Minnesota Legislature
SF 2359
3rd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - 3rd Engrossment
1.1 A bill for an act 1.2 relating to education; providing for early childhood 1.3 through adult education including general education, 1.4 education excellence, special education, facilities 1.5 and technology, fund transfers, access to testing, 1.6 nutrition programs, early childhood programs, 1.7 prevention, self-sufficiency and lifelong learning, 1.8 libraries, state agencies, and technical amendments; 1.9 providing appointments; appropriating money; amending 1.10 Minnesota Statutes 2000, sections 93.22; 119A.05; 1.11 119A.12, by adding subdivisions; 119A.13, subdivision 1.12 4; 119A.21; 119A.22; 119A.52; 119B.011, subdivisions 1.13 7, 19, by adding subdivisions; 119B.02, subdivisions 1.14 1, 2; 119B.03, subdivisions 3, 9, 10, by adding a 1.15 subdivision; 119B.05, subdivision 5; 119B.061, 1.16 subdivisions 1, 4; 119B.08; 119B.09, subdivisions 1, 1.17 2, 7; 119B.10; 119B.11, subdivision 1; 119B.12, 1.18 subdivision 2; 119B.13, subdivisions 1, 6; 119B.15; 1.19 119B.24; 120B.07; 120B.30, subdivision 1; 120B.35; 1.20 121A.16; 121A.17, subdivisions 1, 3, 4, 5; 121A.19; 1.21 122A.09, subdivision 4; 122A.162; 122A.163; 122A.18, 1.22 subdivisions 1, 4; 122A.21; 122A.26, subdivision 3; 1.23 122A.60, subdivision 3; 122A.61, subdivision 1; 1.24 123B.36, subdivision 1; 123B.37, subdivision 1; 1.25 123B.42, subdivision 3; 123B.57, subdivision 8; 1.26 123B.59, subdivision 1; 123B.75, subdivision 5; 1.27 123B.88, subdivision 1; 123B.92, subdivision 9; 1.28 124D.11, subdivisions 4, 5, by adding subdivisions; 1.29 124D.128, subdivisions 1, 2, 3, 6, by adding a 1.30 subdivision; 124D.13, subdivisions 8, 9, by adding 1.31 subdivisions; 124D.135, subdivisions 1, 3, 7, by 1.32 adding a subdivision; 124D.15; 124D.16; 124D.221, 1.33 subdivisions 1, 2; 124D.453, subdivision 3; 124D.454, 1.34 subdivision 11; 124D.52, subdivision 2; 124D.522; 1.35 124D.531, subdivisions 1, 3; 124D.69, subdivision 1; 1.36 124D.74, subdivisions 1, 2, 3, 4, 6; 124D.75, 1.37 subdivision 6; 124D.76; 124D.78, subdivision 1; 1.38 124D.81, subdivisions 1, 3, 5, 6, 7; 124D.86, 1.39 subdivision 3; 125A.17; 125A.515; 125A.76, 1.40 subdivisions 1, 4; 125A.79, subdivisions 1, 7; 1.41 125B.20, subdivision 1; 125B.21; 125B.25, subdivisions 1.42 1, 2, 6, 9; 126C.05, subdivisions 1, 15; 126C.10, 1.43 subdivisions 1, 2, 3, 4, 5, 7, 8, 13, 18, 24, 28, by 1.44 adding subdivisions; 126C.12, subdivisions 1, 2, 3, 4, 1.45 5, by adding a subdivision; 126C.125; 126C.13, 1.46 subdivision 1; 126C.15, subdivision 2; 126C.16, by 2.1 adding a subdivision; 126C.17, subdivisions 1, 2, 5, 2.2 6, by adding a subdivision; 126C.18, by adding a 2.3 subdivision; 126C.40, subdivision 1; 126C.41, 2.4 subdivision 2; 127A.41, subdivisions 8, 9; 127A.45, 2.5 subdivision 12, by adding a subdivision; 127A.51; 2.6 214.01, subdivision 3; 214.04, subdivisions 1, 3; 2.7 214.12, subdivision 1; 298.28, subdivision 4; Laws 2.8 2000, chapter 489, article 2, sections 34, 37; Laws 2.9 2000, chapter 489, article 3, section 24; Laws 2000, 2.10 chapter 489, article 5, section 21; Laws 2000, chapter 2.11 489, article 5, section 23; Laws 2000, chapter 489, 2.12 article 7, section 15, subdivision 3; proposing coding 2.13 for new law in Minnesota Statutes, chapters 93; 119A; 2.14 119B; 122A; 124D; 126C; 134; repealing Minnesota 2.15 Statutes 2000, sections 119A.13, subdivisions 1, 2, 3; 2.16 119A.14, subdivision 2; 119A.23; 119B.011, subdivision 2.17 20; 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 8; 2.18 119B.05, subdivision 1; 119B.07; 119B.09, subdivision 2.19 3; 119B.11, subdivision 4; 120A.41; 124D.1155; 2.20 124D.128, subdivision 7; 124D.33; 124D.331; 124D.85; 2.21 125B.20, subdivision 3; 126C.10, subdivisions 9, 10, 2.22 11, 12, 19, 20, 21, 22, 23; 126C.11; Laws 1999, 2.23 chapter 241, article 3, section 5, as amended; Laws 2.24 2000, chapter 254, section 30; Laws 2000, chapter 489, 2.25 article 1, section 18. 2.26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.27 ARTICLE 1 2.28 GENERAL EDUCATION 2.29 Section 1. Minnesota Statutes 2000, section 93.22, is 2.30 amended to read: 2.31 93.22 [DISPOSITION OF PAYMENTS.] 2.32 Subdivision 1. [GENERALLY.](a)All payments under 2.33 sections 93.14 to 93.285 shall be made to the department of 2.34 natural resources and shall be creditedas follows:according to 2.35 this section. 2.36(1)(a) If the lands or minerals and mineral rights covered 2.37 by a lease are held by the state by virtue of an act of 2.38 Congress, payments made under the lease shall be credited to the 2.39 permanent fund of the class of land to which the leased premises 2.40 belong;. 2.41(2)(b) If a lease covers the bed of navigable waters, 2.42 payments made under the lease shall be credited to the permanent 2.43 school fund of the state; and. 2.44(3)(c) If the lands or minerals and mineral rights covered 2.45 by a lease are held by the state in trust for the taxing 2.46 districts, payments made under the lease shall be distributed 2.47 annually on the first day of September as follows: 2.48(i)(1) 20 percent to the general fund; and 3.1(ii)(2) 80 percent to the respective counties in which the 3.2 lands lie, to be apportioned among the taxing districts 3.3 interested therein as follows: county, three-ninths; town or 3.4 city, two-ninths; and school district, four-ninths. 3.5(b)(d) Except as provided underparagraph (a)this section 3.6 and except where the disposition of payments may be otherwise 3.7 directed by law, all payments shall be paid into the general 3.8 fund of the state. 3.9 Subd. 2. [TACONITE LEASE REVENUE.] Notwithstanding 3.10 subdivision 1, from July 1, 2001, to June 30, 2006, payments 3.11 made under state taconite leases shall be distributed as follows: 3.12 (1) if the lands or minerals and mineral rights covered by 3.13 a lease are held by the state by virtue of a school, swamp, or 3.14 internal improvement land grant of Congress, payments made under 3.15 the lease shall be distributed annually on September 1 to the 3.16 school fund mineral lease suspense account created under section 3.17 93.223, subdivision 1; and 3.18 (2) if the lands or minerals and mineral rights covered by 3.19 a lease are held by the state by virtue of a university land 3.20 grant of Congress, payments made under the lease shall be 3.21 distributed annually on September 1 to the university mineral 3.22 lease suspense account created under section 93.223, subdivision 3.23 2. 3.24 Sec. 2. [93.223] [MINERAL LEASE SUSPENSE ACCOUNTS.] 3.25 Subdivision 1. [SCHOOL FUND MINERAL LEASE SUSPENSE 3.26 ACCOUNT.] The school fund mineral lease suspense account is 3.27 created as an account in the state treasury for mineral lease 3.28 money deposited according to section 93.22, subdivision 2, 3.29 clause (1). Interest earned on money in the account accrues to 3.30 the account. After money is annually deposited in the account 3.31 under section 93.22, subdivision 2, clause (1), the commissioner 3.32 of finance shall certify 20 percent of the payments made during 3.33 the preceding fiscal year as costs for the administration and 3.34 management of mineral leases on permanent school fund lands. 3.35 The commissioner of finance shall transfer the certified amount 3.36 from the school fund mineral lease suspense account to the 4.1 general fund. The balance remaining in the account after the 4.2 certification is annually transferred to the permanent school 4.3 fund. 4.4 Subd. 2. [UNIVERSITY FUND MINERAL LEASE SUSPENSE ACCOUNT.] 4.5 The university fund mineral lease suspense account is created as 4.6 an account in the state treasury for mineral lease money 4.7 deposited according to section 93.22, subdivision 2, clause (2). 4.8 Interest earned on money in the account accrues to the account. 4.9 After money is annually deposited in the account under section 4.10 93.22, subdivision 2, clause (2), the commissioner of finance 4.11 shall certify 20 percent of the payments made during the 4.12 preceding fiscal year as costs for the administration and 4.13 management of mineral leases on permanent university fund 4.14 lands. The commissioner of finance shall transfer the certified 4.15 amount from the university fund mineral lease account to the 4.16 general fund. The balance remaining in the account is annually 4.17 transferred to the permanent university fund. 4.18 Sec. 3. [93.2235] [TACONITE MINING GRANTS; 4.19 APPROPRIATIONS.] 4.20 Subdivision 1. [COMMISSIONER.] The commissioner shall 4.21 establish a program to award grants to taconite mining companies 4.22 for: 4.23 (1) taconite pellet product improvements; 4.24 (2) value-added production of taconite iron ore; or 4.25 (3) cost-savings production improvements at Minnesota 4.26 taconite plants. 4.27 An amount equal to the sum of money transferred to the 4.28 general fund under section 93.223, subdivision 1, is annually 4.29 appropriated from the general fund to the commissioner for the 4.30 purposes of this section. 4.31 Subd. 2. [COLERAINE LABORATORY.] The director of the 4.32 Coleraine laboratory shall establish a program to award grants 4.33 for the purpose of transferring technology from the Coleraine 4.34 laboratory to taconite mining companies for: 4.35 (1) taconite pellet product improvements; 4.36 (2) value-added production of taconite iron ore; or 5.1 (3) cost-savings production improvements at Minnesota 5.2 taconite plants. 5.3 An amount equal to the sum of money transferred to the 5.4 general fund under section 92.223, subdivision 2, is annually 5.5 appropriated from the general fund to the board of regents of 5.6 the University of Minnesota for the purposes of this section. 5.7 Sec. 4. Minnesota Statutes 2000, section 120B.07, is 5.8 amended to read: 5.9 120B.07 [EARLY GRADUATION.] 5.10 Notwithstanding any law to the contrary, any secondary 5.11 school student who has completed all required courses or 5.12 standards may, with the approval of the student, the student's 5.13 parent or guardian, and local school officials, graduate before 5.14 the completion of the school year. General education revenue 5.15 attributable to the student must be paid as though the student 5.16 was in attendance for the entire year. 5.17 Sec. 5. Minnesota Statutes 2000, section 123B.36, 5.18 subdivision 1, is amended to read: 5.19 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 5.20 purposes of this subdivision, "home school" means a home school 5.21 as defined in sections 120A.22 and 120A.24 with five or fewer 5.22 students receiving instruction. 5.23 (b) A school board is authorized to require payment of fees 5.24 in the following areas: 5.25 (1) in any program where the resultant product, in excess 5.26 of minimum requirements and at the pupil's option, becomes the 5.27 personal property of the pupil; 5.28 (2) admission fees or charges for extra curricular 5.29 activities, where attendance is optional and where the admission 5.30 fees or charges a student must pay to attend or participate in 5.31 an extracurricular activity is the same for all students, 5.32 regardless of whether the student is enrolled in a public or a 5.33 home school; 5.34 (3) a security deposit for the return of materials, 5.35 supplies, or equipment; 5.36 (4) personal physical education and athletic equipment and 6.1 apparel, although any pupil may personally provide it if it 6.2 meets reasonable requirements and standards relating to health 6.3 and safety established by the board; 6.4 (5) items of personal use or products that a student has an 6.5 option to purchase such as student publications, class rings, 6.6 annuals, and graduation announcements; 6.7 (6) fees specifically permitted by any other statute, 6.8 including but not limited to section 171.05, subdivision 2; 6.9 provided (i) driver education fees do not exceed the actual cost 6.10 to the school and school district of providing driver education, 6.11 and (ii) the driver education courses are open to enrollment to 6.12 persons between the ages of 15 and 18 who reside or attend 6.13 school in the school district; 6.14 (7) field trips considered supplementary to a district 6.15 educational program; 6.16 (8) any authorized voluntary student health and accident 6.17 benefit plan; 6.18 (9) for the use of musical instruments owned or rented by 6.19 the district, a reasonable rental fee not to exceed either the 6.20 rental cost to the district or the annual depreciation plus the 6.21 actual annual maintenance cost for each instrument; 6.22 (10) transportation of pupils to and from extra curricular 6.23 activities conducted at locations other than school, where 6.24 attendance is optional; 6.25 (11) transportation to and from school of pupilsto and6.26 living within two miles from schoolfor which aid for fiscal6.27year 1996 is not authorized under Minnesota Statutes 1994,6.28section 124.223, subdivision 1, and for which levy for fiscal6.29year 1996 is not authorized under Minnesota Statutes 1994,6.30section 124.226, subdivision 5,and all other transportation 6.31 services not required by law. If a districtchargingcharges 6.32 fees for transportation of pupilsestablishes, it must establish 6.33 guidelines for that transportation to ensure that no pupil is 6.34 denied transportation solely because of inability to pay; 6.35 (12) motorcycle classroom education courses conducted 6.36 outside of regular school hours; provided the charge must not 7.1 exceed the actual cost of these courses to the school district; 7.2 (13) transportation to and from post-secondary institutions 7.3 for pupils enrolled under the post-secondary enrollment options 7.4 program under section 123B.88, subdivision 22. Fees collected 7.5 for this service must be reasonable and must be used to reduce 7.6 the cost of operating the route. Families who qualify for 7.7 mileage reimbursement under section 124D.09, subdivision 22, may 7.8 use their state mileage reimbursement to pay this fee. If no 7.9 fee is charged, districts must allocate costs based on the 7.10 number of pupils riding the route. 7.11 Sec. 6. Minnesota Statutes 2000, section 123B.37, 7.12 subdivision 1, is amended to read: 7.13 Subdivision 1. [BOARDS SHALL NOT CHARGE CERTAIN FEES.] (a) 7.14 A board is not authorized to charge fees in the following areas: 7.15 (1) textbooks, workbooks, art materials, laboratory 7.16 supplies, towels; 7.17 (2) supplies necessary for participation in any 7.18 instructional course except as authorized in sections 123B.36 7.19 and 123B.38; 7.20 (3) field trips that are required as a part of a basic 7.21 education program or course; 7.22 (4) graduation caps, gowns, any specific form of dress 7.23 necessary for any educational program, and diplomas; 7.24 (5) instructional costs for necessary school personnel 7.25 employed in any course or educational program required for 7.26 graduation; 7.27 (6) library books required to be utilized for any 7.28 educational course or program; 7.29 (7) admission fees, dues, or fees for any activity the 7.30 pupil is required to attend; 7.31 (8) any admission or examination cost for any required 7.32 educational course or program; 7.33 (9) locker rentals; 7.34 (10) transportation to and from school of pupils(i) for7.35which state transportation aid for fiscal year 1996 is7.36authorized pursuant to Minnesota Statutes 1994, section 124.223,8.1or (ii) for which a levy for fiscal year 1996 is authorized8.2under Minnesota Statutes 1994, section 124.226, subdivision8.35living two miles or more from school. 8.4 (b) Notwithstanding paragraph (a), clauses (1) and (6), a 8.5 board may charge fees for textbooks, workbooks, and library 8.6 books, lost or destroyed by students. The board must annually 8.7 notify parents or guardians and students about its policy to 8.8 charge a fee under this paragraph. 8.9 Sec. 7. Minnesota Statutes 2000, section 123B.42, 8.10 subdivision 3, is amended to read: 8.11 Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the 8.12 textbooks, individualized instructional or cooperative learning 8.13 materials, and standardized tests provided for in this section 8.14 for each school year must not exceed the statewide average 8.15 expenditure per pupil, adjusted pursuant to clause (b), by the 8.16 Minnesota public elementary and secondary schools for textbooks, 8.17 individualized instructional materials and standardized tests as 8.18 computed and established by the department byMarchFebruary 1 8.19 of the preceding school year from the most recent public school 8.20 year data then available. 8.21 (b) The cost computed in clause (a) shall be increased by 8.22 an inflation adjustment equal to the percent of increase in the 8.23 formula allowance, pursuant to section 126C.10, subdivision 2, 8.24 from the second preceding school year to the current school year. 8.25 Notwithstanding the amount of the formula allowance for fiscal 8.26 years 2003 and 2004 in section 126C.10, subdivision 2, the 8.27 commissioner shall use the amount of the formula allowance for 8.28 the current year minus $942 in determining the inflation 8.29 adjustment for those fiscal years. 8.30 (c) The commissioner shall allot to the districts or 8.31 intermediary service areas the total cost for each school year 8.32 of providing or loaning the textbooks, individualized 8.33 instructional or cooperative learning materials, and 8.34 standardized tests for the pupils in each nonpublic school. The 8.35 allotment shall not exceed the product of the statewide average 8.36 expenditure per pupil, according to clause (a), adjusted 9.1 pursuant to clause (b), multiplied by the number of nonpublic 9.2 school pupils who make requests pursuant to this section and who 9.3 are enrolled as of September 15 of the current school year. 9.4 Sec. 8. Minnesota Statutes 2000, section 123B.75, 9.5 subdivision 5, is amended to read: 9.6 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 9.7 settlement revenue" means the current, delinquent, and 9.8 manufactured home property tax receipts collected by the county 9.9 and distributed to the school district. 9.10 (b) In June ofeach year2001, the school district must 9.11 recognize as revenue, in the fund for which the levy was made, 9.12 the lesser of: 9.13 (1) the sum of May, June, and July school district tax 9.14 settlement revenue received in that calendar year plus general 9.15 education aid according to section 126C.13, subdivision 4, 9.16 received in July and August of that calendar year; or 9.17 (2) the sum of: 9.18 (i) 31 percent of the referendum levy certified in the 9.19 prior calendar year according to section 126C.17, subdivision 9; 9.20 plus 9.21 (ii) the entire amount of the levy certified in the prior 9.22 calendar year according to sections 124D.86, subdivision 4, for 9.23 school districts receiving revenue under 124D.86, subdivision 3, 9.24 clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 9.25 paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 9.26 126C.48, subdivision 6. 9.27 (c) For fiscal year 2002 and later years, in June of each 9.28 year, the school district must recognize as revenue, in the fund 9.29 for which the levy was made, the lesser of: 9.30 (1) the sum of May, June, and July school district tax 9.31 settlement revenue received in that calendar year, plus general 9.32 education aid according to section 126C.13, subdivision 4, 9.33 received in July and August of that calendar year; or 9.34 (2) the sum of: 9.35 (i) 31 percent of the referendum levy certified according 9.36 to section 126C.17, in calendar year 2000; plus 10.1 (ii) the entire amount of the levy certified in the prior 10.2 calendar year according to section 124D.86, subdivision 4, for 10.3 school districts receiving revenue under sections 124D.86, 10.4 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 10.5 1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 10.6 2; and 126C.48, subdivision 6. 10.7 [EFFECTIVE DATE.] This section is effective June 30, 2001. 10.8 Sec. 9. Minnesota Statutes 2000, section 123B.88, 10.9 subdivision 1, is amended to read: 10.10 Subdivision 1. [PROVIDING TRANSPORTATION.] The board may 10.11 provide for the transportation of pupils to and from school and 10.12 for any other purpose. The board may also provide for the 10.13 transportation of pupils to schools in other districts for 10.14 grades and departments not maintained in the district, including 10.15 high school, at the expense of the district, when funds are 10.16 available therefor and if agreeable to the district to which it 10.17 is proposed to transport the pupils, for the whole or a part of 10.18 the school year, as it may deem advisable, and subject to its 10.19 rules. In any district, the board must arrange for the 10.20 attendance of all pupils living two miles or more from the 10.21 school, except pupils whose transportation privileges have been 10.22 voluntarily surrendered under subdivision 2, or whose privileges 10.23 have been revoked under section 123B.91, subdivision 1, clause 10.24 (6), or 123B.90, subdivision 2. The district may provide for 10.25 the transportation of or the boarding and rooming of the pupils 10.26 who may be more economically and conveniently provided for by 10.27 that means. Arrangements for attendance may include a 10.28 requirement that parents or guardians request transportation 10.29 before it is provided. The board must provide transportation to 10.30 and from the home of a child with a disability not yet enrolled 10.31 in kindergarten when special instruction and services under 10.32 sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 are 10.33 provided in a location other than in the child's home. When 10.34 transportation is provided, scheduling of routes, establishment 10.35 of the location of bus stops, manner and method of 10.36 transportation, control and discipline of school children, the 11.1 determination of fees, and any other matter relating thereto 11.2 must be within the sole discretion, control, and management of 11.3 the board. The district may provide for the transportation of 11.4 pupils or expend a reasonable amount for room and board of 11.5 pupils whose attendance at school can more economically and 11.6 conveniently be provided for by that means or who attend school 11.7 in a building rented or leased by a district within the confines 11.8 of an adjacent district. 11.9 Sec. 10. Minnesota Statutes 2000, section 123B.92, 11.10 subdivision 9, is amended to read: 11.11 Subd. 9. [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 11.12 district's nonpublic pupil transportation aid for the 1996-1997 11.13 and later school years for transportation services for nonpublic 11.14 school pupils according to sections 123B.88, 123B.84 to 123B.86, 11.15 and this section, equals the sum of the amounts computed in 11.16 paragraphs (b) and (c). This aid does not limit the obligation 11.17 to transport pupils under sections 123B.84 to 123B.87. 11.18 (b) For regular and excess transportation according to 11.19 subdivision 1, paragraph (b), clauses (1) and (2), an amount 11.20 equal to the product of: 11.21 (1) the district's actual expenditure per pupil transported 11.22 in the regular and excess transportation categories during the 11.23 second preceding school year; times 11.24 (2) the number of nonpublic school pupils residing in the 11.25 district who receive regular or excess transportation service or 11.26 reimbursement for the current school year; times 11.27 (3) the ratio of the formula allowance pursuant to section 11.28 126C.10, subdivision 2, for the current school year to the 11.29 formula allowance pursuant to section 126C.10, subdivision 2, 11.30 for the second preceding school year. 11.31 (c) For nonpublic nonregular transportation according to 11.32 subdivision 1, paragraph (b), clause (5), an amount equal to the 11.33 product of: 11.34 (1) the district's actual expenditure for nonpublic 11.35 nonregular transportation during the second preceding school 11.36 year; times 12.1 (2) the ratio of the formula allowance pursuant to section 12.2 126C.10, subdivision 2, for the current school year to the 12.3 formula allowance pursuant to section 126C.10, subdivision 2, 12.4 for the second preceding school year. 12.5 (d) Notwithstanding the amount of the formula allowance for 12.6 fiscal years 2000, 2001, and 2002 in section 126C.10, 12.7 subdivision 2, the commissioner shall use the amount of the 12.8 formula allowance for the current year plus $87 in determining 12.9 the nonpublic pupil transportation revenue in paragraphs (b) and 12.10 (c) for fiscal year 2000, and the amount of the formula 12.11 allowance less $110 in determining the nonpublic pupil 12.12 transportation revenue in paragraphs (b) and (c) for fiscal 12.13 years 2001 and 2002. 12.14 (e) Notwithstanding the amount of the formula allowance for 12.15 fiscal years 2003 and 2004 in section 126C.10, subdivision 2, 12.16 the commissioner shall use the amount of the formula allowance 12.17 for the current year minus $942 in determining the nonpublic 12.18 pupil transportation revenue in paragraphs (b) and (c) for those 12.19 fiscal years. 12.20 Sec. 11. Minnesota Statutes 2000, section 126C.05, 12.21 subdivision 1, is amended to read: 12.22 Subdivision 1. [PUPIL UNIT.] Pupil units for each 12.23 Minnesota resident pupil in average daily membership enrolled in 12.24 the district of residence, in another district under sections 12.25 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 12.26 124D.68; in a charter school under section 124D.10; or for whom 12.27 the resident district pays tuition under section 123A.18, 12.28 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 12.29 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 12.30 125A.65, shall be counted according to this subdivision. 12.31 (a) A prekindergarten pupil with a disability who is 12.32 enrolled in a program approved by the commissioner and has an 12.33 individual education plan is counted as the ratio of the number 12.34 of hours of assessment and education service to 825 times 1.25 12.35 with a minimum average daily membership of 0.28, but not more 12.36 than 1.25 pupil units. 13.1 (b) A prekindergarten pupil who is assessed but determined 13.2 not to be handicapped is counted as the ratio of the number of 13.3 hours of assessment service to 825 times 1.25. 13.4 (c) A kindergarten pupil with a disability who is enrolled 13.5 in a program approved by the commissioner is counted as the 13.6 ratio of the number of hours of assessment and education 13.7 services required in the fiscal year by the pupil's individual 13.8 education program plan to 875, but not more than one. 13.9 (d) A kindergarten pupil who is not included in paragraph 13.10 (c) is counted as .557 of a pupil unit for fiscal year20002002 13.11 and .5 of a pupil unit for fiscal year 2003 and thereafter. 13.12 (e) A pupil who is in any of grades 1 to 3 is counted as 13.13 1.115 pupil units for fiscal year20002002 and one pupil unit 13.14 for fiscal year 2003 and thereafter. 13.15 (f) A pupil who is any of grades 4 to 6 is counted as 1.06 13.16 pupil units for fiscal year19952002 and one pupil unit for 13.17 fiscal year 2003 and thereafter. 13.18 (g) A pupil who is in any of grades 7 to 12 is counted as 13.19 1.3 pupil units for fiscal year 2002 and 1.15 pupil units for 13.20 fiscal year 2003 and thereafter. 13.21 (h) A pupil who is in the post-secondary enrollment options 13.22 program is counted as 1.3 pupil units for fiscal year 2002 and 13.23 1.15 pupil units for fiscal year 2003 and thereafter. 13.24 Sec. 12. Minnesota Statutes 2000, section 126C.10, 13.25 subdivision 1, is amended to read: 13.26 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal 13.27 year2000 and thereafter2002, the general education revenue for 13.28 each district equals the sum of the district's basic revenue, 13.29 basic skills revenue, training and experience revenue, secondary 13.30 sparsity revenue, elementary sparsity revenue, transportation 13.31 sparsity revenue, total operating capital revenue, equity 13.32 revenue,referendum offset adjustment,transition revenue, and 13.33 supplemental revenue. 13.34 (b) For fiscal year 2003 and later, the general education 13.35 revenue for each district equals the sum of the district's basic 13.36 revenue, basic skills revenue, training and experience revenue, 14.1 secondary sparsity revenue, elementary sparsity revenue, 14.2 transportation sparsity revenue, total operating capital 14.3 revenue, and equity revenue, minus its phased revenue adjustment. 14.4 Sec. 13. Minnesota Statutes 2000, section 126C.10, 14.5 subdivision 2, is amended to read: 14.6 Subd. 2. [BASIC REVENUE.] The basic revenue for each 14.7 district equals the formula allowance times the adjusted 14.8 marginal cost pupil units for the school year.The formula14.9allowance for fiscal year 1998 is $3,581. The formula allowance14.10for fiscal year 1999 is $3,530. The formula allowance for14.11fiscal year 2000 is $3,740.The formula allowance for fiscal 14.12 year 2001and subsequent fiscal yearsis $3,964. The formula 14.13 allowance for fiscal year 2002 is $4,070. The formula allowance 14.14 for fiscal year 2003 and subsequent years is $5,135. 14.15 Sec. 14. Minnesota Statutes 2000, section 126C.10, 14.16 subdivision 3, is amended to read: 14.17 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] For fiscal year 14.18 2002, the compensatory education revenue for each building in 14.19 the district equals the formula allowance times the compensation 14.20 revenue pupil units computed according to section 126C.05, 14.21 subdivision 3. For fiscal year 2003, the compensatory education 14.22 revenue for each building in the district equals the formula 14.23 allowance minus $808 times the compensation revenue pupil units 14.24 computed according to section 126C.05, subdivision 3. For 14.25 fiscal year 2004, the compensatory education revenue for each 14.26 building in the district equals the formula allowance minus $703 14.27 times the compensation revenue pupil units computed according to 14.28 section 126C.05, subdivision 3. For fiscal year 2005, the 14.29 compensatory education revenue for each building in the district 14.30 equals the formula allowance minus $598 times the compensation 14.31 revenue pupil units computed according to section 126C.05, 14.32 subdivision 3. For fiscal year 2006 and later, the compensatory 14.33 education revenue for each building in the district equals the 14.34 formula allowance minus $493 times the compensation revenue 14.35 pupil units computed according to section 126C.05, subdivision 14.36 3. Revenue shall be paid to the district and must be allocated 15.1 according to section 126C.15, subdivision 2. 15.2 Sec. 15. Minnesota Statutes 2000, section 126C.10, 15.3 subdivision 4, is amended to read: 15.4 Subd. 4. [BASIC SKILLS REVENUE.] (a) For fiscal year199915.5and thereafter2002, a school district's basic skills revenue 15.6 equals the sum of: 15.7 (1) compensatory revenue under subdivision 3; plus 15.8 (2) limited English proficiency revenue according to 15.9 section 124D.65, subdivision 5; plus 15.10 (3) $190 times the limited English proficiency pupil units 15.11 according to section 126C.05, subdivision 17; plus 15.12 (4) $22.50 times the number of adjusted marginal cost pupil 15.13 units in kindergarten to grade 8. 15.14 (b) For fiscal year 2003, a school district's basic skills 15.15 revenue equals the sum of: 15.16 (1) compensatory revenue under subdivision 3; plus 15.17 (2) limited English proficiency revenue under section 15.18 124D.65, subdivision 5; plus 15.19 (3) $190 times the limited English proficiency pupil units 15.20 under section 126C.05, subdivision 17. 15.21 Sec. 16. Minnesota Statutes 2000, section 126C.10, 15.22 subdivision 5, is amended to read: 15.23 Subd. 5. [TRAINING AND EXPERIENCE REVENUE.] (a) For fiscal 15.24 year 2002, the training and experience revenue for each district 15.25 equals the greater of zero or the result of the following 15.26 computation: 15.27 (1) subtract .8 from the training and experience index; 15.28 (2) multiply the result in clause (1) by the product of 15.29 $660 times the adjusted marginal cost pupil units for the school 15.30 year. 15.31 (b) For fiscal year 2003, a school district's training and 15.32 experience revenue equals the district's fiscal year 2001 15.33 training and experience revenue per adjusted marginal cost pupil 15.34 unit, times 44.4 percent, times the adjusted marginal cost pupil 15.35 units for the school year. 15.36 (c) For fiscal year 2004, a school district's training and 16.1 experience revenue equals the district's fiscal year 2001 16.2 training and experience revenue per adjusted marginal cost pupil 16.3 unit, times 22.2 percent, times the adjusted marginal cost pupil 16.4 units for the school year. 16.5 (d) For fiscal year 2005 and later, a school district's 16.6 training and experience revenue equals zero. 16.7 Sec. 17. Minnesota Statutes 2000, section 126C.10, 16.8 subdivision 7, is amended to read: 16.9 Subd. 7. [SECONDARY SPARSITY REVENUE.] (a) For fiscal year 16.10 2002, a district's secondary sparsity revenue for a school year 16.11 equals the sum of the results of the following calculation for 16.12 each qualifying high school in the district: 16.13 (1) the formula allowance for the school year, multiplied 16.14 by 16.15 (2) the secondary average daily membership of pupils served 16.16 in the high school, multiplied by 16.17 (3) the quotient obtained by dividing 400 minus the 16.18 secondary average daily membership by 400 plus the secondary 16.19 daily membership, multiplied by 16.20 (4) the lesser of 1.5 or the quotient obtained by dividing 16.21 the isolation index minus 23 by ten. 16.22 (b) For fiscal year 2003, a district's secondary sparsity 16.23 revenue for a school year equals the sum of the results of the 16.24 following calculation for each qualifying high school in the 16.25 district: 16.26 (1) the formula allowance for the school year minus $808, 16.27 multiplied by 16.28 (2) the secondary average daily membership of pupils served 16.29 in the high school, multiplied by 16.30 (3) the quotient obtained by dividing 400 minus the 16.31 secondary average daily membership by 400 plus the secondary 16.32 daily membership, multiplied by 16.33 (4) the lesser of 1.5 or the quotient obtained by dividing 16.34 the isolation index minus 23 by ten. 16.35 (c) For fiscal year 2004, a district's secondary sparsity 16.36 revenue for a school year equals the sum of the results of the 17.1 following calculation for each qualifying high school in the 17.2 district: 17.3 (1) the formula allowance for the school year minus $703, 17.4 multiplied by 17.5 (2) the secondary average daily membership of pupils served 17.6 in the high school, multiplied by 17.7 (3) the quotient obtained by dividing 400 minus the 17.8 secondary average daily membership, multiplied by 17.9 (4) the lesser of 1.5 or the quotient obtained by dividing 17.10 the isolation index minus 23 by ten. 17.11 (d) For fiscal year 2005, a district's secondary sparsity 17.12 revenue for a school year equals the sum of the results of the 17.13 following calculation for each qualifying high school in the 17.14 district: 17.15 (1) the formula allowance for the school year minus $598, 17.16 multiplied by 17.17 (2) the secondary average daily membership of pupils served 17.18 in the high school, multiplied by 17.19 (3) the quotient obtained by dividing 400 minus the 17.20 secondary average daily membership, multiplied by 17.21 (4) the lesser of 1.5 or the quotient obtained by dividing 17.22 the isolation index minus 23 by ten. 17.23 (e) For fiscal year 2006 and later, a district's secondary 17.24 sparsity revenue for a school year equals the sum of the results 17.25 of the following calculation for each qualifying high school in 17.26 the district: 17.27 (1) the formula allowance for the school year minus $493, 17.28 multiplied by 17.29 (2) the secondary average daily membership of pupils served 17.30 in the high school, multiplied by 17.31 (3) the quotient obtained by dividing 400 minus the 17.32 secondary average daily membership, multiplied by 17.33 (4) the lesser of 1.5 or the quotient obtained by dividing 17.34 the isolation index minus 23 by ten. 17.35 (f) A newly formed district that is the result of districts 17.36 combining under the cooperation and combination program or 18.1 consolidating under section 123A.48 must receive secondary 18.2 sparsity revenue equal to the greater of: (1) the amount 18.3 calculated under paragraph (a) for the combined district; or (2) 18.4 the sum of the amounts of secondary sparsity revenue the former 18.5 districts had in the year prior to consolidation, increased for 18.6 any subsequent changes in the secondary sparsity formula. 18.7 Sec. 18. Minnesota Statutes 2000, section 126C.10, 18.8 subdivision 8, is amended to read: 18.9 Subd. 8. [ELEMENTARY SPARSITY REVENUE.] (a) For fiscal 18.10 year 2002, a district's elementary sparsity revenue equals the 18.11 sum of the following amounts for each qualifying elementary 18.12 school in the district: 18.13 (1) the formula allowance for the year, multiplied by 18.14 (2) the elementary average daily membership of pupils 18.15 served in the school, multiplied by 18.16 (3) the quotient obtained by dividing 140 minus the 18.17 elementary average daily membership by 140 plus the average 18.18 daily membership. 18.19 (b) For fiscal year 2003, a district's elementary sparsity 18.20 revenue equals the sum of the following amounts for each 18.21 qualifying elementary school in the district: 18.22 (1) the formula allowance for the year minus $808, 18.23 multiplied by 18.24 (2) the elementary average daily membership of pupils 18.25 served in the school, multiplied by 18.26 (3) the quotient obtained by dividing 140 minus the 18.27 elementary average daily membership by 140 plus the average 18.28 daily membership. 18.29 (c) For fiscal year 2004, a district's elementary sparsity 18.30 revenue equals the sum of the following amounts for each 18.31 qualifying elementary school in the district: 18.32 (1) the formula allowance for the year minus $703, 18.33 multiplied by 18.34 (2) the elementary average daily membership of pupils 18.35 served in the school, multiplied by 18.36 (3) the quotient obtained by dividing 140 minus the 19.1 elementary average daily membership by 140 plus the average 19.2 daily membership. 19.3 (d) For fiscal year 2005, a district's elementary sparsity 19.4 revenue equals the sum of the following amounts for each 19.5 qualifying elementary school in the district: 19.6 (1) the formula allowance for the year minus $598, 19.7 multiplied by 19.8 (2) the elementary average daily membership of pupils 19.9 served in the school, multiplied by 19.10 (3) the quotient obtained by dividing 140 minus the 19.11 elementary average daily membership by 140 plus the average 19.12 daily membership. 19.13 (e) For fiscal year 2006 and later, a district's elementary 19.14 sparsity revenue equals the sum of the following amounts for 19.15 each qualifying elementary school in the district: 19.16 (1) the formula allowance for the year minus $493, 19.17 multiplied by 19.18 (2) the elementary average daily membership of pupils 19.19 served in the school, multiplied by 19.20 (3) the quotient obtained by dividing 140 minus the 19.21 elementary average daily membership by 140 plus the average 19.22 daily membership. 19.23 Sec. 19. Minnesota Statutes 2000, section 126C.10, 19.24 subdivision 13, is amended to read: 19.25 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 19.26 fiscal year2000 and thereafter2002, total operating capital 19.27 revenue for a district equals the amount determined under 19.28 paragraph (b) or(c)(e), plus $73 times the adjusted marginal 19.29 cost pupil units for the school year. The revenue must be 19.30 placed in a reserved account in the general fund and may only be 19.31 used according to paragraph(d)(f) or subdivision 14. 19.32 (b) For fiscalyears 2000 and lateryear 2002, capital 19.33 revenue for a district equals $100 times the district's 19.34 maintenance cost index times its adjusted marginal cost pupil 19.35 units for the school year. 19.36 (c) For fiscal year 2003 and later, total operating capital 20.1 revenue for a district equals the amount determined under 20.2 paragraph (b) or (e), plus $81 times the adjusted marginal cost 20.3 pupil units for the school year. The revenue must be placed in 20.4 a reserved account in the general fund and may only be used 20.5 according to paragraph (f) or subdivision 14. 20.6 (d) For fiscal year 2003 and later, capital revenue for a 20.7 district equals $111 times the district's maintenance cost index 20.8 times its adjusted marginal cost pupil units for the school year. 20.9 (e) For fiscal years 2000 and later, the revenue for a 20.10 district that operates a program under section 124D.128, is 20.11 increased by an amount equal to $30 times the number of marginal 20.12 cost pupil units served at the site where the program is 20.13 implemented. 20.14(d)(f) For fiscal years 2001and, 2002, and 2003, the 20.15 district must reserve an amount equal to $5 per adjusted 20.16 marginal cost pupil unit for telecommunication access costs. 20.17 Reserve revenue under this paragraph must first be used to pay 20.18 for ongoing or recurring telecommunication access costs, 20.19 including access to datalines,and videolines20.20 connections,orincluding Internet access. Any revenue 20.21 remaining after covering all ongoing or recurring access costs 20.22 may be used for computer hardware or equipment. 20.23 Sec. 20. Minnesota Statutes 2000, section 126C.10, 20.24 subdivision 18, is amended to read: 20.25 Subd. 18. [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 20.26 For fiscal year 2002, a district's transportation sparsity 20.27 allowance equals the greater of zero or the result of the 20.28 following computation: 20.29 (i) Multiply the formula allowance according to subdivision 20.30 2, by .1469. 20.31 (ii) Multiply the result in clause (i) by the district's 20.32 sparsity index raised to the 26/100 power. 20.33 (iii) Multiply the result in clause (ii) by the district's 20.34 density index raised to the 13/100 power. 20.35 (iv) Multiply the formula allowance according to 20.36 subdivision 2, by .0485. 21.1 (v) Subtract the result in clause (iv) from the result in 21.2 clause (iii). 21.3 (b) For fiscal year 2003 and later, a district's 21.4 transportation sparsity allowance equals the greater of zero or 21.5 the result of the following computation: 21.6 (i) Multiply the formula allowance according to subdivision 21.7 2, by .14. 21.8 (ii) Multiply the result in clause (i) by the district's 21.9 sparsity index raised to the 28/100 power. 21.10 (iii) Multiply the result in clause (ii) by the district's 21.11 density index raised to the 14/100 power. 21.12 (iv) Multiply the formula allowance according to 21.13 subdivision 2, by .0425. 21.14 (v) Subtract the result in clause (iv) from the result in 21.15 clause (iii). 21.16 (c) Transportation sparsity revenue is equal to the 21.17 transportation sparsity allowance times the adjusted marginal 21.18 cost pupil units. 21.19 Sec. 21. Minnesota Statutes 2000, section 126C.10, 21.20 subdivision 24, is amended to read: 21.21 Subd. 24. [EQUITY REVENUE QUALIFICATION.] (a) For fiscal 21.22 year 2002, a school district qualifies for equity revenue if the 21.23 school district's adjusted marginal cost pupil unit amount of 21.24 basic revenue, supplemental revenue, transition revenue, and 21.25 referendum revenue is less than the value of the school district 21.26 at or immediately above the 90th percentile of school districts 21.27 in its equity region for those revenue categories and the school 21.28 district's administrative offices are not located in a city of 21.29 the first class on July 1, 1999. 21.30 (b)Equity revenue for a qualifying district that receives21.31referendum revenue under section 126C.17, subdivision 4, equals21.32the product of (1) the district's adjusted marginal cost pupil21.33units for that year; times (2) the sum of (i) $10, plus (ii)21.34$30, times the school district's equity index computed under21.35subdivision 27.21.36(c) Equity revenue for a qualifying district that does not22.1receive referendum revenue under section 126C.17, subdivision 4,22.2equals the product of the district's adjusted marginal cost22.3pupil units for that year times $10For fiscal year 2003 and 22.4 thereafter, a school district qualifies for equity revenue if 22.5 the school district's adjusted marginal cost pupil unit amount 22.6 of basic revenue and referendum revenue is less than the value 22.7 of the school district at or immediately above the 90th 22.8 percentile of school districts in its equity region for those 22.9 revenue categories and the school district's administrative 22.10 offices were not located in a city of the first class on July 1, 22.11 1999. 22.12 Sec. 22. Minnesota Statutes 2000, section 126C.10, is 22.13 amended by adding a subdivision to read: 22.14 Subd. 24a. [METRO EQUITY REVENUE.] (a) For fiscal year 22.15 2002, equity revenue for a qualifying district located in the 22.16 metro equity region that receives referendum revenue under 22.17 section 126C.17, subdivision 4, equals the product of: 22.18 (1) the district's adjusted marginal cost pupil units for 22.19 that year; times 22.20 (2) the sum of: 22.21 (i) $20, plus 22.22 (ii) $60, times the school district's equity index computed 22.23 under subdivision 27. 22.24 (b) For fiscal year 2003 and thereafter, equity revenue for 22.25 a qualifying district located in the metro equity region that 22.26 receives referendum revenue under section 126C.17, subdivision 22.27 4, in fiscal year 2002 or has a board-approved referendum under 22.28 section 126C.18, subdivision 5, equals the product of: 22.29 (1) the district's adjusted marginal cost pupil units for 22.30 that year; times 22.31 (2) the sum of: 22.32 (i) $30, plus 22.33 (ii) $90, times the school district's equity index computed 22.34 under subdivision 27. 22.35 (c) For fiscal year 2002, equity revenue for a qualifying 22.36 district located in the metro equity region that does not 23.1 receive referendum revenue under section 126C.17, subdivision 4, 23.2 equals the product of the district's adjusted marginal cost 23.3 pupil units for that year times $20. 23.4 (d) For fiscal year 2003 and thereafter, equity revenue for 23.5 a qualifying district located in the metro equity region that 23.6 did not receive referendum revenue in fiscal year 2002 under 23.7 section 126C.17, subdivision 4, and does not have a 23.8 board-approved referendum under section 126C.18, subdivision 5, 23.9 equals the product of the district's adjusted marginal cost 23.10 pupil units for that year times $30. 23.11 Sec. 23. Minnesota Statutes 2000, section 126C.10, is 23.12 amended by adding a subdivision to read: 23.13 Subd. 24b. [GREATER MINNESOTA EQUITY REVENUE.] (a) For 23.14 fiscal year 2002, equity revenue for a qualifying district 23.15 located in the greater Minnesota equity region that receives 23.16 referendum revenue under section 126C.17, subdivision 4, equals 23.17 the product of: 23.18 (1) the district's adjusted marginal cost pupil units for 23.19 that year; times 23.20 (2) the sum of: 23.21 (i) $13, plus 23.22 (ii) $39, times the school district's equity index computed 23.23 under subdivision 27. 23.24 (b) For fiscal year 2003 and thereafter, equity revenue for 23.25 a qualifying district located in the greater Minnesota equity 23.26 region that receives referendum revenue in fiscal year 2002 23.27 under section 126C.17, subdivision 4, or has a board-approved 23.28 referendum under section 126C.18, subdivision 5, equals the 23.29 product of: 23.30 (1) the district's adjusted marginal cost pupil units for 23.31 that year; times 23.32 (2) the sum of: 23.33 (i) $14, plus 23.34 (ii) $42, times the school district's equity index computed 23.35 under subdivision 27. 23.36 (c) For fiscal year 2002, equity revenue for a qualifying 24.1 district located in the greater Minnesota equity region that 24.2 does not receive referendum revenue under section 126C.17, 24.3 subdivision 4, equals the product of the district's adjusted 24.4 marginal cost pupil units for that year times $13. 24.5 (d) For fiscal year 2003, equity revenue for a qualifying 24.6 district located in the greater Minnesota equity region that did 24.7 not receive referendum revenue in fiscal year 2002 under section 24.8 126C.17, subdivision 4, and does not have a board-approved 24.9 referendum under section 126C.18, subdivision 5, equals the 24.10 product of the district's adjusted marginal cost pupil units for 24.11 that year times $14. 24.12 Sec. 24. Minnesota Statutes 2000, section 126C.10, 24.13 subdivision 28, is amended to read: 24.14 Subd. 28. [EQUITY REGION.] For the purposes of computing 24.15 equity revenue under subdivision 23, a district whose 24.16 administrative offices on July 1, 1999, is located in Anoka, 24.17 Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 24.18 part of the metro equity region. Districts whose administrative 24.19 offices on July 1, 1999, are not located in Anoka, Carver, 24.20 Dakota, Hennepin, Ramsey, Scott, or Washington county are part 24.21 of theruralgreater Minnesota equity region. 24.22 Sec. 25. Minnesota Statutes 2000, section 126C.10, is 24.23 amended by adding a subdivision to read: 24.24 Subd. 29. [PHASED REVENUE ALLOWANCE.] (a) If the sum of a 24.25 district's fiscal year 2003 initial referendum allowance plus 24.26 its referendum conversion allowance is less than $461 and the 24.27 district is not part of the metro equity region under 24.28 subdivision 28, the district shall receive a phased revenue 24.29 allowance. 24.30 (b) For fiscal year 2003, a district's phased revenue 24.31 allowance is equal to $461 minus the sum of a district's fiscal 24.32 year 2003 initial referendum allowance, plus its fiscal year 24.33 referendum conversion allowance, times 75 percent. 24.34 (c) For fiscal year 2004, a district's phased revenue 24.35 allowance is equal to $461 minus the sum of a district's fiscal 24.36 year 2003 initial referendum allowance, plus its referendum 25.1 conversion allowance, times 50 percent. 25.2 (d) For fiscal year 2005, a district's phased revenue 25.3 allowance is equal to $461 minus the sum of a district's fiscal 25.4 year 2003 initial referendum allowance, plus its referendum 25.5 conversion allowance, times 25 percent. 25.6 (e) For fiscal year 2006 and later, a district's phased 25.7 revenue allowance is equal to zero. 25.8 [EFFECTIVE DATE.] This section is effective for revenue for 25.9 fiscal year 2003 and later. 25.10 Sec. 26. Minnesota Statutes 2000, section 126C.10, is 25.11 amended by adding a subdivision to read: 25.12 Subd. 30. [PHASED REVENUE ADJUSTMENT.] For fiscal years 25.13 2003, 2004, and 2005, a school district's phased revenue 25.14 adjustment is equal to its phased revenue allowance for that 25.15 year multiplied by its adjusted marginal cost pupil units. 25.16 [EFFECTIVE DATE.] This section is effective for revenue for 25.17 fiscal year 2003 and later. 25.18 Sec. 27. Minnesota Statutes 2000, section 126C.12, 25.19 subdivision 1, is amended to read: 25.20 Subdivision 1. [REVENUE.] (a) Of a district's general 25.21 education revenue for fiscal year2000 and thereafter2002 each 25.22 school district shall reserve an amount equal to the formula 25.23 allowance multiplied by the following calculation: 25.24 (1) the sum of adjusted marginal cost pupils in average 25.25 daily membership, according to section 126C.05, subdivision 5, 25.26 in kindergarten times .057; plus 25.27 (2) the sum of adjusted marginal cost pupils in average 25.28 daily membership, according to section 126C.05, subdivision 5, 25.29 in grades 1 to 3 times .115; plus 25.30 (3) the sum of adjusted marginal cost pupils in average 25.31 daily membership, according to section 126C.05, subdivision 5, 25.32 in grades 4 to 6 times .06. 25.33 (b) Of a district's general education revenue for fiscal 25.34 year 2003 and later, each school district shall reserve an 25.35 amount equal to: 25.36 (1) the product of the formula allowance; times 26.1 (2) six percent; times 26.2 (3) the sum of adjusted marginal cost pupil units according 26.3 to section 126C.05, subdivision 5, in kindergarten through grade 26.4 6. 26.5 Sec. 28. Minnesota Statutes 2000, section 126C.12, 26.6 subdivision 2, is amended to read: 26.7 Subd. 2. [INSTRUCTOR DEFINEDDEFINITIONS.]Primary26.8instructor(a) "Classroom teacher" means, for the purpose of the 26.9 annual report in subdivision 6, for collecting consistent state 26.10 data, and for determining the cost of reducing actual class size 26.11 to a level of 1 to 17, a public employee licensed by the board 26.12 of teaching who is authorized to teach all subjects to children 26.13 in any grade kindergarten through grade 6 and whose duties are 26.14 full-time regular classroom instruction, excluding a teacher for 26.15 whom federal aids are received or for whom categorical aids are 26.16 received pursuant to section 125A.76 or who is an itinerant 26.17 teacher or provides instruction outside of the regular 26.18 classroom. Except as provided in section 122A.68, subdivision 26.19 6,instructorclassroom teacher does not include supervisory and 26.20 support personnel, except school social workers asdefined in 26.21 section 122A.15.An instructorA classroom teacher whose duties 26.22 are less than full-time instruction must be included as an 26.23 equivalent only for the number of hours of instruction ingrades26.24 kindergarten through6grade 3. 26.25 (b) "Class size" means the district wide ratio at each 26.26 grade level of the number of full-time students in kindergarten 26.27 through grade 3 served at least 40 percent of the time in 26.28 regular classrooms to the number of full-time classroom teachers 26.29 in kindergarten through grade 3, determined as of October 1 of 26.30 each school year. 26.31 Sec. 29. Minnesota Statutes 2000, section 126C.12, 26.32 subdivision 3, is amended to read: 26.33 Subd. 3. [INSTRUCTION CONTACT TIME.] Instruction may be 26.34 provided by aprimary instructor,classroom teacher or by a team 26.35 ofinstructorsclassroom teachers, or by a teacher resident 26.36 supervised by aprimary instructorclassroom teacher. The 27.1 district must maximizeinstructorclassroom teacher to learner 27.2 average instructional contact time in the core subjects of 27.3 reading and mathematics. 27.4 Sec. 30. Minnesota Statutes 2000, section 126C.12, 27.5 subdivision 4, is amended to read: 27.6 Subd. 4. [REVENUE USE.] (a)Revenue must be used according27.7to either paragraph (b) or (c).27.8(b)Revenue must be used to reduce and maintain the 27.9 district'sinstructor to learner ratiosaverage class size in 27.10 kindergarten through grade63 to a level of 1 to 17 on 27.11 average.The district must prioritize the use of the revenue to27.12attain this level initially in kindergarten and grade 1 and then27.13through the subsequent grades as revenue is available.27.14(c) The revenue may be used to prepare and use an27.15individualized learning plan for each learner.(b) A district 27.16 must not increase the district wideinstructor-to-learner ratios27.17 class sizes in other grades as a result of 27.18 reducinginstructor-to-learner ratiosclass sizes in 27.19 kindergarten through grade63. Revenue may not be used to 27.20 provide instructor preparationtime. A district may use a 27.21 portion of the revenue reserved under this section to employ up 27.22 to the same number of full-time equivalent education assistants 27.23 or aides as the district employed during the 1992-1993 school 27.24 year under Minnesota Statutes 1992, section 124.331, subdivision 27.25 2 through fiscal year 2002. Beginning in fiscal year 2003, 27.26 class size reduction revenue may only be reserved to employ 27.27 classroom teachers contributing to lower class sizes in 27.28 kindergarten through grade 3. 27.29 Sec. 31. Minnesota Statutes 2000, section 126C.12, 27.30 subdivision 5, is amended to read: 27.31 Subd. 5. [ADDITIONAL REVENUE USE.] If the board of a 27.32 district determines that the district has achieved and is 27.33 maintaining theinstructor-to-learner ratiosclass sizes 27.34 specified in subdivision 4and is using individualized learning27.35plans, the board may use the revenue to reduce class size in 27.36 grades 4, 5, and 6, provide all-day, everyday kindergarten, 28.1 prepare and use individualized learning plans, improve program 28.2 offerings, purchase instructional materialand, services, or 28.3 technology, or provide staff development needed for reduced 28.4instructor-to-learner ratios. If additional revenue remains,28.5the district must use the revenue to improve program offerings,28.6including programs provided through interactive television,28.7throughout the district or other general education28.8purposesclass sizes. 28.9 Sec. 32. Minnesota Statutes 2000, section 126C.12, is 28.10 amended by adding a subdivision to read: 28.11 Subd. 6. [ANNUAL REPORT.] By December 1 of each year, 28.12 districts receiving revenue under subdivision 1 shall make 28.13 available to the public a report on the amount of revenue the 28.14 district has received and the use of the revenue. This report 28.15 shall be in the form and manner determined by the commissioner 28.16 and shall include the district average class sizes in 28.17 kindergarten through grade 6 as of October 1 of the current 28.18 school year and the class sizes for each site serving 28.19 kindergarten through grade 6 students in the district. A copy 28.20 of the report shall be filed with the commissioner by December 28.21 15. 28.22 Sec. 33. Minnesota Statutes 2000, section 126C.125, is 28.23 amended to read: 28.24 126C.125 [CLASS SIZE, ALL-DAY KINDERGARTEN,ANDSPECIAL 28.25 EDUCATION STUDENT-TO-INSTRUCTOR RATIO, AND GIFTED AND TALENTED 28.26 RESERVE.] 28.27 (a) A district is required to reserve $3 in fiscal year 28.28 2000 and $11 in fiscal year 2001 and later per adjusted marginal 28.29 cost pupil unit for class size reduction, all-day kindergarten, 28.30 or for reducing special education student-to-instructor ratios. 28.31 The school board of each district must pass a resolution stating 28.32 which one of these three programs will be funded with this 28.33 reserve. The reserve amount under this section must be 28.34 allocated to the education site as defined in section 123B.04, 28.35 subdivision 1, according to a plan adopted by the school board. 28.36 (b) A district is required to reserve $5 in fiscal year 29.1 2002 and later per adjusted marginal cost pupil unit for gifted 29.2 and talented programs. 29.3 Sec. 34. [126C.126] [REALLOCATING GENERAL EDUCATION 29.4 REVENUE FOR ALL-DAY KINDERGARTEN.] 29.5 (a) In order to provide additional revenue for an optional 29.6 all-day kindergarten program, a district may reallocate general 29.7 education revenue attributable to 12th grade students who have: 29.8 (1) graduated early under section 120B.07; or 29.9 (2) adopted a policy to allow 12th grade students to attend 29.10 school half time. 29.11 (b) General education revenue attributable to the 12th 29.12 grade student either graduating early or attending school half 29.13 time under paragraph (a) must be paid to the district as though 29.14 the student was in attendance for the entire year. 29.15 (c) A school district that has adopted a policy to allow 29.16 12th grade students to attend school half time must notify the 29.17 commissioner by July 15 for the following school year. 29.18 [EFFECTIVE DATE.] This section is effective for fiscal year 29.19 2003 and later. 29.20 Sec. 35. Minnesota Statutes 2000, section 126C.13, 29.21 subdivision 1, is amended to read: 29.22 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 29.23 commissioner must establish the general education tax rate by 29.24 July 1 of each year for levies payable in the following year. 29.25 The general education tax capacity rate must be a rate, rounded 29.26 up to the nearest hundredth of a percent, that, when applied to 29.27 the adjusted net tax capacity for all districts, raises the 29.28 amount specified in this subdivision. The general education tax 29.29 rate must be the rate that raises $1,330,000,000 for fiscal year 29.30 2001 and fiscal year 2002, and $1,533,000,000 for fiscal year 29.31 2003, and later fiscal years. The general education tax rate 29.32 may not be changed due to changes or corrections made to a 29.33 district's adjusted net tax capacity after the tax rate has been 29.34 established. 29.35 Sec. 36. Minnesota Statutes 2000, section 126C.15, 29.36 subdivision 2, is amended to read: 30.1 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 30.2 allocate its compensatory revenue to each school building in the 30.3 district where the children who have generated the revenue are 30.4 served. 30.5 (b) Notwithstanding paragraph (a), for fiscal years 1999, 30.6 2000,and2001, 2002, and 2003, upon approval by the 30.7 commissioner, a district may allocate up to five percent of the 30.8 amount of compensatory revenue that the district would have 30.9 received under Minnesota Statutes 1996, section 124A.22, 30.10 subdivision 3, for fiscal year 1998, computed using a basic 30.11 formula allowance of $3,581 to school sites according to a plan 30.12 adopted by the school board. 30.13 (c) For the purposes of this section and section 126C.05, 30.14 subdivision 3, "building" means education site as defined in 30.15 section 123B.04, subdivision 1. 30.16 (d) If the pupil is served at a site other than one owned 30.17 and operated by the district, the revenue shall be paid to the 30.18 district and used for services for pupils who generate the 30.19 revenue. 30.20 Sec. 37. Minnesota Statutes 2000, section 126C.16, is 30.21 amended by adding a subdivision to read: 30.22 Subd. 4. [PUPIL WEIGHTING ADJUSTMENT.] (a) The department 30.23 must adjust each district's referendum allowance for referendum 30.24 authority approved before July 1, 2001, for fiscal year 2003 and 30.25 all later years for which the revenue is authorized according to 30.26 this subdivision. The adjusted referendum allowance equals the 30.27 referendum allowance according to subdivision 3 and section 30.28 126C.17, times the ratio of the number of resident marginal cost 30.29 pupil units the district would have counted for fiscal year 2003 30.30 under Minnesota Statutes 2000, section 126C.05, subdivision 6, 30.31 to the district's resident marginal cost pupil units for fiscal 30.32 year 2003. 30.33 (b) For fiscal year 2003 and later, the department must 30.34 adjust the fiscal year 1994 referendum allowance used in 30.35 computing the referendum allowance limit under section 126C.17, 30.36 subdivision 2, according to this subdivision. The adjusted 31.1 fiscal year 1994 referendum allowance for a district equals the 31.2 district's fiscal year 1994 referendum allowance times the ratio 31.3 of the number of resident marginal cost pupil units the district 31.4 would have counted for fiscal year 2003 under Minnesota Statutes 31.5 2000, section 126C.05, subdivision 6, to the district's resident 31.6 marginal cost pupil units for fiscal year 2003. 31.7 Sec. 38. Minnesota Statutes 2000, section 126C.17, 31.8 subdivision 1, is amended to read: 31.9 Subdivision 1. [REFERENDUM ALLOWANCE.] (a) For fiscal year 31.10 2002, a district's referendum revenue allowance equals 31.11 thereferendum revenue authority for that year divided by its31.12resident marginal cost pupil units for that school year.sum of 31.13 the allowance under section 126C.16, subdivision 2, plus any 31.14 additional allowance per resident marginal cost pupil unit 31.15 authorized under subdivision 9 for fiscal year 2002. 31.16 (b) For fiscal year 2003 and later, a district's initial 31.17 referendum revenue allowance equals the sum of the allowance 31.18 under section 126C.16, subdivision 2, plus any additional 31.19 allowance per resident marginal cost pupil unit authorized under 31.20 subdivision 9 before May 1, 2001, for fiscal year 2002 and 31.21 later, plus the referendum conversion allowance approved under 31.22 subdivision 13, minus $461. For districts with more than one 31.23 referendum authority, the reduction must be computed separately 31.24 for each authority. The reduction must be applied first to the 31.25 referendum conversion allowance and next to the authority with 31.26 the earliest expiration date. A district's initial referendum 31.27 revenue allowance may not be less than zero. 31.28 (c) For fiscal year 2003 and later, a district's referendum 31.29 revenue allowance equals the initial referendum allowance plus 31.30 any additional allowance per resident marginal cost pupil unit 31.31 authorized under subdivision 9 after April 30, 2001, for fiscal 31.32 year 2003 and later. 31.33 Sec. 39. Minnesota Statutes 2000, section 126C.17, 31.34 subdivision 2, is amended to read: 31.35 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 31.36 subdivision 1, for fiscal year 2002, a district's referendum 32.1 allowance must not exceed the greater of: 32.2 (1) the district's referendum allowance for fiscal year 32.3 1994; 32.4 (2) 25 percent of the formula allowance; or 32.5 (3) for a newly reorganized district created after July 1, 32.6 1994, the sum of the referendum revenue authority for the 32.7 reorganizing districts for the fiscal year preceding the 32.8 reorganization, divided by the sum of the resident marginal cost 32.9 pupil units of the reorganizing districts for the fiscal year 32.10 preceding the reorganization. 32.11 (b) Notwithstanding subdivision 1, for fiscal year 2003 and 32.12 later fiscal years, a district's referendum allowance must not 32.13 exceed the greater of: 32.14 (1) the sum of a district's referendum allowance for fiscal 32.15 year 1994 plus its referendum conversion allowance for fiscal 32.16 year 2003, minus $461; 32.17 (2) 13.2 percent of the formula allowance; 32.18 (3) for a newly reorganized district created on July 1, 32.19 2002, the referendum revenue authority for each reorganizing 32.20 district in the year preceding reorganization divided by its 32.21 resident marginal cost pupil units for the year preceding 32.22 reorganization, minus $461; or 32.23 (4) for a newly reorganized district created after July 1, 32.24 2002, the referendum revenue authority for each reorganizing 32.25 district in the year preceding reorganization divided by its 32.26 resident marginal cost pupil units for the year preceding 32.27 reorganization. 32.28 Sec. 40. Minnesota Statutes 2000, section 126C.17, 32.29 subdivision 5, is amended to read: 32.30 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) A 32.31 district's referendum equalization revenue equals the referendum 32.32 equalization allowance times the district's resident marginal 32.33 cost pupil units for that year. 32.34 (b) The referendum equalization allowance equals $350 for 32.35 fiscal year 2000and, $415 for fiscalyearyears 2001 and 32.36 2002, and $150 for fiscal year 2003 and later. 33.1 (c) Referendum equalization revenue must not exceed a 33.2 district's total referendum revenue for that year. 33.3 Sec. 41. Minnesota Statutes 2000, section 126C.17, 33.4 subdivision 6, is amended to read: 33.5 Subd. 6. [REFERENDUM EQUALIZATION LEVY.] (a) A district's 33.6 referendum equalization levy for a referendum levied against the 33.7 referendum market value of all taxable property as defined in 33.8 section 126C.01, subdivision 3, equals the district's referendum 33.9 equalization revenue times the lesser of one or the ratio of the 33.10 district's referendum market value per resident marginal cost 33.11 pupil unit to$476,000$528,000. 33.12 (b) A district's referendum equalization levy for a 33.13 referendum levied against the net tax capacity of all taxable 33.14 property equals the district's referendum equalization revenue 33.15 times the lesser of one or the ratio of the district's adjusted 33.16 net tax capacity per resident marginal cost pupil unit to $8,404. 33.17 [EFFECTIVE DATE.] This section is effective for revenue for 33.18 fiscal year 2003 and later. 33.19 Sec. 42. Minnesota Statutes 2000, section 126C.17, is 33.20 amended by adding a subdivision to read: 33.21 Subd. 13. [REFERENDUM CONVERSION ALLOWANCE.] A school 33.22 district that received supplemental or transition revenue in 33.23 fiscal year 2002 may convert its supplemental revenue conversion 33.24 allowance and transition revenue conversion allowance to 33.25 additional referendum allowance under subdivision 1 for fiscal 33.26 year 2003 and thereafter. A majority of the school board must 33.27 approve the conversion at a public meeting before November 1, 33.28 2001. For a district with other referendum authority, the 33.29 referendum conversion allowance approved by the board continues 33.30 until the portion of the district's other referendum authority 33.31 with the earliest expiration date after June 30, 2006, expires. 33.32 For a district with no other referendum authority, the 33.33 referendum conversion allowance approved by the board continues 33.34 until June 30, 2012. 33.35 Sec. 43. Minnesota Statutes 2000, section 126C.18, is 33.36 amended by adding a subdivision to read: 34.1 Subd. 5. [BOARD AUTHORITY.] For a district that does not 34.2 receive referendum revenue under section 126C.17, subdivision 4, 34.3 a board may, by July 1, by a resolution of a majority of its 34.4 board, authorize a referendum allowance according to section 34.5 126C.17, subdivision 1, for fiscal year 2003 and thereafter, of 34.6 at least $50, but no more than $75. The board-approved 34.7 referendum allowance under this subdivision shall be levied and 34.8 paid according to section 126C.17. The board must notify the 34.9 commissioner of any amount authorized by the board. The maximum 34.10 length of the referendum in this subdivision is limited to six 34.11 years. 34.12 [EFFECTIVE DATE.] This section is effective for revenue for 34.13 fiscal year 2003. 34.14 Sec. 44. Minnesota Statutes 2000, section 126C.41, 34.15 subdivision 2, is amended to read: 34.16 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] A district 34.17 may levy an amount up to the amount the district is required by 34.18 the collective bargaining agreement in effect on March 30, 1992, 34.19 to pay for health insurance or unreimbursed medical expenses for 34.20 licensed and nonlicensed employees who have terminated services 34.21 in the employing district and withdrawn from active teaching 34.22 service or other active service, as applicable, before July 1, 34.23 1992. The total amount of the levy each year may not 34.24 exceed$300,000$600,000. 34.25 Sec. 45. Minnesota Statutes 2000, section 127A.41, 34.26 subdivision 8, is amended to read: 34.27 Subd. 8. [APPROPRIATION TRANSFERS.] If a direct 34.28 appropriation from the general fund to the department for any 34.29 education aid or grant authorized in this chapter and chapters 34.30 122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 34.31 appropriations under sections 124D.135, 124D.16, 124D.20, 34.32 124D.21, 124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 34.33 124D.56, exceeds the amount required, the commissioner may 34.34 transfer the excess to any education aid or grant appropriation 34.35 that is insufficient. However, section 126C.20 applies to a 34.36 deficiency in the direct appropriation for general education 35.1 aid. Excess appropriations must be allocated proportionately 35.2 among aids or grants that have insufficient appropriations. The 35.3 commissioner of finance shall make the necessary transfers among 35.4 appropriations according to the determinations of the 35.5 commissioner. If the amount of the direct appropriation for the 35.6 aid or grant plus the amount transferred according to this 35.7 subdivision is insufficient, the commissioner shall prorate the 35.8 available amount among eligible districts. The state is not 35.9 obligated for any additional amounts. 35.10 Sec. 46. Minnesota Statutes 2000, section 127A.51, is 35.11 amended to read: 35.12 127A.51 [STATEWIDE AVERAGE REVENUE.] 35.13 By October 1 of each year the commissioner must estimate 35.14 the statewide average adjusted general revenue per adjusted 35.15 marginal cost pupil unit and the disparity in adjusted general 35.16 revenue among pupils and districts by computing the ratio of the 35.17 ninety-fifth percentile to the fifth percentile of adjusted 35.18 general revenue. The commissioner must provide that information 35.19 to all districts. 35.20 If the disparity in adjusted general revenue as measured by 35.21 the ratio of the ninety-fifth percentile to the fifth percentile 35.22 increases in any year, the commissioner shall recommend to the 35.23 legislature options for change in the general education formula 35.24 that will limit the disparity in adjusted general revenue to no 35.25 more than the disparity for the previous school year. The 35.26 commissioner must submit the recommended options to the 35.27 education committees of the legislature by January 15. 35.28 For purposes of this section and section 126C.10, adjusted 35.29 general revenue means: 35.30 (1) for fiscal year 2002, the sum of basic revenue under 35.31 section 126C.10, subdivision 2; supplemental revenue under 35.32 section 126C.10, subdivisions 9 and 12; transition revenue under 35.33 section 126C.10, subdivision 20;andreferendum revenue under 35.34 section 126C.17; and equity revenue under section 126C.10, 35.35 subdivisions 24a and 24b; and 35.36 (2) for fiscal year 2003 and later, the sum of basic 36.1 revenue under section 126C.10, subdivision 2; referendum revenue 36.2 under section 126C.17; and equity revenue under section 126C.10, 36.3 subdivisions 24a and 24b. 36.4 Sec. 47. Minnesota Statutes 2000, section 298.28, 36.5 subdivision 4, is amended to read: 36.6 Subd. 4. [SCHOOL DISTRICTS.] (a) 22.28 cents per taxable 36.7 ton plus the increase provided in paragraph (d) must be 36.8 allocated to qualifying school districts to be distributed, 36.9 based upon the certification of the commissioner of revenue, 36.10 under paragraphs (b) and (c). 36.11 (b) 4.46 cents per taxable ton must be distributed to the 36.12 school districts in which the lands from which taconite was 36.13 mined or quarried were located or within which the concentrate 36.14 was produced. The distribution must be based on the 36.15 apportionment formula prescribed in subdivision 2. 36.16 (c)(i) 17.82 cents per taxable ton, less any amount 36.17 distributed under paragraph (e), shall be distributed to a group 36.18 of school districts comprised of those school districts in which 36.19 the taconite was mined or quarried or the concentrate produced 36.20 or in which there is a qualifying municipality as defined by 36.21 section 273.134 in direct proportion to school district indexes 36.22 as follows: for each school district, its pupil units 36.23 determined under section 126C.05 for the prior school year shall 36.24 be multiplied by the ratio of the average adjusted net tax 36.25 capacity per pupil unit for school districts receiving aid under 36.26 this clause as calculated pursuant to chapters 122A, 126C, and 36.27 127A for the school year ending prior to distribution to the 36.28 adjusted net tax capacity per pupil unit of the district. Each 36.29 district shall receive that portion of the distribution which 36.30 its index bears to the sum of the indices for all school 36.31 districts that receive the distributions. 36.32 (ii) Notwithstanding clause (i), each school district that 36.33 receives a distribution under sections 298.018; 298.23 to 36.34 298.28, exclusive of any amount received under this clause; 36.35 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 36.36 imposing a tax on severed mineral values that is less than the 37.1 amount of its levy reduction under section 126C.48, subdivision 37.2 8, for the second year prior to the year of the distribution 37.3 shall receive a distribution equal to the difference; the amount 37.4 necessary to make this payment shall be derived from 37.5 proportionate reductions in the initial distribution to other 37.6 school districts under clause (i). 37.7 (d) Any school district described in paragraph (c) where a 37.8 levy increase pursuant to section 126C.17, subdivision 9, is 37.9 authorized by referendum, shall receive a distribution from a 37.10 fund that receives a distribution in 1998 of 21.3 cents per 37.11 ton. On July 15 of 1999, and each year thereafter, the increase 37.12 over the amount established for the prior year shall be 37.13 determined according to the increase in the implicit price 37.14 deflator as provided in section 298.24, subdivision 1. Each 37.15 district shall receive the product of: 37.16 (i) $175 times the pupil units identified in section 37.17 126C.05, subdivision 1, enrolled in the second previous year or 37.18 the 1983-1984 school year, whichever is greater, less the 37.19 product of 1.8 percent times the district's taxable net tax 37.20 capacity in the second previous year; times 37.21 (ii) the lesser of: 37.22 (A) one, or 37.23 (B) the ratio of the sum of the amount certified pursuant 37.24 to section 126C.17, subdivision 6, in the previous year, plus 37.25 the amount certified pursuant to section 126C.17, subdivision 8, 37.26 in the previous year, plus the referendum aid according to 37.27 section 126C.17, subdivision 7, for the current year, plus an 37.28 amount equal to the reduction under section 126C.17, subdivision 37.29 12, to the product of 1.8 percent times the district's taxable 37.30 net tax capacity in the second previous year. 37.31 If the total amount provided by paragraph (d) is 37.32 insufficient to make the payments herein required then the 37.33 entitlement of $175 per pupil unit shall be reduced uniformly so 37.34 as not to exceed the funds available. Any amounts received by a 37.35 qualifying school district in any fiscal year pursuant to 37.36 paragraph (d) shall not be applied to reduce general education 38.1 aid which the district receives pursuant to section 126C.13 or 38.2 the permissible levies of the district. Any amount remaining 38.3 after the payments provided in this paragraph shall be paid to 38.4 the commissioner of iron range resources and rehabilitation who 38.5 shall deposit the same in the taconite environmental protection 38.6 fund and the northeast Minnesota economic protection trust fund 38.7 as provided in subdivision 11. 38.8 Each district receiving money according to this paragraph 38.9 shall reserve $25 times the number of pupil units in the 38.10 district. It may use the money for early childhood programs or 38.11 for outcome-based learning programs that enhance the academic 38.12 quality of the district's curriculum. The outcome-based 38.13 learning programs must be approved by the commissioner of 38.14 children, families, and learning. 38.15 If a school district had a referendum allowance in fiscal 38.16 year 2002 and received revenue under this section, then the 38.17 district shall be held harmless. 38.18 (e) There shall be distributed to any school district the 38.19 amount which the school district was entitled to receive under 38.20 section 298.32 in 1975. 38.21 Sec. 48. Laws 2000, chapter 489, article 2, section 34, is 38.22 amended to read: 38.23 Sec. 34. [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 38.24 (a) For fiscal year 2001 only, a school district's training 38.25 and experience replacement revenue equals the sum of the 38.26 following: 38.27 (1) the ratio of the amount of training and experience 38.28 revenue the district would have received for fiscal year 1999 38.29 calculated using the training and experience index in Minnesota 38.30 Statutes 1996, section 124A.04, to its resident pupil units for 38.31 that year, times the district's adjusted marginal cost pupil 38.32 units for fiscal year 2001, times .06; plus 38.33 (2) the difference between .47 times the training and 38.34 experience revenue the district would have received for fiscal 38.35 year 1999, calculated using the training and experience index in 38.36 Minnesota Statutes 1996, section 124A.04, and the amount 39.1 calculated in Minnesota Statutes, section 126C.10, subdivision 39.2 5, for fiscal year 2001, but not less than zero. 39.3 (b) This revenue is paid entirely in fiscal year 2001 based 39.4 on estimated data. 39.5 (c) By January 31, 2002, the department of children, 39.6 families, and learning shall recalculate the revenue for each 39.7 district using actual data, and shall adjust the general 39.8 education aid paid to school districts for fiscal year 2002 by 39.9 the amount of the difference between the estimated revenue and 39.10 the actual revenue. 39.11 Sec. 49. Laws 2000, chapter 489, article 2, section 37, is 39.12 amended to read: 39.13 Sec. 37. [SPARSITY CORRECTION REVENUE.] 39.14 Subdivision 1. [QUALIFICATION FOR REVENUE.] A school 39.15 district qualifies for sparsity correction revenue if it 39.16 qualifies for sparsity revenue, according to Minnesota Statutes, 39.17 section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 39.18 2001 and the amount of sparsity revenue it received in those 39.19 years is less than the amount it would have received in fiscal 39.20 year 2000 or 2001 prior to the passage of Laws 1999, chapter 39.21 241, article 1, sections 18 and 19. 39.22 Subd. 2. [FISCAL YEAR 2000 CALCULATION.] For fiscal year 39.23 2000, a school district's sparsity correction revenue equals the 39.24 difference between sparsity revenue in fiscal year 2000 39.25 calculated according to Laws 1999, chapter 241, article 1, 39.26 sections 18 and 19, and the sparsity revenue the district would 39.27 have received for fiscal year 2000 had these sections of law not 39.28 been approved. 39.29 Subd. 3. [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal 39.30 year 2001, a school district's sparsity correction revenue 39.31 equals .5 times the difference between sparsity revenue in 39.32 fiscal year 2001 calculated according to Laws 1999, chapter 241, 39.33 article 1, sections 18 and 19, and the sparsity revenue the 39.34 district would have received for fiscal year 2001 had these 39.35 sections of law not been approved. 39.36 (b) This revenue is paid entirely in fiscal year 2001 based 40.1 on estimated data. 40.2 (c) By January 31, 2002, the department of children, 40.3 families, and learning shall recalculate the revenue for each 40.4 district using actual data, and shall adjust the general 40.5 education aid paid to school districts for fiscal year 2002 by 40.6 the amount of the difference between the estimated revenue and 40.7 the actual revenue. 40.8 Sec. 50. [SUPPLEMENTAL REVENUE CONVERSION ALLOWANCE.] 40.9 A district's supplemental revenue conversion allowance is 40.10 equal to the district's total fiscal year 2002 supplemental 40.11 revenue divided by its fiscal year 2002 resident marginal cost 40.12 pupil units. 40.13 Sec. 51. [TRANSITION REVENUE CONVERSION ALLOWANCE.] 40.14 A district's transition revenue conversion allowance is 40.15 equal to the district's total fiscal year 2002 transition 40.16 revenue divided by its fiscal year 2002 resident marginal cost 40.17 pupil units. 40.18 [EFFECTIVE DATE.] This section is effective for revenue for 40.19 fiscal year 2003. 40.20 Sec. 52. [EDUCATION FORMULA ADJUSTMENTS.] 40.21 For fiscal year 2003 and thereafter, the commissioner of 40.22 children, families, and learning shall, in consultation with the 40.23 commissioner of finance, make the adjustments required by this 40.24 section to neutralize the effect of the changes in pupil unit 40.25 weights under Minnesota Statutes, section 126C.05, subdivision 40.26 1, included in this article. Each revenue allowance and 40.27 equalizing factor established under Minnesota Statutes, chapters 40.28 123B, 124D, and 126C, excluding Minnesota Statutes, section 40.29 126C.17, as an amount per pupil unit, shall be increased by 11 40.30 percent. 40.31 Sec. 53. [AID REPAYMENT; LITTLE FALLS.] 40.32 Notwithstanding any law to the contrary, the department of 40.33 children, families, and learning must allow independent school 40.34 district No. 482, Little Falls, to repay over a five-year period 40.35 state aid overpayments for fiscal years 1998 and 1999 resulting 40.36 from the district's miscalculation of pupil units for those 41.1 years. If this aid has already been recaptured, the department 41.2 shall make a positive aid adjustment of $500,000 in the July 15, 41.3 2001, aid payment to the district. The school district must 41.4 repay the aid in equal payments of $100,000 each payable on June 41.5 20. Payments must begin on June 20, 2002. 41.6 Sec. 54. [PUPIL BASE TRANSITION REVENUE.] 41.7 For fiscal year 2003 only, a school district that has 15 41.8 percent or fewer adjusted marginal cost pupil units than 41.9 resident marginal cost pupil units is eligible for pupil base 41.10 transition revenue. Pupil base adjustment revenue is equal to 41.11 $200 times the difference between an eligible school district's 41.12 resident marginal cost pupil units and its adjusted marginal 41.13 cost pupil units. 41.14 [EFFECTIVE DATE.] This section is effective for revenue for 41.15 fiscal year 2003 and later. 41.16 Sec. 55. [REFERENDUM TRANSFER ADJUSTMENT.] 41.17 Notwithstanding Minnesota Statutes, section 126C.17, 41.18 subdivision 1, paragraph (b), for fiscal year 2003 and later, 41.19 independent school district No. 709, Duluth's initial referendum 41.20 revenue allowance equals the sum of the allowance under section 41.21 126C.17, subdivision 2, plus any additional allowance per 41.22 resident marginal cost pupil unit authorized under section 41.23 126C.17, subdivision 9, before May 1, 2001, for fiscal year 2002 41.24 and later, plus the revenue conversion allowance approved under 41.25 section 126C.17, subdivision 13, minus $461. If the district 41.26 has more than one referendum authority, the reduction must be 41.27 computed separately for each authority. The reduction must be 41.28 applied first to the referendum authority with the earliest 41.29 date. The reduction must not be applied to the district's 41.30 referendum conversion allowance. The district's initial 41.31 referendum allowance may not be less than zero. 41.32 [EFFECTIVE DATE.] This section is effective for revenue for 41.33 fiscal year 2003 and later. 41.34 Sec. 56. [APPROPRIATIONS.] 41.35 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 41.36 LEARNING.] The sums indicated in this section are appropriated 42.1 from the general fund to the department of children, families, 42.2 and learning for the fiscal years designated. 42.3 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 42.4 general and supplemental education aid: 42.5 $3,374,364,000 ..... 2002 42.6 $3,541,662,000 ..... 2003 42.7 The 2002 appropriation includes $318,932,000 for 2001 and 42.8 $3,055,432,000 for 2002. 42.9 The 2003 appropriation includes $339,492,000 for 2002 and 42.10 $3,202,170,000 for 2003. 42.11 Subd. 3. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 42.12 transportation of pupils attending post-secondary institutions 42.13 according to Minnesota Statutes, section 124D.09, or for 42.14 transportation of pupils attending nonresident districts 42.15 according to Minnesota Statutes, section 124D.03: 42.16 $70,000 ..... 2002 42.17 $80,000 ..... 2003 42.18 Any balance in the first year does not cancel but is 42.19 available in the second year. 42.20 Subd. 4. [RICHFIELD AIRPORT IMPACT AID.] For Richfield 42.21 airport impact aid according to Laws 2000, chapter 489, article 42.22 2, section 36: 42.23 $1,117,000 ..... 2003 42.24 Subd. 5. [ABATEMENT AID.] For abatement aid according to 42.25 Minnesota Statutes, section 127A.49: 42.26 $7,098,000 ..... 2002 42.27 $7,692,000 ..... 2003 42.28 The 2002 appropriation includes $640,000 for 2001 and 42.29 $6,458,000 for 2002. 42.30 The 2003 appropriation includes $717,000 for 2002 and 42.31 $6,975,000 for 2003. 42.32 Subd. 6. [NONPUBLIC PUPIL AID.] For nonpublic pupil 42.33 education aid according to Minnesota Statutes, sections 123.79 42.34 and 123B.40 to 123B.43: 42.35 $14,132,000 ..... 2002 42.36 $15,175,000 ..... 2003 43.1 The 2002 appropriation includes $1,330,000 for 2001 and 43.2 $12,802,000 for 2002. 43.3 The 2003 appropriation includes $1,422,000 for 2002 and 43.4 $13,753,000 for 2003. 43.5 Subd. 7. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 43.6 pupil transportation aid under Minnesota Statutes, section 43.7 123B.92, subdivision 9: 43.8 $20,535,000 ..... 2002 43.9 $22,851,000 ..... 2003 43.10 The 2002 appropriation includes $2,000,000 for 2001 and 43.11 $18,535,000 for 2002. 43.12 The 2003 appropriation includes $2,059,000 for 2002 and 43.13 $20,792,000 for 2003. 43.14 Subd. 8. [CONSOLIDATION TRANSITION AID.] For districts 43.15 consolidating under Minnesota Statutes, section 123A.485: 43.16 $675,000 ..... 2002 43.17 $669,000 ..... 2003 43.18 The 2002 appropriation includes $44,000 for 2001 and 43.19 $631,000 for 2002. 43.20 The 2003 appropriation includes $70,000 for 2002 and 43.21 $599,000 for 2003. 43.22 Any balance in the first year does not cancel but is 43.23 available in the second year. 43.24 Subd. 9. [PUPIL BASE TRANSITION REVENUE.] For pupil base 43.25 transition revenue according to section 54: 43.26 $220,000 ..... 2003 43.27 Subd. 10. [ONE-ROOM SCHOOLHOUSE.] For a grant to 43.28 independent school district No. 690, Warroad, to operate the 43.29 Angle Inlet School: 43.30 $35,000 ..... 2002 43.31 $35,000 ..... 2003 43.32 Sec. 57. [REPEALER.] 43.33 (a) Minnesota Statutes 2000, sections 126C.10, subdivisions 43.34 9, 10, 11, 12, 19, 20, 21, and 22; and 126C.11, are repealed 43.35 effective for revenue for fiscal year 2003. 43.36 (b) Minnesota Statutes 2000, section 126C.10, subdivision 44.1 23, is repealed effective for revenue for fiscal year 2002. 44.2 (c) Notwithstanding Minnesota Statutes, chapter 645, or any 44.3 other law to the contrary, if the emergency energy assistance 44.4 initiative for school districts in S.F. No. 228 is enacted into 44.5 law during the 2001 regular legislative session, it shall be 44.6 repealed without effect. 44.7 ARTICLE 2 44.8 EDUCATION EXCELLENCE 44.9 Section 1. Minnesota Statutes 2000, section 120B.30, 44.10 subdivision 1, is amended to read: 44.11 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 44.12 with advice from experts with appropriate technical 44.13 qualifications and experience and stakeholders, shall include in 44.14 the comprehensive assessment system, for each grade level to be 44.15 tested, a test, which shall be aligned with the state's 44.16 graduation standards and administered annually to all students 44.17 in the third, fifth, seventh, and eighth grades. The 44.18 commissioner shall establish one or more months during which 44.19 schools shall administer the tests to students each school 44.20 year. Only Minnesota basic skills tests in reading, 44.21 mathematics, and writing shall fulfill students' basic skills 44.22 testing requirements for a passing state notation. The passing 44.23 scores of the state tests in reading and mathematics are the 44.24 equivalent of: 44.25 (1) 70 percent correct for students entering grade 9 in 44.26 1996; and 44.27 (2) 75 percent correct for students entering grade 9 in 44.28 1997 and thereafter, as based on the first uniform test 44.29 administration of February 1998. 44.30 Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, 44.31 at the written request of a parent or guardian, and with the 44.32 recommendation of the student's teacher, a district may offer 44.33 the test of basic requirements in reading, math, or writing to 44.34 an individual student beginning in grade 5. The student must 44.35 take the same test on the same date as administered to students 44.36 in eighth grade or higher. Thirdand, fifth, and seventh grade 45.1 test results shall be available to districts for diagnostic 45.2 purposes affecting student learning and district instruction and 45.3 curriculum, and for establishing educational accountability. 45.4 The commissioner must disseminate to the public the thirdand, 45.5 fifth, and seventh grade test results upon receiving those 45.6 results. 45.7 (b) In addition, at thesecondaryhigh school level, 45.8 districts shall assess student performance in all required 45.9 learning areas and selected required standards within each area 45.10 of the profile of learning. The testing instrumentsand, the 45.11 testing process, and the order of administration shall be 45.12 determined by the commissioner. The results shall be aggregated 45.13 at the site and district level.The testing shall be45.14administered beginning in the 1999-2000 school year and45.15thereafter.45.16 (c) The commissioner shall report school site and school 45.17 district student academic achievement levels of the current and 45.18 two immediately preceding school years. The report shall 45.19 include students' unweighted mean test scores in each tested 45.20 subject, the unweighted mean test scores of only those students 45.21 enrolled in the school byJanuaryOctober 1 of theprevious45.22 current school year, and the unweighted test scores of all 45.23 students except those students receiving limited English 45.24 proficiency instruction. The report also shall record 45.25 separately, in proximity to the reported performance levels, the 45.26 percentage of students of each gender and the percentages of 45.27 students who are eligible to receive a free or reduced price 45.28 school meal, demonstrate limited English proficiency, are 45.29 identified as migrant students, are a member of a major ethnic 45.30 or racial population, or are eligible to receive special 45.31 education services. 45.32 (d) In addition to the testing and reporting requirements 45.33 under paragraphs (a), (b), and (c), the commissioner shall 45.34 include the following components in the statewide public 45.35 reporting system: 45.36 (1) uniform statewide testing of all third, fifth, seventh, 46.1 eighth, and post-eighth grade students that provides exemptions, 46.2 only with parent or guardian approval, for those very few 46.3 students for whom the student's individual education plan team 46.4 under sections 125A.05 and 125A.06, determines that the student 46.5 is incapable of taking a statewide test, or for a limited 46.6 English proficiency student under section 124D.59, subdivision 46.7 2, if the student has been in the United States for fewer than 46.8 12 months and for whom special language barriers exist, such as 46.9 the student's native language does not have a written form or 46.10 the district does not have access to appropriate interpreter 46.11 services for the student's native language; 46.12 (2) educational indicators that can be aggregated and 46.13 compared across school districts and across time on a statewide 46.14 basis, including average daily attendance, high school 46.15 graduation rates, and high school drop-out rates by age and 46.16 grade level; 46.17 (3) students' scores on the American College Test; and 46.18 (4) participation in the National Assessment of Educational 46.19 Progress so that the state can benchmark its performance against 46.20 the nation and other states, and, where possible, against other 46.21 countries, and contribute to the national effort to monitor 46.22 achievement. 46.23 (e) Districts must report exemptions under paragraph (d), 46.24 clause (1), to the commissioner consistent with a format 46.25 provided by the commissioner. 46.26 Sec. 2. Minnesota Statutes 2000, section 120B.35, is 46.27 amended to read: 46.28 120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.] 46.29 (a) Each school year, a school district must determine if 46.30 the student achievement levels at each school site meet state 46.31 and local expectations. If student achievement levels at a 46.32 school site do not meet state and local expectations and the 46.33 site has not made adequate yearly progress for twoout of three46.34 consecutive school years, beginning with the2000-20012001-2002 46.35 school year, the district must work with the school site to 46.36 adopt a plan to raise student achievement levels to meet state 47.1 and local expectations.The legislature will determine state47.2expectations after receiving a recommendation fromThe 47.3 commissioner of children, families, and learning shall establish 47.4 the student academic achievement levels as described under 47.5 paragraph (b). 47.6 (b) The commissioner shall establish a statewide continuous 47.7 improvement system that includes all of the following components: 47.8 (1) consistent student academic achievement levels for 47.9 every school site and district in the state using scores from 47.10 the Minnesota comprehensive assessments beginning in school year 47.11 2001-2002; 47.12 (2) a minimum average scale score for each Minnesota 47.13 comprehensive assessment that will be established as the state's 47.14 target score for every grade and subject tested. The 47.15 commissioner will determine these scores after receiving advice 47.16 from experts with appropriate technical qualifications and 47.17 experience and affected stakeholders; 47.18 (3) student achievement levels representing challenging 47.19 standards of performance for all children. The average scale 47.20 score established as the state's target score must, at a 47.21 minimum, represent a student performance level indicating 47.22 beginning proficiency in the subject tested; 47.23 (4) a five-year cycle for school sites and districts to 47.24 meet the state's expectations for student achievement levels. 47.25 School sites and districts with an average scale score below the 47.26 target score in any subject must make adequate yearly progress 47.27 toward the state's expected score as defined by the 47.28 commissioner; 47.29 (5) reporting of school sites and districts not making 47.30 adequate yearly progress for two consecutive years. These 47.31 schools shall be identified as "in need of improvement." 47.32 Schools below the state target but making adequate yearly 47.33 progress shall be classified as "making progress." Schools with 47.34 average scale scores above the state target shall be classified 47.35 as "exceeding state expectations." In addition, the department 47.36 shall provide for public access to school performance indicators 48.1 as provided for in paragraph (e); 48.2 (6) continuous improvement plans developed as provided for 48.3 in paragraph (a) and described in paragraph (c). The 48.4 department, at a district's request, must assist the district 48.5 and the school site in developing a plan to improve student 48.6 achievement. The plan must include parental involvement 48.7 components; and 48.8 (7) a system of technical assistance for schools and 48.9 districts not meeting state expectations as provided for in 48.10 paragraph (d). 48.11 (c) School sites identified as "in need of improvement" 48.12 shall develop continuous improvement plans in order to meet 48.13 state and local expectations for student academic achievement. 48.14 Continuous improvement plans must contain all of the following: 48.15 (1) a self-study on eight components of quality education 48.16 including curriculum, instruction, assessment, professional 48.17 development, family and community involvement, leadership, 48.18 governance, and the alignment of resources; 48.19 (2) identification of site-specific goals tied to an 48.20 analysis of need which must be supported by student achievement 48.21 data; and 48.22 (3) an analysis of other site-level data including student 48.23 attendance, dropout rates, and student demographic information 48.24 including gender, major ethnic and racial populations, the 48.25 number of students receiving free and reduced price lunch, the 48.26 number of students identified as limited English proficient, 48.27 migrant status, and the number of students receiving special 48.28 education services. 48.29 (d) The commissioner shall create a continuous improvement 48.30 support system to provide technical assistance to school sites 48.31 and districts identified as needing improvement. The department 48.32 shall establish a team of external reviewers and experts to 48.33 assist schools in the development of continuous improvement 48.34 plans as described in paragraph (c). The department must work 48.35 with the schools in greatest need, such as those schools 48.36 identified as needing improvement in multiple subjects, those 49.1 identified for multiple years, or those furthest away from the 49.2 state's expectations as provided for in paragraph (b). If 49.3 resources remain, the department shall provide assistance to 49.4 sites and districts upon request. 49.5 (e) The commissioner shall establish and maintain a 49.6 continuous improvement Web site designed to make data on every 49.7 school and district available to parents, teachers, 49.8 administrators, community members, and the general public. 49.9 Sec. 3. Minnesota Statutes 2000, section 122A.09, 49.10 subdivision 4, is amended to read: 49.11 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 49.12 rules to license public school teachers and interns subject to 49.13 chapter 14. 49.14 (b) The board must adopt rules requiring a person to 49.15 successfully complete a skills examination in reading, writing, 49.16 and mathematics as a requirement for initial teacher licensure. 49.17 Such rules must require college and universities offering a 49.18 board approved teacher preparation program to provide remedial 49.19 assistance to persons who did not achieve a qualifying score on 49.20 the skills examination, including those for whom English is a 49.21 second language. 49.22 (c) The board must adopt rules to approve teacher 49.23 preparation programs. The board, upon the request of a 49.24 post-secondary student preparing for teacher licensure or a 49.25 licensed graduate of a teacher preparation program, shall assist 49.26 in resolving a dispute between the person and a post-secondary 49.27 institution providing a teacher preparation program when the 49.28 dispute involves an institution's recommendation for licensure 49.29 affecting the person or the person's credentials. At the 49.30 board's discretion, assistance may include the application of 49.31 chapter 14. 49.32 (d) The board must provide the leadership and shall adopt 49.33 rules for the redesign of teacher education programs to 49.34 implement a research based, results-oriented curriculum that 49.35 focuses on the skills teachers need in order to be effective. 49.36 The board shall implement new systems of teacher preparation 50.1 program evaluation to assure program effectiveness based on 50.2 proficiency of graduates in demonstrating attainment of program 50.3 outcomes. 50.4 (e) The board must adopt rules requiring successful 50.5 completion of an examination of general pedagogical knowledge 50.6 and examinations of licensure-specific teaching skills. The 50.7 rules shall be effective on the dates determined by the board, 50.8 but not later than September 1, 2001. 50.9 (f) The board must adopt rules requiring teacher educators 50.10 to work directly with elementary or secondary school teachers in 50.11 elementary or secondary schools to obtain periodic exposure to 50.12 the elementary or secondary teaching environment. 50.13 (g) The board must grant licenses to interns and to 50.14 candidates for initial licenses. 50.15 (h) The board must design and implement an assessment 50.16 system which requires a candidate for an initial license and 50.17 first continuing license to demonstrate the abilities necessary 50.18 to perform selected, representative teaching tasks at 50.19 appropriate levels. 50.20 (i) The board must receive recommendations from local 50.21 committees as established by the board for the renewal of 50.22 teaching licenses. 50.23 (j) The board must grant life licenses to those who qualify 50.24 according to requirements established by the board, and suspend 50.25 or revoke licenses pursuant to sections 122A.20 and 214.10. The 50.26 board must not establish any expiration date for application for 50.27 life licenses. 50.28 (k) The board must adopt rules that require all licensed 50.29 teachers who are renewing their continuing license to include in 50.30 their renewal requirements further preparation in the areas of 50.31 using positive behavior interventions, applying the effective 50.32 use of technology in the classroom, and in accommodating, 50.33 modifying, and adapting curricula, materials, and strategies to 50.34 appropriately meet the needs of individual students and ensure 50.35 adequate progress toward the state's graduation rule. The rules 50.36 adopted under this paragraph apply to teachers who renew their 51.1 licenses in year 2001 and later. 51.2 (l) In adopting rules to license public school teachers who 51.3 provide health-related services for disabled children, the board 51.4 shall adopt rules consistent with license or registration 51.5 requirements of the commissioner of health and the 51.6 health-related boards who license personnel who perform similar 51.7 services outside of the school. 51.8 Sec. 4. Minnesota Statutes 2000, section 122A.60, 51.9 subdivision 3, is amended to read: 51.10 Subd. 3. [STAFF DEVELOPMENT OUTCOMES.] The advisory staff 51.11 development committee must adopt a staff development plan for 51.12 improving student achievement. The plan must be consistent with 51.13 education outcomes that the school board determines. The plan 51.14 must include ongoing staff development activities that 51.15 contribute toward continuous improvement in achievement of the 51.16 following goals: 51.17 (1) improve student achievement of state and local 51.18 education standards in all areas of the curriculum by using best 51.19 practices methods; 51.20 (2) effectively meet the needs of a diverse student 51.21 population, including at-risk children, children with 51.22 disabilities, and gifted children, within the regular classroom 51.23 and other settings; 51.24 (3) provide an inclusive curriculum for a racially, 51.25 ethnically, and culturally diverse student population that is 51.26 consistent with the state education diversity rule and the 51.27 district's education diversity plan; 51.28 (4) improve staff collaboration and develop mentoring and 51.29 peer coaching programs for teachers new to the school or 51.30 district; 51.31 (5) effectively teach and model violence prevention policy 51.32 and curriculum that address early intervention alternatives, 51.33 issues of harassment, and teach nonviolent alternatives for 51.34 conflict resolution;and51.35 (6) provide teachers and other members of site-based 51.36 management teams with appropriate management and financial 52.1 management skills; and 52.2 (7) provide teachers with training for the effective use of 52.3 technology in the classroom and for the development of 52.4 curriculum resources that are video or electronically based and 52.5 delivered. 52.6 Sec. 5. [122A.73] [TEACHERS FOR THE 21ST CENTURY.] 52.7 Subdivision 1. [ESTABLISHMENT.] A teachers for the 21st 52.8 century initiative is established to attract and retain 52.9 qualified teachers in areas of identified shortages, including 52.10 student counseling, and support new teachers in schools with 52.11 high levels of poverty. The teachers for the 21st century 52.12 initiative consists of a targeted loan forgiveness or tuition 52.13 reimbursement program, an alternative license/teaching academy 52.14 program, an individual certificate account program, and a 52.15 mentoring and induction support program. The commissioner of 52.16 children, families, and learning shall identify areas of teacher 52.17 shortages, develop eligibility criteria for participation in the 52.18 programs, develop and disseminate application materials for the 52.19 programs, select program participants, and carry out other 52.20 activities to implement this section. In awarding grants under 52.21 this section, the commissioner shall consider geographical 52.22 balance. These programs are available only for a person 52.23 entering a program for teacher or school counselor preparation 52.24 after June 30, 2001. 52.25 Subd. 2. [TARGETED LOAN FORGIVENESS OR TUITION 52.26 REIMBURSEMENT PROGRAM.] The purpose of the teacher loan 52.27 forgiveness or tuition reimbursement program is to repay the 52.28 loans or reimburse tuition costs of qualified licensed teachers 52.29 who teach in areas of identified teacher shortage and school 52.30 counselors. A licensed teacher, who has successfully completed 52.31 an accredited teacher preparation program in a Minnesota 52.32 post-secondary institution in an identified area of teacher 52.33 shortage, or a licensed school counselor may submit an 52.34 application to the commissioner to participate in the targeted 52.35 loan forgiveness or tuition reimbursement program. In addition 52.36 to any other criteria established by the commissioner, the 53.1 applicant must be employed as a school counselor or a teacher in 53.2 a Minnesota public school in an area of identified teacher 53.3 shortage. Program participants, who meet the criteria under 53.4 this subdivision, may designate for each year of post-secondary 53.5 education leading to a license to counsel students or to teach 53.6 in an identified area of teacher shortage, up to a total of four 53.7 years, an agreed amount, not to exceed $2,000 per year, as 53.8 qualified loans or tuition. For each year that a participant is 53.9 employed in a school according to this subdivision, up to a 53.10 total of four years, the commissioner shall annually pay an 53.11 amount equal to one year of qualified loans or tuition. 53.12 Subd. 3. [ALTERNATIVE LICENSE/TEACHING ACADEMY 53.13 PROGRAM.] The purpose of the alternative license/teaching 53.14 academy program is to award grants to school districts or groups 53.15 of school districts to establish teaching academies for persons 53.16 with at least a four-year degree in an identified area of 53.17 teacher shortage from a post-secondary institution to teach in 53.18 the identified area of teacher shortage and work toward being 53.19 granted a teacher license. A school district or group of school 53.20 districts, in conjunction with a post-secondary teacher 53.21 preparation program, may submit an application to the 53.22 commissioner to participate in the alternative license/teaching 53.23 academy program. In addition to any other criteria established 53.24 by the commissioner, a teaching academy must include a program 53.25 of professional development and instruction in the school 53.26 district. A district must assign a mentor/master teacher to 53.27 work closely with a teaching academy candidate for at least one 53.28 year. The post-secondary teacher preparation program shall make 53.29 a recommendation to the board of teaching as to the granting of 53.30 a teacher license to the candidate. The commissioner may award 53.31 grants up to $5,000 per candidate to school districts or groups 53.32 of school districts participating in the alternative 53.33 license/teaching academy program. The grants may be used for 53.34 stipends to mentor/master teachers, professional development 53.35 costs, and administering the program. 53.36 Subd. 4. [INDIVIDUAL CERTIFICATE ACCOUNT PROGRAM.] The 54.1 purpose of the individual certificate account program is to 54.2 establish individual certificate accounts for persons to use for 54.3 tuition to attend an accredited teacher preparation program in a 54.4 Minnesota post-secondary institution in an identified area of 54.5 teacher shortage. In addition to any other criteria established 54.6 by the commissioner, a program applicant must work with teachers 54.7 in an educational setting at least ten hours a week. Eligible 54.8 applicants, who may include high school students, school 54.9 volunteers, or paraprofessionals, may submit applications to the 54.10 commissioner to participate in the individual certificate 54.11 account program. For each year, up to five years, the 54.12 commissioner may deposit a certificate of $2,000 in a 54.13 participant's account. A certificate expires five years after 54.14 its date of issuance. 54.15 Subd. 5. [MENTORING AND INDUCTION SUPPORT PROGRAM.] The 54.16 purpose of the mentoring and induction support program is to 54.17 award grants to school districts for teachers who mentor 54.18 teachers in the first three years of teaching in schools with 54.19 high levels of poverty. A school district may submit an 54.20 application to the commissioner of children, families, and 54.21 learning to participate in the mentoring and induction support 54.22 program. The commissioner may award grants to eligible 54.23 applicants for stipends of up to $500 per year for each mentor 54.24 teacher without National Board Certification and up to $1,000 54.25 for each mentor teacher with National Board Certification. 54.26 Subd. 6. [REPORT.] The commissioner of children, families, 54.27 and learning shall report annually on the teachers for the 21st 54.28 century initiative to the education policy committees of the 54.29 house of representatives and the senate on the number of 54.30 participants receiving grants in each program, the identified 54.31 area of need for each applicant, a qualitative assessment of the 54.32 participants' effectiveness in the classroom, and information on 54.33 the impact of each program and the initiative in recruiting and 54.34 retraining quality teachers. The commissioner may contract for 54.35 this report. 54.36 Subd. 7. [EXPIRATION.] This section expires June 30, 2005. 55.1 Sec. 6. Minnesota Statutes 2000, section 124D.11, 55.2 subdivision 4, is amended to read: 55.3 Subd. 4. [BUILDING LEASE BASE AID.] When a charter school 55.4 finds it economically advantageous to rent or lease a building 55.5 or land for any instructional purposes and it determines that 55.6 the total operating capital revenue under section 126C.10, 55.7 subdivision 13, is insufficient for this purpose, it may apply 55.8 to the commissioner for building lease aid for this purpose. 55.9 Criteria for aid approval and revenue uses shall be as defined 55.10 for the building lease levy in section 126C.40, subdivision 1, 55.11 paragraphs (a) and (b). For leases entered into before April 1, 55.12 2001, the amount of building lease base aid per pupil unit 55.13 served for a charter school for any year shall not exceed the 55.14 lesser of (a) 90 percent of the approved cost or (b) the product 55.15 of the pupil units served for the current school year times 55.16 $1,500. For leases entered into April 1, 2001, and thereafter, 55.17 the amount of building lease base aid per pupil unit served for 55.18 a charter school for any year shall not exceed the lesser of (1) 55.19 90 percent of the approved cost or (2) the product of the pupil 55.20 units served for the current school year times $1,000. 55.21 Sec. 7. Minnesota Statutes 2000, section 124D.11, is 55.22 amended by adding a subdivision to read: 55.23 Subd. 4a. [STATE TOTAL BUILDING LEASE AID.] The state 55.24 total building lease aid for fiscal year 2002 equals $11,734,000. 55.25 The state total building lease aid for fiscal year 2003 equals 55.26 $12,907,000. The state total building lease aid for later 55.27 fiscal years equals the state total building lease aid for the 55.28 preceding fiscal year times 1.1. 55.29 Sec. 8. Minnesota Statutes 2000, section 124D.11, is 55.30 amended by adding a subdivision to read: 55.31 Subd. 4b. [CHARTER SCHOOL BUILDING LEASE AID.] A charter 55.32 school's building lease aid for fiscal year 2002 and later 55.33 equals the state total building lease aid times the ratio of the 55.34 charter school's building lease base aid to the state total 55.35 building lease base aid. 55.36 Sec. 9. Minnesota Statutes 2000, section 124D.128, 56.1 subdivision 1, is amended to read: 56.2 Subdivision 1. [PROGRAM ESTABLISHED.] A learning year 56.3 program provides instruction throughout the year. A pupil may 56.4 participate in the program and accelerate attainment of grade 56.5 level requirements or graduation requirements. A learning year 56.6 program may begin after the close of the regular school year in 56.7 June. The program may be for students in one or more grade 56.8 levels from kindergarten through grade 12. 56.9Students may participate in the program if they reside in:56.10(1) a district that has been designated a learning year56.11site under subdivision 2;56.12(2) a district that is a member of the same education56.13district as a site; or56.14(3) a district that participates in the same area learning56.15center program as a site.56.16 Sec. 10. Minnesota Statutes 2000, section 124D.128, 56.17 subdivision 2, is amended to read: 56.18 Subd. 2. [COMMISSIONER DESIGNATION.] An area learning 56.19 center designated by the state must be a site. To be 56.20 designated, a district or center must demonstrate to the 56.21 commissioner that it will: 56.22 (1) provide a program of instruction that permits pupils to 56.23 receive instruction throughout the entire year; and 56.24 (2) maintain a record system that, for purposes of section 56.25 126C.05, permits identification of membership attributable to 56.26 pupils participating in the program. The record system and 56.27 identification must ensure that the program will not have the 56.28 effect of increasing the total number of pupil units 56.29 attributable to an individual pupil as a result of a learning 56.30 year program. The record system must include the date the pupil 56.31 originally enrolled in a learning year program, the pupil's 56.32 grade level, the date of each grade promotion, the average daily 56.33 membership generated in each grade level, the number of credits 56.34 or standards earned, and the number needed to graduate. 56.35 Sec. 11. Minnesota Statutes 2000, section 124D.128, 56.36 subdivision 3, is amended to read: 57.1 Subd. 3. [STUDENT PLANNING.] A district must inform all 57.2 pupils and their parents about the learning year program and 57.3 that participation in the program is optional. A continual 57.4 learning plan must be developed at least annually for each pupil 57.5 with the participation of the pupil, parent or guardian, 57.6 teachers, and other staff; each participant must sign and date 57.7 the plan. The plan must specify the learning experiences that 57.8 must occureachduring the entire fiscal year and, for secondary 57.9 students, for graduation. The plan must include: 57.10 (1) the pupil's learning objectives and experiences; 57.11 (2) the assessment measurements used to evaluate each 57.12 objective; 57.13 (3) requirements for grade level progression; and 57.14 (4) for pupils generating more than one average daily 57.15 membership in a given grade, an indication of which objectives 57.16 were unmet. 57.17 The plan may be modified to conform to district schedule 57.18 changes. The district may not modify the plan if the 57.19 modification would result in delaying the student's time of 57.20 graduation. 57.21 Sec. 12. Minnesota Statutes 2000, section 124D.128, 57.22 subdivision 6, is amended to read: 57.23 Subd. 6. [REVENUE COMPUTATION AND REPORTING.] Aid and levy 57.24 revenue computations must be based on the total number of hours 57.25 of education programs for pupils in average daily membership for 57.26 each fiscal year.For purposes of section 126C.05,Average 57.27 daily membership shall be computedby dividing the total number57.28of hours of participation for the fiscal year by the minimum57.29number of hours for a year determined for the appropriate grade57.30levelpursuant to section 126C.05, subdivision 15. Hours of 57.31 participation that occur after the close of the regular 57.32 instructional year and before July 1 must be attributed to the 57.33 following fiscal year.Thirty hours may be used for teacher57.34workshops, staff development, or parent-teacher conferences. As57.35part of each pilot program, the department and each district57.36must report and evaluate the changes needed to adjust the dates58.1of the fiscal year for aid and levy computation and fiscal year58.2reporting.For revenue computation purposes, the learning year 58.3 program shall generate revenue based on the formulas for the 58.4 fiscal year in which the services are provided. Dates of grade 58.5 promotion must be reported to the department for all pupils who 58.6 have participated in the program. 58.7State aid and levy revenue computation for the learning58.8year programs begins July 1, 1988, for fiscal year 1989.58.9 Sec. 13. Minnesota Statutes 2000, section 124D.128, is 58.10 amended by adding a subdivision to read: 58.11 Subd. 6a. [PROCESS TO ADDRESS AUDIT FINDINGS.] (a) If, 58.12 during an audit of a district's learning year program, the 58.13 commissioner finds that the district is not meeting program 58.14 requirements, the commissioner must notify the board of that 58.15 district in writing. The notice must specify the findings in 58.16 detail, describe the correction required, set a reasonable time 58.17 during which the findings should be corrected, and advise that 58.18 general education revenue to the district may be reduced. The 58.19 commissioner may extend the time allowed for the correction. 58.20 (b) A board that receives a notice under paragraph (a) may 58.21 decide by majority vote of the entire board to dispute that: 58.22 (1) the specified finding exists; 58.23 (2) the time allowed is reasonable; or 58.24 (3) the commissioner should reduce district general 58.25 education revenue. 58.26 The board must give the commissioner written notice of the 58.27 board's decision within 30 days of receipt of the audit report. 58.28 After making any further investigations the commissioner deems 58.29 necessary, the commissioner must decide whether or not to adhere 58.30 to the commissioner's original notice and must notify the board 58.31 of the commissioner's decision. 58.32 (c) The commissioner may reduce or withhold state general 58.33 education revenues as the result of an audit. The commissioner 58.34 may decide not to reduce or withhold state general education 58.35 revenues if the district corrects the specified finding, or 58.36 after receiving the district's notice disputing the finding, the 59.1 commissioner decides the finding does not exist. 59.2 Sec. 14. Minnesota Statutes 2000, section 124D.453, 59.3 subdivision 3, is amended to read: 59.4 Subd. 3. [CAREER AND TECHNICAL AID.] A district's career 59.5 and technical education aid for fiscal years2000 and 20012002 59.6 and later equals the lesser of: 59.7 (a) $73 times the district's average daily membership in 59.8 grades 10 to 12; or 59.9 (b) 25 percent of approved expenditures for the following: 59.10 (1) salaries paid to essential, licensed personnel 59.11 providing direct instructional services to students in that 59.12 fiscal year for services rendered in the district's approved 59.13 career and technical education programs; 59.14 (2) contracted services provided by a public or private 59.15 agency other than a Minnesota school district or cooperative 59.16 center under subdivision 7; 59.17 (3) necessary travel between instructional sites by 59.18 licensed career and technical education personnel; 59.19 (4) necessary travel by licensed career and technical 59.20 education personnel for vocational student organization 59.21 activities held within the state for instructional purposes; 59.22 (5) curriculum development activities that are part of a 59.23 five-year plan for improvement based on program assessment; 59.24 (6) necessary travel by licensed career and technical 59.25 education personnel for noncollegiate credit bearing 59.26 professional development; and 59.27 (7) specialized vocational instructional supplies. 59.28 (c) Up to ten percent of a district's career and technical 59.29 aid may be spent on equipment purchases. Districts using career 59.30 and technical aid for equipment purchases must report to the 59.31 department on the improved learning opportunities for students 59.32 that result from the investment in equipment. 59.33 (d) Up to ten percent of a district's career and technical 59.34 aid may be spent on salaries paid to licensed school counselors. 59.35 Sec. 15. Minnesota Statutes 2000, section 124D.69, 59.36 subdivision 1, is amended to read: 60.1 Subdivision 1. [AID.] If a pupil enrolls in an alternative 60.2 program, eligible under section 124D.68, subdivision 3, 60.3 paragraph (d), or subdivision 4, operated by a private 60.4 organization that has contracted with a school district to 60.5 provide educational services for eligible pupils under section 60.6 124D.68, subdivision 2, the district contracting with the 60.7 private organization must reimburse the provider an amount equal 60.8 to at least9095 percent of the district's average general 60.9 education less basic skills revenue per pupil unit times the 60.10 number of pupil units for pupils attending the program. Basic 60.11 skills revenue shall be paid according to section 126C.10, 60.12 subdivision 4. Compensatory revenue must be allocated according 60.13 to section 126C.15, subdivision 2. For a pupil attending the 60.14 program part time, the revenue paid to the program must be 60.15 reduced proportionately, according to the amount of time the 60.16 pupil attends the program, and revenue paid to the district 60.17 shall be reduced accordingly. Pupils for whom a district 60.18 provides reimbursement may not be counted by the district for 60.19 any purpose other than computation of general education 60.20 revenue. If payment is made to a district or program for a 60.21 pupil under this section, the department must not make a payment 60.22 for the same pupil under section 124D.68, subdivision 9. 60.23 [EFFECTIVE DATE.] This section is effective for revenue for 60.24 fiscal year 2002 and later. 60.25 Sec. 16. Minnesota Statutes 2000, section 124D.74, 60.26 subdivision 1, is amended to read: 60.27 Subdivision 1. [PROGRAM DESCRIBED.] American Indian 60.28language and cultureeducation programs are programs in public 60.29 elementary and secondary schools, nonsectarian nonpublic, 60.30 community, tribal, or alternative schools enrolling American 60.31 Indian children designed: 60.32 (1) to support post-secondary preparation for pupils; 60.33 (2) to support the academic achievement of American Indian 60.34 students; 60.35 (3) to make the curriculum more relevant to the needs, 60.36 interests, and cultural heritage of American Indian pupils; 61.1(2)(4) to provide positive reinforcement of the self-image 61.2 of American Indian pupils;and61.3(3)(5) to develop intercultural awareness among pupils, 61.4 parents, and staff; and 61.5 (6) to supplement, not supplant, state and federal 61.6 educational and cocurricular programs. 61.7 Program components may include:instruction in American Indian61.8language, literature, history, and culturedevelopment of 61.9 support components for students in the areas of academic 61.10 achievement, retention, and attendance; development of support 61.11 components for staff, including in-service training and 61.12 technical assistance in methods of teaching American Indian 61.13 pupils; research projects, including experimentation with and 61.14 evaluation of methods of relating to American Indian pupils; 61.15 provision of personal and vocational counseling to American 61.16 Indian pupils; modification of curriculum, instructional 61.17 methods, and administrative procedures to meet the needs of 61.18 American Indian pupils; andestablishment of cooperative61.19liaisons with nonsectarian nonpublic, community, tribal or61.20alternative schools offering curricula which reflect American61.21Indian culturesupplemental instruction in American Indian 61.22 language, literature, history, and culture. Districts offering 61.23 programs may make contracts for the provision of program 61.24 components bynonsectarian nonpublic, community, tribal or61.25alternative schoolsestablishing cooperative liaisons with 61.26 tribal programs and American Indian social service agencies. 61.27 These programs may also be provided as components of early 61.28 childhood and family education programs. 61.29 Sec. 17. Minnesota Statutes 2000, section 124D.74, 61.30 subdivision 2, is amended to read: 61.31 Subd. 2. [VOLUNTARY ENROLLMENT.] Enrollment in American 61.32 Indianlanguage and cultureeducation programs must be 61.33 voluntary. School districts and participating schools must make 61.34 affirmative efforts to encourage participation. They shall 61.35 encourage parents to visit classes or come to school for a 61.36 conference explaining the nature of the program and provide 62.1 visits by school staff to parents' homes to explain the nature 62.2 of the program. 62.3 Sec. 18. Minnesota Statutes 2000, section 124D.74, 62.4 subdivision 3, is amended to read: 62.5 Subd. 3. [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 62.6 ENROLLMENT.] To the extent it is economically feasible, a 62.7 district or participating school may make provision for the 62.8 voluntary enrollment of non-American Indian children in the 62.9 instructional components of an American Indianlanguage and62.10cultureeducation program in order that they may acquire an 62.11 understanding of the cultural heritage of the American Indian 62.12 children for whom that particular program is designed. However, 62.13 in determining eligibility to participate in a program, priority 62.14 must be given to American Indian children. American Indian 62.15 children and other children enrolled in an existing nonpublic 62.16 school system may be enrolled on a shared time basis in American 62.17 Indianlanguage and cultureeducation programs. 62.18 Sec. 19. Minnesota Statutes 2000, section 124D.74, 62.19 subdivision 4, is amended to read: 62.20 Subd. 4. [LOCATION OF PROGRAMS.] American Indianlanguage62.21and cultureeducation programs must be located in facilities in 62.22 which regular classes in a variety of subjects are offered on a 62.23 daily basis. Programs may operate on an extended day or 62.24 extended year basis. 62.25 Sec. 20. Minnesota Statutes 2000, section 124D.74, 62.26 subdivision 6, is amended to read: 62.27 Subd. 6. [NONVERBAL COURSES AND EXTRACURRICULAR 62.28 ACTIVITIES.] In predominantly nonverbal subjects, such as art, 62.29 music, and physical education, American Indian children shall 62.30 participate fully and on an equal basis with their 62.31 contemporaries in school classes provided for these subjects. 62.32 Every school district or participating school shall ensure to 62.33 children enrolled in American Indianlanguage and culture62.34 education programs an equal and meaningful opportunity to 62.35 participate fully with other children in all extracurricular 62.36 activities. This subdivision shall not be construed to prohibit 63.1 instruction in nonverbal subjects or extracurricular activities 63.2 which relate to the cultural heritage of the American Indian 63.3 children, or which are otherwise necessary to accomplish the 63.4 objectives described in sections 124D.71 to 124D.82. 63.5 Sec. 21. Minnesota Statutes 2000, section 124D.75, 63.6 subdivision 6, is amended to read: 63.7 Subd. 6. [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 63.8 Any person licensed under this section shall be eligible for 63.9 employment by a school board or a participating school as a 63.10 teacher in an American Indianlanguage and cultureeducation 63.11 program in which the American Indian language or culture in 63.12 which the person is licensed is taught. A school district or 63.13 participating school may prescribe only those additional 63.14 qualifications for teachers licensed under this section as are 63.15 approved by the board of teaching. Any school board or 63.16 participating school upon request may be exempted from the 63.17 licensure requirements of this section in the hiring of one or 63.18 more American Indian language and culture education teachers for 63.19 any school year in which compliance would, in the opinion of the 63.20 commissioner, create a hardship in the securing of the teachers. 63.21 Sec. 22. Minnesota Statutes 2000, section 124D.76, is 63.22 amended to read: 63.23 124D.76 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 63.24 In addition to employing American Indian language and 63.25 culture education teachers, each district or participating 63.26 school providing programs pursuant to sections 124D.71 to 63.27 124D.82 may employ teachers' aides. Teachers' aides must not be 63.28 employed for the purpose of supplanting American Indian language 63.29 and culture education teachers. 63.30 Any district or participating school which conducts 63.31 American Indianlanguage and cultureeducation programs pursuant 63.32 to sections 124D.71 to 124D.82 must employ one or more full-time 63.33 or part-time community coordinators if there are 100 or more 63.34 students enrolled in the program. Community coordinators shall 63.35 promote communication understanding, and cooperation between the 63.36 schools and the community and shall visit the homes of children 64.1 who are to be enrolled in an American Indianlanguage and64.2cultureeducation program in order to convey information about 64.3 the program. 64.4 Sec. 23. Minnesota Statutes 2000, section 124D.78, 64.5 subdivision 1, is amended to read: 64.6 Subdivision 1. [PARENT COMMITTEE.] School boards and 64.7 American Indian schools must provide for the maximum involvement 64.8 of parents of children enrolled in education programs,including64.9language and culture education programs,programs for elementary 64.10 and secondary grades, special education programs, and support 64.11 services. Accordingly, the board of a school district in which 64.12 there are ten or more American Indian children enrolled and each 64.13 American Indian school must establish a parent committee. If a 64.14 committee whose membership consists of a majority of parents of 64.15 American Indian children has been or is established according to 64.16 federal, tribal, or other state law, that committee may serve as 64.17 the committee required by this section and is subject to, at 64.18 least, the requirements of this subdivision and subdivision 2. 64.19 The parent committee must develop its recommendations in 64.20 consultation with the curriculum advisory committee required by 64.21 section 120B.11, subdivision 3. This committee must afford 64.22 parents the necessary information and the opportunity 64.23 effectively to express their views concerning all aspects of 64.24 American Indian education and the educational needs of the 64.25 American Indian children enrolled in the school or program. The 64.26 committee must also address the need for adult education 64.27 programs for American Indian people in the community. The board 64.28 or American Indian school must ensure that programs are planned, 64.29 operated, and evaluated with the involvement of and in 64.30 consultation with parents of children served by the programs. 64.31 Sec. 24. Minnesota Statutes 2000, section 124D.81, 64.32 subdivision 1, is amended to read: 64.33 Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the 64.34 commissioner of children, families, and learning must make 64.35 grants to no fewer than six American Indianlanguage and culture64.36 education programs. At least three programs must be in urban 65.1 areas and at least three must be on or near reservations. The 65.2 board of a local district, a participating school or a group of 65.3 boards may develop a proposal for grants in support of American 65.4 Indianlanguage and cultureeducation programs. Proposals may 65.5 provide for contracts for the provision of program components by 65.6 nonsectarian nonpublic, community, tribal, or alternative 65.7 schools. The commissioner shall prescribe the form and manner 65.8 of application for grants, and no grant shall be made for a 65.9 proposal not complying with the requirements of sections 124D.71 65.10 to 124D.82. The commissioner must submit all proposals to the 65.11 state advisorytask forcecommittee on American Indianlanguage65.12and cultureeducation programs for its recommendations 65.13 concerning approval, modification, or disapproval and the 65.14 amounts of grants to approved programs. 65.15 Sec. 25. Minnesota Statutes 2000, section 124D.81, 65.16 subdivision 3, is amended to read: 65.17 Subd. 3. [ADDITIONAL REQUIREMENTS.] Each district 65.18 receiving a grant under this section must each year conduct a 65.19 count of American Indian children in the schools of the 65.20 district; test for achievement; identify the extent of other 65.21 educational needs of the children to be enrolled in the American 65.22 Indianlanguage and cultureeducation program; and classify the 65.23 American Indian children by grade, level of educational 65.24 attainment, age and achievement. Participating schools must 65.25 maintain records concerning the needs and achievements of 65.26 American Indian children served. 65.27 Sec. 26. Minnesota Statutes 2000, section 124D.81, 65.28 subdivision 5, is amended to read: 65.29 Subd. 5. [RECORDS.] Participating schools and districts 65.30 must keep records and afford access to them as the commissioner 65.31 finds necessary to ensure that American Indianlanguage and65.32cultureeducation programs are implemented in conformity with 65.33 sections 124D.71 to 124D.82. Each school district or 65.34 participating school must keep accurate, detailed, and separate 65.35 revenue and expenditure accounts for pilot American Indian 65.36language and cultureeducation programs funded under this 66.1 section. 66.2 Sec. 27. Minnesota Statutes 2000, section 124D.81, 66.3 subdivision 6, is amended to read: 66.4 Subd. 6. [MONEY FROM OTHER SOURCES.] A district or 66.5 participating school providing American Indianlanguage and66.6cultureeducation programs shall be eligible to receive moneys 66.7 for these programs from other government agencies and from 66.8 private sources when the moneys are available. 66.9 Sec. 28. Minnesota Statutes 2000, section 124D.81, 66.10 subdivision 7, is amended to read: 66.11 Subd. 7. [EXCEPTIONS.] Nothing in sections 124D.71 to 66.12 124D.82 shall be construed as prohibiting a district or school 66.13 from implementing an American Indianlanguage and culture66.14 education program which is not in compliance with sections 66.15 124D.71 to 124D.82 if the proposal and plan for that program is 66.16 not funded pursuant to this section. 66.17 Sec. 29. Minnesota Statutes 2000, section 124D.86, 66.18 subdivision 3, is amended to read: 66.19 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 2000 and 66.20 later fiscal years, integration revenue equals the following 66.21 amounts: 66.22 (1) for independent school district No. 709, Duluth, $207 66.23 times the adjusted pupil units for the school year; 66.24 (2) for independent school district No. 625, St. Paul, $446 66.25 times the adjusted pupil units for the school year; 66.26 (3) for special school district No. 1, Minneapolis, $536 66.27 times the adjusted pupil units for the school year;and66.28 (4) for a district not listed in clause (1), (2), or (3) 66.29 that must implement a plan under Minnesota Rules, parts 66.30 3535.0100 to 3535.0180, where the district's enrollment of 66.31 protected students, as defined under Minnesota Rules, part 66.32 3535.0110, exceeds 15 percent, the lesser of (i) the actual cost 66.33 of implementing the plan during the fiscal year minus the aid 66.34 received under subdivision 6, or (ii) $150 times the adjusted 66.35 pupil units for the school year; and 66.36(4)(5) for a district not listed in clause (1), (2), or (3) 67.1 that is required to implement a plan according to the 67.2 requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 67.3 the lesser of 67.4 (i) the actual cost of implementing the plan during the 67.5 fiscal year minus the aid received under subdivision 6, or 67.6 (ii) $93 times the adjusted pupil units for the school year. 67.7 Any money received by districts in clauses (1) to (3) which 67.8 exceeds the amount received in fiscal year 2000 shall be subject 67.9 to the budget requirements in subdivision 1a. 67.10 [EFFECTIVE DATE.] This section is effective for aid payable 67.11 in fiscal year 2002. 67.12 Sec. 30. [124D.945] [PERFORMANCE INCENTIVE POOL PROGRAM.] 67.13 Subdivision 1. [ESTABLISHMENT.] A performance incentive 67.14 pool program is established for school districts or school sites 67.15 to create new compensation packages and career paths for 67.16 teachers built around measurable student outcomes and 67.17 improvement of teaching. 67.18 Subd. 2. [ELIGIBILITY; APPLICATION.] (a) To participate in 67.19 this program, a school district or school site must: 67.20 (1) fully implement the graduation standards within a 67.21 specified time period; 67.22 (2) have specific assessment and evaluation tools to 67.23 measure student performance and progress; 67.24 (3) have measures to show improved student attendance and 67.25 completion rates; 67.26 (4) show evidence of professional development that aligns 67.27 curriculum and instruction; 67.28 (5) have measures of student, family, and community 67.29 involvement and satisfaction; 67.30 (6) maintain a data system with information about students 67.31 and their academic progress that provides parents and the public 67.32 with understandable information; 67.33 (7) use a compensation structure that provides professional 67.34 options for teachers whose primary role is to provide student 67.35 instruction and that eliminates pay increases tied to years of 67.36 service; and 68.1 (8) provide other necessary information required by the 68.2 commissioner. 68.3 The commissioner shall consider applications submitted by a 68.4 school district and the exclusive representative of the teachers 68.5 for participation in the incentive pool program. To receive 68.6 funding, the school district and the exclusive representative of 68.7 the teachers must formally adopt a collective bargaining 68.8 agreement, a memorandum of understanding, or a legal document 68.9 that implements a new compensation plan that includes all 68.10 teachers in the school district or school site. 68.11 (b) To be eligible to participate in this program, a school 68.12 district or school site must submit an application to the 68.13 commissioner in the form and manner the commissioner prescribes. 68.14 (c) The commissioner shall select applicants that qualify 68.15 for this program, notify school districts and school sites about 68.16 the program, develop and disseminate application materials, and 68.17 carry out other activities needed to implement this section. 68.18 Subd. 3. [INCENTIVE.] A school district or school site 68.19 shall receive up to $150 per adjusted marginal cost pupil unit 68.20 in addition to any other funding for each school year that the 68.21 district or site participates in the program. 68.22 Subd. 4. [EXPIRATION.] This section expires June 30, 2005. 68.23 Sec. 31. Minnesota Statutes 2000, section 126C.05, 68.24 subdivision 15, is amended to read: 68.25 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 68.26 enrolled in a learning year program under section 124D.128, an 68.27 area learning center under sections 123A.05 and 123A.06, an 68.28 alternative program approved by the commissioner, or a contract 68.29 alternative program under section 124D.68, subdivision 3, 68.30 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 68.31 school year for a secondary student, more than 935 hours in a 68.32 school year for an elementary student, or more than 425 hours in 68.33 a school year for a kindergarten student without a disability, 68.34 that pupil may be counted as more than one pupil in average 68.35 daily membership. The amount in excess of one pupil must be 68.36 determined by the ratio of the number of hours of instruction 69.1 provided to that pupil in excess of: (i) the greater of 1,020 69.2 hours or the number of hours required for a full-time secondary 69.3 pupil in the district to 1,020 for a secondary pupil; (ii) the 69.4 greater of 935 hours or the number of hours required for a 69.5 full-time elementary pupil in the district to 935 for an 69.6 elementary pupil in grades 1 through 6; and (iii) the greater of 69.7 425 hours or the number of hours required for a full-time 69.8 kindergarten student without a disability in the district to 425 69.9 for a kindergarten student without a disability. Hours that 69.10 occur after the close of the instructional year in June shall be 69.11 attributable to the following fiscal year. A kindergarten 69.12 student must not be counted as more than 1.2 pupils in average 69.13 daily membership under this subdivision. 69.14 (b)(i) To receive general education revenue for a pupil in 69.15 an alternative program that has an independent study component, 69.16 a district must meet the requirements in this paragraph. The 69.17 district must develop,withfor the pupil, a continual learning 69.18 planfor the pupil. A district must allow a minor pupil's69.19parent or guardian to participate in developing the plan, if the69.20parent or guardian wants to participate. The plan must identify69.21the learning experiences and expected outcomes needed for69.22satisfactory credit for the year and for graduation. The plan69.23must be updated each yearconsistent with section 124D.128, 69.24 subdivision 3. Each school district that has a state-approved 69.25 public alternative program must reserve revenue in an amount 69.26 equal to at least 90 percent of the district average general 69.27 education revenue per pupil unit less compensatory revenue per 69.28 pupil unit times the number of pupil units generated by students 69.29 attending a state-approved public alternative program. The 69.30 amount of reserved revenue available under this subdivision may 69.31 only be spent for program costs associated with the 69.32 state-approved public alternative program. Compensatory revenue 69.33 must be allocated according to section 126C.15, subdivision 2. 69.34 (ii) General education revenue for a pupil in an approved 69.35 alternative program without an independent study component must 69.36 be prorated for a pupil participating for less than a full year, 70.1 or its equivalent. The district must develop for the pupil, a 70.2 continual learning plan consistent with section 124D.128, 70.3 subdivision 3. Each school district that has a state-approved 70.4 public alternative program must reserve revenue in an amount 70.5 equal to at least 90 percent of the district average general 70.6 education revenue per pupil unit less compensatory revenue per 70.7 pupil unit times the number of pupil units generated by students 70.8 attending a state-approved public alternative program. The 70.9 amount of reserved revenue available under this subdivision may 70.10 only be spent for program costs associated with the 70.11 state-approved public alternative program. Compensatory revenue 70.12 must be allocated according to section 126C.15, subdivision 2. 70.13 (iii) General education revenue for a pupil in an approved 70.14 alternative program that has an independent study component must 70.15 be paid for each hour of teacher contact time and each hour of 70.16 independent study time completed toward a credit or graduation 70.17 standards necessary for graduation. Average daily membership 70.18 for a pupil shall equal the number of hours of teacher contact 70.19 time and independent study time divided by 1,020. 70.20 (iv) For an alternative program having an independent study 70.21 component, the commissioner shall require a description of the 70.22 courses in the program, the kinds of independent study involved, 70.23 the expected learning outcomes of the courses, and the means of 70.24 measuring student performance against the expected outcomes. 70.25 Sec. 32. [INTEGRATION REVENUE REPORT.] 70.26 The department of children, families, and learning must 70.27 report to the education committees of the legislature by January 70.28 15, 2002, on the distribution of integration revenue under 70.29 Minnesota Statutes, section 124D.86. The report must include a 70.30 recommendation for consolidating the four tiers of integration 70.31 revenue under Minnesota Statutes, section 124D.86, subdivision 70.32 3, and funding integration based on factors including, but not 70.33 limited to, numbers of pupils served by the district's 70.34 integration plan, school district participation in an 70.35 integration plan, level of services provided under the plan, 70.36 costs of services provided under the plan, or other factors that 71.1 provide for an equitable distribution on integration revenue. 71.2 In addition, the report should analyze funding under the magnet 71.3 school grants, including whether rural areas of Minnesota should 71.4 be included in the metropolitan magnet program under Minnesota 71.5 Statutes, section 124D.88. 71.6 Sec. 33. [ACCESS TO TESTS.] 71.7 The commissioner of children, families, and learning must 71.8 adopt and publish a policy to provide public and parental access 71.9 for review of basic skills tests, Minnesota comprehensive 71.10 assessments, or any other such statewide test and assessment. 71.11 Parents or guardians shall also have access to their student's 71.12 accompanying test results and answers. 71.13 Sec. 34. [APPROPRIATIONS.] 71.14 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 71.15 LEARNING.] The sums indicated in this section are appropriated 71.16 from the general fund, unless otherwise indicated, to the 71.17 department of children, families, and learning for the fiscal 71.18 years designated. 71.19 Subd. 2. [STATEWIDE TESTING AND GRADUATION STANDARDS 71.20 SUPPORT.] For supporting implementation of the graduation 71.21 standards: 71.22 $6,500,000 ..... 2002 71.23 $6,500,000 ..... 2003 71.24 Any balance in the first year does not cancel but is 71.25 available in the second year. 71.26 Subd. 3. [ADVANCED PLACEMENT AND INTERNATIONAL 71.27 BACCALAUREATE PROGRAMS.] For the state advanced placement and 71.28 international baccalaureate programs: 71.29 $1,875,000 ..... 2002 71.30 $1,875,000 ..... 2003 71.31 Notwithstanding Minnesota Statutes, section 120B.13, 71.32 subdivisions 1 and 2, $375,000 each year is for teachers to 71.33 attend subject matter summer training programs and follow-up 71.34 support workshops approved by the advanced placement or 71.35 international baccalaureate programs. The amount of the subsidy 71.36 for each teacher attending an advanced placement or 72.1 international baccalaureate summer training program or workshop 72.2 shall be the same. The commissioner shall determine the payment 72.3 process and the amount of the subsidy. 72.4 Notwithstanding Minnesota Statutes, section 120B.13, 72.5 subdivision 3, in each year to the extent of available 72.6 appropriations, the commissioner shall pay all examination fees 72.7 for all students sitting for an advanced placement examination, 72.8 international baccalaureate examination, or both. If this 72.9 amount is not adequate, the commissioner may pay less than the 72.10 full examination fee. 72.11 Any balance in the first year does not cancel but is 72.12 available in the second year. 72.13 Subd. 4. [CHARTER SCHOOL BUILDING LEASE AID.] For building 72.14 lease aid according to Minnesota Statutes, section 124D.11, 72.15 subdivision 4: 72.16 $11,734,000 ..... 2002 72.17 $12,907,000 ..... 2003 72.18 The 2002 appropriation includes $1,114,000 for 2001 and 72.19 $10,620,000 for 2002. 72.20 The 2003 appropriation includes $1,180,000 for 2002 and 72.21 $11,727,000 for 2003. 72.22 Subd. 5. [CHARTER SCHOOL STARTUP GRANTS.] For charter 72.23 school startup cost aid under Minnesota Statutes, section 72.24 124D.11: 72.25 $2,738,000 ..... 2002 72.26 $3,143,000 ..... 2003 72.27 The 2002 appropriation includes $273,000 for 2001 and 72.28 $2,465,000 for 2002. 72.29 The 2003 appropriation includes $274,000 for 2002 and 72.30 $2,869,000 for 2003. 72.31 Subd. 6. [CHARTER SCHOOL INTEGRATION AID.] For grants to 72.32 charter schools to promote integration and desegregation 72.33 according to Minnesota Statutes, section 124D.11, subdivision 6, 72.34 paragraph (e): 72.35 $50,000 ..... 2002 72.36 $50,000 ..... 2003 73.1 Any balance in the first year does not cancel but is 73.2 available in the second year. 73.3 Subd. 7. [BEST PRACTICES SEMINARS.] For best practices 73.4 graduation rule seminars and other professional development 73.5 capacity building activities that assure proficiency in teaching 73.6 and implementation of graduation rule standards: 73.7 $4,480,000 ..... 2002 73.8 $4,500,000 ..... 2003 73.9 Of this amount, for fiscal year 2002, $1,000,000 is for 73.10 arts via the Internet collaborative project between the Walker 73.11 Art Center and the Minneapolis Institute of Arts; $200,000 in 73.12 fiscal year 2002 is for the Lincoln Learning Center school in 73.13 independent school district No. 347, Willmar, for innovative 73.14 education programs created to prepare children who are 73.15 ill-prepared to learn due to poor oral language development and 73.16 too few prereading experiences; and $250,000 each year is for a 73.17 grant to A Chance to Grow/New Visions for the Minnesota Learning 73.18 Resource Center. 73.19 The commissioner shall consider a curriculum development 73.20 grant, consistent with the graduation rule, to develop curricula 73.21 in the area of natural sciences including botany, horticulture, 73.22 and zoology. The grant shall also be used to provide 73.23 instructional materials on the Internet. The commissioner shall 73.24 consider the Minnesota academic excellence foundation for a best 73.25 practices grant. The commissioner shall consider best practices 73.26 grants to districts for developing gifted and talented services 73.27 that are integrated with the state's graduation standards. The 73.28 commissioner shall consider a grant to independent school 73.29 district No. 621, Mounds View, for a pilot project to establish 73.30 a parallel block schedule strategy in grades 1 through 3. 73.31 Subd. 8. [INTEGRATION AID.] For integration aid: 73.32 $64,522,000 ..... 2002 73.33 $64,728,000 ..... 2003 73.34 The 2002 appropriation includes $5,729,000 for 2001 and 73.35 $58,793,000 for 2002. 73.36 The 2003 appropriation includes $6,533,000 for 2002 and 74.1 $58,195,000 for 2003. 74.2 Subd. 9. [INTEGRATION PROGRAMS.] For minority fellowship 74.3 grants according to Laws 1994, chapter 647, article 8, section 74.4 29; minority teacher incentives according to Minnesota Statutes, 74.5 section 122A.65; teachers of color grants according to Minnesota 74.6 Statutes, section 122A.64; and cultural exchange grants 74.7 according to Minnesota Statutes, section 124D.89: 74.8 $1,000,000 ..... 2002 74.9 $1,000,000 ..... 2003 74.10 Any balance in the first year does not cancel but is 74.11 available in the second year. 74.12 In awarding teacher of color grants, priority must be given 74.13 to districts that have students who are currently in the process 74.14 of completing their academic program. 74.15 Subd. 10. [MAGNET SCHOOL GRANTS.] For magnet school and 74.16 program grants Minnesota Statutes, section 124D.871: 74.17 $2,800,000 ..... 2002 74.18 Of this amount, for fiscal year 2002, $239,000 is for 74.19 independent school district No. 199, Inver Grove; $182,000 is 74.20 for independent school district No. 832, Mahtomedi; $536,000 is 74.21 for independent school district No. 834, Stillwater; $549,000 is 74.22 for independent school district No. 284, Wayzata; $534,000 is 74.23 for independent school district No. 624, White Bear Lake; and 74.24 $260,000 is for independent school district No. 347, Willmar. 74.25 Subd. 11. [MAGNET SCHOOL STARTUP AID.] For magnet school 74.26 startup aid under Minnesota Statutes, section 124D.88: 74.27 $482,000 ..... 2002 74.28 $326,000 ..... 2003 74.29 The 2002 appropriation includes $25,000 for 2001 and 74.30 $457,000 for 2002. 74.31 The 2003 appropriation includes $51,000 for 2002 and 74.32 $275,000 for 2003. 74.33 Subd. 12. [INTERDISTRICT DESEGREGATION OR INTEGRATION 74.34 TRANSPORTATION GRANTS.] For interdistrict desegregation or 74.35 integration transportation grants under Minnesota Statutes, 74.36 section 124D.87: 75.1 $2,932,000 ..... 2003 75.2 Subd. 13. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 75.3 For grants to American Indian language and culture education 75.4 programs according to Minnesota Statutes 2000, section 124D.81, 75.5 subdivision 1: 75.6 $73,000 ..... 2002 75.7 The 2002 appropriation includes $73,000 for 2001 and $0 for 75.8 2002. 75.9 Subd. 14. [AMERICAN INDIAN EDUCATION.] For certain 75.10 American Indian education programs in school districts: 75.11 $17,000 ..... 2002 75.12 The 2002 appropriation includes $17,000 for 2001 and $0 for 75.13 2002. 75.14 Subd. 15. [SUCCESS FOR THE FUTURE.] For American Indian 75.15 success for the future grants according to Minnesota Statutes, 75.16 section 124D.81: 75.17 $2,297,000 ..... 2002 75.18 $2,387,000 ..... 2003 75.19 The 2002 appropriation includes $0 for 2001 and $2,297,000 75.20 for 2002. 75.21 The 2003 appropriation includes $255,000 for 2002 and 75.22 $2,132,000 for 2003. 75.23 Subd. 16. [AMERICAN INDIAN SCHOLARSHIPS.] For American 75.24 Indian scholarships according to Minnesota Statutes, section 75.25 124D.84: 75.26 $1,875,000 ..... 2002 75.27 $1,875,000 ..... 2003 75.28 Any balance in the first year does not cancel but is 75.29 available in the second year. 75.30 Subd. 17. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 75.31 joint grants to assist Indian people to become teachers: 75.32 $190,000 ..... 2002 75.33 $190,000 ..... 2003 75.34 (b) Up to $70,000 each year is for a joint grant to the 75.35 University of Minnesota at Duluth and the Duluth school district. 75.36 (c) Up to $40,000 each year is for a joint grant to each of 76.1 the following: 76.2 (1) Bemidji state university and the Red Lake school 76.3 district; 76.4 (2) Moorhead state university and a school district located 76.5 within the White Earth reservation; and 76.6 (3) Augsburg college, independent school district No. 625, 76.7 St. Paul, and the Minneapolis school district. 76.8 (d) Money not used for students at one location may be 76.9 transferred for use at another location. 76.10 (e) Any balance in the first year does not cancel but is 76.11 available in the second year. 76.12 Subd. 18. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 76.13 school aid according to Minnesota Statutes, section 124D.83: 76.14 $2,520,000 ..... 2002 76.15 $2,767,000 ..... 2003 76.16 The 2002 appropriation includes $192,000 for 2001 and 76.17 $2,328,000 for 2002. 76.18 The 2003 appropriation includes $258,000 for 2002 and 76.19 $2,509,000 for 2003. 76.20 Subd. 19. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 76.21 SCHOOLS.] For early childhood family education programs at 76.22 tribal contract schools: 76.23 $68,000 ..... 2002 76.24 $68,000 ..... 2003 76.25 Subd. 20. [FIRST GRADE PREPAREDNESS.] For first grade 76.26 preparedness grants according to Minnesota Statutes, section 76.27 124D.081: 76.28 $7,500,000 ..... 2002 76.29 $8,000,000 ..... 2003 76.30 Subd. 21. [CAREER AND TECHNICAL EDUCATION AID.] For career 76.31 and technical education aid according to Minnesota Statutes, 76.32 section 124D.453: 76.33 $7,658,000 ..... 2002 76.34 $7,696,000 ..... 2003 76.35 The 2002 appropriation includes $1,242,000 for 2001 and 76.36 $6,416,000 for 2002. 77.1 The 2003 appropriation includes $6,713,000 for 2002 and 77.2 $6,983,000 for 2003. 77.3 If the appropriation is insufficient, the aid shall be 77.4 prorated. 77.5 Subd. 22. [YOUTHWORKS PROGRAM.] For funding youthworks 77.6 programs according to Minnesota Statutes, sections 124D.37 to 77.7 124D.45: 77.8 $1,938,000 ..... 2002 77.9 $1,938,000 ..... 2003 77.10 A grantee organization may provide health and child care 77.11 coverage to the dependents of each participant enrolled in a 77.12 full-time youth works program to the extent such coverage is not 77.13 otherwise available. Of this amount, $150,000 each year is 77.14 contingent upon the commission on national and community service 77.15 demonstrating to the commissioner that federal matching funds 77.16 are available for the service learning program. 77.17 Any balance in the first year does not cancel but is 77.18 available in the second year. 77.19 Subd. 23. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 77.20 GRANTS.] For education and employment transitions programming 77.21 under Minnesota Statutes, section 124D.46: 77.22 $1,300,000 ..... 2002 77.23 $1,250,000 ..... 2003 77.24 Of this appropriation, $250,000 each year is for ISEEK. 77.25 $750,000 in fiscal year 2002 and $750,000 in fiscal year 77.26 2003 is for youth apprenticeship grants. 77.27 $125,000 each year is to conduct a high school follow-up 77.28 survey to include first, third, and sixth year graduates of 77.29 Minnesota schools. 77.30 $125,000 each year is for grants to school districts for 77.31 the junior achievement program. 77.32 $50,000 in fiscal year 2002 is for the Westbrook-Walnut 77.33 Grove high school student entrepreneurship project. 77.34 Any balance in the first year does not cancel but is 77.35 available in the second year. 77.36 Subd. 24. [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 78.1 For the learn and earn graduation achievement program according 78.2 to Minnesota Statutes, section 124D.32: 78.3 $725,000 ..... 2002 78.4 $725,000 ..... 2003 78.5 Any balance in the first year does not cancel but is 78.6 available in the second year. 78.7 Subd. 25. [ADVANCE ACHIEVEMENT AND ACCOUNTABILITY.] For 78.8 the department of children, families, and learning to develop 78.9 statewide assessments and provide assistance to school districts 78.10 that are not making adequate progress on the Minnesota 78.11 comprehensive assessments: 78.12 $3,000,000 ..... 2002 78.13 $3,000,000 ..... 2003 78.14 Subd. 26. [PERFORMANCE INCENTIVE POOL.] For a performance 78.15 incentive pool established under Minnesota Statutes, section 78.16 124D.945: 78.17 $2,500,000 ..... 2002 78.18 $5,000,000 ..... 2003 78.19 If the appropriations under this subdivision are 78.20 insufficient to fund all program participants, the participants 78.21 shall be prioritized by the commissioner by the date of receipt 78.22 of the application. Some participants may receive less than the 78.23 maximum per pupil amount available under Minnesota Statutes, 78.24 section 124D.945, subdivision 3. 78.25 Any balance in the first year does not cancel but is 78.26 available in the second year. 78.27 Subd. 27. [TEACHERS FOR THE 21ST CENTURY.] For the teacher 78.28 shortage initiative established under Minnesota Statutes, 78.29 section 124A.73: 78.30 $2,500,000 ..... 2002 78.31 $2,500,000 ..... 2003 78.32 Of this amount, $50,000 each year is to be used for 78.33 evaluation of this initiative. In the first year, the Minnesota 78.34 new teacher project under Laws 2000, chapter 489, article 6, 78.35 section 42, must be funded from this appropriation. 78.36 Any balance in the first year does not cancel but is 79.1 available in the second year. 79.2 Subd. 28. [COLLABORATIVE URBAN EDUCATOR RECRUITMENT AND 79.3 TRAINING PROGRAMS.] For grants to collaborative urban educator 79.4 recruitment and training programs: 79.5 $1,300,000 ..... 2002 79.6 $1,300,000 ..... 2003 79.7 $500,000 each year is for the Southeast Asian teacher 79.8 program at Concordia University, St. Paul; $400,000 each year is 79.9 for the collaborative urban educator program at the University 79.10 of St. Thomas; and $400,000 each year is for the center for 79.11 excellence in urban teaching at Hamline University. Grant 79.12 recipients must collaborate with urban and nonurban school 79.13 districts. 79.14 Any balance in the first year does not cancel but is 79.15 available in the second year. 79.16 Subd. 29. [MEADOWBROOK COLLABORATIVE HOUSING PROJECT.] For 79.17 a grant to independent school district No. 283, St. Louis Park, 79.18 for the Meadowbrook Collaborative Housing Project to enhance 79.19 youth outreach services and to provide educational and 79.20 recreational programming for at-risk youth through the 79.21 development of formal after school programming and weekend youth 79.22 activities: 79.23 $50,000 ..... 2002 79.24 The collaborative must include a cross-section of public 79.25 and private sector community representatives to develop services 79.26 to address specific community and social needs of children and 79.27 youth. 79.28 The funds may be made available to assist in staffing and 79.29 program development for the Meadowbrook Youth Center. The 79.30 center must focus on reducing truancy, developing assets for 79.31 at-risk youth, providing adult mentoring, and developing 79.32 programs for structured time in order to minimize opportunities 79.33 for adverse activities. 79.34 Subd. 30. [LIMITED ENGLISH PROFICIENCY STUDY.] For a study 79.35 of limited English proficiency programs: 79.36 $20,000 ..... 2002 80.1 The department of children, families, and learning must 80.2 study current practices and program models as well as best 80.3 practice research into effective methodology for instructing 80.4 students with limited English proficiency so that they may 80.5 participate fully in English language classroom content and 80.6 develop appropriate assessments and instruments to determine the 80.7 effectiveness of programs for students with limited English 80.8 proficiency. The instruments must address the effectiveness of 80.9 the curriculum being taught, the instruction being provided, the 80.10 professional development provided, the manner in which student 80.11 progress in acquiring English language proficiency is assessed, 80.12 as well as other factors pertinent to the instruction of 80.13 students with limited English proficiency. The study shall 80.14 include best practice research-based methods of instructing 80.15 students who are not literate in their native language. The 80.16 department shall make the results of the study as well as the 80.17 instruments available to teachers and other educators involved 80.18 in the design and implementation of programs for students with 80.19 limited English proficiency and promote the use of best 80.20 practices described in the study. The department must submit 80.21 its report to the education committees of the legislature by 80.22 February 15, 2002. 80.23 Sec. 35. [REPEALER.] 80.24 (a) Minnesota Statutes 2000, sections 120A.41; 124D.128, 80.25 subdivision 7; and 124D.85, are repealed. 80.26 (b) Laws 1999, chapter 241, article 3, section 5, as 80.27 amended by Laws 2000, chapter 489, article 4, section 9, is 80.28 repealed effective the day following final enactment. 80.29 ARTICLE 3 80.30 SPECIAL EDUCATION 80.31 Section 1. Minnesota Statutes 2000, section 122A.61, 80.32 subdivision 1, is amended to read: 80.33 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 80.34 required to reserve an amount equal to at least two percent of 80.35 the basic revenue under section 126C.10, subdivision 2, for 80.36 in-service education for programs under section 120B.22, 81.1 subdivision 2, for staff development plans, including plans for 81.2 challenging instructional activities and experiences under 81.3 section 122A.60, and for curriculum development and programs, 81.4 other in-service education, teachers' workshops, teacher 81.5 conferences, the cost of substitute teachers staff development 81.6 purposes, preservice and in-service education for special 81.7 education professionals and paraprofessionals, and other related 81.8 costs for staff development efforts. A district may annually 81.9 waive the requirement to reserve their basic revenue under this 81.10 section if a majority vote of the licensed teachers in the 81.11 district and a majority vote of the school board agree to a 81.12 resolution to waive the requirement. A district in statutory 81.13 operating debt is exempt from reserving basic revenue according 81.14 to this section. Districts may expend an additional amount of 81.15 unreserved revenue for staff development based on their needs. 81.16 With the exception of amounts reserved for staff development 81.17 from revenues allocated directly to school sites, the board must 81.18 initially allocate 50 percent of the reserved revenue to each 81.19 school site in the district on a per teacher basis, which must 81.20 be retained by the school site until used. The board may retain 81.21 25 percent to be used for district wide staff development 81.22 efforts. The remaining 25 percent of the revenue must be used 81.23 to make grants to school sites for best practices methods. A 81.24 grant may be used for any purpose authorized under section 81.25 120B.22, subdivision 2, 122A.60, or for the costs of curriculum 81.26 development and programs, other in-service education, teachers' 81.27 workshops, teacher conferences, substitute teachers for staff 81.28 development purposes, and other staff development efforts, and 81.29 determined by the site professional development team. The site 81.30 professional development team must demonstrate to the school 81.31 board the extent to which staff at the site have met the 81.32 outcomes of the program. The board may withhold a portion of 81.33 initial allocation of revenue if the staff development outcomes 81.34 are not being met. 81.35 [EFFECTIVE DATE.] This section is effective the day 81.36 following final enactment. 82.1 Sec. 2. Minnesota Statutes 2000, section 125A.515, is 82.2 amended to read: 82.3 125A.515 [PLACEMENT OF CHILDREN WITH AND WITHOUT 82.4 DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 82.5 Subdivision 1. [PROGRAM APPROVAL.] The commissioner shall 82.6 approve education programs in care and treatment facilities for 82.7 placement of children with and without disabilities, including 82.8 detention centers, before being licensed by the department of 82.9 human services or the department of corrections. Education 82.10 programs in these facilities shall conform to state and federal 82.11 education laws, including the Individuals with Disabilities 82.12 Education Act under United States Code, title 20, chapter 33. 82.13 Subd. 2. [DEFINITION OF CARE AND TREATMENT 82.14 PLACEMENT.] Students with or without disabilities placed in the 82.15 following public or private facilities by someone other than the 82.16 district are considered to be placed for care and treatment: 82.17 (1) chemical dependency and other substance abuse treatment 82.18 centers; 82.19 (2) shelter care facilities; 82.20 (3) correctional facilities; 82.21 (4) residential treatment centers; 82.22 (5) group homes; 82.23 (6) mental health programs; and 82.24 (7) detention facilities. 82.25 Subd. 3. [RESPONSIBILITIES FOR PROVIDING EDUCATION.] (a) 82.26 The district in which the facility is located must provide 82.27 regular education, special education, or both, to students with 82.28 or without disabilities placed in a facility for care and 82.29 treatment. 82.30 (b) For those education programs operated by the department 82.31 of corrections, the district shall be the department of 82.32 corrections. The department of corrections may enter into an 82.33 agreement with a school district to share those responsibilities. 82.34 (c) Placement for care and treatment does not of itself 82.35 require special education services. 82.36 (d) The providing district and the care and treatment 83.1 center shall enter into a cooperative agreement for providing 83.2 educational services to students placed within the center. 83.3 Subd. 4. [WHEN EDUCATION IS REQUIRED.] Education services 83.4 must be provided to a student with or without disabilities 83.5 beginning within three days after entrance into the care and 83.6 treatment facility. The first three days may be used to screen 83.7 the student for educational, social, and safety issues. 83.8 Subd. 5. [WHEN DUE PROCESS BEGINS.] The number of school 83.9 days for determining due process procedures shall begin upon 83.10 enrollment in an education program. 83.11 Subd. 6. [SHORT-TERM AND LONG-TERM PLACEMENTS.] A 83.12 placement for care and treatment is a short-term placement if 83.13 the anticipated duration of the placement is less than 31 school 83.14 days. A placement for care and treatment is long term if it is 83.15 anticipated to extend beyond 30 days. 83.16 Subd. 7. [EDUCATION PROGRAMS FOR STUDENTS WITH AND WITHOUT 83.17 DISABILITIES PLACED IN SHORT-TERM AND LONG-TERM PROGRAMS FOR 83.18 CARE AND TREATMENT.] (a) When the student is enrolled in the 83.19 educational program without an educational record or individual 83.20 education program plan, the district's procedures must include 83.21 immediate contact with the resident district to determine 83.22 whether the student has been identified as a student with a 83.23 disability and to request the student's education records. 83.24 (b) If a student placed for care and treatment has been 83.25 identified as disabled and has a current individual education 83.26 program plan: 83.27 (1) the resident district must send a facsimile copy to the 83.28 providing agency within 24 hours of receiving the request; 83.29 (2) the providing agency must conduct an individual 83.30 education program plan meeting to reach an agreement about 83.31 continuing or modifying special education services in accordance 83.32 with the current individual education program plan goals and 83.33 objectives and to determine whether additional evaluations are 83.34 necessary; and 83.35 (3) at least the following people shall receive written 83.36 notice to attend the individual education program plan meeting: 84.1 (i) the person or agency placing the pupil; 84.2 (ii) the resident district; 84.3 (iii) the appropriate teachers and related services staff 84.4 from the providing district; 84.5 (iv) the parents; and 84.6 (v) when appropriate, the pupil. 84.7 This meeting may be held in conjunction with a meeting 84.8 called by a placing agency. 84.9 (c) For a student who has not been identified as a student 84.10 with a disability: 84.11 (1) a screening must be conducted to determine the 84.12 student's need for further education, social, emotional, and 84.13 behavioral evaluation. The screening must include a review of 84.14 the student's educational records; and 84.15 (2) based on the documented results of the screening, a 84.16 decision shall be made about the need for prereferral 84.17 interventions, the need for an appropriate evaluation to 84.18 determine special education eligibility, and whether an 84.19 evaluation can be completed before the student is transferred 84.20 out of the facility. When it is determined the evaluation 84.21 cannot be completed due to the student's limited length of stay, 84.22 the student's need for an evaluation shall be documented and 84.23 communicated to the responsible agency where the student is 84.24 transferred. 84.25 Subd. 8. [EDUCATION PROGRAMS FOR STUDENTS WITHOUT 84.26 DISABILITIES PLACED IN LONG-TERM PROGRAMS FOR CARE AND 84.27 TREATMENT.] (a) If the student does not meet the eligibility 84.28 criteria for special education, regular education services must 84.29 be provided in accordance with a personal education plan. 84.30 (b) A personal education plan shall include current 84.31 educational data, individual education goals, and an educational 84.32 transition plan for transition from the facility. 84.33 Subd. 9. [WHEN A STUDENT WITH OR WITHOUT DISABILITIES 84.34 LEAVES THE FACILITY.] If a student with or without disabilities 84.35 has been in a care and treatment facility for 15 or more days, 84.36 the providing district must prepare an exit report summarizing 85.1 the regular education, special education, evaluation, progress 85.2 on education goals, and service information and must send the 85.3 report to the resident district, the receiving facility, the 85.4 parent, and any appropriate social service agency. For students 85.5 with disabilities, this report must include a summary of current 85.6 levels of performance, progress, and any modifications made in 85.7 the pupil's individual education program plan or services. 85.8 Subd. 10. [MINIMUM EDUCATIONAL SERVICES REQUIRED.] At a 85.9 minimum, the district must provide: 85.10 (1) the education necessary, including summer school 85.11 services, for the student with or without disabilities to 85.12 progress in the appropriate grade level for the successful 85.13 completion of the courses, programs, or classes in which the 85.14 student or pupil would have been enrolled if the student or 85.15 pupil were not placed for care and treatment; and 85.16 (2) a school day, of the same length as the school day of 85.17 the district in which the facility is located, unless the unique 85.18 needs of the student, as documented through the individual 85.19 education program plan or personal education plan, in 85.20 consultation with treatment providers, requires an alteration in 85.21 the length of the school day. 85.22 Subd. 11. [PLACEMENT, SERVICES, AND DUE PROCESS 85.23 REQUIREMENTS FOR STUDENTS WITH AND WITHOUT DISABILITIES.] (a) 85.24 When a pupil's treatment and educational needs allow, education 85.25 shall be provided in a regular educational setting. The 85.26 determination of the amount and site of integrated services must 85.27 be a joint decision between parents, the treatment and education 85.28 staff, and, when possible, final educational placement decisions 85.29 must be made by the individual education program plan team of 85.30 the providing educational agency. Educational services shall be 85.31 provided in conformance with the least restrictive environment 85.32 principle of the Individuals with Disabilities Education Act 85.33 under United States Code, title 20, chapter 33. 85.34 (b) Districts shall develop alternative procedures for 85.35 implementing the legal requirements for observing the student in 85.36 a regular classroom and document previous interventions that 86.1 have been tried before the student placed for care and treatment 86.2 is identified as having a specific learning disability or an 86.3 emotional or behavioral disorder. These alternative procedures 86.4 must be included in the district's entrance criteria for special 86.5 education. The district and facility shall cooperatively 86.6 develop procedures to be used in emergency situations that 86.7 comply with the Minnesota Pupil Fair Dismissal Act under 86.8 sections 121A.40 to 121A.56, and other relevant state and 86.9 federal laws. 86.10 Subd. 12. [REIMBURSEMENT FOR EDUCATION SERVICES.] (a) 86.11 Education services provided to pupils and regular education 86.12 students who have been placed for care and treatment are 86.13 reimbursable in accordance with special education and general 86.14 education statutes. 86.15 (b) The special education services provided to pupils in 86.16 accordance with an individual education program plan are 86.17 reimbursable with special education revenue. 86.18 (c) The indirect or consultative services provided in 86.19 conjunction with regular education prereferral interventions and 86.20 assessment provided to regular education students suspected of 86.21 being disabled and who have demonstrated learning or behavioral 86.22 problems in a screening are reimbursable with special education 86.23 revenue. 86.24 (d) Regular education, including screening, provided to 86.25 students with or without disabilities is not reimbursable with 86.26 special education revenue. 86.27 Subd. 13. [STUDENTS UNABLE TO ATTEND SCHOOL BUT NOT PLACED 86.28 IN CARE AND TREATMENT FACILITIES.] Students with or without 86.29 disabilities who are absent from or predicted to be absent from 86.30 school for 15 consecutive or intermittent days, at home or in 86.31 facilities not licensed by the departments of corrections or 86.32 human services, are not students placed for care and treatment. 86.33 These students include students with and without disabilities 86.34 who are home due to accident or illness, in a hospital or other 86.35 medical facility, or in a day treatment center. These students 86.36 are entitled to education services through their district of 87.1 residence. 87.2 Sec. 3. Minnesota Statutes 2000, section 125A.76, 87.3 subdivision 1, is amended to read: 87.4 Subdivision 1. [DEFINITIONS.] For the purposes of this 87.5 section, the definitions in this subdivision apply. 87.6 (a) "Base year" for fiscal year 1998 and later fiscal years 87.7 means the second fiscal year preceding the fiscal year for which 87.8 aid will be paid. 87.9 (b) "Basic revenue" has the meaning given it in section 87.10 126C.10, subdivision 2. For the purposes of computing basic 87.11 revenue pursuant to this section, each child with a disability 87.12 shall be counted as prescribed in section 126C.05, subdivision 1. 87.13 (c) "Essential personnel" means teachers, related services, 87.14andsupport services staff providing direct services to 87.15 students, and support services staff carrying out due process 87.16 clerical work. 87.17 (d) "Average daily membership" has the meaning given it in 87.18 section 126C.05. 87.19 (e) "Program growth factor" means 1.08 for fiscal year 87.20 2002,and1.046 for fiscal year 2003, and 1.07 for fiscal year 87.21 2004 and later. 87.22 (f) "Cross-subsidy reduction factor" means 1.0 for fiscal 87.23 years 2002 and 2003, 1.022 for fiscal years 2004 and 2005, and 87.24 1.0 for fiscal year 2006 and later. 87.25 Sec. 4. Minnesota Statutes 2000, section 125A.76, 87.26 subdivision 4, is amended to read: 87.27 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.] The state 87.28 total special education aid for fiscal year 2000 equals 87.29 $463,000,000. The state total special education aid for fiscal 87.30 year 2001 equals $474,000,000. The state total special 87.31 education aid for later fiscal years equals: 87.32 (1) the state total special education aid for the preceding 87.33 fiscal year; times 87.34 (2) the program growth factor; times 87.35 (3) the cross-subsidy reduction factor; times 87.36 (4) the ratio of the state total average daily membership 88.1 for the current fiscal year to the state total average daily 88.2 membership for the preceding fiscal year. 88.3 Sec. 5. Minnesota Statutes 2000, section 125A.79, 88.4 subdivision 1, is amended to read: 88.5 Subdivision 1. [DEFINITIONS.] For the purposes of this 88.6 section, the definitions in this subdivision apply. 88.7 (a) "Unreimbursed special education cost" means the sum of 88.8 the following: 88.9 (1) expenditures for teachers' salaries, contracted 88.10 services, supplies, equipment, and transportation services 88.11 eligible for revenue under section 125A.76; plus 88.12 (2) expenditures for tuition bills received under sections 88.13 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 88.14 under section 125A.76, subdivision 2; minus 88.15 (3) revenue for teachers' salaries, contracted services, 88.16 supplies, and equipment under section 125A.76; minus 88.17 (4) tuition receipts under sections 125A.03 to 125A.24 and 88.18 125A.65 for services eligible for revenue under section 125A.76, 88.19 subdivision 2. 88.20 (b) "General revenue" means for fiscal year 1996, the sum 88.21 of the general education revenue according to section 126C.10, 88.22 subdivision 1, as adjusted according to section 127A.47, 88.23 subdivision 7, plus the total referendum revenue according to 88.24 section 126C.17, subdivision 4. For fiscal years 1997 and 88.25 later, "general revenue" means the sum of the general education 88.26 revenue according to section 126C.10, subdivision 1, as adjusted 88.27 according to section 127A.47, subdivisions 7 and 8, plus the 88.28 total referendum revenue minus transportation sparsity revenue 88.29 minus total operating capital revenue. 88.30 (c) "Average daily membership" has the meaning given it in 88.31 section 126C.05. 88.32 (d) "Program growth factor" means 1.044 for fiscal year 88.33 2002and, 1.02 for fiscal year 2003, and 1.06 for fiscal year 88.34 2004 and later. 88.35 Sec. 6. Minnesota Statutes 2000, section 125A.79, 88.36 subdivision 7, is amended to read: 89.1 Subd. 7. [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 89.2 A district's special education excess cost aid for fiscal year 89.3 2002 and later equals the state total special education excess 89.4 cost aid times the ratio of the district's initial excess cost 89.5 aid to the state total initial excess cost aid. 89.6 (b) In order to be eligible for aid under this subdivision, 89.7 a district must document and bill third-party revenue sources 89.8 for health-related services on a child's individual education 89.9 plan, individual interagency intervention plan, or 89.10 individualized family service plan. 89.11 [EFFECTIVE DATE.] This section is effective July 1, 2002. 89.12 Sec. 7. Laws 2000, chapter 489, article 3, section 24, is 89.13 amended to read: 89.14 Sec. 24. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 89.15 (a) For fiscal year 2000, a school district shall receive 89.16 an amount of revenue equal to $8.15 times the district's 89.17 adjusted marginal cost pupil units. 89.18 (b) For fiscal year 2001, a school district shall receive 89.19 an amount of revenue equal to $19 times the district's adjusted 89.20 marginal cost pupil units. Special education cross-subsidy 89.21 revenue must be used to pay for a district's unfunded special 89.22 education costs that are currently cross-subsidized by a 89.23 district's general education revenue. 89.24 (c) The fiscal year 2001 revenue is paid entirely in fiscal 89.25 year 2001 based on estimated data. By January 31, 2002, the 89.26 department of children, families, and learning shall recalculate 89.27 the revenue for each district using actual data, and shall 89.28 adjust the general education aid paid to school districts for 89.29 fiscal year 2002 by the amount of the difference between the 89.30 estimated revenue and the actual revenue. 89.31 Sec. 8. [IDENTIFY REVENUE OPTIONS FOR COORDINATION OF 89.32 SERVICES.] 89.33 By July 1, 2002, the commissioner of children, families, 89.34 and learning shall, in conjunction with the commissioner of 89.35 human services, develop a plan to identify possible revenue 89.36 options from medical assistance funds, including targeted case 90.1 management, and other appropriate federal funds and develop a 90.2 recommended procedure for use at the local level for the purpose 90.3 of coordination of services needed to implement the individual 90.4 interagency intervention plan required in Minnesota Statutes, 90.5 section 125A.023, subdivision 4, paragraph (b), clause (4). 90.6 Sec. 9. [STATE BILLING PROCESS REPORT AND PLAN.] 90.7 The commissioner of children, families, and learning, in 90.8 consultation with the commissioner of human services, shall 90.9 develop a central statewide billing process for school districts 90.10 to use to process third-party bills, including medical 90.11 assistance. The commissioner of children, families, and 90.12 learning shall report to the education committees of the 90.13 legislature by February 1, 2002, on recommendations for a 90.14 statewide billing system to be implemented by January 1, 2003. 90.15 Sec. 10. [BOARD OF TEACHING.] 90.16 The board of teaching must review and report to the 90.17 education committees of the 2002 legislature on rules that would 90.18 require board-approved teacher preparation programs to include 90.19 in their teacher preparation programs information on special 90.20 education laws, teaching strategies, and positive behavior 90.21 interventions. 90.22 Sec. 11. [APPROPRIATIONS.] 90.23 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 90.24 LEARNING.] The sums indicated in this section are appropriated 90.25 from the general fund to the department of children, families, 90.26 and learning for the fiscal years designated. 90.27 Subd. 2. [SPECIAL EDUCATION AID.] For special education 90.28 aid according to Minnesota Statutes, section 125A.75: 90.29 $507,448,000 ..... 2002 90.30 $531,481,000 ..... 2003 90.31 The 2002 appropriation includes $47,400,000 for 2001 and 90.32 $460,048,000 for 2002. 90.33 The 2003 appropriation includes $51,116,000 for 2002 and 90.34 $480,365,000 for 2003. 90.35 Subd. 3. [AID FOR CHILDREN WITH A DISABILITY.] For aid 90.36 according to Minnesota Statutes, section 125A.75, subdivision 3, 91.1 for children with a disability placed in residential facilities 91.2 within the district boundaries for whom no district of residence 91.3 can be determined: 91.4 $1,877,000 ..... 2002 91.5 $2,033,000 ..... 2003 91.6 If the appropriation for either year is insufficient, the 91.7 appropriation for the other year is available. Any balance in 91.8 the first year does not cancel but is available in the second 91.9 year. 91.10 Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 91.11 teacher travel for home-based services according to Minnesota 91.12 Statutes, section 125A.75, subdivision 1: 91.13 $135,000 ..... 2002 91.14 $138,000 ..... 2003 91.15 The 2002 appropriation includes $13,000 for 2001 and 91.16 $122,000 for 2002. 91.17 The 2003 appropriation includes $13,000 for 2002 and 91.18 $125,000 for 2003. 91.19 Subd. 5. [SPECIAL EDUCATION EXCESS COST AID.] For excess 91.20 cost aid: 91.21 $102,665,000 ..... 2002 91.22 $104,773,000 ..... 2003 91.23 The 2002 appropriation includes $9,889,000 for 2001 and 91.24 $92,776,000 for 2002. 91.25 The 2003 appropriation includes $10,308,000 for 2002 and 91.26 $94,465,000 for 2003. 91.27 Subd. 6. [LITIGATION COSTS.] For paying the costs a 91.28 district incurs under Minnesota Statutes, section 125A.75, 91.29 subdivision 8: 91.30 $375,000 ..... 2002 91.31 $375,000 ..... 2003 91.32 Subd. 7. [TRANSITION PROGRAMS; STUDENTS WITH 91.33 DISABILITIES.] For aid for transition programs for pupils with 91.34 disabilities according to Minnesota Statutes, section 124D.454: 91.35 $8,954,000 ..... 2002 91.36 $8,939,000 ..... 2003 92.1 The 2002 appropriation includes $896,000 for 2001 and 92.2 $8,058,000 for 2002. 92.3 The 2003 appropriation includes $895,000 for 2002 and 92.4 $8,044,000 for 2003. 92.5 Subd. 8. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 92.6 reimbursing serving school districts for unreimbursed eligible 92.7 expenditures attributable to children placed in the serving 92.8 school district by court action under Minnesota Statutes, 92.9 section 125A.79, subdivision 4: 92.10 $350,000 ..... 2002 92.11 $350,000 ..... 2003 92.12 Subd. 9. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 92.13 special education out-of-state tuition according to Minnesota 92.14 Statutes, section 125A.79, subdivision 8: 92.15 $250,000 ..... 2002 92.16 $250,000 ..... 2003 92.17 Subd. 10. [WEB-BASED, INDIVIDUAL INTERAGENCY INTERVENTION 92.18 PLAN.] For ongoing development, administration, and interagency 92.19 training costs associated with a statewide, Web-based 92.20 application for the individual interagency intervention plan 92.21 required in Minnesota Statutes, section 125A.023: 92.22 $500,000 ..... 2002 92.23 $500,000 ..... 2003 92.24 Subd. 11. [HIV/STI EDUCATION.] For regional training sites 92.25 for HIV/STI education in schools established under Laws 1997, 92.26 First Special Session chapter 4, article 6, section 18: 92.27 $550,000 ..... 2002 92.28 Of this amount, $500,000 must be used for continued 92.29 development of the existing sites and $50,000 for department of 92.30 children, families, and learning technical assistance and 92.31 contract management services. This appropriation is available 92.32 until June 30, 2003. 92.33 ARTICLE 4 92.34 FACILITIES AND TECHNOLOGY; FUND TRANSFERS 92.35 Section 1. Minnesota Statutes 2000, section 123B.57, 92.36 subdivision 8, is amended to read: 93.1 Subd. 8. [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 93.2 COST.] (a) A district's cost for health, safety, and 93.3 environmental management is limited to the lesser of: 93.4 (1) actual cost to implement their plan; or 93.5 (2) an amount determined by the commissioner, based on 93.6 enrollment, building age, and size. 93.7 (b) The department may contract with regional service 93.8 organizations, private contractors, Minnesota safety council, or 93.9 state agencies to provide management assistance to school 93.10 districts for health and safety capital projects. Management 93.11 assistance is the development of written programs for the 93.12 identification, recognition and control of hazards, and 93.13 prioritization and scheduling of district health and safety 93.14 capital projects. The department shall not exclude private 93.15 contractors from the opportunity to provide any health and 93.16 safety services to school districts. 93.17 (c) Notwithstanding paragraph (b), the department may 93.18 approve revenue, up to the limit defined in paragraph (a) for 93.19 districts having an approved health, safety, and environmental 93.20 management plan that uses district staff to accomplish 93.21 coordination and provided services. 93.22 Sec. 2. Minnesota Statutes 2000, section 123B.59, 93.23 subdivision 1, is amended to read: 93.24 Subdivision 1. [TO QUALIFY.] An independent or special 93.25 school district qualifies to participate in the alternative 93.26 facilities bonding and levy program if the district has: 93.27 (1) more than 66 students per grade; 93.28 (2) over 1,850,000 square feet of space;93.29(3)and the average age of building space is 15 years or 93.30 older or over 1,500,000 square feet and the average age of 93.31 building space is 35 years or older; 93.32(4)(3) insufficient funds from projected health and safety 93.33 revenue and capital facilities revenue to meet the requirements 93.34 for deferred maintenance, to make accessibility improvements, or 93.35 to make fire, safety, or health repairs; and 93.36(5)(4) a ten-year facility plan approved by the 94.1 commissioner according to subdivision 2. 94.2 [EFFECTIVE DATE.] This section is effective for revenue for 94.3 fiscal year 2004 and later. 94.4 Sec. 3. Minnesota Statutes 2000, section 125B.21, is 94.5 amended to read: 94.6 125B.21 [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 94.7 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 94.8 of the Minnesota education telecommunications council 94.9 established in Laws 1993, First Special Session chapter 2, is 94.10 expanded to include representatives of elementary and secondary 94.11 education. The membership shall consist of three 94.12 representatives from the University of Minnesota; three 94.13 representatives of the board of trustees for Minnesota state 94.14 colleges and universities; one representative of the higher 94.15 education services offices; one representative appointed by the 94.16 private college council; one representative selected by the 94.17 commissioner of administration; eight representatives selected 94.18 by the commissioner of children, families, and learning, at 94.19 least one of which must come from each of the six higher 94.20 education telecommunication regions; a representative from the 94.21 office of technology; two members each from the senate and the 94.22 house of representatives selected by the subcommittee on 94.23 committees of the committee on rules and administration of the 94.24 senate and the speaker of the house, one member from each body 94.25 must be a member of the minority party; and three 94.26 representatives of libraries, one representing regional public 94.27 libraries, one representing multitype libraries, and one 94.28 representing community libraries, selected by the governor; and 94.29 two members, one selected from and representing the higher 94.30 education regional coordinators and one selected from and 94.31 representing the kindergarten through grade 12 cluster regions. 94.32 The council shall serve as a forum to establish and advocate for 94.33 a statewide vision and plans for the use of distance learning 94.34 technologies, including: 94.35 (1)develop a statewide vision and plans for the use of94.36distance learning technologies and provide leadership in95.1implementing the use of such technologiesthe coordination and 95.2 collaboration of distance learning opportunities; 95.3 (2)recommend educational policy relating to95.4telecommunicationsthe implementation of the use of distance 95.5 learning technologies; 95.6 (3)determine priorities for usethe collaboration of 95.7 distance learning users; 95.8 (4)oversee coordination of networks for post-secondary95.9campuses, kindergarten through grade 12 education, and regional95.10and community librariesthe implementation of educational policy 95.11 relating to telecommunications; 95.12 (5)review application for telecommunications access grants95.13under Minnesota Statutes, section 125B.20, and recommend to the95.14department grants for fundingthe exchange of ideas; 95.15 (6)determine priorities for grant funding proposalsthe 95.16 communications with state government and related agencies and 95.17 entities;and95.18 (7)work with the information policy office to ensure95.19consistency of the operation of the learning network with95.20standards of an open system architecturethe coordination of 95.21 networks for post-secondary campuses, kindergarten through grade 95.22 12 education, and regional and community libraries; and 95.23 (8) the promotion of consistency of the operation of the 95.24 learning network with standards of an open system architecture. 95.25The council shall consult with representatives of the95.26telecommunication industry in implementing this section.95.27Subd. 2. [DISTRICT COUNCIL MEMBERSHIP.] District95.28organizations that coordinate applications for telecommunication95.29access grants are encouraged to become members of the regional95.30higher education telecommunication council in their area.95.31Subd. 3. [CRITERIA.] In addition to responsibilities of95.32the council under Laws 1993, First Special Session chapter 2, as95.33amended, the telecommunications council shall evaluate grant95.34applications under section 125B.20 and applications from95.35district organizations using the following criteria:95.36(1) evidence of cooperative arrangements with other96.1post-secondary institutions, school districts, and community and96.2regional libraries in the geographic region;96.3(2) plans for shared classes and programs;96.4(3) avoidance of network duplication;96.5(4) evidence of efficiencies to be achieved in delivery of96.6instruction due to use of telecommunications;96.7(5) a plan for development of a list of all courses96.8available in the region for delivery at a distance;96.9(6) a plan for coordinating and scheduling courses; and96.10(7) a plan for evaluation of costs, access, and outcomes.96.11 Sec. 4. Minnesota Statutes 2000, section 125B.25, 96.12 subdivision 1, is amended to read: 96.13 Subdivision 1. [COSTS TO BE SUBMITTED.] A district shall 96.14 submit its outstanding ongoing or recurring telecommunications 96.15 access costs associated with datalinesand videolinks96.16 connections to the department of children, families, and 96.17 learning. Costs of telecommunications hardware or equipment 96.18 must not be included in the costs submitted by districts to the 96.19 department. A district may include installation charges 96.20 associated with new lines or upgraded lines, but may not include 96.21 costs of hardware or equipment. 96.22 Sec. 5. Minnesota Statutes 2000, section 125B.25, 96.23 subdivision 2, is amended to read: 96.24 Subd. 2. [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 96.25 recurring telecommunications access costs submitted to the 96.26 department by each district under this section are limited to 96.27 the operation costs equal to the greater of: 96.28 (1) one datalineor videolinkconnection that relies on a 96.29 transport medium that operates at a minimum speed of 1.544 96.30 megabytes per second for each elementary school, middle school, 96.31 or high school under section 120A.05, subdivisions 9, 11, and 96.32 13; or 96.33 (2) one datalineor videolinkconnection that relies on a 96.34 transport medium that operates at a minimum speed of 1.544 96.35 megabytes per second for each district. 96.36 (b) A district may include costs associated with 97.1 cooperative arrangements with other post-secondary institutions, 97.2 school districts, and community and regional libraries in its 97.3 geographic region. A district may continue to purchase its 97.4 ongoing or recurring telecommunications access services through 97.5 existing contracts. 97.6 Sec. 6. Minnesota Statutes 2000, section 125B.25, 97.7 subdivision 6, is amended to read: 97.8 Subd. 6. [REVENUE FOR CHARTER SCHOOLS.] (a) Each charter 97.9 school shall receive revenue equal to the greater of: 97.10 (1) the per marginal cost pupil unit amount for the 97.11 district in which the charter school is located as determined by 97.12 the commissioner according to subdivision 4; or 97.13 (2) $5; 97.14 times the adjusted marginal cost pupil units for that year, 97.15 times 65 percent. 97.16 (b) A charter school's revenue under this subdivision must 97.17 be used to pay for ongoing or recurring telecommunication access 97.18 costs, including access to datalines,and videolines97.19 connections,orincluding Internet access. 97.20 Sec. 7. Minnesota Statutes 2000, section 125B.25, 97.21 subdivision 9, is amended to read: 97.22 Subd. 9. [EXPIRATION.] This section expires on July 1, 97.2320022003. 97.24 [EFFECTIVE DATE.] This section is effective the day 97.25 following final enactment. 97.26 Sec. 8. Minnesota Statutes 2000, section 126C.40, 97.27 subdivision 1, is amended to read: 97.28 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 97.29 district finds it economically advantageous to rent or lease a 97.30 building or land for any instructional purposes or for school 97.31 storage or furniture repair, and it determines that the 97.32 operating capital revenue authorized under section 126C.10, 97.33 subdivision 13, is insufficient for this purpose, it may apply 97.34 to the commissioner for permission to make an additional capital 97.35 expenditure levy for this purpose. An application for 97.36 permission to levy under this subdivision must contain financial 98.1 justification for the proposed levy, the terms and conditions of 98.2 the proposed lease, and a description of the space to be leased 98.3 and its proposed use. 98.4 (b) The criteria for approval of applications to levy under 98.5 this subdivision must include: the reasonableness of the price, 98.6 the appropriateness of the space to the proposed activity, the 98.7 feasibility of transporting pupils to the leased building or 98.8 land, conformity of the lease to the laws and rules of the state 98.9 of Minnesota, and the appropriateness of the proposed lease to 98.10 the space needs and the financial condition of the district. 98.11 The commissioner must not authorize a levy under this 98.12 subdivision in an amount greater than the cost to the district 98.13 of renting or leasing a building or land for approved purposes. 98.14 The proceeds of this levy must not be used for custodial or 98.15 other maintenance services. A district may not levy under this 98.16 subdivision for the purpose of leasing or renting a 98.17 district-owned building or site to itself. 98.18 (c) For agreements finalized after July 1, 1997, a district 98.19 may not levy under this subdivision for the purpose of leasing: 98.20 (1) a newly constructed building used primarily for regular 98.21 kindergarten, elementary, or secondary instruction; or (2) a 98.22 newly constructed building addition or additions used primarily 98.23 for regular kindergarten, elementary, or secondary instruction 98.24 that contains more than 20 percent of the square footage of the 98.25 previously existing building. 98.26 (d) Notwithstanding paragraph (b), a district may levy 98.27 under this subdivision for the purpose of leasing or renting a 98.28 district-owned building or site to itself only if the amount is 98.29 needed by the district to make payments required by a lease 98.30 purchase agreement, installment purchase agreement, or other 98.31 deferred payments agreement authorized by law, and the levy 98.32 meets the requirements of paragraph (c). A levy authorized for 98.33 a district by the commissioner under this paragraph may be in 98.34 the amount needed by the district to make payments required by a 98.35 lease purchase agreement, installment purchase agreement, or 98.36 other deferred payments agreement authorized by law, provided 99.1 that any agreement include a provision giving the school 99.2 districts the right to terminate the agreement annually without 99.3 penalty. 99.4 (e) The total levy under this subdivision for a district 99.5 for any year must not exceed $100 times the resident pupil units 99.6 for the fiscal year to which the levy is attributable. 99.7 (f) For agreements for which a review and comment have been 99.8 submitted to the department of children, families, and learning 99.9 after April 1, 1998, the term "instructional purpose" as used in 99.10 this subdivision excludes expenditures on stadiums. 99.11 (g) The commissioner of children, families, and learning 99.12 may authorize a school district to exceed the limit in paragraph 99.13 (e) if the school district petitions the commissioner for 99.14 approval. The commissioner shall grant approval to a school 99.15 district to exceed the limit in paragraph (e) for not more than 99.16 five years if the district meets the following criteria: 99.17 (1) the school district has been experiencing pupil 99.18 enrollment growth in the preceding five years; 99.19 (2) the purpose of the increased levy is in the long-term 99.20 public interest; 99.21 (3) the purpose of the increased levy promotes colocation 99.22 of government services; and 99.23 (4) the purpose of the increased levy is in the long-term 99.24 interest of the district by avoiding over construction of school 99.25 facilities. 99.26 (h) For agreements for which a review and comment have been 99.27 submitted to the department of children, families, and learning 99.28 after April 1, 2001, the term "instructional purpose" as used in 99.29 this subdivision excludes expenditures on arenas. 99.30 Sec. 9. Laws 2000, chapter 489, article 5, section 21, is 99.31 amended to read: 99.32 Sec. 21. [ONE-TIME DEFERRED MAINTENANCE AID.] 99.33 (a) For fiscal year 2001 only, a district's one-time 99.34 deferred maintenance aid is equal to: 99.35 (1) $10 times the adjusted marginal cost pupil units for 99.36 the school year; plus 100.1 (2) $21.90 times the adjusted marginal cost pupil units for 100.2 the school year for a district that does not qualify for 100.3 alternative facilities bonding under Minnesota Statutes, section 100.4 123B.59, or under Laws 1999, chapter 241, article 4, section 25. 100.5 (b) Aid received under this section must be used for 100.6 deferred maintenance, to make accessibility improvements, or to 100.7 make fire, safety, or health repairs. 100.8 (c) This aid is paid entirely in fiscal year 2001 based on 100.9 estimated data. By January 31, 2002, the department of 100.10 children, families, and learning shall recalculate the aid for 100.11 each district using actual data, and shall adjust the general 100.12 education aid paid to school districts for fiscal year 2002 by 100.13 the amount of the difference between the estimated aid and the 100.14 actual aid. 100.15 Sec. 10. [OPERATING CAPITAL ACCOUNT DEFICIT; EXCEPTION.] 100.16 Notwithstanding Minnesota Statutes, section 123B.78, 100.17 subdivision 5, the commissioner of children, families, and 100.18 learning may allow independent school district No. 492, Austin, 100.19 to incur a deficit of up to $4,200,000 in its reserve for 100.20 capital operating account for the Westcott Field improvement 100.21 project. The deficit must be eliminated by June 30, 2011. Any 100.22 donations or contributions received by the district for the 100.23 Westcott Field improvement project must be deposited in the 100.24 reserve for capital operating account to repay the deficit. The 100.25 commissioner of children, families, and learning must certify 100.26 the financial viability of the Westcott Field improvement 100.27 project prior to approving authority under this section. 100.28 [EFFECTIVE DATE.] This section is effective the day 100.29 following final enactment. 100.30 Sec. 11. [BONDING AUTHORIZATION.] 100.31 To provide funds for the acquisition or betterment of 100.32 school facilities, independent school district No. 625, St. 100.33 Paul, may by two-thirds majority vote of all the members of the 100.34 board of directors issue general obligation bonds in one or more 100.35 series in calendar years 2003 to 2008, both inclusive, as 100.36 provided in this section. The aggregate principal amount of any 101.1 bonds issued under this section for each calendar year must not 101.2 exceed $15,000,000. Issuance of the bonds is not subject to 101.3 Minnesota Statutes, section 475.58 or 475.59. The bonds must 101.4 otherwise be issued as provided in Minnesota Statutes, chapter 101.5 475. The authority to issue bonds under this section is in 101.6 addition to any bonding authority authorized by Minnesota 101.7 Statutes, chapter 123B, or other law. The amount of bonding 101.8 authority authorized under this section must be disregarded in 101.9 calculating the bonding limit of Minnesota Statutes, chapter 101.10 123B, or any other law other than Minnesota Statutes, section 101.11 475.53, subdivision 4. 101.12 Sec. 12. [TAX LEVY FOR DEBT SERVICE.] 101.13 To pay the principal of and interest on bonds issued under 101.14 section 11, independent school district No. 625, St. Paul, must 101.15 levy a tax annually in an amount sufficient under Minnesota 101.16 Statutes, section 475.61, subdivisions 1 and 3, to pay the 101.17 principal of and interest on the bonds. The tax authorized 101.18 under this section is in addition to the taxes authorized to be 101.19 levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or 101.20 other law. 101.21 Sec. 13. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING; 101.22 ON-LINE LEARNING REPORT.] 101.23 By February 1, 2002, the commissioner of children, 101.24 families, and learning shall report to the education committees 101.25 of the legislature recommendations regarding on-line learning. 101.26 The report shall include: 101.27 (1) a review of Minnesota laws that affect on-line 101.28 learning, including funding laws and teacher licensure laws; 101.29 (2) an analysis of the feasibility and desirability of 101.30 establishing a virtual high school based on the state graduation 101.31 standards; 101.32 (3) recommendations for commissioner review and approval of 101.33 on-line learning programs; and 101.34 (4) other recommendations that foster quality 101.35 implementation of on-line learning in Minnesota schools. 101.36 Sec. 14. [INTERACTIVE WEB-BASED PROGRAM.] 102.1 General education revenue for a pupil in an approved 102.2 interactive Web-based program offered by a school district or a 102.3 charter school under the supervision of a teacher with a 102.4 Minnesota license must be paid for each hour of completed 102.5 coursework needed for grade progression, credit, or alignment 102.6 with state graduation standards. The course of study must be 102.7 approved by the commissioner of children, families, and learning 102.8 for alignment with the state graduation standards and compliance 102.9 with Minnesota Statutes, chapter 125A. Average daily membership 102.10 for a pupil shall equal the number of hours of coursework 102.11 completed divided by the number of hours required for a 102.12 full-time student in the district. Programs must report under a 102.13 separate site number. A school district or charter school is 102.14 not required to provide a pupil enrolled in the program with 102.15 access to a computer or to the Internet. 102.16 [EFFECTIVE DATE.] This section is effective for revenue for 102.17 fiscal year 2002 only. 102.18 Sec. 15. [ELECTRONIC DELIVERY OF COURSES.] 102.19 (a) The commissioner of children, families, and learning 102.20 shall award grants to school districts to establish, develop, or 102.21 make available: 102.22 (1) curriculum resources which are video or electronically 102.23 based and delivered; 102.24 (2) demonstration and prototype implementation of new 102.25 technology, including the transition of digital instructional 102.26 video sites to video over the Internet; 102.27 (3) an open learning network for agricultural and natural 102.28 resources education; and 102.29 (4) on-line courses for teachers to become certified to 102.30 teach English as a second language to children or adults. 102.31 (b) The commissioner, in cooperation with the Minnesota 102.32 education telecommunication council, shall develop the form, 102.33 procedures, timelines, and standards for grants under this 102.34 section. 102.35 Sec. 16. [DECLINING PUPIL UNIT AID; YELLOW MEDICINE EAST.] 102.36 Subdivision 1. [FISCAL YEAR 2002.] For fiscal year 2002, 103.1 independent school district No. 2190, Yellow Medicine East, is 103.2 eligible for tornado impact declining enrollment aid equal to 103.3 $156,000. 103.4 Subd. 2. [FISCAL YEAR 2003.] For fiscal year 2003, 103.5 independent school district No. 2190, Yellow Medicine East, is 103.6 eligible for tornado impact declining enrollment aid equal to 75 103.7 percent of the fiscal year 2002 appropriation in subdivision 1. 103.8 Subd. 3. [FISCAL YEAR 2004.] For fiscal year 2004, 103.9 independent school district No. 2190, Yellow Medicine East, is 103.10 eligible for tornado impact declining enrollment aid equal to 50 103.11 percent of the fiscal year 2002 appropriation in subdivision 1. 103.12 Subd. 4. [FISCAL YEAR 2005.] For fiscal year 2005, 103.13 independent school district No. 2190, Yellow Medicine East, is 103.14 eligible for tornado impact declining enrollment aid equal to 25 103.15 percent of the fiscal year 2002 appropriation in subdivision 1. 103.16 Sec. 17. [FUND TRANSFERS.] 103.17 Subdivision 1. [LAC QUI PARLE VALLEY.] Notwithstanding 103.18 Minnesota Statutes, sections 123B.58, 123B.79, or 123B.80, on 103.19 June 30, 2001, independent school district No. 2853, Lac qui 103.20 Parle Valley, may permanently transfer up to $250,000 from its 103.21 reserved account for disabled accessibility to its reserved 103.22 account for operating capital in the general fund. This 103.23 transfer is contingent upon the school district demonstrating to 103.24 the commissioner's satisfaction that the district's school 103.25 buildings are accessible to students or employees with 103.26 disabilities. 103.27 Subd. 2. [CLEVELAND.] Notwithstanding Minnesota Statutes, 103.28 sections 123B.79 or 123B.80, on June 30, 2001, independent 103.29 school district No. 391, Cleveland, may permanently transfer up 103.30 to $107,000 from its reserved operating capital account in its 103.31 general fund to the undesignated fund balance. 103.32 Subd. 3. [LAPORTE.] Notwithstanding Minnesota Statutes, 103.33 sections 123B.79 and 123B.80, on June 30, 2001, independent 103.34 school district No. 306, LaPorte, may permanently transfer up to 103.35 $141,000 from the bus purchase account in its transportation 103.36 fund to its capital expenditure fund. 104.1 Subd. 4. [RUSSELL.] Notwithstanding Minnesota Statutes, 104.2 section 123B.79 or 123B.80, on June 30, 2001, independent school 104.3 district No. 418, Russell, may permanently transfer up to 104.4 $160,000 from its reserved operating capital account in its 104.5 general fund to the undesignated fund balance. 104.6 Subd. 5. [ISLE.] (a) Notwithstanding Minnesota Statutes, 104.7 section 123B.79 or 123B.80, on June 30, 2001, upon approval of 104.8 the commissioner of children, families, and learning, 104.9 independent school district No. 473, Isle, may permanently 104.10 transfer up to $175,000 from its reserved account for disability 104.11 access to its undesignated general fund balance. 104.12 (b) Prior to making the fund transfer, independent school 104.13 district No. 473, Isle, must demonstrate to the commissioner's 104.14 satisfaction that the district's school buildings are accessible 104.15 to students or employees with disabilities. 104.16 Subd. 6. [MOUNTAIN LAKE.] Notwithstanding Minnesota 104.17 Statutes, section 123B.79 or 123B.80, on June 30, 2001, 104.18 independent school district No. 173, Mountain Lake, may 104.19 permanently transfer up to $300,000 from its reserved capital 104.20 accounts in its general fund to the undesignated fund balance. 104.21 [EFFECTIVE DATE.] This section is effective the day 104.22 following final enactment. 104.23 Sec. 18. [LEVY AUTHORITY; INDEPENDENT SCHOOL DISTRICT NO. 104.24 696, ELY.] 104.25 Independent school district No. 696, Ely, is authorized to 104.26 levy up to $100,000 in fiscal year 2003 for additional 104.27 transportation capital costs associated with the annexation of 104.28 Fall Lake township. The district is authorized to levy the 104.29 amount in this section only if the annexation of the portions of 104.30 Fall Lake township listed below by the Ely school district is 104.31 completed. Notwithstanding Minnesota Statutes, section 123A.45, 104.32 subdivisions 1, 2, 3, 4, and 5, the detachment and annexation is 104.33 effective July 1, 2001, if approved by the Ely school board and 104.34 by the school board of independent school district No. 381, Lake 104.35 Superior. Minnesota Statutes, section 123A.25, subdivision 6, 104.36 shall apply to taxable property involved in the detachment and 105.1 annexation. 105.2 The portions of Fall Lake township annexed by the Ely 105.3 school district are townships 62 through 66, range 11; townships 105.4 63 through 65, range 10; townships 63 through 65, range 9; and 105.5 townships 63 through 65, range 8. 105.6 Sec. 19. [INDEPENDENT SCHOOL DISTRICT NO. 361, 105.7 INTERNATIONAL FALLS; SWIMMING POOL LEVY.] 105.8 (a) Each year, independent school district No. 361, 105.9 International Falls, may levy for the net operational costs of 105.10 the swimming pool. The levy may not exceed the net actual costs 105.11 of operation of the swimming pool for the previous year. Net 105.12 actual costs are defined as operating costs less any operating 105.13 revenues. 105.14 (b) The district must demonstrate to the satisfaction of 105.15 the office of monitoring in the department of children, 105.16 families, and learning that the district will offer equal sports 105.17 opportunities for male and female students to use its swimming 105.18 pool, particularly in areas of access to prime practice time, 105.19 team support, and providing junior varsity and younger level 105.20 teams for girls' water sports and water sports offerings. 105.21 [EFFECTIVE DATE.] This section is effective for taxes 105.22 payable in 2002 and later. 105.23 Sec. 20. [BUILDING REMODELING.] 105.24 If the commissioner of human services uses a portion of its 105.25 appropriation for repairs and betterments to remodel building 6 105.26 at the Brainerd regional human services center to make the 105.27 structure suitable for school programs, the Brainerd school 105.28 district may levy an amount equal to district appropriations for 105.29 taxes payable in 2002 and to reimburse the commissioner for 105.30 these remodeling costs. 105.31 Sec. 21. [APPROPRIATIONS.] 105.32 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 105.33 LEARNING.] The sums indicated in this section are appropriated 105.34 from the general fund to the department of children, families, 105.35 and learning for the fiscal years designated. 105.36 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 106.1 aid according to Minnesota Statutes, section 123B.57, 106.2 subdivision 5: 106.3 $14,980,000 ..... 2002 106.4 $14,550,000 ..... 2003 106.5 The 2002 appropriation includes $1,480,000 for 2001 and 106.6 $13,500,000 for 2002. 106.7 The 2003 appropriation includes $1,500,000 for 2002 and 106.8 $13,050,000 for 2003. 106.9 Subd. 3. [DEBT SERVICE AID.] For debt service aid 106.10 according to Minnesota Statutes, section 123B.53, subdivision 6: 106.11 $25,989,000 ..... 2002 106.12 $23,716,000 ..... 2003 106.13 The 2002 appropriation includes $2,890,000 for 2001 and 106.14 $23,099,000 for 2002. 106.15 The 2003 appropriation includes $2,562,000 for 2002 and 106.16 $21,249,000 for 2003. 106.17 Subd. 4. [INTERACTIVE TELEVISION (ITV) AID.] For 106.18 interactive television (ITV) aid under Minnesota Statutes, 106.19 section 126C.40, subdivision 4: 106.20 $1,418,000 ..... 2002 106.21 $ 129,000 ..... 2003 106.22 The 2002 appropriation includes $260,000 for 2001 and 106.23 $1,158,000 for 2002. 106.24 The 2003 appropriation includes $129,000 for 2002 and -$0- 106.25 for 2003. 106.26 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 106.27 alternative facilities bonding aid, according to Minnesota 106.28 Statutes, section 123B.59, subdivision 1: 106.29 $19,279,000 ..... 2002 106.30 $19,287,000 ..... 2003 106.31 The 2002 appropriation includes $1,921,000 for 2001 and 106.32 $17,358,000 for 2002. 106.33 The 2003 appropriation includes $1,929,000 for 2002 and 106.34 $17,358,000 for 2003. 106.35 Subd. 6. [TELECOMMUNICATION ACCESS REVENUE.] For 106.36 telecommunication access cost revenue under Minnesota Statutes, 107.1 section 125B.25: 107.2 $12,421,000 ..... 2002 107.3 $12,768,000 ..... 2003 107.4 The 2002 appropriation includes $1,300,000 for 2001 and 107.5 $11,121,000 for 2002. 107.6 The 2003 appropriation includes $1,236,000 for 2002 and 107.7 $11,493,000 for 2003. 107.8 If the appropriation amount is insufficient, the 107.9 commissioner shall reduce the reimbursement rate in Minnesota 107.10 Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 107.11 for the 2001-2002 school year shall be prorated. The 107.12 reimbursement rate shall not exceed 67 percent. 107.13 Subd. 7. [DECLINING PUPIL AID; ST. PETER.] For a grant to 107.14 independent school district No. 508, St. Peter, to ameliorate 107.15 general fund operating losses associated with the March 1998 107.16 tornado: 107.17 $461,000 ..... 2002 107.18 Subd. 8. [FLOODS; DECLINING PUPIL AID.] For declining 107.19 pupil aid under Laws 2000, chapter 489, article 5, section 23: 107.20 $921,000 ..... 2002 107.21 Subd. 9. [DECLINING PUPIL AID; YELLOW MEDICINE EAST.] For 107.22 declining pupil aid for independent school district No. 2190, 107.23 Yellow Medicine East, for tornado impact declining enrollment: 107.24 $156,000 ..... 2002 107.25 $117,000 ..... 2003 107.26 Subd. 10. [GRANTS FOR THE ELECTRONIC DELIVERY OF ACADEMIC 107.27 COURSES.] For grants for the electronic delivery of academic 107.28 courses: 107.29 $1,000,000 ..... 2002 107.30 The commissioner shall consider grants to independent 107.31 school district No. 2752, Fairmont area schools, for the 107.32 development, maintenance, and lease costs of an interactive 107.33 video system for instructional purposes; to independent school 107.34 district No. 199, Inver Grove, for the design and development of 107.35 a library of on-line courses; and $100,000 is for developing an 107.36 electronic curriculum that focuses on limited English 108.1 proficiency services, reading basics, and gifted and talented 108.2 instruction to be used in all-day kindergarten classes. 108.3 The commissioner shall consider grants for on-line courses 108.4 for Greater Minnesota teachers to obtain a certificate to teach 108.5 English as a second language to adults that provide a match of 108.6 one dollar of state grant money with one dollar of private 108.7 funding. 108.8 This appropriation is available until June 30, 2003. 108.9 Subd. 11. [EDUCATION PROGRAM PLANNING GRANTS.] For 108.10 education program planning grants: 108.11 $155,000 ..... 2002 108.12 $50,000 is for independent school district No. 13, Columbia 108.13 Heights, for a education program planning grant to develop a 108.14 north metropolitan global technology magnet school that has a 108.15 focus on foreign language communications that will serve a 108.16 diverse student population with a technology intensive education 108.17 program. 108.18 $105,000 is for independent school district No. 281, 108.19 Robbinsdale, for an education program planning grant to address 108.20 student demographic changes. 108.21 This appropriation is available until June 30, 2003. 108.22 Subd. 12. [ELECTRONIC LIBRARY FOR MINNESOTA.] For 108.23 statewide licenses to on-line databases selected in cooperation 108.24 with the higher education services office for school media 108.25 centers, public libraries, state government agency libraries, 108.26 and public or private college or university libraries: 108.27 $400,000 ..... 2002 108.28 $400,000 ..... 2003 108.29 Any balance in the first year does not cancel but is 108.30 available in the second year. 108.31 Subd. 13. [TECHNOLOGY GRANT; LE CENTER.] For a technology 108.32 integration grant to independent school district No. 392, Le 108.33 Center: 108.34 $350,000 ..... 2002 108.35 The grant may be used for facilities review, land 108.36 acquisition costs, or technology purposes designed to 109.1 demonstrate successful and effective uses of technology for 109.2 students and teachers to improve student achievement. 109.3 This appropriation is available until June 30, 2003. 109.4 ARTICLE 5 109.5 NUTRITION PROGRAMS 109.6 Section 1. [124D.1156] [FAST BREAK TO LEARNING BREAKFAST 109.7 PROGRAM.] 109.8 Subdivision 1. [ELIGIBILITY.] The commissioner shall 109.9 provide funding to the 41 targeted breakfast program grant 109.10 recipients under Laws 1997, First Special Session chapter 4, 109.11 article 6, section 19, and then to public or nonpublic 109.12 elementary schools that participate in the federal School 109.13 Breakfast and Lunch Programs where at least 33 percent of the 109.14 lunches served to children during the second preceding school 109.15 year were provided free or at a reduced price. Schools shall 109.16 not charge student households for fast break to learning meals. 109.17 Schools shall encourage all children to eat a nutritious 109.18 breakfast, either at home or at school, and shall work to 109.19 eliminate barriers to participation at school such as inadequate 109.20 facilities and transportation. 109.21 Subd. 2. [PROGRAM.] The fast break to learning school 109.22 breakfast program enables schools participating in the federal 109.23 School Breakfast and Lunch Programs to cover the costs for 109.24 school breakfast without charging student households. 109.25 Subd. 3. [PROGRAM REIMBURSEMENT.] State funds are provided 109.26 to reimburse fast break to learning school breakfasts. Each 109.27 school year, the state must reimburse schools for the difference 109.28 between the per meal federal rate of reimbursement and the per 109.29 meal state average cost. Meals that are reimbursed at a federal 109.30 rate that is equal to or higher than the state average cost do 109.31 not qualify for fast break to learning funds. Schools must use 109.32 the funds to provide school breakfast to school children every 109.33 day school is in session. 109.34 Sec. 2. [124D.1195] [COMMODITY DONATED FOOD REVOLVING 109.35 FUND.] 109.36 A revolving fund is established for the purpose of 110.1 depositing cash received for commodity donated foods that have 110.2 been lost, damaged, recalled, or diverted for processing. The 110.3 state shall use the fund to issue payments for the value of the 110.4 lost, damaged, recalled, or diverted commodity donated foods and 110.5 related costs. 110.6 Sec. 3. Minnesota Statutes 2000, section 127A.45, 110.7 subdivision 12, is amended to read: 110.8 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 110.9 hundred percent of the aid for the current fiscal year must be 110.10 paid for the following aids: reimbursement for transportation 110.11 to post-secondary institutions, according to section 124D.09, 110.12 subdivision 22; aid for the program for adults with 110.13 disabilities, according to section 124D.56, subdivision 2; 110.14school lunch aid, according to section 124D.111;hearing 110.15 impaired support services aid, according to section 124D.57; 110.16 Indian post-secondary preparation grants according to section 110.17 124D.85; integration grants according to Laws 1989, chapter 329, 110.18 article 8, section 14, subdivision 3; and debt service aid 110.19 according to section 123B.53, subdivision 6. 110.20 Sec. 4. Minnesota Statutes 2000, section 127A.45, is 110.21 amended by adding a subdivision to read: 110.22 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 110.23 subdivision 3, the state shall pay 100 percent of the aid for 110.24 the current year according to sections 124D.111, 124D.115, and 110.25 124D.118 and 90 percent of the aid for the current year 110.26 according to section 124D.1156 based on submitted monthly 110.27 vouchers showing meals and milk served. The remaining ten 110.28 percent according to section 124D.1156 shall be paid by October 110.29 30 of the following fiscal year. 110.30 Sec. 5. [IDENTIFICATION OF CHILDREN ELIGIBLE FOR FREE AND 110.31 REDUCED-PRICE SCHOOL MEALS.] 110.32 (a) Notwithstanding other law to the contrary, the 110.33 commissioner of revenue may match tax return information to 110.34 student data supplied by the commissioner of children, families, 110.35 and learning and disclose the results to the commissioner of 110.36 children, families, and learning for the purpose of a pilot 111.1 program to evaluate the feasibility of the data match for 111.2 identifying children who are eligible for free and reduced-price 111.3 school meals and verifying the eligibility of school meal 111.4 applicants. The commissioner of revenue shall disclose or 111.5 confirm only the eligibility status of children for free or 111.6 reduced-price school meals and shall not disclose income data. 111.7 The commissioner of children, families, and learning shall not 111.8 disclose the results of the data match to schools. The pilot 111.9 program shall end December 31, 2002. 111.10 (b) Notwithstanding other law to the contrary, essential 111.11 data on pupils under Minnesota Statutes, section 125B.07, 111.12 subdivision 6, may be disclosed to the department of revenue 111.13 until December 31, 2002, for the purposes of paragraph (a). 111.14 (c) The commissioner of children, families, and learning 111.15 shall prepare a report on the feasibility of using the data 111.16 match for the purposes of identifying children eligible for free 111.17 and reduced-price meals and verifying self-reported income of 111.18 school meal applicants. 111.19 Sec. 6. [APPROPRIATIONS.] 111.20 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 111.21 LEARNING.] The sums indicated in this section are appropriated 111.22 from the general fund to the department of children, families, 111.23 and learning for the fiscal years designated. 111.24 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 111.25 according to Minnesota Statutes, section 124D.111, and Code of 111.26 Federal Regulations, title 7, section 210.17, and for school 111.27 milk aid according to Minnesota Statutes, section 124D.118: 111.28 $8,710,000 ..... 2002 111.29 $8,950,000 ..... 2003 111.30 (b) Not more than $800,000 of the amount appropriated each 111.31 year may be used for school milk aid. 111.32 Subd. 3. [SCHOOL BREAKFAST.] For school breakfast aid 111.33 under Minnesota Statutes, section 124D.115: 111.34 $640,000 ..... 2002 111.35 $700,000 ..... 2003 111.36 Subd. 4. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 112.1 food service replacement aid under Minnesota Statutes, section 112.2 124D.119: 112.3 $150,000 ..... 2002 112.4 $150,000 ..... 2003 112.5 Subd. 5. [FAST BREAK TO LEARNING GRANTS.] For fast break 112.6 to learning grants under Minnesota Statutes, section 124D.1156: 112.7 $2,446,000 ..... 2002 112.8 $2,839,000 ..... 2003 112.9 The 2002 appropriation includes $0 for 2001 and $2,446,000 112.10 for 2002. 112.11 The 2003 appropriation includes $272,000 for 2002 and 112.12 $2,567,000 for 2003. 112.13 Sec. 7. [REPEALER.] 112.14 Minnesota Statutes 2000, section 124D.1155, is repealed. 112.15 ARTICLE 6 112.16 EARLY CHILDHOOD PROGRAMS 112.17 Section 1. Minnesota Statutes 2000, section 119A.05, is 112.18 amended to read: 112.19 119A.05 [FUNDING CONSOLIDATION.] 112.20 Subdivision 1. [AUTHORITY FOR FUNDING CONSOLIDATION AND 112.21 INTEGRATION.] (a) Notwithstanding existing law governing 112.22 allocation of funds by local grantees, mode of service delivery, 112.23 grantee planning and reporting requirements, and other 112.24 procedural requirements for the grant programs identified in 112.25 this section, a local grantee may elect to consolidate all or a 112.26 portion of funding received from the programs under subdivision 112.27 5 in a collaboration funding plan, if all conditions specified 112.28 in this section are satisfied. County boards, school boards, or 112.29 governing boards of other grantees may elect not to consolidate 112.30 funding for a program. 112.31 (b) Funding for services provided to a community under 112.32 sections 119A.52, 119B.189 to 119B.26, 124D.13, and 124D.15 must 112.33 be determined according to the funding formulas and distributed 112.34 as identified in applicable program laws and rules. 112.35 Notwithstanding existing law governing allocation of funds to 112.36 local programs, mode of service delivery, program planning, 113.1 traditional geographic boundaries, and other procedural 113.2 requirements for early childhood care and education programs 113.3 under the jurisdiction of the commissioner, a community early 113.4 childhood council may elect to integrate all or a portion of 113.5 funding available through these programs under an integrated 113.6 funding and service plan, if all requirements under this section 113.7 are met. 113.8 (c) For grantees electing consolidation or integration, the 113.9 commissioner may, with the approval of the board of government 113.10 innovation and cooperation, waive all provisions of rules 113.11 inconsistent with the intent of this section. This waiver 113.12 authority does not apply to rules governing client protections, 113.13 due process, or inclusion of clients, parents, cultures, and 113.14 ethnicities in decision making. Funding to a local grantee must 113.15 be determined according to the funding formulas or allocation 113.16 rules governing the individual programs listed in section 113.17 119A.04. 113.18 (d) For communities consolidating or integrating funds 113.19 under paragraph (b), the commissioner shall provide technical 113.20 assistance to a community or planning group to aid in 113.21 development of an early childhood care and education plan that 113.22 describes strategies to be used to target resources to children 113.23 at risk and support achievement of positive outcomes for all 113.24 children and families in the community and the method or methods 113.25 used to evaluate performance under the community plan. 113.26 Subd. 2. [ACCOUNT.] A consolidated funding account is 113.27 established under the control of the commissioner of children, 113.28 families, and learning for funds consolidated under subdivision 113.29 1, paragraph (a). The purpose of this account is to clearly 113.30 identify and provide accountability for funds previously 113.31 distributed to local grantees through the individual categorical 113.32 grant programs in subdivision 5. By direction of the 113.33 commissioner, after consultation with the partnership planning 113.34 team and, upon a finding that the conditions specified in this 113.35 section have been satisfied, funds must be transmitted to this 113.36 account and allocated to local grantees by the commissioner. 114.1 Subd. 3. [ELIGIBILITY; ACCOUNTABILITY.] (a) To be eligible 114.2 to receive funding for local consolidation, as provided for in 114.3this sectionsubdivision 1, paragraph (a), a grantee must meet 114.4 the following requirements: 114.5 (1) demonstrate participation by counties and schools in a 114.6 local collaborative process as defined in section 124D.23 or in 114.7 a similar process of collaboration with other local governments 114.8 and community organizations which satisfies the governance and 114.9 planning guidelines published by the commissioner as provided 114.10 for in this section; 114.11 (2) document consultation by counties and schools with 114.12 community action agencies and other community groups; 114.13 (3) complete and document, according to guidelines 114.14 published by the commissioner, a collaborative planning process 114.15 which clearly identifies: 114.16 (i) allocation of resources in the collaboration annual 114.17 funding plan; 114.18 (ii) a description of the governance structure for the 114.19 execution of the funding plan; 114.20 (iii) outcomes consistent with the statewide goals 114.21 identified in this chapter and in statutes governing previous 114.22 categorical funding included in the collaboration funding plan; 114.23 and 114.24 (iv) indicators sufficient to measure improvement or 114.25 decline in specified outcomes compared to baseline performance; 114.26 (4) conduct a public hearing on the funding consolidation 114.27 plan under chapter 13D; 114.28 (5) agree to periodically report information concerning 114.29 progress in addressing outcomes, as provided for in guidelines 114.30 to be published by the commissioner; and 114.31 (6) execute a written agreement between the commissioner 114.32 and the local grantees setting forth responsibilities, 114.33 obligations, and conditions consistent with this section. The 114.34 agreement must state that the funds that are being locally 114.35 consolidated will be used collectively only to achieve the 114.36 objectives of the separate programs being locally consolidated. 115.1 (b) To be eligible to receive funding for local 115.2 integration, as provided for in subdivision 1, paragraph (b), a 115.3 grantee must meet the following requirements: 115.4 (1) submit to the commissioner a comprehensive plan for 115.5 integration of early childhood care and education funds and 115.6 programs on a communitywide basis that identifies: 115.7 (i) allocation of resources in the annual early childhood 115.8 integrated funding plan; 115.9 (ii) a description of the governance structure for the 115.10 execution of the funding plan; 115.11 (iii) outcomes consistent with the statewide goals 115.12 identified in this chapter and in statutes governing previous 115.13 categorical funding included in the early childhood integrated 115.14 funding plan; and 115.15 (iv) indicators sufficient to measure improvement or 115.16 decline in specified outcomes compared to baseline performance; 115.17 (2) demonstrate participation and agreement on the plan by 115.18 counties, schools, child care providers, Early Childhood Family 115.19 Education (ECFE), Head Start, and other school or 115.20 community-based early childhood care and education programs in a 115.21 local collaborative process as defined in section 124D.23 or in 115.22 a similar process of collaboration with other local governments 115.23 and community organizations that satisfies the governance and 115.24 planning guidelines published by the commissioner as provided 115.25 for in this section; 115.26 (3) agree to periodically report information concerning 115.27 progress in addressing outcomes, as provided for in guidelines 115.28 to be published by the commissioner; and 115.29 (4) execute a written agreement between the commissioner 115.30 and the local grantees setting forth responsibilities, 115.31 obligations, and conditions consistent with this section. The 115.32 agreement must state that the funds that are being locally 115.33 integrated will be used collectively only to achieve the 115.34 objectives of the separate programs being locally integrated. 115.35 Subd. 4. [GEOGRAPHIC AREA.] (a) The geographic area for a 115.36 local consolidated funding process under subdivision 1, 116.1 paragraph (a), must be an entire county, a multicounty area, or, 116.2 with the approval of the county board and commissioner, a 116.3 subcounty area, if county funds are used. The process may 116.4 provide for coordination of service delivery in jurisdictions 116.5 that extend across county boundaries. 116.6 (b) The geographic area for a local early childhood 116.7 integrated funding process under subdivision 1, paragraph (b), 116.8 may be an entire county, school district, group of school 116.9 districts, or political subdivision or combination. The process 116.10 may provide for coordination of service delivery in 116.11 jurisdictions that extend across county boundaries. 116.12 Subd. 5. [PROGRAMS INCLUDED.] Grant programs transferred 116.13 to the department of children, families, and learning in section 116.14 119A.04 and programs transferred from the abolished department 116.15 of education are eligible for local funding consolidation under 116.16 subdivision 1, paragraph (a). Eligibility of any federally 116.17 funded programs for local funding consolidation is conditioned 116.18 upon obtaining necessary federal waivers or changes in federal 116.19 law. 116.20 Subd. 6. [ENTRY INTO PROGRAM.] Grantees who meet all 116.21 requirements of this section may elect to begin using funding 116.22 for a local consolidated or integrated funding process beginning 116.23 January 1,19962001, or at each six-month interval.Other116.24local grantees that meet all requirements of this section may116.25elect to begin using funding for a local consolidation funding116.26process beginning July 1, 1996, or at each six-month interval.116.27 Subd. 7. [SANCTIONS.] If the commissioner finds that a 116.28 grantee has failed to comply with this section, the grantee 116.29 becomes subject to all requirements of individual grant programs 116.30 as specified in statutes and rules. 116.31 Sec. 2. Minnesota Statutes 2000, section 119A.52, is 116.32 amended to read: 116.33 119A.52 [DISTRIBUTION OF APPROPRIATION.] 116.34 (a) The commissionerof children, families, and learning116.35 must distribute money appropriated forthat purpose toHead 116.36 Startprogramprograms to grantees to expand services and to 117.1 serve additional low-income children. Grantees may use state 117.2 funds to provide services to children birth to age five and 117.3 their families with incomes up to 120 percent of the federal 117.4 poverty guidelines. Money must be allocated to each project 117.5 Head Start grantee in existence on the effective date of Laws 117.6 1989, chapter 282. Migrant and Indian reservation grantees must 117.7 be initially allocated money based on the grantees' share of 117.8 federal funds. The remaining money must be initially allocated 117.9 to the remaining local agencies based equally on the agencies' 117.10 share of federal funds and on the proportion of eligible 117.11 children in the agencies' service area who are not currently 117.12 being served.A Head Start grantee must be funded at a per117.13child rate equal to its contracted, federally funded base level117.14for program accounts 20, 22, and 25 at the start of the fiscal117.15year.In allocating funds under this paragraph, the 117.16 commissioner of children, families, and learning must assure 117.17 that each Head Start grantee is allocated no less funding in any 117.18 fiscal year than was allocated to that grantee in fiscal year 117.1919931999. The commissioner may provide additional funding to 117.20 grantees for start-up costs incurred by grantees due to the 117.21 increased number of children to be served.Before paying money117.22to the grantees, the commissioner must notify each grantee of117.23its initial allocation, how the money must be used, and the117.24number of low-income children that must be served with the117.25allocation.Each grantee must notify the commissioner of the 117.26 number of low-income children it will be able to serve. For any 117.27 grantee that cannot utilize its full allocation, the 117.28 commissioner must reduce the allocation proportionately. Money 117.29 available after the initial allocations are reduced must be 117.30 redistributed to eligible grantees. 117.31 (b) Up to 11 percent of the funds appropriated annually may 117.32 be used to provide grants to local Head Start agenciesto117.33provide fundsfor innovative programs designed either to target 117.34 Head Start resources to particular at-risk groups of children or 117.35 to provide services in addition to those currently allowable 117.36 under federal Head Start regulations. The commissioner must 118.1 award funds for innovative programs under this paragraph on a 118.2 competitive basis. 118.3 (c) To be eligible for state funds under this section, each 118.4 existing grantee or applicant must present a work plan to the 118.5 commissioner for approval. The work plan must include the 118.6 estimated number of low-income children and families to be 118.7 served, a description of the program design and service delivery 118.8 areas which meets the needs of and encourages access by 118.9 low-income working families, a program design that ensures fair 118.10 and equitable access to services that meet Head Start 118.11 regulations and program performance standards for all 118.12 populations in the service area, and a plan for coordinating 118.13 services to maximize assistance for child care costs available 118.14 to families under chapter 119B. In addition, the work plan must 118.15 assure coordinated service delivery with other early childhood 118.16 care and education services. 118.17 Sec. 3. Minnesota Statutes 2000, section 119B.011, 118.18 subdivision 7, is amended to read: 118.19 Subd. 7. [CHILD CARE SERVICES.] "Child care services" 118.20 means child care as defined in subdivision 5, providedin family118.21day care homes, group day care homes, nursery schools, day118.22nurseries, child day care centers, head start, and extended day118.23school age child care programsin or out of the child's home. 118.24 Sec. 4. Minnesota Statutes 2000, section 119B.011, 118.25 subdivision 19, is amended to read: 118.26 Subd. 19. [PROVIDER.] "Provider" meansa child care118.27license holder who operates a family child care home, a group118.28family child care home, a child care center, a nursery school, a118.29day nursery, a school age care program; a license-exempt school118.30age care program operating under the auspices of a local school118.31board or a park or recreation board of a city of the first class118.32that has adopted school age care guidelines which meet or exceed118.33guidelines recommended by the department, or a nonlicensedan 118.34 individual or child care center or facility either licensed or 118.35 unlicensed providing legal child care services as defined under 118.36 section 245A.03. A legally unlicensed registered family child 119.1 care providerwho ismust be at least 18 years of age, andwho119.2isnot a member of the MFIP assistance unit or a member of the 119.3 family receiving child care assistance under this chapter. 119.4 Sec. 5. Minnesota Statutes 2000, section 119B.011, is 119.5 amended by adding a subdivision to read: 119.6 Subd. 19a. [STATE MEDIAN INCOME.] "State median income" 119.7 means the state's annual median income for a family of four, 119.8 adjusted for family size, developed by the Bureau of Census and 119.9 published annually by the United States Department of Health and 119.10 Human Services in the Federal Register. 119.11 Sec. 6. Minnesota Statutes 2000, section 119B.011, is 119.12 amended by adding a subdivision to read: 119.13 Subd. 19b. [STUDENT.] "Student" means an individual 119.14 enrolled in an education program. A student is a full-time 119.15 student if enrolled in an education program a minimum equivalent 119.16 of 12 credits or 20 hours of classroom training per week. A 119.17 student is considered a part-time student if enrolled in an 119.18 education program up to the minimum of full-time student status. 119.19 Sec. 7. Minnesota Statutes 2000, section 119B.02, 119.20 subdivision 1, is amended to read: 119.21 Subdivision 1. [CHILD CARE SERVICES.] The commissioner 119.22 shall develop standards for county and human services boards to 119.23 provide child care services to enable eligible families to 119.24 participate in employment, training, or education programs. 119.25Within the limits of available appropriations,The commissioner 119.26 shall distribute money to counties to reduce the costs of child 119.27 care for eligible families. The commissioner shall adopt rules 119.28 to govern the program in accordance with this section. The 119.29 rules must establish a sliding schedule of fees for parents 119.30 receiving child care services. The rules shall provide that 119.31 funds received as a lump sum payment of child support arrearages 119.32 shall not be counted as income to a family in the month received 119.33 but shall be prorated over the 12 months following receipt and 119.34 added to the family income during those months.In the rules119.35adopted under this section, county and human services boards119.36shall be authorized to establish policies for payment of child120.1care spaces for absent children, when the payment is required by120.2the child's regular provider. The rules shall not set a maximum120.3number of days for which absence payments can be made, but120.4instead shall direct the county agency to set limits and pay for120.5absences according to the prevailing market practice in the120.6county. County policies for payment of absences shall be120.7subject to the approval of the commissioner.The commissioner 120.8 shall maximize the use of federal money under title I and title 120.9 IV of Public Law Number 104-193, the Personal Responsibility and 120.10 Work Opportunity Reconciliation Act of 1996, and other programs 120.11 that provide federal or state reimbursement for child care 120.12 services for low-income families who are in education, training, 120.13 job search, or other activities allowed under those programs. 120.14 Money appropriated under this section must be coordinated with 120.15 the programs that provide federal reimbursement for child care 120.16 services to accomplish this purpose.Federal reimbursement120.17obtained must be allocated to the county that spent money for120.18child care that is federally reimbursable under programs that120.19provide federal reimbursement for child care services.The 120.20countiescommissioner shall use the federal money to expand 120.21 child care services. The commissioner may adopt rules under 120.22 chapter 14 to implement and coordinate federal program 120.23 requirements. If the November forecast shows biennial 120.24 expenditures projected to be above 110 percent of the biennial 120.25 appropriation, the commissioner, in conjunction with the 120.26 commissioner of finance, shall prepare a plan to bring biennial 120.27 program spending to within 110 percent of the consolidated child 120.28 care assistance appropriation for that biennium. The proposal 120.29 to control program expenditures will be delivered to the 120.30 legislature or legislative advisory commission by January 15 120.31 following the November forecast. The proposal will take effect 120.32 ten legislative session days following the release of the 120.33 February forecast if the forecast continues to exceed the 110 120.34 percent limit unless the legislature enacts an alternative 120.35 solution. 120.36 Sec. 8. Minnesota Statutes 2000, section 119B.02, 121.1 subdivision 2, is amended to read: 121.2 Subd. 2. [CONTRACTUAL AGREEMENTS WITH TRIBES.] The 121.3 commissioner may enter into contractual agreements with a 121.4 federally recognized Indian tribe with a reservation in 121.5 Minnesota to carry out the responsibilities of county human 121.6 service agencies to the extent necessary for the tribe to 121.7 operate child care assistance programs for families eligible 121.8 under sections119B.03119B.09 and119B.05119B.10. An 121.9 agreement may allow for the tribe to be reimbursed for child 121.10 care assistance services provided under section 119B.05. The 121.11 commissioner shall consult with the affected county or counties 121.12 in the contractual agreement negotiations, if the county or 121.13 counties wish to be included, in order to avoid the duplication 121.14 of county and tribal child care services.Funding to support121.15services under section 119B.03 may be transferred to the121.16federally recognized Indian tribe with a reservation in121.17Minnesota from allocations available to counties in which121.18reservation boundaries lie. When funding is transferred under121.19section 119B.03, the amount shall be commensurate to estimates121.20of the proportion of reservation residents with characteristics121.21identified in section 119B.03, subdivision 6, to the total121.22population of county residents with those same characteristics.121.23 Sec. 9. Minnesota Statutes 2000, section 119B.03, 121.24 subdivision 3, is amended to read: 121.25 Subd. 3. [ELIGIBLE PARTICIPANTS.] Families that meet the 121.26 eligibility requirements under sections119B.07,119B.09,and 121.27 119B.10, except MFIP participants, work first participants, and121.28transition year familiesare eligible for child care 121.29 assistanceunder the basic sliding feethrough the child care 121.30 assistance program. Families enrolled in thebasic sliding fee121.31 child care assistance program shall be continued until they are 121.32 no longer eligible. Child care assistance provided through the 121.33 child care fund is considered assistance to the parent. 121.34 Sec. 10. Minnesota Statutes 2000, section 119B.03, is 121.35 amended by adding a subdivision to read: 121.36 Subd. 3a. [ALLOCATION FORMULA.] (a) Funds appropriated for 122.1 families who apply for child care assistance with incomes above 122.2 50 percent state median income and below 75 percent state median 122.3 income shall be allocated on a calendar year basis. The 122.4 following formula shall be used for the first biennium of the 122.5 consolidated program. The commissioner shall propose to the 122.6 2003 legislature a new funding formula for funds under this 122.7 section based on the history of expenditures since consolidation 122.8 of the child care assistance program. 122.9 (b) Funds shall be allocated in proportion to each county's 122.10 total expenditures for the basic sliding fee child care program 122.11 reported during calendar year 2000. 122.12 (c) When the amount of funds available under this section 122.13 is less than the amount available in the previous year, each 122.14 county's previous year allocation shall be reduced in proportion 122.15 to the reduction in the statewide funding. 122.16 Sec. 11. Minnesota Statutes 2000, section 119B.03, 122.17 subdivision 9, is amended to read: 122.18 Subd. 9. [PORTABILITY POOLFAMILY MOVE; CONTINUED 122.19 PARTICIPATION.] (a)The commissioner shall establish a pool of122.20up to five percent of the annual appropriation for the basic122.21sliding fee program to provide continuous child care assistance122.22for eligible families who move between Minnesota counties. At122.23the end of each allocation period, any unspent funds in the122.24portability pool must be used for assistance under the basic122.25sliding fee program. If expenditures from the portability pool122.26exceed the amount of money available, the reallocation pool must122.27be reduced to cover these shortages.122.28(b) To be eligible for portable basic sliding fee122.29assistance, a family that has moved from a county in which itA 122.30 family receiving child care assistance under the child care fund 122.31 that has moved from a county in which the family was receiving 122.32basic sliding feechild care assistance toaanother county 122.33with a waiting list for the basic sliding fee programmust be 122.34 admitted into the receiving county's child care assistance 122.35 program if the family: 122.36 (1)meetmeets the income and eligibility guidelines for 123.1 thebasic sliding feechild care assistance program; and 123.2 (2)notifynotifies the new county of residence within30123.3 60 days of moving andapplyapplies forbasic sliding fee123.4 child care assistance in the new county of residence. 123.5(c)(b) The receiving county must:123.6(1)accept administrative responsibilityfor applicants for123.7portable basic sliding fee assistanceat the end of the two 123.8 months of assistance under the Unitary Residency Act;. 123.9(2) continue basic sliding fee assistance for the lesser of123.10six months or until the family is able to receive assistance123.11under the county's regular basic sliding program; and123.12(3) notify the commissioner through the quarterly reporting123.13process of any family that meets the criteria of the portable123.14basic sliding fee assistance pool.123.15 Sec. 12. Minnesota Statutes 2000, section 119B.03, 123.16 subdivision 10, is amended to read: 123.17 Subd. 10. [APPLICATION; ENTRY POINTS.] Two or more methods 123.18 of applying for thebasic sliding feechild care assistance 123.19 program under this chapter must be available to applicants in 123.20 each county. To meet the requirements of this subdivision, a 123.21 county may provide alternative methods of applying for 123.22 assistance, including, but not limited to, a mail application, 123.23 or application sites that are located outside of government 123.24 offices. 123.25 Sec. 13. Minnesota Statutes 2000, section 119B.05, 123.26 subdivision 5, is amended to read: 123.27 Subd. 5. [FEDERAL REIMBURSEMENT.] Counties and the state 123.28 shall maximize their federal reimbursement under federal 123.29 reimbursement programs for money spent for persons eligible 123.30 under this chapter. The commissioner shall allocate any federal 123.31 earnings to the county to be used to expand child care services 123.32 under this chapter. 123.33 Sec. 14. Minnesota Statutes 2000, section 119B.061, 123.34 subdivision 1, is amended to read: 123.35 Subdivision 1. [ESTABLISHMENT.] A family in which a parent 123.36 provides care for the family's infant child may receive a 124.1 subsidy in lieu of assistance if the family is eligible for, or 124.2 is receiving assistance under thebasic sliding feechild care 124.3 assistance program. An eligible family must meet the 124.4 eligibility factors under section 119B.09, the income criteria 124.5 under section 119B.12, and the requirements of this 124.6 section.Subject to federal match and maintenance of effort124.7requirements for the child care and development fund, the124.8commissioner shall establish a pool of up to seven percent of124.9the annual appropriation for the basic sliding fee program to124.10provide assistance under the at-home infant child care program.124.11 At the end of a fiscal year, the commissioner may carry forward 124.12 any unspent funds under this section to the next fiscal year 124.13 within the same biennium for assistance under thebasic sliding124.14feechild care assistance program. 124.15 Sec. 15. Minnesota Statutes 2000, section 119B.061, 124.16 subdivision 4, is amended to read: 124.17 Subd. 4. [ASSISTANCE.] (a) A family is limited to a 124.18 lifetime total of 12 months of assistance underthis124.19sectionsubdivision 2. The maximum rate of assistance is equal 124.20 to7590 percent of the rate established under section 119B.13 124.21 for care of infants in licensed family child care in the 124.22 applicant's county of residence. Assistance must be calculated 124.23 to reflect the parent fee requirement under section 119B.12 for 124.24 the family's actual income level and family size while the 124.25 family is participating in the at-home infant child care program 124.26 under this section. 124.27 (b) A participating family must report income and other 124.28 family changes as specified in the county's plan under section 124.29 119B.08, subdivision 3.The family must treat any assistance124.30received under this section as unearned income.124.31 (c) Persons who are admitted to the at-home infant care 124.32 program retain their position in anybasic sliding feechild 124.33 care assistance program or on any waiting list attained at the 124.34 time of admittance. If they are on the waiting list, they must 124.35 advance as if they had not been admitted to the program. 124.36 Persons leaving the at-home infant care program re-enter 125.1 thebasic sliding feechild care assistance program at the 125.2 position they would have occupied or the waiting list at the 125.3 position to which they would have advanced. Persons who would 125.4 have attained eligibility for thebasic sliding feechild care 125.5 assistance program must be given assistance or advance to the 125.6 top of the waiting list when they leave the at-home infant care 125.7 program. Persons admitted to the at-home infant care program 125.8 who are not on abasic sliding feewaiting list may apply to the 125.9basic sliding feechild care assistance program, and if 125.10 eligible, be placed on the waiting list. 125.11 (d) The time that a family receives assistance under this 125.12 section must be deducted from the one-year exemption from work 125.13 requirements under the MFIP program. 125.14 (e) Assistance under this section does not establish an 125.15 employer-employee relationship between any member of the 125.16 assisted family and the county or state. 125.17 Sec. 16. Minnesota Statutes 2000, section 119B.08, is 125.18 amended to read: 125.19 119B.08 [REPORTING AND PAYMENTS.] 125.20 Subdivision 1. [REPORTS.] The commissioner shall specify 125.21 requirements for reports under the same authority as provided to 125.22 the commissioner of human services in section 256.01, 125.23 subdivision 2, paragraph (17). 125.24 Subd. 2. [QUARTERLY PAYMENTS.] The commissioner may make 125.25 payments to each county in quarterly installments.The125.26commissioner may certify an advance up to 25 percent of the125.27allocation. SubsequentPayments shall be made on a 125.28 reimbursement basis for reported expenditures and may be 125.29 adjusted for anticipated spending patterns. Payments may be 125.30 withheld if quarterly reports are incomplete or untimely. 125.31 Subd. 3. [CHILD CARE FUND PLAN.] The county and designated 125.32 administering agency shall submit a child care fund plan to the 125.33 commissioneran annual child care fund plan in its biennial125.34community social services plan. The commissioner shall 125.35 establish the dates by which the county must submit the plans. 125.36 The plan shall include:126.1(1) a narrative of the total program for child care126.2services, including all policies and procedures that affect126.3eligible families and are used to administer the child care126.4funds;126.5(2) the methods used by the county to inform eligible126.6families of the availability of child care assistance and126.7related services;126.8(3) the provider rates paid for all children with special126.9needs by provider type;126.10(4) the county prioritization policy for all eligible126.11families under the basic sliding fee program; and126.12(5) otherinformation as requested by the department to 126.13 ensure compliance with the child care fund statutes and rules 126.14 promulgated by the commissioner. 126.15 The commissioner shall notify counties within6090 days of 126.16 the date the plan is submitted whether the plan is approved or 126.17 the corrections or information needed to approve the plan. The 126.18 commissioner shall withholda county's allocation until it has126.19an approved plan. Plans not approved by the end of the second126.20quarter after the plan is due may result in a 25 percent126.21reduction in allocation. Plans not approved by the end of the126.22third quarter after the plan is due may result in a 100 percent126.23reduction in the allocation to the countypayments to a county 126.24 until it has an approved plan. Counties are to maintain 126.25 services despite anyreduction in their allocationwithholding 126.26 of payments due to plans not being approved. 126.27 Subd. 3a. [RESTRICTED INCOME ELIGIBILITY.] If income 126.28 eligibility parameters have been restricted, counties may 126.29 continue to move families with income above the restricted 126.30 eligibility parameters but not to exceed the parameters in 126.31 section 119B.09, subdivision 1, paragraph (a), clause (1), into 126.32 the program using county funds. These expenditures must be 126.33 reported separately and counties will only be reimbursed for 126.34 these expenditures if, at the end of the biennium, total program 126.35 expenditures are at or below the most recent forecast. 126.36 Subd. 3b. [WAITING LIST.] Counties that do not move 127.1 families into the program with county funds must start a waiting 127.2 list if eligibility parameters are restricted and must report 127.3 this waiting list to the commissioner with other reports as 127.4 specified in subdivision 1. Counties must determine income, 127.5 authorized activities, and family size before placing a family 127.6 on the waiting list. 127.7 Subd. 3c. [FAMILY INFORMATION.] Counties that move 127.8 families into the program under subdivision 3a or place families 127.9 on the waiting list under subdivision 3b must report the number 127.10 of families served or placed on the waiting list, the date each 127.11 family began to receive service or was placed on the waiting 127.12 list, the income of the family and family size when they began 127.13 to receive service or were placed on the waiting list, and the 127.14 estimated cost of serving each family served under subdivision 127.15 3a to the commissioner on a form designated by the commissioner. 127.16 Subd. 4. [TERMINATION OF ALLOCATION.] The commissioner may 127.17 withhold,or reduce, or terminate the allocation of anyfunds 127.18 intended to reimburse counties for child care costs under the 127.19 child care fund if the countythatdoes not meet the reporting, 127.20 planning, or other requirements of this program. The 127.21commissioner shall reallocate to other counties money so reduced127.22or terminatedwithholding or reduction of funds under this 127.23 subdivision does not relieve counties of their requirements 127.24 under this chapter. 127.25 Sec. 17. Minnesota Statutes 2000, section 119B.09, 127.26 subdivision 1, is amended to read: 127.27 Subdivision 1. [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 127.28 APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 127.29 must be available to families who need child care to find or 127.30 keep employment or to obtain the training or education necessary 127.31 to find employment as defined in section 119B.10, and who:127.32(1) meet the requirements of section 119B.05; receive MFIP127.33assistance; and are participating in employment and training127.34services under chapter 256J or 256K;127.35(2) have household income below the eligibility levels for127.36MFIP; or128.1(3)have household income within a rangeestablished by the128.2commissioner.of 75 percent of state median income (SMI) or 128.3 below at program entry and above 75 percent of SMI at program 128.4 exit. The child care assistance program must be forecasted for 128.5 families who enter with incomes up to 50 percent of SMI. 128.6 Assistance to families who enter the child care assistance 128.7 program with incomes above 50 percent of SMI is subject to a 128.8 capped allocation and counties must establish a waiting list 128.9 under section 119B.08, subdivision 3b, if families cannot be 128.10 served with available funds. 128.11 (b) Child care services must be made available as in-kind 128.12 services. 128.13 (c) All applicants for child care assistance and families 128.14 currently receiving child care assistance must be assisted and 128.15 required to cooperate in establishment of paternity and 128.16 enforcement of child support obligations for all children in the 128.17 family as a condition of program eligibility. For purposes of 128.18 this section, a family is considered to meet the requirement for 128.19 cooperation when the family complies with the requirements of 128.20 section 256.741. 128.21 Sec. 18. Minnesota Statutes 2000, section 119B.09, 128.22 subdivision 2, is amended to read: 128.23 Subd. 2. [SLIDING FEE.] Child care services to eligible 128.24 familieswith incomes in the commissioner's established range128.25 must be made available on a sliding fee basis. The upper limit 128.26 ofthe rangeeligibility must beneither less than 70 percent128.27nor more than 9075 percent of the state median incomefor a128.28family of four, adjusted for family size. 128.29 Sec. 19. Minnesota Statutes 2000, section 119B.09, 128.30 subdivision 7, is amended to read: 128.31 Subd. 7. [DATE OF ELIGIBILITY FOR ASSISTANCE.] The date of 128.32 eligibility for child care assistance under this chapter is the 128.33 later of the date the application was signed;or the beginning 128.34 date of employment, education, or training; or the date a 128.35 determination has been made that the applicant is a participant 128.36 in employment and training services underMinnesota Rules, part129.13400.0080, subpart 2a, orchapter 256J or 256K. The date of 129.2 eligibility for thebasic sliding feeat-home infant child care 129.3 program is the later of the date the infant is born or, in a 129.4 county with abasic sliding feewaiting list, the date the 129.5 family applies for at-home infant child care. Payment ceases 129.6 for a family under the at-home infant child care program when a 129.7 family has used a total of 12 months of assistance as specified 129.8 under section 119B.061. Payment of child care assistance for 129.9 employed persons on MFIP is effective the date of employment or 129.10 the date of MFIP eligibility, whichever is later under section 129.11 119B.10. Payment of child care assistance for MFIP or work 129.12 first participants in employment and training services is 129.13 effective the date of commencement of the services or the date 129.14 of MFIP or work first eligibility, whichever is later.Payment129.15of child care assistance for transition year child care must be129.16made retroactive to the date of eligibility for transition year129.17child care.129.18 Sec. 20. Minnesota Statutes 2000, section 119B.10, is 129.19 amended to read: 129.20 119B.10 [EMPLOYMENT OR TRAINING ELIGIBILITY.] 129.21 Subdivision 1. [ASSISTANCE FOR PERSONS SEEKING AND 129.22 RETAINING EMPLOYMENT.] (a) Persons who are seeking employment 129.23 and who are eligible for assistance under thissectionchapter 129.24 are eligible to receive up to 240 hours of child care assistance 129.25 per calendar year. 129.26 (b) Employed persons who work at least an average of 20 129.27 hours andfull-time students who work at least an average of ten129.28hours a week andreceive at least a minimum wage for all hours 129.29 worked are eligible for continued child care assistance for 129.30 employment. For purposes of this section, work-study programs 129.31 must be counted as employment. Child care assistance during 129.32 employment must be authorized as provided in paragraphs (c) and 129.33 (d). 129.34 (c) When the person works for an hourly wage and the hourly 129.35 wage is equal to or greater than the applicable minimum wage, 129.36 child care assistance shall be provided for the actual hours of 130.1 employment, break, and mealtime during the employment and travel 130.2 time up to two hours per day. 130.3 (d) When the person does not work for an hourly wage, child 130.4 care assistance must be provided for the lesser of: 130.5 (1) the amount of child care determined by dividing gross 130.6 earned income by the applicable minimum wage, up to one hour 130.7 every eight hours for meals and break time, plus up to two hours 130.8 per day for travel time; or 130.9 (2) the amount of child care equal to the actual amount of 130.10 child care used during employment, including break and mealtime 130.11 during employment, and travel time up to two hours per day. 130.12 Subd. 1a. [ASSISTANCE FOR PERSONS PARTICIPATING IN 130.13 EMPLOYMENT PLAN.] The following persons are also eligible for 130.14 child care assistance: 130.15 (1) persons who are participating in employment orientation 130.16 or job search, or other employment or training activities that 130.17 are included in an approved employability development plan under 130.18 chapter 256K; 130.19 (2) persons who are participating in work, job search, job 130.20 support, employment, or training activities as required in their 130.21 job search support or employment plan, or in appeals, hearings, 130.22 assessments, or orientations according to chapter 256J; 130.23 (3) persons who are participating in social services 130.24 activities under chapter 256J or 256K as required in their 130.25 employment plan approved according to chapter 256J or 256K; and 130.26 (4) families who are participating in programs as required 130.27 in tribal contracts under section 119B.02, subdivision 2, or 130.28 256.01, subdivision 2. 130.29 Subd. 2. [FINANCIAL ELIGIBILITY REQUIRED.] Persons 130.30 participating in employment programs, training programs, or 130.31 education programs are eligible for continued assistance from 130.32 the child care fund, if they are financially eligible under the 130.33 sliding fee scale set by the commissioner in section 119B.12. 130.34 Subd. 3. [CHILD CARE ASSISTANCE DURING EDUCATION.] The 130.35 following persons are eligible for child care assistance for 130.36 education or training: 131.1 (1) persons who meet the requirements of section 119B.09 131.2 who are enrolled in remedial or basic education or English as a 131.3 second language, or persons up to the age of 19 who are enrolled 131.4 in an educational program to attain a high school diploma or 131.5 general equivalency diploma; and 131.6 (2) persons who meet the requirements of this section and 131.7 section 119B.09 must also receive child care assistance to 131.8 reduce the costs of child care for education when employed an 131.9 average of at least 20 hours per week under subdivision 1, and 131.10 are not receiving MFIP benefits as defined in section 119B.011, 131.11 subdivision 17. 131.12 Subd. 4. [SATISFACTORY PROGRESS.] Students enrolled in an 131.13 education program under section 119B.011, subdivision 11, must 131.14 be making satisfactory progress toward completion of the program 131.15 as stipulated in the school's satisfactory progress policy. 131.16 Subd. 5. [LIMITING DURATION OF TRAINING.] Counties may not 131.17 limit the duration of child care subsidies for a person in an 131.18 employment or educational program except when the person is 131.19 found to be ineligible under the child care fund eligibility 131.20 standards. Any limitation must be based on a person's 131.21 employment plan in the case of an MFIP participant. 131.22 Subd. 6. [MAXIMUM LENGTH OF TIME FOR TRAINING.] The 131.23 maximum length of time a participant is eligible for child care 131.24 assistance under the child care fund for education and training 131.25 is no more than the maximum time allowed to complete the credit 131.26 requirements for an associate or baccalaureate degree as 131.27 stipulated in the school's satisfactory progress policy. This 131.28 length of time excludes basic or remedial education programs, 131.29 English as a second language, high school, and general 131.30 equivalency diploma programs needed to prepare for 131.31 post-secondary education or employment. 131.32 Subd. 7. [MFIP STUDENT MOVES TO ANOTHER COUNTY.] If an 131.33 MFIP participant who is receiving child care assistance under 131.34 this chapter moves to another county, continues to participate 131.35 in educational or training programs authorized in the MFIP 131.36 participant's employment plans, and continues to be eligible for 132.1 child care assistance under this chapter, the MFIP participant 132.2 must receive continued child care assistance from the county 132.3 responsible for the MFIP participant's current employment plan 132.4 under section 256G.07. 132.5 Sec. 21. Minnesota Statutes 2000, section 119B.11, 132.6 subdivision 1, is amended to read: 132.7 Subdivision 1. [COUNTY CONTRIBUTIONS REQUIRED.]Beginning132.8July 1, 1997,(a) In addition to payments frombasic sliding fee132.9 child care assistance program participants, each county shall 132.10 contribute from county tax or other sources a fixed local match 132.11 equal to its calendar year19962000 required county 132.12 contributionreduced by the administrative funding loss that132.13would have occurred in state fiscal year 1996 under section132.14119B.15. The commissioner shall recover funds from the county 132.15 as necessary to bring county expenditures into compliance with 132.16 this subdivision. The commissioner may accept county 132.17 contributions, including contributions above the fixed local 132.18 match, in order to make state payments. 132.19 (b) The commissioner may accept payments from counties: (1) 132.20 to fulfill the county contribution as required under subdivision 132.21 1; (2) to pay for services authorized under this chapter beyond 132.22 those paid for with federal or state funds or with the required 132.23 county contributions; or (3) to pay for child care services not 132.24 authorized under this chapter. The commissioner may keep 132.25 accounts as necessary within the state's accounting system. The 132.26 receipts must be deposited in the special revenue fund. 132.27 Sec. 22. Minnesota Statutes 2000, section 119B.12, 132.28 subdivision 2, is amended to read: 132.29 Subd. 2. [PARENT FEE.] A family's monthly parent fee must 132.30 be a fixed percentage of its annual gross income. Parent fees 132.31 must apply to families eligible for child care assistance 132.32 undersections 119B.03 and 119B.05section 119B.09. Income must 132.33 be as defined in section 119B.011, subdivision 15. The fixed 132.34 percent is based on the relationship of the family's annual 132.35 gross income to 100 percent of state median income. Beginning 132.36 January 1, 1998, parent fees must begin at 75 percent of the 133.1 poverty level. The minimum parent fees for families between 75 133.2 percent and 100 percent of poverty level must be $5 per month. 133.3 Parent fees must be established in rule and must provide for 133.4 graduated movement to full payment. 133.5 Sec. 23. Minnesota Statutes 2000, section 119B.13, 133.6 subdivision 1, is amended to read: 133.7 Subdivision 1. [SUBSIDY RESTRICTIONS.] The maximum rate 133.8 paid for child care assistance under the child care fund may not 133.9 exceed the 75th percentile rate for like-care arrangements in 133.10 the county as surveyed by the commissioner. Beginning July 1, 133.11 2001, the 75th percentile rate established for a county may not 133.12 be less than the 75th percentile rate established for that 133.13 county during the previous year. A rate which includes a 133.14 provider bonus paid under subdivision 2 or a special needs rate 133.15 paid under subdivision 3 may be in excess of the maximum rate 133.16 allowed under this subdivision.The department shall monitor133.17the effect of this paragraph on provider rates.The county 133.18 shall pay the provider's full charges for every child in care up 133.19 to the maximum established.The commissioner shall determine133.20the maximum rate for each type of care, including special needs133.21and handicapped care.Not less than once every two years, the 133.22 commissioner shall evaluate market practices for payment of 133.23 absences and shall establish policies for payment of absent days 133.24 that reflect current market practice. 133.25 When the provider charge is greater than the maximum 133.26 provider rate allowed, the parent is responsible for payment of 133.27 the difference in the rates in addition to any family copayment 133.28 fee. 133.29 Sec. 24. Minnesota Statutes 2000, section 119B.13, 133.30 subdivision 6, is amended to read: 133.31 Subd. 6. [PROVIDER PAYMENTS.] Counties or the state shall 133.32 make vendor payments to the child care provider or pay the 133.33 parent directly for eligible child care expenses. If payments 133.34 for child care assistance are made to providers, the provider 133.35 shall bill the county for services provided within ten days of 133.36 the end of the month of service. If bills are submitted in 134.1 accordance with the provisions of this subdivision, a county or 134.2 the state shall issue payment to the provider of child care 134.3 under the child care fund within 30 days of receiving an invoice 134.4 from the provider. Counties or the state may establish policies 134.5 that make payments on a more frequent basis. A county's payment 134.6 policies must be included in the county's child care plan under 134.7 section 119B.08, subdivision 3. If payments are made by the 134.8 state, in addition to being in compliance with this subdivision, 134.9 the payments must be made in compliance with section 16A.124. 134.10 Sec. 25. Minnesota Statutes 2000, section 119B.15, is 134.11 amended to read: 134.12 119B.15 [ADMINISTRATIVE EXPENSES.] 134.13 The commissioner shall use up to 1/21 of the state and 134.14 federal funds availablefor the basic sliding fee program and134.151/21 of the state and federal funds availablefor theMFIPchild 134.16 care assistance program forpayments to counties for134.17administrative expensesthe administrative costs of the delivery 134.18 of direct services. 134.19 Sec. 26. [119B.221] [TEACHER EDUCATION AND COMPENSATION 134.20 HELPS PROGRAM.] 134.21 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 134.22 establish a teacher education and compensation helps program 134.23 (TEACH) to provide tuition scholarships, education incentive 134.24 bonuses, and retention bonuses to child care and education 134.25 providers and staff. The commissioner shall transfer funds 134.26 provided under this section through a grant to a nonprofit 134.27 organization licensed to administer the TEACH program. The 134.28 commissioner shall establish application procedures, eligibility 134.29 criteria, terms, and other conditions necessary to administer 134.30 the program. 134.31 Subd. 2. [PROGRAM COMPONENTS.] (a) The nonprofit 134.32 organization shall distribute funds for: 134.33 (1) tuition scholarships up to $2,000 per year for courses 134.34 leading to the nationally recognized child development associate 134.35 credential or college-level courses leading to the University of 134.36 Minnesota competency-based training assessment credential, or 135.1 similar credentials recognized by the department or a 135.2 certificate, Associate of Arts, Bachelor of Arts, or Master of 135.3 Arts in early childhood development and school-age care; and 135.4 (2) education incentive bonuses of $300 to $500 to 135.5 participants in the tuition scholarship program if they complete 135.6 a year of working in the child care and education field. 135.7 (b) Applicants for the scholarship must be either employed 135.8 by a licensed child care center and working directly with 135.9 children, a licensed family child care provider, or an employee 135.10 in a school-age program operated under the auspices of a 135.11 license-exempt public program. Scholarship recipients who are 135.12 self-employed must contribute five percent of the total 135.13 scholarship. Applicants who are not self-employed must be 135.14 sponsored by their employer and the employer must contribute 135.15 five percent of the total scholarship. 135.16 (c) The organization shall also distribute funds for 135.17 retention bonuses of $600 to $3,500 annually to be paid 135.18 semiannually to child care and education providers and staff who 135.19 have worked in the child care and education field for at least 135.20 one year. The amount of the retention bonus must be based on 135.21 the applicant's level of education when they apply for the 135.22 bonus. A provider or staff is eligible for the bonus if: 135.23 (1) the provider or staff has worked in the field for at 135.24 least one year and has been working at the same location for at 135.25 least one year at the time of application; and 135.26 (2) is earning an hourly wage that is less than the hourly 135.27 wage equivalent of elementary school teachers in the school 135.28 district. 135.29 The commissioner shall annually adjust the scholarship and 135.30 bonus amounts by the rate of inflation as measured by the 135.31 Consumer Price Index. 135.32 Subd. 3. [ADVISORY COMMITTEE.] The TEACH program must have 135.33 an advisory board composed of five members from early childhood 135.34 and school-age care professional associations, three members 135.35 from professional associations that represent the cultural 135.36 diversity of communities; one member of the business community 136.1 working in the human resources field; two parents using child 136.2 care; one representative each from a Head Start program and an 136.3 early childhood and family education program; one licensed child 136.4 care center teacher; one licensed child care center director; 136.5 one licensed family child care provider; and one kindergarten 136.6 through third grade teacher. 136.7 Sec. 27. Minnesota Statutes 2000, section 119B.24, is 136.8 amended to read: 136.9 119B.24 [DUTIES OF COMMISSIONER.] 136.10 In addition to the powers and duties already conferred by 136.11 law, the commissioner of children, families, and learning shall: 136.12 (1) administer the child care fund, including the basic 136.13 sliding fee program authorized under sections 119B.011 to 136.14 119B.16; 136.15 (2) monitor the child care resource and referral programs 136.16 established under section 119B.19; and 136.17 (3) encourage child care providers to participate in a 136.18 nationally recognized accreditation system for early 136.19 childhood and school-age care programs.The commissioner shall136.20reimburse licensedSubject to approval by the commissioner, 136.21 family child care providers and early childhood and school-age 136.22 care programs shall be reimbursed for one-half of the direct 136.23 cost of accreditation fees, upon successful completion of 136.24 accreditation. 136.25 Sec. 28. Minnesota Statutes 2000, section 121A.16, is 136.26 amended to read: 136.27 121A.16 [EARLY CHILDHOOD HEALTH AND DEVELOPMENT SCREENING; 136.28 PURPOSE.] 136.29 The legislature finds that early detection of children's 136.30 health and developmental problems can reduce their later need 136.31 for costly care, minimize their physical and educational 136.32handicapsdisabilities, and aid in their rehabilitation. The 136.33 purpose of sections 121A.16 to 121A.19 is to assist parents and 136.34 communities in improving the health of Minnesota children and in 136.35 planning educational and health programs. To effect this 136.36 purpose in the most cost-effective and efficient manner 137.1 possible, the commissioners of children, families, and learning 137.2 and human services shall identify a plan to maximize the use of 137.3 early and periodic screening, diagnosis, and treatment program 137.4 funding for the purposes of sections 121A.16 to 121A.19, and 137.5 shall report to the legislature by December 1, 2001, their 137.6 recommendations for better coordination between the public 137.7 funding streams that currently exist for early childhood 137.8 screening. 137.9 Sec. 29. Minnesota Statutes 2000, section 121A.17, 137.10 subdivision 1, is amended to read: 137.11 Subdivision 1. [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 137.12 Every school board must provide for a mandatory program of early 137.13 childhood developmental screening for children at least once 137.14 before school entrance, targeting children who are between 3-1/2137.15and four years old. Screening must be accomplished as near as 137.16 possible to the child's third birthday but may be as early as 137.17 age two at the option of the child's parent or legal guardian. 137.18 Children screened between the ages of two and three should be 137.19 rescreened at or after age three. This screening program must 137.20 be established either by one board, by two or more boards acting 137.21 in cooperation, by service cooperatives, by early childhood 137.22 family education programs, or by other existing programs. This 137.23 screening examination is a mandatory requirement for a student 137.24 to continue attending kindergarten or first grade in a public 137.25 school. A child need not submit to developmental screening 137.26 provided by a board if the child's health records indicate to 137.27 the board that the child has received comparable developmental 137.28 screening from a public or private health care organizationor, 137.29 individual health care provider, or Head Start. Districts are 137.30 encouraged to reduce the costs of preschool developmental 137.31 screening programs by utilizing volunteers in implementing the 137.32 program. 137.33 Sec. 30. Minnesota Statutes 2000, section 121A.17, 137.34 subdivision 3, is amended to read: 137.35 Subd. 3. [SCREENING PROGRAM.] (a) A screening program must 137.36 include at least the following components: developmental 138.1 assessments, health and developmental history, hearing and 138.2 vision screening or referral, immunization review and referral, 138.3 the child's height and weight, identification of risk factors 138.4 that may influence learning, an interview with the parent about 138.5 the child, and referral for assessment, diagnosis, and treatment 138.6 when potential needs are identified. The district and the 138.7 person performing or supervising the screening must provide a 138.8 parent or guardian with clear written notice that the parent or 138.9 guardian may decline to answer questions or provide information 138.10 about family circumstances that might affect development and 138.11 identification of risk factors that may influence learning. The 138.12 notice must clearly state that declining to answer questions or 138.13 provide information does not prevent the child from being 138.14 enrolled in kindergarten or first grade if all other screening 138.15 components are met. If a parent or guardian is not able to read 138.16 and comprehend the written notice, the district and the person 138.17 performing or supervising the screening must convey the 138.18 information in another manner. The notice must also inform the 138.19 parent or guardian that a child need not submit to the district 138.20 screening program if the child's health records indicate to the 138.21 school that the child has received comparable developmental 138.22 screening performed within the preceding 365 days by a public or 138.23 private health care organization or individual health care 138.24 provider. The notice must be given to a parent or guardian at 138.25 the time the district initially provides information to the 138.26 parent or guardian about screening and must be given again at 138.27 the screening location. 138.28 (b) All screening components shall be consistent with the 138.29 standards of the state commissioner of health and the 138.30 commissioner of children, families, and learning for early 138.31 developmental screening programs. A developmental screening 138.32 program must not provide laboratory tests or a physical 138.33 examination to any child. The district must request from the 138.34 public or private health care organization or the individual 138.35 health care provider the results of any laboratory test or 138.36 physical examination within the 12 months preceding a child's 139.1 scheduled screening. 139.2 (c) If a child is without health coverage, the school 139.3 district must refer the child to an appropriate health care 139.4 provider, and must provide application materials for 139.5 MinnesotaCare if appropriate. 139.6 (d) A board may offer additional components such as 139.7 nutritional, physical and dental assessments, review of family 139.8 circumstances that might affect development, blood pressure, and 139.9 laboratory tests, and health history. 139.10 (e) If a statement signed by the child's parent or guardian 139.11 is submitted to the administrator or other person having general 139.12 control and supervision of the school that the child has not 139.13 been screened because of conscientiously held beliefs of the 139.14 parent or guardian, the screening is not required. 139.15 Sec. 31. Minnesota Statutes 2000, section 121A.17, 139.16 subdivision 4, is amended to read: 139.17 Subd. 4. [FOLLOW-UP SCREENING.] If any child's screening 139.18 indicates a condition which requires diagnosis or treatment, the 139.19 child's parents shall be notified of the condition and the board 139.20 shall ensure that an appropriate follow-up and referral process 139.21 is available. Districts must report to the commissioner results 139.22 of referrals and subsequent interventions. 139.23 Sec. 32. Minnesota Statutes 2000, section 121A.17, 139.24 subdivision 5, is amended to read: 139.25 Subd. 5. [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 139.26 The board must inform each resident family with a child eligible 139.27 to participate in the developmental screening program about the 139.28 availability of the program and the state's requirement that a 139.29 child receive developmental screeningnot later than 30 days139.30after the first day of attending kindergarten in a public school.139.31 as near as possible to the child's third birthday. The board 139.32 must also inform families that they may choose to have their 139.33 child screened as early as age two and that children screened 139.34 between the ages of two and three should be rescreened at or 139.35 after age three. If a child has not been screened prior to 139.36 school entrance, families must be notified of the state's 140.1 requirement that a child receive developmental screening not 140.2 later than 30 days after first attending kindergarten in a 140.3 public school. 140.4 Sec. 33. Minnesota Statutes 2000, section 121A.19, is 140.5 amended to read: 140.6 121A.19 [DEVELOPMENTAL SCREENING AID.] 140.7 Subdivision 1. [AID.] Each school year, the state must pay 140.8 a district$40$50 for each four-year-old child, $65 for each 140.9 three-year-old child, and $75 for each two-year-old child 140.10 screened according to the requirements of section 121A.17. Each 140.11 school year, the state must pay a district $5 per child for each 140.12 follow-up on referrals and subsequent interventions. If this 140.13 amount of aid is insufficient, the district may permanently 140.14 transfer from the general fund an amount that, when added to the 140.15 aid, is sufficient. 140.16 Subd. 2. [TECHNICAL ASSISTANCE.] Each school year, $55,000 140.17 must be available for statewide training, technical assistance, 140.18 and outreach. 140.19 Sec. 34. Minnesota Statutes 2000, section 124D.13, is 140.20 amended by adding a subdivision to read: 140.21 Subd. 2a. [PROGRAM PLAN REVIEW AND APPROVAL.] A school 140.22 district shall biennially by May 15 submit to the commissioner a 140.23 program plan describing how the district intends to use program 140.24 funds to address the program characteristics under subdivision 140.25 2, the coordination requirements under subdivision 8, the 140.26 specific needs of young children and their families in the 140.27 school district, and other information as required by the 140.28 commissioner. One-half of districts shall submit a plan in the 140.29 even-numbered fiscal years and the remaining districts in the 140.30 odd-numbered fiscal years as designated by the commissioner. If 140.31 the program is integrated with the district's school readiness 140.32 program, the district may request a waiver in advance to submit 140.33 only one joint program plan for the two programs. The 140.34 commissioner shall review and make comments or recommendations 140.35 within 90 days of receiving the plan. 140.36 Sec. 35. Minnesota Statutes 2000, section 124D.13, 141.1 subdivision 8, is amended to read: 141.2 Subd. 8. [COORDINATION.] A districtis encouraged to141.3coordinate the program with its special education and vocational141.4education programs and with related services provided by other141.5governmental agencies and nonprofit agencies.must coordinate 141.6 the early childhood family education program with existing 141.7 community-based programs and service providers including school 141.8 readiness, Head Start, child care, and others, and foster 141.9 collaboration among agencies and other community-based 141.10 organizations and programs that provide flexible, family-focused 141.11 services to families with young children. The district must 141.12 actively encourage greater sharing of information, 141.13 responsibility, and accountability among service providers and 141.14 facilitate the children's transition to kindergarten. 141.15 A district is encouraged to coordinate adult basic 141.16 education programs provided to parents and early childhood 141.17 family education programs provided to children to accomplish the 141.18 goals of section 124D.895. 141.19 Sec. 36. Minnesota Statutes 2000, section 124D.13, 141.20 subdivision 9, is amended to read: 141.21 Subd. 9. [DISTRICT ADVISORY COUNCILS.] The board must 141.22 appoint an advisory council from the area in which the program 141.23 is provided. A majority of the council must be parents 141.24 participating in the program. The council must assist the board 141.25 in developing, planning, and monitoring the early childhood 141.26 family education program and in integrating service delivery 141.27 with other early childhood and family services within the 141.28 community. The council must report to the board and the 141.29 community education advisory council. 141.30 Sec. 37. Minnesota Statutes 2000, section 124D.13, is 141.31 amended by adding a subdivision to read: 141.32 Subd. 13. [ANNUAL REPORT.] A district is required to 141.33 report annual program and participant data as defined by the 141.34 commissioner by August 15 for the school year ending June 30 of 141.35 the same calendar year. A district's failure to report the 141.36 necessary data may result in the withholding of future program 142.1 funds. 142.2 Sec. 38. Minnesota Statutes 2000, section 124D.135, 142.3 subdivision 1, is amended to read: 142.4 Subdivision 1. [REVENUE.] The revenue for early childhood 142.5 family education programs for a school district equals$113.50142.6for fiscal years 2000 and 2001 and$120 for fiscal year 2002 and 142.7 $125.60 for fiscal year 2003 and later fiscal years times the 142.8 greater of: 142.9 (1) 150; or 142.10 (2) the number of people under five years of age residing 142.11 in the district on October 1 of the previous school year. 142.12 Sec. 39. Minnesota Statutes 2000, section 124D.135, 142.13 subdivision 3, is amended to read: 142.14 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] For 142.15 fiscal year 2001 to obtain early childhood family education 142.16 revenue, a district may levy an amount equal to the tax rate of 142.17.5282.5045 percent times the adjusted tax capacity of the 142.18 district for the year preceding the year the levy is certified. 142.19 Beginning with levies for fiscal year 2002, by September 30 of 142.20 each year, the commissioner shall establish a tax rate for early 142.21 childhood education revenue that raises $21,027,000 for fiscal 142.22 year 2002 and $22,135,000 in fiscal year 2003 and each 142.23 subsequent year. If the amount of the early childhood family 142.24 education levy would exceed the early childhood family education 142.25 revenue, the early childhood family education levy must equal 142.26 the early childhood family education revenue. 142.27 Sec. 40. Minnesota Statutes 2000, section 124D.135, 142.28 subdivision 7, is amended to read: 142.29 Subd. 7. [RESERVE ACCOUNT.] (a) Early childhood family 142.30 education revenue, which includes aids, levies, fees, grants, 142.31 and all other revenues received by the district for early 142.32 childhood family education programs, must be maintained in a 142.33 reserve account within the community service fund. 142.34 (b) This reserve account may not exceed 25 percent of the 142.35 district's annual early childhood family education revenue. If 142.36 a district anticipates that the reserve account may exceed 25 143.1 percent because of extenuating circumstances, prior approval to 143.2 exceed the limit must be obtained in writing from the 143.3 commissioner. 143.4 (c) If a deficit in the reserve account exists at the end 143.5 of a fiscal year and the deficit is not eliminated by revenues 143.6 from operations in the next year, then the deficit must be 143.7 eliminated by a permanent fund transfer from the district's 143.8 general fund at the end of the second year. 143.9 (d) Notwithstanding paragraph (c), a district may incur a 143.10 deficit in the fund for up to three years without making the 143.11 permanent transfer if the district submits to the commissioner 143.12 by January 1 of the second fiscal year a plan for eliminating 143.13 the deficit at the end of the third fiscal year. 143.14 Sec. 41. Minnesota Statutes 2000, section 124D.135, is 143.15 amended by adding a subdivision to read: 143.16 Subd. 8. [ADJUSTMENT FOR UNUSED FUNDS.] A district that 143.17 has an early childhood family education reserve fund balance 143.18 that exceeds 25 percent of the annual revenue for the program 143.19 shall have its future aid and levy authority reduced 143.20 accordingly. This reduction shall be made in the fiscal year 143.21 that begins no more than 30 months after the excess occurs in 143.22 the reserve account. The commissioner shall reallocate aid 143.23 reduced under this provision to other eligible school districts. 143.24 Sec. 42. Minnesota Statutes 2000, section 124D.15, is 143.25 amended to read: 143.26 124D.15 [SCHOOL READINESS PROGRAMS.] 143.27 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A district or a 143.28 group of districts may establish a school readiness program that 143.29 provides a continuum of flexible services for eligible children. 143.30 The purpose of a school readiness program is to provide all 143.31 eligible children adequate opportunities to participate in child 143.32 development programs that enable the children to enter school 143.33 with the necessary skills and behavior and family stability and 143.34 support to progress and flourish. 143.35 Subd. 2. [CHILD ELIGIBILITY.] (a) A childis eligible143.36tomay participate in a school readiness program offered 144.1bythrough the resident district or another district if the 144.2 child is: 144.3 (1) at least 3-1/2 years old but has not entered 144.4 kindergarten;and 144.5(2)the child receives developmental screening under 144.6 section 121A.17 within 90 days of enrolling in the programor144.7the child's fourth birthday.; and 144.8(b)(2)a childyounger than 3-1/2 years oldmay144.9participate in a school readiness programif the district or 144.10 group of districtsthatestablishesthe program determines that144.11the program can more effectively accomplish its purpose by144.12including children younger than 3-1/2 years oldor sponsors such 144.13 a program. 144.14 Subd. 3. [PROGRAM ELIGIBILITY COMPONENTS.] A school 144.15 readiness program must include the following: 144.16 (1) a comprehensive plan to anticipate and meet the needs 144.17 of participating families by coordinating existing social 144.18 services, health care, nutrition, child care, and other 144.19 community programs and by fostering collaboration among agencies 144.20 or other community-based organizations and programs that provide 144.21 a full range of flexible, family-focused services to families 144.22 with young children; 144.23 (2) a development and learning component to help children 144.24 develop appropriate social, cognitive, and physical skills, and 144.25 emotional well-being; 144.26 (3) health referral or health services to address 144.27 children's medical, dental, mental health, and nutritional 144.28 needs; 144.29 (4) a nutrition component to meet children's daily 144.30 nutritional needs; 144.31 (5)parents'family involvement and education in meeting 144.32 children's educational, health, social service, and other needs; 144.33 (6) community outreach to ensure participation by families 144.34 who represent the racial, cultural, and economic diversity of 144.35 the community; 144.36 (7) community-based staff and program resources, including 145.1 interpreters, that reflect the racial and ethnic characteristics 145.2 of the children participating in the program; and 145.3 (8) a literacy component to ensure that the literacy needs 145.4 of parents are addressed through referral to and cooperation 145.5 with adult basic education programs and other adult literacy 145.6 programs. 145.7 Subd. 4. [PROGRAM GOALS.] School readiness programs are 145.8 encouraged to: 145.9(1) prepare an individualized service plan to meet each145.10child's developmental and learning needs;145.11(2) provide parent education to increase parents'145.12knowledge, understanding, skills, and experience in child145.13development and learning;145.14(3) foster substantial parent involvement that may include145.15having parents develop curriculum or serve as a paid or145.16volunteer educator, resource person, or other staff;145.17(4) identify the needs of families in the content of the145.18child's school readiness and family literacy;145.19(5) expand collaboration with public organizations,145.20businesses, nonprofit organizations, or other private145.21organizations to develop a coordinated system of flexible,145.22family-focused services available to anticipate and meet the145.23full range of needs of all eligible children and their families;145.24(6) coordinate treatment and follow-up services for145.25children's identified physical and mental health problems;145.26(7) offer transportation for eligible children and their145.27families for whom other forms of transportation are unavailable145.28or would constitute an excessive financial burden;145.29(8) make substantial outreach efforts to assure significant145.30participation by families with the greatest needs, including145.31those families whose income level does not exceed the most145.32recent update of the poverty guidelines required by sections 652145.33and 673(2) of the Omnibus Budget Reconciliation Act of 1981145.34(Public Law Number 97-35);145.35(9) use community-based, trained home visitors serving as145.36paraprofessionals to provide social support, referrals, parent146.1education, and other services;146.2(10) create community-based family resource centers and146.3interdisciplinary teams; and146.4(11) enhance the quality of family or center-based child146.5care programs by providing supplementary services and resources,146.6staff training, and assistance with children with special needs.146.7 (1) expand collaboration with public organizations, 146.8 businesses, nonprofit organizations, or other private 146.9 organizations to develop a coordinated system of flexible, 146.10 family-focused services available to anticipate and meet the 146.11 full range of needs of all eligible children and their families; 146.12 (2) make substantial outreach efforts to assure significant 146.13 participation by families with the greatest needs, including, 146.14 but not limited to, those families whose income level does not 146.15 exceed the exit level for MFIP participants as identified in 146.16 chapter 256; 146.17 (3) identify the needs of families in the context of the 146.18 child's school readiness and family literacy; 146.19 (4) enhance the quality of family or center-based child 146.20 care programs by providing outreach, supplementary services and 146.21 resources, staff training, and assistance with children with 146.22 special needs; 146.23 (5) prepare an individualized learning plan to meet each 146.24 child's developmental and learning needs to ensure progress 146.25 towards school readiness; 146.26 (6) foster substantial parent involvement that may include 146.27 having parents serve as paid or volunteer educators, resource 146.28 persons, or other staff; and 146.29 (7) provide parent education to increase parents' 146.30 knowledge, understanding, skills, and experience in child 146.31 development and learning. 146.32 Subd. 4a. [STRATEGIES FOR ACHIEVING GOALS.] School 146.33 readiness programs are encouraged to: 146.34 (1) offer transportation for eligible children and their 146.35 families for whom other forms of transportation are unavailable 146.36 or would constitute an excessive financial burden; 147.1 (2) use community-based, trained home visitors serving as 147.2 paraprofessionals to provide social support, referrals, parent 147.3 education, staff development for child care providers, and other 147.4 services; 147.5 (3) create community-based family resource centers and 147.6 interdisciplinary teams; and 147.7 (4) coordinate treatment and follow-up services for 147.8 children's identified physical and mental health problems. 147.9 Subd. 5. [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 147.10 districtis encouraged tomay contract with a public, private, 147.11 or nonprofit organization to provide eligible children 147.12 developmentally appropriate services that meet the program 147.13 requirements in subdivision 3.In the alternative,A district 147.14 may provide quality enhancement grants to reach a school 147.15 readiness level of quality under subdivision 11. A district may 147.16 pay tuition or fees to place an eligible child in an existing 147.17 program. A district may establish a new program where no 147.18 existing, reasonably accessible program meets the program 147.19 requirements in subdivision 3. Services may be provided in a 147.20 site-based program or in the home of the child or a combination 147.21 of both. The district may not restrict participation to 147.22 district residents. 147.23 Subd. 6. [COORDINATION WITH OTHER PROVIDERS.] (a) The 147.24 district must coordinate the school readiness program with 147.25 existing community-basedsocial servicesservice providers, Head 147.26 Start, child care, and others and foster collaboration among 147.27 agencies and other community-based organizations and programs 147.28 that provide flexible, family-focused services to families with 147.29 children. The district must actively encourage greater sharing 147.30 of information, responsibility, and accountability among service 147.31 providers and facilitate children's transition between 147.32 programs and to kindergarten. 147.33 (b) To the extent possible, resources must follow the 147.34 children so that children receive appropriate services in a 147.35 stable environment and are not moved from one program location 147.36 to another. Where geographically feasible, the district must 148.1 actively promotecolocatingcollaboration and integration of 148.2 services for children and their families. 148.3 Subd. 7. [ADVISORY COUNCIL.] Each school readiness program 148.4 must have an advisory council composed of members of existing 148.5 early education-related boards, parents of participating 148.6 children, child care providers, representatives from Head Start 148.7 and early childhood and family education, if those programs are 148.8 offered in the district, culturally specific service 148.9 organizations, the local business community, health services 148.10 providers, local resource and referral agencies,and148.11representatives ofearly childhood service providers, and the 148.12 kindergarten through grade 12 system, and may include other 148.13 community-based organizations.The council must advise the148.14board in creating and administering the program and must monitor148.15the progress of the program. The council must ensure that148.16children at greatest risk receive appropriate services. If the148.17board is unable to appoint to the advisory council members of148.18existing early education-related boards, it must appoint parents148.19of children enrolled in the program who represent the racial,148.20cultural, and economic diversity of the district and148.21representatives of early childhood service providers as148.22representatives to an existing advisory council.A majority of 148.23 council members must be parents participating in the program. 148.24 The council must advise the board in planning, developing, and 148.25 monitoring the program and in integrating service delivery with 148.26 other early childhood and family services within the community. 148.27 The council must assure that children at greatest risk receive 148.28 appropriate services. In lieu of establishing a new or separate 148.29 advisory council, a board may appoint parents of children 148.30 enrolled in the program who represent the racial, cultural, and 148.31 economic diversity of the district and representatives of early 148.32 childhood service providers as representatives to an existing 148.33 advisory council with comparable purpose and function to fulfill 148.34 the responsibilities described in this subdivision. 148.35 Subd. 8. [PRIORITIZING SERVICES.] (a) The district must 148.36 give greatest priority to providing services to eligible 149.1 children identified, through a means such as the early childhood 149.2 screening process, as being developmentally disadvantaged or 149.3 experiencing risk factors that could impede their school 149.4 readiness. 149.5 (b) As available funding increases substantially over the 149.6 fiscal year 2000 level, emphasis shall be given to strengthening 149.7 services for children birth to age 3-1/2 and the quality of 149.8 child care. 149.9 Subd. 9. [CHILD RECORDS.] (a) A record of a child's 149.10 performance, progress,anddevelopment, and services received 149.11 must be maintained in the child's cumulative record while 149.12 enrolled in the school readiness program. The cumulative record 149.13 must be used for the purpose of planning activities to suit 149.14 individual needs and shall become part of the child's permanent 149.15 record. The cumulative record is private data under chapter 149.16 13. Information in the record may be disseminated to an 149.17 educator or service provider only to the extent that that person 149.18 has a need to know the information. 149.19 (b) An educator or service provider may transmit 149.20 information in the child's cumulative record to an educator or 149.21 service provider in another program for young children when the 149.22 child applies to enroll in that other program including 149.23 kindergarten. 149.24 Subd. 10. [SUPERVISION.] A program provided by a board 149.25 must be supervised by a licensed early childhood teacher, a 149.26 certified early childhood educator, or a licensed parent 149.27 educator. A program provided according to a contract between a 149.28 district and a nonprofit organization or another private 149.29 organization must be supervised and staffed according to the 149.30 terms of the contract. 149.31 Subd. 11. [DISTRICT STANDARDS.] The board of the district 149.32 must develop standards for the school readiness program that 149.33 reflect theeligibility criteriaprogram components in 149.34 subdivision 3. The board must consider including in the 149.35 standards the program characteristics in subdivision 4. 149.36 Subd. 12. [PROGRAM FEES.] A district may adopt a sliding 150.1 fee schedule based on a family's income but must waive a fee for 150.2 a participant unable to pay. The fees charged must be designed 150.3 to enable eligible children of all socioeconomic levels to 150.4 participate in the program. 150.5 Subd. 13. [ADDITIONAL REVENUE.] A district or an 150.6 organization contracting with a district may receive money or 150.7 in-kind services from a public or private organization. 150.8 Subd. 14. [ANNUAL REPORTING.] A district must report 150.9 annual program and participant data as defined by the 150.10 commissioner by August 15 for the school year ending June 30 of 150.11 the same calendar year. A district's failure to report the 150.12 necessary data may result in withholding of future program funds. 150.13 Sec. 43. Minnesota Statutes 2000, section 124D.16, is 150.14 amended to read: 150.15 124D.16 [SCHOOL READINESS AID.] 150.16 Subdivision 1. [PROGRAM REVIEW AND APPROVAL.] A school 150.17 district shall biennially by May 1 submit to the commissioners 150.18 of children, families, and learning and health the program plan 150.19 required under this subdivision. As determined by the 150.20 commissioners, one-half of the districts shall first submit the 150.21 plan by May1 of the 2000-200115 of the 2001-2002 school year 150.22 and one-half of the districts shall first submit the plan by May 150.231 of the 2001-200215 of the 2002-2003 school year. The program 150.24 plan must include: 150.25 (1) adescription ofcommunity needs assessment of children 150.26 birth to age five; 150.27 (2) a description of the services to be provided, including 150.28 services for children birth to age 3-1/2; 150.29(2)(3) a plan to ensure children at greatest risk receive 150.30 appropriate services; 150.31(3)(4) a description of procedures and methods to be used 150.32 to coordinate public and private resources to maximize use of 150.33 existing community resources, including school districts, child 150.34 care, Head Start, health carefacilitiesservices, government 150.35 agencies, neighborhood organizations, and other resources 150.36 knowledgeable in early childhood development; 151.1(4)(5) comments about the district's proposed program by 151.2 the advisory council required by section 124D.15, subdivision 7; 151.3 and 151.4(5)(6) agreements with all participating service providers. 151.5 Each commissioner may review and comment on the program, 151.6 and make recommendations to the commissionerof children,151.7families, and learning,within3090 days of receiving the plan. 151.8 Subd. 1a. [EVALUATION.] The commissioner, in consultation 151.9 with early childhood teachers, elementary school classroom 151.10 teachers, child care providers, Head Start educators, parent 151.11 educators, and teacher educators shall develop an evaluation 151.12 framework for qualifying school sites to use in documenting 151.13 results. The evaluation must use empirical and qualitative 151.14 methods to gather information on the following: 151.15 (1) progress toward ensuring that every child entering 151.16 kindergarten has the knowledge and skills necessary to succeed 151.17 in school; 151.18 (2) an assessment of enrolling students by their teacher; 151.19 and 151.20 (3) measures of parental satisfaction and parental 151.21 involvement. 151.22 The commissioner shall assist a school site with its evaluation 151.23 at the request of the site. 151.24 Up to five percent of school readiness program aid may be 151.25 used for evaluation. 151.26 Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to 151.27 receive school readiness aid if the program planasrequired by 151.28 subdivision 1 has been approved by the commissioner. 151.29 (b) For fiscal year19982002 and thereafter, a district 151.30 must receive school readiness aid equal to: 151.31 (1) the number of eligible four-year old children in the 151.32 district on October 1 for the previous school year times the 151.33 ratio of 50 percent of the total school readiness aid for that 151.34 year to the total number of eligible four-year old children 151.35 reported to the commissioner forthatthe previous school year; 151.36 plus 152.1 (2) the number of pupils enrolled in the school district 152.2 from families eligible for the free or reduced school lunch 152.3 program for the second previous school year times the ratio of 152.4 50 percent of the total school readiness aid for that year to 152.5 the total number of pupils in the state from families eligible 152.6 for the free or reduced school lunch program for the second 152.7 previous school year. 152.8 Subd. 2a. [AID GUARANTEE.] Notwithstanding subdivision 2, 152.9 for fiscal year 2002, any school readiness program qualifying 152.10 for aid under this section that receives less aid than in fiscal 152.11 year 2001 must receive additional aid equal to the difference 152.12 between the aid paid under section 124D.16, subdivision 2, 152.13 paragraph (b), clause (2), for fiscal year 2001 and the amount 152.14 of aid it is eligible for in fiscal year 2002 under section 152.15 124D.16, subdivision 2, paragraph (b), clause (2). The aid 152.16 guarantee applies only to the aid for the free or reduced school 152.17 lunch program in section 124D.16, subdivision 2, paragraph (b), 152.18 clause (2). 152.19 Subd. 3. [USE OF AID.] School readiness aid shall be used 152.20 only to provide a school readiness program and may be used to 152.21 provide transportation. Aid used for instruction must be 152.22 targeted to children identified in section 124D.15, subdivision 152.23 8a. Not more than five percent of the aid may be used for the 152.24 cost of administering the program. Aid must be used to 152.25 supplement and not supplant local, state, and federal funding. 152.26 Aid may not be used for instruction and services required under 152.27 sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to 152.28 purchase land or construct buildings, but may be used to lease 152.29 or renovate existing buildings. 152.30 Subd. 4. [SEPARATE ACCOUNTS.] The district must deposit 152.31 school readiness aid in a separate account within the community 152.32 education fund. 152.33 Subd. 5. [RESERVE ACCOUNTS.] (a) School readiness revenue, 152.34 which includes aids, fees, grants, and all other revenues 152.35 received by the district school readiness programs, must be 152.36 maintained in a reserve account within the community service 153.1 fund. 153.2 (b) The reserve account may not exceed 25 percent of the 153.3 annual school readiness revenue. If a school district 153.4 anticipates that the amount in the reserve account may exceed 25 153.5 percent of the annual school readiness program revenue, prior 153.6 approval to exceed this amount must be obtained in writing from 153.7 the commissioner of children, families, and learning. 153.8 (c) If a deficit in the reserve account exists at the end 153.9 of a fiscal year, and the deficit is not eliminated by revenues 153.10 from operations in the next year, then the deficit must be 153.11 eliminated by a permanent fund transfer from the district's 153.12 general fund at the end of the second year. 153.13 (d) Notwithstanding paragraph (c), a district may incur a 153.14 deficit in the fund for up to three years without making the 153.15 permanent transfer if the district submits to the commissioner 153.16 by January 1 of the second fiscal year a plan for eliminating 153.17 the deficit at the end of the third fiscal year. 153.18 Subd. 6. [ADJUSTMENT FOR UNUSED FUNDS.] A district that 153.19 has a school readiness reserve fund balance that exceeds 25 153.20 percent of the annual amount of revenue for the program shall 153.21 have the future allocations reduced accordingly. This reduction 153.22 shall be made in the fiscal year that begins no more than 30 153.23 months after the excess occurs in the reserve account. The 153.24 commissioner shall reallocate aid reduced under this provision 153.25 to other eligible school districts. 153.26 Sec. 44. [INTERAGENCY AUTISM COORDINATING COMMITTEE.] 153.27 (a) The commissioner of children, families, and learning 153.28 shall establish an interagency committee to coordinate state 153.29 efforts related to servicing children with autism. The 153.30 committee shall include representatives of the departments of 153.31 children, families, and learning and human services, parents or 153.32 guardians of children with autism, pediatricians, local public 153.33 health officials, and representatives of private or nonprofit 153.34 organizations that advocate on behalf of children with autism. 153.35 (b) The interagency autism coordinating committee shall 153.36 study and recommend by December 1, 2001, to the committees in 154.1 the legislature charged with early childhood through grade 12 154.2 education policy and finance matters a plan for improving 154.3 efforts at early assessment and identification of autism in 154.4 young children. The plan must consider: 154.5 (1) all existing assessment program options; 154.6 (2) public and private funding sources, including 154.7 programmatic funding for early and periodic screening, 154.8 diagnosis, and treatment; and 154.9 (3) current research-based best practice models. 154.10 The plan must be designed to make optimal use of existing public 154.11 resources. 154.12 Sec. 45. [ESTABLISHMENT OF EARLY CHILDHOOD CARE AND 154.13 EDUCATION SERVICES DEMONSTRATION PROJECTS.] 154.14 Subdivision 1. [PURPOSE.] The purpose of the demonstration 154.15 projects is to implement a coordinated community system that 154.16 builds upon existing early childhood care and education services 154.17 to provide a full continuum of services for young children and 154.18 to collect the data necessary to measure outcomes and to develop 154.19 a statewide funding formula for distributing funds to individual 154.20 service sites. The data must include, but is not limited to: 154.21 (1) the care and educational needs of children and how 154.22 those needs are assessed and measured; 154.23 (2) the type of services to provide that will improve 154.24 outcomes, including school readiness; and 154.25 (3) the most effective way to distribute public funds for 154.26 early childhood services. 154.27 Subd. 2. [DEFINITIONS.] (a) "Approval board" means the 154.28 group composed of the county human services director, the 154.29 superintendent of schools, the public health director, the child 154.30 care resources and referral agency, Head Start grantees, or 154.31 their representatives. 154.32 (b) "Commissioner" means the commissioner of children, 154.33 families, and learning. 154.34 (c) "Community" means a county, a school district, a group 154.35 of school districts, a political subdivision, a service 154.36 cooperative, or a combination of any of these entities. 155.1 (d) "Early childhood care and education" means the services 155.2 available for children from birth to kindergarten coordinated by 155.3 local early childhood boards to fulfill the responsibilities 155.4 under this section. 155.5 (e) "Local early childhood board" means a group organized 155.6 under 501(c)(3) of the Internal Revenue Code and composed of one 155.7 member of the following groups, if they exist in the community: 155.8 (1) other early childhood education-related boards; 155.9 (2) three parents of children participating in programs at 155.10 qualified sites that represent the economic and ethnic diversity 155.11 of the community; 155.12 (3) licensed child care providers; 155.13 (4) early childhood education providers; 155.14 (5) health services providers; 155.15 (6) public or private nonprofit agencies serving youth and 155.16 families; 155.17 (7) the school board; 155.18 (8) the local teachers' union; and 155.19 (9) a representative from the state interagency committee. 155.20 (f) "Qualified site" means a physical location providing 155.21 early childhood care and education services that has been 155.22 approved by the local early childhood board according to 155.23 criteria under subdivision 6. 155.24 Subd. 3. [DUTIES OF COMMISSIONER.] The commissioner shall 155.25 supervise the development of an integrated early childhood care 155.26 and education system by: 155.27 (1) selecting early childhood care and education 155.28 demonstration projects that model effective practices under this 155.29 section through a competitive process; 155.30 (2) defining outcomes and indicators for a local early 155.31 childhood care and education system based on current research; 155.32 (3) providing technical assistance to local approval boards 155.33 and approved demonstration projects; 155.34 (4) developing guidelines for community-based planning; 155.35 (5) distributing public funds to demonstration projects; 155.36 (6) establishing minimum administrative and service 156.1 guidelines and standards for local early childhood boards; 156.2 (7) collecting data necessary to determine factors 156.3 appropriate for formula-based funding of early childhood care 156.4 and education services on a statewide basis; 156.5 (8) establishing data systems to enable the collection and 156.6 analysis of data from a variety of public and private sources 156.7 and payments to individual sites on a statewide basis; and 156.8 (9) designing and implementing a method of monitoring and 156.9 evaluating early childhood care and education criteria and local 156.10 plans. 156.11 Subd. 4. [GRANT APPLICATION OF APPROVAL BOARDS.] (a) A 156.12 community approval board may apply for a grant to establish a 156.13 demonstration project for overseeing the provision of early 156.14 childhood care and school readiness opportunities for every 156.15 child, birth to age five, in service areas where at least 35 156.16 percent of families are eligible for the free or reduced school 156.17 lunch program. The applicant must include: 156.18 (1) designation by the approval board of a local early 156.19 childhood board that meets the requirements of subdivision 2, 156.20 paragraph (e); 156.21 (2) a description of how it will oversee the development of 156.22 a local early childhood care and education plan; 156.23 (3) the process the local early childhood board will use to 156.24 qualify a variety of sites that represent diverse delivery 156.25 systems within the grantee's available resources; and 156.26 (4) a plan to provide and integrate access to the following 156.27 services: 156.28 (i) child care; 156.29 (ii) comprehensive health and dental care for children 156.30 birth to age five; 156.31 (iii)_developmental assessment of children younger than age 156.32 three; 156.33 (iv) job opportunities for parents; 156.34 (v) decent, safe housing for families; 156.35 (vi) home visiting; and 156.36 (vii) birth kits for all infants born during the project 157.1 time frame. 157.2 (b) The commissioner shall consider geographic diversity 157.3 and shall give preference to applicants with: 157.4 (1) designated early childhood boards that represent 157.5 different and identifiable governance structures; 157.6 (2) approval boards with the broadest representation of 157.7 community partners identified in subdivision 2, paragraph (a); 157.8 (3) the capacity to qualify a variety of sites that 157.9 represent diverse delivery systems within the grantee's 157.10 available resources; 157.11 (4) a plan to involve public and private community 157.12 resources to strategically invest in early childhood care and 157.13 education services at the community level; and 157.14 (5) the capacity of the local early childhood board to 157.15 measure outcomes. 157.16 Subd. 5. [DUTIES OF LOCAL EARLY CHILDHOOD BOARD.] (a) 157.17 Local early childhood boards must: 157.18 (1) assess the community's current capacity to address 157.19 early childhood care and education needs of children from birth 157.20 to kindergarten entrance; 157.21 (2) create and implement a program to qualify early 157.22 childhood care and education sites in its community according to 157.23 the criteria under subdivision 6; 157.24 (3) demonstrate the capacity to provide data necessary to 157.25 meet the requirements under subdivision 1; 157.26 (4) create an ongoing evaluation of each site in relation 157.27 to outcomes for children and families; 157.28 (5) provide an appropriate public forum in the community to 157.29 evaluate whether a qualified early childhood care and education 157.30 site continues to meet the criteria under subdivision 6; 157.31 (6) revoke the qualification of a site that fails to meet 157.32 the criteria under subdivision 6; and 157.33 (7) collect data and submit reports related to risk 157.34 factors, including, but not limited to: 157.35 (i) families and children living in poverty; 157.36 (ii) families whose income is 50 percent or less of the 158.1 state median income; 158.2 (iii) families receiving assistance from the Minnesota 158.3 family investment program; 158.4 (iv) children who first learned a language other than 158.5 English, come from a home where the language usually spoken is 158.6 other than English, or usually speak a language other than 158.7 English; 158.8 (v) families identifying themselves in an ethnic or racial 158.9 community other than that which represents the majority of the 158.10 state; 158.11 (vi) mothers who lack literacy competency as demonstrated 158.12 by the absence of a GED or high school diploma; and 158.13 (vii) children exhibiting a health or developmental 158.14 condition identified as requiring referral and follow-up 158.15 services. 158.16 (b) Local early childhood boards must report the number of 158.17 children or families exhibiting each risk factor who: 158.18 (1) are served through the demonstration project; 158.19 (2) reside in the area served in the qualifying site; and 158.20 (3) reside in the community. 158.21 (c) Local early childhood boards must report on types of 158.22 overview provided in categories designated by the commissioner 158.23 and must take maximum advantage of all other state and federal 158.24 funds available for child care. 158.25 Subd. 6. [CRITERIA FOR QUALIFIED SITES.] A qualified site 158.26 must meet the following criteria: 158.27 (1) the site must be a licensed, nonprofit organization, 158.28 except for family child care sites, child care centers, or 158.29 school districts; and 158.30 (2) the learning environment must be developmentally and 158.31 linguistically appropriate, taking into account children's 158.32 individual rates of development and interests, temperaments, 158.33 cultural backgrounds, and learning styles. 158.34 Subd. 7. [LOCAL PLAN.] The local early childhood board of 158.35 each demonstration project shall submit a local early childhood 158.36 care and education plan to the commissioner and shall update the 159.1 plan annually. The plan must include: 159.2 (1) a description of the services to be provided in the 159.3 community and their relationship to the needs of the population; 159.4 (2) a description of the strategies to ensure that children 159.5 at greatest risk receive appropriate services; 159.6 (3) a description of procedures and methods used to 159.7 coordinate public and private resources and maximize use of 159.8 existing community resources including, but not limited to, 159.9 school districts, health care facilities, child care providers, 159.10 government agencies, and neighborhood organizations; 159.11 (4) a data-set including, but not limited to, the number 159.12 and type of qualified sites in the community, the demographic 159.13 information of children served at all qualified sites, the 159.14 income levels of the families of all children served, the 159.15 community of origin of all children served, and the salaries of 159.16 all early child care and education providers; and 159.17 (5) agreements with all participating service providers. 159.18 Subd. 8. [REPORTING BY QUALIFIED SITES.] Beginning in 159.19 calendar year 2003, each qualified site that receives funding 159.20 shall submit to the commissioner data required by the 159.21 commissioner. 159.22 Subd. 9. [REVIEW OF ADMINISTRATIVE REQUIREMENTS.] The 159.23 commissioner shall, as requested by local early childhood 159.24 boards, review laws under the jurisdiction of the commissioner. 159.25 The commissioner shall also review rule requirements and, with 159.26 the approval of the board of government innovation and 159.27 cooperation under Minnesota Statutes, section 465.796, may waive 159.28 burdensome rule requirements if statutory and rule requirements 159.29 can be met in another way and the waiver simplifies or 159.30 consolidates program requirements or funding, or emphasizes 159.31 outcomes rather than procedures. In determining the 159.32 reasonableness of the requirements, the commissioner shall 159.33 consider the needs the service was developed to address and the 159.34 adequacy of the federal, state, and local funding available to 159.35 provide the service. The waiver authority under this 159.36 subdivision does not permit the commissioner to waive rule 160.1 requirements involving: client protections; due process; 160.2 inclusion of clients, parents, cultures, and ethnicity in 160.3 decision making; or requirements of federal laws or rules. 160.4 Subd. 10. [DISTRIBUTION OF GRANT FUNDS.] The commissioner 160.5 must distribute $150,000 in fiscal year 2003 to each 160.6 demonstration project for planning, and collection and analysis 160.7 of data necessary to measure outcomes and to develop a funding 160.8 formula. Direct service funds must be distributed to each 160.9 project as follows: 160.10 (1) a base amount of $100,000 to each project; 160.11 (2) 60 percent of the remaining funds must be allocated 160.12 based on actual population of children birth to age five; and 160.13 (3) 40 percent of the remaining funds must be allocated 160.14 based on the percentage of children living in poverty. 160.15 The grant agreement with each project must identify 160.16 available planning and direct service funds and a local fiscal 160.17 agent. Planning funds must be available at the start of the 160.18 grant agreement. Direct service funds must be available six 160.19 months after execution of the grant agreement. 160.20 The commissioner may make payments to each demonstration 160.21 project in quarterly installments. The commissioner may certify 160.22 an advance up to 25 percent of the allocation. Subsequent 160.23 payments shall be made on a reimbursement basis for reported 160.24 expenditures and may be adjusted for anticipated spending 160.25 patterns. 160.26 Sec. 46. [STUDY ON IMPLEMENTING AN INTEGRATED EARLY 160.27 CHILDHOOD SERVICES SYSTEM.] 160.28 Subdivision 1. [PURPOSE.] The commissioner of children, 160.29 families, and learning shall develop a plan to implement an 160.30 early childhood care and education services system for children 160.31 birth to age five that: 160.32 (1) establishes community control and decision making; 160.33 (2) eliminates separate funding streams for early childhood 160.34 programs; and 160.35 (3) bases revenue on the number and type of service hours 160.36 delivered and the cost per child of delivering those services. 161.1 Subd. 2. [TASK FORCE.] (a) The commissioner shall convene 161.2 a task force to study issues related to this plan with the 161.3 following membership: 161.4 (1) three members of the Minnesota house of 161.5 representatives, appointed by the speaker of the house, with two 161.6 from the majority party and one from the largest minority party; 161.7 (2) three members of the Minnesota senate, appointed by the 161.8 subcommittee on committees of the committee on rules and 161.9 administration, with two from the majority party and one from 161.10 the largest minority party; 161.11 (3) five members appointed by the commissioner; and 161.12 (4) five representatives of early childhood interests. 161.13 (b) Each appointing authority shall use all possible 161.14 efforts to create a geographical balance among the membership in 161.15 order to represent all regional interests of the state. The 161.16 task force shall study and make detailed recommendations 161.17 regarding: 161.18 (1) a local governance structure to oversee delivery of 161.19 services; 161.20 (2) establishing research-based care and educational 161.21 criteria for sites; 161.22 (3) methods of distributing funds to service providers and 161.23 parents; 161.24 (4) integrating early childhood health and development 161.25 screening; 161.26 (5) methods and types of data collection; 161.27 (6) identifying key components of an effective birth to age 161.28 five program; 161.29 (7) flexible service delivery options, including a 161.30 mechanism to allow for consumer feedback; 161.31 (8) methods of providing training, technical assistance, 161.32 and other support services for local governance structures to 161.33 assist in needs assessment, planning, implementing, and 161.34 monitoring early childhood services in the communities; 161.35 (9) designing a format for ongoing evaluation of early 161.36 childhood sites in relation to outcomes for children and 162.1 families; and 162.2 (10) establishing guidelines for community-based planning. 162.3 (c) The task force shall study the issues identified in 162.4 paragraph (b), and any other issue requested by the commissioner. 162.5 Subd. 3. [REPORT.] The task force shall issue a report on 162.6 the issues and recommendations under subdivision 2 by June 30, 162.7 2004, to the senate and house committees with jurisdiction over 162.8 early childhood education. 162.9 Subd. 4. [EXPIRATION.] This section expires when the task 162.10 force submits its final report to the legislature. 162.11 Sec. 47. [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 162.12 FISCAL YEAR 2002.] 162.13 A district that complies with Minnesota Statutes, section 162.14 124D.13, shall receive additional early childhood family 162.15 education aid for fiscal year 2002 equal to $5.60 times the 162.16 greater of: 162.17 (1) 150; or 162.18 (2) the number of people under five years of age residing 162.19 in the school district on October 1 of the previous school 162.20 year. The additional early childhood family education aid may 162.21 be used only for early childhood family education programs. 162.22 Sec. 48. [APPROPRIATIONS.] 162.23 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 162.24 LEARNING.] The sums indicated in this section are appropriated 162.25 from the general fund to the department of children, families, 162.26 and learning for the fiscal years designated. 162.27 Subd. 2. [SCHOOL READINESS PROGRAM REVENUE.] For revenue 162.28 for school readiness programs according to Minnesota Statutes, 162.29 sections 124D.15 and 124D.16: 162.30 $12,195,000 ..... 2002 162.31 $12,395,000 ..... 2003 162.32 The 2002 appropriation includes $1,039,000 for 2001 and 162.33 $11,156,000 for 2002. 162.34 The 2003 appropriation includes $1,240,000 for 2002 and 162.35 $11,155,000 for 2003. 162.36 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 163.1 childhood family education aid according to Minnesota Statutes, 163.2 section 124D.135: 163.3 $22,558,000 ..... 2002 163.4 $22,663,000 ..... 2003 163.5 The 2002 appropriation includes $2,036,000 for 2001 and 163.6 $20,522,000 for 2002. 163.7 The 2003 appropriation includes $2,280,000 for 2002 and 163.8 $20,383,000 for 2003. 163.9 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 163.10 health and developmental screening aid according to Minnesota 163.11 Statutes, sections 121A.17 and 121A.19: 163.12 $2,661,000 ..... 2002 163.13 $5,368,000 ..... 2003 163.14 The 2002 appropriation includes $266,000 for 2001 and 163.15 $2,395,000 for 2002. 163.16 The 2003 appropriation includes $266,000 for 2002 and 163.17 $5,102,000 for 2003. 163.18 Subd. 5. [EARLY CHILDHOOD CARE AND EDUCATION SERVICES 163.19 DEMONSTRATION PROJECTS.] For demonstration projects under 163.20 section 45: 163.21 $575,000 ..... 2002 163.22 $1,225,000 ..... 2003 163.23 Each demonstration project must receive $150,000 each year 163.24 for planning purposes. 163.25 Any balance in the first year does not cancel but is 163.26 available in the second year. 163.27 Subd. 6. [HEAD START PROGRAM.] For Head Start programs 163.28 according to Minnesota Statutes, section 119A.52: 163.29 $20,743,000 ..... 2002 163.30 $21,117,000 ..... 2003 163.31 $2,000,000 each year may be used for full-year programming 163.32 for children birth to age three. Any balance in the first year 163.33 does not cancel but is available in the second year. 163.34 Subd. 7. [SCHOOL-AGE CHILD CARE.] For extended day aid 163.35 according to Minnesota Statutes, section 124D.22: 163.36 $221,000 ..... 2002 164.1 $133,000 ..... 2003 164.2 The 2002 appropriation includes $30,000 for 2001 and 164.3 $191,000 for 2002. 164.4 The 2003 appropriation includes $21,000 for 2002 and 164.5 $112,000 for 2003. 164.6 Subd. 8. [CONSOLIDATED CHILD CARE ASSISTANCE.] For child 164.7 care assistance according to Minnesota Statutes, sections 164.8 119B.011 to 119B.16: 164.9 $144,296,000 ..... 2002 164.10 $141,337,000 ..... 2003 164.11 These appropriations are available to be spent in either 164.12 year. 164.13 Subd. 9. [CHILD CARE INTEGRITY.] For the administrative 164.14 costs of program integrity and fraud prevention for child care 164.15 assistance under chapter 119B: 164.16 $25,000 ..... 2002 164.17 $25,000 ..... 2003 164.18 Any balance in the first year does not cancel but is 164.19 available in the second year. 164.20 Subd. 10. [CHILD CARE SERVICES GRANTS.] For child care 164.21 services grants according to Minnesota Statutes, section 119B.21: 164.22 $2,015,000 ..... 2002 164.23 $2,015,000 ..... 2003 164.24 Any balance in the first year does not cancel but is 164.25 available in the second year. 164.26 Subd. 11. [CHILD CARE IMPROVEMENT GRANTS.] For child care 164.27 improvement grants according to Minnesota Statutes, section 164.28 119B.25: 164.29 $500,000 ..... 2002 164.30 Subd. 12. [CHILD CARE MARKET RATE SURVEYS.] For child care 164.31 market rate surveys according to Minnesota Statutes, section 164.32 119B.13, subdivision 1: 164.33 $3,000 ..... 2002 164.34 Subd. 13. [TEACH GRANTS.] For TEACH grants according to 164.35 Minnesota Statutes, section 119B.221: 164.36 $1,000,000 ..... 2002 165.1 $1,000,000 ..... 2003 165.2 This amount must be matched with private funds on a 165.3 one-to-one basis. 165.4 Subd. 14. [AT-HOME INFANT CHILD CARE PROGRAM.] For the 165.5 at-home infant child care program under Minnesota Statutes, 165.6 section 119B.061: 165.7 $1,000,000 ..... 2002 165.8 $1,000,000 ..... 2003 165.9 Any amount remaining in fiscal years 2002 and 2003 that is 165.10 not needed for the at-home infant child care program must be 165.11 used for child care assistance under Minnesota Statutes, section 165.12 119B.03, subdivision 3a. If the commissioner determines that 165.13 the department will not be able to meet the child care and 165.14 development fund match and maintenance of effort requirements 165.15 without the funds appropriated in this subdivision, the 165.16 commissioner may move the necessary amount of funds from this 165.17 appropriation into the appropriation for the consolidated child 165.18 care program. 165.19 Sec. 49. [FEDERAL TANF TRANSFERS.] 165.20 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 165.21 LEARNING.] The sums indicated in this section are transferred 165.22 from the federal TANF fund to the child care and development 165.23 fund and appropriated to the department of children, families, 165.24 and learning for the fiscal years designated. The commissioner 165.25 shall ensure that all transferred funds are expended in 165.26 accordance with the child care and development fund regulations 165.27 and that the maximum allowable transferred funds are used for 165.28 the programs in this section. 165.29 Subd. 2. [CONSOLIDATED CHILD CARE ASSISTANCE.] For child 165.30 care assistance according to Minnesota Statutes, sections 165.31 119B.011 to 119B.16: 165.32 $21,229,000 ..... 2002 165.33 $16,737,000 ..... 2003 165.34 Sec. 50. [REVISOR INSTRUCTION.] 165.35 In the next and subsequent editions of Minnesota Statutes 165.36 and Minnesota Rules, the revisor shall renumber Minnesota 166.1 Statutes, section 119B.05, subdivisions 4 and 5, as Minnesota 166.2 Statutes, section 119B.03, subdivisions 11 and 12, and make 166.3 necessary cross-reference changes consistent with the 166.4 renumbering. 166.5 Sec. 51. [REPEALER.] 166.6 Minnesota Statutes 2000, sections 119B.011, subdivision 20; 166.7 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, and 8; 119B.05, 166.8 subdivision 1; 119B.07; 119B.09, subdivision 3; and 119B.11, 166.9 subdivision 4, are repealed. 166.10 ARTICLE 7 166.11 PREVENTION 166.12 Section 1. Minnesota Statutes 2000, section 119A.12, is 166.13 amended by adding a subdivision to read: 166.14 Subd. 4. [AUTHORITY TO DISBURSE FUNDS.] The commissioner 166.15 may disburse trust fund money to any public or private nonprofit 166.16 agency to fund a child abuse prevention program. State funds 166.17 appropriated for child maltreatment prevention grants may be 166.18 transferred to the children's trust fund special revenue account 166.19 and are available to carry out this section. 166.20 Sec. 2. Minnesota Statutes 2000, section 119A.12, is 166.21 amended by adding a subdivision to read: 166.22 Subd. 5. [PLAN FOR DISBURSEMENT OF FUNDS.] The 166.23 commissioner shall develop a plan to disburse money from the 166.24 trust fund. The plan must ensure that all geographic areas of 166.25 the state have an equal opportunity to establish prevention 166.26 programs and receive trust fund money. 166.27 Sec. 3. Minnesota Statutes 2000, section 119A.12, is 166.28 amended by adding a subdivision to read: 166.29 Subd. 6. [OPERATIONAL COSTS.] $120,000 each year is 166.30 appropriated from the children's trust fund to the special 166.31 revenue fund for administration and indirect costs of the 166.32 children's trust fund program. 166.33 Sec. 4. Minnesota Statutes 2000, section 119A.13, 166.34 subdivision 4, is amended to read: 166.35 Subd. 4. [RESPONSIBILITIES OF COMMISSIONER.] (a) The 166.36 commissioner shall: 167.1 (1) provide for the coordination and exchange of 167.2 information on the establishment and maintenance of prevention 167.3 programs; 167.4 (2) develop and publish criteria for receiving trust fund 167.5 money by prevention programs; 167.6 (3) review, approve, and monitor the spending of trust fund 167.7 money by prevention programs; 167.8 (4) provide statewide educational and public informational 167.9 seminars to develop public awareness on preventing child abuse; 167.10 to encourage professional persons and groups to recognize 167.11 instances of child abuse and work to prevent them; to make 167.12 information on child abuse prevention available to the public 167.13 and to organizations and agencies; and to encourage the 167.14 development of prevention programs, including programs that 167.15 provide support for adolescent parents, fathering education 167.16 programs, and other prevention activities designed to prevent 167.17 teen pregnancy; 167.18 (5) establish a procedure for an annual, internal 167.19 evaluation of the functions, responsibilities, and performance 167.20 of the commissioner in carrying out Laws 1986, chapter 423; 167.21 (6) provide technical assistance to local councils and 167.22 agencies working in the area of child abuse prevention; and 167.23 (7) accept and review grant applications beginning June 1, 167.24 1987. 167.25 (b) The commissioner shall recommend to the governor 167.26 changes in state programs, statutes, policies, budgets, and 167.27 standards that will reduce the problems of child abuse, improve 167.28 coordination among state agencies that provide prevention 167.29 services, and improve the condition of children, parents, or 167.30 guardians in need of prevention program services. 167.31 Sec. 5. Minnesota Statutes 2000, section 119A.21, is 167.32 amended to read: 167.33 119A.21 [GRANTS TO SERVICE PROVIDER PROGRAMS.] 167.34 Subdivision 1. [GRANTS AWARDED.] The commissioner shall 167.35 award grants to programswhichthat provideabused children167.36 services to abused or neglected children. Grants shall be 168.1 awarded in a manner that ensures that they are equitably 168.2 distributed to programs serving metropolitan and nonmetropolitan 168.3 populations. 168.4 Subd. 2. [APPLICATIONS.] Any public or private nonprofit 168.5 agency may apply to the commissioner for a grantto provide168.6abused children services. The application shall be submittedin168.7 on a formapprovedprescribed by the commissionerafter168.8consultation with the abused children advisory council and shall168.9include:. 168.10(1) a proposal for the provision of abused children168.11services to, or on behalf of, abused children, children at risk,168.12and their families;168.13(2) a proposed budget;168.14(3) evidence of ability to represent the interests of168.15abused children and their families to local law enforcement168.16agencies and courts, social services, and health agencies;168.17(4) evidence of ability to do outreach to unserved and168.18underserved populations and to provide culturally and168.19linguistically appropriate services; and168.20(5) any other information the commissioner may require by168.21policy or by rule adopted under chapter 14, after considering168.22the recommendations of the abused children advisory council.168.23Programs which have been approved for grants in prior years168.24may submit materials which indicate changes in items listed in168.25clauses (1) to (5), in order to qualify for renewal funding.168.26Nothing in this subdivision may be construed to require programs168.27to submit complete applications for each year of funding.168.28 Subd. 3. [DUTIES.] Every public or private nonprofit 168.29 agency which receives a grant under this sectionto provide168.30abused children servicesshall comply with all requirements of 168.31 the commissioner related to the administration of the grants. 168.32 Subd. 4. [CLASSIFICATION OF DATA COLLECTED BY GRANTEES.] 168.33 Personal history information and other information collected, 168.34 used, or maintained by a grantee from which the identity of any 168.35 abused child or family members may be determined is private data 168.36 on individuals as defined in section 13.02, subdivision 12, and 169.1 the grantee shall maintain the data in accordance with 169.2 provisions of chapter 13. 169.3 Sec. 6. Minnesota Statutes 2000, section 119A.22, is 169.4 amended to read: 169.5 119A.22 [DUTIES OF THE COMMISSIONER.] 169.6 The commissioner shall: 169.7 (1) review applications and award grants to programs 169.8 pursuant to section 119A.21after considering the recommendation169.9of the abused children advisory council; 169.10 (2)appoint members of the abused children advisory council169.11created under section 119A.23 and provide consultative staff and169.12other administrative services to the council;169.13(3) after considering the recommendation of the abused169.14children advisory council, appoint a program director to perform169.15the duties set forth in this clause. In appointing the program169.16director the commissioner shall give due consideration to the169.17list of applicants submitted to the commissioner pursuant to169.18this section. The program director shall administer the funds169.19appropriated for sections 119A.20 to 119A.23, consult with and169.20provide staff to the advisory council and perform other duties169.21related to abused children's programs as the commissioner may169.22assign;169.23(4)design a uniform method of collecting dataon abused169.24children's programsto be used to monitor and assure compliance 169.25 of the programs funded under section 119A.21; 169.26(5)(3) provide technicalaidassistance to applicants in 169.27 the development of grant requests and toprogramsgrantees in 169.28 meeting the data collection requirements established by the 169.29 commissioner; and 169.30(6)(4) adopt, under chapter 14, all rules necessary to 169.31 implement the provisions of sections 119A.20 to 119A.23. 169.32 Sec. 7. [119A.35] [ADVISORY COUNCIL.] 169.33 Subdivision 1. [GENERALLY.] The advisory council is 169.34 established under section 15.059 to advise the commissioner on 169.35 the implementation and continued operations of sections 119A.10 169.36 to 119A.16 and 119A.20 to 119A.22. The council shall expire 170.1 June 30, 2005. 170.2 Subd. 2. [COUNCIL MEMBERSHIP.] The council shall consist 170.3 of a total of 22 members. The governor shall appoint 18 of 170.4 these members. The commissioners of human services and health 170.5 shall each appoint one member. The senate shall appoint one 170.6 member from the senate committee with jurisdiction over family 170.7 and early childhood education and the house of representatives 170.8 shall appoint one member from the house committee with 170.9 jurisdiction over family and early childhood education. 170.10 Council members shall have knowledge in the areas of child 170.11 abuse and neglect prevention, and knowledge of the risk factors 170.12 that can lead to child abuse and neglect. Council members shall 170.13 be representative of local government, criminal justice, 170.14 parents, consumers of services, health and human services 170.15 professionals, faith communities, professional and volunteer 170.16 providers of child abuse and neglect prevention services, racial 170.17 and ethnic minority communities, and the demographic and 170.18 geographic composition of the state. Ten council members shall 170.19 reside in the seven-county metropolitan area and eight shall 170.20 reside in nonmetropolitan areas. 170.21 Subd. 3. [RESPONSIBILITIES.] The council shall: 170.22 (1) advise the commissioner on planning, policy 170.23 development, data collection, rulemaking, funding, and 170.24 evaluation of the programs under the sections listed in 170.25 subdivision 1; 170.26 (2) coordinate and exchange information on the 170.27 establishment and ongoing operation of the programs listed in 170.28 subdivision 1; 170.29 (3) develop and publish criteria and guidelines for 170.30 receiving grants relating to child abuse and neglect prevention 170.31 and safety and support of child victims, including, but not 170.32 limited to, funds dedicated to the children's trust fund and 170.33 abused children program; 170.34 (4) provide guidance in the development of statewide 170.35 education and public information activities that increase public 170.36 awareness in the prevention and intervention of child abuse and 171.1 neglect and encourage the development of prevention and 171.2 intervention programs, which includes the safety of child 171.3 victims; 171.4 (5) guide, analyze, and disseminate results in the 171.5 development of appropriate evaluation procedures for all 171.6 programs receiving funds under subdivision 1; and 171.7 (6) assist the commissioner in identifying service gaps or 171.8 duplication in services, including geographic dispersion of 171.9 resources, programs reflecting the cycle of child abuse, and the 171.10 availability of culturally appropriate intervention and 171.11 prevention services. 171.12 Sec. 8. Minnesota Statutes 2000, section 124D.221, 171.13 subdivision 1, is amended to read: 171.14 Subdivision 1. [ESTABLISHMENT.] A competitive statewide 171.15 after-school enrichment grant program is established to provide 171.16 implementation grants to community or nonprofit organizations, 171.17 to political subdivisions, or to school-based programs. A 171.18 community or nonprofit organization must be a charitable 171.19 organization under section 501(c)(3) of the Internal Revenue 171.20 Code of 1986 and registered with the attorney general's office. 171.21 The commissioner shall develop criteria for after-school 171.22 enrichment programs. 171.23 Sec. 9. Minnesota Statutes 2000, section 124D.221, 171.24 subdivision 2, is amended to read: 171.25 Subd. 2. [PRIORITYNEIGHBORHOODS.] (a) The commissioner 171.26 must give priority to applicants who: 171.27 (1) demonstrate a match of $1 of nonstate funding for each 171.28 $1 of the grant amount awarded for the implementation of an 171.29 after-school enrichment program. For the purposes of this 171.30 clause, the nonstate match may include the fair market value of 171.31 an in-kind contribution of facility space; and 171.32 (2) establish an accountability system that sets measurable 171.33 goals and outcomes that support academic achievement, school 171.34 attendance, a reduction in suspensions, and assesses 171.35 participants' progress on these measures annually. 171.36 (b) For grants in Minneapolis and St. Paul, the 172.1 commissioner must give first priority to neighborhoods in this 172.2subdivisionparagraph and second priority according to paragraph 172.3 (a), clause (1). In Minneapolis, priority neighborhoods are 172.4 Near North, Hawthorne, Sumner-Glenwood, Harrison, Jordan, 172.5 Powderhorn, Central, Whittier, Cleveland, McKinley, Waite Park, 172.6 Sheridan, Holland, Lyndale, Folwell, and Phillips. In St. Paul, 172.7 priority neighborhoods are Summit-University, Thomas-Dale, North 172.8 End, Payne-Phalen, Daytons Bluff, and the West Side. 172.9 Sec. 10. [APPROPRIATIONS.] 172.10 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 172.11 LEARNING.] The sums indicated in this section are appropriated 172.12 from the general fund, unless otherwise indicated, to the 172.13 department of children, families, and learning for the fiscal 172.14 years designated. 172.15 Subd. 2. [FAMILY SERVICES COLLABORATIVES.] For family 172.16 services collaboratives according to Laws 1995, First Special 172.17 Session chapter 3, article 4, section 29, subdivision 10: 172.18 $1,477,000 ..... 2002 172.19 $863,000 ..... 2003 172.20 No new family services collaboratives shall be funded with 172.21 this appropriation after June 30, 1999. 172.22 Any balance in the first year does not cancel but is 172.23 available in the second year. 172.24 Subd. 3. [COMMUNITY EDUCATION AID.] For community 172.25 education aid according to Minnesota Statutes, section 124D.20: 172.26 $14,209,000 ..... 2002 172.27 $13,111,000 ..... 2003 172.28 The 2002 appropriation includes $1,528,000 for 2001 and 172.29 $12,681,000 for 2002. 172.30 The 2003 appropriation includes $1,409,000 for 2002 and 172.31 $11,702,000 for 2003. 172.32 Any balance in the first year does not cancel but is 172.33 available in the second year. 172.34 Subd. 4. [ADULTS WITH DISABILITIES PROGRAM AID.] For 172.35 adults with disabilities programs according to Minnesota 172.36 Statutes, section 124D.56: 173.1 $710,000 ..... 2002 173.2 $710,000 ..... 2003 173.3 Any balance in the first year does not cancel but is 173.4 available in the second year. 173.5 Subd. 5. [HEARING-IMPAIRED ADULTS.] For programs for 173.6 hearing-impaired adults according to Minnesota Statutes, section 173.7 124D.57: 173.8 $70,000 ..... 2002 173.9 $70,000 ..... 2003 173.10 Any balance in the first year does not cancel but is 173.11 available in the second year. 173.12 Subd. 6. [VIOLENCE PREVENTION EDUCATION GRANTS.] For 173.13 violence prevention education grants according to Minnesota 173.14 Statutes, section 120B.23: 173.15 $1,450,000 ..... 2002 173.16 $1,450,000 ..... 2003 173.17 Any balance in the first year does not cancel but is 173.18 available in the second year. 173.19 Subd. 7. [ABUSED CHILDREN.] For abused children programs 173.20 according to Minnesota Statutes, section 119A.21: 173.21 $945,000 ..... 2002 173.22 $945,000 ..... 2003 173.23 Any balance in the first year does not cancel but is 173.24 available in the second year. 173.25 Subd. 8. [CHILDREN'S TRUST FUND.] For children's trust 173.26 fund according to Minnesota Statutes, sections 119A.12 and 173.27 119A.13: 173.28 $875,000 ..... 2002 173.29 $875,000 ..... 2003 173.30 Of this amount, $400,000 each year is for the adolescent 173.31 parenting program according to Minnesota Statutes, section 173.32 124D.331; and $250,000 each year is for male responsibility 173.33 grants according to Minnesota Statutes, section 124D.33. 173.34 Any balance in the first year does not cancel but is 173.35 available in the second year. 173.36 Subd. 9. [FAMILY VISITATION CENTERS.] (a) For family 174.1 visitation centers according to Minnesota Statutes, section 174.2 119A.37: 174.3 $200,000 ..... 2002 174.4 $200,000 ..... 2003 174.5 Any balance in the first year does not cancel but is 174.6 available in the second year. 174.7 (b) An additional $96,000 in fiscal year 2002 and $96,000 174.8 in fiscal year 2003 are appropriated from the special revenue 174.9 fund under Minnesota Statutes, section 517.08, subdivision 1c, 174.10 for family visitation centers. Any balance in the first year 174.11 does not cancel but is available in the second year. 174.12 Subd. 10. [AFTER SCHOOL ENRICHMENT GRANTS.] For after 174.13 school enrichment grants according to Minnesota Statutes, 174.14 section 124D.221: 174.15 $5,510,000 ..... 2002 174.16 $5,510,000 ..... 2003 174.17 Any balance in the first year does not cancel but is 174.18 available in the second year. 174.19 Subd. 11. [CHEMICAL ABUSE PREVENTION GRANTS.] (a) For 174.20 grants with funds received under Minnesota Statutes, section 174.21 171.29, subdivision 2, paragraph (b), clause (4): 174.22 $200,000 ..... 2002 174.23 $200,000 ..... 2003 174.24 (b) These appropriations are from the alcohol-impaired 174.25 driver account of the special revenue fund for chemical abuse 174.26 prevention grants. 174.27 Sec. 11. [REVISOR INSTRUCTION.] 174.28 In the next and subsequent editions of Minnesota Statutes 174.29 and Minnesota Rules, the revisor shall renumber Minnesota 174.30 Statutes, section 119A.13, subdivision 4, as Minnesota Statutes, 174.31 section 119A.12, subdivision 4, and make necessary 174.32 cross-reference changes consistent with the renumbering. 174.33 Sec. 12. [REPEALER.] 174.34 Minnesota Statutes 2000, sections 119A.13, subdivisions 1, 174.35 2, and 3; 119A.14, subdivision 2; 119A.23; 124D.33; and 174.36 124D.331, are repealed. 175.1 ARTICLE 8 175.2 SELF-SUFFICIENCY AND LIFELONG LEARNING 175.3 Section 1. Minnesota Statutes 2000, section 124D.52, 175.4 subdivision 2, is amended to read: 175.5 Subd. 2. [PROGRAM APPROVAL.] (a) To receive aid under this 175.6 section, a district, a consortium of districts, the department 175.7 of corrections, or a private nonprofit organization must submit 175.8 an application by June 1 describing the program, on a form 175.9 provided by the department. The program must be approved by the 175.10 commissioner according to the following criteria: 175.11 (1) how the needs of different levels of learning will be 175.12 met; 175.13 (2) for continuing programs, an evaluation of results; 175.14 (3) anticipated number and education level of participants; 175.15 (4) coordination with other resources and services; 175.16 (5) participation in a consortium, if any, and money 175.17 available from other participants; 175.18 (6) management and program design; 175.19 (7) volunteer training and use of volunteers; 175.20 (8) staff development services; 175.21 (9) program sites and schedules; 175.22 (10) program expenditures that qualify for aid; 175.23 (11) program ability to provide data related to learner 175.24 outcomes as required by law; and 175.25 (12) a copy of the memorandum of understanding described in 175.26 subdivision 1 submitted to the commissioner. 175.27 (b) Adult basic education programs may be approved under 175.28 this subdivision for up to five years. Five-year program 175.29 approval must be granted to an applicant who has demonstrated 175.30 the capacity to: 175.31 (1) offer comprehensive learning opportunities and support 175.32 service choices appropriate for and accessible to adults at all 175.33 basic skill need levels; 175.34 (2) provide a participatory and experiential learning 175.35 approach based on the strengths, interests, and needs of each 175.36 adult, that enables adults with basic skill needs to: 176.1 (i) identify, plan for, and evaluate their own progress 176.2 toward achieving their defined educational and occupational 176.3 goals; 176.4 (ii) master the basic academic reading, writing, and 176.5 computational skills, as well as the problem-solving, decision 176.6 making, interpersonal effectiveness, and other life and learning 176.7 skills they need to function effectively in a changing society; 176.8 (iii) locate and be able to use the health, governmental, 176.9 and social services and resources they need to improve their own 176.10 and their families' lives; and 176.11 (iv) continue their education, if they desire, to at least 176.12 the level of secondary school completion, with the ability to 176.13 secure and benefit from continuing education that will enable 176.14 them to become more employable, productive, and responsible 176.15 citizens; 176.16 (3) plan, coordinate, and develop cooperative agreements 176.17 with community resources to address the needs that the adults 176.18 have for support services, such as transportation, flexible 176.19 course scheduling, convenient class locations, and child care; 176.20 (4) collaborate with business, industry, labor unions, and 176.21 employment-training agencies, as well as with family and 176.22 occupational education providers, to arrange for resources and 176.23 services through which adults can attain economic 176.24 self-sufficiency; 176.25 (5) provide sensitive and well trained adult education 176.26 personnel who participate in local, regional, and statewide 176.27 adult basic education staff development events to master 176.28 effective adult learning and teaching techniques; 176.29 (6) participate in regional adult basic education peer 176.30 program reviews and evaluations; 176.31 (7) submit accurate and timely performance and fiscal 176.32 reports; 176.33 (8) submit accurate and timely reports related to program 176.34 outcomes and learner follow-up information; and 176.35 (9) spend adult basic education aid on adult basic 176.36 education purposes only, which are specified in sections 177.1 124D.518 to 124D.531. 177.2 (c) The commissioner shall require each district to provide 177.3 notification by February 1, 2001, of its intent to apply for 177.4 funds under this section as a single district or as part of an 177.5 identified consortium of districts. A district receiving funds 177.6 under this section must notify the commissioner by February 1 of 177.7 its intent to change its application status for applications due 177.8 the following June 1. 177.9 Sec. 2. Minnesota Statutes 2000, section 124D.522, is 177.10 amended to read: 177.11 124D.522 [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 177.12 GRANTS.] 177.13 (a) The commissioner, in consultation with the policy 177.14 review task force under section 124D.521, may make grants to 177.15 nonprofit organizations to provide services that are not offered 177.16 by a district adult basic education program or that are 177.17 supplemental to either the statewide adult basic education 177.18 program, or a district's adult basic education program. The 177.19 commissioner may make grants for: staff development for adult 177.20 basic education teachers and administrators; training for 177.21 volunteer tutors; training, services, and materials for serving 177.22 disabled students through adult basic education programs; 177.23 statewide promotion of adult basic education services and 177.24 programs; development and dissemination of instructional and 177.25 administrative technology for adult basic education programs; 177.26 programs which primarily serve communities of color; adult basic 177.27 education distance learning projects, including television 177.28 instruction programs; and other supplemental services to support 177.29 the mission of adult basic education and innovative delivery of 177.30 adult basic education services. 177.31 (b) The commissioner must establish eligibility criteria 177.32 and grant application procedures. Grants under this section 177.33 must support services throughout the state, focus on educational 177.34 results for adult learners, and promote outcome-based 177.35 achievement through adult basic education programs. Beginning 177.36 in fiscal year 2002, the commissioner may make grants under this 178.1 section fromfunds specifically appropriatedthe state total 178.2 adult basic education aid set aside for supplemental service 178.3 grants under section 124D.531. Up toone-thirdone-fourth of 178.4 the appropriation for supplemental service grants must be used 178.5 for grants for adult basic education programs to encourage and 178.6 support innovations in adult basic education instruction and 178.7 service delivery. A grant to a single organization cannot 178.8 exceed $100,000. Nothing in this section prevents an approved 178.9 adult basic education program from using state or federal aid to 178.10 purchase supplemental services. 178.11 [EFFECTIVE DATE.] This section is effective July 1, 2001. 178.12 Sec. 3. Minnesota Statutes 2000, section 124D.531, 178.13 subdivision 1, is amended to read: 178.14 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 178.15 (a) The state total adult basic education aid for fiscal year 178.16 2001 equals $30,157,000. The state total adult basic education 178.17 aid for later years equals: 178.18 (1) the state total adult basic education aid for the 178.19 preceding fiscal year; times 178.20 (2) the lesser of: 178.21 (i) 1.08, or 178.22 (ii) the greater of 1.00 or the ratio of the state total 178.23 contact hours in the first prior program year to the state total 178.24 contact hours in the second prior program year. Beginning in 178.25 fiscal year 2002, two percent of the state total adult basic 178.26 education aid must be set aside for adult basic education 178.27 supplemental service grants under section 124D.522. 178.28 (b) The state total adult basic education aid, excluding 178.29 basic population aid, equals the difference between the amount 178.30 computed in paragraph (a), and the state total basic population 178.31 aid under subdivision 2. 178.32 [EFFECTIVE DATE.] This section is effective July 1, 2001. 178.33 Sec. 4. Minnesota Statutes 2000, section 124D.531, 178.34 subdivision 3, is amended to read: 178.35 Subd. 3. [PROGRAM REVENUE.] Adult basic education programs 178.36 established under section 124D.52 and approved by the 179.1 commissioner are eligible for revenue under this subdivision. 179.2 For fiscal year 2001 and later, adult basic education revenue 179.3 for each approved program equals the sum of: 179.4 (1) the basic population aid under subdivision 2 for 179.5 districts participating in the program during the current 179.6 program year; plus 179.7 (2) 84 percent times the amount computed in subdivision 1, 179.8 paragraph (b), times the ratio of the contact hours for students 179.9 participating in the program during the first prior program year 179.10 to the state total contact hours during the first prior program 179.11 year; plus 179.12 (3) eight percent times the amount computed in subdivision 179.13 1, paragraph (b), times the ratio of the enrollment of students 179.14 with limited English proficiency during the second prior school 179.15 year in districts participating in the program during the 179.16 current program year to the state total enrollment of students 179.17 with limited English proficiency during the second prior school 179.18 year in districts participating in adult basic education 179.19 programs during the current program year; plus 179.20 (4) eight percent times the amount computed in subdivision 179.21 1, paragraph (b), times the ratio of the latest federal census 179.22 count of the number of adults aged 20 or older with no diploma 179.23 residing in the districts participating in the program during 179.24 the current program year to the latest federal census count of 179.25 the state total number of adults aged 20 or older with no 179.26 diploma residing in the districts participating in adult basic 179.27 education programs during the current program year. 179.28 Sec. 5. [APPROPRIATIONS.] 179.29 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 179.30 LEARNING.] The sums indicated in this section are appropriated 179.31 from the general fund to the department of children, families, 179.32 and learning for the fiscal years designated. 179.33 Subd. 2. [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 179.34 Minnesota economic opportunity grants: 179.35 $8,514,000 ..... 2002 179.36 $8,514,000 ..... 2003 180.1 Any balance in the first year does not cancel but is 180.2 available in the second year. 180.3 Subd. 3. [ADULT BASIC EDUCATION AID.] For adult basic 180.4 education aid according to Minnesota Statutes, section 124D.52 180.5 in fiscal year 2002 and Minnesota Statutes, section 124D.531 in 180.6 fiscal year 2003: 180.7 $32,150,000 ..... 2002 180.8 $34,731,000 ..... 2003 180.9 The 2002 appropriation includes $3,019,000 for 2001 and 180.10 $29,131,000 for 2002. 180.11 The 2003 appropriation includes $3,237,000 for 2002 and 180.12 $31,494,000 for 2003. 180.13 Subd. 4. [ADULT GRADUATION AID.] For adult graduation aid 180.14 according to Minnesota Statutes, section 124D.54: 180.15 $3,195,000 ..... 2002 180.16 $3,356,000 ..... 2003 180.17 The 2002 appropriation includes $305,000 for 2001 and 180.18 $2,890,000 for 2002. 180.19 The 2003 appropriation includes $321,000 for 2002 and 180.20 $3,035,000 for 2003. 180.21 Subd. 5. [GED TESTS.] For payment of 60 percent of the 180.22 costs of GED tests according to Laws 1993, chapter 224, article 180.23 4, section 44, subdivision 10: 180.24 $125,000 ..... 2002 180.25 $125,000 ..... 2003 180.26 Any balance in the first year does not cancel but is 180.27 available in the second year. 180.28 Subd. 6. [FOOD BANK PROGRAM.] For foodshelf programs 180.29 according to Minnesota Statutes, section 119A.44: 180.30 $1,278,000 ..... 2002 180.31 $1,278,000 ..... 2003 180.32 Any balance in the first year does not cancel but is 180.33 available in the second year. 180.34 Subd. 7. [FAMILY ASSETS FOR INDEPENDENCE.] For family 180.35 assets for independence: 180.36 $500,000 ..... 2002 181.1 Any balance in the first year does not cancel but is 181.2 available in the second year. 181.3 Subd. 8. [LEAD ABATEMENT.] For lead abatement according to 181.4 Minnesota Statutes, section 119A.46: 181.5 $500,000 ..... 2002 181.6 $500,000 ..... 2003 181.7 Subd. 9. [ADULT BASIC EDUCATION ADMINISTRATION.] For adult 181.8 basic education administration: 181.9 $175,000 ..... 2002 181.10 $175,000 ..... 2003 181.11 Sec. 6. [TANF APPROPRIATIONS.] 181.12 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 181.13 LEARNING.] The sums indicated in this section are appropriated 181.14 to the commissioner of children, families, and learning from the 181.15 federal Temporary Assistance for Needy Families (TANF) block 181.16 grant for the fiscal years designated. These amounts are 181.17 available for expenditure until June 30, 2003. Appropriations 181.18 under this section are one-time appropriations and are not added 181.19 to the base for fiscal years 2004 and 2005. 181.20 Subd. 2. [INTENSIVE ESL.] For intensive English as a 181.21 second language (ESL) for eligible MFIP participants under Laws 181.22 2000, chapter 489, article 1, section 39: 181.23 $1,100,000 ..... 2002 181.24 $1,100,000 ..... 2003 181.25 ARTICLE 9 181.26 LIBRARIES 181.27 Section 1. Minnesota Statutes 2000, section 125B.20, 181.28 subdivision 1, is amended to read: 181.29 Subdivision 1. [ESTABLISHMENT; PURPOSE.] The purpose of 181.30 developing a statewide school district telecommunications 181.31 network is to expand the availability of a broad range of 181.32 courses and degrees to students throughout the state, to share 181.33 information resources to improve access, quality, and 181.34 efficiency, to improve learning, and distance cooperative 181.35 learning opportunities, and to promote the exchange of ideas 181.36 among students, parents, teachers, media generalists, 182.1 librarians, and the public. In addition, through the 182.2 development of this statewide telecommunications network 182.3 emphasizing cost-effective, competitive connections, all 182.4 Minnesotans will benefit by enhancing access to 182.5 telecommunications technology throughout the state. Network 182.6 connections for school districts and public libraries are 182.7 coordinated and fully integrated into the existing state 182.8 telecommunications and interactive television networks to 182.9 achieve comprehensive and efficient interconnectivity of school 182.10 districts and libraries to higher education institutions, state 182.11 agencies, other governmental units, agencies, and institutions 182.12 throughout Minnesota. A school district may apply to the 182.13 commissioner for a grant under subdivision 2, and a regional182.14public library may apply under subdivision 3. The Minnesota 182.15 education telecommunications council established in Laws 1995, 182.16 First Special Session chapter 3, article 12, section 7, shall 182.17 establish priorities for awarding grants, making grant awards, 182.18 and being responsible for the coordination of networks. 182.19 Sec. 2. [134.47] [REGIONAL LIBRARY TELECOMMUNICATIONS 182.20 AID.] 182.21 Subdivision 1. [ELIGIBILITY.] (a) A regional public 182.22 library system may apply for regional library telecommunications 182.23 aid. The aid must be used for data and video access costs and 182.24 other related costs to improve or maintain electronic access and 182.25 connect the library system with the state information 182.26 infrastructure administered by the department of administration 182.27 under section 16B.465. Priority shall be given to public 182.28 libraries that have not received access. To be eligible, a 182.29 regional public library system must be officially designated by 182.30 the commissioner of children, families, and learning as a 182.31 regional public library system as defined in section 134.34, 182.32 subdivision 3, and each of its participating cities and counties 182.33 must meet local support levels defined in section 134.34, 182.34 subdivision 1. A public library building that receives aid 182.35 under this section must be open a minimum of 20 hours per week. 182.36 (b) Aid received under this section may not be used to 183.1 substitute for any existing local funds allocated to provide 183.2 electronic access, equipment for library staff or the public, or 183.3 local funds dedicated to other library operations. 183.4 (c) An application for regional library telecommunications 183.5 aid must, at a minimum, contain information to document the 183.6 following: 183.7 (1) the connections are adequate and employ an open network 183.8 architecture that will ensure interconnectivity and 183.9 interoperability with school districts, post-secondary 183.10 education, or other governmental agencies; 183.11 (2) that the connection is established through the most 183.12 cost-effective means and that the regional library has explored 183.13 and coordinated connections through school districts, 183.14 post-secondary education, or other governmental agencies; 183.15 (3) that the regional library system has filed an e-rate 183.16 application; and 183.17 (4) other information, as determined by the commissioner of 183.18 children, families, and learning, to ensure that connections are 183.19 coordinated, efficient, and cost-effective, take advantage of 183.20 discounts, and meet applicable state standards. 183.21 The library system may include costs associated with 183.22 cooperative arrangements with post-secondary institutions, 183.23 school districts, and other governmental agencies. 183.24 Subd. 2. [AWARD OF FUNDS.] The commissioner of children, 183.25 families, and learning shall develop an application and a 183.26 reporting form and procedures for regional library 183.27 telecommunications aid. Aid shall be based on actual costs of 183.28 connections and funds available for this purpose. The 183.29 commissioner shall make payments directly to the regional public 183.30 library system. 183.31 Subd. 3. [EXPIRATION.] This section expires on July 1, 183.32 2003. 183.33 Sec. 3. Laws 2000, chapter 489, article 5, section 23, is 183.34 amended to read: 183.35 Sec. 23. [COMMISSIONER RECOMMENDATION.] 183.36 By February 1, 2002, the commissioner of children, 184.1 families, and learning, in cooperation with the commissioner of 184.2 administration and the Minnesota education telecommunication 184.3 council, shall recommend to the legislature a permanent method 184.4 for funding telecommunications access as part of the general 184.5 education revenue formula under Minnesota Statutes, section 184.6 126C.10, for school districts and charter schools and a 184.7 permanent method for funding telecommunications access as part 184.8 of the basic support grants for public libraries. The 184.9 commissioner shall consider the following in making the 184.10 recommendation: 184.11 (1) the range of costs for providing a minimum level of 184.12 telecommunications access for all students and library users; 184.13 (2) the flexibility that is necessary to accommodate 184.14 emerging technological advances in the telecommunications field; 184.15 and 184.16 (3) other related efforts within the state, including the 184.17 state's higher education and public library systems. 184.18 Sec. 4. [APPROPRIATIONS.] 184.19 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 184.20 LEARNING.] The sums indicated in this section are appropriated 184.21 from the general fund to the department of children, families, 184.22 and learning for the fiscal years designated. 184.23 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 184.24 according to Minnesota Statutes, sections 134.32 to 134.35: 184.25 $8,570,000 ..... 2002 184.26 $8,570,000 ..... 2003 184.27 The 2002 appropriation includes $857,000 for 2001 and 184.28 $7,713,000 for 2002. 184.29 The 2003 appropriation includes $857,000 for 2002 and 184.30 $7,713,000 for 2003. 184.31 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 184.32 grants according to Minnesota Statutes, sections 134.353 and 184.33 134.354, to multicounty, multitype library systems: 184.34 $903,000 ..... 2002 184.35 $903,000 ..... 2003 184.36 The 2002 appropriation includes $90,000 for 2001 and 185.1 $813,000 for 2002. 185.2 The 2003 appropriation includes $90,000 for 2002 and 185.3 $813,000 for 2003. 185.4 Subd. 4. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 185.5 aid to regional public library systems under Minnesota Statutes, 185.6 section 134.47: 185.7 $1,500,000 ..... 2002 185.8 $1,500,000 ..... 2003 185.9 Any balance in the first year does not cancel but is 185.10 available in the second year. 185.11 Subd. 5. [STATE AGENCY LIBRARIES.] For maintaining and 185.12 upgrading the on-line computer-based library catalogue system in 185.13 state agency libraries: 185.14 $123,000 ..... 2002 185.15 $123,000 ..... 2003 185.16 Any balance in the first year does not cancel but is 185.17 available in the second year. These appropriation amounts are 185.18 added to amounts included in the appropriation for the 185.19 department of children, families, and learning budget that are 185.20 for the same purpose. 185.21 Subd. 6. [LIBRARY FOR THE BLIND.] For the library for the 185.22 blind to replace a computer system, install a T1 185.23 telecommunications line, and fund the ongoing operational costs 185.24 of the computer system and T1 telecommunications line and two 185.25 permanent staff positions related to these functions: 185.26 $238,000 ..... 2002 185.27 $194,000 ..... 2003 185.28 Of these appropriations, the amount in fiscal year 2002 is 185.29 one-time funding only. 185.30 Sec. 5. [REPEALER.] 185.31 Minnesota Statutes 2000, section 125B.20, subdivision 3, is 185.32 repealed. 185.33 ARTICLE 10 185.34 STATE AGENCIES 185.35 Section 1. Minnesota Statutes 2000, section 122A.162, is 185.36 amended to read: 186.1 122A.162 [LICENSURE RULES.] 186.2 The commissioner may make rules relating to licensure of 186.3 school personnel not licensed by the board of teaching or the 186.4 board of education leadership. 186.5 Sec. 2. Minnesota Statutes 2000, section 122A.163, is 186.6 amended to read: 186.7 122A.163 [TEACHER RULE VARIANCES; COMMISSIONER.] 186.8 Notwithstanding any law to the contrary, and only upon 186.9 receiving the agreement of the state board of teaching or board 186.10 of education leadership, whichever has jurisdiction over the 186.11 teachers' licensure, the commissioner of children, families, and 186.12 learning may grant a variance to rules governing licensure of 186.13 teachers for those teachers licensed by the board of teaching or 186.14 board of education leadership, whichever has jurisdiction. The 186.15 commissioner may grant a variance, without the agreement of the 186.16 board of teaching or board of education leadership, to rules 186.17 adopted by the commissioner governing licensure of teachers for 186.18 those teachers the commissioner licenses. 186.19 Sec. 3. Minnesota Statutes 2000, section 122A.18, 186.20 subdivision 1, is amended to read: 186.21 Subdivision 1. [AUTHORITY TO LICENSE.] (a) The board of 186.22 teaching must license teachers, as defined in section 122A.15, 186.23 subdivision 1, except for supervisory personnel, as defined in 186.24 section 122A.15, subdivision 2. 186.25 (b) Thecommissioner of children, families, and learning186.26 board of education leadership must license supervisory personnel 186.27 as defined in section 122A.15, subdivision 2, except for 186.28 athletic coaches. 186.29 (c) Licenses under the jurisdiction of the board of 186.30 teaching, the board of education leadership, and the 186.31 commissioner of children, families, and learning must be issued 186.32 through the licensing section of the department. 186.33 Sec. 4. Minnesota Statutes 2000, section 122A.18, 186.34 subdivision 4, is amended to read: 186.35 Subd. 4. [EXPIRATION AND RENEWAL.] (a) Each license the 186.36 department of children, families, and learning issues through 187.1 its licensing section must bear the date of issue. Licenses 187.2 must expire and be renewed according to the respective rules the 187.3 board of teaching, the board of education leadership, or the 187.4 commissioner of children, families, and learning adopts. 187.5 Requirements for renewing a license must include showing 187.6 satisfactory evidence of successful teaching experience for at 187.7 least one school year during the period covered by the license 187.8 in grades or subjects for which the license is valid or 187.9 completing such additional preparation as the board of teaching 187.10 prescribes. Thecommissioner of children, families, and187.11learningboard of education leadership shall establish 187.12 requirements for renewing the licenses of supervisory personnel, 187.13 except athletic coaches. 187.14 (b) The board of teaching shall offer alternative 187.15 continuing relicensure options for teachers who are accepted 187.16 into and complete the national board for professional teaching 187.17 standards certification process, and offer additional continuing 187.18 relicensure options for teachers who earn national board for 187.19 professional teaching standards certification. Continuing 187.20 relicensure requirements for teachers who do not maintain 187.21 national board for professional teaching standards certification 187.22 are those the board prescribes. 187.23 Sec. 5. [122A.191] [DEFINITIONS.] 187.24 Subdivision 1. [SCOPE.] For the purposes of sections 187.25 122A.191 to 122A.193, the terms in this section have the 187.26 meanings given them, unless another meaning is clearly indicated. 187.27 Subd. 2. [BOARD.] "Board" means board of education 187.28 leadership. 187.29 Subd. 3. [SUPERVISORY PERSONNEL.] "Supervisory personnel" 187.30 means supervisory personnel as defined in section 122A.15, 187.31 subdivision 2, excluding athletic coaches. 187.32 Sec. 6. [122A.192] [BOARD OF EDUCATION LEADERSHIP.] 187.33 Subdivision 1. [MEMBERSHIP.] A board of education 187.34 leadership is established and must consist of nine members 187.35 appointed by the governor with the advice and consent of the 187.36 senate, including at least: 188.1 (1) one elementary school principal; 188.2 (2) one secondary school principal; 188.3 (3) one higher education faculty member in an educational 188.4 administration program approved by the board; 188.5 (4) one higher education administrator for an educational 188.6 administration program approved by the board; 188.7 (5) one school superintendent; 188.8 (6) one classroom teacher; 188.9 (7) one community education director or a special education 188.10 director; and 188.11 (8) two members of the public, one of whom must be a 188.12 present or former member of a school board. 188.13 In making appointments, the governor shall solicit 188.14 recommendations from groups representing persons in clauses (1) 188.15 to (8). 188.16 Subd. 2. [TERMS; COMPENSATION; REMOVAL; 188.17 ADMINISTRATION.] Membership terms, removal of members, and the 188.18 filling of membership vacancies are as provided in section 188.19 214.09. The terms of the initial board members must be 188.20 determined by lot as follows: 188.21 (1) three members must be appointed for terms that expire 188.22 August 1, 2002; 188.23 (2) three members must be appointed for terms that expire 188.24 August 1, 2003; and 188.25 (3) three members must be appointed for terms that expire 188.26 August 1, 2004. 188.27 Members shall not receive the daily payment under section 188.28 214.09, subdivision 3. The employer of a member shall not 188.29 reduce the member's compensation or benefits for the member's 188.30 absence from employment when engaging in the business of the 188.31 board. The provision of staff, administrative services, and 188.32 office space; the review and processing of complaints; the 188.33 setting of fees; the selection and duties of an executive 188.34 secretary to serve the board; and other provisions relating to 188.35 board operations are as provided in chapter 214. Fiscal year 188.36 and reporting requirements are as provided in sections 214.07 189.1 and 214.08. 189.2 Subd. 3. [VACANT POSITION.] The position of a member is 189.3 deemed vacant if the member leaves Minnesota or the member's 189.4 employment status changes to a category different from that for 189.5 which the member was appointed. 189.6 Subd. 4. [MEETINGS.] The board must meet regularly at the 189.7 times and places determined by the board. The board must 189.8 nominate and elect a chair and other officers from its 189.9 membership. 189.10 Subd. 5. [EXECUTIVE SECRETARY.] The board may have an 189.11 executive secretary who is in the unclassified civil service and 189.12 who is not a member of the board. 189.13 Subd. 6. [COMMISSIONER'S ASSISTANCE; BOARD MONEY.] The 189.14 commissioner shall provide all necessary materials and 189.15 assistance for the transaction of business of the board under 189.16 section 122A.18 and all money received by the board shall be 189.17 paid into the state treasury as provided by law. The expenses 189.18 of administering sections 122A.15, 122A.16, 122A.162 to 122A.18, 189.19 122A.191 to 122A.23, and 122A.27 that are incurred by the board 189.20 of education leadership must be paid for from appropriations 189.21 made to the board of education leadership. 189.22 Sec. 7. [122A.193] [DUTIES OF THE BOARD OF EDUCATION 189.23 LEADERSHIP.] 189.24 Subdivision 1. [LICENSING; RULEMAKING; PREPARATION 189.25 PROGRAMS.] The board must establish standards and procedures, 189.26 that are supported by current research and best practices, for 189.27 preparing supervisory personnel for licensure, licensing, and 189.28 the renewal of licenses of supervisory personnel. The board 189.29 must adopt administrative rules, in accordance with chapter 14, 189.30 for implementing the supervisory personnel licensure process, 189.31 including approving supervisory personnel preparation programs 189.32 and allowing public and private organizations to offer 189.33 alternative preparation programs leading to licensure of 189.34 supervisory personnel. 189.35 Subd. 2. [ACCOUNTABILITY.] The board must develop 189.36 accountability measures for programs preparing students for 190.1 licensure and report the progress of the programs to the 190.2 legislature by January 15 of every other year beginning with the 190.3 2003 legislature. 190.4 Subd. 3. [REGISTER OF PERSONS LICENSED.] The executive 190.5 secretary of the board shall keep a record of the proceedings of 190.6 the board and a register of all persons licensed under this 190.7 section. The register must show the name, address, license 190.8 number, and the renewal of the license. The board must, on July 190.9 1 of each year or as soon thereafter as possible, compile a list 190.10 of licensed supervisory personnel and send a copy of the list to 190.11 the board. A copy of the register must be available during 190.12 business hours at the office of the board to any interested 190.13 person. 190.14 Subd. 4. [RULES FOR CONTINUING EDUCATION REQUIREMENTS.] 190.15 The board shall adopt rules establishing continuing education 190.16 requirements which promote continuous improvement and 190.17 acquisition of new and relevant skills by school administrators. 190.18 Subd. 5. [CODE OF ETHICS.] The board shall adopt by rule a 190.19 code of ethics covering standards of professional practice, 190.20 including ethical conduct, professional performance, and methods 190.21 of enforcement, and advise school administrators in interpreting 190.22 the code of ethics. 190.23 Sec. 8. Minnesota Statutes 2000, section 122A.21, is 190.24 amended to read: 190.25 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 190.26 (a) Each application for the issuance, renewal, or 190.27 extension of a license to teach and each application for the 190.28 issuance, renewal, or extension of a license as supervisory 190.29 personnel must be accompanied by a processing fee in an amount 190.30 set by the board of teaching or the board of education 190.31 leadership, whichever has jurisdiction over the license, by 190.32 rule. The processing fee for a teacher's license and for the 190.33 licenses of supervisory personnel must be paid to the executive 190.34 secretary of the board of teaching or the board of education 190.35 leadership, whichever has jurisdiction over the license. The 190.36 executivesecretarysecretaries of the board of teaching and the 191.1 board of education leadership shall deposit the fees with the 191.2 state treasurer, as provided by law, and report each month to 191.3 the commissioner of finance the amount of fees collected. The 191.4 fees as set by the board of teaching and the board of education 191.5 leadership are nonrefundable for applicants not qualifying for a 191.6 license. However, a fee must be refunded by the state treasurer 191.7 in any case in which the applicant already holds a valid 191.8 unexpired license. The board of teaching and the board of 191.9 education leadership may waive or reduce fees for applicants who 191.10 apply at the same time for more than one license. 191.11 (b) The processing fee for administrators' licenses must be 191.12 at least $75, beginning July 1, 2001. For fiscal year 2003 and 191.13 later, the board of education leadership must set a fee, by 191.14 rule, in an amount that generates enough revenue to cover all 191.15 board costs and expenses. 191.16 Sec. 9. Minnesota Statutes 2000, section 214.01, 191.17 subdivision 3, is amended to read: 191.18 Subd. 3. [NON-HEALTH-RELATED LICENSING BOARD.] 191.19 "Non-health-related licensing board" means the board of teaching 191.20 established pursuant to section 122A.07, the board of education 191.21 leadership established under section 122A.192, the board of 191.22 barber examiners established pursuant to section 154.22, the 191.23 board of assessors established pursuant to section 270.41, the 191.24 board of architecture, engineering, land surveying, landscape 191.25 architecture, geoscience, and interior design established 191.26 pursuant to section 326.04, the board of accountancy established 191.27 pursuant to section 326.17, the board of electricity established 191.28 pursuant to section 326.241, the private detective and 191.29 protective agent licensing board established pursuant to section 191.30 326.33, the board of boxing established pursuant to section 191.31 341.01, and the peace officer standards and training board 191.32 established pursuant to section 626.841. 191.33 Sec. 10. Minnesota Statutes 2000, section 214.04, 191.34 subdivision 1, is amended to read: 191.35 Subdivision 1. [SERVICES PROVIDED.] The commissioner of 191.36 administration with respect to the board of electricity, the 192.1 commissioner of children, families, and learning with respect to 192.2 the board of teaching and the board of education leadership, the 192.3 commissioner of public safety with respect to the board of 192.4 private detective and protective agent services, and the board 192.5 of peace officer standards and training, and the commissioner of 192.6 revenue with respect to the board of assessors, shall provide 192.7 suitable offices and other space, joint conference and hearing 192.8 facilities, examination rooms, and the following administrative 192.9 support services: purchasing service, accounting service, 192.10 advisory personnel services, consulting services relating to 192.11 evaluation procedures and techniques, data processing, 192.12 duplicating, mailing services, automated printing of license 192.13 renewals, and such other similar services of a housekeeping 192.14 nature as are generally available to other agencies of state 192.15 government. Investigative services shall be provided the boards 192.16 by employees of the office of attorney general. The 192.17 commissioner of health with respect to the health-related 192.18 licensing boards shall provide mailing and office supply 192.19 services and may provide other facilities and services listed in 192.20 this subdivision at a central location upon request of the 192.21 health-related licensing boards. The commissioner of commerce 192.22 with respect to the remaining non-health-related licensing 192.23 boards shall provide the above facilities and services at a 192.24 central location for the remaining non-health-related licensing 192.25 boards. The legal and investigative services for the boards 192.26 shall be provided by employees of the attorney general assigned 192.27 to the departments servicing the boards. Notwithstanding the 192.28 foregoing, the attorney general shall not be precluded by this 192.29 section from assigning other attorneys to service a board if 192.30 necessary in order to insure competent and consistent legal 192.31 representation. Persons providing legal and investigative 192.32 services shall to the extent practicable provide the services on 192.33 a regular basis to the same board or boards. 192.34 Sec. 11. Minnesota Statutes 2000, section 214.04, 192.35 subdivision 3, is amended to read: 192.36 Subd. 3. [OFFICERS; STAFF.] The executive director of each 193.1 health-related board and the executive secretary of each 193.2 non-health-related board shall be the chief administrative 193.3 officer for the board but shall not be a member of the board. 193.4 The executive director or executive secretary shall maintain the 193.5 records of the board, account for all fees received by it, 193.6 supervise and direct employees servicing the board, and perform 193.7 other services as directed by the board. The executive 193.8 directors, executive secretaries, and other employees of the 193.9 following boards shall be hired by the board, and the executive 193.10 directors or executive secretaries shall be in the unclassified 193.11 civil service, except as provided in this subdivision: 193.12 (1) dentistry; 193.13 (2) medical practice; 193.14 (3) nursing; 193.15 (4) pharmacy; 193.16 (5) accountancy; 193.17 (6) architecture, engineering, land surveying, landscape 193.18 architecture, geoscience, and interior design; 193.19 (7) barber examiners; 193.20 (8) cosmetology; 193.21 (9) electricity; 193.22 (10) teaching; 193.23 (11) peace officer standards and training; 193.24 (12) social work; 193.25 (13) marriage and family therapy;and193.26 (14) dietetics and nutrition practice; and 193.27 (15) education leadership. 193.28 The executive directors or executive secretaries serving 193.29 the boards are hired by those boards and are in the unclassified 193.30 civil service, except for part-time executive directors or 193.31 executive secretaries, who are not required to be in the 193.32 unclassified service. Boards not requiring full-time executive 193.33 directors or executive secretaries may employ them on a 193.34 part-time basis. To the extent practicable, the sharing of 193.35 part-time executive directors or executive secretaries by boards 193.36 being serviced by the same department is encouraged. Persons 194.1 providing services to those boards not listed in this 194.2 subdivision, except executive directors or executive secretaries 194.3 of the boards and employees of the attorney general, are 194.4 classified civil service employees of the department servicing 194.5 the board. To the extent practicable, the commissioner shall 194.6 ensure that staff services are shared by the boards being 194.7 serviced by the department. If necessary, a board may hire 194.8 part-time, temporary employees to administer and grade 194.9 examinations. 194.10 Sec. 12. Minnesota Statutes 2000, section 214.12, 194.11 subdivision 1, is amended to read: 194.12 Subdivision 1. [REQUIREMENTS.] The health-related and 194.13 non-health-related licensing boards may promulgate by rule 194.14 requirements for renewal of licenses designed to promote the 194.15 continuing professional competence of licensees. These 194.16 requirements of continuing professional education or training 194.17 shall be designed solely to improve professional skills and 194.18 shall not exceed an average attendance requirement of 50 clock 194.19 hours per year. All requirements promulgated by the boards 194.20 shall be effective commencing January 1, 1977, or at a later 194.21 date as the board may determine. The 50 clock hour limitation 194.22 shall not apply to the board of teaching and board of education 194.23 leadership. 194.24 Sec. 13. [TRANSFER OF POWERS AND DUTIES; RULES.] 194.25 Except as otherwise provided in this section and in 194.26 Minnesota Statutes, section 122A.18, the powers, duties, and 194.27 responsibilities of the commissioner of children, families, and 194.28 learning with respect to supervisory personnel as defined in 194.29 Minnesota Statutes, section 122A.15, subdivision 2, except for 194.30 athletic coaches, are transferred to the board of education 194.31 leadership. 194.32 Sec. 14. [DIVISION OF GIFTED AND TALENTED SERVICES.] 194.33 The commissioner of children, families, and learning shall 194.34 establish a division of gifted and talented services within the 194.35 department of children, families, and learning beginning in 194.36 fiscal year 2002. Any head or staff of this division must have 195.1 extensive training and experience in gifted education. The 195.2 division shall: 195.3 (1) provide general oversight to gifted and talented 195.4 programs; 195.5 (2) provide support and start-up assistance for districts 195.6 that do not have gifted and talented programs; 195.7 (3) develop a set of criteria for best practice gifted and 195.8 talented instruction and assist districts in providing 195.9 professional development in gifted and talented instruction; 195.10 (4) assist districts in developing processes for 195.11 identifying and assessing students for placement in appropriate 195.12 gifted and talented services; 195.13 (5) assist districts in developing gifted and talented 195.14 services that are integrated with the state's graduation 195.15 standards; 195.16 (6) by July 1, 2002, develop a state accountability system 195.17 with district outcomes for gifted and talented programs; and 195.18 (7) by July 1, 2002, develop a uniform system of reporting 195.19 program expenses and results to the state and to the local 195.20 school board. 195.21 Sec. 15. [CONTRACTS AND GRANTS UNIT; INTERNAL AUDITS 195.22 OFFICE.] 195.23 (a) The commissioner of children, families, and learning 195.24 shall establish a contracts and grants unit within the 195.25 department to manage the contracting process for the 195.26 department. The unit must be separate from individual program 195.27 functions. The duties of the unit include: 195.28 (1) supporting the fiscal management of contracts and 195.29 grants; 195.30 (2) technical assistance to program areas in setting up and 195.31 monitoring grants; 195.32 (3) legal review of contracts for compliance with state law 195.33 and requirements of private grants; 195.34 (4) training and advising program areas on how the 195.35 contracting process should be handled; 195.36 (5) reviewing requests for proposals for compliance with 196.1 legal requirements; 196.2 (6) drafting and maintaining a contracts manual for use by 196.3 program areas; and 196.4 (7) approving all contracts entered into by program areas. 196.5 (b) The commissioner of children, families, and learning 196.6 shall establish an internal audits office. Any significant 196.7 audit violations must be reported to the commissioner in 196.8 writing. The office must report at least annually to the 196.9 commissioner on contract policies, procedures, and controls. 196.10 Duties of the internal audits office include: 196.11 (1) serving as an independent appraisal function to examine 196.12 and evaluate the department's activities; 196.13 (2) measuring and evaluating the effectiveness of 196.14 accounting, financial and operating policies, procedures, and 196.15 controls on a department basis; and 196.16 (3) examining contracts and grants for compliance with 196.17 federal and state law. 196.18 Sec. 16. [RETURN OF FUNDS TO PEW CHARITABLE TRUSTS.] 196.19 The commissioner of children, families, and learning must 196.20 return $113,423 of unspent funds received from the Pew 196.21 Charitable Trusts through the Trusts' agreement with the Amherst 196.22 H. Wilder Foundation that provided grants to the state of 196.23 Minnesota and certain local units of government in the state for 196.24 the period from June 9, 1994, through June 30, 1997, and the 196.25 subsequent agreement between Pew Charitable Trusts and the state 196.26 to extend the original grant period through June 30, 1998. The 196.27 commissioner of finance shall determine the time and manner in 196.28 which the department of children, families, and learning shall 196.29 return the $113,423 of unspent funds, plus interest as set by 196.30 the commissioner of finance, to the Pew Charitable Trusts. The 196.31 department of children, families, and learning must pay this 196.32 money from its existing budget. Money may not be appropriated 196.33 specifically for the purposes of this section. 196.34 Sec. 17. [LEGISLATIVE TASK FORCE ON EQUITABLE EDUCATION 196.35 FUNDING.] 196.36 (a) The legislative task force on equitable education 197.1 funding of public schools consists of 12 members. The speaker 197.2 of the house of representatives, using geographical balance as a 197.3 consideration, shall appoint four members from the house, two of 197.4 whom must be from the minority caucus. The subcommittee on 197.5 committees of the senate committee on rules and administration, 197.6 using geographical balance as a consideration, shall appoint 197.7 four members from the senate, two of whom must be from the 197.8 minority caucus. The task force membership shall also consist 197.9 of the following persons or their designees: 197.10 (1) the commissioner of children, families, and learning; 197.11 (2) the executive director of the Minnesota school boards 197.12 association; 197.13 (3) the president of Education Minnesota; and 197.14 (4) the executive director of the Minnesota association of 197.15 school administrators. 197.16 (b) The task force shall study and make recommendations to 197.17 the legislature by January 15, 2002, on any changes in statutes 197.18 and rules needed to improve equity and quality in the 197.19 kindergarten through grade 12 education funding system. The 197.20 task force shall consider, at least, how to resolve funding 197.21 disparities that occur from student to student based on formulas 197.22 created by state law. Additionally, the task force shall 197.23 examine the role of funding decisions made by voters within a 197.24 school district and their effect on equity. The goals of the 197.25 task force shall include consolidating funding formulas, 197.26 improving the general public's understanding of the education 197.27 finance system, creating more equitable education funding on a 197.28 per student basis, and remaining within the current overall 197.29 levels of aid and levy. 197.30 (c) The task force shall seek the input of various 197.31 kindergarten through grade 12 education stakeholders as well as 197.32 the general public in making its recommendations. The 197.33 department of children, families, and learning shall provide 197.34 administrative support to the task force and assist the task 197.35 force and the staff of the legislature with task force duties. 197.36 Upon submission of its recommendations, the task force expires. 198.1 (d) The task force may employ staff, contract for 198.2 consulting services, and may reimburse the expenses of persons 198.3 requested to assist it in its duties other than state 198.4 employees. The director of the legislative coordinating 198.5 commission shall assist the task force in administrative matters. 198.6 Sec. 18. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 198.7 FAMILIES, AND LEARNING.] 198.8 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 198.9 LEARNING.] The sums indicated in this section are appropriated 198.10 from the general fund unless otherwise indicated to the 198.11 department of children, families, and learning for the fiscal 198.12 years designated. 198.13 Subd. 2. [TEACHING AND LEARNING PROGRAM.] For the teaching 198.14 and learning program: 198.15 $8,092,000 ..... 2002 198.16 $8,206,000 ..... 2003 198.17 Of this amount, $20,000 each year is for the foreign 198.18 teacher exchange program; and $41,000 each year is for the 198.19 Minnesota academy of science. 198.20 Any balance in the first year does not cancel but is 198.21 available in the second year. 198.22 Subd. 3. [AFFILIATED ORGANIZATIONS.] (a) For affiliated 198.23 organizations: 198.24 $1,674,000 ..... 2002 198.25 $1,642,000 ..... 2003 198.26 Any balance in the first year does not cancel but is 198.27 available in the second year. 198.28 (b) Of this amount, $260,000 each year is for the Minnesota 198.29 Children's Museum; $50,000 in fiscal year 2002 is for the Duluth 198.30 Children's Museum; $625,000 each year is for the Minnesota 198.31 Foundation for student organizations; and $684,000 in fiscal 198.32 year 2002 and $690,000 in fiscal year 2003 is for the board of 198.33 teaching. 198.34 (c) The expenditures of federal grants and aids as shown in 198.35 the biennial budget document and its supplement are approved and 198.36 appropriated and shall be spent as indicated. 199.1 Subd. 4. [MANAGEMENT SERVICES PROGRAM.] For the management 199.2 services program: 199.3 $14,792,000 ..... 2002 199.4 $15,028,000 ..... 2003 199.5 Any balance in the first year does not cancel but is 199.6 available in the second year. 199.7 Subd. 5. [COMMUNITY SERVICES PROGRAM.] For the community 199.8 services program: 199.9 $3,008,000 ..... 2002 199.10 $3,078,000 ..... 2003 199.11 Any balance in the first year does not cancel but is 199.12 available the second year. 199.13 Subd. 6. [POLICY DEVELOPMENT.] For the policy development 199.14 program: 199.15 $4,103,000 ..... 2002 199.16 $4,183,000 ..... 2003 199.17 Of this amount, $1,000,000 each year is to fund the 199.18 automation and systems upgrades to improve the efficiency and 199.19 service of the teacher licensure system. This amount shall not 199.20 be included in the agency's base budget. 199.21 Any balance in the first year does not cancel but is 199.22 available in the second year. 199.23 Subd. 7. [LEGISLATIVE TASK FORCE.] For expenses approved 199.24 by the legislative task force under section 17: 199.25 $20,000 ..... 2002 199.26 Sec. 19. [APPROPRIATIONS; BOARD OF EDUCATION LEADERSHIP.] 199.27 The sums indicated in this section are appropriated from 199.28 the general fund to the board of education leadership for the 199.29 fiscal years designated: 199.30 $165,000 ..... 2002 199.31 $165,000 ..... 2003 199.32 Any balance in the first year does not cancel but is 199.33 available in the second year. 199.34 Sec. 20. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 199.35 EDUCATION.] 199.36 The sums indicated in this section are appropriated from 200.1 the general fund to the Perpich center for arts education for 200.2 the fiscal years designated: 200.3 $7,781,000 ..... 2002 200.4 $7,916,000 ..... 2003 200.5 Of each year's appropriation, $175,000 is to extend the 200.6 partnership network to up to five new partnership sites and 200.7 $75,000 is for developing whole-school, arts-based teaching and 200.8 learning curriculum at new sites. 200.9 Any balance in the first year does not cancel but is 200.10 available in the second year. 200.11 Sec. 21. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 200.12 The sums indicated in this section are appropriated from 200.13 the general fund to the Faribault academies for the deaf and the 200.14 blind for the fiscal years designated: 200.15 $10,761,000 ..... 2002 200.16 $10,966,000 ..... 2003 200.17 Any balance in the first year does not cancel but is 200.18 available in the second year. 200.19 Sec. 22. [INSTRUCTION TO REVISOR.] 200.20 In the next and subsequent editions of Minnesota Statutes, 200.21 the revisor of statutes shall substitute the term "board of 200.22 education leadership" for the term "commissioner" or 200.23 "commissioner of children, families, and learning" in the 200.24 following sections of Minnesota Statutes: 122A.18, subdivisions 200.25 3, 6, and 8; 122A.20, subdivision 1; 122A.23, subdivision 1; 200.26 122A.27, subdivisions 1, 4, and 5; 123A.21; 123B.03, subdivision 200.27 1; and 125A.67, subdivision 2. 200.28 ARTICLE 11 200.29 TECHNICAL AMENDMENTS 200.30 Section 1. Minnesota Statutes 2000, section 122A.26, 200.31 subdivision 3, is amended to read: 200.32 Subd. 3. [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 200.33 subdivision 2, a person who possesses a bachelor's or master's 200.34 degree in English as a second language, applied linguistics, or 200.35 bilingual education, or who possesses a related degree as 200.36 approved by the commissioner, shall be permitted to teach 201.1 English as a second language in an adult basic education program 201.2 that receives funding under section124D.53124D.531. 201.3 Sec. 2. Minnesota Statutes 2000, section 124D.11, 201.4 subdivision 5, is amended to read: 201.5 Subd. 5. [SPECIAL EDUCATION AID.] Except as provided in 201.6 subdivision 2, special education aid must be paid to a charter 201.7 school according to section 125A.76, as though it were a school 201.8 district. The charter school may charge tuition to the district 201.9 of residence as provided in section 125A.11.The charter school201.10shall allocate its special education levy equalization revenue201.11to the resident districts of the pupils attending the charter201.12school. The districts of residence shall levy as though they201.13were participating in a cooperative, as provided in section201.14125A.77, subdivision 3.201.15 Sec. 3. Minnesota Statutes 2000, section 124D.454, 201.16 subdivision 11, is amended to read: 201.17 Subd. 11. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 201.18 INTERMEDIATE DISTRICTS.] For purposes of this sectionand201.19section 125A.77, a cooperative center or an intermediate 201.20 district must allocate its approved expenditures for transition 201.21 programs for children with a disability among participating 201.22 school districts. Aid for transition programs for children with 201.23 a disability for services provided by a cooperative or 201.24 intermediate district shall be paid to the participating 201.25 districts. 201.26 Sec. 4. Minnesota Statutes 2000, section 125A.17, is 201.27 amended to read: 201.28 125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY 201.29 PLACED IN A FOSTER FACILITY.] 201.30 The legal residence of a child with a disability placed in 201.31 a foster facility for care and treatment is the district in 201.32 which the child resides when: 201.33 (1) parental rights have been terminated by court order; 201.34 (2) the parent or guardian is not living within the state; 201.35 (3) no other district residence can be established; or 201.36 (4) the parent or guardian having legal custody of the 202.1 child is an inmate of a Minnesota correctional facility or is a 202.2 resident of a halfway house under the supervision of the 202.3 commissioner of corrections;202.4is the district in which the child resides. The school board of 202.5 the district of residence must provide the same educational 202.6 program for the child as it provides for all resident children 202.7 with a disability in the district. 202.8 Sec. 5. Minnesota Statutes 2000, section 126C.17, 202.9 subdivision 6, is amended to read: 202.10 Subd. 6. [REFERENDUM EQUALIZATION LEVY.](a)A district's 202.11 referendum equalization levy for a referendum levied against the 202.12 referendum market value of all taxable property as defined in 202.13 section 126C.01, subdivision 3, equals the district's referendum 202.14 equalization revenue times the lesser of one or the ratio of the 202.15 district's referendum market value per resident marginal cost 202.16 pupil unit to $476,000. 202.17(b) A district's referendum equalization levy for a202.18referendum levied against the net tax capacity of all taxable202.19property equals the district's referendum equalization revenue202.20times the lesser of one or the ratio of the district's adjusted202.21net tax capacity per resident marginal cost pupil unit to $8,404.202.22 Sec. 6. Minnesota Statutes 2000, section 127A.41, 202.23 subdivision 8, is amended to read: 202.24 Subd. 8. [APPROPRIATION TRANSFERS.] If a direct 202.25 appropriation from the general fund to the department for any 202.26 education aid or grant authorized in this chapter and chapters 202.27 122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 202.28 under sections 124D.135, 124D.16, 124D.20, 124D.21, 124D.22, 202.29 124D.52,124D.53124D.531, 124D.54, 124D.55, and 124D.56, 202.30 exceeds the amount required, the commissioner may transfer the 202.31 excess to any education aid or grant appropriation that is 202.32 insufficient. However, section 126C.20 applies to a deficiency 202.33 in the direct appropriation for general education aid. Excess 202.34 appropriations must be allocated proportionately among aids or 202.35 grants that have insufficient appropriations. The commissioner 202.36 of finance shall make the necessary transfers among 203.1 appropriations according to the determinations of the 203.2 commissioner. If the amount of the direct appropriation for the 203.3 aid or grant plus the amount transferred according to this 203.4 subdivision is insufficient, the commissioner shall prorate the 203.5 available amount among eligible districts. The state is not 203.6 obligated for any additional amounts. 203.7 Sec. 7. Minnesota Statutes 2000, section 127A.41, 203.8 subdivision 9, is amended to read: 203.9 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 203.10 PROGRAMS.] If a direct appropriation from the general fund to 203.11 the department of children, families, and learning for an 203.12 education aid or grant authorized under section 124D.135, 203.13 124D.16, 124D.20, 124D.21, 124D.22, 124D.52,124D.53124D.531, 203.14 124D.54, 124D.55, or 124D.56 exceeds the amount required, the 203.15 commissioner of children, families, and learning may transfer 203.16 the excess to any education aid or grant appropriation that is 203.17 insufficiently funded under these sections. Excess 203.18 appropriations shall be allocated proportionately among aids or 203.19 grants that have insufficient appropriations. The commissioner 203.20 of finance shall make the necessary transfers among 203.21 appropriations according to the determinations of the 203.22 commissioner of children, families, and learning. If the amount 203.23 of the direct appropriation for the aid or grant plus the amount 203.24 transferred according to this subdivision is insufficient, the 203.25 commissioner shall prorate the available amount among eligible 203.26 districts. The state is not obligated for any additional 203.27 amounts. 203.28 Sec. 8. Laws 2000, chapter 489, article 7, section 15, 203.29 subdivision 3, is amended to read: 203.30 Subd. 3. [COOPERATIVE SECONDARY FACILITY; PLANNING AND 203.31 EXPENSES.] For a grant and administrative expenses to facilitate 203.32 planning for a cooperative secondary facility under a joint 203.33 powers agreement for school district Nos. 411, Balaton, 402, 203.34 Hendricks, 403, Ivanhoe, 404, Lake Benton, 418, Russell, 584, 203.35 Ruthton, and 409, Tyler: 203.36 $100,000 ..... 2001 204.1 This is a one-time appropriation. 204.2 Sec. 9. [REPEALER.] 204.3 Laws 2000, chapter 254, section 30; and Laws 2000, chapter 204.4 489, article 1, section 18, are repealed.