a competitive process, and199.25 with the approval of the school bus safety advisory committee199.26 may contract with advertisers regarding advertising on school 199.27 buses. At a minimum, the contract must prohibit advertising and 199.28 advertising images that: 199.29 (1) solicit the sale of, or promote the use of, alcoholic 199.30 beverages and tobacco products; 199.31 (2) are discriminatory in nature or content; 199.32 (3) imply or declare an endorsement of the product or 199.33 service by the school district; 199.34 (4) contain obscene material; 199.35 (5) are false, misleading, or deceptive; or 199.36 (6) relate to an illegal activity or antisocial behavior. 200.1 (b) Advertisement must meet the following conditions: 200.2 (1) the advertising attached to the school bus does not 200.3 interfere with bus identification under section 169.441; and 200.4 (2) the bus with attached advertising meets the school bus 200.5 equipment standards under sections 169.4501 to 169.4504. 200.6 (c) All buses operated by school districts may be attached 200.7 with advertisements under the state contract. All school 200.8 district contracts shall include a provision for advertisement. 200.9 Each school district shall be reimbursed by the advertiser for 200.10 all costs incurred by the district and its contractors for 200.11 supporting the advertising program, including, but not limited 200.12 to, retrofitting buses, storing advertising, attaching 200.13 advertising to the bus, and related maintenance. 200.14 (d) The commissioner shall hold harmless and indemnify each 200.15 district for all liabilities arising from the advertising 200.16 program. Each district must tender defense of all such claims 200.17 to the commissioner within five days of receipt. 200.18 (e) All revenue from the contract shall be deposited in the 200.19 general fund. 200.20 Sec. 8. Minnesota Statutes 2002, section 124D.03, 200.21 subdivision 12, is amended to read: 200.22 Subd. 12. [TERMINATION OF ENROLLMENT.] A district may 200.23 terminate the enrollment of a nonresident student enrolled under 200.24 this section or section 124D.07 or124D.08 at the end of a 200.25 school year if the student meets the definition of a habitual 200.26 truant under section 260C.007, subdivision 19, the student has 200.27 been provided appropriate services under chapter 260A, and the 200.28 student's case has been referred to juvenile court. A district 200.29 may also terminate the enrollment of a nonresident student over 200.30 the age of 16 enrolled under this section if the student is 200.31 absent without lawful excuse for one or more periods on 15 200.32 school days and has not lawfully withdrawn from school under 200.33 section 120A.22, subdivision 8. 200.34 Sec. 9. Minnesota Statutes 2002, section 124D.09, 200.35 subdivision 3, is amended to read: 200.36 Subd. 3. [DEFINITIONS.] For purposes of this section, the 201.1 following terms have the meanings given to them. 201.2 (a) "Eligible institution" means a Minnesota public 201.3 post-secondary institution, a private, nonprofit two-year trade 201.4 and technical school granting associate degrees, an 201.5 opportunities industrialization center accredited by the North 201.6 Central Association of Colleges and Schools, or a private, 201.7 residential, two-year or four-year, liberal arts, 201.8 degree-granting college or university located in Minnesota. 201.9 "Course" means a course or program.201.10 (b) "Course" means a course or program. 201.11 Sec. 10. Minnesota Statutes 2002, section 124D.10, 201.12 subdivision 13, is amended to read: 201.13 Subd. 13. [LENGTH OF SCHOOL YEAR.] A charter school must 201.14 provide instruction each year for at least the number of days 201.15 required by section 120A.22, subdivision 5120A.41. It may 201.16 provide instruction throughout the year according to sections 201.17 124D.12 to 124D.127 or 124D.128. 201.18 Sec. 11. Minnesota Statutes 2002, section 124D.10, 201.19 subdivision 23a, is amended to read: 201.20 Subd. 23a. [RELATED PARTY LEASE COSTS.] (a) A charter 201.21 school is prohibited from entering a lease of real property with 201.22 a related party as defined in this subdivision, unless the 201.23 lessor is a nonprofit corporation under chapter 317A or a 201.24 cooperative under chapter 308A, and the lease cost is reasonable 201.25 under section 124D.11, subdivision 4, clause (1). 201.26 (b) For purposes of this subdivision: 201.27 (1) A "related party" is an affiliate or close relative of 201.28 the other party in question, an affiliate of a close relative, 201.29 or a close relative of an affiliate. 201.30 (2) "Affiliate" means a person that directly, or indirectly 201.31 through one or more intermediaries, controls, or is controlled 201.32 by, or is under common control with, another person. 201.33 (3) "Close relative" means an individual whose relationship 201.34 by blood, marriage, or adoption to another individual is no more 201.35 remote than first cousin. 201.36 (4) "Person" means an individual or entity of any kind. 202.1 (5) "Control" includes the terms "controlling," "controlled 202.2 by," and "under common control with" and means the possession, 202.3 direct or indirect, of the power to direct or cause the 202.4 direction of the management, operations, or policies of a 202.5 person, whether through the ownership of voting securities, by 202.6 contract, or otherwise. 202.7 (c) A lease of real property to be used for a charter 202.8 school, not excluded in paragraph (b), must contain the 202.9 following statement: "This lease is subject to Minnesota 202.10 Statutes, section 124D.10, subdivision 23a." 202.11 (d) If a charter school enters into as lessee a lease with 202.12 a related party and the charter school subsequently closes, the 202.13 commissioner has the right to recover from the lessor any lease 202.14 payments in excess of those that are reasonable under section 202.15 124.11124D.11, subdivision 4, clause (1). 202.16 Sec. 12. Minnesota Statutes 2002, section 125A.05, is 202.17 amended to read: 202.18 125A.05 [METHOD OF SPECIAL INSTRUCTION.] 202.19 (a) As defined in this subdivisionsection, to the extent 202.20 required by federal law as of July 1, 1999, special instruction 202.21 and services for children with a disability must be based on the 202.22 assessment and individual education plan. The instruction and 202.23 services may be provided by one or more of the following methods: 202.24 (1) in connection with attending regular elementary and 202.25 secondary school classes; 202.26 (2) establishment of special classes; 202.27 (3) at the home or bedside of the child; 202.28 (4) in other districts; 202.29 (5) instruction and services by special education 202.30 cooperative centers established under this section, or in 202.31 another member district of the cooperative center to which the 202.32 resident district of the child with a disability belongs; 202.33 (6) in a state residential school or a school department of 202.34 a state institution approved by the commissioner; 202.35 (7) in other states; 202.36 (8) by contracting with public, private or voluntary 203.1 agencies; 203.2 (9) for children under age five and their families, 203.3 programs and services established through collaborative efforts 203.4 with other agencies; 203.5 (10) for children under age five and their families, 203.6 programs in which children with a disability are served with 203.7 children without a disability; and 203.8 (11) any other method approved by the commissioner. 203.9 (b) Preference shall be given to providing special 203.10 instruction and services to children under age three and their 203.11 families in the residence of the child with the parent or 203.12 primary caregiver, or both, present. 203.13 (c) The primary responsibility for the education of a child 203.14 with a disability must remain with the district of the child's 203.15 residence regardless of which method of providing special 203.16 instruction and services is used. If a district other than a 203.17 child's district of residence provides special instruction and 203.18 services to the child, then the district providing the special 203.19 instruction and services must notify the child's district of 203.20 residence before the child's individual education plan is 203.21 developed and must provide the district of residence an 203.22 opportunity to participate in the plan's development. The 203.23 district of residence must inform the parents of the child about 203.24 the methods of instruction that are available. 203.25 Sec. 13. Minnesota Statutes 2002, section 125A.12, is 203.26 amended to read: 203.27 125A.12 [ATTENDANCE IN ANOTHER DISTRICT.] 203.28 No resident of a district who is eligible for special 203.29 instruction and services pursuant to this section may be denied 203.30 provision of this instruction and service because of attending a 203.31 public school in another district pursuant to section 123B.88, 203.32 subdivision 5, if the attendance is not subject to section 203.33 124D.06 , 124D.07,or 124D.08. If the pupil attends a public 203.34 school located in a contiguous district and the district of 203.35 attendance does not provide special instruction and services, 203.36 the district of residence must provide necessary transportation 204.1 for the pupil between the boundary of the district of residence 204.2 and the educational facility where special instruction and 204.3 services are provided within the district of residence. The 204.4 district of residence may provide necessary transportation for 204.5 the pupil between its boundary and the school attended in the 204.6 contiguous district, but must not pay the cost of transportation 204.7 provided outside the boundary of the district of residence. 204.8 Sec. 14. Minnesota Statutes 2002, section 126C.10, 204.9 subdivision 28, is amended to read: 204.10 Subd. 28. [EQUITY REGION.] For the purposes of computing 204.11 equity revenue under subdivision 2324, a district whose 204.12 administrative offices on July 1, 1999, is located in Anoka, 204.13 Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 204.14 part of the metro equity region. Districts whose administrative 204.15 offices on July 1, 1999, are not located in Anoka, Carver, 204.16 Dakota, Hennepin, Ramsey, Scott, or Washington county are part 204.17 of the rural equity region. 204.18 Sec. 15. Minnesota Statutes 2002, section 127A.05, 204.19 subdivision 4, is amended to read: 204.20 Subd. 4. [ADMINISTRATIVE RULES.] The commissioner may 204.21 adopt new rules or amend any existing rules only under specific 204.22 authority and consistent with the requirements of chapter 14. 204.23 The commissioner may repeal any existing rules adopted by the 204.24 commissioner. Notwithstanding the provisions of section 14.05,204.25 subdivision 4,The commissioner may grant a variance to rules 204.26 adopted by the commissioner upon application by a school 204.27 district for purposes of implementing experimental programs in 204.28 learning or school management. This subdivision shall not 204.29 prohibit the commissioner from making technical changes or 204.30 corrections to rules adopted by the commissioner. 204.31 Sec. 16. Minnesota Statutes 2002, section 127A.45, 204.32 subdivision 12, is amended to read: 204.33 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 204.34 hundred percent of the aid for the current fiscal year must be 204.35 paid for the following aids: reimbursement for enrollment 204.36 options transportation, according to sections 124D.03, 205.1 subdivision 8, 124D.09, subdivision 22, and 124D.10; school 205.2 lunch aid, according to section 124D.111; hearing impaired 205.3 support services aid, according to section 124D.57; and Indian 205.4 post-secondary preparation grants according to section 124D.85205.5 124D.80. 205.6 (b) One hundred percent of the aid for the current fiscal 205.7 year, based on enrollment in the previous year, must be paid for 205.8 the first grade preparedness program according to section 205.9 124D.081. 205.10 Sec. 17. Minnesota Statutes 2002, section 169.435, is 205.11 amended to read: 205.12 169.435 [STATE SCHOOL BUS SAFETY ADMINISTRATION.] 205.13 Subdivision 1. [RESPONSIBILITY; DEPARTMENT OF PUBLIC 205.14 SAFETY.] The department of public safety has the primary 205.15 responsibility for school transportation safety. To oversee205.16 school transportation safety, the commissioner of public safety205.17 shall establish a school bus safety advisory committee according205.18 to subdivision 2.The commissioner or the commissioner's 205.19 designee shall serve as state director of pupil transportation 205.20 according to subdivision 3. 205.21 Subd. 3. [PUPIL TRANSPORTATION SAFETY DIRECTOR.] (a) The 205.22 commissioner of public safety or the commissioner's designee 205.23 shall serve as pupil transportation safety director. 205.24 (b) The duties of the pupil transportation safety director 205.25 shall include: 205.26 (1) overseeing all department activities related to school 205.27 bus safety; 205.28 (2) assisting in the development, interpretation, and 205.29 implementation of laws and policies relating to school bus 205.30 safety; 205.31 (3) supervising preparation of the school bus inspection 205.32 manual; and 205.33 (4) in conjunction with the department of children,205.34 families, and learningeducation, assisting school districts in 205.35 developing and implementing comprehensive transportation 205.36 policies ; and206.1 (5) providing information requested by the school bus206.2 safety advisory committee. 206.3 Sec. 18. Minnesota Statutes 2002, section 169.449, 206.4 subdivision 1, is amended to read: 206.5 Subdivision 1. [RULES.] The commissioner of public safety ,206.6 in consultation with the school bus safety advisory committee,206.7 shall adopt rules governing the operation of school buses used 206.8 for transportation of school children, when owned or operated by 206.9 a school or privately owned and operated under a contract with a 206.10 school, and these rules must be made a part of that contract by 206.11 reference. Each school, its officers and employees, and each 206.12 person employed under the contract is subject to these rules. 206.13 Sec. 19. Minnesota Statutes 2002, section 169.4501, 206.14 subdivision 3, is amended to read: 206.15 Subd. 3. [INSPECTION MANUAL.] The department of public 206.16 safety shall develop a school bus inspection manual based on the 206.17 national standards adopted in subdivision 1 and Minnesota 206.18 standards adopted in sections 169.4502 to 169.4504. The 206.19 Minnesota state patrol shall use the manual as the basis for 206.20 inspecting buses as provided in section 169.451. When206.21 appropriate, the school bus safety advisory committee shall206.22 recommend to the education committees of the legislature206.23 modifications to the standards upon which the school bus206.24 inspection manual is based.The department of public safety has 206.25 no rulemaking authority to alter the standards upon which school 206.26 buses are inspected. 206.27 Sec. 20. Minnesota Statutes 2002, section 169.4501, 206.28 subdivision 4, is amended to read: 206.29 Subd. 4. [VARIANCE.] The commissioner of public safety may 206.30 grant a variance to any of the school bus standards to 206.31 accommodate testing of new equipment related to school buses. A 206.32 variance from the standards must be for the sole purpose of 206.33 testing and evaluating new equipment for increased safety, 206.34 efficiency, and economy of pupil transportation. The variance 206.35 expires 18 months from the date on which it is granted unless 206.36 the commissioner specifies an earlier expiration date. The207.1 school bus safety advisory committee shall annually review all207.2 variances that are granted under this subdivision and consider207.3 whether to recommend modifications to the Minnesota school bus207.4 equipment standards based on the variances.207.5 Sec. 21. [REPEALER.] 207.6 (a) Minnesota Statutes 2002, section 126C.55, subdivision 207.7 5, is repealed. 207.8 (b) Laws 2001, First Special Session chapter 3, article 4, 207.9 sections 1 and 2; and Laws 2001, First Special Session chapter 207.10 6, article 2, section 52, are repealed.