Minnesota Legislature
SF 21
as introduced - 82nd Legislature, 2001 1st Special Session (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to the state budget; appropriating money to 1.3 fund the budget base plus inflation with certain 1.4 conditions; providing a sales tax rebate; making 1.5 technical corrections to the Minnesota college savings 1.6 plan; increasing reimbursement rate for certain 1.7 providers of human services by three percent in each 1.8 year of the biennium; ratifying certain salary 1.9 agreements negotiated during the 2000-2001 biennium; 1.10 providing disaster relief related to the floods of 1.11 1997 and the tornado of July 25, 2000; ratifying 1.12 transfer of duties from the department of public 1.13 service to the department of commerce; amending 1.14 Minnesota Statutes 2000, sections 3C.12, subdivision 1.15 2; 13.679; 15.01; 15.06, subdivision 1; 15A.0815, 1.16 subdivision 2; 16B.32, subdivision 2, as amended; 1.17 16B.335, subdivision 4; 16B.56, subdivision 1; 16B.76, 1.18 subdivision 1, as amended; 17.86, subdivision 3; 1.19 18.024, subdivision 1; 43A.08, subdivision 1a; 45.012; 1.20 62J.694, subdivision 2; 103F.325, subdivisions 2, 3; 1.21 115A.15, subdivision 5; 116O.06, subdivision 2; 1.22 119A.12, by adding subdivisions; 119A.13, subdivision 1.23 4; 119A.21; 119A.22; 119B.011, subdivision 19; 1.24 122A.26, subdivision 3; 123B.42, subdivision 3; 1.25 123B.44, subdivision 6; 123B.65, subdivisions 1, 3, 5; 1.26 123B.75, subdivision 5, by adding a subdivision; 1.27 124D.11, subdivision 5; 124D.128, subdivisions 1, 2, 1.28 3, 6; 124D.16, subdivision 2; 124D.454, subdivision 1.29 11; 124D.52, subdivision 2; 124D.522; 124D.531, 1.30 subdivisions 1, 3; 124D.80, subdivision 3; 124D.892, 1.31 subdivision 3, as amended; 125A.17; 125A.27, 1.32 subdivision 15; 125A.76, subdivision 2; 125B.20, 1.33 subdivision 1; 126C.05, subdivisions 1, 15; 126C.10, 1.34 subdivisions 1, 2, 9; 126C.12, subdivisions 2, 3, 4, 1.35 5, by adding a subdivision; 126C.17, subdivisions 1, 1.36 6, 9, 10, 11; 126C.23, subdivision 5; 126C.41, 1.37 subdivision 3; 127A.30; 127A.41, subdivisions 5, 8, 9; 1.38 127A.45, subdivision 12, by adding a subdivision; 1.39 134.31, by adding a subdivision; 136A.101, subdivision 1.40 5a; 136A.121, subdivisions 6, 9; 136A.241; 136A.242; 1.41 136A.243, subdivisions 1, 2, 3, 4, 9; 136A.244, 1.42 subdivisions 1, 4; 136A.245, subdivisions 2, 4, by 1.43 adding subdivisions; 161.45, subdivision 1; 168.61, 1.44 subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 1.45 216A.01; 216A.035; 216A.036; 216A.05, subdivision 1; 1.46 216A.07, subdivision 1; 216A.08; 216A.085, subdivision 2.1 3; 216B.02, subdivisions 1, 7, 8; 216B.16, 2.2 subdivisions 1, 2, 6b; 216B.162, subdivisions 7, 11; 2.3 216B.1675, subdivision 9; 216B.241, subdivisions 1a, 2.4 as amended, 1b, as amended, 2b; 216C.01, subdivisions 2.5 1, 2, 3; 216C.37, subdivision 1; 216C.40, subdivision 2.6 4; 237.02; 237.075, subdivisions 2, 9; 237.082; 2.7 237.21; 237.30; 237.462, subdivision 6; 237.51, 2.8 subdivisions 1, 5, 5a; 237.52, subdivisions 2, 4, 5; 2.9 237.54, subdivision 2; 237.55; 237.59, subdivision 2; 2.10 237.768; 239.01; 242.192; 256B.431, by adding a 2.11 subdivision; 256B.434, subdivision 4; 256B.5012, by 2.12 adding a subdivision; 325E.11; 325E.115, subdivision 2.13 2; 326.243; 484.50; Laws 2000, chapter 489, article 2, 2.14 sections 34, 37, 39, subdivision 2; Laws 2000, chapter 2.15 489, article 3, sections 24, 25, subdivision 5; Laws 2.16 2000, chapter 489, article 5, section 21; Laws 2000, 2.17 chapter 489, article 7, section 15, subdivision 3; 2.18 proposing coding for new law in Minnesota Statutes, 2.19 chapters 16A; 119A; 124D; 134; 136A; repealing 2.20 Minnesota Statutes 2000, sections 119A.13, 2.21 subdivisions 1, 2, 3; 119A.14, subdivision 2; 119A.23; 2.22 124D.1155; 124D.128, subdivision 7; 124D.33; 124D.331; 2.23 125B.20, subdivision 3; 126C.10, subdivision 23; 2.24 216A.06; 237.69, subdivision 3; Laws 2000, chapter 2.25 254, section 30; Laws 2000, chapter 489, article 1, 2.26 section 18. 2.27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.28 ARTICLE 1 2.29 APPROPRIATION SUMMARY 2.30 General Fund Only 2.31 BIENNIAL 2.32 2002 2003 TOTAL 2.33 E-12 Education $4,570,103,000 $4,695,287,000 $9,265,390,000 2.34 Higher Education 1,364,868,000 1,428,892,000 2,793,760,000 2.35 Environment and 2.36 Agriculture 206,162,000 209,599,000 415,761,000 2.37 Health and 2.38 Human Services 3,033,873,000 3,351,990,000 6,385,863,000 2.39 State Government 316,318,000 323,107,000 639,425,000 2.40 Economic 2.41 Development 186,913,000 185,508,000 372,421,000 2.42 Transportation 2.43 and Other Agencies 84,572,000 84,813,000 169,385,000 2.44 Public Safety 2.45 and Judiciary 223,609,000 235,036,000 458,645,000 2.46 Corrections 410,616,000 423,209,000 833,825,000 2.47 TOTAL $10,397,034,000 $10,937,441,000 $21,334,475,000 2.48 ARTICLE 2 2.49 SALES TAX REBATE 2.50 Section 1. [STATEMENT OF PURPOSE.] 2.51 (a) The state of Minnesota derives revenues from a variety 3.1 of taxes, fees, and other sources, including the state sales tax. 3.2 (b) It is fair and reasonable to refund the existing state 3.3 budget surplus in the form of a rebate of nonbusiness consumer 3.4 sales taxes paid by individuals in calendar year 1999. 3.5 (c) Information concerning the amount of sales tax paid at 3.6 various income levels is contained in the Minnesota tax 3.7 incidence report, which is written by the commissioner of 3.8 revenue and presented to the legislature according to Minnesota 3.9 Statutes, section 270.0682. 3.10 (d) It is fair and reasonable to use information contained 3.11 in the Minnesota tax incidence report to determine the 3.12 proportionate share of the sales tax rebate due each eligible 3.13 taxpayer since no effective or practical mechanism exists for 3.14 determining the amount of actual sales tax paid by each eligible 3.15 individual. 3.16 Sec. 2. [SALES TAX REBATE.] 3.17 Subdivision 1. [ELIGIBILITY; REBATE BASED ON INCOME.] An 3.18 individual who was a resident of Minnesota for any part of 1999, 3.19 and filed a 1999 Minnesota income tax return on or before 3.20 November 30, 2001, and had a tax liability before refundable 3.21 credits on that return of at least $1 and who was not allowed to 3.22 be claimed as a dependent on a 1999 federal income tax return 3.23 filed by another person is eligible for a sales tax rebate based 3.24 on income under either subdivision 2 or 3. 3.25 Subd. 2. [MARRIED JOINT AND HEAD OF HOUSEHOLD FILERS.] The 3.26 sales tax rebate for taxpayers who qualify under subdivision 1 3.27 and are married filing joint or head of household filers is 3.28 computed according to the following schedule: 3.29 Income Sales Tax Rebate 3.30 less than $2,500 $233 3.31 at least $2,500 but less than $5,000 $289 3.32 at least $5,000 but less than $10,000 $303 3.33 at least $10,000 but less than $15,000 $334 3.34 at least $15,000 but less than $20,000 $379 3.35 at least $20,000 but less than $25,000 $409 3.36 at least $25,000 but less than $30,000 $436 4.1 at least $30,000 but less than $35,000 $474 4.2 at least $35,000 but less than $40,000 $516 4.3 at least $40,000 but less than $45,000 $560 4.4 at least $45,000 but less than $50,000 $595 4.5 at least $50,000 but less than $60,000 $609 4.6 at least $60,000 but less than $70,000 $636 4.7 at least $70,000 but less than $80,000 $692 4.8 at least $80,000 but less than $90,000 $748 4.9 at least $90,000 but less than $100,000 $809 4.10 at least $100,000 but less than $120,000 $877 4.11 at least $120,000 but less than $140,000 $960 4.12 at least $140,000 but less than $160,000 $1,038 4.13 at least $160,000 but less than $180,000 $1,111 4.14 at least $180,000 but less than $200,000 $1,181 4.15 at least $200,000 but less than $400,000 $1,510 4.16 at least $400,000 but less than $600,000 $1,987 4.17 at least $600,000 but less than $800,000 $2,384 4.18 at least $800,000 but less than $1,000,000 $2,733 4.19 $1,000,000 and over $3,250 4.20 Subd. 3. [SINGLE AND MARRIED SEPARATE FILERS.] The sales 4.21 tax rebate for individuals who qualify under subdivision 1 as 4.22 single or married filing separately must be computed according 4.23 to the following schedule: 4.24 Income Sales Tax Rebate 4.25 less than $2,500 $118 4.26 at least $2,500 but less than $5,000 $124 4.27 at least $5,000 but less than $10,000 $165 4.28 at least $10,000 but less than $15,000 $196 4.29 at least $15,000 but less than $20,000 $227 4.30 at least $20,000 but less than $25,000 $253 4.31 at least $25,000 but less than $30,000 $305 4.32 at least $30,000 but less than $40,000 $329 4.33 at least $40,000 but less than $50,000 $363 4.34 at least $50,000 but less than $70,000 $465 4.35 at least $70,000 but less than $100,000 $644 4.36 at least $100,000 but less than $140,000 $776 5.1 at least $140,000 but less than $200,000 $937 5.2 at least $200,000 but less than $400,000 $1,270 5.3 $400,000 and over $1,625 5.4 Subd. 4. [NONRESIDENTS.] Individuals who were not 5.5 residents of Minnesota for any part of 1999 and who paid more 5.6 than $10 in Minnesota sales tax under Minnesota Statutes, 5.7 chapter 297A, on nonbusiness consumer purchases in that year 5.8 qualify for a rebate under this subdivision only. Qualifying 5.9 nonresidents must file a claim for rebate on a form prescribed 5.10 by the commissioner by November 30, 2001. The claim must 5.11 include receipts showing the Minnesota sales tax paid and the 5.12 date of the sale. Taxes paid on purchases allowed in the 5.13 computation of federal taxable income or reimbursed by an 5.14 employer are not eligible for the rebate. The commissioner 5.15 shall determine the qualifying taxes paid and rebate the lesser 5.16 of: 5.17 (1) 40.45 percent of that amount; or 5.18 (2) the maximum amount for which the claimant would have 5.19 been eligible as determined under subdivision 2 if the taxpayer 5.20 filed the 1999 federal income tax return as a married taxpayer 5.21 filing jointly or head of household, or as determined under 5.22 subdivision 3 for other taxpayers. 5.23 Subd. 5. [DEFINITION OF INCOME.] "Income," for purposes of 5.24 this section other than subdivision 4, is taxable income as 5.25 defined in section 63 of the Internal Revenue Code of 1986, as 5.26 amended through December 31, 1998, plus the sum of any additions 5.27 to federal taxable income for the taxpayer under Minnesota 5.28 Statutes, section 290.01, subdivision 19a, and reported on the 5.29 original 1999 income tax return, including subsequent 5.30 adjustments to that return made within the time limits specified 5.31 in subdivision 12. For an individual who was a resident of 5.32 Minnesota for less than the entire year, the sales tax rebate 5.33 equals the sales tax rebate calculated under subdivision 2 or 3 5.34 multiplied by the percentage determined pursuant to Minnesota 5.35 Statutes, section 290.06, subdivision 2c, paragraph (e), as 5.36 calculated on the original 1999 income tax return, including 6.1 subsequent adjustments to that return made within the time 6.2 limits specified in subdivision 12. For purposes of subdivision 6.3 4, "income" is taxable income as defined in section 63 of the 6.4 Internal Revenue Code of 1986, as amended through December 31, 6.5 1998, and reported on the taxpayer's original federal tax return 6.6 for the first taxable year beginning after December 31, 1998. 6.7 Subd. 6. [SOCIAL SECURITY AND PUBLIC PENSION 6.8 RECIPIENTS.] (a) An individual qualifies for a rebate of $118 6.9 under this subdivision if the individual: 6.10 (1) was a resident of Minnesota for all of calendar year 6.11 1999; 6.12 (2) is not eligible for a rebate under subdivision 9; 6.13 (3) attained the age of 18 on or before December 31, 1999; 6.14 and 6.15 (4)(i) received social security benefits as defined in 6.16 section 86(d)(1) of the Internal Revenue Code of 1986, as 6.17 amended through December 31, 2000, in calendar year 1999; or 6.18 (ii) received federal, state, or local public pension or 6.19 disability benefits in calendar year 1999. 6.20 (b) An individual or married couple who qualifies for a 6.21 rebate under both this subdivision and subdivision 1 is eligible 6.22 for the rebate under whichever subdivision provides a larger 6.23 amount. 6.24 (c) If the Social Security Administration, Railroad 6.25 Retirement Board, or the administrator of a public pension is 6.26 paying benefits to a recipient by electronic funds transfers in 6.27 calendar year 2001, the commissioner may pay the rebate under 6.28 this subdivision through electronic funds transfer to the same 6.29 financial institution and into the same account into which those 6.30 benefits are transferred in calendar year 2001. 6.31 (d) For purposes of this subdivision, "public pension plan 6.32 administrator" means (1) a state and local public pension 6.33 administrator, (2) the federal Civil Service Retirement System, 6.34 (3) the United States Department of Defense for the military 6.35 retirement and survivors benefit programs, and (4) the Federal 6.36 Employees Retirement System. 7.1 (e) A state and local public pension administrator is an 7.2 entity paying benefits under a pension plan enumerated in 7.3 Minnesota Statutes, section 356.20, subdivision 2. Each state 7.4 and local pension administrator shall provide to the 7.5 commissioner of revenue, in a form the commissioner prescribes, 7.6 a list of individuals to whom it pays benefits that meet the 7.7 requirements of paragraph (a), clauses (1) and (3). 7.8 Subd. 7. [DEPENDENTS.] An individual who: 7.9 (1) was allowed to be claimed as a dependent on a 1999 7.10 federal income tax return filed by another person; 7.11 (2) would have otherwise been eligible for a rebate under 7.12 subdivision 1; and 7.13 (3) reported earned income as defined in section 7.14 32(c)(2)(A)(i) of the Internal Revenue Code, 7.15 is eligible for a rebate under this subdivision only. The 7.16 rebate under this subdivision equals 35 percent of the amount 7.17 allowed under the schedule in subdivision 3 based on the 7.18 individual's income. For an individual who was a resident of 7.19 Minnesota for less than the entire year, the sales tax rebate 7.20 equals the rebate calculated under this subdivision multiplied 7.21 by the percentage determined pursuant to Minnesota Statutes, 7.22 section 290.06, subdivision 2c, paragraph (e), as calculated on 7.23 the original 1999 income tax return. 7.24 Subd. 8. [CREDIT RECIPIENTS.] An individual who: 7.25 (1) was a resident of Minnesota for any part of 1999; 7.26 (2) was not eligible for a rebate under subdivision 1, 6, 7.27 or 9; 7.28 (3) was not allowed to be claimed as a dependent on a 1999 7.29 federal income tax return by another person; and 7.30 (4)(i) claimed and was eligible for a refund under 7.31 Minnesota Statutes, chapter 290A, for property taxes paid in 7.32 2000 or rent constituting property taxes paid in 1999 on or 7.33 before November 30, 2001; or 7.34 (ii) filed a 1999 Minnesota income tax return before 7.35 November 30, 2001, in order to 7.36 (A) claim a credit under Minnesota Statutes, section 8.1 290.067, 290.0671, or 290.0674; 8.2 (B) claim a refund of withheld taxes; or 8.3 (C) claim a refund of estimated taxes, 8.4 is eligible for a rebate under this subdivision only. For 8.5 married couples filing joint returns and heads of households, 8.6 the rebate equals the minimum amount in subdivision 2. For 8.7 single filers and married individuals filing separate returns 8.8 and for rebates based on refunds under Minnesota Statutes, 8.9 chapter 290A, the rebate equals the minimum amount in 8.10 subdivision 3. For individuals who qualify for a rebate under 8.11 clause (4)(i), the rebate equals the minimum amount in 8.12 subdivision 3 unless the property tax refund return is a joint 8.13 return and neither of the joint filers qualifies for a rebate 8.14 under any of the other rebate criteria in which case the rebate 8.15 equals the minimum amount in subdivision 2. For an individual 8.16 who was a resident of Minnesota for less than the entire year, 8.17 the sales tax rebate equals the rebate calculated under this 8.18 subdivision multiplied by the percentage determined under 8.19 Minnesota Statutes, section 290.06, subdivision 2c, paragraph 8.20 (e), as calculated on the original 1999 income tax return. 8.21 Notwithstanding the provisions of Minnesota Statutes, section 8.22 289A.60, subdivision 12, an individual who files a property tax 8.23 refund claim for property taxes paid in 2000 or rent 8.24 constituting property taxes paid in 1999 after August 15, 2001, 8.25 and before November 30, 2001, is eligible for a refund under 8.26 Minnesota Statutes, chapter 290A, and a rebate under this 8.27 subdivision. 8.28 Subd. 9. [CLAIMS BASED ON FEDERAL LIABILITIES.] An 8.29 individual who: 8.30 (1) was a resident of Minnesota for any part of 1999; 8.31 (2) filed 1999 Minnesota and federal income tax returns on 8.32 or before November 30, 2001; 8.33 (3) had federal taxable income on the federal return of at 8.34 least $5; and 8.35 (4) does not qualify for a rebate under subdivision 1 or 7, 8.36 is eligible for a rebate under this subdivision only. 9.1 An individual who was allowed to be claimed as a dependent on a 9.2 1999 federal income tax return filed by another person is 9.3 eligible for a rebate under this subdivision only if the 9.4 individual had in 1999 earned income as defined in section 9.5 32(c)(2)(A)(i) of the Internal Revenue Code; the rebate of a 9.6 dependent eligible for a rebate under this subdivision equals 35 9.7 percent of the amount allowed under the schedule in subdivision 9.8 3 based on the individual's income. For all other individuals 9.9 who qualify under this subdivision, the rebate equals the amount 9.10 allowed based on the individual's income under the schedule in 9.11 subdivision 2 for married couples filing joint returns and heads 9.12 of household and the amount allowed based on the individual's 9.13 income under the schedule in subdivision 3 for single filers and 9.14 married individuals filing separately, provided, however, that 9.15 any rebate payable under this subdivision to an individual who 9.16 was a part-year resident of Minnesota in 1998 must be prorated 9.17 according to the formula applicable to part-year residents in 9.18 subdivision 5. 9.19 Subd. 10. [FISCAL YEAR TAXPAYERS.] For a fiscal year 9.20 taxpayer, the dates in subdivisions 1 through 4 are extended one 9.21 month for each month in calendar year 1999 that occurred prior 9.22 to the start of the individual's 1999 fiscal tax year. 9.23 Subd. 11. [PAYMENT DATES; INTEREST.] The commissioner of 9.24 revenue may begin paying sales tax rebates by July 1, 2001. 9.25 Sales tax rebates not paid by January 1, 2002, bear interest at 9.26 the rate specified in Minnesota Statutes, section 270.75. 9.27 Subd. 12. [NO ADJUSTMENTS AFTER PROCESSING.] A sales tax 9.28 rebate may not be adjusted based on changes to a 1999 income tax 9.29 return that are made by order of assessment after the date the 9.30 rebate is processed, or made by the taxpayer that are filed with 9.31 the commissioner of revenue after that date. 9.32 Subd. 13. [JOINT REBATE RULES.] Individuals who filed a 9.33 joint income tax return for 1999 must receive a joint sales tax 9.34 rebate. After the sales tax rebate has been issued, but before 9.35 the check has been cashed, either joint claimant may request a 9.36 separate check for one-half of the joint sales tax rebate. 10.1 Notwithstanding anything in this section to the contrary, if 10.2 prior to payment, the commissioner has been notified that 10.3 persons who filed a joint 1999 income tax return are living at 10.4 separate addresses, as indicated on their 2000 income tax return 10.5 or otherwise, the commissioner may issue separate checks to each 10.6 person. The amount payable to each person is one-half of the 10.7 total joint rebate. 10.8 Subd. 14. [DECEASED INDIVIDUALS.] If a rebate is received 10.9 by the estate of a deceased individual after the probate estate 10.10 has been closed, and if the original rebate check is returned to 10.11 the commissioner with a copy of the decree of descent or final 10.12 account of the estate, social security numbers, and addresses of 10.13 the beneficiaries, the commissioner may issue separate checks in 10.14 proportion to their share in the residuary estate in the names 10.15 of the residuary beneficiaries of the estate. 10.16 Subd. 15. [APPLICATION OF OTHER LAW.] (a) The sales tax 10.17 rebate is a "Minnesota tax law" for purposes of Minnesota 10.18 Statutes, section 270B.01, subdivision 8. 10.19 (b) The sales tax rebate is "an overpayment of any tax 10.20 collected by the commissioner" for purposes of Minnesota 10.21 Statutes, section 270.07, subdivision 5. For purposes of this 10.22 subdivision, a joint sales tax rebate is payable to each spouse 10.23 equally. 10.24 (c) The sales tax rebate is a refund subject to revenue 10.25 recapture under Minnesota Statutes, chapter 270A. The 10.26 commissioner of revenue shall remit the entire refund to the 10.27 claimant agency, which shall, upon the request of the spouse who 10.28 does not owe the debt, refund one-half of the joint sales tax 10.29 rebate to the spouse who does not owe the debt. 10.30 Subd. 16. [LAPSE OF ENTITLEMENT.] If the commissioner of 10.31 revenue cannot locate an individual entitled to a sales tax 10.32 rebate by July 1, 2003, or if an individual to whom a sales tax 10.33 rebate was issued has not cashed the check by July 1, 2003, the 10.34 right to the sales tax rebate lapses and the check must be 10.35 deposited in the general fund. 10.36 Subd. 17. [CLAIMS FOR UNPAID REBATES.] Individuals 11.1 entitled to a sales tax rebate pursuant to subdivision 1, 6, 7, 11.2 8, or 9 but who did not receive one, and individuals who receive 11.3 a sales tax rebate that was not correctly computed, must file a 11.4 claim with the commissioner before July 1, 2002, in a form 11.5 prescribed by the commissioner. These claims must be treated as 11.6 if they are a claim for refund under Minnesota Statutes, section 11.7 289A.50, subdivisions 4 and 7. 11.8 Subd. 18. [APPROPRIATION.] The rebate is a reduction of 11.9 fiscal year 2001 sales tax revenues. The amount necessary to 11.10 make the sales tax rebates and interest provided in this section 11.11 is appropriated from the general fund to the commissioner of 11.12 revenue in fiscal year 2001 and is available until June 30, 2003. 11.13 Subd. 19. [ILLEGALLY CASHED CHECKS.] If a sales tax rebate 11.14 check is cashed by someone other than the payee or payees of the 11.15 check, and the commissioner of revenue determines that the check 11.16 has been forged or improperly endorsed or the commissioner 11.17 determines that a rebate was overstated or erroneously issued, 11.18 the commissioner may issue an order of assessment for the amount 11.19 of the check or the amount the check is overstated against the 11.20 person or persons cashing it. The assessment must be made 11.21 within two years after the check is cashed, but if cashing the 11.22 check constitutes theft under Minnesota Statutes, section 11.23 609.52, or forgery under Minnesota Statutes, section 609.631, 11.24 the assessment can be made at any time. The assessment may be 11.25 appealed administratively and judicially. The commissioner may 11.26 take action to collect the assessment in the same manner as 11.27 provided by Minnesota Statutes, chapter 289A, for any other 11.28 order of the commissioner assessing tax. 11.29 Subd. 20. [AUTHORITY TO CONTRACT WITH VENDOR.] 11.30 Notwithstanding Minnesota Statutes, sections 9.031, 16A.40, 11.31 16B.49, 16B.50, and any other law to the contrary, the 11.32 commissioner of revenue may take whatever actions the 11.33 commissioner deems necessary to pay the rebates required by this 11.34 section, and may, in consultation with the commissioner of 11.35 finance and the state treasurer, contract with a private vendor 11.36 or vendors to process, print, and mail the rebate checks or 12.1 warrants required under this section and receive and disburse 12.2 state funds to pay those checks or warrants. 12.3 Subd. 21. [ELECTRONIC PAYMENT.] The commissioner may pay 12.4 rebates required by this section by electronic funds transfer to 12.5 individuals who requested that their 2000 individual income tax 12.6 refund be paid through electronic funds transfer. The 12.7 commissioner may make the electronic funds transfer payments to 12.8 the same financial institution and into the same account as the 12.9 2000 individual income tax refund. 12.10 Subd. 22. [ADJUSTMENTS.] A sales tax rebate of 12.11 $852,080,000 is authorized for fiscal year 2001. Before 12.12 payment, the commissioner of revenue shall adjust the rebate as 12.13 follows: 12.14 (1) the rebates calculated in subdivisions 2, 3, 4, 6, 7, 12.15 8, and 9 must be proportionately reduced to account for 1999 12.16 income tax returns that are filed on or after January 1, 2001, 12.17 but before June 1, 2001, so that the estimated amount of sales 12.18 tax rebates payable under subdivisions 2, 3, 4, 6, 7, 8, and 9 12.19 on the date the rebate is processed does not exceed the total 12.20 amount available for the rebate; and 12.21 (2) the commissioner of finance shall certify by July 15, 12.22 2001, the preliminary fiscal 2001 general fund net nondedicated 12.23 revenues. The certification shall exclude the impact of any 12.24 legislation enacted during the 2001 regular and special 12.25 sessions. If certified net nondedicated revenues are less than 12.26 the amount forecast in February 2001, the commissioner of 12.27 revenue shall proportionally decrease all rebates under this 12.28 section to rebate the entire amount of the certified net 12.29 nondedicated revenues. The adjustments under this subdivision 12.30 are not a rule subject to Minnesota Statutes, chapter 14. 12.31 Sec. 3. [APPROPRIATIONS.] 12.32 (a) $1,731,600 is appropriated in fiscal year 2001 from the 12.33 general fund to the commissioner of revenue to administer the 12.34 sales tax rebates in section 2. Any unencumbered balance 12.35 remaining on June 30, 2001, does not cancel but is available for 12.36 expenditure by the commissioner of revenue until June 30, 2002. 13.1 Notwithstanding Minnesota Statutes, section 16A.285, the 13.2 commissioner of revenue may not use this appropriation for any 13.3 purpose other than administering the sales tax rebates. This is 13.4 a one-time appropriation and may not be added to the agency's 13.5 budget base. 13.6 (b) $401,000 is appropriated in fiscal year 2001 from the 13.7 general fund to the state treasurer to pay the cost of clearing 13.8 sales tax rebate checks through commercial banks. Any 13.9 unencumbered balance remaining on June 30, 2001, does not cancel 13.10 but is available for expenditure by the state treasurer until 13.11 June 30, 2002. Notwithstanding Minnesota Statutes, section 13.12 16A.285, the state treasurer may not use this appropriation for 13.13 any purpose other than paying the cost of clearing rebate checks. 13.14 [EFFECTIVE DATE.] This section is effective the day 13.15 following final enactment. 13.16 ARTICLE 3 13.17 EARLY CHILDHOOD THROUGH GRADE 12 EDUCATION 13.18 Section 1. [EARLY CHILDHOOD THROUGH GRADE 12 EDUCATION 13.19 APPROPRIATIONS.] 13.20 The sums shown in the columns marked "APPROPRIATIONS" are 13.21 appropriated from the general fund, or another named fund, to 13.22 the commissioner of children, families, and learning, or another 13.23 named official, for the purposes specified in the following 13.24 sections of this article, to be available for the fiscal years 13.25 indicated for each purpose. The figures "2002" and "2003" where 13.26 used in this article, mean that the appropriation or 13.27 appropriations listed under them are available for the fiscal 13.28 year ending June 30, 2002, or June 30, 2003, respectively. 13.29 SUMMARY BY FUND 13.30 BIENNIAL 13.31 2002 2003 TOTAL 13.32 General $4,570,103,000 $4,695,287,000 $9,265,390,000 13.33 Special Revenue 2,737,000 2,636,000 5,373,000 13.34 Federal TANF 23,973,000 23,687,000 47,660,000 13.35 TOTAL $4,596,813,000 $4,721,610,000 $9,318,423,000 13.36 APPROPRIATIONS 13.37 Available for the Year 14.1 Ending June 30 14.2 2002 2003 14.3 Sec. 2. EARLY CHILDHOOD EDUCATION 14.4 Subdivision 1. Total 14.5 Appropriation $212,591,000 $208,324,000 14.6 Summary by Fund 14.7 General 189,177,000 185,347,000 14.8 Special Revenue 2,441,000 2,340,000 14.9 Federal TANF 20,973,000 20,637,000 14.10 The amounts that may be spent from this 14.11 appropriation for each program are 14.12 specified in the following subdivisions. 14.13 Subd. 2. School Readiness 14.14 Program Revenue 14.15 2002 2003 14.16 10,395,000 10,395,000 14.17 For school readiness programs according 14.18 to Minnesota Statutes, sections 124D.15 14.19 and 124D.16. 14.20 The 2002 appropriation includes 14.21 $1,039,000 for 2001 and $9,356,000 for 14.22 2002. 14.23 The 2003 appropriation includes 14.24 $1,040,000 for 2002 and $9,355,000 for 14.25 2003. 14.26 Subd. 3. Early Childhood 14.27 Family Education Aid 14.28 20,758,000 20,663,000 14.29 For early childhood family education 14.30 aid according to Minnesota Statutes, 14.31 section 124D.135. 14.32 The 2002 appropriation includes 14.33 $2,036,000 for 2001 and $18,722,000 for 14.34 2002. 14.35 The 2003 appropriation includes 14.36 $2,080,000 for 2002 and $18,583,000 for 14.37 2003. 14.38 Subd. 4. Health and Developmental 14.39 Screening Aid 14.40 2,661,000 2,661,000 14.41 For health and developmental screening 14.42 aid according to Minnesota Statutes, 14.43 sections 121A.17 and 121A.19. 14.44 The 2002 appropriation includes 14.45 $266,000 for 2001 and $2,395,000 for 14.46 2002. 14.47 The 2003 appropriation includes 14.48 $266,000 for 2002 and $2,395,000 for 15.1 2003. 15.2 Subd. 5. Way to Grow 15.3 475,000 475,000 15.4 For grants for existing way to grow 15.5 programs according to Minnesota 15.6 Statutes, section 124D.17. 15.7 Any balance in the first year does not 15.8 cancel but is available in the second 15.9 year. 15.10 Subd. 6. Head Start Program 15.11 18,375,000 18,375,000 15.12 For Head Start programs according to 15.13 Minnesota Statutes, section 119A.52. 15.14 $1,000,000 each year must be used for 15.15 grants to local Head Start agencies for 15.16 full-year programming for children ages 15.17 0 to 3. 15.18 Any balance in the first year does not 15.19 cancel but is available in the second 15.20 year. 15.21 Subd. 7. School Age Child Care 15.22 221,000 133,000 15.23 For extended day aid according to 15.24 Minnesota Statutes, section 124D.22. 15.25 The 2002 appropriation includes $30,000 15.26 for 2001 and $191,000 for 2002. 15.27 The 2003 appropriation includes $21,000 15.28 for 2002 and $112,000 for 2003. 15.29 Subd. 8. Basic Sliding Fee 15.30 Child Care 15.31 51,999,000 51,999,000 15.32 For child care assistance according to 15.33 Minnesota Statutes, section 119B.03. 15.34 Subd. 9. MFIP Child Care 15.35 82,253,000 78,606,000 15.36 For child care assistance according to 15.37 Minnesota Statutes, section 119B.05. 15.38 Any balance in the first year does not 15.39 cancel but is available in the second 15.40 year. 15.41 Subd. 10. Child Care Integrity 15.42 175,000 175,000 15.43 For the administrative costs of program 15.44 integrity and fraud prevention for 15.45 child care assistance under Minnesota 15.46 Statutes, chapter 119B. 16.1 Any balance in the first year does not 16.2 cancel but is available in the second 16.3 year. 16.4 Subd. 11. Child Care Services 16.5 Grants 16.6 1,865,000 1,865,000 16.7 For child care services grants 16.8 according to Minnesota Statutes, 16.9 section 119B.21. 16.10 Any balance in the first year does not 16.11 cancel but is available in the second 16.12 year. 16.13 Subd. 12. Child Support Collections 16.14 2,441,000 2,340,000 16.15 Appropriations in this subdivision are 16.16 from child support collection payments 16.17 in the special revenue fund pursuant to 16.18 Minnesota Statutes, section 119B.074. 16.19 The sums indicated are appropriated to 16.20 the department of children, families, 16.21 and learning for the fiscal years 16.22 designated. 16.23 Subd. 13. TANF Appropriations 16.24 for Basic Sliding Fee Child Care 16.25 15,958,000 15,978,000 16.26 These amounts are transferred from the 16.27 federal TANF fund to the child care and 16.28 development fund and appropriated to 16.29 the commissioner of children, families, 16.30 and learning for the fiscal years 16.31 designated. The commissioner shall 16.32 ensure that all transferred funds are 16.33 expended in accordance with the child 16.34 care and development fund regulations 16.35 and that the maximum allowable 16.36 transferred funds are used for the 16.37 programs in this subdivision. 16.38 Any balance the first year does not 16.39 cancel but is available in the second 16.40 year. 16.41 Subd. 14. TANF Appropriations 16.42 for MFIP Child Care 16.43 5,015,000 4,659,000 16.44 These amounts are transferred from the 16.45 federal TANF fund to the child care and 16.46 development fund and appropriated to 16.47 the commissioner of children, families, 16.48 and learning for the fiscal years 16.49 designated. The commissioner shall 16.50 ensure that all transferred funds are 16.51 expended in accordance with the child 16.52 care and development fund regulations 16.53 and that the maximum allowable 16.54 transferred funds are used for the 16.55 programs in this subdivision. 16.56 Any balance in the first year does not 17.1 cancel but is available in the second 17.2 year. 17.3 Sec. 3. PREVENTION 17.4 Subdivision 1. Total 17.5 Appropriation 25,742,000 24,030,000 17.6 Summary by Fund 17.7 General 25,446,000 23,734,000 17.8 Special Revenue 296,000 296,000 17.9 The amounts that may be spent from this 17.10 appropriation for each program are 17.11 specified in the following subdivisions. 17.12 Subd. 2. Family Services Collaboratives 17.13 1,477,000 863,000 17.14 For family services collaboratives 17.15 according to Laws 1995, First Special 17.16 Session chapter 3, article 4, section 17.17 29, subdivision 10. 17.18 No new family services collaboratives 17.19 shall be funded with this appropriation 17.20 after June 30, 1999. 17.21 Any balance in the first year does not 17.22 cancel but is available in the second 17.23 year. 17.24 Subd. 3. Community Education Aid 17.25 14,209,000 13,111,000 17.26 For community education aid according 17.27 to Minnesota Statutes, section 124D.20. 17.28 The 2002 appropriation includes 17.29 $1,528,000 for 2001 and $12,681,000 for 17.30 2002. 17.31 The 2003 appropriation includes 17.32 $1,409,000 for 2002 and $11,702,000 for 17.33 2003. 17.34 Any balance in the first year does not 17.35 cancel but is available in the second 17.36 year. 17.37 Subd. 4. Adults with Disabilities 17.38 Program Aid 17.39 710,000 710,000 17.40 For adults with disabilities programs 17.41 according to Minnesota Statutes, 17.42 section 124D.56. 17.43 Any balance in the first year does not 17.44 cancel but is available in the second 17.45 year. 17.46 Subd. 5. Hearing-Impaired Adults 17.47 70,000 70,000 18.1 For programs for hearing-impaired 18.2 adults according to Minnesota Statutes, 18.3 section 124D.57. 18.4 Any balance in the first year does not 18.5 cancel but is available in the second 18.6 year. 18.7 Subd. 6. Violence Prevention 18.8 Education Grants 18.9 1,450,000 1,450,000 18.10 For violence prevention education 18.11 grants according to Minnesota Statutes, 18.12 section 120B.23. 18.13 Any balance in the first year does not 18.14 cancel but is available in the second 18.15 year. 18.16 Subd. 7. Abused Children 18.17 945,000 945,000 18.18 For abused children programs according 18.19 to Minnesota Statutes, section 119A.21. 18.20 Any balance in the first year does not 18.21 cancel but is available in the second 18.22 year. 18.23 Subd. 8. Children's Trust Fund 18.24 225,000 225,000 18.25 For the children's trust fund according 18.26 to Minnesota Statutes, sections 119A.12 18.27 and 119A.13. 18.28 Any balance in the first year does not 18.29 cancel but is available in the second 18.30 year. 18.31 Subd. 9. Family Visitation Centers 18.32 296,000 296,000 18.33 (a) For family visitation centers 18.34 according to Minnesota Statutes, 18.35 section 119A.37. 18.36 Any balance in the first year does not 18.37 cancel but is available in the second 18.38 year. 18.39 (b) Of this amount, $96,000 in fiscal 18.40 year 2002 and $96,000 in fiscal year 18.41 2003 are appropriated from the special 18.42 revenue fund under Minnesota Statutes, 18.43 section 517.08, subdivision 1c, for 18.44 family visitation centers. Any balance 18.45 in the first year does not cancel but 18.46 is available in the second year. 18.47 Subd. 10. After School Enrichment Grants 18.48 5,510,000 5,510,000 18.49 For after school enrichment grants 18.50 according to Minnesota Statutes, 19.1 section 124D.221. 19.2 Any balance in the first year does not 19.3 cancel but is available in the second 19.4 year. 19.5 Subd. 11. Adolescent Parenting Grants 19.6 400,000 400,000 19.7 For grants to reduce long-term welfare 19.8 dependency and promote self-sufficiency 19.9 among adolescent parents under Laws 19.10 1997, chapter 162, article 2, section 19.11 28. 19.12 Any balance in the first year does not 19.13 cancel but is available in the second 19.14 year. 19.15 Subd. 12. Male Responsibility and 19.16 Fathering Grants 19.17 250,000 250,000 19.18 For grants according to Minnesota 19.19 Statutes, section 124D.33. 19.20 Any balance in the first year does not 19.21 cancel but is available in the second 19.22 year. 19.23 Subd. 13. Chemical Abuse Prevention Grants 19.24 200,000 200,000 19.25 For grants with funds received under 19.26 Minnesota Statutes, section 171.29, 19.27 subdivision 2, paragraph (b), clause 19.28 (4). 19.29 These appropriations are from the 19.30 alcohol-impaired driver account of the 19.31 special revenue fund for chemical abuse 19.32 prevention grants. 19.33 Sec. 4. SELF-SUFFICIENCY AND LIFELONG 19.34 LEARNING 19.35 Subdivision 1. Total 19.36 Appropriation 51,375,000 53,667,000 19.37 Summary by Fund 19.38 General 48,375,000 50,617,000 19.39 Federal TANF 3,000,000 3,050,000 19.40 The amounts that may be spent from this 19.41 appropriation for each program are 19.42 specified in the following subdivisions. 19.43 Subd. 2. Minnesota Economic Opportunity 19.44 Grants 19.45 8,514,000 8,514,000 19.46 For Minnesota economic opportunity 19.47 grants. 19.48 Any balance in the first year does not 20.1 cancel but is available in the second 20.2 year. 20.3 Subd. 3. Adult Basic Education Aid 20.4 32,150 000 34,731,000 20.5 For adult basic education aid according 20.6 to Minnesota Statutes, section 124D.52, 20.7 in fiscal year 2002 and Minnesota 20.8 Statutes, section 124D.531, in fiscal 20.9 year 2003. 20.10 The 2002 appropriation includes 20.11 $3,019,000 for 2001 and $29,131,000 for 20.12 2002. 20.13 The 2003 appropriation includes 20.14 $3,237,000 for 2002 and $31,494,000 for 20.15 2003. 20.16 Subd. 4. Adult Graduation Aid 20.17 3,195,000 3,356,000 20.18 For adult graduation aid according to 20.19 Minnesota Statutes, section 124D.54. 20.20 The 2002 appropriation includes 20.21 $305,000 for 2001 and $2,890,000 for 20.22 2002. 20.23 The 2003 appropriation includes 20.24 $321,000 for 2002 and $3,035,000 for 20.25 2003. 20.26 Subd. 5. GED Tests 20.27 125,000 125,000 20.28 For payment of 60 percent of the costs 20.29 of GED tests according to Laws 1993, 20.30 chapter 224, article 4, section 44, 20.31 subdivision 10. 20.32 Any balance in the first year does not 20.33 cancel but is available in the second 20.34 year. 20.35 Subd. 6. Food Bank Program 20.36 1,278,000 1,278,000 20.37 For foodshelf programs according to 20.38 Minnesota Statutes, section 119A.44. 20.39 Any balance in the first year does not 20.40 cancel but is available in the second 20.41 year. 20.42 Subd. 7. Family Assets for 20.43 Independence 20.44 500,000 -0- 20.45 For family assets for independence. 20.46 Any balance in the first year does not 20.47 cancel but is available in the second 20.48 year. 21.1 Subd. 8. Lead Abatement 21.2 100,000 100,000 21.3 For lead abatement according to 21.4 Minnesota Statutes, section 119A.46. 21.5 Subd. 9. Adult Basic Education 21.6 Administration 21.7 175,000 175,000 21.8 Subd. 10. Transitional Housing Programs 21.9 1,988,000 1,988,000 21.10 For transitional housing programs 21.11 according to Minnesota Statutes, 21.12 section 119A.43. 21.13 Any balance in the first year does not 21.14 cancel but is available in the second 21.15 year. 21.16 Subd. 11. Emergency Services 21.17 350,000 350,000 21.18 For emergency services according to 21.19 Minnesota Statutes, section 119A.43. 21.20 Any balance in the first year does not 21.21 cancel but is available in the second 21.22 year. 21.23 Subd. 12. TANF Appropriations 21.24 This appropriation is from the federal 21.25 Temporary Assistance for Needy Families 21.26 (TANF) block grant for the fiscal years 21.27 designated. These amounts are 21.28 available for expenditure until June 21.29 30, 2003. Appropriations in this 21.30 subdivision are one-time appropriations 21.31 and are not added to the base for 21.32 fiscal years 2004 and 2005. 21.33 (a) Intensive ESL 21.34 1,100,000 1,100,000 21.35 For intensive English as a second 21.36 language (ESL) for eligible MFIP 21.37 participants under Laws 2000, chapter 21.38 489, article 1, section 39. 21.39 (b) Transitional Housing 21.40 1,900,000 1,950,000 21.41 For reimbursement grants to 21.42 transitional housing programs under 21.43 Minnesota Statutes, section 119A.43. 21.44 These appropriations must be used for 21.45 up to four months of transitional 21.46 housing for families with incomes below 21.47 200 percent of the federal poverty 21.48 guidelines. Payment must be made to 21.49 programs on a reimbursement basis. 22.1 Sec. 5. GENERAL EDUCATION 22.2 Subdivision 1. Total 22.3 Appropriation 3,417,160,000 3,528,995,000 22.4 The amounts that may be spent from this 22.5 appropriation for each program are 22.6 specified in the following subdivisions. 22.7 Subd. 2. General and Supplemental 22.8 Education Aid 22.9 3,374,615,000 3,481,386,000 22.10 The 2002 appropriation includes 22.11 $318,932,000 for 2001 and 22.12 $3,055,683,000 for 2002. 22.13 The 2003 appropriation includes 22.14 $339,520,000 for 2002 and 22.15 $3,141,866,000 for 2003. 22.16 Subd. 3. Transportation Aid for 22.17 Enrollment Options 22.18 70,000 80,000 22.19 For transportation of pupils attending 22.20 post-secondary institutions according 22.21 to Minnesota Statutes, section 124D.09, 22.22 or for transportation of pupils 22.23 attending nonresident districts 22.24 according to Minnesota Statutes, 22.25 section 124D.03. 22.26 Any balance in the first year does not 22.27 cancel but is available in the second 22.28 year. 22.29 Subd. 4. Richfield Airport Impact Aid 22.30 -0- 1,115,000 22.31 For Richfield airport impact aid 22.32 according to Laws 2000, chapter 489, 22.33 article 2, section 36. 22.34 Subd. 5. Abatement Aid 22.35 7,098,000 7,692,000 22.36 For abatement aid according to 22.37 Minnesota Statutes, section 127A.49. 22.38 Subd. 6. Nonpublic Pupil Aid 22.39 14,146,000 15,187,000 22.40 For nonpublic pupil transportation aid 22.41 under Minnesota Statutes, section 22.42 123B.92, subdivision 9. 22.43 The 2002 appropriation includes 22.44 $1,280,000 for 2001 and $12,866,000 for 22.45 2002. 22.46 The 2003 appropriation includes 22.47 $1,372,000 for 2002 and $13,815,000 for 22.48 2003. 22.49 Subd. 7. Nonpublic Pupil Transportation 23.1 20,556,000 22,866,000 23.2 For nonpublic pupil transportation aid 23.3 under Minnesota Statutes, section 23.4 123B.92, subdivision 9. 23.5 The 2002 appropriation includes 23.6 $2,066,000 for 2001 and $18,490,000 for 23.7 2002. 23.8 The 2003 appropriation includes 23.9 $2,146,000 for 2002 and $20,720,000 for 23.10 2003. 23.11 Subd. 8. Consolidation Transition Aid 23.12 675,000 669,000 23.13 For districts consolidating under 23.14 Minnesota Statutes, section 123A.485. 23.15 The 2002 appropriation includes $44,000 23.16 for 2001 and $631,000 for 2002. 23.17 The 2003 appropriation includes $70,000 23.18 for 2002 and $599,000 for 2003. 23.19 Any balance in the first year does not 23.20 cancel but is available in the second 23.21 year. 23.22 Sec. 6. EDUCATION EXCELLENCE 23.23 Subdivision 1. Total 23.24 Appropriation 115,889,000 126,148,000 23.25 The amounts that may be spent from this 23.26 appropriation for each program are 23.27 specified in the following subdivisions. 23.28 Subd. 2. Statewide Testing and 23.29 Graduation Standards Support 23.30 6,500,000 6,500,000 23.31 For supporting implementation of the 23.32 graduation standards. 23.33 Any balance in the first year does not 23.34 cancel but is available in the second 23.35 year. 23.36 Subd. 3. Advanced Placement and 23.37 International Baccalaureate Programs 23.38 1,875,000 1,875,000 23.39 For the state advanced placement and 23.40 international baccalaureate programs. 23.41 Notwithstanding Minnesota Statutes, 23.42 section 120B.13, subdivisions 1 and 2, 23.43 $375,000 each year is for teachers to 23.44 attend subject matter summer training 23.45 programs and follow-up support 23.46 workshops approved by the advanced 23.47 placement or international 23.48 baccalaureate programs. The amount of 23.49 the subsidy for each teacher attending 23.50 an advanced placement or international 23.51 baccalaureate summer training program 24.1 or workshop shall be the same. The 24.2 commissioner shall determine the 24.3 payment process and the amount of the 24.4 subsidy. 24.5 Notwithstanding Minnesota Statutes, 24.6 section 120B.13, subdivision 3, in each 24.7 year to the extent of available 24.8 appropriations, the commissioner shall 24.9 pay all examination fees for all 24.10 students sitting for an advanced 24.11 placement examination, international 24.12 baccalaureate examination, or both. If 24.13 this amount is not adequate, the 24.14 commissioner may pay less than the full 24.15 examination fee. 24.16 Any balance in the first year does not 24.17 cancel but is available in the second 24.18 year. 24.19 Subd. 4. Charter School Building 24.20 Lease Aid 24.21 16,554,000 25,176,000 24.22 For building lease aid according to 24.23 Minnesota Statutes, section 124D.11, 24.24 subdivision 4. 24.25 The 2002 appropriation includes 24.26 $1,114,000 for 2001 and $15,440,000 for 24.27 2002. 24.28 The 2003 appropriation includes 24.29 $1,716,000 for 2002 and $23,460,000 for 24.30 2003. 24.31 Subd. 5. Charter School Startup Grants 24.32 2,738,000 3,143,000 24.33 For charter school startup cost aid 24.34 under Minnesota Statutes, section 24.35 124D.11. 24.36 The 2002 appropriation includes 24.37 $273,000 for 2001 and $2,465,000 for 24.38 2002. 24.39 The 2003 appropriation includes 24.40 $274,000 for 2002 and $2,869,000 for 24.41 2003. 24.42 Subd. 6. Charter School Integration Aid 24.43 50,000 50,000 24.44 For grants to charter schools to 24.45 promote integration and desegregation 24.46 according to Minnesota Statutes, 24.47 section 124D.11, subdivision 6, 24.48 paragraph (e). 24.49 Any balance in the first year does not 24.50 cancel but is available in the second 24.51 year. 24.52 Subd. 7. Best Practices Seminars 24.53 5,000,000 5,000,000 25.1 For best practices graduation rule 25.2 seminars and other professional 25.3 development capacity building 25.4 activities that assure proficiency in 25.5 teaching and implementation of 25.6 graduation rule standards. 25.7 Of this amount, for fiscal year 2002, 25.8 $1,000,000 is for arts via the Internet 25.9 collaborative project between the 25.10 Walker Art Center and the Minneapolis 25.11 Institute of Arts. 25.12 Subd. 8. Integration Aid 25.13 59,795,000 59,946,000 25.14 The 2002 appropriation includes 25.15 $5,729,000 for 2001 and $54,066,000 for 25.16 2002. 25.17 The 2003 appropriation includes 25.18 $6,007,000 for 2002 and $53,939,000 for 25.19 2003. 25.20 Subd. 9. Integration Programs 25.21 1,000,000 1,000,000 25.22 For minority fellowship grants 25.23 according to Laws 1994, chapter 647, 25.24 article 8, section 29; minority teacher 25.25 incentives according to Minnesota 25.26 Statutes, section 122A.65; teachers of 25.27 color grants according to Minnesota 25.28 Statutes, section 122A.64; and cultural 25.29 exchange grants according to Minnesota 25.30 Statutes, section 124D.89. 25.31 Any balance in the first year does not 25.32 cancel but is available in the second 25.33 year. 25.34 In awarding teacher of color grants, 25.35 priority must be given to districts 25.36 that have students who are currently in 25.37 the process of completing their 25.38 academic program. 25.39 Subd. 10. Magnet School Grants 25.40 1,750,000 1,050,000 25.41 For magnet school and program grants 25.42 under Minnesota Statutes, section 25.43 124D.871. 25.44 Subd. 11. Magnet School Startup Aid 25.45 482,000 326,000 25.46 For magnet school startup aid under 25.47 Minnesota Statutes, section 124D.88. 25.48 The 2002 appropriation includes $25,000 25.49 for 2001 and $457,000 for 2002. 25.50 The 2003 appropriation includes $51,000 25.51 for 2002 and $275,000 for 2003. 25.52 Subd. 12. Interdistrict Desegregation 26.1 or Integration Transportation Programs 26.2 -0- 2,932,000 26.3 For interdistrict desegregation or 26.4 integration transportation grants under 26.5 Minnesota Statutes, section 124D.87. 26.6 Subd. 13. American Indian Language 26.7 and Culture Programs 26.8 730,000 730,000 26.9 For grants to American Indian language 26.10 and culture education programs 26.11 according to Minnesota Statutes, 26.12 section 124D.81. 26.13 The 2002 appropriation includes $73,000 26.14 for 2001 and $657,000 for 2002. 26.15 The 2003 appropriation includes $73,000 26.16 for 2002 and $657,000 for 2003. 26.17 Subd. 14. American Indian Education 26.18 175,000 175,000 26.19 For certain American Indian education 26.20 programs in school districts. 26.21 The 2002 appropriation includes $17,000 26.22 for 2001 and $158,000 for 2002. 26.23 The 2003 appropriation includes $17,000 26.24 for 2002 and $158,000 for 2003. 26.25 Subd. 15. American Indian 26.26 Post-Secondary Preparation 26.27 982,000 982,000 26.28 For American Indian post-secondary 26.29 preparation grants according to 26.30 Minnesota Statutes, section 124D.85. 26.31 Any balance in the first year does not 26.32 cancel but is available in the second 26.33 year. 26.34 Subd. 16. American Indian Scholarships 26.35 1,875,000 1,875,000 26.36 For American Indian scholarships 26.37 according to Minnesota Statutes, 26.38 section 124D.84. 26.39 Any balance in the first year does not 26.40 cancel but is available in the second 26.41 year. 26.42 Subd. 17. Indian Teacher Preparation Grants 26.43 190,000 190,000 26.44 (a) For joint grants to assist Indian 26.45 people to become teachers. 26.46 (b) Up to $70,000 each year is for a 26.47 joint grant to the University of 27.1 Minnesota at Duluth and the Duluth 27.2 school district. 27.3 (c) Up to $40,000 each year is for a 27.4 joint grant to each of the following: 27.5 (1) Bemidji state university and the 27.6 Red Lake school district; 27.7 (2) Moorhead state university and a 27.8 school district located within the 27.9 White Earth reservation; and 27.10 (3) Augsburg college, independent 27.11 school district No. 625, St. Paul, and 27.12 the Minneapolis school district. 27.13 (d) Money not used for students at one 27.14 location may be transferred for use at 27.15 another location. 27.16 (e) Any balance in the first year does 27.17 not cancel but is available in the 27.18 second year. 27.19 Subd. 18. Tribal Contract Schools 27.20 2,520,000 2,767,000 27.21 For tribal contract school aid 27.22 according to Minnesota Statutes, 27.23 section 124D.83. 27.24 The 2002 appropriation includes 27.25 $192,000 for 2001 and $2,328,000 for 27.26 2002. 27.27 The 2003 appropriation includes 27.28 $258,000 for 2002 and $2,509,000 for 27.29 2003. 27.30 Subd. 19. Early Childhood Programs 27.31 at Tribal Schools 27.32 68,000 68,000 27.33 Subd. 20. First Grade Preparedness 27.34 7,000,000 7,000,000 27.35 For first grade preparedness grants 27.36 according to Minnesota Statutes, 27.37 section 124D.081. 27.38 Subd. 21. Secondary Vocational Education Aid 27.39 1,242,000 -0- 27.40 For secondary vocational education aid 27.41 according to Minnesota Statutes, 27.42 section 124D.453. 27.43 The 2002 appropriation includes 27.44 $1,242,000 for 2001 and $0 for 2002. 27.45 Subd. 22. Youthworks Program 27.46 1,788,000 1,788,000 27.47 For funding youthworks programs 27.48 according to Minnesota Statutes, 28.1 sections 124D.37 to 124D.45. 28.2 A grantee organization may provide 28.3 health and child care coverage to the 28.4 dependents of each participant enrolled 28.5 in a full-time youth works program to 28.6 the extent such coverage is not 28.7 otherwise available. 28.8 Any balance in the first year does not 28.9 cancel but is available in the second 28.10 year. 28.11 Subd. 23. Education and Employment 28.12 Transitions Program 28.13 2,225,000 2,225,000 28.14 For education and employment 28.15 transitions programming under Minnesota 28.16 Statutes, section 124D.46. 28.17 $750,000 in fiscal year 2002 and 28.18 $750,000 in fiscal year 2003 is for 28.19 youth apprenticeship grants. 28.20 $125,000 each year is to conduct a high 28.21 school follow-up survey to include 28.22 first, third, and sixth year graduates 28.23 of Minnesota schools. 28.24 Any balance in the first year does not 28.25 cancel but is available in the second 28.26 year. 28.27 Subd. 24. Learn and Earn 28.28 Graduation Achievement Program 28.29 725,000 725,000 28.30 For the learn and earn graduation 28.31 achievement program according to 28.32 Minnesota Statutes, section 124D.32. 28.33 Any balance in the first year does not 28.34 cancel but is available in the second 28.35 year. 28.36 Subd. 25. Minnesota Student Organization 28.37 Foundations 28.38 625,000 625,000 28.39 For the Minnesota student organization 28.40 foundation under Minnesota Statutes, 28.41 section 124D.34. 28.42 Any balance in the first year does not 28.43 cancel but is available in the second 28.44 year. 28.45 Sec. 7. SPECIAL EDUCATION 28.46 Subdivision 1. Total 28.47 Appropriation 622,054,000 648,339,000 28.48 The amounts that may be spent from this 28.49 appropriation for each program are 28.50 specified in the following subdivisions. 28.51 Subd. 2. Special Education Aid 29.1 507,448,000 531,481,000 29.2 For special education aid according to 29.3 Minnesota Statutes, section 125A.75. 29.4 The 2002 appropriation includes 29.5 $47,400,000 for 2001 and $460,048,000 29.6 for 2002. 29.7 The 2003 appropriation includes 29.8 $51,116,000 for 2002 and $480,365,000 29.9 for 2003. 29.10 Subd. 3. Aid for Children with 29.11 a Disability 29.12 1,877,000 2,033,000 29.13 For aid according to Minnesota 29.14 Statutes, section 125A.75, subdivision 29.15 3, for children with a disability 29.16 placed in residential facilities within 29.17 the district boundaries for whom no 29.18 district of residence can be determined. 29.19 If the appropriation for either year is 29.20 insufficient, the appropriation for the 29.21 other year is available. Any balance 29.22 in the first year does not cancel but 29.23 is available in the second year. 29.24 Subd. 4. Travel for Home-Based Services 29.25 135,000 138,000 29.26 For aid for teacher travel for 29.27 home-based services according to 29.28 Minnesota Statutes, section 125A.75, 29.29 subdivision 1. 29.30 The 2002 appropriation includes $13,000 29.31 for 2001 and $122,000 for 2002. 29.32 The 2003 appropriation includes $13,000 29.33 for 2002 and $125,000 for 2003. 29.34 Subd. 5. Special Education Excess 29.35 Cost Aid 29.36 102,665,000 104,773,000 29.37 The 2002 appropriation includes 29.38 $9,889,000 for 2001 and $92,776,000 for 29.39 2002. 29.40 The 2003 appropriation includes 29.41 $10,308,000 for 2002 and $94,465,000 29.42 for 2003. 29.43 Subd. 6. Litigation Costs 29.44 375,000 375,000 29.45 For paying the costs a district incurs 29.46 under Minnesota Statutes, section 29.47 125A.75, subdivision 8. 29.48 Subd. 7. Transition Programs; Students 29.49 with Disabilities 29.50 8,954,000 8,939,000 30.1 For aid for transition programs for 30.2 pupils with disabilities according to 30.3 Minnesota Statutes, section 124D.454. 30.4 The 2002 appropriation includes 30.5 $896,000 for 2001 and $8,058,000 for 30.6 2002. 30.7 The 2003 appropriation includes 30.8 $895,000 for 2002 and $8,044,000 for 30.9 2003. 30.10 Subd. 8. Court-Placed Special 30.11 Education Revenue 30.12 350,000 350,000 30.13 For reimbursing serving school 30.14 districts for unreimbursed eligible 30.15 expenditures attributable to children 30.16 placed in the serving school district 30.17 by court action under Minnesota 30.18 Statutes, section 125A.79, subdivision 30.19 4. 30.20 Subd. 9. Out-of-State Tuition 30.21 Special Education 30.22 250,000 250,000 30.23 For special education out-of-state 30.24 tuition according to Minnesota 30.25 Statutes, section 125A.79, subdivision 30.26 8. 30.27 Sec. 8. FACILITIES AND TECHNOLOGY 30.28 Subdivision 1. Total 30.29 Appropriation 80,728,000 59,625,000 30.30 The amounts that may be spent from this 30.31 appropriation for each program are 30.32 specified in the following subdivisions. 30.33 Subd. 2. Health and Safety Aid 30.34 14,980,000 14,550,000 30.35 For health and safety aid according to 30.36 Minnesota Statutes, section 123B.57, 30.37 subdivision 5. 30.38 The 2002 appropriation includes 30.39 $1,480,000 for 2001 and $13,500,000 for 30.40 2002. 30.41 The 2003 appropriation includes 30.42 $1,500,000 for 2002 and $13,050,000 for 30.43 2003. 30.44 Subd. 3. Debt Service Aid 30.45 25,989,000 23,716,000 30.46 For debt service aid according to 30.47 Minnesota Statutes, section 123B.53, 30.48 subdivision 6. 30.49 The 2002 appropriation includes 30.50 $2,890,000 for 2001 and $23,099,000 for 30.51 2002. 31.1 The 2003 appropriation includes 31.2 $2,562,000 for 2002 and $21,154,000 for 31.3 2003. 31.4 Subd. 4. Interactive Television 31.5 (ITV) Aid 31.6 1,418,000 129,000 31.7 For interactive television (ITV) aid 31.8 under Minnesota Statutes, section 31.9 126C.40, subdivision 4. 31.10 The 2002 appropriation includes 31.11 $260,000 for 2001 and $1,158,000 for 31.12 2002. 31.13 The 2003 appropriation includes 31.14 $129,000 for 2002 and $0 for 2003. 31.15 Subd. 5. Alternative Facilities 31.16 Bonding Aid 31.17 19,279,000 19,287,000 31.18 For alternative facilities bonding aid, 31.19 according to Minnesota Statutes, 31.20 section 123B.59, subdivision 1. 31.21 The 2002 appropriation includes 31.22 $1,921,000 for 2001 and $17,358,000 for 31.23 2002. 31.24 The 2003 appropriation includes 31.25 $1,929,000 for 2002 and $17,358,000 for 31.26 2003. 31.27 Subd. 6. Telecommunication Access 31.28 Revenue 31.29 17,968,000 1,852,000 31.30 For telecommunication access cost 31.31 revenue under Minnesota Statutes, 31.32 section 125B.25. 31.33 The 2002 appropriation includes 31.34 $1,300,000 for 2001 and $16,668,000 for 31.35 2002. 31.36 The 2003 appropriation includes 31.37 $1,852,000 for 2002 and $0 for 2003. 31.38 If the appropriation amount is 31.39 insufficient, the commissioner shall 31.40 reduce the reimbursement rate in 31.41 Minnesota Statutes, section 125B.25, 31.42 subdivisions 5 and 6, and the revenue 31.43 for the 2001-2002 school year shall be 31.44 prorated. The reimbursement rate shall 31.45 not exceed 100 percent. 31.46 Subd. 7. Declining Pupil Aid - St. Peter 31.47 173,000 91,000 31.48 For a grant to independent school 31.49 district No. 508, St. Peter, to 31.50 ameliorate general fund operating 31.51 losses associated with the March 1998 31.52 tornado. 32.1 Subd. 8. Floods; Declining Pupil 32.2 Aid 32.3 921,000 -0- 32.4 For declining pupil aid under Laws 32.5 2000, chapter 489, article 5, section 32.6 23. 32.7 Sec. 9. NUTRITION PROGRAMS 32.8 Subdivision 1. Total 32.9 Appropriation 12,000,000 12,300,000 32.10 The amounts that may be spent from this 32.11 appropriation for each program are 32.12 specified in the following subdivisions. 32.13 Subd. 2. School Lunch 32.14 8,710,000 8,950,000 32.15 (a) For school lunch aid according to 32.16 Minnesota Statutes, section 124D.111, 32.17 and Code of Federal Regulations, title 32.18 7, section 210.17, and for school milk 32.19 aid according to Minnesota Statutes, 32.20 section 124D.118. 32.21 (b) Not more than $800,000 of the 32.22 amount appropriated each year may be 32.23 used for school milk aid. 32.24 Subd. 3. School Breakfast 32.25 640,000 700,000 32.26 For school breakfast aid under 32.27 Minnesota Statutes, section 124D.115. 32.28 Subd. 4. Summer Food Service 32.29 Replacement Aid 32.30 150,000 150,000 32.31 For summer food service replacement aid 32.32 under Minnesota Statutes, section 32.33 124D.119. 32.34 Subd. 5. Fast Break to Learning Grants 32.35 2,500,000 2,500,000 32.36 For fast break to learning grants under 32.37 Minnesota Statutes, section 124D.1156. 32.38 Sec. 10. LIBRARIES 32.39 Subdivision 1. Total 32.40 Appropriation 10,673,000 10,673,000 32.41 The amounts that may be spent from this 32.42 appropriation for each program are 32.43 specified in the following subdivisions. 32.44 Subd. 2. Basic Support Grants 32.45 8,570,000 8,570,000 32.46 For basic support grants according to 32.47 Minnesota Statutes, sections 134.32 to 33.1 134.35. 33.2 The 2002 appropriation includes 33.3 $857,000 for 2001 and $7,713,000 for 33.4 2002. 33.5 The 2003 appropriation includes 33.6 $857,000 for 2002 and $7,713,000 for 33.7 2003. 33.8 Subd. 3. Multicounty, Multitype 33.9 Library Systems 33.10 903,000 903,000 33.11 For grants according to Minnesota 33.12 Statutes, sections 134.353 and 134.354, 33.13 to multicounty, multitype library 33.14 systems. 33.15 The 2002 appropriation includes $90,000 33.16 for 2001 and $813,000 for 2002. 33.17 The 2003 appropriation includes $90,000 33.18 for 2002 and $813,000 for 2003. 33.19 Subd. 4. Regional Library 33.20 Telecommunications Aid 33.21 1,200,000 1,200,000 33.22 For grants to regional public library 33.23 systems under Minnesota Statutes, 33.24 section 134.47. 33.25 Any balance in the first year does not 33.26 cancel but is available in the second 33.27 year. 33.28 Sec. 11. STATE AGENCIES 33.29 Subdivision 1. Total 33.30 Appropriation 48,601,000 49,509,000 33.31 The amounts that may be spent from this 33.32 appropriation for each program are 33.33 specified in the following subdivisions. 33.34 Subd. 2. Department of Children, 33.35 Families, and Learning 33.36 30,565,000 31,083,000 33.37 (a) Of this amount, $41,000 each year 33.38 is for the Minnesota Academy of Science 33.39 and $260,000 each year is for the 33.40 Minnesota Children's Museum. 33.41 (b) The expenditures of federal grants 33.42 and aids as shown in the biennial 33.43 budget document and its supplement are 33.44 approved and appropriated and shall be 33.45 spent as indicated. 33.46 Any balance in the first year does not 33.47 cancel but is available in the second 33.48 year. 33.49 Subd. 3. Perpich Center for Arts 33.50 Education 34.1 7,531,000 7,666,000 34.2 This appropriation is to the Perpich 34.3 center for arts education. 34.4 Any balance in the first year does not 34.5 cancel but is available in the second 34.6 year. 34.7 Subd. 4. Minnesota State Academies 34.8 10,505,000 10,760,000 34.9 This appropriation is to the Minnesota 34.10 State academies for the deaf and for 34.11 the blind. 34.12 Any balance in the first year does not 34.13 cancel but is available in the second 34.14 year. 34.15 ARTICLE 4 34.16 EARLY CHILDHOOD PROGRAMS 34.17 Section 1. Minnesota Statutes 2000, section 119B.011, 34.18 subdivision 19, is amended to read: 34.19 Subd. 19. [PROVIDER.] "Provider" meansa child care34.20license holder who operates a family child care home, a group34.21family child care home, a child care center, a nursery school, a34.22day nursery, a school age care program; a license-exempt school34.23age care program operating under the auspices of a local school34.24board or a park or recreation board of a city of the first class34.25that has adopted school age care guidelines which meet or exceed34.26guidelines recommended by the department, or a nonlicensedan 34.27 individual or child care center or facility, either licensed or 34.28 unlicensed, providing legal child care services as defined under 34.29 section 245A.03. A legally unlicensed registered family child 34.30 care providerwho ismust be at least 18 years of age, andwho34.31isnot a member of the MFIP assistance unit or a member of the 34.32 family receiving child care assistance under this chapter. 34.33 Sec. 2. Minnesota Statutes 2000, section 124D.16, 34.34 subdivision 2, is amended to read: 34.35 Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to 34.36 receive school readiness aid if the program planasrequired by 34.37 subdivision 1 has been approved by the commissioner. 34.38 (b) For fiscal year19982002 and thereafter, a district 34.39 must receive school readiness aid equal to: 35.1 (1) the number of eligible four-year old children in the 35.2 district on October 1 for the previous school year times the 35.3 ratio of 50 percent of the total school readiness aid for that 35.4 year to the total number of eligible four-year old children 35.5 reported to the commissioner forthatthe previous school year; 35.6 plus 35.7 (2) the number of pupils enrolled in the school district 35.8 from families eligible for the free or reduced school lunch 35.9 program for the second previous school year times the ratio of 35.10 50 percent of the total school readiness aid for that year to 35.11 the total number of pupils in the state from families eligible 35.12 for the free or reduced school lunch program for the second 35.13 previous school year. 35.14 ARTICLE 5 35.15 PREVENTION 35.16 Section 1. Minnesota Statutes 2000, section 119A.12, is 35.17 amended by adding a subdivision to read: 35.18 Subd. 4. [AUTHORITY TO DISBURSE FUNDS.] The commissioner 35.19 may disburse trust fund money to any public or private nonprofit 35.20 agency to fund a child abuse prevention program. State funds 35.21 appropriated for child maltreatment prevention grants may be 35.22 transferred to the children's trust fund special revenue account 35.23 and are available to carry out this section. 35.24 Sec. 2. Minnesota Statutes 2000, section 119A.12, is 35.25 amended by adding a subdivision to read: 35.26 Subd. 5. [PLAN FOR DISBURSEMENT OF FUNDS.] The 35.27 commissioner shall develop a plan to disburse money from the 35.28 trust fund. The plan must ensure that all geographic areas of 35.29 the state have an equal opportunity to establish prevention 35.30 programs and receive trust fund money. 35.31 Sec. 3. Minnesota Statutes 2000, section 119A.12, is 35.32 amended by adding a subdivision to read: 35.33 Subd. 6. [OPERATIONAL COSTS.] $120,000 each year is 35.34 appropriated from the children's trust fund to the special 35.35 revenue fund for administration and indirect costs of the 35.36 children's trust fund program. 36.1 Sec. 4. Minnesota Statutes 2000, section 119A.13, 36.2 subdivision 4, is amended to read: 36.3 Subd. 4. [RESPONSIBILITIES OF COMMISSIONER.] (a) The 36.4 commissioner shall: 36.5 (1) provide for the coordination and exchange of 36.6 information on the establishment and maintenance of prevention 36.7 programs; 36.8 (2) develop and publish criteria for receiving trust fund 36.9 money by prevention programs; 36.10 (3) review, approve, and monitor the spending of trust fund 36.11 money by prevention programs; 36.12 (4) provide statewide educational and public informational 36.13 seminars to develop public awareness on preventing child abuse; 36.14 to encourage professional persons and groups to recognize 36.15 instances of child abuse and work to prevent them; to make 36.16 information on child abuse prevention available to the public 36.17 and to organizations and agencies; and to encourage the 36.18 development of prevention programs, including programs that 36.19 provide support for adolescent parents, fathering education 36.20 programs, and other prevention activities designed to prevent 36.21 teen pregnancy; 36.22 (5) establish a procedure for an annual, internal 36.23 evaluation of the functions, responsibilities, and performance 36.24 of the commissioner in carrying out Laws 1986, chapter 423; 36.25 (6) provide technical assistance to local councils and 36.26 agencies working in the area of child abuse prevention; and 36.27 (7) accept and review grant applications beginning June 1, 36.28 1987. 36.29 (b) The commissioner shall recommend to the governor 36.30 changes in state programs, statutes, policies, budgets, and 36.31 standards that will reduce the problems of child abuse, improve 36.32 coordination among state agencies that provide prevention 36.33 services, and improve the condition of children, parents, or 36.34 guardians in need of prevention program services. 36.35 Sec. 5. Minnesota Statutes 2000, section 119A.21, is 36.36 amended to read: 37.1 119A.21 [GRANTS TO SERVICE PROVIDER PROGRAMS.] 37.2 Subdivision 1. [GRANTS AWARDED.] The commissioner shall 37.3 award grants to programswhichthat provideabused children37.4 services to abused or neglected children. Grants shall be 37.5 awarded in a manner that ensures that they are equitably 37.6 distributed to programs serving metropolitan and nonmetropolitan 37.7 populations. 37.8 Subd. 2. [APPLICATIONS.] Any public or private nonprofit 37.9 agency may apply to the commissioner for a grantto provide37.10abused children services. The application shall be submittedin37.11 on a formapprovedprescribed by the commissionerafter37.12consultation with the abused children advisory council and shall37.13include:. 37.14(1) a proposal for the provision of abused children37.15services to, or on behalf of, abused children, children at risk,37.16and their families;37.17(2) a proposed budget;37.18(3) evidence of ability to represent the interests of37.19abused children and their families to local law enforcement37.20agencies and courts, social services, and health agencies;37.21(4) evidence of ability to do outreach to unserved and37.22underserved populations and to provide culturally and37.23linguistically appropriate services; and37.24(5) any other information the commissioner may require by37.25policy or by rule adopted under chapter 14, after considering37.26the recommendations of the abused children advisory council.37.27Programs which have been approved for grants in prior years37.28may submit materials which indicate changes in items listed in37.29clauses (1) to (5), in order to qualify for renewal funding.37.30Nothing in this subdivision may be construed to require programs37.31to submit complete applications for each year of funding.37.32 Subd. 3. [DUTIES.] Every public or private nonprofit 37.33 agency which receives a grant under this sectionto provide37.34abused children servicesshall comply with all requirements of 37.35 the commissioner related to the administration of the grants. 37.36 Subd. 4. [CLASSIFICATION OF DATA COLLECTED BY GRANTEES.] 38.1 Personal history information and other information collected, 38.2 used, or maintained by a grantee from which the identity of any 38.3 abused child or family members may be determined is private data 38.4 on individuals as defined in section 13.02, subdivision 12, and 38.5 the grantee shall maintain the data in accordance with 38.6 provisions of chapter 13. 38.7 Sec. 6. Minnesota Statutes 2000, section 119A.22, is 38.8 amended to read: 38.9 119A.22 [DUTIES OF THE COMMISSIONER.] 38.10 The commissioner shall: 38.11 (1) review applications and award grants to programs 38.12 pursuant to section 119A.21after considering the recommendation38.13of the abused children advisory council; 38.14 (2)appoint members of the abused children advisory council38.15created under section 119A.23 and provide consultative staff and38.16other administrative services to the council;38.17(3) after considering the recommendation of the abused38.18children advisory council, appoint a program director to perform38.19the duties set forth in this clause. In appointing the program38.20director the commissioner shall give due consideration to the38.21list of applicants submitted to the commissioner pursuant to38.22this section. The program director shall administer the funds38.23appropriated for sections 119A.20 to 119A.23, consult with and38.24provide staff to the advisory council and perform other duties38.25related to abused children's programs as the commissioner may38.26assign;38.27(4)design a uniform method of collecting dataon abused38.28children's programsto be used to monitor and assure compliance 38.29 of the programs funded under section 119A.21; 38.30(5)(3) provide technicalaidassistance to applicants in 38.31 the development of grant requests and toprogramsgrantees in 38.32 meeting the data collection requirements established by the 38.33 commissioner; and 38.34(6)(4) adopt, under chapter 14, all rules necessary to 38.35 implement the provisions of sections 119A.20 to 119A.23. 38.36 Sec. 7. [119A.35] [ADVISORY COUNCIL.] 39.1 Subdivision 1. [GENERALLY.] The advisory council is 39.2 established under section 15.059 to advise the commissioner on 39.3 the implementation and continued operations of sections 119A.10 39.4 to 119A.16 and 119A.20 to 119A.22. The council shall expire 39.5 June 30, 2005. 39.6 Subd. 2. [COUNCIL MEMBERSHIP.] The council shall consist 39.7 of a total of 22 members. The governor shall appoint 18 of 39.8 these members. The commissioners of human services and health 39.9 shall each appoint one member. The senate shall appoint one 39.10 member from the senate committee with jurisdiction over family 39.11 and early childhood education and the house of representatives 39.12 shall appoint one member from the house committee with 39.13 jurisdiction over family and early childhood education. 39.14 Council members shall have knowledge in the areas of child 39.15 abuse and neglect prevention, and knowledge of the risk factors 39.16 that can lead to child abuse and neglect. Council members shall 39.17 be representative of local government, criminal justice, 39.18 parents, consumers of services, health and human services 39.19 professionals, faith communities, professional and volunteer 39.20 providers of child abuse and neglect prevention services, racial 39.21 and ethnic minority communities, and the demographic and 39.22 geographic composition of the state. Ten council members shall 39.23 reside in the seven-county metropolitan area and eight shall 39.24 reside in nonmetropolitan areas. 39.25 Subd. 3. [RESPONSIBILITIES.] The council shall: 39.26 (1) advise the commissioner on planning, policy 39.27 development, data collection, rulemaking, funding, and 39.28 evaluation of the programs under the sections listed in 39.29 subdivision 1; 39.30 (2) coordinate and exchange information on the 39.31 establishment and ongoing operation of the programs listed in 39.32 subdivision 1; 39.33 (3) develop and publish criteria and guidelines for 39.34 receiving grants relating to child abuse and neglect prevention 39.35 and safety and support of child victims, including, but not 39.36 limited to, funds dedicated to the children's trust fund and 40.1 abused children program; 40.2 (4) provide guidance in the development of statewide 40.3 education and public information activities that increase public 40.4 awareness in the prevention and intervention of child abuse and 40.5 neglect and encourage the development of prevention and 40.6 intervention programs, which includes the safety of child 40.7 victims; 40.8 (5) guide, analyze, and disseminate results in the 40.9 development of appropriate evaluation procedures for all 40.10 programs receiving funds under subdivision 1; and 40.11 (6) assist the commissioner in identifying service gaps or 40.12 duplication in services, including geographic dispersion of 40.13 resources, programs reflecting the cycle of child abuse, and the 40.14 availability of culturally appropriate intervention and 40.15 prevention services. 40.16 Sec. 8. [REVISOR INSTRUCTION.] 40.17 In the next and subsequent editions of Minnesota Statutes 40.18 and Minnesota Rules, the revisor shall renumber Minnesota 40.19 Statutes, section 119A.13, subdivision 4, as Minnesota Statutes, 40.20 section 119A.12, subdivision 4, and make necessary 40.21 cross-reference changes consistent with the renumbering. 40.22 Sec. 9. [REPEALER.] 40.23 Minnesota Statutes 2000, sections 119A.13, subdivisions 1, 40.24 2, and 3; 119A.14, subdivision 2; 119A.23; 124D.33; and 40.25 124D.331, are repealed. 40.26 ARTICLE 6 40.27 SELF-SUFFICIENCY AND LIFELONG LEARNING 40.28 Section 1. Minnesota Statutes 2000, section 124D.52, 40.29 subdivision 2, is amended to read: 40.30 Subd. 2. [PROGRAM APPROVAL.] (a) To receive aid under this 40.31 section, a district, a consortium of districts, the department 40.32 of corrections, or a private nonprofit organization must submit 40.33 an application by June 1 describing the program, on a form 40.34 provided by the department. The program must be approved by the 40.35 commissioner according to the following criteria: 40.36 (1) how the needs of different levels of learning will be 41.1 met; 41.2 (2) for continuing programs, an evaluation of results; 41.3 (3) anticipated number and education level of participants; 41.4 (4) coordination with other resources and services; 41.5 (5) participation in a consortium, if any, and money 41.6 available from other participants; 41.7 (6) management and program design; 41.8 (7) volunteer training and use of volunteers; 41.9 (8) staff development services; 41.10 (9) program sites and schedules; 41.11 (10) program expenditures that qualify for aid; 41.12 (11) program ability to provide data related to learner 41.13 outcomes as required by law; and 41.14 (12) a copy of the memorandum of understanding described in 41.15 subdivision 1 submitted to the commissioner. 41.16 (b) Adult basic education programs may be approved under 41.17 this subdivision for up to five years. Five-year program 41.18 approval must be granted to an applicant who has demonstrated 41.19 the capacity to: 41.20 (1) offer comprehensive learning opportunities and support 41.21 service choices appropriate for and accessible to adults at all 41.22 basic skill need levels; 41.23 (2) provide a participatory and experiential learning 41.24 approach based on the strengths, interests, and needs of each 41.25 adult, that enables adults with basic skill needs to: 41.26 (i) identify, plan for, and evaluate their own progress 41.27 toward achieving their defined educational and occupational 41.28 goals; 41.29 (ii) master the basic academic reading, writing, and 41.30 computational skills, as well as the problem-solving, decision 41.31 making, interpersonal effectiveness, and other life and learning 41.32 skills they need to function effectively in a changing society; 41.33 (iii) locate and be able to use the health, governmental, 41.34 and social services and resources they need to improve their own 41.35 and their families' lives; and 41.36 (iv) continue their education, if they desire, to at least 42.1 the level of secondary school completion, with the ability to 42.2 secure and benefit from continuing education that will enable 42.3 them to become more employable, productive, and responsible 42.4 citizens; 42.5 (3) plan, coordinate, and develop cooperative agreements 42.6 with community resources to address the needs that the adults 42.7 have for support services, such as transportation, flexible 42.8 course scheduling, convenient class locations, and child care; 42.9 (4) collaborate with business, industry, labor unions, and 42.10 employment-training agencies, as well as with family and 42.11 occupational education providers, to arrange for resources and 42.12 services through which adults can attain economic 42.13 self-sufficiency; 42.14 (5) provide sensitive and well trained adult education 42.15 personnel who participate in local, regional, and statewide 42.16 adult basic education staff development events to master 42.17 effective adult learning and teaching techniques; 42.18 (6) participate in regional adult basic education peer 42.19 program reviews and evaluations; 42.20 (7) submit accurate and timely performance and fiscal 42.21 reports; 42.22 (8) submit accurate and timely reports related to program 42.23 outcomes and learner follow-up information; and 42.24 (9) spend adult basic education aid on adult basic 42.25 education purposes only, which are specified in sections 42.26 124D.518 to 124D.531. 42.27 (c) The commissioner shall require each district to provide 42.28 notification by February 1, 2001, of its intent to apply for 42.29 funds under this section as a single district or as part of an 42.30 identified consortium of districts. A district receiving funds 42.31 under this section must notify the commissioner by February 1 of 42.32 its intent to change its application status for applications due 42.33 the following June 1. 42.34 Sec. 2. Minnesota Statutes 2000, section 124D.522, is 42.35 amended to read: 42.36 124D.522 [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 43.1 GRANTS.] 43.2 (a) The commissioner, in consultation with the policy 43.3 review task force under section 124D.521, may make grants to 43.4 nonprofit organizations to provide services that are not offered 43.5 by a district adult basic education program or that are 43.6 supplemental to either the statewide adult basic education 43.7 program, or a district's adult basic education program. The 43.8 commissioner may make grants for: staff development for adult 43.9 basic education teachers and administrators; training for 43.10 volunteer tutors; training, services, and materials for serving 43.11 disabled students through adult basic education programs; 43.12 statewide promotion of adult basic education services and 43.13 programs; development and dissemination of instructional and 43.14 administrative technology for adult basic education programs; 43.15 programs which primarily serve communities of color; adult basic 43.16 education distance learning projects, including television 43.17 instruction programs; and other supplemental services to support 43.18 the mission of adult basic education and innovative delivery of 43.19 adult basic education services. 43.20 (b) The commissioner must establish eligibility criteria 43.21 and grant application procedures. Grants under this section 43.22 must support services throughout the state, focus on educational 43.23 results for adult learners, and promote outcome-based 43.24 achievement through adult basic education programs. Beginning 43.25 in fiscal year 2002, the commissioner may make grants under this 43.26 section fromfunds specifically appropriatedthe state total 43.27 adult basic education aid set aside for supplemental service 43.28 grants under section 124D.531. Up toone-thirdone-fourth of 43.29 the appropriation for supplemental service grants must be used 43.30 for grants for adult basic education programs to encourage and 43.31 support innovations in adult basic education instruction and 43.32 service delivery. A grant to a single organization cannot 43.33 exceed $100,000. Nothing in this section prevents an approved 43.34 adult basic education program from using state or federal aid to 43.35 purchase supplemental services. 43.36 [EFFECTIVE DATE.] This section is effective July 1, 2001. 44.1 Sec. 3. Minnesota Statutes 2000, section 124D.531, 44.2 subdivision 1, is amended to read: 44.3 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 44.4 (a) The state total adult basic education aid for fiscal year 44.5 2001 equals $30,157,000. The state total adult basic education 44.6 aid for later years equals: 44.7 (1) the state total adult basic education aid for the 44.8 preceding fiscal year; times 44.9 (2) the lesser of: 44.10 (i) 1.08, or 44.11 (ii) the greater of 1.00 or the ratio of the state total 44.12 contact hours in the first prior program year to the state total 44.13 contact hours in the second prior program year. Beginning in 44.14 fiscal year 2002, two percent of the state total adult basic 44.15 education aid must be set aside for adult basic education 44.16 supplemental service grants under section 124D.522. 44.17 (b) The state total adult basic education aid, excluding 44.18 basic population aid, equals the difference between the amount 44.19 computed in paragraph (a), and the state total basic population 44.20 aid under subdivision 2. 44.21 [EFFECTIVE DATE.] This section is effective July 1, 2001. 44.22 Sec. 4. Minnesota Statutes 2000, section 124D.531, 44.23 subdivision 3, is amended to read: 44.24 Subd. 3. [PROGRAM REVENUE.] Adult basic education programs 44.25 established under section 124D.52 and approved by the 44.26 commissioner are eligible for revenue under this subdivision. 44.27 For fiscal year 2001 and later, adult basic education revenue 44.28 for each approved program equals the sum of: 44.29 (1) the basic population aid under subdivision 2 for 44.30 districts participating in the program during the current 44.31 program year; plus 44.32 (2) 84 percent times the amount computed in subdivision 1, 44.33 paragraph (b), times the ratio of the contact hours for students 44.34 participating in the program during the first prior program year 44.35 to the state total contact hours during the first prior program 44.36 year; plus 45.1 (3) eight percent times the amount computed in subdivision 45.2 1, paragraph (b), times the ratio of the enrollment of students 45.3 with limited English proficiency during the second prior school 45.4 year in districts participating in the program during the 45.5 current program year to the state total enrollment of students 45.6 with limited English proficiency during the second prior school 45.7 year in districts participating in adult basic education 45.8 programs during the current program year; plus 45.9 (4) eight percent times the amount computed in subdivision 45.10 1, paragraph (b), times the ratio of the latest federal census 45.11 count of the number of adults aged 20 or older with no diploma 45.12 residing in the districts participating in the program during 45.13 the current program year to the latest federal census count of 45.14 the state total number of adults aged 20 or older with no 45.15 diploma residing in the districts participating in adult basic 45.16 education programs during the current program year. 45.17 ARTICLE 7 45.18 GENERAL EDUCATION 45.19 Section 1. Minnesota Statutes 2000, section 123B.42, 45.20 subdivision 3, is amended to read: 45.21 Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the 45.22 textbooks, individualized instructional or cooperative learning 45.23 materials, and standardized tests provided for in this section 45.24 for each school year must not exceed the statewide average 45.25 expenditure per pupil, adjusted pursuant to clause (b), by the 45.26 Minnesota public elementary and secondary schools for textbooks, 45.27 individualized instructional materials and standardized tests as 45.28 computed and established by the department byMarchFebruary 1 45.29 of the preceding school year from the most recent public school 45.30 year data then available. 45.31 (b) The cost computed in clause (a) shall be increased by 45.32 an inflation adjustment equal to the percent of increase in the 45.33 formula allowance, pursuant to section 126C.10, subdivision 2, 45.34 from the second preceding school year to the current school year. 45.35 (c) The commissioner shall allot to the districts or 45.36 intermediary service areas the total cost for each school year 46.1 of providing or loaning the textbooks, individualized 46.2 instructional or cooperative learning materials, and 46.3 standardized tests for the pupils in each nonpublic school. The 46.4 allotment shall not exceed the product of the statewide average 46.5 expenditure per pupil, according to clause (a), adjusted 46.6 pursuant to clause (b), multiplied by the number of nonpublic 46.7 school pupils who make requests pursuant to this section and who 46.8 are enrolled as of September 15 of the current school year. 46.9 Sec. 2. Minnesota Statutes 2000, section 123B.44, 46.10 subdivision 6, is amended to read: 46.11 Subd. 6. [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 46.12 of computing maximum allotments for each school year pursuant to 46.13 this section, the average public school expenditure per pupil 46.14 for health services and the average public school expenditure 46.15 per secondary pupil for guidance and counseling services shall 46.16 be computed and established by the department byMarchFebruary 46.17 1 of the preceding school year from the most recent public 46.18 school year data then available. 46.19 Sec. 3. Minnesota Statutes 2000, section 123B.75, 46.20 subdivision 5, is amended to read: 46.21 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 46.22 settlement revenue" means the current, delinquent, and 46.23 manufactured home property tax receipts collected by the county 46.24 and distributed to the school district. 46.25 (b) In June ofeach year2001, the school district must 46.26 recognize as revenue, in the fund for which the levy was made, 46.27 the lesser of: 46.28 (1) the sum of May, June, and July school district tax 46.29 settlement revenue received in that calendar year plus general 46.30 education aid according to section 126C.13, subdivision 4, 46.31 received in July and August of that calendar year; or 46.32 (2) the sum of: 46.33 (i) 31 percent of the referendum levy certified in the 46.34 prior calendar year according to section 126C.17, subdivision 9; 46.35 plus 46.36 (ii) the entire amount of the levy certified in the prior 47.1 calendar year according to sections 124D.86, subdivision 4, for 47.2 school districts receiving revenue under 124D.86, subdivision 3, 47.3 clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 47.4 paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 47.5 126C.48, subdivision 6. 47.6 (c) For fiscal year 2002 and later years, in June of each 47.7 year, the school district must recognize as revenue, in the fund 47.8 for which the levy was made, the lesser of: 47.9 (1) the sum of May, June, and July school district tax 47.10 settlement revenue received in that calendar year, plus general 47.11 education aid according to section 126C.13, subdivision 4, 47.12 received in July and August of that calendar year; or 47.13 (2) the sum of: 47.14 (i) the lesser of 50 percent of the referendum levy 47.15 certified in the prior calendar year according to section 47.16 126C.17, subdivision 9; or 31 percent of the referendum levy 47.17 certified according to section 126C.17, in calendar year 2000; 47.18 plus 47.19 (ii) the entire amount of the levy certified in the prior 47.20 calendar year according to section 124D.86, subdivision 4, for 47.21 school districts receiving revenue under sections 124D.86, 47.22 subdivision 3, clauses (1) to (3); 126C.41, subdivisions 1, 2, 47.23 and 3, paragraphs (4) to (6); 126C.43, subdivision 2; and 47.24 126C.48, subdivision 6. 47.25 [EFFECTIVE DATE.] This section is effective June 30, 2001. 47.26 Sec. 4. Minnesota Statutes 2000, section 123B.75, is 47.27 amended by adding a subdivision to read: 47.28 Subd. 6b. [GENERAL EDUCATION AID.] If the amount to be 47.29 recognized as revenue under subdivision 5 exceeds the May, June, 47.30 and July school district tax settlement revenue received in that 47.31 calendar year, the district must recognize an amount of general 47.32 education aid equal to the difference between the total amount 47.33 to be recognized as revenue under subdivision 5, and the May, 47.34 June, and July school district tax settlement revenue received 47.35 in that calendar year as revenue in the previous fiscal year. 47.36 [EFFECTIVE DATE.] This section is effective June 30, 2001. 48.1 Sec. 5. Minnesota Statutes 2000, section 126C.05, 48.2 subdivision 1, is amended to read: 48.3 Subdivision 1. [PUPIL UNIT.] Pupil units for each 48.4 Minnesota resident pupil in average daily membership enrolled in 48.5 the district of residence, in another district under sections 48.6 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 48.7 124D.68; in a charter school under section 124D.10; or for whom 48.8 the resident district pays tuition under section 123A.18, 48.9 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 48.10 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 48.11 125A.65, shall be counted according to this subdivision. 48.12 (a) A prekindergarten pupil with a disability who is 48.13 enrolled in a program approved by the commissioner and has an 48.14 individual education plan is counted as the ratio of the number 48.15 of hours of assessment and education service to 825 times 1.25 48.16 with a minimum average daily membership of 0.28, but not more 48.17 than 1.25 pupil units. 48.18 (b) A prekindergarten pupil who is assessed but determined 48.19 not to be handicapped is counted as the ratio of the number of 48.20 hours of assessment service to 825 times 1.25. 48.21 (c) A kindergarten pupil with a disability who is enrolled 48.22 in a program approved by the commissioner is counted as the 48.23 ratio of the number of hours of assessment and education 48.24 services required in the fiscal year by the pupil's individual 48.25 education program plan to 875, but not more than one. 48.26 (d) A kindergarten pupil who is not included in paragraph 48.27 (c) is counted as .557 of a pupil unit for fiscal year 2000 and 48.28 thereafter. 48.29 (e) A pupil who is in any of grades 1 to 3 is counted as 48.30 1.115 pupil units for fiscal year 2000 and thereafter. 48.31 (f) A pupil who is any of grades 4 to 6 is counted as 1.06 48.32 pupil units for fiscal year 1995 and thereafter. 48.33 (g) A pupil who is in any of grades 7 to 12 is counted as 48.34 1.3 pupil units. 48.35 (h) A pupil who is in the post-secondary enrollment options 48.36 program is counted as 1.3 pupil units. 49.1 Sec. 6. Minnesota Statutes 2000, section 126C.10, 49.2 subdivision 1, is amended to read: 49.3 Subdivision 1. [GENERAL EDUCATION REVENUE.] For fiscal 49.4 year20002002 and thereafter, the general education revenue for 49.5 each district equals the sum of the district's basic revenue, 49.6 basic skills revenue, training and experience revenue, secondary 49.7 sparsity revenue, elementary sparsity revenue, transportation 49.8 sparsity revenue, total operating capital revenue, equity 49.9 revenue,referendum offset adjustment,transition revenue, and 49.10 supplemental revenue. 49.11 Sec. 7. Minnesota Statutes 2000, section 126C.10, 49.12 subdivision 2, is amended to read: 49.13 Subd. 2. [BASIC REVENUE.] The basic revenue for each 49.14 district equals the formula allowance times the adjusted 49.15 marginal cost pupil units for the school year.The formula49.16allowance for fiscal year 1998 is $3,581. The formula allowance49.17for fiscal year 1999 is $3,530. The formula allowance for49.18fiscal year 2000 is $3,740.The formula allowance for fiscal 49.19 year 2001and subsequent fiscal yearsis $3,964. The formula 49.20 allowance for fiscal year 2002 is $4,083. The formula allowance 49.21 for fiscal year 2003 and subsequent years is $4,205. 49.22 Sec. 8. Minnesota Statutes 2000, section 126C.10, 49.23 subdivision 9, is amended to read: 49.24 Subd. 9. [SUPPLEMENTAL REVENUE.] (a) A district's 49.25 supplemental revenue allowance for fiscal year19942002 and 49.26 later fiscal years equals the district's supplemental 49.27 revenue allowance for fiscal year1993 divided by the district's49.281992-1993 resident pupil units2001. 49.29 (b)A district's supplemental revenue allowance is reduced49.30for fiscal year 1995 and later according to subdivision 12.49.31(c)A district's supplemental revenue equals the 49.32 supplemental revenue allowance, if any, times its adjusted 49.33 marginal cost pupil units for that year. 49.34(d) A district may cancel its supplemental revenue by49.35notifying the commissioner of education prior to June 30, 1994.49.36A district that is reorganizing under section 123A.35, 123A.46,50.1or 123A.48 may cancel its supplemental revenue by notifying the50.2commissioner of children, families, and learning before July 150.3of the year of the reorganization. If a district cancels its50.4supplemental revenue according to this paragraph, its50.5supplemental revenue allowance for fiscal year 1993 for purposes50.6of subdivision 12 and section 124A.03, subdivision 3b, equals50.7zero.50.8 [EFFECTIVE DATE.] This section is effective for fiscal year 50.9 2002. 50.10 Sec. 9. Minnesota Statutes 2000, section 126C.12, 50.11 subdivision 2, is amended to read: 50.12 Subd. 2. [INSTRUCTOR DEFINEDDEFINITIONS.]Primary50.13instructor(a) "Classroom teacher" means, for the purpose of the 50.14 annual report in subdivision 6, for collecting consistent state 50.15 data, and for determining the cost of reducing actual class size 50.16 to a level of 1 to 17, a public employee licensed by the board 50.17 of teaching who is authorized to teach all subjects to children 50.18 in any grade kindergarten through grade 6 and whose duties are 50.19 full-time regular classroom instruction, excluding a teacher for 50.20 whom federal aids are received or for whom categorical aids are 50.21 received pursuant to section 125A.76 or who is an itinerant 50.22 teacher or provides instruction outside of the regular 50.23 classroom. Except as provided in section 122A.68, subdivision 50.24 6,instructorclassroom teacher does not include supervisory and 50.25 support personnel, except school social workers asdefined in 50.26 section 122A.15.An instructorA classroom teacher whose duties 50.27 are less than full-time instruction must be included as an 50.28 equivalent only for the number of hours of instruction ingrades50.29 kindergarten through6grade 3. 50.30 (b) "Class size" means the district-wide ratio at each 50.31 grade level of the number of full-time students in kindergarten 50.32 through grade 3 served at least 40 percent of the time in 50.33 regular classrooms to the number of full-time classroom teachers 50.34 in kindergarten through grade 3, determined as of October 1 of 50.35 each school year. 50.36 Sec. 10. Minnesota Statutes 2000, section 126C.12, 51.1 subdivision 3, is amended to read: 51.2 Subd. 3. [INSTRUCTION CONTACT TIME.] Instruction may be 51.3 provided by aprimary instructor,classroom teacher or by a team 51.4 ofinstructorsclassroom teachers, or by a teacher resident 51.5 supervised by aprimary instructorclassroom teacher. The 51.6 district must maximizeinstructorclassroom teacher to learner 51.7 average instructional contact time in the core subjects of 51.8 reading and mathematics. 51.9 Sec. 11. Minnesota Statutes 2000, section 126C.12, 51.10 subdivision 4, is amended to read: 51.11 Subd. 4. [REVENUE USE.] (a)Revenue must be used according51.12to either paragraph (b) or (c).51.13(b)Revenue must be used to reduce and maintain the 51.14 district'sinstructor to learner ratiosaverage class size in 51.15 kindergarten through grade63 to a level of 1 to 17 on 51.16 average.The district must prioritize the use of the revenue to51.17attain this level initially in kindergarten and grade 1 and then51.18through the subsequent grades as revenue is available.51.19(c) The revenue may be used to prepare and use an51.20individualized learning plan for each learner.51.21 (b) A district must not increase the district 51.22 wideinstructor-to-learner ratiosclass sizes in other grades as 51.23 a result of reducinginstructor-to-learner ratiosclass sizes in 51.24 kindergarten through grade63. Revenue may not be used to 51.25 provide instructor preparationtime. A district may use a 51.26 portion of the revenue reserved under this section to employ up 51.27 to the same number of full-time equivalent education assistants 51.28 or aides as the district employed during the 1992-1993 school 51.29 year under Minnesota Statutes 1992, section 124.331, subdivision 51.30 2, through fiscal year 2002. Beginning in fiscal year 2003, 51.31 class size reduction revenue may only be reserved to employ 51.32 classroom teachers contributing to lower class sizes in 51.33 kindergarten through grade 3. 51.34 Sec. 12. Minnesota Statutes 2000, section 126C.12, 51.35 subdivision 5, is amended to read: 51.36 Subd. 5. [ADDITIONAL REVENUE USE.] If the board of a 52.1 district determines that the district has achieved and is 52.2 maintaining theinstructor-to-learner ratiosclass sizes 52.3 specified in subdivision 4and is using individualized learning52.4plans, the board may use the revenue to reduce class size in 52.5 grades 4, 5, and 6, provide all-day, everyday kindergarten, 52.6 prepare and use individualized learning plans, improve program 52.7 offerings, purchase instructional materialand, services, or 52.8 technology, or provide staff development needed for reduced 52.9instructor-to-learner ratios. If additional revenue remains,52.10the district must use the revenue to improve program offerings,52.11including programs provided through interactive television,52.12throughout the district or other general education52.13purposesclass sizes. 52.14 Sec. 13. Minnesota Statutes 2000, section 126C.12, is 52.15 amended by adding a subdivision to read: 52.16 Subd. 6. [ANNUAL REPORT.] By December 1 of each year, 52.17 districts receiving revenue under subdivision 1 shall make 52.18 available to the public a report on the amount of revenue the 52.19 district has received and the use of the revenue. This report 52.20 shall be in the form and manner determined by the commissioner 52.21 and shall include the district average class sizes in 52.22 kindergarten through grade 6 as of October 1 of the current 52.23 school year and the class sizes for each site serving 52.24 kindergarten through grade 6 students in the district. A copy 52.25 of the report shall be filed with the commissioner by December 52.26 15. 52.27 Sec. 14. Minnesota Statutes 2000, section 126C.17, 52.28 subdivision 1, is amended to read: 52.29 Subdivision 1. [REFERENDUM ALLOWANCE.] A district's 52.30 referendum revenue allowance equals thereferendum revenue52.31authority for that year divided by its resident marginal cost52.32pupil units for that school year.sum of the allowance under 52.33 section 126C.16, subdivision 2, plus any additional allowance 52.34 per resident marginal cost pupil unit authorized under 52.35 subdivision 9 for fiscal year 2002 and later. 52.36 Sec. 15. Minnesota Statutes 2000, section 126C.17, 53.1 subdivision 9, is amended to read: 53.2 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 53.3 by section 126C.10, subdivision 1, may be increased in the 53.4 amount approved by the voters of the district at a referendum 53.5 called for the purpose. The referendum may be called by the 53.6 board or shall be called by the board upon written petition of 53.7 qualified voters of the district. The referendum must be 53.8 conducted one or two calendar years before the increased levy 53.9 authority, if approved, first becomes payable. Only one 53.10 election to approve an increase may be held in a calendar year. 53.11 Unless the referendum is conducted by mail under paragraph (g), 53.12 the referendum must be held on the first Tuesday after the first 53.13 Monday in November. The ballot must state the maximum amount of 53.14 the increased revenue per resident marginal cost pupil unit, the 53.15 estimated referendum tax rate as a percentage of referendum 53.16 market value in the first year it is to be levied, and that the 53.17 revenue must be used to finance school operations. The ballot 53.18 may state a schedule, determined by the board, of increased 53.19 revenue per resident marginal cost pupil unit that differs from 53.20 year to year over the number of years for which the increased 53.21 revenue is authorized. If the ballot contains a schedule 53.22 showing different amounts, it must also indicate the estimated 53.23 referendum tax rate as a percent of referendum market value for 53.24 the amount specified for the first year and for the maximum 53.25 amount specified in the schedule. The ballot may state that 53.26 existing referendum levy authority is expiring. In this case, 53.27 the ballot may also compare the proposed levy authority to the 53.28 existing expiring levy authority, and express the proposed 53.29 increase as the amount, if any, over the expiring referendum 53.30 levy authority. The ballot must designate the specific number 53.31 of years, not to exceed ten, for which the referendum 53.32 authorization applies. The notice required under section 275.60 53.33 may be modified to read, in cases of renewing existing levies: 53.34 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 53.35 FOR A PROPERTY TAX INCREASE." 53.36 The ballot may contain a textual portion with the 54.1 information required in this subdivision and a question stating 54.2 substantially the following: 54.3 "Shall the increase in the revenue proposed by (petition 54.4 to) the board of ........., School District No. .., be approved?" 54.5 If approved, an amount equal to the approved revenue per 54.6 resident marginal cost pupil unit times the resident marginal 54.7 cost pupil units for the school year beginning in the year after 54.8 the levy is certified shall be authorized for certification for 54.9 the number of years approved, if applicable, or until revoked or 54.10 reduced by the voters of the district at a subsequent referendum. 54.11 (b) The board must prepare and deliver by first class mail 54.12 at least 15 days but no more than 30 days before the day of the 54.13 referendum to each taxpayer a notice of the referendum and the 54.14 proposed revenue increase. The board need not mail more than 54.15 one notice to any taxpayer. For the purpose of giving mailed 54.16 notice under this subdivision, owners must be those shown to be 54.17 owners on the records of the county auditor or, in any county 54.18 where tax statements are mailed by the county treasurer, on the 54.19 records of the county treasurer. Every property owner whose 54.20 name does not appear on the records of the county auditor or the 54.21 county treasurer is deemed to have waived this mailed notice 54.22 unless the owner has requested in writing that the county 54.23 auditor or county treasurer, as the case may be, include the 54.24 name on the records for this purpose. The notice must project 54.25 the anticipated amount of tax increase in annual dollars and 54.26 annual percentage for typical residential homesteads, 54.27 agricultural homesteads, apartments, and commercial-industrial 54.28 property within the school district. 54.29 The notice for a referendum may state that an existing 54.30 referendum levy is expiring and project the anticipated amount 54.31 of increase over the existing referendum levy in the first year, 54.32 if any, in annual dollars and annual percentage for typical 54.33 residential homesteads, agricultural homesteads, apartments, and 54.34 commercial-industrial property within the district. 54.35 The notice must include the following statement: "Passage 54.36 of this referendum will result in an increase in your property 55.1 taxes." However, in cases of renewing existing levies, the 55.2 notice may include the following statement: "Passage of this 55.3 referendum may result in an increase in your property taxes." 55.4 (c) A referendum on the question of revoking or reducing 55.5 the increased revenue amount authorized pursuant to paragraph 55.6 (a) may be called by the board and shall be called by the board 55.7 upon the written petition of qualified voters of the district. 55.8 A referendum to revoke or reduce the levy amount must be based 55.9 upon the dollar amount, local tax rate, or amount per resident 55.10 marginal cost pupil unit, that was stated to be the basis for 55.11 the initial authorization. Revenue approved by the voters of 55.12 the district pursuant to paragraph (a) must be received at least 55.13 once before it is subject to a referendum on its revocation or 55.14 reduction for subsequent years. Only one revocation or 55.15 reduction referendum may be held to revoke or reduce referendum 55.16 revenue for any specific year and for years thereafter. 55.17 (d) A petition authorized by paragraph (a) or (c) is 55.18 effective if signed by a number of qualified voters in excess of 55.19 15 percent of the registered voters of the district on the day 55.20 the petition is filed with the board. A referendum invoked by 55.21 petition must be held on the date specified in paragraph (a). 55.22 (e) The approval of 50 percent plus one of those voting on 55.23 the question is required to pass a referendum authorized by this 55.24 subdivision. 55.25 (f) At least 15 days before the day of the referendum, the 55.26 district must submit a copy of the notice required under 55.27 paragraph (b) to the commissioner and to the county auditor of 55.28 each county in which the district is located. Within 15 days 55.29 after the results of the referendum have been certified by the 55.30 board, or in the case of a recount, the certification of the 55.31 results of the recount by the canvassing board, the district 55.32 must notify the commissioner of the results of the referendum. 55.33(g) Except for a referendum held under subdivision 11, any55.34referendum under this section held on a day other than the first55.35Tuesday after the first Monday in November must be conducted by55.36mail in accordance with section 204B.46. Notwithstanding56.1paragraph (b) to the contrary, in the case of a referendum56.2conducted by mail under this paragraph, the notice required by56.3paragraph (b) must be prepared and delivered by first class mail56.4at least 20 days before the referendum.56.5 Sec. 16. Minnesota Statutes 2000, section 126C.17, 56.6 subdivision 10, is amended to read: 56.7 Subd. 10. [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 56.8Notwithstanding the provisions of subdivision 9,A school 56.9 referendum levyapproved after November 1, 1992, for taxes56.10payable in 1993 and thereafter,must be levied against the 56.11 referendum market value of all taxable property as defined in 56.12 section 126C.01, subdivision 3. Any referendum levy amount 56.13 subject to the requirements of this subdivision must be 56.14 certified separately to the county auditor under section 275.07. 56.15All other provisions of subdivision 9 that do not conflict56.16with this subdivision apply to referendum levies under this56.17subdivision.56.18 [EFFECTIVE DATE.] This section is effective for revenue for 56.19 fiscal year 2002. 56.20 Sec. 17. Minnesota Statutes 2000, section 126C.17, 56.21 subdivision 11, is amended to read: 56.22 Subd. 11. [REFERENDUM DATE.] (a) Except for a referendum 56.23 held under paragraph (b), any referendum under this section held 56.24 on a day other than the first Tuesday after the first Monday in 56.25 November must be conducted by mail in accordance with section 56.26 204B.46. Notwithstanding subdivision 9, paragraph (b), to the 56.27 contrary, in the case of a referendum conducted by mail under 56.28 this paragraph, the notice required by subdivision 9, paragraph 56.29 (b), must be prepared and delivered by first-class mail at least 56.30 20 days before the referendum. 56.31 (b) In addition to the referenda allowed in subdivision 9, 56.32 clause (a), the commissioner mayauthorize a referendum for a56.33different day.56.34(a) The commissioner maygrant authority to a district to 56.35 hold a referendum on a different day if the district is in 56.36 statutory operating debt and has an approved plan or has 57.1 received an extension from the department to file a plan to 57.2 eliminate the statutory operating debt. 57.3(b) The commissioner may grant authority for a district to57.4hold a referendum on a different day if: (1) the district will57.5conduct a bond election under chapter 475 on that same day; and57.6(2) the proceeds of the referendum will provide only additional57.7operating revenue complementing the purpose for which bonding57.8authority is sought. The commissioner may only grant authority57.9under this paragraph if the district demonstrates to the57.10commissioner's satisfaction that the district's ability to57.11operate the new facility or achieve efficiencies with the57.12purchases connected to the proceeds of the bond sale will be57.13significantly affected if the operating referendum is not57.14conducted until the November general election. Authority under57.15this paragraph expires November 30, 1998.57.16 (c) The commissioner must approve, deny, or modify each 57.17 district's request for a referendum levy on a different day 57.18 within 60 days of receiving the request from a district. 57.19 Sec. 18. Minnesota Statutes 2000, section 126C.23, 57.20 subdivision 5, is amended to read: 57.21 Subd. 5. [DATA REPORTING.] Each district must report to 57.22 the commissionerthe estimated amount of general education and57.23referendum initially allocated to each building under57.24subdivision 2 and the amount of any reallocations under57.25subdivision 3 by January 30 of the current fiscal year, andthe 57.26 actual amount of general education and referendum revenue 57.27 initially allocated to each building under subdivision 2 and the 57.28 amount of any reallocations under subdivision 3 by January 30 of 57.29 the next fiscal year. 57.30 Sec. 19. Minnesota Statutes 2000, section 126C.41, 57.31 subdivision 3, is amended to read: 57.32 Subd. 3. [RETIREMENT LEVIES.](1) In addition to the57.33excess levy authorized in 1976 any district within a city of the57.34first class which was authorized in 1975 to make a retirement57.35levy under Minnesota Statutes 1974, section 275.127 and chapter57.36422A may levy an amount per pupil unit which is equal to the58.1amount levied in 1975 payable 1976, under Minnesota Statutes58.21974, section 275.127 and chapter 422A, divided by the number of58.3pupil units in the district in 1976-1977.58.4(2) In 1979 and each year thereafter, any district which58.5qualified in 1976 for an extra levy under paragraph (1) shall be58.6allowed to levy the same amount as levied for retirement in 197858.7under this clause reduced each year by ten percent of the58.8difference between the amount levied for retirement in 197158.9under Minnesota Statutes 1971, sections 275.127 and 422.01 to58.10422.54 and the amount levied for retirement in 1975 under58.11Minnesota Statutes 1974, section 275.127 and chapter 422A.58.12(3)(a) In 1991 and each year thereafter, a district to 58.13 which this subdivision applies may levy an additional amount 58.14 required for contributions to the Minneapolis employees 58.15 retirement fund as a result of the maximum dollar amount 58.16 limitation on state contributions to the fund imposed under 58.17 section 422A.101, subdivision 3. The additional levy must not 58.18 exceed the most recent amount certified by the board of the 58.19 Minneapolis employees retirement fund as the district's share of 58.20 the contribution requirement in excess of the maximum state 58.21 contribution under section 422A.101, subdivision 3. 58.22(4)(b) For taxes payable in 1994 and thereafter, special 58.23 school district No. 1, Minneapolis, and independent school 58.24 district No. 625, St. Paul, may levy for the increase in the 58.25 employer retirement fund contributions, under Laws 1992, chapter 58.26 598, article 5, section 1. 58.27(5)(c) If the employer retirement fund contributions under 58.28 section 354A.12, subdivision 2a, are increased for fiscal year 58.29 1994 or later fiscal years, special school district No. 1, 58.30 Minneapolis, and independent school district No. 625, St. Paul, 58.31 may levy in payable 1994 or later an amount equal to the amount 58.32 derived by applying the net increase in the employer retirement 58.33 fund contribution rate of the respective teacher retirement fund 58.34 association between fiscal year 1993 and the fiscal year 58.35 beginning in the year after the levy is certified to the total 58.36 covered payroll of the applicable teacher retirement fund 59.1 association. If an applicable school district levies under this 59.2 paragraph, they may not levy under paragraph(4)(b). 59.3(6)(d) In addition to the levy authorized under paragraph 59.4(5)(c), special school district No. 1, Minneapolis, may also 59.5 levy payable in 1997 or later an amount equal to the 59.6 contributions under section 423A.02, subdivision 3, and may also 59.7 levy in payable 1994 or later an amount equal to the state aid 59.8 contribution under section 354A.12, subdivision 3b. Independent 59.9 school district No. 625, St. Paul, may levy payable in 1997 or 59.10 later an amount equal to the supplemental contributions under 59.11 section 423A.02, subdivision 3. 59.12 Sec. 20. Minnesota Statutes 2000, section 127A.41, 59.13 subdivision 5, is amended to read: 59.14 Subd. 5. [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 59.15 DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] Public schools shall 59.16 at all times be open to the inspection of the commissioner. The 59.17 accounts and records of any district must be open to inspection 59.18 by the state auditor, or the commissioner for the purpose of 59.19 audits conducted under this section. Each district shall keep 59.20 for a minimum of three years at least the following: (1) 59.21 identification of the annual session days held, together with a 59.22 record of the length of each session day, (2) a record of each 59.23 pupil's daily attendance, with entrance and withdrawal dates, 59.24 and (3) identification of thepupils transported who are59.25reported for transportation aidto-and-from school 59.26 transportation category for each pupil as defined in section 59.27 123B.92, subdivision 1. 59.28 Sec. 21. Minnesota Statutes 2000, section 127A.41, 59.29 subdivision 8, is amended to read: 59.30 Subd. 8. [APPROPRIATION TRANSFERS.] If a direct 59.31 appropriation from the general fund to the department for any 59.32 education aid or grant authorized in this chapter and chapters 59.33 122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 59.34 appropriations under sections 124D.135, 124D.16, 124D.20, 59.35 124D.21, 124D.22, 124D.52,124D.53124D.531, 124D.54, 124D.55, 59.36 and 124D.56, exceeds the amount required, the commissioner may 60.1 transfer the excess to any education aid or grant appropriation 60.2 that is insufficient. However, section 126C.20 applies to a 60.3 deficiency in the direct appropriation for general education 60.4 aid. Excess appropriations must be allocated proportionately 60.5 among aids or grants that have insufficient appropriations. The 60.6 commissioner of finance shall make the necessary transfers among 60.7 appropriations according to the determinations of the 60.8 commissioner. If the amount of the direct appropriation for the 60.9 aid or grant plus the amount transferred according to this 60.10 subdivision is insufficient, the commissioner shall prorate the 60.11 available amount among eligible districts. The state is not 60.12 obligated for any additional amounts. 60.13 Sec. 22. Laws 2000, chapter 489, article 2, section 34, is 60.14 amended to read: 60.15 Sec. 34. [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 60.16 (a) For fiscal year 2001 only, a school district's training 60.17 and experience replacement revenue equals the sum of the 60.18 following: 60.19 (1) the ratio of the amount of training and experience 60.20 revenue the district would have received for fiscal year 1999 60.21 calculated using the training and experience index in Minnesota 60.22 Statutes 1996, section 124A.04, to its resident pupil units for 60.23 that year, times the district's adjusted marginal cost pupil 60.24 units for fiscal year 2001, times .06; plus 60.25 (2) the difference between .47 times the training and 60.26 experience revenue the district would have received for fiscal 60.27 year 1999, calculated using the training and experience index in 60.28 Minnesota Statutes 1996, section 124A.04, and the amount 60.29 calculated in Minnesota Statutes, section 126C.10, subdivision 60.30 5, for fiscal year 2001, but not less than zero. 60.31 (b) This revenue is paid entirely in fiscal year 2001 based 60.32 on estimated data. 60.33 (c) By January 31, 2002, the department of children, 60.34 families, and learning shall recalculate the revenue for each 60.35 district using actual data, and shall adjust the general 60.36 education aid paid to school districts for fiscal year 2002 by 61.1 the amount of the difference between the estimated revenue and 61.2 the actual revenue. 61.3 Sec. 23. Laws 2000, chapter 489, article 2, section 37, is 61.4 amended to read: 61.5 Sec. 37. [SPARSITY CORRECTION REVENUE.] 61.6 Subdivision 1. [QUALIFICATION FOR REVENUE.] A school 61.7 district qualifies for sparsity correction revenue if it 61.8 qualifies for sparsity revenue, according to Minnesota Statutes, 61.9 section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 61.10 2001 and the amount of sparsity revenue it received in those 61.11 years is less than the amount it would have received in fiscal 61.12 year 2000 or 2001 prior to the passage of Laws 1999, chapter 61.13 241, article 1, sections 18 and 19. 61.14 Subd. 2. [FISCAL YEAR 2000 CALCULATION.] For fiscal year 61.15 2000, a school district's sparsity correction revenue equals the 61.16 difference between sparsity revenue in fiscal year 2000 61.17 calculated according to Laws 1999, chapter 241, article 1, 61.18 sections 18 and 19, and the sparsity revenue the district would 61.19 have received for fiscal year 2000 had these sections of law not 61.20 been approved. 61.21 Subd. 3. [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal 61.22 year 2001, a school district's sparsity correction revenue 61.23 equals .5 times the difference between sparsity revenue in 61.24 fiscal year 2001 calculated according to Laws 1999, chapter 241, 61.25 article 1, sections 18 and 19, and the sparsity revenue the 61.26 district would have received for fiscal year 2001 had these 61.27 sections of law not been approved. 61.28 (b) This revenue is paid entirely in fiscal year 2001 based 61.29 on estimated data. 61.30 (c) By January 31, 2002, the department of children, 61.31 families, and learning shall recalculate the revenue for each 61.32 district using actual data and shall adjust the general 61.33 education aid paid to school districts for fiscal year 2002 by 61.34 the amount of the difference between the estimated revenue and 61.35 the actual revenue. 61.36 Sec. 24. Laws 2000, chapter 489, article 2, section 39, 62.1 subdivision 2, is amended to read: 62.2 Subd. 2. [SPARSITY CORRECTION REVENUE.] For sparsity 62.3 correction revenue: 62.4 $1,030,000 ..... 2000 62.5 $ 515,000 ..... 2001 62.6 The 2000 appropriation is available until June 30, 2001. 62.7 [EFFECTIVE DATE.] This section is effective the day 62.8 following final enactment. 62.9 Sec. 25. Laws 2000, chapter 489, article 3, section 25, 62.10 subdivision 5, is amended to read: 62.11 Subd. 5. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 62.12 special education cross-subsidy revenue: 62.13 $ 7,898,000 ..... 2000 62.14 $18,396,000 ..... 2001 62.15 The 2000 appropriation is available until June 30, 2001. 62.16 [EFFECTIVE DATE.] This section is effective the day 62.17 following final enactment. 62.18 Sec. 26. [REPEALER.] 62.19 Minnesota Statutes 2000, section 126C.10, subdivision 23, 62.20 is repealed effective for revenue for fiscal year 2002. 62.21 ARTICLE 8 62.22 EDUCATION EXCELLENCE 62.23 Section 1. Minnesota Statutes 2000, section 124D.128, 62.24 subdivision 1, is amended to read: 62.25 Subdivision 1. [PROGRAM ESTABLISHED.] A learning year 62.26 program provides instruction throughout the year. A pupil may 62.27 participate in the program and accelerate attainment of grade 62.28 level requirements or graduation requirements. A learning year 62.29 program may begin after the close of the regular school year in 62.30 June. The program may be for students in one or more grade 62.31 levels from kindergarten through grade 12. 62.32Students may participate in the program if they reside in:62.33(1) a district that has been designated a learning year62.34site under subdivision 2;62.35(2) a district that is a member of the same education62.36district as a site; or63.1(3) a district that participates in the same area learning63.2center program as a site.63.3 Sec. 2. Minnesota Statutes 2000, section 124D.128, 63.4 subdivision 2, is amended to read: 63.5 Subd. 2. [COMMISSIONER DESIGNATION.] An area learning 63.6 center designated by the state must be a site. To be 63.7 designated, a district or center must demonstrate to the 63.8 commissioner that it will: 63.9 (1) provide a program of instruction that permits pupils to 63.10 receive instruction throughout the entire year; and 63.11 (2) maintain a record system that, for purposes of section 63.12 126C.05, permits identification of membership attributable to 63.13 pupils participating in the program. The record system and 63.14 identification must ensure that the program will not have the 63.15 effect of increasing the total number of pupil units 63.16 attributable to an individual pupil as a result of a learning 63.17 year program. The record system must include the date the pupil 63.18 originally enrolled in a learning year program, the pupil's 63.19 grade level, the date of each grade promotion, the average daily 63.20 membership generated in each grade level, the number of credits 63.21 or standards earned, and the number needed to graduate. 63.22 Sec. 3. Minnesota Statutes 2000, section 124D.128, 63.23 subdivision 3, is amended to read: 63.24 Subd. 3. [STUDENT PLANNING.] A district must inform all 63.25 pupils and their parents about the learning year program and 63.26 that participation in the program is optional. A continual 63.27 learning plan must be developed at least annually for each pupil 63.28 with the participation of the pupil, parent or guardian, 63.29 teachers, and other staff. Each participant must sign and date 63.30 the plan. The plan must specify the learning experiences that 63.31 must occureachduring the entire fiscal year and, for secondary 63.32 students, for graduation. The plan must include: 63.33 (1) the pupil's learning objectives and experiences; 63.34 (2) the assessment measurements used to evaluate each 63.35 objective; 63.36 (3) requirements for grade level progression; and 64.1 (4) for pupils generating more than one average daily 64.2 membership in a given grade, an indication of which objectives 64.3 were unmet. 64.4 The plan may be modified to conform to district schedule 64.5 changes. The district may not modify the plan if the 64.6 modification would result in delaying the student's time of 64.7 graduation. 64.8 Sec. 4. Minnesota Statutes 2000, section 124D.128, 64.9 subdivision 6, is amended to read: 64.10 Subd. 6. [REVENUE COMPUTATION AND REPORTING.] Aid and levy 64.11 revenue computations must be based on the total number of hours 64.12 of education programs for pupils in average daily membership for 64.13 each fiscal year.For purposes of section 126C.05,Average 64.14 daily membership shall be computedby dividing the total number64.15of hours of participation for the fiscal year by the minimum64.16number of hours for a year determined for the appropriate grade64.17levelaccording to section 126C.05, subdivision 15. Hours of 64.18 participation that occur after the close of the regular 64.19 instructional year and before July 1 must be attributed to the 64.20 following fiscal year.Thirty hours may be used for teacher64.21workshops, staff development, or parent-teacher conferences. As64.22part of each pilot program, the department and each district64.23must report and evaluate the changes needed to adjust the dates64.24of the fiscal year for aid and levy computation and fiscal year64.25reporting.For revenue computation purposes, the learning year 64.26 program shall generate revenue based on the formulas for the 64.27 fiscal year in which the services are provided. Dates of grade 64.28 promotion must be reported to the department for all pupils who 64.29 have participated in the program. 64.30State aid and levy revenue computation for the learning64.31year programs begins July 1, 1988, for fiscal year 1989.64.32 Sec. 5. Minnesota Statutes 2000, section 126C.05, 64.33 subdivision 15, is amended to read: 64.34 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 64.35 enrolled in a learning year program under section 124D.128, an 64.36 area learning center under sections 123A.05 and 123A.06, an 65.1 alternative program approved by the commissioner, or a contract 65.2 alternative program under section 124D.68, subdivision 3, 65.3 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 65.4 school year for a secondary student, more than 935 hours in a 65.5 school year for an elementary student, or more than 425 hours in 65.6 a school year for a kindergarten student without a disability, 65.7 that pupil may be counted as more than one pupil in average 65.8 daily membership. The amount in excess of one pupil must be 65.9 determined by the ratio of the number of hours of instruction 65.10 provided to that pupil in excess of: (i) the greater of 1,020 65.11 hours or the number of hours required for a full-time secondary 65.12 pupil in the district to 1,020 for a secondary pupil; (ii) the 65.13 greater of 935 hours or the number of hours required for a 65.14 full-time elementary pupil in the district to 935 for an 65.15 elementary pupil in grades 1 through 6; and (iii) the greater of 65.16 425 hours or the number of hours required for a full-time 65.17 kindergarten student without a disability in the district to 425 65.18 for a kindergarten student without a disability. Hours that 65.19 occur after the close of the instructional year in June shall be 65.20 attributable to the following fiscal year. A kindergarten 65.21 student must not be counted as more than 1.2 pupils in average 65.22 daily membership under this subdivision. 65.23 (b)(i) To receive general education revenue for a pupil in 65.24 an alternative program that has an independent study component, 65.25 a district must meet the requirements in this paragraph. The 65.26 district must develop,withfor the pupil, a continual learning 65.27 planfor the pupil. A district must allow a minor pupil's65.28parent or guardian to participate in developing the plan, if the65.29parent or guardian wants to participate. The plan must identify65.30the learning experiences and expected outcomes needed for65.31satisfactory credit for the year and for graduation. The plan65.32must be updated each yearconsistent with section 124D.128, 65.33 subdivision 3. Each school district that has a state-approved 65.34 public alternative program must reserve revenue in an amount 65.35 equal to at least 90 percent of the district average general 65.36 education revenue per pupil unit less compensatory revenue per 66.1 pupil unit times the number of pupil units generated by students 66.2 attending a state-approved public alternative program. The 66.3 amount of reserved revenue available under this subdivision may 66.4 only be spent for program costs associated with the 66.5 state-approved public alternative program. Compensatory revenue 66.6 must be allocated according to section 126C.15, subdivision 2. 66.7 (ii) General education revenue for a pupil in an approved 66.8 alternative program without an independent study component must 66.9 be prorated for a pupil participating for less than a full year, 66.10 or its equivalent. The district must develop for the pupil a 66.11 continual learning plan consistent with section 124D.128, 66.12 subdivision 3. Each school district that has a state-approved 66.13 public alternative program must reserve revenue in an amount 66.14 equal to at least 90 percent of the district average general 66.15 education revenue per pupil unit less compensatory revenue per 66.16 pupil unit times the number of pupil units generated by students 66.17 attending a state-approved public alternative program. The 66.18 amount of reserved revenue available under this subdivision may 66.19 only be spent for program costs associated with the 66.20 state-approved public alternative program. Compensatory revenue 66.21 must be allocated according to section 126C.15, subdivision 2. 66.22 (iii) General education revenue for a pupil in an approved 66.23 alternative program that has an independent study component must 66.24 be paid for each hour of teacher contact time and each hour of 66.25 independent study time completed toward a credit or graduation 66.26 standards necessary for graduation. Average daily membership 66.27 for a pupil shall equal the number of hours of teacher contact 66.28 time and independent study time divided by 1,020. 66.29 (iv) For an alternative program having an independent study 66.30 component, the commissioner shall require a description of the 66.31 courses in the program, the kinds of independent study involved, 66.32 the expected learning outcomes of the courses, and the means of 66.33 measuring student performance against the expected outcomes. 66.34 Sec. 6. [REPEALER.] 66.35 Minnesota Statutes 2000, section 124D.128, subdivision 7, 66.36 is repealed. 67.1 ARTICLE 9 67.2 SPECIAL EDUCATION 67.3 Section 1. Minnesota Statutes 2000, section 125A.27, 67.4 subdivision 15, is amended to read: 67.5 Subd. 15. [PARTHC STATE PLAN.] "PartHC state plan" 67.6 means the annual state plan application approved by the federal 67.7 government under the Individuals with Disabilities Education 67.8 Act, United States Code, title 20, section 1471 et seq. (PartH67.9 C, Public Law Number102-119105-117). 67.10 Sec. 2. Minnesota Statutes 2000, section 125A.76, 67.11 subdivision 2, is amended to read: 67.12 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 67.13 education base revenue equals the sum of the following amounts 67.14 computed using base year data: 67.15 (1) 68 percent of the salary of each essential person 67.16 employed in the district's program for children with a 67.17 disability during the fiscal year,not including the share of67.18salaries for personnel providing health-related services counted67.19in clause (8),whether the person is employed by one or more 67.20 districts or a Minnesota correctional facility operating on a 67.21 fee-for-service basis; 67.22 (2) for the Minnesota state academy for the deaf or the 67.23 Minnesota state academy for the blind, 68 percent of the salary 67.24 of each instructional aide assigned to a child attending the 67.25 academy, if that aide is required by the child's individual 67.26 education plan; 67.27 (3) for special instruction and services provided to any 67.28 pupil by contracting with public, private, or voluntary agencies 67.29 other than school districts, in place of special instruction and 67.30 services provided by the district, 52 percent of the difference 67.31 between the amount of the contract and thebasic revenue of the67.32district for that pupilamount of the basic revenue, as defined 67.33 in section 126C.10, subdivision 2, special education aid, and 67.34 any other aid earned on behalf of the child for the fraction of 67.35 the school day the pupil receives services under the contract; 67.36 (4) for special instruction and services provided to any 68.1 pupil by contracting for services with public, private, or 68.2 voluntary agencies other than school districts, that are 68.3 supplementary to a full educational program provided by the 68.4 school district, 52 percent of the amount of the contract for 68.5 that pupil; 68.6 (5) for supplies and equipment purchased or rented for use 68.7 in the instruction of children with a disability,not including68.8the portion of the expenses for supplies and equipment used to68.9provide health-related services counted in clause (8),an amount 68.10 equal to 47 percent of the sum actually expended by the 68.11 district, or a Minnesota correctional facility operating on a 68.12 fee-for-service basis, but not to exceed an average of $47 in 68.13 any one school year for each child with a disability receiving 68.14 instruction; 68.15 (6) for fiscal years 1997 and later, special education base 68.16 revenue shall include amounts under clauses (1) to (5) for 68.17 special education summer programs provided during the base year 68.18 for that fiscal year; and 68.19 (7) for fiscal years 1999 and later, the cost of providing 68.20 transportation services for children with disabilities under 68.21 section 123B.92, subdivision 1, paragraph (b), clause (4). 68.22 The department shall establish procedures through the 68.23 uniform financial accounting and reporting system to identify 68.24 and track all revenues generated from third-party billings as 68.25 special education revenue at the school district level; include 68.26 revenue generated from third-party billings as special education 68.27 revenue in the annual cross-subsidy report; and exclude 68.28 third-party revenue from calculation of excess cost aid to the 68.29 districts. 68.30 (b) If requested by a school district operating a special 68.31 education program during the base year for less than the full 68.32 fiscal year, or a school district in which is located a 68.33 Minnesota correctional facility operating on a fee-for-service 68.34 basis for less than the full fiscal year, the commissioner may 68.35 adjust the base revenue to reflect the expenditures that would 68.36 have occurred during the base year had the program been operated 69.1 for the full fiscal year. 69.2 (c) Notwithstanding paragraphs (a) and (b), the portion of 69.3 a school district's base revenue attributable to a Minnesota 69.4 correctional facility operating on a fee-for-service basis 69.5 during the facility's first year of operating on a 69.6 fee-for-service basis shall be computed using current year data. 69.7 Sec. 3. Laws 2000, chapter 489, article 3, section 24, is 69.8 amended to read: 69.9 Sec. 24. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 69.10 (a) For fiscal year 2000, a school district shall receive 69.11 an amount of revenue equal to $8.15 times the district's 69.12 adjusted marginal cost pupil units. 69.13 (b) For fiscal year 2001, a school district shall receive 69.14 an amount of revenue equal to $19 times the district's adjusted 69.15 marginal cost pupil units. Special education cross-subsidy 69.16 revenue must be used to pay for a district's unfunded special 69.17 education costs that are currently cross-subsidized by a 69.18 district's general education revenue. 69.19 (c) The fiscal year 2001 revenue is paid entirely in fiscal 69.20 year 2001 based on estimated data. By January 31, 2002, the 69.21 department of children, families, and learning shall recalculate 69.22 the revenue for each district using actual data, and shall 69.23 adjust the general education aid paid to school districts for 69.24 fiscal year 2002 by the amount of the difference between the 69.25 estimated revenue and the actual revenue. 69.26 ARTICLE 10 69.27 FACILITIES AND TECHNOLOGY 69.28 Section 1. Laws 2000, chapter 489, article 5, section 21, 69.29 is amended to read: 69.30 Sec. 21. [ONE-TIME DEFERRED MAINTENANCE AID.] 69.31 (a) For fiscal year 2001 only, a district's one-time 69.32 deferred maintenance aid is equal to: 69.33 (1) $10 times the adjusted marginal cost pupil units for 69.34 the school year; plus 69.35 (2) $21.90 times the adjusted marginal cost pupil units for 69.36 the school year for a district that does not qualify for 70.1 alternative facilities bonding under Minnesota Statutes, section 70.2 123B.59, or under Laws 1999, chapter 241, article 4, section 25. 70.3 (b) Aid received under this section must be used for 70.4 deferred maintenance, to make accessibility improvements, or to 70.5 make fire, safety, or health repairs. 70.6 (c) This aid is paid entirely in fiscal year 2001 based on 70.7 estimated data. By January 31, 2002, the department of 70.8 children, families, and learning shall recalculate the aid for 70.9 each district using actual data, and shall adjust the general 70.10 education aid paid to school districts for fiscal year 2002 by 70.11 the amount of the difference between the estimated aid and the 70.12 actual aid. 70.13 ARTICLE 11 70.14 NUTRITION PROGRAMS 70.15 Section 1. [124D.1156] [FAST BREAK TO LEARNING BREAKFAST 70.16 PROGRAM.] 70.17 Subdivision 1. [ELIGIBILITY.] The commissioner shall 70.18 provide funding to the 41 targeted breakfast program grant 70.19 recipients under Laws 1997, First Special Session chapter 4, 70.20 article 6, section 19, and then to public or nonpublic 70.21 elementary schools that participate in the federal School 70.22 Breakfast and Lunch Programs where at least 33 percent of the 70.23 lunches served to children during the second preceding school 70.24 year were provided free or at a reduced price. Schools shall 70.25 not charge student households for fast break to learning meals. 70.26 Schools shall encourage all children to eat a nutritious 70.27 breakfast, either at home or at school, and shall work to 70.28 eliminate barriers to participation at school such as inadequate 70.29 facilities and transportation. 70.30 Subd. 2. [PROGRAM.] The fast break to learning school 70.31 breakfast program enables schools participating in the federal 70.32 School Breakfast and Lunch Programs to cover the costs for 70.33 school breakfast without charging student households. 70.34 Subd. 3. [PROGRAM REIMBURSEMENT.] State funds are provided 70.35 to reimburse fast break to learning school breakfasts. Each 70.36 school year, the state must reimburse schools for the difference 71.1 between the per meal federal rate of reimbursement and the per 71.2 meal state average cost. Meals that are reimbursed at a federal 71.3 rate that is equal to or higher than the state average cost do 71.4 not qualify for fast break to learning funds. Schools must use 71.5 the funds to provide school breakfast to school children every 71.6 day school is in session. 71.7 Sec. 2. [124D.1195] [COMMODITY DONATED FOOD REVOLVING 71.8 FUND.] 71.9 A revolving fund is established for the purpose of 71.10 depositing cash received for commodity donated foods that have 71.11 been lost, damaged, recalled, or diverted for processing. The 71.12 state shall use the fund to issue payments for the value of the 71.13 lost, damaged, recalled, or diverted commodity donated foods and 71.14 related costs. 71.15 Sec. 3. Minnesota Statutes 2000, section 127A.45, 71.16 subdivision 12, is amended to read: 71.17 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 71.18 hundred percent of the aid for the current fiscal year must be 71.19 paid for the following aids: reimbursement for transportation 71.20 to post-secondary institutions, according to section 124D.09, 71.21 subdivision 22; aid for the program for adults with 71.22 disabilities, according to section 124D.56, subdivision 2; 71.23school lunch aid, according to section 124D.111;hearing 71.24 impaired support services aid, according to section 124D.57; 71.25 Indian post-secondary preparation grants according to section 71.26 124D.85; integration grants according to Laws 1989, chapter 329, 71.27 article 8, section 14, subdivision 3; and debt service aid 71.28 according to section 123B.53, subdivision 6. 71.29 Sec. 4. Minnesota Statutes 2000, section 127A.45, is 71.30 amended by adding a subdivision to read: 71.31 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 71.32 subdivision 3, the state shall pay 100 percent of the aid for 71.33 the current year according to sections 124D.111, 124D.115, and 71.34 124D.118 and 90 percent of the aid for the current year 71.35 according to section 124D.1156 based on submitted monthly 71.36 vouchers showing meals and milk served. The remaining ten 72.1 percent according to section 124D.1156 shall be paid by October 72.2 30 of the following fiscal year. 72.3 Sec. 5. [REPEALER.] 72.4 Minnesota Statutes 2000, section 124D.1155, is repealed. 72.5 ARTICLE 12 72.6 LIBRARIES 72.7 Section 1. Minnesota Statutes 2000, section 125B.20, 72.8 subdivision 1, is amended to read: 72.9 Subdivision 1. [ESTABLISHMENT; PURPOSE.] The purpose of 72.10 developing a statewide school district telecommunications 72.11 network is to expand the availability of a broad range of 72.12 courses and degrees to students throughout the state, to share 72.13 information resources to improve access, quality, and 72.14 efficiency, to improve learning, and distance cooperative 72.15 learning opportunities, and to promote the exchange of ideas 72.16 among students, parents, teachers, media generalists, 72.17 librarians, and the public. In addition, through the 72.18 development of this statewide telecommunications network 72.19 emphasizing cost-effective, competitive connections, all 72.20 Minnesotans will benefit by enhancing access to 72.21 telecommunications technology throughout the state. Network 72.22 connections for school districts and public libraries are 72.23 coordinated and fully integrated into the existing state 72.24 telecommunications and interactive television networks to 72.25 achieve comprehensive and efficient interconnectivity of school 72.26 districts and libraries to higher education institutions, state 72.27 agencies, other governmental units, agencies, and institutions 72.28 throughout Minnesota. A school district may apply to the 72.29 commissioner for a grant under subdivision 2, and a regional72.30public library may apply under subdivision 3. The Minnesota 72.31 education telecommunications council established in Laws 1995, 72.32 First Special Session chapter 3, article 12, section 7, shall 72.33 establish priorities for awarding grants, making grant awards, 72.34 and being responsible for the coordination of networks. 72.35 Sec. 2. [134.47] [REGIONAL LIBRARY TELECOMMUNICATIONS 72.36 AID.] 73.1 Subdivision 1. [ELIGIBILITY.] (a) A regional public 73.2 library system may apply for regional library telecommunications 73.3 aid. The aid must be used for data and video access costs and 73.4 other related costs to improve or maintain electronic access and 73.5 connect the library system with the state information 73.6 infrastructure administered by the department of administration 73.7 under section 16B.465. Priority shall be given to public 73.8 libraries that have not received access. To be eligible, a 73.9 regional public library system must be officially designated by 73.10 the commissioner of children, families, and learning as a 73.11 regional public library system as defined in section 134.34, 73.12 subdivision 3, and each of its participating cities and counties 73.13 must meet local support levels defined in section 134.34, 73.14 subdivision 1. A public library building that receives aid 73.15 under this section must be open a minimum of 20 hours per week. 73.16 (b) Aid received under this section may not be used to 73.17 substitute for any existing local funds allocated to provide 73.18 electronic access, equipment for library staff or the public, or 73.19 local funds dedicated to other library operations. 73.20 (c) An application for regional library telecommunications 73.21 aid must, at a minimum, contain information to document the 73.22 following: 73.23 (1) the connections are adequate and employ an open network 73.24 architecture that will ensure interconnectivity and 73.25 interoperability with school districts, post-secondary 73.26 education, or other governmental agencies; 73.27 (2) that the connection is established through the most 73.28 cost-effective means and that the regional library has explored 73.29 and coordinated connections through school districts, 73.30 post-secondary education, or other governmental agencies; 73.31 (3) that the regional library system has filed an e-rate 73.32 application; and 73.33 (4) other information, as determined by the commissioner of 73.34 children, families, and learning, to ensure that connections are 73.35 coordinated, efficient, and cost-effective, take advantage of 73.36 discounts, and meet applicable state standards. 74.1 The library system may include costs associated with 74.2 cooperative arrangements with post-secondary institutions, 74.3 school districts, and other governmental agencies. 74.4 Subd. 2. [AWARD OF FUNDS.] The commissioner of children, 74.5 families, and learning shall develop an application and a 74.6 reporting form and procedures for regional library 74.7 telecommunications aid. Aid shall be based on actual costs of 74.8 connections and funds available for this purpose. The 74.9 commissioner shall make payments directly to the regional public 74.10 library system. 74.11 Sec. 3. [REPEALER.] 74.12 Minnesota Statutes 2000, section 125B.20, subdivision 3, is 74.13 repealed. 74.14 ARTICLE 13 74.15 TECHNICAL AMENDMENTS 74.16 Section 1. Minnesota Statutes 2000, section 122A.26, 74.17 subdivision 3, is amended to read: 74.18 Subd. 3. [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 74.19 subdivision 2, a person who possesses a bachelor's or master's 74.20 degree in English as a second language, applied linguistics, or 74.21 bilingual education, or who possesses a related degree as 74.22 approved by the commissioner, shall be permitted to teach 74.23 English as a second language in an adult basic education program 74.24 that receives funding under section124D.53124D.531. 74.25 Sec. 2. Minnesota Statutes 2000, section 124D.11, 74.26 subdivision 5, is amended to read: 74.27 Subd. 5. [SPECIAL EDUCATION AID.] Except as provided in 74.28 subdivision 2, special education aid must be paid to a charter 74.29 school according to section 125A.76, as though it were a school 74.30 district. The charter school may charge tuition to the district 74.31 of residence as provided in section 125A.11.The charter school74.32shall allocate its special education levy equalization revenue74.33to the resident districts of the pupils attending the charter74.34school. The districts of residence shall levy as though they74.35were participating in a cooperative, as provided in section74.36125A.77, subdivision 3.75.1 Sec. 3. Minnesota Statutes 2000, section 124D.454, 75.2 subdivision 11, is amended to read: 75.3 Subd. 11. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 75.4 INTERMEDIATE DISTRICTS.] For purposes of this sectionand75.5section 125A.77, a cooperative center or an intermediate 75.6 district must allocate its approved expenditures for transition 75.7 programs for children with a disability among participating 75.8 school districts. Aid for transition programs for children with 75.9 a disability for services provided by a cooperative or 75.10 intermediate district shall be paid to the participating 75.11 districts. 75.12 Sec. 4. Minnesota Statutes 2000, section 125A.17, is 75.13 amended to read: 75.14 125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY 75.15 PLACED IN A FOSTER FACILITY.] 75.16 The legal residence of a child with a disability placed in 75.17 a foster facility for care and treatment is the district in 75.18 which the child resides when: 75.19 (1) parental rights have been terminated by court order; 75.20 (2) the parent or guardian is not living within the state; 75.21 (3) no other district residence can be established; or 75.22 (4) the parent or guardian having legal custody of the 75.23 child is an inmate of a Minnesota correctional facility or is a 75.24 resident of a halfway house under the supervision of the 75.25 commissioner of corrections;75.26is the district in which the child resides. The school board of 75.27 the district of residence must provide the same educational 75.28 program for the child as it provides for all resident children 75.29 with a disability in the district. 75.30 Sec. 5. Minnesota Statutes 2000, section 126C.17, 75.31 subdivision 6, is amended to read: 75.32 Subd. 6. [REFERENDUM EQUALIZATION LEVY.](a)A district's 75.33 referendum equalization levy for a referendum levied against the 75.34 referendum market value of all taxable property as defined in 75.35 section 126C.01, subdivision 3, equals the district's referendum 75.36 equalization revenue times the lesser of one or the ratio of the 76.1 district's referendum market value per resident marginal cost 76.2 pupil unit to $476,000. 76.3(b) A district's referendum equalization levy for a76.4referendum levied against the net tax capacity of all taxable76.5property equals the district's referendum equalization revenue76.6times the lesser of one or the ratio of the district's adjusted76.7net tax capacity per resident marginal cost pupil unit to $8,404.76.8 Sec. 6. Minnesota Statutes 2000, section 127A.41, 76.9 subdivision 9, is amended to read: 76.10 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 76.11 PROGRAMS.] If a direct appropriation from the general fund to 76.12 the department of children, families, and learning for an 76.13 education aid or grant authorized under section 124D.135, 76.14 124D.16, 124D.20, 124D.21, 124D.22, 124D.52,124D.53124D.531, 76.15 124D.54, 124D.55, or 124D.56 exceeds the amount required, the 76.16 commissioner of children, families, and learning may transfer 76.17 the excess to any education aid or grant appropriation that is 76.18 insufficiently funded under these sections. Excess 76.19 appropriations shall be allocated proportionately among aids or 76.20 grants that have insufficient appropriations. The commissioner 76.21 of finance shall make the necessary transfers among 76.22 appropriations according to the determinations of the 76.23 commissioner of children, families, and learning. If the amount 76.24 of the direct appropriation for the aid or grant plus the amount 76.25 transferred according to this subdivision is insufficient, the 76.26 commissioner shall prorate the available amount among eligible 76.27 districts. The state is not obligated for any additional 76.28 amounts. 76.29 Sec. 7. Laws 2000, chapter 489, article 7, section 15, 76.30 subdivision 3, is amended to read: 76.31 Subd. 3. [COOPERATIVE SECONDARY FACILITY; PLANNING AND 76.32 EXPENSES.] For a grant and administrative expenses to facilitate 76.33 planning for a cooperative secondary facility under a joint 76.34 powers agreement for school district Nos. 411, Balaton, 402, 76.35 Hendricks, 403, Ivanhoe, 404, Lake Benton, 418, Russell, 584, 76.36 Ruthton, and 409, Tyler: 77.1 $100,000 ..... 2001 77.2 This is a one-time appropriation. 77.3 Sec. 8. [REPEALER.] 77.4 Laws 2000, chapter 254, section 30; and Laws 2000, chapter 77.5 489, article 1, section 18, are repealed. 77.6 ARTICLE 14 77.7 ADVISORY COMMITTEES 77.8 Section 1. Minnesota Statutes 2000, section 124D.80, 77.9 subdivision 3, is amended to read: 77.10 Subd. 3. [EXPENSES.] Each committee must be reimbursed for 77.11 expenses according to section 15.059, subdivision 6. The 77.12 commissioner must determine the membership terms and the 77.13 duration of each committee, which expire no later than June 77.14 30,20012003. 77.15 Sec. 2. Minnesota Statutes 2000, section 124D.892, 77.16 subdivision 3, as amended by Laws 2001, chapter 7, section 32, 77.17 is amended to read: 77.18 Subd. 3. [ADVISORY BOARD.] The commissioner shall 77.19 establish an advisory board composed of: 77.20 (1) nine superintendents, eight of whom are selected by the 77.21 superintendents of the school districts located in whole or in 77.22 part within each of the eight metropolitan districts established 77.23 under section 473.123, subdivision 3c, and one who is from a 77.24 district outside the seven-county metropolitan area that is 77.25 considered racially isolated or that has a racially isolated 77.26 school site according to Minnesota Rules, part 3535.0110; 77.27 (2) one person each selected by the Indian affairs council, 77.28 the council on Asian-Pacific Minnesotans, the council on Black 77.29 Minnesotans, and the council on affairs of Chicano/Latino 77.30 people; and 77.31 (3) the superintendent of independent school district No. 77.32 709, Duluth. 77.33 The advisory board shall advise the office on complying 77.34 with the requirements under subdivision 1. The advisory board 77.35 may solicit comments from teachers, parents, students, and 77.36 interested community organizations and others. 78.1 The advisory board shall expire June 30, 2003. 78.2 Sec. 3. [124D.893] [STATE MULTICULTURAL EDUCATION ADVISORY 78.3 COMMITTEE.] 78.4 (a) The commissioner shall appoint a state multicultural 78.5 education advisory committee to advise the department and the 78.6 state board on multicultural education. The committee must have 78.7 12 members and be composed of representatives from among the 78.8 following groups and community organizations: African-American, 78.9 Asian-Pacific, Hispanic, and American Indian. The committee 78.10 shall expire June 30, 2003. 78.11 (b) The state committee shall provide information and 78.12 recommendations on: 78.13 (1) department procedures for reviewing and approving 78.14 district plans and disseminating information on multicultural 78.15 education; 78.16 (2) department procedures for improving inclusive education 78.17 plans, curriculum and instruction improvement plans, and 78.18 performance-based assessments; 78.19 (3) developing learner outcomes which are multicultural; 78.20 and 78.21 (4) other recommendations that will further inclusive, 78.22 multicultural education. 78.23 (c) The committee shall also participate in determining the 78.24 criteria for and awarding the grants established under Laws 78.25 1993, chapter 224, article 8, section 22, subdivision 8. 78.26 Sec. 4. Minnesota Statutes 2000, section 127A.30, is 78.27 amended to read: 78.28 127A.30 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 78.29 A state permanent school fund advisory committee is 78.30 established to advise the department of natural resources on the 78.31 management of permanent school fund land, which is held in trust 78.32 for the school districts of the state. The advisory committee 78.33 must consist of the following persons or their designees: the 78.34 chairs of the education committees of the legislature, the 78.35 chairs of the senate committee on finance and house committee on 78.36 ways and means, the commissioner of children, families, and 79.1 learning, one superintendent from a nonmetropolitan district, 79.2 and one superintendent from a metropolitan area district. The 79.3 school district superintendents shall be appointed by the 79.4 commissioner of children, families, and learning. The advisory 79.5 committee shall expire June 30, 2003. 79.6 The advisory committee shall review the policies of the 79.7 department of natural resources and current statutes on 79.8 management of school trust fund lands at least semiannually and 79.9 shall recommend necessary changes in statutes, policy, and 79.10 implementation in order to ensure provident utilization of the 79.11 permanent school fund lands. 79.12 Sec. 5. Minnesota Statutes 2000, section 134.31, is 79.13 amended by adding a subdivision to read: 79.14 Subd. 6. [ADVISORY COMMITTEE.] The commissioner shall 79.15 appoint an advisory committee of five members to advise the 79.16 staff of the Minnesota library for the blind and physically 79.17 handicapped on long-range plans and library services. Members 79.18 shall be people who use the library. Section 15.059 governs 79.19 this committee except that the committee shall expire on June 79.20 30, 2003. 79.21 ARTICLE 15 79.22 HIGHER EDUCATION 79.23 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 79.24 The sums in the columns marked "APPROPRIATIONS" are 79.25 appropriated from the general fund, or other named fund, to the 79.26 agencies and for the purposes specified in this article. The 79.27 listing of an amount under the figure "2002" or "2003" in this 79.28 article indicates that the amount is appropriated to be 79.29 available for the fiscal year ending June 30, 2002, or June 30, 79.30 2003, respectively. "The first year" is fiscal year 2002. "The 79.31 second year" is fiscal year 2003. "The biennium" is fiscal 79.32 years 2002 and 2003. 79.33 SUMMARY BY FUND 79.34 BIENNIAL 79.35 2002 2003 TOTAL 79.36 General $1,364,868,000 $1,428,892,000 $2,793,760,000 80.1 Health Care 80.2 Access 2,537,000 2,537,000 5,074,000 80.3 SUMMARY BY AGENCY - ALL FUNDS 80.4 2002 2003 TOTAL 80.5 Higher Education Services 80.6 Office 156,258,000 164,796,000 321,054,000 80.7 Board of Trustees of the 80.8 Minnesota State Colleges 80.9 and Universities 588,407,000 615,967,000 1,204,374,000 80.10 Board of Regents of the 80.11 University of 80.12 Minnesota 621,103,000 649,029,000 1,270,132,000 80.13 Mayo Medical 80.14 Foundation 1,637,000 1,637,000 3,274,000 80.15 APPROPRIATIONS 80.16 Available for the Year 80.17 Ending June 30 80.18 2002 2003 80.19 Sec. 2. HIGHER EDUCATION 80.20 SERVICES OFFICE 80.21 Subdivision 1. Total 80.22 Appropriation $156,258,000 $164,796,000 80.23 The amounts that may be spent from this 80.24 appropriation for each purpose are 80.25 specified in the following subdivisions. 80.26 Notwithstanding Minnesota Statutes, 80.27 section 136A.1211, savings in the state 80.28 grant program in fiscal years 2002 and 80.29 2003 resulting from any increases in 80.30 the maximum federal grant from $3,300 80.31 up to $3,750 must be used as provided 80.32 in this section. 80.33 Subd. 2. State Grants 80.34 123,274,000 131,744,000 80.35 If the appropriation in this 80.36 subdivision for either year is 80.37 insufficient, the appropriation for the 80.38 other year is available for it. 80.39 The legislature intends that the higher 80.40 education services office make full 80.41 grant awards in each year of the 80.42 biennium. 80.43 For the biennium, the private 80.44 institution tuition maximum shall be 80.45 $8,764 in the first year and $8,983 in 80.46 the second year for four-year 80.47 institutions and $6,744 in the first 80.48 year and $6,913 in the second year for 80.49 two-year institutions. 80.50 This appropriation contains money to 80.51 set the living and miscellaneous 80.52 expense allowance at $5,405 in each 80.53 year. 81.1 Notwithstanding Minnesota Statutes, 81.2 section 136A.1211, savings in the state 81.3 grant program in fiscal years 2002 and 81.4 2003 resulting from any increase in the 81.5 maximum federal grant over $3,750 or 81.6 from any other source must be used to 81.7 provide additional decreases in the 81.8 family responsibility for independent 81.9 students and to increase funding for 81.10 child care grants under Minnesota 81.11 Statutes, section 136A.125. The higher 81.12 education services office may allocate 81.13 savings between the two purposes. 81.14 Subd. 3. Interstate Tuition 81.15 Reciprocity 81.16 5,250,000 5,250,000 81.17 If the appropriation in this 81.18 subdivision for either year is 81.19 insufficient, the appropriation for the 81.20 other year is available to meet 81.21 reciprocity contract obligations. 81.22 Subd. 4. State Work Study 81.23 12,444,000 12,444,000 81.24 Subd. 5. Minitex Library Program 81.25 4,968,000 4,968,000 81.26 Subd. 6. Learning Network of Minnesota 81.27 5,179,000 5,179,000 81.28 Subd. 7. Income Contingent Loans (GRIP) 81.29 The higher education services office 81.30 shall administer an income contingent 81.31 loan repayment program to assist 81.32 graduates of Minnesota schools in 81.33 medicine, dentistry, pharmacy, 81.34 chiropractic medicine, public health, 81.35 and veterinary medicine, and Minnesota 81.36 residents graduating from optometry and 81.37 osteopathy programs. Applicant data 81.38 collected by the higher education 81.39 services office for this program may be 81.40 disclosed to a consumer credit 81.41 reporting agency under the same 81.42 conditions as apply to the supplemental 81.43 loan program under Minnesota Statutes, 81.44 section 136A.162. No new applicants 81.45 may be accepted after June 30, 1995. 81.46 Subd. 8. Minnesota College 81.47 Savings Plan 81.48 1,520,000 1,520,000 81.49 Subd. 9. Agency Administration 81.50 3,623,000 3,691,000 81.51 This appropriation includes base 81.52 funding to foster post-secondary 81.53 attendance by providing outreach 81.54 services to historically underserved 81.55 groups of Minnesota elementary and 82.1 secondary students. The office may 82.2 retain the entire appropriation or 82.3 contract with other agencies or 82.4 nonprofit organizations for specific 82.5 services in this effort. 82.6 Subd. 10. Balances Forward 82.7 An unencumbered balance in the first 82.8 year under a subdivision in this 82.9 section does not cancel but is 82.10 available for the second year. 82.11 Subd. 11. Transfers 82.12 The higher education services office 82.13 may transfer unencumbered balances from 82.14 the appropriations in this section to 82.15 the state grant appropriation, the 82.16 interstate tuition reciprocity 82.17 appropriation, the child care 82.18 appropriation, and the state work-study 82.19 appropriation. 82.20 Sec. 3. BOARD OF TRUSTEES OF THE 82.21 MINNESOTA STATE COLLEGES AND UNIVERSITIES 82.22 Subdivision 1. Total 82.23 Appropriation 588,407,000 615,967,000 82.24 The amounts that may be spent from this 82.25 appropriation for each purpose are 82.26 specified in the following subdivisions. 82.27 The legislature intends that state 82.28 appropriations be used to strengthen 82.29 and support education of students. To 82.30 this end, all money appropriated in 82.31 this section, except that in direct 82.32 support of system office activities, 82.33 shall be allocated by the board 82.34 directly to the colleges and 82.35 universities. 82.36 Subd. 2. Estimated Expenditures 82.37 and Appropriations 82.38 The legislature estimates that 82.39 instructional expenditures will be 82.40 $778,478,000 in the first year and 82.41 $816,066,000 in the second year. The 82.42 legislature estimates that 82.43 noninstructional expenditures will be 82.44 $69,421,000 in the first year and 82.45 $71,923,000 in the second year. 82.46 In each year of the biennium, the board 82.47 of trustees must increase the 82.48 percentage of the total general fund 82.49 expenditures for direct instruction and 82.50 academic support, as reported in the 82.51 federal Integrated Post Secondary 82.52 Education Data System. By February 15 82.53 of each year, the board must report to 82.54 the higher education finance committees 82.55 of the legislature on the percentage of 82.56 total general fund expenditures for 82.57 each institution and for the system 82.58 spent on direct instruction and on 82.59 academic support during the previous 82.60 fiscal year. 83.1 During the biennium, neither the board 83.2 nor campuses shall plan or develop 83.3 doctoral level programs or degrees 83.4 until after they have received the 83.5 recommendation of the house and senate 83.6 committees on education, finance, and 83.7 ways and means. 83.8 During the biennium, technical and 83.9 consolidated colleges shall make use of 83.10 instructional advisory committees 83.11 consisting of employers, students, and 83.12 instructors. The instructional 83.13 advisory committee shall be consulted 83.14 when a technical program is proposed to 83.15 be created, modified, or eliminated. 83.16 If a decision is made to eliminate a 83.17 program, a college shall adequately 83.18 notify students and make plans to 83.19 assist students affected by the closure. 83.20 The board may waive tuition for 83.21 eligible Southwest Asia veterans, as 83.22 provided in Minnesota Statutes, section 83.23 136F.28. 83.24 Sec. 4. BOARD OF REGENTS OF THE 83.25 UNIVERSITY OF MINNESOTA 83.26 Subdivision 1. Total 83.27 Appropriation 621,103,000 649,029,000 83.28 The amounts that may be spent from this 83.29 appropriation for each purpose are 83.30 specified in the following subdivisions. 83.31 Subd. 2. Operations and 83.32 Maintenance 545,307,000 573,233,000 83.33 Estimated Expenditures and 83.34 Appropriations 83.35 The legislature estimates that 83.36 instructional expenditures will be 83.37 $477,914,000 in the first year and 83.38 $506,519,000 in the second year. 83.39 The legislature estimates that 83.40 noninstructional expenditures will be 83.41 $226,698,000 in the first year and 83.42 $235,554,000 in the second year. 83.43 Subd. 3. Health Care 83.44 Access Fund 2,537,000 2,537,000 83.45 This appropriation is from the health 83.46 care access fund for primary care 83.47 education initiatives. 83.48 Subd. 4. Special 83.49 Appropriation 73,259,000 73,259,000 83.50 The amounts expended for each program 83.51 in the four categories of special 83.52 appropriations shall be separately 83.53 identified in the 2003 biennial budget 83.54 document. 83.55 (a) Agriculture and Extension Service 83.56 58,338,000 58,338,000 84.1 This appropriation is for the 84.2 Agricultural Experiment Station, 84.3 Minnesota Extension Service. 84.4 Any salary increases granted by the 84.5 University to personnel paid from the 84.6 Minnesota Extension appropriation must 84.7 not result in a reduction of the county 84.8 responsibility for the salary payments. 84.9 During the biennium, the University 84.10 shall maintain an advisory council 84.11 system for each experiment station. 84.12 The advisory councils must be broadly 84.13 representative of the range of size and 84.14 income distribution of farms and 84.15 agribusinesses and must not 84.16 disproportionately represent those from 84.17 the upper half of the size and income 84.18 distributions. 84.19 (b) Health Sciences 84.20 5,846,000 5,846,000 84.21 This appropriation is for the rural 84.22 physicians associates program, the 84.23 Veterinary Diagnostic Laboratory, 84.24 health sciences research, dental care, 84.25 and the Biomedical Engineering Center. 84.26 (c) Institute of Technology 84.27 1,645,000 1,645,000 84.28 This appropriation is for the 84.29 Geological Survey and the Talented 84.30 Youth Mathematics Program. 84.31 (d) System Specials 84.32 7,430,000 7,430,000 84.33 This appropriation is for general 84.34 research, student loans matching money, 84.35 industrial relations education, Natural 84.36 Resources Research Institute, Center 84.37 for Urban and Regional Affairs, Bell 84.38 Museum of Natural History, and the 84.39 Humphrey exhibit. 84.40 Sec. 5. MAYO MEDICAL FOUNDATION 84.41 Subdivision 1. Total 84.42 Appropriation 1,637,000 1,637,000 84.43 The amounts that may be spent from this 84.44 appropriation for each purpose are 84.45 specified in the following subdivisions. 84.46 Subd. 2. Medical School 84.47 605,000 605,000 84.48 The state of Minnesota must pay a 84.49 capitation of $14,405 each year for 84.50 each student who is a resident of 84.51 Minnesota. The appropriation may be 84.52 transferred between years of the 84.53 biennium to accommodate enrollment 84.54 fluctuations. 85.1 The legislature intends that during the 85.2 biennium the Mayo foundation use the 85.3 capitation money to increase the number 85.4 of doctors practicing in rural areas in 85.5 need of doctors. 85.6 Subd. 3. Family Practice and 85.7 Graduate Residency Program 85.8 625,000 625,000 85.9 The state of Minnesota must pay a 85.10 capitation of $22,313 for 26 residents 85.11 each year and $44,627 for one resident 85.12 each year. 85.13 Subd. 4. St. Cloud Hospital-Mayo 85.14 Family Practice Residency Program 85.15 407,000 407,000 85.16 This appropriation is to the Mayo 85.17 foundation to support 12 resident 85.18 physicians in the first year and 12 85.19 resident physicians in the second year 85.20 in the St. Cloud Hospital-Mayo Family 85.21 Practice Residency Program. The 85.22 program shall prepare doctors to 85.23 practice primary care medicine in the 85.24 rural areas of the state. It is 85.25 intended that this program will improve 85.26 health care in rural communities, 85.27 provide affordable access to 85.28 appropriate medical care, and manage 85.29 the treatment of patients in a more 85.30 cost-effective manner. 85.31 Sec. 6. Minnesota Statutes 2000, section 62J.694, 85.32 subdivision 2, is amended to read: 85.33 Subd. 2. [EXPENDITURES.] (a) Up to five percent of the 85.34 fair market value of the fund is appropriated for medical 85.35 education activities in the state of Minnesota. The 85.36 appropriations are to be transferred quarterly for the purposes 85.37 identified in the following paragraphs. 85.38 (b) For fiscal year 2000, 70 percent of the appropriation 85.39 in paragraph (a) is for transfer to the board of regents for the 85.40 instructional costs of health professional programs at the 85.41 academic health center and affiliated teaching institutions, and 85.42 30 percent of the appropriation is for transfer to the 85.43 commissioner of health to be distributed for medical education 85.44 under section 62J.692. 85.45 (c) For fiscal year 2001, 49 percent of the appropriation 85.46 in paragraph (a) is for transfer to the board of regents for the 85.47 instructional costs of health professional programs at the 86.1 academic health center and affiliated teaching institutions, and 86.2 51 percent is for transfer to the commissioner of health to be 86.3 distributed for medical education under section 62J.692. 86.4 (d) For fiscal year 2002, and each year thereafter, 42 86.5 percent of the appropriation in paragraph (a)may be86.6appropriated by another lawis for the instructional costs of 86.7 health professional programs at publicly funded academic health 86.8 centers and affiliated teaching institutions, and 58 percent is 86.9 for transfer to the commissioner of health to be distributed for 86.10 medical education under section 62J.692. 86.11 (e) A maximum of $150,000 of each annual appropriation to 86.12 the commissioner of health in paragraph (d) may be used by the 86.13 commissioner for administrative expenses associated with 86.14 implementing section 62J.692. 86.15 Sec. 7. Minnesota Statutes 2000, section 136A.101, 86.16 subdivision 5a, is amended to read: 86.17 Subd. 5a. [ASSIGNED FAMILY RESPONSIBILITY.] "Assigned 86.18 family responsibility" means the amount of a family contribution 86.19 to a student's cost of attendance, as determined by a federal 86.20 need analysis, except that, beginning for the 1998-1999 academic 86.21 year, up to $25,000 in savings and other assets shall be 86.22 subtracted from the federal calculation of net worth before 86.23 determining the contribution. For dependent students, the 86.24 assigned family responsibility is the parental contribution. 86.25 For independent students with dependents other than a spouse, 86.26 the assigned family responsibility is the student contribution. 86.27 For independent students without dependents other than a spouse, 86.28 the assigned family responsibility is 80 percent of the student 86.29 contribution. Beginning in fiscal year 2002, the assigned 86.30 family responsibility for all independent students is reduced an 86.31 additional ten percent. 86.32 Sec. 8. Minnesota Statutes 2000, section 136A.121, 86.33 subdivision 6, is amended to read: 86.34 Subd. 6. [COST OF ATTENDANCE.] (a) The recognized cost of 86.35 attendance consists of allowances specified in law forroom and86.36boardliving and miscellaneous expenses, and 87.1 (1) for public institutions, the actual tuition and fees 87.2 charged by the institution; or 87.3 (2) for private institutions, an allowance for tuition and 87.4 fees equal to the lesser of the actual tuition and fees charged 87.5 by the institution, or the private institution tuition and fee 87.6 maximums established in law. 87.7 (b) For the purpose of paragraph (a), clause (2), the 87.8 private institution tuition and fee maximum for two- and 87.9 four-year, private, residential, liberal arts, degree-granting 87.10 colleges and universities must be the same. 87.11 (c) For a studentattendingregistering for less than full 87.12 time, the office shall prorate therecognized cost of attendance87.13 living and miscellaneous expense allowance to the actual number 87.14 of credits for which the student is enrolled. 87.15 The recognized cost of attendance for a student who is 87.16 confined to a Minnesota correctional institution shall consist 87.17 of the tuition and fee component in paragraph (a), clause (1) or 87.18 (2), with no allowance for living and miscellaneous expenses. 87.19 Sec. 9. Minnesota Statutes 2000, section 136A.121, 87.20 subdivision 9, is amended to read: 87.21 Subd. 9. [AWARDS.] An undergraduate student who meets the 87.22 office's requirements is eligible to apply for and receive a 87.23 grant in any year of undergraduate study unless the student has 87.24 obtained a baccalaureate degree or previously has been enrolled 87.25 full time or the equivalent foreightten semesters or1287.26quartersthe equivalent, excluding courses taken from a 87.27 Minnesota school or post-secondary institution which is not 87.28 participating in the state grant program and from which a 87.29 student transferred no credit. 87.30 Sec. 10. Minnesota Statutes 2000, section 136A.241, is 87.31 amended to read: 87.32 136A.241 [EDVEST PROGRAMMINNESOTA COLLEGE SAVINGS PLAN 87.33 ESTABLISHED.] 87.34An Edvest savings programA college savings plan known as 87.35 the Minnesota college savings plan is established. In 87.36 establishing thisprogramplan, the legislature seeks to 88.1 encourage individuals to save for post-secondary education by: 88.2 (1) providing a qualified state tuitionprogramplan under 88.3 federal tax law; 88.4 (2) providing matching grants for contributions to the 88.5programplan by low- and middle-income families; and 88.6 (3) by encouraging individuals, foundations, and businesses 88.7 to provide additional grants to participating students. 88.8 Sec. 11. Minnesota Statutes 2000, section 136A.242, is 88.9 amended to read: 88.10 136A.242 [DEFINITIONS.] 88.11 Subdivision 1. [GENERAL.] For purposes of sections 88.12 136A.241 to136A.245136A.246, the following terms have the 88.13 meanings given. 88.14 Subd. 1a. [ACCOUNT.] "Account" means the formal record of 88.15 transactions relating to a Minnesota college savings plan 88.16 beneficiary. 88.17 Subd. 1b. [ACCOUNT OWNER.] "Account owner" means a person 88.18 who enters into a participation agreement and is entitled to 88.19 select or change the beneficiary of an account or to receive 88.20 distributions from the account for other than payment of 88.21 qualified higher education expenses. 88.22 Subd. 2. [ADJUSTED GROSS INCOME.] "Adjusted gross income" 88.23 means adjusted gross income as defined in section 62 of the 88.24 Internal Revenue Code. 88.25 Subd. 3. [BENEFICIARY.] "Beneficiary" means the designated 88.26 beneficiary for the account, as defined in section 529(e)(1) of 88.27 the Internal Revenue Code. 88.28 Subd. 4. [BOARD.] "Board" means the state board of 88.29 investment. 88.30 Subd. 4a. [CONTINGENT ACCOUNT OWNER.] "Contingent account 88.31 owner" means the individual designated as the account owner, 88.32 either in the participation agreement or pursuant to a separate 88.33 Minnesota college savings plan form, in the event of the death 88.34 of the account owner. 88.35 Subd. 4b. [CONTRIBUTION.] "Contribution" means a payment 88.36 directly allocated to an account for the benefit of a 89.1 beneficiary. For a rollover distribution, only the portion of 89.2 the rollover amount that constitutes investment in the account 89.3 is treated as a contribution to the account. 89.4 Subd. 5. [DIRECTOR.] "Director" means the director of the 89.5 higher education services office. 89.6 Subd. 5a. [DISTRIBUTION.] "Distribution" means a 89.7 disbursement from an account to the account owner, the 89.8 beneficiary, or the beneficiary's estate or to an eligible 89.9 educational institution. Distribution does not include a change 89.10 of beneficiary to a member of the family of the prior 89.11 beneficiary or a rollover distribution. 89.12 Subd. 5b. [DORMANT ACCOUNT.] "Dormant account" means an 89.13 account that has not received contributions for at least three 89.14 consecutive years and the account statements mailed to the 89.15 account owner have been returned as undeliverable. 89.16 Subd. 5c. [EARNINGS.] "Earnings" means the total account 89.17 balance minus the investment in the account. 89.18 Subd. 5d. [ELIGIBLE EDUCATIONAL INSTITUTION.] "Eligible 89.19 educational institution" means an institution as defined in 89.20 section 529(e)(5) of the Internal Revenue Code. 89.21 Subd. 6. [EXECUTIVE DIRECTOR.] "Executive director" means 89.22 the executive director of the state board of investment. 89.23 Subd. 6a. [INACTIVE ACCOUNT WITH A MATCHING GRANT 89.24 ACCOUNT.] "Inactive account with a matching grant account" means 89.25 an account in which the beneficiary: 89.26 (1) is not the account owner, the beneficiary has reached 89.27 28 years of age, and the beneficiary has not informed the plan 89.28 administrator that the beneficiary is enrolled in an eligible 89.29 educational institution; 89.30 (2) is the account owner, the beneficiary was over the age 89.31 of 18 when the account was opened, and the beneficiary has not 89.32 informed the program administrator that the beneficiary is 89.33 enrolled in an eligible educational institution within ten years 89.34 of the date of opening the account; or 89.35 (3) is the account owner, the beneficiary was a minor when 89.36 the account was opened, the account becomes inactive when the 90.1 beneficiary turns 28 years of age, and the beneficiary has not 90.2 informed the program administrator that the beneficiary is 90.3 enrolled in an eligible educational institution. 90.4 Subd. 7. [INTERNAL REVENUE CODE.] "Internal Revenue Code" 90.5 means the Internal Revenue Code of 1986, as amended. 90.6 Subd. 7a. [INVESTMENT IN THE ACCOUNT.] "Investment in the 90.7 account" means the sum of all contributions made to an account 90.8 by a particular date minus the aggregate amount of contributions 90.9 included in distributions or rollover distributions, if any, 90.10 made from the account as of that date. 90.11 Subd. 7b. [MATCHING GRANT.] "Matching grant" means an 90.12 amount added to a matching grant account under section 136A.245. 90.13 Subd. 7c. [MATCHING GRANT ACCOUNT.] "Matching grant 90.14 account" means an account owned by the state that contains 90.15 matching grants and earnings. 90.16 Subd. 7d. [MAXIMUM ACCOUNT BALANCE LIMIT.] "Maximum 90.17 account balance limit" means the amount established by the 90.18 office under section 136A.2441, subdivision 8, paragraph (d). 90.19 Subd. 7e. [MEMBER OF THE FAMILY.] "Member of the family" 90.20 means an individual who is related to the beneficiary as defined 90.21 in section 529(e)(2) of the Internal Revenue Code. 90.22 Subd. 7f. [NONQUALIFIED DISTRIBUTION.] "Nonqualified 90.23 distribution" means a distribution made from an account other 90.24 than (1) a qualified distribution; or (2) a distribution due to 90.25 the death or disability of, or scholarship to, a beneficiary. 90.26 Subd. 8. [OFFICE.] "Office" means the higher education 90.27 services office. 90.28 Subd. 8a. [PARTICIPATION AGREEMENT.] "Participation 90.29 agreement" means an agreement to participate in the Minnesota 90.30 college savings plan between an account owner and the state, 90.31 through its agencies, the office, and the board. 90.32 Subd. 8b. [PENALTY.] "Penalty" means the amount 90.33 established by the office that is applied against the earnings 90.34 portion of a nonqualified distribution. The amount established 90.35 by the office must be the minimum required to be de minimis 90.36 under section 529 of the Internal Revenue Code. The office must 91.1 impose, collect, and apply penalties consistent with section 529 91.2 of the Internal Revenue Code. 91.3 Subd. 8c. [PERSON.] "Person" means an individual, trust, 91.4 estate, partnership, association, company, corporation, or the 91.5 state. 91.6 Subd. 9. [PROGRAMPLAN.]"Program" or"EdvestPlan" 91.7 refers to theprogramplan established under sections 136A.241 91.8 to136A.245136A.246. 91.9 Subd. 10. [PLAN ADMINISTRATOR.] "Plan administrator" means 91.10 the person selected by the office and the board to administer 91.11 the daily operations of the Minnesota college savings plan and 91.12 to provide marketing, recordkeeping, investment management, and 91.13 other services for the plan. 91.14 Subd. 11. [QUALIFIED DISTRIBUTION.] "Qualified 91.15 distribution" means a distribution made from an account for 91.16 qualified higher education expenses of the beneficiary. 91.17 Subd. 12. [QUALIFIED HIGHER EDUCATION 91.18 EXPENSES.] "Qualified higher education expenses" means expenses 91.19 as defined in section 529(e)(3) of the Internal Revenue Code. 91.20 Subd. 13. [ROLLOVER DISTRIBUTION.] "Rollover distribution" 91.21 means a transfer of funds made: 91.22 (1) from one account to another account within 60 days of a 91.23 distribution; 91.24 (2) from another qualified state tuition program to an 91.25 account within 60 days of the distribution; or 91.26 (3) to another qualified state tuition program from an 91.27 account within 60 days of a distribution. 91.28 Each transfer of funds must be made for the benefit of a 91.29 new beneficiary who is a member of the family of the prior 91.30 beneficiary. 91.31 Subd. 14. [SCHOLARSHIP.] "Scholarship" means a 91.32 scholarship, allowance, or payment under section 529(b)(3)(C) of 91.33 the Internal Revenue Code. 91.34 Subd. 15. [STATE.] "State" means the state of Minnesota 91.35 and any Minnesota agency or political subdivision of Minnesota. 91.36 Subd. 16. [TOTAL ACCOUNT BALANCE.] "Total account balance" 92.1 means the amount in an account on a particular date or the fair 92.2 market value of an account on a particular date. 92.3 Sec. 12. Minnesota Statutes 2000, section 136A.243, 92.4 subdivision 1, is amended to read: 92.5 Subdivision 1. [RESPONSIBILITIES.] (a) The director shall 92.6 establish the rules, terms, and conditions for theprogramplan, 92.7 subject to the requirements of sections 136A.241 to 92.8136A.245136A.246. 92.9 (b) The director shall prescribe the application forms, 92.10 procedures, and other requirements that apply to theprogram92.11 plan. 92.12 Sec. 13. Minnesota Statutes 2000, section 136A.243, 92.13 subdivision 2, is amended to read: 92.14 Subd. 2. [ACCOUNTS-TYPEPROGRAMPLAN.] The office must 92.15 establish theprogramplan and theprogramplan must be operated 92.16 as an accounts-typeprogramplan that permitsindividuals92.17 persons to save for qualified higher educationcostsexpenses 92.18 incurred at any eligible educational institution, regardless of 92.19 whether it is private or public or whether it is located within 92.20 or outside ofthisthe state. A separate account must be 92.21 maintained for each beneficiary for whom contributions are made. 92.22 Sec. 14. Minnesota Statutes 2000, section 136A.243, 92.23 subdivision 3, is amended to read: 92.24 Subd. 3. [CONSULTATION WITH STATE BOARD OF INVESTMENT.] In 92.25 designing and establishing theprogram'splan's requirements and 92.26 in negotiating or entering into contracts with third parties 92.27 under subdivision 8, the director shall consult with the 92.28 executive director. The director and the executive director 92.29 shall establish an annual fee, equal to a percentage of the 92.30 average daily net assets of the plan, to be imposed on 92.31 participants to recover the costs of administration, 92.32 recordkeeping, and investment management as provided in 92.33 subdivision 9 and section 136A.244, subdivision 4. 92.34 Sec. 15. Minnesota Statutes 2000, section 136A.243, 92.35 subdivision 4, is amended to read: 92.36 Subd. 4. [PROGRAMPLAN TO COMPLY WITH FEDERAL LAW.] The 93.1 director shalltake steps toensure that theprogramplan meets 93.2 the requirements for a qualified state tuition program under 93.3 section 529(b)(1)(A)(ii) of the Internal Revenue Code. The 93.4 director may request a private letter ruling or rulings from the 93.5 Internal Revenue Service or take any other steps to ensure that 93.6 theprogramplan qualifies under section 529 of the Internal 93.7 Revenue Code or other relevant provisions of federal law. 93.8 Sec. 16. Minnesota Statutes 2000, section 136A.243, 93.9 subdivision 9, is amended to read: 93.10 Subd. 9. [AUTHORITY TO IMPOSE FEES.] The office may impose 93.11 annual fees, as provided in subdivision 3, on participants in 93.12 theprogramplan to recover the costs of administration. The 93.13 office must use its best efforts to keep these fees as low as 93.14 possible, consistent with efficient administration, so that the 93.15 returns on savings invested in theprogramplan will be as high 93.16 as possible. 93.17 Sec. 17. Minnesota Statutes 2000, section 136A.244, 93.18 subdivision 1, is amended to read: 93.19 Subdivision 1. [STATE BOARD TO INVEST.] The state board of 93.20 investment shall invest the money deposited in accounts in the 93.21programplan and all investments are directed by the board. 93.22 Neither persons making contributions to an account nor 93.23 beneficiaries may direct the investment of contributions to the 93.24 plan or plan earnings. 93.25 Sec. 18. Minnesota Statutes 2000, section 136A.244, 93.26 subdivision 4, is amended to read: 93.27 Subd. 4. [FEES.] The board may impose annual fees, as 93.28 provided in section 136A.243, subdivision 3, on participants in 93.29 theprogramplan to recover the cost of investment management 93.30 and related tasks for theprogramplan. The board must use its 93.31 best efforts to keep these fees as low as possible, consistent 93.32 with high quality investment management, so that the returns on 93.33 savings invested in theprogramplan will be as high as possible. 93.34 Sec. 19. [136A.2441] [MINNESOTA COLLEGE SAVINGS PLAN 93.35 ACCOUNTS; GENERALLY.] 93.36 Subdivision 1. [CONTRIBUTIONS TO AN ACCOUNT.] A person may 94.1 make contributions to an account on behalf of a beneficiary. 94.2 Contributions to an account made by persons other than the 94.3 account owner become the property of the account owner. A 94.4 person does not acquire an interest in an account by making 94.5 contributions to an account. Contributions to an account must 94.6 be made by check, money order, or other commercially acceptable 94.7 means as permitted by the United States Internal Revenue Service 94.8 and authorized by the plan administrator in cooperation with the 94.9 office and the board. 94.10 Subd. 2. [AUTHORITY OF ACCOUNT OWNER.] An account owner is 94.11 the only person entitled to: 94.12 (1) select or change a beneficiary or a contingent account 94.13 owner; or 94.14 (2) request distributions or rollover distributions from an 94.15 account. 94.16 Subd. 3. [SECURITY FOR LOANS.] An interest in an account 94.17 or matching grant account must not be used as security for a 94.18 loan. 94.19 Subd. 4. [SEPARATE ACCOUNTING.] The plan must provide a 94.20 separate account for each beneficiary for whom contributions are 94.21 made. Each account must have a single account owner and a 94.22 single beneficiary. An account owner must not open more than 94.23 one account for the same beneficiary, but several account owners 94.24 may open accounts for the same beneficiary. 94.25 Subd. 5. [NAMING OF BENEFICIARY.] The account owner must 94.26 designate the beneficiary of an account when the account is 94.27 established, except for accounts established under section 94.28 529(e)(1)(C) of the Internal Revenue Code, which do not require 94.29 a designated beneficiary until a distribution is made. 94.30 Subd. 6. [CHANGE OF BENEFICIARY.] An account owner may 94.31 change the beneficiary of an account to a member of the family 94.32 of the current beneficiary, at any time without penalty, if the 94.33 change will not cause the total account balance of all accounts 94.34 held for the new beneficiary to exceed the maximum account 94.35 balance limit as provided in subdivision 8. A change of 94.36 beneficiary other than as permitted in this subdivision is 95.1 treated as a nonqualified distribution under section 136A.246, 95.2 subdivision 3. 95.3 Subd. 7. [CHANGE OF ACCOUNT OWNERSHIP.] An account owner 95.4 may transfer ownership of an account to another person eligible 95.5 to be an account owner. All transfers of ownership are absolute 95.6 and irrevocable. 95.7 Subd. 8. [MAXIMUM ACCOUNT BALANCE LIMIT.] (a) When a 95.8 contribution is made, the total account balance of all accounts 95.9 held for the same beneficiary, including matching grant 95.10 accounts, must not exceed the maximum account balance limit as 95.11 determined under this subdivision. 95.12 (b) The maximum account balance limit is reduced for 95.13 withdrawals from any account for the same beneficiary that are 95.14 qualified distributions, distributions due to the death or 95.15 disability of the beneficiary, or distributions due to the 95.16 beneficiary receiving a scholarship. Subsequent contributions 95.17 must not be made to replenish an account if the contribution 95.18 results in the total account balance of all accounts held for 95.19 the beneficiary to exceed the reduced maximum account balance 95.20 limit. Any subsequent contributions must be rejected. A 95.21 subsequent contribution accepted in error must be returned to 95.22 the account owner plus any earnings on the contribution less any 95.23 applicable penalties. 95.24 (c) The maximum account balance limit is not reduced for a 95.25 nonqualified distribution or a rollover distribution. When such 95.26 distributions are taken, subsequent contributions may be made to 95.27 replenish an account up to the maximum account balance limit. 95.28 (d) The office must establish a maximum account balance 95.29 limit. The maximum account balance limit is four times the cost 95.30 of one year of qualified higher education expenses at the most 95.31 expensive eligible educational institution in Minnesota. The 95.32 office must adjust the maximum account balance limit, as 95.33 necessary, or on January 1 of each year. Qualified higher 95.34 education expenses for the academic year prior to January 1 of 95.35 each year must be used in calculating the maximum account 95.36 balance limit. The maximum account balance limit must not 96.1 exceed the amount permitted for the plan to qualify as a 96.2 qualified state tuition program under section 529 of the 96.3 Internal Revenue Code. 96.4 (e) If the total account balance of all accounts held for a 96.5 single beneficiary reaches the maximum account balance limit 96.6 prior to the end of that calendar year, the beneficiary may 96.7 receive an applicable matching grant for that calendar year. 96.8 Subd. 9. [EXCESS CONTRIBUTIONS AND BALANCES.] A 96.9 contribution to any account for a beneficiary must be rejected 96.10 if the contribution would cause the total account balance of all 96.11 accounts held for the same beneficiary, including the matching 96.12 grant account, to exceed the maximum account balance limit under 96.13 section 529 of the Internal Revenue Code as established by the 96.14 office. If a contribution under this subdivision is accepted in 96.15 error, the contribution must be returned to the account owner 96.16 plus any earnings thereon, less applicable penalties. A payment 96.17 of an excess contribution to the account owner may be a 96.18 nonqualified distribution subject to a penalty. 96.19 Subd. 10. [DORMANT ACCOUNTS.] (a) The plan administrator 96.20 shall attempt to locate the account owner or the beneficiary, or 96.21 both, to determine the disposition of a dormant account. A fee 96.22 of five percent of the total account balance of the dormant 96.23 account, not to exceed $100, plus allowable costs, may be 96.24 charged for this service. Costs will not exceed $100 or five 96.25 percent of the total account balance in the dormant account, 96.26 whichever is less. 96.27 (b) If the account owner, or the account owner's legal 96.28 heirs, are not found after three attempts by the plan 96.29 administrator, the remaining funds in the dormant account must 96.30 be turned over to the office. The funds are treated as 96.31 unclaimed property for purposes of sections 345.31 to 345.60, 96.32 and the office shall turn all remaining dormant account funds 96.33 over to the commissioner of commerce. If the dormant account 96.34 has a matching grant account, all amounts in the beneficiary's 96.35 matching grant account, if any, must be returned to the office. 96.36 Subd. 11. [EFFECT OF PLAN CHANGES ON PARTICIPATION 97.1 AGREEMENT.] Amendments to sections 136A.241 to 136A.246 97.2 automatically amend the participation agreement. Any amendments 97.3 to the operating procedures and policies of the plan shall amend 97.4 the participation agreement 30 days after adoption by the office 97.5 or the board. 97.6 Subd. 12. [SPECIAL ACCOUNT TO HOLD PLAN ASSETS IN 97.7 TRUST.] All assets of the plan, including contributions to 97.8 accounts and matching grant accounts and earnings, are held in 97.9 trust for the exclusive benefit of account owners and 97.10 beneficiaries. Assets must be held in a separate account in the 97.11 state treasury to be known as the Minnesota college savings plan 97.12 account. Plan assets are not subject to claims by creditors of 97.13 the state, are not part of the general fund, and are not subject 97.14 to appropriation by the state. Payments from the Minnesota 97.15 college savings plan account shall be made under sections 97.16 136A.241 to 136A.246. 97.17 Sec. 20. Minnesota Statutes 2000, section 136A.245, 97.18 subdivision 2, is amended to read: 97.19 Subd. 2. [FAMILY INCOME.] (a) For purposes of this 97.20 section, "family income" means: 97.21 (1) if the beneficiary is under age 25, the combined 97.22 adjusted gross income of the beneficiary's parents or legal 97.23 guardians as reported on the federal tax return or returns for 97.24 the most recently available tax year. If the beneficiary's 97.25 parents are divorced, the income of the parent claiming the 97.26 beneficiary as a dependent on the federal individual income tax 97.27 return and the income of that parent's spouse, if any, is used 97.28 to determine family income; or 97.29 (2) if the beneficiary is age 25 or older, the combined 97.30 adjusted gross income of the beneficiary and spouse, if any. 97.31 (b) For a parent or legal guardian of beneficiaries under 97.32 age 25 and for beneficiaries age 25 or older who resided in 97.33 Minnesota and filed a federal individual income tax return two 97.34 years prior to the year in which the matching grant is awarded, 97.35 the matching grant must be based on family income from Internal 97.36 Revenue Service tax data on file with the Minnesota department 98.1 of revenue. 98.2 (c) Parents or legal guardians of beneficiaries under age 98.3 25 and beneficiaries age 25 or older who did not reside in 98.4 Minnesota two years prior to the year in which the matching 98.5 grant is awarded must provide a signed copy of their federal 98.6 individual income tax return to the office, regardless of who 98.7 the account owner is, in order to be considered for a matching 98.8 grant. 98.9 Sec. 21. Minnesota Statutes 2000, section 136A.245, is 98.10 amended by adding a subdivision to read: 98.11 Subd. 2a. [RESIDENCY REQUIREMENT.] (a) If the beneficiary 98.12 is under age 25, the beneficiary's parents or legal guardians 98.13 must be Minnesota residents to qualify for a matching grant. If 98.14 the beneficiary is age 25 or older, the beneficiary must be a 98.15 Minnesota resident to qualify for a matching grant. 98.16 (b) To meet the residency requirements, the parent or legal 98.17 guardian of beneficiaries under age 25 must have filed a 98.18 Minnesota individual income tax return as a Minnesota resident, 98.19 claiming the beneficiary as a dependent, two years prior to the 98.20 year in which the matching grant is awarded. For beneficiaries 98.21 age 25 or older, the beneficiary, and a spouse, if any, must 98.22 have filed a Minnesota individual income tax return as a 98.23 Minnesota resident two years prior to the year in which the 98.24 matching grant is awarded. 98.25 (c) A parent of beneficiaries under age 25 and 98.26 beneficiaries age 25 or older who did not reside in Minnesota 98.27 two years prior to the year in which the matching grant is 98.28 awarded must establish Minnesota residency through the issuance 98.29 of a Minnesota driver's license or identification card. 98.30 Sec. 22. Minnesota Statutes 2000, section 136A.245, is 98.31 amended by adding a subdivision to read: 98.32 Subd. 2b. [AGE AND DATE OF BIRTH DETERMINATION OF 98.33 BENEFICIARY.] In determining the age of the beneficiary for 98.34 purposes of a matching grant, the plan administrator shall use 98.35 the age of the beneficiary as reported on the participation 98.36 agreement on December 31 of the year in which the request for a 99.1 matching grant is made. 99.2 Sec. 23. Minnesota Statutes 2000, section 136A.245, 99.3 subdivision 4, is amended to read: 99.4 Subd. 4. [BUDGET LIMIT.] If the total amount of matching 99.5 grants determined under subdivision 3 exceeds the amount of the 99.6 appropriation for the fiscal year, the director shall 99.7 proportionately reduce each grant so that the total equals the 99.8 available appropriation. The director must reduce matching 99.9 grants so that the amount of the matching grant assigned to a 99.10 beneficiary's account equals: 99.11 (1) the ratio of state appropriations for the matching 99.12 grant divided by the total dollar amount of matching grants for 99.13 all beneficiaries; multiplied by 99.14 (2) the dollar amount of the matching grant for each 99.15 eligible beneficiary. 99.16 Sec. 24. Minnesota Statutes 2000, section 136A.245, is 99.17 amended by adding a subdivision to read: 99.18 Subd. 7. [ANNUAL APPLICATION.] An account owner must 99.19 submit an application form for a matching grant on an annual 99.20 basis. The application must be postmarked by December 31 of the 99.21 year preceding the awarding of the matching grant. 99.22 Sec. 25. Minnesota Statutes 2000, section 136A.245, is 99.23 amended by adding a subdivision to read: 99.24 Subd. 8. [SINGLE BENEFICIARIES WITH MULTIPLE 99.25 ACCOUNTS.] (a) A matching grant will first be computed on an 99.26 account owned by a parent or legal guardian of the beneficiary, 99.27 or an account owner who is also the beneficiary. If there are 99.28 multiple accounts for a single beneficiary, any matching grant, 99.29 up to the annual maximum, will be proportionately awarded to the 99.30 beneficiary named in accounts owned by the parents or guardians. 99.31 (b) If the account owned by a parent or a guardian or an 99.32 account owner who is also the beneficiary does not qualify for 99.33 the maximum annual matching grant, any remaining matching grant 99.34 funds are proportionately distributed to the beneficiary to an 99.35 account or accounts owned by someone other than the parent or 99.36 guardian. 100.1 (c) If the account for a beneficiary is not owned by a 100.2 parent or a legal guardian, or an account owner who is also the 100.3 beneficiary, then the matching grant will be proportionately 100.4 distributed to the beneficiary to accounts owned by others. 100.5 Sec. 26. Minnesota Statutes 2000, section 136A.245, is 100.6 amended by adding a subdivision to read: 100.7 Subd. 9. [OWNERSHIP OF MATCHING GRANT FUNDS.] The state 100.8 retains ownership of all matching grants and earnings on 100.9 matching grants until a qualified distribution is made to a 100.10 beneficiary or an eligible educational institution. 100.11 Sec. 27. Minnesota Statutes 2000, section 136A.245, is 100.12 amended by adding a subdivision to read: 100.13 Subd. 10. [INACTIVE ACCOUNTS WITH MATCHING GRANTS.] (a) 100.14 The plan administrator will attempt to locate the account owner 100.15 or the beneficiary of an inactive account with a matching grant 100.16 to determine the disposition of the account. No fee will be 100.17 charged for this service. The matching grants and matching 100.18 grant earnings in the account must be returned to the office, 100.19 unless the account owner applies for a deferment or the 100.20 beneficiary begins attending an eligible educational institution 100.21 within one year of the date of notification. 100.22 (b) The account owner may apply to the plan administrator 100.23 for a deferment of inactive account time limits. Upon 100.24 application, the plan administrator shall grant a one-time 100.25 deferment of two years. In addition, the plan administrator 100.26 shall grant a deferment for the beneficiary's initial enlistment 100.27 for active duty in the armed forces of the United States, or for 100.28 the period of active military duty required as part of the 100.29 beneficiary's obligation as a member in a reserve military unit 100.30 of the armed forces of the United States. 100.31 Sec. 28. Minnesota Statutes 2000, section 136A.245, is 100.32 amended by adding a subdivision to read: 100.33 Subd. 11. [FORFEITURE OF MATCHING GRANTS.] (a) Matching 100.34 grants are forfeited if: 100.35 (1) the account owner transfers the total account balance 100.36 of an account to another account or to another qualified state 101.1 tuition program; 101.2 (2) the beneficiary receives a full tuition scholarship or 101.3 admission to a United States service academy; 101.4 (3) the beneficiary dies or becomes disabled; 101.5 (4) the account owner changes the beneficiary of the 101.6 account; or 101.7 (5) the account owner closes the account with a 101.8 nonqualified withdrawal. 101.9 (b) Matching grants must be proportionally forfeited if: 101.10 (1) the account owner transfers a portion of an account to 101.11 another account or to another qualified state tuition program; 101.12 (2) the beneficiary receives a scholarship covering a 101.13 portion of qualified higher education expenses; or 101.14 (3) the account owner makes a partial nonqualified 101.15 withdrawal. 101.16 (c) If the account owner makes a misrepresentation in a 101.17 participation agreement or an application for a matching grant 101.18 that results in a matching grant, the matching grant associated 101.19 with the misrepresentation is forfeited. The office and the 101.20 board must instruct the plan administrator as to the amount to 101.21 be forfeited from the matching grant account. The office and 101.22 the board must withdraw the matching grant or the proportion of 101.23 the matching grant that is related to the misrepresentation. 101.24 Sec. 29. [136A.246] [ACCOUNT DISTRIBUTIONS.] 101.25 Subdivision 1. [QUALIFIED DISTRIBUTION METHODS.] (a) 101.26 Qualified distributions may be made: 101.27 (1) directly to participating eligible educational 101.28 institutions on behalf of the beneficiary; 101.29 (2) in the form of a check payable to both the beneficiary 101.30 and the eligible educational institution; or 101.31 (3) to an account owner with a receipt verifying the 101.32 payment of qualified higher education expenses. 101.33 (b) When administratively feasible, distributions may be 101.34 made when the account owner and beneficiary certify prior to the 101.35 distribution that the distribution will be expended for 101.36 qualified higher education expenses a reasonable time after the 102.1 distribution. The plan administrator may retain a penalty on 102.2 the earnings portion of the nonqualified distribution until 102.3 payment of qualified higher education expenses are 102.4 substantiated. A payment receipt showing payment for qualified 102.5 higher education expenses must be submitted to the program 102.6 administrator within 30 days of distribution. 102.7 (c) Qualified distributions must be withdrawn 102.8 proportionally from contributions and earnings in an account 102.9 owner's account on the date of distribution as provided in 102.10 section 529 of the Internal Revenue Code. 102.11 Subd. 2. [MATCHING GRANT ACCOUNTS.] Qualified 102.12 distributions are based on the total account balances in an 102.13 account owner's account and matching grant account, if any, on 102.14 the date of distribution. Qualified distributions must be 102.15 withdrawn proportionally from each account based on the relative 102.16 total account balance of each account to the total account 102.17 balance for both accounts. Amounts for matching grants and 102.18 matching grant earnings must only be distributed for qualified 102.19 higher education expenses. 102.20 Subd. 3. [NONQUALIFIED DISTRIBUTION.] An account owner may 102.21 request a nonqualified distribution from an account at any 102.22 time. Nonqualified distributions are based on the total account 102.23 balances in an account owner's account and must be withdrawn 102.24 proportionally from contributions and earnings as provided in 102.25 section 529 of the Internal Revenue Code. The earnings portion 102.26 of a nonqualified distribution is subject to a penalty. For 102.27 purposes of this subdivision, "earnings portion" means the ratio 102.28 of the earnings in the account to the total account balance, 102.29 immediately prior to the distribution, multiplied by the 102.30 distribution. The penalty must be withheld from the total 102.31 amount of any distribution. 102.32 Subd. 4. [NONQUALIFIED DISTRIBUTIONS FROM MATCHING GRANT 102.33 ACCOUNTS.] (a) If an account owner requests a nonqualified 102.34 distribution from an account that has a matching grant account, 102.35 the total account balance of the matching grant account, if any, 102.36 is reduced. 103.1 (b) After the nonqualified distribution is withdrawn from 103.2 the account including any penalty as provided in subdivision 3, 103.3 the account owner forfeits matching grant amounts in the same 103.4 proportion as the nonqualified distribution is to the total 103.5 account balance of the account. 103.6 Subd. 5. [DISTRIBUTIONS DUE TO DEATH OR DISABILITY OF, OR 103.7 SCHOLARSHIP TO, A BENEFICIARY.] An account owner may request a 103.8 distribution due to the death or disability of, or scholarship 103.9 to, a beneficiary from an account by submitting a completed 103.10 request to the plan. Prior to distribution, the account owner 103.11 shall certify the reason for the distribution and provide 103.12 written confirmation from a third party that the beneficiary has 103.13 died, become disabled, or received a scholarship for attendance 103.14 at an eligible educational institution. The plan must not 103.15 consider a request to make a distribution until a third-party 103.16 written confirmation is received by the plan. For purposes of 103.17 this subdivision, a third-party written confirmation consists of 103.18 the following: 103.19 (1) for death of the beneficiary, a certified copy of the 103.20 beneficiary's death certificate; 103.21 (2) for disability of the beneficiary, a certification by a 103.22 physician who is a doctor of medicine or osteopathy stating that 103.23 the doctor is legally authorized to practice in a state of the 103.24 United States and that the beneficiary is unable to attend any 103.25 eligible educational institution because of an injury or illness 103.26 that is expected to continue indefinitely or result in death. 103.27 Certification must be on a form approved by the plan; or 103.28 (3) for a scholarship award to the beneficiary, a letter 103.29 from the grantor of the scholarship or from the eligible 103.30 educational institution receiving or administering the 103.31 scholarship, that identifies the beneficiary by name and social 103.32 security number or taxpayer identification number as the 103.33 recipient of the scholarship and states the amount of the 103.34 scholarship, the period of time or number of credits or units to 103.35 which it applies, the date of the scholarship, and, if 103.36 applicable, the eligible educational institution to which the 104.1 scholarship is to be applied. 104.2 Sec. 30. [REVISOR'S INSTRUCTION.] 104.3 (a) The revisor of statutes shall renumber each section of 104.4 Minnesota Statutes listed in column A with the section listed in 104.5 column B. 104.6 Column A Column B 104.7 136A.241 136G.01 104.8 136A.242 136G.03 104.9 136A.243 136G.05 104.10 136A.244 136G.07 104.11 136A.2441 136G.09 104.12 136A.245 136G.11 104.13 136A.246 136G.13 104.14 (b) The revisor of statutes shall correct cross-references 104.15 in Minnesota Statutes that are recodified by this act, and, if 104.16 Minnesota Statutes, sections 136A.241 to 136A.246, are further 104.17 amended in the 2001 legislative regular or special session, 104.18 shall codify the amendments in a manner consistent with this act. 104.19 (c) The revisor of statutes shall change "Edvest" to 104.20 "Minnesota college savings plan" wherever it appears in 104.21 Minnesota Statutes. 104.22 Sec. 31. [EFFECTIVE DATE.] 104.23 This article is effective the day following final 104.24 enactment, except that section 8 is effective July 1, 2002. 104.25 ARTICLE 16 104.26 ENVIRONMENT AND AGRICULTURE 104.27 Section 1. [ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE 104.28 APPROPRIATIONS.] 104.29 The sums shown in the columns marked "APPROPRIATIONS" are 104.30 appropriated from the general fund, or another named fund, to 104.31 the agencies and for the purposes specified in this article, to 104.32 be available for the fiscal years indicated for each purpose. 104.33 The figures "2001," "2002," and "2003," where used in this 104.34 article, mean that the appropriation or appropriations listed 104.35 under them are available for the year ending June 30, 2001, June 104.36 30, 2002, or June 30, 2003, respectively. The term "the first 105.1 year" means the year ending June 30, 2002, and the term "the 105.2 second year" means the year ending June 30, 2003. 105.3 SUMMARY BY FUND 105.4 BIENNIAL 105.5 2001 2002 2003 TOTAL 105.6 General $206,162,000 $209,599,000 $415,761,000 105.7 State Government 105.8 Special Revenue 47,000 48,000 95,000 105.9 Agriculture 200,000 200,000 400,000 105.10 Environmental 23,010,000 23,749,000 46,759,000 105.11 Natural 105.12 Resources 26,170,000 26,511,000 52,681,000 105.13 Game and Fish 67,894,000 69,347,000 137,241,000 105.14 Petroleum Tank 3,511,000 3,616,000 7,127,000 105.15 Solid Waste 500,000 7,494,000 7,729,000 15,223,000 105.16 Future Resources 105.17 Fund 389,000 -0- 389,000 105.18 Trust Fund 338,000 338,000 676,000 105.19 TOTAL $ 500,000 $335,215,000 $341,137,000 $676,352,000 105.20 APPROPRIATIONS 105.21 Available for the Year 105.22 Ending June 30 105.23 2002 2003 105.24 Sec. 2. POLLUTION CONTROL 105.25 AGENCY 105.26 Subdivision 1. Total 105.27 Appropriation $49,505,000 $50,858,000 105.28 Summary by Fund 105.29 General 17,184,000 17,481,000 105.30 Petroleum Tank 3,511,000 3,616,000 105.31 State Government 105.32 Special Revenue 47,000 48,000 105.33 Environmental 21,369,000 22,084,000 105.34 Solid Waste 500,000 7,394,000 7,629,000 105.35 The amounts that may be spent from this 105.36 appropriation for each program are 105.37 specified in the following subdivisions. 105.38 Subd. 2. Protection of the Water 105.39 14,459,000 14,793,000 105.40 Summary by Fund 105.41 General 11,144,000 11,365,000 105.42 State Government 106.1 Special Revenue 47,000 48,000 106.2 Environmental 3,268,000 3,380,000 106.3 $2,348,000 the first year and 106.4 $2,348,000 the second year are for the 106.5 clean water partnership program. Any 106.6 balance remaining in the first year 106.7 does not cancel and is available for 106.8 the second year of the biennium. 106.9 $1,841,000 the first year and 106.10 $1,841,000 the second year are for 106.11 grants for county administration of the 106.12 feedlot permit program. These amounts 106.13 are transferred to the board of water 106.14 and soil resources for disbursement in 106.15 accordance with Minnesota Statutes, 106.16 section 103B.3369, in cooperation with 106.17 the pollution control agency. Grants 106.18 must be matched with a combination of 106.19 local cash and/or in-kind contributions. 106.20 Counties receiving these grants shall 106.21 submit an annual report to the 106.22 pollution control agency regarding 106.23 activities conducted under the grant, 106.24 expenditures made, and local match 106.25 contributions. First priority for 106.26 funding shall be given to counties that 106.27 have requested and received delegation 106.28 from the pollution control agency for 106.29 processing of animal feedlot permit 106.30 applications under Minnesota Statutes, 106.31 section 116.07, subdivision 7. For 106.32 each year of the grant, delegated 106.33 counties shall be eligible to receive 106.34 an amount of either: (1) $50 106.35 multiplied by the number of feedlots 106.36 with greater than ten animal units as 106.37 determined by (i) registration data 106.38 under Minnesota Rules, part 7020.0350, 106.39 (ii) if registration data are not yet 106.40 complete, a level 1 feedlot inventory 106.41 conducted in accordance with the 106.42 Feedlot Inventory Guidebook published 106.43 by the board of water and soil 106.44 resources, dated June 1991, or (iii) if 106.45 registration or an inventory has not 106.46 been completed, the number of livestock 106.47 or poultry farms with sales greater 106.48 than $10,000, as reported in the 1997 106.49 Census of Agriculture, published by the 106.50 United States Bureau of Census; or (2) 106.51 $80 multiplied by the number of 106.52 feedlots with greater than ten animal 106.53 units as determined by a level 2 or 106.54 level 3 feedlot inventory conducted in 106.55 accordance with the Feedlot Inventory 106.56 Guidebook published by the board of 106.57 water and soil resources, dated June 106.58 1991. At a minimum, delegated counties 106.59 are eligible to receive a grant of 106.60 $7,500 per year. To receive the 106.61 additional funding that is based on the 106.62 county feedlot inventory, the inventory 106.63 information shall be current within the 106.64 most recent four-year period and the 106.65 county shall submit a copy of the 106.66 inventory to the pollution control 106.67 agency. Any remaining money is for 106.68 distribution to all counties on a 107.1 competitive basis through the challenge 107.2 grant process for the conducting of 107.3 feedlot inventories, development of 107.4 delegated county feedlot programs, and 107.5 for information and education or 107.6 technical assistance efforts to reduce 107.7 feedlot-related pollution hazards. Any 107.8 money remaining after the first year is 107.9 available for the second year. 107.10 $328,000 the first year and $335,000 107.11 the second year are for community 107.12 technical assistance and education, 107.13 including grants and technical 107.14 assistance to communities for local and 107.15 basinwide water quality protection. 107.16 $204,000 the first year and $205,000 107.17 the second year are for individual 107.18 sewage treatment system (ISTS) 107.19 administration. Of this amount, 107.20 $86,000 in each year is transferred to 107.21 the board of water and soil resources 107.22 for assistance to local units of 107.23 government through competitive grant 107.24 programs for ISTS program development. 107.25 $200,000 each year is for individual 107.26 sewage treatment system grants. Any 107.27 unexpended balance in the first year 107.28 does not cancel, but is available in 107.29 the second year. 107.30 Subd. 3. Protection of the Air 107.31 7,591,000 7,751,000 107.32 Summary by Fund 107.33 General 135,000 62,000 107.34 Environmental 7,456,000 7,689,000 107.35 Up to $150,000 the first year and 107.36 $150,000 the second year may be 107.37 transferred to the environmental fund 107.38 for the small business environmental 107.39 improvement loan program established in 107.40 Minnesota Statutes, section 116.993. 107.41 $200,000 each year from the 107.42 environmental fund is for a monitoring 107.43 program under Minnesota Statutes, 107.44 section 116.454. 107.45 Subd. 4. Protection of the Land 107.46 10,909,000 11,177,000 107.47 Summary by Fund 107.48 General 1,258,000 1,265,000 107.49 Petroleum Tank 2,218,000 2,270,000 107.50 Solid Waste 4,617,000 4,758,000 107.51 Environmental 2,816,000 2,884,000 107.52 $200,000 the first year and $200,000 107.53 the second year are from the 108.1 environmental fund to be transferred to 108.2 the department of health for private 108.3 water supply monitoring and health 108.4 assessment costs in areas contaminated 108.5 by unpermitted mixed municipal solid 108.6 waste disposal facilities. 108.7 Subd. 5. Integrated 108.8 Environmental Programs 108.9 14,455,000 14,913,000 108.10 Summary by Fund 108.11 General 2,556,000 2,565,000 108.12 Petroleum Tank 1,293,000 1,346,000 108.13 Environmental 7,829,000 8,131,000 108.14 Solid Waste 2,777,000 2,871,000 108.15 $562,000 the first year and $574,000 108.16 the second year are from the petroleum 108.17 tank fund for purposes of the leaking 108.18 underground storage tank program to 108.19 protect the land. 108.20 Subd. 6. Administrative Support 108.21 500,000 2,091,000 2,224,000 108.22 Summary by Fund 108.23 General 2,091,000 2,224,000 108.24 Solid waste 500,000 108.25 Subd. 7. Deficiency Appropriation 108.26 for FLSA 108.27 $500,000 in fiscal year 2001 is from 108.28 the solid waste fund for back pay owed 108.29 under settlements regarding overtime 108.30 under the federal Fair Labor Standards 108.31 Act. 108.32 Sec. 3. OFFICE OF ENVIRONMENTAL 108.33 ASSISTANCE 21,948,000 22,092,000 108.34 Summary by Fund 108.35 General 20,654,000 20,780,000 108.36 Environmental 1,294,000 1,312,000 108.37 $14,008,000 each year is for SCORE 108.38 block grants to counties. 108.39 Any unencumbered grant and loan 108.40 balances in the first year do not 108.41 cancel but are available for grants and 108.42 loans in the second year. 108.43 All money deposited in the 108.44 environmental fund for the metropolitan 108.45 solid waste landfill fee in accordance 108.46 with Minnesota Statutes, section 108.47 473.843, and not otherwise 108.48 appropriated, is appropriated to the 108.49 office of environmental assistance for 109.1 the purposes of Minnesota Statutes, 109.2 section 473.844. 109.3 The funds appropriated pursuant to Laws 109.4 1988, chapter 685, section 43, 109.5 including those funds reappropriated in 109.6 Laws 1999, chapter 231, section 3, are 109.7 available until June 30, 2003. 109.8 Sec. 4. ZOOLOGICAL BOARD 7,445,000 7,668,000 109.9 Sec. 5. NATURAL RESOURCES 109.10 Subdivision 1. Total 109.11 Appropriation 207,026,000 211,181,000 109.12 Summary by Fund 109.13 General 112,897,000 115,259,000 109.14 Natural Resources 26,135,000 26,475,000 109.15 Game and Fish 67,894,000 69,347,000 109.16 Solid Waste 100,000 100,000 109.17 The amounts that may be spent from this 109.18 appropriation for each program are 109.19 specified in the following subdivisions. 109.20 Subd. 2. Land and Mineral Resources 109.21 7,135,000 7,298,000 109.22 Summary by Fund 109.23 General 6,556,000 6,704,000 109.24 Natural Resources 152,000 156,000 109.25 Game and Fish 427,000 438,000 109.26 $314,000 the first year and $315,000 109.27 the second year are for iron ore 109.28 cooperative research, of which $200,000 109.29 the first year and $200,000 the second 109.30 year are available only as matched by 109.31 $1 of nonstate money for each $1 of 109.32 state money. Any unencumbered balance 109.33 remaining in the first year does not 109.34 cancel but is available for the second 109.35 year. 109.36 $380,000 the first year and $382,000 109.37 the second year are for mineral 109.38 diversification. 109.39 $103,000 the first year and $104,000 109.40 the second year are for minerals 109.41 cooperative environmental research, of 109.42 which $50,000 the first year and 109.43 $50,500 the second year are available 109.44 only as matched by $1 of nonstate money 109.45 for each $1 of state money. Any 109.46 unencumbered balance remaining in the 109.47 first year does not cancel but is 109.48 available for the second year. 109.49 Subd. 3. Water Resources Management 109.50 12,522,000 12,760,000 110.1 Summary by Fund 110.2 General 12,248,000 12,480,000 110.3 Natural Resources 274,000 280,000 110.4 $170,000 the first year and $170,000 110.5 the second year are for a grant to the 110.6 Mississippi headwaters board for up to 110.7 50 percent of the cost of implementing 110.8 the comprehensive plan for the upper 110.9 Mississippi within areas under its 110.10 jurisdiction. 110.11 $17,000 the first year and $17,000 the 110.12 second year are for payment to the 110.13 Leech Lake Band of Chippewa Indians to 110.14 implement its portion of the 110.15 comprehensive plan for the upper 110.16 Mississippi. 110.17 $1,000,000 the first year and 110.18 $1,000,000 the second year are for 110.19 activities associated with the 110.20 implementation of the Red River 110.21 mediation agreement, including 110.22 comprehensive watershed plans; agency 110.23 interdisciplinary teams for each 110.24 watershed, and a basin repository, 110.25 including data on flood flows and water 110.26 supply; and for grants to watershed 110.27 districts located within the Red River 110.28 Basin for flood damage reduction 110.29 projects under Minnesota Statutes, 110.30 section 103F.161. 110.31 Subd. 4. Forest Management 110.32 32,509,000 33,206,000 110.33 Summary by Fund 110.34 General 36,187,000 36,709,000 110.35 $3,744,000 the first year and 110.36 $3,803,000 the second year are for 110.37 presuppression and suppression costs of 110.38 emergency firefighting and other costs 110.39 incurred under Minnesota Statutes, 110.40 section 88.12, subdivision 2, related 110.41 to search and rescue operations. If 110.42 the appropriation for either year is 110.43 insufficient to cover all costs of 110.44 suppression and search and rescue 110.45 operations, the amount necessary to pay 110.46 for these costs during the biennium is 110.47 appropriated from the general fund. By 110.48 November 15 each year, the commissioner 110.49 must report on all expenditures from 110.50 these appropriations. The report must 110.51 identify presuppression activities, 110.52 suppression activities conducted in 110.53 anticipation of fires, and suppression 110.54 activities conducted to extinguish 110.55 fires. The appropriations may not be 110.56 transferred. Notwithstanding Minnesota 110.57 Statutes, section 88.75, any 110.58 reimbursement of firefighting 110.59 expenditures made to the commissioner 110.60 from any source other than federal 110.61 mobilizations shall be deposited into 111.1 the general fund. 111.2 $730,000 the first year and $736,000 111.3 the second year are for programs and 111.4 practices on state, county, and private 111.5 lands to regenerate and protect 111.6 Minnesota's white pine. Up to $280,000 111.7 of the appropriation in each year may 111.8 be used by the commissioner to provide 111.9 50 percent matching funds to implement 111.10 cultural practices for white pine 111.11 management on nonindustrial, private 111.12 forest lands at rates specified in the 111.13 Minnesota stewardship incentives 111.14 program manual. Up to $150,000 of the 111.15 appropriation in each year may be used 111.16 by the commissioner to provide funds to 111.17 implement cultural practices for white 111.18 pine management on county-administered 111.19 lands through grant agreements with 111.20 individual counties, with priorities 111.21 for areas that experienced wind damage 111.22 in July 1995. $40,000 each year is for 111.23 a study of the natural regeneration 111.24 process of white pine. The remainder 111.25 of the funds in each fiscal year will 111.26 be available to the commissioner for 111.27 white pine regeneration and protection 111.28 on department-administered lands. 111.29 $64,000 the first year and $65,000 the 111.30 second year are for the focus on 111.31 community forests program, to provide 111.32 communities with natural resources 111.33 technical assistance. 111.34 Subd. 5. Parks and Recreation 111.35 Management 111.36 30,172,000 30,775,000 111.37 Summary by Fund 111.38 General 29,534,000 30,135,000 111.39 Natural Resources 638,000 640,000 111.40 $638,000 the first year and $640,000 111.41 the second year are from the water 111.42 recreation account in the natural 111.43 resources fund for state park 111.44 development projects. If the 111.45 appropriation in either year is 111.46 insufficient, the appropriation for the 111.47 other year is available for it. 111.48 $3,000,000 the first year and 111.49 $3,000,000 the second year are for 111.50 payment of a grant to the metropolitan 111.51 council for metropolitan area regional 111.52 parks maintenance and operations. 111.53 $247,000 the first year and $253,000 111.54 the second year are for state forest 111.55 campground operations. 111.56 Subd. 6. Trails and Waterways 111.57 Management 111.58 17,800,000 17,995,000 112.1 Summary by Fund 112.2 General 2,122,000 2,158,000 112.3 Natural Resources 14,070,000 14,228,000 112.4 Game and Fish 1,608,000 1,609,000 112.5 $4,649,000 the first year and 112.6 $4,649,000 the second year are from the 112.7 snowmobile trails and enforcement 112.8 account in the natural resources fund 112.9 for snowmobile grants-in-aid. 112.10 $259,000 the first year and $261,000 112.11 the second year are from the water 112.12 recreation account in the natural 112.13 resources fund for a safe harbor 112.14 program on Lake Superior. 112.15 Subd. 7. Fish Management 112.16 23,412,000 23,944,000 112.17 Summary by Fund 112.18 General 646,000 660,000 112.19 Natural Resources 191,000 197,000 112.20 Game and Fish 22,575,000 23,087,000 112.21 $222,000 the first year and $227,000 112.22 the second year are for resource 112.23 population surveys in the 1837 treaty 112.24 area. Of this amount, $84,000 the 112.25 first year and $85,000 the second year 112.26 are from the game and fish fund. 112.27 $165,000 the first year and $190,000 112.28 the second year are for the reinvest in 112.29 Minnesota programs of game and fish, 112.30 critical habitat, and wetlands 112.31 established under Minnesota Statutes, 112.32 section 84.95, subdivision 2. 112.33 $666,000 the first year and $671,000 112.34 the second year are from the trout and 112.35 salmon management account for only the 112.36 purposes specified in Minnesota 112.37 Statutes, section 97A.075, subdivision 112.38 3. 112.39 $205,000 the first year and $207,000 112.40 the second year are available for 112.41 aquatic plant restoration. 112.42 Subd. 8. Wildlife Management 112.43 19,956,000 20,329,000 112.44 Summary by Fund 112.45 General 1,720,000 1,744,000 112.46 Game and Fish 18,236,000 18,585,000 112.47 $106,000 the first year and $106,000 112.48 the second year are for resource 112.49 population surveys in the 1837 treaty 112.50 area. Of this amount, $26,000 the 113.1 first year and $26,000 the second year 113.2 are from the game and fish fund. 113.3 $552,000 the first year and $565,000 113.4 the second year are for the reinvest in 113.5 Minnesota programs of game and fish, 113.6 critical habitat, and wetlands 113.7 established under Minnesota Statutes, 113.8 section 84.95, subdivision 2. 113.9 $1,419,000 the first year and 113.10 $1,430,000 the second year are from the 113.11 wildlife acquisition surcharge account 113.12 for only the purposes specified in 113.13 Minnesota Statutes, section 97A.071, 113.14 subdivision 2a. 113.15 $1,245,000 the first year and 113.16 $1,269,000 the second year are from the 113.17 deer habitat improvement account for 113.18 only the purposes specified in 113.19 Minnesota Statutes, section 97A.075, 113.20 subdivision 1, paragraph (b). 113.21 $147,000 the first year and $148,000 113.22 the second year are from the deer and 113.23 bear management account for only the 113.24 purposes specified in Minnesota 113.25 Statutes, section 97A.075, subdivision 113.26 1, paragraph (c). 113.27 $699,000 the first year and $708,000 113.28 the second year are from the waterfowl 113.29 habitat improvement account for only 113.30 the purposes specified in Minnesota 113.31 Statutes, section 97A.075, subdivision 113.32 2. 113.33 $546,000 the first year and $546,000 113.34 the second year are from the pheasant 113.35 habitat improvement account for only 113.36 the purposes specified in Minnesota 113.37 Statutes, section 97A.075, subdivision 113.38 4. In addition to the purposes 113.39 specified in Minnesota Statutes, 113.40 section 97A.075, subdivision 4, this 113.41 appropriation may be used for pheasant 113.42 restocking efforts. 113.43 $308,000 the first year and $313,000 113.44 the second year are from the game and 113.45 fish fund for activities relating to 113.46 reduction and prevention of property 113.47 damage by wildlife. $50,000 each year 113.48 is for emergency damage abatement 113.49 materials. 113.50 $86,000 the first year and $87,000 the 113.51 second year are from the wild turkey 113.52 management account for only the 113.53 purposes specified in Minnesota 113.54 Statutes, section 97A.075, subdivision 113.55 5. 113.56 $13,000 the first year and $13,000 the 113.57 second year are to publicize the 113.58 critical habitat license plate match 113.59 program. 113.60 Subd. 9. Ecological Services 114.1 7,511,000 7,658,000 114.2 Summary by Fund 114.3 General 3,745,000 3,818,000 114.4 Natural Resources 1,979,000 2,013,000 114.5 Game and Fish 1,787,000 1,827,000 114.6 $1,006,000 the first year and 114.7 $1,028,000 the second year are from the 114.8 nongame wildlife management account in 114.9 the natural resources fund for the 114.10 purpose of nongame wildlife management. 114.11 $254,000 the first year and $259,000 114.12 the second year are for population and 114.13 habitat objectives of the nongame 114.14 wildlife management program. 114.15 $593,000 the first year and $600,000 114.16 the second year are for the reinvest in 114.17 Minnesota programs of game and fish, 114.18 critical habitat, and wetlands 114.19 established under Minnesota Statutes, 114.20 section 84.95, subdivision 2. 114.21 $103,000 the first year and $105,000 114.22 the second year are for water 114.23 monitoring activities, including 114.24 integrated monitoring using biology, 114.25 chemistry, hydrology, and habitat 114.26 assessment for water quality assessment. 114.27 $12,000 the first year and $12,000 the 114.28 second year are to publicize the tax 114.29 donation checkoff to the nongame 114.30 wildlife program. 114.31 $970,000 the first year is from the 114.32 game and fish fund for the wildlife 114.33 conservation and restoration program. 114.34 This appropriation is for the planning 114.35 and implementation of a program that 114.36 addresses wildlife conservation and 114.37 restoration, wildlife conservation 114.38 education, and wildlife associated 114.39 recreation. 114.40 Subd. 10. Enforcement 114.41 23,314,000 23,817,000 114.42 Summary by Fund 114.43 General 3,741,000 3,836,000 114.44 Natural Resources 4,691,000 4,736,000 114.45 Game and Fish 14,782,000 15,145,000 114.46 Solid Waste 100,000 100,000 114.47 $1,082,000 the first year and 114.48 $1,082,000 the second year are from the 114.49 water recreation account in the natural 114.50 resources fund for grants to counties 114.51 for boat and water safety. 114.52 $100,000 the first year and $100,000 115.1 the second year are from the solid 115.2 waste fund for solid waste enforcement 115.3 activities under Minnesota Statutes, 115.4 section 116.073. 115.5 $315,000 the first year and $315,000 115.6 the second year are from the snowmobile 115.7 trails and enforcement account in the 115.8 natural resources fund for grants to 115.9 local law enforcement agencies for 115.10 snowmobile enforcement activities. 115.11 $40,000 the first year and $40,000 the 115.12 second year are from the natural 115.13 resources fund for enforcement 115.14 activities relating to the iron range 115.15 off-highway vehicle recreation area. 115.16 Of the amount appropriated, $40,000 is 115.17 from the all-terrain vehicle account, 115.18 $32,000 is from the off-road vehicle 115.19 account, and $8,000 is from the 115.20 off-highway motorcycle account. 115.21 $131,000 the first year and $133,000 115.22 the second year are for protected class 115.23 employee recruitment and retention. 115.24 Overtime shall be distributed to 115.25 conservation officers at historical 115.26 levels. If funding for enforcement is 115.27 reduced because of an unallotment, the 115.28 overtime bank may be reduced in 115.29 proportion to reductions made in other 115.30 areas of the budget. 115.31 Subd. 11. Operations Support 115.32 32,695,000 33,399,000 115.33 Summary by Fund 115.34 General 20,076,000 20,518,000 115.35 Natural Resources 4,140,000 4,225,000 115.36 Game and Fish 8,479,000 8,656,000 115.37 $413,000 the first year and $418,000 115.38 the second year are for technical 115.39 assistance and grants to assist local 115.40 government units and organizations in 115.41 the metropolitan area to acquire and 115.42 develop natural areas and greenways. 115.43 $494,000 the first year and $504,000 115.44 the second year are for the community 115.45 assistance program to provide for 115.46 technical assistance and regional 115.47 resource enhancement grants. 115.48 $2,538,000 the first year and 115.49 $2,595,000 the second year are for the 115.50 operations of the youth programs. Of 115.51 these amounts, $478,000 the first year 115.52 and $491,000 the second year are from 115.53 the natural resources fund. 115.54 The commissioner may contract with and 115.55 make grants to nonprofit agencies to 115.56 carry out the purposes, plans, and 115.57 programs of the office of youth 116.1 programs, Minnesota Conservation Corps. 116.2 Sec. 6. BOARD OF WATER AND 116.3 SOIL RESOURCES 18,244,000 18,363,000 116.4 $5,480,000 the first year and 116.5 $5,480,000 the second year are for 116.6 natural resources block grants to local 116.7 governments. Of this amount, $50,000 116.8 each year is for a grant to the North 116.9 Shore management board, $35,000 each 116.10 year is for a grant to the St. Louis 116.11 river board, $100,000 each year is for 116.12 a grant to the Minnesota river basin 116.13 joint powers board, and $27,000 each 116.14 year is for a grant to the southeast 116.15 Minnesota resources board. 116.16 The board shall reduce the amount of 116.17 the natural resource block grant to a 116.18 county by an amount equal to any 116.19 reduction in the county's general 116.20 services allocation to a soil and water 116.21 conservation district from the county's 116.22 previous year allocation. 116.23 Grants must be matched with a 116.24 combination of local cash or in-kind 116.25 contributions. The base grant portion 116.26 related to water planning must be 116.27 matched by an amount that would be 116.28 raised by a levy under Minnesota 116.29 Statutes, section 103B.3369. 116.30 $3,867,000 the first year and 116.31 $3,867,000 the second year are for 116.32 grants to soil and water conservation 116.33 districts for general purposes, 116.34 nonpoint engineering, and 116.35 implementation of the reinvest in 116.36 Minnesota (RIM) conservation reserve 116.37 program. Upon approval of the board, 116.38 expenditures may be made from these 116.39 appropriations for supplies and 116.40 services benefiting soil and water 116.41 conservation districts. 116.42 $4,120,000 the first year and 116.43 $4,120,000 the second year are for 116.44 grants to soil and water conservation 116.45 districts for cost-sharing contracts 116.46 for erosion control and water quality 116.47 management. Of this amount, at least 116.48 $1,500,000 the first year and 116.49 $1,500,000 the second year are for 116.50 grants for cost-sharing contracts for 116.51 water quality management on feedlots. 116.52 $189,000 the first year and $189,000 116.53 the second year are for grants to 116.54 watershed districts and other local 116.55 units of government in the southern 116.56 Minnesota River basin study area 2 for 116.57 floodplain management. If the 116.58 appropriation in either year is 116.59 insufficient, the appropriation in the 116.60 other year is available for it. 116.61 $463,000 the first year and $476,000 116.62 the second year are for the 116.63 administrative costs of easement and 117.1 grant programs. 117.2 Any unencumbered balance in the board's 117.3 program of grants does not cancel at 117.4 the end of the first year and is 117.5 available for the second year for the 117.6 same grant program. This appropriation 117.7 is available until expended. If the 117.8 appropriation in either year is 117.9 insufficient, the appropriation in the 117.10 other year is available for it. 117.11 Sec. 7. MINNESOTA-WISCONSIN 117.12 BOUNDARY AREA COMMISSION 194,000 199,000 117.13 Summary by Fund 117.14 General 159,000 163,000 117.15 Natural Resources 35,000 36,000 117.16 This appropriation is only available to 117.17 the extent it is matched by an equal 117.18 amount from the state of Wisconsin. 117.19 $35,000 the first year and $36,000 the 117.20 second year are from the water 117.21 recreation account in the natural 117.22 resources fund for the St. Croix 117.23 management and stewardship program. 117.24 Sec. 8. SCIENCE MUSEUM 117.25 OF MINNESOTA 1,164,000 1,164,000 117.26 Sec. 9. AGRICULTURE 117.27 Subdivision 1. Total 117.28 Appropriation 21,727,000 22,099,000 117.29 Summary by Fund 117.30 General 21,380,000 21,746,000 117.31 Environmental 347,000 353,000 117.32 The amounts that may be spent from this 117.33 appropriation for each program are 117.34 specified in the following subdivisions. 117.35 Subd. 2. Protection Service 117.36 11,340,000 11,554,000 117.37 Summary by Fund 117.38 General 10,993,000 11,201,000 117.39 Environmental 347,000 353,000 117.40 $504,000 the first year and $505,000 117.41 the second year are for diagnostics 117.42 teams. 117.43 $347,000 the first year and $353,000 117.44 the second year are from the 117.45 environmental fund for administrative 117.46 funding for the voluntary cleanup 117.47 program. 117.48 Subd. 3. Agricultural Marketing and Development 118.1 5,521,000 5,610,000 118.2 Notwithstanding Minnesota Statutes, 118.3 section 41A.09, subdivision 3a, the 118.4 total payments from the ethanol 118.5 development account to all producers 118.6 may not exceed $70,892,000 for the 118.7 biennium ending June 30, 2003. If the 118.8 total amount for which all producers 118.9 are eligible in a quarter exceeds the 118.10 amount available for payments, the 118.11 commissioner shall make the payments on 118.12 a pro rata basis. 118.13 $71,000 the first year and $71,000 the 118.14 second year are for transfer to the 118.15 Minnesota grown matching account and 118.16 may be used as grants for Minnesota 118.17 grown promotion under Minnesota 118.18 Statutes, section 17.109. 118.19 $65,000 the first year and $65,000 the 118.20 second year are for beaver damage 118.21 control grants under Minnesota 118.22 Statutes, section 17.110. 118.23 Subd. 4. Administration and 118.24 Financial Assistance 118.25 4,866,000 4,935,000 118.26 $49,000 the first year and $49,000 the 118.27 second year are for family farm 118.28 security interest payment adjustments. 118.29 If the appropriation for either year is 118.30 insufficient, the appropriation for the 118.31 other year is available for it. No new 118.32 loans may be approved in fiscal year 118.33 2002 or 2003. 118.34 $70,000 the first year and $70,000 the 118.35 second year are for the Northern Crops 118.36 Institute. These appropriations may be 118.37 spent to purchase equipment and are 118.38 available until spent. 118.39 $175,000 the first year and $175,000 118.40 the second year are for grants to 118.41 agriculture information centers. The 118.42 grants are only available on a match 118.43 basis. The funds may be released at 118.44 the rate of $4 of state money for each 118.45 $1 of matching nonstate money that is 118.46 raised. 118.47 $115,000 the first year and $115,000 118.48 the second year are for the Seaway Port 118.49 Authority of Duluth. 118.50 $19,000 the first year and $19,000 the 118.51 second year are for a grant to the 118.52 Minnesota Livestock Breeders' 118.53 Association. 118.54 $237,000 the first year and $237,000 118.55 the second year are for the farm 118.56 advocates program. 118.57 Sec. 10. BOARD OF ANIMAL HEALTH 2,823,000 2,763,000 118.58 $200,000 the first year and $200,000 119.1 the second year are for a program to 119.2 control paratuberculosis ("Johne's 119.3 disease") in domestic bovine herds. 119.4 Sec. 11. MINNESOTA HORTICULTURAL 119.5 SOCIETY 82,000 82,000 119.6 Sec. 12. AGRICULTURAL UTILIZATION 119.7 RESEARCH INSTITUTE 4,330,000 4,330,000 119.8 Summary by Fund 119.9 General 4,130,000 4,130,000 119.10 Agriculture Fund 200,000 200,000 119.11 $200,000 the first year and $200,000 119.12 the second year are for hybrid tree 119.13 management research and development of 119.14 an implementation plan for establishing 119.15 hybrid tree plantations in the state. 119.16 This appropriation is available to the 119.17 extent matched by $2 of nonstate 119.18 contributions, either cash or in-kind, 119.19 for each $1 of state money. 119.20 Sec. 13. MINNESOTA RESOURCES 119.21 Subdivision 1. Total 119.22 Appropriation 727,000 338,000 119.23 Summary by Fund 119.24 Minnesota Future 119.25 Resources Fund 389,000 -0- 119.26 Environment and 119.27 Natural Resources 119.28 Trust Fund 338,000 338,000 119.29 Appropriations from the Minnesota 119.30 future resources fund are available for 119.31 either year of the biennium. 119.32 For appropriations from the environment 119.33 and natural resources trust fund, any 119.34 unencumbered balance remaining in the 119.35 first year does not cancel and is 119.36 available for the second year. 119.37 Unless otherwise provided, the amounts 119.38 in this section are available until 119.39 June 30, 2003, when projects must be 119.40 completed and final products delivered. 119.41 Subd. 2. Definitions 119.42 (a) "Future resources fund" means the 119.43 Minnesota future resources fund 119.44 referred to in Minnesota Statutes, 119.45 section 116P.13. 119.46 (b) "Trust fund" means the Minnesota 119.47 environment and natural resources trust 119.48 fund referred to in Minnesota Statutes, 119.49 section 116P.02, subdivision 6. 119.50 Subd. 3. Administration 727,000 338,000 119.51 Summary by Fund 120.1 Future Resources 120.2 Fund 389,000 -0- 120.3 Trust Fund 338,000 338,000 120.4 Legislative Commission on Minnesota 120.5 Resources 120.6 $389,000 of this appropriation is from 120.7 the future resources fund and $338,000 120.8 the first year and $338,000 the second 120.9 year are from the trust fund for 120.10 administration as provided in Minnesota 120.11 Statutes, section 116P.09, subdivision 120.12 5. 120.13 Subd. 4. Carryforward 120.14 (a) The availability of the 120.15 appropriations for the following 120.16 projects is extended to June 30, 2002: 120.17 Laws 1999, chapter 231, section 16, 120.18 subdivision 4, paragraph (m), Como Park 120.19 campus maintenance; subdivision 6, 120.20 paragraph (b), identification of 120.21 sediment sources in agricultural 120.22 watersheds, and paragraph (c), 120.23 accelerated statewide local water plan 120.24 implementation; subdivision 7, 120.25 paragraph (g), Minnesota river basin 120.26 initiative; local leadership, paragraph 120.27 (h), commercial fertilizer plant for 120.28 livestock solid waste processing, and 120.29 paragraph (j), wild rice management 120.30 planning; subdivision 8, paragraph (b), 120.31 tools and training for community-based 120.32 planning; subdivision 10, paragraph 120.33 (g), by-products application to 120.34 agricultural, mineland, and forest 120.35 soils; subdivision 11, paragraph (c), 120.36 Minnesota wolf public education; 120.37 subdivision 12, paragraph (d), Dakota 120.38 county wetland health monitoring 120.39 program, paragraph (e), predicting 120.40 water and forest resources health and 120.41 sustainability, and paragraph (f), 120.42 potential for infant risk from nitrate 120.43 contamination; and subdivision 13, 120.44 paragraph (b), national prairie 120.45 passage; linking isolated prairie 120.46 preserves, paragraph (g), arboretum 120.47 land acquisition and wetlands 120.48 restoration - continuation. 120.49 (b) The availability of the 120.50 appropriations for the following 120.51 projects is extended to June 30, 2004: 120.52 Laws 1999, chapter 231, section 16, 120.53 subdivision 4, paragraph (b), Mesabi 120.54 trail land acquisition and development - 120.55 continuation; and subdivision 11, 120.56 paragraph (f), science outreach and 120.57 integrated learning on soil. 120.58 (c) The availability of the 120.59 appropriation in Laws 1999, chapter 120.60 231, section 16, subdivision 8, 120.61 paragraph (a), resources for 120.62 redevelopment: a community property 120.63 investigation program, is extended to 120.64 June 30, 2002, for additional sites. 121.1 (d) The availability of the 121.2 appropriation in Laws 1999, chapter 121.3 231, section 16, subdivision 9, 121.4 paragraph (c), evaluate biodiesel made 121.5 from waste fats and oils, is extended 121.6 to June 30, 2002, for trial in 121.7 heavy-duty vehicles. 121.8 ARTICLE 17 121.9 HEALTH AND HUMAN SERVICES 121.10 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 121.11 The sums shown in the columns marked "APPROPRIATIONS" are 121.12 appropriated from the general fund, or any other fund named, to 121.13 the agencies and for the purposes specified in the following 121.14 sections of this article, to be available for the fiscal years 121.15 indicated for each purpose. The figures "2002" and "2003" where 121.16 used in this article, mean that the appropriation or 121.17 appropriations listed under them are available for the fiscal 121.18 year ending June 30, 2002, or June 30, 2003, respectively. 121.19 Where a dollar amount appears in parentheses, it means a 121.20 reduction of an appropriation. 121.21 SUMMARY BY FUND 121.22 BIENNIAL 121.23 2002 2003 TOTAL 121.24 General $3,033,873,000 $3,351,990,000 $6,385,863,000 121.25 State Government 121.26 Special Revenue 35,183,000 36,284,000 71,467,000 121.27 Health Care 121.28 Access 214,964,000 271,028,000 485,992,000 121.29 Federal TANF 265,342,000 228,660,000 494,022,000 121.30 Lottery Cash Flow 1,303,000 1,306,000 2,609,000 121.31 TOTAL $3,550,665,000 $3,889,228,000 $7,439,953,000 121.32 APPROPRIATIONS 121.33 Available for the Year 121.34 Ending June 30 121.35 2002 2003 121.36 Sec. 2. COMMISSIONER OF 121.37 HUMAN SERVICES 121.38 Subdivision 1. Total 121.39 Appropriation $3,405,363,000 $3,740,915,000 121.40 Summary by Fund 121.41 General 2,937,141,000 3,253,356,000 121.42 State Government 121.43 Special Revenue 520,000 534,000 122.1 Health Care 122.2 Access 208,057,000 264,039,000 122.3 Federal TANF 258,342,000 221,680,000 122.4 Lottery Cash Flow 1,303,000 1,306,000 122.5 TOTAL 3,405,363,000 3,740,915,000 122.6 [RECEIPTS FOR SYSTEMS PROJECTS.] 122.7 Appropriations and federal receipts for 122.8 information system projects for MAXIS, 122.9 PRISM, MMIS, and SSIS must be deposited 122.10 in the state system account authorized 122.11 in Minnesota Statutes, section 122.12 256.014. Money appropriated for 122.13 computer projects approved by the 122.14 Minnesota office of technology, funded 122.15 by the legislature, and approved by the 122.16 commissioner of finance may be 122.17 transferred from one project to another 122.18 and from development to operations as 122.19 the commissioner of human services 122.20 considers necessary. Any unexpended 122.21 balance in the appropriation for these 122.22 projects does not cancel but is 122.23 available for ongoing development and 122.24 operations. 122.25 [GIFTS.] Notwithstanding Minnesota 122.26 Statutes, chapter 7, the commissioner 122.27 may accept on behalf of the state 122.28 additional funding from sources other 122.29 than state funds for the purpose of 122.30 financing the cost of assistance 122.31 program grants or nongrant 122.32 administration. All additional funding 122.33 is appropriated to the commissioner for 122.34 use as designated by the grantor of 122.35 funding. 122.36 [SYSTEMS CONTINUITY.] In the event of 122.37 disruption of technical systems or 122.38 computer operations, the commissioner 122.39 may use available grant appropriations 122.40 to ensure continuity of payments for 122.41 maintaining the health, safety, and 122.42 well-being of clients served by 122.43 programs administered by the department 122.44 of human services. Grant funds must be 122.45 used in a manner consistent with the 122.46 original intent of the appropriation. 122.47 [SPECIAL REVENUE FUND INFORMATION.] On 122.48 December 1, 2001, and December 1, 2002, 122.49 the commissioner shall provide the 122.50 chairs of the house health and human 122.51 services finance committee and the 122.52 senate health, human services, and 122.53 corrections budget division with 122.54 detailed fund balance information for 122.55 each special revenue fund account. 122.56 [FEDERAL ADMINISTRATIVE REIMBURSEMENT.] 122.57 Federal administrative reimbursement 122.58 resulting from MinnesotaCare outreach 122.59 grants and the Minnesota senior health 122.60 options project are appropriated to the 122.61 commissioner for these activities. 122.62 [NONFEDERAL SHARE TRANSFERS.] The 123.1 nonfederal share of activities for 123.2 which federal administrative 123.3 reimbursement is appropriated to the 123.4 commissioner may be transferred to the 123.5 special revenue fund. 123.6 [TANF FUNDS APPROPRIATED TO OTHER 123.7 ENTITIES.] Any expenditures from the 123.8 TANF block grant shall be expended in 123.9 accordance with the requirements and 123.10 limitations of part A of title IV of 123.11 the Social Security Act, as amended, 123.12 and any other applicable federal 123.13 requirement or limitation. Prior to 123.14 any expenditure of these funds, the 123.15 commissioner shall assure that funds 123.16 are expended in compliance with the 123.17 requirements and limitations of federal 123.18 law and that any reporting requirements 123.19 of federal law are met. It shall be 123.20 the responsibility of any entity to 123.21 which these funds are appropriated to 123.22 implement a memorandum of understanding 123.23 with the commissioner that provides the 123.24 necessary assurance of compliance prior 123.25 to any expenditure of funds. The 123.26 commissioner shall receipt TANF funds 123.27 appropriated to other state agencies 123.28 and coordinate all related interagency 123.29 accounting transactions necessary to 123.30 implement these appropriations. 123.31 Unexpended TANF funds appropriated to 123.32 any state, local, or nonprofit entity 123.33 cancel at the end of the state fiscal 123.34 year unless appropriation language 123.35 permits otherwise. 123.36 [TANF FUNDS TRANSFERRED TO OTHER 123.37 FEDERAL GRANTS.] The commissioner must 123.38 authorize transfers from TANF to other 123.39 federal block grants so that funds are 123.40 available to meet the annual 123.41 expenditure needs as appropriated. 123.42 Transfers may be authorized prior to 123.43 the expenditure year with the agreement 123.44 of the receiving entity. Transferred 123.45 funds must be expended in the year for 123.46 which the funds were appropriated 123.47 unless appropriation language permits 123.48 otherwise. In accelerating transfer 123.49 authorizations, the commissioner must 123.50 aim to preserve the future potential 123.51 transfer capacity from TANF to other 123.52 block grants. 123.53 [TANF MAINTENANCE OF EFFORT.] (a) In 123.54 order to meet the basic maintenance of 123.55 effort (MOE) requirements of the TANF 123.56 block grant specified under Code of 123.57 Federal Regulations, title 45, section 123.58 263.1, the commissioner may only report 123.59 nonfederal money expended for allowable 123.60 activities listed in the following 123.61 clauses as TANF MOE expenditures: 123.62 (1) MFIP cash and food assistance 123.63 benefits under Minnesota Statutes, 123.64 chapter 256J; 123.65 (2) the child care assistance programs 123.66 under Minnesota Statutes, sections 124.1 119B.03 and 119B.05, and county child 124.2 care administrative costs under 124.3 Minnesota Statutes, section 119B.15; 124.4 (3) state and county MFIP 124.5 administrative costs under Minnesota 124.6 Statutes, chapters 256J and 256K; 124.7 (4) state, county, and tribal MFIP 124.8 employment services under Minnesota 124.9 Statutes, chapters 256J and 256K; and 124.10 (5) expenditures made on behalf of 124.11 noncitizen MFIP recipients who qualify 124.12 for the medical assistance without 124.13 federal financial participation program 124.14 under Minnesota Statutes, section 124.15 256B.06, subdivision 4, paragraphs (d), 124.16 (e), and (j). 124.17 (b) The commissioner shall ensure that 124.18 sufficient qualified nonfederal 124.19 expenditures are made each year to meet 124.20 the state's TANF MOE requirements. For 124.21 the activities listed in paragraph (a), 124.22 clauses (2) to (5), the commissioner 124.23 may only report expenditures that are 124.24 excluded from the definition of 124.25 assistance under Code of Federal 124.26 Regulations, title 45, section 260.31. 124.27 (c) By August 31 of each year, the 124.28 commissioner shall make a preliminary 124.29 calculation to determine the likelihood 124.30 that the state will meet its annual 124.31 federal work participation requirement 124.32 under Code of Federal Regulations, 124.33 title 45, sections 261.21 and 261.23, 124.34 after adjustment for any caseload 124.35 reduction credit under Code of Federal 124.36 Regulations, title 45, section 261.41. 124.37 If the commissioner determines that the 124.38 state will meet its federal work 124.39 participation rate for the federal 124.40 fiscal year ending that September, the 124.41 commissioner may reduce the expenditure 124.42 under paragraph (a), clause (1), to the 124.43 extent allowed under Code of Federal 124.44 Regulations, title 45, section 124.45 263.1(a)(2). 124.46 (d) For fiscal years beginning with 124.47 state fiscal year 2003, the 124.48 commissioner shall ensure that the 124.49 maintenance of effort used by the 124.50 commissioner of finance for the 124.51 February and November forecasts 124.52 required under Minnesota Statutes, 124.53 section 16A.103, contains expenditures 124.54 under paragraph (a), clause (1), equal 124.55 to at least 25 percent of the total 124.56 required under Code of Federal 124.57 Regulations, title 45, section 263.1. 124.58 (e) If nonfederal expenditures for the 124.59 programs and purposes listed in 124.60 paragraph (a) are insufficient to meet 124.61 the state's TANF MOE requirements, the 124.62 commissioner shall recommend additional 124.63 allowable sources of nonfederal 124.64 expenditures to the legislature, if the 125.1 legislature is or will be in session to 125.2 take action to specify additional 125.3 sources of nonfederal expenditures for 125.4 TANF MOE before a federal penalty is 125.5 imposed. The commissioner shall 125.6 otherwise provide notice to the 125.7 legislative commission on planning and 125.8 fiscal policy under paragraph (g). 125.9 (f) If the commissioner uses authority 125.10 granted under Laws 1999, chapter 245, 125.11 article 1, section 10, or similar 125.12 authority granted by a subsequent 125.13 legislature, to meet the state's TANF 125.14 MOE requirements in a reporting period, 125.15 the commissioner shall inform the 125.16 chairs of the appropriate legislative 125.17 committees about all transfers made 125.18 under that authority for this purpose. 125.19 (g) If the commissioner determines that 125.20 nonfederal expenditures for the 125.21 programs under paragraph (a), are 125.22 insufficient to meet TANF MOE 125.23 expenditure requirements, and if the 125.24 legislature is not or will not be in 125.25 session to take timely action to avoid 125.26 a federal penalty, the commissioner may 125.27 report nonfederal expenditures from 125.28 other allowable sources as TANF MOE 125.29 expenditures after the requirements of 125.30 this paragraph are met. The 125.31 commissioner may report nonfederal 125.32 expenditures in addition to those 125.33 specified under paragraph (a) as 125.34 nonfederal TANF MOE expenditures, but 125.35 only ten days after the commissioner of 125.36 finance has first submitted the 125.37 commissioner's recommendations for 125.38 additional allowable sources of 125.39 nonfederal TANF MOE expenditures to the 125.40 members of the legislative commission 125.41 on planning and fiscal policy for their 125.42 review. 125.43 (h) The commissioner of finance shall 125.44 not incorporate any changes in federal 125.45 TANF expenditures or nonfederal 125.46 expenditures for TANF MOE that may 125.47 result from reporting additional 125.48 allowable sources of nonfederal TANF 125.49 MOE expenditures under the interim 125.50 procedures in paragraph (g) into the 125.51 February or November forecasts required 125.52 under Minnesota Statutes, section 125.53 16A.103, unless the commissioner of 125.54 finance has approved the additional 125.55 sources of expenditures under paragraph 125.56 (g). 125.57 (i) The provisions of Minnesota 125.58 Statutes, section 256.011, subdivision 125.59 3, which require that federal grants or 125.60 aids secured or obtained under that 125.61 subdivision be used to reduce any 125.62 direct appropriations provided by law, 125.63 do not apply if the grants or aids are 125.64 federal TANF funds. 125.65 (j) Notwithstanding section 13 of this 125.66 article, paragraphs (a) to (j) expire 126.1 June 30, 2005. 126.2 Subd. 2. Agency Management 126.3 General 29,304,000 30,341,000 126.4 State Government 126.5 Special Revenue 403,000 415,000 126.6 Health Care 126.7 Access 3,631,000 3,673,000 126.8 Federal TANF 165,000 165,000 126.9 The amounts that may be spent from the 126.10 appropriation for each purpose are as 126.11 follows: 126.12 (a) Financial Operations 126.13 General 6,872,000 7,041,000 126.14 Health Care 126.15 Access 815,000 828,000 126.16 Federal TANF 165,000 165,000 126.17 (b) Legal & Regulation Operations 126.18 General 6,572,000 6,757,000 126.19 State Government 126.20 Special Revenue 403,000 415,000 126.21 Health Care 126.22 Access 239,000 244,000 126.23 (c) Management Operations 126.24 General 15,860,000 16,543,000 126.25 Health Care 126.26 Access 2,577,000 2,601,000 126.27 Subd. 3. Administrative Reimbursement/ 126.28 Passthrough 126.29 Federal TANF 65,565,000 56,992,000 126.30 Subd. 4. Children's Services Grants 126.31 General 56,608,000 57,121,000 126.32 Federal TANF 1,640,000 1,640,000 126.33 [ADOPTION ASSISTANCE INCENTIVE GRANTS.] 126.34 Federal funds available during the 126.35 biennium ending June 30, 2003, for 126.36 adoption incentive grants are 126.37 appropriated to the commissioner for 126.38 these purposes. 126.39 Subd. 5. Children's Services Management 126.40 General 3,770,000 3,849,000 126.41 Subd. 6. Basic Health Care Grants 126.42 Summary by Fund 126.43 General 1,112,028,000 1,300,537,000 127.1 Health Care 127.2 Access 189,217,000 244,838,000 127.3 The amounts that may be spent from this 127.4 appropriation for each purpose are as 127.5 follows: 127.6 (a) MinnesotaCare Grants 127.7 Health Care 127.8 Access 188,467,000 244,088,000 127.9 [MINNESOTACARE FEDERAL RECEIPTS.] 127.10 Receipts received as a result of 127.11 federal participation pertaining to 127.12 administrative costs of the Minnesota 127.13 health care reform waiver shall be 127.14 deposited as nondedicated revenue in 127.15 the health care access fund. Receipts 127.16 received as a result of federal 127.17 participation pertaining to grants 127.18 shall be deposited in the federal fund 127.19 and shall offset health care access 127.20 funds for payments to providers. 127.21 [MINNESOTACARE FUNDING.] The 127.22 commissioner may expend money 127.23 appropriated from the health care 127.24 access fund for MinnesotaCare in either 127.25 fiscal year of the biennium. 127.26 (b) MA Basic Health Care Grants - 127.27 Families and Children 127.28 General 434,077,000 516,864,000 127.29 (c) MA Basic Health Care Grants - 127.30 Elderly and Disabled 127.31 General 508,028,000 591,011,000 127.32 (d) General Assistance Medical Care 127.33 General 154,768,000 174,220,000 127.34 (e) Health Care Grants - Other Assistance 127.35 General 15,155,000 18,442,000 127.36 Health Care Access 750,000 750,000 127.37 Subd. 7. Basic Health Care Management 127.38 General 20,825,000 21,201,000 127.39 Health Care 127.40 Access 13,876,000 14,179,000 127.41 The amounts that may be spent from this 127.42 appropriation for each purpose are as 127.43 follows: 127.44 (a) Health Care Policy Administration 127.45 General 2,820,000 2,860,000 127.46 Health Care 127.47 Access 578,000 595,000 127.48 (b) Health Care Operations 127.49 General 18,005,000 18,341,000 128.1 Health Care 128.2 Access 13,298,000 13,584,000 128.3 [PREPAID MEDICAL PROGRAMS.] The 128.4 nonfederal share of the prepaid medical 128.5 assistance program fund, which has been 128.6 appropriated to fund county managed 128.7 care advocacy and enrollment operating 128.8 costs, shall be disbursed as grants 128.9 using either a reimbursement or block 128.10 grant mechanism and may also be 128.11 transferred between grants and nongrant 128.12 administration costs with approval of 128.13 the commissioner of finance. 128.14 Subd. 8. State-Operated Services 128.15 General 214,887,000 215,930,000 128.16 [MITIGATION RELATED TO STATE-OPERATED 128.17 SERVICES RESTRUCTURING.] Money 128.18 appropriated to finance mitigation 128.19 expenses related to restructuring 128.20 state-operated services programs and 128.21 administrative services may be 128.22 transferred between fiscal years within 128.23 the biennium. 128.24 [STATE-OPERATED SERVICES CHEMICAL 128.25 DEPENDENCY PROGRAMS.] When the 128.26 operations of the state-operated 128.27 services chemical dependency fund 128.28 created in Minnesota Statutes, section 128.29 246.18, subdivision 2, are impeded by 128.30 projected cash deficiencies resulting 128.31 from delays in the receipt of grants, 128.32 dedicated income, or other similar 128.33 receivables, and when the deficiencies 128.34 would be corrected within the budget 128.35 period involved, the commissioner of 128.36 finance may transfer general fund cash 128.37 reserves into this account as necessary 128.38 to meet cash demands. The cash flow 128.39 transfers must be returned to the 128.40 general fund in the fiscal year that 128.41 the transfer was made. Any interest 128.42 earned on general fund cash flow 128.43 transfers accrues to the general fund 128.44 and not the state-operated services 128.45 chemical dependency fund. 128.46 [STATE-OPERATED SERVICES 128.47 RESTRUCTURING.] For purposes of 128.48 restructuring state-operated services, 128.49 any state-operated services employee 128.50 whose position is to be eliminated 128.51 shall be afforded the options provided 128.52 in applicable collective bargaining 128.53 agreements. All salary and mitigation 128.54 allocations from fiscal year 2002 shall 128.55 be carried forward into fiscal year 128.56 2003. Provided there is no conflict 128.57 with any collective bargaining 128.58 agreement, any state-operated services 128.59 position reduction must only be 128.60 accomplished through mitigation, 128.61 attrition, transfer, and other measures 128.62 as provided in state or applicable 128.63 collective bargaining agreements and in 128.64 Minnesota Statutes, section 252.50, 128.65 subdivision 11, and not through layoff. 129.1 [REPAIRS AND BETTERMENTS.] The 129.2 commissioner may transfer unencumbered 129.3 appropriation balances between fiscal 129.4 years for the state residential 129.5 facilities repairs and betterments 129.6 account and special equipment. 129.7 Subd. 9. Continuing Care Grants 129.8 General 1,346,056,000 1,470,731,000 129.9 Lottery Cash Flow 1,158,000 1,158,000 129.10 The amounts that may be spent from this 129.11 appropriation for each purpose are as 129.12 follows: 129.13 (a) Community Social Services 129.14 Block Grants 129.15 49,354,000 50,338,000 129.16 [CSSA TRADITIONAL APPROPRIATION.] 129.17 Notwithstanding Minnesota Statutes, 129.18 section 256E.06, subdivisions 1 and 2, 129.19 the appropriations available under that 129.20 section in fiscal years 2002 and 2003 129.21 must be distributed to each county 129.22 proportionately to the aid received by 129.23 the county in calendar year 2000. 129.24 (b) Aging Adult Service Grants 129.25 7,654,000 7,486,000 129.26 (c) Deaf and Hard-of-Hearing 129.27 Services Grants 129.28 1,823,000 1,725,000 129.29 (d) Mental Health Grants 129.30 General 49,864,000 51,325,000 129.31 Lottery Cash Flow 1,158,000 1,158,000 129.32 (e) Community Support Grants 129.33 12,698,000 12,920,000 129.34 (f) Medical Assistance Long-Term 129.35 Care Waivers and Home Care 129.36 450,301,000 526,839,000 129.37 [NURSING FACILITY OPERATED BY THE RED 129.38 LAKE BAND OF CHIPPEWA INDIANS.] (1) The 129.39 medical assistance payment rates for 129.40 the 47-bed nursing facility operated by 129.41 the Red Lake Band of Chippewa Indians 129.42 must be calculated according to 129.43 allowable reimbursement costs under the 129.44 medical assistance program, as 129.45 specified in Minnesota Statutes, 129.46 section 246.50, and are subject to the 129.47 facility-specific Medicare upper limits. 129.48 (2) In addition, the commissioner shall 129.49 make available rate adjustments for the 129.50 biennium beginning July 1, 2001, on the 129.51 same basis as the adjustments provided 130.1 to nursing facilities under Minnesota 130.2 Statutes, section 256B.431. The 130.3 commissioner must use the facility's 130.4 final 2000 and 2001 Medicare cost 130.5 reports to calculate the adjustments. 130.6 This rate increase shall become part of 130.7 the facility's base rate for future 130.8 rate years. 130.9 (g) Medical Assistance Long-Term 130.10 Care Facilities 130.11 584,090,000 617,849,000 130.12 (h) Alternative Care Grants 130.13 General 63,707,000 65,467,000 130.14 [ALTERNATIVE CARE TRANSFER.] Any money 130.15 allocated to the alternative care 130.16 program that is not spent for the 130.17 purposes indicated does not cancel but 130.18 shall be transferred to the medical 130.19 assistance account. 130.20 [ALTERNATIVE CARE APPROPRIATION.] The 130.21 commissioner may expend the money 130.22 appropriated for the alternative care 130.23 program for that purpose in either year 130.24 of the biennium. 130.25 (i) Group Residential Housing 130.26 General 77,783,000 84,851,000 130.27 (j) Chemical Dependency 130.28 Entitlement Grants 130.29 General 42,454,000 45,603,000 130.30 (k) Chemical Dependency 130.31 Nonentitlement Grants 130.32 General 6,328,000 6,328,000 130.33 Subd. 10. Continuing Care Management 130.34 General 18,537,000 18,916,000 130.35 State Government 130.36 Special Revenue 117,000 119,000 130.37 Lottery Cash Flow 145,000 148,000 130.38 Subd. 11. Economic Support Grants 130.39 General 98,357,000 97,339,000 130.40 Federal TANF 190,229,000 162,140,000 130.41 The amounts that may be spent from this 130.42 appropriation for each purpose are as 130.43 follows: 130.44 (a) Assistance to Families Grants 130.45 General 34,199,000 33,897,000 130.46 Federal TANF 128,066,000 99,977,000 130.47 (b) Work Grants 131.1 General 10,281,000 10,281,000 131.2 Federal TANF 60,903,000 60,903,000 131.3 [LOCAL INTERVENTION GRANTS FOR 131.4 SELF-SUFFICIENCY CARRYFORWARD.] 131.5 Unexpended funds appropriated for local 131.6 intervention grants under Minnesota 131.7 Statutes, section 256J.625, for fiscal 131.8 year 2002 do not cancel but are 131.9 available to the commissioner for these 131.10 purposes in fiscal year 2003. 131.11 (c) Economic Support Grants - 131.12 Other Assistance 131.13 General 2,682,000 1,931,000 131.14 Federal TANF 1,000,000 1,000,000 131.15 (d) Child Support Enforcement 131.16 General 4,189,000 4,189,000 131.17 Federal TANF 260,000 260,000 131.18 [CHILD SUPPORT PAYMENT CENTER.] 131.19 Payments to the commissioner from other 131.20 governmental units, private 131.21 enterprises, and individuals for 131.22 services performed by the child support 131.23 payment center must be deposited in the 131.24 state systems account authorized under 131.25 Minnesota Statutes, section 256.014. 131.26 These payments are appropriated to the 131.27 commissioner for the operation of the 131.28 child support payment center or system, 131.29 according to Minnesota Statutes, 131.30 section 256.014. 131.31 (e) General Assistance 131.32 General 17,156,000 15,700,000 131.33 [GENERAL ASSISTANCE STANDARD.] The 131.34 commissioner shall set the monthly 131.35 standard of assistance for general 131.36 assistance units consisting of an adult 131.37 recipient who is childless and 131.38 unmarried or living apart from his or 131.39 her parents or a legal guardian at 131.40 $203. The commissioner may reduce this 131.41 amount in accordance with Laws 1997, 131.42 chapter 85, article 3, section 54. 131.43 (f) Minnesota Supplemental Aid 131.44 General 29,600,000 31,091,000 131.45 (g) Refugee Services 131.46 General 250,000 250,000 131.47 Subd. 12. Economic Support 131.48 Management 131.49 General 36,769,000 37,391,000 131.50 Health Care 131.51 Access 1,333,000 1,349,000 132.1 Federal TANF 743,000 743,000 132.2 The amounts that may be spent from this 132.3 appropriation for each purpose are as 132.4 follows: 132.5 (a) Economic Support Policy 132.6 Administration 132.7 General 6,513,000 6,647,000 132.8 Federal TANF 743,000 743,000 132.9 [FOOD STAMP ADMINISTRATIVE 132.10 REIMBURSEMENT.] The commissioner shall 132.11 reduce quarterly food stamp 132.12 administrative reimbursement to 132.13 counties in fiscal years 2002 and 2003 132.14 by the amount that the United States 132.15 Department of Health and Human Services 132.16 determines to be the county random 132.17 moment study share of the food stamp 132.18 adjustment under Public Law Number 132.19 105-185. The reductions shall be 132.20 allocated to each county in proportion 132.21 to each county's contribution, if any, 132.22 to the amount of the adjustment. Any 132.23 adjustment to medical assistance 132.24 administrative reimbursement that is 132.25 based on the United States Department 132.26 of Health and Human Services' 132.27 determinations under Public Law Number 132.28 105-185 shall be distributed to 132.29 counties in the same manner. 132.30 (b) Economic Support Operations 132.31 General 30,256,000 30,744,000 132.32 Health Care 132.33 Access 1,333,000 1,349,000 132.34 [SPENDING AUTHORITY FOR FOOD STAMP 132.35 ENHANCED FUNDING.] In the event that 132.36 Minnesota qualifies for United States 132.37 Department of Agriculture Food and 132.38 Nutrition Services Food Stamp Program 132.39 enhanced funding beginning in federal 132.40 fiscal year 1998, the money is 132.41 appropriated to the commissioner for 132.42 the purposes of the program. The 132.43 commissioner may retain 25 percent of 132.44 the enhanced funding, with the 132.45 remaining 75 percent divided among the 132.46 counties according to a formula that 132.47 takes into account each county's impact 132.48 on the statewide food stamp error rate. 132.49 Sec. 3. COMMISSIONER OF HEALTH 132.50 Subdivision 1. Total 132.51 Appropriation 101,248,000 102,862,000 132.52 Summary by Fund 132.53 General 62,995,000 63,708,000 132.54 State Government 132.55 Special Revenue 24,346,000 25,165,000 132.56 Health Care 133.1 Access 6,907,000 6,989,000 133.2 Federal TANF 7,000,000 7,000,000 133.3 Subd. 2. Family and 133.4 Community Health 51,448,000 51,640,000 133.5 Summary by Fund 133.6 General 39,805,000 39,941,000 133.7 State Government 133.8 Special Revenue 961,000 987,000 133.9 Health Care 133.10 Access 3,682,000 3,712,000 133.11 Federal TANF 7,000,000 7,000,000 133.12 [WIC TRANSFERS.] The general fund 133.13 appropriation for the women, infants, 133.14 and children (WIC) food supplement 133.15 program is available for either year of 133.16 the biennium. Transfers of these funds 133.17 between fiscal years must be either to 133.18 maximize federal funds or to minimize 133.19 fluctuations in the number of program 133.20 participants. 133.21 [MINNESOTA CHILDREN WITH SPECIAL HEALTH 133.22 NEEDS CARRYFORWARD.] General fund 133.23 appropriations for treatment services 133.24 in the services for Minnesota children 133.25 with special health needs program are 133.26 available for either year of the 133.27 biennium. 133.28 Subd. 3. Access and Quality 133.29 Improvement 16,649,000 16,784,000 133.30 Summary by Fund 133.31 General 5,581,000 5,549,000 133.32 State Government 133.33 Special Revenue 7,843,000 7,958,000 133.34 Health Care 133.35 Access 3,225,000 3,277,000 133.36 Subd. 4. Health Protection 27,646,000 28,521,000 133.37 Summary by Fund 133.38 General 12,255,000 12,456,000 133.39 State Government 133.40 Special Revenue 15,391,000 16,065,000 133.41 Subd. 5. Management and 133.42 Support Services 5,505,000 5,917,000 133.43 Summary by Fund 133.44 General 5,354,000 5,762,000 133.45 State Government 133.46 Special Revenue 151,000 155,000 133.47 Sec. 4. VETERANS NURSING 133.48 HOMES BOARD 28,948,000 30,030,000 134.1 [VETERANS HOMES SPECIAL REVENUE 134.2 ACCOUNT.] The general fund 134.3 appropriations made to the board may be 134.4 transferred to a veterans homes special 134.5 revenue account in the special revenue 134.6 fund in the same manner as other 134.7 receipts are deposited according to 134.8 Minnesota Statutes, section 198.34, and 134.9 are appropriated to the board for the 134.10 operation of board facilities and 134.11 programs. 134.12 [SETTING COST OF CARE.] The cost of 134.13 care for the domiciliary residents at 134.14 the Minneapolis veterans home for 134.15 fiscal year 2002 and fiscal year 2003 134.16 shall be calculated based on 100 134.17 percent occupancy. 134.18 Sec. 5. HEALTH-RELATED BOARDS 134.19 Subdivision 1. Total 134.20 Appropriation 10,317,000 10,585,000 134.21 [STATE GOVERNMENT SPECIAL REVENUE 134.22 FUND.] The appropriations in this 134.23 section are from the state government 134.24 special revenue fund. 134.25 [NO SPENDING IN EXCESS OF REVENUES.] 134.26 The commissioner of finance shall not 134.27 permit the allotment, encumbrance, or 134.28 expenditure of money appropriated in 134.29 this section in excess of the 134.30 anticipated biennial revenues or 134.31 accumulated surplus revenues from fees 134.32 collected by the boards. Neither this 134.33 provision nor Minnesota Statutes, 134.34 section 214.06, applies to transfers 134.35 from the general contingent account. 134.36 Subd. 2. Board of Chiropractic 134.37 Examiners 372,000 384,000 134.38 Subd. 3. Board of Dentistry 831,000 855,000 134.39 Subd. 4. Board of Dietetic 134.40 and Nutrition Practice 98,000 101,000 134.41 Subd. 5. Board of Marriage and 134.42 Family Therapy 114,000 118,000 134.43 Subd. 6. Board of Medical 134.44 Practice 3,334,000 3,400,000 134.45 Subd. 7. Board of Nursing 2,490,000 2,555,000 134.46 [HEALTH PROFESSIONAL SERVICES 134.47 ACTIVITY.] Of these appropriations, 134.48 $392,000 the first year and $403,000 134.49 the second year are for the health 134.50 professional services activity. 134.51 Subd. 8. Board of Nursing 134.52 Home Administrators 192,000 198,000 134.53 Subd. 9. Board of Optometry 93,000 96,000 134.54 Subd. 10. Board of Pharmacy 1,172,000 1,207,000 135.1 [ADMINISTRATIVE SERVICES UNIT.] Of this 135.2 appropriation, $279,000 the first year 135.3 and $287,000 the second year are for 135.4 the health boards administrative 135.5 services unit. The administrative 135.6 services unit may receive and expend 135.7 reimbursements for services performed 135.8 for other agencies. 135.9 Subd. 11. Board of Physical Therapy 191,000 197,000 135.10 Subd. 12. Board of Podiatry 43,000 45,000 135.11 Subd. 13. Board of Psychology 550,000 567,000 135.12 Subd. 14. Board of Social Work 679,000 699,000 135.13 Subd. 15. Board of Veterinary 135.14 Medicine 158,000 163,000 135.15 Sec. 6. EMERGENCY MEDICAL 135.16 SERVICES BOARD 2,502,000 2,539,000 135.17 Sec. 7. COUNCIL ON DISABILITY 692,000 714,000 135.18 Sec. 8. OMBUDSMAN FOR MENTAL 135.19 HEALTH AND MENTAL RETARDATION 1,419,000 1,462,000 135.20 Sec. 9. OMBUDSMAN 135.21 FOR FAMILIES 176,000 181,000 135.22 Sec. 10. TRANSFERS 135.23 Subdivision 1. Grants 135.24 The commissioner of human services, 135.25 with the approval of the commissioner 135.26 of finance, and after notification of 135.27 the chair of the senate health and 135.28 family security budget division and the 135.29 chair of the house health and human 135.30 services finance committee, may 135.31 transfer unencumbered appropriation 135.32 balances for the biennium ending June 135.33 30, 2003, within fiscal years among the 135.34 MFIP, general assistance, general 135.35 assistance medical care, medical 135.36 assistance, Minnesota supplemental aid, 135.37 and group residential housing programs, 135.38 and the entitlement portion of the 135.39 chemical dependency consolidated 135.40 treatment fund, and between fiscal 135.41 years of the biennium. 135.42 Subd. 2. Administration 135.43 Positions, salary money, and nonsalary 135.44 administrative money may be transferred 135.45 within the departments of human 135.46 services and health and within the 135.47 programs operated by the veterans 135.48 nursing homes board as the 135.49 commissioners and the board consider 135.50 necessary, with the advance approval of 135.51 the commissioner of finance. The 135.52 commissioner or the board shall inform 135.53 the chairs of the house health and 135.54 human services finance committee and 135.55 the senate health and family security 135.56 budget division quarterly about 135.57 transfers made under this provision. 136.1 Subd. 3. Prohibited Transfers 136.2 Grant money shall not be transferred to 136.3 operations within the departments of 136.4 human services and health and within 136.5 the programs operated by the veterans 136.6 nursing homes board without the 136.7 approval of the legislature. 136.8 Sec. 11. INDIRECT COSTS NOT TO 136.9 FUND PROGRAMS. 136.10 The commissioners of health and of 136.11 human services shall not use indirect 136.12 cost allocations to pay for the 136.13 operational costs of any program for 136.14 which they are responsible. 136.15 Sec. 12. CARRYOVER LIMITATION 136.16 None of the appropriations in this act 136.17 which are allowed to be carried forward 136.18 from fiscal year 2002 to fiscal year 136.19 2003 shall become part of the base 136.20 level funding for the 2004-2005 136.21 biennial budget, unless specifically 136.22 directed by the legislature. 136.23 Sec. 13. SUNSET OF UNCODIFIED LANGUAGE 136.24 All uncodified language contained in 136.25 this article expires on June 30, 2003, 136.26 unless a different expiration date is 136.27 explicit. 136.28 Sec. 14. Minnesota Statutes 2000, section 256B.431, is 136.29 amended by adding a subdivision to read: 136.30 Subd. 31. [NURSING FACILITY RATE INCREASES BEGINNING JULY 136.31 1, 2001, AND JULY 1, 2002.] (a) For the rate years beginning 136.32 July 1, 2001, and July 1, 2002, the commissioner shall make 136.33 available to each nursing facility reimbursed under this section 136.34 or section 256B.434 an adjustment of 3.0 percent to the total 136.35 operating payment rates in effect on June 30, 2001, and June 30, 136.36 2002, respectively. The operating payment rate in effect on 136.37 June 30, 2001, must include the adjustment in subdivision 2i, 136.38 paragraph (c). The adjustment must be used to increase the 136.39 wages of all employees except management fees, the 136.40 administrator, and central office staff and to pay associated 136.41 costs for FICA, the Medicare tax, workers' compensation 136.42 premiums, and federal and state unemployment insurance. 136.43 Money received by a facility as a result of the additional 136.44 rate increase provided under this paragraph must be used only 136.45 for wage increases implemented on or after July 1, 2001, or July 137.1 1, 2002, respectively, and must not be used for wage increases 137.2 implemented prior to those dates. 137.3 (b) Nursing facilities may apply for the wage-related 137.4 payment rate adjustment calculated under paragraph (a). The 137.5 application must be made to the commissioner and contain a plan 137.6 by which the nursing facility will distribute the payment rate 137.7 adjustment to employees of the nursing facility. For nursing 137.8 facilities in which the employees are represented by an 137.9 exclusive bargaining representative, an agreement negotiated and 137.10 agreed to by the employer and the exclusive bargaining 137.11 representative constitutes the plan. A negotiated agreement may 137.12 constitute the plan only if the agreement is finalized after the 137.13 date of enactment of all increases for the rate year. The 137.14 commissioner shall review the plan to ensure that the 137.15 wage-related payment rate adjustment per diem is used as 137.16 provided in paragraph (a). To be eligible, a facility must 137.17 submit its plan for the wage distribution by December 31 each 137.18 year. If a facility's plan for wage distribution is effective 137.19 for its employees after July 1 of the year that the funds are 137.20 available, the payment rate adjustment per diem is effective the 137.21 same date as its plan. 137.22 (c) A hospital-attached nursing facility may include costs 137.23 in their distribution plan for wages and wage-related costs of 137.24 employees in the organization's shared services departments, 137.25 provided that: 137.26 (1) the nursing facility and the hospital share common 137.27 ownership; and 137.28 (2) adjustments for hospital services using the 137.29 diagnostic-related grouping payment rates per admission under 137.30 medical assistance or Medicare are less than three percent 137.31 during the 12 months prior to the effective date of this 137.32 increase. 137.33 If a hospital-attached facility meets the qualifications in 137.34 this paragraph, the difference between the rate increase 137.35 approved for nursing facility services and the rate increase 137.36 approved for hospital services may be permitted as a 138.1 distribution in the hospital-attached facility's plan regardless 138.2 of whether the use of those funds is shown as being attributable 138.3 to employee hours worked in the nursing facility or employee 138.4 hours worked in the hospital. 138.5 For the purposes of this paragraph, a hospital-attached 138.6 nursing facility is one that meets the definition under 138.7 subdivision 2j, or, in the case of a facility reimbursed under 138.8 section 256B.434, met this definition at the time their last 138.9 payment rate was established under Minnesota Rules, parts 138.10 9549.0010 to 9549.0080, and this section. 138.11 (d) A copy of the approved distribution plan must be made 138.12 available to all employees by giving each employee a copy or by 138.13 posting it in an area of the nursing facility to which all 138.14 employees have access. If an employee does not receive the wage 138.15 adjustment described in the facility's approved plan and is 138.16 unable to resolve the problem with the facility's management or 138.17 through the employee's union representative, the employee may 138.18 contact the commissioner at an address or telephone number 138.19 provided by the commissioner and included in the approved plan. 138.20 (e) Notwithstanding section 256B.48, subdivision 1, clause 138.21 (a), upon the request of a nursing facility, the commissioner 138.22 may authorize the facility to raise per diem rates for 138.23 private-pay residents on July 1 by the amount anticipated to be 138.24 required upon implementation of the wage-related increase 138.25 available under this subdivision. The commissioner shall 138.26 require any amounts collected under this paragraph to be placed 138.27 in an escrow account until the medical assistance rate is 138.28 finalized. The commissioner shall conduct audits as necessary 138.29 to ensure that: 138.30 (1) the amounts collected are retained in escrow until 138.31 medical assistance rates are increased to reflect the 138.32 wage-related adjustment; and 138.33 (2) any amounts collected from private-pay residents in 138.34 excess of the final medical assistance wage-related rate 138.35 increase are repaid to the private-pay residents with interest 138.36 at the rate used by the commissioner of revenue for the late 139.1 payment of taxes and in effect on the date the distribution plan 139.2 is approved by the commissioner of human services. 139.3 (f) For the rate year beginning July 1, 2001, the 139.4 commissioner shall make available to each nursing facility that 139.5 is reimbursed under this section or section 256B.434 and had 35 139.6 or fewer admissions during calendar year 2000 an adjustment of 139.7 1.0 percent to the total operating payment rates in effect on 139.8 June 30, 2001. 139.9 The operating payment rate in effect on June 30, 2001, must 139.10 include the adjustment in subdivision 2i, paragraph (c). 139.11 Sec. 15. Minnesota Statutes 2000, section 256B.434, 139.12 subdivision 4, is amended to read: 139.13 Subd. 4. [ALTERNATE RATES FOR NURSING FACILITIES.] (a) For 139.14 nursing facilities which have their payment rates determined 139.15 under this section rather than section 256B.431, the 139.16 commissioner shall establish a rate under this subdivision. The 139.17 nursing facility must enter into a written contract with the 139.18 commissioner. 139.19 (b) A nursing facility's case mix payment rate for the 139.20 first rate year of a facility's contract under this section is 139.21 the payment rate the facility would have received under section 139.22 256B.431. 139.23 (c) A nursing facility's case mix payment rates for the 139.24 second and subsequent years of a facility's contract under this 139.25 section are the previous rate year's contract payment rates plus 139.26 an inflation adjustment. The index for the inflation adjustment 139.27 must be based on the change in the Consumer Price Index-All 139.28 Items (United States City average) (CPI-U) forecasted by Data 139.29 Resources, Inc., as forecasted in the fourth quarter of the 139.30 calendar year preceding the rate year. The inflation adjustment 139.31 must be based on the 12-month period from the midpoint of the 139.32 previous rate year to the midpoint of the rate year for which 139.33 the rate is being determined. For the rate years beginning on 139.34 July 1, 1999,andJuly 1, 2000, July 1, 2001, and July 1, 2002, 139.35 this paragraph shall apply only to the property-related payment 139.36 rate. In determining the amount of the property-related payment 140.1 rate adjustment under this paragraph, the commissioner shall 140.2 determine the proportion of the facility's rates that are 140.3 property-related based on the facility's most recent cost report. 140.4 (d) The commissioner shall develop additional 140.5 incentive-based payments of up to five percent above the 140.6 standard contract rate for achieving outcomes specified in each 140.7 contract. The specified facility-specific outcomes must be 140.8 measurable and approved by the commissioner. The commissioner 140.9 may establish, for each contract, various levels of achievement 140.10 within an outcome. After the outcomes have been specified the 140.11 commissioner shall assign various levels of payment associated 140.12 with achieving the outcome. Any incentive-based payment cancels 140.13 if there is a termination of the contract. In establishing the 140.14 specified outcomes and related criteria the commissioner shall 140.15 consider the following state policy objectives: 140.16 (1) improved cost effectiveness and quality of life as 140.17 measured by improved clinical outcomes; 140.18 (2) successful diversion or discharge to community 140.19 alternatives; 140.20 (3) decreased acute care costs; 140.21 (4) improved consumer satisfaction; 140.22 (5) the achievement of quality; or 140.23 (6) any additional outcomes proposed by a nursing facility 140.24 that the commissioner finds desirable. 140.25 Sec. 16. Minnesota Statutes 2000, section 256B.5012, is 140.26 amended by adding a subdivision to read: 140.27 Subd. 4. [ICF/MR RATE INCREASES BEGINNING JULY 1, 2001, 140.28 AND JULY 1, 2002.] (a) For the rate years beginning July 1, 140.29 2001, and July 1, 2002, the commissioner shall make available to 140.30 each facility reimbursed under this section an adjustment to the 140.31 total operating payment rate of 3.0 percent to provide an 140.32 employee wage increase as provided under paragraph (b). 140.33 (b) The adjustment under this paragraph must be used to 140.34 increase the wages of all employees except administrative and 140.35 central office employees and to pay associated costs for FICA, 140.36 the Medicare tax, workers' compensation premiums, and federal 141.1 and state unemployment insurance, provided that this increase 141.2 must be used only for wage increases implemented on or after the 141.3 first day of the rate year and must not be used for wage 141.4 increases implemented prior to that date. 141.5 (c) For each facility, the commissioner shall make 141.6 available an adjustment using the percentage specified in 141.7 paragraph (a) multiplied by the total payment rate, excluding 141.8 the property-related payment rate, in effect on the preceding 141.9 June 30. The total payment rate shall include the adjustment 141.10 provided in section 256B.501, subdivision 12. 141.11 (d) A facility whose payment rates are governed by closure 141.12 agreements, receivership agreements, or Minnesota Rules, part 141.13 9553.0075, is not eligible for an adjustment otherwise granted 141.14 under this subdivision. 141.15 (e) A facility may apply for the wage-related payment rate 141.16 adjustment provided under paragraph (b). The application must 141.17 be made to the commissioner and contain a plan by which the 141.18 facility will distribute the wage-related portion of the payment 141.19 rate adjustment to employees of the facility. For facilities in 141.20 which the employees are represented by an exclusive bargaining 141.21 representative, an agreement negotiated and agreed to by the 141.22 employer and the exclusive bargaining representative constitutes 141.23 the plan. A negotiated agreement may constitute the plan only 141.24 if the agreement is finalized after the date of enactment of all 141.25 rate increases for the rate year. The commissioner shall review 141.26 the plan to ensure that the payment rate adjustment per diem is 141.27 used as provided in this subdivision. To be eligible, a 141.28 facility must submit its plan by March 31, 2002, and March 31, 141.29 2003, respectively. If a facility's plan is effective for its 141.30 employees after the first day of the applicable rate year that 141.31 the funds are available, the payment rate adjustment per diem is 141.32 effective the same date as its plan. 141.33 (f) A copy of the approved distribution plan must be made 141.34 available to all employees by giving each employee a copy or by 141.35 posting it in an area of the facility to which all employees 141.36 have access. If an employee does not receive the wage 142.1 adjustment described in the facility's approved plan and is 142.2 unable to resolve the problem with the facility's management or 142.3 through the employee's union representative, the employee may 142.4 contact the commissioner at an address or telephone number 142.5 provided by the commissioner and included in the approved plan. 142.6 Sec. 17. [PROVIDER RATE INCREASES.] 142.7 (a) The commissioner of human services shall increase 142.8 reimbursement rates by 3.0 percent each year of the biennium for 142.9 the providers listed in paragraph (b). The increases are 142.10 effective for services rendered on or after July 1 of each year. 142.11 (b) The rate increases described in this section must be 142.12 provided to: 142.13 (1) home and community-based waivered services for persons 142.14 with mental retardation or related conditions under Minnesota 142.15 Statutes, section 256B.501; 142.16 (2) home and community-based waivered services for the 142.17 elderly under Minnesota Statutes, section 256B.0915; 142.18 (3) waivered services under community alternatives for 142.19 disabled individuals under Minnesota Statutes, section 256B.49; 142.20 (4) community alternative care waivered services under 142.21 Minnesota Statutes, section 256B.49; 142.22 (5) traumatic brain injury waivered services under 142.23 Minnesota Statutes, section 256B.49; 142.24 (6) nursing services and home health services under 142.25 Minnesota Statutes, section 256B.0625, subdivision 6a; 142.26 (7) personal care services and nursing supervision of 142.27 personal care services under Minnesota Statutes, section 142.28 256B.0625, subdivision 19a; 142.29 (8) private duty nursing services under Minnesota Statutes, 142.30 section 256B.0625, subdivision 7; 142.31 (9) day training and habilitation services for adults with 142.32 mental retardation or related conditions under Minnesota 142.33 Statutes, sections 252.40 to 252.46; 142.34 (10) alternative care services under Minnesota Statutes, 142.35 section 256B.0913; 142.36 (11) adult residential program grants under Minnesota 143.1 Rules, parts 9535.2000 to 9535.3000; 143.2 (12) adult and family community support grants under 143.3 Minnesota Rules, parts 9535.1700 to 9535.1760; 143.4 (13) the group residential housing supplementary service 143.5 rate under Minnesota Statutes, section 256I.05, subdivision 1a; 143.6 (14) adult mental health integrated fund grants under 143.7 Minnesota Statutes, section 245.4661; 143.8 (15) semi-independent living services under Minnesota 143.9 Statutes, section 252.275, including SILS funding under county 143.10 social services grants formerly funded under Minnesota Statutes, 143.11 chapter 256I; 143.12 (16) community support services for deaf and 143.13 hard-of-hearing adults with mental illness who use or wish to 143.14 use sign language as their primary means of communication; and 143.15 (17) living skills training programs for persons with 143.16 intractable epilepsy who need assistance in the transition to 143.17 independent living. 143.18 (c) Providers that receive a rate increase under this 143.19 section shall use the additional revenue to increase wages for 143.20 all employees other than the administrator and central office 143.21 staff and to pay associated costs for FICA, the Medicare tax, 143.22 workers' compensation premiums, and federal and state 143.23 unemployment insurance. For public employees, the increase is 143.24 available and pay rates shall be increased only to the extent 143.25 that they comply with laws governing public employees collective 143.26 bargaining. Money received by a provider for pay increases 143.27 under this section must be used only for wage increases 143.28 implemented on or after the first day of the state fiscal year 143.29 in which the increase is available and must not be used for wage 143.30 increases implemented prior to that date. 143.31 (d) A copy of the provider's plan for complying with 143.32 paragraph (c) must be made available to all employees by giving 143.33 each employee a copy or by posting it in an area of the 143.34 provider's operation to which all employees have access. If an 143.35 employee does not receive the wage adjustment described in the 143.36 plan and is unable to resolve the problem with the provider, the 144.1 employee may contact the employee's union representative. If 144.2 the employee is not covered by a collective bargaining 144.3 agreement, the employee may contact the commissioner at a phone 144.4 number provided by the commissioner and included in the 144.5 provider's plan. 144.6 ARTICLE 18 144.7 STATE GOVERNMENT 144.8 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 144.9 The sums shown in the columns marked "APPROPRIATIONS" are 144.10 appropriated from the general fund, or another fund named, to 144.11 the agencies and for the purposes specified in this article, to 144.12 be available for the fiscal years indicated for each purpose. 144.13 The figures "2001," "2002," and "2003," where used in this 144.14 article, mean that the appropriation or appropriations listed 144.15 under them are available for the year ending June 30, 2001, June 144.16 30, 2002, or June 30, 2003, respectively. 144.17 SUMMARY BY FUND 144.18 BIENNIAL 144.19 2002 2003 TOTAL 144.20 General $316,318,000 $323,107,000 $639,425,000 144.21 State 144.22 Government 144.23 Special Revenue 24,231,000 24,273,000 48,504,000 144.24 For 2001 - $3,988,000 144.25 Health Care Access 1,881,000 1,914,000 3,795,000 144.26 Environmental 249,000 255,000 504,000 144.27 Solid Waste 144.28 Cleanup 677,000 684,000 1,361,000 144.29 Highway User 144.30 Tax Distribution 2,191,000 2,237,000 4,428,000 144.31 Workers' 144.32 Compensation 7,313,000 7,505,000 14,818,000 144.33 TOTAL $352,860,000 $359,975,000 $712,835,000 144.34 APPROPRIATIONS 144.35 Available for the Year 144.36 Ending June 30 144.37 2002 2003 144.38 Sec. 2. LEGISLATURE 144.39 Subdivision 1. Total 144.40 Appropriation 64,082,000 65,326,000 144.41 Summary by Fund 145.1 General 63,932,000 65,176,000 145.2 Health Care Access 150,000 150,000 145.3 The amounts that may be spent from this 145.4 appropriation for each program are 145.5 specified in the following subdivisions. 145.6 Subd. 2. Senate 20,933,000 21,357,000 145.7 Subd. 3. House of Representatives 28,146,000 28,638,000 145.8 Subd. 4. Legislative 145.9 Coordinating Commission 15,003,000 15,331,000 145.10 Summary by Fund 145.11 General 14,853,000 15,181,000 145.12 Health Care Access 150,000 150,000 145.13 $6,420,000 the first year and 145.14 $6,535,000 the second year are for the 145.15 office of the revisor of statutes. 145.16 $1,242,000 the first year and 145.17 $1,273,000 the second year are for the 145.18 legislative reference library. 145.19 $5,275,000 the first year and 145.20 $5,429,000 the second year are for the 145.21 office of the legislative auditor and 145.22 the legislative audit commission. 145.23 The compensation council recommendation 145.24 of 2001 may not take effect unless 145.25 approved by law. 145.26 Sec. 3. GOVERNOR AND 145.27 LIEUTENANT GOVERNOR 4,262,000 4,369,000 145.28 This appropriation is to fund the 145.29 offices of the governor and lieutenant 145.30 governor. 145.31 $19,000 the first year and $19,000 the 145.32 second year are for necessary expenses 145.33 in the normal performance of the 145.34 governor's and lieutenant governor's 145.35 duties for which no other reimbursement 145.36 is provided. 145.37 By September 1 of each year, the 145.38 commissioner of finance shall report to 145.39 the chairs of the senate governmental 145.40 operations budget division and the 145.41 house state government finance division 145.42 any personnel costs incurred by the 145.43 office of the governor and lieutenant 145.44 governor that were supported by 145.45 appropriations to other agencies during 145.46 the previous fiscal year. The office 145.47 of the governor shall inform the chairs 145.48 of the divisions before initiating any 145.49 interagency agreements. 145.50 The funds appropriated to the 145.51 governor's office for maintenance of 145.52 the governor's residence are 145.53 transferred to the department of 145.54 administration for the same purpose. 146.1 Sec. 4. STATE AUDITOR 9,569,000 9,825,000 146.2 Sec. 5. STATE TREASURER 2,351,000 2,331,000 146.3 $1,093,000 the first year and 146.4 $1,125,000 the second year are for the 146.5 treasurer to pay for banking services 146.6 by fees rather than by compensating 146.7 balances. 146.8 Sec. 6. ATTORNEY GENERAL 28,103,000 28,726,000 146.9 Summary by Fund 146.10 General 25,650,000 26,221,000 146.11 State Government 146.12 Special Revenue 1,834,000 1,876,000 146.13 Environmental 142,000 145,000 146.14 Solid Waste 146.15 Cleanup 477,000 484,000 146.16 Sec. 7. SECRETARY OF STATE 6,104,000 6,393,000 146.17 Sec. 8. CAMPAIGN FINANCE AND 146.18 PUBLIC DISCLOSURE BOARD 599,000 622,000 146.19 Sec. 9. INVESTMENT BOARD 2,429,000 2,483,000 146.20 Sec. 10. ADMINISTRATIVE HEARINGS 7,182,000 7,375,000 146.21 This appropriation is from the workers' 146.22 compensation fund. 146.23 Sec. 11. OFFICE OF STRATEGIC 146.24 AND LONG-RANGE PLANNING 4,903,000 5,041,000 146.25 Sec. 12. ADMINISTRATION 146.26 Subdivision 1. Total 146.27 Appropriation 48,917,000 49,558,000 146.28 For 2001 - $3,998,000 146.29 Summary by Fund 146.30 General 26,920,000 27,561,000 146.31 State Government 146.32 Special Revenue 21,997,000 21,997,000 146.33 For 2001 - $3,998,000 146.34 The amounts that may be spent from this 146.35 appropriation for each program are 146.36 specified in the following subdivisions. 146.37 Subd. 2. Operations Management 146.38 4,121,000 4,234,000 146.39 Subd. 3. Office of Technology 146.40 2,779,000 2,830,000 146.41 $468,000 the first year and $468,000 146.42 the second year are for ongoing costs 146.43 of the North Star II project under 146.44 Minnesota Statutes, section 16E.07. 147.1 Subd. 4. Intertechnologies Group 147.2 22,856,000 22,856,000 147.3 Summary by Fund 147.4 General 859,000 859,000 147.5 State Government 147.6 Special Revenue 21,997,000 21,997,000 147.7 For 2001 - $3,998,000 147.8 $3,988,000 in fiscal year 2001 and 147.9 $2,862,000 in fiscal year 2002 are from 147.10 the 911 fund under Minnesota Statutes, 147.11 section 403.11, for increased costs 147.12 associated with wireless-enhanced 911 147.13 and for reimbursements to providers for 147.14 prior period services not yet certified 147.15 by the public utilities commission. 147.16 The appropriation from the special 147.17 revenue fund is for recurring costs of 147.18 911 emergency telephone service. 147.19 Subd. 5. Facilities Management 147.20 11,670,000 12,035,000 147.21 $7,560,000 the first year and 147.22 $7,820,000 the second year are for 147.23 office space costs of the legislature 147.24 and veterans organizations, for 147.25 ceremonial space, and for statutorily 147.26 free space. 147.27 Subd. 6. Management Services 147.28 4,159,000 4,271,000 147.29 $200,000 the first year and $200,000 147.30 the second year are for the information 147.31 policy training program under Minnesota 147.32 Statutes, section 13.073. 147.33 $196,000 the first year and $196,000 147.34 the second year are for the office of 147.35 the state archaeologist. 147.36 $74,000 the first year and $74,000 the 147.37 second year are for the developmental 147.38 disabilities council. 147.39 Subd. 7. Fiscal Agent 147.40 2,000 2,000 147.41 $2,000 the first year and $2,000 the 147.42 second year are for the state 147.43 employees' band. 147.44 Subd. 8. Public Broadcasting 147.45 3,330,000 3,330,000 147.46 $1,450,000 the first year and 147.47 $1,450,000 the second year are for 147.48 matching grants for public television. 147.49 $600,000 the first year and $600,000 148.1 the second year are for public 148.2 television equipment grants. 148.3 Equipment or digital conversion grant 148.4 allocations shall be made after 148.5 considering the recommendations of the 148.6 Minnesota public television association. 148.7 $441,000 the first year and $441,000 148.8 the second year are for grants for 148.9 contracts with the senate and house of 148.10 representatives for public information 148.11 television, Internet, intranet, and 148.12 other transmission of legislative 148.13 activities. At least one-half must go 148.14 for programming to be broadcast in 148.15 rural Minnesota. 148.16 $25,000 the first year and $25,000 the 148.17 second year are for grants to the Twin 148.18 Cities regional cable channel. 148.19 $320,000 the first year and $320,000 148.20 the second year are for community 148.21 service grants to public educational 148.22 radio stations, which must be allocated 148.23 after considering the recommendations 148.24 of the association of Minnesota public 148.25 educational radio stations under 148.26 Minnesota Statutes, section 129D.14. 148.27 $494,000 the first year and $494,000 148.28 the second year are for equipment 148.29 grants to public radio stations. These 148.30 grants must be allocated after 148.31 considering the recommendations of the 148.32 association of Minnesota public 148.33 educational radio stations and 148.34 Minnesota Public Radio, Inc. 148.35 If an appropriation for either year for 148.36 grants to public television or radio 148.37 stations is not sufficient, the 148.38 appropriation for the other year is 148.39 available for it. 148.40 Sec. 13. CAPITOL AREA ARCHITECTURAL 148.41 AND PLANNING BOARD 315,000 323,000 148.42 Sec. 14. FINANCE 148.43 Subdivision 1. Total 148.44 Appropriation 18,300,000 18,689,000 148.45 The amounts that may be spent from this 148.46 appropriation for each program are 148.47 specified in the following subdivisions. 148.48 Subd. 2. State Financial Management 148.49 8,493,000 8,598,000 148.50 Subd. 3. Information and 148.51 Management Services 148.52 9,807,000 10,091,000 148.53 Sec. 15. EMPLOYEE RELATIONS 148.54 Subdivision 1. Total 148.55 Appropriation 10,596,000 10,821,000 149.1 The amounts that may be spent from this 149.2 appropriation for each program are 149.3 specified in the following subdivisions. 149.4 Subd. 2. Employee Insurance 149.5 2,446,000 2,446,000 149.6 Subd. 3. Human Resources Management 149.7 8,150,000 8,375,000 149.8 $50,000 the first year and $50,000 the 149.9 second year are for a grant to the 149.10 government training service. 149.11 Sec. 16. REVENUE 149.12 Subdivision 1. Total 149.13 Appropriation 91,192,000 93,200,000 149.14 Summary by Fund 149.15 General 86,963,000 88,889,000 149.16 Health Care Access 1,731,000 1,764,000 149.17 Highway User 149.18 Tax Distribution 2,191,000 2,237,000 149.19 Environmental 107,000 110,000 149.20 Solid Waste 149.21 Cleanup 200,000 200,000 149.22 Subd. 2. Tax System Management 149.23 90,899,000 86,228,000 149.24 Summary by Fund 149.25 General 76,039,000 77,965,000 149.26 Health Care Access 1,678,000 1,711,000 149.27 Highway User 149.28 Tax Distribution 2,191,000 2,237,000 149.29 Environmental 107,000 110,000 149.30 Solid Waste 149.31 Cleanup 200,000 200,000 149.32 Subd. 3. Accounts Receivable Management 149.33 10,977,000 10,977,000 149.34 Summary by Fund 149.35 General 10,924,000 10,924,000 149.36 Health Care Access 53,000 53,000 149.37 Sec. 17. MILITARY AFFAIRS 149.38 Subdivision 1. Total 149.39 Appropriation 11,243,000 11,418,000 149.40 The amounts that may be spent from this 149.41 appropriation for each program are 150.1 specified in the following subdivisions. 150.2 Subd. 2. Maintenance of Training 150.3 Facilities 150.4 7,038,000 7,141,000 150.5 Subd. 3. General Support 150.6 1,774,000 1,845,000 150.7 Subd. 4. Enlistment Incentives 150.8 2,356,000 2,357,000 150.9 If appropriations for either year of 150.10 the biennium are insufficient, the 150.11 appropriation from the other year is 150.12 available. The appropriations for 150.13 enlistment incentives are available 150.14 until expended. 150.15 Subd. 5. Emergency Services 150.16 75,000 75,000 150.17 These appropriations are for expenses 150.18 of military forces ordered to active 150.19 duty under Minnesota Statutes, chapter 150.20 192. If the appropriation for either 150.21 year is insufficient, the appropriation 150.22 for the other year is available for it. 150.23 Sec. 18. VETERANS AFFAIRS 4,419,000 4,484,000 150.24 Sec. 19. VETERANS OF FOREIGN 150.25 WARS 41,000 41,000 150.26 For carrying out the provisions of Laws 150.27 1945, chapter 455. 150.28 Sec. 20. MILITARY ORDER OF 150.29 THE PURPLE HEART 20,000 20,000 150.30 Sec. 21. DISABLED AMERICAN VETERANS 13,000 13,000 150.31 For carrying out the provisions of Laws 150.32 1941, chapter 425. 150.33 Sec. 22. GAMBLING CONTROL 2,305,000 2,370,000 150.34 Sec. 23. RACING COMMISSION 414,000 426,000 150.35 Sec. 24. AMATEUR SPORTS COMMISSION 657,000 677,000 150.36 Sec. 25. BOARD OF THE ARTS 150.37 Subdivision 1. Total 150.38 Appropriation 13,118,000 13,142,000 150.39 Any unencumbered balance remaining in 150.40 this section the first year does not 150.41 cancel but is available for the second 150.42 year of the biennium. 150.43 Subd. 2. Operations and Services 150.44 1,043,000 1,067,000 150.45 Subd. 3. Grants Program 151.1 8,540,000 8,540,000 151.2 Subd. 4. Regional Arts Councils 151.3 3,535,000 3,535,000 151.4 Sec. 26. MINNESOTA HUMANITIES 151.5 COMMISSION 922,000 936,000 151.6 Any unencumbered balance remaining in 151.7 the first year does not cancel but is 151.8 available for the second year of the 151.9 biennium. 151.10 Sec. 27. GENERAL CONTINGENT 151.11 ACCOUNTS 600,000 600,000 151.12 Summary by Fund 151.13 General 100,000 100,000 151.14 State Government 151.15 Special Revenue 400,000 400,000 151.16 Workers' Compensation 100,000 100,000 151.17 The appropriations in this section must 151.18 be spent with the approval of the 151.19 governor after consultation with the 151.20 legislative advisory commission under 151.21 Minnesota Statutes, section 3.30. 151.22 If an appropriation in this section for 151.23 either year is insufficient, the 151.24 appropriation for the other year is 151.25 available for it. 151.26 The special revenue appropriation is 151.27 available to be transferred to the 151.28 attorney general when the costs to 151.29 provide legal services to the health 151.30 boards exceed the biennial 151.31 appropriation to the attorney general 151.32 from the special revenue fund and for 151.33 transfer to the health boards if 151.34 required for unforeseen expenditures of 151.35 an emergency nature. The boards 151.36 receiving the additional services or 151.37 supplemental appropriations shall set 151.38 their fees to cover the costs. 151.39 Sec. 28. TORT CLAIMS 275,000 275,000 151.40 To be spent by the commissioner of 151.41 finance. 151.42 If the appropriation for either year is 151.43 insufficient, the appropriation for the 151.44 other year is available for it. 151.45 Sec. 29. MINNESOTA STATE 151.46 RETIREMENT SYSTEM 9,299,000 9,856,000 151.47 The amounts estimated to be needed for 151.48 each program are as follows: 151.49 (a) Legislators 151.50 6,821,000 7,230,000 151.51 Under Minnesota Statutes, sections 152.1 3A.03, subdivision 2; 3A.04, 152.2 subdivisions 3 and 4; and 3A.11. 152.3 (b) Constitutional Officers 152.4 355,000 376,000 152.5 Under Minnesota Statutes, sections 152.6 352C.031, subdivision 5; 352C.04, 152.7 subdivision 3; and 352C.09, subdivision 152.8 2. 152.9 (c) Judges 152.10 2,123,000 2,250,000 152.11 If an appropriation in this section for 152.12 either year is insufficient, the 152.13 appropriation for the other year is 152.14 available for it. 152.15 Sec. 30. MINNEAPOLIS EMPLOYEES 152.16 RETIREMENT FUND 3,232,000 3,232,000 152.17 Sec. 31. POLICE AND FIRE 152.18 AMORTIZATION AID 6,345,000 6,345,000 152.19 $4,925,000 the first year and 152.20 $4,925,000 the second year are to the 152.21 commissioner of revenue for state aid 152.22 to amortize the unfunded liability of 152.23 local police and salaried firefighters 152.24 relief associations under Minnesota 152.25 Statutes, section 423A.02. 152.26 $1,000,000 the first year and 152.27 $1,000,000 the second year are to the 152.28 commissioner of revenue for 152.29 supplemental state aid to amortize the 152.30 unfunded liability of local police and 152.31 salaried firefighters relief 152.32 associations under Minnesota Statutes, 152.33 section 423A.02, subdivision 1a. 152.34 $420,000 the first year and $420,000 152.35 the second year are to the commissioner 152.36 of revenue to pay reimbursements to 152.37 relief associations for firefighter 152.38 supplemental benefits paid under 152.39 Minnesota Statutes, section 424A.10. 152.40 Sec. 32. BOARD OF GOVERNMENT 152.41 INNOVATION AND COOPERATION 1,022,000 1,028,000 152.42 Sec. 33. [16A.1286] [STATEWIDE SYSTEMS ACCOUNT.] 152.43 Subdivision 1. [CONTINUATION.] The statewide systems 152.44 account is a separate account in the special revenue fund. All 152.45 money resulting from billings for statewide systems services 152.46 must be credited to the account. For the purposes of this 152.47 section, statewide systems include the state accounting system, 152.48 payroll system, human resources systems, procurement system, and 152.49 related information access systems. 152.50 Subd. 2. [BILLING PROCEDURES.] The commissioner may bill 153.1 up to $7,520,000 in each fiscal year for statewide systems 153.2 services provided to state agencies, judicial branch agencies, 153.3 the University of Minnesota, the Minnesota state colleges and 153.4 universities, and other entities. Billing must be based only on 153.5 usage of services relating to statewide systems provided by the 153.6 intertechnologies division. Each agency shall transfer from 153.7 agency operating appropriations to the statewide systems account 153.8 the amount billed by the commissioner. Billing policies and 153.9 procedures related to statewide systems services must be 153.10 developed by the commissioner in consultation with the 153.11 commissioners of employee relations and administration, the 153.12 University of Minnesota, and the Minnesota state colleges and 153.13 universities. 153.14 Subd. 3. [APPROPRIATION.] Money transferred into the 153.15 account is appropriated to the commissioner to pay for statewide 153.16 systems services during the biennium in which it is appropriated. 153.17 Sec. 34. [RATIFICATIONS.] 153.18 Subdivision 1. [UNREPRESENTED MANAGERS; MINNESOTA STATE 153.19 COLLEGES AND UNIVERSITIES.] The amendments to the plan for 153.20 administrators of the Minnesota state colleges and universities, 153.21 approved by the legislative coordinating commission subcommittee 153.22 on employee relations on July 21, 2000, are ratified. 153.23 Subd. 2. [SALARIES FOR HEADS OF STATE AGENCIES.] The 153.24 proposal to increase the salaries of certain heads of state 153.25 agencies, approved by the legislative coordinating commission 153.26 subcommittee on employee relations on July 21, 2000, is ratified. 153.27 Subd. 3. [ENGINEERS.] The arbitration award and labor 153.28 agreement between the state of Minnesota and the Minnesota 153.29 government engineers council, approved by the legislative 153.30 coordinating commission subcommittee on employee relations on 153.31 September 8, 2000, are ratified. 153.32 Subd. 4. [SALARIES FOR CERTAIN HEADS OF STATE 153.33 AGENCIES.] The proposals to increase the salaries of the 153.34 directors of the state board of investment and the teachers 153.35 retirement association, as approved by the legislative 153.36 coordinating commission subcommittee on employee relations on 154.1 September 8, 2000, are ratified. 154.2 Sec. 35. [EFFECTIVE DATE.] 154.3 The 2001 appropriations in this article are effective the 154.4 day following final enactment and are available until June 30, 154.5 2003. 154.6 ARTICLE 19 154.7 ECONOMIC DEVELOPMENT 154.8 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 154.9 The sums shown in the columns marked "APPROPRIATIONS" are 154.10 appropriated from the general fund, or another named fund, to 154.11 the agencies and for the purposes specified in this article, to 154.12 be available for the fiscal years indicated for each purpose. 154.13 The figures "2002" and "2003," where used in this article, mean 154.14 that the appropriations listed under them are available for the 154.15 year ending June 30, 2002, or June 30, 2003, respectively. The 154.16 term "first year" means the fiscal year ending June 30, 2002, 154.17 and "second year" means the fiscal year ending June 30, 2003. 154.18 SUMMARY BY FUND 154.19 BIENNIAL 154.20 2002 2003 TOTAL 154.21 General $186,913,000 $185,508,000 $372,421,000 154.22 Environmental Fund 700,000 700,000 1,400,000 154.23 TANF 750,000 750,000 1,500,000 154.24 Petroleum Tank 154.25 Cleanup 1,064,000 1,084,000 2,148,000 154.26 Workers' 154.27 Compensation 23,216,000 23,765,000 46,981,000 154.28 Workforce 154.29 Development Fund 3,395,000 3,410,000 6,805,000 154.30 TOTAL $216,038,000 $215,217,000 $431,255,000 154.31 APPROPRIATIONS 154.32 Available for the Year 154.33 Ending June 30 154.34 2002 2003 154.35 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT 154.36 Subdivision 1. Total 154.37 Appropriation 40,240,000 38,108,000 154.38 Summary by Fund 154.39 General 38,790,000 36,658,000 154.40 TANF 750,000 750,000 155.1 Environmental Fund 700,000 700,000 155.2 The amounts that may be spent from this 155.3 appropriation for each program are 155.4 specified in the following subdivisions. 155.5 Subd. 2. Business and Community 155.6 Development 155.7 13,712,000 11,012,000 155.8 Summary by Fund 155.9 General 13,012,000 10,312,000 155.10 Environmental Fund 700,000 700,000 155.11 $1,000,000 is for a grant to the cities 155.12 of Ada, Breckenridge, East Grand Forks, 155.13 and Warren. Of that amount, $478,000 155.14 is to reimburse Ada for bond interest 155.15 expenses in connection with temporary 155.16 financing in anticipation of financing 155.17 by the Federal Emergency Management 155.18 Agency (FEMA) for 1997 flood recovery 155.19 work in that city. $119,000 is to 155.20 reimburse Breckenridge, $321,000 is to 155.21 reimburse East Grand Forks, and $82,000 155.22 is to reimburse Warren for lost 155.23 interest in connection with 155.24 expenditures in anticipation of 155.25 financing by FEMA for 1997 flood 155.26 recovery work in those cities. 155.27 $1,775,000 the first year is for 155.28 purposes of tornado relief to the 155.29 Granite Falls area. This appropriation 155.30 shall be spent as follows: 155.31 (1) $1,400,000 to the Minnesota 155.32 investment fund for grants to local 155.33 units of government for locally 155.34 administered operating loan programs 155.35 for businesses directly and adversely 155.36 affected by the July 25, 2000, 155.37 tornadoes. Loan criteria and 155.38 requirements must be locally 155.39 established with approval by the 155.40 department. For the purposes of this 155.41 appropriation, Minnesota Statutes, 155.42 section 116J.8731, subdivisions 3, 4, 155.43 5, and 7, is waived. Businesses that 155.44 receive grants or loans from this 155.45 appropriation shall set goals for jobs 155.46 retained and wages paid within the 155.47 areas designated in amendment number 5 155.48 and amendment number 6 to the 155.49 Presidential Declaration of Major 155.50 Disaster, DR1333; and 155.51 (2) $375,000 is for a grant to project 155.52 turnabout, a residential compulsive 155.53 gambling treatment facility. 155.54 Subd. 3. Workforce Development 155.55 Division 155.56 8,191,000 8,201,000 155.57 Summary by Fund 156.1 General 7,441,000 7,451,000 156.2 TANF 750,000 750,000 156.3 $7,441,000 the first year and 156.4 $7,451,000 the second year are for the 156.5 job skills partnership program. If the 156.6 appropriation for either year is 156.7 insufficient, the appropriation for the 156.8 other year is available. This 156.9 appropriation does not cancel. 156.10 $750,000 the first year and $750,000 156.11 the second are from the TANF fund to 156.12 the commissioner for the health care 156.13 and human services training program. 156.14 Subd. 4. Minnesota Trade Office 156.15 2,466,000 2,614,000 156.16 Subd. 5. Tourism 156.17 10,785,000 10,877,000 156.18 $829,000 the first year and $829,000 156.19 the second year are for the Minnesota 156.20 film board. $329,000 of this 156.21 appropriation in each year is available 156.22 only upon receipt by the board of $1 in 156.23 matching contributions of money or 156.24 in-kind from nonstate sources for every 156.25 $3 provided by this appropriation. Of 156.26 this amount, $500,000 the first year 156.27 and $500,000 the second year are for 156.28 grants to the Minnesota film board for 156.29 a film production jobs fund to 156.30 stimulate feature film production in 156.31 Minnesota. This appropriation is to 156.32 reimburse film and television producers 156.33 for up to ten percent of the documented 156.34 wages and cost of services that they 156.35 paid to Minnesotans for film and 156.36 television production after January 1, 156.37 2001. 156.38 $766,000 the first year and $766,000 156.39 the second year are for the travel 156.40 information centers. 156.41 To develop maximum private sector 156.42 involvement in tourism, $3,500,000 the 156.43 first year and $3,500,000 the second 156.44 year of the amounts appropriated for 156.45 marketing activities are contingent on 156.46 receipt of an equal contribution from 156.47 nonstate sources that have been 156.48 certified by the commissioner. Up to 156.49 one-half of the match may be given in 156.50 in-kind contributions. 156.51 In order to maximize marketing grant 156.52 benefits, the commissioner must give 156.53 priority for joint venture marketing 156.54 grants to organizations with year-round 156.55 sustained tourism activities. For 156.56 programs and projects submitted, the 156.57 commissioner must give priority to 156.58 those that encompass two or more areas 156.59 or that attract nonresident travelers 156.60 to the state. 157.1 If an appropriation for either year for 157.2 grants is not sufficient, the 157.3 appropriation for the other year is 157.4 available for it. 157.5 The commissioner may use grant dollars 157.6 or the value of in-kind services to 157.7 provide the state contribution for the 157.8 partnership program. 157.9 Any unexpended money from general fund 157.10 appropriations made under this 157.11 subdivision does not cancel but must be 157.12 placed in a special advertising account 157.13 for use by the office of tourism to 157.14 purchase additional media. 157.15 Subd. 6. Administration 157.16 3,455,000 3,736,000 157.17 Subd. 7. Information and Analysis 157.18 1,631,000 1,668,000 157.19 Sec. 3. MINNESOTA TECHNOLOGY, INC. 6,105,000 6,105,000 157.20 $6,105,000 the first year and 157.21 $6,105,000 the second year are for 157.22 transfer from the general fund to the 157.23 Minnesota Technology, Inc. fund. 157.24 Sec. 4. ECONOMIC SECURITY 157.25 Subdivision 1. Total 157.26 Appropriation 38,701,000 38,852,000 157.27 Summary by Fund 157.28 General 36,099,000 36,250,000 157.29 Workforce 157.30 Development Fund 2,602,000 2,602,000 157.31 Subd. 2. Rehabilitation Services 157.32 21,976,000 21,991,000 157.33 $1,850,000 the first year and 157.34 $1,850,000 the second year are for the 157.35 centers for independent living. 157.36 Subd. 3. State Services for the Blind 157.37 4,940,000 5,067,000 157.38 Subd. 4. Workforce Services 157.39 11,785,000 11,794,000 157.40 Summary by Fund 157.41 General 9,183,000 9,192,000 157.42 Workforce 157.43 Development Fund 2,602,000 2,602,000 157.44 $1,827,000 the first year and 157.45 $1,827,000 the second year from the 157.46 workforce development fund are for 157.47 displaced homemaker programs under 158.1 Minnesota Statutes, section 268.96. 158.2 $50,000 the first year and $50,000 the 158.3 second year are for asset preservation. 158.4 Sec. 5. HOUSING FINANCE AGENCY 158.5 Subdivision 1. Total 158.6 Appropriation 40,832,000 39,832,000 158.7 The amounts that may be spent from this 158.8 appropriation for certain programs are 158.9 specified in the following subdivisions. 158.10 This appropriation is for transfer to 158.11 the housing development fund for the 158.12 programs specified. Except as 158.13 otherwise indicated, this transfer is 158.14 part of the agency's permanent budget 158.15 base. 158.16 Subd. 2. Rental Assistance for Mentally Ill 158.17 $1,700,000 the first year and 158.18 $1,700,000 the second year are for a 158.19 rental housing assistance program for 158.20 persons with a mental illness or 158.21 families with an adult member with a 158.22 mental illness under Minnesota 158.23 Statutes, section 462A.2097. 158.24 Subd. 3. Family Homeless Prevention 158.25 $3,250,000 the first year and 158.26 $3,250,000 the second year are for the 158.27 family homeless prevention and 158.28 assistance program under Minnesota 158.29 Statutes, section 462A.204. 158.30 Subd. 4. Homeownership Education and 158.31 Training Program 158.32 $858,000 the first year and $858,000 158.33 the second year are for the 158.34 homeownership education and training 158.35 program under Minnesota Statutes, 158.36 section 462A.209. 158.37 Subd. 5. Housing Trust Fund 158.38 $4,623,000 the first year and 158.39 $4,623,000 the second year are for the 158.40 housing trust fund to be deposited in 158.41 the housing trust fund account created 158.42 under Minnesota Statutes, section 158.43 462A.201, and used for the purposes 158.44 provided in that section. Until 158.45 January 1, 2002, the agency may 158.46 administer the appropriations under 158.47 this subdivision in the same manner as 158.48 appropriations for Minnesota Statutes, 158.49 section 462A.21, subdivision 8b, 15, 158.50 21, or 24. 158.51 Subd. 6. Affordable Rental Investment Fund 158.52 $10,000,000 the first year and 158.53 $10,000,000 the second year are for the 158.54 affordable rental investment fund 158.55 program under Minnesota Statutes, 158.56 section 462A.21, subdivision 8b. Of 159.1 this amount, $10,000,000 the first year 159.2 and $10,000,000 the second year are to 159.3 finance the acquisition, 159.4 rehabilitation, and debt restructuring 159.5 of federally assisted rental property 159.6 and for making equity take-out loans 159.7 under Minnesota Statutes, section 159.8 462A.05, subdivision 39. The owner of 159.9 the federally assisted rental property 159.10 must agree to participate in the 159.11 applicable federally assisted housing 159.12 program and to extend any existing 159.13 low-income affordability restrictions 159.14 on the housing for the maximum term 159.15 permitted. The owner must also enter 159.16 into an agreement that gives local 159.17 units of government, housing and 159.18 redevelopment authorities, and 159.19 nonprofit housing organizations the 159.20 right of first refusal if the rental 159.21 property is offered for sale. Priority 159.22 must be given among comparable 159.23 properties to properties with the 159.24 longest remaining term under an 159.25 agreement for federal rental 159.26 assistance. Priority must also be 159.27 given among comparable rental housing 159.28 developments to developments that are 159.29 or will be owned by local government 159.30 units, a housing and redevelopment 159.31 authority, or a nonprofit housing 159.32 organization. 159.33 Subd. 7. Urban Indian Housing Program 159.34 $187,000 the first year and $187,000 159.35 the second year are for the urban 159.36 Indian housing program under Minnesota 159.37 Statutes, section 462A.07, subdivision 159.38 15. 159.39 Subd. 8. Tribal Indian Housing Program 159.40 $1,683,000 the first year and 159.41 $1,683,000 the second year are for the 159.42 tribal Indian housing program under 159.43 Minnesota Statutes, section 462A.07, 159.44 subdivision 14. 159.45 Subd. 9. Capacity Building Grants 159.46 $340,000 the first year and $340,000 159.47 the second year are for nonprofit 159.48 capacity building grants under 159.49 Minnesota Statutes, section 462A.21, 159.50 subdivision 3b. 159.51 Subd. 10. Challenge Program 159.52 $13,004,000 the first year and 159.53 $12,004,000 the second year are 159.54 appropriated for transfer to the 159.55 housing development fund for the 159.56 economic development and housing 159.57 challenge program created by Minnesota 159.58 Statutes, section 462A.33. Until 159.59 January 1, 2002, the agency may 159.60 administer the appropriations under 159.61 this subdivision in the same manner as 159.62 appropriations for Minnesota Statutes, 159.63 section 462A.21, subdivision 8b, 15, 160.1 21, or 24. 160.2 Of this appropriation, $610,000 the 160.3 first year is for disaster relief for 160.4 home ownership in the areas that 160.5 sustained damage from the tornado that 160.6 struck Yellow Medicine and Chippewa 160.7 counties on July 25, 2000, and were 160.8 added to the Presidential Declaration 160.9 of Major Disaster, DR1333, by amendment 160.10 number 5 dated July 28, 2000, and 160.11 amendment number 6 dated August 14, 160.12 2000. 160.13 Of this appropriation, $390,000 the 160.14 first year is for disaster relief for 160.15 rental housing in the areas that 160.16 sustained damage from the tornado that 160.17 struck Yellow Medicine and Chippewa 160.18 counties on July 25, 2000, and were 160.19 added to the Presidential Declaration 160.20 of Major Disaster, DR1333, by amendment 160.21 number 5 dated July 28, 2000, and 160.22 amendment number 6 dated August 14, 160.23 2000. Notwithstanding Minnesota 160.24 Statutes, section 462A.21, subdivision 160.25 8b, assistance provided from this 160.26 disaster relief appropriation for the 160.27 rehabilitation of existing rental 160.28 housing may be in the form of 160.29 forgivable loans. In making forgivable 160.30 loans from this appropriation, the 160.31 agency shall determine the 160.32 circumstances, terms, and conditions 160.33 under which all or any portion of the 160.34 grant shall be repaid. This 160.35 appropriation is available until spent. 160.36 Subd. 11. Transfers 160.37 Money appropriated under this section 160.38 for disaster relief may be transferred 160.39 between the affordable rental 160.40 investment fund account and the 160.41 community rehabilitation fund account. 160.42 Sec. 6. COMMERCE 160.43 Subdivision 1. Total 160.44 Appropriation 27,061,000 27,728,000 160.45 Summary by Fund 160.46 General 25,398,000 26,029,000 160.47 Petroleum Tank 160.48 Cleanup 1,064,000 1,084,000 160.49 Workers' 160.50 Compensation 599,000 615,000 160.51 The amounts that may be spent from this 160.52 appropriation for each program are 160.53 specified in the following subdivisions. 160.54 Subd. 2. Financial Examinations 160.55 6,379,000 6,555,000 160.56 Subd. 3. Enforcement and Compliance 161.1 5,685,000 5,836,000 161.2 Summary by Fund 161.3 General 5,086,000 5,221,000 161.4 Workers' 161.5 Compensation 599,000 615,000 161.6 Subd. 4. Energy 161.7 3,809,000 3,884,000 161.8 $588,000 each year is for transfer to 161.9 the energy and conservation account 161.10 established in Minnesota Statutes, 161.11 section 216B.241, subdivision 2a, for 161.12 programs administered by the 161.13 commissioner of economic security to 161.14 improve the energy efficiency of 161.15 residential oil-fired heating plants in 161.16 low-income households and, when 161.17 necessary, to provide weatherization 161.18 services to the homes. 161.19 Subd. 5. Petroleum Tank Release 161.20 Cleanup 161.21 1,064,000 1,084,000 161.22 This appropriation is from the 161.23 petroleum tank release cleanup fund. 161.24 Subd. 6. Administrative Services 161.25 5,852,000 6,003,000 161.26 Subd. 7. Telecommunications 161.27 986,000 1,008,000 161.28 Subd. 8. Weights and Measures 161.29 3,286,000 3,358,000 161.30 Sec. 7. BOARD OF ACCOUNTANCY 643,000 664,000 161.31 Sec. 8. BOARD OF ARCHITECTURE, 161.32 ENGINEERING, LAND SURVEYING, 161.33 LANDSCAPE ARCHITECTURE, 161.34 GEOSCIENCE, AND INTERIOR DESIGN 951,000 981,000 161.36 Sec. 9. BOARD OF BARBER 161.37 EXAMINERS 153,000 159,000 161.38 Sec. 10. LABOR AND INDUSTRY 161.39 Subdivision 1. Total 161.40 Appropriation 25,408,000 26,001,000 161.41 Summary by Fund 161.42 General 3,567,000 3,661,000 161.43 Workers' 161.44 Compensation 21,048,000 21,532,000 161.45 Workforce 161.46 Development Fund 793,000 808,000 162.1 The amounts that may be spent from this 162.2 appropriation for each program are 162.3 specified in the following subdivisions. 162.4 Subd. 2. Workers' Compensation 162.5 10,912,000 11,178,000 162.6 This appropriation is from the workers' 162.7 compensation fund. 162.8 $125,000 the first year and $125,000 162.9 the second year are for grants to the 162.10 Vinland Center for rehabilitation 162.11 service. 162.12 Subd. 3. Workplace Services 162.13 7,468,000 7,643,000 162.14 Summary by Fund 162.15 General 2,493,000 2,555,000 162.16 Workers' 162.17 Compensation 4,182,000 4,280,000 162.18 Workforce 162.19 Development Fund 793,000 808,000 162.20 $204,000 the first year and $204,000 162.21 the second year are for labor education 162.22 and advancement program grants. The 162.23 commissioner must report to the 162.24 legislature by February 15, 2003, on 162.25 the success of the program in placing 162.26 and retaining participants. This 162.27 appropriation is from the workforce 162.28 development fund. 162.29 Subd. 4. General Support 162.30 7,028,000 7,180,000 162.31 Summary by Fund 162.32 General 1,074,000 1,106,000 162.33 Workers' 162.34 Compensation 5,954,000 6,074,000 162.35 Sec. 11. BUREAU OF MEDIATION SERVICES 162.36 Subdivision 1. Total 162.37 Appropriation 2,230,000 2,278,000 162.38 The amounts that may be spent from this 162.39 appropriation for each program are 162.40 specified in the following subdivisions. 162.41 Subd. 2. Mediation Services 162.42 1,928,000 1,976,000 162.43 Subd. 3. Labor Management Cooperation Grants 162.44 302,000 302,000 162.45 $302,000 each year is for grants to 162.46 area labor management committees. Any 162.47 unencumbered balance remaining at the 163.1 end of the first year does not cancel 163.2 but is available for the second year. 163.3 Sec. 12. PUBLIC UTILITIES 163.4 COMMISSION 3,994,000 4,163,000 163.5 Sec. 13. MINNESOTA HISTORICAL 163.6 SOCIETY 163.7 Subdivision 1. Total 163.8 Appropriation 26,599,000 27,129,000 163.9 The amounts that may be spent from this 163.10 appropriation for each program are 163.11 specified in the following subdivisions. 163.12 Subd. 2. Education and 163.13 Outreach 163.14 14,635,000 14,962,000 163.15 Subd. 3. Preservation and Access 163.16 11,568,000 11,819,000 163.17 Subd. 4. Fiscal Agent 163.18 General 396,000 348,000 163.19 (a) Sibley House Association 163.20 88,000 88,000 163.21 This appropriation is available for 163.22 operation and maintenance of the Sibley 163.23 House and related buildings on the Old 163.24 Mendota state historic site operated by 163.25 the Sibley House Association. 163.26 (b) Minnesota International Center 163.27 50,000 50,000 163.28 (c) Minnesota Air National 163.29 Guard Museum 163.30 19,000 -0- 163.31 (d) Institute for Learning and 163.32 Teaching - Project 120 163.33 110,000 110,000 163.34 (e) Minnesota Military Museum 163.35 29,000 -0- 163.36 (f) Farmamerica 163.37 100,000 100,000 163.38 Notwithstanding any other law, this 163.39 appropriation may be used for 163.40 operations. 163.41 (g) Balances Forward 163.42 Any unencumbered balance remaining in 163.43 this subdivision the first year does 163.44 not cancel but is available for the 163.45 second year of the biennium. 164.1 Sec. 14. COUNCIL ON BLACK 164.2 MINNESOTANS 339,000 349,000 164.3 $25,000 each year is for expenses 164.4 associated with the Dr. Martin Luther 164.5 King, Jr. Day activities. 164.6 Sec. 15. COUNCIL ON 164.7 CHICANO-LATINO AFFAIRS 334,000 344,000 164.8 Sec. 16. COUNCIL ON 164.9 ASIAN-PACIFIC MINNESOTANS 295,000 304,000 164.10 Sec. 17. INDIAN AFFAIRS 164.11 COUNCIL 584,000 602,000 164.12 Sec. 18. WORKERS' COMPENSATION 164.13 COURT OF APPEALS 1,569,000 1,618,000 164.14 This appropriation is from the workers' 164.15 compensation fund. 164.16 Sec. 19. [CONSOLIDATION OF STATE REGULATION OF COMMERCE.] 164.17 In order to make state government more efficient and 164.18 effective and to accomplish more efficient and effective 164.19 regulation of commerce in Minnesota, all of the powers, rights, 164.20 responsibilities, and duties that remain in the department of 164.21 public service after reorganization order No. 181 are 164.22 transferred to the department of commerce under Minnesota 164.23 Statutes, section 15.039. This transfer is governed in all 164.24 respects by Minnesota Statutes, section 15.039. The department 164.25 of public service is abolished. 164.26 Sec. 20. Minnesota Statutes 2000, section 3C.12, 164.27 subdivision 2, is amended to read: 164.28 Subd. 2. [FREE DISTRIBUTION.] The revisor shall distribute 164.29 without charge copies of each edition of Minnesota Statutes, 164.30 supplements to Minnesota Statutes, and Laws of Minnesota to the 164.31 persons or bodies listed in this subdivision. Before 164.32 distributing the copies, the revisor shall inform these persons 164.33 or bodies of the cost of the publication and the availability of 164.34 statutes and session laws on the Internet, and shall ask whether 164.35 their work requires the full number of copies authorized by this 164.36 subdivision. Unless a smaller number is needed, the revisor 164.37 shall distribute: 164.38 (a) 30 copies to the supreme court; 164.39 (b) 30 copies to the court of appeals; 164.40 (c) one copy to each judge of a district court; 165.1 (d) one copy to the court administrator of each district 165.2 court for use in each courtroom of the district court; 165.3 (e) one copy to each judge, district attorney, clerk of 165.4 court of the United States, and deputy clerk of each division of 165.5 the United States district court in Minnesota; 165.6 (f) 100 copies to the office of the attorney general; 165.7 (g) ten copies each to the governor's office, the 165.8 departments of agriculture,commerce,corrections, children, 165.9 families, and learning, finance, health, transportation, labor 165.10 and industry, economic security, natural resources, public 165.11 safety,public service,human services, revenue, and the 165.12 pollution control agency; 165.13 (h) two copies each to the lieutenant governor and the 165.14 state treasurer; 165.15 (i) 20 copies each to thedepartmentdepartments of 165.16 administration and commerce, state auditor, and legislative 165.17 auditor; 165.18 (j) one copy each to other state departments, agencies, 165.19 boards, and commissions not specifically named in this 165.20 subdivision; 165.21 (k) one copy to each member of the legislature; 165.22 (l) 150 copies for the use of the senate and 200 copies for 165.23 the use of the house of representatives; 165.24 (m) 50 copies to the revisor of statutes from which the 165.25 revisor shall send the appropriate number to the Library of 165.26 Congress for copyright and depository purposes; 165.27 (n) four copies to the secretary of the senate; 165.28 (o) four copies to the chief clerk of the house of 165.29 representatives; 165.30 (p) 100 copies to the state law library; 165.31 (q) 100 copies to the law school of the University of 165.32 Minnesota; 165.33 (r) five copies each to the Minnesota historical society 165.34 and the secretary of state; 165.35 (s) one copy each to the public library of the largest 165.36 municipality of each county if the library is not otherwise 166.1 eligible to receive a free copy under this section or section 166.2 15.18; and 166.3 (t) one copy to each county library maintained pursuant to 166.4 chapter 134, except in counties containing cities of the first 166.5 class. If a county has not established a county library 166.6 pursuant to chapter 134, the copy shall be provided to any 166.7 public library in the county. 166.8 Sec. 21. Minnesota Statutes 2000, section 13.679, is 166.9 amended to read: 166.10 13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 166.11 Subdivision 1. [TENANT.] Data collected by thedepartment166.12of public servicecommissioner of commerce that reveals the 166.13 identity of a tenant who makes a complaint regarding energy 166.14 efficiency standards for rental housing are private data on 166.15 individuals. 166.16 Subd. 2. [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 166.17 CUSTOMER.] (a) The following are private data on individuals: 166.18 data collected by thedepartment of public servicecommissioner 166.19 of commerce or the public utilities commission, including the 166.20 names or any other data that would reveal the identity of either 166.21 an employee or customer of a telephone company or public utility 166.22 who files a complaint or provides information regarding a 166.23 violation or suspected violation by the telephone company or 166.24 public utility of any federal or state law or rule; except this 166.25 data may be released as needed to law enforcement authorities. 166.26 (b) The following are private data on individuals: data 166.27 collected by the commission or thedepartment of public service166.28 commissioner of commerce on individual public utility or 166.29 telephone company customers or prospective customers, including 166.30 copies of tax forms, needed to administer federal or state 166.31 programs that provide relief from telephone company bills, 166.32 public utility bills, or cold weather disconnection. The 166.33 determination of eligibility of the customers or prospective 166.34 customers may be released to public utilities or telephone 166.35 companies to administer the programs. 166.36 Sec. 22. Minnesota Statutes 2000, section 15.01, is 167.1 amended to read: 167.2 15.01 [DEPARTMENTS OF THE STATE.] 167.3 The following agencies are designated as the departments of 167.4 the state government: the department of administration; the 167.5 department of agriculture; the department of commerce; the 167.6 department of corrections; the department of children, families, 167.7 and learning; the department of economic security; the 167.8 department of trade and economic development; the department of 167.9 finance; the department of health; the department of human 167.10 rights; the department of labor and industry; the department of 167.11 military affairs; the department of natural resources; the 167.12 department of employee relations; the department of public 167.13 safety;the department of public service;the department of 167.14 human services; the department of revenue; the department of 167.15 transportation; the department of veterans affairs; and their 167.16 successor departments. 167.17 Sec. 23. Minnesota Statutes 2000, section 15.06, 167.18 subdivision 1, is amended to read: 167.19 Subdivision 1. [APPLICABILITY.] This section applies to 167.20 the following departments or agencies: the departments of 167.21 administration, agriculture, commerce, corrections, economic 167.22 security, children, families, and learning, employee relations, 167.23 trade and economic development, finance, health, human rights, 167.24 labor and industry, natural resources, public safety,public167.25service,human services, revenue, transportation, and veterans 167.26 affairs; the housing finance and pollution control agencies; the 167.27 office of commissioner of iron range resources and 167.28 rehabilitation; the bureau of mediation services; and their 167.29 successor departments and agencies. The heads of the foregoing 167.30 departments or agencies are "commissioners." 167.31 Sec. 24. Minnesota Statutes 2000, section 15A.0815, 167.32 subdivision 2, is amended to read: 167.33 Subd. 2. [GROUP I SALARY LIMITS.] The salaries for 167.34 positions in this subdivision may not exceed 95 percent of the 167.35 salary of the governor: 167.36 Commissioner of administration; 168.1 Commissioner of agriculture; 168.2 Commissioner of children, families, and learning; 168.3 Commissioner of commerce; 168.4 Commissioner of corrections; 168.5 Commissioner of economic security; 168.6 Commissioner of employee relations; 168.7 Commissioner of finance; 168.8 Commissioner of health; 168.9 Executive director, higher education services office; 168.10 Commissioner, housing finance agency; 168.11 Commissioner of human rights; 168.12 Commissioner of human services; 168.13 Executive director, state board of investment; 168.14 Commissioner of labor and industry; 168.15 Commissioner of natural resources; 168.16 Director of office of strategic and long-range planning; 168.17 Commissioner, pollution control agency; 168.18 Commissioner of public safety; 168.19Commissioner, department of public service;168.20 Commissioner of revenue; 168.21 Commissioner of trade and economic development; 168.22 Commissioner of transportation; and 168.23 Commissioner of veterans affairs. 168.24 Sec. 25. Minnesota Statutes 2000, section 16B.32, 168.25 subdivision 2, as amended by Laws 2001, chapter 162, section 4, 168.26 is amended to read: 168.27 Subd. 2. [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.] 168.28 (a) The commissioner of administration in consultation with 168.29 thedepartment of public servicecommissioner of commerce, in 168.30 cooperation with one or more public utilities or comprehensive 168.31 energy services providers, may conduct a shared-savings program 168.32 involving energy conservation expenditures on state-owned 168.33 buildings. The public utility or energy services provider shall 168.34 contract with appropriate state agencies to implement energy 168.35 efficiency improvements in the selected buildings. A contract 168.36 must require the public utility or energy services provider to 169.1 include all energy efficiency improvements in selected buildings 169.2 that are calculated to achieve a cost payback within ten years. 169.3 The contract must require that the public utility or energy 169.4 services provider be repaid solely from energy cost savings and 169.5 only to the extent of energy cost savings. Repayments must be 169.6 interest-free. The goal of the program in this paragraph is to 169.7 demonstrate that through effective energy conservation the total 169.8 energy consumption per square foot of state-owned and wholly 169.9 state-leased buildings could be reduced by at least 25 percent 169.10 from consumption in the base year of 1990. All agencies 169.11 participating in the program must report to the commissioner of 169.12 administration their monthly energy usage, building schedules, 169.13 inventory of energy-consuming equipment, and other information 169.14 as needed by the commissioner to manage and evaluate the program. 169.15 (b) The commissioner may exclude from the program of 169.16 paragraph (a) a building in which energy conservation measures 169.17 are carried out. "Energy conservation measures" means measures 169.18 that are applied to a state building that improve energy 169.19 efficiency and have a simple return of investment in ten years 169.20 or within the remaining period of a lease, whichever time is 169.21 shorter, and involves energy conservation, conservation 169.22 facilities, renewable energy sources, improvements in operations 169.23 and maintenance efficiencies, or retrofit activities. 169.24 (c) This subdivision expires January 1, 2006. 169.25 Sec. 26. Minnesota Statutes 2000, section 16B.335, 169.26 subdivision 4, is amended to read: 169.27 Subd. 4. [ENERGY CONSERVATION.] A recipient to whom a 169.28 direct appropriation is made for a capital improvement project 169.29 shall ensure that the project complies with the applicable 169.30 energy conservation standards contained in law, including 169.31 sections 216C.19 to 216C.20, and rules adopted thereunder. The 169.32 recipient mayuse the energy planning and intervention and169.33energy technologies units of the department of public service to169.34 obtain information and technical assistance from the state 169.35 energy office in the department of commerce on energy 169.36 conservation and alternative energy development relating to the 170.1 planning and construction of the capital improvement project. 170.2 Sec. 27. Minnesota Statutes 2000, section 16B.56, 170.3 subdivision 1, is amended to read: 170.4 Subdivision 1. [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 170.5 [ESTABLISHMENT.] To conserve energy and alleviate traffic 170.6 congestion around state offices, the commissioner shall, in 170.7 cooperation withthe commissioner of public service,the 170.8 commissioner of transportation, the state energy office in the 170.9 department of commerce, and interested nonprofit agencies, 170.10 establish and operate an employee transportation program using 170.11 commuter vans with a capacity of not less than seven nor more 170.12 than 16 passengers. Commuter vans may be used by state 170.13 employees and others to travel between their homes and their 170.14 work locations. However, only state employee drivers may use 170.15 the van for personal purposes after working hours, not including 170.16 partisan political activity. The commissioner shall acquire or 170.17 lease commuter vans, or otherwise contract for the provision of 170.18 commuter vans, and shall make the vans available for the use of 170.19 state employees and others in accordance with standards and 170.20 procedures adopted by the commissioner. The commissioner shall 170.21 promote the maximum participation of state employees and others 170.22 in the use of the vans. 170.23 (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 170.24 standards and procedures under this section without regard to 170.25 chapter 14. The commissioner shall provide for the recovery by 170.26 the state of vehicle acquisition, lease, operation, and 170.27 insurance costs through efficient and convenient assignment of 170.28 vans, and for the billing of costs and collection of fees. A 170.29 state employee using a van for personal use shall pay, pursuant 170.30 to the standards and procedures adopted by the commissioner, for 170.31 operating and routine maintenance costs incurred as a result of 170.32 the personal use. Fees collected under this subdivision shall 170.33 be deposited in the accounts from which the costs of operating, 170.34 maintaining, and leasing or amortization for the specific 170.35 vehicle are paid. 170.36 Sec. 28. Minnesota Statutes 2000, section 16B.76, 171.1 subdivision 1, as amended by Laws 2001, chapter 161, section 6, 171.2 is amended to read: 171.3 Subdivision 1. [MEMBERSHIP.] (a) The construction codes 171.4 advisory council consists of the following members: 171.5 (1) the commissioner of administration or the 171.6 commissioner's designee representing the department's building 171.7 codes and standards division; 171.8 (2) the commissioner of health or the commissioner's 171.9 designee representing an environmental health section of the 171.10 department; 171.11 (3) the commissioner of public safety or the commissioner's 171.12 designee representing the department's state fire marshal 171.13 division; 171.14 (4) the commissioner ofpublic servicecommerce or the 171.15 commissioner's designee representing the department'senergy171.16regulation and resource management divisionstate energy office; 171.17 and 171.18 (5) one member representing each of the following 171.19 occupations or entities, appointed by the commissioner of 171.20 administration: 171.21 (i) a certified building official; 171.22 (ii) a fire service representative; 171.23 (iii) a licensed architect; 171.24 (iv) a licensed engineer; 171.25 (v) a building owners and managers representative; 171.26 (vi) a licensed residential building contractor; 171.27 (vii) a commercial building contractor; 171.28 (viii) a heating and ventilation contractor; 171.29 (ix) a plumbing contractor; 171.30 (x) a representative of a construction and building trades 171.31 union; and 171.32 (xi) a local unit of government representative. 171.33 (b) For members who are not state officials or employees, 171.34 terms, compensation, removal, and the filling of vacancies are 171.35 governed by section 15.059. The council shall select one of its 171.36 members to serve as chair. 172.1 (c) The council expires June 30, 2003. 172.2 Sec. 29. Minnesota Statutes 2000, section 17.86, 172.3 subdivision 3, is amended to read: 172.4 Subd. 3. [INFORMATION.] The University of Minnesota 172.5 extension service, in cooperation with the commissioners of 172.6 agriculture, children, families, and learning, natural 172.7 resources, andpublic servicecommerce, shall serve as the 172.8 principal agency for publishing and circulating information 172.9 derived from research under subdivision 2 among the various 172.10 municipalities and individual property owners in the state. 172.11 Where practical, the extension service and the state energy 172.12 office in the department ofpublic servicecommerce shall secure 172.13 the advice and assistance of various energy utilities interested 172.14 and concerned with conservation. The commissioner of 172.15 agriculture shall establish an information source for requests 172.16 for nursery stock, to match needs of municipalities with stocks 172.17 of trees available for planting from private and governmental 172.18 sources. 172.19 Sec. 30. Minnesota Statutes 2000, section 18.024, 172.20 subdivision 1, is amended to read: 172.21 Subdivision 1. [WOOD UTILIZATION.] The departments of 172.22 agriculture and natural resources, after consultation with the 172.23 Minnesota shade tree advisory committee and thecommissioner of172.24public servicestate energy office in the department of 172.25 commerce, shall investigate, evaluate, and make recommendations 172.26 to the legislature concerning the potential uses of wood from 172.27 community trees removed due to disease or other disorders. 172.28 These recommendations shall include maximum resource recovery 172.29 through recycling, use as an alternative energy source, or use 172.30 in construction or the manufacture of new products. Wood 172.31 utilization or disposal systems as defined in section 18.023 172.32 must be included to ensure maximum utilization of diseased shade 172.33 trees with designs and procedures to ensure public safety and to 172.34 assure compliance with approved disease control programs. 172.35 Sec. 31. Minnesota Statutes 2000, section 43A.08, 172.36 subdivision 1a, is amended to read: 173.1 Subd. 1a. [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 173.2 authorities for the following agencies may designate additional 173.3 unclassified positions according to this subdivision: the 173.4 departments of administration; agriculture; commerce; 173.5 corrections; economic security; children, families, and 173.6 learning; employee relations; trade and economic development; 173.7 finance; health; human rights; labor and industry; natural 173.8 resources; public safety;public service;human services; 173.9 revenue; transportation; and veterans affairs; the housing 173.10 finance and pollution control agencies; the state lottery; the 173.11 state board of investment; the office of administrative 173.12 hearings; the office of environmental assistance; the offices of 173.13 the attorney general, secretary of state, state auditor, and 173.14 state treasurer; the Minnesota state colleges and universities; 173.15 the higher education services office; the Perpich center for 173.16 arts education; and the Minnesota zoological board. 173.17 A position designated by an appointing authority according 173.18 to this subdivision must meet the following standards and 173.19 criteria: 173.20 (1) the designation of the position would not be contrary 173.21 to other law relating specifically to that agency; 173.22 (2) the person occupying the position would report directly 173.23 to the agency head or deputy agency head and would be designated 173.24 as part of the agency head's management team; 173.25 (3) the duties of the position would involve significant 173.26 discretion and substantial involvement in the development, 173.27 interpretation, and implementation of agency policy; 173.28 (4) the duties of the position would not require primarily 173.29 personnel, accounting, or other technical expertise where 173.30 continuity in the position would be important; 173.31 (5) there would be a need for the person occupying the 173.32 position to be accountable to, loyal to, and compatible with, 173.33 the governor and the agency head, the employing statutory board 173.34 or commission, or the employing constitutional officer; 173.35 (6) the position would be at the level of division or 173.36 bureau director or assistant to the agency head; and 174.1 (7) the commissioner has approved the designation as being 174.2 consistent with the standards and criteria in this subdivision. 174.3 Sec. 32. Minnesota Statutes 2000, section 45.012, is 174.4 amended to read: 174.5 45.012 [COMMISSIONER.] 174.6 (a) The department of commerce is under the supervision and 174.7 control of the commissioner of commerce. The commissioner is 174.8 appointed by the governor in the manner provided by section 174.9 15.06. 174.10 (b) Data that is received by the commissioner or the 174.11 commissioner's designee by virtue of membership or participation 174.12 in an association, group, or organization that is not otherwise 174.13 subject to chapter 13 is confidential or protected nonpublic 174.14 data but may be shared with the department employees as the 174.15 commissioner considers appropriate. The commissioner may 174.16 release the data to any person, agency, or the public if the 174.17 commissioner determines that the access will aid the law 174.18 enforcement process, promote public health or safety, or dispel 174.19 widespread rumor or unrest. 174.20 (c) It is part of the department's mission that within the 174.21 department's resources the commissioner shall endeavor to: 174.22 (1) prevent the waste or unnecessary spending of public 174.23 money; 174.24 (2) use innovative fiscal and human resource practices to 174.25 manage the state's resources and operate the department as 174.26 efficiently as possible; 174.27 (3) coordinate the department's activities wherever 174.28 appropriate with the activities of other governmental agencies; 174.29 (4) use technology where appropriate to increase agency 174.30 productivity, improve customer service, increase public access 174.31 to information about government, and increase public 174.32 participation in the business of government; 174.33 (5) utilize constructive and cooperative labor-management 174.34 practices to the extent otherwise required by chapters 43A and 174.35 179A; 174.36 (6) report to the legislature on the performance of agency 175.1 operations and the accomplishment of agency goals in the 175.2 agency's biennial budget according to section 16A.10, 175.3 subdivision 1; and 175.4 (7) recommend to the legislature appropriate changes in law 175.5 necessary to carry out the mission and improve the performance 175.6 of the department. 175.7 (d) The commissioner also has all the powers and 175.8 responsibilities and shall perform all the duties previously 175.9 assigned to the commissioner of public service and the 175.10 department of public service under chapters 216, 216A, 216B, 175.11 216C, 237, 238, 239, and other statutes prior to the date of 175.12 final enactment of this act, except in the case where those 175.13 powers, responsibilities, or duties have been specifically 175.14 otherwise assigned by law. 175.15 Sec. 33. Minnesota Statutes 2000, section 103F.325, 175.16 subdivision 2, is amended to read: 175.17 Subd. 2. [REVIEW AND HEARING.] (a) The commissioner shall 175.18 make the proposed management plan available to affected local 175.19 governmental bodies, shoreland owners, conservation and outdoor 175.20 recreation groups, the commissioner of trade and economic 175.21 development, the commissioner ofpublic servicecommerce, the 175.22 governor, and the general public. The commissioners of trade 175.23 and economic developmentand of public service, the state energy 175.24 office in the department of commerce, and the governor shall 175.25 review the proposed management plan in accordance with the 175.26 criteria in section 86A.09, subdivision 3, and submit any 175.27 written comments to the commissioner within 60 days after 175.28 receipt of the proposed management plan. 175.29 (b) By 60 days after making the information available, the 175.30 commissioner shall conduct a public hearing on the proposed 175.31 management plan in the county seat of each county that contains 175.32 a portion of the designated system area, in the manner provided 175.33 in chapter 14. 175.34 Sec. 34. Minnesota Statutes 2000, section 103F.325, 175.35 subdivision 3, is amended to read: 175.36 Subd. 3. [POST HEARING REVIEW.] Upon receipt of the 176.1 administrative law judge's report, the commissioner shall 176.2 immediately forward the proposed management plan and the 176.3 administrative law judge's report to the commissioners of trade 176.4 and economic development and ofpublic servicecommerce for 176.5 review under section 86A.09, subdivision 3, except that the 176.6 review by the commissioners must be completed or be deemed 176.7 completed within 30 days after receiving the administrative law 176.8 judge's report, and the review by the governor must be completed 176.9 or be deemed completed within 15 days after receipt. 176.10 Sec. 35. Minnesota Statutes 2000, section 115A.15, 176.11 subdivision 5, is amended to read: 176.12 Subd. 5. [REPORTS.] (a) By January 1 of each odd-numbered 176.13 year, the commissioner of administration shall submit a report 176.14 to the governor and to the environment and natural resources 176.15 committees of the senate and house of representatives, the 176.16 finance division of the senate committee on environment and 176.17 natural resources, and the house of representatives committee on 176.18 environment and natural resources finance summarizing past 176.19 activities and proposed goals of the program for the following 176.20 biennium. The report shall include at least: 176.21 (1) a summary list of product and commodity purchases that 176.22 contain recycled materials; 176.23 (2) the results of any performance tests conducted on 176.24 recycled products and agencies' experience with recycled 176.25 products used; 176.26 (3) a list of all organizations participating in and using 176.27 the cooperative purchasing program; and 176.28 (4) a list of products and commodities purchased for their 176.29 recyclability and of recycled products reviewed for purchase. 176.30 (b) By July 1 of each even-numbered year, the director of 176.31 the office of environmental assistance and the commissioner of 176.32public servicecommerce through the state energy office shall 176.33 submit recommendations to the commissioner regarding the 176.34 operation of the program. 176.35 Sec. 36. Minnesota Statutes 2000, section 116O.06, 176.36 subdivision 2, is amended to read: 177.1 Subd. 2. [EQUITY INVESTMENTS.] The corporation may acquire 177.2 an interest in a product or a private business entity, except 177.3 that the corporation may not acquire an interest in a business 177.4 entity engaged in a trade or industry whose profits are directly 177.5 regulated by the commissioner of commerce or thedepartment of177.6public servicepublic utilities commission. The corporation may 177.7 enter into joint venture agreements with other private 177.8 corporations to promote economic development and job creation. 177.9 Sec. 37. Minnesota Statutes 2000, section 123B.65, 177.10 subdivision 1, is amended to read: 177.11 Subdivision 1. [DEFINITIONS.] The definitions in this 177.12 subdivision apply to this section. 177.13 (a) "Energy conservation measure" means a training program 177.14 or facility alteration designed to reduce energy consumption or 177.15 operating costs and includes: 177.16 (1) insulation of the building structure and systems within 177.17 the building; 177.18 (2) storm windows and doors, caulking or weatherstripping, 177.19 multiglazed windows and doors, heat absorbing or heat reflective 177.20 glazed and coated window and door systems, additional glazing, 177.21 reductions in glass area, and other window and door system 177.22 modifications that reduce energy consumption; 177.23 (3) automatic energy control systems; 177.24 (4) heating, ventilating, or air conditioning system 177.25 modifications or replacements; 177.26 (5) replacement or modifications of lighting fixtures to 177.27 increase the energy efficiency of the lighting system without 177.28 increasing the overall illumination of a facility, unless such 177.29 increase in illumination is necessary to conform to the 177.30 applicable state or local building code for the lighting system 177.31 after the proposed modifications are made; 177.32 (6) energy recovery systems; 177.33 (7) cogeneration systems that produce steam or forms of 177.34 energy such as heat, as well as electricity, for use primarily 177.35 within a building or complex of buildings; 177.36 (8) energy conservation measures that provide long-term 178.1 operating cost reductions. 178.2 (b) "Guaranteed energy savings contract" means a contract 178.3 for the evaluation and recommendations of energy conservation 178.4 measures, and for one or more energy conservation measures. The 178.5 contract must provide that all payments, except obligations on 178.6 termination of the contract before its expiration, are to be 178.7 made over time, but not to exceed 15 years from the date of 178.8 final installation, and the savings are guaranteed to the extent 178.9 necessary to make payments for the systems. 178.10 (c) "Qualified provider" means a person or business 178.11 experienced in the design, implementation, and installation of 178.12 energy conservation measures. A qualified provider to whom the 178.13 contract is awarded shall give a sufficient bond to the school 178.14 district for its faithful performance. 178.15 (d) "Commissioner" means the commissioner ofpublic service178.16 commerce through the state energy office. 178.17 Sec. 38. Minnesota Statutes 2000, section 123B.65, 178.18 subdivision 3, is amended to read: 178.19 Subd. 3. [EVALUATION BY COMMISSIONER.] Upon request of the 178.20 board, the commissionerof public serviceshall review the 178.21 report required in subdivision 2 and provide an evaluation to 178.22 the board on the proposed contract within 15 working days of 178.23 receiving the report. In evaluating the proposed contract, the 178.24 commissioner shall determine whether the detailed calculations 178.25 of the costs and of the energy and operating savings are 178.26 accurate and reasonable. The commissioner may request 178.27 additional information about a proposed contract as the 178.28 commissioner deems necessary. If the commissioner requests 178.29 additional information, the commissioner shall not be required 178.30 to submit an evaluation to the board within fewer than ten 178.31 working days of receiving the requested information. 178.32 Sec. 39. Minnesota Statutes 2000, section 123B.65, 178.33 subdivision 5, is amended to read: 178.34 Subd. 5. [PAYMENT OF REVIEW EXPENSES.] The commissionerof178.35public servicemay charge a district requesting services under 178.36 subdivisions 3 and 4 actual costs incurred by the department 179.1 ofpublic servicecommerce while conducting the review, or 179.2 one-half percent of the total identified project cost, whichever 179.3 is less. Before conducting the review, the commissioner shall 179.4 notify a district requesting review services that expenses will 179.5 be charged to the district. The commissioner shall bill the 179.6 district upon completion of the contract review. Money 179.7 collected by the commissioner under this subdivision must be 179.8 deposited in the general fund. A district may include the cost 179.9 of a review by the commissioner under subdivision 3 in a 179.10 contract made pursuant to this section. 179.11 Sec. 40. Minnesota Statutes 2000, section 161.45, 179.12 subdivision 1, is amended to read: 179.13 Subdivision 1. [RULES.] Electric transmission, telephone 179.14 or telegraph lines, pole lines, community antenna television 179.15 lines, railways, ditches, sewers, water, heat or gas mains, gas 179.16 and other pipe lines, flumes, or other structures which, under 179.17 the laws of this state or the ordinance of any city, may be 179.18 constructed, placed, or maintained across or along any trunk 179.19 highway, or the roadway thereof, by any person, persons, 179.20 corporation, or any subdivision of the state, may be so 179.21 maintained or hereafter constructed only in accordance with such 179.22 rules as may be prescribed by the commissioner who shall have 179.23 power to prescribe and enforce reasonable rules with reference 179.24 to the placing and maintaining along, across, or in any such 179.25 trunk highway of any of the utilities hereinbefore set forth. 179.26 Nothing herein shall restrict the actions of public authorities 179.27 in extraordinary emergencies nor restrict the power and 179.28 authority of thedepartment of public servicecommissioner of 179.29 commerce as provided for in other provisions of law. Provided, 179.30 however, that in the event any local subdivision of government 179.31 has enacted ordinances relating to the method of installation or 179.32 requiring underground installation of such community antenna 179.33 television lines, the permit granted by the commissioner of 179.34 transportation shall require compliance with such local 179.35 ordinance. 179.36 Sec. 41. Minnesota Statutes 2000, section 168.61, 180.1 subdivision 1, is amended to read: 180.2 Subdivision 1. [DEFINITION.] The term "intercity bus" as 180.3 used in sections 168.61 to 168.65 means a motor bus as defined 180.4 in section 168.011, subdivision 9, which is owned or operated by 180.5 either a resident or nonresident of Minnesota in interstate 180.6 commerce under authority of the Interstate Commerce Commission 180.7 or in combined interstate and intrastate commerce under 180.8 authority of the Interstate Commerce Commission and the 180.9 department ofpublic servicetransportation of Minnesota, as a 180.10 result of which operation such bus operates both within and 180.11 without the territorial limits of the state of Minnesota. 180.12 Sec. 42. Minnesota Statutes 2000, section 169.073, is 180.13 amended to read: 180.14 169.073 [PROHIBITED LIGHT OR SIGNAL.] 180.15 (a) No person or corporation shall place, maintain or 180.16 display any red light or red sign, signal, or lighting device or 180.17 maintain it in view of any highway or any line of railroad on or 180.18 over which trains are operated in such a way as to interfere 180.19 with the effectiveness or efficiency of any highway 180.20 traffic-control device or signals or devices used in the 180.21 operation of a railroad. Upon written notice from the 180.22 commissioner of transportation, a person or corporation 180.23 maintaining or owning or displaying a prohibited light shall 180.24 promptly remove it, or change the color of it to some other 180.25 color than red. Where a prohibited light or sign interferes 180.26 with the effectiveness or efficiency of the signals or devices 180.27 used in the operation of a railroad, the department ofpublic180.28servicetransportation may cause the removal of it and the 180.29 department may issue notices and orders for its removal. The 180.30 department shall proceed as provided in sections 216.13, 216.14, 180.31 216.15, 216.16, and 216.17, with a right of appeal to the 180.32 aggrieved party in accordance with chapter 14. 180.33 (b) No person or corporation shall maintain or display any 180.34 light after written notice from the commissioner of 180.35 transportation or the department of public service that the 180.36 light constitutes a traffic hazard and that it has ordered the 181.1 removal thereof. 181.2 Sec. 43. Minnesota Statutes 2000, section 174.03, 181.3 subdivision 7, is amended to read: 181.4 Subd. 7. [ENERGY CONSERVATION.] The commissioner, in 181.5 cooperation with the commissioner ofpublic servicecommerce 181.6 through the state energy office, shall evaluate all modes of 181.7 transportation in terms of their levels of energy consumption. 181.8 The commissioner ofpublic servicecommerce shall provide the 181.9 commissioner with projections of the future availability of 181.10 energy resources for transportation. The commissioner shall use 181.11 the results of this evaluation and the projections to evaluate 181.12 alternative programs and facilities to be included in the 181.13 statewide plan and to otherwise promote the more efficient use 181.14 of energy resources for transportation purposes. 181.15 Sec. 44. Minnesota Statutes 2000, section 181.30, is 181.16 amended to read: 181.17 181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 181.18 Any officer of any railroad company in the state violating 181.19 any of the provisions of section 181.29 shall be guilty of a 181.20 misdemeanor; and, upon conviction, punished by a fine of not 181.21 less than $100, and not more than $700, for each offense, or by 181.22 imprisonment in the county jail not more than 60 days, or both 181.23 fine and imprisonment, at the discretion of the court. It shall 181.24 be the duty of the state department ofpublic181.25servicetransportation, upon complaint properly filed with it 181.26 alleging a violation of section 181.29, to make a full 181.27 investigation in relation thereto, and for such purpose it shall 181.28 have the power to administer oaths, interrogate witnesses, take 181.29 testimony and require the production of books and papers, and if 181.30 such report shall show a violation of the provisions of section 181.31 181.29, the department ofpublic servicetransportation shall, 181.32 through the attorney general, begin the prosecution of all 181.33 parties against whom evidence of such violation is found; but 181.34 section 181.29 shall not be construed to prevent any other 181.35 person from beginning prosecution for the violation of the 181.36 provisions thereof. 182.1 Sec. 45. Minnesota Statutes 2000, section 216A.01, is 182.2 amended to read: 182.3 216A.01 [ESTABLISHMENT OFDEPARTMENT AND COMMISSION; POWERS 182.4 AND DUTIES.] 182.5There are hereby created and established the department of182.6public service, and the public utilities commission.The 182.7 department ofpublic servicecommerce shall have and possess all 182.8 of the rights and powers and perform all of the duties vested in 182.9 it by this chapter. The public utilities commission shall have 182.10 and possess all of the rights and powers and perform all of the 182.11 duties vested in it by this chapter, and those formerly vested 182.12 by law in the railroad and warehouse commission. 182.13 Sec. 46. Minnesota Statutes 2000, section 216A.035, is 182.14 amended to read: 182.15 216A.035 [CONFLICT OF INTEREST.] 182.16 (a) No person, while a member of the public utilities 182.17 commission, while acting as executive secretary of the 182.18 commission, or while employed in a professional capacity by the 182.19 commission, shall receive any income, other than dividends or 182.20 other earnings from a mutual fund or trust if these earnings do 182.21 not constitute a significant portion of the person's income, 182.22 directly or indirectly from any public utility or other 182.23 organization subject to regulation by the commission. 182.24 (b) No person is eligible to be appointed as a member of 182.25 the commission if the person has been employed with an entity, 182.26 or an affiliated company of an entity, that is subject to rate 182.27 regulation by the commission within one year from the date when 182.28 the person's term on the commission will begin. 182.29 (c) No person who is an employee of thepublic service182.30 department of commerce shall participate in any manner in any 182.31 decision or action of the commission where that person has a 182.32 direct or indirect financial interest. Each commissioner or 182.33 employee of thepublic servicedepartment who is in the general 182.34 professional, supervisory, or technical units established in 182.35 section 179A.10 or who is a professional, supervisory, or 182.36 technical employee defined as confidential in section 179A.03, 183.1 subdivision 4, or who is a management classification employee 183.2 and whose duties are related to publicutilities or183.3transportationutility, telephone company, or telecommunications 183.4 company regulation shall report to the campaign finance and 183.5 public disclosure board annually before April 15 any interest in 183.6 an industry or business regulated by the commission. Each 183.7 commissioner shall file a statement of economic interest as 183.8 required by section 10A.09 with the campaign finance and public 183.9 disclosure board and the public utilities commission before 183.10 taking office. The statement of economic interest must state 183.11 any interest that the commissioner has in an industry or 183.12 business regulated by the commission. 183.13 (d) A professional employee of the commission or department 183.14 must immediately disclose to the commission or to the 183.15 commissioner of the department, respectively, any communication, 183.16 direct or indirect, with a person who is a party to a pending 183.17 proceeding before the commission regarding future benefits, 183.18 compensation, or employment to be received from that person. 183.19 Sec. 47. Minnesota Statutes 2000, section 216A.036, is 183.20 amended to read: 183.21 216A.036 [EMPLOYMENT RESTRICTIONS.] 183.22 (a) A person who serves as (1) a commissioner of the public 183.23 utilities commission, (2) commissioner ofthe department of183.24public servicecommerce, or (3) deputy commissioner ofthe183.25departmentcommerce, shall not, while employed with or within 183.26 one year after leaving the commission, or department, accept 183.27 employment with, receive compensation directly or indirectly 183.28 from, or enter into a contractual relationship with an entity, 183.29 or an affiliated company of an entity, that is subject to rate 183.30 regulation by the commission. 183.31 (b) An entity or an affiliated company of an entity that is 183.32 subject to rate regulation by the commission, or a person acting 183.33 on behalf of the entity, shall not negotiate or offer to employ 183.34 or compensate a commissioner of the public utilities commission, 183.35 the commissioner ofpublic servicecommerce, or the deputy 183.36 commissioner of commerce, while the person is so employed or 184.1 within one year after the person leaves that employment. 184.2 (c) For the purposes of this section, "affiliated company" 184.3 means a company that controls, is controlled by, or is under 184.4 common control with an entity subject to rate regulation by the 184.5 commission. 184.6 (d) A person who violates this section is subject to a 184.7 civil penalty not to exceed $10,000 for each violation. The 184.8 attorney general may bring an action in district court to 184.9 collect the penalties provided in this section. 184.10 Sec. 48. Minnesota Statutes 2000, section 216A.05, 184.11 subdivision 1, is amended to read: 184.12 Subdivision 1. [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 184.13 The functions of the commission shall be legislative and 184.14 quasi-judicial in nature. It may make such investigations and 184.15 determinations, hold such hearings, prescribe such rules and 184.16 issue such orders with respect to the control and conduct of the 184.17 businesses coming within its jurisdiction as the legislature 184.18 itself might make but only as it shall from time to time 184.19 authorize. It may adjudicate all proceedings brought before it 184.20 in which the violation of any law or rule administered by the 184.21 department of commerce is alleged. 184.22 Sec. 49. Minnesota Statutes 2000, section 216A.07, 184.23 subdivision 1, is amended to read: 184.24 Subdivision 1. [ADMINISTRATIVECOMMISSIONER'S DUTIES.] The 184.25 commissionershall be the executive and administrative head of184.26the public service department and shall have and possessof 184.27 commerce has all the rights and powers and shall perform all the 184.28 dutiesrelating to the administrative function of the department184.29asset forth in this chapter. The commissioner may: 184.30 (1) prepare all forms or blanks for the purpose of 184.31 obtaining information which the commissioner may deem necessary 184.32 or useful in the proper exercise of the authority and duties of 184.33 the commissioner in connection with regulated businesses; 184.34 (2) prescribe the time and manner within which forms or 184.35 blanks shall be filed with the department; 184.36 (3) inspect at all reasonable times, and copy the books, 185.1 records, memoranda and correspondence or other documents and 185.2 records of any person relating to any regulated business; and 185.3 (4) cause the deposition to be taken of any person 185.4 concerning the business and affairs of any business regulated by 185.5 the department. Information sought through said deposition 185.6 shall be for a lawfully authorized purpose and shall be relevant 185.7 and material to the investigation or hearing before the 185.8 commission. Information obtained from said deposition shall be 185.9 used by the department only for a lawfully authorized purpose 185.10 and pursuant to powers and responsibilities conferred upon the 185.11 department. Said deposition is to be taken in the manner 185.12 prescribed by law for taking depositions in civil actions in the 185.13 district court. 185.14 Sec. 50. Minnesota Statutes 2000, section 216A.08, is 185.15 amended to read: 185.16 216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 185.17 DEPARTMENT.] 185.18 All valid rules, orders, and directives heretofore 185.19 enforced, issued, or promulgated by the public service 185.20 department under authority of chapter 216, 216A, 216B, 216C, 185.21 218, 219, 221,or222, 237, 238, or 239 shall remain and 185.22 continue in force and effect until repealed, modified, or 185.23 superseded by duly authorized rules, orders, or directives of 185.24 the public utilities commissionor, the commissioner of 185.25 transportation, or the commissioner of commerce. 185.26 Sec. 51. Minnesota Statutes 2000, section 216A.085, 185.27 subdivision 3, is amended to read: 185.28 Subd. 3. [STAFFING.] The intervention office shall be 185.29 under the control and supervision of the commissioner ofthe185.30department of public servicecommerce. The commissioner may 185.31 hire staff or contract for outside services as needed to carry 185.32 out the purposes of this section. The attorney general shall 185.33 act as counsel in all intervention proceedings. 185.34 Sec. 52. Minnesota Statutes 2000, section 216B.02, 185.35 subdivision 1, is amended to read: 185.36 Subdivision 1. [SCOPE.] For the purposes ofLaws 1974,186.1chapter 429this chapter, the terms defined in this section have 186.2 the meanings given them. 186.3 Sec. 53. Minnesota Statutes 2000, section 216B.02, 186.4 subdivision 7, is amended to read: 186.5 Subd. 7. [COMMISSION.] "Commission" means the public 186.6 utilities commissionof the department of public service. 186.7 Sec. 54. Minnesota Statutes 2000, section 216B.02, 186.8 subdivision 8, is amended to read: 186.9 Subd. 8. [DEPARTMENT.] "Department" means the department 186.10 ofpublic servicecommerce of the state of Minnesota. 186.11 Sec. 55. Minnesota Statutes 2000, section 216B.16, 186.12 subdivision 1, is amended to read: 186.13 Subdivision 1. [NOTICE.] Unless the commission otherwise 186.14 orders, no public utility shall change a rate which has been 186.15 duly established under this chapter, except upon 60 days' notice 186.16 to the commission. The notice shall include statements of 186.17 facts, expert opinions, substantiating documents, and exhibits, 186.18 supporting the change requested, and state the change proposed 186.19 to be made in the rates then in force and the time when the 186.20 modified rates will go into effect. If the filing utility does 186.21 not have an approved conservation improvement plan on file with 186.22 the departmentof public service, it shall also include in its 186.23 notice an energy conservation plan pursuant to section 186.24 216B.241. The filing utility shall give written notice, as 186.25 approved by the commission, of the proposed change to the 186.26 governing body of each municipality and county in the area 186.27 affected. All proposed changes shall be shown by filing new 186.28 schedules or shall be plainly indicated upon schedules on file 186.29 and in force at the time. 186.30 Sec. 56. Minnesota Statutes 2000, section 216B.16, 186.31 subdivision 2, is amended to read: 186.32 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 186.33 DETERMINATION DEFINED.] (a) Whenever there is filed with the 186.34 commission a schedule modifying or resulting in a change in any 186.35 rates then in force as provided in subdivision 1, the commission 186.36 may suspend the operation of the schedule by filing with the 187.1 schedule of rates and delivering to the affected utility a 187.2 statement in writing of its reasons for the suspension at any 187.3 time before the rates become effective. The suspension shall 187.4 not be for a longer period than ten months beyond the initial 187.5 filing date except as provided in this subdivision or 187.6 subdivision 1a. 187.7 (b) During the suspension the commission shall determine 187.8 whether all questions of the reasonableness of the rates 187.9 requested raised by persons deemed interested or by the 187.10administrative division of thedepartmentof public servicecan 187.11 be resolved to the satisfaction of the commission. If the 187.12 commission finds that all significant issues raised have not 187.13 been resolved to its satisfaction, or upon petition by ten 187.14 percent of the affected customers or 250 affected customers, 187.15 whichever is less, it shall refer the matter to the office of 187.16 administrative hearings with instructions for a public hearing 187.17 as a contested case pursuant to chapter 14, except as otherwise 187.18 provided in this section. 187.19 (c) The commission may order that the issues presented by 187.20 the proposed rate changes be bifurcated into two separate 187.21 hearings as follows: (1) determination of the utility's revenue 187.22 requirements and (2) determination of the rate design. Upon 187.23 issuance of both administrative law judge reports, the issues 187.24 shall again be joined for consideration and final determination 187.25 by the commission. 187.26 (d) All prehearing discovery activities of state agency 187.27 intervenors shall be consolidated and conducted by the 187.28 department ofpublic servicecommerce. 187.29 (e) If the commission does not make a final determination 187.30 concerning a schedule of rates within ten months after the 187.31 initial filing date, the schedule shall be deemed to have been 187.32 approved by the commission; except if: 187.33 (1) an extension of the procedural schedule has been 187.34 granted under subdivision 1a, in which case the schedule of 187.35 rates is deemed to have been approved by the commission on the 187.36 last day of the extended period of suspension; or 188.1 (2) a settlement has been submitted to and rejected by the 188.2 commission and the commission does not make a final 188.3 determination concerning the schedule of rates, the schedule of 188.4 rates is deemed to have been approved 60 days after the initial 188.5 or, if applicable, the extended period of suspension. 188.6 (f) If the commission finds that it has insufficient time 188.7 during the suspension period to make a final determination of a 188.8 case involving changes in general rates because of the need to 188.9 make a final determination of another previously filed case 188.10 involving changes in general rates under this section or section 188.11 237.075, the commission may extend the suspension period to the 188.12 extent necessary to allow itself 20 working days to make the 188.13 final determination after it has made a final determination in 188.14 the previously filed case. An extension of the suspension 188.15 period under this paragraph does not alter the setting of 188.16 interim rates under subdivision 3. 188.17 (g) For the purposes of this section, "final determination" 188.18 means the initial decision of the commission and not any order 188.19 which may be entered by the commission in response to a petition 188.20 for rehearing or other further relief. The commission may 188.21 further suspend rates until it determines all those petitions. 188.22 Sec. 57. Minnesota Statutes 2000, section 216B.16, 188.23 subdivision 6b, is amended to read: 188.24 Subd. 6b. [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 188.25 otherwise provided in this subdivision, all investments and 188.26 expenses of a public utility as defined in section 216B.241, 188.27 subdivision 1, paragraph (e), incurred in connection with energy 188.28 conservation improvements shall be recognized and included by 188.29 the commission in the determination of just and reasonable rates 188.30 as if the investments and expenses were directly made or 188.31 incurred by the utility in furnishing utility service. 188.32 (b) After December 31, 1999, investments and expenses for 188.33 energy conservation improvements shall not be included by the 188.34 commission in the determination of just and reasonable electric 188.35 and gas rates for retail electric and gas service provided to 188.36 large electric customer facilities that have been exempted by 189.1 the commissioner of the departmentof public servicepursuant to 189.2 section 216B.241, subdivision 1a, paragraph (b). However, no 189.3 public utility shall be prevented from recovering its investment 189.4 in energy conservation improvements from all customers that were 189.5 made on or before December 31, 1999, in compliance with the 189.6 requirements of section 216B.241. 189.7 (c) The commission may permit a public utility to file rate 189.8 schedules providing for annual recovery of the costs of energy 189.9 conservation improvements. These rate schedules may be 189.10 applicable to less than all the customers in a class of retail 189.11 customers if necessary to reflect the differing minimum spending 189.12 requirements of section 216B.241, subdivision 1a. After 189.13 December 31, 1999, the commission shall allow a public utility, 189.14 without requiring a general rate filing under this section, to 189.15 reduce the electric and gas rates applicable to large electric 189.16 customer facilities that have been exempted by the commissioner 189.17 of the departmentof public servicepursuant to section 189.18 216B.241, subdivision 1a, paragraph (b), by an amount that 189.19 reflects the elimination of energy conservation improvement 189.20 investments or expenditures for those facilities required on or 189.21 before December 31, 1999. In the event that the commission has 189.22 set electric or gas rates based on the use of an accounting 189.23 methodology that results in the cost of conservation 189.24 improvements being recovered from utility customers over a 189.25 period of years, the rate reduction may occur in a series of 189.26 steps to coincide with the recovery of balances due to the 189.27 utility for conservation improvements made by the utility on or 189.28 before December 31, 1999. 189.29 Sec. 58. Minnesota Statutes 2000, section 216B.162, 189.30 subdivision 7, is amended to read: 189.31 Subd. 7. [COMMISSION DETERMINATION.] (a) Except as 189.32 provided under subdivision 6, competitive rates offered by 189.33 electric utilities under this section must be filed with the 189.34 commission and must be approved, modified, or rejected by the 189.35 commission within 90 days. The utility's filing must include 189.36 statements of fact demonstrating that the proposed rates meet 190.1 the standards of this subdivision. The filing must be served on 190.2 the departmentof public serviceand the office of the attorney 190.3 general at the same time as it is served on the commission. 190.4 (b) In reviewing a specific rate proposal, the commission 190.5 shall determine: 190.6 (1) that the rate meets the terms and conditions in 190.7 subdivision 4, unless the commission determines that waiver of 190.8 one or more terms and conditions would be in the public 190.9 interest; 190.10 (2) that the consumer can obtain its energy requirements 190.11 from an energy supplier not rate-regulated by the commission 190.12 under section 216B.16; 190.13 (3) that the customer is not likely to take service from 190.14 the electric utility seeking to offer the competitive rate if 190.15 the customer was charged the electric utility's standard 190.16 tariffed rate; and 190.17 (4) that after consideration of environmental and 190.18 socioeconomic impacts it is in the best interest of all other 190.19 customers to offer the competitive rate to the customer subject 190.20 to effective competition. 190.21 (c) If the commission approves the competitive rate, it 190.22 becomes effective as agreed to by the electric utility and the 190.23 customer. If the competitive rate is modified by the 190.24 commission, the commission shall issue an order modifying the 190.25 competitive rate subject to the approval of the electric utility 190.26 and the customer. Each party has ten days in which to reject 190.27 the proposed modification. If no party rejects the proposed 190.28 modification, the commissioner's order becomes final. If either 190.29 party rejects the commission's proposed modification, the 190.30 electric utility, on its behalf or on the behalf of the 190.31 customer, may submit to the commission a modified version of the 190.32 commission's proposal. The commission shall accept or reject 190.33 the modified version within 30 days. If the commission rejects 190.34 the competitive rate, it shall issue an order indicating the 190.35 reasons for the rejection. 190.36 Sec. 59. Minnesota Statutes 2000, section 216B.162, 191.1 subdivision 11, is amended to read: 191.2 Subd. 11. [COMMISSION DETERMINATION.] (a) Proposals for 191.3 discretionary rate reductions offered by utilities must be filed 191.4 with the commission, with copies of the filing served upon the 191.5 departmentof public serviceand the office of attorney general 191.6 at the same time it is served upon the commission. The 191.7 commission shall review the proposals according to procedures 191.8 developed under section 216B.05, subdivision 2a. The commission 191.9 shall not approve discretionary rate reductions offered by 191.10 public utilities that do not have an accepted resource plan on 191.11 file with the commission. The commission shall not approve 191.12 discretionary rate reductions unless the utility has made the 191.13 customer aware of all cost-effective opportunities for energy 191.14 efficiency improvements offered by the utility. 191.15 (b) Public utilities that provide service under 191.16 discretionary rate reductions shall not, through increased 191.17 revenue requirements or through prospective rate design changes, 191.18 recover any revenues foregone due to the discretionary rate 191.19 reductions, nor shall the commission grant such recovery. 191.20 Sec. 60. Minnesota Statutes 2000, section 216B.1675, 191.21 subdivision 9, is amended to read: 191.22 Subd. 9. [COMMISSION FINDINGS.] The commission shall issue 191.23 findings concerning the appropriateness of the proposed plan. 191.24 The commission may approve, reject, or modify the plan in a 191.25 manner which meets the requirements of this section. An 191.26 approved or modified plan becomes effective unless the plan is 191.27 withdrawn by the utility within 30 days of a final appealable 191.28 order. If the utility withdraws an approved or modified plan, 191.29 all of the administrative costs related to the plan that are 191.30 charged by the commission or the departmentof public serviceto 191.31 the utility may not be recovered from ratepayers in current or 191.32 subsequent rates. A utility that withdraws an approved or 191.33 modified plan may not file another plan under this section for a 191.34 period of one year following the withdrawal of the plan. 191.35 Sec. 61. Minnesota Statutes 2000, section 216B.241, 191.36 subdivision 1a, as amended by Laws 2001, chapter 212, article 8, 192.1 section 5, is amended to read: 192.2 Subd. 1a. [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 192.3 PUBLIC UTILITY.] (a) For purposes of this subdivision and 192.4 subdivision 2, "public utility" has the meaning given it in 192.5 section 216B.02, subdivision 4. Each public utility shall spend 192.6 and invest for energy conservation improvements under this 192.7 subdivision and subdivision 2 the following amounts: 192.8 (1) for a utility that furnishes gas service, 0.5 percent 192.9 of its gross operating revenues from service provided in the 192.10 state; 192.11 (2) for a utility that furnishes electric service, 1.5 192.12 percent of its gross operating revenues from service provided in 192.13 the state; and 192.14 (3) for a utility that furnishes electric service and that 192.15 operates a nuclear-powered electric generating plant within the 192.16 state, two percent of its gross operating revenues from service 192.17 provided in the state. 192.18 For purposes of this paragraph (a), "gross operating revenues" 192.19 do not include revenues from large electric customer facilities 192.20 exempted by the commissioner under paragraph (b). 192.21 (b) The owner of a large electric customer facility may 192.22 petition the commissioner to exempt both electric and gas 192.23 utilities serving the large energy customer facility from the 192.24 investment and expenditure requirements of paragraph (a) with 192.25 respect to retail revenues attributable to the facility. At a 192.26 minimum, the petition must be supported by evidence relating to 192.27 competitive or economic pressures on the customer and a showing 192.28 by the customer of reasonable efforts to identify, evaluate, and 192.29 implement cost-effective conservation improvements at the 192.30 facility. If a petition is filed on or before October 1 of any 192.31 year, the order of the commissioner to exempt revenues 192.32 attributable to the facility can be effective no earlier than 192.33 January 1 of the following year. The commissioner shall not 192.34 grant an exemption if the commissioner determines that granting 192.35 the exemption is contrary to the public interest. The 192.36 commissioner may, after investigation, rescind any exemption 193.1 granted under this paragraph upon a determination that 193.2 cost-effective energy conservation improvements are available at 193.3 the large electric customer facility. For the purposes of this 193.4 paragraph, "cost-effective" means that the projected total cost 193.5 of the energy conservation improvement at the large electric 193.6 customer facility is less than the projected present value of 193.7 the energy and demand savings resulting from the energy 193.8 conservation improvement. For the purposes of investigations by 193.9 the commissioner under this paragraph, the owner of any large 193.10 electric customer facility shall, upon request, provide the 193.11 commissioner with updated information comparable to that 193.12 originally supplied in or with the owner's original petition 193.13 under this paragraph. 193.14 (c) The commissioner may require investments or spending 193.15 greater than the amounts required under this subdivision for a 193.16 public utility whose most recent advance forecast required under 193.17 section 216B.2422 or 216C.17 projects a peak demand deficit of 193.18 100 megawatts or greater within five years under mid-range 193.19 forecast assumptions. 193.20 (d) A public utility or owner of a large electric customer 193.21 facility may appeal a decision of the commissioner under 193.22 paragraph (b) or (c) to the commission under subdivision 2. In 193.23 reviewing a decision of the commissioner under paragraph (b) or 193.24 (c), the commission shall rescind the decision if it finds that 193.25 the required investments or spending will: 193.26 (1) not result in cost-effective energy conservation 193.27 improvements; or 193.28 (2) otherwise not be in the public interest. 193.29 (e) Each utility shall determine what portion of the amount 193.30 it sets aside for conservation improvement will be used for 193.31 conservation improvements under subdivision 2 and what portion 193.32 it will contribute to the energy and conservation account 193.33 established in subdivision 2a. A public utility may propose to 193.34 the commissioner to designate that all or a portion of funds 193.35 contributed to the account established in subdivision 2a be used 193.36 for research and development projects that can best be 194.1 implemented on a statewide basis. Contributions must be 194.2 remitted to the commissionerof public serviceby February 1 of 194.3 each year. Nothing in this subdivision prohibits a public 194.4 utility from spending or investing for energy conservation 194.5 improvement more than required in this subdivision. 194.6 Sec. 62. Minnesota Statutes 2000, section 216B.241, 194.7 subdivision 1b, as amended by Laws 2001, chapter 212, article 8, 194.8 section 6, is amended to read: 194.9 Subd. 1b. [CONSERVATION IMPROVEMENT BY COOPERATIVE 194.10 ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 194.11 (1) a cooperative electric association that provides retail 194.12 service to its members; 194.13 (2) a municipality that provides electric service to retail 194.14 customers; and 194.15 (3) a municipality with gross operating revenues in excess 194.16 of $5,000,000 from sales of natural gas to retail customers. 194.17 (b) Each cooperative electric association and municipality 194.18 subject to this subdivision shall spend and invest for energy 194.19 conservation improvements under this subdivision the following 194.20 amounts: 194.21 (1) for a municipality, 0.5 percent of its gross operating 194.22 revenues from the sale of gas and 1.5 percent of its gross 194.23 operating revenues from the sale of electricity, excluding gross 194.24 operating revenues from electric and gas service provided in the 194.25 state to large electric customer facilities; and 194.26 (2) for a cooperative electric association, 1.5 percent of 194.27 its gross operating revenues from service provided in the state, 194.28 excluding gross operating revenues from service provided in the 194.29 state to large electric customer facilities indirectly through a 194.30 distribution cooperative electric association. 194.31 (c) Each municipality and cooperative electric association 194.32 subject to this subdivision shall identify and implement energy 194.33 conservation improvement spending and investments that are 194.34 appropriate for the municipality or association, except that a 194.35 municipality or association may not spend or invest for energy 194.36 conservation improvements that directly benefit a large electric 195.1 customer facility for which the commissioner has issued an 195.2 exemption under subdivision 1a, paragraph (b). 195.3 (d) Each municipality and cooperative electric association 195.4 subject to this subdivision may spend and invest annually up to 195.5 ten percent of the total amount required to be spent and 195.6 invested on energy conservation improvements under this 195.7 subdivision on research and development projects that meet the 195.8 definition of energy conservation improvement in subdivision 1 195.9 and that are funded directly by the municipality or cooperative 195.10 electric association. 195.11 (e) Load management activities that do not reduce energy 195.12 use but that increase the efficiency of the electric system may 195.13 be used to meet the following percentage of the conservation 195.14 investment and spending requirements of this subdivision: 195.15 (1) 2002 - 90 percent; 195.16 (2) 2003 - 80 percent; 195.17 (3) 2004 - 65 percent; and 195.18 (4) 2005 and thereafter - 50 percent. 195.19 (f) A generation and transmission cooperative electric 195.20 association that provides energy services to cooperative 195.21 electric associations that provide electric service at retail to 195.22 consumers may invest in energy conservation improvements on 195.23 behalf of the associations it serves and may fulfill the 195.24 conservation, spending, reporting, and energy savings goals on 195.25 an aggregate basis. A municipal power agency or other 195.26 not-for-profit entity that provides energy service to municipal 195.27 utilities that provide electric service at retail may invest in 195.28 energy conservation improvements on behalf of the municipal 195.29 utilities it serves and may fulfill the conservation, spending, 195.30 reporting, and energy savings goals on an aggregate basis, under 195.31 an agreement between the municipal power agency or 195.32 not-for-profit entity and each municipal utility for funding the 195.33 investments. 195.34 (g) By June 1, 2002, and every two years thereafter, each 195.35 municipality or cooperative shall file an overview of its 195.36 conservation improvement plan with the commissioner. With this 196.1 overview, the municipality or cooperative shall also provide an 196.2 evaluation to the commissioner detailing its energy conservation 196.3 improvement spending and investments for the previous period. 196.4 The evaluation must briefly describe each conservation program 196.5 and must specify the energy savings or increased efficiency in 196.6 the use of energy within the service territory of the utility or 196.7 association that is the result of the spending and investments. 196.8 The evaluation must analyze the cost-effectiveness of the 196.9 utility's or association's conservation programs, using a list 196.10 of baseline energy and capacity savings assumptions developed in 196.11 consultation with the department. 196.12 The commissioner shall review each evaluation and make 196.13 recommendations, where appropriate, to the municipality or 196.14 association to increase the effectiveness of conservation 196.15 improvement activities. Up to three percent of a utility's 196.16 conservation spending obligation under this section may be used 196.17 for program pre-evaluation, testing, and monitoring and program 196.18 evaluation. 196.19 (h) The commissioner shall also review each evaluation for 196.20 whether a portion of the money spent on residential conservation 196.21 improvement programs is devoted to programs that directly 196.22 address the needs of renters and low-income persons unless an 196.23 insufficient number of appropriate programs are available. For 196.24 the purposes of this subdivision and subdivision 2, "low-income" 196.25 means an income at or below 50 percent of the state median 196.26 income. 196.27 (i) As part of its spending for conservation improvement, a 196.28 municipality or association may contribute to the energy and 196.29 conservation account. A municipality or association may propose 196.30 to the commissioner to designate that all or a portion of funds 196.31 contributed to the account be used for research and development 196.32 projects that can best be implemented on a statewide basis. Any 196.33 amount contributed must be remitted to the commissionerof196.34public serviceby February 1 of each year. 196.35 Sec. 63. Minnesota Statutes 2000, section 216B.241, 196.36 subdivision 2b, is amended to read: 197.1 Subd. 2b. [RECOVERY OF EXPENSES.] The commission shall 197.2 allow a utility to recover expenses resulting from a 197.3 conservation improvement program required by the department and 197.4 contributions to the energy and conservation account, unless the 197.5 recovery would be inconsistent with a financial incentive 197.6 proposal approved by the commission. In addition, a utility may 197.7 file annually, or the public utilities commission may require 197.8 the utility to file, and the commission may approve, rate 197.9 schedules containing provisions for the automatic adjustment of 197.10 charges for utility service in direct relation to changes in the 197.11 expenses of the utility for real and personal property taxes, 197.12 fees, and permits, the amounts of which the utility cannot 197.13 control. A public utility is eligible to file for adjustment 197.14 for real and personal property taxes, fees, and permits under 197.15 this subdivision only if, in the year previous to the year in 197.16 which it files for adjustment, it has spent or invested at least 197.17 1.75 percent of its gross revenues from provision of electric 197.18 service, excluding gross operating revenues from electric 197.19 service provided in the state to large electric customer 197.20 facilities for which the commissionerof public servicehas 197.21 issued an exemption under subdivision 1a, paragraph (b), and 0.6 197.22 percent of its gross revenues from provision of gas service, 197.23 excluding gross operating revenues from gas services provided in 197.24 the state to large electric customer facilities for which the 197.25 commissionerof public servicehas issued an exemption under 197.26 subdivision 1a, paragraph (b), for that year for energy 197.27 conservation improvements under this section. 197.28 Sec. 64. Minnesota Statutes 2000, section 216C.01, 197.29 subdivision 1, is amended to read: 197.30 Subdivision 1. [APPLICABILITY.] The definitions in this 197.31 section apply tosections 216C.02, 216C.05, 216C.07 to 216C.19,197.32216C.20 to 216C.35, and 216C.373 to 216C.381this chapter. 197.33 Sec. 65. Minnesota Statutes 2000, section 216C.01, 197.34 subdivision 2, is amended to read: 197.35 Subd. 2. [COMMISSIONER.] "Commissioner" means the 197.36 commissioner ofthe department of public servicecommerce. 198.1 Sec. 66. Minnesota Statutes 2000, section 216C.01, 198.2 subdivision 3, is amended to read: 198.3 Subd. 3. [DEPARTMENT.] "Department" means the department 198.4 ofpublic servicecommerce. 198.5 Sec. 67. Minnesota Statutes 2000, section 216C.37, 198.6 subdivision 1, is amended to read: 198.7 Subdivision 1. [DEFINITIONS.] In this section: 198.8 (a) "Commissioner" means the commissioner ofpublic service198.9 commerce. 198.10 (b) "Energy conservation investments" means all capital 198.11 expenditures that are associated with conservation measures 198.12 identified in an energy project study, and that have a ten-year 198.13 or less payback period. 198.14 (c) "Municipality" means any county, statutory or home rule 198.15 charter city, town, school district, or any combination of those 198.16 units operating under an agreement to jointly undertake projects 198.17 authorized in this section. 198.18 (d) "Energy project study" means a study of one or more 198.19 energy-related capital improvement projects analyzed in 198.20 sufficient detail to support a financing application. At a 198.21 minimum, it must include one year of energy consumption and cost 198.22 data, a description of existing conditions, a description of 198.23 proposed conditions, a detailed description of the costs of the 198.24 project, and calculations sufficient to document the proposed 198.25 energy savings. 198.26 Sec. 68. Minnesota Statutes 2000, section 216C.40, 198.27 subdivision 4, is amended to read: 198.28 Subd. 4. [CONDITION PRECEDENT.] The duties of the 198.29 department under this section are conditional on the 198.30 commissionerof public servicefinding that there will be at 198.31 least one public utility that will be subject to the assessment 198.32 created by Laws 1993, chapter 254, section 7. 198.33 Sec. 69. Minnesota Statutes 2000, section 237.02, is 198.34 amended to read: 198.35 237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 198.36 DEFINITIONS.] 199.1 The department ofpublic servicecommerce and the public 199.2 utilities commission, now existing under the laws of this state,199.3 are hereby vested with the same jurisdiction and supervisory 199.4 power over telephone and telecommunications companies doing 199.5 business in this state asit now hasthe commission's 199.6 predecessor, the railroad and warehouse commission, had over 199.7 railroad and express companies. The definitions set forth 199.8 insectionsections 216A.02shall applyand 216B.02 also apply 199.9 to this chapter. 199.10 Sec. 70. Minnesota Statutes 2000, section 237.075, 199.11 subdivision 2, is amended to read: 199.12 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 199.13 DETERMINATION DEFINED.] (a) Whenever there is filed with the 199.14 commission as provided in subdivision 1 a schedule modifying or 199.15 resulting in a change in any rate then in force, the commission 199.16 may suspend the operation of the schedule by filing with the 199.17 schedule of rates and delivering to the affected telephone 199.18 company a statement in writing of its reasons for the suspension 199.19 at any time before the rates become effective. The suspension 199.20 shall not be for a longer period than ten months beyond the 199.21 initial filing date except as provided in paragraph (b). During 199.22 the suspension the commission shall determine whether all 199.23 questions of the reasonableness of the rates requested raised by 199.24 persons deemed interested or by theadministrative division of199.25thedepartmentof public servicecan be resolved to the 199.26 satisfaction of the commission. If the commission finds that 199.27 all significant issues raised have not been resolved to its 199.28 satisfaction, or upon petition by ten percent of the affected 199.29 customers or 250 affected customers, whichever is less, it shall 199.30 refer the matter to the office of administrative hearings with 199.31 instructions for a public hearing as a contested case pursuant 199.32 to chapter 14, except as otherwise provided in this section. 199.33 The commission may order that the issues presented by the 199.34 proposed rate changes be bifurcated into two separate hearings 199.35 as follows: (1) determination of the telephone company's 199.36 revenue requirements and (2) determination of the rate design. 200.1 Upon issuance of both administrative law judge reports, the 200.2 issues shall again be joined for consideration and final 200.3 determination by the commission. All prehearing discovery 200.4 activities of state agency intervenors shall be consolidated and 200.5 conducted by the department ofpublic servicecommerce. If the 200.6 commission does not make a final determination concerning a 200.7 schedule of rates within ten months after the initial filing 200.8 date, the schedule shall be deemed to have been approved by the 200.9 commission; except if a settlement has been submitted to and 200.10 rejected by the commission, the schedule is deemed to have been 200.11 approved 12 months after the initial filing. 200.12 (b) If the commission finds that it has insufficient time 200.13 during the suspension period to make a final determination of a 200.14 case involving changes in general rates because of the need to 200.15 make final determinations of other previously filed cases 200.16 involving changes in general rates under this section or section 200.17 216B.16, the commission may extend the suspension period to the 200.18 extent necessary to allow itself 20 working days to make the 200.19 final determination after it has made final determinations in 200.20 the previously filed cases. An extension of the suspension 200.21 period under this paragraph does not alter the setting of 200.22 interim rates under subdivision 3. 200.23 (c) For the purposes of this section, "final determination" 200.24 means the initial decision of the commission and not any order 200.25 which may be entered by the commission in response to a petition 200.26 for rehearing or other further relief. The commission may 200.27 further suspend rates until it determines all those petitions. 200.28 Sec. 71. Minnesota Statutes 2000, section 237.075, 200.29 subdivision 9, is amended to read: 200.30 Subd. 9. [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 200.31 INDEPENDENT.] For the purposes of this section, "telephone 200.32 company" shall not include a cooperative telephone association 200.33 organized under the provisions of chapter 308A, an independent 200.34 telephone company, or a municipal, unless the cooperative 200.35 telephone association, independent telephone company, or 200.36 municipal makes the election provided in this subdivision. 201.1 A cooperative telephone association may elect to become 201.2 subject to rate regulation by the commission pursuant to this 201.3 section. The election shall be (a) approved by the board of 201.4 directors of the association in accordance with the procedures 201.5 for amending the articles of incorporation contained in section 201.6 308A.135, excluding the filing requirements; or (b) approved by 201.7 a majority of members or stockholders voting by mail ballot 201.8 initiated by petition of no fewer than five percent of the 201.9 members or stockholders of the association. The ballot to be 201.10 used for the election shall be approved by the board of 201.11 directors and the departmentof public service. The department 201.12 shall mail the ballots to the association's members who shall 201.13 return the ballots to the department. The department will keep 201.14 the ballots sealed until a date agreed upon by the department 201.15 and the board of directors. On this date, representatives of 201.16 the department and the association shall count the ballots. If 201.17 a majority of the association's members who vote elect to become 201.18 subject to rate regulation by the commission, the election shall 201.19 be effective 30 days after the date the ballots are counted. 201.20 For purposes of this section, the term "member or stockholder" 201.21 shall mean either the member or stockholder of record or the 201.22 spouse of the member or stockholder unless the association has 201.23 been notified otherwise in writing. 201.24 A municipal may elect to become subject to rate regulation 201.25 by the commission pursuant to this section. The election shall 201.26 be (a) approved by resolution of the governing body of the 201.27 municipality; or (b) approved by a majority of the customers of 201.28 the municipal voting by mail ballot initiated by petition of no 201.29 fewer than 20 percent of the customers of the municipal. The 201.30 ballot to be used for the election shall be approved by the 201.31 governing body of the municipality and the departmentof public201.32service. The department shall mail the ballots to the 201.33 municipal's customers who shall return the ballots to the 201.34 department. The department will keep the ballots sealed until a 201.35 date agreed upon by the department and the governing body of the 201.36 municipality. On this date, representatives of the department 202.1 and the municipal shall count the ballots. If a majority of the 202.2 customers of the municipal who vote elect to become subject to 202.3 rate regulation by the commission, the election shall be 202.4 effective 30 days after the date the ballots are counted. For 202.5 purposes of this section, the term "customer" shall mean either 202.6 the person in whose name the telephone service is registered or 202.7 the spouse of the person unless the municipal utility has been 202.8 notified otherwise in writing. 202.9 An independent telephone company may elect to become 202.10 subject to rate regulation by the commission pursuant to this 202.11 section. The election shall be (a) approved by the board of 202.12 directors of the company in accordance with the procedures for 202.13 amending the articles of incorporation contained in sections 202.14 302A.133 to 302A.139, excluding the filing requirements; or (b) 202.15 approved by a majority of subscribers voting by mail ballot 202.16 initiated by petition of no fewer than five percent of the 202.17 subscribers of the company. The ballot to be used for the 202.18 election shall be approved by the board of directors and the 202.19 departmentof public service. The department shall mail the 202.20 ballots to the company's subscribers who shall return the 202.21 ballots to the department. The department will keep the ballots 202.22 sealed until a date agreed upon by the department and the board 202.23 of directors. On this date, representatives of the department 202.24 and the company shall count the ballots. If a majority of the 202.25 company's subscribers who vote elect to become subject to rate 202.26 regulation by the commission, the election shall be effective 30 202.27 days after the date the ballots are counted. For purposes of 202.28 this section the term "subscriber" shall mean either the person 202.29 in whose name the telephone service is registered or the spouse 202.30 of the person unless the independent telephone company has been 202.31 notified otherwise in writing. 202.32 Sec. 72. Minnesota Statutes 2000, section 237.082, is 202.33 amended to read: 202.34 237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 202.35 SPEED AND SERVICE.] 202.36 When setting rates, adopting rules, or issuing orders 203.1 related to telecommunication matters that affect deployment of 203.2 the infrastructure, the commission may apply the goals of: 203.3 (1) achieving economically efficient investment in: 203.4 (i) higher speed telecommunication services; and 203.5 (ii) greater capacity for voice, video, and data 203.6 transmission; and 203.7 (2) just and reasonable rates. 203.8 The departmentof public servicemay apply the same goals 203.9 in its regulation of and recommendations regarding 203.10 telecommunication services. 203.11 Sec. 73. Minnesota Statutes 2000, section 237.21, is 203.12 amended to read: 203.13 237.21 [VALUATION OF TELEPHONE PROPERTY.] 203.14 In determining the value of any telephone property for rate 203.15 making purposes, no valuation shall be allowed upon the value of 203.16 any franchise granted by the state or any municipality where no 203.17 payment was or is being made to the state or municipality on 203.18 account thereof. The requirement as to reasonableness of rates 203.19 shall apply to each exchange unit as well as to telephone plants 203.20 as a whole. Provided, that in the case of a company operating a 203.21 telephone system consisting of more than one exchange in the 203.22 state, reasonableness of rates, as measured by earnings, shall 203.23 be determined by a reasonable return from the total operations 203.24 of the system within the state rather than by the return from 203.25 individual exchanges or services. No telephone rates or charges 203.26 shall be allowed or approved by the commission under any 203.27 circumstances, which are inadequate and which are intended to or 203.28 naturally tend to destroy competition or produce a monopoly in 203.29 telephone service in the locality affected. 203.30Laws 1953, chapter 25, shall have no effect on proceedings203.31pending before the courts or the department of public service at203.32the time of its enactment.203.33 Sec. 74. Minnesota Statutes 2000, section 237.30, is 203.34 amended to read: 203.35 237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 203.36 The sum of $25,000 is hereby appropriated out of any moneys 204.1 in the state treasury not otherwise appropriated, to establish 204.2 and provide a revolving fund to be known as the Minnesota 204.3 Telephone Investigation Fund for the use of the department of 204.4public servicecommerce and of the attorney general in 204.5 investigations, valuations, and revaluations under section 204.6 237.295. All sums paid by the telephone companies to reimburse 204.7 the departmentof public servicefor its expenses pursuant to 204.8 section 237.295 shall be credited to the revolving fund and 204.9 shall be deposited in a separate bank account and not commingled 204.10 with any other state funds or moneys, but any balance in excess 204.11 of $25,000 in the revolving fund at the end of each fiscal year 204.12 shall be paid into the state treasury and credited to the 204.13 general fund. The sum of $25,000 herein appropriated and all 204.14 subsequent credits to said revolving fund shall be paid upon the 204.15 warrant of the commissioner of finance upon application of the 204.16 department or of the attorney general to an aggregate amount of 204.17 not more than one-half of such sums to each of them, which 204.18 proportion shall be constantly maintained in all credits and 204.19 withdrawals from the revolving fund. 204.20 Sec. 75. Minnesota Statutes 2000, section 237.462, 204.21 subdivision 6, is amended to read: 204.22 Subd. 6. [EXPEDITED PROCEEDING.] (a) The commission may 204.23 order an expedited proceeding under section 237.61 and this 204.24 subdivision, in lieu of a contested case under chapter 14, to 204.25 develop an evidentiary record in any proceeding that involves 204.26 contested issues of material fact either upon request of a party 204.27 or upon the commission's own motion if the complaint alleges a 204.28 violation described in subdivision 1, clauses (1) to (4). The 204.29 commission may order an expedited proceeding under this 204.30 subdivision if the commission finds an expedited proceeding is 204.31 in the public interest, regardless of whether all parties agree 204.32 to the expedited proceeding. In determining whether to grant an 204.33 expedited proceeding, the commission may consider any evidence 204.34 of impairment of the provision of telecommunications service to 204.35 subscribers in the state or impairment of the provision of any 204.36 service or network element subject to the jurisdiction of the 205.1 commission. 205.2 (b) Any request for an expedited proceeding under this 205.3 subdivision must be noted in the title of the first filing by a 205.4 party. The filing shall also state the specific circumstances 205.5 that the party believes warrant an expedited proceeding under 205.6 this subdivision. 205.7 (c) A complaint requesting an expedited proceeding, unless 205.8 filed by the departmentof public serviceor the attorney 205.9 general, must set forth the actions and the dates of the actions 205.10 taken by the party filing the complaint to attempt to resolve 205.11 the alleged violations with the party against whom the complaint 205.12 is filed, including any requests that the party against whom the 205.13 complaint is filed correct the conduct giving rise to the 205.14 violations alleged in the complaint. If no such actions were 205.15 taken by the complainant, the complaint shall set forth the 205.16 reasons why no such actions were taken. The commission may 205.17 order an expedited proceeding even if the filing complaint fails 205.18 to meet this requirement if the commission determines that it 205.19 would be in the public interest to go forward with the expedited 205.20 proceeding without information in the complaint on attempts to 205.21 resolve the dispute. 205.22 (d) The complaining party shall serve the complaint along 205.23 with any written discovery requests by hand delivery and 205.24 facsimile on the party against whom the complaint is filed, the 205.25 departmentof public service, and the office of the attorney 205.26 general on the same day the complaint is filed with the 205.27 commission. 205.28 (e) The party responding to a complaint that includes a 205.29 request for an expedited proceeding under this subdivision shall 205.30 file an answer within 15 days after receiving the complaint. 205.31 The responding party shall state in the answer the party's 205.32 position on the request for an expedited proceeding. The 205.33 responding party shall serve with the answer any objections to 205.34 any written discovery requests as well as any written discovery 205.35 requests the responding party wishes to serve on the complaining 205.36 party. Except for stating any objections, the responding party 206.1 is not required to answer any written discovery requests under 206.2 this subdivision until a time established at a prehearing 206.3 conference. The responding party shall serve a copy of the 206.4 answer and any discovery requests and objections on the 206.5 complaining party, the departmentof public service, and office 206.6 of the attorney general by hand delivery and facsimile on the 206.7 same day as the answer is filed with the commission. 206.8 (f) Within 15 days of receiving the answer to a complaint 206.9 in a proceeding in which a party has requested an expedited 206.10 hearing, the commission shall determine whether the filing 206.11 warrants an expedited proceeding. If the commission decides to 206.12 grant a request by a party or if the commission orders an 206.13 expedited proceeding on its own motion, the commission shall 206.14 conduct within seven days of the decision a prehearing 206.15 conference to schedule the evidentiary hearing. During the 206.16 prehearing conference, the commission shall establish a 206.17 discovery schedule that requires all discovery to be completed 206.18 no later than three days before the start of the hearing. An 206.19 evidentiary hearing under this subdivision must commence no 206.20 later than 45 days after the commission's decision to order an 206.21 expedited proceeding. A quorum of the commission shall preside 206.22 at any evidentiary hearing under this subdivision unless all the 206.23 parties to the proceeding agree otherwise. 206.24 (g) All pleadings submitted under this subdivision must be 206.25 verified and all oral statements of fact made in a hearing or 206.26 deposition under this subdivision must be made under oath or 206.27 affirmation. 206.28 (h) The commission shall issue a written decision and final 206.29 order on the complaint within 15 days after the close of the 206.30 evidentiary hearing under this subdivision. On the day of 206.31 issuance, the commission shall notify the parties by facsimile 206.32 that a final order has been issued and shall provide each party 206.33 with a copy of the final order. 206.34 (i) The commission may extend any time periods under this 206.35 subdivision if all parties to the proceeding agree to the 206.36 extension or if the commission finds the extension is necessary 207.1 to ensure a just resolution of the complaint. 207.2 (j) Except as otherwise provided in this subdivision, an 207.3 expedited proceeding under this subdivision shall be governed by 207.4 the following procedural rules: 207.5 (1) the parties shall have the discovery rights provided in 207.6 Minnesota Rules, parts 1400.6700 to 1400.7000; 207.7 (2) the parties shall have the right to cross-examine 207.8 witnesses as provided in section 14.60, subdivision 3; 207.9 (3) the admissibility of evidence and development of record 207.10 for decision shall be governed by section 14.60 and Minnesota 207.11 Rules, part 1400.7300; and 207.12 (4) the commission may apply other procedures or standards 207.13 included in the rules of the office of administrative hearings, 207.14 as necessary to ensure the fair and expeditious resolution of 207.15 disputes under this section. 207.16 Sec. 76. Minnesota Statutes 2000, section 237.51, 207.17 subdivision 1, is amended to read: 207.18 Subdivision 1. [CREATION.] Thedepartment of public207.19servicecommissioner of commerce shall administer through 207.20 interagency agreement with thedepartmentcommissioner of human 207.21 services a program to distribute communication devices to 207.22 eligible communication-impaired persons and contract with a 207.23 local consumer group that serves communication-impaired persons 207.24 to create and maintain a telecommunication relay service. For 207.25 purposes of sections 237.51 to 237.56, the department ofpublic207.26servicecommerce and any organization with which it contracts 207.27 pursuant to this section or section 237.54, subdivision 2, are 207.28 not telephone companies or telecommunications carriers as 207.29 defined in section 237.01. 207.30 Sec. 77. Minnesota Statutes 2000, section 237.51, 207.31 subdivision 5, is amended to read: 207.32 Subd. 5. [DEPARTMENT OF PUBLIC SERVICECOMMISSIONER OF 207.33 COMMERCE DUTIES.] In addition to any duties specified elsewhere 207.34 in sections 237.51 to 237.56, thedepartment of public service207.35 commissioner of commerce shall: 207.36 (1) prepare the reports required by section 237.55; 208.1 (2) administer the fund created in section 237.52; and 208.2 (3) adopt rules under chapter 14 to implement the 208.3 provisions of sections 237.50 to 237.56. 208.4 Sec. 78. Minnesota Statutes 2000, section 237.51, 208.5 subdivision 5a, is amended to read: 208.6 Subd. 5a. [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 208.7 addition to any duties specified elsewhere in sections 237.51 to 208.8 237.56, thedepartmentcommissioner of human services shall: 208.9 (1) define economic hardship, special needs, and household 208.10 criteria so as to determine the priority of eligible applicants 208.11 for initial distribution of devices and to determine 208.12 circumstances necessitating provision of more than one 208.13 communication device per household; 208.14 (2) establish a method to verify eligibility requirements; 208.15 (3) establish specifications for communication devices to 208.16 be purchased under section 237.53, subdivision 3; and 208.17 (4) inform the public and specifically the community of 208.18 communication-impaired persons of the program. 208.19 (b) Thedepartmentcommissioner may establish an advisory 208.20 board to advise the department in carrying out the duties 208.21 specified in this section and to advise thedepartment of public208.22servicecommissioner of commerce in carrying outitsduties 208.23 under section 237.54. If so established, the advisory board 208.24 must include, at a minimum, the following communication-impaired 208.25 persons: 208.26 (1) at least one member who is deaf; 208.27 (2) at least one member who is speech impaired; 208.28 (3) at least one member who is mobility impaired; and 208.29 (4) at least one member who is hard-of-hearing. 208.30 The membership terms, compensation, and removal of members 208.31 and the filling of membership vacancies are governed by section 208.32 15.059. Advisory board meetings shall be held at the discretion 208.33 of the commissioner. 208.34 Sec. 79. Minnesota Statutes 2000, section 237.52, 208.35 subdivision 2, is amended to read: 208.36 Subd. 2. [ASSESSMENT.] Thedepartment of public209.1servicecommissioner of commerce shall annually recommend to the 209.2 commission an adequate and appropriate surcharge and budget to 209.3 implement sections 237.50 to 237.56. The public utilities 209.4 commission shall review the budget for reasonableness and may 209.5 modify the budget to the extent it is unreasonable. The 209.6 commission shall annually determine the funding mechanism to be 209.7 used within 60 days of receipt of the recommendation of the 209.8 department and shall order the imposition of surcharges 209.9 effective on the earliest practicable date. The commission 209.10 shall establish a monthly charge no greater than 20 cents for 209.11 each customer access line, including trunk equivalents as 209.12 designated by the commission pursuant to section 403.11, 209.13 subdivision 1. 209.14 Sec. 80. Minnesota Statutes 2000, section 237.52, 209.15 subdivision 4, is amended to read: 209.16 Subd. 4. [APPROPRIATION.] Money in the fund is 209.17 appropriated to thedepartment of public servicecommissioner of 209.18 commerce to implement sections 237.51 to 237.56. 209.19 Sec. 81. Minnesota Statutes 2000, section 237.52, 209.20 subdivision 5, is amended to read: 209.21 Subd. 5. [EXPENDITURES.] Money in the fund may only be 209.22 used for: 209.23 (1) expenses of the department ofpublic servicecommerce, 209.24 including personnel cost, public relations, advisory board 209.25 members' expenses, preparation of reports, and other reasonable 209.26 expenses not to exceed ten percent of total program 209.27 expenditures; 209.28 (2) reimbursing the commissioner of human services for 209.29 purchases made or services provided pursuant to section 237.53; 209.30 (3) reimbursing telephone companies for purchases made or 209.31 services provided under section 237.53, subdivision 5; and 209.32 (4) contracting for establishment and operation of the 209.33 telecommunication relay service required by section 237.54. 209.34 All costs directly associated with the establishment of the 209.35 program, the purchase and distribution of communication devices, 209.36 and the establishment and operation of the telecommunication 210.1 relay service are either reimbursable or directly payable from 210.2 the fund after authorization by thedepartment of public service210.3 commissioner of commerce. Thedepartment of public210.4servicecommissioner of commerce shall contract with the message 210.5 relay service operator to indemnify the local exchange carriers 210.6 of the relay service for any fines imposed by the Federal 210.7 Communications Commission related to the failure of the relay 210.8 service to comply with federal service standards. 210.9 Notwithstanding section 16A.41, thedepartment of public service210.10 commissioner may advance money to the contractor of the 210.11 telecommunication relay service if the contractor establishes to 210.12 thedepartment'scommissioner's satisfaction that the advance 210.13 payment is necessary for the operation of the service. The 210.14 advance payment may be used only for working capital reserve for 210.15 the operation of the service. The advance payment must be 210.16 offset or repaid by the end of the contract fiscal year together 210.17 with interest accrued from the date of payment. 210.18 Sec. 82. Minnesota Statutes 2000, section 237.54, 210.19 subdivision 2, is amended to read: 210.20 Subd. 2. [OPERATION.] Thedepartment of public210.21servicecommissioner of commerce shall contract with a local 210.22 consumer organization that serves communication-impaired persons 210.23 for operation and maintenance of the telecommunication relay 210.24 system. Thedepartmentcommissioner may contract with other 210.25 than a local consumer organization if no local consumer 210.26 organization is available to enter into or perform a reasonable 210.27 contract or the only available consumer organization fails to 210.28 comply with terms of a contract. The operator of the system 210.29 shall keep all messages confidential, shall train personnel in 210.30 the unique needs of communication-impaired people, and shall 210.31 inform communication-impaired persons and the public of the 210.32 availability and use of the system. The operator shall not 210.33 relay a message unless it originates or terminates through a 210.34 communication device for the deaf or a Brailling device for use 210.35 with a telephone. 210.36 Sec. 83. Minnesota Statutes 2000, section 237.55, is 211.1 amended to read: 211.2 237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 211.3 Thedepartment of public servicecommissioner of commerce 211.4 must prepare a report for presentation to the commission by 211.5 January 31 of each year. Each report must review the 211.6 accessibility of the telephone system to communication-impaired 211.7 persons, review the ability of non-communication-impaired 211.8 persons to communicate with communication-impaired persons via 211.9 the telephone system, describe services provided, account for 211.10 money received and disbursed annually for each aspect of the 211.11 program to date, and include predicted future operation. 211.12 Sec. 84. Minnesota Statutes 2000, section 237.59, 211.13 subdivision 2, is amended to read: 211.14 Subd. 2. [PETITION.] (a) A telephone company, or the 211.15 commission on its own motion, may petition to have a service of 211.16 that telephone company classified as subject to effective 211.17 competition or emerging competition. The petition must be 211.18 served on the commission, the departmentof public service, the 211.19 office of the attorney general, and any other person designated 211.20 by the commission. The petition must contain at least: 211.21 (1) a list of the known alternative providers of the 211.22 service available to the company's customers; and 211.23 (2) a description of affiliate relationships with any other 211.24 provider of the service in the company's market. 211.25 (b) At the time the company first offers a service, it 211.26 shall also file a petition with the commission for a 211.27 determination as to how the service should be classified. In 211.28 the event that no interested party or the commission objects to 211.29 the company's proposed classification within 20 days of the 211.30 filing of the petition, the company's proposed classification of 211.31 the service is deemed approved. If an objection is filed, the 211.32 commission shall determine the appropriate classification after 211.33 a hearing conducted pursuant to section 237.61. In either 211.34 event, the company may offer the new service to its customers 211.35 ten days after the company files the price list and incremental 211.36 cost study as provided in section 237.60, subdivision 2, 212.1 paragraph (f). 212.2 (c) A new service may be classified as subject to effective 212.3 competition or emerging competition pursuant to the criteria set 212.4 forth in subdivision 5. A new service must be regulated under 212.5 the emerging competition provisions if it is not integrally 212.6 related to the provision of adequate local service or access to 212.7 the telephone network or to the privacy, health, or safety of 212.8 the company's customers, whether or not it meets the criteria 212.9 set forth in subdivision 5. 212.10 Sec. 85. Minnesota Statutes 2000, section 237.768, is 212.11 amended to read: 212.12 237.768 [PERIODIC FINANCIAL REPORT.] 212.13 In addition to the reports required under section 237.766, 212.14 an alternative regulation plan may require a telephone company 212.15 to file with the department an annual report of financial 212.16 matters for the previous calendar year on or before May 1 of 212.17 each year on report forms furnished by the departmentof public212.18servicein the same manner as is required of other telephone 212.19 companies on August 1, 1995. In addition, any company subject 212.20 to a plan shall file with the commission and department a copy 212.21 of any filings it has made to the Federal Communications 212.22 Commission regarding the provisions of video programming 212.23 provided through a video dial tone facility in Minnesota. An 212.24 alternative regulation plan may require a telephone company to 212.25 maintain its accounts in accordance with the system of accounts 212.26 prescribed for the company by the commission under section 212.27 237.10. 212.28 Sec. 86. Minnesota Statutes 2000, section 239.01, is 212.29 amended to read: 212.30 239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 212.31 The weights and measures division, referred to in this 212.32 chapter as the division, is created under the jurisdiction of 212.33 the department ofpublic servicecommerce. The division has 212.34 supervision and control over all weights, weighing devices, and 212.35 measures in the state. 212.36 Sec. 87. Minnesota Statutes 2000, section 325E.11, is 213.1 amended to read: 213.2 325E.11 [COLLECTION FACILITIES; NOTICE.] 213.3 (a) Any person selling at retail or offering motor oil or 213.4 motor oil filters for retail sale in this state shall: 213.5 (1) post a notice indicating the nearest location where 213.6 used motor oil and used motor oil filters may be returned at no 213.7 cost for recycling or reuse, post a toll-free telephone number 213.8 that may be called by the public to determine a convenient 213.9 location, or post a listing of locations where used motor oil 213.10 and used motor oil filters may be returned at no cost for 213.11 recycling or reuse; or 213.12 (2) if the person is subject to section 325E.112, 213.13 subdivision 1, paragraph (b), post a notice informing customers 213.14 purchasing motor oil or motor oil filters of the location of the 213.15 used motor oil and used motor oil filter collection site 213.16 established by the retailer in accordance with section 325E.112, 213.17 subdivision 1, paragraph (b), where used motor oil and used 213.18 motor oil filters may be returned at no cost. 213.19 (b) A notice under paragraph (a) shall be posted on or 213.20 adjacent to the motor oil and motor oil filter displays, be at 213.21 least 8-1/2 inches by 11 inches in size, contain the universal 213.22 recycling symbol with the following language: 213.23 (1) "It is illegal to put used oil and used motor oil 213.24 filters in the garbage."; 213.25 (2) "Recycle your used oil and used motor oil filters."; 213.26 and 213.27 (3)(i) "There is a free collection site here for your used 213.28 oil and used motor oil filters."; 213.29 (ii) "There is a free collection site for used oil and used 213.30 motor oil filters located at (name of business and street 213.31 address)."; 213.32 (iii) "For the location of a free collection site for used 213.33 oil and used motor oil filters call (toll-free phone number)."; 213.34 or 213.35 (iv) "Here is a list of free collection sites for used oil 213.36 and used motor oil filters." 214.1 (c) The division of weights and measuresunderin the 214.2 department ofpublic servicecommerce shall enforce compliance 214.3 with this section as provided in section 239.54. The pollution 214.4 control agency shall enforce compliance with this section under 214.5 sections 115.071 and 116.072 in coordination with the division 214.6 of weights and measures. 214.7 Sec. 88. Minnesota Statutes 2000, section 325E.115, 214.8 subdivision 2, is amended to read: 214.9 Subd. 2. [COMPLIANCE; MANAGEMENT.] The division of weights 214.10 and measuresunderin the department ofpublic servicecommerce 214.11 shall enforce compliance of subdivision 1 as provided in section 214.12 239.54. The commissioner of the pollution control agency shall 214.13 inform persons governed by subdivision 1 of requirements for 214.14 managing lead acid batteries. 214.15 Sec. 89. Minnesota Statutes 2000, section 326.243, is 214.16 amended to read: 214.17 326.243 [SAFETY STANDARDS.] 214.18 All electrical wiring, apparatus and equipment for electric 214.19 light, heat and power, alarm and communication systems shall 214.20 comply with the rules of the department ofpublic service, the214.21commissioner ofcommerce,or the department of labor and 214.22 industry, as applicable, and be installed in conformity with 214.23 accepted standards of construction for safety to life and 214.24 property. For the purposes of this chapter, the rules and 214.25 safety standards stated at the time the work is done in the then 214.26 most recently published edition of the National Electrical Code 214.27 as adopted by the National Fire Protection Association, Inc. and 214.28 approved by the American National Standards Institute, and the 214.29 National Electrical Safety Code as published by the Institute of 214.30 Electrical and Electronics Engineers, Inc. and approved by the 214.31 American National Standards Institute, shall be prima facie 214.32 evidence of accepted standards of construction for safety to 214.33 life and property; provided further, that in the event a 214.34 Minnesota Building Code is formulated pursuant to section 214.35 16B.61, containing approved methods of electrical construction 214.36 for safety to life and property, compliance with said methods of 215.1 electrical construction of said Minnesota Building Code shall 215.2 also constitute compliance with this section, and provided 215.3 further, that nothing herein contained shall prohibit any 215.4 political subdivision from making and enforcing more stringent 215.5 requirements than set forth herein and such requirements shall 215.6 be complied with by all licensed electricians working within the 215.7 jurisdiction of such political subdivisions. 215.8 Sec. 90. Minnesota Statutes 2000, section 484.50, is 215.9 amended to read: 215.10 484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 215.11 A party wishing to have an appeal from an order of the 215.12department of public servicepublic utilities commission, an 215.13 election contest, a lien foreclosure, or a civil cause or 215.14 proceeding of a kind commenced or appealed by a party in the 215.15 court, tried in the city of Virginia shall, in the summons, 215.16 notice of appeal in a matter, or other jurisdictional instrument 215.17 issued, in addition to the usual provisions, print, stamp, or 215.18 write thereon the words, "to be tried at the city of Virginia," 215.19 and a party wishing a matter commenced or appealed by a party in 215.20 the court tried at the city of Hibbing shall, in the summons, 215.21 notice of appeal in a matter, or other jurisdictional instrument 215.22 issued, in addition to the usual provisions, print, stamp, or 215.23 write thereon the words, "to be tried at the city of Hibbing," 215.24 and in a case where a summons, notice of appeal in a matter, or 215.25 other jurisdictional instrument contains a specification, the 215.26 case shall be tried at the city of Virginia, or the city of 215.27 Hibbing, as the case may be, unless the defendant shall have the 215.28 place of trial fixed in the manner specified in this section. 215.29 If the place of trial designated is not the proper place of 215.30 trial, as specified in sections 484.44 to 484.52, the cause 215.31 shall nevertheless be tried in a place, unless the defendant, in 215.32 an answer in addition to the other allegations of defense, shall 215.33 plead the location of the defendant's residence, and demand that 215.34 the action be tried at the place of holding the court nearest 215.35 the defendant's residence, as provided in this section; and in a 215.36 case where the answer of the defendant pleads the place of 216.1 residence and makes a demand of place of trial, the plaintiff, 216.2 in reply, may admit or deny the allegations of residence, and if 216.3 the allegations of residence are not expressly denied, the case 216.4 shall be tried at the place demanded by the defendant, and if 216.5 the allegations of residence are denied, the place of trial 216.6 shall be determined by the court on motion. 216.7 If there are several defendants, residing at different 216.8 places in a county, the trial shall be at the place in which the 216.9 majority of the defendants unite in demanding, or if the numbers 216.10 are equal, at the place nearest the residence of the majority of 216.11 the defendants. 216.12 The venue of an action may be changed from one of these 216.13 places to another, by order of the court, in the following cases: 216.14 (1) Upon written consent of the parties; 216.15 (2) When it appears, on motion, that a party has been made 216.16 a defendant for the purpose of preventing a change of venue as 216.17 provided in this section; 216.18 (3) When an impartial trial cannot be held in the place 216.19 where the action is pending; or 216.20 (4) When the convenience of witnesses and the ends of 216.21 justice would be promoted by the change. 216.22 Application for a change under clause (2), (3), or (4), 216.23 shall be made by motion which shall be returnable and heard at 216.24 the place of commencement of the action. 216.25 Sec. 91. [INSTRUCTION TO REVISOR.] 216.26 The revisor of statutes shall change the words "public 216.27 service" to the word "commerce" in the following sections of 216.28 Minnesota Statutes: 13.68; 13.681; 17A.04, subdivisions 6, 7, 216.29 and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 216.30 subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 216.31 216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 216.32 subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 216.33 7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 216.34 308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 216.35 469.164, subdivision 2. 216.36 Sec. 92. [REPEALER.] 217.1 Minnesota Statutes 2000, sections 216A.06; and 237.69, 217.2 subdivision 3, are repealed. 217.3 ARTICLE 20 217.4 TRANSPORTATION AND OTHER AGENCIES 217.5 Section 1. [TRANSPORTATION AND OTHER AGENCIES APPROPRIATIONS.] 217.6 The sums shown in the columns marked "APPROPRIATIONS" are 217.7 appropriated from the general fund, or another named fund, to 217.8 the agencies and for the purposes specified in this article, to 217.9 be available for the fiscal years indicated for each purpose. 217.10 The figures "2001," "2002," and "2003," where used in this 217.11 article, mean that the appropriations listed under them are 217.12 available for the year ending June 30, 2001, June 30, 2002, or 217.13 June 30, 2003, respectively. If the figures are not used, the 217.14 appropriations are available for the year ending June 30, 2002, 217.15 or June 30, 2003, respectively. The term "first year" means the 217.16 year ending June 30, 2002, and the term "second year" means the 217.17 year ending June 30, 2003. Appropriations for the year ending 217.18 June 30, 2001, are in addition to appropriations made in 217.19 previous years. 217.20 SUMMARY BY FUND 217.21 BIENNIAL 217.22 2002 2003 TOTAL 217.23 General $ 84,572,000 $ 84,813,000 $169,385,000 217.24 Airports 19,407,000 19,498,000 38,905,000 217.25 C.S.A.H. 405,330,000 418,113,000 823,443,000 217.26 Highway User 15,853,000 16,150,000 32,878,000 217.27 For 2001 - $875,000 217.28 M.S.A.S. 106,469,000 109,827,000 216,296,000 217.29 Special Revenue 979,000 994,000 1,973,000 217.30 Trunk 217.31 Highway 1,065,765,000 1,081,984,000 2,148,194,000 217.33 For 2001 - $445,000 217.34 TOTAL $1,698,375,000 $1,731,379,000 $3,429,754,000 217.35 For 2001 - $1,320,000 217.36 APPROPRIATIONS 217.37 Available for the Year 217.38 Ending June 30 217.39 2002 2003 218.1 Sec. 2. TRANSPORTATION 218.2 Subdivision 1. Total 218.3 Appropriation $1,526,974,000 $1,557,288,000 218.4 The appropriations in this section are 218.5 from the trunk highway fund, except 218.6 when another fund is named. 218.7 Summary by Fund 218.8 General 16,007,000 16,033,000 218.9 Airports 19,357,000 19,448,000 218.10 C.S.A.H. 405,330,000 418,113,000 218.11 M.S.A.S. 106,469,000 109,827,000 218.12 Trunk Highway 979,811,000 993,867,000 218.13 The amounts that may be spent from this 218.14 appropriation for each program are 218.15 specified in the following subdivisions. 218.16 Subd. 2. Aeronautics 19,348,000 19,439,000 218.17 Summary by Fund 218.18 Airports 19,287,000 19,378,000 218.19 General 50,000 50,000 218.20 Trunk Highway 11,000 11,000 218.21 Except as otherwise provided, the 218.22 appropriations in this subdivision are 218.23 from the state airports fund. 218.24 The amounts that may be spent from this 218.25 appropriation for each activity are as 218.26 follows: 218.27 (a) Airport Development and Assistance 218.28 13,798,000 13,798,000 218.29 These appropriations must be spent 218.30 according to Minnesota Statutes, 218.31 section 360.305, subdivision 4. 218.32 (b) Aviation Support 218.33 5,415,000 5,503,000 218.34 $65,000 the first year and $65,000 the 218.35 second year are for the civil air 218.36 patrol. 218.37 (c) Air Transportation Services 218.38 135,000 138,000 218.39 Summary by Fund 218.40 Airports 74,000 77,000 218.41 General 50,000 50,000 218.42 Trunk Highway 11,000 11,000 219.1 Subd. 3. Transit 15,839,000 15,860,000 219.2 For 2001 - $10,000,000 219.3 Summary by Fund 219.4 General 15,499,000 15,512,000 219.5 Trunk Highway 340,000 348,000 219.6 The amounts that may be spent from this 219.7 appropriation for each activity are as 219.8 follows: 219.9 (a) Greater Minnesota Transit 219.10 Assistance 219.11 15,001,000 15,001,000 219.12 This appropriation is from the general 219.13 fund. Any unencumbered balance the 219.14 first year does not cancel but is 219.15 available for the second year. 219.16 (b) Transit Administration 219.17 838,000 859,000 219.18 Summary by Fund 219.19 General 498,000 511,000 219.20 Trunk Highway 340,000 348,000 219.21 Subd. 4. Railroads and Waterways 1,608,000 1,654,000 219.22 Summary by Fund 219.23 General 273,000 280,000 219.24 Trunk Highway 1,335,000 1,374,000 219.25 Subd. 5. Motor Carrier Regulation 3,524,000 3,623,000 219.26 Summary by Fund 219.27 General 122,000 126,000 219.28 Trunk Highway 3,402,000 3,497,000 219.29 Subd. 6. Local Roads 511,799,000 527,940,000 219.30 Summary by Fund 219.31 C.S.A.H. 405,330,000 418,113,000 219.32 M.S.A.S. 106,469,000 109,827,000 219.33 The amounts that may be spent from this 219.34 appropriation for each activity are as 219.35 follows: 219.36 (a) County State Aids 219.37 405,330,000 418,113,000 219.38 This appropriation is from the county 219.39 state-aid highway fund and is available 219.40 until spent. 219.41 (b) Municipal State Aids 220.1 106,469,000 109,827,000 220.2 This appropriation is from the 220.3 municipal state-aid street fund and is 220.4 available until spent. 220.5 If an appropriation for either county 220.6 state aids or municipal state aids does 220.7 not exhaust the balance in the fund 220.8 from which it is made in the year for 220.9 which it is made, the commissioner of 220.10 finance, upon request of the 220.11 commissioner of transportation, shall 220.12 notify the chair of the transportation 220.13 finance committee of the house of 220.14 representatives and the chair of the 220.15 transportation budget division of the 220.16 senate of the amount of the remainder 220.17 and shall then add that amount to the 220.18 appropriation. The amount added is 220.19 appropriated for the purposes of county 220.20 state aids or municipal state aids, as 220.21 appropriate. 220.22 Subd. 7. State Roads 929,175,000 942,131,000 220.23 Summary by Fund 220.24 General 9,000 9,000 220.25 Trunk Highway 929,166,000 942,122,000 220.26 The amounts that may be spent from this 220.27 appropriation for each activity are as 220.28 follows: 220.29 (a) State Road Construction 220.30 521,707,000 521,707,000 220.31 It is estimated that these 220.32 appropriations will be funded as 220.33 follows: 220.34 Federal Highway Aid 220.35 275,000,000 300,000,000 220.36 Highway User Taxes 220.37 246,707,000 221,707,000 220.38 The commissioner of transportation 220.39 shall notify the chair of the 220.40 transportation budget division of the 220.41 senate and chair of the transportation 220.42 finance committee of the house of 220.43 representatives quarterly of any events 220.44 that should cause these estimates to 220.45 change. 220.46 This appropriation is for the actual 220.47 construction, reconstruction, and 220.48 improvement of trunk highways. This 220.49 includes the cost of actual payment to 220.50 landowners for lands acquired for 220.51 highway rights-of-way, payment to 220.52 lessees, interest subsidies, and 220.53 relocation expenses. 220.54 The commissioner may receive money 221.1 covering other shares of the cost of 221.2 partnership projects. These receipts 221.3 are appropriated to the commissioner 221.4 for these projects. 221.5 (b) Highway Debt Service 221.6 19,235,000 24,228,000 221.7 If this appropriation is insufficient 221.8 to make all transfers required in the 221.9 year for which it is made, the 221.10 commissioner of finance shall notify 221.11 the committee on state government 221.12 finance of the senate and the committee 221.13 on ways and means of the house of 221.14 representatives of the amount of the 221.15 deficiency and shall then transfer that 221.16 amount under the statutory open 221.17 appropriation. 221.18 Any excess appropriation must be 221.19 canceled to the trunk highway fund. 221.20 (c) Research and Investment Management 221.21 12,087,000 12,311,000 221.22 $600,000 the first year and $600,000 221.23 the second year are available for 221.24 grants for transportation studies 221.25 outside the metropolitan area to 221.26 identify critical concerns, problems, 221.27 and issues. These grants are available 221.28 to (1) regional development 221.29 commissions, and (2) in regions where 221.30 no regional development commission is 221.31 functioning, joint powers boards 221.32 established under agreement of two or 221.33 more political subdivisions in the 221.34 region to exercise the planning 221.35 functions of a regional development 221.36 commission, and (3) in regions where no 221.37 regional development commission or 221.38 joint powers board is functioning, the 221.39 department's district office for that 221.40 region. 221.41 $266,000 the first year and $266,000 221.42 the second year are available for 221.43 grants to metropolitan planning 221.44 organizations outside the seven-county 221.45 metropolitan area, including the 221.46 Mankato area. 221.47 (d) Central Engineering Services 221.48 68,954,000 70,261,000 221.49 (e) Design and Construction Engineering 221.50 84,991,000 87,202,000 221.51 (f) State Road Operations 221.52 216,559,000 220,651,000 221.53 (g) Electronic Communications 221.54 5,642,000 5,771,000 222.1 Summary by Fund 222.2 General 9,000 9,000 222.3 Trunk Highway 5,633,000 5,762,000 222.4 Subd. 8. General Support 45,681,000 46,641,000 222.5 Summary by Fund 222.6 General 54,000 56,000 222.7 Airports 70,000 70,000 222.8 Trunk Highway 45,557,000 46,515,000 222.9 The amounts that may be spent from this 222.10 appropriation for each activity are as 222.11 follows: 222.12 (a) General Management 222.13 33,989,000 34,706,000 222.14 (b) General Services 222.15 11,692,000 11,935,000 222.16 Summary by Fund 222.17 General 54,000 56,000 222.18 Airports 70,000 70,000 222.19 Trunk Highway 11,568,000 11,809,000 222.20 If the appropriation for either year is 222.21 insufficient, the appropriation for the 222.22 other year is available for it. 222.23 Subd. 9. Transfers 222.24 (a) The commissioner of transportation 222.25 with the approval of the commissioner 222.26 of finance may transfer unencumbered 222.27 balances among the appropriations from 222.28 the trunk highway fund and the state 222.29 airports fund made in this section. No 222.30 transfer may be made from the 222.31 appropriation for state road 222.32 construction. No transfer may be made 222.33 from the appropriations for debt 222.34 service to any other appropriation. 222.35 Transfers under this paragraph may not 222.36 be made between funds. Transfers must 222.37 be reported immediately to the chair of 222.38 the transportation budget division of 222.39 the senate and the chair of the 222.40 transportation finance committee of the 222.41 house of representatives. 222.42 (b) The commissioner of finance shall 222.43 transfer from the flexible account in 222.44 the county state-aid highway fund 222.45 $6,400,000 the first year and 222.46 $2,400,000 the second year to the 222.47 municipal turnback account in the 222.48 municipal state-aid street fund, and 222.49 the remainder in each year to the 222.50 county turnback account in the county 222.51 state-aid highway fund. 223.1 Subd. 10. Use of State Road 223.2 Construction Appropriations 223.3 Any money appropriated to the 223.4 commissioner of transportation for 223.5 state road construction for any fiscal 223.6 year before fiscal year 2001 is 223.7 available to the commissioner during 223.8 fiscal years 2002 and 2003 to the 223.9 extent that the commissioner spends the 223.10 money on the state road construction 223.11 project for which the money was 223.12 originally encumbered during the fiscal 223.13 year for which it was appropriated. 223.14 The commissioner of transportation 223.15 shall report to the commissioner of 223.16 finance by August 1, 2001, and August 223.17 1, 2002, on a form the commissioner of 223.18 finance provides, on expenditures made 223.19 during the previous fiscal year that 223.20 are authorized by this subdivision. 223.21 Subd. 11. Contingent Appropriation 223.22 The commissioner of transportation, 223.23 with the approval of the governor after 223.24 consultation with the legislative 223.25 advisory commission under Minnesota 223.26 Statutes, section 3.30, may transfer 223.27 all or part of the unappropriated 223.28 balance in the trunk highway fund to an 223.29 appropriation (1) for trunk highway 223.30 design, construction, or inspection in 223.31 order to take advantage of an 223.32 unanticipated receipt of income to the 223.33 trunk highway fund, (2) for trunk 223.34 highway maintenance in order to meet an 223.35 emergency, or (3) to pay tort or 223.36 environmental claims. The amount 223.37 transferred is appropriated for the 223.38 purpose of the account to which it is 223.39 transferred. 223.40 Sec. 3. METROPOLITAN COUNCIL 223.41 TRANSIT 56,801,000 56,801,000 223.42 The council may not spend more than 223.43 $42,200,000 for metro mobility in the 223.44 2002-2003 fiscal biennium except for 223.45 proceeds from bond sales when use of 223.46 those proceeds for metro mobility 223.47 capital expenditures is authorized by 223.48 law. 223.49 Sec. 4. PUBLIC SAFETY 223.50 Subdivision 1. Total 223.51 Appropriation 113,625,000 116,315,000 223.52 Summary by Fund 223.53 General 11,764,000 11,979,000 223.54 Trunk 223.55 Highway 85,154,000 87,317,000 223.56 For 2001 - $445,000 223.57 Highway User 15,728,000 16,025,000 224.1 For 2001 - $875,000 224.2 Special 224.3 Revenue 979,000 994,000 224.4 Subd. 2. Administration 224.5 and Related Services 13,169,000 13,365,000 224.6 Summary by Fund 224.7 General 4,578,000 4,603,000 224.8 Trunk Highway 7,206,000 7,377,000 224.9 Highway User 1,385,000 1,385,000 224.10 (a) Office of Communications 224.11 390,000 398,000 224.12 Summary by Fund 224.13 General 20,000 20,000 224.14 Trunk Highway 370,000 378,000 224.15 (b) Public Safety Support 224.16 7,903,000 7,995,000 224.17 Summary by Fund 224.18 General 3,086,000 3,087,000 224.19 Trunk Highway 3,451,000 3,542,000 224.20 Highway User 1,366,000 1,366,000 224.21 $326,000 the first year and $326,000 224.22 the second year are for payment of 224.23 public safety officer survivor benefits 224.24 under Minnesota Statutes, section 224.25 299A.44. If the appropriation for 224.26 either year is insufficient, the 224.27 appropriation for the other year is 224.28 available for it. 224.29 $314,000 the first year and $314,000 224.30 the second year are to be deposited in 224.31 the public safety officer's benefit 224.32 account. This money is available for 224.33 reimbursements under Minnesota 224.34 Statutes, section 299A.465. 224.35 $508,000 the first year and $508,000 224.36 the second year are for soft body armor 224.37 reimbursements under Minnesota 224.38 Statutes, section 299A.38. 224.39 (c) Technical Support Services 224.40 4,876,000 4,972,000 224.41 Summary by Fund 224.42 General 1,472,000 1,496,000 224.43 Trunk Highway 3,385,000 3,457,000 224.44 Highway User 19,000 19,000 225.1 Subd. 3. State Patrol 59,509,000 61,123,000 225.2 Summary by Fund 225.3 General 3,354,000 3,447,000 225.4 Trunk Highway 56,063,000 57,584,000 225.5 Highway User 92,000 92,000 225.6 (a) Patrolling Highways 225.7 49,693,000 51,029,000 225.8 Summary by Fund 225.9 General 37,000 37,000 225.10 Trunk Highway 49,564,000 50,900,000 225.11 Highway Users 92,000 92,000 225.12 (b) Commercial Vehicle Enforcement 225.13 6,295,000 6,474,000 225.14 This appropriation is from the trunk 225.15 highway fund. 225.16 (c) Capitol Security 225.17 3,521,000 3,620,000 225.18 Summary by Fund 225.19 General 3,317,000 3,410,000 225.20 Trunk Highway 204,000 210,000 225.21 Subd. 4. Driver and 225.22 Vehicle Services 39,651,000 40,509,000 225.23 Summary by Fund 225.24 General 3,832,000 3,929,000 225.25 Trunk Highway 21,568,000 22,032,000 225.26 For 2001 - $445,000 225.27 Highway User 14,251,000 14,548,000 225.28 For 2001 - $875,000 225.29 (a) Vehicle Registration 225.30 and Title 225.31 18,028,000 18,421,000 225.32 Summary by Fund 225.33 General 3,777,000 3,873,000 225.34 Highway User 14,251,000 14,548,000 225.35 For 2001 - $875,000 225.36 $875,000 from the highway user fund is 225.37 added to the appropriation for fiscal 225.38 year 2001 in Laws 1999, chapter 238, 225.39 article 1, section 4, subdivision 4, 226.1 paragraph (a), for increased license 226.2 plate costs. 226.3 (b) Licensing Drivers 226.4 21,623,000 22,088,000 226.5 Summary by Fund 226.6 General 55,000 56,000 226.7 Trunk Highway 21,568,000 22,032,000 226.8 For 2001 - $445,000 226.9 $445,000 from the trunk highway fund is 226.10 added to the appropriation for fiscal 226.11 year 2001 in Laws 1999, chapter 238, 226.12 article 1, section 4, subdivision 4, 226.13 paragraph (c), for increased driver's 226.14 license card production costs. 226.15 Subd. 5. Traffic Safety 317,000 324,000 226.16 This appropriation is from the trunk 226.17 highway fund. 226.18 Subd. 6. Pipeline Safety 979,000 994,000 226.19 This appropriation is from the pipeline 226.20 safety account in the special revenue 226.21 fund. 226.22 Sec. 5. GENERAL CONTINGENT 226.23 ACCOUNTS 375,000 375,000 226.24 The appropriations in this section may 226.25 only be spent with the approval of the 226.26 governor after consultation with the 226.27 legislative advisory commission 226.28 pursuant to Minnesota Statutes, section 226.29 3.30. 226.30 If an appropriation in this section for 226.31 either year is insufficient, the 226.32 appropriation for the other year is 226.33 available for it. 226.34 Summary by Fund 226.35 Trunk Highway 200,000 200,000 226.36 Highway User 125,000 125,000 226.37 Airports 50,000 50,000 226.38 Sec. 6. TORT CLAIMS 600,000 600,000 226.39 To be spent by the commissioner of 226.40 finance. 226.41 This appropriation is from the trunk 226.42 highway fund. 226.43 If the appropriation for either year is 226.44 insufficient, the appropriation for the 226.45 other year is available for it. 226.46 ARTICLE 21 226.47 PUBLIC SAFETY AND JUDICIARY 227.1 Section 1. [PUBLIC SAFETY AND JUDICIARY APPROPRIATIONS.] 227.2 The sums shown in the columns marked "APPROPRIATIONS" are 227.3 appropriated from the general fund, or another named fund, to 227.4 the agencies and for the purposes specified in this article, to 227.5 be available for the fiscal years indicated for each purpose. 227.6 The figures "2001," "2002," and "2003," where used in this 227.7 article, mean that the appropriations listed under them are 227.8 available for the year ending June 30, 2001, June 30, 2002, or 227.9 June 30, 2003, respectively. The term "first year" means the 227.10 year ending June 30, 2002, and the term "second year" means the 227.11 year ending June 30, 2003. Appropriations for the year ending 227.12 June 30, 2001, are in addition to appropriations made in 227.13 previous years. All 2001 appropriations in this article are 227.14 effective immediately on final enactment and do not cancel, but 227.15 are available until expended. 227.16 SUMMARY BY FUND 227.17 BIENNIAL 227.18 2002 2003 TOTAL 227.19 General $ 223,609,000 $ 235,036,000 $ 458,645,000 227.20 Special Revenue 4,936,000 4,981,000 9,917,000 227.21 Environmental 47,000 49,000 96,000 227.22 State Government 227.23 Special Revenue 7,000 7,000 14,000 227.24 Trunk Highway 354,000 361,000 715,000 227.25 TOTAL $ 228,953,000 $ 240,434,000 $ 469,387,000 227.26 APPROPRIATIONS 227.27 Available for the Year 227.28 Ending June 30 227.29 2002 2003 227.30 Sec. 2. SUPREME COURT 227.31 Subdivision 1. Total 227.32 Appropriation $ 28,251,000 $ 30,097,000 227.33 The amounts that may be spent from this 227.34 appropriation for each program are 227.35 specified in the following subdivisions. 227.36 Subd. 2. Supreme Court Operations 227.37 4,692,000 4,821,000 227.38 $5,000 the first year and $5,000 the 227.39 second year are for a contingent 227.40 account for expenses necessary for the 227.41 normal operation of the court for which 227.42 no other reimbursement is provided. 228.1 Subd. 3. Civil Legal Services 228.2 6,484,000 6,484,000 228.3 (a) This appropriation is for legal 228.4 services to low-income clients and for 228.5 family farm legal assistance under 228.6 Minnesota Statutes, section 480.242. 228.7 Any unencumbered balance remaining in 228.8 the first year does not cancel but is 228.9 available for the second year of the 228.10 biennium. A qualified legal services 228.11 program, as defined in Minnesota 228.12 Statutes, section 480.24, subdivision 228.13 3, may provide legal services to 228.14 persons eligible for family farm legal 228.15 assistance under Minnesota Statutes, 228.16 section 480.242. 228.17 (b) Of this appropriation, $877,000 the 228.18 first year and $877,000 the second year 228.19 are to improve the access of low-income 228.20 clients to legal representation in 228.21 family law matters. This appropriation 228.22 must be distributed under Minnesota 228.23 Statutes, section 480.242, to the 228.24 qualified legal services programs 228.25 described in Minnesota Statutes, 228.26 section 480.242, subdivision 2, 228.27 paragraph (a). Any unencumbered 228.28 balance remaining in the first year 228.29 does not cancel and is available for 228.30 the second year of the biennium. 228.31 Subd. 4. State Court Administration 228.32 15,176,000 16,847,000 228.33 Subd. 5. Law Library Operations 228.34 1,899,000 1,945,000 228.35 Sec. 3. COURT OF APPEALS 7,299,000 7,881,000 228.36 Sec. 4. DISTRICT COURTS 108,605,000 116,945,000 228.37 Sec. 5. BOARD ON JUDICIAL 228.38 STANDARDS 245,000 252,000 228.39 Sec. 6. TAX COURT 692,000 713,000 228.40 FY 2001 - $14,000 228.41 Sec. 7. HUMAN RIGHTS 4,032,000 4,148,000 228.42 Sec. 8. UNIFORM LAWS COMMISSION 39,000 40,000 228.43 Sec. 9. CRIME VICTIM 228.44 OMBUDSMAN 400,000 411,000 228.45 Sec. 10. PUBLIC SAFETY 228.46 Subdivision 1. Total 228.47 Appropriation 74,554,000 75,075,000 228.48 Summary by Fund 228.49 2002 2003 228.50 General 73,602,000 74,101,000 229.1 Special Revenue 544,000 557,000 229.2 State Government 229.3 Special Revenue 7,000 7,000 229.4 Environmental 47,000 49,000 229.5 Trunk Highway 354,000 361,000 229.6 The amounts that may be spent from this 229.7 appropriation for each program are 229.8 specified in the following subdivisions. 229.9 Subd. 2. Emergency Management 229.10 Summary by Fund 229.11 General 3,874,000 3,916,000 229.12 Environmental 47,000 49,000 229.13 Subd. 3. Criminal Apprehension 229.14 Summary by Fund 229.15 General 28,050,000 28,336,000 229.16 Special Revenue 544,000 557,000 229.17 State Government 229.18 Special Revenue 7,000 7,000 229.19 Trunk Highway 354,000 361,000 229.20 (a) $99,000 the first year and $99,000 229.21 the second year from the bureau of 229.22 criminal apprehension account in the 229.23 special revenue fund are for grants to 229.24 local officials for the cooperative 229.25 investigation of cross-jurisdictional 229.26 criminal activity. Any unencumbered 229.27 balance remaining in the first year 229.28 does not cancel but is available for 229.29 the second year. 229.30 (b) $1,332,000 the first year and 229.31 $1,357,000 the second year from the 229.32 general fund are for laboratory 229.33 analysis related to driving while 229.34 impaired cases. 229.35 (c) Notwithstanding Minnesota Statutes, 229.36 section 161.20, subdivision 3, $354,000 229.37 the first year and $361,000 the second 229.38 year from the trunk highway fund are 229.39 for laboratory analysis related to 229.40 driving while impaired cases. 229.41 Subd. 4. Fire Marshal 229.42 3,280,000 3,363,000 229.43 Subd. 5. Alcohol and Gambling Enforcement 229.44 1,822,000 1,864,000 229.45 Subd. 6. Crime Victim Services Center 229.46 31,152,000 31,186,000 229.47 Subd. 7. Law Enforcement and Community Grants 230.1 5,424,000 5,436,000 230.2 Sec. 11. BOARD OF PEACE OFFICER 230.3 STANDARDS AND TRAINING 4,692,000 4,724,000 230.4 Summary by Fund 230.5 General 300,000 300,000 230.6 Special Revenue 4,392,000 4,424,000 230.7 The appropriation from the special 230.8 revenue fund is from the peace officer 230.9 training account. Any receipts 230.10 credited to the peace officer training 230.11 account in the special revenue fund in 230.12 the first year in excess of $4,392,000 230.13 must be transferred and credited to the 230.14 general fund. Any receipts credited to 230.15 the peace officer training account in 230.16 the special revenue fund in the second 230.17 year in excess of $4,424,000 must be 230.18 transferred and credited to the general 230.19 fund. 230.20 The appropriation from the general fund 230.21 is to reimburse local law enforcement 230.22 agencies for the cost of providing 230.23 training in emergency vehicle 230.24 operations and police pursuit. 230.25 Sec. 12. BOARD OF PRIVATE DETECTIVE 230.26 AND PROTECTIVE AGENT SERVICES 144,000 148,000 230.27 The board may increase the amounts 230.28 charged for initial licenses, 230.29 application fees, reissuance fees, 230.30 designation fees, status fees, and 230.31 business fees as specified on page 230.32 H-331 of the governor's 2002-2003 230.33 proposed criminal justice budget. 230.34 ARTICLE 22 230.35 CORRECTIONS 230.36 Section 1. [CRIMINAL JUSTICE APPROPRIATIONS.] 230.37 The sums shown in the columns marked "APPROPRIATIONS" are 230.38 appropriated from the general fund, or another fund named, to 230.39 the agencies and for the purposes specified in this act, to be 230.40 available for the fiscal years indicated for each purpose. The 230.41 figures "2002" and "2003" where used in this article, mean that 230.42 the appropriation or appropriations listed under them are 230.43 available for the year ending June 30, 2002, or June 30, 2003, 230.44 respectively. 230.45 SUMMARY BY FUND 230.46 BIENNIAL 230.47 2002 2003 TOTAL 230.48 General $ 410,616,000 $ 423,209,000 $ 833,825,000 231.1 Special Revenue 1,389,000 1,242,000 2,631,000 231.2 TOTAL $ 412,005,000 $ 424,451,000 $ 836,456,000 231.3 APPROPRIATIONS 231.4 Available for the Year 231.5 Ending June 30 231.6 2002 2003 231.7 Sec. 2. BOARD OF PUBLIC DEFENSE 231.8 Subdivision 1. Total 231.9 Appropriation 49,067,000 50,588,000 231.10 None of this appropriation shall be 231.11 used to pay for lawsuits against public 231.12 agencies or public officials to change 231.13 social or public policy. 231.14 During the biennium ending June 30, 231.15 2003, the state public defender may, 231.16 with the approval of the commissioner 231.17 of finance, transfer funds for 231.18 transcript costs from the office of 231.19 administrative services to the state 231.20 public defender. 231.21 The amounts that may be spent from this 231.22 appropriation for each program are 231.23 specified in the following subdivisions. 231.24 Subd. 2. State Public 231.25 Defender 231.26 3,341,000 3,507,000 231.27 Subd. 3. Administrative Services 231.28 Office 231.29 2,135,000 2,175,000 231.30 Subd. 4. District Public 231.31 Defense 231.32 43,591,000 44,906,000 231.33 $1,326,000 the first year and 231.34 $1,366,000 the second year are for 231.35 grants to the five existing public 231.36 defense corporations under Minnesota 231.37 Statutes, section 611.216. 231.38 Sec. 3. CORRECTIONS 231.39 Subdivision 1. Total 231.40 Appropriation 362,102,000 372,997,000 231.41 Summary by Fund 231.42 General 360,713,000 371,755,000 231.43 Special Revenue 1,389,000 1,242,000 231.44 The amounts that may be spent from this 231.45 appropriation for each program are 231.46 specified in the following subdivisions. 231.47 Any unencumbered balances remaining in 231.48 the first year do not cancel but are 231.49 available for the second year of the 231.50 biennium. 232.1 Positions and administrative money may 232.2 be transferred within the department of 232.3 corrections as the commissioner 232.4 considers necessary, upon the advance 232.5 approval of the commissioner of finance. 232.6 For the biennium ending June 30, 2003, 232.7 the commissioner of corrections may, 232.8 with the approval of the commissioner 232.9 of finance, transfer funds to or from 232.10 salaries. 232.11 During the biennium ending June 30, 232.12 2003, the commissioner may enter into 232.13 contracts with private corporations or 232.14 governmental units of the state of 232.15 Minnesota to house adult offenders 232.16 committed to the commissioner of 232.17 corrections. Every effort shall be 232.18 made to house individuals committed to 232.19 the commissioner of corrections in 232.20 Minnesota correctional facilities. 232.21 Subd. 2. Correctional 232.22 Institutions 232.23 Summary by Fund 232.24 General Fund 231,202,000 241,146,000 232.25 Special Revenue Fund 932,000 785,000 232.26 If the commissioner contracts with 232.27 other states, local units of 232.28 government, or the federal government 232.29 to rent beds in the Rush City 232.30 correctional facility under Minnesota 232.31 Statutes, section 243.51, subdivision 232.32 1, to the extent possible, the 232.33 commissioner shall charge a per diem 232.34 under the contract that is equal to or 232.35 greater than the per diem cost of 232.36 housing Minnesota inmates in the 232.37 facility. This per diem cost shall be 232.38 based on the assumption that the 232.39 facility is at or near capacity. 232.40 Notwithstanding any law to the 232.41 contrary, the per diem money is 232.42 appropriated to the commissioner to 232.43 operate the state correctional 232.44 institutions. 232.45 The commissioner may use any cost 232.46 savings generated through the 232.47 implementation of a per diem reduction 232.48 plan for capital improvements, which 232.49 will contribute to further per diem 232.50 reductions at adult correctional 232.51 facilities. 232.52 Subd. 3. Juvenile Services 232.53 13,984,000 14,283,000 232.54 Subd. 4. Community Services 232.55 Summary by Fund 232.56 General 102,697,000 103,241,000 232.57 Special Revenue 150,000 150,000 233.1 $4,283,000 the first year and 233.2 $8,000,000 the second year are for 233.3 juvenile residential treatment grants. 233.4 Subd. 5. Management Services 233.5 Summary by Fund 233.6 General Fund 12,830,000 13,085,000 233.7 Special Revenue Fund 307,000 307,000 233.8 Sec. 4. CORRECTIONS OMBUDSMAN 323,000 336,000 233.9 Sec. 5. SENTENCING GUIDELINES 233.10 COMMISSION 513,000 530,000 233.11 Sec. 6. Minnesota Statutes 2000, section 242.192, is 233.12 amended to read: 233.13 242.192 [CHARGES TO COUNTIES.] 233.14 (a) Until June 30,20012002, the commissioner shall charge 233.15 counties or other appropriate jurisdictions 65 percent of the 233.16 per diem cost of confinement, excluding educational costs and 233.17 nonbillable service, of juveniles at the Minnesota correctional 233.18 facility-Red Wing and of juvenile females committed to the 233.19 commissioner of corrections. This charge applies to juveniles 233.20 committed to the commissioner of corrections and juveniles 233.21 admitted to the Minnesota correctional facility-Red Wing under 233.22 established admissions criteria. This charge applies to both 233.23 counties that participate in the Community Corrections Act and 233.24 those that do not. The commissioner shall determine the per 233.25 diem cost of confinement based on projected population, pricing 233.26 incentives, market conditions, and the requirement that expense 233.27 and revenue balance out over a period of two years. All money 233.28 received under this section must be deposited in the state 233.29 treasury and credited to the general fund. 233.30 (b) Until June 30,20012002, the department of corrections 233.31 shall be responsible for 35 percent of the per diem cost of 233.32 confinement described in this section.