Minnesota Legislature
HF 82
3rd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to education; providing for kindergarten 1.3 through grade 12 education including general education 1.4 revenue; education excellence; special programs; 1.5 facilities and technology; nutrition, school 1.6 accounting, and other programs; agency provisions; 1.7 deficiencies; local achievement testing; and technical 1.8 amendments; appropriating money; amending Minnesota 1.9 Statutes 2000, sections 16B.616, subdivision 4; 1.10 120A.05, by adding a subdivision; 120B.02; 120B.031, 1.11 subdivision 11; 120B.13, subdivision 1; 120B.30, 1.12 subdivision 1; 120B.31, subdivision 3; 120B.35; 1.13 121A.11, by adding subdivisions; 121A.41, subdivision 1.14 10; 121A.45, subdivision 2, by adding a subdivision; 1.15 121A.582; 121A.61, subdivision 2; 122A.06, by adding a 1.16 subdivision; 122A.09, subdivision 4; 122A.162; 1.17 122A.163; 122A.18, subdivisions 1, 2, 2a, 4, by adding 1.18 subdivisions; 122A.20, subdivision 2; 122A.21; 1.19 122A.26, subdivision 3; 122A.31; 122A.61, subdivision 1.20 1; 123B.03, subdivision 3; 123B.143, subdivision 1; 1.21 123B.42, subdivision 3; 123B.44, subdivision 6; 1.22 123B.53, subdivisions 1, 2, 4, 5; 123B.54; 123B.57, 1.23 subdivisions 3, 6; 123B.71, subdivisions 1, 4, 8, 9; 1.24 123B.75, subdivision 5, by adding subdivisions; 1.25 123B.80, subdivision 1; 123B.92, by adding a 1.26 subdivision; 124D.10, subdivisions 1, 3, 4, 6, 8, 10, 1.27 14, 15, 19, 23, 25, by adding subdivisions; 124D.11, 1.28 subdivisions 4, 5, 9; 124D.128, subdivisions 1, 2, 3, 1.29 6; 124D.454, subdivision 11; 124D.65, subdivision 5; 1.30 124D.69, subdivision 1; 124D.74, subdivisions 1, 2, 3, 1.31 4, 6; 124D.75, subdivision 6; 124D.76; 124D.78, 1.32 subdivision 1; 124D.81, subdivisions 1, 3, 5, 6, 7; 1.33 124D.86, subdivision 6; 125A.023, subdivision 4; 1.34 125A.08; 125A.09, subdivision 3; 125A.11, subdivision 1.35 3; 125A.17; 125A.27, subdivision 15; 125A.76, 1.36 subdivisions 1, 2; 126C.05, subdivisions 1, 3, 5, 6, 1.37 15; 126C.10, subdivisions 1, 2, 3, 9, 20, 21, 22, 24, 1.38 25, 27, by adding a subdivision; 126C.12, subdivisions 1.39 2, 3, 4, 5, by adding a subdivision; 126C.13, 1.40 subdivision 1; 126C.15, subdivisions 1, 2, 5; 126C.16, 1.41 by adding a subdivision; 126C.17, subdivisions 1, 2, 1.42 5, 6, 9, 10, 11; 126C.23, subdivision 5; 126C.41, 1.43 subdivision 3; 126C.43, subdivision 3; 126C.63, 1.44 subdivision 8; 126C.69, subdivisions 2, 3, 9, 12, 15; 1.45 127A.05, subdivision 1; 127A.41, subdivisions 5, 8, 9; 1.46 127A.45, subdivision 12, by adding a subdivision; 2.1 127A.50, subdivision 2; 136D.281, subdivision 4; 2.2 136D.741, subdivision 4; 136D.88, subdivision 4; 2.3 179A.20, by adding a subdivision; 214.01, subdivision 2.4 3; 214.04, subdivisions 1, 3; 214.12, subdivision 1; 2.5 260A.01; 260C.163, subdivision 11; 475.53, subdivision 2.6 4; 475.61, subdivision 3; 626.556, subdivision 2; Laws 2.7 1992, chapter 499, article 7, section 31, as amended; 2.8 Laws 2000, chapter 489, article 2, sections 34, 36, 2.9 37, subdivision 3, 39, subdivision 2; Laws 2000, 2.10 chapter 489, article 3, sections 24, 25, subdivision 2.11 5; Laws 2000, chapter 489, article 5, section 21; Laws 2.12 2000, chapter 489, article 7, section 15, subdivision 2.13 3; proposing coding for new law in Minnesota Statutes, 2.14 chapters 120B; 122A; 124D; 127A; repealing Minnesota 2.15 Statutes 2000, sections 120B.031; 120B.31, 2.16 subdivisions 1, 2, 4; 123B.05; 123B.71, subdivisions 2.17 3, 10; 124D.07; 124D.1155; 124D.128, subdivision 7; 2.18 124D.32; 124D.85; 126C.01, subdivision 10; 126C.10, 2.19 subdivisions 3, 12, 23, 28; 126C.16, subdivision 2; 2.20 126C.17, subdivision 12; 126C.18; 126C.22; 126C.30; 2.21 126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 126C.36; 2.22 126C.42, subdivisions 2, 3; 126C.47; 127A.44; 2.23 135A.081; 136D.281, subdivision 8; 136D.741, 2.24 subdivision 8; 136D.88, subdivision 8; 136D.94; Laws 2.25 2000, chapter 254, section 30; Laws 2000, chapter 489, 2.26 article 1, section 18; Minnesota Rules, parts 2.27 3501.0300; 3501.0310; 3501.0320; 3501.0330; 3501.0340; 2.28 3501.0350; 3501.0370; 3501.0380; 3501.0390; 3501.0400; 2.29 3501.0410; 3501.0420; 3501.0430; 3501.0440; 3501.0441; 2.30 3501.0442; 3501.0443; 3501.0444; 3501.0445; 3501.0446; 2.31 3501.0447; 3501.0448; 3501.0449; 3501.0450; 3501.0460; 2.32 3501.0461; 3501.0462; 3501.0463; 3501.0464; 3501.0465; 2.33 3501.0466; 3501.0467; 3501.0468; 3501.0469. 2.34 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.35 ARTICLE 1 2.36 GENERAL EDUCATION REVENUE 2.37 Section 1. Minnesota Statutes 2000, section 123B.143, 2.38 subdivision 1, is amended to read: 2.39 Subdivision 1. [CONTRACT; DUTIES.] All districts 2.40 maintaining a classified secondary school must employ a 2.41 superintendent who shall be an ex officio nonvoting member of 2.42 the school board. The authority for selection and employment of 2.43 a superintendent must be vested in the board in all cases. An 2.44 individual employed by a board as a superintendent shall have an 2.45 initial employment contract for a period of time no longer than 2.46 three years from the date of employment. Any subsequent 2.47 employment contract must not exceed a period of three years. A 2.48 board, at its discretion, may or may not renew an employment 2.49 contract. A board must not, by action or inaction, extend the 2.50 duration of an existing employment contract. Beginning 365 days 2.51 prior to the expiration date of an existing employment contract, 2.52 a board may negotiate and enter into a subsequent employment 3.1 contract to take effect upon the expiration of the existing 3.2 contract. A subsequent contract must be contingent upon the 3.3 employee completing the terms of an existing contract. If a 3.4 contract between a board and a superintendent is terminated 3.5 prior to the date specified in the contract, the board may not 3.6 enter into another superintendent contract with that same 3.7 individual that has a term that extends beyond the date 3.8 specified in the terminated contract. A board may terminate a 3.9 superintendent during the term of an employment contract for any 3.10 of the grounds specified in section 122A.40, subdivision 9 or 13. 3.11 A superintendent shall not rely upon an employment contract with 3.12 a board to assert any other continuing contract rights in the 3.13 position of superintendent under section 122A.40. 3.14 Notwithstanding the provisions of sections 122A.40, subdivision 3.15 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 3.16 individual shall have a right to employment as a superintendent 3.17 based on order of employment in any district. If two or more 3.18 districts enter into an agreement for the purchase or sharing of 3.19 the services of a superintendent, the contracting districts have 3.20 the absolute right to select one of the individuals employed to 3.21 serve as superintendent in one of the contracting districts and 3.22 no individual has a right to employment as the superintendent to 3.23 provide all or part of the services based on order of employment 3.24 in a contracting district. The superintendent of a district 3.25 shall perform the following: 3.26 (1) visit and supervise the schools in the district, report 3.27 and make recommendations about their condition when advisable or 3.28 on request by the board; 3.29 (2) recommend to the board employment and dismissal of 3.30 teachers; 3.31 (3) superintend school grading practices and examinations 3.32 for promotions; 3.33 (4) make reports required by the commissioner; 3.34 (5) by January 10, submit an annual report to the 3.35 commissioner in a manner prescribed by the commissioner, in 3.36 consultation with school districts,identifying the expenditures4.1that the district requires to ensure an 80 percent and a 904.2percent student passage rate on the basic standards test taken4.3in the eighth grade, identifying the amount of expenditures that4.4the district requires to ensure a 99 percent student passage4.5rate on the basic standards test by 12th grade, andto identify 4.6 how much the district is cross-subsidizing programs with special 4.7 education, basic skills,and general education revenue; and 4.8 (6) perform other duties prescribed by the board. 4.9 Sec. 2. Minnesota Statutes 2000, section 123B.42, 4.10 subdivision 3, is amended to read: 4.11 Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the 4.12 textbooks, individualized instructional or cooperative learning 4.13 materials, and standardized tests provided for in this section 4.14 for each school year must not exceed the statewide average 4.15 expenditure per pupil, adjusted pursuant to clause (b), by the 4.16 Minnesota public elementary and secondary schools for textbooks, 4.17 individualized instructional materials and standardized tests as 4.18 computed and established by the department byMarchFebruary 1 4.19 of the preceding school year from the most recent public school 4.20 year data then available. 4.21 (b) The cost computed in clause (a) shall be increased by 4.22 an inflation adjustment equal to the percent of increase in the 4.23 formula allowance, pursuant to section 126C.10, subdivision 2, 4.24 from the second preceding school year to the current school year. 4.25 (c) The commissioner shall allot to the districts or 4.26 intermediary service areas the total cost for each school year 4.27 of providing or loaning the textbooks, individualized 4.28 instructional or cooperative learning materials, and 4.29 standardized tests for the pupils in each nonpublic school. The 4.30 allotment shall not exceed the product of the statewide average 4.31 expenditure per pupil, according to clause (a), adjusted 4.32 pursuant to clause (b), multiplied by the number of nonpublic 4.33 school pupils who make requests pursuant to this section and who 4.34 are enrolled as of September 15 of the current school year. 4.35 Sec. 3. Minnesota Statutes 2000, section 123B.44, 4.36 subdivision 6, is amended to read: 5.1 Subd. 6. [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 5.2 of computing maximum allotments for each school year pursuant to 5.3 this section, the average public school expenditure per pupil 5.4 for health services and the average public school expenditure 5.5 per secondary pupil for guidance and counseling services shall 5.6 be computed and established by the department byMarchFebruary 5.7 1 of the preceding school year from the most recent public 5.8 school year data then available. 5.9 Sec. 4. Minnesota Statutes 2000, section 123B.75, 5.10 subdivision 5, is amended to read: 5.11 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 5.12 settlement revenue" means the current, delinquent, and 5.13 manufactured home property tax receipts collected by the county 5.14 and distributed to the school district. 5.15 (b) In June ofeach year2001, the school district must 5.16 recognize as revenue, in the fund for which the levy was made, 5.17 the lesser of: 5.18 (1) the sum of May, June, and July school district tax 5.19 settlement revenue received in that calendar year plus general 5.20 education aid according to section 126C.13, subdivision 4, 5.21 received in July and August of that calendar year; or 5.22 (2) the sum of: 5.23 (i) 31 percent of the referendum levy certified in the 5.24 prior calendar year according to section 126C.17, subdivision 9; 5.25 plus 5.26 (ii) the entire amount of the levy certified in the prior 5.27 calendar year according to sections 124D.86, subdivision 4, for 5.28 school districts receiving revenue under 124D.86, subdivision 3, 5.29 clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 5.30 paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 5.31 126C.48, subdivision 6. 5.32 (c) For fiscal year 2002 and later years, in June of each 5.33 year, the school district must recognize as revenue, in the fund 5.34 for which the levy was made, the lesser of: 5.35 (1) the sum of May, June, and July school district tax 5.36 settlement revenue received in that calendar year, plus general 6.1 education aid according to section 126C.13, subdivision 4, 6.2 received in July and August of that calendar year; or 6.3 (2) the sum of: 6.4 (i) the lesser of 50 percent of the referendum levy 6.5 certified in the prior calendar year according to section 6.6 126C.17, subdivision 9; or 31 percent of the referendum levy 6.7 certified according to section 126C.17, in calendar year 2000; 6.8 plus 6.9 (ii) the entire amount of the levy certified in the prior 6.10 calendar year according to section 124D.86, subdivision 4, for 6.11 school districts receiving revenue under sections 124D.86, 6.12 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 6.13 1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 6.14 2; and 126C.48, subdivision 6. 6.15 [EFFECTIVE DATE.] This section is effective June 30, 2001. 6.16 Sec. 5. Minnesota Statutes 2000, section 123B.75, is 6.17 amended by adding a subdivision to read: 6.18 Subd. 6b. [GENERAL EDUCATION AID.] If the amount to be 6.19 recognized as revenue under subdivision 5 exceeds the May, June, 6.20 and July school district tax settlement revenue received in that 6.21 calendar year, the district must recognize an amount of general 6.22 education aid equal to the difference between the total amount 6.23 to be recognized as revenue under subdivision 5, and the May, 6.24 June, and July school district tax settlement revenue received 6.25 in that calendar year as revenue in the previous fiscal year. 6.26 [EFFECTIVE DATE.] This section is effective June 30, 2001. 6.27 Sec. 6. Minnesota Statutes 2000, section 123B.92, is 6.28 amended by adding a subdivision to read: 6.29 Subd. 11. [TRANSPORTATION RESERVE.] Each school district 6.30 may reserve its transportation revenue, including the portion of 6.31 the general education formula identified for transportation, 6.32 integration, sparsity, nonpublic, special needs, and bus 6.33 purchase revenue. This revenue may only be spent for 6.34 transportation purposes including bus purchases. 6.35 Sec. 7. Minnesota Statutes 2000, section 124D.69, 6.36 subdivision 1, is amended to read: 7.1 Subdivision 1. [AID.] If a pupil enrolls in an alternative 7.2 program, eligible under section 124D.68, subdivision 3, 7.3 paragraph (d), or subdivision 4, operated by a private 7.4 organization that has contracted with a school district to 7.5 provide educational services for eligible pupils under section 7.6 124D.68, subdivision 2, the district contracting with the 7.7 private organization must reimburse the provider an amount equal 7.8 to at least9095 percent of the district's average general 7.9 education less basic skills revenue per pupil unit times the 7.10 number of pupil units for pupils attending the program. Basic 7.11 skills revenue shall be paid according to section 126C.10, 7.12 subdivision 4. Compensatory revenue must be allocated according 7.13 to section 126C.15, subdivision 2. For a pupil attending the 7.14 program part time, the revenue paid to the program must be 7.15 reduced proportionately, according to the amount of time the 7.16 pupil attends the program, and revenue paid to the district 7.17 shall be reduced accordingly. Pupils for whom a district 7.18 provides reimbursement may not be counted by the district for 7.19 any purpose other than computation of general education 7.20 revenue. If payment is made to a district or program for a 7.21 pupil under this section, the department must not make a payment 7.22 for the same pupil under section 124D.68, subdivision 9. 7.23 [EFFECTIVE DATE.] This section is effective for revenue for 7.24 fiscal years 2002 and later. 7.25 Sec. 8. Minnesota Statutes 2000, section 126C.05, 7.26 subdivision 1, is amended to read: 7.27 Subdivision 1. [PUPIL UNIT.] Pupil units for each 7.28 Minnesota resident pupil in average daily membership enrolled in 7.29 the district of residence, in another district under sections 7.30 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 7.31 124D.68; in a charter school under section 124D.10; or for whom 7.32 the resident district pays tuition under section 123A.18, 7.33 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 7.34 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 7.35 125A.65, shall be counted according to this subdivision. 7.36 (a) A prekindergarten pupil with a disability who is 8.1 enrolled in a program approved by the commissioner and has an 8.2 individual education plan is counted as the ratio of the number 8.3 of hours of assessment and education service to 825 times 1.25 8.4 with a minimum average daily membership of 0.28, but not more 8.5 than 1.25 pupil units. 8.6 (b) A prekindergarten pupil who is assessed but determined 8.7 not to be handicapped is counted as the ratio of the number of 8.8 hours of assessment service to 825 times 1.25. 8.9 (c) A kindergarten pupil with a disability who is enrolled 8.10 in a program approved by the commissioner is counted as the 8.11 ratio of the number of hours of assessment and education 8.12 services required in the fiscal year by the pupil's individual 8.13 education program plan to 875, but not more than one. 8.14 (d) A kindergarten pupil who is not included in paragraph 8.15 (c) is counted as .557 of a pupil unit for fiscal year 2000 and 8.16 thereafter. 8.17 (e) A pupil who is in any of grades 1 to 3 is counted as 8.18 1.115 pupil units for fiscal year 2000 and thereafter. 8.19 (f) A pupil who is any of grades 4 to 6 is counted as 1.06 8.20 pupil units for fiscal year 1995 and thereafter. 8.21 (g) A pupil who is in any of grades 7 to 12 is counted as 8.22 1.3 pupil units. 8.23 (h) A pupil who is in the post-secondary enrollment options 8.24 program is counted as 1.3 pupil units. 8.25 Sec. 9. Minnesota Statutes 2000, section 126C.05, 8.26 subdivision 3, is amended to read: 8.27 Subd. 3. [COMPENSATIONREMEDIAL REVENUE PUPIL UNITS.] 8.28Compensation(a) Remedial revenue pupil unitsfor fiscal year8.291998 and thereaftermust be computed according to this 8.30 subdivision. 8.31(a)(b) Thecompensationremedial revenue concentration 8.32 percentage for each building in a district equals the product of 8.33 100 times the ratio of: 8.34 (1) the sum of the number of pupils enrolled in the 8.35 building eligible to receive free lunch plus one-half of the 8.36 pupils eligible to receive reduced priced lunch on October 1 of 9.1 the previous fiscal year; to 9.2 (2) the number of pupils enrolled in the building on 9.3 October 1 of the previous fiscal year. 9.4(b)(c) Thecompensationremedial revenue pupil weighting 9.5 factor for a building equals the lesser of one or the quotient 9.6 obtained by dividing the building's compensation revenue 9.7 concentration percentage by 80.0. 9.8(c)(d) Thecompensationremedial revenue pupil units for a 9.9 building equals the product of: 9.10 (1) the sum of the number of pupils enrolled in the 9.11 building eligible to receive free lunch and one-half of the 9.12 pupils eligible to receive reduced priced lunch on October 1 of 9.13 the previous fiscal year; times 9.14 (2) thecompensationremedial revenue pupil weighting 9.15 factor for the building; times 9.16 (3) .60. 9.17(d)(e) Notwithstanding paragraphs(a)(b) to(c)(d), 9.18 for charter schools and contracted alternative programs in the 9.19 first year of operation,compensationremedial revenue pupil 9.20 units shall be computed using data for the current fiscal year. 9.21 If the charter school or contracted alternative program begins 9.22 operation after October 1,compensatoryremedial revenue pupil 9.23 units shall be computed based on pupils enrolled on an alternate 9.24 date determined by the commissioner, and thecompensation9.25 remedial revenue pupil units shall be prorated based on the 9.26 ratio of the number of days of student instruction to 170 days. 9.27(e)(f) The percentages in this subdivision must be based 9.28 on the count of individual pupils and not on a building average 9.29 or minimum. 9.30 (g) For fiscal years 2004 and later, statewide total 9.31 remedial revenue equals the amount of remedial revenue for 9.32 fiscal year 2003. This amount is included in general education 9.33 revenue. 9.34 Sec. 10. Minnesota Statutes 2000, section 126C.05, 9.35 subdivision 5, is amended to read: 9.36 Subd. 5. [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 10.1 for a district or charter school means the sum of: 10.2 (1) the number of pupil units served, according to 10.3 subdivision 7, plus 10.4 (2) pupil units according to subdivision 1 for whom the 10.5 district or charter school pays tuition under section 123A.18, 10.6 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 10.7 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 10.8 125A.65, minus 10.9 (3) pupil units according to subdivision 1 for whom the 10.10 district or charter school receives tuition under section 10.11 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 10.12 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 10.13 125A.65. 10.14 (b) Adjusted marginal cost pupil units means the greater of: 10.15 (1) the sum of.77.50 times the pupil units defined in 10.16 paragraph (a) for the current school year and.23.50 times the 10.17 pupil units defined in paragraph (a) for the previous school 10.18 year; or 10.19 (2) the number of adjusted pupil units defined in paragraph 10.20 (a) for the current school year. 10.21 [EFFECTIVE DATE.] This section is effective for revenue for 10.22 fiscal years 2002 and later. 10.23 Sec. 11. Minnesota Statutes 2000, section 126C.05, 10.24 subdivision 6, is amended to read: 10.25 Subd. 6. [RESIDENT PUPIL UNITS.] (a) Resident pupil units 10.26 for a district means the number of pupil units according to 10.27 subdivision 1 residing in the district. 10.28 (b) Resident marginal cost pupil units means the greater of: 10.29 (1) the sum of.77.50 times the pupil units defined in 10.30 paragraph (a) for the current year and.23.50 times the pupil 10.31 units defined in paragraph (a) for the previous school year; or 10.32 (2) the number of resident pupil units defined in paragraph 10.33 (a) for the current school year. 10.34 [EFFECTIVE DATE.] This section is effective for revenue for 10.35 fiscal years 2002 and later. 10.36 Sec. 12. Minnesota Statutes 2000, section 126C.10, 11.1 subdivision 1, is amended to read: 11.2 Subdivision 1. [GENERAL EDUCATION REVENUE.] For fiscal 11.3 year20002002 and thereafter, the general education revenue for 11.4 each district equals the sum of the district's basic revenue, 11.5 basic skills revenue, training and experience revenue, secondary 11.6 sparsity revenue, elementary sparsity revenue, transportation 11.7 sparsity revenue, total operating capital revenue, equity 11.8 revenue,referendum offset adjustment,transition revenue, and 11.9 supplemental revenue. 11.10 [EFFECTIVE DATE.] This section is effective for revenue for 11.11 fiscal year 2002. 11.12 Sec. 13. Minnesota Statutes 2000, section 126C.10, 11.13 subdivision 2, is amended to read: 11.14 Subd. 2. [BASIC REVENUE.] The basic revenue for each 11.15 district equals the formula allowance times the adjusted 11.16 marginal cost pupil units for the school year.The formula11.17allowance for fiscal year 1998 is $3,581. The formula allowance11.18for fiscal year 1999 is $3,530. The formula allowance for11.19fiscal year 2000 is $3,740.The formula allowance for fiscal 11.20 year 2001and subsequent fiscal yearsis $3,964. The formula 11.21 allowance for fiscal year 2002 is $4,050. The formula allowance 11.22 for fiscal year 2003 and later is $4,175. 11.23 Sec. 14. Minnesota Statutes 2000, section 126C.10, 11.24 subdivision 3, is amended to read: 11.25 Subd. 3. [COMPENSATORYREMEDIAL EDUCATION REVENUE.] For 11.26 fiscal year 2002 and later, thecompensatoryremedial education 11.27 revenue for each building in the district equals the formula 11.28 allowance for fiscal year 2001 times thecompensationremedial 11.29 revenue pupil units computed according to section 126C.05, 11.30 subdivision 3. Revenue shall be paid to the district and must 11.31 be allocated according to section 126C.15, subdivision 2. 11.32 Sec. 15. Minnesota Statutes 2000, section 126C.10, 11.33 subdivision 9, is amended to read: 11.34 Subd. 9. [SUPPLEMENTAL REVENUE.] (a) A district's 11.35 supplemental revenue allowance for fiscal year19942002 and 11.36 later fiscal years equals the district's supplemental 12.1 revenue allowance for fiscal year1993 divided by the district's12.21992-1993 resident pupil units2001. 12.3 (b)A district's supplemental revenue allowance is reduced12.4for fiscal year 1995 and later according to subdivision 12.12.5(c)A district's supplemental revenue equals the 12.6 supplemental revenue allowance, if any, times its adjusted 12.7 marginal cost pupil units for that year. 12.8(d) A district may cancel its supplemental revenue by12.9notifying the commissioner of education prior to June 30, 1994.12.10A district that is reorganizing under section 123A.35, 123A.46,12.11or 123A.48 may cancel its supplemental revenue by notifying the12.12commissioner of children, families, and learning before July 112.13of the year of the reorganization. If a district cancels its12.14supplemental revenue according to this paragraph, its12.15supplemental revenue allowance for fiscal year 1993 for purposes12.16of subdivision 12 and section 124A.03, subdivision 3b, equals12.17zero.12.18 [EFFECTIVE DATE.] This section is effective for revenue for 12.19 fiscal year 2002. 12.20 Sec. 16. Minnesota Statutes 2000, section 126C.10, 12.21 subdivision 20, is amended to read: 12.22 Subd. 20. [TRANSITION REVENUEADJUSTMENT.] A district's 12.23 transition revenueadjustmentequals the district's transition 12.24 allowance times the adjusted marginal cost pupil units for the 12.25 school year. 12.26 Sec. 17. Minnesota Statutes 2000, section 126C.10, 12.27 subdivision 21, is amended to read: 12.28 Subd. 21. [TRANSITION LEVYADJUSTMENT.] A district's 12.29general education levy shall be adjusted by an amount equal to12.30 transition levy for fiscal year 2003 and later equals the 12.31 district's transition revenue times the lesser of 1 or the ratio 12.32 of its adjusted net tax capacity per adjusted marginal cost 12.33 pupil unit to $8,404. 12.34 Sec. 18. Minnesota Statutes 2000, section 126C.10, 12.35 subdivision 22, is amended to read: 12.36 Subd. 22. [TRANSITION AIDADJUSTMENT.] A district's 13.1 transition aidadjustmentis the difference between the 13.2 transition revenue and the transition levy. 13.3 Sec. 19. Minnesota Statutes 2000, section 126C.10, 13.4 subdivision 24, is amended to read: 13.5 Subd. 24. [EQUITY REVENUE.] (a) A school district 13.6 qualifies for equity revenue if: 13.7 (1) the school district's adjusted marginal cost pupil unit 13.8 amount of basic revenue, supplemental revenue, transition 13.9 revenue, and referendum revenue is less than the value of the 13.10 school district at or immediately above the90th95th percentile 13.11 of school districtsin its equity regionfor those revenue 13.12 categories; and 13.13 (2) the school district's administrative offices are not 13.14 located in a city of the first class on July 1, 1999. 13.15 (b) Equity revenue for a qualifying districtthat receives13.16referendum revenue under section 126C.17, subdivision 4,equals 13.17 the product of (1) the district's adjusted marginal cost pupil 13.18 units for that year; times (2) the sum of (i)$10$8, plus (ii) 13.19$30$64, times the school district's equity index computed under 13.20 subdivision 27; times (3) the school district's small school 13.21 index number under subdivision 29. 13.22 (c) Equity revenuefor a qualifying district that does not13.23receive referendum revenue under section 126C.17, subdivision 4,13.24equals the product of the district's adjusted marginal cost13.25pupil units for that year times $10must not exceed $150 times 13.26 the adjusted marginal cost pupil units for that year. 13.27 [EFFECTIVE DATE.] This section is effective for revenue for 13.28 fiscal year 2002 and later. 13.29 Sec. 20. Minnesota Statutes 2000, section 126C.10, 13.30 subdivision 25, is amended to read: 13.31 Subd. 25. [REGIONALSTATEWIDE EQUITY GAP.] Theregional13.32 statewide equity gap equals the difference between the value of 13.33 the school district at or immediately above the fifth percentile 13.34 of adjusted general revenue per adjusted marginal cost pupil 13.35 unit and the value of the school district at or immediately 13.36 above the90th95th percentile of adjusted general revenue per 14.1 adjusted marginal cost pupil unit. 14.2 [EFFECTIVE DATE.] This section is effective for revenue for 14.3 fiscal year 2002 and later. 14.4 Sec. 21. Minnesota Statutes 2000, section 126C.10, 14.5 subdivision 27, is amended to read: 14.6 Subd. 27. [DISTRICT EQUITY INDEX.] A district's equity 14.7 index equals the ratio of the sum of the district equity gap 14.8 amount to theregionalstatewide equity gap amount. 14.9 [EFFECTIVE DATE.] This section is effective for revenue for 14.10 fiscal year 2002 and later. 14.11 Sec. 22. Minnesota Statutes 2000, section 126C.10, is 14.12 amended by adding a subdivision to read: 14.13 Subd. 29. [SMALL SCHOOL INDEX.] The small school index for 14.14 a district with 1,500 or fewer adjusted marginal cost pupil 14.15 units for that school year equals one plus the product of two 14.16 and the ratio of 200 to the district's adjusted marginal cost 14.17 pupil units for that year. The small school index for a 14.18 district with more than 1,500 adjusted marginal cost pupil units 14.19 for that year equals 1.0. 14.20 [EFFECTIVE DATE.] This section is effective for revenue for 14.21 fiscal year 2002 and later. 14.22 Sec. 23. Minnesota Statutes 2000, section 126C.12, 14.23 subdivision 2, is amended to read: 14.24 Subd. 2. [INSTRUCTOR DEFINEDDEFINITIONS.]Primary14.25instructor(a) "Classroom teacher" means a public employee 14.26 licensed by the board of teaching who is authorized to teach all 14.27 subjects to children in any grade in kindergarten through grade 14.28 6 and whose duties are full-time regular classroom instruction, 14.29 excluding a teacher for whom federal aids are received or for 14.30 whom categorical aids are receivedpursuant tounder section 14.31 125A.76 or who is an itinerant teacher or provides instruction 14.32 outside of the regular classroom. Except as provided in section 14.33 122A.68, subdivision 6,instructorclassroom teacher does not 14.34 include supervisory and support personnel, except school social14.35workers asdefined in section 122A.15.An instructorA 14.36 classroom teacher whose duties are less than full-time 15.1 instruction must be included as an equivalent only for the 15.2 number of hours of instruction ingradeskindergarten through615.3 grade 3. 15.4 (b) "Class size" means the districtwide ratio at each grade 15.5 level of the number of full-time students in kindergarten 15.6 through grade 3 served at least 40 percent of the time in 15.7 regular classrooms to the number of full-time classroom teachers 15.8 in kindergarten through grade 3, determined as of October 1 of 15.9 each school year. 15.10 Sec. 24. Minnesota Statutes 2000, section 126C.12, 15.11 subdivision 3, is amended to read: 15.12 Subd. 3. [INSTRUCTION CONTACT TIME.] Instruction may be 15.13 provided by aprimary instructor,classroom teacher or by a team 15.14 ofinstructorsclassroom teachers, or by a teacher resident 15.15 supervised by aprimary instructorclassroom teacher. The 15.16 district must maximizeinstructorclassroom teacher to learner 15.17 average instructional contact time in the core subjects of 15.18 reading and mathematics. 15.19 Sec. 25. Minnesota Statutes 2000, section 126C.12, 15.20 subdivision 4, is amended to read: 15.21 Subd. 4. [REVENUE USE.] (a)Revenue must be used according15.22to either paragraph (b) or (c).15.23(b)Revenue must be used to reduce and maintain the 15.24 district'sinstructor to learner ratiosaverage class size in 15.25 kindergarten through grade63 to a level of117 to171 on 15.26 average in each of the respective grades.The district must15.27prioritize the use of the revenue to attain this level initially15.28in kindergarten and grade 1 and then through the subsequent15.29grades as revenue is available.15.30(c) The revenue may be used to prepare and use an15.31individualized learning plan for each learner.(b) A district 15.32 must not increase thedistrict wide instructor-to-learner ratios15.33 districtwide class sizes in other grades as a result of reducing 15.34instructor-to-learner ratiosclass sizes in kindergarten through 15.35 grade63. Revenue may not be used to provide instructor 15.36 preparationtime. A district may use a portion of the revenue 16.1 reserved under this section to employ up to the same number of 16.2 full-time equivalent education assistants or aides as the 16.3 district employed during the 1992-1993 school year under 16.4 Minnesota Statutes 1992, section 124.331, subdivision 2 through 16.5 fiscal year 2002. Beginning in fiscal year 2003, class size 16.6 reduction revenue may only be reserved to employ classroom 16.7 teachers contributing to lower class sizes in kindergarten 16.8 through grade 3. 16.9 Sec. 26. Minnesota Statutes 2000, section 126C.12, 16.10 subdivision 5, is amended to read: 16.11 Subd. 5. [ADDITIONAL REVENUE USE.] If the board of a 16.12 district determines that the district has achieved and is 16.13 maintaining theinstructor-to-learner ratiosclass sizes 16.14 specified in subdivision 4and is using individualized learning16.15plans, the board may use the revenue to: 16.16 (1) reduce class size in grades 4, 5, and 6; or 16.17 (2) purchase instructional materialand, services, or 16.18provide staff development needed for reduced16.19instructor-to-learner ratios. If additional revenue remains,16.20the district must use the revenue to improve program offerings,16.21including programs provided through interactive television,16.22throughout the district or other general education16.23purposestechnology. 16.24 Sec. 27. Minnesota Statutes 2000, section 126C.12, is 16.25 amended by adding a subdivision to read: 16.26 Subd. 6. [ANNUAL REPORT.] By December 1 of each year, 16.27 districts receiving revenue under subdivision 1 shall make 16.28 available to the public a report on the amount of revenue the 16.29 district has received and the use of the revenue. This report 16.30 shall be in the form and manner determined by the commissioner 16.31 and shall include the district average class sizes in 16.32 kindergarten through grade 6 as of October 1 of the current 16.33 school year and the class sizes for each site serving 16.34 kindergarten through grade 6 students in the district. A copy 16.35 of the report shall be filed with the commissioner by December 16.36 15. 17.1 Sec. 28. Minnesota Statutes 2000, section 126C.13, 17.2 subdivision 1, is amended to read: 17.3 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 17.4 commissioner must establish the general education tax rate by 17.5 July 1 of each year for levies payable in the following year. 17.6 The general education tax capacity rate must be a rate, rounded 17.7 up to the nearest hundredth of a percent, that, when applied to 17.8 the adjusted net tax capacity for all districts, raises the 17.9 amount specified in this subdivision. The general education tax 17.10 rate must be the rate that raises$1,330,000,000$1,361,000,000 17.11 for fiscal year 2001, and later fiscal years. The general 17.12 education tax rate may not be changed due to changes or 17.13 corrections made to a district's adjusted net tax capacity after 17.14 the tax rate has been established. 17.15 Sec. 29. Minnesota Statutes 2000, section 126C.15, 17.16 subdivision 1, is amended to read: 17.17 Subdivision 1. [USE OF THE REVENUE.] The basic skills 17.18 revenue under section 126C.10, subdivision 4, and the portion of 17.19 the transition revenue adjustment under section 126C.10, 17.20 subdivision 20, attributable to the compensatory transition 17.21 allowance under section 126C.10, subdivision 19, paragraph (b), 17.22 must be reserved and used to meet the educational needs of 17.23 pupils who enroll under-prepared to learn and whose progress 17.24 toward meeting state or local content or performance standards 17.25 is below the level that is appropriate for learners of their 17.26 age. Any of the following may be provided to meet these 17.27 learners' needs: 17.28 (1) direct instructional services under the assurance of 17.29 mastery program according to section 124D.66; 17.30 (2) remedial instruction in reading, language arts, 17.31 mathematics, other content areas, or study skills to improve the 17.32 achievement level of these learners; 17.33 (3) additional teachers and teacher aides to provide more 17.34 individualized instruction to these learners through individual 17.35 tutoring, lower instructor-to-learner ratios, or team teaching; 17.36 (4) a longer school day or week during the regular school 18.1 year or through a summer program that may be offered directly by 18.2 the site or under a performance-based contract with a 18.3 community-based organization; 18.4 (5) comprehensive and ongoing staff development consistent 18.5 with district and site plans according to section 122A.60, for 18.6 teachers, teacher aides, principals, and other personnel to 18.7 improve their ability to identify the needs of these learners 18.8 and provide appropriate remediation, intervention, 18.9 accommodations, or modifications; 18.10 (6) instructional materials and technology appropriate for 18.11 meeting the individual needs of these learners; 18.12 (7) programs to reduce truancy, encourage completion of 18.13 high school, enhance self-concept, provide health services, 18.14 provide nutrition services, provide a safe and secure learning 18.15 environment, provide coordination for pupils receiving services 18.16 from other governmental agencies, provide psychological services 18.17 to determine the level of social, emotional, cognitive, and 18.18 intellectual development, and provide counseling services, 18.19 guidance services, and social work services; 18.20 (8) bilingual programs, bicultural programs, and programs 18.21 for learners of limited English proficiency; 18.22 (9) all day kindergarten; 18.23 (10) extended school day and extended school year programs; 18.24 and 18.25 (11) substantial parent involvement in developing and 18.26 implementing remedial education or intervention plans for a 18.27 learner, including learning contracts between the school, the 18.28 learner, and the parent that establish achievement goals and 18.29 responsibilities of the learner and the learner's parent or 18.30 guardian; and18.31(12) other methods to increase achievement, as needed. 18.32 Sec. 30. Minnesota Statutes 2000, section 126C.15, 18.33 subdivision 2, is amended to read: 18.34 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 18.35 allocate its compensatory revenue to each school building in the 18.36 district where the children who have generated the revenue are 19.1 served. 19.2 (b) Notwithstanding paragraph (a),for fiscal years 1999,19.32000, and 2001, upon approval by the commissioner,a district 19.4 may allocate up to five percent of the amount of compensatory 19.5 revenue that the districtwould havereceivedunder Minnesota19.6Statutes 1996, section 124A.22, subdivision 3, for fiscal year19.71998, computed using a basic formula allowance of $3,581during 19.8 the previous fiscal year to school sites according to a plan 19.9 adopted by the school board. 19.10 (c) For the purposes of this section and section 126C.05, 19.11 subdivision 3, "building" means education site as defined in 19.12 section 123B.04, subdivision 1. 19.13 (d) If the pupil is served at a site other than one owned 19.14 and operated by the district, the revenue shall be paid to the 19.15 district and used for services for pupils who generate the 19.16 revenue. 19.17 Sec. 31. Minnesota Statutes 2000, section 126C.15, 19.18 subdivision 5, is amended to read: 19.19 Subd. 5. [ANNUAL EXPENDITURE REPORT.] Each year a district 19.20 that receives basic skills revenue must submit a report 19.21 identifying the expenditures it incurred to meet the needs of 19.22 eligible learners under subdivision 1. The report must conform 19.23 to uniform financial and reporting standards established for 19.24 this purpose. Using valid and reliable data and measurement 19.25 criteria, the report also must determine whether increased 19.26 expenditures raised student achievement levels. 19.27 Sec. 32. Minnesota Statutes 2000, section 126C.16, is 19.28 amended by adding a subdivision to read: 19.29 Subd. 4. [REFERENDUM ALLOWANCE ADJUSTMENT.] Beginning in 19.30 fiscal year 2003, the referendum allowance determined for a 19.31 district under subdivision 3 is increased by an amount equal to 19.32 the reduction in the district's referendum allowance for fiscal 19.33 year 2001 under section 126C.17, subdivision 2. The increased 19.34 allowance, as adjusted according to section 126C.17, subdivision 19.35 2, shall be used in computing a district's referendum revenue 19.36 for all later years for which the revenue is authorized. 20.1 Sec. 33. Minnesota Statutes 2000, section 126C.17, 20.2 subdivision 1, is amended to read: 20.3 Subdivision 1. [REFERENDUM ALLOWANCE.] A district's 20.4 referendum revenue allowance equals thereferendum revenue20.5authority for that year divided by its resident marginal cost20.6pupil units for that school yearsum of the allowance under 20.7 section 126C.16, subdivision 2, plus any additional allowance 20.8 per resident marginal cost pupil unit authorized under 20.9 subdivision 9 for fiscal year 2002 and later. 20.10 [EFFECTIVE DATE.] This section is effective for revenue for 20.11 fiscal year 2002. 20.12 Sec. 34. Minnesota Statutes 2000, section 126C.17, 20.13 subdivision 2, is amended to read: 20.14 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 20.15 subdivision 1, a district's referendum allowance must not exceed 20.16 the greater of: 20.17 (1) the district's referendum allowance for fiscal year 20.18 1994 multiplied by the inflation factor established in paragraph 20.19 (b); 20.20 (2)2535 percent of the formula allowance; or 20.21 (3) for a newly reorganized district created after July 1, 20.22 1994, the sum of the referendum revenue authority for the 20.23 reorganizing districts for the fiscal year preceding the 20.24 reorganization, divided by the sum of the resident marginal cost 20.25 pupil units of the reorganizing districts for the fiscal year 20.26 preceding the reorganization. 20.27 (b) The operating referendum inflation factor equals the 20.28 ratio of the consumer price index for urban consumers as 20.29 prepared by the United States Department of Labor, for the most 20.30 recently available year to the Consumer Price Index for urban 20.31 consumers for 1994. 20.32 Sec. 35. Minnesota Statutes 2000, section 126C.17, 20.33 subdivision 5, is amended to read: 20.34 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) A 20.35 district's referendum equalization revenue equals the referendum 20.36 equalization allowance times the district's resident marginal 21.1 cost pupil units for that year. 21.2 (b) The referendum equalization allowance equals$350 for21.3fiscal year 2000 and$415 for fiscalyearyears 2001 and 2002, 21.4 $515 for fiscal year 2003, and $615 for fiscal year 2004 and 21.5 later. 21.6 (c) Referendum equalization revenue must not exceed a 21.7 district's total referendum revenue for that year. 21.8 [EFFECTIVE DATE.] This section is effective for revenue for 21.9 fiscal year 2003 and later. 21.10 Sec. 36. Minnesota Statutes 2000, section 126C.17, 21.11 subdivision 6, is amended to read: 21.12 Subd. 6. [REFERENDUM EQUALIZATION LEVY.](a)A district's 21.13 referendum equalization levyfor a referendum levied against the21.14referendum market value of all taxable property as defined in21.15section 126C.01, subdivision 3,equals the district's referendum 21.16 equalization revenue times the lesser of one or the ratio of the 21.17 district's referendum market value per resident marginal cost 21.18 pupil unit to $476,000. 21.19(b) A district's referendum equalization levy for a21.20referendum levied against the net tax capacity of all taxable21.21property equals the district's referendum equalization revenue21.22times the lesser of one or the ratio of the district's adjusted21.23net tax capacity per resident marginal cost pupil unit to $8,404.21.24 [EFFECTIVE DATE.] This section is effective for revenue for 21.25 fiscal year 2002. 21.26 Sec. 37. Minnesota Statutes 2000, section 126C.17, 21.27 subdivision 9, is amended to read: 21.28 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 21.29 by section 126C.10, subdivision 1, may be increased in the 21.30 amount approved by the voters of the district at a referendum 21.31 called for the purpose. The referendum may be called by the 21.32 board or shall be called by the board upon written petition of 21.33 qualified voters of the district. The referendum must be 21.34 conducted one or two calendar years before the increased levy 21.35 authority, if approved, first becomes payable. Only one 21.36 election to approve an increase may be held in a calendar year. 22.1 Unless the referendum is conducted by mail under paragraph (g), 22.2 the referendum must be held on the first Tuesday after the first 22.3 Monday in November. The ballot must state the maximum amount of 22.4 the increased revenue per resident marginal cost pupil unit, the 22.5 estimated referendum tax rate as a percentage of referendum 22.6 market value in the first year it is to be levied, and that the 22.7 revenue must be used to finance school operations. The ballot 22.8 may state a schedule, determined by the board, of increased 22.9 revenue per resident marginal cost pupil unit that differs from 22.10 year to year over the number of years for which the increased 22.11 revenue is authorized. If the ballot contains a schedule 22.12 showing different amounts, it must also indicate the estimated 22.13 referendum tax rate as a percent of referendum market value for 22.14 the amount specified for the first year and for the maximum 22.15 amount specified in the schedule. The ballot may state that 22.16 existing referendum levy authority is expiring. In this case, 22.17 the ballot may also compare the proposed levy authority to the 22.18 existing expiring levy authority, and express the proposed 22.19 increase as the amount, if any, over the expiring referendum 22.20 levy authority. The ballot must designate the specific number 22.21 of years, not to exceed ten, for which the referendum 22.22 authorization applies. The notice required under section 275.60 22.23 may be modified to read, in cases of renewing existing levies: 22.24 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 22.25 FOR A PROPERTY TAX INCREASE." 22.26 The ballot may contain a textual portion with the 22.27 information required in this subdivision and a question stating 22.28 substantially the following: 22.29 "Shall the increase in the revenue proposed by (petition 22.30 to) the board of ........., School District No. .., be approved?" 22.31 If approved, an amount equal to the approved revenue per 22.32 resident marginal cost pupil unit times the resident marginal 22.33 cost pupil units for the school year beginning in the year after 22.34 the levy is certified shall be authorized for certification for 22.35 the number of years approved, if applicable, or until revoked or 22.36 reduced by the voters of the district at a subsequent referendum. 23.1 (b) The board must prepare and deliver by first class mail 23.2 at least 15 days but no more than 30 days before the day of the 23.3 referendum to each taxpayer a notice of the referendum and the 23.4 proposed revenue increase. The board need not mail more than 23.5 one notice to any taxpayer. For the purpose of giving mailed 23.6 notice under this subdivision, owners must be those shown to be 23.7 owners on the records of the county auditor or, in any county 23.8 where tax statements are mailed by the county treasurer, on the 23.9 records of the county treasurer. Every property owner whose 23.10 name does not appear on the records of the county auditor or the 23.11 county treasurer is deemed to have waived this mailed notice 23.12 unless the owner has requested in writing that the county 23.13 auditor or county treasurer, as the case may be, include the 23.14 name on the records for this purpose. The notice must project 23.15 the anticipated amount of tax increase in annual dollars and 23.16 annual percentage for typical residential homesteads, 23.17 agricultural homesteads, apartments, and commercial-industrial 23.18 property within the school district. 23.19 The notice for a referendum may state that an existing 23.20 referendum levy is expiring and project the anticipated amount 23.21 of increase over the existing referendum levy in the first year, 23.22 if any, in annual dollars and annual percentage for typical 23.23 residential homesteads, agricultural homesteads, apartments, and 23.24 commercial-industrial property within the district. 23.25 The notice must include the following statement: "Passage 23.26 of this referendum will result in an increase in your property 23.27 taxes." However, in cases of renewing existing levies, the 23.28 notice may include the following statement: "Passage of this 23.29 referendum may result in an increase in your property taxes." 23.30 (c) A referendum on the question of revoking or reducing 23.31 the increased revenue amount authorized pursuant to paragraph 23.32 (a) may be called by the board and shall be called by the board 23.33 upon the written petition of qualified voters of the district. 23.34 A referendum to revoke or reduce the levy amount must be based 23.35 upon the dollar amount, local tax rate, or amount per resident 23.36 marginal cost pupil unit, that was stated to be the basis for 24.1 the initial authorization. Revenue approved by the voters of 24.2 the district pursuant to paragraph (a) must be received at least 24.3 once before it is subject to a referendum on its revocation or 24.4 reduction for subsequent years. Only one revocation or 24.5 reduction referendum may be held to revoke or reduce referendum 24.6 revenue for any specific year and for years thereafter. 24.7 (d) A petition authorized by paragraph (a) or (c) is 24.8 effective if signed by a number of qualified voters in excess of 24.9 15 percent of the registered voters of the district on the day 24.10 the petition is filed with the board. A referendum invoked by 24.11 petition must be held on the date specified in paragraph (a). 24.12 (e) The approval of 50 percent plus one of those voting on 24.13 the question is required to pass a referendum authorized by this 24.14 subdivision. 24.15 (f) At least 15 days before the day of the referendum, the 24.16 district must submit a copy of the notice required under 24.17 paragraph (b) to the commissioner and to the county auditor of 24.18 each county in which the district is located. Within 15 days 24.19 after the results of the referendum have been certified by the 24.20 board, or in the case of a recount, the certification of the 24.21 results of the recount by the canvassing board, the district 24.22 must notify the commissioner of the results of the referendum. 24.23(g) Except for a referendum held under subdivision 11, any24.24referendum under this section held on a day other than the first24.25Tuesday after the first Monday in November must be conducted by24.26mail in accordance with section 204B.46. Notwithstanding24.27paragraph (b) to the contrary, in the case of a referendum24.28conducted by mail under this paragraph, the notice required by24.29paragraph (b) must be prepared and delivered by first class mail24.30at least 20 days before the referendum.24.31 Sec. 38. Minnesota Statutes 2000, section 126C.17, 24.32 subdivision 10, is amended to read: 24.33 Subd. 10. [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 24.34Notwithstanding the provisions of subdivision 9,A school 24.35 referendum levyapproved after November 1, 1992, for taxes24.36payable in 1993 and thereafter,must be levied against the 25.1 referendum market value of all taxable property as defined in 25.2 section 126C.01, subdivision 3. Any referendum levy amount 25.3 subject to the requirements of this subdivision must be 25.4 certified separately to the county auditor under section 275.07. 25.5All other provisions of subdivision 9 that do not conflict25.6with this subdivision apply to referendum levies under this25.7subdivision.25.8 [EFFECTIVE DATE.] This section is effective for revenue for 25.9 fiscal year 2002. 25.10 Sec. 39. Minnesota Statutes 2000, section 126C.17, 25.11 subdivision 11, is amended to read: 25.12 Subd. 11. [REFERENDUM DATE.] (a) Except for a referendum 25.13 held under paragraph (b), any referendum under this section held 25.14 on a day other than the first Tuesday after the first Monday in 25.15 November must be conducted by mail in accordance with section 25.16 204B.46. Notwithstanding subdivision 9, paragraph (b), to the 25.17 contrary, in the case of a referendum conducted by mail under 25.18 this paragraph, the notice required by subdivision 9, paragraph 25.19 (b), must be prepared and delivered by first-class mail at least 25.20 20 days before the referendum. 25.21 (b) In addition to the referenda allowed in subdivision 9, 25.22 clause (a), the commissioner mayauthorize a referendum for a25.23different day.25.24(a) The commissioner maygrant authority to a district to 25.25 hold a referendum on a different day if the district is in 25.26 statutory operating debt and has an approved plan or has 25.27 received an extension from the department to file a plan to 25.28 eliminate the statutory operating debt. 25.29(b) The commissioner may grant authority for a district to25.30hold a referendum on a different day if: (1) the district will25.31conduct a bond election under chapter 475 on that same day; and25.32(2) the proceeds of the referendum will provide only additional25.33operating revenue complementing the purpose for which bonding25.34authority is sought. The commissioner may only grant authority25.35under this paragraph if the district demonstrates to the25.36commissioner's satisfaction that the district's ability to26.1operate the new facility or achieve efficiencies with the26.2purchases connected to the proceeds of the bond sale will be26.3significantly affected if the operating referendum is not26.4conducted until the November general election. Authority under26.5this paragraph expires November 30, 1998.26.6 (c) The commissioner must approve, deny, or modify each 26.7 district's request for a referendum levy on a different day 26.8 within 60 days of receiving the request from a district. 26.9 Sec. 40. Minnesota Statutes 2000, section 126C.23, 26.10 subdivision 5, is amended to read: 26.11 Subd. 5. [DATA REPORTING.] Each district must report to 26.12 the commissionerthe estimated amount of general education and26.13referendum initially allocated to each building under26.14subdivision 2 and the amount of any reallocations under26.15subdivision 3 by January 30 of the current fiscal year, andthe 26.16 actual amount of general education and referendum revenue 26.17 initially allocated to each building under subdivision 2 and the 26.18 amount of any reallocations under subdivision 3 by January 30 of 26.19 the next fiscal year. 26.20 Sec. 41. Minnesota Statutes 2000, section 126C.41, 26.21 subdivision 3, is amended to read: 26.22 Subd. 3. [RETIREMENT LEVIES.](1) In addition to the26.23excess levy authorized in 1976 any district within a city of the26.24first class which was authorized in 1975 to make a retirement26.25levy under Minnesota Statutes 1974, section 275.127 and chapter26.26422A may levy an amount per pupil unit which is equal to the26.27amount levied in 1975 payable 1976, under Minnesota Statutes26.281974, section 275.127 and chapter 422A, divided by the number of26.29pupil units in the district in 1976-1977.26.30(2) In 1979 and each year thereafter, any district which26.31qualified in 1976 for an extra levy under paragraph (1) shall be26.32allowed to levy the same amount as levied for retirement in 197826.33under this clause reduced each year by ten percent of the26.34difference between the amount levied for retirement in 197126.35under Minnesota Statutes 1971, sections 275.127 and 422.01 to26.36422.54 and the amount levied for retirement in 1975 under27.1Minnesota Statutes 1974, section 275.127 and chapter 422A.27.2(3)(a) In 1991 and each year thereafter, a district to 27.3 which this subdivision applies may levy an additional amount 27.4 required for contributions to the Minneapolis employees 27.5 retirement fund as a result of the maximum dollar amount 27.6 limitation on state contributions to the fund imposed under 27.7 section 422A.101, subdivision 3. The additional levy must not 27.8 exceed the most recent amount certified by the board of the 27.9 Minneapolis employees retirement fund as the district's share of 27.10 the contribution requirement in excess of the maximum state 27.11 contribution under section 422A.101, subdivision 3. 27.12(4)(b) For taxes payable in 1994 and thereafter, special 27.13 school district No. 1, Minneapolis, and independent school 27.14 district No. 625, St. Paul, may levy for the increase in the 27.15 employer retirement fund contributions, under Laws 1992, chapter 27.16 598, article 5, section 1. 27.17(5)(c) If the employer retirement fund contributions under 27.18 section 354A.12, subdivision 2a, are increased for fiscal year 27.19 1994 or later fiscal years, special school district No. 1, 27.20 Minneapolis, and independent school district No. 625, St. Paul, 27.21 may levy in payable 1994 or later an amount equal to the amount 27.22 derived by applying the net increase in the employer retirement 27.23 fund contribution rate of the respective teacher retirement fund 27.24 association between fiscal year 1993 and the fiscal year 27.25 beginning in the year after the levy is certified to the total 27.26 covered payroll of the applicable teacher retirement fund 27.27 association. If an applicable school district levies under this 27.28 paragraph, they may not levy under paragraph(4)(b). 27.29(6)(d) In addition to the levy authorized under paragraph 27.30(5)(c), special school district No. 1, Minneapolis, may also 27.31 levy payable in 1997 or later an amount equal to the 27.32 contributions under section 423A.02, subdivision 3, and may also 27.33 levy in payable 1994 or later an amount equal to the state aid 27.34 contribution under section 354A.12, subdivision 3b. Independent 27.35 school district No. 625, St. Paul, may levy payable in 1997 or 27.36 later an amount equal to the supplemental contributions under 28.1 section 423A.02, subdivision 3. 28.2 Sec. 42. Minnesota Statutes 2000, section 126C.43, 28.3 subdivision 3, is amended to read: 28.4 Subd. 3. [TAX LEVY FORUNPAIDJUDGMENT.] A school district 28.5 may levy the amounts necessary to paythe district's obligations28.6 judgments against the school district and, if the school 28.7 district is a member of an intermediate school district, the 28.8 district's proportionate share of the judgments against the 28.9 intermediate school district, under section126C.47123B.25 that 28.10 became final after the date the district certified its proposed 28.11 levy in the previous year. With the approval of the 28.12 commissioner, a district may spread this levy over a period not 28.13 to exceed three years. 28.14 Sec. 43. Minnesota Statutes 2000, section 127A.41, 28.15 subdivision 5, is amended to read: 28.16 Subd. 5. [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 28.17 DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] Public schools shall 28.18 at all times be open to the inspection of the commissioner. The 28.19 accounts and records of any district must be open to inspection 28.20 by the state auditor, or the commissioner for the purpose of 28.21 audits conducted under this section. Each district shall keep 28.22 for a minimum of three years at least the following: (1) 28.23 identification of the annual session days held, together with a 28.24 record of the length of each session day, (2) a record of each 28.25 pupil's daily attendance, with entrance and withdrawal dates, 28.26 and (3) identification of thepupils transported who are28.27reported for transportation aidto-and-from school 28.28 transportation category for each pupil as defined in section 28.29 123B.92, subdivision 1. 28.30 Sec. 44. Minnesota Statutes 2000, section 127A.50, 28.31 subdivision 2, is amended to read: 28.32 Subd. 2. [APPROPRIATIONAND ESTIMATED NET SAVINGS.] The 28.33 amounts necessary to pay any positive net adjustments under this 28.34 section to any school district are appropriated annually from 28.35 the general fund to the commissioner of children, families, and 28.36 learning.The estimated net general fund savings under this29.1section is $29,819,000 in fiscal year 1998, and $26,997,000 in29.2each fiscal year thereafter.29.3 Sec. 45. Laws 1992, chapter 499, article 7, section 31, as 29.4 amended by Laws 1998, chapter 398, article 1, section 39, Laws 29.5 1999, chapter 241, article 1, section 54, and Laws 2000, chapter 29.6 489, article 2, section 28, is amended to read: 29.7 Sec. 31. [REPEALER.] 29.8Minnesota Statutes 1990, sections 124A.02, subdivision 24;29.9124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3;29.10124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota29.11Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and29.1223; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i;29.13124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9;29.14124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision29.151; and 124A.29, subdivision 1, are repealed effective June 30,29.162004;Laws 1991, chapter 265, article 7, section 35, is repealed. 29.17 Sec. 46. Laws 2000, chapter 489, article 2, section 34, is 29.18 amended to read: 29.19 Sec. 34. [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 29.20 (a) For fiscal year 2001 only, a school district's training 29.21 and experience replacement revenue equals the sum of the 29.22 following: 29.23 (1) the ratio of the amount of training and experience 29.24 revenue the district would have received for fiscal year 1999 29.25 calculated using the training and experience index in Minnesota 29.26 Statutes 1996, section 124A.04, to its resident pupil units for 29.27 that year, times the district's adjusted marginal cost pupil 29.28 units for fiscal year 2001, times .06; plus 29.29 (2) the difference between .47 times the training and 29.30 experience revenue the district would have received for fiscal 29.31 year 1999, calculated using the training and experience index in 29.32 Minnesota Statutes 1996, section 124A.04, and the amount 29.33 calculated in Minnesota Statutes, section 126C.10, subdivision 29.34 5, for fiscal year 2001, but not less than zero. 29.35 (b) This revenue is paid entirely in fiscal year 2001 based 29.36 on estimated data. 30.1 (c) By January 31, 2002, the department of children, 30.2 families, and learning shall recalculate the revenue for each 30.3 district using actual data, and shall adjust the general 30.4 education aid paid to school districts for fiscal year 2002 by 30.5 the amount of the difference between the estimated revenue and 30.6 the actual revenue. 30.7 Sec. 47. Laws 2000, chapter 489, article 2, section 36, is 30.8 amended to read: 30.9 Sec. 36. [FISCAL YEARS20032004 TO20072008 AIRPORT 30.10 RUNWAY IMPACT PUPIL UNIT AID; RICHFIELD.] 30.11 Subdivision 1. [AIRPORT IMPACT ZONE PUPIL UNITS, 30.12 DEFINITION.] For the purposes of this section, "airport impact 30.13 zone pupil units" means the number of pupil units, according to 30.14 Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 30.15 1, in school year 1998-1999 that were attributable to the 30.16 airport impact zone, as defined in Laws 1999, chapter 243, 30.17 article 16, section 35, subdivision 1. 30.18 Subd. 2. [FISCAL YEAR20032004.] For fiscal year200330.19 2004 only, independent school district No. 280, Richfield, is 30.20 eligible for declining pupil unit aid equal to the product of 70 30.21 percent of the airport impact zone pupil units times the general 30.22 education formula allowance for fiscal year20032004. 30.23 Subd. 3. [FISCAL YEAR20042005.] For fiscal year200430.24 2005 only, independent school district No. 280, Richfield, is 30.25 eligible for declining pupil unit aid equal to the product of 70 30.26 percent of the airport impact zone pupil units times the general 30.27 education formula allowance for fiscal year20042005. 30.28 Subd. 4. [FISCAL YEAR20052006.] For fiscal year200530.29 2006 only, independent school district No. 280, Richfield, is 30.30 eligible for declining pupil unit aid equal to the product of 30.31 52.5 percent of the airport impact zone pupil units times the 30.32 general education formula allowance for fiscal year20052006. 30.33 Subd. 5. [FISCAL YEAR20062007.] For fiscal year200630.34 2007 only, independent school district No. 280, Richfield, is 30.35 eligible for declining pupil unit aid equal to the product of 35 30.36 percent of the airport impact zone pupil units times the general 31.1 education formula allowance for fiscal year20062007. 31.2 Subd. 6. [FISCAL YEAR20072008.] For fiscal year200731.3 2008 only, independent school district No. 280, Richfield, is 31.4 eligible for declining pupil unit aid equal to the product of 31.5 17.5 percent of the airport impact zone pupil units times the 31.6 general education formula allowance for fiscal year20072008. 31.7 Sec. 48. Laws 2000, chapter 489, article 2, section 37, 31.8 subdivision 3, is amended to read: 31.9 Subd. 3. [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal 31.10 year 2001, a school district's sparsity correction revenue 31.11 equals .5 times the difference between sparsity revenue in 31.12 fiscal year 2001 calculated according to Laws 1999, chapter 241, 31.13 article 1, sections 18 and 19, and the sparsity revenue the 31.14 district would have received for fiscal year 2001 had these 31.15 sections of law not been approved. 31.16 (b) This revenue is paid entirely in fiscal year 2001 based 31.17 on estimated data. 31.18 (c) By January 31, 2002, the department of children, 31.19 families, and learning shall recalculate the revenue for each 31.20 district using actual data, and shall adjust the general 31.21 education aid paid to school districts for fiscal year 2002 by 31.22 the amount of the difference between the estimated revenue and 31.23 the actual revenue. 31.24 Sec. 49. Laws 2000, chapter 489, article 2, section 39, 31.25 subdivision 2, is amended to read: 31.26 Subd. 2. [SPARSITY CORRECTION REVENUE.] For sparsity 31.27 correction revenue: 31.28 $1,030,000 ..... 2000 31.29 $ 515,000 ..... 2001 31.30 The 2000 appropriation is available until June 30, 2001. 31.31 [EFFECTIVE DATE.] This section is effective the day 31.32 following final enactment. 31.33 Sec. 50. Laws 2000, chapter 489, article 3, section 25, 31.34 subdivision 5, is amended to read: 31.35 Subd. 5. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 31.36 special education cross-subsidy revenue: 32.1 $ 7,898,000 ..... 2000 32.2 $18,396,000 ..... 2001 32.3 The 2000 appropriation is available until June 30, 2001. 32.4 [EFFECTIVE DATE.] This section is effective the day 32.5 following final enactment. 32.6 Sec. 51. [LEGISLATIVE TASK FORCE ON REDUCING THE 32.7 COMPLEXITY OF KINDERGARTEN THROUGH GRADE 12 EDUCATION FUNDING 32.8 STATUTES AND RULES.] 32.9 (a) The legislative task force on reducing the complexity 32.10 of kindergarten through grade 12 education funding consists of 32.11 13 members. The speaker of the house of representatives shall 32.12 appoint four members from the house, two of whom must be from 32.13 the minority caucus. The subcommittee on committees of the 32.14 senate committee on rules and administration shall appoint four 32.15 members from the senate, two of whom must be from the minority 32.16 caucus. The task force membership shall also consist of the 32.17 following persons or their designees: 32.18 (1) the commissioner of the department of children, 32.19 families, and learning; 32.20 (2) the executive director of the Minnesota school boards 32.21 association and the executive director of the Minnesota 32.22 association of school administrators; 32.23 (3) the executive director of the Minnesota association of 32.24 school business officials; and 32.25 (4) the parent of a school-age child appointed by the 32.26 governor. 32.27 (b) The task force shall study and make recommendations to 32.28 the legislature by January 15, 2002, on any changes in statutes 32.29 and rules needed to simplify, clarify, and reduce the complexity 32.30 of the kindergarten through grade 12 education funding system. 32.31 The task force shall consider, at least, the following in making 32.32 its recommendations for changes in statutes and rules: 32.33 (1) the extent to which funding system provisions are 32.34 readily readable and understandable; 32.35 (2) the extent to which the funding system can be 32.36 simplified; 33.1 (3) the extent to which regional variations in cost and 33.2 differentials in market-based wages affect school district 33.3 costs; 33.4 (4) how to define compensatory revenue to most effectively 33.5 meet the academic needs of poor performing students; 33.6 (5) the extent to which references to other sections or 33.7 provisions of law or rule are minimized; 33.8 (6) the extent to which definitional provisions are 33.9 incorporated in the text of the statutes or rules; and 33.10 (7) the extent to which the legislative process of funding 33.11 kindergarten through grade 12 education can be improved to 33.12 provide school districts with timely, accurate information 33.13 concerning legislative decisions. 33.14 (c) The task force shall seek the input of various 33.15 kindergarten through grade 12 education stakeholders as well as 33.16 the general public in making its recommendations. The task 33.17 force may call upon the staff of the legislature and the 33.18 department of children, families, and learning to assist with 33.19 its duties. Upon submission of its recommendations, the task 33.20 force expires. 33.21 Sec. 52. [DECLINING PUPIL UNIT AID; YELLOW MEDICINE EAST.] 33.22 Subdivision 1. [FISCAL YEAR 2002.] For fiscal year 2002, 33.23 independent school district No. 2190, Yellow Medicine East, is 33.24 eligible for tornado impact declining enrollment aid equal to 33.25 $156,000. 33.26 Subd. 2. [FISCAL YEAR 2003.] For fiscal year 2003, 33.27 independent school district No. 2190, Yellow Medicine East, is 33.28 eligible for tornado impact declining enrollment aid equal to 75 33.29 percent of the fiscal year 2002 appropriation in subdivision 1. 33.30 Subd. 3. [FISCAL YEAR 2004.] For fiscal year 2004, 33.31 independent school district No. 2190, Yellow Medicine East, is 33.32 eligible for tornado impact declining enrollment aid equal to 50 33.33 percent of the fiscal year 2002 appropriation in subdivision 1. 33.34 Subd. 4. [FISCAL YEAR 2005.] For fiscal year 2005, 33.35 independent school district No. 2190, Yellow Medicine East, is 33.36 eligible for tornado impact declining enrollment aid equal to 25 34.1 percent of the fiscal year 2002 appropriation in subdivision 1. 34.2 Sec. 53. [SUPPLEMENTAL REVENUE; ANOKA.] 34.3 For fiscal year 2002 and later, the supplemental revenue 34.4 for independent school district No. 11, Anoka, is increased by 34.5 $1,000,000. 34.6 Sec. 54. [DIRECTION TO COMMISSIONER.] 34.7 (a) The commissioner of children, families, and learning is 34.8 directed to collect the necessary data from each school district 34.9 to create a cost-based pupil transportation formula based on the 34.10 following ridership categories: 34.11 (1) regular; 34.12 (2) excess; 34.13 (3) disabled; 34.14 (4) nonpublic; 34.15 (5) desegregation; 34.16 (6) noon kindergarten; 34.17 (7) learning year summer; 34.18 (8) between schools; 34.19 (9) late activity; 34.20 (10) summer school; 34.21 (11) open enrollment; 34.22 (12) student activity trips; and 34.23 (13) enrollment options. 34.24 (b) The commissioner must recommend a cost-based pupil 34.25 transportation formula and report to the legislative committees 34.26 responsible for kindergarten through grade 12 education finance 34.27 by February 15, 2002. 34.28 (c) The commissioner is directed to identify for each 34.29 district all transportation revenues. 34.30 Sec. 55. [APPROPRIATIONS.] 34.31 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 34.32 LEARNING.] The sums indicated in this section are appropriated 34.33 from the general fund to the department of children, families, 34.34 and learning for the fiscal years designated. 34.35 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 34.36 general and supplemental education aid: 35.1 $3,369,140,000 ..... 2002 35.2 $3,465,366,000 ..... 2003 35.3 The 2002 appropriation includes $318,932,000 for 2001 and 35.4 $3,050,208,000 for 2002. 35.5 The 2003 appropriation includes $328,926,000 for 2002 and 35.6 $3,136,440,000 for 2003. 35.7 Subd. 3. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 35.8 transportation of pupils attending post-secondary institutions 35.9 according to Minnesota Statutes, section 124D.09, or for 35.10 transportation of pupils attending nonresident districts 35.11 according to Minnesota Statutes, section 124D.03: 35.12 $70,000 ..... 2002 35.13 $80,000 ..... 2003 35.14 Any balance in the first year does not cancel but is 35.15 available in the second year. 35.16 Subd. 4. [ABATEMENT AID.] For abatement aid according to 35.17 Minnesota Statutes, section 127A.49: 35.18 $7,098,000 ..... 2002 35.19 $7,692,000 ..... 2003 35.20 The 2002 appropriation includes $640,000 for 2001 and 35.21 $6,458,000 for 2002. 35.22 The 2003 appropriation includes $717,000 for 2002 and 35.23 $6,975,000 for 2003. 35.24 Subd. 5. [NONPUBLIC PUPIL AID.] For nonpublic pupil 35.25 education aid according to Minnesota Statutes, sections 123.79 35.26 and 123B.40 to 123B.43: 35.27 $13,881,000 ..... 2002 35.28 $14,526,000 ..... 2003 35.29 The 2002 appropriation includes $1,330,000 for 2001 and 35.30 $12,551,000 for 2002. 35.31 The 2003 appropriation includes $1,395,000 for 2002 and 35.32 $13,131,000 for 2003. 35.33 Subd. 6. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 35.34 pupil transportation aid under Minnesota Statutes, section 35.35 123B.92, subdivision 9: 35.36 $20,411,000 ..... 2002 36.1 $22,276,000 ..... 2003 36.2 The 2002 appropriation includes $2,000,000 for 2001 and 36.3 $18,411,000 for 2002. 36.4 The 2003 appropriation includes $2,045,000 for 2002 and 36.5 $20,231,000 for 2003. 36.6 Subd. 7. [CONSOLIDATION TRANSITION AID.] For districts 36.7 consolidating under Minnesota Statutes, section 123A.485: 36.8 $675,000 ..... 2002 36.9 $669,000 ..... 2003 36.10 The 2002 appropriation includes $44,000 for 2001 and 36.11 $631,000 for 2002. 36.12 The 2003 appropriation includes $70,000 for 2002 and 36.13 $599,000 for 2003. 36.14 Any balance in the first year does not cancel but is 36.15 available in the second year. 36.16 Subd. 8. [TORNADO IMPACT; YELLOW MEDICINE EAST.] For a 36.17 grant to independent school district No. 2190, Yellow Medicine 36.18 East, for tornado impact declining enrollment aid: 36.19 $156,000 ..... 2002 36.20 $117,000 ..... 2003 36.21 Subd. 9. [TORNADO IMPACT; ST. PETER.] For a grant to 36.22 independent school district No. 508, St. Peter, for tornado 36.23 impact declining enrollment aid: 36.24 $455,000 ..... 2002 36.25 This grant is in lieu of funds authorized under Laws 1999, 36.26 chapter 241, article 4, section 22. 36.27 Sec. 56. [REVISOR INSTRUCTION.] 36.28 In the next and subsequent editions of Minnesota Statutes, 36.29 the revisor shall change all references to "compensatory 36.30 revenue" to "remedial revenue." 36.31 Sec. 57. [REPEALER.] 36.32 (a) Minnesota Statutes 2000, sections 123B.05; 124D.07; 36.33 126C.01, subdivision 10; 126C.16, subdivision 2; 126C.18; 36.34 126C.22; 126C.30; 126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 36.35 126C.36; and 127A.44, are repealed. 36.36 (b) Minnesota Statutes 2000, sections 126C.10, subdivisions 37.1 12, 23, and 28; and 126C.17, subdivision 12, are repealed 37.2 effective for revenue for fiscal year 2002. 37.3 (c) Minnesota Statutes 2000, sections 126C.42, subdivisions 37.4 2 and 3; and 126C.47, are repealed effective for taxes payable 37.5 in 2002. 37.6 (d) Minnesota Statutes 2000, section 126C.10, subdivision 37.7 3, is repealed for revenue for fiscal year 2004 and later. 37.8 ARTICLE 2 37.9 EDUCATION EXCELLENCE 37.10 Section 1. [120B.12] [READING COMPETENCY; GRANTS.] 37.11 Subdivision 1. [LITERACY GOAL.] The legislature wants 37.12 Minnesota's children to read by the end of the third grade as 37.13 measured by the Minnesota comprehensive assessment and other 37.14 general outcome measures. 37.15 Subd. 2. [DEFINITION.] For purposes of this section, a 37.16 "district" may be a local school district, an intermediate 37.17 district, or an education district. 37.18 Subd. 3. [GRANT RECIPIENTS; CRITERIA.] The commissioner 37.19 may award up to three grants to assist charter schools and sites 37.20 in district-operated schools in achieving children's reading 37.21 competency by the end of third grade. Grant recipients must 37.22 have: 37.23 (1) expertise in early literacy and the teaching of reading 37.24 or mathematics; 37.25 (2) research-based evidence that the strategies recommended 37.26 by the grant recipient improve student performance in reading; 37.27 (3) a measurement system for teachers to use that includes 37.28 an individual student test that is reliable, easy to use, and 37.29 requires minimal time; and 37.30 (4) an accountability structure for measuring the grant 37.31 recipient's results. 37.32 Subd. 4. [GRANT REQUIREMENTS.] (a) Grant recipients also 37.33 must meet the requirements of this subdivision. 37.34 (b) Grant recipients must collaborate with the commissioner 37.35 in informing district-operated schools and charter schools about 37.36 available assistance with reading competency. In awarding a 38.1 grant, the commissioner may give highest priority to those sites 38.2 and charter schools in greatest need of assistance based on 38.3 annual yearly progress reports. 38.4 (c) A district that is a grant recipient must assist a 38.5 minimum of 50 sites, at least 30 of which must have at least 25 38.6 percent enrolled students in kindergarten through grade 3 38.7 eligible for free or reduced price lunch. 38.8 (d) Grant recipients must consult with preschool programs 38.9 including early childhood family education, learning readiness, 38.10 Head Start, child care centers, and other programs to ensure 38.11 that staff at these programs possess skills that are 38.12 research-based predictors of literacy. 38.13 (e) Grant recipients must agree with a site on the reading 38.14 results the site will achieve over a three-school year period 38.15 and on the assistance with reading competency the grant 38.16 recipient will provide. The site council or the school board if 38.17 there is no site council and the teachers at the site must 38.18 consent to the agreement. 38.19 (f) The agreement must include the timeline for a baseline 38.20 measurement of each student, the frequency that individual 38.21 student performance is measured, and the manner for reporting 38.22 data to the site and the district board. 38.23 (g) The agreement also must estimate the amount of grant 38.24 funds the district will provide to the site, including funds 38.25 allocated for site planning and collecting student performance 38.26 data, and the amount of revenue the site will contribute. The 38.27 agreement must provide that if the district fails to perform 38.28 according to the agreement, the commissioner will award to the 38.29 site the funds remaining for the site under the agreement, which 38.30 the site may use for contracting with a different reading vendor. 38.31 (h) The agreement must define the site's responsibilities. 38.32 If the site does not fulfill its responsibilities, the district 38.33 may discontinue its services to that site, inform the site of 38.34 the reason for terminating the agreement, and indicate the 38.35 funding amount expended for that site. 38.36 Subd. 5. [REPORT.] Grant recipients annually must report 39.1 to the commissioner on the results achieved at each site. The 39.2 report must include: 39.3 (1) demographic information about the students at the site; 39.4 (2) the service provided to the site; 39.5 (3) student performance data for fall, winter, and spring, 39.6 although all sites may not have fall student performance data in 39.7 the first year of the program; and 39.8 (4) the amount of grant funding expended for the site. 39.9 Subd. 6. [APPLICATION PROCESS.] The commissioner shall 39.10 award one grant by July 1, 2001. The commissioner must award 39.11 the remaining grants no later than October 1, 2001. 39.12 Sec. 2. Minnesota Statutes 2000, section 120B.13, 39.13 subdivision 1, is amended to read: 39.14 Subdivision 1. [PROGRAM STRUCTURE; TRAINING PROGRAMS FOR 39.15 TEACHERS.] (a) The advanced placement and international 39.16 baccalaureate programs are well-established academic programs 39.17 for mature, academically-directed high school students. These 39.18 programs, in addition to providing academic rigor, offer sound 39.19 curricular design, accountability, comprehensive external 39.20 assessment, feedback to students and teachers, and the 39.21 opportunity for high school students to compete academically on 39.22 a global level. Advanced placement and international 39.23 baccalaureate programs allow students to leave high school with 39.24 the academic skills and self-confidence to succeed in college 39.25 and beyond. The advanced placement and international 39.26 baccalaureate programs help provide Minnesota students with 39.27 world-class educational opportunity. 39.28 (b) Critical to schools' educational success is ongoing 39.29 advanced placement/international baccalaureate-approved teacher 39.30 training. A secondary teacher assigned by a district to teach 39.31 an advanced placement or international baccalaureate course or 39.32 other interested educator may participate in a training program 39.33 offered by the college board or International Baccalaureate 39.34 North America, Inc. The state may pay a portion of the tuition, 39.35 room, and board costs a teacher or other interested educator 39.36 incurs in participating in a training program. The commissioner 40.1 shall determine application procedures and deadlines, and select 40.2 teachers and other interested educators to participate in the 40.3 training program. The procedures determined by the commissioner 40.4 shall, to the extent possible, ensure that advanced placement 40.5 and international baccalaureate courses become available in all 40.6 parts of the state and that a variety of course offerings are 40.7 available in school districts. This subdivision does not 40.8 prevent teacher or other interested educator participation in 40.9 training programs offered by the college board or International 40.10 Baccalaureate North America, Inc., when tuition is paid by a 40.11 source other than the state. 40.12 Sec. 3. [120B.15] [INVOLUNTARY CAREER TRACKING 40.13 PROHIBITED.] 40.14 A school district may develop grade-level curricula or 40.15 provide instruction that introduces students to various careers, 40.16 but must not require any curriculum, instruction, or 40.17 employment-related activity that obligates an elementary or 40.18 secondary student to involuntarily select a career, career 40.19 interest, employment goals, or related job training. 40.20 [EFFECTIVE DATE.] This section is effective the day 40.21 following final enactment. 40.22 Sec. 4. Minnesota Statutes 2000, section 120B.30, 40.23 subdivision 1, is amended to read: 40.24 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 40.25 with advice from experts with appropriate technical 40.26 qualifications and experience and stakeholders, shall include in 40.27 the comprehensive assessment system, for each grade level to be 40.28 tested, a test, which shall be aligned with the state's 40.29 graduation standards and administered annually to all students 40.30 in the third, fifth, and eighth grades. All elementary and 40.31 secondary students who take a statewide math test designed for 40.32 students in grade 3, 4, 5, 6, 7, or 8 are prohibited from using 40.33 a calculator while taking such a test. The commissioner shall: 40.34 (1) ensure that all multiple choice and true/false test 40.35 items contained in a statewide test have a single correct 40.36 answer; 41.1 (2) include in test items measuring a student's reading 41.2 comprehension, a variety of print sources in addition to mass 41.3 media, including fiction or nonfiction literature; 41.4 (3) ensure that all statewide tests administered to 41.5 elementary and secondary students measure students' academic 41.6 knowledge and not students' values, attitudes, and beliefs; and 41.7 (4) establish one or more months during which schools shall 41.8 administer the tests to students each school year. Only 41.9 Minnesota basic skills tests in reading, mathematics, and 41.10 writing shall fulfill students' basic skills testing 41.11 requirements for a passing state notation. The passing scores 41.12 of the state tests in reading and mathematics are the equivalent 41.13 of: 41.14(1)(i) 70 percent correct for students entering grade 9 in 41.15 1996; and 41.16(2)(ii) 75 percent correct for students entering grade 9 41.17 in 1997 and thereafter, as based on the first uniform test 41.18 administration of February 1998. 41.19 Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, 41.20 at the written request of a parent or guardian, and with the 41.21 recommendation of the student's teacher, a district may offer 41.22 the test of basic requirements in reading, math, or writing to 41.23 an individual student beginning in grade 5. The student must 41.24 take the same test on the same date as administered to students 41.25 in eighth grade or higher. Third and fifth grade test results 41.26 shall be available to districts for diagnostic purposes 41.27 affecting student learning and district instruction and 41.28 curriculum, and for establishing educational accountability. 41.29 The commissioner must disseminate to the public the third and 41.30 fifth grade test results upon receiving those results. 41.31 (b) In addition, at the secondary level, districts shall 41.32 assess student performance in all required learning areas and 41.33 selected required standards within each area of the profile of 41.34 learning. The testing instruments and testing process shall be 41.35 determined by the commissioner. The results shall be aggregated 41.36 at the site and district level. The testing shall be 42.1 administered beginning in the 1999-2000 school year and 42.2 thereafter. 42.3 (c) The commissioner shall report school site and school 42.4 district student academic achievement levels of the current and 42.5 two immediately preceding school years. The report shall 42.6 include students' unweighted mean test scores in each tested 42.7 subject, the unweighted mean test scores of only those students 42.8 enrolled in the school by January 1 of the previous school year, 42.9 and the unweighted test scores of all students except those 42.10 students receiving limited English proficiency instruction. The 42.11 report also shall record separately, in proximity to the 42.12 reported performance levels, the percentages of students who are 42.13 eligible to receive a free or reduced price school meal, 42.14 demonstrate limited English proficiency, or are eligible to 42.15 receive special education services. 42.16 (d) In addition to the testing and reporting requirements 42.17 under paragraphs (a), (b), and (c), the commissioner shall 42.18 include the following components in the statewide public 42.19 reporting system: 42.20 (1) uniform statewide testing of all third, fifth, eighth, 42.21 and post-eighth grade students that provides exemptions, only 42.22 with parent or guardian approval, for those very few students 42.23 for whom the student's individual education plan team under 42.24 sections 125A.05 and 125A.06, determines that the student is 42.25 incapable of taking a statewide test, or for a limited English 42.26 proficiency student under section 124D.59, subdivision 2, if the 42.27 student has been in the United States for fewer than 12 months 42.28 and for whom special language barriers exist, such as the 42.29 student's native language does not have a written form or the 42.30 district does not have access to appropriate interpreter 42.31 services for the student's native language; 42.32 (2) educational indicators that can be aggregated and 42.33 compared across school districts and across time on a statewide 42.34 basis, including average daily attendance, high school 42.35 graduation rates, and high school drop-out rates by age and 42.36 grade level; 43.1 (3) students' scores on the American College Test; and 43.2 (4) participation in the National Assessment of Educational 43.3 Progress so that the state can benchmark its performance against 43.4 the nation and other states, and, where possible, against other 43.5 countries, and contribute to the national effort to monitor 43.6 achievement. 43.7 (e) Districts must report exemptions under paragraph (d), 43.8 clause (1), to the commissioner consistent with a format 43.9 provided by the commissioner. 43.10 (f) The commissioner shall make a student's test results, 43.11 including the student's individual test, on all statewide tests 43.12 available to the student's school district and the student's 43.13 parent or guardian. 43.14 [EFFECTIVE DATE.] This section is effective the day 43.15 following final enactment. 43.16 Sec. 5. [120B.32] [SCHOOL DISTRICT SYSTEM ACCOUNTABILITY 43.17 AND EDUCATIONAL IMPROVEMENT PLAN.] 43.18 Subdivision 1. [QUALIFYING PLAN.] A district may develop a 43.19 system accountability and educational improvement plan. The 43.20 plan must establish comprehensive measures of school district, 43.21 school site, teacher, and individual student performance 43.22 consistent with subdivisions 2 to 5. 43.23 Subd. 2. [DISTRICT ACCOUNTABILITY.] A school board must 43.24 approve a system accountability and educational improvement 43.25 plan. The plan must indicate the data and measures needed for 43.26 improving educational performance within the district, including 43.27 baseline data, performance goals, and benchmarks accompanied by 43.28 specific dates for meeting those benchmarks. A district's 43.29 performance goals must include student achievement goals and may 43.30 include other performance goals such as improved school 43.31 attendance, student discipline, school safety, or parent 43.32 involvement, or enhancing the knowledge and skills of school 43.33 staff. The plan also must describe the methods for developing, 43.34 reviewing, and implementing means to improve educational 43.35 performance at each school site located within the district. 43.36 Subd. 3. [SCHOOL SITE ACCOUNTABILITY.] Each school site 44.1 must develop a board-approved accountability and educational 44.2 improvement plan that is aligned with the performance goals 44.3 contained in the school district accountability and educational 44.4 improvement plan. While a site plan must be consistent with the 44.5 district accountability plan, it may establish performance goals 44.6 and benchmarks that meet or exceed those of the district. 44.7 Subd. 4. [TEACHER ACCOUNTABILITY.] A district's 44.8 accountability and educational improvement plan must identify 44.9 the district's plan to assess teacher performance. The plan 44.10 must include clearly defined, research-based teacher 44.11 professional development standards that permit objective 44.12 assessment, including classroom observation, consistent with 44.13 district goals for instruction. The exclusive bargaining 44.14 representative of the teachers and the school board must agree 44.15 to the plan. The plan may include: 44.16 (1) teacher professional development standards that 44.17 emphasize content; 44.18 (2) staff development opportunities for teachers to attain 44.19 teacher professional development standards; or 44.20 (3) standards and procedures for assessing teachers' 44.21 professional practice. 44.22 The teacher professional development standards must be 44.23 sufficiently rigorous to effect meaningful professional 44.24 development and improvement. 44.25 Subd. 5. [STUDENT ACCOUNTABILITY.] A district's system 44.26 accountability and educational improvement plan must include 44.27 comprehensive measures of student performance and a list of 44.28 assessment tools the district will use to determine student 44.29 performance. 44.30 [EFFECTIVE DATE.] This section is effective the day 44.31 following final enactment. 44.32 Sec. 6. [120B.33] [ALTERNATIVE TEACHER COMPENSATION; 44.33 ACCOUNTABILITY AND EDUCATIONAL IMPROVEMENT.] 44.34 Subdivision 1. [RESTRUCTURED SYSTEM ESTABLISHED.] A 44.35 restructured teacher compensation system is established to 44.36 provide incentives for teachers to continuously improve their 45.1 knowledge and skills, for school districts to successfully 45.2 recruit and retain highly qualified teachers, and to support 45.3 teachers' roles in improving students' educational achievement. 45.4 Subd. 2. [TEACHER PROFESSIONAL PAY LADDER.] (a) In order 45.5 to qualify for funding under this section, all of a district's 45.6 eligible probationary teachers must be compensated according to 45.7 the teacher professional pay ladder schedule instead of the 45.8 existing step and lane salary schedule. The professional pay 45.9 ladder is as described in this section. A district must include 45.10 in a teacher professional pay ladder schedule the conditions 45.11 needed for a teacher to advance to each subsequent progression. 45.12 The schedule and conditions must be developed in collaboration 45.13 with the exclusive bargaining representative of the teachers and 45.14 approved by the school board. The restructured teacher 45.15 compensation system must accurately and adequately reflect 45.16 teachers' level of content knowledge and general pedagogy, 45.17 include professional standards of best practices, and promote 45.18 professional growth and expertise. The professional pay ladder 45.19 must contain an evaluation mechanism at each subsequent 45.20 progression that is aligned with teacher accountability 45.21 provisions in section 120B.32, subdivision 4. 45.22 (b) The restructured teacher compensation system may 45.23 provide compensation increases to teachers who attain additional 45.24 relevant knowledge and skills. 45.25 (c) All teachers with fewer than three years of teaching 45.26 experience who are newly hired in a district that implements a 45.27 professional pay ladder must be placed on the professional pay 45.28 ladder. 45.29 Subd. 3. [ADDITIONAL DAYS FOR ELIGIBLE PROBATIONARY 45.30 TEACHER INDUCTION AND MENTORING.] (a) To be eligible to 45.31 implement a restructured teacher compensation system, 45.32 participating teachers, which must include eligible probationary 45.33 teachers, and school districts must agree to increase by at 45.34 least ten days per school year the number of days devoted to 45.35 staff development activities. The ten additional days must be: 45.36 (1) the equivalent in hours of ten school days, consistent 46.1 with section 120A.41; and 46.2 (2) calculated in terms of the number of days that teachers 46.3 with continuing contract or tenure rights must work. 46.4 Teachers and school districts must use the additional days for 46.5 establishing and implementing a new teacher induction and 46.6 mentoring program that provides continuous learning 46.7 opportunities, ongoing orientation, and sustained teacher 46.8 support. Teachers and school districts may schedule some 46.9 additional days during the school year. 46.10 (b) Teachers and school districts are encouraged to use the 46.11 resources of existing educational institutions and organizations 46.12 to establish and implement the program. 46.13 (c) Teachers and school districts may extend the work year 46.14 of nonparticipating teachers in order to provide induction and 46.15 mentoring activities for peer review and assessment, and for 46.16 professional development that aligns with the district's 46.17 accountability system if the exclusive bargaining representative 46.18 of the teachers and the school board agree to the terms and 46.19 conditions under which to extend the work year of 46.20 nonparticipating teachers providing the mentoring. 46.21 [EFFECTIVE DATE.] This section is effective the day 46.22 following final enactment. 46.23 Sec. 7. [120B.34] [ALTERNATIVE COMPENSATION AID.] 46.24 A school district that meets the conditions of section 46.25 120B.33 is eligible for alternative compensation aid. 46.26 Alternative compensation aid for a qualifying school district 46.27 equals $2,000 times the number of eligible probationary teachers 46.28 teaching in the school district during the current school year 46.29 plus $500 times the number of nonprobationary teachers providing 46.30 induction and mentoring activities for peer review and 46.31 assessment during the current school year. For purposes of this 46.32 section, the number of eligible probationary teachers includes 46.33 any nontenured licensed teacher or licensed teacher without a 46.34 continuing contract who is working at least 60 percent of a 46.35 full-time teacher's hours. This aid is available to a school 46.36 district only after the school board and the exclusive 47.1 bargaining representative of the teachers sign and submit to the 47.2 commissioner of the department of children, families, and 47.3 learning a written statement that they have developed an 47.4 alternative teacher compensation proposal based on the system 47.5 accountability and educational improvement plan under section 47.6 120B.32. The aid received under this section must be used for 47.7 activities under section 120B.33, subdivision 3. 47.8 [EFFECTIVE DATE.] This section is effective July 1, 2002. 47.9 Sec. 8. Minnesota Statutes 2000, section 120B.35, is 47.10 amended to read: 47.11 120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.] 47.12 Subdivision 1. [VALUE ADDED ASSESSMENT.] (a) "Value added 47.13 assessment" is the basis for defining adequate yearly progress 47.14 and for determining student achievement levels and has the 47.15 components described in paragraphs (b), (c), and (d). 47.16 (b) A value added assessment is a statistical system for 47.17 assessing educational outcomes that relies on measures of 47.18 student learning to estimate teacher, school, and school 47.19 district statistical distributions. The system uses available 47.20 and appropriate data as input to explain differences in prior 47.21 student attainment so that the impact of the teacher, school, 47.22 and school district on a student's educational progress is 47.23 estimated on a constant student attainment basis. The impact 47.24 that a teacher, school, or school district has on a student's 47.25 progress, or lack of progress, in making educational 47.26 advancements or acquiring learning is the "effect" of the 47.27 teacher, school, or school district on a student's educational 47.28 progress. 47.29 (c) The system includes mixed model methodologies that 47.30 provide linear unbiased prediction for the effect of the 47.31 teacher, school, and school district on the student's 47.32 educational progress. The system adequately provides these 47.33 estimates for classrooms where a single teacher teaches multiple 47.34 subjects to the same group of students, for team teaching 47.35 arrangements, and for other teaching circumstances. 47.36 (d) In order to minimize ceiling and floor effects, the 48.1 metrics used to measure student learning are linear scales that 48.2 cover the entire range of subjects contained in a school's 48.3 academic curriculum. A strong relationship exists between the 48.4 metrics and the academic curriculum for the applicable grade 48.5 level and subject. 48.6 Subd. 2. [STUDENT ACHIEVEMENT LEVELS.] (a) Consistent with 48.7 subdivision 1, each school year, a school district must 48.8 determine if the student achievement levels at each school site 48.9 meet state and local expectations. If student achievement 48.10 levels at a school site do not meet state and local expectations 48.11 for two out of three consecutive school years, beginning with 48.12 the 2000-2001 school year, the district must work with the 48.13 school site to adopt a plan to raise student achievement levels 48.14 to meet state and local expectations.The legislature will48.15determine state expectations after receiving a recommendation48.16from the commissioner of children, families, and learning.48.17 (b) The department, at a district's request, must assist 48.18 the district and the school site in developing a plan to improve 48.19 student achievement. The plan must include parental involvement 48.20 components. 48.21 [EFFECTIVE DATE.] This section is effective for the 48.22 2001-2002 school year and later. 48.23 Sec. 9. Minnesota Statutes 2000, section 121A.11, is 48.24 amended by adding a subdivision to read: 48.25 Subd. 3. [PLEDGE OF ALLEGIANCE.] (a) All public and 48.26 charter school students shall recite the pledge of allegiance to 48.27 the flag of the United States of America one or more times each 48.28 week. The recitation shall be conducted: 48.29 (1) by each individual classroom teacher or the teacher's 48.30 surrogate; or 48.31 (2) over a school intercom system by a person designated by 48.32 the school principal or other person having administrative 48.33 control over the school. 48.34 A local school board or a charter school board of directors 48.35 annually, by majority vote, may waive this requirement. 48.36 (b) Any student or teacher who objects to reciting the 49.1 pledge must be excused from participating without penalty. 49.2 (c) A local school board or a charter school board of 49.3 directors that waives the requirement to recite the pledge of 49.4 allegiance under paragraph (a) may adopt a district or school 49.5 policy regarding the reciting of the pledge of allegiance. 49.6 [EFFECTIVE DATE.] This section is effective the day 49.7 following final enactment. 49.8 Sec. 10. Minnesota Statutes 2000, section 121A.11, is 49.9 amended by adding a subdivision to read: 49.10 Subd. 4. [INSTRUCTION.] Unless this requirement is waived 49.11 annually by a majority vote of the school board, a school 49.12 district must instruct students in the proper etiquette toward, 49.13 correct display of, and respect for the flag, and in patriotic 49.14 exercises. The instruction must be part of the district's fifth 49.15 grade social studies curriculum. 49.16 [EFFECTIVE DATE.] This section is effective the day 49.17 following final enactment. Each school district must begin the 49.18 instruction required under this section no later than the 49.19 2002-2003 school year. 49.20 Sec. 11. Minnesota Statutes 2000, section 121A.45, 49.21 subdivision 2, is amended to read: 49.22 Subd. 2. [GROUNDS FOR DISMISSAL.] A pupil may be dismissed 49.23 on any of the following grounds: 49.24 (a) willful violation of any reasonable school board 49.25 regulation. Such regulation must be clear and definite to 49.26 provide notice to pupils that they must conform their conduct to 49.27 its requirements; 49.28 (b) willful conduct thatmaterially and49.29substantiallysignificantly disrupts the rights of others to an 49.30 education, or the ability of school personnel to perform their 49.31 duties, or school sponsored extracurricular activities; or 49.32 (c) willful conduct that endangers the pupil or other 49.33 pupils, or surrounding persons, including school district 49.34 employees, or property of the school. 49.35 Sec. 12. Minnesota Statutes 2000, section 121A.45, is 49.36 amended by adding a subdivision to read: 50.1 Subd. 3. [PARENT NOTIFICATION AND MEETING.] If a pupil's 50.2 total days of removal from school exceeds ten cumulative days in 50.3 a school year, the school district shall make reasonable 50.4 attempts to convene a meeting with the pupil and the pupil's 50.5 parent or guardian prior to subsequently removing the pupil from 50.6 school. The purpose of this meeting is to attempt to determine 50.7 the pupil's need for assessment or other services. 50.8 Sec. 13. Minnesota Statutes 2000, section 121A.582, is 50.9 amended to read: 50.10 121A.582 [STUDENT DISCIPLINE; REASONABLE FORCE.] 50.11 Subdivision 1. [REASONABLE FORCE STANDARD.] (a) A 50.12 teacher or school principal, in exercising the person's lawful 50.13 authority, may use reasonable force when it is necessary under 50.14 the circumstances to correct or restrain a student or prevent 50.15 bodily harm or death to another. 50.16 (b) A school employee, school bus driver, or other agent of 50.17 a district, in exercising the person's lawful authority, may use 50.18 reasonable force when it is necessary under the circumstances to 50.19 restrain a student or prevent bodily harm or death to another. 50.20 (c) Paragraphs (a) and (b) do not authorize conduct 50.21 prohibited under sections 121A.58 and 121A.67. 50.22 Subd. 2. [CIVIL LIABILITY.] (a) A teacher or school 50.23 principal who, in the exercise of the person's lawful authority, 50.24 uses reasonable force under the standard in subdivision 1, 50.25 paragraph (a), has a defense against a civil action for damages 50.26 under section 123B.25. 50.27 (b) A school employee, bus driver, or other agent of a 50.28 district who, in the exercise of the person's lawful authority, 50.29 uses reasonable force under the standard in subdivision 1, 50.30 paragraph (b), has a defense against a civil action for damages 50.31 under section 123B.25. 50.32 Subd. 3. [CRIMINAL PROSECUTION.] (a) A teacher or school 50.33 principal who, in the exercise of the person's lawful authority, 50.34 uses reasonable force under the standard in subdivision 1, 50.35 paragraph (a), has a defense against a criminal prosecution 50.36 under section 609.06, subdivision 1. 51.1 (b) A school employee, bus driver, or other agent of a 51.2 district who, in the exercise of the person's lawful authority, 51.3 uses reasonable force under the standard in subdivision 1, 51.4 paragraph (b), has a defense against a criminal prosecution 51.5 under section 609.06, subdivision 1. 51.6 Subd. 4. [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 51.7 defense in this section is supplementary to those specified in 51.8 section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 51.9 [EFFECTIVE DATE.] This section is effective the day 51.10 following final enactment. 51.11 Sec. 14. Minnesota Statutes 2000, section 121A.61, 51.12 subdivision 2, is amended to read: 51.13 Subd. 2. [GROUNDS FOR REMOVAL FROM CLASS.] The policy must 51.14 establish the various grounds for which a student may be removed 51.15 from a class in the district for a period of timepursuant51.16tounder the procedures specified in the policy. The policy 51.17 must include a procedure for notifying and meeting with a 51.18 student's parent or guardian to discuss the problem that is 51.19 causing the student to be removed from class after the student 51.20 has been removed from class more than ten times in one school 51.21 year. The grounds in the policy must include at least the 51.22 following provisions as well as other grounds determined 51.23 appropriate by the board: 51.24 (a) willful conductwhich materially and substantiallythat 51.25 significantly disrupts the rights of others to an education, 51.26 including conduct that interferes with a teacher's ability to 51.27 teach or communicate effectively with students in a class or 51.28 with the ability of other students to learn; 51.29 (b) willful conductwhichthat endangers surrounding 51.30 persons, including school district employees, the student or 51.31 other students, or the property of the school; and 51.32 (c) willful violation of any rule of conduct specified in 51.33 the discipline policy adopted by the board. 51.34 Sec. 15. Minnesota Statutes 2000, section 122A.06, is 51.35 amended by adding a subdivision to read: 51.36 Subd. 4. [COMPREHENSIVE, SCIENTIFICALLY BASED READING 52.1 INSTRUCTION.] "Comprehensive, scientifically based reading 52.2 instruction" includes instruction and practice in phonemic 52.3 awareness, phonics and other word-recognition skills, and guided 52.4 oral reading for beginning readers, as well as extensive silent 52.5 reading, vocabulary instruction, instruction in comprehension, 52.6 and instruction that fosters understanding and higher-order 52.7 thinking for readers of all ages and proficiency levels. 52.8 Sec. 16. Minnesota Statutes 2000, section 122A.09, 52.9 subdivision 4, is amended to read: 52.10 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 52.11 rules to license public school teachers and interns subject to 52.12 chapter 14. 52.13 (b) The board must adopt rules requiring a person to 52.14 successfully complete a skills examination in reading, writing, 52.15 and mathematics as a requirement for initial teacher licensure. 52.16 Such rules must require college and universities offering a 52.17 board approved teacher preparation program to provide remedial 52.18 assistance to persons who did not achieve a qualifying score on 52.19 the skills examination, including those for whom English is a 52.20 second language. 52.21 (c) The board must adopt rules to approve teacher 52.22 preparation programs. The board, upon the request of a 52.23 post-secondary student preparing for teacher licensure or a 52.24 licensed graduate of a teacher preparation program, shall assist 52.25 in resolving a dispute between the person and a post-secondary 52.26 institution providing a teacher preparation program when the 52.27 dispute involves an institution's recommendation for licensure 52.28 affecting the person or the person's credentials. At the 52.29 board's discretion, assistance may include the application of 52.30 chapter 14. 52.31 (d) The board must provide the leadership and shall adopt 52.32 rules for the redesign of teacher education programs to 52.33 implement a research based, results-oriented curriculum that 52.34 focuses on the skills teachers need in order to be effective. 52.35 The board shall implement new systems of teacher preparation 52.36 program evaluation to assure program effectiveness based on 53.1 proficiency of graduates in demonstrating attainment of program 53.2 outcomes. 53.3 (e) The board must adopt rules requiring successful 53.4 completion of an examination of general pedagogical knowledge 53.5 and examinations of licensure-specific teaching skills. The 53.6 rules shall be effective on the dates determined by the board, 53.7 but not later than September 1, 2001. 53.8 (f) The board must adopt rules requiring teacher educators 53.9 to work directly with elementary or secondary school teachers in 53.10 elementary or secondary schools to obtain periodic exposure to 53.11 the elementary or secondary teaching environment. 53.12 (g) The board must grant licenses to interns and to 53.13 candidates for initial licenses. 53.14 (h) The board must design and implement an assessment 53.15 system which requires a candidate for an initial license and 53.16 first continuing license to demonstrate the abilities necessary 53.17 to perform selected, representative teaching tasks at 53.18 appropriate levels. 53.19 (i) The board must receive recommendations from local 53.20 committees as established by the board for the renewal of 53.21 teaching licenses. 53.22 (j) The board must grant life licenses to those who qualify 53.23 according to requirements established by the board, and suspend 53.24 or revoke licenses pursuant to sections 122A.20 and 214.10. The 53.25 board must not establish any expiration date for application for 53.26 life licenses. 53.27 (k) The board must adopt rules that require all licensed 53.28 teachers who are renewing their continuing license to include in 53.29 their renewal requirements further preparation in the areas of 53.30 using positive behavior interventions and in accommodating, 53.31 modifying, and adapting curricula, materials, and strategies to 53.32 appropriately meet the needs of individual students and ensure 53.33 adequate progress toward the state's graduation rule.The rules53.34adopted under this paragraph apply to teachers who renew their53.35licenses in year 2001 and later.53.36 (l) In adopting rules to license public school teachers who 54.1 provide health-related services for disabled children, the board 54.2 shall adopt rules consistent with license or registration 54.3 requirements of the commissioner of health and the 54.4 health-related boards who license personnel who perform similar 54.5 services outside of the school. 54.6 (m) The board must adopt rules that require all licensed 54.7 teachers who are renewing their continuing license to include in 54.8 their renewal requirements further reading preparation, 54.9 consistent with section 122A.06, subdivision 4. The rules do 54.10 not take effect until they are approved by law. 54.11 [EFFECTIVE DATE.] This section is effective for teachers 54.12 who renew their licenses in year 2004 and later. 54.13 Sec. 17. Minnesota Statutes 2000, section 122A.18, 54.14 subdivision 2, is amended to read: 54.15 Subd. 2. [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 54.16 (a) The board of teaching must issue licenses under its 54.17 jurisdiction to persons the board finds to be qualified and 54.18 competent for their respective positions. 54.19 (b) The board must require a person to successfully 54.20 complete an examination of skills in reading, writing, and 54.21 mathematics before being granted an initial teaching license to 54.22 provide direct instruction to pupils in prekindergarten, 54.23 elementary, secondary, or special education programs. The board 54.24 must require colleges and universities offering a board approved 54.25 teacher preparation program to provide remedial assistance that 54.26 includes a formal diagnostic component to persons enrolled in 54.27 their institution who did not achieve a qualifying score on the 54.28 skills examination, including those for whom English is a second 54.29 language. The colleges and universities must provide assistance 54.30 in the specific academic areas of deficiency in which the person 54.31 did not achieve a qualifying score. School districts must 54.32 provide similar, appropriate, and timely remedial assistance 54.33 that includes a formal diagnostic component and mentoring to 54.34 those persons employed by the district who completed their 54.35 teacher education program outside the state of Minnesota, 54.36 received a one-year license to teach in Minnesota and did not 55.1 achieve a qualifying score on the skills examination, including 55.2 those persons for whom English is a second language. The board 55.3 of teaching shall report annually to the education committees of 55.4 the legislature on the total number of teacher candidates during 55.5 the most recent school year taking the skills examination, the 55.6 number who achieve a qualifying score on the examination, the 55.7 number who do not achieve a qualifying score on the examination, 55.8 the distribution of all candidates' scores, the number of 55.9 candidates who have taken the examination at least once before, 55.10 and the number of candidates who have taken the examination at 55.11 least once before and achieve a qualifying score. 55.12 (c) A person who has completed an approved teacher 55.13 preparation program and obtained a one-year license to teach, 55.14 but has not successfully completed the skills examination, may 55.15 renew the one-year license for two additional one-year periods. 55.16 Each renewal of the one-year license is contingent upon the 55.17 licensee: 55.18 (1) providing evidence of participating in an approved 55.19 remedial assistance program provided by a school district or 55.20 post-secondary institution that includes a formal diagnostic 55.21 component in the specific areas in which the licensee did not 55.22 obtain qualifying scores; and 55.23 (2) attempting to successfully complete the skills 55.24 examination during the period of each one-year license. 55.25 (d) The board of teaching must grant continuing licenses 55.26 only to those persons who have met board criteria for granting a 55.27 continuing license, which includes successfully completing the 55.28 skills examination in reading, writing, and mathematics. 55.29 (e) All colleges and universities approved by the board of 55.30 teaching to prepare persons for teacher licensure must include 55.31 in their teacher preparation programs a common core of teaching 55.32 knowledge and skills to be acquired by all persons recommended 55.33 for teacher licensure. This common core shall meet the 55.34 standards developed by the interstate new teacher assessment and 55.35 support consortium in its 1992 "model standards for beginning 55.36 teacher licensing and development." Amendments to standards 56.1 adopted under this paragraph are covered by chapter 14. The 56.2 board of teaching shall report annually to the education 56.3 committees of the legislature on the performance of teacher 56.4 candidates on common core assessments of knowledge and skills 56.5 under this paragraph during the most recent school year. 56.6 [EFFECTIVE DATE.] This section is effective for the 56.7 2001-2002 school year and later. 56.8 Sec. 18. Minnesota Statutes 2000, section 122A.18, 56.9 subdivision 2a, is amended to read: 56.10 Subd. 2a. [READING STRATEGIES.] (a) All colleges and 56.11 universities approved by the board of teaching to prepare 56.12 persons for classroom teacher licensure must include in their 56.13 teacher preparation programs reading best practices that enable 56.14 classroom teacher licensure candidates to know how to teach 56.15 reading, such as phonics or other research-based best practices. 56.16 (b) Colleges and universities offering board-approved 56.17 teacher preparation programs must require instruction in the 56.18 application of comprehensive, scientifically based reading 56.19 instruction programs, as defined in section 122A.06, subdivision 56.20 4. 56.21 [EFFECTIVE DATE.] This section is effective for candidates 56.22 for initial licensure in year 2004 and later. 56.23 Sec. 19. Minnesota Statutes 2000, section 122A.18, is 56.24 amended by adding a subdivision to read: 56.25 Subd. 2b. [READING SPECIALIST.] Not later than July 1, 56.26 2002, the board of teaching must adopt rules providing for the 56.27 licensure of reading teachers. 56.28 Sec. 20. Minnesota Statutes 2000, section 122A.61, 56.29 subdivision 1, is amended to read: 56.30 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] (a) A district 56.31 is required to reserve revenue for staff development purposes. 56.32 An amount equal to at least one percent of the basic revenue 56.33 under section 126C.10, subdivision 2, must be reserved for 56.34 teacher mentoring and teacher induction programs according to 56.35 paragraph (d) and an amount equal to at leasttwoone percent of 56.36 the basic revenue under section 126C.10, subdivision 2, must be 57.1 reserved for in-service education for programs under section 57.2 120B.22, subdivision 2, for staff development plans, including 57.3 plans for challenging instructional activities and experiences 57.4 under section 122A.60, and for curriculum development and 57.5 programs, other in-service education, teachers' workshops, 57.6 teacher conferences, the cost of substitute teachers staff 57.7 development purposes, and other related costs for staff 57.8 development efforts. 57.9 (b) A district may annually waive the requirement to 57.10 reserve their basic revenue under this section if a majority 57.11 vote of the licensed teachers in the district and a majority 57.12 vote of the school board agree to a resolution to waive the 57.13 requirement. A district in statutory operating debt is exempt 57.14 from reserving basic revenue according to this section. 57.15 Districts may expend an additional amount of unreserved revenue 57.16 for staff development based on their needs. 57.17 (c) With the exception of amounts reserved for new teacher 57.18 mentoring and teacher induction programs, and staff development 57.19 from revenues allocated directly to school sites, the board must 57.20 initially allocate 50 percent of the reserved revenue to each 57.21 school site in the district on a per teacher basis, which must 57.22 be retained by the school site until used. The board may retain 57.23 25 percent to be used for district wide staff development 57.24 efforts. The remaining 25 percent of the revenue must be used 57.25 to make grants to school sites for best practices methods. A 57.26 grant may be used for any purpose authorized under section 57.27 120B.22, subdivision 2, 122A.60, or for the costs of curriculum 57.28 development and programs, other in-service education, teachers' 57.29 workshops, teacher conferences, substitute teachers for staff 57.30 development purposes, and other staff development efforts, and 57.31 determined by the site professional development team. The site 57.32 professional development team must demonstrate to the school 57.33 board the extent to which staff at the site have met the 57.34 outcomes of the program. The board may withhold a portion of 57.35 initial allocation of revenue if the staff development outcomes 57.36 are not being met. 58.1 (d) A school district must use its reserved revenue for 58.2 teacher mentoring and teacher induction programs to serve 58.3 teachers who have taught five or fewer years in the school 58.4 district. Teacher mentoring and induction activities include 58.5 programs designed to train teachers to serve as mentors, provide 58.6 ongoing peer coaching and assessment, assist in developing 58.7 individual professional development plans, and offer other 58.8 structured learning experiences to new teachers. 58.9 [EFFECTIVE DATE.] This section is effective for revenue for 58.10 fiscal year 2002 and later. 58.11 Sec. 21. [122A.76] [BEST PRACTICES.] 58.12 "Best practices" means research-based proven practices. 58.13 Sec. 22. Minnesota Statutes 2000, section 123B.03, 58.14 subdivision 3, is amended to read: 58.15 Subd. 3. [DEFINITIONS.] For purposes of this section: 58.16 (a) "School" means a school as defined in section 120A.22, 58.17 subdivision 4, except a home-school, and includes a school 58.18 receiving tribal contract or grant school aid under section 58.19 124D.83; school, for the purposes of this section, also means a 58.20 service cooperative, a special education cooperative, or an 58.21 education district under Minnesota Statutes 1997 Supplement, 58.22 section 123.35, a charter school under section 124D.10, and a 58.23 joint powers district under section 471.59. 58.24 (b) "School hiring authority" means the school principal or 58.25 other person having general control and supervision of the 58.26 school. 58.27 Sec. 23. Minnesota Statutes 2000, section 124D.10, is 58.28 amended by adding a subdivision to read: 58.29 Subd. 3a. [CONFLICT OF INTEREST.] (a) A member of a 58.30 charter school board of directors is prohibited from serving as 58.31 a member of the board of directors or as an employee or agent of 58.32 or a contractor with an entity with whom the charter school 58.33 contracts, directly or indirectly, for professional services, 58.34 goods, or facilities. A violation of this prohibition renders a 58.35 contract voidable at the option of the commissioner. A member 58.36 of a charter school board of directors who violates this 59.1 prohibition shall be individually liable to the charter school 59.2 for any damage caused by the violation. 59.3 (b) An individual may serve as a member of the board of 59.4 directors if no conflict of interest under paragraph (a) exists. 59.5 (c) The conflict of interest provisions under this 59.6 subdivision do not apply to the standard compensation paid to a 59.7 teacher employed by the charter school who also serves as a 59.8 member of the board of directors. 59.9 [EFFECTIVE DATE.] This section is effective for the 59.10 2001-2002 school year and following. 59.11 Sec. 24. Minnesota Statutes 2000, section 124D.10, 59.12 subdivision 4, is amended to read: 59.13 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 59.14 authorize one or more licensed teachers under section 122A.18, 59.15 subdivision 1, to operate a charter school subject to approval 59.16 by the commissioner. A board must vote on charter school 59.17 application for sponsorship no later than 90 days after 59.18 receiving the application. After 90 days, the applicant may 59.19 apply to the commissioner. If a board elects not to sponsor a 59.20 charter school, the applicant may appeal the board's decision to 59.21 the commissioner. If the commissioner authorizes the school, 59.22 the commissioner must sponsor the school according to this 59.23 section. The school must be organized and operated as a 59.24 cooperative under chapter 308A or nonprofit corporation under 59.25 chapter 317A and the provisions under the applicable chapter 59.26 shall apply to the school except as provided in this section. 59.27 (b) Before the operators may form and operate a school, the 59.28 sponsor must file an affidavit with the commissioner stating its 59.29 intent to authorize a charter school. The affidavit must state 59.30 the terms and conditions under which the sponsor would authorize 59.31 a charter school. The commissioner must approve or disapprove 59.32 the sponsor's proposed authorization within 60 days of receipt 59.33 of the affidavit. Failure to obtain commissioner approval 59.34 precludes a sponsor from authorizing the charter school that was 59.35 the subject of the affidavit. 59.36 (c) The operators authorized to organize and operate a 60.1 school, before entering into a contract or other agreement for 60.2 professional or other services, goods, or facilities, musthold60.3an election for members of the school's board of directors in a60.4timely manner after the school is operatingincorporate as a 60.5 cooperative under chapter 308A or as a nonprofit corporation 60.6 under chapter 317A and must establish a board of directors 60.7 composed of at least five members until a timely election for 60.8 members of the charter school board of directors is held 60.9 according to the school's articles and bylaws. A charter school 60.10 board of directors must be composed of at least seven members. 60.11 Any staff members who are employed at the school, including 60.12 teachers providing instruction under a contract with a 60.13 cooperative, and all parents of children enrolled in the school 60.14 may participate in the election for members of the school's 60.15 board of directors. Licensed teachers employed at the school, 60.16 including teachers providing instruction under a contract with a 60.17 cooperative, must be a majority of the members of the board of 60.18 directors before the school completes its third year of 60.19 operation, unless the commissioner waives the requirement 60.20 forthe schoola majority of licensed teachers on the board.A60.21provisional board may operate before the election of the60.22school's board of directors.Board of director meetings must 60.23 comply with chapter 13D. 60.24 (d) The granting or renewal of a charter by a sponsoring 60.25 entity must not be conditioned upon the bargaining unit status 60.26 of the employees of the school. 60.27 (e) The state board for charter schools annually must 60.28 provide timely financial management training to newly elected 60.29 members of a charter school board of directors and ongoing 60.30 training to other members of a charter school board of 60.31 directors. Training must address ways to: 60.32 (1) proactively assess opportunities for a charter school 60.33 to maximize all available revenue sources; 60.34 (2) establish and maintain complete, auditable records for 60.35 the charter school; 60.36 (3) establish proper filing techniques; 61.1 (4) document formal actions of the charter school, 61.2 including meetings of the charter school board of directors; 61.3 (5) properly manage and retain charter school and student 61.4 records; 61.5 (6) comply with state and federal payroll recordkeeping 61.6 requirements; and 61.7 (7) address other similar factors that facilitate 61.8 establishing and maintaining complete records on the charter 61.9 school's operations. 61.10 [EFFECTIVE DATE.] This section is effective for the 61.11 2001-2002 school year and later. 61.12 Sec. 25. Minnesota Statutes 2000, section 124D.10, is 61.13 amended by adding a subdivision to read: 61.14 Subd. 6a. [AUDIT REPORT.] The charter school must submit 61.15 an audit report to the commissioner by December 31 each year. 61.16 The charter school, with the assistance of the auditor 61.17 conducting the audit, must include with the report a copy of all 61.18 charter school agreements for corporate management services. If 61.19 the entity that provides the professional services to the 61.20 charter school is exempt from taxation under section 501 of the 61.21 Internal Revenue Code of 1986, that entity must file with the 61.22 commissioner by February 15 a copy of the annual return required 61.23 under section 6033 of the Internal Revenue Code of 1986. If the 61.24 commissioner receives as part of the audit report a management 61.25 letter indicating that a material weakness exists in the 61.26 financial reporting systems of a charter school, the charter 61.27 school must submit a written report to the commissioner 61.28 explaining how the material weakness will be resolved. Upon the 61.29 request of an individual, the charter school must make available 61.30 in a timely fashion the minutes of meetings of members, the 61.31 board of directors, and committees having any of the authority 61.32 of the board of directors, and statements showing the financial 61.33 result of all operations and transactions affecting income and 61.34 surplus during the school's last annual accounting period and a 61.35 balance sheet containing a summary of its assets and liabilities 61.36 as of the closing date of the accounting period. 62.1 [EFFECTIVE DATE.] This section is effective for the 62.2 2001-2002 school year and later. 62.3 Sec. 26. Minnesota Statutes 2000, section 124D.10, 62.4 subdivision 15, is amended to read: 62.5 Subd. 15. [REVIEW AND COMMENT.] The department must review 62.6 and comment on the evaluation, by the sponsor, of the 62.7 performance of a charter school before the charter school's 62.8 contract is renewed. A sponsor shall monitor and evaluate the 62.9 fiscal and student performance of the school, and may for this 62.10 purpose annually assessthe schoola charter school: (1) in its 62.11 first, second, or third year of operation up to$10$30 per 62.12 student up to a maximum of$3,500$10,000; and (2) in its fourth 62.13 or a subsequent year of operation up to $10 per student up to a 62.14 maximum of $3,500. The information for the review and comment 62.15 shall be reported by the sponsor to the commissioner of 62.16 children, families, and learning in a timely manner. 62.17 Periodically, the commissioner shall report trends or 62.18 suggestions based on the evaluation of charter school contracts 62.19 to the education committees of the state legislature. 62.20 Sec. 27. Minnesota Statutes 2000, section 124D.10, is 62.21 amended by adding a subdivision to read: 62.22 Subd. 23a. [EXCESSIVE LEASE COSTS; RECOVERY.] (a) This 62.23 subdivision does not apply to a lease in which: 62.24 (1) the lessor and lessee are not related parties, as 62.25 defined in this subdivision, as determined in writing by the 62.26 commissioner prior to the lease becoming effective; or 62.27 (2) the lessor and lessee are related parties, but the 62.28 lessor is a nonprofit corporation under chapter 317A or a 62.29 cooperative under chapter 308A. 62.30 (b) For purposes of this subdivision: 62.31 (1) A "related party" is an affiliate or close relative of 62.32 the other party in question, an affiliate of a close relative, 62.33 or a close relative of an affiliate. 62.34 (2) "Affiliate" means a person that directly, or indirectly 62.35 through one or more intermediaries, controls, or is controlled 62.36 by, or is under common control with, another person. 63.1 (3) "Close relative" means an individual whose relationship 63.2 by blood, marriage, or adoption to another individual is no more 63.3 remote than first cousin. 63.4 (4) "Person" means an individual or entity of any kind. 63.5 (5) "Control" includes the terms "controlling," "controlled 63.6 by," and "under common control with" and means the possession, 63.7 direct or indirect, of the power to direct or cause the 63.8 direction of the management, operations, or policies of a 63.9 person, whether through the ownership of voting securities, by 63.10 contract, or otherwise. 63.11 (c) A lease of real property to be used for a charter 63.12 school, not excluded in paragraph (a), must contain the 63.13 following statement: "This lease is subject to Minnesota 63.14 Statutes, section 124D.10, subdivision 23a." 63.15 (d) A lease described in paragraph (c) does not go into 63.16 effect, and no rent or other payments may be made under the 63.17 lease, until the commissioner or a party to the lease has 63.18 recorded with the county recorder or filed with the registrar of 63.19 titles, whichever is appropriate, a document entitled "Notice of 63.20 Lien," stating that the commissioner of children, families, and 63.21 learning of the state of Minnesota claims a lien under this 63.22 subdivision on the real property, including fixtures. The 63.23 notice of lien must contain a legal description of the leased 63.24 real property, be signed and acknowledged by the commissioner, 63.25 and meet all other applicable requirements for recording or 63.26 filing. The lessor or lessee, as agreed between them, shall pay 63.27 the recording or filing fee. 63.28 (e) A lease described in paragraph (c) must contain the 63.29 following clause: "The lessor under this lease hereby grants to 63.30 the commissioner of children, families, and learning of the 63.31 state of Minnesota a lien under Minnesota Statutes, section 63.32 124D.10, subdivision 23a, on the real property, including 63.33 fixtures, that is included in this lease. This lien is 63.34 evidenced by a recorded or filed notice of lien, as required by 63.35 that subdivision." 63.36 (f) A lien granted under this subdivision secures the 64.1 rights of the commissioner under paragraph (g). 64.2 (g) The commissioner may recover from the lessor the amount 64.3 of rent or other payments made under this lease, to the extent 64.4 that the rent or other payments exceed the fair market rental 64.5 value of the real property, as determined by the commissioner. 64.6 If the lessor is not the holder of fee title to the real 64.7 property, the commissioner's right of recovery extends to the 64.8 holder of fee title if the lessor and holder of fee title are 64.9 related parties as defined in this subdivision. 64.10 (h) The lien created under this subdivision applies only to 64.11 the equity in the real property of the lessor or other party 64.12 against whom the commissioner has a right of recovery under 64.13 paragraph (g). The lien created in this subdivision is 64.14 subordinate to the interest of any mortgagee or other lienholder 64.15 of the property, whether the mortgage or other lien is prior or 64.16 subsequent to the recording or filing of the lien created in 64.17 this subdivision, except that this provision does not apply to a 64.18 mortgagee or other lienholder that is a related party to the 64.19 lessor or other party against whom the commissioner has a right 64.20 of recovery under paragraph (g). 64.21 (i) The lien created in this subdivision is not enforceable 64.22 against, and is subordinate to, the interest of a good faith 64.23 purchaser for value of the real property who (1) is not a 64.24 related party of the lessor or of another party against whom the 64.25 commissioner has a right of recovery under paragraph (g), and 64.26 (2) purchases the real property before the recording or filing 64.27 of the notice of lien. 64.28 (j) If the parties to a lease to which this subdivision 64.29 applies fail to record or file the notice of lien, the 64.30 commissioner may do so at any time. 64.31 (k) If, or to the extent that, the commissioner determines 64.32 that the commissioner has no right of recovery under paragraph 64.33 (g), the commissioner shall provide to the lessor a release or 64.34 partial release of this lien. Any recording or filing fees for 64.35 the release are the responsibility of the lessor. 64.36 (l) A decision or action of the commissioner under this 65.1 subdivision may be appealed under chapter 14. 65.2 (m) A lien created under this section may be foreclosed in 65.3 the manner provided in chapter 581, with reasonable attorney 65.4 fees to be determined by the court. 65.5 [EFFECTIVE DATE.] This section is effective the day 65.6 following final enactment and applies to any charter school 65.7 organized as of January 1, 2001, or thereafter. 65.8 Sec. 28. Minnesota Statutes 2000, section 124D.11, 65.9 subdivision 4, is amended to read: 65.10 Subd. 4. [BUILDING LEASE AID.] When a charter school finds 65.11 it economically advantageous to rent or lease a building or land 65.12 for any instructional purposes and it determines that the total 65.13 operating capital revenue under section 126C.10, subdivision 13, 65.14 is insufficient for this purpose, it may apply to the 65.15 commissioner for building lease aid for this purpose.Criteria65.16for aid approval and revenue uses shall be as defined for the65.17building lease levy in section 126C.40, subdivision 1,65.18paragraphs (a) and (b).The commissioner must review and either 65.19 approve or deny a lease aid application using the following 65.20 criteria: 65.21 (1) the reasonableness of the price based on current market 65.22 values; 65.23 (2) the appropriateness of the space for the proposed 65.24 activity; 65.25 (3) the extent to which the lease conforms to applicable 65.26 state laws and rules; and 65.27 (4) the appropriateness of the proposed lease in the 65.28 context of the space needs and financial circumstances of the 65.29 charter school. 65.30 A charter school must not use the building lease aid it receives 65.31 for custodial, maintenance service, utility, or other operating 65.32 costs. The amount of building lease aid per pupil unit served 65.33 for a charter school for any year shall not exceed the lesser of 65.34 (a) 90 percent of the approved cost or (b) the product of the 65.35 pupil units served for the current school year times $1,500. 65.36 Sec. 29. Minnesota Statutes 2000, section 124D.11, 66.1 subdivision 9, is amended to read: 66.2 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 66.3 Notwithstanding section 127A.45, subdivision 3, aid payments for 66.4 the current fiscal year to a charter school not in its first 66.5 year of operation shall be of an equal amount on each of the 23 66.6 payment dates. A charter school in its first year of operation 66.7 shall receive, on its first payment date, ten percent of its 66.8 cumulative amount guaranteed for the year and 22 payments of an 66.9 equal amount thereafter the sum of which shall be 90 percent of 66.10 the cumulative amount guaranteed. 66.11 (b) Notwithstanding section 127A.45, subdivision 3, and 66.12 paragraph (a), 90 percent of the start-up cost aid under 66.13 subdivision 8 shall be paid within 45 days after the first day 66.14 of student attendance for that school year. 66.15 (c) In order to receive state aid payments under this 66.16 subdivision, a charter school in its first three years of 66.17 operation must submit a quarterly enrollment report to the 66.18 department of children, families, and learning. The report must 66.19 list each student by grade, show the student's start and end 66.20 dates, if any, with the charter school, and for any student 66.21 participating in a learning year program, the report must list 66.22 the hours and times of learning year activities. The report 66.23 must be submitted not more than two weeks after the end of the 66.24 calendar quarter to the department. The department must develop 66.25 a web-based reporting form for charter schools to use when 66.26 submitting enrollment reports. A charter school in its fourth 66.27 and subsequent year of operation must submit enrollment 66.28 information to the department in the form and manner requested 66.29 by the department. 66.30 Sec. 30. Minnesota Statutes 2000, section 124D.128, 66.31 subdivision 1, is amended to read: 66.32 Subdivision 1. [PROGRAM ESTABLISHED.] A learning year 66.33 program provides instruction throughout the year. A pupil may 66.34 participate in the program and to attain or accelerate 66.35 attainment of grade level requirements or graduation 66.36 requirements. A learning year program may begin after the close 67.1 of the regular school year in June. The program may be for 67.2 students in one or more grade levels from kindergarten through 67.3 grade 12. 67.4Students may participate in the program if they reside in:67.5(1) a district that has been designated a learning year67.6site under subdivision 2;67.7(2) a district that is a member of the same education67.8district as a site; or67.9(3) a district that participates in the same area learning67.10center program as a site.67.11 [EFFECTIVE DATE.] This section is effective the day 67.12 following final enactment. 67.13 Sec. 31. Minnesota Statutes 2000, section 124D.128, 67.14 subdivision 2, is amended to read: 67.15 Subd. 2. [COMMISSIONER DESIGNATION.] (a) An area learning 67.16 center designated by the state must be a site. To be 67.17 designated, a district or center must demonstrate to the 67.18 commissioner that it will: 67.19 (1) provide a program of instruction that permits pupils to 67.20 receive instruction throughout the entire year; and 67.21 (2) maintain a record system that, for purposes of section 67.22 126C.05, permits identification of membership attributable to 67.23 pupils participating in the program. The record system and 67.24 identification must ensure that the program will not have the 67.25 effect of increasing the total number of pupil units 67.26 attributable to an individual pupil as a result of a learning 67.27 year program. The record system must include the date the pupil 67.28 originally enrolled in a learning year program, the pupil's 67.29 grade level, the date of each grade promotion, the average daily 67.30 membership generated in each grade level, the number of credits 67.31 or standards earned, and the number needed to graduate. 67.32 (b) A student who has not completed a school district's 67.33 graduation requirements may continue to enroll in courses the 67.34 student must complete in order to graduate until the student 67.35 satisfies the district's graduation requirements or the student 67.36 is 21 years old, whichever comes first. 68.1 [EFFECTIVE DATE.] This section is effective the day 68.2 following final enactment. 68.3 Sec. 32. Minnesota Statutes 2000, section 124D.128, 68.4 subdivision 3, is amended to read: 68.5 Subd. 3. [STUDENT PLANNING.] A district must inform all 68.6 pupils and their parents about the learning year program and 68.7 that participation in the program is optional. A continual 68.8 learning plan must be developed at least annually for each pupil 68.9 with the participation of the pupil, parent or guardian, 68.10 teachers, and other staff; each participant must sign and date 68.11 the plan. The plan must specify the learning experiences that 68.12 must occureachduring the entire fiscal year and, for secondary 68.13 students, for graduation. The plan must include: 68.14 (1) the pupil's learning objectives and experiences, 68.15 including courses or credits the pupil plans to complete each 68.16 year and, for a secondary pupil, the graduation requirements the 68.17 student must complete; 68.18 (2) the assessment measurements used to evaluate a pupil's 68.19 objectives; 68.20 (3) requirements for grade level or other appropriate 68.21 progression; and 68.22 (4) for pupils generating more than one average daily 68.23 membership in a given grade, an indication of which objectives 68.24 were unmet. 68.25 The plan may be modified to conform to district schedule 68.26 changes. The district may not modify the plan if the 68.27 modification would result in delaying the student's time of 68.28 graduation. 68.29 Sec. 33. Minnesota Statutes 2000, section 124D.128, 68.30 subdivision 6, is amended to read: 68.31 Subd. 6. [REVENUE COMPUTATION AND REPORTING.] Aid and levy 68.32 revenue computations must be based on the total number of hours 68.33 of education programs for pupils in average daily membership for 68.34 each fiscal year.For purposes of section 126C.05,Average 68.35 daily membership shall be computedby dividing the total number68.36of hours of participation for the fiscal year by the minimum69.1number of hours for a year determined for the appropriate grade69.2levelunder section 126C.05, subdivision 15. Hours of 69.3 participation that occur after the close of the regular 69.4 instructional year and before July 1 must be attributed to the 69.5 following fiscal year.Thirty hours may be used for teacher69.6workshops, staff development, or parent-teacher conferences. As69.7part of each pilot program, the department and each district69.8must report and evaluate the changes needed to adjust the dates69.9of the fiscal year for aid and levy computation and fiscal year69.10reporting.For revenue computation purposes, the learning year 69.11 program shall generate revenue based on the formulas for the 69.12 fiscal year in which the services are provided. The dates a 69.13 participating pupil is promoted must be reported in a timely 69.14 manner to the department. 69.15State aid and levy revenue computation for the learning69.16year programs begins July 1, 1988, for fiscal year 1989.69.17 Sec. 34. Minnesota Statutes 2000, section 124D.74, 69.18 subdivision 1, is amended to read: 69.19 Subdivision 1. [PROGRAM DESCRIBED.] American Indian 69.20language and cultureeducation programs are programs in public 69.21 elementary and secondary schools, nonsectarian nonpublic, 69.22 community, tribal, or alternative schools enrolling American 69.23 Indian children designed to: 69.24 (1)tosupport post-secondary preparation for pupils; 69.25 (2) support the academic achievement of American Indian 69.26 students with identified focus to improve reading and mathematic 69.27 skills; 69.28 (3) make the curriculum more relevant to the needs, 69.29 interests, and cultural heritage of American Indian pupils; 69.30(2) to(4) provide positive reinforcement of the self-image 69.31 of American Indian pupils;and69.32(3) to(5) develop intercultural awareness among pupils, 69.33 parents, and staff; and 69.34 (6) supplement, not supplant, state and federal educational 69.35 and cocurricular programs. 69.36 Program components may include:instruction in American Indian70.1language, literature, history, and culturedevelopment of 70.2 support components for students in the areas of academic 70.3 achievement, retention, and attendance; development of support 70.4 components for staff, including in-service training and 70.5 technical assistance in methods of teaching American Indian 70.6 pupils; research projects, including experimentation with and 70.7 evaluation of methods of relating to American Indian pupils; 70.8 provision of personal and vocational counseling to American 70.9 Indian pupils; modification of curriculum, instructional 70.10 methods, and administrative procedures to meet the needs of 70.11 American Indian pupils; andestablishment of cooperative70.12liaisons with nonsectarian nonpublic, community, tribal or70.13alternative schools offering curricula which reflect American70.14Indian culturesupplemental instruction in American Indian 70.15 language, literature, history, and culture. Districts offering 70.16 programs may make contracts for the provision of program 70.17 components bynonsectarian nonpublic, community, tribal or70.18alternative schoolsestablishing cooperative liaisons with 70.19 tribal programs and American Indian social service agencies. 70.20 These programs may also be provided as components of early 70.21 childhood and family education programs. 70.22 Sec. 35. Minnesota Statutes 2000, section 124D.74, 70.23 subdivision 2, is amended to read: 70.24 Subd. 2. [VOLUNTARY ENROLLMENT.] Enrollment in American 70.25 Indianlanguage and cultureeducation programs must be 70.26 voluntary. School districts and participating schools must make 70.27 affirmative efforts to encourage participation. They shall 70.28 encourage parents to visit classes or come to school for a 70.29 conference explaining the nature of the program and provide 70.30 visits by school staff to parents' homes to explain the nature 70.31 of the program. 70.32 Sec. 36. Minnesota Statutes 2000, section 124D.74, 70.33 subdivision 3, is amended to read: 70.34 Subd. 3. [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 70.35 ENROLLMENT.] To the extent it is economically feasible, a 70.36 district or participating school may make provision for the 71.1 voluntary enrollment of non-American Indian children in the 71.2 instructional components of an American Indianlanguage and71.3cultureeducation program in order that they may acquire an 71.4 understanding of the cultural heritage of the American Indian 71.5 children for whom that particular program is designed. However, 71.6 in determining eligibility to participate in a program, priority 71.7 must be given to American Indian children. American Indian 71.8 children and other children enrolled in an existing nonpublic 71.9 school system may be enrolled on a shared time basis in American 71.10 Indianlanguage and cultureeducation programs. 71.11 Sec. 37. Minnesota Statutes 2000, section 124D.74, 71.12 subdivision 4, is amended to read: 71.13 Subd. 4. [LOCATION OF PROGRAMS.] American Indianlanguage71.14and cultureeducation programs must be located in facilities in 71.15 which regular classes in a variety of subjects are offered on a 71.16 daily basis. Programs may operate on an extended day or 71.17 extended year basis. 71.18 Sec. 38. Minnesota Statutes 2000, section 124D.74, 71.19 subdivision 6, is amended to read: 71.20 Subd. 6. [NONVERBAL COURSES AND EXTRACURRICULAR 71.21 ACTIVITIES.] In predominantly nonverbal subjects, such as art, 71.22 music, and physical education, American Indian children shall 71.23 participate fully and on an equal basis with their 71.24 contemporaries in school classes provided for these subjects. 71.25 Every school district or participating school shall ensure to 71.26 children enrolled in American Indianlanguage and culture71.27 education programs an equal and meaningful opportunity to 71.28 participate fully with other children in all extracurricular 71.29 activities. This subdivision shall not be construed to prohibit 71.30 instruction in nonverbal subjects or extracurricular activities 71.31 which relate to the cultural heritage of the American Indian 71.32 children, or which are otherwise necessary to accomplish the 71.33 objectives described in sections 124D.71 to 124D.82. 71.34 Sec. 39. Minnesota Statutes 2000, section 124D.75, 71.35 subdivision 6, is amended to read: 71.36 Subd. 6. [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 72.1 Any person licensed under this section shall be eligible for 72.2 employment by a school board or a participating school as a 72.3 teacher in an American Indianlanguage and cultureeducation 72.4 program in which the American Indian language or culture in 72.5 which the person is licensed is taught. A school district or 72.6 participating school may prescribe only those additional 72.7 qualifications for teachers licensed under this section as are 72.8 approved by the board of teaching. Any school board or 72.9 participating school upon request may be exempted from the 72.10 licensure requirements of this section in the hiring of one or 72.11 more American Indian language and culture education teachers for 72.12 any school year in which compliance would, in the opinion of the 72.13 commissioner, create a hardship in the securing of the teachers. 72.14 Sec. 40. Minnesota Statutes 2000, section 124D.76, is 72.15 amended to read: 72.16 124D.76 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 72.17 In addition to employing American Indian language and 72.18 culture education teachers, each district or participating 72.19 school providing programs pursuant to sections 124D.71 to 72.20 124D.82 may employ teachers' aides. Teachers' aides must not be 72.21 employed for the purpose of supplanting American Indian language 72.22 and culture education teachers. 72.23 Any district or participating school which conducts 72.24 American Indianlanguage and cultureeducation programs pursuant 72.25 to sections 124D.71 to 124D.82 must employ one or more full-time 72.26 or part-time community coordinators if there are 100 or more 72.27 students enrolled in the program. Community coordinators shall 72.28 promote communication understanding, and cooperation between the 72.29 schools and the community and shall visit the homes of children 72.30 who are to be enrolled in an American Indianlanguage and72.31cultureeducation program in order to convey information about 72.32 the program. 72.33 Sec. 41. Minnesota Statutes 2000, section 124D.78, 72.34 subdivision 1, is amended to read: 72.35 Subdivision 1. [PARENT COMMITTEE.] School boards and 72.36 American Indian schools must provide for the maximum involvement 73.1 of parents of children enrolled in education programs,including73.2language and culture education programs,programs for elementary 73.3 and secondary grades, special education programs, and support 73.4 services. Accordingly, the board of a school district in which 73.5 there are ten or more American Indian children enrolled and each 73.6 American Indian school must establish a parent committee. If a 73.7 committee whose membership consists of a majority of parents of 73.8 American Indian children has been or is established according to 73.9 federal, tribal, or other state law, that committee may serve as 73.10 the committee required by this section and is subject to, at 73.11 least, the requirements of this subdivision and subdivision 2. 73.12 The parent committee must develop its recommendations in 73.13 consultation with the curriculum advisory committee required by 73.14 section 120B.11, subdivision 3. This committee must afford 73.15 parents the necessary information and the opportunity 73.16 effectively to express their views concerning all aspects of 73.17 American Indian education and the educational needs of the 73.18 American Indian children enrolled in the school or program. The 73.19 committee must also address the need for adult education 73.20 programs for American Indian people in the community. The board 73.21 or American Indian school must ensure that programs are planned, 73.22 operated, and evaluated with the involvement of and in 73.23 consultation with parents of children served by the programs. 73.24 Sec. 42. Minnesota Statutes 2000, section 124D.81, 73.25 subdivision 1, is amended to read: 73.26 Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the 73.27 commissioner of children, families, and learning must make 73.28 grants to no fewer than six American Indianlanguage and culture73.29 education programs. At least three programs must be in urban 73.30 areas and at least three must be on or near reservations. The 73.31 board of a local district, a participating school or a group of 73.32 boards may develop a proposal for grants in support of American 73.33 Indianlanguage and cultureeducation programs. Proposals may 73.34 provide for contracts for the provision of program components by 73.35 nonsectarian nonpublic, community, tribal, or alternative 73.36 schools. The commissioner shall prescribe the form and manner 74.1 of application for grants, and no grant shall be made for a 74.2 proposal not complying with the requirements of sections 124D.71 74.3 to 124D.82. The commissioner must submit all proposals to the 74.4 state advisorytask forcecommittee on American Indianlanguage74.5and cultureeducation programs for its recommendations 74.6 concerning approval, modification, or disapproval and the 74.7 amounts of grants to approved programs. 74.8 Sec. 43. Minnesota Statutes 2000, section 124D.81, 74.9 subdivision 3, is amended to read: 74.10 Subd. 3. [ADDITIONAL REQUIREMENTS.] Each district 74.11 receiving a grant under this section must each year conduct a 74.12 count of American Indian children in the schools of the 74.13 district; test for achievement; identify the extent of other 74.14 educational needs of the children to be enrolled in the American 74.15 Indianlanguage and cultureeducation program; and classify the 74.16 American Indian children by grade, level of educational 74.17 attainment, age and achievement. Participating schools must 74.18 maintain records concerning the needs and achievements of 74.19 American Indian children served. 74.20 Sec. 44. Minnesota Statutes 2000, section 124D.81, 74.21 subdivision 5, is amended to read: 74.22 Subd. 5. [RECORDS.] Participating schools and districts 74.23 must keep records and afford access to them as the commissioner 74.24 finds necessary to ensure that American Indianlanguage and74.25cultureeducation programs are implemented in conformity with 74.26 sections 124D.71 to 124D.82. Each school district or 74.27 participating school must keep accurate, detailed, and separate 74.28 revenue and expenditure accounts for pilot American Indian 74.29language and cultureeducation programs funded under this 74.30 section. 74.31 Sec. 45. Minnesota Statutes 2000, section 124D.81, 74.32 subdivision 6, is amended to read: 74.33 Subd. 6. [MONEY FROM OTHER SOURCES.] A district or 74.34 participating school providing American Indianlanguage and74.35cultureeducation programs shall be eligible to receive moneys 74.36 for these programs from other government agencies and from 75.1 private sources when the moneys are available. 75.2 Sec. 46. Minnesota Statutes 2000, section 124D.81, 75.3 subdivision 7, is amended to read: 75.4 Subd. 7. [EXCEPTIONS.] Nothing in sections 124D.71 to 75.5 124D.82 shall be construed as prohibiting a district or school 75.6 from implementing an American Indianlanguage and culture75.7 education program which is not in compliance with sections 75.8 124D.71 to 124D.82 if the proposal and plan for that program is 75.9 not funded pursuant to this section. 75.10 Sec. 47. Minnesota Statutes 2000, section 124D.86, 75.11 subdivision 3, is amended to read: 75.12 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 2000 and 75.13 later fiscal years, integration revenue equals the following 75.14 amounts: 75.15 (1)for independent school district No. 709, Duluth, $20775.16times the adjusted pupil units for the school year;75.17(2)for independent school district No. 625, St. Paul, $446 75.18 times the adjusted pupil units for the school year; 75.19(3)(2) for special school district No. 1, Minneapolis, 75.20 $536 times the adjusted pupil units for the school year;and75.21 (3) for a district not listed in clause (1) or (2) that 75.22 must implement a plan under Minnesota Rules, parts 3535.0100 to 75.23 3535.0180, where the district's enrollment of protected 75.24 students, as defined under Minnesota Rules, part 3535.0110, 75.25 exceeds 17 percent, and that is located in the rural equity 75.26 region as defined under section 126C.10, subdivision 28, the 75.27 lesser of (i) the actual cost of implementing the plan during 75.28 the fiscal year minus the aid received under subdivision 6, or 75.29 (ii) $150 times the adjusted pupil units for the school year; 75.30 (4) for a district not listed in clause (1), (2), or (3) 75.31 that is required to implement a plan according to the 75.32 requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 75.33 the lesser of 75.34 (i) the actual cost of implementing the plan during the 75.35 fiscal year minus the aid received under subdivision 6, or 75.36 (ii) $93 times the adjusted pupil units for the school year. 76.1 Any money received by districts in clauses (1) to (3) which 76.2 exceeds the amount received in fiscal year 2000 shall be subject 76.3 to the budget requirements in subdivision 1a.; and 76.4 (5) for a member district of a multidistrict integration 76.5 collaborative that files a plan with the commissioner, but is 76.6 not contiguous to a racially isolated district, integration 76.7 revenue equals the amount defined in clause (4). 76.8 [EFFECTIVE DATE.] This section is effective for aid payable 76.9 in fiscal year 2002. 76.10 Sec. 48. Minnesota Statutes 2000, section 124D.86, 76.11 subdivision 6, is amended to read: 76.12 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 76.13 integration aid under subdivision 5 must be adjusted for each 76.14 pupil residing in a district eligible for integration revenue 76.15 under subdivision 3, clause (1), (2), or (3), and attending a 76.16 nonresident district under sections 123A.05 to 123A.08, 124D.03, 76.17 124D.06, 124D.07, and 124D.08, that is not eligible for 76.18 integration revenue under subdivision 3, clause (1), (2), or 76.19 (3), and has implemented a plan under Minnesota Rules, parts 76.20 3535.0100 to 3535.0180, if the enrollment of the pupil in the 76.21 nonresident district contributes to desegregation or integration 76.22 purposes. The adjustments must be made according to this 76.23 subdivision. 76.24 (b) Aid paid to a district serving nonresidents must be 76.25 increased by an amount equal to the revenue per pupil unit of 76.26 the resident district under subdivision 3, clause (1), (2), or 76.27 (3), minus the revenue attributable to the pupil in the 76.28 nonresident district under subdivision 3,clauseclauses (4) and 76.29 (5), for the time the pupil is enrolled in the nonresident 76.30 district. 76.31 [EFFECTIVE DATE.] This section is effective for aid payable 76.32 in fiscal year 2000, and for taxes payable in 2002. 76.33 Sec. 49. Minnesota Statutes 2000, section 126C.05, 76.34 subdivision 15, is amended to read: 76.35 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 76.36 enrolled in a learning year program under section 124D.128, an 77.1 area learning center under sections 123A.05 and 123A.06, an 77.2 alternative program approved by the commissioner, or a contract 77.3 alternative program under section 124D.68, subdivision 3, 77.4 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 77.5 school year for a secondary student, more than 935 hours in a 77.6 school year for an elementary student, or more than 425 hours in 77.7 a school year for a kindergarten student without a disability, 77.8 that pupil may be counted as more than one pupil in average 77.9 daily membership. The amount in excess of one pupil must be 77.10 determined by the ratio of the number of hours of instruction 77.11 provided to that pupil in excess of: (i) the greater of 1,020 77.12 hours or the number of hours required for a full-time secondary 77.13 pupil in the district to 1,020 for a secondary pupil; (ii) the 77.14 greater of 935 hours or the number of hours required for a 77.15 full-time elementary pupil in the district to 935 for an 77.16 elementary pupil in grades 1 through 6; and (iii) the greater of 77.17 425 hours or the number of hours required for a full-time 77.18 kindergarten student without a disability in the district to 425 77.19 for a kindergarten student without a disability. Hours that 77.20 occur after the close of the instructional year in June shall be 77.21 attributable to the following fiscal year. A kindergarten 77.22 student must not be counted as more than 1.2 pupils in average 77.23 daily membership under this subdivision. 77.24 (b)(i) To receive general education revenue for a pupil in 77.25 an alternative program that has an independent study component, 77.26 a district must meet the requirements in this paragraph. The 77.27 district must develop,withfor the pupil, a continual learning 77.28 planfor the pupil. A district must allow a minor pupil's77.29parent or guardian to participate in developing the plan, if the77.30parent or guardian wants to participate. The plan must identify77.31the learning experiences and expected outcomes needed for77.32satisfactory credit for the year and for graduation. The plan77.33must be updated each yearconsistent with section 124D.128, 77.34 subdivision 3. Each school district that has a state-approved 77.35 public alternative program must reserve revenue in an amount 77.36 equal to at least 90 percent of the district average general 78.1 education revenue per pupil unit less compensatory revenue per 78.2 pupil unit times the number of pupil units generated by students 78.3 attending a state-approved public alternative program. The 78.4 amount of reserved revenue available under this subdivision may 78.5 only be spent for program costs associated with the 78.6 state-approved public alternative program. Compensatory revenue 78.7 must be allocated according to section 126C.15, subdivision 2. 78.8 (ii) General education revenue for a pupil in an approved 78.9 alternative program without an independent study component must 78.10 be prorated for a pupil participating for less than a full year, 78.11 or its equivalent. The district must develop a continual 78.12 learning plan for the pupil, consistent with section 124D.128, 78.13 subdivision 3. Each school district that has a state-approved 78.14 public alternative program must reserve revenue in an amount 78.15 equal to at least 90 percent of the district average general 78.16 education revenue per pupil unit less compensatory revenue per 78.17 pupil unit times the number of pupil units generated by students 78.18 attending a state-approved public alternative program. The 78.19 amount of reserved revenue available under this subdivision may 78.20 only be spent for program costs associated with the 78.21 state-approved public alternative program. Compensatory revenue 78.22 must be allocated according to section 126C.15, subdivision 2. 78.23 (iii) General education revenue for a pupil in an approved 78.24 alternative program that has an independent study component must 78.25 be paid for each hour of teacher contact time and each hour of 78.26 independent study time completed toward a credit or graduation 78.27 standards necessary for graduation. Average daily membership 78.28 for a pupil shall equal the number of hours of teacher contact 78.29 time and independent study time divided by 1,020. 78.30 (iv) For an alternative program having an independent study 78.31 component, the commissioner shall require a description of the 78.32 courses in the program, the kinds of independent study involved, 78.33 the expected learning outcomes of the courses, and the means of 78.34 measuring student performance against the expected outcomes. 78.35 Sec. 50. Minnesota Statutes 2000, section 179A.20, is 78.36 amended by adding a subdivision to read: 79.1 Subd. 2b. [STRUCTURALLY BALANCED SCHOOL DISTRICT 79.2 CONTRACTS.] (a) A school board must not enter into a contract 79.3 with the exclusive representative of the teachers that is not 79.4 structurally balanced for a time period that corresponds to the 79.5 term of the contract and the following year beginning on the 79.6 July 1 following the specified end date of that contract. 79.7 Failure to enter into a contract to implement a proposed 79.8 contract settlement or an interest arbitration decision that 79.9 violates the provisions of this subdivision shall not be an 79.10 unfair labor practice under section 179A.13, subdivision 2. The 79.11 provisions of section 123B.05 shall not apply to a contract or 79.12 an interest arbitration decision that is not structurally 79.13 balanced and that is not approved by the date specified therein. 79.14 (b) The school board must make a good-faith determination 79.15 as to whether a proposed contract settlement is structurally 79.16 balanced for the time period specified prior to its approval of 79.17 that contract. The resolution adopted by the school board 79.18 making the determination that the proposed contract is 79.19 structurally balanced must include or incorporate written 79.20 findings and specific calculations to support the 79.21 determination. The findings and calculations must be available 79.22 to members of the school board and the public at the meeting at 79.23 which the resolution is adopted. A copy of the resolution with 79.24 supporting findings and calculations shall also be attached to 79.25 the uniform collective bargaining agreement settlement document 79.26 filed with the commissioner of finance under section 179A.07, 79.27 subdivision 7. 79.28 (c) An arbitrator in an interest arbitration must make a 79.29 good-faith determination as to whether an interest arbitration 79.30 decision for a teacher contract is structurally balanced for the 79.31 time period specified and must prove that structural balance in 79.32 the decision. The school board must review the arbitrator's 79.33 decision to determine whether the arbitrator has correctly 79.34 determined that the arbitration decision is structurally 79.35 balanced. If the school board makes a good-faith determination 79.36 that the arbitration decision is not structurally balanced for 80.1 the time period specified, it must return the decision to the 80.2 arbitrator with a detailed explanation of why the board has 80.3 determined that the decision is not structurally balanced. The 80.4 arbitrator must revise the decision until the school board can 80.5 make a good-faith determination that the decision is 80.6 structurally balanced for the time period specified. The 80.7 resolution adopted by the school board making the determination 80.8 that the interest arbitration decision is structurally balanced 80.9 must include or incorporate written findings and specific 80.10 calculations to support the determination. The findings and 80.11 calculations must be available to members of the school board 80.12 and the public at the meeting at which the resolution is 80.13 adopted. A copy of the resolution with supporting findings and 80.14 calculations shall also be attached to the uniform collective 80.15 bargaining agreement settlement document filed with the 80.16 commissioner of finance under section 179A.07, subdivision 7. 80.17 (d) In making a determination as to whether a contract 80.18 settlement or interest arbitration decision is structurally 80.19 balanced for the term of the contract and the following year, 80.20 the board shall review the general fund revenue and expenditure 80.21 projections for the three-year time period specified based on 80.22 laws in effect at the time the determination is made. 80.23 (1) Revenue projections must be based on the general 80.24 education and other formulas in effect for the time period 80.25 specified at the time the determination is made. 80.26 (2) Revenue projections must be based on pupil unit 80.27 projections for the time period specified. 80.28 (3) Expenditure projections must be based on the costs of 80.29 this contract and the projected costs of the contract with the 80.30 teachers for the third year of the time period specified. 80.31 (4) Expenditure projections must be based on the projected 80.32 seniority of the staff during each year of the time period 80.33 specified and on current teacher-to-student ratios. The 80.34 projections must include projected movement through contract 80.35 steps and lanes each year during the time period specified to 80.36 reflect increased seniority leading to step changes and 81.1 increased education or training leading to lane changes. 81.2 (5) Expenditure projections must include anticipated costs 81.3 of fringe benefits, including, but not limited to, health 81.4 insurance, during each year of the time period specified. 81.5 (6) Expenditure projections must include projected staff 81.6 retirements and the hiring of projected new teachers during the 81.7 time period specified. The projections must include projected 81.8 payouts of severance pay, accumulated sick leave or other leave 81.9 if any, vacation pay if any, and other benefits to retiring 81.10 employees or employees leaving employment in the district. 81.11 (7) Expenditure projections must include all other 81.12 projected contract-related general fund expenditures for the 81.13 time period specified. 81.14 (e) A school board may determine that a contract with the 81.15 exclusive representative of the employees is structurally 81.16 balanced for the time period specified if, taking into account 81.17 at least the projections specified in paragraph (d) and such 81.18 other projections as may be necessary, the projected general 81.19 fund expenditures for each year of the time period specified 81.20 will not exceed projected general fund revenues for that year. 81.21 [EFFECTIVE DATE.] This section is effective the day 81.22 following final enactment and applies to contracts between 81.23 school boards and exclusive representatives of teachers for the 81.24 time period July 1, 2001, to June 30, 2003, and thereafter. 81.25 Sec. 51. [ACCESS TO STATEWIDE TESTS AND STUDENTS' TEST 81.26 RESULTS.] 81.27 Subdivision 1. [TEST ACCESS.] Consistent with subdivisions 81.28 2 and 3 and Minnesota Statutes, section 120B.30, subdivision 1, 81.29 paragraph (f), the commissioner of children, families, and 81.30 learning shall make available copies of the statewide basic 81.31 skills tests and the Minnesota comprehensive assessments and 81.32 students' test results. 81.33 Subd. 2. [ACCESS TO BASIC SKILLS TESTS.] Beginning in 81.34 February 2002, the commissioner, on the date the results for the 81.35 February statewide basic skills tests are released, at the same 81.36 time also shall: 82.1 (1) make available to the public electronic copies of those 82.2 tests and accompanying answer sheets and mail to districts paper 82.3 copies of the tests and accompanying answer sheets; and 82.4 (2) make available to parents or guardians a copy of their 82.5 students' answers to the test questions. 82.6 The commissioner must release to a student's parent or guardian 82.7 a copy of the student's actual answer sheet upon receiving a 82.8 written request from that student's parent or guardian within a 82.9 reasonable time of the request. The requirements of this 82.10 paragraph apply only to those statewide basic skills tests 82.11 administered in February of any year. The commissioner must 82.12 allow a parent or guardian to examine a statewide basic skills 82.13 test administered in April or July and the student's 82.14 accompanying answer sheets upon receiving a written request from 82.15 that student's parent or guardian. 82.16 Subd. 3. [ACCESS TO MINNESOTA COMPREHENSIVE ASSESSMENTS.] 82.17 Beginning in the 2000-2001 school year, the commissioner shall 82.18 release copies of Minnesota comprehensive assessments previously 82.19 administered as follows: 82.20 (1) in the 2000-2001 school year, the commissioner shall 82.21 make available to the public electronic copies of the tests 82.22 administered in March 1999 and accompanying answer sheets; 82.23 (2) in the 2001-2002 school year, the commissioner shall 82.24 make available to the public electronic copies of the tests 82.25 administered in March 2000 and March 2001 and accompanying 82.26 answer sheets; and 82.27 (3) in the 2002-2003 school year, the commissioner shall 82.28 make available to the public electronic copies of the tests 82.29 administered in March 2002 and accompanying answer sheets. 82.30 Beginning in the 2002-2003 school year and later, the 82.31 commissioner shall release the tests administered in that school 82.32 year. Beginning in January 2003 and later, the commissioner, on 82.33 the date the results for the Minnesota comprehensive assessments 82.34 are released, at the same time also shall: 82.35 (1) make available to the public electronic copies of those 82.36 tests and accompanying answer sheets and mail to districts paper 83.1 copies of the tests and accompanying answer sheets; and 83.2 (2) make available to parents or guardians a copy of their 83.3 students' answers to the test questions. 83.4 The commissioner must release to a student's parent or guardian 83.5 a copy of the student's actual answer sheet upon receiving a 83.6 written request from that student's parent or guardian within a 83.7 reasonable time of the request. 83.8 Subd. 4. [TEST ACCESS POLICY.] If statewide elementary or 83.9 secondary level tests other than the basic skills tests or the 83.10 Minnesota comprehensive assessments are administered to 83.11 elementary or secondary students, the commissioner must adopt 83.12 and publish a policy to provide public or parental access to 83.13 copies of such tests and to students' accompanying test results, 83.14 consistent with the provisions of this section. 83.15 [EFFECTIVE DATE.] This section is effective the day 83.16 following final enactment. 83.17 Sec. 52. [ALTERNATIVE MODELS FOR DELIVERING EDUCATION; 83.18 EXPANDING THE FLEXIBLE LEARNING YEAR PROGRAM.] 83.19 Subdivision 1. [ESTABLISHMENT; GOAL.] A three-year pilot 83.20 project is established to permit participating school districts 83.21 and school sites approved by the commissioner of children, 83.22 families, and learning under subdivision 2 to use alternative 83.23 models for delivering education by expanding the flexible 83.24 learning year program under Minnesota Statutes, sections 124D.12 83.25 to 124D.127. The project is intended to explore effective 83.26 alternatives for delivering education, with the goal of 83.27 improving instruction and students' educational outcomes and 83.28 opportunities and increasing the cost-effectiveness of 83.29 educational programs. 83.30 Subd. 2. [ELIGIBILITY; APPLICATIONS.] The commissioner 83.31 shall make application forms available to school districts and 83.32 school sites interested in exploring effective alternative 83.33 models for delivering instruction during a redefined flexible 83.34 learning year as described in this section. Interested school 83.35 districts and school sites must have their application to 83.36 participate in this program first approved by the local school 84.1 board and a majority of teachers employed in the district or at 84.2 the site, respectively, after a public hearing on the matter. 84.3 Applications must be submitted to the commissioner by January 1, 84.4 2002. The application must describe how the applicant proposes 84.5 to realize the goal of this project, including what activities 84.6 and procedures the applicant proposes to develop and implement 84.7 and the specific changes in the learning year the applicant 84.8 requires to accomplish those activities and procedures. The 84.9 commissioner, consistent with the requirements of this section, 84.10 shall approve applications before March 1, 2002. 84.11 Subd. 3. [EXEMPTIONS.] (a) Notwithstanding other laws or 84.12 rules to the contrary, a participant in the pilot project under 84.13 this section is exempt from Minnesota Statutes, sections 120A.40 84.14 and 120A.41, through the 2004-2005 school year. Minnesota 84.15 Statutes, sections 124D.12 to 124D.127, apply through the 84.16 2004-2005 school year except to the extent that the provisions 84.17 of this section or the participant's learning year changes 84.18 conflict with particular provisions in Minnesota Statutes, 84.19 sections 124D.12 to 124D.127. 84.20 (b) Consistent with this section, a participant may adopt a 84.21 learning year calendar that allows the participant to suitably 84.22 fulfill the educational needs of its students using an 84.23 alternative learning year calendar. The commissioner must 84.24 provide participants with a formula for computing average daily 84.25 membership so that all formulas based upon average daily 84.26 membership are not affected as a result of participating in this 84.27 pilot project. 84.28 Subd. 4. [TECHNICAL ASSISTANCE.] The commissioner, at the 84.29 request of a participant, must provide technical assistance to 84.30 the participant. Also, the commissioner must assist 84.31 participants in developing and implementing a valid and uniform 84.32 procedure to evaluate the efficacy of their alternative learning 84.33 year calendar, consistent with the goals of this section. 84.34 Subd. 5. [EVALUATION; REPORT.] (a) Participants must 84.35 complete a formative and summative evaluation of their 84.36 experiences in delivering education under an alternative 85.1 learning year calendar. Participants must focus the evaluation 85.2 on the overall efficacy of the pilot project, including the 85.3 cost-effectiveness of educational programs and the extent to 85.4 which students' educational outcomes and opportunities 85.5 improved. Participants shall use their interim evaluations, 85.6 with the commissioner's approval, to modify their project where 85.7 appropriate. 85.8 (b) Participants shall submit to the commissioner a 85.9 progress report by September 1, 2004, and a final report by 85.10 January 1, 2006, evaluating the cost-effectiveness of 85.11 educational programs and the extent to which students' 85.12 educational outcomes and opportunities improved. The 85.13 commissioner shall compile the reports to present to the 85.14 committees in the legislature that deal with education policy 85.15 and education finance by March 1, 2006. When presenting the 85.16 report, the commissioner must recommend whether or not to 85.17 continue or expand this pilot project. 85.18 [EFFECTIVE DATE.] This section is effective the day 85.19 following final enactment. 85.20 Sec. 53. [FEDERAL FUNDS.] 85.21 The commissioner of children, families, and learning shall 85.22 use federal funds available for reading-related purposes to fund 85.23 grants under Minnesota Statutes, section 120B.12. 85.24 Sec. 54. [INTEGRATION LEVY.] 85.25 Subdivision 1. [AUTHORIZATION AMOUNT.] A district eligible 85.26 for integration revenue under Minnesota Statutes, section 85.27 124D.86, subdivision 3, clause (5), is authorized to levy for 85.28 integration revenue for 2001 payable 2002 taxes an amount up to 85.29 the district's integration levy limit for fiscal years 2002 and 85.30 2003. 85.31 Subd. 2. [LEVY RECOGNITION.] Notwithstanding Minnesota 85.32 Statutes, section 123B.75, subdivision 5, for a district 85.33 eligible for integration revenue under Minnesota Statutes, 85.34 section 124D.86, subdivision 3, clause (5), the full amount of 85.35 integration levy for taxes payable in 2002, attributable to 85.36 fiscal year 2002, shall be recognized in fiscal year 2002. 86.1 Sec. 55. [SCHOOLS' ACADEMIC AND FINANCIAL PERFORMANCE 86.2 EVALUATION; INDEPENDENT CONTRACTOR.] 86.3 (a) To assist taxpayers, educators, school board members, 86.4 and state and local officials in realizing their commitment to 86.5 improving student achievement and the management of school 86.6 systems, the commissioner of children, families, and learning 86.7 shall contract with an independent school evaluation services 86.8 contractor to evaluate and report on the academic and financial 86.9 performance of the state's independent school districts using 86.10 six core categories of analysis: 86.11 (1) school district expenditures; 86.12 (2) students' performance outcomes based on multiple 86.13 indicia including students' test scores, attendance rates, 86.14 dropout rates, and graduation rates; 86.15 (3) return on resources to determine the extent to which 86.16 student outcomes improve commensurate with increases in district 86.17 spending; 86.18 (4) school district finances, taxes, and debt to establish 86.19 the context for analyzing the district's return on resources 86.20 under clause (3); 86.21 (5) students' learning environment to establish the context 86.22 for analyzing the district's return on resources under clause 86.23 (3); and 86.24 (6) school district demographics to establish the 86.25 socioeconomic context for analyzing the district's return on 86.26 resources under clause (3). 86.27 (b) In order to compare the regional and socioeconomic 86.28 peers of particular school districts, monitor educational 86.29 changes over time and identify important educational trends, the 86.30 contractor shall use the six core categories of analysis to: 86.31 (1) identify allocations of baseline and incremental school 86.32 district spending; 86.33 (2) connect student achievement with expenditure patterns; 86.34 (3) track school district financial health; 86.35 (4) observe school district debt and capital spending 86.36 levels; and 87.1 (5) measure the return on a school district's educational 87.2 resources. 87.3 (c) The contractor under paragraph (a) shall evaluate and 87.4 report on the academic and financial performance of all school 87.5 districts. 87.6 (d) Consistent with paragraph (a), clause (2), the 87.7 evaluation and reporting of test scores must distinguish between: 87.8 (1) performance-based assessments; and 87.9 (2) academic, objective knowledge-based tests. 87.10 (e) The contractor must complete its written report and 87.11 submit it to the commissioner within 360 days of the date on 87.12 which the contract is signed. The commissioner immediately must 87.13 make the report available in a readily accessible format to 87.14 state and local elected officials, members of the public, 87.15 educators, parents, and other interested individuals. The 87.16 commissioner, upon receiving an individual's request, also must 87.17 make available all draft reports prepared by the contractor, 87.18 consistent with Minnesota Statutes, chapter 13. 87.19 Sec. 56. [TECHNICAL ASSISTANCE.] 87.20 (a) The department of children, families, and learning or 87.21 the state board of teaching, at a participant's request, must 87.22 assist teachers and school districts in designing the teacher 87.23 professional development standards and training interested 87.24 parties in assessing whether and at what level teachers are 87.25 attaining the standards, consistent with Minnesota Statutes, 87.26 sections 120B.32 and 120B.33. 87.27 (b) Teachers and school districts also are encouraged to 87.28 seek assistance from education districts, education 87.29 cooperatives, and other education organizations in designing the 87.30 teacher professional development standards and training teachers 87.31 and administrators in assessing whether and at what level 87.32 teachers are attaining the standards, consistent with Minnesota 87.33 Statutes, sections 120B.32 and 120B.33. 87.34 [EFFECTIVE DATE.] This section is effective the day 87.35 following final enactment. 87.36 Sec. 57. [PARTICIPATION IN ATHLETIC ACTIVITIES; MINNESOTA 88.1 STATE HIGH SCHOOL LEAGUE STUDY.] 88.2 The Minnesota state high school league must prepare a 88.3 written report by February 15, 2002, for the legislative 88.4 committees charged with overseeing kindergarten through grade 12 88.5 education policy that indicates the interest of charter school 88.6 students in participating in athletic activities available in 88.7 the students' resident district. The Minnesota state high 88.8 school league at least must: 88.9 (1) survey the students enrolled in the state's charter 88.10 schools to determine how interested the students are in 88.11 participating in various athletic activities offered by their 88.12 resident school district; 88.13 (2) review the ability of charter schools to independently 88.14 or through a cooperative sponsorship provide students with 88.15 various athletic activities; and 88.16 (3) determine whether the league's cooperative sponsorship 88.17 rules need to be amended to facilitate cooperative sponsorship 88.18 arrangements involving charter schools. The Minnesota state 88.19 high school league must cover the costs of this report. 88.20 [EFFECTIVE DATE.] This section is effective the day 88.21 following final enactment. 88.22 Sec. 58. [CHARTER SCHOOL CONTRACTS TEMPORARILY PERMITTED.] 88.23 Notwithstanding Minnesota Statutes, section 124D.10, 88.24 subdivision 3a, a school organized as a charter school as of the 88.25 2000-2001 school year may enter into a contract of up to $2,000 88.26 annually with a nonteacher board member until June 30, 2003, 88.27 when such a contract must expire. 88.28 Sec. 59. [SCIENCE LICENSURE.] 88.29 The board of teaching must issue a teaching license to an 88.30 applicant who qualifies to teach general science to students in 88.31 grades five to eight, or who qualifies to teach a specialty in 88.32 physics, chemistry, life science, or earth and space science to 88.33 students in grades nine to 12 if the applicant meets other 88.34 applicable licensure requirements, including the requirements of 88.35 Minnesota Statutes, section 122A.18, subdivision 8. 88.36 [EFFECTIVE DATE.] This section is effective the day 89.1 following final enactment. 89.2 Sec. 60. [APPROPRIATIONS.] 89.3 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 89.4 LEARNING.] The sums indicated in this section are appropriated 89.5 from the general fund to the department of children, families, 89.6 and learning for the fiscal years indicated. 89.7 Subd. 2. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 89.8 PROGRAMS.] (a) For students' advanced placement and 89.9 international baccalaureate examination fees under Minnesota 89.10 Statutes 2000, section 120B.13, subdivision 3, and the training 89.11 and related costs for teachers and other interested educators 89.12 under Minnesota Statutes 2000, section 120B.13, subdivision 1: 89.13 $2,000,000 ..... 2002 89.14 $2,000,000 ..... 2003 89.15 Any funds unexpended in the first year do not cancel and 89.16 are available in the second year. 89.17 (b) The advanced placement program shall receive 75 percent 89.18 of the appropriation each year and the international 89.19 baccalaureate program shall receive 25 percent of the 89.20 appropriation each year. The department, in consultation with 89.21 representatives of the advanced placement and international 89.22 baccalaureate programs selected by the advanced placement 89.23 advisory council and IBMN, respectively, shall determine the 89.24 amounts of the expenditures each year for examination fees and 89.25 training and support programs for each program. 89.26 (c) Notwithstanding Minnesota Statutes, section 120B.13, 89.27 subdivision 1, $375,000 each year is for teachers to attend 89.28 subject matter summer training programs and follow-up support 89.29 workshops approved by the advanced placement or international 89.30 baccalaureate programs. The amount of the subsidy for each 89.31 teacher attending an advanced placement or international 89.32 baccalaureate summer training program or workshop shall be the 89.33 same. The commissioner shall determine the payment process and 89.34 the amount of the subsidy. 89.35 (d) Notwithstanding Minnesota Statutes, section 120B.13, 89.36 subdivision 3, in each year to the extent of available 90.1 appropriations, the commissioner shall pay all examination fees 90.2 for all students sitting for an advanced placement examination, 90.3 international baccalaureate examination, or both. If this 90.4 amount is not adequate, the commissioner may pay less than the 90.5 full examination fee. 90.6 Any balance in the first year does not cancel but is 90.7 available in the second year. 90.8 Subd. 3. [IMPLEMENTATION ASSISTANCE.] For grants to school 90.9 districts for the costs of developing research-based teacher 90.10 professional development and assessment standards and for 90.11 training to implement the standards under Minnesota Statutes, 90.12 sections 120B.32 and 120B.33: 90.13 $1,500,000 ..... 2002 90.14 $1,500,000 ..... 2003 90.15 Districts may apply for a grant amount of $50 per full-time 90.16 equivalent instructional staff person or $2,500, whichever is 90.17 greater. No grant may exceed $50,000. Districts receiving 90.18 grants are encouraged to cooperate with other grant recipients 90.19 for the purposes of this appropriation. 90.20 This appropriation is available until June 30, 2003. 90.21 Subd. 4. [ALTERNATIVE COMPENSATION AID.] For alternative 90.22 compensation aid under Minnesota Statutes, section 120B.34: 90.23 $6,000,000 ..... 2002 90.24 $6,000,000 ..... 2003 90.25 Of the annual appropriations, at least $2,000,000 must be 90.26 awarded to school districts whose administrative offices on July 90.27 1, 2001, are located in Anoka, Carver, Dakota, Hennepin, Ramsey, 90.28 Scott, or Washington county, and at least $2,000,000 must be 90.29 awarded to school districts whose administrative offices on July 90.30 1, 2001, are not located in Anoka, Carver, Dakota, Hennepin, 90.31 Ramsey, Scott, or Washington county. If applications for 90.32 funding are not sufficient to distribute the full amount of 90.33 funding designated for each geographic area, the commissioner 90.34 may reallocate those funds to the remaining applicant districts, 90.35 regardless of their location. The commissioner shall award 90.36 grants based on the order in which the documents required under 91.1 Minnesota Statutes, section 120B.34, are received. A school 91.2 district that qualifies for aid in fiscal year 2002 remains 91.3 eligible for aid in fiscal year 2003. 91.4 Any balance in the first year does not cancel but is 91.5 available in the second year. 91.6 Subd. 5. [STATEWIDE TESTING.] For administering tests 91.7 under Minnesota Statutes, sections 120B.02; 120B.30, subdivision 91.8 1; and 120B.35: 91.9 $6,500,000 ..... 2002 91.10 $6,500,000 ..... 2003 91.11 A district may apply to the commissioner for a grant to 91.12 reimburse the district for test-related costs. 91.13 Any balance in the first year does not cancel but is 91.14 available in the second year. 91.15 Subd. 6. [CHARTER SCHOOL BUILDING LEASE AID.] For building 91.16 lease aid under Minnesota Statutes, section 124D.11, subdivision 91.17 4: 91.18 $16,554,000 ..... 2002 91.19 $25,176,000 ..... 2003 91.20 The 2002 appropriation includes $1,114,000 for 2001 and 91.21 $15,440,000 for 2002. 91.22 The 2003 appropriation includes $1,715,000 for 2002 and 91.23 $23,461,000 for 2003. 91.24 Subd. 7. [CHARTER SCHOOL STARTUP GRANTS.] For charter 91.25 school startup cost aid under Minnesota Statutes, section 91.26 124D.11: 91.27 $2,738,000 ..... 2002 91.28 $3,143,000 ..... 2003 91.29 The 2002 appropriation includes $273,000 for 2001 and 91.30 $2,465,000 for 2002. 91.31 The 2003 appropriation includes $274,000 for 2002 and 91.32 $2,869,000 for 2003. 91.33 Subd. 8. [CHARTER SCHOOL INTEGRATION AID.] For grants to 91.34 charter schools to promote integration and desegregation under 91.35 Minnesota Statutes, section 124D.11, subdivision 6, paragraph 91.36 (e): 92.1 $50,000 ..... 2002 92.2 $50,000 ..... 2003 92.3 Any balance in the first year does not cancel but is 92.4 available in the second year. 92.5 Subd. 9. [BEST PRACTICES GRANTS.] For best practices 92.6 grants: 92.7 $1,000,000 ..... 2002 92.8 $1,000,000 ..... 2003 92.9 Of this amount, $1,000,000 each year is for the Minnesota 92.10 new teacher project. 92.11 Subd. 10. [INTEGRATION AID.] For integration aid: 92.12 $63,231,000 ..... 2002 92.13 $63,742,000 ..... 2003 92.14 The 2002 appropriation includes $5,729,000 for 2001 and 92.15 $57,502,000 for 2002. 92.16 The 2003 appropriation includes $6,389,000 for 2002 and 92.17 $57,353,000 for 2003. 92.18 Subd. 11. [INTEGRATION PROGRAMS.] For minority fellowship 92.19 grants under Laws 1994, chapter 647, article 8, section 29; 92.20 minority teacher incentives under Minnesota Statutes, section 92.21 122A.65; teachers of color program grants under Minnesota 92.22 Statutes, section 122A.64; and cultural exchange grants under 92.23 Minnesota Statutes, section 124D.89: 92.24 $1,000,000 ..... 2002 92.25 $1,000,000 ..... 2003 92.26 Any balance in the first year does not cancel but is 92.27 available in the second year. 92.28 In awarding teachers of color program grants, the 92.29 commissioner must give priority to districts with students who 92.30 are currently completing their academic program. 92.31 Subd. 12. [MAGNET SCHOOL GRANTS.] For magnet school and 92.32 program grants under Minnesota Statutes, section 124D.871: 92.33 $1,750,000 ..... 2002 92.34 $1,050,000 ..... 2003 92.35 Subd. 13. [MAGNET SCHOOL STARTUP AID.] For magnet school 92.36 startup aid under Minnesota Statutes, section 124D.88: 93.1 $482,000 ..... 2002 93.2 $326,000 ..... 2003 93.3 The 2002 appropriation includes $25,000 for 2001 and 93.4 $457,000 for 2002. 93.5 The 2003 appropriation includes $51,000 for 2002 and 93.6 $275,000 for 2003. 93.7 Subd. 14. [INTERDISTRICT DESEGREGATION OR INTEGRATION 93.8 TRANSPORTATION GRANTS.] For interdistrict desegregation or 93.9 integration transportation grants under Minnesota Statutes, 93.10 section 124D.87: 93.11 $2,932,000 ..... 2003 93.12 Subd. 15. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 93.13 For grants to American Indian language and culture education 93.14 programs under Minnesota Statutes 2000, section 124D.81, 93.15 subdivision 1: 93.16 $73,000 ..... 2002 93.17 The 2002 appropriation includes $73,000 for 2001 and $0 for 93.18 2002. 93.19 Subd. 16. [AMERICAN INDIAN EDUCATION.] For certain 93.20 American Indian education programs in school districts: 93.21 $17,000 ..... 2002 93.22 The 2002 appropriation includes $17,000 for 2001 and $0 for 93.23 2002. 93.24 Subd. 17. [SUCCESS FOR THE FUTURE.] For American Indian 93.25 success for the future grants under Minnesota Statutes, section 93.26 124D.81: 93.27 $1,797,000 ..... 2002 93.28 $1,887,000 ..... 2003 93.29 The 2002 appropriation includes $0 for 2001 and $1,797,000 93.30 for 2002. 93.31 The 2003 appropriation includes $200,000 for 2002 and 93.32 $1,687,000 for 2003. 93.33 Subd. 18. [AMERICAN INDIAN SCHOLARSHIPS.] For American 93.34 Indian scholarships under Minnesota Statutes, section 124D.84: 93.35 $1,875,000 ..... 2002 93.36 $1,875,000 ..... 2003 94.1 Any balance in the first year does not cancel but is 94.2 available in the second year. 94.3 Subd. 19. [AMERICAN INDIAN TEACHER PREPARATION GRANTS.] (a) 94.4 For joint grants to assist American Indian people to become 94.5 teachers under Minnesota Statutes, section 122A.63: 94.6 $190,000 ..... 2002 94.7 $190,000 ..... 2003 94.8 (b) Up to $70,000 each year is for a joint grant to the 94.9 University of Minnesota at Duluth and the Duluth school district. 94.10 (c) Up to $40,000 each year is for a joint grant to each of 94.11 the following: 94.12 (1) Bemidji state university and the Red Lake school 94.13 district; 94.14 (2) Moorhead state university and a school district located 94.15 within the White Earth reservation; and 94.16 (3) Augsburg college, independent school district No. 625, 94.17 St. Paul, and the Minneapolis school district. 94.18 (d) Money not used for students at one location may be 94.19 transferred for use at another location. 94.20 (e) Any balance in the first year does not cancel but is 94.21 available in the second year. 94.22 Subd. 20. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 94.23 school aid under Minnesota Statutes, section 124D.83: 94.24 $2,520,000 ..... 2002 94.25 $2,767,000 ..... 2003 94.26 The 2002 appropriation includes $192,000 for 2001 and 94.27 $2,328,000 for 2002. 94.28 The 2003 appropriation includes $258,000 for 2002 and 94.29 $2,509,000 for 2003. 94.30 Subd. 21. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 94.31 SCHOOLS.] For early childhood family education programs at 94.32 tribal contract schools: 94.33 $68,000 ..... 2002 94.34 $68,000 ..... 2003 94.35 Subd. 22. [FIRST GRADE PREPAREDNESS.] For first grade 94.36 preparedness grants under Minnesota Statutes, section 124D.081: 95.1 $7,000,000 ..... 2002 95.2 $7,000,000 ..... 2003 95.3 Subd. 23. [SECONDARY VOCATIONAL EDUCATION AID.] For 95.4 secondary vocational education aid under Minnesota Statutes, 95.5 section 124D.453: 95.6 $1,242,000 ..... 2002 95.7 The 2002 appropriation includes $1,242,000 for 2001 and $0 95.8 for 2002. 95.9 Subd. 24. [YOUTHWORKS PROGRAM.] For youthworks programs 95.10 under Minnesota Statutes, sections 124D.37 to 124D.45: 95.11 $1,788,000 ..... 2002 95.12 $1,788,000 ..... 2003 95.13 A grantee organization may provide health and child care 95.14 coverage to the dependents of each participant enrolled in a 95.15 full-time youth works program to the extent such coverage is not 95.16 otherwise available. 95.17 Any balance in the first year does not cancel but is 95.18 available in the second year. 95.19 Subd. 25. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 95.20 GRANTS.] For education and employment transitions programming 95.21 under Minnesota Statutes, section 124D.46: 95.22 $450,000 ..... 2002 95.23 $450,000 ..... 2003 95.24 $450,000 each year is for ISEEKS. 95.25 Any balance in the first year does not cancel but is 95.26 available in the second year. 95.27 Subd. 26. [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 95.28 For the learn and earn graduation achievement program under 95.29 Minnesota Statutes, section 124D.32: 95.30 $725,000 ..... 2002 95.31 Any balance in the first year does not cancel but is 95.32 available in the second year. 95.33 Subd. 27. [SCHOOL EVALUATION SERVICES.] For contracting 95.34 with an independent school evaluation services contractor to 95.35 evaluate and report on school districts' academic and financial 95.36 performance under section 55: 96.1 $2,500,000 ..... 2002 96.2 Subd. 28. [MINNESOTA STUDENT ORGANIZATION FOUNDATION.] For 96.3 the Minnesota student organization foundation under Minnesota 96.4 Statutes, section 124D.34: 96.5 $625,000 ..... 2002 96.6 $625,000 ..... 2003 96.7 Any balance in the first year does not cancel but is 96.8 available in the second year. 96.9 Subd. 29. [READING COMPETENCY GRANTS.] For reading 96.10 competency grants under Minnesota Statutes, section 120B.12: 96.11 $100,000 ..... 2002 96.12 $100,000 ..... 2003 96.13 The commissioner must award one grant to the St. Croix 96.14 river education district by July 1, 2001. 96.15 Sec. 61. [REPEALER.] 96.16 (a) Minnesota Statutes 2000, section 124D.85, is repealed. 96.17 (b) Minnesota Statutes 2000, section 124D.32, is repealed, 96.18 effective July 1, 2002. 96.19 (c) Minnesota Statutes 2000, sections 124D.128, subdivision 96.20 7, and 135A.081, are repealed effective the day following final 96.21 enactment. 96.22 ARTICLE 3 96.23 SPECIAL PROGRAMS 96.24 Section 1. Minnesota Statutes 2000, section 120B.031, 96.25 subdivision 11, is amended to read: 96.26 Subd. 11. [TECHNOLOGY AND RECORDKEEPING.] (a) Consistent 96.27 with the requirements of this section, the commissioner must 96.28 ensure the availability and maintain the ongoing operation of a 96.29 uniform system for school districts to report profile of 96.30 learning data at the state and local levels. The 96.31 commissioner also shall designate to school districts, area 96.32 learning centers, and charter schools software packages for 96.33 reporting student performance on the content standards. The 96.34 commissioner shall ensure that the designated recordkeeping 96.35 software is capable of transferring student records between 96.36 schools and school districts and is available to school 97.1 districts at a minimal cost.The commissioner shall convene an97.2advisory group composed of qualified experts and interested97.3stakeholders to recommend to districts and charter schools97.4recordkeeping practices under the graduation rule.The 97.5 commissioner also mustalsoreport on an ongoing basis on 97.6 technology needs for efficient daily classroom recordkeeping and 97.7 accountability reporting. 97.8 (b) The commissioner annually shallnotifyinform the 97.9 education committees of the legislaturethatregarding 97.10 recordkeeping practices under the profile of learning until the 97.11 requirements in paragraph (a) have been fully met. 97.12 [EFFECTIVE DATE.] This section is effective the day 97.13 following final enactment. 97.14 Sec. 2. Minnesota Statutes 2000, section 121A.41, 97.15 subdivision 10, is amended to read: 97.16 Subd. 10. [SUSPENSION.] "Suspension" means an action by 97.17 the school administration, under rules promulgated by the school 97.18 board, prohibiting a pupil from attending school for a period of 97.19 no more than ten school days. If a suspension is longer than 97.20 five days, the suspending administrator must provide the 97.21 superintendent with a reason for the longer suspension. This 97.22 definition does not apply to dismissal from school for one 97.23 school day or less, except as provided in federal law for a 97.24 student with a disability. Each suspension action may include a 97.25 readmission plan. The readmission plan shall include, where 97.26 appropriate, a provision for implementing alternative 97.27 educational services upon readmission and may not be used to 97.28 extend the current suspension. Consistent with section 125A.09, 97.29 subdivision 3, the readmission plan must not obligate a parent 97.30 to provide a sympathomimetic medication for the parent's child 97.31 as a condition of readmission. The school administration may 97.32 not impose consecutive suspensions against the same pupil for 97.33 the same course of conduct, or incident of misconduct, except 97.34 where the pupil will create an immediate and substantial danger 97.35 to self or to surrounding persons or property, or where the 97.36 district is in the process of initiating an expulsion, in which 98.1 case the school administration may extend the suspension to a 98.2 total of 15 days. In the case of a student with a disability, 98.3 the student's individual education plan team must meet 98.4 immediately but not more than ten school days after the date on 98.5 which the decision to remove the student from the student's 98.6 current education placement is made. The individual education 98.7 plan team shall at that meeting: conduct a review of the 98.8 relationship between the child's disability and the behavior 98.9 subject to disciplinary action; and determine the 98.10 appropriateness of the child's education plan. 98.11 The requirements of the individual education plan team 98.12 meeting apply when: 98.13 (1) the parent requests a meeting; 98.14 (2) the student is removed from the student's current 98.15 placement for five or more consecutive days; or 98.16 (3) the student's total days of removal from the student's 98.17 placement during the school year exceed ten cumulative days in a 98.18 school year. The school administration shall implement 98.19 alternative educational services when the suspension exceeds 98.20 five days. A separate administrative conference is required for 98.21 each period of suspension. 98.22 [EFFECTIVE DATE.] This section is effective the day 98.23 following final enactment. 98.24 Sec. 3. Minnesota Statutes 2000, section 122A.18, is 98.25 amended by adding a subdivision to read: 98.26 Subd. 2b. [SPECIAL EDUCATION INFORMATION.] All colleges 98.27 and universities approved by the board of teaching to prepare 98.28 persons for classroom teacher licensure must include in their 98.29 teacher preparation programs information on special education 98.30 laws, teaching strategies, and positive behavior interventions. 98.31 [EFFECTIVE DATE.] This section is effective for the 98.32 2002-2003 school year and later. 98.33 Sec. 4. Minnesota Statutes 2000, section 122A.31, is 98.34 amended to read: 98.35 122A.31 [AMERICAN SIGN LANGUAGE/ENGLISH INTERPRETERS.] 98.36 Subdivision 1. [REQUIREMENTS FOR AMERICAN SIGN 99.1 LANGUAGE/ENGLISH INTERPRETERS.] (a) In addition to any other 99.2 requirements that a school district establishes, any person 99.3 employed to provide American sign language/English interpreting 99.4 or sign transliterating services on a full-time or part-time 99.5 basis for a school district after July 1, 2000, must: 99.6 (1) hold current interpreter and transliterator 99.7 certificates awarded by the Registry of Interpreters for the 99.8 Deaf (RID), or the general level interpreter proficiency 99.9 certificate awarded by the National Association of the Deaf 99.10 (NAD), or a comparable state certification from the commissioner 99.11 of children, families, and learning; and 99.12 (2) satisfactorily complete an interpreter/transliterator 99.13 training program affiliated with an accredited educational 99.14 institution. 99.15 (b)To provide American sign language/English interpreting99.16or transliterating services on a full-time or part-time basis, a99.17person employed in a school district during the 1999-2000 school99.18year must only comply with paragraph (a), clause (1). The99.19commissioner shall grant a nonrenewable, one-year provisional99.20certificate to individuals who have not attained a current99.21applicable transliterator certificate pursuant to paragraph (a),99.22clause (1). During the one-year provisional period, the99.23interpreter/transliterator must develop and implement an99.24education plan in collaboration with a mentor under paragraph99.25(d). This paragraph shall expire on June 30, 2001.99.26(c)New graduates of an interpreter/transliterator program 99.27 affiliated with an accredited education institution shall be 99.28 granted a two-year provisional certificate by the commissioner. 99.29 During the two-year provisional period, the 99.30 interpreter/transliterator must develop and implement an 99.31 education plan in collaboration with a mentor under paragraph 99.32(d)(c).This paragraph applies to spring semester 200099.33graduates and thereafter.99.34(d)(c) A mentor of a provisionally certified 99.35 interpreter/transliterator must be an interpreter/transliterator 99.36 who has either NAD level IV or V certification or RID certified 100.1 interpreter and certified transliterator certification and have 100.2 at least three years interpreting/transliterating experience in 100.3 any educational setting. The mentor, in collaboration with the 100.4 provisionally certified interpreter/transliterator, shall 100.5 develop and implement an education plan designed to meet the 100.6 requirements of paragraph (a), clause (1), and include a weekly 100.7 on-site mentoring process. 100.8 (d) Consistent with the requirements of this paragraph, a 100.9 person holding a two-year provisional certificate may apply to 100.10 the commissioner for a time-limited extension. The 100.11 commissioner, in consultation with the commission serving deaf 100.12 and hard-of-hearing people, must grant the person a time-limited 100.13 extension of the provisional certificate based on the following 100.14 documentation: 100.15 (1) letters of support from the person's mentor, a parent 100.16 of a pupil the person serves, the special education director of 100.17 the district in which the person is employed, and a 100.18 representative from the regional service center of the deaf and 100.19 hard-of-hearing; 100.20 (2) records of the person's formal education, training, 100.21 experience, and progress on the person's education plan; and 100.22 (3) an explanation of why an extension is needed. 100.23 As a condition of receiving an extension, the person must 100.24 comply with a plan and the accompanying time line for meeting 100.25 the requirements of this subdivision. A committee composed of 100.26 the director of the Minnesota resource center serving deaf and 100.27 hard-of-hearing, or the director's designee, a representative of 100.28 the Minnesota association of deaf citizens, a representative of 100.29 the Minnesota registry of interpreters of the deaf, and other 100.30 appropriate persons selected by the commissioner must develop 100.31 the plan and time line for the person receiving the extension. 100.32 (e) A school district maynotemploy only an 100.33 interpreter/transliterator who hasnotbeen certified under 100.34 paragraph (a),or (b), or(c)for whom a time-limited extension 100.35 has been granted under paragraph (d). 100.36 Subd. 2. [ORAL OR CUED SPEECH TRANSLITERATORS.] (a) In 101.1 addition to any other requirements that a school district 101.2 establishes, any person employed to provide oral transliterating 101.3 or cued speech transliterating services on a full-time or 101.4 part-time basis for a school district after July 1, 2000, must 101.5 hold a current applicable transliterator certificate awarded by 101.6 the national certifying association or comparable state 101.7 certification from the commissioner of children, families, and 101.8 learning. 101.9 (b) Consistent with the requirements of this paragraph, a 101.10 person holding a two-year provisional certificate may apply to 101.11 the commissioner for a time-limited extension. The 101.12 commissioner, in consultation with the commission serving deaf 101.13 and hard-of-hearing people, must grant the person a time-limited 101.14 extension of the provisional certificate based on the following 101.15 documentation: 101.16 (1) letters of support from the person's mentor, a parent 101.17 of a pupil the person serves, the special education director of 101.18 the district in which the person is employed, and a 101.19 representative from the regional service center of the deaf and 101.20 hard-of-hearing; 101.21 (2) records of the person's formal education, training, 101.22 experience, and progress on the person's education plan; and 101.23 (3) an explanation of why an extension is needed. 101.24 As a condition of receiving an extension, the person must 101.25 comply with a plan and the accompanying time line for meeting 101.26 the requirements of this subdivision. A committee composed of 101.27 the director of the Minnesota resource center serving deaf and 101.28 hard-of-hearing, or the director's designee, a representative of 101.29 the Minnesota association of deaf citizens, a representative of 101.30 the Minnesota registry of interpreters of the deaf, and other 101.31 appropriate persons selected by the commissioner must develop 101.32 the plan and time line for the person receiving the extension. 101.33 Subd. 3. [QUALIFIED INTERPRETERS.] The department of 101.34 children, families, and learning and the resource center: deaf 101.35 and hard of hearing shall work with existing 101.36 interpreter/transliterator training programs, other 102.1 training/educational institutions, and the regional service 102.2 centers to ensure that ongoing staff development training for 102.3 educational interpreters/transliterators is provided throughout 102.4 the state. 102.5 Subd. 4. [REIMBURSEMENT.] (a) For purposes of revenue 102.6 under section 125A.78, the department of children, families, and 102.7 learning must only reimburse school districts for the services 102.8 of those interpreters/transliterators who satisfy the standards 102.9 of competency under this section. 102.10 (b) Notwithstanding paragraph (a), a district shall be 102.11 reimbursed for the services of interpreters with a nonrenewable 102.12 provisional certificateand, interpreters/transliterators 102.13 employed to mentor the provisional certified interpreters and 102.14 persons for whom a time-limited extension has been granted under 102.15 subdivision 1, paragraph (d), or subdivision 2, paragraph (b). 102.16 [EFFECTIVE DATE.] This section is effective for the 102.17 2001-2002 school year and later. 102.18 Sec. 5. Minnesota Statutes 2000, section 122A.61, 102.19 subdivision 1, is amended to read: 102.20 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 102.21 required to reserve an amount equal to at least two percent of 102.22 the basic revenue under section 126C.10, subdivision 2, for 102.23 in-service education for programs under section 120B.22, 102.24 subdivision 2, for staff development plans, including plans for 102.25 challenging instructional activities and experiences under 102.26 section 122A.60, and for curriculum development and programs, 102.27 other in-service education, teachers' workshops, teacher 102.28 conferences, the cost of substitute teachers staff development 102.29 purposes, preservice and in-service education for special 102.30 education professionals and paraprofessionals, and other related 102.31 costs for staff development efforts. A district may annually 102.32 waive the requirement to reserve their basic revenue under this 102.33 section if a majority vote of the licensed teachers in the 102.34 district and a majority vote of the school board agree to a 102.35 resolution to waive the requirement. A district in statutory 102.36 operating debt is exempt from reserving basic revenue according 103.1 to this section. Districts may expend an additional amount of 103.2 unreserved revenue for staff development based on their needs. 103.3 With the exception of amounts reserved for staff development 103.4 from revenues allocated directly to school sites, the board must 103.5 initially allocate 50 percent of the reserved revenue to each 103.6 school site in the district on a per teacher basis, which must 103.7 be retained by the school site until used. The board may retain 103.8 25 percent to be used for district wide staff development 103.9 efforts. The remaining 25 percent of the revenue must be used 103.10 to make grants to school sites for best practices methods. A 103.11 grant may be used for any purpose authorized under section 103.12 120B.22, subdivision 2, 122A.60, or for the costs of curriculum 103.13 development and programs, other in-service education, teachers' 103.14 workshops, teacher conferences, substitute teachers for staff 103.15 development purposes, and other staff development efforts, and 103.16 determined by the site professional development team. The site 103.17 professional development team must demonstrate to the school 103.18 board the extent to which staff at the site have met the 103.19 outcomes of the program. The board may withhold a portion of 103.20 initial allocation of revenue if the staff development outcomes 103.21 are not being met. 103.22 [EFFECTIVE DATE.] This section is effective the day 103.23 following final enactment. 103.24 Sec. 6. Minnesota Statutes 2000, section 124D.65, 103.25 subdivision 5, is amended to read: 103.26 Subd. 5. [SCHOOL DISTRICT LEP REVENUE.] (a) A school 103.27 district's limited English proficiency programs revenue for 103.28 fiscal year 2000 equals the state total limited English 103.29 proficiency programs revenue, minus the amount determined under 103.30 paragraph (b), times the ratio of the district's adjusted 103.31 limited English proficiency programs base revenue to the state 103.32 total adjusted limited English proficiency programs base revenue. 103.33 (b) Notwithstanding paragraph (a), if the limited English 103.34 proficiency programs base revenue for a district equals zero, 103.35 the limited English proficiency programs revenue equals the sum 103.36 of the following amounts, computed using current year data: 104.1 (1) 68 percent of the salary of one full-time equivalent 104.2 teacher for each 40 pupils of limited English proficiency 104.3 enrolled, or 68 percent of the salary of one-half of a full-time 104.4 teacher in a district with 20 or fewer pupils of limited English 104.5 proficiency enrolled; and 104.6 (2) for supplies and equipment purchased or rented for use 104.7 in the instruction of pupils of limited English proficiency an 104.8 amount equal to 47 percent of the sum actually spent by the 104.9 district but not to exceed an average of $47 in any one school 104.10 year for each pupil of limited English proficiency receiving 104.11 instruction. 104.12 (c) A district's limited English proficiency programs 104.13 revenue for fiscal year 2001 and later equals the product of 104.14 $584 times the greater of 20 or the number of adjusted marginal 104.15 cost pupils of limited English proficiency enrolled in the 104.16 district during the current fiscal year. 104.17 (d) A pupil ceases to generate state limited English 104.18 proficiency aid in the school year following the school year in 104.19 which the pupil attains the state cut-off score on a 104.20 commissioner-provided assessment that measures the pupil's 104.21 emerging academic English. 104.22 [EFFECTIVE DATE.] This section is effective July 1, 2002. 104.23 Sec. 7. Minnesota Statutes 2000, section 125A.023, 104.24 subdivision 4, is amended to read: 104.25 Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor 104.26 shall convenean 18-membera 19-member interagency committee to 104.27 develop and implement a coordinated, multidisciplinary, 104.28 interagency intervention service system for children ages three 104.29 to 21 with disabilities. The commissioners of commerce, 104.30 children, families, and learning, health, human rights, human 104.31 services, economic security, and corrections shall each appoint 104.32 two committee members from their departments; the association of 104.33 Minnesota counties shall appoint two county representatives, one 104.34 of whom must be an elected official, as committee members; and 104.35 the Minnesota school boards association, the Minnesota 104.36 administrators of special education, and the school nurse 105.1 association of Minnesota shall each appoint one committee 105.2 member. The committee shall select a chair from among its 105.3 members. 105.4 (b) The committee shall: 105.5 (1) identify and assist in removing state and federal 105.6 barriers to local coordination of services provided to children 105.7 with disabilities; 105.8 (2) identify adequate, equitable, and flexible funding 105.9 sources to streamline these services; 105.10 (3) develop guidelines for implementing policies that 105.11 ensure a comprehensive and coordinated system of all state and 105.12 local agency services, including multidisciplinary assessment 105.13 practices for children with disabilities ages three to 21; 105.14 (4) develop, consistent with federal law, a standardized 105.15 written plan for providing services to a child with 105.16 disabilities; 105.17 (5) identify how current systems for dispute resolution can 105.18 be coordinated and develop guidelines for that coordination; 105.19 (6) develop an evaluation process to measure the success of 105.20 state and local interagency efforts in improving the quality and 105.21 coordination of services to children with disabilities ages 105.22 three to 21; 105.23 (7) develop guidelines to assist the governing boards of 105.24 the interagency early intervention committees in carrying out 105.25 the duties assigned in section 125A.027, subdivision 1, 105.26 paragraph (b); and 105.27 (8) carry out other duties necessary to develop and 105.28 implement within communities a coordinated, multidisciplinary, 105.29 interagency intervention service system for children with 105.30 disabilities. 105.31 (c) The committee shall consult on an ongoing basis with 105.32 the state education advisory committee for special education and 105.33 the governor's interagency coordinating council in carrying out 105.34 its duties under this section, including assisting the governing 105.35 boards of the interagency early intervention committees. 105.36 Sec. 8. Minnesota Statutes 2000, section 125A.08, is 106.1 amended to read: 106.2 125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 106.3 (a) As defined in this section, every district must ensure 106.4 the following: 106.5 (1) all students with disabilities are provided the special 106.6 instruction and services which are appropriate to their needs. 106.7 Where the individual education plan team has determined 106.8 appropriate goals and objectives based on the student's needs, 106.9 including the extent to which the student can be included in the 106.10 least restrictive environment, and where there are essentially 106.11 equivalent and effective instruction, related services, or 106.12 assistive technology devices available to meet the student's 106.13 needs, cost to the district may be among the factors considered 106.14 by the team in choosing how to provide the appropriate services, 106.15 instruction, or devices that are to be made part of the 106.16 student's individual education plan. The individual education 106.17 plan team shall consider and may authorize services covered by 106.18 medical assistance according to section 256B.0625, subdivision 106.19 26. The student's needs and the special education instruction 106.20 and services to be provided must be agreed upon through the 106.21 development of an individual education plan. The plan must 106.22 address the student's need to develop skills to live and work as 106.23 independently as possible within the community. The individual 106.24 education plan team must consider positive behavioral 106.25 interventions, strategies, and supports that address behavior 106.26 for children with attention deficit disorder or attention 106.27 deficit hyperactivity disorder. By grade 9 or age 14, the plan 106.28 must address the student's needs for transition from secondary 106.29 services to post-secondary education and training, employment, 106.30 community participation, recreation, and leisure and home 106.31 living. In developing the plan, districts must inform parents 106.32 of the full range of transitional goals and related services 106.33 that should be considered. The plan must include a statement of 106.34 the needed transition services, including a statement of the 106.35 interagency responsibilities or linkages or both before 106.36 secondary services are concluded; 107.1 (2) children with a disability under age five and their 107.2 families are provided special instruction and services 107.3 appropriate to the child's level of functioning and needs; 107.4 (3) children with a disability and their parents or 107.5 guardians are guaranteed procedural safeguards and the right to 107.6 participate in decisions involving identification, assessment 107.7 including assistive technology assessment, and educational 107.8 placement of children with a disability; 107.9 (4) eligibility and needs of children with a disability are 107.10 determined by an initial assessment or reassessment, which may 107.11 be completed using existing data under United States Code, title 107.12 20, section 33, et seq.; 107.13 (5) to the maximum extent appropriate, children with a 107.14 disability, including those in public or private institutions or 107.15 other care facilities, are educated with children who are not 107.16 disabled, and that special classes, separate schooling, or other 107.17 removal of children with a disability from the regular 107.18 educational environment occurs only when and to the extent that 107.19 the nature or severity of the disability is such that education 107.20 in regular classes with the use of supplementary services cannot 107.21 be achieved satisfactorily; 107.22 (6) in accordance with recognized professional standards, 107.23 testing and evaluation materials, and procedures used for the 107.24 purposes of classification and placement of children with a 107.25 disability are selected and administered so as not to be 107.26 racially or culturally discriminatory; and 107.27 (7) the rights of the child are protected when the parents 107.28 or guardians are not known or not available, or the child is a 107.29 ward of the state. 107.30 (b) For paraprofessionals employed to work in programs for 107.31 students with disabilities, the school board in each district 107.32 shall ensure that: 107.33 (1) before or immediately upon employment, each 107.34 paraprofessional develops sufficient knowledge and skills in 107.35 emergency procedures, building orientation, roles and 107.36 responsibilities, confidentiality, vulnerability, and 108.1 reportability, among other things, to begin meeting the needs of 108.2 the students with whom the paraprofessional works; 108.3 (2) annual training opportunities are available to enable 108.4 the paraprofessional to continue to further develop the 108.5 knowledge and skills that are specific to the students with whom 108.6 the paraprofessional works, including understanding 108.7 disabilities, following lesson plans, and implementing follow-up 108.8 instructional procedures and activities; and 108.9 (3) a districtwide process obligates each paraprofessional 108.10 to work under the ongoing direction of a licensed teacher and, 108.11 where appropriate and possible, the supervision of a school 108.12 nurse. 108.13 [EFFECTIVE DATE.] This section is effective the day 108.14 following final enactment. 108.15 Sec. 9. Minnesota Statutes 2000, section 125A.09, 108.16 subdivision 3, is amended to read: 108.17 Subd. 3. [INITIAL ACTION; PARENT CONSENT.] (a) The 108.18 district must not proceed with the initial formal assessment of 108.19 a child, the initial placement of a child in a special education 108.20 program, or the initial provision of special education services 108.21 for a child without the prior written consent of the child's 108.22 parent or guardian. The refusal of a parent or guardian to 108.23 consent may be overridden by the decision in a hearing held 108.24 pursuant to subdivision 6 at the district's initiative. 108.25 (b) A parent, after consulting with health care, education, 108.26 or other professional providers, may agree or disagree to 108.27 provide the parent's child with sympathomimetic medications 108.28 unless section 144.344 applies. 108.29 [EFFECTIVE DATE.] This section is effective the day 108.30 following final enactment. 108.31 Sec. 10. Minnesota Statutes 2000, section 125A.11, 108.32 subdivision 3, is amended to read: 108.33 Subd. 3. [AGREEMENT BETWEEN DISTRICTS TO PROVIDE SPECIAL 108.34 INSTRUCTION AND SERVICES.] For the purposes of this section, any 108.35 school district may enter into an agreement, upon mutually 108.36 agreed upon terms and conditions, to provide special instruction 109.1 and services for children with a disability. In that event, one 109.2 of the participating units may employ and contract with 109.3 necessary qualified personnel to offer services in the several 109.4 districts. Each participating unit must reimburse the employing 109.5 unit a proportionate amount of the actual cost of providing the 109.6 special instruction and services, less the amount of state 109.7 special education aid, which shall be claimed in full by the109.8employing district. 109.9 Sec. 11. Minnesota Statutes 2000, section 125A.27, 109.10 subdivision 15, is amended to read: 109.11 Subd. 15. [PARTHC STATE PLAN.] "PartHC state plan" 109.12 means the annual state plan application approved by the federal 109.13 government under the Individuals with Disabilities Education 109.14 Act, United States Code, title 20, section 1471 et seq. (PartH109.15 C, Public Law Number102-119105-117). 109.16 Sec. 12. Minnesota Statutes 2000, section 125A.76, 109.17 subdivision 1, is amended to read: 109.18 Subdivision 1. [DEFINITIONS.] For the purposes of this 109.19 section, the definitions in this subdivision apply. 109.20 (a) "Base year" for fiscal year 1998 and later fiscal years 109.21 means the second fiscal year preceding the fiscal year for which 109.22 aid will be paid. 109.23 (b) "Basic revenue" has the meaning given it in section 109.24 126C.10, subdivision 2. For the purposes of computing basic 109.25 revenue pursuant to this section, each child with a disability 109.26 shall be counted as prescribed in section 126C.05, subdivision 1. 109.27 (c) "Essential personnel" means teachers, cultural 109.28 liaisons, related services, and support services staff providing 109.29 direct services to students. Essential personnel may also 109.30 include special education paraprofessionals or clericals 109.31 providing support to teachers and students by preparing 109.32 paperwork and making arrangements related to special education 109.33 compliance requirements, including parent meetings and 109.34 individual education plans. 109.35 (d) "Average daily membership" has the meaning given it in 109.36 section 126C.05. 110.1 (e) "Program growth factor" means 1.08 for fiscal year 110.2 2002, and 1.046 for fiscal year 2003 and later. 110.3 Sec. 13. Minnesota Statutes 2000, section 125A.76, 110.4 subdivision 2, is amended to read: 110.5 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 110.6 education base revenue equals the sum of the following amounts 110.7 computed using base year data: 110.8 (1) 68 percent of the salary of each essential person 110.9 employed in the district's program for children with a 110.10 disability during the fiscal year,not including the share of110.11salaries for personnel providing health-related services counted110.12in clause (8),whether the person is employed by one or more 110.13 districts or a Minnesota correctional facility operating on a 110.14 fee-for-service basis; 110.15 (2) for the Minnesota state academy for the deaf or the 110.16 Minnesota state academy for the blind, 68 percent of the salary 110.17 of each instructional aide assigned to a child attending the 110.18 academy, if that aide is required by the child's individual 110.19 education plan; 110.20 (3) for special instruction and services provided to any 110.21 pupil by contracting with public, private, or voluntary agencies 110.22 other than school districts, in place of special instruction and 110.23 services provided by the district, 52 percent of the difference 110.24 between the amount of the contract and thebasic revenue of the110.25district for that pupilamount of the basic revenue, as defined 110.26 in section 126C.10, subdivision 2, special education aid, and 110.27 any other aid earned on behalf of the child for the fraction of 110.28 the school day the pupil receives services under the contract; 110.29 (4) for special instruction and services provided to any 110.30 pupil by contracting for services with public, private, or 110.31 voluntary agencies other than school districts, that are 110.32 supplementary to a full educational program provided by the 110.33 school district, 52 percent of the amount of the contract for 110.34 that pupil; 110.35 (5) for supplies and equipment purchased or rented for use 110.36 in the instruction of children with a disability,not including111.1the portion of the expenses for supplies and equipment used to111.2provide health-related services counted in clause (8),an amount 111.3 equal to 47 percent of the sum actually expended by the 111.4 district, or a Minnesota correctional facility operating on a 111.5 fee-for-service basis, but not to exceed an average of $47 in 111.6 any one school year for each child with a disability receiving 111.7 instruction; 111.8 (6) for fiscal years 1997 and later, special education base 111.9 revenue shall include amounts under clauses (1) to (5) for 111.10 special education summer programs provided during the base year 111.11 for that fiscal year; and 111.12 (7) for fiscal years 1999 and later, the cost of providing 111.13 transportation services for children with disabilities under 111.14 section 123B.92, subdivision 1, paragraph (b), clause (4). 111.15 The department shall establish procedures through the 111.16 uniform financial accounting and reporting system to identify 111.17 and track all revenues generated from third-party billings as 111.18 special education revenue at the school district level; include 111.19 revenue generated from third-party billings as special education 111.20 revenue in the annual cross-subsidy report; and exclude 111.21 third-party revenue from calculation of excess cost aid to the 111.22 districts. 111.23 (b) If requested by a school district operating a special 111.24 education program during the base year for less than the full 111.25 fiscal year, or a school district in which is located a 111.26 Minnesota correctional facility operating on a fee-for-service 111.27 basis for less than the full fiscal year, the commissioner may 111.28 adjust the base revenue to reflect the expenditures that would 111.29 have occurred during the base year had the program been operated 111.30 for the full fiscal year. 111.31 (c) Notwithstanding paragraphs (a) and (b), the portion of 111.32 a school district's base revenue attributable to a Minnesota 111.33 correctional facility operating on a fee-for-service basis 111.34 during the facility's first year of operating on a 111.35 fee-for-service basis shall be computed using current year data. 111.36 Sec. 14. Minnesota Statutes 2000, section 260A.01, is 112.1 amended to read: 112.2 260A.01 [TRUANCY PROGRAMS AND SERVICES.] 112.3 (a) The programs in this chapter are designed to provide a 112.4 continuum of intervention and services to support families and 112.5 children in keeping children in school and combating truancy and 112.6 educational neglect. School districts, county attorneys, and 112.7 law enforcement may establish the programs and coordinate them 112.8 with other community-based truancy services in order to provide 112.9 the necessary and most effective intervention for children and 112.10 their families. This continuum of intervention and services 112.11 involves progressively intrusive intervention, beginning with 112.12 strong service-oriented efforts at the school and community 112.13 level and involving the court's authority only when necessary. 112.14 (b) Consistent with section 125A.09, subdivision 3, a 112.15 parent's refusal to provide the parent's child with 112.16 sympathomimetic medications does not constitute educational 112.17 neglect. 112.18 [EFFECTIVE DATE.] This section is effective the day 112.19 following final enactment. 112.20 Sec. 15. Minnesota Statutes 2000, section 260C.163, 112.21 subdivision 11, is amended to read: 112.22 Subd. 11. [PRESUMPTIONS REGARDING TRUANCY OR EDUCATIONAL 112.23 NEGLECT.] (a) A child's absence from school is presumed to be 112.24 due to the parent's, guardian's, or custodian's failure to 112.25 comply with compulsory instruction laws if the child is under 12 112.26 years old and the school has made appropriate efforts to resolve 112.27 the child's attendance problems; this presumption may be 112.28 rebutted based on a showing by clear and convincing evidence 112.29 that the child is habitually truant. A child's absence from 112.30 school without lawful excuse, when the child is 12 years old or 112.31 older, is presumed to be due to the child's intent to be absent 112.32 from school; this presumption may be rebutted based on a showing 112.33 by clear and convincing evidence that the child's absence is due 112.34 to the failure of the child's parent, guardian, or custodian to 112.35 comply with compulsory instruction laws, sections 120A.22 and 112.36 120A.24. 113.1 (b) Consistent with section 125A.09, subdivision 3, a 113.2 parent's refusal to provide the parent's child with 113.3 sympathomimetic medications does not constitute educational 113.4 neglect. 113.5 [EFFECTIVE DATE.] This section is effective the day 113.6 following final enactment. 113.7 Sec. 16. Minnesota Statutes 2000, section 626.556, 113.8 subdivision 2, is amended to read: 113.9 Subd. 2. [DEFINITIONS.] As used in this section, the 113.10 following terms have the meanings given them unless the specific 113.11 content indicates otherwise: 113.12 (a) "Sexual abuse" means the subjection of a child by a 113.13 person responsible for the child's care, by a person who has a 113.14 significant relationship to the child, as defined in section 113.15 609.341, or by a person in a position of authority, as defined 113.16 in section 609.341, subdivision 10, to any act which constitutes 113.17 a violation of section 609.342 (criminal sexual conduct in the 113.18 first degree), 609.343 (criminal sexual conduct in the second 113.19 degree), 609.344 (criminal sexual conduct in the third degree), 113.20 609.345 (criminal sexual conduct in the fourth degree), or 113.21 609.3451 (criminal sexual conduct in the fifth degree). Sexual 113.22 abuse also includes any act which involves a minor which 113.23 constitutes a violation of prostitution offenses under sections 113.24 609.321 to 609.324 or 617.246. Sexual abuse includes threatened 113.25 sexual abuse. 113.26 (b) "Person responsible for the child's care" means (1) an 113.27 individual functioning within the family unit and having 113.28 responsibilities for the care of the child such as a parent, 113.29 guardian, or other person having similar care responsibilities, 113.30 or (2) an individual functioning outside the family unit and 113.31 having responsibilities for the care of the child such as a 113.32 teacher, school administrator, or other lawful custodian of a 113.33 child having either full-time or short-term care 113.34 responsibilities including, but not limited to, day care, 113.35 babysitting whether paid or unpaid, counseling, teaching, and 113.36 coaching. 114.1 (c) "Neglect" means: 114.2 (1) failure by a person responsible for a child's care to 114.3 supply a child with necessary food, clothing, shelter, health, 114.4 medical, or other care required for the child's physical or 114.5 mental health when reasonably able to do so; 114.6 (2) failure to protect a child from conditions or actions 114.7 which imminently and seriously endanger the child's physical or 114.8 mental health when reasonably able to do so; 114.9 (3) failure to provide for necessary supervision or child 114.10 care arrangements appropriate for a child after considering 114.11 factors as the child's age, mental ability, physical condition, 114.12 length of absence, or environment, when the child is unable to 114.13 care for the child's own basic needs or safety, or the basic 114.14 needs or safety of another child in their care; 114.15 (4) failure to ensure that the child is educated as defined 114.16 in sections 120A.22 and 260C.163, subdivision 11, which does not 114.17 include a parent's refusal to provide the parent's child with 114.18 sympathomimetic medications, consistent with section 125A.09, 114.19 subdivision 3; 114.20 (5) nothing in this section shall be construed to mean that 114.21 a child is neglected solely because the child's parent, 114.22 guardian, or other person responsible for the child's care in 114.23 good faith selects and depends upon spiritual means or prayer 114.24 for treatment or care of disease or remedial care of the child 114.25 in lieu of medical care; except that a parent, guardian, or 114.26 caretaker, or a person mandated to report pursuant to 114.27 subdivision 3, has a duty to report if a lack of medical care 114.28 may cause serious danger to the child's health. This section 114.29 does not impose upon persons, not otherwise legally responsible 114.30 for providing a child with necessary food, clothing, shelter, 114.31 education, or medical care, a duty to provide that care; 114.32 (6) prenatal exposure to a controlled substance, as defined 114.33 in section 253B.02, subdivision 2, used by the mother for a 114.34 nonmedical purpose, as evidenced by withdrawal symptoms in the 114.35 child at birth, results of a toxicology test performed on the 114.36 mother at delivery or the child at birth, or medical effects or 115.1 developmental delays during the child's first year of life that 115.2 medically indicate prenatal exposure to a controlled substance; 115.3 (7) "medical neglect" as defined in section 260C.007, 115.4 subdivision 4, clause (5); 115.5 (8) chronic and severe use of alcohol or a controlled 115.6 substance by a parent or person responsible for the care of the 115.7 child that adversely affects the child's basic needs and safety; 115.8 or 115.9 (9) emotional harm from a pattern of behavior which 115.10 contributes to impaired emotional functioning of the child which 115.11 may be demonstrated by a substantial and observable effect in 115.12 the child's behavior, emotional response, or cognition that is 115.13 not within the normal range for the child's age and stage of 115.14 development, with due regard to the child's culture. 115.15 (d) "Physical abuse" means any physical injury, mental 115.16 injury, or threatened injury, inflicted by a person responsible 115.17 for the child's care on a child other than by accidental means, 115.18 or any physical or mental injury that cannot reasonably be 115.19 explained by the child's history of injuries, or any aversive 115.20 and deprivation procedures that have not been authorized under 115.21 section 245.825. Abuse does not include reasonable and moderate 115.22 physical discipline of a child administered by a parent or legal 115.23 guardian which does not result in an injury. Actions which are 115.24 not reasonable and moderate include, but are not limited to, any 115.25 of the following that are done in anger or without regard to the 115.26 safety of the child: 115.27 (1) throwing, kicking, burning, biting, or cutting a child; 115.28 (2) striking a child with a closed fist; 115.29 (3) shaking a child under age three; 115.30 (4) striking or other actions which result in any 115.31 nonaccidental injury to a child under 18 months of age; 115.32 (5) unreasonable interference with a child's breathing; 115.33 (6) threatening a child with a weapon, as defined in 115.34 section 609.02, subdivision 6; 115.35 (7) striking a child under age one on the face or head; 115.36 (8) purposely giving a child poison, alcohol, or dangerous, 116.1 harmful, or controlled substances which were not prescribed for 116.2 the child by a practitioner, in order to control or punish the 116.3 child; or other substances that substantially affect the child's 116.4 behavior, motor coordination, or judgment or that results in 116.5 sickness or internal injury, or subjects the child to medical 116.6 procedures that would be unnecessary if the child were not 116.7 exposed to the substances; or 116.8 (9) unreasonable physical confinement or restraint not 116.9 permitted under section 609.379, including but not limited to 116.10 tying, caging, or chaining. 116.11 (e) "Report" means any report received by the local welfare 116.12 agency, police department, or county sheriff pursuant to this 116.13 section. 116.14 (f) "Facility" means a licensed or unlicensed day care 116.15 facility, residential facility, agency, hospital, sanitarium, or 116.16 other facility or institution required to be licensed under 116.17 sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 116.18 chapter 245B; or a school as defined in sections 120A.05, 116.19 subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 116.20 personal care provider organization as defined in sections 116.21 256B.04, subdivision 16, and 256B.0625, subdivision 19a. 116.22 (g) "Operator" means an operator or agency as defined in 116.23 section 245A.02. 116.24 (h) "Commissioner" means the commissioner of human services. 116.25 (i) "Assessment" includes authority to interview the child, 116.26 the person or persons responsible for the child's care, the 116.27 alleged perpetrator, and any other person with knowledge of the 116.28 abuse or neglect for the purpose of gathering the facts, 116.29 assessing the risk to the child, and formulating a plan. 116.30 (j) "Practice of social services," for the purposes of 116.31 subdivision 3, includes but is not limited to employee 116.32 assistance counseling and the provision of guardian ad litem and 116.33 parenting time expeditor services. 116.34 (k) "Mental injury" means an injury to the psychological 116.35 capacity or emotional stability of a child as evidenced by an 116.36 observable or substantial impairment in the child's ability to 117.1 function within a normal range of performance and behavior with 117.2 due regard to the child's culture. 117.3 (l) "Threatened injury" means a statement, overt act, 117.4 condition, or status that represents a substantial risk of 117.5 physical or sexual abuse or mental injury. 117.6 (m) Persons who conduct assessments or investigations under 117.7 this section shall take into account accepted child-rearing 117.8 practices of the culture in which a child participates, which 117.9 are not injurious to the child's health, welfare, and safety. 117.10 [EFFECTIVE DATE.] This section is effective the day 117.11 following final enactment. 117.12 Sec. 17. Laws 2000, chapter 489, article 3, section 24, is 117.13 amended to read: 117.14 Sec. 24. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 117.15 (a) For fiscal year 2000, a school district shall receive 117.16 an amount of revenue equal to $8.15 times the district's 117.17 adjusted marginal cost pupil units. 117.18 (b) For fiscal year 2001, a school district shall receive 117.19 an amount of revenue equal to $19 times the district's adjusted 117.20 marginal cost pupil units. Special education cross-subsidy 117.21 revenue must be used to pay for a district's unfunded special 117.22 education costs that are currently cross-subsidized by a 117.23 district's general education revenue. 117.24 (c) The fiscal year 2001 revenue is paid entirely in fiscal 117.25 year 2001 based on estimated data. By January 31, 2002, the 117.26 department of children, families, and learning shall recalculate 117.27 the revenue for each district using actual data, and shall 117.28 adjust the general education aid paid to school districts for 117.29 fiscal year 2002 by the amount of the difference between the 117.30 estimated revenue and the actual revenue. 117.31 Sec. 18. [INTERAGENCY AUTISM COORDINATING COMMITTEE.] 117.32 (a) The commissioner of children, families, and learning 117.33 shall establish an interagency committee to coordinate state 117.34 efforts related to serving children with autism. The committee 117.35 shall include representatives of the departments of children, 117.36 families, and learning and human services; parents or guardians 118.1 of children with autism; pediatricians; local public health 118.2 officials; and representatives of private or nonprofit 118.3 organizations that advocate on behalf of children with autism. 118.4 (b) The interagency autism coordinating committee shall 118.5 study and recommend by December 1, 2001, to the committees in 118.6 the legislature charged with early childhood through grade 12 118.7 education policy and finance matters a plan for improving 118.8 efforts at early assessment and identification of autism in 118.9 young children. The plan must consider: 118.10 (1) all existing assessment program options; 118.11 (2) public and private funding sources including 118.12 programmatic funding for early and periodic screening, 118.13 diagnosis, and treatment; and 118.14 (3) current, research-based best practice models. 118.15 The plan must be designed to make optimal use of existing public 118.16 resources. 118.17 (c) The committee expires June 30, 2003. 118.18 [EFFECTIVE DATE.] This section is effective the day 118.19 following final enactment. 118.20 Sec. 19. [APPROPRIATIONS.] 118.21 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 118.22 LEARNING.] The sums indicated in this section are appropriated 118.23 from the general fund to the department of children, families, 118.24 and learning for the fiscal years designated. 118.25 Subd. 2. [SPECIAL EDUCATION AID.] For special education 118.26 aid according to Minnesota Statutes, section 125A.75: 118.27 $507,448,000 ..... 2002 118.28 $531,481,000 ..... 2003 118.29 The 2002 appropriation includes $47,400,000 for 2001 and 118.30 $460,048,000 for 2002. 118.31 The 2003 appropriation includes $51,116,000 for 2002 and 118.32 $480,365,000 for 2003. 118.33 Subd. 3. [AID FOR CHILDREN WITH A DISABILITY.] For aid 118.34 according to Minnesota Statutes, section 125A.75, subdivision 3, 118.35 for children with a disability placed in residential facilities 118.36 within the district boundaries for whom no district of residence 119.1 can be determined: 119.2 $1,877,000 ..... 2002 119.3 $2,033,000 ..... 2003 119.4 If the appropriation for either year is insufficient, the 119.5 appropriation for the other year is available. Any balance in 119.6 the first year does not cancel but is available in the second 119.7 year. 119.8 Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 119.9 teacher travel for home-based services according to Minnesota 119.10 Statutes, section 125A.75, subdivision 1: 119.11 $135,000 ..... 2002 119.12 $138,000 ..... 2003 119.13 The 2002 appropriation includes $13,000 for 2001 and 119.14 $122,000 for 2002. 119.15 The 2003 appropriation includes $13,000 for 2002 and 119.16 $125,000 for 2003. 119.17 Subd. 5. [SPECIAL EDUCATION EXCESS COST AID.] For excess 119.18 cost aid: 119.19 $102,665,000 ..... 2002 119.20 $104,773,000 ..... 2003 119.21 The 2002 appropriation includes $9,889,000 for 2001 and 119.22 $92,776,000 for 2002. 119.23 The 2003 appropriation includes $10,308,000 for 2002 and 119.24 $94,465,000 for 2003. 119.25 Subd. 6. [LITIGATION COSTS.] For paying the costs a 119.26 district incurs under Minnesota Statutes, section 125A.75, 119.27 subdivision 8: 119.28 $375,000 ..... 2002 119.29 $375,000 ..... 2003 119.30 Subd. 7. [TRANSITION PROGRAMS; STUDENTS WITH 119.31 DISABILITIES.] For aid for transition programs for pupils with 119.32 disabilities according to Minnesota Statutes, section 124D.454: 119.33 $8,954,000 ..... 2002 119.34 $8,939,000 ..... 2003 119.35 The 2002 appropriation includes $896,000 for 2001 and 119.36 $8,058,000 for 2002. 120.1 The 2003 appropriation includes $895,000 for 2002 and 120.2 $8,044,000 for 2003. 120.3 Subd. 8. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 120.4 reimbursing serving school districts for unreimbursed eligible 120.5 expenditures attributable to children placed in the serving 120.6 school district by court action under Minnesota Statutes, 120.7 section 125A.79, subdivision 4: 120.8 $350,000 ..... 2002 120.9 $350,000 ..... 2003 120.10 Subd. 9. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 120.11 special education out-of-state tuition according to Minnesota 120.12 Statutes, section 125A.79, subdivision 8: 120.13 $250,000 ..... 2002 120.14 $250,000 ..... 2003 120.15 Subd. 10. [BEST PRACTICES GRANT.] For a best practices 120.16 grant to intermediate school districts Nos. 287, 916, and 917: 120.17 $1,000,000 ..... 2002 120.18 The intermediate school districts must use the grant 120.19 proceeds to train teachers of special needs students under Laws 120.20 1998, chapter 398, article 5, section 42. 120.21 Subd. 11. [USE OF SYMPATHOMIMETIC MEDICATIONS; STUDY.] For 120.22 the purpose of contracting with a qualified expert to determine 120.23 and report, consistent with Minnesota Statutes, chapter 13, the 120.24 number and overall incidence rate of Minnesota children ages 120.25 three to 18, by age, grade level, gender, and race, diagnosed 120.26 with attention deficit disorder (ADD) or attention deficit 120.27 hyperactivity disorder (ADHD) currently taking sympathomimetic 120.28 medications such as Ritalin: 120.29 $50,000 ..... 2002 120.30 In preparing the report, the contractor also must determine 120.31 the number and overall incidence rate of children not identified 120.32 with ADD or ADHD currently taking sympathomimetic medications 120.33 such as Ritalin. The contractor is encouraged to examine the 120.34 number of children who take sympathomimetic medications at home 120.35 and not at school, the previous interventions tried with 120.36 children taking sympathomimetic medications, the types of 121.1 practitioners who prescribe the sympathomimetic medications, and 121.2 what pressures families have experienced in terms of providing 121.3 their children with sympathomimetic medications. The 121.4 commissioner must submit the report to the education committees 121.5 of the legislature by February 15, 2002. 121.6 ARTICLE 4 121.7 FACILITIES AND TECHNOLOGY 121.8 Section 1. Minnesota Statutes 2000, section 16B.616, 121.9 subdivision 4, is amended to read: 121.10 Subd. 4. [ENFORCEMENT.] (a) A statutory or home rule 121.11 charter city that is not covered by the code because of action 121.12 taken under section 16B.72 or 16B.73 is responsible for 121.13 enforcement in the city of the code's requirements for bleacher 121.14 safety. In all other areas where the code does not apply 121.15 because of action taken under section 16B.72 or 16B.73, the 121.16 county is responsible for enforcement of those requirements. 121.17 (b) Municipalities that have not adopted the code may 121.18 enforce the code requirements for bleacher safety by either 121.19 entering into a joint powers agreement for enforcement with 121.20 another municipality that has adopted the code or contracting 121.21 for enforcement with a qualified and certified building official 121.22 or state licensed design professional to enforce the code. 121.23 (c) Municipalities, school districts, organizations, 121.24 individuals, and other persons operating or owning places of 121.25 public accommodation with bleachers that are subject to the 121.26 safety requirements in subdivision 3 shall provide a signed 121.27 certification of compliance to the commissioner by January 1, 121.28 2002. For bleachers subject to the exception in subdivision 3, 121.29 clause (1), entities covered by this paragraph must have on file 121.30 a bleacher safety management plan and amortization schedule. 121.31 The certification shall be prepared by a qualified and certified 121.32 building official or state licensed design professional and 121.33 shall certify that the bleachers have been inspected and are in 121.34 compliance with the requirements of this section and are 121.35 structurally sound. For bleachers owned by a school district or 121.36 nonpublic school, the person the district or nonpublic school 122.1 designates to be responsible for buildings and grounds may make 122.2 the certification. 122.3 Sec. 2. Minnesota Statutes 2000, section 123B.53, 122.4 subdivision 1, is amended to read: 122.5 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 122.6 section, the eligible debt service revenue of a district is 122.7 defined as follows: 122.8 (1) the amount needed to produce between five and six 122.9 percent in excess of the amount needed to meet when due the 122.10 principal and interest payments on the obligations of the 122.11 district for eligible projects according to subdivision 2, 122.12 including the amounts necessary for repayment of energy loans 122.13 according to section 216C.37 or sections 298.292 to 298.298, 122.14 debt service loans and capital loans, lease purchase payments 122.15 under section 126C.40, subdivision 2, alternative facilities 122.16 levies under section 123B.59, subdivision 5, minus 122.17 (2) the amount of debt service excess levy reduction for 122.18 that school year calculated according to the procedure 122.19 established by the commissioner. 122.20 (b) The obligations in this paragraph are excluded from 122.21 eligible debt service revenue: 122.22 (1) obligations under section 123B.61; 122.23 (2) the part of debt service principal and interest paid 122.24 from the taconite environmental protection fund or northeast 122.25 Minnesota economic protection trust; 122.26 (3) obligations issued under Laws 1991, chapter 265, 122.27 article 5, section 18, as amended by Laws 1992, chapter 499, 122.28 article 5, section 24; and 122.29 (4) obligations under section 123B.62. 122.30 (c) For purposes of this section, if a preexisting school 122.31 district reorganized under sections 123A.35 to 123A.43, 123A.46, 122.32 and 123A.48 is solely responsible for retirement of the 122.33 preexisting district's bonded indebtedness, capital loans or 122.34 debt service loans, debt service equalization aid must be 122.35 computed separately for each of the preexisting districts. 122.36 (d) For purposes of this section, "revenue eligible for 123.1 second tier debt equalization" means the eligible debt service 123.2 revenue according to paragraphs (a) to (c) for projects 123.3 receiving a positive review and comment according to section 123.4 123B.70 and receiving voter approval or school district approval 123.5 after January 1, 2000, or, for projects not requiring a review 123.6 and comment, that are approved by the commissioner after January 123.7 1, 2000. 123.8 Sec. 3. Minnesota Statutes 2000, section 123B.53, 123.9 subdivision 2, is amended to read: 123.10 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 123.11 district's debt service levy qualify for debt service 123.12 equalization: 123.13 (1) debt service for repayment of principal and interest on 123.14 bonds issued before July 2, 1992; 123.15 (2) debt service for bonds refinanced after July 1, 1992, 123.16 if the bond schedule has been approved by the commissioner and, 123.17 if necessary, adjusted to reflect a 20-year maturity schedule; 123.18 and 123.19 (3) debt service for bonds issued after July 1, 1992, for 123.20 construction projects that have received a positive review and 123.21 comment according to section 123B.71, if the commissioner has 123.22 determined that the district has met the criteria under section 123.23 126C.69, subdivision 3,except section 126C.69, subdivision 3,123.24paragraph (a), clause (2),and if the bond schedule has been 123.25 approved by the commissioner and, if necessary, adjusted to 123.26 reflect a 20-year maturity schedule. 123.27 (b) The criterion described in section 126C.69, subdivision 123.28 3, paragraph (a), clause (9), does not apply to bonds authorized 123.29 by elections held before July 1, 1992. 123.30 (c) For the purpose of this subdivision the department 123.31 shall determine the eligibility for sparsity at the location of 123.32 the new facility, or the site of the new facility closest to the 123.33 nearest operating school if there is more than one new facility. 123.34 (d) Notwithstanding paragraphs (a) to (c), debt service for 123.35 repayment of principal and interest on bonds issued after July 123.36 1, 1997, does not qualify for debt service equalization aid 124.1 unless the primary purpose of the facility is to serve students 124.2 in kindergarten through grade 12. 124.3 Sec. 4. Minnesota Statutes 2000, section 123B.53, 124.4 subdivision 4, is amended to read: 124.5 Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 124.6 service equalization revenue of a district equals the sum of the 124.7 first tier debt service equalization revenue and the second tier 124.8 debt service equalization revenue. 124.9 (b) The first tier debt service equalization revenue of a 124.10 district equals the greater of zero or the eligible debt service 124.11 revenue minus the amount raised by a levy of 12 percent times 124.12 the adjusted net tax capacity of the district minus the second 124.13 tier debt service equalization revenue of the district. 124.14 (c) The second tier debt service equalization revenue of a 124.15 district equals the greater of zero or the lesser of the 124.16 eligible debt service revenue minus the amount raised by a levy 124.17 of 20 percent times the adjusted net tax capacity of the 124.18 district or the district's revenue eligible for second tier debt 124.19 equalization. 124.20 Sec. 5. Minnesota Statutes 2000, section 123B.53, 124.21 subdivision 5, is amended to read: 124.22 Subd. 5. [EQUALIZED DEBT SERVICE LEVY.]To obtain debt124.23service equalization revenue, a district must levy an amount not124.24to exceed the district's debt service equalization revenue(a) 124.25 The equalized debt service levy of a district equals the sum of 124.26 the first tier equalized debt service levy and the second tier 124.27 equalized debt service levy. 124.28 (b) A district's first tier equalized debt service levy 124.29 equals the district's first tier debt service equalization 124.30 revenue times the lesser of one or the ratio of: 124.31 (1) the quotient derived by dividing the adjusted net tax 124.32 capacity of the district for the year before the year the levy 124.33 is certified by the adjusted pupil units in the district for the 124.34 school year ending in the year prior to the year the levy is 124.35 certified; to 124.36 (2) $4,000. 125.1 (c) A district's second tier equalized debt service levy 125.2 equals the district's second tier debt service equalization 125.3 revenue times the lesser of one or the ratio of: 125.4 (1) the quotient derived by dividing the adjusted net tax 125.5 capacity of the district for the year before the year the levy 125.6 is certified by the adjusted pupil units in the district for the 125.7 school year ending in the year prior to the year the levy is 125.8 certified; to 125.9 (2) $10,000. 125.10 Sec. 6. Minnesota Statutes 2000, section 123B.54, is 125.11 amended to read: 125.12 123B.54 [DEBT SERVICE APPROPRIATION.] 125.13 (a)$33,141,000 in fiscal year 2000, $29,400,000 in fiscal125.14year 2001, $26,934,000 in fiscal year 2002, and $24,540,000 in125.15fiscal year 2003 and each year thereafter is$25,989,000 in 125.16 fiscal year 2002, $33,360,000 in fiscal year 2003, $32,897,000 125.17 in fiscal year 2004, and $28,547,000 in fiscal years 2005 and 125.18 later are appropriated from the general fund to the commissioner 125.19 of children, families, and learning for payment of debt service 125.20 equalization aid under section 123B.53. 125.21 (b) The appropriations in paragraph (a) must be reduced by 125.22 the amount of any money specifically appropriated for the same 125.23 purpose in any year from any state fund. 125.24 Sec. 7. Minnesota Statutes 2000, section 123B.57, 125.25 subdivision 3, is amended to read: 125.26 Subd. 3. [HEALTH AND SAFETY REVENUE.] A district's health 125.27 and safety revenue for a fiscal year equals: 125.28 (1) the sum of (a) the total approved cost of the 125.29 district's hazardous substance plan for fiscal years 1985 125.30 through 1989, plus (b) the total approved cost of the district's 125.31 health and safety program for fiscal year 1990 through the 125.32 fiscal year to which the levy is attributable, excluding 125.33 expenditures funded with bonds issued under section 123B.59 or 125.34 123B.62, or chapter 475; certificates of indebtedness or capital 125.35 notes under section 123B.61; levies under section 123B.58, 125.36 123B.59, 123B.63, or 126C.40, subdivision 1 or 6; and other 126.1 federal, state, or local revenues, minus 126.2 (2) the sum of (a) the district's total hazardous substance 126.3 aid and levy for fiscal years 1985 through 1989 under sections 126.4 124.245 and 275.125, subdivision 11c, plus (b) the district's 126.5 health and safety revenue under this subdivision, for years 126.6 before the fiscal year to which the levy is attributable, plus126.7(c) the amount of other federal, state, or local receipts for126.8the district's hazardous substance or health and safety programs126.9for fiscal year 1985 through the fiscal year to which the levy126.10is attributable. 126.11 Sec. 8. Minnesota Statutes 2000, section 123B.57, 126.12 subdivision 6, is amended to read: 126.13 Subd. 6. [USES OF HEALTH AND SAFETY REVENUE.] Health and 126.14 safety revenue may be used only for approved expenditures 126.15 necessary to correct fire safety hazards, life safety hazards, 126.16 or for the removal or encapsulation of asbestos from school 126.17 buildings or property owned or being acquired by the district, 126.18 asbestos-related repairs, cleanup and disposal of 126.19 polychlorinated biphenyls found in school buildings or 126.20 property owned or being acquired by the district, or the 126.21 cleanup, removal, disposal, and repairs related to storing 126.22 heating fuel or transportation fuels such as alcohol, gasoline, 126.23 fuel oil, and special fuel, as defined in section 296A.01, labor 126.24 and industry regulated facility and equipment hazards, and 126.25 health, safety, and environmental management. Health and safety 126.26 revenue must not be used to finance a lease purchase agreement, 126.27 installment purchase agreement, or other deferred payments 126.28 agreement. Health and safety revenue must not be used for the 126.29 construction of new facilities or the purchase of portable 126.30 classrooms, for interest or other financing expenses, or for 126.31 energy efficiency projects under section 123B.65. The revenue 126.32 may not be used for a building or property or part of a building 126.33 or property used for post-secondary instruction or 126.34 administration or for a purpose unrelated to elementary and 126.35 secondary education. 126.36 Sec. 9. Minnesota Statutes 2000, section 123B.71, 127.1 subdivision 1, is amended to read: 127.2 Subdivision 1. [CONSULTATION.] A school district shall 127.3 consult with the commissioner of children, families, and 127.4 learning before developing any plans and specifications to 127.5 construct, remodel, or improve the building or site of an 127.6 educational facility for which the estimated cost exceeds 127.7$100,000$250,000. This consultation shall occur before a 127.8 referendum for bonds, solicitation for bids, or use of capital 127.9 expenditure facilities revenue according to section 126C.10, 127.10 subdivision 14, clause (2). The commissioner may require the 127.11 district to participate in a management assistance plan before 127.12 conducting a review and comment on the project. 127.13 Sec. 10. Minnesota Statutes 2000, section 123B.71, 127.14 subdivision 4, is amended to read: 127.15 Subd. 4. [PLAN SUBMITTAL.] For a project for which 127.16 consultation is required under subdivision 1, the commissioner, 127.17 after the consultation required in subdivision 1, may require a 127.18 school district to submitthe followingpreliminary and final 127.19 plans for approval:127.20(a) two sets of preliminary plans for each new building or127.21addition, and127.22(b) one set of final plans for each construction,127.23remodeling, or site improvement project. The commissioner shall 127.24 approve or disapprove the plans within 90 days after submission. 127.25 Final plans shall meet all applicable state laws, rules, 127.26 and codes concerning public buildings, including sections 16B.59 127.27 to 16B.73.The department may furnish to a school district127.28plans and specifications for temporary school buildings127.29containing two classrooms or less.127.30 Sec. 11. Minnesota Statutes 2000, section 123B.71, 127.31 subdivision 8, is amended to read: 127.32 Subd. 8. [REVIEW AND COMMENT.] A school district, a 127.33 special education cooperative, or a cooperative unit of 127.34 government, as defined in section 123A.24, subdivision 2, must 127.35 not initiate an installment contract for purchase or a lease 127.36 agreement, hold a referendum for bonds, nor solicit bids for new 128.1 construction, expansion, or remodeling of an educational 128.2 facility that requires an expenditure in excess 128.3 of$400,000$500,000 per school site prior to review and comment 128.4 by the commissioner. The commissioner may exempt a facility 128.5 maintenance project funded with general education aid and levy 128.6 or health and safety revenue from this provision after reviewing 128.7 a written request from a school district describing the scope of 128.8 work. A school board shall not separate portions of a single 128.9 project into components to avoid the requirements of this 128.10 subdivision. 128.11 Sec. 12. Minnesota Statutes 2000, section 123B.71, 128.12 subdivision 9, is amended to read: 128.13 Subd. 9. [INFORMATION REQUIRED.] A school board proposing 128.14 to construct a facility described in subdivision 8 shall submit 128.15 to the commissioner a proposal containing information including 128.16 at least the following: 128.17(a) the geographic area proposed to be served, whether128.18within or outside the boundaries of the school district;128.19(b) the people proposed to be served, including census128.20findings and projections for the next ten years of the number of128.21preschool and school-aged people in the area;128.22(c) the reasonably anticipated need for the facility or128.23service to be provided;128.24(d) a description of the construction in reasonable detail,128.25including: the expenditures contemplated; the estimated annual128.26operating cost, including the anticipated salary and number of128.27new staff necessitated by the proposal; and an evaluation of the128.28energy efficiency and effectiveness of the construction,128.29including estimated annual energy costs; and a description of128.30the telephone capabilities of the facility and its classrooms;128.31(e) a description of existing facilities within the area to128.32be served and within school districts adjacent to the area to be128.33served; the extent to which existing facilities or services are128.34used; the extent to which alternate space is available,128.35including other school districts, post-secondary institutions,128.36other public or private buildings, or other noneducation129.1community resources; and the anticipated effect that the129.2facility will have on existing facilities and services;129.3(f) the anticipated benefit of the facility to the area;129.4(g) if known, the relationship of the proposed construction129.5to any priorities that have been established for the area to be129.6served;129.7(h) the availability and manner of financing the facility129.8and the estimated date to begin and complete the facility;129.9(i) desegregation requirements that cannot be met by any129.10other reasonable means;129.11(j) the relationship of the proposed facility to the129.12cooperative integrated learning needs of the area;129.13(k) the effects of the proposed facility on the district's129.14operating budget;129.15(l) the level of collaboration at the facility between the129.16district and other governmental or nonprofit entities; and129.17(m) the extent to which the district has minimized129.18administrative overhead among facilities.129.19 (1) the geographic area and population to be served, 129.20 preschool through grade 12 student enrollments for the past five 129.21 years, and student enrollment projections for the next five 129.22 years; 129.23 (2) a list of existing facilities by year constructed, 129.24 their uses, and an assessment of the extent to which alternate 129.25 facilities are available within the school district boundaries 129.26 and in adjacent school districts; 129.27 (3) a list of the specific deficiencies of the facility 129.28 that demonstrate the need for a new or renovated facility to be 129.29 provided, and a list of the specific benefits that the new or 129.30 renovated facility will provide to the students, teachers, and 129.31 community users served by the facility; 129.32 (4) the relationship of the project to any priorities 129.33 established by the school district, educational cooperatives 129.34 that provide support services, or other public bodies in the 129.35 service area; 129.36 (5) a specification of how the project will increase 130.1 community use of the facility and whether and how the project 130.2 will increase collaboration with other governmental or nonprofit 130.3 entities; 130.4 (6) a description of the project, including the 130.5 specification of site and outdoor space acreage and square 130.6 footage allocations for classrooms, laboratories, and support 130.7 spaces; estimated expenditures for the major portions of the 130.8 project; and the dates the project will begin and be completed; 130.9 (7) a specification of the source of financing the project; 130.10 the scheduled date for a bond issue or school board action; a 130.11 schedule of payments, including debt service equalization aid; 130.12 and the effect of a bond issue on local property taxes by the 130.13 property class and valuation; 130.14 (8) an analysis of how the proposed new or remodeled 130.15 facility will affect school district operational or 130.16 administrative staffing costs, and how the district's operating 130.17 budget will cover any increased operational or administrative 130.18 staffing costs; 130.19 (9) a description of the consultation with local or state 130.20 road and transportation officials on school site access and 130.21 safety issues, and the ways that the project will address those 130.22 issues; 130.23 (10) a description of how indoor air quality issues have 130.24 been considered and a certification that the architects and 130.25 engineers designing the facility will have professional 130.26 liability insurance; 130.27 (11) as required under section 123B.72, for buildings 130.28 coming into service after July 1, 2002, a certification that the 130.29 plans and designs for the extensively renovated or new 130.30 facility's heating, ventilation, and air conditioning systems 130.31 will meet or exceed code standards; will provide for the 130.32 monitoring of outdoor airflow and total airflow of ventilation 130.33 systems; and will provide an indoor air quality filtration 130.34 system that meets ASHRAE standard 52.1; and 130.35 (12) a specification of any desegregation requirements that 130.36 cannot be met by any other reasonable means. 131.1 Sec. 13. Minnesota Statutes 2000, section 126C.63, 131.2 subdivision 8, is amended to read: 131.3 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 131.4 effort debt service levy" means the lesser of: 131.5 (1) a levy in whichever of the following amounts is 131.6 applicable: 131.7 (a) in any district receiving a debt service loan for a 131.8 debt service levy payable in 2002 and thereafter, or granted a 131.9 capital loan after January 1, 2001, a levy in total dollar 131.10 amount computed at a rate of 30 percent of adjusted net tax 131.11 capacity for taxes payable in 2002 and thereafter; 131.12 (b) in any district receiving a debt service loan for a 131.13 debt service levy payable in 1991 and thereafter, or granted a 131.14 capital loan after January 1, 1990, a levy in a total dollar 131.15 amount computed at a rate of 24 percent of adjusted net tax 131.16 capacity for taxes payable in 1991 and thereafter; 131.17(b)(c) in any district granted a debt service loan after 131.18 July 31, 1981, or granted a capital loan which is approved after 131.19 July 31, 1981, a levy in a total dollar amount computed as a tax 131.20 rate of 21.92 percent on the adjusted net tax capacity for taxes 131.21 payable in 1991 and thereafter; or 131.22 (2) a levy in any district for which a capital loan was 131.23 approved prior to August 1, 1981, a levy in a total dollar 131.24 amount equal to the sum of the amount of the required debt 131.25 service levy and an amount which when levied annually will in 131.26 the opinion of the commissioner be sufficient to retire the 131.27 remaining interest and principal on any outstanding loans from 131.28 the state within 30 years of the original date when the capital 131.29 loan was granted. 131.30 The board in any district affected by the provisions of 131.31 clause (2) may elect instead to determine the amount of its levy 131.32 according to the provisions of clause (1). If a district's 131.33 capital loan is not paid within 30 years because it elects to 131.34 determine the amount of its levy according to the provisions of 131.35 clause (2), the liability of the district for the amount of the 131.36 difference between the amount it levied under clause (2) and the 132.1 amount it would have levied under clause (1), and for interest 132.2 on the amount of that difference, must not be satisfied and 132.3 discharged pursuant to Minnesota Statutes 1988, or an earlier 132.4 edition of Minnesota Statutes if applicable, section 124.43, 132.5 subdivision 4. 132.6 Sec. 14. Minnesota Statutes 2000, section 126C.69, 132.7 subdivision 2, is amended to read: 132.8 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 132.9 1999, a district is not eligible for a capital loan unless the 132.10 district's estimated net debt tax rate as computed by the 132.11 commissioner after debt service equalization aid would be more 132.12 than2430 percent of adjusted net tax capacity. The estimate 132.13 must assume a 20-year maturity schedule for new debt. 132.14 Sec. 15. Minnesota Statutes 2000, section 126C.69, 132.15 subdivision 3, is amended to read: 132.16 Subd. 3. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 132.17 district or a joint powers district that intends to apply for a 132.18 capital loan must submit a proposal to the commissioner for 132.19 review and comment according to section 123B.71 by July 1 of an 132.20 odd-numbered year. The commissioner shall prepare a review and 132.21 comment on the proposed facility, regardless of the amount of 132.22 the capital expenditure required to construct the facility. In 132.23 addition to the information provided under section 123B.71, 132.24 subdivision 9, the commissioner shall require that predesign 132.25 packages comparable to those required under section 16B.335 be 132.26 prepared by the applicant school district. The predesign 132.27 packages must be sufficient to define the scope, cost, and 132.28 schedule of the project and must demonstrate that the project 132.29 has been analyzed according to appropriate space needs standards 132.30 and also consider the following criteria in determining whether 132.31 to make a positive review and comment. 132.32 (a) To grant a positive review and comment the commissioner 132.33 shall determine that all of the following conditions are met: 132.34 (1) the facilities are needed for pupils for whom no 132.35 adequate facilities exist or will exist; 132.36 (2)the district will serve, on average, at least 80 pupils133.1per grade or is eligible for elementary or secondary sparsity133.2revenuethere is evidence to indicate that the facilities will 133.3 have a useful public purpose for at least the term of the bonds; 133.4 (3) no form of cooperation with another district would 133.5 provide the necessary facilities; 133.6 (4) the facilities are comparable in size and quality to 133.7 facilities recently constructed in other districts that have 133.8 similar enrollments; 133.9 (5) the facilities are comparable in size and quality to 133.10 facilities recently constructed in other districts that are 133.11 financed without a capital loan; 133.12 (6) the district is projected tomaintain or increase its133.13average daily membership over the next five years or is eligible133.14for elementary or secondary sparsity revenuehave adequate funds 133.15 in its general operating budget to support a quality education 133.16 for its students for at least the next five years; 133.17 (7) the current facility poses a threat to the life, 133.18 health, and safety of pupils, and cannot reasonably be brought 133.19 into compliance with fire, health, or life safety codes; 133.20 (8) the district has made a good faith effort, as evidenced 133.21 by its maintenance expenditures, to adequately maintain the 133.22 existing facility during the previous ten years and to comply 133.23 with fire, health, and life safety codes and state and federal 133.24 requirements for handicapped accessibility; 133.25 (9) the district has made a good faith effort to encourage 133.26 integration of social service programs within the new facility; 133.27and133.28 (10) evaluations by boards of adjacent districts have been 133.29 received; and 133.30 (11) the proposal includes a comprehensive technology plan 133.31 that assures information access for the students, parents, and 133.32 community. 133.33 (b) The commissioner may grant a negative review and 133.34 comment if: 133.35 (1) the state demographer has examined the population of 133.36 the communities to be served by the facility and determined that 134.1 the communities have not grown during the previous five years; 134.2 (2) the state demographer determines that the economic and 134.3 population bases of the communities to be served by the facility 134.4 are not likely to grow or to remain at a level sufficient, 134.5 during the next ten years, to ensure use of the entire facility; 134.6 (3) the need for facilities could be met within the 134.7 district or adjacent districts at a comparable cost by leasing, 134.8 repairing, remodeling, or sharing existing facilities or by 134.9 using temporary facilities; 134.10 (4) the district plans do not include cooperation and 134.11 collaboration with health and human services agencies and other 134.12 political subdivisions; or 134.13 (5) if the application is for new construction, an existing 134.14 facility that would meet the district's needs could be purchased 134.15 at a comparable cost from any other source within the area. 134.16 Sec. 16. Minnesota Statutes 2000, section 126C.69, 134.17 subdivision 9, is amended to read: 134.18 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 134.19 recommended for approval for a district exceeding an amount 134.20 computed as follows: 134.21 (1) the amount requested by the district under subdivision 134.22 6; 134.23 (2) plus the aggregate principal amount of general 134.24 obligation bonds of the district outstanding on June 30 of the 134.25 year following the year the application was received, not 134.26 exceeding the limitation on net debt of the district in section 134.27 475.53, subdivision 4, or363450 percent of its adjusted net 134.28 tax capacity as most recently determined, whichever is less; 134.29 (3) less the maximum net debt permissible for the district 134.30 on December 1 of the year the application is received, under the 134.31 limitation in section 475.53, subdivision 4, or363450 percent 134.32 of its adjusted net tax capacity as most recently determined, 134.33 whichever is less; 134.34 (4) less any amount by which the amount voted exceeds the 134.35 total cost of the facilities for which the loan is granted. 134.36 (b) The loan may be approved in an amount computed as 135.1 provided in paragraph (a), clauses (1) to (3), subject to later 135.2 reduction according to paragraph (a), clause (4). 135.3 Sec. 17. Minnesota Statutes 2000, section 126C.69, 135.4 subdivision 12, is amended to read: 135.5 Subd. 12. [CONTRACT.] (a) Each capital loan must be 135.6 evidenced by a contract between the district and the state 135.7 acting through the commissioner. The contract must obligate the 135.8 state to reimburse the district, from the maximum effort school 135.9 loan fund, for eligible capital expenses for construction of the 135.10 facility for which the loan is granted, an amount computed as 135.11 provided in subdivision 9. The commissioner must receive from 135.12 the district a certified resolution of the board estimating the 135.13 costs of construction and reciting that contracts for 135.14 construction of the facilities for which the loan is granted 135.15 have been awardedand, that bonds of the district have been 135.16 issued and sold in the amount necessary to pay all estimated 135.17 costs of construction in excess of the amount of the loan, and 135.18 that all work, when completed, will meet or exceed standards 135.19 established in the state building code. The contract must 135.20 obligate the district to repay the loan out of the excesses of 135.21 its maximum effort debt service levy over its required debt 135.22 service levy, including interest at a rate equal to the weighted 135.23 average annual rate payable on Minnesota state school loan bonds 135.24 issued or reissued for the projectand disbursed to the135.25districts on a reimbursement basis, but in no event less than135.263-1/2 percent per year on the principal amount from time to time135.27unpaid. 135.28 (b) The district must each year, as long as it is indebted 135.29 to the state, levy for debt service (i) the amount of its 135.30 maximum effort debt service levy or (ii) the amount of its 135.31 required debt service levy, whichever is greater, except as the 135.32 required debt service levy may be reduced by a loan under 135.33 section 126C.68. The district shall remit payments to the 135.34 commissioner according to section 126C.71. 135.35 (c) The commissioner shall supervise the collection of 135.36 outstanding accounts due the fund and may, by notice to the 136.1 proper county auditor, require the maximum levy to be made as 136.2 required in this subdivision. Interest on capital loans must be 136.3 paid on December 15 of the year after the year the loan is 136.4 granted and annually in later years. By September 30, the 136.5 commissioner shall notify the county auditor of each county 136.6 containing taxable property situated within the district of the 136.7 amount of the maximum effort debt service levy of the district 136.8 for that year. The county auditor or auditors shall extend upon 136.9 the tax rolls an ad valorem tax upon all taxable property within 136.10 the district in the aggregate amount so certified. 136.11 Sec. 18. Minnesota Statutes 2000, section 126C.69, 136.12 subdivision 15, is amended to read: 136.13 Subd. 15. [BOND SALE LIMITATIONS.] A district having an 136.14 outstanding state loan must not issue and sell any bonds on the 136.15 public market, except to refund state loans, unless it agrees to 136.16 make the maximum effort debt service levy in each later year at 136.17 the higher rate provided in section 126C.63, subdivision 8, and 136.18 unless it schedules the maturities of the bonds according to 136.19 section 475.54, subdivision 2. A district that refunds bonds at 136.20 a lower interest rate may continue to make the maximum effort 136.21 debt service levy in each later year at the current rate 136.22 provided in section 126C.63, subdivision 8, if the district can 136.23 demonstrate to the commissioner's satisfaction that the 136.24 district's repayments of the state loan will not be reduced 136.25 below the previous year's level. The district must report each 136.26 sale to the commissioner. 136.27 For a capital loan issued prior to July 1, 2001, aftera136.28 the district's capital loan has been outstanding for 30 years, 136.29 the district must not issue bonds on the public market except to 136.30 refund the loan. 136.31 For a capital loan issued on or after July 1, 2001, after 136.32 the district's capital loan has been outstanding for 20 years, 136.33 the district must not issue bonds on the public market except to 136.34 refund the loan. 136.35 Sec. 19. Minnesota Statutes 2000, section 136D.281, 136.36 subdivision 4, is amended to read: 137.1 Subd. 4. [REFERENDUM.] (a) The intermediate school board 137.2shall notmay sell and issue bonds for acquisition or betterment 137.3 purposesuntilin an aggregate amount not to exceed $8,000,000 137.4 if: 137.5 (1) each member school district board has adopted a 137.6 resolution authorizing the project; 137.7 (2) the intermediate board has prepared and published in a 137.8 newspaper of general circulation in the district a notice of the 137.9 public meeting on the intermediate district's intent to sell 137.10 bonds; 137.11 (3) the intermediate board has adopted a resolution 137.12 authorizing the bonds; and 137.13 (4) the question of their issuance has been submitted to 137.14 the voters of the intermediate school district at a special 137.15 election held in and for the intermediate district. 137.16 (b) The date of the election, the question to be submitted, 137.17 and all other necessary conduct of the election shall be fixed 137.18 by the intermediate school board. The election shall be 137.19 conducted and canvassed under the direction of the intermediate 137.20 school board in accordance with chapter 205A, insofar as 137.21 applicable. 137.22 (c) If a majority of the total number of votes cast on the 137.23 question within the intermediate school district is in favor of 137.24 the question, the intermediate school board may proceed with the 137.25 sale and issuance of the bonds. 137.26 (d) The bonds shall be general obligations of the 137.27 intermediate school district; however, each member school 137.28 district must each year certify its proportionate share of the 137.29 debt service levy on the bonds, with the allocation of its share 137.30 of that levy determined in accordance with the resolution 137.31 authorizing the project previously adopted by each member school 137.32 board. For purposes of section 123B.53, the debt service levies 137.33 certified for this purpose by an individual member school 137.34 district shall be considered debt service levies of that school 137.35 district. By July 1 and December 1 of each year, the school 137.36 board of each member school district shall transfer to the 138.1 intermediate school district an amount equal to 50 percent of 138.2 the debt service levy certified by that member school district 138.3 in the previous fiscal year to pay its proportionate share. 138.4 Sec. 20. Minnesota Statutes 2000, section 136D.741, 138.5 subdivision 4, is amended to read: 138.6 Subd. 4. [REFERENDUM.] (a) The intermediate school board 138.7shall notmay sell and issue bonds for acquisition or betterment 138.8 purposesuntilin an aggregate amount not to exceed $8,000,000 138.9 if: 138.10 (1) each member school district board has adopted a 138.11 resolution authorizing the project; 138.12 (2) the intermediate board has prepared and published in a 138.13 newspaper of general circulation in the district a notice of the 138.14 public meeting on the intermediate district's intent to sell 138.15 bonds; 138.16 (3) the intermediate board has adopted a resolution 138.17 authorizing the bonds; and 138.18 (4) the question of their issuance has been submitted to 138.19 the voters of the intermediate school district at a special 138.20 election held in and for such intermediate district. 138.21 (b) The date of such election, the question to be 138.22 submitted, and all other necessary conduct of such election 138.23 shall be fixed by the intermediate school board and said 138.24 election shall be conducted and canvassed under the direction of 138.25 the intermediate school board in accordance with chapter 205A, 138.26 insofar as the same may be deemed applicable. 138.27 (c) If a majority of the total number of votes cast on the 138.28 question within the intermediate school district is in favor of 138.29 the question, the intermediate school board may thereupon 138.30 proceed with the sale and the issuance of said bonds. 138.31 (d) The bonds shall be general obligations of the 138.32 intermediate school district; however, each member school 138.33 district must each year certify its proportionate share of the 138.34 debt service levy on the bonds, with the allocation of its share 138.35 of that levy determined in accordance with the resolution 138.36 authorizing the project previously adopted by each member school 139.1 board. For purposes of section 123B.53, the debt service levies 139.2 certified for this purpose by an individual member school 139.3 district shall be considered debt service levies of that school 139.4 district. By July 1 and December 1 of each year, the school 139.5 board of each member school district shall transfer to the 139.6 intermediate school district an amount equal to 50 percent of 139.7 the debt service levy certified by that member school district 139.8 in the previous fiscal year to pay its proportionate share. 139.9 Sec. 21. Minnesota Statutes 2000, section 136D.88, 139.10 subdivision 4, is amended to read: 139.11 Subd. 4. [REFERENDUM.] (a) The intermediate school board 139.12shall notmay sell and issue bonds for acquisition or betterment 139.13 purposesuntilin an aggregate amount not to exceed $8,000,000 139.14 if: 139.15 (1) each member school district board has adopted a 139.16 resolution authorizing the project; 139.17 (2) the intermediate board has prepared and published in a 139.18 newspaper of general circulation in the district a notice of the 139.19 public meeting on the intermediate district's intent to sell 139.20 bonds; 139.21 (3) the intermediate board has adopted a resolution 139.22 authorizing the bonds; and 139.23 (4) the question of their issuance has been submitted to 139.24 the voters of the intermediate school district at a special 139.25 election held in and for the intermediate district. 139.26 (b) The date of the election, the question to be submitted, 139.27 and all other necessary conduct of the election shall be fixed 139.28 by the intermediate school board. The election shall be 139.29 conducted and canvassed under the direction of the intermediate 139.30 school board in accordance with chapter 205A, insofar as 139.31 applicable. 139.32 (c) If a majority of the total number of votes cast on the 139.33 question within the intermediate school district is in favor of 139.34 the question, the intermediate school board may thereupon 139.35 proceed with the sale and issuance of the bonds. 139.36 (d) The bonds shall be general obligations of the 140.1 intermediate school district; however, each member school 140.2 district must each year certify its proportionate share of the 140.3 debt service levy on the bonds, with the allocation of its share 140.4 of that levy determined in accordance with the resolution 140.5 authorizing the project previously adopted by each member school 140.6 board. For purposes of section 123B.53, the debt service levies 140.7 certified for this purpose by an individual member school 140.8 district shall be considered debt service levies of that school 140.9 district. By July 1 and December 1 of each year, the school 140.10 board of each member school district shall transfer to the 140.11 intermediate school district an amount equal to 50 percent of 140.12 the debt service levy certified by that member school district 140.13 in the previous fiscal year to pay its proportionate share. 140.14 Sec. 22. Minnesota Statutes 2000, section 475.53, 140.15 subdivision 4, is amended to read: 140.16 Subd. 4. [SCHOOL DISTRICTS.] Except as otherwise provided 140.17 by law, no school district shall be subject to a net debt in 140.18 excess often15 percent of the actual market value of all 140.19 taxable property situated within its corporate limits, as 140.20 computed in accordance with this subdivision. The county 140.21 auditor of each county containing taxable real or personal 140.22 property situated within any school district shall certify to 140.23 the district upon request the market value of all such 140.24 property. Whenever the commissioner of revenue, in accordance 140.25 with section 127A.48, subdivisions 1 to 6, has determined that 140.26 the net tax capacity of any district furnished by county 140.27 auditors is not based upon the market value of taxable property 140.28 in the district, the commissioner of revenue shall certify to 140.29 the district upon request the ratio most recently ascertained to 140.30 exist between such value and the actual market value of property 140.31 within the district. The actual market value of property within 140.32 a district, on which its debt limit under this subdivision is 140.33 based, is (a) the value certified by the county auditors, or (b) 140.34 this value divided by the ratio certified by the commissioner of 140.35 revenue, whichever results in a higher value. 140.36 Sec. 23. Laws 2000, chapter 489, article 5, section 21, is 141.1 amended to read: 141.2 Sec. 21. [ONE-TIME DEFERRED MAINTENANCE AID.] 141.3 (a) For fiscal year 2001 only, a district's one-time 141.4 deferred maintenance aid is equal to: 141.5 (1) $10 times the adjusted marginal cost pupil units for 141.6 the school year; plus 141.7 (2) $21.90 times the adjusted marginal cost pupil units for 141.8 the school year for a district that does not qualify for 141.9 alternative facilities bonding under Minnesota Statutes, section 141.10 123B.59, or under Laws 1999, chapter 241, article 4, section 25. 141.11 (b) Aid received under this section must be used for 141.12 deferred maintenance, to make accessibility improvements, or to 141.13 make fire, safety, or health repairs. 141.14 (c) This aid is paid entirely in fiscal year 2001 based on 141.15 estimated data. By January 31, 2002, the department of 141.16 children, families, and learning shall recalculate the aid for 141.17 each district using actual data, and shall adjust the general 141.18 education aid paid to school districts for fiscal year 2002 by 141.19 the amount of the difference between the estimated aid and the 141.20 actual aid. 141.21 Sec. 24. Laws 2000, chapter 489, article 7, section 15, 141.22 subdivision 3, is amended to read: 141.23 Subd. 3. [COOPERATIVE SECONDARY FACILITYFACILITIES NEEDS; 141.24 PLANNING AND EXPENSES.] For a grant and administrative expenses 141.25to facilitatefor facilities and curricular planningfor a141.26cooperative secondary facility under a joint powers agreement141.27 for schooldistrictdistricts Nos. 411, Balaton, 402, Hendricks, 141.28 403, Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 141.29 409, Tyler: 141.30 $100,000 .....20012002 141.31 This is a one-time appropriation. This appropriation is 141.32 available until June 30, 2003. 141.33 Sec. 25. [RESTORATION OF DISABLED ACCESS LEVY AUTHORITY.] 141.34 Subdivision 1. [PINE CITY.] Notwithstanding the time 141.35 limits in Minnesota Statutes, section 123B.58, subdivision 3, 141.36 independent school district No. 578, Pine City, may levy its 142.1 remaining disabled access levy authority over five or fewer 142.2 years. 142.3 Subd. 2. [SOUTHLAND.] Notwithstanding the time limits in 142.4 Minnesota Statutes, section 123B.58, subdivision 3, independent 142.5 school district No. 500, Southland, may levy up to $66,000 of 142.6 its remaining disabled access levy authority over five or fewer 142.7 years. 142.8 [EFFECTIVE DATE.] This section is effective the day 142.9 following final enactment. 142.10 Sec. 26. [INTERMEDIATE SCHOOL DISTRICTS; BONDING AUTHORITY 142.11 WITHOUT VOTER APPROVAL.] 142.12 Subdivision 1. [INTERMEDIATE SCHOOL DISTRICT NO. 142.13 916.] Notwithstanding Minnesota Statutes, chapter 136D, the 142.14 school board of intermediate school district No. 916 may sell 142.15 and issue up to $1,500,000 in bonds for acquisition and 142.16 betterment purposes upon adoption of a resolution by the board 142.17 authorizing the bonds. 142.18 The bonds shall be general obligations of the intermediate 142.19 school district; however, each member school district must each 142.20 year certify its proportionate share of the debt service levy on 142.21 the bonds, with the allocation of its share of that levy 142.22 determined in accordance with the resolution authorizing the 142.23 project previously adopted by each member school board. For 142.24 purposes of section 123B.53, the debt service levies certified 142.25 for this purpose by an individual member school district shall 142.26 be considered debt service levies of that school district. By 142.27 July 1 and December 1 of each year, the school board of each 142.28 member school district shall transfer to the intermediate school 142.29 district an amount equal to 50 percent of the debt service levy 142.30 certified by that member school district in the previous fiscal 142.31 year to pay its proportionate share. 142.32 Subd. 2. [INTERMEDIATE SCHOOL DISTRICT NO. 142.33 917.] Notwithstanding Minnesota Statutes, chapter 136D, the 142.34 school board of intermediate school district No. 917 may sell 142.35 and issue up to $4,000,000 in bonds for acquisition and 142.36 betterment purposes upon adoption of a resolution by the board 143.1 authorizing the bonds. 143.2 The bonds shall be general obligations of the intermediate 143.3 school district; however, each member school district must each 143.4 year certify its proportionate share of the debt service levy on 143.5 the bonds, with the allocation of its share of that levy 143.6 determined in accordance with the resolution authorizing the 143.7 project previously adopted by each member school board. For 143.8 purposes of section 123B.53, the debt service levies certified 143.9 for this purpose by an individual member school district shall 143.10 be considered debt service levies of that school district. By 143.11 July 1 and December 1 of each year, the school board of each 143.12 member school district shall transfer to the intermediate school 143.13 district an amount equal to 50 percent of the debt service levy 143.14 certified by that member school district in the previous fiscal 143.15 year to pay its proportionate share. 143.16 Sec. 27. [HIGH-PERFORMANCE ENVIRONMENTALLY SUSTAINABLE 143.17 SCHOOL FACILITIES.] 143.18 Subdivision 1. [TECHNICAL ASSISTANCE.] The department of 143.19 children, families, and learning, must provide technical 143.20 assistance to a school district interested in providing 143.21 environmentally sustainable facilities. 143.22 Subd. 2. [DEFINITION.] High-performance environmentally 143.23 sustainable school projects involve elements for simpler school 143.24 building design, with lower energy costs and lower life-cycle 143.25 building costs. The goals of high-performance environmentally 143.26 sustainable school facilities are to: 143.27 (1) reduce the long-term life-cycle building costs of 143.28 schools; 143.29 (2) reduce the energy costs of schools; 143.30 (3) improve the indoor air quality of schools; and 143.31 (4) allow school districts to shift the investment of 143.32 tax-generated school revenues from utility bills and excessive 143.33 building repair costs to funding for school facilities 143.34 preventive maintenance projects and general education costs. 143.35 Sec. 28. [APPROPRIATIONS.] 143.36 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 144.1 LEARNING.] The sums indicated in this section are appropriated 144.2 from the general fund to the department of children, families, 144.3 and learning for the fiscal years designated. 144.4 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 144.5 aid according to Minnesota Statutes, section 123B.57, 144.6 subdivision 5: 144.7 $14,980,000 ..... 2002 144.8 $14,550,000 ..... 2003 144.9 The 2002 appropriation includes $1,480,000 for 2001 and 144.10 $13,500,000 for 2002. 144.11 The 2003 appropriation includes $1,500,000 for 2002 and 144.12 $13,050,000 for 2003. 144.13 Subd. 3. [DEBT SERVICE AID.] For debt service aid 144.14 according to Minnesota Statutes, section 123B.53, subdivision 6: 144.15 $25,989,000 ..... 2002 144.16 $33,360,000 ..... 2003 144.17 The 2002 appropriation includes $2,890,000 for 2001 and 144.18 $23,099,000 for 2002. 144.19 The 2003 appropriation includes $2,567,000 for 2002 and 144.20 $30,793,000 for 2003. 144.21 Subd. 4. [INTERACTIVE TELEVISION (ITV) AID.] For 144.22 interactive television (ITV) aid under Minnesota Statutes, 144.23 section 126C.40, subdivision 4: 144.24 $1,418,000 ..... 2002 144.25 $ 129,000 ..... 2003 144.26 The 2002 appropriation includes $260,000 for 2001 and 144.27 $1,158,000 for 2002. 144.28 The 2003 appropriation includes $129,000 for 2002 and $0 144.29 for 2003. 144.30 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 144.31 alternative facilities bonding aid, according to Minnesota 144.32 Statutes, section 123B.59, subdivision 1: 144.33 $19,279,000 ..... 2002 144.34 $19,287,000 ..... 2003 144.35 The 2002 appropriation includes $1,921,000 for 2001 and 144.36 $17,358,000 for 2002. 145.1 The 2003 appropriation includes $1,929,000 for 2002 and 145.2 $17,358,000 for 2003. 145.3 Subd. 6. [TELECOMMUNICATION ACCESS COST REVENUE.] For 145.4 telecommunication access cost revenue under Minnesota Statutes, 145.5 section 125B.25: 145.6 $17,968,000 ..... 2002 145.7 $ 1,852,000 ..... 2003 145.8 The 2002 appropriation includes $1,300,000 for 2001 and 145.9 $16,668,000 for 2002. 145.10 The 2003 appropriation includes $1,852,000 for 2002 and $0 145.11 for 2003. 145.12 If the appropriation amount is insufficient, the 145.13 commissioner shall reduce the reimbursement rate in Minnesota 145.14 Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 145.15 for the 2001-2002 school year shall be prorated. The 145.16 reimbursement rate shall not exceed 100 percent. 145.17 Subd. 7. [FLOODS; DECLINING PUPIL AID.] For declining 145.18 pupil aid under Laws 1999, chapter 241, article 4, section 23: 145.19 $921,000 ..... 2002 145.20 Subd. 8. [CROSSWINDS; PROJECT COMPLETION.] For a 145.21 metropolitan magnet school grant to school district No. 6067, 145.22 Tri-District, to acquire land for, design, construct, furnish, 145.23 and equip a new school building. 145.24 $1,700,000 ..... 2002 145.25 The appropriation in this subdivision is in addition to 145.26 appropriations in Laws 1998, chapter 404, section 5, subdivision 145.27 5; Laws 1999, chapter 240, article 1, section 3; and Laws 2000, 145.28 chapter 492, article 1, section 5, subdivision 2. 145.29 Sec. 29. [REPEALER.] 145.30 Minnesota Statutes 2000, sections 123B.71, subdivisions 3 145.31 and 10; 136D.281, subdivision 8; 136D.741, subdivision 8; 145.32 136D.88, subdivision 8; and 136D.94, are repealed. 145.33 ARTICLE 5 145.34 NUTRITION; SCHOOL ACCOUNTING; AND OTHER PROGRAMS 145.35 Section 1. Minnesota Statutes 2000, section 123B.75, is 145.36 amended by adding a subdivision to read: 146.1 Subd. 10. [RESERVED REVENUE.] (a) In addition to any other 146.2 reserve accounts authorized to be established pursuant to other 146.3 law, a school district may establish one or more reserve 146.4 accounts in the general fund which will contain revenue 146.5 appropriated to those accounts by the board. Revenue contained 146.6 in a reserve account may only be used for the purposes specified 146.7 by the board and shall not be available for other purposes. 146.8 (b) A school district must establish a reserve account for 146.9 secondary vocational programming. A district must reserve up to 146.10 the amount of secondary vocational revenue that it received in 146.11 fiscal year 2001. 146.12 Sec. 2. Minnesota Statutes 2000, section 123B.80, 146.13 subdivision 1, is amended to read: 146.14 Subdivision 1. [COMMISSIONER'S AUTHORIZATION.] The 146.15 commissioner may authorize a board to transfer money from any 146.16 fund or accountother than the debt redemption fundto another 146.17 fund or account according to this section. 146.18 Sec. 3. [124D.1156] [FAST BREAK TO LEARNING BREAKFAST 146.19 PROGRAM.] 146.20 Subdivision 1. [ELIGIBILITY.] The commissioner shall 146.21 provide funding to the 41 targeted breakfast program grant 146.22 recipients under Laws 1997, First Special Session chapter 4, 146.23 article 6, section 19, and then to public or nonpublic 146.24 elementary schools that participate in the federal School 146.25 Breakfast and Lunch Programs where at least 33 percent of the 146.26 lunches served to children during the second preceding school 146.27 year were provided free or at a reduced price. Schools shall 146.28 not charge student households for fast break to learning meals. 146.29 Subd. 2. [PROGRAM.] The fast break to learning school 146.30 breakfast program enables schools participating in the federal 146.31 School Breakfast and Lunch Programs to cover the costs for 146.32 school breakfast without charging student households. 146.33 Subd. 3. [PROGRAM REIMBURSEMENT.] State funds are provided 146.34 to reimburse fast break to learning school breakfasts. Each 146.35 school year, the state must reimburse schools for the difference 146.36 between the per meal federal rate of reimbursement and the per 147.1 meal state average cost. Meals that are reimbursed at a federal 147.2 rate that is equal to or higher than the state average cost do 147.3 not qualify for fast break to learning funds. Schools must use 147.4 the funds to provide school breakfast to school children every 147.5 day school is in session. 147.6 Sec. 4. [124D.1195] [COMMODITY DONATED FOOD REVOLVING 147.7 FUND.] 147.8 A revolving fund is established for the purpose of 147.9 depositing cash received for commodity donated foods that have 147.10 been lost, damaged, recalled, or diverted for processing. The 147.11 state shall use the fund to issue payments for the value of the 147.12 lost, damaged, recalled, or diverted commodity donated foods and 147.13 related costs. 147.14 Sec. 5. Minnesota Statutes 2000, section 127A.45, 147.15 subdivision 12, is amended to read: 147.16 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 147.17 hundred percent of the aid for the current fiscal year must be 147.18 paid for the following aids: reimbursement for transportation 147.19 to post-secondary institutions, according to section 124D.09, 147.20 subdivision 22; aid for the program for adults with 147.21 disabilities, according to section 124D.56, subdivision 2; 147.22school lunch aid, according to section 124D.111;hearing 147.23 impaired support services aid, according to section 124D.57; 147.24 Indian post-secondary preparation grants according to section 147.25 124D.85; integration grants according to Laws 1989, chapter 329, 147.26 article 8, section 14, subdivision 3; and debt service aid 147.27 according to section 123B.53, subdivision 6. 147.28 Sec. 6. Minnesota Statutes 2000, section 127A.45, is 147.29 amended by adding a subdivision to read: 147.30 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 147.31 subdivision 3, the state shall pay 100 percent of the aid for 147.32 the current year according to sections 124D.111, 124D.115, 147.33 124D.1156, and 124D.118 based on submitted monthly vouchers 147.34 showing meals and milk served. 147.35 Sec. 7. Minnesota Statutes 2000, section 475.61, 147.36 subdivision 3, is amended to read: 148.1 Subd. 3. [IRREVOCABILITY.] (a) Tax levies so made and 148.2 filed shall be irrevocable, except as provided in this 148.3 subdivision. 148.4 (b) For purposes of this subdivision, "excess debt 148.5 redemption fund balance" means the greater of zero or the 148.6 balance in the district's debt redemption fund as of June 30 of 148.7 the fiscal year ending in the year before the year the levy is 148.8 certified, minus any debt redemption fund balance attributable 148.9 to refunding of existing bonds, minus the amount of the levy 148.10 reduction for the current year and the prior year under 148.11 paragraphs (e) and (f), minus five percent of the district's 148.12 required debt service levy for the next year. 148.13 (c) By July 15 each year, a district shall report to the 148.14 commissioner of children, families, and learning the amount of 148.15 the districts' debt redemption fund balance as of June 30 of the 148.16 prior year attributable to refunding of existing bonds. 148.17 (d) By August 15 each year, the commissioner shall 148.18 determine the excess debt redemption fund balance for each 148.19 school district, and shall certify the amount of the excess 148.20 balance to the school district superintendent. 148.21 (e) In each year whenthere is on hand anya district has 148.22 an excessamount in thedebt redemption fundof a school148.23district at the time the district makes its property tax levies,148.24the amount of the excess shall be certified by the school board148.25to the commissioner.balance, the commissioner shall report the 148.26 amount of the excess to the county auditor and the auditor shall 148.27 reduce the tax levy otherwise to be included in the rolls next 148.28 prepared by the amount certified.The commissioner shall148.29prescribe the form and calculation to be used in computing the148.30excess amount.148.31 (f) The school board may, with the approval of the 148.32 commissioner, retain all or part of the excessamountbalance if 148.33 it is necessary to ensure the prompt and full payment of the 148.34 obligations and any call premium on the obligations, or will be 148.35 used for redemption of the obligations in accordance with their 148.36 terms. A school district requesting authority to retain all or 149.1 part of the excess balance shall provide written documentation 149.2 to the commissioner describing the rationale for its request by 149.3 September 15. A school district that retains an excess may 149.4 request to transfer the excess to its operating capital account 149.5 in the general fund under section 123B.80. The school board 149.6 may, with the approval of the commissioner, specify a tax levy 149.7 in a higher amount if necessary because of anticipated tax 149.8 delinquency or for cash flow needs to meet the required payments 149.9 from the debt redemption fund. 149.10 (g) If the governing body, including the governing body of 149.11 a school district, in any year makes an irrevocable 149.12 appropriation to the debt service fund of money actually on hand 149.13 or if there is on hand any excess amount in the debt service 149.14 fund, the recording officer may certify to the county auditor 149.15 the fact and amount thereof and the auditor shall reduce by the 149.16 amount so certified the amount otherwise to be included in the 149.17 rolls next thereafter prepared. 149.18 Sec. 8. [FUND TRANSFERS.] 149.19 Subdivision 1. [LAPORTE.] Notwithstanding Minnesota 149.20 Statutes, section 123B.79 or 123B.80, on June 30, 2001, 149.21 independent school district No. 306, LaPorte, may permanently 149.22 transfer up to $141,000 from the bus purchase account in its 149.23 transportation fund to its capital expenditure fund without 149.24 making a levy reduction. 149.25 Subd. 2. [CLEVELAND.] Notwithstanding Minnesota Statutes, 149.26 section 123B.79 or 123B.80, on June 30, 2001, independent school 149.27 district No. 391, Cleveland, may permanently transfer up to 149.28 $107,000 from its reserved operating capital account in its 149.29 general fund to the undesignated fund balance. 149.30 Subd. 3. [LEWISTON.] (a) Notwithstanding Minnesota 149.31 Statutes, section 123B.79 or 123B.80, for calendar years 2002 149.32 through 2012, on June 30 of each year, independent school 149.33 district No. 857, Lewiston, may permanently transfer up to 149.34 $175,000 from its capital accounts in its general fund or from 149.35 its unrestricted general fund to the debt redemption fund. 149.36 (b) The eligible debt service revenue and debt service 150.1 equalization aid, if any, for independent school district No. 150.2 857, Lewiston, must be determined prior to the annual transfer 150.3 of general fund revenue authorized in subdivision 1. 150.4 Subd. 4. [RUSSELL.] Notwithstanding Minnesota Statutes, 150.5 section 123B.79 or 123B.80, on June 30, 2001, independent school 150.6 district No. 418, Russell, may permanently transfer up to 150.7 $160,000 from its reserved capital accounts in its general fund 150.8 to the undesignated fund balance. 150.9 Subd. 5. [MOUNTAIN LAKE.] Notwithstanding Minnesota 150.10 Statutes, section 123B.79 or 123B.80, on June 30, 2001, 150.11 independent school district No. 173, Mountain Lake, may 150.12 permanently transfer up to $300,000 from its reserved capital 150.13 accounts in its general fund to the undesignated fund balance. 150.14 Subd. 6. [ISLE.] (a) Notwithstanding Minnesota Statutes, 150.15 section 123B.79 or 123B.80, on June 30, 2001, upon approval of 150.16 the commissioner of children, families, and learning, 150.17 independent school district No. 473, Isle, may permanently 150.18 transfer up to $175,000 from its reserved account for disability 150.19 access to its undesignated general fund balance. 150.20 (b) Prior to making the fund transfer, independent school 150.21 district No. 473, Isle, must demonstrate to the commissioner's 150.22 satisfaction that the district's school buildings are accessible 150.23 to students or employees with disabilities. 150.24 [EFFECTIVE DATE.] This section is effective the day 150.25 following final enactment. 150.26 Sec. 9. [FUND TRANSFERS; DEBT REDEMPTION FUND.] 150.27 Subdivision 1. [ELGIN-MILLVILLE.] Notwithstanding 150.28 Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, 150.29 subdivision 4, on June 30, 2001, independent school district No. 150.30 806, Elgin-Millville, may permanently transfer up to $100,000 150.31 from its debt redemption fund to its reserved capital accounts 150.32 in its general fund without making a levy reduction. 150.33 Subd. 2. [PINE CITY.] (a) Notwithstanding Minnesota 150.34 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 150.35 on June 30, 2001, independent school district No. 578, Pine 150.36 City, may permanently transfer up to $200,000 from its debt 151.1 redemption fund to its capital account in its general fund 151.2 without making a levy reduction. 151.3 (b) Revenue transferred under this section must be used to 151.4 purchase a facility for the area learning center. 151.5 Subd. 3. [ROCORI.] Notwithstanding Minnesota Statutes, 151.6 sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 151.7 30, 2001, independent school district No. 750, Rocori, may 151.8 permanently transfer up to $325,000 from its debt redemption 151.9 fund to its capital account in its general fund without making a 151.10 levy reduction. 151.11 Subd. 4. [TRI-COUNTY SCHOOLS.] Notwithstanding Minnesota 151.12 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 151.13 on June 30, 2001, independent school district No. 2358, 151.14 Tri-County schools, may permanently transfer up to $120,000 from 151.15 its debt redemption fund to its operating capital account in its 151.16 general fund without making a levy reduction. 151.17 Subd. 5. [WATERTOWN-MAYER.] Notwithstanding Minnesota 151.18 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 151.19 on June 30, 2001, independent school district No. 111, 151.20 Watertown-Mayer, may permanently transfer up to $325,000 from 151.21 its debt redemption fund to its reserved capital accounts in its 151.22 general fund without making a levy reduction. 151.23 Subd. 6. [HOLDINGFORD.] Notwithstanding Minnesota 151.24 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 151.25 on June 30, 2001, independent school district No. 738, 151.26 Holdingford, may permanently transfer up to $200,000 from its 151.27 debt redemption fund to its undesignated general fund balance 151.28 without making a levy reduction. 151.29 Subd. 7. [ROYALTON.] Notwithstanding Minnesota Statutes, 151.30 sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 151.31 30, 2001, independent school district No. 485, Royalton, may 151.32 permanently transfer up to $64,000 from its debt redemption fund 151.33 to its reserved capital accounts in its general fund without 151.34 making a levy reduction. 151.35 Subd. 8. [GLENCOE-SILVER LAKE.] Notwithstanding Minnesota 151.36 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 152.1 on June 30, 2001, independent school district No. 2859, 152.2 Glencoe-Silver Lake, may permanently transfer up to $27,000 from 152.3 its debt redemption fund to its reserved operating capital 152.4 account in its general fund without making a levy reduction. 152.5 Subd. 9. [PILLAGER.] Notwithstanding Minnesota Statutes, 152.6 sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 152.7 30, 2001, independent school district No. 116, Pillager, may 152.8 permanently transfer up to $60,000 from its debt redemption fund 152.9 to its reserved operating capital account in its general fund 152.10 without making a levy reduction. 152.11 [EFFECTIVE DATE.] This section is effective the day 152.12 following final enactment. 152.13 Sec. 10. [OPERATING CAPITAL ACCOUNT DEFICIT; EXCEPTION.] 152.14 Notwithstanding Minnesota Statutes, section 123B.78, 152.15 subdivision 5, independent school district No. 492, Austin, may 152.16 incur a deficit of up to $4,200,000 in its reserved capital 152.17 operating account for the Westcott Field improvement project. 152.18 The deficit must be eliminated by June 30, 2011. Any donations 152.19 or contributions received by the district for the Westcott Field 152.20 improvement project must be deposited in the reserved capital 152.21 operating account. 152.22 [EFFECTIVE DATE.] This section is effective the day 152.23 following final enactment. 152.24 Sec. 11. [APPROPRIATIONS.] 152.25 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 152.26 LEARNING.] The sums indicated in this section are appropriated 152.27 from the general fund to the department of children, families, 152.28 and learning for the fiscal years designated. 152.29 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 152.30 according to Minnesota Statutes, section 124D.111, and Code of 152.31 Federal Regulations, title 7, section 210.17, and for school 152.32 milk aid according to Minnesota Statutes, section 124D.118: 152.33 $8,710,000 ..... 2002 152.34 $8,950,000 ..... 2003 152.35 (b) Not more than $800,000 of the amount appropriated each 152.36 year may be used for school milk aid. 153.1 Subd. 3. [SCHOOL BREAKFAST.] For school breakfast aid 153.2 under Minnesota Statutes, section 124D.115: 153.3 $640,000 ..... 2002 153.4 $700,000 ..... 2003 153.5 Subd. 4. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 153.6 food service replacement aid under Minnesota Statutes, section 153.7 124D.119: 153.8 $150,000 ..... 2002 153.9 $150,000 ..... 2003 153.10 Subd. 5. [FAST BREAK TO LEARNING GRANTS.] For fast break 153.11 to learning grants under Minnesota Statutes, section 124D.1156: 153.12 $2,500,000 ..... 2002 153.13 $2,500,000 ..... 2003 153.14 Any balance in the first year does not cancel but is 153.15 available in the second year. 153.16 Sec. 12. [REPEALER.] 153.17 Minnesota Statutes 2000, section 124D.1155, is repealed. 153.18 ARTICLE 6 153.19 AGENCY PROVISIONS 153.20 Section 1. Minnesota Statutes 2000, section 120A.05, is 153.21 amended by adding a subdivision to read: 153.22 Subd. 14a. [STATE BOARD OF EDUCATION.] "State board of 153.23 education" or "state board" means the state board of education 153.24 established under section 127A.03 that is charged with general 153.25 supervision over educational agencies and other 153.26 education-related matters. 153.27 [EFFECTIVE DATE.] This section is effective January 1, 2002. 153.28 Sec. 2. Minnesota Statutes 2000, section 122A.162, is 153.29 amended to read: 153.30 122A.162 [LICENSURE RULES.] 153.31 The commissioner may make rules relating to licensure of 153.32 school personnel not licensed by the board of teaching or board 153.33 of educational administration. 153.34 Sec. 3. Minnesota Statutes 2000, section 122A.163, is 153.35 amended to read: 153.36 122A.163 [TEACHER RULE VARIANCES; COMMISSIONER.] 154.1 Notwithstanding any law to the contrary, and only upon 154.2 receiving the agreement of the state board of teaching or board 154.3 of educational administration, whichever has jurisdiction over 154.4 the licensure, the commissioner of children, families, and 154.5 learning may grant a variance to rules governing licensure 154.6 ofteachers for those teacherspersons licensed by the board of 154.7 teaching or board of educational administration, whichever has 154.8 jurisdiction.The commissioner may grant a variance, without154.9the agreement of the board of teaching, to rules adopted by the154.10commissioner governing licensure of teachers for those teachers154.11the commissioner licenses.154.12 Sec. 4. Minnesota Statutes 2000, section 122A.18, 154.13 subdivision 1, is amended to read: 154.14 Subdivision 1. [AUTHORITY TO LICENSE.] (a) The board of 154.15 teaching must license teachers, as defined in section 122A.15, 154.16 subdivision 1, except for supervisory personnel, as defined in 154.17 section 122A.15, subdivision 2. 154.18 (b) Thecommissioner of children, families, and learning154.19 board of educational administration must license supervisory 154.20 personnel as defined in section 122A.15, subdivision 2, except 154.21 for athletic coaches. 154.22 (c) Licenses under the jurisdiction of the board of 154.23 teaching and the commissioner of children, families, and 154.24 learning must be issued through the licensing section of the 154.25 department. 154.26 Sec. 5. Minnesota Statutes 2000, section 122A.18, 154.27 subdivision 4, is amended to read: 154.28 Subd. 4. [EXPIRATION AND RENEWAL.] (a) Each license the 154.29 department of children, families, and learning issues through 154.30 its licensing section must bear the date of issue. Licenses 154.31 must expire and be renewed according to the respective rules the 154.32 board of teaching, the board of educational administration, or 154.33 the commissioner of children, families, and learning adopts. 154.34 Requirements for renewing a license must include showing 154.35 satisfactory evidence of successful teaching or administrative 154.36 experience for at least one school year during the period 155.1 covered by the license in grades or subjects for which the 155.2 license is valid or completing such additional preparation as 155.3 the board of teaching prescribes. Thecommissioner of children,155.4families, and learningboard of educational administration shall 155.5 establish requirements for renewing the licenses of supervisory 155.6 personnel except athletic coaches. The state board of teaching 155.7 shall establish requirements for renewing the licenses of 155.8 athletic coaches. 155.9 (b) The board of teaching shall offer alternative 155.10 continuing relicensure options for teachers who are accepted 155.11 into and complete the national board for professional teaching 155.12 standards certification process, and offer additional continuing 155.13 relicensure options for teachers who earn national board for 155.14 professional teaching standards certification. Continuing 155.15 relicensure requirements for teachers who do not maintain 155.16 national board for professional teaching standards certification 155.17 are those the board prescribes. 155.18 Sec. 6. [122A.191] [DEFINITIONS.] 155.19 Subdivision 1. [SCOPE.] For the purposes of sections 155.20 122A.191 to 122A.194, the terms defined in this section have the 155.21 meanings given them, unless another meaning is clearly indicated. 155.22 Subd. 2. [BOARD.] "Board" means the board of educational 155.23 administration. 155.24 Subd. 3. [COMMUNITY EDUCATION DIRECTOR.] "Community 155.25 education director" means a person devoting time to 155.26 administrative and supervisory duties pertaining to community 155.27 education and employed as a community education director. 155.28 Subd. 4. [PRINCIPAL.] "Principal" means a person who 155.29 devotes more than 50 percent of the time to administrative or 155.30 supervisory duties and is employed as an elementary principal, 155.31 secondary principal, or kindergarten through grade 12 155.32 principal. The term also includes assistant principals. 155.33 Subd. 5. [SCHOOL ADMINISTRATORS.] "School administrators" 155.34 means superintendents, principals, special education directors, 155.35 community education directors, and vocational administrators. 155.36 Subd. 6. [SPECIAL EDUCATION DIRECTOR.] "Special education 156.1 director" means a person devoting time to administrative or 156.2 supervisory duties for special instruction and services for 156.3 children and is employed as a special education director. 156.4 Special education director includes assistant special education 156.5 directors. 156.6 Subd. 7. [SUPERINTENDENT.] "Superintendent" means a school 156.7 administrator employed pursuant to section 123B.143, subdivision 156.8 1, and includes assistant superintendents. 156.9 Subd. 8. [VOCATIONAL ADMINISTRATOR.] "Vocational 156.10 administrator" means a person devoting time to administrative or 156.11 supervisory duties for vocational education. 156.12 Sec. 7. [122A.192] [BOARD OF EDUCATIONAL ADMINISTRATION.] 156.13 Subdivision 1. [APPOINTMENT OF MEMBERS; ELIGIBILITY.] The 156.14 board of educational administration consists of seven members 156.15 appointed by the governor as follows: 156.16 (1) an elementary school principal employed by a school 156.17 district; 156.18 (2) a secondary school principal employed by a school 156.19 district; 156.20 (3) a school superintendent employed by a school district; 156.21 (4) a classroom teacher employed by a school district; 156.22 (5) a community education director or a special education 156.23 director; 156.24 (6) one higher education representative, who must be a 156.25 faculty member preparing school administrators; and 156.26 (7) a public member, as defined in section 214.02. 156.27 In making appointments, the governor shall solicit 156.28 recommendations from groups representing persons in clauses (1) 156.29 to (6). 156.30 Subd. 2. [TERMS; COMPENSATION; REMOVAL.] Membership terms, 156.31 removal of members, and the filling of membership vacancies 156.32 shall be as provided under section 214.09 except the terms 156.33 expire July 31. The terms of the initial board members must be 156.34 determined by lot as follows: one member must be appointed for 156.35 a term that expires August 1, 2002; one member must be appointed 156.36 for a term that expires August 1, 2003; two members must be 157.1 appointed for a term that expires August 1, 2004; and three 157.2 members must be appointed to terms that expire August 1, 2005. 157.3 The actual and necessary expenses of all members serving on the 157.4 board shall be as provided in section 214.09, subdivision 3. 157.5 Members shall not receive the daily payment under section 157.6 214.09, subdivision 3. The employer of a member shall not 157.7 reduce the member's compensation or benefits for the member's 157.8 absence from employment when engaging in the business of the 157.9 board. A member shall not be reappointed for more than one 157.10 additional term. 157.11 Subd. 3. [VACANT POSITION.] The position of a member who 157.12 leaves Minnesota or whose employment status changes to a 157.13 category different from that from which appointed shall be 157.14 deemed vacant. 157.15 Subd. 4. [ADMINISTRATION.] The provision of staff, 157.16 administrative services, and office space; the review and 157.17 processing of complaints; the setting of fees; the selection and 157.18 duties of an executive secretary to serve the board; and other 157.19 provisions relating to board operations are as provided in 157.20 chapter 214. Fiscal year and reporting requirements shall be as 157.21 provided under sections 214.07 and 214.08. 157.22 Sec. 8. [122A.193] [MEETINGS.] 157.23 Subdivision 1. [MEETINGS.] The board of educational 157.24 administration shall meet regularly at the times and places 157.25 determined by the board. The board shall nominate and elect a 157.26 chair and other officers from its membership. Meetings shall be 157.27 called by the chair or at the written request of any three 157.28 members. 157.29 Subd. 2. [EXECUTIVE SECRETARY.] The board of educational 157.30 administration may hire an executive secretary and other staff 157.31 or may arrange to share a director and staff with the board of 157.32 teaching. If the board hires an executive director, the person 157.33 is in the unclassified service. 157.34 Sec. 9. [122A.194] [DUTIES OF BOARD OF EDUCATIONAL 157.35 ADMINISTRATION.] 157.36 Subdivision 1. [LICENSING.] The board shall license school 158.1 administrators. The board shall adopt rules to license school 158.2 administrators in accordance with chapter 14. Other than the 158.3 rules transferred to the board under section 122A.18, 158.4 subdivision 4, the board may not adopt or amend rules under this 158.5 section until the rules are approved by law. The rules shall 158.6 include the licensing of persons who have successfully completed 158.7 alternative preparation programs under section 122A.27. The 158.8 board may enter into agreements with the board of teaching 158.9 regarding multiple license matters. 158.10 Subd. 2. [PREPARATION PROGRAMS.] The board shall review 158.11 and approve preparation programs for school administrators and 158.12 alternative preparation programs under section 122A.27. 158.13 Subd. 3. [RULES FOR CONTINUING EDUCATION REQUIREMENTS.] 158.14 The board shall adopt rules establishing continuing education 158.15 requirements which promote continuous improvement and 158.16 acquisition of new and relevant skills by school administrators. 158.17 Subd. 4. [CODE OF ETHICS.] The board shall adopt by rule a 158.18 code of ethics covering standards of professional practice, 158.19 including ethical conduct, professional performance, and methods 158.20 of enforcement, and advise school administrators in interpreting 158.21 the code of ethics. 158.22 Subd. 5. [COMMISSIONER'S REPRESENTATIVE TO COMMENT ON 158.23 PROPOSED RULE.] Prior to the adoption of any rule that must be 158.24 submitted to public hearing, a representative of the 158.25 commissioner of children, families, and learning shall appear 158.26 before the board and at any hearing required under section 158.27 14.14, subdivision 1, to comment on the cost and educational 158.28 implications of the proposed rule. 158.29 Subd. 6. [REGISTER OF PERSONS LICENSED.] The executive 158.30 director of the board shall keep a record of the proceedings of 158.31 the board and a register of all persons licensed under this 158.32 chapter. The register must show the name, address, license 158.33 number, and the renewal of the license. The board must on July 158.34 1 of each year, or as soon thereafter as is practicable, compile 158.35 a list of licensed school administrators and transmit a copy of 158.36 the list to the board. A copy of the register must be available 159.1 during business hours at the office of the board to any 159.2 interested person. 159.3 Subd. 7. [COMMISSIONER'S ASSISTANCE; BOARD MONEY.] The 159.4 commissioner shall provide all necessary materials and 159.5 assistance for the transaction of the business of the board and 159.6 all money received by the board shall be paid into the state 159.7 treasury as provided by law. The expenses of administering the 159.8 board of educational administration shall be paid for from 159.9 appropriations made to the board of educational administration. 159.10 Sec. 10. Minnesota Statutes 2000, section 122A.20, 159.11 subdivision 2, is amended to read: 159.12 Subd. 2. [MANDATORY REPORTING.] A school board must report 159.13 to the board of teaching, the board of educational 159.14 administration, or the board of trustees of the Minnesota state 159.15 colleges and universities, whichever has jurisdiction over the 159.16 teacher's or administrator's license, when its teacher or 159.17 administrator is discharged or resigns from employment after a 159.18 charge is filed with the school board under section 122A.41, 159.19 subdivisions 6, clauses (1), (2), and (3), and 7, or after 159.20 charges are filed that are ground for discharge under section 159.21 122A.40, subdivision 13, paragraph (a), clauses (1) to (5), or 159.22 when a teacher or administrator is suspended or resigns while an 159.23 investigation is pending under section 122A.40, subdivision 13, 159.24 paragraph (a) clauses (1) to (5); 122A.41, subdivisions 6, 159.25 clauses (1), (2), and (3), and 7; or 626.556. The report must 159.26 be made to the appropriate licensing board within ten days after 159.27 the discharge, suspension, or resignation has occurred. The 159.28 licensing board to which the report is made must investigate the 159.29 report for violation of subdivision 1 and the reporting board 159.30 must cooperate in the investigation. Notwithstanding any 159.31 provision in chapter 13 or any law to the contrary, upon written 159.32 request from the licensing board having jurisdiction over 159.33 theteacher'slicense, a board or school superintendent shall 159.34 provide the licensing board with information about the 159.35 teacher or administrator from the district's files, any 159.36 termination or disciplinary proceeding, any settlement or 160.1 compromise, or any investigative file. Upon written request 160.2 from the appropriate licensing board, a board or school 160.3 superintendent may, at the discretion of the board or school 160.4 superintendent, solicit the written consent of a student and the 160.5 student's parent to provide the licensing board with information 160.6 that may aid the licensing board in its investigation and 160.7 license proceedings. The licensing board's request need not 160.8 identify a student or parent by name. The consent of the 160.9 student and the student's parent must meet the requirements of 160.10 chapter 13 and Code of Federal Regulations, title 34, section 160.11 99.30. The licensing board may provide a consent form to the 160.12 district. Any data transmitted to any board under this section 160.13 is private data under section 13.02, subdivision 12, 160.14 notwithstanding any other classification of the data when it was 160.15 in the possession of any other agency. 160.16 The licensing board to which a report is made must transmit 160.17 to the attorney general's office any record or data it receives 160.18 under this subdivision for the sole purpose of having the 160.19 attorney general's office assist that board in its 160.20 investigation. When the attorney general's office has informed 160.21 an employee of the appropriate licensing board in writing that 160.22 grounds exist to suspend or revoke a teacher's license to teach, 160.23 that licensing board must consider suspending or revoking or 160.24 decline to suspend or revoke the teacher's or administrator's 160.25 license within 45 days of receiving a stipulation executed by 160.26 the teacher or administrator under investigation or a 160.27 recommendation from an administrative law judge that 160.28 disciplinary action be taken. 160.29 Sec. 11. Minnesota Statutes 2000, section 122A.21, is 160.30 amended to read: 160.31 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 160.32 Each application for the issuance, renewal, or extension of 160.33 a license to teachand each application for the issuance,160.34renewal, or extension of a license as supervisory personnelmust 160.35 be accompanied by a processing fee in an amount set by the board 160.36 of teaching by rule. Each application for the issuance, 161.1 renewal, or extension of a license as school administrators and 161.2 supervisors must be accompanied by a processing fee in the same 161.3 amounts set by the board of teaching. The processing fee for a 161.4 teacher's license and for the licenses of supervisory personnel 161.5 must be paid to the executive secretary of the appropriate board 161.6of teaching. The executive secretary of the boardof teaching161.7 shall deposit the fees with the state treasurer, as provided by 161.8 law, and report each month to the commissioner of finance the 161.9 amount of fees collected. The fees as set by the board are 161.10 nonrefundable for applicants not qualifying for a license. 161.11 However, a fee must be refunded by the state treasurer in any 161.12 case in which the applicant already holds a valid unexpired 161.13 license. The board may waive or reduce fees for applicants who 161.14 apply at the same time for more than one license. 161.15 Sec. 12. Minnesota Statutes 2000, section 124D.10, 161.16 subdivision 1, is amended to read: 161.17 Subdivision 1. [PURPOSES.](a)The purpose of this section 161.18 is to: 161.19 (1) improve pupil learning; 161.20 (2) increase learning opportunities for pupils; 161.21 (3) encourage the use of different and innovative teaching 161.22 methods; 161.23 (4) require the measurement of learning outcomes and create 161.24 different and innovative forms of measuring outcomes; 161.25 (5) establish new forms of accountability for schools;or161.26 (6) create new professional opportunities for teachers, 161.27 including the opportunity to be responsible for the learning 161.28 program at the school site; 161.29 (7) test new and more accountable, results-based forms of 161.30 oversight and accountability for schools; 161.31 (8) focus state oversight on the role of sponsors of 161.32 charter schools; or 161.33 (9) encourage school boards to make full use of the 161.34 opportunities provided by this section. 161.35(b) This section does not provide a means to keep open a161.36school that otherwise would be closed. Applicants in these162.1circumstances bear the burden of proving that conversion to a162.2charter school fulfills a purpose specified in this subdivision,162.3independent of the school's closing.162.4 Sec. 13. Minnesota Statutes 2000, section 124D.10, is 162.5 amended by adding a subdivision to read: 162.6 Subd. 2a. [STATE BOARD FOR CHARTER SCHOOLS.] (a) The state 162.7 board for charter schools shall administer laws governing 162.8 charter schools. The state board shall: 162.9 (1) perform the state role in sponsorship of charter 162.10 schools; 162.11 (2) encourage the creation of innovative schools; 162.12 (3) provide leadership and support for sponsors to increase 162.13 innovation, effectiveness, accountability, and fiscal soundness 162.14 of schools authorized under this section; and 162.15 (4) administer state and federal start-up aid. 162.16 The board may establish advisory groups. 162.17 (b) The state board shall consist of seven members 162.18 appointed by the governor with the advice and consent of the 162.19 senate. Persons appointed to the board shall have demonstrated 162.20 experience or interest in charter schools. Members must be 162.21 appointed for staggered terms of six years, with terms beginning 162.22 August 1 of each year. The terms of the initial board members 162.23 must be determined by lot as follows: one member must be 162.24 appointed for a term that expires August 1, 2004; two members 162.25 must be appointed for terms that expire August 1, 2005; two 162.26 members must be appointed for terms that expire August 1, 2006; 162.27 and two members must be appointed to terms that expire August 1, 162.28 2007. 162.29 (c) The initial chair of the board must be appointed by the 162.30 governor and successor chairs must be elected by the board 162.31 members. The chair shall serve a two-year term. 162.32 (d) Except as otherwise provided in this section, the 162.33 membership terms, compensation, removal of members, and filling 162.34 of vacancies shall be as provided for in section 15.0575. 162.35 (e) The state board shall appoint an executive director who 162.36 shall serve in the unclassified service and may appoint other 163.1 staff. 163.2 Sec. 14. Minnesota Statutes 2000, section 124D.10, 163.3 subdivision 3, is amended to read: 163.4 Subd. 3. [SPONSOR.] A school board; intermediate school 163.5 district school board; education district organized under 163.6 sections 123A.15 to 123A.19; charitable organization under 163.7 section 501(c)(3) of the Internal Revenue Code of 1986 that is a 163.8 member of the Minnesota council of nonprofits or the Minnesota 163.9 council on foundations, registered with the attorney general's 163.10 office, and reports an end-of-year fund balance of at least 163.11 $2,000,000; Minnesota private college that grants two- or 163.12 four-year degrees and is registered with the higher education 163.13 services office under chapter 136A; community college, state 163.14 university, or technical college, governed by the board of 163.15 trustees of the Minnesota state colleges and universities;or163.16 the University of Minnesota; or the state board for charter 163.17 schools may sponsor one or more charter schools. 163.18 Sec. 15. Minnesota Statutes 2000, section 124D.10, 163.19 subdivision 4, is amended to read: 163.20 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 163.21 authorize one or more licensed teachers under section 122A.18, 163.22 subdivision 1, to operate a charter school subject to approval 163.23 by thecommissionerstate board for charter schools. A board 163.24 must vote on charter school application for sponsorship no later 163.25 than 90 days after receiving the application. After 90 days, 163.26 the applicant may apply to thecommissionerstate board for 163.27 charter schools. If a board elects not to sponsor a charter 163.28 school, the applicant may appeal the board's decision to 163.29 thecommissionerstate board for charter schools. If 163.30 thecommissionerstate board for charter schools authorizes the 163.31 school, thecommissionerstate board must sponsor the school 163.32 according to this section. The school must be organized and 163.33 operated as a cooperative under chapter 308A or nonprofit 163.34 corporation under chapter 317A. 163.35 (b) Before the operators may form and operate a school, the 163.36 sponsor must file an affidavit with thecommissionerstate board 164.1 for charter schools stating its intent to authorize a charter 164.2 school. The affidavit must state the terms and conditions under 164.3 which the sponsor would authorize a charter school. 164.4 Thecommissionerstate board for charter schools must approve or 164.5 disapprove the sponsor's proposed authorization within 60 days 164.6 of receipt of the affidavit. Failure to obtaincommissioner164.7 state board approval precludes a sponsor from authorizing the 164.8 charter school that was the subject of the affidavit. 164.9 (c) The operators authorized to organize and operate a 164.10 school must hold an election for members of the school's board 164.11 of directors in a timely manner after the school is operating. 164.12 Any staff members who are employed at the school, including 164.13 teachers providing instruction under a contract with a 164.14 cooperative, and all parents of children enrolled in the school 164.15 may participate in the election. Licensed teachers employed at 164.16 the school, including teachers providing instruction under a 164.17 contract with a cooperative, must be a majority of the members 164.18 of the board of directors, unless thecommissionerstate board 164.19 for charter schools waives the requirement for the school. A 164.20 provisional board may operate before the election of the 164.21 school's board of directors. Board of director meetings must 164.22 comply with chapter 13D. 164.23 (d) The granting or renewal of a charter by a sponsoring 164.24 entity must not be conditioned upon the bargaining unit status 164.25 of the employees of the school. 164.26 Sec. 16. Minnesota Statutes 2000, section 124D.10, 164.27 subdivision 6, is amended to read: 164.28 Subd. 6. [CONTRACT.] The sponsor's authorization for a 164.29 charter school must be in the form of a written contract signed 164.30 by the sponsor and the board of directors of the charter 164.31 school. The contract must be completed within 90 days ofthe164.32commissioner'sapproval by the state board of charter schools of 164.33 the sponsor's proposed authorization. The contract for a 164.34 charter school must be in writing and contain at least the 164.35 following: 164.36 (1) a description of a program that carries out one or more 165.1 of the purposes in subdivision 1; 165.2 (2) specific outcomes pupils are to achieve under 165.3 subdivision 10; 165.4 (3) admission policies and procedures; 165.5 (4) management and administration of the school; 165.6 (5) requirements and procedures for program and financial 165.7 audits; 165.8 (6) how the school will comply with subdivisions 8, 13, 16, 165.9 and 23; 165.10 (7) assumption of liability by the charter school; 165.11 (8) types and amounts of insurance coverage to be obtained 165.12 by the charter school; 165.13 (9) the term of the contract, which may be up to three 165.14 years; and 165.15 (10) if the board of directors or the operators of the 165.16 charter school provide special instruction and services for 165.17 children with a disability under sections 125A.03 to 125A.24, 165.18 and 125A.65, a description of the financial parameters within 165.19 which the charter school will operate to provide the special 165.20 instruction and services to children with a disability. 165.21 Sec. 17. Minnesota Statutes 2000, section 124D.10, 165.22 subdivision 8, is amended to read: 165.23 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 165.24 school shall meet all applicable state and local health and 165.25 safety requirements. 165.26 (b) A school sponsored by a school board may be located in 165.27 any district, unless the school board of the district of the 165.28 proposed location disapproves by written resolution. If such a 165.29 board denies a request to locate within its boundaries a charter 165.30 school sponsored by another school board, the sponsoring school 165.31 board may appeal to thecommissionerstate board for charter 165.32 schools. If thecommissionerstate board for charter schools 165.33 authorizes the school, thecommissionerstate board must sponsor 165.34 the school. 165.35 (c) A charter school must be nonsectarian in its programs, 165.36 admission policies, employment practices, and all other 166.1 operations. A sponsor may not authorize a charter school or 166.2 program that is affiliated with a nonpublic sectarian school or 166.3 a religious institution. 166.4 (d) Charter schools must not be used as a method of 166.5 providing education or generating revenue for students who are 166.6 being home-schooled. 166.7 (e) The primary focus of a charter school must be to 166.8 provide a comprehensive program of instruction for at least one 166.9 grade or age group from five through 18 years of age. 166.10 Instruction may be provided to people younger than five years 166.11 and older than 18 years of age. 166.12 (f) A charter school may not charge tuition. 166.13 (g) A charter school is subject to and must comply with 166.14 chapter 363 and section 121A.04. 166.15 (h) A charter school is subject to and must comply with the 166.16 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 166.17 Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 166.18 (i) A charter school is subject to the same financial 166.19 audits, audit procedures, and audit requirements as a district. 166.20 The audit must comply with the requirements of sections 123B.75 166.21 to 123B.83, except to the extent deviations are necessary 166.22 because of the program at the school. The department of 166.23 children, families, and learning, state board for charter 166.24 schools, state auditor, or legislative auditor may conduct 166.25 financial, program, or compliance audits. A charter school 166.26 determined to be in statutory operating debt under sections 166.27 123B.81 to 123B.83 must submit a plan under section 123B.81, 166.28 subdivision 4. 166.29 (j) A charter school is a district for the purposes of tort 166.30 liability under chapter 466. 166.31 Sec. 18. Minnesota Statutes 2000, section 124D.10, 166.32 subdivision 10, is amended to read: 166.33 Subd. 10. [PUPIL PERFORMANCE.] A charter school must 166.34 design its programs to at least meet the outcomes adopted by the 166.35 commissioner of children, families, and learning for public 166.36 school students. In the absence of the commissioner's 167.1 requirements, the school must meet the outcomes contained in the 167.2 contract with the sponsor. The achievement levels of the 167.3 outcomes contained in the contract may exceed the achievement 167.4 levels of any outcomes adopted by the commissioner for public 167.5 school students. 167.6 Sec. 19. Minnesota Statutes 2000, section 124D.10, 167.7 subdivision 14, is amended to read: 167.8 Subd. 14. [ANNUAL PUBLIC REPORTS.] A charter school must 167.9 report at least annually to its sponsor and the 167.10commissionerstate board for charter schools the information 167.11 required by the sponsor or thecommissionerstate board. The 167.12 reports are public data under chapter 13. 167.13 Sec. 20. Minnesota Statutes 2000, section 124D.10, 167.14 subdivision 15, is amended to read: 167.15 Subd. 15. [REVIEW AND COMMENT.] Thedepartmentstate board 167.16 for charter schools must review and comment on the evaluation, 167.17 by the sponsor, of the performance of a charter school before 167.18 the charter school's contract is renewed. A sponsor shall 167.19 monitor and evaluate the fiscal and student performance of the 167.20 school, and may for this purpose annually assess the school up 167.21 to $10 per student up to a maximum of $3,500. The information 167.22 for the review and comment shall be reported by the sponsor to 167.23 thecommissioner of children, families, and learningstate board 167.24 in a timely manner. Periodically, thecommissionerstate board 167.25 shall report trends or suggestions based on the evaluation of 167.26 charter school contracts to the education committees of the 167.27 state legislature. Annually, the state board shall report to 167.28 the governor and education committees of the legislature on the 167.29 status of the charter schools formed and operated under this 167.30 section. 167.31 Sec. 21. Minnesota Statutes 2000, section 124D.10, 167.32 subdivision 19, is amended to read: 167.33 Subd. 19. [DISSEMINATE INFORMATION.] The sponsor, the 167.34 operators, and thedepartment of children, families, and167.35learningstate board for charter schools must disseminate 167.36 information to the public on how to form and operate a charter 168.1 school and how to utilize the offerings of a charter school. 168.2 Particular groups to be targeted include low-income families and 168.3 communities, and students of color. 168.4 Sec. 22. Minnesota Statutes 2000, section 124D.10, 168.5 subdivision 23, is amended to read: 168.6 Subd. 23. [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 168.7 SCHOOL CONTRACT.] (a) The duration of the contract with a 168.8 sponsor must be for the term contained in the contract according 168.9 to subdivision 6. The sponsor may or may not renew a contract 168.10 at the end of the term for any ground listed in paragraph (b). 168.11 A sponsor may unilaterally terminate a contract during the term 168.12 of the contract for any ground listed in paragraph (b). At 168.13 least 60 days before not renewing or terminating a contract, the 168.14 sponsor shall notify the board of directors of the charter 168.15 school of the proposed action in writing. The notice shall 168.16 state the grounds for the proposed action in reasonable detail 168.17 and that the charter school's board of directors may request in 168.18 writing an informal hearing before the sponsor within 14 days of 168.19 receiving notice of nonrenewal or termination of the contract. 168.20 Failure by the board of directors to make a written request for 168.21 a hearing within the 14-day period shall be treated as 168.22 acquiescence to the proposed action. Upon receiving a timely 168.23 written request for a hearing, the sponsor shall give reasonable 168.24 notice to the charter school's board of directors of the hearing 168.25 date. The sponsor shall conduct an informal hearing before 168.26 taking final action. The sponsor shall take final action to 168.27 renew or not renew a contract by the last day of classes in the 168.28 school year. If the sponsor is a local board, the school's 168.29 board of directors may appeal the sponsor's decision to 168.30 thecommissionerstate board for charter schools. 168.31 (b) A contract may be terminated or not renewed upon any of 168.32 the following grounds: 168.33 (1) failure to meet the requirements for pupil performance 168.34 contained in the contract; 168.35 (2) failure to meet generally accepted standards of fiscal 168.36 management; 169.1 (3) violations of law; or 169.2 (4) other good cause shown. 169.3 If a contract is terminated or not renewed, the school must 169.4 be dissolved according to the applicable provisions of chapter 169.5 308A or 317A, except when thecommissionerstate board for 169.6 charter schools approves the decision of a different eligible 169.7 sponsor to authorize the charter school. 169.8 (c) The commissioner or state board for charter schools, 169.9 after providing reasonable notice to the board of directors of a 169.10 charter school and the existing sponsor, and after providing an 169.11 opportunity for a public hearing, may terminate the existing 169.12 sponsorial relationship if the charter school has a history of: 169.13 (1) financial mismanagement; or 169.14 (2) repeated violations of the law. 169.15 Sec. 23. Minnesota Statutes 2000, section 124D.10, 169.16 subdivision 25, is amended to read: 169.17 Subd. 25. [EXTENT OF SPECIFIC LEGAL AUTHORITY.] (a) The 169.18 board of directors of a charter school may sue and be sued. 169.19 (b) The board may not levy taxes or issue bonds. 169.20 (c) Thecommissionerstate board for charter schools, a 169.21 sponsor, members of the board of a sponsor in their official 169.22 capacity, and employees of a sponsor are immune from civil or 169.23 criminal liability with respect to all activities related to a 169.24 charter school they approve or sponsor. The board of directors 169.25 shall obtain at least the amount of and types of insurance 169.26 required by the contract, according to subdivision 6. 169.27 Sec. 24. [127A.03] [STATE BOARD OF EDUCATION.] 169.28 Subdivision 1. [STATE BOARD ESTABLISHED; APPOINTMENTS; 169.29 MEETINGS; CONFLICT OF INTEREST; ADMINISTRATIVE COSTS.] (a) The 169.30 department of children, families, and learning is maintained 169.31 under the direction of a state board of education composed of 169.32 the following members: ten representative citizens of the 169.33 state, at least one of whom resides in each congressional 169.34 district in the state and two of whom serve as members at-large; 169.35 the chancellor of the Minnesota state colleges and universities 169.36 or a person appointed by the chancellor; and the president of 170.1 the University of Minnesota or a person appointed by the 170.2 president. 170.3 (b) Of the ten representative citizens of the state 170.4 appointed to the state board of education, one member at-large 170.5 is a student who is enrolled full-time in a Minnesota public 170.6 high school at the time of the student's appointment and one 170.7 member at-large previously shall have served as an elected 170.8 member of a board of education of a school district. 170.9 (c) The governor appoints the representative citizen 170.10 members of the state board with the advice and consent of the 170.11 senate. The state board of education annually elects one of its 170.12 members as president, but no member serves as president more 170.13 than three consecutive years. 170.14 (d) The state board of education holds meetings on dates 170.15 and at places it designates. 170.16 (e) No member shall hold any public office, or represent or 170.17 be employed by any board of education or school district, public 170.18 or private, and shall not voluntarily have any personal 170.19 financial interest in any contract with a board of education or 170.20 school district, or be engaged in any capacity where a conflict 170.21 of interest may arise. 170.22 (f) The administrative costs of the state board of 170.23 education must be paid out of department of children, families, 170.24 and learning appropriations. 170.25 Subd. 2. [MEMBERSHIP; COMPENSATION.] The membership terms, 170.26 compensation, removal of members, and filling of vacancies on 170.27 the state board are as provided in section 15.0575. 170.28 Subd. 3. [RESIDENCY REQUIREMENT.] If a member moves out of 170.29 the congressional district from which the member was appointed, 170.30 the member ceases to be a member of the state board. The 170.31 governor appoints a successor within six months thereafter. 170.32 [EFFECTIVE DATE.] This section is effective January 1, 2002. 170.33 Sec. 25. Minnesota Statutes 2000, section 127A.05, 170.34 subdivision 1, is amended to read: 170.35 Subdivision 1. [APPOINTMENT AND DUTIES.] (a) The 170.36 department shall be under the administrative control of the 171.1 commissioner of children, families, and learning which office is 171.2 established. Thegovernorcommissioner is the secretary of the 171.3 state board of education. The state board of education shall 171.4 appoint the commissioner under the provisions of section 15.06. 171.5 For purposes of section 15.06, the state board of education is 171.6 the appointing authority. 171.7 (b) The commissioner serves at the pleasure of the board. 171.8 (c) The commissioner shall be a person who possesses 171.9 educational attainment and breadth of experience in the 171.10 administration of public education and of the finances 171.11 pertaining thereto commensurate with the spirit and intent of 171.12 this code. Notwithstanding any other law to the contrary, the 171.13 commissioner may appoint two deputy commissioners who shall 171.14 serve in the unclassified service. The commissioner shall also 171.15 appoint other employees as may be necessary for the organization 171.16 of the department. The commissioner shall perform such duties 171.17 as the law and rules may provide and be held responsible for the 171.18 efficient administration and discipline of the department. The 171.19 commissioner is charged with the execution of powers and duties 171.20 to promote public education in the state and to safeguard the 171.21 finances pertaining thereto. 171.22 [EFFECTIVE DATE.] This section is effective January 1, 2002. 171.23 Sec. 26. Minnesota Statutes 2000, section 214.01, 171.24 subdivision 3, is amended to read: 171.25 Subd. 3. [NON-HEALTH-RELATED LICENSING BOARD.] 171.26 "Non-health-related licensing board" means the board of teaching 171.27 established pursuant to section 122A.07, the board of 171.28 educational administration established pursuant to section 171.29 122A.192, the board of barber examiners established pursuant to 171.30 section 154.22, the board of assessors established pursuant to 171.31 section 270.41, the board of architecture, engineering, land 171.32 surveying, landscape architecture, geoscience, and interior 171.33 design established pursuant to section 326.04, the board of 171.34 accountancy established pursuant to section 326.17, the board of 171.35 electricity established pursuant to section 326.241, the private 171.36 detective and protective agent licensing board established 172.1 pursuant to section 326.33, the board of boxing established 172.2 pursuant to section 341.01, and the peace officer standards and 172.3 training board established pursuant to section 626.841. 172.4 Sec. 27. Minnesota Statutes 2000, section 214.04, 172.5 subdivision 1, is amended to read: 172.6 Subdivision 1. [SERVICES PROVIDED.] The commissioner of 172.7 administration with respect to the board of electricity, the 172.8 commissioner of children, families, and learning with respect to 172.9 the board of teaching and the board of educational 172.10 administration, the commissioner of public safety with respect 172.11 to the board of private detective and protective agent services, 172.12 and the board of peace officer standards and training, and the 172.13 commissioner of revenue with respect to the board of assessors, 172.14 shall provide suitable offices and other space, joint conference 172.15 and hearing facilities, examination rooms, and the following 172.16 administrative support services: purchasing service, accounting 172.17 service, advisory personnel services, consulting services 172.18 relating to evaluation procedures and techniques, data 172.19 processing, duplicating, mailing services, automated printing of 172.20 license renewals, and such other similar services of a 172.21 housekeeping nature as are generally available to other agencies 172.22 of state government. Investigative services shall be provided 172.23 the boards by employees of the office of attorney general. The 172.24 commissioner of health with respect to the health-related 172.25 licensing boards shall provide mailing and office supply 172.26 services and may provide other facilities and services listed in 172.27 this subdivision at a central location upon request of the 172.28 health-related licensing boards. The commissioner of commerce 172.29 with respect to the remaining non-health-related licensing 172.30 boards shall provide the above facilities and services at a 172.31 central location for the remaining non-health-related licensing 172.32 boards. The legal and investigative services for the boards 172.33 shall be provided by employees of the attorney general assigned 172.34 to the departments servicing the boards. Notwithstanding the 172.35 foregoing, the attorney general shall not be precluded by this 172.36 section from assigning other attorneys to service a board if 173.1 necessary in order to insure competent and consistent legal 173.2 representation. Persons providing legal and investigative 173.3 services shall to the extent practicable provide the services on 173.4 a regular basis to the same board or boards. 173.5 Sec. 28. Minnesota Statutes 2000, section 214.04, 173.6 subdivision 3, is amended to read: 173.7 Subd. 3. [OFFICERS; STAFF.] The executive director of each 173.8 health-related board and the executive secretary of each 173.9 non-health-related board shall be the chief administrative 173.10 officer for the board but shall not be a member of the board. 173.11 The executive director or executive secretary shall maintain the 173.12 records of the board, account for all fees received by it, 173.13 supervise and direct employees servicing the board, and perform 173.14 other services as directed by the board. The executive 173.15 directors, executive secretaries, and other employees of the 173.16 following boards shall be hired by the board, and the executive 173.17 directors or executive secretaries shall be in the unclassified 173.18 civil service, except as provided in this subdivision: 173.19 (1) dentistry; 173.20 (2) medical practice; 173.21 (3) nursing; 173.22 (4) pharmacy; 173.23 (5) accountancy; 173.24 (6) architecture, engineering, land surveying, landscape 173.25 architecture, geoscience, and interior design; 173.26 (7) barber examiners; 173.27 (8) cosmetology; 173.28 (9) electricity; 173.29 (10) teaching; 173.30 (11) peace officer standards and training; 173.31 (12) social work; 173.32 (13) marriage and family therapy;and173.33 (14) dietetics and nutrition practice; and 173.34 (15) educational administration. 173.35 The executive directors or executive secretaries serving 173.36 the boards are hired by those boards and are in the unclassified 174.1 civil service, except for part-time executive directors or 174.2 executive secretaries, who are not required to be in the 174.3 unclassified service. Boards not requiring full-time executive 174.4 directors or executive secretaries may employ them on a 174.5 part-time basis. To the extent practicable, the sharing of 174.6 part-time executive directors or executive secretaries by boards 174.7 being serviced by the same department is encouraged. Persons 174.8 providing services to those boards not listed in this 174.9 subdivision, except executive directors or executive secretaries 174.10 of the boards and employees of the attorney general, are 174.11 classified civil service employees of the department servicing 174.12 the board. To the extent practicable, the commissioner shall 174.13 ensure that staff services are shared by the boards being 174.14 serviced by the department. If necessary, a board may hire 174.15 part-time, temporary employees to administer and grade 174.16 examinations. 174.17 Sec. 29. Minnesota Statutes 2000, section 214.12, 174.18 subdivision 1, is amended to read: 174.19 Subdivision 1. [REQUIREMENTS.] The health-related and 174.20 non-health-related licensing boards may promulgate by rule 174.21 requirements for renewal of licenses designed to promote the 174.22 continuing professional competence of licensees. These 174.23 requirements of continuing professional education or training 174.24 shall be designed solely to improve professional skills and 174.25 shall not exceed an average attendance requirement of 50 clock 174.26 hours per year. All requirements promulgated by the boards 174.27 shall be effective commencing January 1, 1977, or at a later 174.28 date as the board may determine. The 50 clock hour limitation 174.29 shall not apply to the board of teaching and board of 174.30 educational administration. 174.31 Sec. 30. [TRANSFER; DEPARTMENT ASSISTANCE.] 174.32 The powers and duties of the department of children, 174.33 families, and learning with respect to charter schools are 174.34 transferred to the state board for charter schools under 174.35 Minnesota Statutes, section 15.039, subdivisions 1, 2, 3, 4, 5, 174.36 5a, 6, and 8. The department shall provide all necessary 175.1 materials and assistance for the transfer from the department to 175.2 the state board. 175.3 Sec. 31. [TRANSFER OF POWERS AND DUTIES.] 175.4 The powers, duties, and responsibilities of the 175.5 commissioner of children, families, and learning with respect to 175.6 supervisory personnel as defined in Minnesota Statutes, section 175.7 122A.15, subdivision 2, are transferred to the board of 175.8 educational administration under Minnesota Statutes, section 175.9 15.039. 175.10 Sec. 32. [INITIAL STATE BOARD OF EDUCATION APPOINTMENTS.] 175.11 Initial appointments to the state board of education under 175.12 Minnesota Statutes, section 122A.162, are as follows: 175.13 (1) four members, at least one of whom resides in each of 175.14 four congressional districts and one member at-large serve a 175.15 two-year term; and 175.16 (2) four members, at least one of whom resides in each of 175.17 the remaining four congressional districts not represented under 175.18 clause (1) and one member at-large serve a four-year term. 175.19 The membership terms, compensation, removal of members, and 175.20 filling of vacancies on the state board otherwise are as 175.21 provided in Minnesota Statutes, section 15.0575. 175.22 [EFFECTIVE DATE.] This section is effective the day 175.23 following final enactment. 175.24 Sec. 33. [FEE INCREASE APPROVAL; MODIFICATION.] 175.25 The fee for licenses issued by the board of educational 175.26 administration is approved at $75. 175.27 Sec. 34. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING; 175.28 SCHOOL MEDIA STAFF PERSON.] 175.29 The commissioner of children, families, and learning shall 175.30 designate a staff person as a resource person for providing 175.31 state-level leadership for school media programs. The 175.32 commissioner shall pay all costs for that staff person out of 175.33 existing department appropriations. 175.34 Sec. 35. [SCHOOL MEDIA CENTER STUDY.] 175.35 The commissioner shall use existing funds to conduct a 175.36 study of school media centers. The study must: 176.1 (1) make available comprehensive data about school media 176.2 center staffing, facilities, collections, and technology; 176.3 (2) identify elements of school media programs that 176.4 contribute to students' educational achievement; and 176.5 (3) recommend best practices for school media programs. 176.6 The commissioner, by January 15, 2003, must provide copies 176.7 of the study to the chairs of the legislature's committees 176.8 charged with oversight of kindergarten through grade 12 176.9 education policy. 176.10 [EFFECTIVE DATE.] This section is effective the day 176.11 following final enactment. 176.12 Sec. 36. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 176.13 FAMILIES, AND LEARNING.] 176.14 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 176.15 LEARNING.] Unless otherwise indicated, the sums indicated in 176.16 this section are appropriated from the general fund to the 176.17 department of children, families, and learning for the fiscal 176.18 years designated. 176.19 Subd. 2. [DEPARTMENT.] (a) For the department of children, 176.20 families, and learning: 176.21 $28,464,000 ..... 2002 176.22 $30,164,000 ..... 2003 176.23 Any balance in the first year does not cancel but is 176.24 available in the second year. 176.25 (b) $684,000 in 2002 and $690,000 in 2003 is for the board 176.26 of teaching. 176.27 (c) $200,000 each year is for the board of educational 176.28 administration. 176.29 (d) $200,000 each year is for the state board for charter 176.30 schools. 176.31 (e) $100,000 in fiscal year 2002 and $200,000 in fiscal 176.32 year 2003 are for the state board of education. 176.33 (f) $400,000 in fiscal year 2002 and $400,000 in fiscal 176.34 year 2003 are for the office of educational accountability under 176.35 Minnesota Statutes, section 120B.31, subdivision 3. 176.36 (g) The expenditures of federal grants and aids as shown in 177.1 the biennial budget document and its supplements are approved 177.2 and appropriated and shall be spent as indicated. 177.3 (h) In preparing the department budget for fiscal years 177.4 2004-2005, the department shall shift all administrative funding 177.5 from aids appropriations into the appropriation for the 177.6 department. 177.7 Sec. 37. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 177.8 EDUCATION.] 177.9 The sums indicated in this section are appropriated from 177.10 the general fund to the Perpich center for arts education for 177.11 the fiscal years designated: 177.12 $7,531,000 ..... 2002 177.13 $7,666,000 ..... 2003 177.14 Any balance in the first year does not cancel but is 177.15 available in the second year. 177.16 Sec. 38. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 177.17 The sums indicated in this section are appropriated from 177.18 the general fund to the Minnesota state academies for the deaf 177.19 and the blind for the fiscal years designated: 177.20 $10,761,000 ..... 2002 177.21 $10,966,000 ..... 2003 177.22 Any balance in the first year does not cancel but is 177.23 available in the second year. 177.24 Sec. 39. [REVISOR INSTRUCTION; STATE BOARD OF EDUCATIONAL 177.25 ADMINISTRATION.] 177.26 In the next and subsequent editions of Minnesota Statutes, 177.27 the revisor of statutes shall substitute the term "board of 177.28 educational administration" for the term "commissioner" or 177.29 "commissioner of children, families, and learning" in the 177.30 following sections of Minnesota Statutes: 122A.18, subdivisions 177.31 3, 6, and 8; 122A.20, subdivision 1; 122A.23, subdivision 1; 177.32 122A.27, subdivisions 1, 4, and 5; 123A.21; 123B.03, subdivision 177.33 1; and 125A.67, subdivision 2. 177.34 Sec. 40. [REVISOR'S INSTRUCTION; STATE BOARD OF 177.35 EDUCATION.] 177.36 Except as provided in Minnesota Statutes, section 124D.10, 178.1 establishing a state board for charter schools, and the section 178.2 transferring powers, duties, and responsibilities for 178.3 supervisory personnel to the board of educational 178.4 administration, in the next and subsequent editions of Minnesota 178.5 Statutes and Minnesota Rules, all references changed from the 178.6 state board of education to the commissioner of children, 178.7 families, and learning and all authority transferred from the 178.8 state board of education to the commissioner of children, 178.9 families, and learning under Laws 1998, chapter 398, and Laws 178.10 1999, chapter 241, shall be changed back to the state board of 178.11 education. Among other things, and as an illustration only, 178.12 these changes shall affect the authority to exercise general 178.13 supervision over educational agencies and adopt or amend 178.14 administrative rules. In addition, and consistent with the 178.15 provisions of this article, the revisor of statutes, in 178.16 consultation with house and senate counsel, shall make other 178.17 necessary changes affecting the powers and duties of the state 178.18 board of education, consistent with the law as it appeared in 178.19 Minnesota Statutes 1996 and Minnesota Statutes 1997 Supplement, 178.20 and in Minnesota Rules 1997 and supplements. The revisor shall 178.21 prepare a report to the 2002 legislature showing where these 178.22 changes were made. The changes identified by the revisor shall 178.23 be effective January 1, 2002. 178.24 [EFFECTIVE DATE.] This section is effective the day 178.25 following final enactment. 178.26 ARTICLE 7 178.27 DEFICIENCIES 178.28 Section 1. [APPROPRIATIONS; DEFICIENCIES.] 178.29 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 178.30 LEARNING.] Unless otherwise indicated, the sums indicated in 178.31 this section are appropriated from the general fund to the 178.32 department of children, families, and learning for the fiscal 178.33 years designated for the funding of programs subject to 178.34 state-aid deficiencies in fiscal year 2001. These 178.35 appropriations are in addition to any other appropriations for 178.36 those purposes. 179.1 Subd. 2. [GENERAL EDUCATION AID.] For general education 179.2 aid: 179.3 $19,754,000 ..... 2001 179.4 Subd. 3. [SECONDARY VOCATIONAL AID.] For secondary 179.5 vocational aid: 179.6 $ 6,000 ..... 2001 179.7 Subd. 4. [SPECIAL EDUCATION EXCESS COST AID.] For special 179.8 education excess cost aid: 179.9 $6,740,000 ..... 2001 179.10 Subd. 5. [HEALTH AND SAFETY AID.] For health and safety 179.11 aid: 179.12 $ 273,000 ..... 2001 179.13 Subd. 6. [INTERACTIVE TELEVISION AID.] For interactive 179.14 television aid: 179.15 $ 6,000 ..... 2001 179.16 Subd. 7. [ALTERNATIVE FACILITIES BONDING AID.] For 179.17 alternative facilities bonding aid: 179.18 $ 68,000 ..... 2001 179.19 ARTICLE 8 179.20 LOCAL ACHIEVEMENT TESTING 179.21 Section 1. Minnesota Statutes 2000, section 120B.02, is 179.22 amended to read: 179.23 120B.02 [RESULTS-ORIENTEDGRADUATION RULE; BASIC SKILLS179.24REQUIREMENTS; PROFILE OF LEARNING.] 179.25 (a) The legislature is committed to establishing a 179.26 rigorous, results-orientedgraduation rule for Minnesota's 179.27 public school students. To that end, the commissioner shall use 179.28 its rulemaking authority under section 127A.05, subdivision 4, 179.29 to adopt astatewide, results-orientedgraduation ruleto be179.30implemented starting with students beginning ninth grade in the179.311996-1997 school year. The commissioner shall not prescribe in 179.32 rule or otherwise the delivery system or form of instruction 179.33 that independent schoolsitesdistricts must use to meet the 179.34 requirements contained in this rule.For purposes of this179.35chapter, a school site is a separate facility, or a separate179.36program within a facility that a local school board recognizes180.1as a school site.180.2 (b) To successfully accomplish paragraph (a),the180.3commissioner shall set in rule high academic standards for all180.4students. The standards must contain the foundationalbasic 180.5 skills requirements in the three core curricular areas of 180.6 reading, writing, and mathematicswhile meeting requirementsare 180.7 established by Minnesota Rules, parts 3501.0010 to 3501.0180 and 180.8 3501.0200 to 3501.0290, and must be completed for public high 180.9 school graduation. Thestandardsgraduation rule must also 180.10 provide an opportunity for students to excel by meeting higher 180.11 academic standards througha profile of learning that uses180.12curricular requirements to allow students to expand theirlocal 180.13 academic achievement testing under section 120B.35 that measures 180.14 knowledgeand skillsbeyond the foundational skills. All 180.15 commissioner actions regarding the graduation rule must be 180.16 premised on the following: 180.17 (1) the rule is intended to raise academic expectations for 180.18 students, teachers, and schools; 180.19 (2) any state action regarding the rule must evidence 180.20 consideration of school district autonomy; and 180.21 (3) the department of children, families, and learning, 180.22 with the assistance of school districts, must make available 180.23 information about all state initiatives related to the rule to 180.24 students and parents, teachers, and the general public in a 180.25 timely format that is appropriate, comprehensive, and readily 180.26 understandable. 180.27 (c)For purposes of adopting the rule, the commissioner, in180.28consultation with the department, recognized psychometric180.29experts in assessment, and other interested and knowledgeable180.30educators, using the most current version of professional180.31standards for educational testing, shall evaluate the180.32alternative approaches to assessment.180.33(d) The content of the graduation rule must differentiate180.34between minimum competencies reflected in the basic requirements180.35assessment and rigorous profile of learning standards. When180.36fully implemented, the requirements for high school graduation181.1in Minnesota must include both basic requirements and the181.2required profile of learning. The profile of learning must181.3measure student performance using performance-based assessments181.4compiled over time that integrate higher academic standards,181.5higher order thinking skills, and application of knowledge from181.6a variety of content areas. The profile of learning shall181.7include a broad range of academic experience and accomplishment181.8necessary to achieve the goal of preparing students to function181.9effectively as purposeful thinkers, effective communicators,181.10self-directed learners, productive group participants, and181.11responsible citizens. 181.12(e) The profile of learning contains the following learning181.13areas:181.14(1) read, listen, and view;181.15(2) write and speak;181.16(3) arts and literature;181.17(4) mathematical concepts and applications;181.18(5) inquiry and research;181.19(6) scientific concepts and applications;181.20(7) social studies;181.21(8) physical education and lifetime fitness;181.22(9) economics and business;181.23(10) world languages; and181.24(11) technical and vocational education.181.25(f) The commissioner shall periodically review and report181.26on the assessment process and student achievement with the181.27expectation of raising the standards and expanding high school181.28graduation requirements.181.29(g) Beginning August 31, 2000, the commissioner must181.30publish, including in electronic format for the Internet, a181.31report, by school site, area learning center, and charter181.32school, of:181.33(1) the required preparatory content standards;181.34(2) the high school content standards required for181.35graduation; and181.36(3) the number of student waivers the district, area182.1learning center, or charter school approves under section182.2120B.031, subdivisions 4, 5, and 6, based on information each182.3district, area learning center, and charter school provides.182.4(h) School districts must integrate required and elective182.5content standards in the scope and sequence of the district182.6curriculum.182.7(i)School districts are not required to adopt, and 182.8 students are not required to participate in, specific provisions 182.9 oftheGoals 2000and the, federal School-to-Work programs, the 182.10 National Assessment of Educational Progress, and Title I of the 182.11 Elementary and Secondary Education Act. 182.12 Sec. 2. Minnesota Statutes 2000, section 120B.30, 182.13 subdivision 1, is amended to read: 182.14 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 182.15 with advice from experts with appropriate technical 182.16 qualifications and experience and stakeholders,shall include in182.17the comprehensive assessment system, for each grade level to be182.18tested, a test, which shall be aligned with the state's182.19graduation standards and administered annually to all students182.20in the third, fifth, and eighth grades. The commissionershall 182.21 establish one or more months during which schools shall 182.22 administer the basic skills tests to students each school year. 182.23 Only Minnesota basic skills tests in reading, mathematics, and 182.24 writing shall fulfill students' basic skills testing 182.25 requirements for a passing state notation. The passing scores 182.26 of the state tests in reading and mathematics are the equivalent 182.27 of: 182.28 (1) 70 percent correct for students entering grade 9 in 182.29 1996; and 182.30 (2) 75 percent correct for students entering grade 9 in 182.31 1997 and thereafter, as based on the first uniform test182.32administration of February 1998. 182.33 Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, 182.34 at the written request of a parent or guardian, and with the 182.35 recommendation of the student's teacher, a district may offer 182.36 the test of basic requirements in reading, math, or writing to 183.1 an individual student beginning in grade 5. The student must 183.2 take the same test on the same date as administered to students 183.3 in eighth grade or higher.Third and fifth grade test results183.4shall be available to districts for diagnostic purposes183.5affecting student learning and district instruction and183.6curriculum, and for establishing educational accountability.183.7The commissioner must disseminate to the public the third and183.8fifth grade test results upon receiving those results.183.9 (b)In addition, at the secondary level, districts shall183.10assess student performance in all required learning areas and183.11selected required standards within each area of the profile of183.12learning. The testing instruments and testing process shall be183.13determined by the commissioner. The results shall be aggregated183.14at the site and district level. The testing shall be183.15administered beginning in the 1999-2000 school year and183.16thereafter.A statewide test under this section shall: 183.17 (1) use a multiple choice format with only one factually 183.18 correct answer, except for writing, which may include an essay 183.19 requirement; 183.20 (2) test academic, objective knowledge, and not personal 183.21 characteristics, values, attitudes, or conscientiously held 183.22 beliefs of students; and 183.23 (3) be made available in its entirety, including questions, 183.24 answer key, and aggregate results, to the public, and the 183.25 aggregated results shall be reported to the department and the 183.26 office of educational accountability within 60 days of its 183.27 administration. Upon request, a parent of a student who 183.28 participated in the testing program shall receive a copy of each 183.29 test in its entirety and the results for the child. 183.30 (c) The commissioner shall report aggregate school site and 183.31 school district student academic basic skills achievement levels 183.32 of the current and two immediately preceding school years. The 183.33 report shall include students' unweighted mean test scores in 183.34 each tested subject, the unweighted mean test scores of only 183.35 those students enrolled in the school by January 1 of the 183.36 previous school year, and the unweighted test scores of all 184.1 students except those students receiving limited English 184.2 proficiency instruction. The report also shall record 184.3 separately, in proximity to the reported performance levels, the 184.4 percentages of students who are eligible to receive a free or 184.5 reduced price school meal, demonstrate limited English 184.6 proficiency, or are eligible to receive special education 184.7 services. 184.8 (d) In addition to the testing and reporting requirements 184.9 under paragraphs (a), (b), and (c), the commissioner shall 184.10 include the following components inthestatewide public 184.11 reportingsystem: 184.12 (1)uniform statewide testing of all third, fifth, eighth,184.13and post-eighth grade students that provides exemptions, only184.14with parent or guardian approval, for those very few students184.15for whom the student's individual education plan team under184.16sections 125A.05 and 125A.06, determines that the student is184.17incapable of taking a statewide test, or for a limited English184.18proficiency student under section 124D.59, subdivision 2, if the184.19student has been in the United States for fewer than 12 months184.20and for whom special language barriers exist, such as the184.21student's native language does not have a written form or the184.22district does not have access to appropriate interpreter184.23services for the student's native language;184.24(2)educational indicators that can be aggregated and 184.25 compared across school districts and across time on a statewide 184.26 basis, including average daily attendance, high school 184.27 graduation rates, and high school drop-out rates by age and 184.28 grade level; and 184.29(3)(2) students' scores on the American College Test; and184.30(4) participation in the National Assessment of Educational184.31Progress so that the state can benchmark its performance against184.32the nation and other states, and, where possible, against other184.33countries, and contribute to the national effort to monitor184.34achievement.184.35(e) Districts must report exemptions under paragraph (d),184.36clause (1), to the commissioner consistent with a format185.1provided by the commissioner, the Preliminary Scholastic 185.2 Aptitude Test, and the Scholastic Aptitude Test. 185.3 Sec. 3. Minnesota Statutes 2000, section 120B.31, 185.4 subdivision 3, is amended to read: 185.5 Subd. 3. [EDUCATIONAL ACCOUNTABILITY.](a)The independent 185.6 office of educational accountability, as authorized by Laws 185.7 1997, First Special Session chapter 4, article 5, section 28, 185.8 subdivision 2, is established. The office shall advise the 185.9 education committees of the legislature and the commissioner of 185.10 children, families, and learning, at least on a biennial basis, 185.11 on the degree to whichthe statewideeducational 185.12accountabilitytesting and reportingsystem includes a185.13comprehensive assessment framework that measures school185.14accountability for students achieving the goals described in the185.15state's results-oriented graduation rule. The office shall185.16consider whether the statewide system of educational185.17accountability utilizes multiple indicators to provide valid and185.18reliable comparative and contextual data on students, schools,185.19districts, and the state, and if not, recommend ways to improve185.20the accountability reporting systemreflect student academic 185.21 achievement. 185.22(b)When the office reviewsthe statewideeducational 185.23 accountability and reportingsystem, it shall also consider:185.24(1) the objectivity and neutrality of the state's185.25educational accountability system; and185.26(2)the impact of a testing program on school curriculum 185.27 and student learning. 185.28 Sec. 4. Minnesota Statutes 2000, section 120B.35, is 185.29 amended to read: 185.30 120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.] 185.31 Subdivision 1. [LOCAL TESTING.] (a) Each school year, a 185.32 school district must administer a uniform testing program to 185.33 determine if the student academic achievement levels at each 185.34 school site in the third, fifth, and tenth grades meetstate and185.35 local expectations. If student achievement levels at a school 185.36 site do not meetstate andlocal expectations for two out of 186.1 three consecutive school years,beginning with the 2000-2001186.2school year,the district must work with the school site to 186.3 adopt a plan to raise student achievement levels to meetstate186.4andlocal expectations.The legislature will determine state186.5expectations after receiving a recommendation from the186.6commissioner of children, families, and learning.186.7 (b) The testing program shall measure knowledge in the 186.8 following subject areas: 186.9 (1) for third grade, at least mathematics and language 186.10 arts, which shall include reading, writing, grammar, vocabulary, 186.11 and spelling; and 186.12 (2) for fifth and tenth grades: 186.13 (i) mathematics; 186.14 (ii) language arts, which shall include reading, writing, 186.15 grammar, vocabulary, and spelling; 186.16 (iii) science; 186.17 (iv) history, which shall include an emphasis on the United 186.18 States and Minnesota; and 186.19 (v) geography. 186.20 (c) The testing program shall be selected by the school 186.21 district and may include nationally normed tests, the placement 186.22 tests or their equivalents used by Minnesota post-secondary 186.23 institutions, locally developed tests, or other valid tests. 186.24 Each test shall be: 186.25 (1) in multiple choice question format with only one 186.26 factually correct answer for each question, except for language 186.27 arts, which may include an essay requirement; 186.28 (2) academic, objective, and not pertain to the personal 186.29 characteristics, values, attitudes, or conscientiously held 186.30 beliefs of students; 186.31 (3) secure, confidential, timed, and not permit the use of 186.32 any outside aid or reference, except that calculators may be 186.33 permitted at the secondary level and special accommodations may 186.34 be permitted under state or federal law for students with an 186.35 individualized education plan; 186.36 (4) comprehensive enough to include questions that would 187.1 identify students of academic excellence; and 187.2 (5) made available in its entirety, including questions, 187.3 answer key, and aggregate results, to the public, and be 187.4 reported to the department and the office of educational 187.5 accountability, within 60 days of its administration. Upon 187.6 request, a parent of a student who participated in the testing 187.7 program shall receive a copy of each test in its entirety and 187.8 the results for the child. 187.9 Subd. 2. [ASSISTANCE.] The department, at a district's 187.10 request, must assist the district and the school site in 187.11 developing a plan to improve student achievement.The planWhen 187.12 developing the plan, a district mustincludeconsider parental 187.13involvement componentsrecommendations. 187.14 Sec. 5. [INSTRUCTION TO THE REVISOR.] 187.15 The revisor of statutes shall change the headnote names of 187.16 Minnesota Statutes, section 120B.30 from "STATEWIDE TESTING AND 187.17 REPORTING SYSTEM" to "STATEWIDE BASIC SKILLS TESTING AND 187.18 REPORTING" and Minnesota Statutes, section 120B.31 from "SYSTEM 187.19 ACCOUNTABILITY AND STATISTICAL ADJUSTMENTS" to "OFFICE OF 187.20 EDUCATIONAL ACCOUNTABILITY." 187.21 Sec. 6. [REPEALER.] 187.22 (a) Minnesota Statutes 2000, sections 120B.031; and 187.23 120B.31, subdivisions 1, 2, and 4, are repealed. 187.24 (b) Minnesota Rules, parts 3501.0300; 3501.0310; 3501.0320; 187.25 3501.0330; 3501.0340; 3501.0350; 3501.0370; 3501.0380; 187.26 3501.0390; 3501.0400; 3501.0410; 3501.0420; 3501.0430; 187.27 3501.0440; 3501.0441; 3501.0442; 3501.0443; 3501.0444; 187.28 3501.0445; 3501.0446; 3501.0447; 3501.0448; 3501.0449; 187.29 3501.0450; 3501.0460; 3501.0461; 3501.0462; 3501.0463; 187.30 3501.0464; 3501.0465; 3501.0466; 3501.0467; 3501.0468; and 187.31 3501.0469, are repealed. 187.32 ARTICLE 9 187.33 TECHNICAL AMENDMENTS 187.34 Section 1. Minnesota Statutes 2000, section 122A.26, 187.35 subdivision 3, is amended to read: 187.36 Subd. 3. [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 188.1 subdivision 2, a person who possesses a bachelor's or master's 188.2 degree in English as a second language, applied linguistics, or 188.3 bilingual education, or who possesses a related degree as 188.4 approved by the commissioner, shall be permitted to teach 188.5 English as a second language in an adult basic education program 188.6 that receives funding under section124D.53124D.531. 188.7 Sec. 2. Minnesota Statutes 2000, section 124D.11, 188.8 subdivision 5, is amended to read: 188.9 Subd. 5. [SPECIAL EDUCATION AID.] Except as provided in 188.10 subdivision 2, special education aid must be paid to a charter 188.11 school according to section 125A.76, as though it were a school 188.12 district. The charter school may charge tuition to the district 188.13 of residence as provided in section 125A.11.The charter school188.14shall allocate its special education levy equalization revenue188.15to the resident districts of the pupils attending the charter188.16school. The districts of residence shall levy as though they188.17were participating in a cooperative, as provided in section188.18125A.77, subdivision 3.188.19 Sec. 3. Minnesota Statutes 2000, section 124D.454, 188.20 subdivision 11, is amended to read: 188.21 Subd. 11. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 188.22 INTERMEDIATE DISTRICTS.] For purposes of this sectionand188.23section 125A.77, a cooperative center or an intermediate 188.24 district must allocate its approved expenditures for transition 188.25 programs for children with a disability among participating 188.26 school districts. Aid for transition programs for children with 188.27 a disability for services provided by a cooperative or 188.28 intermediate district shall be paid to the participating 188.29 districts. 188.30 Sec. 4. Minnesota Statutes 2000, section 125A.17, is 188.31 amended to read: 188.32 125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY 188.33 PLACED IN A FOSTER FACILITY.] 188.34 The legal residence of a child with a disability placed in 188.35 a foster facility for care and treatment is the district in 188.36 which the child resides when: 189.1 (1) parental rights have been terminated by court order; 189.2 (2) the parent or guardian is not living within the state; 189.3 (3) no other district residence can be established; or 189.4 (4) the parent or guardian having legal custody of the 189.5 child is an inmate of a Minnesota correctional facility or is a 189.6 resident of a halfway house under the supervision of the 189.7 commissioner of corrections;189.8is the district in which the child resides. The school board of 189.9 the district of residence must provide the same educational 189.10 program for the child as it provides for all resident children 189.11 with a disability in the district. 189.12 Sec. 5. Minnesota Statutes 2000, section 127A.41, 189.13 subdivision 8, is amended to read: 189.14 Subd. 8. [APPROPRIATION TRANSFERS.] If a direct 189.15 appropriation from the general fund to the department for any 189.16 education aid or grant authorized in this chapter and chapters 189.17 122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 189.18 under sections 124D.135, 124D.16, 124D.20, 124D.21, 124D.22, 189.19 124D.52,124D.53124D.531, 124D.54, 124D.55, and 124D.56, 189.20 exceeds the amount required, the commissioner may transfer the 189.21 excess to any education aid or grant appropriation that is 189.22 insufficient. However, section 126C.20 applies to a deficiency 189.23 in the direct appropriation for general education aid. Excess 189.24 appropriations must be allocated proportionately among aids or 189.25 grants that have insufficient appropriations. The commissioner 189.26 of finance shall make the necessary transfers among 189.27 appropriations according to the determinations of the 189.28 commissioner. If the amount of the direct appropriation for the 189.29 aid or grant plus the amount transferred according to this 189.30 subdivision is insufficient, the commissioner shall prorate the 189.31 available amount among eligible districts. The state is not 189.32 obligated for any additional amounts. 189.33 Sec. 6. Minnesota Statutes 2000, section 127A.41, 189.34 subdivision 9, is amended to read: 189.35 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 189.36 PROGRAMS.] If a direct appropriation from the general fund to 190.1 the department of children, families, and learning for an 190.2 education aid or grant authorized under section 124D.135, 190.3 124D.16, 124D.20, 124D.21, 124D.22, 124D.52,124D.53124D.531, 190.4 124D.54, 124D.55, or 124D.56 exceeds the amount required, the 190.5 commissioner of children, families, and learning may transfer 190.6 the excess to any education aid or grant appropriation that is 190.7 insufficiently funded under these sections. Excess 190.8 appropriations shall be allocated proportionately among aids or 190.9 grants that have insufficient appropriations. The commissioner 190.10 of finance shall make the necessary transfers among 190.11 appropriations according to the determinations of the 190.12 commissioner of children, families, and learning. If the amount 190.13 of the direct appropriation for the aid or grant plus the amount 190.14 transferred according to this subdivision is insufficient, the 190.15 commissioner shall prorate the available amount among eligible 190.16 districts. The state is not obligated for any additional 190.17 amounts. 190.18 Sec. 7. [REPEALER.] 190.19 Laws 2000, chapter 254, section 30; and Laws 2000, chapter 190.20 489, article 1, section 18, are repealed.