2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; prekindergarten through grade 1.3 12; higher education; early childhood and family 1.4 education; providing for general education, special 1.5 programs, employment and other transitions, facilities 1.6 and technology, education excellence and other policy, 1.7 nutrition and other programs, libraries, and the 1.8 department of children, families, and learning; making 1.9 technical, conforming, and clarifying amendments; 1.10 appropriating money; amending Minnesota Statutes 1998, 1.11 sections 119B.03, by adding a subdivision; 120A.22, 1.12 subdivision 3; 120B.13, subdivision 4; 121A.22, 1.13 subdivisions 2 and 3; 121A.61, subdivision 3; 122A.25, 1.14 subdivision 3, and by adding subdivisions; 122A.31, 1.15 subdivision 4; 122A.68, subdivision 4; 123A.485, 1.16 subdivision 4; 123B.02, by adding a subdivision; 1.17 123B.04, subdivision 2; 123B.143, subdivision 1; 1.18 123B.51, subdivision 6; 123B.52, by adding a 1.19 subdivision; 123B.53, as amended; 123B.57, subdivision 1.20 1; 123B.58, subdivisions 3 and 4; 123B.59, as amended; 1.21 123B.63, subdivisions 3 and 4; 123B.71, subdivision 1.22 10; 123B.72, subdivision 3; 123B.75, subdivision 5; 1.23 123B.77, subdivision 3; 123B.79, subdivision 7; 1.24 123B.80, by adding a subdivision; 123B.85, subdivision 1.25 1; 123B.86, subdivision 1; 123B.88, subdivision 3; 1.26 123B.90, subdivision 1; 124D.03, subdivision 1; 1.27 124D.081, subdivision 6; 124D.10, subdivisions 9 and 1.28 20; 124D.111, subdivision 1; 124D.128, subdivision 4; 1.29 124D.16, subdivision 1; 124D.44; 124D.454, 1.30 subdivisions 2, 4, 6, 7, and 10; 124D.52, subdivisions 1.31 1, 2, 3, and by adding a subdivision; 124D.86, 1.32 subdivision 6, and by adding subdivisions; 124D.88, by 1.33 adding a subdivision; 124D.892, subdivision 3; 1.34 125A.76, subdivision 7; 126C.10, by adding 1.35 subdivisions; 126C.12, subdivision 2; 126C.40, 1.36 subdivisions 1, 2, and 3; 126C.69, subdivision 15; 1.37 127A.05, subdivision 4; 127A.41, subdivisions 8 and 9; 1.38 128D.11, subdivision 3; 136A.125, by adding a 1.39 subdivision; 169.447, by adding a subdivision; 1.40 169.448, subdivision 3; 171.06, subdivision 2; 1.41 171.321; 245A.14, subdivision 4, and by adding a 1.42 subdivision; 354.05, subdivision 2; 354A.011, 1.43 subdivision 27; and 471.15; Minnesota Statutes 1999 1.44 Supplement, sections 119B.011, subdivisions 12, 15, 1.45 and 20; 119B.03, subdivision 4; 119B.05, subdivision 1.46 1; 120B.30, subdivision 1; 122A.18, subdivision 3; 2.1 122A.23; 122A.31, subdivisions 1 and 2; 122A.61, 2.2 subdivision 1; 123A.05, subdivision 2; 123B.54; 2.3 123B.83, subdivision 4; 123B.90, subdivision 2; 2.4 123B.91, subdivision 1; 124D.10, subdivisions 3, 4, 8, 2.5 11, 15, and 23; 124D.11, subdivisions 1, 4, and 6; 2.6 124D.128, subdivision 2; 124D.221, subdivision 2; 2.7 124D.53, subdivision 3; 124D.68, subdivision 9; 2.8 124D.84, subdivision 1; 124D.86, subdivisions 1 and 3; 2.9 124D.87; 124D.88, subdivision 3; 125A.023, 2.10 subdivisions 3 and 5; 125A.027, subdivision 3; 2.11 125A.08; 125A.51; 125A.76, subdivisions 1 and 2; 2.12 125A.79, subdivisions 1, 2, 5, and 8; 125A.80; 2.13 125B.21, subdivision 3; 126C.05, subdivisions 3, 5, 2.14 and 6; 126C.10, subdivisions 2, 5, 13, 14, 24, 25, and 2.15 26; 126C.17, subdivision 9; 126C.40, subdivision 6; 2.16 126C.44; 127A.05, subdivision 6; 127A.42, subdivision 2.17 3; 127A.45, subdivision 12a; 127A.51; 148.235, by 2.18 adding a subdivision; and 181A.04, subdivision 6; Laws 2.19 1992, chapter 499, article 7, sections 31, as amended; 2.20 and 32; Laws 1997, chapter 157, section 71, as 2.21 amended; Laws 1997, First Special Session chapter 4, 2.22 article 8, section 4, as amended; Laws 1998, chapter 2.23 404, section 5, subdivision 11, as amended; Laws 1998, 2.24 First Special Session chapter 1, article 1, sections 2.25 10 and 11; Laws 1999, chapters 205, articles 1, 2.26 sections 65 and 71, subdivisions 3, 7, and 9; 2, 2.27 section 4, subdivision 3; 4, section 12, subdivisions 2.28 5, 6, and 7; 214, article 1, section 4, subdivision 2; 2.29 241, articles 1, sections 68, subdivisions 2, 4, and 2.30 5; and 69; 2, section 60, subdivisions 7, 9, 12, 13, 2.31 14, 17, and 19; 3, section 3, subdivisions 2 and 4; 4, 2.32 section 27, subdivisions 2, 3, 4, and 5; 5, section 2.33 18, subdivisions 5 and 6; 6, section 14, subdivisions 2.34 2, 3, 4, and 5; 7, section 2, subdivisions 2 and 5; 8, 2.35 section 4, subdivisions 4 and 5; 9, section 49; and 2.36 10, section 6; proposing coding for new law in 2.37 Minnesota Statutes, chapters 121A; 123B; 124D; 125B; 2.38 and 126C; repealing Minnesota Statutes 1998, sections 2.39 120A.41; and 124D.53, subdivisions 1, 2, and 5; 2.40 Minnesota Statutes 1999 Supplement, sections 2.41 124D.1155, subdivision 5; and 124D.53, subdivision 4; 2.42 Laws 1998, First Special Session chapter 1, article 1, 2.43 section 10, subdivision 2; Laws 1999, chapters 241, 2.44 article 9, sections 35 and 36; and 245, article 4, 2.45 section 3; Minnesota Rules, parts 3535.9920; 2.46 4830.9005; 4830.9010; 4830.9015; 4830.9020; and 2.47 4830.9030. 2.48 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.49 ARTICLE 1 2.50 GENERAL EDUCATION 2.51 Section 1. Minnesota Statutes 1999 Supplement, section 2.52 122A.61, subdivision 1, is amended to read: 2.53 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 2.54 required to reserve an amount equal to at least
onetwo percent 2.55 of the basic revenue under section 126C.10, subdivision 2, for 2.56 in-service education for programs under section 120B.22, 2.57 subdivision 2, for staff development plans, including plans for 2.58 challenging instructional activities and experiences under 2.59 section 122A.60, and for curriculum development and programs, 3.1 other in-service education, teachers' workshops, teacher 3.2 conferences, the cost of substitute teachers staff development 3.3 purposes, and other related costs for staff development 3.4 efforts. A district may annually waive the requirement to 3.5 reserve their basic revenue under this section if a majority 3.6 vote of the licensed teachers in the district and a majority 3.7 vote of the school board agree to a resolution to waive the 3.8 requirement. A district in statutory operating debt is exempt 3.9 from reserving basic revenue according to this section. 3.10 Districts may expend an additional amount of unreserved revenue 3.11 for staff development based on their needs. With the exception 3.12 of amounts reserved for staff development from revenues 3.13 allocated directly to school sites, the board must initially 3.14 allocate 50 percent of the reserved revenue to each school site 3.15 in the district on a per teacher basis, which must be retained 3.16 by the school site until used. The board may retain 25 percent 3.17 to be used for district wide staff development efforts. The 3.18 remaining 25 percent of the revenue must be used to make grants 3.19 to school sites for best practices methods. A grant may be used 3.20 for any purpose authorized under section 120B.22, subdivision 2, 3.21 122A.60, or for the costs of curriculum development and 3.22 programs, other in-service education, teachers' workshops, 3.23 teacher conferences, substitute teachers for staff development 3.24 purposes, and other staff development efforts, and determined by 3.25 the site professional development team. The site professional 3.26 development team must demonstrate to the school board the extent 3.27 to which staff at the site have met the outcomes of the 3.28 program. The board may withhold a portion of initial allocation 3.29 of revenue if the staff development outcomes are not being met. 3.30 Sec. 2. Minnesota Statutes 1998, section 122A.68, 3.31 subdivision 4, is amended to read: 3.32 Subd. 4. [EMPLOYMENT CONDITIONS.] A school district must 3.33 pay a teaching resident a salary equal to 7590 percent of the 3.34 salary of a first-year teacher with a bachelor's degree in the 3.35 district. The resident shall be a member of the local 3.36 bargaining unit and shall be covered under the terms of the 4.1 contract, except for salary and benefits, unless otherwise 4.2 provided in this subdivision. The school district must provide 4.3 health insurance coverage for the resident if the district 4.4 provides it for teachers, and may provide other benefits upon 4.5 negotiated agreement. 4.6 Sec. 3. Minnesota Statutes 1998, section 123A.485, 4.7 subdivision 4, is amended to read: 4.8 Subd. 4. [NEW DISTRICTS.] If a district consolidates with 4.9 another district that has received aid under section 123A.39, 4.10 subdivision 3, or 123A.485 for a combination or consolidation 4.11 taking effect within six years of the effective date of the new 4.12 consolidation, only the pupil units in the district or districts 4.13 not previously reorganized must be counted for aid purposes 4.14 under subdivision 2. If two or more districts consolidate and 4.15 all districts received aid under subdivision 2 for a 4.16 consolidation taking effect within six years of the effective 4.17 date of the new consolidation, only one quarter of the pupil 4.18 units in the newly created district must be used to determine 4.19 aid under subdivision 2. 4.20 Sec. 4. Minnesota Statutes 1998, section 123B.75, 4.21 subdivision 5, is amended to read: 4.22 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 4.23 settlement revenue" means the current, delinquent, and 4.24 manufactured home property tax receipts collected by the county 4.25 and distributed to the school district. 4.26 (b) In June of each year, the school district must 4.27 recognize as revenue, in the fund for which the levy was made, 4.28 the lesser of: 4.29 (1) the May, June, and July school district tax settlement 4.30 revenue received in that calendar year; or 4.31 (2) the sum of: 4.32 (i) 31 percent of the referendum levy certified in the 4.33 prior calendar year according to section 126C.17, subdivision 9; 4.34 plus 4.35 (ii) the entire amount of the levy certified in the prior 4.36 calendar year according to sections 124D.86, subdivision 4, for 5.1 school districts receiving revenue under section 124D.86, 5.2 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 5.3 1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 5.4 2; and 126C.48, subdivision 6. 5.5 Sec. 5. Minnesota Statutes 1999 Supplement, section 5.6 124D.11, subdivision 1, is amended to read: 5.7 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 5.8 education revenue must be paid to a charter school as though it 5.9 were a district. The general education revenue for each 5.10 adjusted marginal cost pupil unit is the state average general 5.11 education revenue per pupil unit, plus the referendum 5.12 equalization aid allowance in the pupil's district of residence, 5.13 minus an amount equal to the product of the formula allowance 5.14 according to section 126C.10, subdivision 2, times .0485, 5.15 calculated without basic skills revenue, transportation sparsity 5.16 revenue, and the transportation portion of the transition 5.17 revenue adjustment, plus basic skills revenue as though the 5.18 school were a school district. 5.19 (b) Notwithstanding paragraph (a), for charter schools in 5.20 the first year of operation, general education revenue shall be 5.21 computed using the number of adjusted pupil units in the current 5.22 fiscal year. 5.23 Sec. 6. Minnesota Statutes 1999 Supplement, section 5.24 124D.86, subdivision 1, is amended to read: 5.25 Subdivision 1. [USE OF THE REVENUE.] Integration revenue 5.26 under this section must be used for programs established under a 5.27 desegregation plan filed with the department of children, 5.28 families, and learning, according to Minnesota Rules, parts 5.29 3535.0100 to 3535.0180 or under court order , to increase. The 5.30 revenue must be used to create or enhance learning opportunities 5.31 and reduce the learning gap between learners living in high5.32 concentrations of poverty and their peerswhich are designed to 5.33 provide opportunities for students to have increased interracial 5.34 contacts through classroom experiences, staff initiatives, and 5.35 other educationally related programs. 5.36 Sec. 7. Minnesota Statutes 1998, section 124D.86, is 6.1 amended by adding a subdivision to read: 6.2 Subd. 1a. [BUDGET APPROVAL PROCESS.] Each year before a 6.3 district receives any revenue under subdivision 3, clause (4), 6.4 the district must submit to the department of children, 6.5 families, and learning, for its review and approval a budget 6.6 detailing the costs of the desegregation/integration plan filed 6.7 under Minnesota Rules, parts 3535.0100 to 3535.0180. 6.8 Notwithstanding chapter 14, the department may develop criteria 6.9 for budget approval. The department shall consult with the 6.10 desegregation advisory board in developing these criteria. The 6.11 criteria developed by the department should address, at a 6.12 minimum, the following: 6.13 (1) budget items cannot be approved unless they are part of 6.14 any overall desegregation plan approved by the district for 6.15 isolated sites or by the multidistrict collaboration council and 6.16 participation individual members; 6.17 (2) the budget must indicate how revenue expenditures will 6.18 be used specifically to support increased opportunities for 6.19 interracial contact; 6.20 (3) components of the budget to be considered by the 6.21 department, including staffing, curriculum, transportation, 6.22 facilities, materials, and equipment and reasonable planning 6.23 costs, as determined by the department; 6.24 (4) if plans are proposed to enhance existing programs, the 6.25 total budget being appropriated to the program must be included, 6.26 indicating what part is to be funded using integration revenue 6.27 and what part is to be funded using other revenues; and 6.28 (5) the commissioner may deny revenue under this section if 6.29 the district is not meeting its goals outlined under subdivision 6.30 1b. 6.31 Sec. 8. Minnesota Statutes 1998, section 124D.86, is 6.32 amended by adding a subdivision to read: 6.33 Subd. 1b. [PLAN COMPONENTS.] Plans submitted by each 6.34 district under Minnesota Rules, parts 3535.0160 and 3535.0170, 6.35 must be approved by the district's board each year before 6.36 integration revenue will be awarded. If a district is applying 7.1 for revenue for a plan that is part of a multidistrict council, 7.2 the individual district shall not receive revenue unless it 7.3 ratifies the plan adopted by its multidistrict council or 7.4 approves a modified plan with a written explanation of any 7.5 modifications. Each plan shall contain: 7.6 (1) an identification of the integration issues at the 7.7 sites or districts covered by Minnesota Rules, parts 3535.0100 7.8 to 3535.0180; 7.9 (2) a description of the community outreach that preceded 7.10 the integration plan, such that the commissioner can determine 7.11 whether the membership of the planning councils complied with 7.12 the requirements of Minnesota Rules, parts 3535.0100 to 7.13 3535.0180; and 7.14 (3) the specific goals of the integration plan. 7.15 By June 30 of the subsequent fiscal year, each district shall 7.16 report to the commissioner in writing about the extent to which 7.17 the integration goals identified in the plan were met. 7.18 Sec. 9. Minnesota Statutes 1999 Supplement, section 7.19 124D.86, subdivision 3, is amended to read: 7.20 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 2000 and 7.21 later fiscal years, integration revenue equals the following 7.22 amounts: 7.23 (1) for independent school district No. 709, Duluth, $207 7.24 times the adjusted pupil units for the school year; 7.25 (2) for independent school district No. 625, St. Paul, $446 7.26 times the adjusted pupil units for the school year; 7.27 (3) for special school district No. 1, Minneapolis, $536 7.28 times the adjusted pupil units for the school year; and 7.29 (4) for a district not listed in clause (1), (2), or (3) 7.30 that is required to implement a plan according to the 7.31 requirements of Minnesota Rules, parts 3535.0100 to 7.32 3535.0180, as proposed in 23 State Register 1344, December 7,7.33 1998,the lesser of 7.34 (i) the actual cost of implementing the plan during the 7.35 fiscal year minus the aid received under subdivision 6, or 7.36 (ii) $93 times the adjusted pupil units for the school year. 8.1 Any money received by districts in clauses (1) to (3) which 8.2 exceeds the amount received in fiscal year 2000 shall be subject 8.3 to the budget requirements in subdivision 1a. 8.4 Sec. 10. Minnesota Statutes 1998, section 124D.86, 8.5 subdivision 6, is amended to read: 8.6 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 8.7 integration aid under subdivision 5 must be adjusted for each 8.8 pupil residing in a district eligible for integration revenue 8.9 under subdivision 3, clause (1), (2), or (3), and attending a 8.10 nonresident district under sections 123A.05 to 123A.08, 124D.03, 8.11 124D.06, 124D.07, and 124D.08, that is not eligible for 8.12 integration revenue under subdivision 3, clause (1), (2), or 8.13 (3), and has implemented a plan under Minnesota Rules, parts 8.14 3535.0100 to 3535.0180, if the enrollment of the pupil in the 8.15 nonresident district contributes to desegregation or integration 8.16 purposes. The adjustments must be made according to this 8.17 subdivision. 8.18 (b) Aid paid to the district of the pupil's residence must8.19 be reduced by an amount equal to the revenue per resident pupil8.20 unit of the resident district times the number of resident pupil8.21 units attributable to the pupil for the time the pupil is8.22 enrolled in a nonresident district.8.23 (c)Aid paid to a district serving nonresidents must be 8.24 increased by an amount equal to the aid reduction to the8.25 resident district under paragraphs (b) and (d)revenue per pupil 8.26 unit of the resident district under subdivision 3, clause (1), 8.27 (2), or (3), minus the revenue attributable to the pupil in the 8.28 nonresident district under subdivision 3, clause (4), for the 8.29 time the pupil is enrolled in the nonresident district. 8.30 (d) If the amount of the reduction to be made from the aid8.31 of a district is greater than the amount of aid otherwise due8.32 the district, the excess reduction must be made from other state8.33 aids due the district.8.34 Sec. 11. Minnesota Statutes 1999 Supplement, section 8.35 124D.87, is amended to read: 8.36 124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 9.1 TRANSPORTATION AID.] 9.2 (a) A district that provides transportation of pupils to 9.3 and from an interdistrict program for desegregation or 9.4 integration purposes is eligible for state aid to cover9.5 reimburse the additional costs of transportation during the 9.6 preceding fiscal year. 9.7 (b) A district in the metropolitan area may apply to the 9.8 commissioner for state aid to coverreimburse the costs of 9.9 transporting pupils who are enrolled under section 9.10 124D.03 during the preceding fiscal year if the enrollment of 9.11 the student in the nonresident district contributes to 9.12 desegregation or integration purposes. The commissioner shall 9.13 develop the form and manner of applications for state aid, the 9.14 criteria to be used to determine when transportation is for 9.15 desegregation or integration purposes, and the accounting 9.16 procedure to be used to determine excess costs. In determining 9.17 aid amounts, the commissioner shall consider other revenue 9.18 received by the district for transportation for desegregation or 9.19 integration purposes. 9.20 (c) Aid must be paid under paragraph (b) only if aid9.21 amounts under paragraph (a) have been fully funded.9.22 Sec. 12. Minnesota Statutes 1999 Supplement, section 9.23 126C.05, subdivision 5, is amended to read: 9.24 Subd. 5. [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 9.25 for a district or charter school means the sum of: 9.26 (1) the number of pupil units served, according to 9.27 subdivision 7, plus 9.28 (2) pupil units according to subdivision 1 for whom the 9.29 district or charter school pays tuition under section 123A.18, 9.30 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 9.31 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 9.32 125A.65, minus 9.33 (3) pupil units according to subdivision 1 for whom the 9.34 district or charter school receives tuition under section 9.35 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 9.36 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 10.1 125A.65. 10.2 (b) Adjusted marginal cost pupil units means the sum 10.3 of .9.77 times the pupil units defined in paragraph (a) for the 10.4 current school year and .1.23 times the pupil units defined in 10.5 paragraph (a) for the previous school year. 10.6 Sec. 13. Minnesota Statutes 1999 Supplement, section 10.7 126C.05, subdivision 6, is amended to read: 10.8 Subd. 6. [RESIDENT PUPIL UNITS.] (a) Resident pupil units 10.9 for a district means the number of pupil units according to 10.10 subdivision 1 residing in the district. 10.11 (b) Resident marginal cost pupil units means the sum 10.12 of .9.77 times the pupil units defined in paragraph (a) for the 10.13 current year and .1.23 times the pupil units defined in 10.14 paragraph (a) for the previous school year. 10.15 Sec. 14. Minnesota Statutes 1999 Supplement, section 10.16 126C.10, subdivision 2, is amended to read: 10.17 Subd. 2. [BASIC REVENUE.] The basic revenue for each 10.18 district equals the formula allowance times the resident pupil 10.19 units for the school year. The formula allowance for fiscal 10.20 year 1998 is $3,581. The formula allowance for fiscal year 1999 10.21 is $3,530. The formula allowance for fiscal year 2000 is 10.22 $3,740. The formula allowance for fiscal year 2001 and 10.23 subsequent fiscal years is $3,875$3,964. 10.24 Sec. 15. Minnesota Statutes 1999 Supplement, section 10.25 126C.10, subdivision 5, is amended to read: 10.26 Subd. 5. [TRAINING AND EXPERIENCE REVENUE.] (a) The 10.27 training and experience revenue for each district equals the 10.28 greater of zero or the result of the following computation: 10.29 (1) subtract .8 from the training and experience index; 10.30 (2) multiply the result in clause (1) by the product of 10.31 $660 times the adjusted marginal cost pupil units for the school 10.32 year. 10.33 (b) Training and experience revenue equals the greater of 10.34 the amount calculated in paragraph (a) for fiscal year 2001 or 10.35 the training and experience adjustment revenue, according to 10.36 subdivision 5b. 11.1 EFFECTIVE DATE: This section is effective the day 11.2 following final enactment. 11.3 Sec. 16. Minnesota Statutes 1998, section 126C.10, is 11.4 amended by adding a subdivision to read: 11.5 Subd. 5a. [TRAINING AND EXPERIENCE ADJUSTMENT BASE.] The 11.6 training and experience adjustment base equals the product of 11.7 $130 plus the district's training and experience transition 11.8 allowance for fiscal year 1998 under Minnesota Statutes 1996, 11.9 section 124A.22, subdivision 13b, paragraph (c), times the 11.10 actual pupil units for 1998. 11.11 EFFECTIVE DATE: This section is effective the day 11.12 following final enactment. 11.13 Sec. 17. Minnesota Statutes 1998, section 126C.10, is 11.14 amended by adding a subdivision to read: 11.15 Subd. 5b. [TRAINING AND EXPERIENCE ADJUSTMENT 11.16 REVENUE.] For fiscal year 2001, the training and experience 11.17 adjustment revenue equals 45 percent of the training and 11.18 experience base. 11.19 EFFECTIVE DATE: This section is effective the day 11.20 following final enactment. 11.21 Sec. 18. Minnesota Statutes 1999 Supplement, section 11.22 126C.10, subdivision 24, is amended to read: 11.23 Subd. 24. [EQUITY REVENUE.] (a) A school district 11.24 qualifies for equity revenue if the school district's adjusted 11.25 marginal cost pupil unit amount of basic revenue, supplemental 11.26 revenue, transition revenue, and referendum revenue is less than 11.27 the value of the school district at or immediately above the 11.28 90th percentile of school districts in its equity region for 11.29 those revenue categories and the school district's 11.30 administrative offices are not located in a city of the first 11.31 class on July 1, 1999. 11.32 (b) Equity revenue for a qualifying district that receives 11.33 referendum revenue under section 126C.17, subdivision 4, equals 11.34 the product of (1) the district's adjusted marginal cost pupil 11.35 units for that year; times (2) the sum of (i) $10, plus (ii) 11.36 $30, times the school district's equity index computed under 12.1 section 126C.10, subdivision 6. 12.2 (c) Equity revenue for a qualifying district that does not 12.3 receive referendum revenue under section 126C.17, subdivision 4, 12.4 equals the product of the district's adjusted marginal cost 12.5 pupil units for that year times $10. 12.6 EFFECTIVE DATE: This section is effective for revenue in 12.7 fiscal year 2000. 12.8 Sec. 19. Minnesota Statutes 1999 Supplement, section 12.9 126C.10, subdivision 25, is amended to read: 12.10 Subd. 25. [REGIONAL EQUITY GAP.] The regional equity gap 12.11 equals the difference between the value of the school district 12.12 at or immediately above the fifth percentile of adjusted general 12.13 revenue per marginal cost pupil unit and the value of the school 12.14 district at or immediately above the 90th percentile of adjusted 12.15 general revenue per adjusted marginal cost pupil unit. 12.16 EFFECTIVE DATE: This section is effective for revenue in 12.17 fiscal year 2000. 12.18 Sec. 20. Minnesota Statutes 1999 Supplement, section 12.19 126C.10, subdivision 26, is amended to read: 12.20 Subd. 26. [DISTRICT EQUITY GAP.] A district's equity gap 12.21 equals the greater of zero or the difference between the 12.22 district's adjusted general revenue and the value of the school 12.23 district at or immediately above the regional 90th percentile of 12.24 adjusted general revenue per adjusted marginal cost pupil unit. 12.25 EFFECTIVE DATE: This section is effective for revenue in 12.26 fiscal year 2000. 12.27 Sec. 21. Minnesota Statutes 1999 Supplement, section 12.28 126C.17, subdivision 9, is amended to read: 12.29 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 12.30 by section 126C.10, subdivision 1, may be increased in the 12.31 amount approved by the voters of the district at a referendum 12.32 called for the purpose. The referendum may be called by the 12.33 board or shall be called by the board upon written petition of 12.34 qualified voters of the district. The referendum must be 12.35 conducted one or two calendar years before the increased levy 12.36 authority, if approved, first becomes payable. Only one 13.1 election to approve an increase may be held in a calendar year. 13.2 Unless the referendum is conducted by mail under paragraph (g), 13.3 the referendum must be held on the first Tuesday after the first 13.4 Monday in November. The ballot must state the maximum amount of 13.5 the increased revenue per resident marginal cost pupil unit, the 13.6 estimated referendum tax rate as a percentage of referendum 13.7 market value in the first year it is to be levied, and that the 13.8 revenue must be used to finance school operations. The ballot 13.9 may state a schedule, determined by the board, of increased 13.10 revenue per resident marginal cost pupil unitsunit that differs 13.11 from year to year over the number of years for which the 13.12 increased revenue is authorized. If the ballot contains a 13.13 schedule showing different amounts, it must also indicate the 13.14 estimated referendum tax rate as a percent of referendum market 13.15 value for the amount specified for the first year and for the 13.16 maximum amount specified in the schedule. The ballot may state 13.17 that existing referendum levy authority is expiring. In this 13.18 case, the ballot may also compare the proposed levy authority to 13.19 the existing expiring levy authority, and express the proposed 13.20 increase as the amount, if any, over the expiring referendum 13.21 levy authority. The ballot must designate the specific number 13.22 of years, not to exceed ten, for which the referendum 13.23 authorization applies. The notice required under section 275.60 13.24 may be modified to read, in cases of renewing existing levies: 13.25 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 13.26 FOR A PROPERTY TAX INCREASE." 13.27 The ballot may contain a textual portion with the 13.28 information required in this subdivision and a question stating 13.29 substantially the following: 13.30 "Shall the increase in the revenue proposed by (petition 13.31 to) the board of ........., School District No. .., be approved?" 13.32 If approved, an amount equal to the approved revenue per 13.33 resident marginal cost pupil unit times the resident marginal 13.34 cost pupil units for the school year beginning in the year after 13.35 the levy is certified shall be authorized for certification for 13.36 the number of years approved, if applicable, or until revoked or 14.1 reduced by the voters of the district at a subsequent referendum. 14.2 (b) The board must prepare and deliver by first class mail 14.3 at least 15 days but no more than 30 days before the day of the 14.4 referendum to each taxpayer a notice of the referendum and the 14.5 proposed revenue increase. The board need not mail more than 14.6 one notice to any taxpayer. For the purpose of giving mailed 14.7 notice under this subdivision, owners must be those shown to be 14.8 owners on the records of the county auditor or, in any county 14.9 where tax statements are mailed by the county treasurer, on the 14.10 records of the county treasurer. Every property owner whose 14.11 name does not appear on the records of the county auditor or the 14.12 county treasurer is deemed to have waived this mailed notice 14.13 unless the owner has requested in writing that the county 14.14 auditor or county treasurer, as the case may be, include the 14.15 name on the records for this purpose. The notice must project 14.16 the anticipated amount of tax increase in annual dollars and 14.17 annual percentage for typical residential homesteads, 14.18 agricultural homesteads, apartments, and commercial-industrial 14.19 property within the school district. 14.20 The notice for a referendum may state that an existing 14.21 referendum levy is expiring and project the anticipated amount 14.22 of increase over the existing referendum levy in the first year, 14.23 if any, in annual dollars and annual percentage for typical 14.24 residential homesteads, agricultural homesteads, apartments, and 14.25 commercial-industrial property within the district. 14.26 The notice must include the following statement: "Passage 14.27 of this referendum will result in an increase in your property 14.28 taxes." However, in cases of renewing existing levies, the 14.29 notice may include the following statement: "Passage of this 14.30 referendum may result in an increase in your property taxes." 14.31 (c) A referendum on the question of revoking or reducing 14.32 the increased revenue amount authorized pursuant to paragraph 14.33 (a) may be called by the board and shall be called by the board 14.34 upon the written petition of qualified voters of the district. 14.35 A referendum to revoke or reduce the levy amount must be based 14.36 upon the dollar amount, local tax rate, or amount per resident 15.1 marginal cost pupil unit, that was stated to be the basis for 15.2 the initial authorization. Revenue approved by the voters of 15.3 the district pursuant to paragraph (a) must be received at least 15.4 once before it is subject to a referendum on its revocation or 15.5 reduction for subsequent years. Only one revocation or 15.6 reduction referendum may be held to revoke or reduce referendum 15.7 revenue for any specific year and for years thereafter. 15.8 (d) A petition authorized by paragraph (a) or (c) is 15.9 effective if signed by a number of qualified voters in excess of 15.10 15 percent of the registered voters of the district on the day 15.11 the petition is filed with the board. A referendum invoked by 15.12 petition must be held on the date specified in paragraph (a). 15.13 (e) The approval of 50 percent plus one of those voting on 15.14 the question is required to pass a referendum authorized by this 15.15 subdivision. 15.16 (f) At least 15 days before the day of the referendum, the 15.17 district must submit a copy of the notice required under 15.18 paragraph (b) to the commissioner and to the county auditor of 15.19 each county in which the district is located. Within 15 days 15.20 after the results of the referendum have been certified by the 15.21 board, or in the case of a recount, the certification of the 15.22 results of the recount by the canvassing board, the district 15.23 must notify the commissioner of the results of the referendum. 15.24 (g) Except for a referendum held under subdivision 11, any 15.25 referendum under this section held on a day other than the first 15.26 Tuesday after the first Monday in November must be conducted by 15.27 mail in accordance with section 204B.46. Notwithstanding 15.28 paragraph (b) to the contrary, in the case of a referendum 15.29 conducted by mail under this paragraph, the notice required by 15.30 paragraph (b) must be prepared and delivered by first class mail 15.31 at least 20 days before the referendum. 15.32 Sec. 22. [126C.37.] [SECONDARY VOCATIONAL REVENUE 15.33 RESERVE.] 15.34 Subdivision 1. [RESERVE REVENUE.] For fiscal year 2001 and 15.35 later, a district must reserve an amount equal to the number of 15.36 adjusted marginal cost pupil units times the amount of secondary 16.1 vocational aid, according to section 124D.453, paid to the 16.2 district in fiscal year 2000, divided by the district's adjusted 16.3 marginal cost pupil units for fiscal year 2000. A school board 16.4 may vote to not reserve secondary vocational aid as determined 16.5 by this section. 16.6 Subd. 2. [REVENUE USE.] Revenue must be used for: 16.7 (1) salaries paid to essential, licensed personnel 16.8 providing direct instructional services to students in that 16.9 fiscal year for services rendered in the district's approved 16.10 career and technical education programs; 16.11 (2) contracted services provided by a public or private 16.12 agency other than a Minnesota school district or cooperative 16.13 center; 16.14 (3) necessary travel between instructional sites by 16.15 licensed career and technical education personnel; 16.16 (4) necessary travel by licensed career and technical 16.17 education personnel for vocational student organization 16.18 activities held within the state for instructional purposes; 16.19 (5) curriculum development activities that are part of a 16.20 five-year plan for improvement based on program assessment; 16.21 (6) necessary travel by licensed career and technical 16.22 education personnel for noncollegiate credit bearing 16.23 professional development; or 16.24 (7) specialized vocational instructional supplies and 16.25 equipment. 16.26 Sec. 23. Minnesota Statutes 1999 Supplement, section 16.27 127A.45, subdivision 12a, is amended to read: 16.28 Subd. 12a. [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 16.29 percent of the state aid in fiscal year 1999, and 31 percent of 16.30 the state aid in fiscal years 2000 and later received under 16.31 section 124D.86 must be paid by the state to the recipient 16.32 school district on July 15 of that year. The recipient school 16.33 district must recognize this aid in the same fiscal year as the 16.34 levy is recognized. 16.35 (b) One hundred percent of the state aid in fiscal years 16.36 2003 and later received under section 124D.87 must be paid by 17.1 the state to the recipient school district on August 30 of that 17.2 year. The recipient school district must recognize this aid in 17.3 the previous fiscal year. 17.4 Sec. 24. Minnesota Statutes 1999 Supplement, section 17.5 127A.51, is amended to read: 17.6 127A.51 [STATEWIDE AVERAGE REVENUE.] 17.7 By October 1 of each year the commissioner must estimate 17.8 the statewide average adjusted general revenue per adjusted 17.9 marginal cost pupil unit and the disparity in adjusted general 17.10 revenue among pupils and districts by computing the ratio of the 17.11 ninety-fifth percentile to the fifth percentile of adjusted 17.12 general revenue. The commissioner must provide that information 17.13 to all districts. 17.14 If the disparity in adjusted general revenue as measured by 17.15 the ratio of the ninety-fifth percentile to the fifth percentile 17.16 increases in any year, the commissioner shall recommend to the 17.17 legislature options for change in the general education formula 17.18 that will limit the disparity in adjusted general revenue to no 17.19 more than the disparity for the previous school year. The 17.20 commissioner must submit the recommended options to the 17.21 education committees of the legislature by January 15. 17.22 For purposes of this section and section 126C.10, adjusted 17.23 general revenue means the sum of basic revenue under section 17.24 126C.10, subdivision 2; supplemental revenue under section 17.25 126C.10, subdivisions 9 and 12; transition revenue under section 17.26 126C.10, subdivision 20; and referendum revenue under section 17.27 126C.17. 17.28 Sec. 25. Minnesota Statutes 1998, section 128D.11, 17.29 subdivision 3, is amended to read: 17.30 Subd. 3. [NO ELECTION.] Subject to the provisions of 17.31 subdivisions 7 to 10, the school district may also by a 17.32 two-thirds majority vote of all the members of its board of 17.33 education and without any election by the voters of the 17.34 district, issue and sell in each calendar year general 17.35 obligation bonds of the district in an amount not to exceed 17.36 5-1/10 per cent of the net tax capacity of the taxable property 18.1 in the district (plus, for calendar years 1990 to 20032008, an 18.2 amount not to exceed $7,500,000$15,000,000; with an additional 18.3 provision that any amount of bonds so authorized for sale in a 18.4 specific year and not sold can be carried forward and sold in 18.5 the year immediately following). 18.6 Sec. 26. Laws 1992, chapter 499, article 7, section 32, is 18.7 amended to read: 18.8 Sec. 32. [EFFECTIVE DATE.] 18.9 Sections 1, 9, 14, 18, 19, 20, 21, 22, 23, and 30 are 18.10 effective the day following final enactment. Sections 4 to 8 18.11 are effective for revenue for fiscal year 20002002. 18.12 Sec. 27. Laws 1992, chapter 499, article 7, section 31, as 18.13 amended by Laws 1998, chapter 398, article 1, section 39, and 18.14 Laws 1999, chapter 241, article 1, section 31, is amended to 18.15 read: 18.16 Sec. 31. [REPEALER.] 18.17 Minnesota Statutes 1990, sections 124A.02, subdivision 24; 18.18 124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 18.19 124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 18.20 Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 18.21 23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 18.22 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 18.23 124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 18.24 1; and 124A.29, subdivision 1, are repealed effective June 30, 18.25 20012004; Laws 1991, chapter 265, article 7, section 35, is 18.26 repealed. 18.27 Sec. 28. Laws 1999, chapter 241, article 1, section 68, 18.28 subdivision 2, is amended to read: 18.29 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 18.30 general and supplemental education aid: 18.31 $3,062,321,000$3,066,166,000 ..... 2000 18.32 $3,160,518,000$3,261,304,000 ..... 2001 18.33 The 2000 appropriation includes $272,186,000 for 1999 and 18.34 $2,790,135,000$2,793,980,000 for 2000. 18.35 The 2001 appropriation includes $310,015,000$310,442,000 18.36 for 2000 and $2,850,503,000$2,950,862,000 for 2001. 19.1 Sec. 29. Laws 1999, chapter 241, article 1, section 68, 19.2 subdivision 4, is amended to read: 19.3 Subd. 4. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 19.4 transportation of pupils attending post-secondary institutions 19.5 according to Minnesota Statutes, section 124D.09, or for 19.6 transportation of pupils attending nonresident districts 19.7 according to Minnesota Statutes, section 124D.03: 19.8 $102,000$70,000 ..... 2000 19.9 $102,000$70,000 ..... 2001 19.10 Any balance in the first year does not cancel but is 19.11 available in the second year. 19.12 Sec. 30. Laws 1999, chapter 241, article 1, section 68, 19.13 subdivision 5, is amended to read: 19.14 Subd. 5. [DISTRICT COOPERATION REVENUE.] For district 19.15 cooperation revenue aid: 19.16 $5,940,000$5,881,000 ..... 2000 19.17 $ 563,000$ 556,000 ..... 2001 19.18 The 2000 appropriation includes $869,000 for 1999 and 19.19 $5,071,000$5,012,000 for 2000. 19.20 The 2001 appropriation includes $563,000$556,000 for 2000 19.21 and $0 for 2001. 19.22 Sec. 31. [FISCAL YEARS 2003 TO 2007 AIRPORT RUNWAY IMPACT 19.23 PUPIL UNIT AID; RICHFIELD.] 19.24 Subdivision 1. [AIRPORT IMPACT ZONE PUPIL UNITS, 19.25 DEFINITION.] For the purposes of this section, "airport impact 19.26 zone pupil units" means the number of pupil units, according to 19.27 Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 19.28 1, in school year 1998-1999 that were attributable to the 19.29 airport impact zone, as defined in Laws 1999, chapter 243, 19.30 article 16, section 35, subdivision 1. 19.31 Subd. 2. [FISCAL YEAR 2003.] For fiscal year 2003 only, 19.32 independent school district No. 280, Richfield, is eligible for 19.33 declining pupil unit aid equal to the product of 70 percent of 19.34 the airport impact zone pupil units times the general education 19.35 formula allowance for fiscal year 2003. 19.36 Subd. 3. [FISCAL YEAR 2004.] For fiscal year 2004 only, 20.1 independent school district No. 280, Richfield, is eligible for 20.2 declining pupil unit aid equal to the product of 70 percent of 20.3 the airport impact zone pupil units times the general education 20.4 formula allowance for fiscal year 2004. 20.5 Subd. 4. [FISCAL YEAR 2005.] For fiscal year 2005 only, 20.6 independent school district No. 280, Richfield, is eligible for 20.7 declining pupil unit aid equal to the product of 52.5 percent of 20.8 the airport impact zone pupil units times the general education 20.9 formula allowance for fiscal year 2005. 20.10 Subd. 5. [FISCAL YEAR 2006.] For fiscal year 2006 only, 20.11 independent school district No. 280, Richfield, is eligible for 20.12 declining pupil unit aid equal to the product of 35 percent of 20.13 the airport impact zone pupil units times the general education 20.14 formula allowance for fiscal year 2006. 20.15 Subd. 6. [FISCAL YEAR 2007.] For fiscal year 2007 only, 20.16 independent school district No. 280, Richfield, is eligible for 20.17 declining pupil unit aid equal to the product of 17.5 percent of 20.18 the airport impact zone pupil units times the general education 20.19 formula allowance for fiscal year 2007. 20.20 EFFECTIVE DATE: This section is effective the day 20.21 following final enactment. 20.22 Sec. 32. [LEVY RECOGNITION FOR INTEGRATION LEVY 20.23 ADJUSTMENT.] 20.24 Notwithstanding Minnesota Statutes, section 123B.75, 20.25 subdivision 5, the full amount of integration levy for taxes 20.26 payable in 2001, attributable to fiscal year 2001, for school 20.27 districts receiving revenue under Minnesota Statutes, section 20.28 124D.86, subdivision 3, clause (4), shall be recognized in 20.29 fiscal year 2001. 20.30 Sec. 33. [DIRECTION TO THE DEPARTMENT.] 20.31 For the purposes of providing aid to independent school 20.32 district No. 508, St. Peter, under Laws 1999, chapter 241, 20.33 article 4, section 22, the department of children, families, and 20.34 learning shall make appropriate weighting adjustments to fiscal 20.35 year 1997 pupil units to reflect the impact of Minnesota 20.36 Statutes, section 126C.05, subdivision 5, paragraph (b), and 21.1 subdivision 6, paragraph (b). 21.2 Sec. 34. [SPARSITY CORRECTION REVENUE.] 21.3 Subdivision 1. [QUALIFICATION FOR REVENUE.] A school 21.4 district qualifies for sparsity correction revenue if it 21.5 qualifies for sparsity revenue, according to Minnesota Statutes, 21.6 section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 21.7 2001 and the amount of sparsity revenue it received in those 21.8 years is less than the amount it would have received in fiscal 21.9 year 2000 or 2001 prior to the passage of Laws 1999, chapter 21.10 241, article 1, sections 18 and 19. 21.11 Subd. 2. [FISCAL YEAR 2000 CALCULATION.] For fiscal year 21.12 2000, a school district's sparsity correction revenue equals the 21.13 difference between sparsity revenue in fiscal year 2000 21.14 calculated according to Laws 1999, chapter 241, article 1, 21.15 sections 18 and 19, and the sparsity revenue the district would 21.16 have received for fiscal year 2000 had these sections of law not 21.17 been approved. 21.18 Subd. 3. [FISCAL YEAR 2001 CALCULATION.] For fiscal year 21.19 2001, a school district's sparsity correction revenue equals .5 21.20 times the difference between sparsity revenue in fiscal year 21.21 2001 calculated according to Laws 1999, chapter 241, article 1, 21.22 sections 18 and 19, and the sparsity revenue the district would 21.23 have received for fiscal year 2001 had these sections of law not 21.24 been approved. 21.25 Sec. 35. [MARGINAL COST IMPACT AID.] 21.26 School districts that have fewer marginal cost pupil units 21.27 as a result of the changes to Minnesota Statutes, section 21.28 126C.05, subdivisions 5 and 6, in this bill are eligible for 21.29 marginal cost impact revenue. For fiscal year 2001 only, the 21.30 marginal cost impact aid for an eligible district equals the 21.31 difference between the general education and referendum revenue 21.32 the district would have received based on the marginal cost 21.33 pupil units defined in Minnesota Statutes 1999 Supplement, 21.34 section 126C.05, subdivisions 5 and 6, and the marginal cost 21.35 pupil units computed according to sections 12 and 13. 21.36 Sec. 36. [SEVERANCE LEVY; MESABI EAST.] 22.1 Independent school district No. 2711, Mesabi East, may levy 22.2 an amount up to $250,000 each year for a period of five years 22.3 for severance and early retirement incentives for licensed 22.4 employees who have retired early as a result of the district's 22.5 combination that was effective July 1, 1991. 22.6 EFFECTIVE DATE: This section is effective for taxes 22.7 payable in 2001 and later years. 22.8 Sec. 37. [METRO EQUITY AID.] 22.9 (a) For fiscal year 2001 only, a district that is located 22.10 in the metro equity district according to Minnesota Statutes, 22.11 section 126C.10, subdivision 28, and qualifies for equity 22.12 revenue under Minnesota Statutes, section 126C.10, subdivision 22.13 10, shall receive $40 times the district equity index under 22.14 Minnesota Statutes, section 126C.10, subdivision 27, times its 22.15 adjusted marginal cost pupil units. 22.16 (b) For fiscal year 2001 only, a school district that is 22.17 located in a city of the first class and is outside the 22.18 seven-county metropolitan area and has an adjusted net tax 22.19 capacity of less than $100,000,000 is eligible for metro equity 22.20 aid equal to $40 times its district equity index, under 22.21 Minnesota Statutes, section 126C.10, subdivision 27, times its 22.22 adjusted marginal cost pupil units. The district's equity index 22.23 shall be computed as if it were eligible for equity revenue 22.24 under Minnesota Statutes, section 126C.10, subdivision 24. 22.25 Sec. 38. [APPROPRIATIONS.] 22.26 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 22.27 LEARNING.] The sums indicated in this section are appropriated 22.28 from the general fund to the department of children, families, 22.29 and learning for the fiscal years designated. 22.30 Subd. 2. [MARGINAL COST IMPACT AID.] For marginal cost 22.31 impact aid: 22.32 $4,025,000 ..... 2001 22.33 Subd. 3. [SPARSITY CORRECTION REVENUE.] For sparsity 22.34 correction revenue: 22.35 $1,030,000 ..... 2000 22.36 $ 515,000 ..... 2001 23.1 Subd. 4. [METRO EQUITY AID.] For metro equity aid: 23.2 $9,566,000 ..... 2001 23.3 ARTICLE 2 23.4 SPECIAL PROGRAMS 23.5 Section 1. Minnesota Statutes 1999 Supplement, section 23.6 122A.31, subdivision 1, is amended to read: 23.7 Subdivision 1. [REQUIREMENTS FOR AMERICAN SIGN 23.8 LANGUAGE/ENGLISH INTERPRETERS.] In addition to any other 23.9 requirements that a school district establishes, any person 23.10 employed to provide American sign language/English interpreting 23.11 or sign transliterating services on a full-time or part-time 23.12 basis for a school district after July 1, 20002001, must: 23.13 (1) hold current interpreter and transliterator 23.14 certificates awarded by the Registry of Interpreters for the 23.15 Deaf (RID), or the general level interpreter proficiency 23.16 certificate awarded by the National Association of the Deaf, or 23.17 a comparable state certification from the commissioner of 23.18 children, families, and learning; and 23.19 (2) satisfactorily complete an interpreter/transliterator 23.20 training program affiliated with an accredited educational 23.21 institution. 23.22 Sec. 2. Minnesota Statutes 1999 Supplement, section 23.23 122A.31, subdivision 2, is amended to read: 23.24 Subd. 2. [ORAL OR CUED SPEECH TRANSLITERATORS.] In 23.25 addition to any other requirements that a school district 23.26 establishes, any person employed to provide oral transliterating 23.27 or cued speech transliterating services on a full-time or 23.28 part-time basis for a school district after July 1, 20002001, 23.29 must hold a current applicable transliterator certificate 23.30 awarded by the national certifying association or comparable 23.31 state certification from the commissioner of children, families, 23.32 and learning. 23.33 Sec. 3. Minnesota Statutes 1999 Supplement, section 23.34 123A.05, subdivision 2, is amended to read: 23.35 Subd. 2. [RESERVE REVENUE.] Each district that is a member 23.36 of an area learning center must reserve revenue in an amount 24.1 equal to at least 90 percent of the district average general 24.2 education revenue per pupil unit, or for a private area learning 24.3 center that provides chemical treatment services to students, 24.4 the district must reserve 100 percent of the district average 24.5 general education revenue per pupil unit, minus an amount equal 24.6 to the product of the formula allowance according to section 24.7 126C.10, subdivision 2, times .0485, calculated without basic 24.8 skills revenue, transportation sparsity revenue, and the 24.9 transportation portion of the transition revenue adjustment, 24.10 times the number of pupil units attending an area learning 24.11 center program under this section. The amount of reserved 24.12 revenue under this subdivision may only be spent on program 24.13 costs associated with the area learning center. Compensatory 24.14 revenue must be allocated according to section 126C.15, 24.15 subdivision 2. 24.16 Sec. 4. Minnesota Statutes 1999 Supplement, section 24.17 124D.68, subdivision 9, is amended to read: 24.18 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 24.19 attending an eligible program full time under subdivision 3, 24.20 paragraph (d), the department must pay 90 percent of the 24.21 district's average general education revenue less basic skills 24.22 revenue to the eligible program and ten percent of the 24.23 district's average general education revenue less basic skills 24.24 revenue to the resident district within 30 days after the 24.25 eligible program verifies enrollment using the form provided by 24.26 the department. For a pupil attending a private area learning 24.27 center that provides chemical treatment services to students, 24.28 the department must pay 100 percent of the district's general 24.29 education revenue less basic skills revenue to the eligible 24.30 program. For a pupil attending an eligible program part time, 24.31 revenue shall be reduced proportionately, according to the 24.32 amount of time the pupil attends the program, and the payments 24.33 to the eligible program and the resident district shall be 24.34 reduced accordingly. A pupil for whom payment is made according 24.35 to this section may not be counted by any district for any 24.36 purpose other than computation of general education revenue. If 25.1 payment is made for a pupil under this subdivision, a district 25.2 shall not reimburse a program under section 124D.69 for the same 25.3 pupil. Basic skills revenue shall be paid according to section 25.4 126C.10, subdivision 4. 25.5 (b) The department must pay up to 100 percent of the 25.6 revenue to the eligible program if there is an agreement to that 25.7 effect between the school district and the eligible program. 25.8 Sec. 5. Minnesota Statutes 1999 Supplement, section 25.9 124D.84, subdivision 1, is amended to read: 25.10 Subdivision 1. [AWARDS.] The commissioner, with the advice 25.11 and counsel of the Minnesota Indian scholarship committee, may 25.12 award scholarships to any Minnesota resident student who is of 25.13 one-fourth or more Indian ancestry, who has applied for other 25.14 existing state and federal scholarship and grant programs, and 25.15 who, in the opinion of the commissioner, has the capabilities to 25.16 benefit from further education. Scholarships must be 25.17 for advanced or specialized educationaccredited degree programs 25.18 in accredited colleges or universities or for courses in 25.19 accredited or approved colleges or inbusiness, technical or 25.20 vocational schools. Scholarships shall be used to defray the 25.21 total cost of education including tuition, incidental fees, 25.22 books, supplies, transportation, other related school costs and 25.23 the cost of board and room and shall be paid directly to the 25.24 college or school concerned. The total cost of education 25.25 includes all tuition and fees for each student enrolling in a 25.26 public institution and the portion of tuition and fees for each 25.27 student enrolling in a private institution that does not exceed 25.28 the tuition and fees at a comparable public institution. Each 25.29 student shall be awarded a scholarship based on the total cost 25.30 of the student's education and a standardized need analysis. 25.31 The amount and type of each scholarship shall be determined 25.32 through the advice and counsel of the Minnesota Indian 25.33 scholarship committee. 25.34 When an Indian student satisfactorily completes the work 25.35 required by a certain college or school in a school year the 25.36 student is eligible for additional scholarships, if additional 26.1 training is necessary to reach the student's educational and 26.2 vocational objective. Scholarships may not be given to any 26.3 Indian student for more than five years of study without special 26.4 approval of the Minnesota Indian scholarship committee. 26.5 Sec. 6. Minnesota Statutes 1999 Supplement, section 26.6 124D.88, subdivision 3, is amended to read: 26.7 Subd. 3. [GRANT APPLICATION PROCESS.] (a) Any group of 26.8 school districts that meets the criteria required under 26.9 paragraph (b)(1) may apply for a magnet school grant in an 26.10 amount not to exceed $20,800,000 forthe approved costs or 26.11 expansion of a magnet school facility. 26.12 (b)(1) Any group of districts that submits an application 26.13 for a grant shall submit a proposal to the commissioner for 26.14 review and comment under section 123B.71, and the commissioner 26.15 shall prepare a review and comment on the proposed magnet school 26.16 facility, regardless of the amount of the capital expenditure 26.17 required to design, acquire, construct, remodel, improve, 26.18 furnish, or equip the facility. The commissioner must not 26.19 approve an application for a magnet school grant for any 26.20 facility unless the facility receives a favorable review and 26.21 comment under section 123B.71 and the participating districts: 26.22 (i) establish a joint powers board under section 471.59 to 26.23 represent all participating districts and govern the magnet 26.24 school facility; 26.25 (ii) design the planned magnet school facility to meet the 26.26 applicable requirements contained in Minnesota Rules, chapter 26.27 3535; 26.28 (iii) submit a statement of need, including reasons why the 26.29 magnet school will facilitate integration and improve learning; 26.30 (iv) prepare an educational plan that includes input from 26.31 both community and professional staff; and 26.32 (v) develop an education program that will improve learning 26.33 opportunities for students attending the magnet school. 26.34 (2) The districts may develop a plan that permits social 26.35 service, health, and other programs serving students and 26.36 community residents to be located within the magnet school 27.1 facility. The commissioner shall consider this plan when 27.2 preparing a review and comment on the proposed facility. 27.3 (c) When two or more districts enter into an agreement 27.4 establishing a joint powers board to govern the magnet school 27.5 facility, all member districts shall have the same powers. 27.6 (d) A joint powers board of participating school districts 27.7 established under paragraphs (b) and (c) that intends to apply 27.8 for a grant must adopt a resolution stating the costs of the 27.9 proposed project, the purpose for which the debt is to be 27.10 incurred, and an estimate of the dates when the contracts for 27.11 the proposed project will be completed. A copy of the 27.12 resolution must accompany any application for a state grant 27.13 under this section. 27.14 (e)(1) The commissioner shall examine and consider all 27.15 grant applications. If the commissioner finds that any joint 27.16 powers district is not a qualified grant applicant, the 27.17 commissioner shall promptly notify that joint powers board. The 27.18 commissioner shall make awards to no more than two qualified 27.19 applicants whose applications have been on file with the 27.20 commissioner more than 30 days. 27.21 (2) A grant award is subject to verification by the joint 27.22 powers board under paragraph (f). A grant award must not be 27.23 made until the participating districts determine the site of the 27.24 magnet school facility. If the total amount of the approved 27.25 applications exceeds the amount of grant funding that is or can 27.26 be made available, the commissioner shall allot the available 27.27 amount equally between the approved applicant districts. The 27.28 commissioner shall promptly certify to each qualified joint 27.29 powers board the amount, if any, of the grant awarded to it. 27.30 (f) Each grant must be evidenced by a contract between the 27.31 joint powers board and the state acting through the 27.32 commissioner. The contract obligates the state to pay to the 27.33 joint powers board an amount computed according to paragraph 27.34 (e)(2) and a schedule, and terms and conditions acceptable to 27.35 the commissioner of finance. 27.36 (g) Notwithstanding the provisions of section 123B.02, 28.1 subdivision 3, the joint powers and its individual members may 28.2 enter into long-term lease agreements as part of the magnet 28.3 school program. 28.4 EFFECTIVE DATE: This section is effective the day 28.5 following final enactment. 28.6 Sec. 7. Minnesota Statutes 1998, section 124D.88, is 28.7 amended by adding a subdivision to read: 28.8 Subd. 4. [START-UP COSTS.] During the first two years of a 28.9 metropolitan magnet school's operation, the school is eligible 28.10 for aid to pay for start-up costs and additional operating 28.11 costs. Start-up cost aid equals $500 times the magnet school's 28.12 pupil units served for that year. 28.13 Sec. 8. Minnesota Statutes 1998, section 124D.892, 28.14 subdivision 3, is amended to read: 28.15 Subd. 3. [ADVISORY BOARD.] The commissioner shall 28.16 establish an advisory board composed of: 28.17 (1) eightnine superintendents, each of whomeight shall be 28.18 selected by the superintendents of the school districts located 28.19 in whole or in part within each of the eight metropolitan 28.20 districts established under section 473.123, subdivision 3c, and 28.21 one superintendent of a district outside the seven-county 28.22 metropolitan area and is from a district that is considered 28.23 racially isolated or has a racially isolated school site 28.24 according to Minnesota Rules, part 3535.0110; and28.25 (2) one person each selected by the Indian affairs council, 28.26 the council on Asian-Pacific Minnesotans, the council on Black 28.27 Minnesotans, and the council on affairs of Chicano/Latino 28.28 people; and 28.29 (3) the superintendent of independent school district No. 28.30 709, Duluth. 28.31 The advisory board shall advise the office on complying 28.32 with the requirements under subdivision 1. The advisory board 28.33 may solicit comments from teachers, parents, students, and 28.34 interested community organizations and others. 28.35 Sec. 9. Minnesota Statutes 1999 Supplement, section 28.36 125A.027, subdivision 3, is amended to read: 29.1 Subd. 3. [IMPLEMENTATION TIMELINE.] By July 1, 2000, the 29.2 individual interagency intervention plan must be available and 29.3 by January 1, 2001, all governing boards of interagency early 29.4 intervention committees statewide must implement a coordinated 29.5 service system for children up to age five with disabilities 29.6 consistent with the requirements of this section and section 29.7 125A.023 and the evaluation results from the demonstration 29.8 projects under section 125A.023, subdivision 5. Children with 29.9 disabilities up to the age of 21 shall be eligible for 29.10 coordinated services and their eligibility to receive such 29.11 services under this section shall be phased in over a four-year 29.12 period as follows: 29.13 (1) July 1, 2001, children up to age nine become eligible; 29.14 (2) July 1, 2002, children up to age 14 become eligible; 29.15 and 29.16 (3) July 1, 2003, children up to age 21 become eligible. 29.17 Sec. 10. Minnesota Statutes 1999 Supplement, section 29.18 125A.51, is amended to read: 29.19 125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 29.20 EDUCATION AND TRANSPORTATION.] 29.21 The responsibility for providing instruction and 29.22 transportation for a pupil without a disability who has a 29.23 short-term or temporary physical or emotional illness or 29.24 disability, as determined by the standards of the commissioner, 29.25 and who is temporarily placed for care and treatment for that 29.26 illness or disability, must be determined as provided in this 29.27 section. 29.28 (a) The school district of residence of the pupil is the 29.29 district in which the pupil's parent or guardian resides. 29.30 (b) When parental rights have been terminated by court 29.31 order, the legal residence of a child placed in a residential or 29.32 foster facility for care and treatment is the district in which 29.33 the child resides when parental rights have been terminated. 29.34 (c) Before the placement of a pupil for care and treatment, 29.35 the district of residence must be notified and provided an 29.36 opportunity to participate in the placement decision. When an 30.1 immediate emergency placement is necessary and time does not 30.2 permit resident district participation in the placement 30.3 decision, the district in which the pupil is temporarily placed, 30.4 if different from the district of residence, must notify the 30.5 district of residence of the emergency placement within 15 days 30.6 of the placement. 30.7 (d) When a pupil without a disability is temporarily placed 30.8 for care and treatment in a day program and the pupil continues 30.9 to live within the district of residence during the care and 30.10 treatment, the district of residence must provide instruction 30.11 and necessary transportation to and from the treatment facility 30.12 for the pupil. Transportation shall only be provided by the 30.13 district during regular operating hours of the district. The 30.14 district may provide the instruction at a school within the 30.15 district of residence, at the pupil's residence, or in the case 30.16 of a placement outside of the resident district, in the district 30.17 in which the day treatment program is located by paying tuition 30.18 to that district. The district of placement may contract with a 30.19 facility to provide instruction by teachers licensed by the 30.20 state board of teaching. 30.21 (e) When a pupil without a disability is temporarily placed 30.22 in a residential program for care and treatment, the district in 30.23 which the pupil is placed must provide instruction for the pupil 30.24 and necessary transportation while the pupil is receiving 30.25 instruction, and in the case of a placement outside of the 30.26 district of residence, the nonresident district must bill the 30.27 district of residence for the actual cost of providing the 30.28 instruction for the regular school year and for summer school, 30.29 excluding transportation costs. When a pupil without a 30.30 disability is temporarily placed in a residential program 30.31 outside the district of residence, the administrator of the 30.32 court placing the pupil must send timely written notice of the 30.33 placement to the district of residence. The district of 30.34 placement may contract with a residential facility to provide 30.35 instruction by teachers licensed by the state board of teaching. 30.36 For purposes of this section, the state correctional facilities 31.1 operated on a fee-for-service basis are considered to be 31.2 residential programs for care and treatment. 31.3 (f) The district of residence must include the pupil in its 31.4 residence count of pupil units and pay tuition as provided in 31.5 section 123A.488 to the district providing the instruction. 31.6 Transportation costs must be paid by the district providing the 31.7 transportation and the state must pay transportation aid to that 31.8 district. For purposes of computing state transportation aid, 31.9 pupils governed by this subdivision must be included in the 31.10 disabled transportation category. 31.11 Sec. 11. Minnesota Statutes 1999 Supplement, section 31.12 125A.76, subdivision 1, is amended to read: 31.13 Subdivision 1. [DEFINITIONS.] For the purposes of this 31.14 section, the definitions in this subdivision apply. 31.15 (a) "Base year" for fiscal year 1998 and later fiscal years 31.16 means the second fiscal year preceding the fiscal year for which 31.17 aid will be paid. 31.18 (b) "Basic revenue" has the meaning given it in section 31.19 126C.10, subdivision 2. For the purposes of computing basic 31.20 revenue pursuant to this section, each child with a disability 31.21 shall be counted as prescribed in section 126C.05, subdivision 1. 31.22 (c) "Essential personnel" means teachers, related services, 31.23 and support services staff providing direct services to students. 31.24 (d) "Average daily membership" has the meaning given it in 31.25 section 126C.05. 31.26 (e) "Program growth factor" means 1.0121.123 for fiscal 31.27 year 2002, and 1.062 for fiscal year 2003 and later. 31.28 Sec. 12. Minnesota Statutes 1999 Supplement, section 31.29 125A.76, subdivision 2, is amended to read: 31.30 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 31.31 education base revenue equals the sum of the following amounts 31.32 computed using base year data: 31.33 (1) 68 percent of the salary of each essential person 31.34 employed in the district's program for children with a 31.35 disability during the fiscal year, not including the share of 31.36 salaries for personnel providing health-related services counted 32.1 in clause (8), whether the person is employed by one or more 32.2 districts or a Minnesota correctional facility operating on a 32.3 fee-for-service basis; 32.4 (2) for the Minnesota state academy for the deaf or the 32.5 Minnesota state academy for the blind, 68 percent of the salary 32.6 of each instructional aide assigned to a child attending the 32.7 academy, if that aide is required by the child's individual 32.8 education plan; 32.9 (3) for special instruction and services provided to any 32.10 pupil by contracting with public, private, or voluntary agencies 32.11 other than school districts, in place of special instruction and 32.12 services provided by the district, 52 percent of the difference 32.13 between the amount of the contract and the basic revenue of the 32.14 district for that pupil for the fraction of the school day the 32.15 pupil receives services under the contract; 32.16 (4) for special instruction and services provided to any 32.17 pupil by contracting for services with public, private, or 32.18 voluntary agencies other than school districts, that are 32.19 supplementary to a full educational program provided by the 32.20 school district, 52 percent of the amount of the contract for 32.21 that pupil; 32.22 (5) for supplies and equipment purchased or rented for use 32.23 in the instruction of children with a disability, not including 32.24 the portion of the expenses for supplies and equipment used to 32.25 provide health-related services counted in clause (8), an amount 32.26 equal to 47 percent of the sum actually expended by the 32.27 district, or a Minnesota correctional facility operating on a 32.28 fee-for-service basis, but not to exceed an average of $47 in 32.29 any one school year for each child with a disability receiving 32.30 instruction; 32.31 (6) for fiscal years 1997 and later, special education base 32.32 revenue shall include amounts under clauses (1) to (5) for 32.33 special education summer programs provided during the base year 32.34 for that fiscal year; and 32.35 (7) for fiscal years 1999 and later, the cost of providing 32.36 transportation services for children with disabilities under 33.1 section 123B.92, subdivision 1, paragraph (b), clause (4) ; and33.2 (8) for fiscal years 2001 and later, the cost of salaries,33.3 supplies and equipment, and other related costs actually33.4 expended by the district for the nonfederal share of medical33.5 assistance services according to section 256B.0625, subdivision33.6 26. 33.7 The department shall establish procedures through the 33.8 Uniform Financial Accounting and Reporting System to identify 33.9 and track all revenues generated from third-party billings as 33.10 special education revenue at the school district level; include 33.11 revenue generated from third-party billings as special education 33.12 revenue in the annual cross subsidy report; and exclude 33.13 third-party revenue from calculation of excess cost aid to the 33.14 districts. 33.15 (b) If requested by a school district operating a special 33.16 education program during the base year for less than the full 33.17 fiscal year, or a school district in which is located a 33.18 Minnesota correctional facility operating on a fee-for-service 33.19 basis for less than the full fiscal year, the commissioner may 33.20 adjust the base revenue to reflect the expenditures that would 33.21 have occurred during the base year had the program been operated 33.22 for the full fiscal year. 33.23 (c) Notwithstanding paragraphs (a) and (b), the portion of 33.24 a school district's base revenue attributable to a Minnesota 33.25 correctional facility operating on a fee-for-service basis 33.26 during the facility's first year of operating on a 33.27 fee-for-service basis shall be computed using current year data. 33.28 Sec. 13. Minnesota Statutes 1999 Supplement, section 33.29 125A.79, subdivision 1, is amended to read: 33.30 Subdivision 1. [DEFINITIONS.] For the purposes of this 33.31 section, the definitions in this subdivision apply. 33.32 (a) "Unreimbursed special education cost" means the sum of 33.33 the following: 33.34 (1) expenditures for teachers' salaries, contracted 33.35 services, supplies, equipment, and transportation services 33.36 eligible for revenue under section 125A.76; plus 34.1 (2) expenditures for tuition bills received under sections 34.2 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 34.3 under sections 125A.76, subdivision 2, and 124.3202, subdivision 34.4 1; minus 34.5 (3) revenue for teachers' salaries, contracted services, 34.6 supplies, and equipment under sections 124.3202 and 124A.76; 34.7 minus 34.8 (4) tuition receipts under sections 125A.03 to 125A.24 and 34.9 125A.65 for services eligible for revenue under sections 34.10 124.3202, subdivision 1, and 124A.76, subdivision 2. 34.11 (b) "General revenue" means for fiscal year 1996, the sum 34.12 of the general education revenue according to section 126C.10, 34.13 subdivision 1, as adjusted according to section 127A.47, 34.14 subdivision 7, plus the total referendum revenue according to 34.15 section 126C.17, subdivision 4. For fiscal years 1997 and 34.16 later, "general revenue" means the sum of the general education 34.17 revenue according to section 126C.10, subdivision 1, as adjusted 34.18 according to section 127A.47, subdivisions 7 and 8, plus the 34.19 total referendum revenue minus transportation sparsity revenue 34.20 minus total operating capital revenue. For fiscal year 2001 34.21 only, "general revenue" means the sum of the general education 34.22 revenue according to section 126C.10, subdivision 1, as adjusted 34.23 according to section 127A.47, subdivisions 7 and 8, plus the 34.24 total referendum revenue minus transportation sparsity revenue 34.25 minus total operating capital revenue minus training and 34.26 experience adjustment revenue. 34.27 (c) "Average daily membership" has the meaning given it in 34.28 section 126C.05. 34.29 (d) "Program growth factor" means 1.044 for fiscal year 34.30 2002 and 1.02 for fiscal year 2003 and later. 34.31 Sec. 14. Minnesota Statutes 1999 Supplement, section 34.32 125A.79, subdivision 2, is amended to read: 34.33 Subd. 2. [EXCESS COST AID, FISCAL YEARS 2000 AND 2001.] 34.34 For fiscal years 2000 and 2001, a district's special education 34.35 excess cost aid equals the greatest of: 34.36 (a) 75 percent of the difference between (1) the district's 35.1 unreimbursed special education cost and (2) 4.44.37 percent of 35.2 the district's general revenue; 35.3 (b) 70 percent of the difference between (1) the increase 35.4 in the district's unreimbursed special education cost between 35.5 the base year as defined in section 125A.76, subdivision 1, and 35.6 the current year and (2) 1.6 percent of the district's general 35.7 revenue; or 35.8 (c) zero. 35.9 Sec. 15. Minnesota Statutes 1999 Supplement, section 35.10 125A.79, subdivision 5, is amended to read: 35.11 Subd. 5. [INITIAL EXCESS COST AID.] For fiscal years 2002 35.12 and later, a district's initial excess cost aid equals the 35.13 greatest of: 35.14 (1) 75 percent of the difference between (i) the district's 35.15 unreimbursed special education cost and (ii) 4.44.7 percent of 35.16 the district's general revenue; 35.17 (2) 70 percent of the difference between (i) the increase 35.18 in the district's unreimbursed special education cost between 35.19 the base year as defined in section 125A.76, subdivision 1, and 35.20 the current year and (ii) 1.6 percent of the district's general 35.21 revenue; or 35.22 (3) zero. 35.23 Sec. 16. Minnesota Statutes 1999 Supplement, section 35.24 126C.44, is amended to read: 35.25 126C.44 [CRIME-RELATED COSTS LEVY.] 35.26 Each district may make a levy on all taxable property 35.27 located within the district for the purposes specified in this 35.28 subdivisionsection. The maximum amount which may be levied for 35.29 all costs under this subdivisionsection shall be equal to 35.30 $1.50$14.75 multiplied by the population of the school district35.31 district's adjusted marginal cost pupil units for the school 35.32 year. For purposes of this subdivision, "population" of the35.33 school district means the same as contained in section 2188.8.131.52 The proceeds of the levy must be used for directly funding the 35.35 following purposes or for reimbursing the cities and counties 35.36 who contract with the district for the following purposes: (1) 36.1 to pay the costs incurred for the salaries, benefits, and 36.2 transportation costs of peace officers and sheriffs for liaison 36.3 in services in the district's middle and secondaryschools; (2) 36.4 to pay the costs for a drug abuse prevention program as defined 36.5 in Minnesota Statutes 1991 Supplement, section 609.101, 36.6 subdivision 3, paragraph (f), in the elementary schools; (3) to 36.7 pay the costs for a gang resistance education training 36.8 curriculum in the middledistrict's schools; or(4) to pay the 36.9 costs for security in the districts' schools and on school 36.10 property; or (5) to pay the costs for other crime prevention 36.11 and, drug abuse, student and staff safety, and violence 36.12 prevention measures taken by the school district. The district 36.13 must initially attempt to contract for services to be provided 36.14 by peace officers or sheriffs with the police department of each 36.15 city or the sheriff's department of the county within the 36.16 district containing the school receiving the services. If a 36.17 local police department or a county sheriff's department does 36.18 not wish to provide the necessary services, the district may 36.19 contract for these services with any other police or sheriff's 36.20 department located entirely or partially within the school 36.21 district's boundaries. The levy authorized under 36.22 this subdivisionsection is not included in determining the 36.23 school district's levy limitations. 36.24 EFFECTIVE DATE: This section is effective July 1, 2000, 36.25 for levies for taxes payable in 2001 and later. 36.26 Sec. 17. Minnesota Statutes 1999 Supplement, section 36.27 127A.42, subdivision 3, is amended to read: 36.28 Subd. 3. [ASSURANCE OF COMPLIANCE.] (a) After consultation 36.29 with the commissioner of human rights, the commissioner of 36.30 children, families, and learning shall adopt rules in 36.31 conformance with chapter 14. The rules must direct districts to 36.32 file with the commissioner of children, families, and learning 36.33 assurances of compliance with state and federal laws prohibiting 36.34 discrimination and specify the information required to be36.35 submitted in support of the assurances. The commissioner shall36.36 provide copies of the assurances and the supportive information37.1 to the commissioner of human rightsThe assurances must be 37.2 provided in a form and manner prescribed by the commissioner. 37.3 (b) If , after reviewing the assurances and the supportive37.4 informationit appears that one or more violations of the 37.5 Minnesota Human Rights Act are occurring in thea district, the 37.6 commissioner of human rights shall notify the commissioner of 37.7 the violations, and the commissioner of children, families, and 37.8 learning may then proceed pursuant to subdivision 4. 37.9 Sec. 18. Laws 1999, chapter 241, article 2, section 60, 37.10 subdivision 7, is amended to read: 37.11 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 37.12 school aid according to Minnesota Statutes, section 124D.83: 37.13 $2,706,000$1,671,000 ..... 2000 37.14 $2,790,000$1,882,000 ..... 2001 37.15 The 2000 appropriation includes $283,000 for 1999 and 37.16 $2,423,000$1,388,000 for 2000. 37.17 The 2001 appropriation includes $269,000$154,000 for 2000 37.18 and $2,521,000$1,728,000 for 2001. 37.19 Sec. 19. Laws 1999, chapter 241, article 2, section 60, 37.20 subdivision 9, is amended to read: 37.21 Subd. 9. [MAGNET SCHOOL GRANTS.] For magnet school and 37.22 program grants under Laws 1994, chapter 647, article 8, section 37.23 38: 37.24 $1,750,000 ..... 2000 37.25 $1,750,000 ..... 2001 37.26 These amounts may be used for magnet school programs 37.27 according to Minnesota Statutes, section 124D.88. The budget 37.28 base for this program for fiscal year 2003 and each year 37.29 thereafter is $1,050,000. 37.30 Sec. 20. Laws 1999, chapter 241, article 2, section 60, 37.31 subdivision 12, is amended to read: 37.32 Subd. 12. [AID FOR CHILDREN WITH A DISABILITY.] For aid 37.33 according to Minnesota Statutes, section 125A.75, subdivision 3, 37.34 for children with a disability placed in residential facilities 37.35 within the district boundaries for whom no district of residence 37.36 can be determined: 38.1 $ 443,000$ 433,000 ..... 2000 38.2 $1,064,000$4,263,000 ..... 2001 38.3 If the appropriation for either year is insufficient, the 38.4 appropriation for the other year is available. Any balance in 38.5 the first year does not cancel but is available in the second 38.6 year. 38.7 Sec. 21. Laws 1999, chapter 241, article 2, section 60, 38.8 subdivision 13, is amended to read: 38.9 Subd. 13. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 38.10 teacher travel for home-based services according to Minnesota 38.11 Statutes, section 125A.75, subdivision 1: 38.12 $133,000$125,000 ..... 2000 38.13 $139,000$130,000 ..... 2001 38.14 The 2000 appropriation includes $11,000 for 1999 and 38.15 $122,000$114,000 for 2000. 38.16 The 2001 appropriation includes $13,000 for 2000 and 38.17 $126,000$117,000 for 2001. 38.18 Sec. 22. Laws 1999, chapter 241, article 2, section 60, 38.19 subdivision 14, is amended to read: 38.20 Subd. 14. [SPECIAL EDUCATION EXCESS COST AID.] For excess 38.21 cost aid: 38.22 $60,498,000$66,032,000 ..... 2000 38.23 $79,405,000$89,072,000 ..... 2001 38.24 The 2000 appropriation includes $4,693,000 for 1999 and 38.25 $55,805,000$61,339,000 for 2000. 38.26 The 2001 appropriation includes $6,200,000$6,815,000 for 38.27 2000 and $73,205,000$82,257,000 for 2001. 38.28 Sec. 23. Laws 1999, chapter 241, article 2, section 60, 38.29 subdivision 17, is amended to read: 38.30 Subd. 17. [INTEGRATION AID.] For integration aid: 38.31 $37,182,000$37,610,000 ..... 2000 38.32 $43,787,000$55,828,000 ..... 2001 38.33 The 2000 appropriation includes $2,902,000 for 1999 and 38.34 $34,280,000$34,708,000 for 2000. 38.35 The 2001 appropriation includes $3,809,000$3,856,000 for 38.36 2000 and $39,978,000$51,972,000 for 2001. 39.1 Sec. 24. Laws 1999, chapter 241, article 2, section 60, 39.2 subdivision 19, is amended to read: 39.3 Subd. 19. [INTERDISTRICT DESEGREGATION OR INTEGRATION 39.4 TRANSPORTATION AID.] (a) For interdistrict desegregation or 39.5 integration transportation aid under Minnesota Statutes, section 39.6 124D.87: 39.7 $970,000 ..... 2000 39.8 $970,000 ..... 2001 39.9 Any balance in the first year does not cancel but is 39.10 available in the second year. 39.11 (b) The budget base for this program for fiscal year 2002 39.12 is $500,000. This amount may be spent for interdistrict 39.13 desegregation or integration transportation aid. For fiscal 39.14 year 2003 and later, the budget base for this program is the 39.15 forecasted cost of fully reimbursing districts according to 39.16 Minnesota Statutes, section 124D.87. 39.17 Sec. 25. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 39.18 For fiscal year 2000, a school district shall receive an 39.19 amount of revenue equal to $15 times the district's adjusted 39.20 marginal cost pupil units. For fiscal year 2001, a school 39.21 district shall receive an amount of revenue equal to $35 times 39.22 the district's adjusted marginal cost pupil units. Special 39.23 education cross-subsidy revenue must be used to pay for a 39.24 district's unfunded special education costs that are currently 39.25 cross-subsidized by a district's general education revenue. 39.26 Sec. 26. [STUDY.] 39.27 The commissioner of children, families, and learning shall 39.28 contract with a qualified expert to determine and report the 39.29 number and overall incidence rate of Minnesota school children, 39.30 by district, age, grade level, gender, and race, diagnosed with 39.31 attention deficit disorder (ADD) or attention deficit 39.32 hyperactivity disorder (ADHD) currently taking amphetamine 39.33 prescription drugs such as Ritalin. In preparing the report, 39.34 the contractor also must determine the number and overall 39.35 incidence rate of students not identified with ADD or ADHD 39.36 currently taking amphetamine prescription drugs such as 40.1 Ritalin. The commissioner, the commissioner's designee, and 40.2 school districts must comply with Minnesota Statutes, chapter 40.3 13, when gathering data for this report. The commissioner must 40.4 submit the report and any recommendations to the education 40.5 committees of the legislature by February 15, 2001. 40.6 Sec. 27. [RESOLUTION.] 40.7 Be it resolved by the legislature of the state of 40.8 Minnesota, that it supports governor Jesse Ventura's efforts to 40.9 have Congress speedily enact legislation to fund at least 40 40.10 percent of the cost of special education services provided as a 40.11 result of the federal mandate to provide a free and appropriate 40.12 public education for students with disabilities. The state 40.13 finds that the federal requirements impede the ability of the 40.14 state and school districts to adequately fund kindergarten 40.15 through grade 12 education for all students. 40.16 Sec. 28. [APPROPRIATIONS.] 40.17 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 40.18 LEARNING.] The sums indicated in this section are appropriated 40.19 from the general fund to the department of children, families, 40.20 and learning for the fiscal years designated. 40.21 Subd. 2. [LITTLE FALLS; REVENUE REIMBURSEMENT.] For 40.22 independent school district No. 482, Little Falls, for partial 40.23 reimbursement of revenue returned to the state as a result of a 40.24 finding that the district had over-counted kindergarten pupils 40.25 in earlier years: 40.26 $300,000 ..... 2000 40.27 Revenue appropriated to the district under this subdivision 40.28 must be used for all-day kindergarten services and must be 40.29 matched by fees collected from parents by the district for 40.30 providing all-day kindergarten services. 40.31 Subd. 3. [NORTHLAND LEARNING CENTER.] For a grant to the 40.32 Northland joint powers board for start-up costs associated with 40.33 the delay of special education funding for the Northland 40.34 learning center: 40.35 $200,000 ..... 2001 40.36 Subd. 4. [MAGNET SCHOOL START-UP AID.] For magnet school 41.1 start-up aid under Minnesota Statutes, section 124D.88: 41.2 $250,000 ..... 2001 41.3 Subd. 5. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 41.4 special education cross-subsidy revenue: 41.5 $14,537,000 ..... 2000 41.6 $33,829,000 ..... 2001 41.7 Subd. 6. [STUDY.] For a report on the number and overall 41.8 incident rate of Minnesota school children diagnosed with 41.9 attention deficit disorder or attention deficit hyperactivity 41.10 disorder: 41.11 $40,000 ..... 2001 41.12 Subd. 7. [GRANT TO INDEPENDENT SCHOOL DISTRICT NO. 707, 41.13 NETT LAKE.] For a grant to independent school district No. 707, 41.14 Nett Lake, to pay obligations of the school district for 41.15 unemployment compensation. The appropriation must be paid to 41.16 the appropriate state agency for such purposes in the name of 41.17 the school district: 41.18 $ 30,000 ..... 2001 41.19 Sec. 29. [REPEALER.] 41.20 Minnesota Rules, part 3535.9920, is repealed. 41.21 ARTICLE 3 41.22 EMPLOYMENT AND OTHER TRANSITIONS 41.23 Section 1. Minnesota Statutes 1998, section 124D.44, is 41.24 amended to read: 41.25 124D.44 [MATCH REQUIREMENTS.] 41.26 Youth works grant funds must be used for the living 41.27 allowance, cost of employer taxes under sections 3111 and 3301 41.28 of the Internal Revenue Code of 1986, workers' compensation 41.29 coverage, andhealth benefits for each program participant, and 41.30 administrative expenses, which must not exceed five percent of 41.31 total program costs. Youthworks grant funds may also be used to 41.32 supplement applicant resources to fund postservice benefits for 41.33 program participants. Applicant resources, from sources and in 41.34 a form determined by the commission and, beginning January 1,41.35 1997, the council, must be used to provide for all other program 41.36 costs, including the portion of the applicant's obligation for 42.1 postservice benefits that is not covered by state or federal 42.2 grant funds and such costs as supplies, materials, 42.3 transportation, and salaries and benefits of those staff 42.4 directly involved in the operation, internal monitoring, and 42.5 evaluation of the program. Administrative expenses must not42.6 exceed five percent of total program costs.42.7 Sec. 2. Minnesota Statutes 1998, section 124D.454, 42.8 subdivision 4, is amended to read: 42.9 Subd. 4. [ADJUSTED SECONDARY42.10 VOCATIONAL-DISABLEDTRANSITION-DISABLED BASE REVENUE.] For 42.11 fiscal year 1996 and later, a district's adjusted secondary42.12 vocational-disabledtransition-disabled base revenue equals the 42.13 district's secondary vocational-disabledtransition-disabled 42.14 base revenue times the ratio of the district's average daily 42.15 membership for the current school year to the district's average 42.16 daily membership for the base year. 42.17 Sec. 3. Minnesota Statutes 1998, section 124D.454, 42.18 subdivision 6, is amended to read: 42.19 Subd. 6. [SCHOOL DISTRICT SECONDARY42.20 VOCATIONAL-DISABLEDTRANSITION-DISABLED REVENUE.] (a) A school 42.21 district's secondary vocational-disabledtransition-disabled 42.22 revenue for fiscal year 1996 and later equals the state 42.23 total secondary vocational-disabledtransition-disabled revenue, 42.24 minus the amount determined under paragraph (b), times the ratio 42.25 of the district's adjusted secondary42.26 vocational-disabledtransition-disabled base revenue to the 42.27 state total adjusted secondary42.28 vocational-disabledtransition-disabled base revenue. 42.29 (b) Notwithstanding paragraph (a), if the secondary42.30 vocational-disabledtransition-disabled base revenue for a 42.31 district equals zero and no district residents were enrolled 42.32 in secondary vocational-disabledtransition-disabled programs 42.33 during the base year, the secondary42.34 vocational-disabledtransition-disabled revenue equals the 42.35 amount computed according to subdivision 3 using current year 42.36 data. 43.1 Sec. 4. Minnesota Statutes 1998, section 124D.454, 43.2 subdivision 7, is amended to read: 43.3 Subd. 7. [SCHOOL DISTRICT SECONDARY43.4 VOCATIONAL-DISABLEDTRANSITION-DISABLED AID.] A school 43.5 district's secondary vocational-disabledtransition-disabled aid 43.6 for fiscal year 1996 and later equals the district's secondary43.7 vocational-disabledtransition-disabled revenue times the aid 43.8 percentage factor for that year. 43.9 Sec. 5. Laws 1997, chapter 157, section 71, as amended by 43.10 Laws 1998, chapter 398, article 3, section 11, is amended to 43.11 read: 43.12 Sec. 71. [SCHOOL BANK PILOT PROJECTBANKS.] 43.13 (a) A school bank sponsored by independent school district 43.14 No. 31, Bemidji, independent school district No. 316, 43.15 Greenway-Coleraine, independent school district No. 2170, 43.16 Staples-Motley, or by independent school district No. 508, St. 43.17 Peter, that meets all requirements of paragraph (b) is not 43.18 subject to Minnesota Statutes, section 47.03, subdivision 1, or 43.19 to any other statute or rule that regulates banks, other 43.20 financial institutions, or currency exchanges. 43.21 (b) To qualify under paragraph (a), the school bank must: 43.22 (1) be operated as part of a high school educational 43.23 program and under guidelines adopted by the school board; 43.24 (2) be advised on a regular basis by one or more 43.25 state-chartered or federally-chartered financial institutions, 43.26 but not owned or operated by any financial institution; 43.27 (3) be located on school premises and have as customers 43.28 only students enrolled in, or employees of, the school in which 43.29 it is located; and 43.30 (4) have a written commitment from the school board, 43.31 guaranteeing reimbursement of any depositor's funds lost due to 43.32 insolvency of the school bank. 43.33 (c) Funds of a school bank that meets the requirements of 43.34 this section are not school district or other public funds for 43.35 purposes of any state law governing the use or investment of 43.36 school district or other public funds. 44.1 (d) The school district shall annually file with the 44.2 commissioner of commerce a report, prepared by the students and 44.3 teachers involved, summarizing the operation of the school bank. 44.4 (e) This section expires June 30, 2000. The commissioner44.5 of commerce shall, no later than December 15, 1999, provide a44.6 written report to the legislature regarding this pilot project44.7 and any recommended legislation regarding school banks.44.8 EFFECTIVE DATE: This section is effective the day 44.9 following final enactment. 44.10 Sec. 6. Laws 1999, chapter 241, article 3, section 3, 44.11 subdivision 2, is amended to read: 44.12 Subd. 2. [SECONDARY VOCATIONAL EDUCATION AID.] For 44.13 secondary vocational education aid according to Minnesota 44.14 Statutes, section 124D.453: 44.15 $11,335,000$12,413,000 ..... 2000 44.16 $1,130,000$ 1,250,000 ..... 2001 44.17 The 2000 appropriation includes $1,159,000 for 1999 and 44.18 $10,176,000$11,254,000 for 2000. The 2001 appropriation 44.19 includes $1,130,000$1,250,000 for 2000. 44.20 EFFECTIVE DATE: This section is effective the day 44.21 following final enactment. 44.22 Sec. 7. Laws 1999, chapter 241, article 3, section 3, 44.23 subdivision 4, is amended to read: 44.24 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 44.25 GRANTS.] For education and employment transitions programming 44.26 under Minnesota Statutes, section 124D.46: 44.27 $3,225,000 ..... 2000 44.28 $3,225,000 ..... 2001 44.29 $200,000 each year is for the development and 44.30 implementation of the ISEEK Internet-based education and 44.31 employment information system. 44.32 $1,000,000 each year is for an employer rebate program for 44.33 qualifying employers who offer youth internships to educators. 44.34 $500,000 each year is for youth entrepreneurship grants. 44.35 $750,000 each year is for youth apprenticeship grants. 44.36 $300,000 each year is for grants to programs in cities of 45.1 the first class to expand the number of at-risk students 45.2 participating in school-to-work projects. 45.3 $350,000 each year is for agricultural school-to-work 45.4 grants. 45.5 $125,000 each year is to conduct a high school follow-up 45.6 survey to include first, third, and sixth year graduates of 45.7 Minnesota schools. 45.8 Any balance in the first year does not cancel but is 45.9 available in the second year. 45.10 ARTICLE 4 45.11 FACILITIES AND TECHNOLOGY 45.12 Section 1. Minnesota Statutes 1998, section 123B.51, 45.13 subdivision 6, is amended to read: 45.14 Subd. 6. [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 45.15 the sale or exchange of school buildings or real property of the 45.16 district must be used as provided in this subdivision. 45.17 (b) In districts with outstanding bonds, the proceeds of 45.18 the sale or exchange shall first be deposited in the debt 45.19 retirement fund of the district in an amount sufficient to meet 45.20 when due that percentage of the principal and interest payments 45.21 for outstanding bonds which is ascribable to the payment of 45.22 expenses necessary and incidental to the construction or 45.23 purchase of the particular building or property which is sold. 45.24 (c) After satisfying the requirements of paragraph (b), a 45.25 district with outstanding bonds may deposit proceeds of the sale 45.26 or exchange in its capital expenditure fundgeneral fund 45.27 reserved for operating capital account if the amount deposited 45.28 is used for the following: 45.29 (1) for expenditures for the cleanup of polychlorinated 45.30 biphenyls, if the method for cleanup is approved by the 45.31 department; 45.32 (2) for capital expenditures for the betterment, as defined 45.33 in section 475.51, subdivision 8, of district-owned school 45.34 buildings; or 45.35 (3) to replace the building or property sold. 45.36 (d) In a district with outstanding bonds, the amount of the 46.1 proceeds of the sale or exchange remaining after the application 46.2 of paragraphs (b) and (c), which is sufficient to meet when due 46.3 that percentage of the principal and interest payments for the 46.4 district's outstanding bonds which is not governed by paragraph 46.5 (b), shall be deposited in the debt retirement fund. 46.6 (e) Any proceeds of the sale or exchange remaining in 46.7 districts with outstanding bonds after the application of 46.8 paragraphs (b), (c), and (d), and all proceeds of the sale or 46.9 exchange in districts without outstanding bonds shall be 46.10 deposited in the capital expendituregeneral fund reserved for 46.11 operating capital account of the district. 46.12 (f) Notwithstanding paragraphs (c) and (d), a district with 46.13 outstanding bonds may deposit in its capital expendituregeneral 46.14 fund reserved for operating capital account and use for any 46.15 lawful operating capital expenditure without the reduction of 46.16 any levy limitation the same percentage of the proceeds of the 46.17 sale or exchange of a building or property as the percentage of 46.18 the initial cost of purchasing or constructing the building or 46.19 property which was paid using revenue from the capital46.20 expendituregeneral fund reserved for operating capital account. 46.21 Sec. 2. Minnesota Statutes 1998, section 123B.53, as 46.22 amended by Laws 1999, chapter 241, is amended to read: 46.23 123B.53 [ DEBT SERVICEFACILITIES EQUALIZATION PROGRAM.] 46.24 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 46.25 section, the eligible debt servicefacilities revenue of a 46.26 district is defined as follows: 46.27 (1) the amount needed to produce between five and six 46.28 percent in excess of the amount needed to meet when due the 46.29 principal and interest payments on the obligations of the 46.30 district for eligible projects according to subdivision 2, 46.31 including the amounts necessary for repayment of energy loans 46.32 according to section 216C.37 or sections 298.292 to 298.29846.33 126C.40, subdivision 5, debt service loans and capital loans, 46.34 lease purchase payments under section 126C.40, subdivision 246.35 subdivisions 2 and 6; Laws 1995, First Special Session chapter 46.36 3, article 5, section 19; and Laws 1997, First Special Session 47.1 chapter 4, article 4, section 30, alternative facilities levies47.2 revenue under section 123B.59, subdivision 5; health and safety 47.3 revenue, under section 123B.57, subdivision 3; handicapped 47.4 access and fire safety revenue, under section 123B.58, 47.5 subdivision 3; building construction and lease revenue, under 47.6 section 123B.63, subdivision 3; building lease revenue, under 47.7 section 126C.40, subdivision 1; and cooperative building repair 47.8 revenue, under section 126C.40, subdivision 3, minus 47.9 (2) the amount of debt service excess levy reduction for 47.10 that school year calculated according to the procedure 47.11 established by the commissioner. 47.12 (b) The obligations in this paragraph are excluded from 47.13 eligible debt servicefacilities revenue: 47.14 (1) obligations under section 123B.61; 47.15 (2) the part of debt service principal and interest paid 47.16 from the taconite environmental protection fund or northeast 47.17 Minnesota economic protection trust; 47.18 (3) obligations issued under Laws 1991, chapter 265, 47.19 article 5, section 18, as amended by Laws 1992, chapter 499, 47.20 article 5, section 24; and 47.21 (4) obligations under section 123B.62. 47.22 (c) For purposes of this section, if a preexisting school 47.23 district reorganized under sections 123A.35 to 123A.43, 123A.46, 47.24 and 123A.48 is solely responsible for retirement of the 47.25 preexisting district's bonded indebtedness, capital loans or 47.26 debt service loans, debt servicefacilities equalization aid 47.27 must be computed separately for each of the preexisting 47.28 districts. 47.29 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 47.30 district's debt service levyfacilities revenue qualify for debt47.31 servicefacilities equalization: 47.32 (1) debt service for repayment of principal and interest on 47.33 bonds issued before July 2, 1992; 47.34 (2) debt service for bonds refinanced after July 1, 1992, 47.35 if the bond schedule has been approved by the commissioner and, 47.36 if necessary, adjusted to reflect a 20-year maturity schedule; 48.1 and48.2 (3) debt service for bonds issued after July 1, 1992, for 48.3 construction projects that have received a positive review and 48.4 comment according to section 123B.71, if the commissioner has 48.5 determined that the district has met the criteria under section 48.6 126C.69, subdivision 3, except section 126C.69, subdivision 3, 48.7 paragraph (a), clause (2), and if the bond schedule has been 48.8 approved by the commissioner and, if necessary, adjusted to 48.9 reflect a 20-year maturity schedule; 48.10 (4) alternative facilities revenue, according to section 48.11 123B.59, subdivision 5; 48.12 (5) health and safety revenue, according to section 48.13 123B.57, subdivision 3; 48.14 (6) handicapped access and fire safety revenue, according 48.15 to section 123B.58, subdivision 3; 48.16 (7) building construction and lease revenue, according to 48.17 section 123B.63, subdivision 3; 48.18 (8) building lease revenue, according to section 126C.40, 48.19 subdivision 1; and 48.20 (9) cooperative building repair revenue, according to 48.21 section 126C.40, subdivision 3. 48.22 (b) The criterion described in section 126C.69, subdivision 48.23 3, paragraph (a), clause (9), does not apply to bonds authorized 48.24 by elections held before July 1, 1992. 48.25 (c) For the purpose of this subdivision the department 48.26 shall determine the eligibility for sparsity at the location of 48.27 the new facility, or the site of the new facility closest to the 48.28 nearest operating school if there is more than one new facility. 48.29 (d) Notwithstanding paragraphs (a) to (c), debt service for 48.30 repayment of principal and interest on bonds issued after July 48.31 1, 1997, doesor leases on buildings do not qualify for debt 48.32 service equalization aid unless the primary purpose of the 48.33 facility is to serve students in kindergarten through grade 12. 48.34 Subd. 3. [NOTIFICATION.] A district eligible for debt48.35 servicefacilities equalization revenue under subdivision 2 must 48.36 notify the commissioner of the amount of its intended debt49.1 servicefacilities equalization revenue calculated under 49.2 subdivision 1 for all bonds sold prior to the notification by 49.3 July 1 of the calendar year the levy is certified. 49.4 Subd. 4. [ DEBT SERVICEFACILITIES EQUALIZATION REVENUE.] 49.5 The debt servicefacilities equalization revenue of a district 49.6 equals the eligible debt servicefacilities equalization revenue 49.7 minus the amount raised by a levy of 1211 percent times the 49.8 adjusted net tax capacity of the district. 49.9 Subd. 5. [EQUALIZED DEBT SERVICEFACILITIES LEVY.] To 49.10 obtain debt servicefacilities equalization revenue, a district 49.11 must levy an amount not to exceed the district's debt service49.12 facilities equalization revenue times the lesser of one or the 49.13 ratio of: 49.14 (1) the quotient derived by dividing the adjusted net tax 49.15 capacity of the district for the year before the year the levy 49.16 is certified by the adjusted pupil units in the district for the 49.17 school year ending in the year prior to the year the levy is 49.18 certified; to 49.19 (2) $4,000$4,210. 49.20 Subd. 6. [ DEBT SERVICEFACILITIES EQUALIZATION AID.] A 49.21 district's debt servicefacilities equalization aid is the 49.22 difference between the debt servicefacilities equalization 49.23 revenue and the equalized debt servicefacilities levy. If a 49.24 district does not levy the entire amount permitted, the 49.25 district's aid must be reduced in proportion to the amount 49.26 levied. 49.27 Subd. 7. [ DEBT SERVICEFACILITIES EQUALIZATION AID PAYMENT 49.28 SCHEDULE.] Debt serviceFacilities equalization aid must be paid 49.29 according to section 127A.45, subdivision 10. 49.30 Subd. 8. [DEBT SERVICE PRIORITY.] Of the amount paid under 49.31 this section, the district must first allocate the amount 49.32 attributable to obligations under chapter 475. Remaining aid 49.33 may be used for other purposes of this section. 49.34 EFFECTIVE DATE: This section is effective for revenue for 49.35 fiscal year 2002 and thereafter. 49.36 Sec. 3. Minnesota Statutes 1999 Supplement, section 50.1 123B.54, is amended to read: 50.2 123B.54 [ DEBT SERVICEFACILITIES EQUALIZATION 50.3 APPROPRIATION.] 50.4 (a) $33,165,000 in fiscal year 2000, $32,057,000 in fiscal 50.5 year 2001, and $31,280,000$44,407,000 in fiscal year 2002 and 50.6 each year thereafter is appropriated from the general fund to 50.7 the commissioner of children, families, and learning for payment 50.8 of debt servicefacilities equalization aid under section 50.9 123B.53. The 2002 appropriation includes $3,201,000 for 2001 50.10 and $29,079,000$41,206,000 for 2002. 50.11 (b) The appropriations in paragraph (a) must be reduced by 50.12 the amount of any money specifically appropriated for the same 50.13 purpose in any year from any state fund. 50.14 Sec. 4. Minnesota Statutes 1998, section 123B.57, 50.15 subdivision 1, is amended to read: 50.16 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive 50.17 health and safety revenue for any fiscal year a district must 50.18 submit to the commissioner an application for aid and levy50.19 revenue by the date determined by the commissioner. The 50.20 application may be for hazardous substance removal, fire and 50.21 life safety code repairs, labor and industry regulated facility 50.22 and equipment violations, and health, safety, and environmental 50.23 management, including indoor air quality management. The 50.24 application must include a health and safety program adopted by 50.25 the school district board. The program must include the 50.26 estimated cost, per building, of the program by fiscal year. 50.27 EFFECTIVE DATE: This section is effective for revenue for 50.28 fiscal year 2002 and thereafter. 50.29 Sec. 5. Minnesota Statutes 1998, section 123B.58, 50.30 subdivision 3, is amended to read: 50.31 Subd. 3. [ LEVY AUTHORITYREVENUE.] The district may levy50.32 is eligible for revenue up to $300,000 under this section, as 50.33 approved by the commissioner. The approved amount may be levied50.34 received over eight or fewer years. 50.35 EFFECTIVE DATE: This section is effective for revenue for 50.36 fiscal year 2002 and thereafter. 51.1 Sec. 6. Minnesota Statutes 1998, section 123B.58, 51.2 subdivision 4, is amended to read: 51.3 Subd. 4. [ LEVY AUTHORITYREVENUE IN COMBINED DISTRICTS.] 51.4 Notwithstanding subdivision 3, a district that has combined or 51.5 consolidated may levyreceive revenue up to 50 percent times 51.6 $300,000 times the number of former districts that operated on 51.7 June 30, 1991, in the area that now makes up the combined or 51.8 consolidated district. The approved amount is reduced by any 51.9 amount levied under subdivision 3 in the consolidated or 51.10 combined district or in the former districts that make up the 51.11 consolidated or combined district. Levy authority under this 51.12 subdivision expires at the same time as levy authority under 51.13 subdivision 3. 51.14 EFFECTIVE DATE: This section is effective for revenue for 51.15 fiscal year 2002 and thereafter. 51.16 Sec. 7. Minnesota Statutes 1998, section 123B.59, as 51.17 amended by Laws 1999, chapter 241, is amended to read: 51.18 123B.59 [ALTERNATIVE FACILITIES BONDING AND LEVYREVENUE 51.19 PROGRAM.] 51.20 Subdivision 1. [TO QUALIFY.] An independent or special 51.21 school district qualifies to participate in the alternative 51.22 facilities bonding and levyrevenue program if the district has: 51.23 (1) more than 66 students per grade; 51.24 (2) over 1,850,000 square feet of space; 51.25 (3) average age of building space is 15 years or older; 51.26 (4) insufficient funds from projected health and safety 51.27 revenue and capital facilities revenue to meet the requirements 51.28 for deferred maintenance, to make accessibility improvements, or 51.29 to make fire, safety, or health repairs; and 51.30 (5) a ten-year facility plan approved by the commissioner 51.31 according to subdivision 2. 51.32 Subd. 2. [TEN-YEAR PLAN.] (a) A qualifying district must 51.33 have a ten-year facility plan approved by the commissioner that 51.34 includes an inventory of projects and costs that would be 51.35 eligible for: 51.36 (1) health and safety revenue; 52.1 (2) disabled access levy; and 52.2 (3) deferred capital expenditures and maintenance projects 52.3 necessary to prevent further erosion of facilities. 52.4 (b) The school district must: 52.5 (1) annually update the plan; 52.6 (2) biennially submit a facility maintenance plan; and 52.7 (3) indicate whether the district will issue bonds to 52.8 finance the plan or levyannually include program revenue under 52.9 the facilities equalization program, under section 123B.53, for 52.10 the costs. 52.11 Subd. 3. [BOND AUTHORIZATION.] A school district, upon 52.12 approval of its board and the commissioner, may issue general 52.13 obligation bonds under this section to finance approved 52.14 facilities plans. Chapter 475, except sections 475.58 and 52.15 475.59, must be complied with. The district may levy under52.16 subdivision 5 for the debt service revenue.The authority to 52.17 issue bonds under this section is in addition to any bonding 52.18 authority authorized by this chapter, or other law. The amount 52.19 of bonding authority authorized under this section must be 52.20 disregarded in calculating the bonding or net debt limits of 52.21 this chapter, or any other law other than section 475.53, 52.22 subdivision 4. 52.23 Subd. 4. [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 52.24 district that participates in the alternative facilities bonding52.25 and levyrevenue program is not eligible to levy and cannot52.26 receive aidfor revenue under sections 123B.57 and 123B.58 for 52.27 any capital projects funded under this section. A district 52.28 may levy and receive aid for health and safetyreceive revenue 52.29 for environmental management costs and health and safety 52.30 regulatory, hazard assessment, record keeping, and maintenance 52.31 programs as defined in section 123A.443123B.57, subdivision 2, 52.32 and approved by the commissioner. 52.33 Subd. 5. [ LEVYREVENUE AUTHORIZED.] A district, after 52.34 local board approval, may levyreceive revenue for costs related 52.35 to an approved facility plan as follows: 52.36 (a) if the district has indicated to the commissioner that 53.1 bonds will be issued, the district may levyreceive revenue for 53.2 the principal and interest payments on outstanding bonds issued 53.3 according to subdivision 3 after reduction for any alternative 53.4 facilities aid receivable under subdivision 6; or 53.5 (b) if the district has indicated to the commissioner that 53.6 the plan will be funded through levy authorized under section 53.7 123B.53, subdivision 5, the district may levy according to the 53.8 schedule approved in the plan after reduction for any 53.9 alternative facilities aid receivable under subdivision 6. 53.10 Subd. 6. [ALTERNATIVE FACILITIES AID.] A district's 53.11 alternative facilities aid is the amount equal to the district's 53.12 annual debt service costs, provided that the amount does not 53.13 exceed the amount certified to be levied for those purposes for 53.14 taxes payable in 1997, or for a district that made a levy under 53.15 subdivision 5, paragraph (b), the lesser of the district's 53.16 annual levy amount, or one-sixth of the amount of levy that it 53.17 certified for that purpose for taxes payable in 1998. 53.18 Subd. 8. [SEPARATE ACCOUNT.] A district must establish a 53.19 separate account under the uniform financial accounting and 53.20 reporting standards (UFARS) for this program. If the district's 53.21 levyrevenue exceeds the necessary interest and principal 53.22 payments and noncapital health and safety costs, the district 53.23 must reserve the revenue to replace future bonding authority, 53.24 prepay bonds authorized under this program, or make payments on 53.25 principal and interest. 53.26 EFFECTIVE DATE: This section is effective for revenue for 53.27 fiscal year 2002 and thereafter. 53.28 Sec. 8. Minnesota Statutes 1998, section 123B.63, 53.29 subdivision 3, is amended to read: 53.30 Subd. 3. [FACILITIES DOWN PAYMENT LEVYREVENUE 53.31 REFERENDUM.] A district may levy the local tax ratereceive 53.32 revenue under the facilities equalization program for the 53.33 purposes of financing the acquisition and betterment of a school 53.34 construction project or to pay for the lease on a new school 53.35 building used primarily for regular kindergarten, elementary, or 53.36 secondary instruction if authorization is approved by a majority 54.1 of the electors voting on the question to provide funds for a54.2 down payment foran approved project. The election must take 54.3 place no more than five years before the estimated date of 54.4 commencement of the project. The referendum must be held on a 54.5 date set by the board. A referendum for a project notreceiving 54.6 a positivean unfavorable review and comment by the commissioner 54.7 under section 123B.71 must be approved by at least 60 percent of 54.8 the voters voting on the question at the election. The 54.9 referendum may be called by the school board and may be held: 54.10 (1) separately, before an election for the issuance of 54.11 obligations for the project under chapter 475; or 54.12 (2) in conjunction with an election for the issuance of 54.13 obligations for the project under chapter 475; or 54.14 (3) notwithstanding section 475.59, as a conjunctive 54.15 question authorizing both the down payment levyrevenue and the 54.16 issuance of obligations for the project under chapter 475. Any 54.17 obligations authorized for a project may be issued within five 54.18 years of the date of the election. 54.19 The ballot must provide a general description of the 54.20 proposed project, state the estimated total cost of the project, 54.21 state whether the project has received a positive or negative54.22 unfavorable review and comment from the commissioner, state the 54.23 maximum amount of the down paymentequalized facility levy as a 54.24 percentage of net tax capacity, state the amount that will be 54.25 raised by that local tax rate in the first year it is to be 54.26 levied, and state the maximum number of years that the levy 54.27 authorization will apply. 54.28 The ballot must contain a textual portion with the 54.29 information required in this section and a question stating 54.30 substantially the following: 54.31 "Shall the down paymentfacility levy proposed by the board 54.32 of .......... School District No. .......... be approved?" 54.33 If approved, the amount provided by the approved local tax 54.34 rate applied to the net tax capacity for the year preceding the 54.35 year the levy is certified may be certified for the number of 54.36 years approved. 55.1 In the event a conjunctive question proposes to authorize 55.2 both the down paymentequalized facilities levy, under section 55.3 123B.53, and the issuance of obligations for the project, 55.4 appropriate language authorizing the issuance of obligations 55.5 must also be included in the question. 55.6 The district must notify the commissioner of the results of 55.7 the referendum. 55.8 EFFECTIVE DATE: This section is effective for revenue for 55.9 fiscal year 2002 and thereafter. 55.10 Sec. 9. Minnesota Statutes 1998, section 123B.63, 55.11 subdivision 4, is amended to read: 55.12 Subd. 4. [EXCESS BUILDING CONSTRUCTION FUND LEVY 55.13 PROCEEDS.] (a) For the purpose of a school construction project, 55.14 any funds remaining in the down payment accountthat are not 55.15 applied to the payment of the costs of the approved project 55.16 before its final completion must be transferred to the 55.17 district's debt redemption fund. 55.18 (b) For the purposes of a leased building, any funds that 55.19 are applied to the payment of the lease at the termination of 55.20 the lease must be transferred to the district's debt redemption 55.21 fund. 55.22 EFFECTIVE DATE: This section is effective for revenue for 55.23 fiscal year 2002 and thereafter. 55.24 Sec. 10. Minnesota Statutes 1998, section 123B.71, 55.25 subdivision 10, is amended to read: 55.26 Subd. 10. [INDOOR AIR QUALITY.] A school board seeking a 55.27 review and comment under this section must submit information 55.28 demonstrating to the commissioner's satisfaction that: 55.29 (1) indoor air quality issues have been considered; and 55.30 (2) the architects and engineers designing the facility 55.31 will have professional liability insurance. 55.32 Plans submitted under subdivisions 3 and 4 for projects to 55.33 be placed in service after July 1, 2002, must demonstrate that: 55.34 (a) the facility's heating, ventilation, and air 55.35 conditioning systems meet or exceed the standards established by 55.36 code; and 56.1 (b) the facility's design will provide the ability for 56.2 monitoring of outdoor airflow and total airflow of ventilation 56.3 systems in new school facilities. 56.4 Sec. 11. Minnesota Statutes 1998, section 123B.72, 56.5 subdivision 3, is amended to read: 56.6 Subd. 3. [CERTIFICATION.] Prior to occupying or 56.7 reoccupying a school facility affected by this section, a school 56.8 board or its designee shall submit a document prepared by a 56.9 system inspector to the building official or to the 56.10 commissioner, verifying that the facility's heating, 56.11 ventilation, and air conditioning system has been installed and 56.12 operates according to design specifications and code, according 56.13 to section 123B.71, subdivision 10, clause (3). A systems 56.14 inspector shall also verify that the facility's design will 56.15 provide the ability for monitoring of outdoor airflow and total 56.16 airflow of ventilation systems in new school facilities and that 56.17 any heating, ventilation, or air conditioning system that is 56.18 installed or modified for a project subject to this section must 56.19 provide a filtration system with a current ASHRAE standard. 56.20 EFFECTIVE DATE: This section is effective on July 1, 2002. 56.21 Sec. 12. [125B.25] [TELECOMMUNICATIONS ACCESS REVENUE.] 56.22 Subdivision 1. [COSTS TO BE SUBMITTED.] A district shall 56.23 submit its outstanding ongoing or recurring telecommunications 56.24 access costs associated with data lines and video links to the 56.25 department of children, families, and learning. Costs of 56.26 telecommunications hardware or equipment must not be included in 56.27 the costs submitted by districts to the department. A district 56.28 may include installation charges associated with new lines or 56.29 upgraded lines, but may not include costs of hardware or 56.30 equipment. 56.31 Subd. 2. [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 56.32 recurring telecommunications access costs submitted to the 56.33 department by each district under this section are limited to 56.34 the operation costs equal to the greater of: 56.35 (1) one data line or video link that relies on a transport 56.36 medium that operates at a minimum speed of 1.544 megabytes per 57.1 second for each elementary school, middle school, or high school 57.2 under section 120A.05, subdivisions 9, 11, and 13; or 57.3 (2) one data line or video link that relies on a transport 57.4 medium that operates at a minimum speed of 1.544 megabytes per 57.5 second for each district. 57.6 (b) A district may include costs associated with 57.7 cooperative arrangements with other post-secondary institutions, 57.8 school districts, and community and regional libraries in its 57.9 geographic region. A district may continue to purchase its 57.10 ongoing or recurring telecommunications access services through 57.11 existing contracts. 57.12 Subd. 3. [E-RATES.] To be eligible for revenue under this 57.13 section, a district is required to file an e-rate application 57.14 either separately or through their telecommunications grant 57.15 cluster. Discounts received on telecommunications expenditures 57.16 shall be used to offset the amount submitted to the department 57.17 for per pupil revenue under this section. 57.18 Subd. 4. [CALCULATION OF COSTS.] By February 15 of each 57.19 year, the commissioner shall calculate the ongoing or recurring 57.20 telecommunications access cost per adjusted marginal cost pupil 57.21 unit submitted by each school district under subdivisions 1 and 57.22 2 for the year in which the data is submitted minus the reserved 57.23 revenue under section 126C.10, subdivision 13, paragraph (d). 57.24 Districts shall submit their anticipated ongoing or recurring 57.25 telecommunications access costs, adjusted for any e-rate revenue 57.26 received to the department based on contracts entered into by 57.27 the district for that school year. Districts shall also submit 57.28 their actual telecommunications access costs by August 15 of 57.29 each year and adjusted for any e-rate revenue received to the 57.30 department as prescribed by the commissioner. 57.31 Subd. 5. [DISTRICT REVENUE.] A district shall receive an 57.32 amount equal to the amount as calculated by the commissioner 57.33 under subdivision 4, times the adjusted marginal cost pupil 57.34 units for that year, times 80 percent. 57.35 Subd. 6. [REVENUE FOR CHARTER SCHOOLS.] Each charter 57.36 school shall receive revenue equal to the greater of: 58.1 (1) the per marginal cost pupil unit amount for the 58.2 district in which the charter school is located as determined by 58.3 the commissioner according to subdivision 4; or 58.4 (2) $5; 58.5 times the adjusted marginal cost pupil units for that year, 58.6 times 80 percent. 58.7 Subd. 7. [REVENUE FOR NONPUBLIC SCHOOLS.] Notwithstanding 58.8 any other law to the contrary, each nonpublic school, not 58.9 including home schools, shall receive an amount equal to the 58.10 greater of: 58.11 (1) the per marginal cost pupil unit amount for the 58.12 district in which the nonpublic school is located as determined 58.13 by the commissioner according to subdivision 4; or 58.14 (2) $5; 58.15 times the number of pupils who are enrolled at the nonpublic 58.16 school as of October 1 of the current school year. 58.17 Subd. 8. [REIMBURSEMENT CRITERIA.] The commissioner, 58.18 working with the commissioner of administration and the 58.19 Minnesota education telecommunications council, shall develop 58.20 reimbursement criteria that schools must address when submitting 58.21 ongoing or recurring telecommunications costs as determined in 58.22 subdivisions 1 and 2. The criteria must assist schools to 58.23 procure telecommunications access services in the most efficient 58.24 and effective manner possible. The criteria may also determine 58.25 if a district is able to seek a lesser cost alternative for its 58.26 geographical area and the commissioner of children, families, 58.27 and learning shall use that information to adjust the 58.28 reimbursement amount to the district. 58.29 Subd. 9. [EXPIRATION.] This section expires on July 1, 58.30 2003. 58.31 Sec. 13. Minnesota Statutes 1999 Supplement, section 58.32 126C.10, subdivision 13, is amended to read: 58.33 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 58.34 fiscal year 2000 and thereafter, total operating capital revenue 58.35 for a district equals the amount determined under paragraph (b) 58.36 or (c), plus $68$73 times the adjusted marginal cost pupil 59.1 units for the school year. The revenue must be placed in a 59.2 reserved account in the general fund and may only be used 59.3 according to paragraph (d) or subdivision 14. 59.4 (b) For fiscal years 2000 and later, capital revenue for a 59.5 district equals $100 times the district's maintenance cost index 59.6 times its adjusted marginal cost pupil units for the school year. 59.7 (c) For fiscal years 2000 and later, the revenue for a 59.8 district that operates a program under section 124D.128, is 59.9 increased by an amount equal to $30 times the number of marginal 59.10 cost pupil units served at the site where the program is 59.11 implemented. 59.12 (d) For fiscal years 2001, 2002, and 2003, the district 59.13 must reserve an amount equal to $5 per adjusted marginal cost 59.14 pupil unit for telecommunication access costs. Reserve revenue 59.15 under this paragraph must first be used to pay for ongoing or 59.16 recurring telecommunication access costs, including access to 59.17 data lines, video lines, or Internet access. Any revenue 59.18 remaining after covering all ongoing or recurring access costs 59.19 may be used for computer hardware or equipment. 59.20 Sec. 14. Minnesota Statutes 1998, section 126C.40, 59.21 subdivision 1, is amended to read: 59.22 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 59.23 district finds it economically advantageous to rent or lease a 59.24 building or land for any instructional purposes or for school 59.25 storage or furniture repair, and it determines that the 59.26 operating capital revenue authorized under section 126C.10, 59.27 subdivision 13, is insufficient for this purpose, it may apply 59.28 to the commissioner for permission to make an additional capital59.29 expenditure levyincrease its equalized facilities revenue under 59.30 section 123B.53, subdivision 5, for this purpose. An 59.31 application for permission to levy under this subdivision59.32 increase the equalized facilities revenue must contain financial 59.33 justification for the proposed levyincrease, the terms and 59.34 conditions of the proposed lease, and a description of the space 59.35 to be leased and its proposed use. 59.36 (b) The criteria for approval of applications to levy under 60.1 this subdivision must include: the reasonableness of the price, 60.2 the appropriateness of the space to the proposed activity, the 60.3 feasibility of transporting pupils to the leased building or 60.4 land, conformity of the lease to the laws and rules of the state 60.5 of Minnesota, and the appropriateness of the proposed lease to 60.6 the space needs and the financial condition of the district. 60.7 The commissioner must not authorize a levyrevenue under this 60.8 subdivision in an amount greater than the cost to the district 60.9 of renting or leasing a building or land for approved purposes. 60.10 The proceeds of this levy must not be used for custodial or 60.11 other maintenance services. A district may not levyreceive 60.12 revenue under this subdivision for the purpose of leasing or 60.13 renting a district-owned building or site to itself. 60.14 (c) For agreements finalized after July 1, 1997, a district 60.15 may not levyreceive revenue under this subdivision for the 60.16 purpose of leasing: (1) a newly constructed building used 60.17 primarily for regular kindergarten, elementary, or secondary 60.18 instruction; or (2) a newly constructed building addition or 60.19 additions used primarily for regular kindergarten, elementary, 60.20 or secondary instruction that contains more than 20 percent of 60.21 the square footage of the previously existing building. 60.22 (d) The total levyrevenue under this subdivision for a 60.23 district for any year must not exceed $100 times the resident 60.24 pupil units for the fiscal year to which the levy is 60.25 attributable. 60.26 (e) For agreements for which a review and comment have been 60.27 submitted to the department of children, families, and learning 60.28 after April 1, 1998, the term "instructional purpose" as used in 60.29 this subdivision excludes expenditures on stadiums. 60.30 EFFECTIVE DATE: This section is effective for revenue for 60.31 fiscal year 2002 and thereafter. 60.32 Sec. 15. Minnesota Statutes 1998, section 126C.40, 60.33 subdivision 1, is amended to read: 60.34 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 60.35 district finds it economically advantageous to rent or lease a 60.36 building or land for any instructional purposes or for school 61.1 storage or furniture repair, and it determines that the 61.2 operating capital revenue authorized under section 126C.10, 61.3 subdivision 13, is insufficient for this purpose, it may apply 61.4 to the commissioner for permission to make an additional capital 61.5 expenditure levy for this purpose. An application for 61.6 permission to levy under this subdivision must contain financial 61.7 justification for the proposed levy, the terms and conditions of 61.8 the proposed lease, and a description of the space to be leased 61.9 and its proposed use. 61.10 (b) The criteria for approval of applications to levy under 61.11 this subdivision must include: the reasonableness of the price, 61.12 the appropriateness of the space to the proposed activity, the 61.13 feasibility of transporting pupils to the leased building or 61.14 land, conformity of the lease to the laws and rules of the state 61.15 of Minnesota, and the appropriateness of the proposed lease to 61.16 the space needs and the financial condition of the district. 61.17 The commissioner must not authorize a levy under this 61.18 subdivision in an amount greater than the cost to the district 61.19 of renting or leasing a building or land for approved purposes. 61.20 The proceeds of this levy must not be used for custodial or 61.21 other maintenance services. A district may not levy under this 61.22 subdivision for the purpose of leasing or renting a 61.23 district-owned building or site to itself. 61.24 (c) For agreements finalized after July 1, 1997, a district 61.25 may not levy under this subdivision for the purpose of leasing: 61.26 (1) a newly constructed building used primarily for regular 61.27 kindergarten, elementary, or secondary instruction; or (2) a 61.28 newly constructed building addition or additions used primarily 61.29 for regular kindergarten, elementary, or secondary instruction 61.30 that contains more than 20 percent of the square footage of the 61.31 previously existing building. 61.32 (d) Notwithstanding paragraph (b), a district may levy 61.33 under this subdivision for the purpose of leasing or renting a 61.34 district-owned building or site to itself only if the amount is 61.35 needed by the district to make payments required by a lease 61.36 purchase agreement, installment purchase agreement, or other 62.1 deferred payments agreement authorized by law, and the levy 62.2 meets the requirements of paragraph (c). A levy authorized for 62.3 a district by the commissioner under this paragraph may be in 62.4 the amount needed by the district to make payments required by a 62.5 lease purchase agreement, installment purchase agreement, or 62.6 other deferred payments agreement authorized by law, provided 62.7 that any agreement include a provision giving the school 62.8 districts the right to terminate the agreement annually without 62.9 penalty. 62.10 (e) The total levy under this subdivision for a district 62.11 for any year must not exceed $100 times the resident pupil units 62.12 for the fiscal year to which the levy is attributable. 62.13 (e)(f) For agreements for which a review and comment have 62.14 been submitted to the department of children, families, and 62.15 learning after April 1, 1998, the term "instructional purpose" 62.16 as used in this subdivision excludes expenditures on stadiums. 62.17 (g) For purposes of this subdivision, any reference to 62.18 building or land includes personal property. 62.19 (h) The commissioner of children, families, and learning 62.20 may authorize a school district to exceed the limit in paragraph 62.21 (e) if the school district petitions the commissioner for 62.22 approval. The commissioner shall grant approval to a school 62.23 district to exceed the limit in paragraph (e) for not more than 62.24 five years if the district meets the following criteria: 62.25 (1) the school district has been experiencing pupil 62.26 enrollment growth in the preceding five years; 62.27 (2) the purpose of the increased levy is in the long-term 62.28 public interest; 62.29 (3) the purpose of the increased levy promotes colocation 62.30 of government services; and 62.31 (4) the purpose of the increased levy is in the long-term 62.32 interest of the district by avoiding over construction of school 62.33 facilities. 62.34 Sec. 16. Minnesota Statutes 1998, section 126C.40, 62.35 subdivision 2, is amended to read: 62.36 Subd. 2. [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 63.1 A district may annually levyincrease the amount of its 63.2 equalized facilities revenue needed to make payments required by 63.3 a lease purchase agreement, installment purchase agreement, or 63.4 other deferred payment agreement authorized by Minnesota 63.5 Statutes 1989 Supplement, section 465.71, if: 63.6 (1) the agreement was approved by the commissioner before 63.7 July 1, 1990, according to Minnesota Statutes 1989 Supplement, 63.8 section 275.125, subdivision 11d; or 63.9 (2) the district levied in 1989 for the payments. 63.10 EFFECTIVE DATE: This section is effective for revenue for 63.11 fiscal year 2002 and thereafter. 63.12 Sec. 17. Minnesota Statutes 1998, section 126C.40, 63.13 subdivision 3, is amended to read: 63.14 Subd. 3. [COOPERATING DISTRICTS.] A district that has an 63.15 agreement according to section 123A.30 or 123A.32 may levy63.16 increase its equalized facilities revenue under section 123B.53, 63.17 subdivision 5, for the repair costs, as approved by the 63.18 department of a building located in another district that is a 63.19 party to the agreement. 63.20 EFFECTIVE DATE: This section is effective for revenue for 63.21 fiscal year 2002 and thereafter. 63.22 Sec. 18. Minnesota Statutes 1999 Supplement, section 63.23 126C.40, subdivision 6, is amended to read: 63.24 Subd. 6. [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 63.25 application to, and approval by, the commissioner in accordance 63.26 with the procedures and limits in subdivision 1, paragraphs (a) 63.27 and (b), a district, as defined in this subdivision, may: 63.28 (1) purchase real or personal property under an installment 63.29 contract or may lease real or personal property with an option 63.30 to purchase under a lease purchase agreement, by which 63.31 installment contract or lease purchase agreement title is kept 63.32 by the seller or vendor or assigned to a third party as security 63.33 for the purchase price, including interest, if any; and 63.34 (2) annually levy the amounts necessary to pay the 63.35 district's obligations under the installment contract or lease 63.36 purchase agreement. 64.1 (b) The obligation created by the installment contract or 64.2 the lease purchase agreement must not be included in the 64.3 calculation of net debt for purposes of section 475.53, and does 64.4 not constitute debt under other law. An election is not 64.5 required in connection with the execution of the installment 64.6 contract or the lease purchase agreement. 64.7 (c) The proceeds of the levy authorized by this subdivision 64.8 must not be used to acquire a facility to be primarily used for 64.9 athletic or school administration purposes. 64.10 (d) For the purposes of this subdivision, "district" means: 64.11 (1) a school district required to have a comprehensive plan 64.12 for the elimination of segregation whose plan has been 64.13 determined by the commissioner to be in compliance with 64.14 department of children, families, and learning rules relating to 64.15 equality of educational opportunity and school desegregation and 64.16 for a district qualifying for revenue under section 124D.86, 64.17 subdivision 3, clause (4), where the property subject to the 64.18 levy authority is determined by the commissioner to contribute 64.19 to implementation of the desegregation plan; or 64.20 (2) a school district that participates in a joint program 64.21 for interdistrict desegregation with a district defined in 64.22 clause (1) if the facility acquired under this subdivision is to 64.23 be primarily used for the joint program and the commissioner 64.24 determines that the joint programs are being undertaken to 64.25 implement the districts' desegregation plan. 64.26 (e) Notwithstanding subdivision 1, the prohibition against 64.27 a levy by a district to lease or rent a district-owned building 64.28 to itself does not apply to levies otherwise authorized by this 64.29 subdivision. 64.30 (f) For the purposes of this subdivision, any references in 64.31 subdivision 1 to building or land shall include personal 64.32 property. 64.33 Sec. 19. Minnesota Statutes 1999 Supplement, section 64.34 126C.40, subdivision 6, is amended to read: 64.35 Subd. 6. [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 64.36 application to, and approval by, the commissioner in accordance 65.1 with the procedures and limits in subdivision 1, paragraphs (a) 65.2 and (b), a district, as defined in this subdivision, may: 65.3 (1) purchase real or personal property under an installment 65.4 contract or may lease real or personal property with an option 65.5 to purchase under a lease purchase agreement, by which 65.6 installment contract or lease purchase agreement title is kept 65.7 by the seller or vendor or assigned to a third party as security 65.8 for the purchase price, including interest, if any; and 65.9 (2) annually levyincrease its equalized facilities revenue 65.10 under section 123B.53, subdivision 5, by the amounts necessary 65.11 to pay the district's obligations under the installment contract 65.12 or lease purchase agreement. 65.13 (b) The obligation created by the installment contract or 65.14 the lease purchase agreement must not be included in the 65.15 calculation of net debt for purposes of section 475.53, and does 65.16 not constitute debt under other law. An election is not 65.17 required in connection with the execution of the installment 65.18 contract or the lease purchase agreement. 65.19 (c) The proceeds of the levyequalized facilities revenue 65.20 increase authorized by this subdivision must not be used to 65.21 acquire a facility to be primarily used for athletic or school 65.22 administration purposes. 65.23 (d) For the purposes of this subdivision, "district" means: 65.24 (1) a school district required to have a comprehensive plan 65.25 for the elimination of segregation whose plan has been 65.26 determined by the commissioner to be in compliance with 65.27 department of children, families, and learning rules relating to 65.28 equality of educational opportunity and school desegregation; or 65.29 (2) a school district that participates in a joint program 65.30 for interdistrict desegregation with a district defined in 65.31 clause (1) if the facility acquired under this subdivision is to 65.32 be primarily used for the joint program. 65.33 (e) Notwithstanding subdivision 1, the prohibition against 65.34 a levy bya district to leasereceiving revenue for the purpose 65.35 of leasing or rentrenting a district-owned building to itself 65.36 does not apply to leviesrevenues otherwise authorized by this 66.1 subdivision. 66.2 (f) For the purposes of this subdivision, any references in 66.3 subdivision 1 to building or land shall include personal 66.4 property. 66.5 EFFECTIVE DATE: This section is effective for revenue for 66.6 fiscal year 2002 and thereafter. 66.7 Sec. 20. Minnesota Statutes 1998, section 126C.69, 66.8 subdivision 15, is amended to read: 66.9 Subd. 15. [BOND SALE LIMITATIONS.] A district having an 66.10 outstanding state loan must not issue and sell any bonds on the 66.11 public market, except to refund state loans, unless it agrees to 66.12 make the maximum effort debt service levy in each later year at 66.13 the higher rate provided in section 126C.63, subdivision 8, and 66.14 unless it schedules the maturities of the bonds according to 66.15 section 475.54, subdivision 2. A district that refunds bonds at 66.16 a lower interest rate may continue to make the maximum effort 66.17 debt service levy in each later year at the current rate 66.18 provided in section 126C.63, subdivision 8, if the district can 66.19 demonstrate to the commissioner's satisfaction that the 66.20 district's repayments of the state loan will not be reduced 66.21 below the previous year's level. The district must report each 66.22 sale to the commissioner. 66.23 After a district's capital loan has been outstanding for 2066.24 30 years, the district must not issue bonds on the public market 66.25 except to refund the loan. 66.26 Sec. 21. Laws 1998, chapter 404, section 5, subdivision 66.27 11, as amended by Laws 1999, chapter 26, section 1, is amended 66.28 to read: 66.29 Subd. 11. McLeod West 66.30 School District No. 2887 500,000 66.31 For a grant to the McLeod West school 66.32 district No. 2887, to design and66.33 acquire land for a new grade 7 through66.34 12remodel an educational facility. 66.35 EFFECTIVE DATE: This section is effective the day 66.36 following final enactment. 66.37 Sec. 22. Laws 1999, chapter 241, article 4, section 27, 66.38 subdivision 2, is amended to read: 67.1 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 67.2 aid according to Minnesota Statutes, section 123B.57, 67.3 subdivision 5: 67.4 $14,528,000$14,015,000 ..... 2000 67.5 $14,957,000$14,450,000 ..... 2001 67.6 The 2000 appropriation includes $1,415,000 for 1999 and 67.7 $13,113,000$12,812,000 for 2000. 67.8 The 2001 appropriation includes $1,456,000$1,423,000 for 67.9 2000 and $13,501,000$13,365,000 for 2001. 67.10 Sec. 23. Laws 1999, chapter 241, article 4, section 27, 67.11 subdivision 3, is amended to read: 67.12 Subd. 3. [DEBT SERVICE AID.] For debt service aid 67.13 according to Minnesota Statutes, section 123B.53, subdivision 6: 67.14 $33,165,000$33,141,000 ..... 2000 67.15 $32,084,000$29,400,000 ..... 2001 67.16 The 2000 appropriation includes $3,842,000 for 1999 and 67.17 $29,323,000$29,299,000 for 2000. 67.18 The 2001 appropriation includes $3,256,000$3,255,000 for 67.19 2000 and $28,828,000$25,841,000 for 2001. 67.20 Sec. 24. Laws 1999, chapter 241, article 4, section 27, 67.21 subdivision 4, is amended to read: 67.22 Subd. 4. [INTERACTIVE TELEVISION (ITV) AID.] For 67.23 interactive television (ITV) aid under Minnesota Statutes, 67.24 section 126C.40, subdivision 4: 67.25 $4,197,000$4,194,000 ..... 2000 67.26 $2,851,000$2,761,000 ..... 2001 67.27 The 2000 appropriation includes $405,000 for 1999 and 67.28 $3,792,000$3,784,000 for 2000. 67.29 The 2001 appropriation includes $421,000 for 2000 and 67.30 $2,430,000$2,338,000 for 2001. 67.31 Sec. 25. Laws 1999, chapter 241, article 4, section 27, 67.32 subdivision 5, is amended to read: 67.33 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 67.34 alternative facilities bonding aid, according to Minnesota 67.35 Statutes, section 123B.59: 67.36 $19,058,000$18,920,000 ..... 2000 68.1 $19,286,000$19,134,000 ..... 2001 68.2 The 2000 appropriation includes $1,700,000 for 2000 and 68.3 $17,358,000$17,220,000 for 2001. 68.4 The 2001 appropriation includes $1,928,000$1,914,000 for 68.5 2000 and $17,358,000$17,288,000 for 2001. 68.6 Sec. 26. [ONE-TIME FACILITIES AID.] 68.7 (a) For fiscal year 2001 only, a district's one-time 68.8 facilities aid is equal to: 68.9 (1) $11.20 times the adjusted marginal cost pupil units for 68.10 the school year; plus 68.11 (2) $25 times the adjusted marginal cost pupil units for 68.12 the school year for a district that does not qualify for 68.13 alternative facilities bonding under Minnesota Statutes, section 68.14 123B.59, or under Laws 1999, chapter 241, article 4, section 25. 68.15 (b) Aid received under this section must be used for 68.16 deferred maintenance, to make accessibility improvements, or to 68.17 make fire, safety, or health repairs. 68.18 Sec. 27. [PROJECT QUALIFICATION; TRITON.] 68.19 Subdivision 1. [ELIGIBILITY.] Notwithstanding Minnesota 68.20 Statutes, section 123B.57, independent school district No. 2125, 68.21 Triton, may include all unreimbursed costs associated with the 68.22 testing, evaluation, removal, and replacement of building 68.23 fixtures and equipment necessitated by the discovery of mold in 68.24 a school building in its health and safety plan not to exceed 68.25 $400,000. 68.26 Subd. 2. [COST RECOVERY.] Independent school district No. 68.27 2125, Triton, must pursue all reasonable options to recover 68.28 expenses resulting from the mold from its insurance company, the 68.29 subcontractors, and any other parties responsible for the damage 68.30 caused by the mold. 68.31 EFFECTIVE DATE: This section is effective the day 68.32 following final enactment. 68.33 Sec. 28. [MAXIMUM EFFORT CAPITAL LOANS.] 68.34 Subdivision 1. [INDEPENDENT SCHOOL DISTRICT NO. 38, RED 68.35 LAKE.] $11,166,000 is appropriated to the commissioner of 68.36 children, families, and learning to make a capital loan to 69.1 independent school district No. 38, Red Lake. $11,166,296 is 69.2 approved for a capital loan to independent school district No. 69.3 38, Red Lake. 69.4 Subd. 2. [INDEPENDENT SCHOOL DISTRICT NO. 115, CASS 69.5 LAKE.] $7,505,000 is appropriated to the commissioner of 69.6 children, families, and learning to make a capital loan to 69.7 independent school district No. 115, Cass Lake. $7,505,000 is 69.8 approved for a capital loan to independent school district No. 69.9 115, Cass Lake. 69.10 Subd. 3. [INDEPENDENT SCHOOL DISTRICT NO. 299, 69.11 CALEDONIA.] $14,134,000 is appropriated to the commissioner of 69.12 children, families, and learning to make a capital loan to 69.13 independent school district No. 299, Caledonia. $14,133,788 is 69.14 approved for a capital loan to independent school district No. 69.15 299, Caledonia. 69.16 Subd. 4. [INDEPENDENT SCHOOL DISTRICT NO. 306, 69.17 LAPORTE.] $7,200,000 is appropriated to the commissioner of 69.18 children, families, and learning to make a capital loan to 69.19 independent school district No. 306, LaPorte. $7,200,000 is 69.20 approved for a capital loan to independent school district No. 69.21 306, LaPorte. 69.22 Subd. 5. [INDEPENDENT SCHOOL DISTRICT NO. 914, 69.23 ULEN-HITTERDAHL.] $4,025,000 is appropriated to the commissioner 69.24 of children, families, and learning to make a capital loan to 69.25 independent school district No. 914, Ulen-Hitterdahl. 69.26 $4,025,000 is approved for a capital loan to independent school 69.27 district No. 914, Ulen-Hitterdahl. 69.28 EFFECTIVE DATE: This section is effective the day 69.29 following final enactment. 69.30 Sec. 29. [COMMISSIONER RECOMMENDATION.] 69.31 By February 1, 2003, the commissioner of children, 69.32 families, and learning, in cooperation with the commissioner of 69.33 administration and the Minnesota education telecommunication 69.34 council, shall recommend to the legislature a permanent method 69.35 for funding telecommunications access as part of the general 69.36 education revenue formula under Minnesota Statutes, section 70.1 126C.10. The commissioner shall consider the following in 70.2 making the recommendation: 70.3 (1) the range of costs for providing a minimum level of 70.4 telecommunications access for all students; 70.5 (2) the flexibility that is necessary to accommodate 70.6 emerging technological advances in the telecommunications field; 70.7 and 70.8 (3) other related efforts within the state, including the 70.9 state's higher education and public library systems. 70.10 Sec. 30. [REVISOR'S INSTRUCTION.] 70.11 In subsequent editions of Minnesota Statutes, the revisor 70.12 of statutes shall change the headnote on section 123B.63 to 70.13 "BUILDING CONSTRUCTION AND LEASE PROGRAM." 70.14 Sec. 31. [FACILITY CONSOLIDATION IMPACT REVENUE.] 70.15 For fiscal year 2002 only, a school district that, as a 70.16 result of the consolidation of facility levies in this act, 70.17 experiences an increase in overall district levy, shall receive 70.18 an amount of aid equal to the amount of increased levy. The 70.19 property tax levy for taxes payable in 2001 shall be reduced by 70.20 the amount of the state aid. 70.21 Sec. 32. [CHISHOLM SCHOOL DISTRICT BONDS.] 70.22 Subdivision 1. [AUTHORIZATION.] Independent school 70.23 district No. 695, Chisholm, may issue bonds in an aggregate 70.24 principal amount not exceeding $4,250,000. 70.25 Subd. 2. [USES; PROCESS.] The bonds authorized under 70.26 subdivision 1 may be issued in addition to any bonds already 70.27 issued or authorized. The proceeds of the bonds shall be used 70.28 to provide funds to design, construct, equip, furnish, remodel, 70.29 rehabilitate, and acquire land for school facilities and 70.30 buildings and to pay any architect, engineer and legal fees 70.31 incidental to those purposes or to the sale of bonds. Except as 70.32 permitted by this section, the bonds shall be authorized, 70.33 issued, sold, executed, and delivered in the manner provided by 70.34 Minnesota Statutes, chapter 475. A referendum on the question 70.35 of issuing the bonds authorized under subdivision 1 is 70.36 required. A resolution of the board levying taxes for the 71.1 payment of the bonds and interest on them shall be deemed to be 71.2 in compliance with the provisions of Minnesota Statutes, chapter 71.3 475, with respect to the levying of taxes for their payment. 71.4 Subd. 3. [APPROPRIATION.] There is annually appropriated 71.5 from the distribution of taconite production tax revenues to the 71.6 taconite environmental protection fund pursuant to Minnesota 71.7 Statutes, section 298.28, subdivision 11, and to the northeast 71.8 Minnesota economic protection trust pursuant to Minnesota 71.9 Statutes, section 298.28, subdivisions 9 and 11, in equal 71.10 shares, an amount sufficient to pay when due 80 percent of the 71.11 principal and interest on the bonds issued under subdivision 1. 71.12 If the annual distribution to the northeast Minnesota economic 71.13 protection trust is insufficient to pay its share after 71.14 fulfilling any obligations of the trust under Minnesota 71.15 Statutes, section 298.225 or 298.293, the deficiency shall be 71.16 appropriated from the taconite environmental protection fund. 71.17 Subd. 4. [DISTRICT OBLIGATIONS.] Bonds issued under 71.18 authority of this section shall be the general obligations of 71.19 the school district, for which its full faith and credit and 71.20 unlimited taxing powers shall be pledged. If there are any 71.21 deficiencies in the amount received under subdivision 3, they 71.22 shall be satisfied by general levies, not subject to limit, on 71.23 all taxable properties in the district in accordance with 71.24 Minnesota Statutes, section 475.74. If any deficiency levies 71.25 are necessary, the school board may effect a temporary loan or 71.26 loans on certificates of indebtedness issued in anticipation of 71.27 them to meet payments of principal or interest on the bonds due 71.28 or about to become due. 71.29 Subd. 5. [DISTRICT LEVY.] The school board of the school 71.30 district authorized to issue bonds under subdivision 1 shall by 71.31 resolution levy on all property in the school district subject 71.32 to the general ad valorem school tax levies, and not subject to 71.33 taxation under Minnesota Statutes, sections 298.23 to 298.28, a 71.34 direct annual ad valorem tax for each year of the term of the 71.35 bonds in amounts that, if collected in full, will produce the 71.36 amounts needed to meet when due 20 percent of the principal and 72.1 interest payments on the bonds. A copy of the resolution shall 72.2 be filed, and the necessary taxes shall be extended, assessed, 72.3 collected, and remitted in accordance with Minnesota Statutes, 72.4 section 475.61. 72.5 Subd. 6. [LEVY LIMITATIONS.] Taxes levied pursuant to this 72.6 section shall be disregarded in the calculation of any other tax 72.7 levies or limits on tax levies provided by other law. 72.8 Subd. 7. [BONDING LIMITATIONS.] Bonds may be issued under 72.9 authority of this section notwithstanding any limitations upon 72.10 the indebtedness of a district, and their amounts shall not be 72.11 included in computing the indebtedness of a district for any 72.12 purpose, including the issuance of subsequent bonds and the 72.13 incurring of subsequent indebtedness. 72.14 Subd. 8. [TERMINATION OF APPROPRIATION.] The appropriation 72.15 authorized in subdivision 3 terminates upon payment or maturity 72.16 of the last of the bonds issued under this section. 72.17 Subd. 9. [BOND ISSUE REQUIREMENT.] No bonds may be issued 72.18 under this section after April 30, 2002, unless they are issued 72.19 under a contract in effect on or before April 30, 2002. 72.20 Subd. 10. [LOCAL APPROVAL.] This section is effective for 72.21 independent school district No. 695 the day after its governing 72.22 body complies with Minnesota Statutes, section 645.021, 72.23 subdivision 3. 72.24 Sec. 33. [GREENWAY-COLERAINE SCHOOL DISTRICT BONDS.] 72.25 Subdivision 1. [AUTHORIZATION.] Independent school 72.26 district No. 316, Greenway-Coleraine, may issue bonds in an 72.27 aggregate principal amount not exceeding $2,500,000. 72.28 Subd. 2. [USES; PROCESS.] The bonds authorized under 72.29 subdivision 1 may be issued in addition to any bonds already 72.30 issued or authorized. The proceeds of the bonds shall be used 72.31 to provide funds to design, construct, equip, furnish, remodel, 72.32 rehabilitate, and acquire land for school facilities and 72.33 buildings and to pay any architect, engineer and legal fees 72.34 incidental to those purposes or to the sale of bonds. Except as 72.35 permitted by this section, the bonds shall be authorized, 72.36 issued, sold, executed, and delivered in the manner provided by 73.1 Minnesota Statutes, chapter 475. A referendum on the question 73.2 of issuing the bonds authorized under subdivision 1 is 73.3 required. A resolution of the board levying taxes for the 73.4 payment of the bonds and interest on them shall be deemed to be 73.5 in compliance with the provisions of Minnesota Statutes, chapter 73.6 475, with respect to the levying of taxes for their payment. 73.7 Subd. 3. [APPROPRIATION.] There is annually appropriated 73.8 from the distribution of taconite production tax revenues to the 73.9 taconite environmental protection fund pursuant to Minnesota 73.10 Statutes, section 298.28, subdivision 11, and to the northeast 73.11 Minnesota economic protection trust pursuant to Minnesota 73.12 Statutes, section 298.28, subdivisions 9 and 11, in equal 73.13 shares, an amount sufficient to pay when due 80 percent of the 73.14 principal and interest on the bonds issued under subdivision 1. 73.15 If the annual distribution to the northeast Minnesota economic 73.16 protection trust is insufficient to pay its share after 73.17 fulfilling any obligations of the trust under Minnesota 73.18 Statutes, section 298.225 or 298.293, the deficiency shall be 73.19 appropriated from the taconite environmental protection fund. 73.20 Subd. 4. [DISTRICT OBLIGATIONS.] Bonds issued under 73.21 authority of this section shall be the general obligations of 73.22 the school district, for which its full faith and credit and 73.23 unlimited taxing powers shall be pledged. If there are any 73.24 deficiencies in the amount received under subdivision 3, they 73.25 shall be satisfied by general levies, not subject to limit, on 73.26 all taxable properties in the district in accordance with 73.27 Minnesota Statutes, section 475.74. If any deficiency levies 73.28 are necessary, the school board may effect a temporary loan or 73.29 loans on certificates of indebtedness issued in anticipation of 73.30 them to meet payments of principal or interest on the bonds due 73.31 or about to become due. 73.32 Subd. 5. [DISTRICT LEVY.] The school board of the school 73.33 district authorized to issue bonds under subdivision 1 shall by 73.34 resolution levy on all property in the school district subject 73.35 to the general ad valorem school tax levies, and not subject to 73.36 taxation under Minnesota Statutes, sections 298.23 to 298.28, a 74.1 direct annual ad valorem tax for each year of the term of the 74.2 bonds in amounts that, if collected in full, will produce the 74.3 amounts needed to meet when due 20 percent of the principal and 74.4 interest payments on the bonds. A copy of the resolution shall 74.5 be filed, and the necessary taxes shall be extended, assessed, 74.6 collected, and remitted in accordance with Minnesota Statutes, 74.7 section 475.61. 74.8 Subd. 6. [LEVY LIMITATIONS.] Taxes levied pursuant to this 74.9 section shall be disregarded in the calculation of any other tax 74.10 levies or limits on tax levies provided by other law. 74.11 Subd. 7. [BONDING LIMITATIONS.] Bonds may be issued under 74.12 authority of this section notwithstanding any limitations upon 74.13 the indebtedness of a district, and their amounts shall not be 74.14 included in computing the indebtedness of a district for any 74.15 purpose, including the issuance of subsequent bonds and the 74.16 incurring of subsequent indebtedness. 74.17 Subd. 8. [TERMINATION OF APPROPRIATION.] The appropriation 74.18 authorized in subdivision 3 terminates upon payment or maturity 74.19 of the last of the bonds issued under this section. 74.20 Subd. 9. [BOND ISSUE REQUIREMENT.] No bonds may be issued 74.21 under this section after April 30, 2002, unless they are issued 74.22 under a contract in effect on or before April 30, 2002. 74.23 Subd. 10. [LOCAL APPROVAL.] This section is effective for 74.24 independent school district No. 316 the day after its governing 74.25 body complies with Minnesota Statutes, section 645.021, 74.26 subdivision 3. 74.27 Sec. 34. [LAKE SUPERIOR SCHOOL DISTRICT BONDS.] 74.28 Subdivision 1. [AUTHORIZATION.] Independent school 74.29 district No. 381, Lake Superior, may issue bonds in an aggregate 74.30 principal amount not exceeding $6,000,000. 74.31 Subd. 2. [USES; PROCESS.] The bonds authorized under 74.32 subdivision 1 may be issued in addition to any bonds already 74.33 issued or authorized. The proceeds of the bonds shall be used 74.34 to provide funds to design, construct, equip, furnish, remodel, 74.35 rehabilitate, and acquire land for school facilities and 74.36 buildings and to pay any architect, engineer and legal fees 75.1 incidental to those purposes or to the sale of bonds. Except as 75.2 permitted by this section, the bonds shall be authorized, 75.3 issued, sold, executed, and delivered in the manner provided by 75.4 Minnesota Statutes, chapter 475. A referendum on the question 75.5 of issuing the bonds authorized under subdivision 1 is 75.6 required. A resolution of the board levying taxes for the 75.7 payment of the bonds and interest on them shall be deemed to be 75.8 in compliance with the provisions of Minnesota Statutes, chapter 75.9 475, with respect to the levying of taxes for their payment. 75.10 Subd. 3. [APPROPRIATION.] There is annually appropriated 75.11 from the distribution of taconite production tax revenues to the 75.12 taconite environmental protection fund pursuant to Minnesota 75.13 Statutes, section 298.28, subdivision 11, and to the northeast 75.14 Minnesota economic protection trust pursuant to Minnesota 75.15 Statutes, section 298.28, subdivisions 9 and 11, in equal 75.16 shares, an amount sufficient to pay when due 80 percent of the 75.17 principal and interest on the bonds issued under subdivision 1. 75.18 If the annual distribution to the northeast Minnesota economic 75.19 protection trust is insufficient to pay its share after 75.20 fulfilling any obligations of the trust under Minnesota 75.21 Statutes, section 298.225 or 298.293, the deficiency shall be 75.22 appropriated from the taconite environmental protection fund. 75.23 Subd. 4. [DISTRICT OBLIGATIONS.] Bonds issued under 75.24 authority of this section shall be the general obligations of 75.25 the school district, for which its full faith and credit and 75.26 unlimited taxing powers shall be pledged. If there are any 75.27 deficiencies in the amount received under subdivision 3, they 75.28 shall be satisfied by general levies, not subject to limit, on 75.29 all taxable properties in the district in accordance with 75.30 Minnesota Statutes, section 475.74. If any deficiency levies 75.31 are necessary, the school board may effect a temporary loan or 75.32 loans on certificates of indebtedness issued in anticipation of 75.33 them to meet payments of principal or interest on the bonds due 75.34 or about to become due. 75.35 Subd. 5. [DISTRICT LEVY.] The school board of the school 75.36 district authorized to issue bonds under subdivision 1 shall by 76.1 resolution levy on all property in the school district subject 76.2 to the general ad valorem school tax levies, and not subject to 76.3 taxation under Minnesota Statutes, sections 298.23 to 298.28, a 76.4 direct annual ad valorem tax for each year of the term of the 76.5 bonds in amounts that, if collected in full, will produce the 76.6 amounts needed to meet when due 20 percent of the principal and 76.7 interest payments on the bonds. A copy of the resolution shall 76.8 be filed, and the necessary taxes shall be extended, assessed, 76.9 collected, and remitted in accordance with Minnesota Statutes, 76.10 section 475.61. 76.11 Subd. 6. [LEVY LIMITATIONS.] Taxes levied pursuant to this 76.12 section shall be disregarded in the calculation of any other tax 76.13 levies or limits on tax levies provided by other law. 76.14 Subd. 7. [BONDING LIMITATIONS.] Bonds may be issued under 76.15 authority of this section notwithstanding any limitations upon 76.16 the indebtedness of a district, and their amounts shall not be 76.17 included in computing the indebtedness of a district for any 76.18 purpose, including the issuance of subsequent bonds and the 76.19 incurring of subsequent indebtedness. 76.20 Subd. 8. [TERMINATION OF APPROPRIATION.] The appropriation 76.21 authorized in subdivision 3 terminates upon payment or maturity 76.22 of the last of the bonds issued under this section. 76.23 Subd. 9. [BOND ISSUE REQUIREMENT.] No bonds may be issued 76.24 under this section after April 30, 2002, unless they are issued 76.25 under a contract in effect on or before April 30, 2002. 76.26 Subd. 10. [LOCAL APPROVAL.] This section is effective for 76.27 independent school district No. 381 the day after its governing 76.28 body complies with Minnesota Statutes, section 645.021, 76.29 subdivision 3. 76.30 Sec. 35. [APPROPRIATIONS.] 76.31 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 76.32 LEARNING.] The sums indicated in this section are appropriated 76.33 from the general fund to the department of children, families, 76.34 and learning for fiscal years designated. 76.35 Subd. 2. [TELECOMMUNICATION ACCESS REVENUE.] For 76.36 telecommunication access cost revenue under Minnesota Statutes, 77.1 section 125B.25: 77.2 $26,230,000 ..... 2001 77.3 Subd. 3. [INTEREST ON FLOOD LOANS.] For interest paid on 77.4 flood loans: 77.5 $ 970,000 ..... 2000 77.6 Of this amount, $761,000 is for independent school district 77.7 No. 595, East Grand Forks, and $209,000 is for independent 77.8 school district No. 2854, Ada-Borup. 77.9 This appropriation is available until June 30, 2001. 77.10 Subd. 4. [ONE-TIME FACILITIES AID.] For one-time 77.11 facilities aid: 77.12 $26,411,000 ..... 2001 77.13 Subd. 5. [SCHOOL FACILITIES GRANTS.] For grants to 77.14 construct school facilities: 77.15 $ 7,100,000 ..... 2000 77.16 Of this amount: 77.17 (a) $4,100,000 is for a grant to independent school 77.18 district No. 25, Pine Point, for the construction of a new 77.19 school facility serving kindergarten through grade 8. 77.20 (b) $3,000,000 is for a grant to independent school 77.21 district No. 495, Grand Meadow, to construct a new school using 77.22 monolithic dome construction techniques. The commissioner shall 77.23 award the grant to demonstrate that a school constructed using 77.24 monolithic dome construction techniques can provide operating 77.25 and construction savings for school districts throughout the 77.26 state. Grand Meadow school district must agree to provide the 77.27 state with information and data about this construction method 77.28 and with an analysis of a monolithic dome as a suitable 77.29 educational environment. 77.30 Subd. 6. [MAXIMUM EFFORT CAPITAL LOANS.] For capital loans 77.31 to school districts as provided in Minnesota Statutes, sections 77.32 126C.60 to 126C.72: 77.33 $44,031,000 ..... 2001 77.34 The commissioner shall review the proposed plan and budget 77.35 of the project and may reduce the amount of the loan to ensure 77.36 that the project will be economical. The commissioner may 78.1 recover the cost incurred by the commissioner for any 78.2 professional services associated with the final review and 78.3 construction by reducing the proceeds of the loan paid by the 78.4 district. The commissioner shall report to the legislature any 78.5 reductions to the above appropriations by January 10, 2001. 78.6 Notwithstanding any contrary provision of Minnesota Statutes, 78.7 sections 126C.60 to 126C.72, the repayments for the capital 78.8 loans approved in section 28 shall be made to the state general 78.9 fund and shall not be transferred to the school loan bond 78.10 account. The capital loan contract shall not contain 78.11 restrictions on investment of the loan funds by the school 78.12 district that would otherwise be required if the loans were 78.13 funded from state bond proceeds. Notwithstanding Minnesota 78.14 Statutes, section 126C.69, subdivision 12, the monies for 78.15 maximum effort loans approved in this article are from the 78.16 general fund. The interest rate on the loans shall equal the 78.17 weighted average annual rate payable on state bonds issued on a 78.18 date closest to the execution of the contract between the state 78.19 and the district. 78.20 Subd. 7. [ERITREAN COMMUNITY CENTER OF MINNESOTA.] For a 78.21 building lease start-up grant for an Eritrean community center 78.22 of Minnesota: 78.23 $ 150,000 ..... 2001 78.24 The commissioner shall consult with the commissioner of 78.25 administration on the availability of state-owned building space 78.26 for the community center. 78.27 Subd. 8. [FACILITIES CONSOLIDATION IMPACT REVENUE.] For 78.28 facilities consolidation impact revenue: 78.29 $ 2,422,000 ..... 2001 78.30 ARTICLE 5 78.31 EDUCATION EXCELLENCE AND OTHER POLICY 78.32 Section 1. Minnesota Statutes 1998, section 120B.13, 78.33 subdivision 4, is amended to read: 78.34 Subd. 4. [INFORMATION.] The commissioner shall submit the 78.35 following information to the education committees of the 78.36 legislature each year by JanuaryFebruary 1: 79.1 (1) the number of pupils enrolled in advanced placement and 79.2 international baccalaureate courses in each school district; 79.3 (2) the number of teachers in each district attending 79.4 training programs offered by the college board or International 79.5 Baccalaureate North America, Inc.; 79.6 (3) the number of teachers in each district participating 79.7 in support programs; 79.8 (4) recent trends in the field of advanced placement and 79.9 international baccalaureate programs; 79.10 (5) expenditures for each category in this section; and 79.11 (6) other recommendations for the state program. 79.12 Sec. 2. Minnesota Statutes 1999 Supplement, section 79.13 120B.30, subdivision 1, is amended to read: 79.14 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 79.15 with advice from experts with appropriate technical 79.16 qualifications and experience and stakeholders, shall include in 79.17 the comprehensive assessment system, for each grade level to be 79.18 tested, a single statewide norm-referenced or 79.19 criterion-referenced test, or a combination of a norm-referenced 79.20 and a criterion-referenced test, which shall be highly 79.21 correlated with the state's graduation standards and 79.22 administered annually to all students in the third, fifth, and 79.23 eighth grades. The commissioner shall establish one or more 79.24 months during which schools shall administer the tests to 79.25 students each school year. Only Minnesota basic skills tests in 79.26 reading, mathematics, and writing shall fulfill students' 79.27 testing requirements for a passing state notation. The passing 79.28 scores of the state tests in reading and mathematics are the 79.29 equivalent of: 79.30 (1) 70 percent correct for students entering grade 9 in 79.31 1996; and 79.32 (2) 75 percent correct for students entering grade 9 in 79.33 1997 and thereafter, as based on the first uniform test 79.34 administration of February 1998. 79.35 (b) In addition, at the secondary level, districts shall 79.36 assess student performance in all required learning areas and 80.1 selected required standards within each area of the profile of 80.2 learning. The testing instruments and testing process shall be 80.3 determined by the commissioner. The results shall be aggregated 80.4 at the site and district level. The testing shall be 80.5 administered beginning in the 1999-2000 school year and 80.6 thereafter. 80.7 (c) The comprehensive assessment system shall include an 80.8 evaluation of school site and school district performance levels 80.9 during the 1997-1998 school year and thereafter using an 80.10 established performance baseline developed from students' test 80.11 scores under this section that records, at a minimum, students' 80.12 unweighted mean test scores in each tested subject, a second 80.13 performance baseline that reports, at a minimum, the same 80.14 unweighted mean test scores of only those students enrolled in 80.15 the school by January 1 of the previous school year, and a third 80.16 performance baseline that reports the same unweighted test 80.17 scores of all students except those students receiving limited 80.18 English proficiency instruction. The evaluation also shall 80.19 record separately, in proximity to the performance baselines, 80.20 the percentages of students who are eligible to receive a free 80.21 or reduced price school meal, demonstrate limited English 80.22 proficiency, or are eligible to receive special education 80.23 services. 80.24 (d) In addition to the testing and reporting requirements 80.25 under paragraphs (a), (b), and (c), the commissioner shall 80.26 include the following components in the statewide educational 80.27 accountability and public reporting system: 80.28 (1) uniform statewide testing of all third, fifth, eighth, 80.29 and post-eighth grade students with exemptions, only with parent 80.30 or guardian approval, from the testing requirement only for 80.31 those very few students for whom the student's individual 80.32 education plan team under sections 125A.05 and 125A.06, 80.33 determines that the student is incapable of taking a statewide 80.34 test, or a limited English proficiency student under section 80.35 124D.59, subdivision 2, if the student has been in the United 80.36 States for fewer than 12 months and for whom special language 81.1 barriers exist, such as the student's native language does not 81.2 have a written form or the district does not have access to 81.3 appropriate interpreter services for the student's native 81.4 language; 81.5 (2) educational indicators that can be aggregated and 81.6 compared across school districts and across time on a statewide 81.7 basis; 81.8 (3) students' scores on the American College Test; 81.9 (4) participation in the National Assessment of Educational 81.10 Progress so that the state can benchmark its performance against 81.11 the nation and other states, and, where possible, against other 81.12 countries, and contribute to the national effort to monitor 81.13 achievement; and 81.14 (5) basic skills and advanced competencies connecting 81.15 teaching and learning to high academic standards, assessment, 81.16 and transitions to citizenship and employment. 81.17 (e) Districts must report exemptions under paragraph (d), 81.18 clause (1), to the commissioner consistent with a format 81.19 provided by the commissioner. 81.20 EFFECTIVE DATE: This section is effective the day 81.21 following final enactment and applies to test administrations 81.22 beginning in February 2000. 81.23 Sec. 3. Minnesota Statutes 1998, section 121A.22, 81.24 subdivision 2, is amended to read: 81.25 Subd. 2. [EXCLUSIONS.] In addition, this section does not 81.26 apply to drugs or medicine: 81.27 (1) that can be purchased without a prescription;81.28 (2)that are used by a pupil who is 18 years old or older; 81.29 (3)(2) that are used in connection with services for which 81.30 a minor may give effective consent, including section 144.343, 81.31 subdivision 1, and any other law; 81.32 (4)(3) that are used in situations in which, in the 81.33 judgment of the school personnel who are present or available, 81.34 the risk to the pupil's life or health is of such a nature that 81.35 drugs or medicine should be given without delay; 81.36 (5)(4) that are used off the school grounds; 82.1 (6)(5) that are used in connection with athletics or extra 82.2 curricular activities; 82.3 (7)(6) that are used in connection with activities that 82.4 occur before or after the regular school day; or 82.5 (8)(7) that are provided or administered by a public 82.6 health agency in order to prevent or control an illness or a 82.7 disease outbreak as provided for in sections 144.05 and 144.12. 82.8 Sec. 4. Minnesota Statutes 1998, section 121A.22, 82.9 subdivision 3, is amended to read: 82.10 Subd. 3. [LABELING.] Prescription drugs or medicine 82.11 subject to this section must be in a container with a label 82.12 prepared by a pharmacist according to section 151.212 and 82.13 applicable rules. Nonprescription drugs or medicines must be in 82.14 the original container with a label containing use instructions. 82.15 Sec. 5. [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 82.16 Subdivision 1. [REASONABLE FORCE STANDARD.] (a) A teacher, 82.17 in exercising the person's lawful authority, may use reasonable 82.18 force when it is necessary under the circumstances to correct or 82.19 restrain a student or prevent bodily harm or death to another. 82.20 (b) A school employee, school bus driver, or other agent of 82.21 a district, in exercising the person's lawful authority, may use 82.22 reasonable force when it is necessary under the circumstances to 82.23 restrain a student or prevent bodily harm or death to another. 82.24 (c) Paragraphs (a) and (b) do not authorize conduct 82.25 prohibited under sections 121A.58 and 121A.67. 82.26 Subd. 2. [CIVIL LIABILITY.] (a) A teacher who, in the 82.27 exercise of the person's lawful authority, uses reasonable force 82.28 under the standard in subdivision 1, paragraph (a), has a 82.29 defense against a civil action for damages under section 123B.25. 82.30 (b) A school employee, bus driver, or other agent of a 82.31 district who, in the exercise of the person's lawful authority, 82.32 uses reasonable force under the standard in subdivision 1, 82.33 paragraph (b), has a defense against a civil action for damages 82.34 under section 123B.25. 82.35 Subd. 3. [CRIMINAL PROSECUTION.] (a) A teacher who, in the 82.36 exercise of the person's lawful authority, uses reasonable force 83.1 under the standard in subdivision 1, paragraph (a), has a 83.2 defense against a criminal prosecution under section 609.06, 83.3 subdivision 1. 83.4 (b) A school employee, bus driver, or other agent of a 83.5 district who, in the exercise of the person's lawful authority, 83.6 uses reasonable force under the standard in subdivision 1, 83.7 paragraph (b), has a defense against a criminal prosecution 83.8 under section 609.06, subdivision 1. 83.9 Subd. 4. [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 83.10 defense in this section is supplementary to those specified in 83.11 section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 83.12 EFFECTIVE DATE: This section is effective for the 83.13 2000-2001 school year and later. 83.14 Sec. 6. Minnesota Statutes 1998, section 121A.61, 83.15 subdivision 3, is amended to read: 83.16 Subd. 3. [POLICY COMPONENTS.] The policy must include at 83.17 least the following components: 83.18 (a) rules governing student conduct and procedures for 83.19 informing students of the rules; 83.20 (b) the grounds for removal of a student from a class; 83.21 (c) the authority of the classroom teacher to remove 83.22 students from the classroom pursuant to procedures and rules 83.23 established in the district's policy; 83.24 (d) the procedures for removal of a student from a class by 83.25 a teacher, school administrator, or other school district 83.26 employee; 83.27 (e) the period of time for which a student may be removed 83.28 from a class, which may not exceed five class periods for a 83.29 violation of a rule of conduct; 83.30 (f) provisions relating to the responsibility for and 83.31 custody of a student removed from a class; 83.32 (g) the procedures for return of a student to the specified 83.33 class from which the student has been removed; 83.34 (h) the procedures for notifying a student and the 83.35 student's parents or guardian of violations of the rules of 83.36 conduct and of resulting disciplinary actions; 84.1 (i) any procedures determined appropriate for encouraging 84.2 early involvement of parents or guardians in attempts to improve 84.3 a student's behavior; 84.4 (j) any procedures determined appropriate for encouraging 84.5 early detection of behavioral problems; 84.6 (k) any procedures determined appropriate for referring a 84.7 student in need of special education services to those services; 84.8 (1) the procedures for consideration of whether there is a 84.9 need for a further assessment or of whether there is a need for 84.10 a review of the adequacy of a current individual education plan 84.11 of a student with a disability who is removed from class; 84.12 (m) procedures for detecting and addressing chemical abuse 84.13 problems of a student while on the school premises; 84.14 (n) the minimum consequences for violations of the code of 84.15 conduct; and84.16 (o) procedures for immediate and appropriate interventions 84.17 tied to violations of the code; and 84.18 (p) a provision that states that a teacher, school 84.19 employee, school bus driver, or other agent of the school 84.20 district may use reasonable force in compliance with section 84.21 121A.582 and other laws. 84.22 EFFECTIVE DATE: The section is effective for the 2001-2002 84.23 school year and later. 84.24 Sec. 7. Minnesota Statutes 1999 Supplement, section 84.25 122A.18, subdivision 3, is amended to read: 84.26 Subd. 3. [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 84.27 ETHICS.] (a) The commissioner of children, families, and 84.28 learning must issue licenses under its jurisdiction to persons 84.29 the commissioner finds to be qualified and competent for their 84.30 respective positions under the rules it adopts. The 84.31 commissioner of children, families, and learning may develop, by 84.32 rule, a code of ethics for supervisory personnel covering 84.33 standards of professional practices, including areas of ethical 84.34 conduct and professional performance and methods of enforcement. 84.35 (b) Notwithstanding Minnesota Rules, part 3512.2500, the 84.36 commissioner of children, families, and learning may approve a 85.1 licensure program offered by an entity other than a college or 85.2 university in administration and supervision, if the program 85.3 meets the requirements for approval and continuation that apply 85.4 to colleges and universities. 85.5 Sec. 8. Minnesota Statutes 1999 Supplement, section 85.6 122A.23, is amended to read: 85.7 122A.23 [APPLICANTS TRAINED IN OTHER STATES.] 85.8 Subdivision 1. [PREPARATION EQUIVALENCY.] When a license 85.9 to teach is authorized to be issued to any holder of a diploma 85.10 or a degree of a Minnesota state university, or of the 85.11 University of Minnesota, or of a liberal arts university, or a 85.12 technical training institution, such license may also, in the 85.13 discretion of the board of teaching or the commissioner of 85.14 children, families, and learning, whichever has jurisdiction, be 85.15 issued to any holder of a diploma or a degree of a teacher 85.16 training institution of equivalent rank and standing of any 85.17 other state. The diploma or degree must be granted by virtue of 85.18 the completion of a course in teacher preparation essentially 85.19 equivalent in content to that required by such Minnesota state 85.20 university or the University of Minnesota or a liberal arts 85.21 university in Minnesota or a technical training institution as 85.22 preliminary to the granting of a diploma or a degree of the same 85.23 rank and class. 85.24 Subd. 2. [APPLICANTS LICENSED IN OTHER STATES.] (a) If an 85.25 applicant for a Minnesota teaching license holds at least a 85.26 baccalaureate degree from a regionally accredited college or 85.27 university, and holds or has held a similar teaching license in 85.28 another state, and the license was issued based on successful 85.29 completion of teacher preparation program approved by the 85.30 issuing state, including field-specific methods of teaching and 85.31 student teaching or essentially equivalent experience, then the 85.32 board of teaching shall issue the license using the criteria in 85.33 paragraphs (b) to (e). 85.34 (b) If the applicant has successfully completed all 85.35 examinations and human relations preparation components required 85.36 by the board of teaching and holds or has held a license in 86.1 another state to teach the same content field and grade levels 86.2 equal to, greater than, or not more than one year less than a 86.3 similar license available in Minnesota, then the board shall 86.4 issue a license identical to the license it would issue to an 86.5 applicant who has successfully completed those requirements in a 86.6 Minnesota teacher preparation program. 86.7 (c) If the applicant holds or has held a teaching license 86.8 issued by another state to teach the same content field and 86.9 grade levels equal to, greater than, or not more than one year 86.10 less than a similar license available in Minnesota, but has not 86.11 successfully completed all examinations and human relations 86.12 preparation components required by the board of teaching, then 86.13 the board shall issue a temporary license according to board 86.14 rules to provide the applicant time to complete required 86.15 examination and human relations components. 86.16 (d) If the applicant has successfully completed all 86.17 examinations and human relations preparation components required 86.18 by the board of teaching and holds a license issued by another 86.19 state based on successful completion of a teacher preparation 86.20 program approved by the issuing state but has not completed 86.21 student teaching or equivalent experience, field-specific 86.22 methods of teaching, or both, then the board shall issue a 86.23 temporary license according to board rules to provide the 86.24 applicant time to complete student teaching or equivalent 86.25 experience, field-specific methods of teaching, or both. An 86.26 applicant may fulfill the student teaching or equivalent 86.27 experience requirement, field-specific methods of teaching 86.28 requirement, or both, by successfully completing a year in a 86.29 school district mentorship program consistent with the standards 86.30 of effective practice adopted by the board of teaching and the 86.31 Minnesota graduation requirements. 86.32 (e) If the applicant has successfully completed all 86.33 examinations and human relations preparation components required 86.34 by the board of teaching and holds or has held a license issued 86.35 by another state, but the license is more limited in the content 86.36 field, grade levels, or both, than a similar Minnesota license, 87.1 then the applicant shall be issued a temporary license valid for 87.2 up to three years for only the content field, grade levels, or 87.3 both, for which the applicant was licensed in the other state, 87.4 to provide time for the applicant to meet full Minnesota 87.5 licensure requirements in the field. 87.6 (f) No applicant shall be issued any temporary license or 87.7 combination of temporary licenses under paragraphs (c) to (e) 87.8 for a period of time exceeding three years. 87.9 (g) No license shall be issued under this subdivision when 87.10 the licensure field requires additional degrees, credentials, or 87.11 licenses that the candidate has not achieved. 87.12 Sec. 9. Minnesota Statutes 1998, section 122A.25, is 87.13 amended by adding a subdivision to read: 87.14 Subd. 2a. [INDIVIDUAL PREAPPROVAL.] (a) An individual not 87.15 licensed by the board of teaching that holds certification, 87.16 credentials, or professional recognition as an expert in a 87.17 specialized method of instruction not typically offered in the 87.18 school program may apply to the board of teaching to be granted 87.19 preapproval as a community expert eligible to teach in a public 87.20 school or charter school under this section. In making its 87.21 determination, the board shall consider only the criteria of 87.22 subdivision 2, clause (1). 87.23 (b) A preapproved community expert under this subdivision 87.24 may be hired to teach by a school district or charter school 87.25 only if the school district or charter school applies under 87.26 subdivision 2 and the board of teaching approves the application 87.27 after considering the criteria of subdivision 2, clauses (2) to 87.28 (7). 87.29 Sec. 10. Minnesota Statutes 1998, section 122A.25, is 87.30 amended by adding a subdivision to read: 87.31 Subd. 2b. [BACKGROUND CHECK.] The school district or 87.32 charter school shall request a criminal history background check 87.33 under section 123B.03 on a hired nonlicensed community expert 87.34 and verify the completion of the criminal history background 87.35 check to the board of teaching. 87.36 Sec. 11. Minnesota Statutes 1998, section 122A.25, is 88.1 amended by adding a subdivision to read: 88.2 Subd. 2c. [EXCEPTION.] A current or former faculty member 88.3 in a board of teaching approved teacher preparation program 88.4 shall be automatically approved as a nonlicensed community 88.5 expert to teach courses in or otherwise serve a school district 88.6 or charter school in the individual's field of expertise upon a 88.7 district or charter school's registering the intention to employ 88.8 that current or former faculty member under this subdivision. 88.9 Sec. 12. Minnesota Statutes 1998, section 122A.25, 88.10 subdivision 3, is amended to read: 88.11 Subd. 3. [APPROVAL OF PLAN.] The board of teaching shall 88.12 approve or disapprove an application within 60 days of receiving 88.13 it from a school district or, charter school, or individual. 88.14 Sec. 13. Minnesota Statutes 1998, section 123B.04, 88.15 subdivision 2, is amended to read: 88.16 Subd. 2. [AGREEMENT.] (a) Either the school board or the 88.17 school site decision-making team may request that the school 88.18 board enter into an agreement with a school site decision-making 88.19 team concerning the governance, management, or control of the 88.20 school. A school site decision-making team may include the 88.21 school principal, teachers in the school or their designee, 88.22 other employees in the school, parents of pupils in the school, 88.23 representatives of pupils in the school, or other members in the 88.24 community. The school site decision-making team shall include 88.25 the school principal or other person having general control and 88.26 supervision of the school. The site decision-making team must 88.27 reflect the diversity of the education site. No more than 88.28 one-half of the members shall be employees of the district, 88.29 unless an employee is the parent of a student enrolled in the 88.30 school site, in which case the employee may elect to serve as a 88.31 parent member of the site team. 88.32 (b) School site decision-making agreements must delegate 88.33 powers, duties, and broad management responsibilities to site 88.34 teams and involve staff members, students as appropriate, and 88.35 parents in decision making. 88.36 (c) An agreement shall include a statement of powers, 89.1 duties, responsibilities, and authority to be delegated to and 89.2 within the site. 89.3 (d) An agreement may include: 89.4 (1) an achievement contract according to subdivision 4; 89.5 (2) a mechanism to allow principals, or other persons 89.6 having general control and supervision of the school, to make 89.7 decisions regarding how financial and personnel resources are 89.8 best allocated at the site and from whom goods or services are 89.9 purchased; 89.10 (3) a mechanism to implement parental involvement programs 89.11 under section 124D.895 and to provide for effective parental 89.12 communication and feedback on this involvement at the site 89.13 level; 89.14 (4) a provision that would allow the team to determine who 89.15 is hired into licensed and nonlicensed positions; 89.16 (5) a provision that would allow teachers to choose the 89.17 principal or other person having general control; 89.18 (6) an amount of revenue allocated to the site under 89.19 subdivision 3; and 89.20 (7) any other powers and duties determined appropriate by 89.21 the board. 89.22 The school board of the district remains the legal employer 89.23 under clauses (4) and (5). 89.24 (e) Any powers or duties not delegated to the school site 89.25 management team in the school site management agreement shall 89.26 remain with the school board. 89.27 (f) Approved agreements shall be filed with the 89.28 commissioner. If a school board denies a request to enter into 89.29 a school site management agreement, it shall provide a copy of 89.30 the request and the reasons for its denial to the commissioner. 89.31 EFFECTIVE DATE: This section is effective July 1, 2000. 89.32 Sec. 14. Minnesota Statutes 1998, section 123B.143, 89.33 subdivision 1, is amended to read: 89.34 Subdivision 1. [CONTRACT; DUTIES.] All districts 89.35 maintaining a classified secondary school must employ a 89.36 superintendent who shall be an ex officio nonvoting member of 90.1 the school board. The authority for selection and employment of 90.2 a superintendent must be vested in the board in all cases. An 90.3 individual employed by a board as a superintendent shall have an 90.4 initial employment contract for a period of time no longer than 90.5 three years from the date of employment. Any subsequent 90.6 employment contract must not exceed a period of three years. A 90.7 board, at its discretion, may or may not renew an employment 90.8 contract. A board must not, by action or inaction, extend the 90.9 duration of an existing employment contract. Beginning 365 days 90.10 prior to the expiration date of an existing employment contract, 90.11 a board may negotiate and enter into a subsequent employment 90.12 contract to take effect upon the expiration of the existing 90.13 contract. A subsequent contract must be contingent upon the 90.14 employee completing the terms of an existing contract. If a 90.15 contract between a board and a superintendent is terminated 90.16 prior to the date specified in the contract, the board may not 90.17 enter into another superintendent contract with that same 90.18 individual that has a term that extends beyond the date 90.19 specified in the terminated contract. A board may terminate a 90.20 superintendent during the term of an employment contract for any 90.21 of the grounds specified in section 122A.40, subdivision 9 or 13. 90.22 A superintendent shall not rely upon an employment contract with 90.23 a board to assert any other continuing contract rights in the 90.24 position of superintendent under section 122A.40. 90.25 Notwithstanding the provisions of sections 122A.40, subdivision 90.26 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 90.27 individual shall have a right to employment as a superintendent 90.28 based on order of employment in any district. If two or more 90.29 districts enter into an agreement for the purchase or sharing of 90.30 the services of a superintendent, the contracting districts have 90.31 the absolute right to select one of the individuals employed to 90.32 serve as superintendent in one of the contracting districts and 90.33 no individual has a right to employment as the superintendent to 90.34 provide all or part of the services based on order of employment 90.35 in a contracting district. The superintendent of a district 90.36 shall perform the following: 91.1 (1) visit and supervise the schools in the district, report 91.2 and make recommendations about their condition when advisable or 91.3 on request by the board; 91.4 (2) recommend to the board employment and dismissal of 91.5 teachers; 91.6 (3) superintend school grading practices and examinations 91.7 for promotions; 91.8 (4) make reports required by the commissioner; 91.9 (5) by January 10, submit an annual report to the 91.10 commissioner in a manner prescribed by the commissioner, in 91.11 consultation with school districts, identifying the expenditures 91.12 that the district requires to ensure an 80 percent and a 90 91.13 percent student passage rate on the basic standards test taken 91.14 in the eighth grade, identifying the amount of expenditures that 91.15 the district requires to ensure a 99 percent student passage 91.16 rate on the basic standards test by 12th grade, and how much the 91.17 district is cross-subsidizing programs with special education, 91.18 compensatorybasic skills, and general education revenue; and 91.19 (6) perform other duties prescribed by the board. 91.20 Sec. 15. Minnesota Statutes 1998, section 123B.52, is 91.21 amended by adding a subdivision to read: 91.22 Subd. 6. [DISPOSING OF SURPLUS SCHOOL 91.23 COMPUTERS.] Notwithstanding section 471.345 governing school 91.24 district contracts made upon sealed bid or otherwise complying 91.25 with the requirements for competitive bidding, other provisions 91.26 of this section governing school district contracts or other law 91.27 to the contrary, a school district under this subdivision may 91.28 dispose of a surplus school computer and related equipment if 91.29 the district disposes of the surplus property by conveying the 91.30 property and title to: 91.31 (1) another school district; 91.32 (2) the state department of corrections; 91.33 (3) the board of trustees of the Minnesota state colleges 91.34 and universities; or 91.35 (4) the family of a student residing in the district whose 91.36 total family income meets the federal definition of poverty. 92.1 EFFECTIVE DATE: This section is effective the day 92.2 following final enactment. 92.3 Sec. 16. Minnesota Statutes 1998, section 123B.77, 92.4 subdivision 3, is amended to read: 92.5 Subd. 3. [STATEMENT FOR COMPARISON AND CORRECTION.] By 92.6 November 30 of the calendar year of the submission of the 92.7 unaudited financial data, the district must provide to the 92.8 commissioner audited financial data for the preceding fiscal 92.9 year. The audit must be conducted in compliance with generally 92.10 accepted governmental auditing standards, the federal Single 92.11 Audit Act, and the Minnesota legal compliance guide issued by 92.12 the office of the state auditor. An audited financial statement 92.13 prepared in a form which will allow comparison with and 92.14 correction of material differences in the unaudited financial 92.15 data shall be submitted to the commissioner and the state 92.16 auditor by December 31. The audited financial statement must 92.17 also provide a statement of assurance pertaining to uniform 92.18 financial accounting and reporting standards compliance and a 92.19 copy of the management letter submitted to the district by the 92.20 school district's auditor. 92.21 Sec. 17. Minnesota Statutes 1998, section 123B.79, 92.22 subdivision 7, is amended to read: 92.23 Subd. 7. [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 92.24 district may maintain in a designatedreserve for certain 92.25 severance pay account not more than 50 percent of the amount 92.26 necessary to meet the obligations for the portion of severance 92.27 pay that constitutes compensation for accumulated sick leave to 92.28 be used for payment of premiums for group insurance provided for 92.29 former employees by the district. The amount necessary must be 92.30 calculated according to standards established by the advisory92.31 council on uniform financial accounting and reporting92.32 standardsdepartment. 92.33 Sec. 18. Minnesota Statutes 1999 Supplement, section 92.34 123B.83, subdivision 4, is amended to read: 92.35 Subd. 4. [SPECIAL OPERATING PLAN.] (1) If the net negative92.36 unappropriated operatingunreserved general fund balance as93.1 defined in section 126C.01, subdivision 11, calculated in 93.2 accordance with the uniform financial accounting and reporting 93.3 standards for Minnesota school districts, as of June 30 each 93.4 year, is more than 2-1/2 percent of the year's expenditure 93.5 amount, the district must, prior to January 31 of the next 93.6 fiscal year, submit a special operating plan to reduce the 93.7 district's deficit expenditures to the commissioner for 93.8 approval. The commissioner may also require the district to 93.9 provide evidence that the district meets and will continue to 93.10 meet all high school graduation requirements. 93.11 Notwithstanding any other law to the contrary, a district 93.12 submitting a special operating plan to the commissioner under 93.13 this clause which is disapproved by the commissioner must not 93.14 receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 93.15 124D, 125A, 126C, and 127A until a special operating plan of the 93.16 district is so approved. 93.17 (2) A district must receive aids pending the approval of 93.18 its special operating plan under clause (1). A district which 93.19 complies with its approved operating plan must receive aids as 93.20 long as the district continues to comply with the approved 93.21 operating plan. 93.22 Sec. 19. Minnesota Statutes 1998, section 123B.86, 93.23 subdivision 1, is amended to read: 93.24 Subdivision 1. [GENERAL PROVISIONS.] A district shall 93.25 provide equal transportation within the district for all school 93.26 children to any school when transportation is deemed necessary 93.27 by the school board because of distance or traffic condition in 93.28 like manner and form as provided in sections 123B.88 and 124.22393.29 123B.92, when applicable. 93.30 Sec. 20. Minnesota Statutes 1998, section 123B.88, 93.31 subdivision 3, is amended to read: 93.32 Subd. 3. [TRANSPORTATION SERVICES CONTRACTS.] The board 93.33 may contract for the furnishing of authorized transportation 93.34 under rules established by the commissionersection 123B.52, and 93.35 may purchase gasoline and furnish same to a contract carrier for 93.36 use in the performance of a contract with the school district 94.1 for transportation of school children to and from school. 94.2 Sec. 21. Minnesota Statutes 1998, section 123B.90, 94.3 subdivision 1, is amended to read: 94.4 Subdivision 1. [SCHOOL BUS SAFETY WEEK.] The third week of 94.5 school is designated as school bus safety week. 94.6 A school board may designate one day of school bus safety94.7 week as school bus driver day.94.8 EFFECTIVE DATE: This section is effective the day 94.9 following final enactment. 94.10 Sec. 22. Minnesota Statutes 1999 Supplement, section 94.11 123B.90, subdivision 2, is amended to read: 94.12 Subd. 2. [STUDENT TRAINING.] (a) Each district must 94.13 provide public school pupils enrolled in grades kindergarten 94.14 through 10 with age-appropriate school bus safety training. The 94.15 training must be results-oriented and shall consist of both 94.16 classroom instruction and practical training using a school 94.17 bus. Upon completing the training, a student shall be able to 94.18 demonstrate knowledge and understanding of at least the 94.19 following competencies and concepts: 94.20 (1) transportation by school bus is a privilege and not a 94.21 right; 94.22 (2) district policies for student conduct and school bus 94.23 safety; 94.24 (3) appropriate conduct while on the school bus; 94.25 (4) the danger zones surrounding a school bus; 94.26 (5) procedures for safely boarding and leaving a school 94.27 bus; 94.28 (6) procedures for safe street or road crossing; 94.29 (7) school bus evacuation and other emergency procedures; 94.30 and 94.31 (8) appropriate training on the use of lap belts or lap and 94.32 shoulder belts, if the district uses buses equipped with lap 94.33 belts or lap and shoulder belts. 94.34 (b) Each nonpublic school located within the district must 94.35 provide all nonpublic school pupils enrolled in grades 94.36 kindergarten through 10 who are transported by school bus at 95.1 public expense and attend school within the district's 95.2 boundaries with training as required in paragraph (a). The 95.3 school district shall make a bus available for the practical 95.4 training if the district transports the nonpublic students. 95.5 Each nonpublic school shall provide the instruction. 95.6 (c) All students enrolled in grades kindergarten through 3 95.7 who are transported by school bus and are enrolled during the 95.8 first or second week of school must demonstrate achievement of 95.9 the school bus safety training competencies by the end of the 95.10 third week of school. All students enrolled in grades 4 through 95.11 10 who are transported by school bus and are enrolled during the 95.12 first or second week of school must demonstrate achievement of 95.13 the competencies by the end of the sixth week of school. 95.14 Students enrolled in grades kindergarten through 10 who enroll 95.15 in a school after the second week of school and are transported 95.16 by school bus shall undergo school bus safety training and 95.17 demonstrate achievement of the school bus safety competencies 95.18 within four weeks of the first day of attendance. The pupil95.19 school transportation safety director in each district must 95.20 certify to the commissioner annually that all students 95.21 transported by school bus within the district have 95.22 satisfactorily demonstrated knowledge and understanding of the 95.23 school bus safety competencies according to this section or 95.24 provide an explanation for a student's failure to demonstrate 95.25 the competencies. The principal or other chief administrator of 95.26 each nonpublic school must certify annually to the publicschool 95.27 transportation safety director of the district in which the 95.28 school is located that all of the school's students transported 95.29 by school bus at public expense have received training. A 95.30 district may deny transportation to a student who fails to 95.31 demonstrate the competencies, unless the student is unable to 95.32 achieve the competencies due to a disability, or to a student 95.33 who attends a nonpublic school that fails to provide training as 95.34 required by this subdivision. 95.35 (d) A district and a nonpublic school with students 95.36 transported by school bus at public expense must, to the extent 96.1 possible, provide kindergarten pupils with bus safety training 96.2 before the first day of school. 96.3 (e) A district and a nonpublic school with students 96.4 transported by school bus at public expense must also provide 96.5 student safety education for bicycling and pedestrian safety, 96.6 for students enrolled in grades kindergarten through 5. 96.7 (f) A district and a nonpublic school with students 96.8 transported by school bus at public expense must make reasonable 96.9 accommodations for the school bus, bicycle, and pedestrian 96.10 safety training of pupils known to speak English as a second 96.11 language and pupils with disabilities. 96.12 Sec. 23. Minnesota Statutes 1999 Supplement, section 96.13 123B.91, subdivision 1, is amended to read: 96.14 Subdivision 1. [COMPREHENSIVE POLICY.] (a) Each district 96.15 mustshall develop and implement a comprehensive, written policy 96.16 governing pupil transportation safety, including transportation 96.17 of nonpublic school students, when applicable. The 96.18 policy shall, at minimum, must contain: 96.19 (1) provisions for appropriate student bus safety training 96.20 under section 123B.90; 96.21 (2) rules governing student conduct on school buses and in 96.22 school bus loading and unloading areas; 96.23 (3) a statement of parent or guardian responsibilities 96.24 relating to school bus safety; 96.25 (4) provisions for notifying students and parents or 96.26 guardians of their responsibilities and the rules, including the 96.27 district's seat belt policy, if applicable; 96.28 (5) an intradistrict system for reporting school bus 96.29 accidents or misconduct and a system for dealing with local law 96.30 enforcement officials in cases of criminal conduct on a school 96.31 bus; 96.32 (6) a discipline policy to address violations of school bus 96.33 safety rules, including procedures for revoking a student's bus 96.34 riding privileges in cases of serious or repeated misconduct; 96.35 (7) a system for integrating school bus misconduct records 96.36 with other discipline records; 97.1 (8) a statement of bus driver duties; 97.2 (9) planned expenditures for safety activities under97.3 section 123B.89 and,where applicable, provisions governing bus 97.4 monitor qualifications, training, and duties; 97.5 (10) rules governing the use and maintenance of type III 97.6 vehicles, drivers of type III vehicles, qualifications to drive 97.7 a type III vehicle, qualifications for a type III vehicle, and 97.8 the circumstances under which a student may be transported in a 97.9 type III vehicle; 97.10 (11) operating rules and procedures; 97.11 (12) provisions for annual bus driver in-service training 97.12 and evaluation; 97.13 (13) emergency procedures; 97.14 (14) a system for maintaining and inspecting equipment; 97.15 (15) requirements of the school district, if any, that 97.16 exceed state law minimum requirements for school bus operations; 97.17 and 97.18 (16) requirements for basic first aid training, which must 97.19 include the Heimlich maneuver and procedures for dealing with 97.20 obstructed airways, shock, bleeding, and seizures. 97.21 (b) Districts are encouraged to use the model policy 97.22 developed by the Minnesota school boards association, the 97.23 department of public safety, and the department of children, 97.24 families, and learning, as well as the current edition of the 97.25 "National Standards for School Buses and Operations97.26 Transportation," published by the National Safety Council,in 97.27 developing safety policies. Each district shall review its 97.28 policy annually and make appropriate amendments, which must be97.29 submitted to the school bus safety advisory committee within one97.30 month of approval by the school boardto ensure that it conforms 97.31 to law. 97.32 EFFECTIVE DATE: This section is effective the day 97.33 following final enactment. 97.34 Sec. 24. Minnesota Statutes 1998, section 124D.03, 97.35 subdivision 1, is amended to read: 97.36 Subdivision 1. [ESTABLISHMENT.] (a) An enrollment options 98.1 program is established to enable any pupil to attend a school or 98.2 program in a district in which the pupil does not reside, 98.3 subject to the limitations in this section. 98.4 (b) A district may refuse to allow a pupil who is expelled 98.5 under section 121A.45 to enroll during the term of the expulsion 98.6 if the student was expelled for: 98.7 (1) possessing a dangerous weapon, as defined by United 98.8 States Code, title 18, section 930, paragraph (g)(2), at school 98.9 or a school function; 98.10 (2) possessing or using an illegal drug at school or a 98.11 school function; 98.12 (3) selling or soliciting the sale of a controlled 98.13 substance while at school or a school function; or 98.14 (4) committing a third-degree assault as described in 98.15 section 609.223, subdivision 1. 98.16 EFFECTIVE DATE: This section is effective for the 98.17 2000-2001 school year and later. 98.18 Sec. 25. Minnesota Statutes 1998, section 124D.081, 98.19 subdivision 6, is amended to read: 98.20 Subd. 6. [PREPAREDNESS REVENUE.] (a) A qualifying school 98.21 district is eligible for first-grade preparedness revenue equal 98.22 to the basic formula allowance for that year times the number of 98.23 children five years of age or older enrolled in a kindergarten 98.24 program at the site on October 1 of the previous year times .53. 98.25 (b) This revenue must supplement and not replace 98.26 compensatory revenue that the district uses for the same or 98.27 similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 98.28 and 127A. 98.29 (c) A pupil enrolled in the first grade preparedness 98.30 program at a qualifying school site is eligible for 98.31 transportation under section 123B.88, subdivision 1. 98.32 (d) First grade preparedness revenue paid to a charter 98.33 school for which a school district is providing transportation 98.34 according to section 124D.10, subdivision 16, shall be decreased 98.35 by an amount equal to the product of $170the formula allowance 98.36 according to section 126C.10, subdivision 2, times .0485 times 99.1 the pupil units calculated according to paragraph (a). This 99.2 amount shall be paid to the school district for transportation 99.3 costs. 99.4 Sec. 26. Minnesota Statutes 1999 Supplement, section 99.5 124D.10, subdivision 3, is amended to read: 99.6 Subd. 3. [SPONSOR.] A school board, intermediate school 99.7 district school board, education districtsdistrict organized 99.8 under sections 123A.15 to 123A.19, charitable organization under 99.9 section 501(c) (3) of the Internal Revenue Code of 1986 that is 99.10 a member of the Minnesota council on foundations and reports an 99.11 end of year fund balance of at least $3,000,000, Minnesota 99.12 private college ,that grants two- or four-year degrees and is 99.13 registered with the higher education services office under 99.14 chapter 136A, community college, state university, technical 99.15 college, or the University of Minnesota may sponsor one or more 99.16 charter schools. 99.17 EFFECTIVE DATE: This section is effective the day 99.18 following final enactment. 99.19 Sec. 27. Minnesota Statutes 1999 Supplement, section 99.20 124D.10, subdivision 4, is amended to read: 99.21 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 99.22 authorize one or more licensed teachers under section 122A.18, 99.23 subdivision 1, to operate a charter school subject to approval 99.24 by the commissioner. A board must vote on charter school 99.25 application for sponsorship no later than 90 days after 99.26 receiving the application. After 90 days, the applicant may 99.27 apply to the commissioner. If a board elects not to sponsor a 99.28 charter school, the applicant may appeal the board's decision to 99.29 the commissioner. The appeal must be made no later than 90 days 99.30 after the school board elects not to sponsor a charter school. 99.31 If the commissioner authorizes the school, the commissioner must 99.32 sponsor the school according to this section. The school must 99.33 be organized and operated as a cooperative under chapter 308A or 99.34 nonprofit corporation under chapter 317A. 99.35 (b) Before the operators may form and operate a school, the 99.36 sponsor must file an affidavit with the commissioner stating its 100.1 intent to authorize a charter school. The affidavit must state 100.2 the terms and conditions under which the sponsor would authorize 100.3 a charter school. The commissioner must approve or disapprove 100.4 the sponsor's proposed authorization within 60 days of receipt 100.5 of the affidavit. Failure to obtain commissioner approval 100.6 precludes a sponsor from authorizing the charter school that was 100.7 the subject of the affidavit. 100.8 (c) The operators authorized to organize and operate a 100.9 school must hold an election for members of the school's board 100.10 of directors in a timely manner after the school is operating. 100.11 Any staff members who are employed at the school, including 100.12 teachers providing instruction under a contract with a 100.13 cooperative, and all parents of children enrolled in the school 100.14 may participate in the election. Licensed teachers employed at 100.15 the school, including teachers providing instruction under a 100.16 contract with a cooperative, must be a majority of the members 100.17 of the board of directors, unless the commissioner waives the 100.18 requirement for the school or the licensed teachers employed at 100.19 the school elect to constitute a majority that consists of both 100.20 teachers employed at the school and parents of children enrolled 100.21 in the school with a minimum of one teacher director and one 100.22 parent director. A provisional board may operate before the 100.23 election of the school's board of directors. Board of director 100.24 meetings must comply with section 471.705. 100.25 (d) The granting or renewal of a charter by a sponsoring 100.26 entity must not be conditioned upon the bargaining unit status 100.27 of the employees of the school. 100.28 Sec. 28. Minnesota Statutes 1999 Supplement, section 100.29 124D.10, subdivision 8, is amended to read: 100.30 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 100.31 school shall meet all applicable state and local health and 100.32 safety requirements. 100.33 (b) A school sponsored by a school board may be located in 100.34 any district, unless the school board of the district of the 100.35 proposed location disapproves by written resolution. If such a 100.36 board denies a request to locate within its boundaries a charter 101.1 school sponsored by another school board, the sponsoring school 101.2 board may appeal to the commissioner. If the commissioner 101.3 authorizes the school, the commissioner must sponsor the school. 101.4 (c) A charter school must be nonsectarian in its programs, 101.5 admission policies, employment practices, and all other 101.6 operations. A sponsor may not authorize a charter school or 101.7 program that is affiliated with a nonpublic sectarian school or 101.8 a religious institution. 101.9 (d) Charter schools must not be used as a method of 101.10 providing education or generating revenue for students who are 101.11 being home-schooled. 101.12 (e) The primary focus of a charter school must be to 101.13 provide a comprehensive program of instruction for at least one 101.14 grade or age group from five through 18 years of age. 101.15 Instruction may be provided to people younger than five years 101.16 and older than 18 years of age. 101.17 (f) A charter school may not charge tuition. 101.18 (g) A charter school is subject to and must comply with 101.19 chapter 363 and section 121A.04. 101.20 (h) A charter school is subject to and must comply with The 101.21 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 101.22 Minnesota Public School Fee law, sections 123B.34 to 123B.39. 101.23 (i) A charter school is subject to the same financial 101.24 audits, audit procedures, and audit requirements as a district. 101.25 The audit must be consistentin compliance with the requirements 101.26 of sections 123B.75 to 123B.83, except to the extent deviations 101.27 are necessary because of the program at the school. The 101.28 department of children, families, and learning, state auditor, 101.29 or legislative auditor may conduct financial, program, or 101.30 compliance audits. 101.31 (j) A charter school is a district for the purposes of tort 101.32 liability under chapter 466. 101.33 EFFECTIVE DATE: This section is effective the day 101.34 following final enactment. 101.35 Sec. 29. Minnesota Statutes 1998, section 124D.10, 101.36 subdivision 9, is amended to read: 102.1 Subd. 9. [ADMISSION REQUIREMENTS.] A charter school may 102.2 limit admission to: 102.3 (1) pupils within an age group or grade level; 102.4 (2) people who are eligible to participate in the 102.5 graduation incentives program under section 124D.68; or 102.6 (3) residents of a specific geographic area where the 102.7 percentage of the population of non-Caucasian people of that 102.8 area is greater than the percentage of the non-Caucasian 102.9 population in the congressional district in which the geographic 102.10 area is located, and as long as the school reflects the racial 102.11 and ethnic diversity of the specific area. 102.12 A charter school shall enroll an eligible pupil who submits 102.13 a timely application, unless the number of applications exceeds 102.14 the capacity of a program, class, grade level, or building. In 102.15 this case, pupils must be accepted by lot. If a charter school 102.16 is the only school located in a town serving pupils within a 102.17 particular grade level, then pupils that are residents of the 102.18 town must be given preference for enrollment before accepting 102.19 pupils by lot. If a pupil lives within two miles of a charter 102.20 school and the next closest public school is more than five 102.21 miles away, the charter school must give those pupils preference 102.22 for enrollment before accepting other pupils by lot. 102.23 A charter school shall give preference for enrollment to a 102.24 sibling of an enrolled pupil and to a foster child of that 102.25 pupil's parents before accepting other pupils by lot. 102.26 A charter school may not limit admission to pupils on the 102.27 basis of intellectual ability, measures of achievement or 102.28 aptitude, or athletic ability. 102.29 Sec. 30. Minnesota Statutes 1999 Supplement, section 102.30 124D.10, subdivision 11, is amended to read: 102.31 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 102.32 charter school must employ or contract with necessary teachers, 102.33 as defined by section 122A.15, subdivision 1, who hold valid 102.34 licenses to perform the particular service for which they are 102.35 employed in the school. The charter school's state aid may be 102.36 reduced under section 127A.42 if the school employs a teacher 103.1 who is not appropriately licensed or approved by the board of 103.2 teaching. The school may employ necessary employees who are not 103.3 required to hold teaching licenses to perform duties other than 103.4 teaching and may contract for other services. The school may 103.5 discharge teachers and nonlicensed employees. A person, without 103.6 holding a valid administrator's license, may perform 103.7 administrative, supervisory, or instructional leadership duties. 103.8 The board of directors also shall decide matters related to 103.9 the operation of the school, including budgeting, curriculum and 103.10 operating procedures. 103.11 Sec. 31. Minnesota Statutes 1999 Supplement, section 103.12 124D.10, subdivision 15, is amended to read: 103.13 Subd. 15. [REVIEW AND COMMENT.] The department must review 103.14 and comment on the evaluation, by the chartering school district103.15 sponsor, of the performance of a charter school before the 103.16 charter school's contract is renewed. A sponsor shall monitor 103.17 and evaluate the fiscal and student performance of the school, 103.18 and may for this purpose annually assess the school up to $10 103.19 per student up to a maximum of $3,500. The information fromfor 103.20 the review and comment shall be reported by the sponsor to the 103.21 commissioner of children, families, and learning in a timely 103.22 manner. Periodically, the commissioner shall report trends or 103.23 suggestions based on the evaluation of charter school contracts 103.24 to the education committees of the state legislature. 103.25 Sec. 32. Minnesota Statutes 1998, section 124D.10, 103.26 subdivision 20, is amended to read: 103.27 Subd. 20. [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 103.28 teacher employed by a district makes a written request for an 103.29 extended leave of absence to teach at a charter school whether 103.30 as an employee of the school, as an employee of a cooperative or 103.31 other teacher controlled professional association providing 103.32 instructional services to the school, or in any other capacity, 103.33 the district must grant the leave. The district must grant a 103.34 leave for any number of years requested by the teacher, and must 103.35 extend the leave at the teacher's request. The district may 103.36 require that the request for a leave or extension of leave be 104.1 made up to 90 days before the teacher would otherwise have to 104.2 report for duty. Except as otherwise provided in this 104.3 subdivision and except for section 122A.46, subdivision 7, the 104.4 leave is governed by section 122A.46, including, but not limited 104.5 to, reinstatement, notice of intention to return, seniority, 104.6 salary, and insurance. 104.7 During a leave, the teacher may continue to aggregate 104.8 benefits and credits in the teachers' retirement association 104.9 account by paying both the employer and employee contributions 104.10 based upon the annual salary of the teacher for the last full 104.11 pay period before the leave began. The retirement association 104.12 may impose reasonable requirements to efficiently administer 104.13 this subdivision. 104.14 Sec. 33. Minnesota Statutes 1999 Supplement, section 104.15 124D.10, subdivision 23, is amended to read: 104.16 Subd. 23. [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 104.17 SCHOOL CONTRACT.] (a) The duration of the contract with a 104.18 sponsor must be for the term contained in the contract according 104.19 to subdivision 6. The sponsor may or may not renew a contract 104.20 at the end of the term for any ground listed in paragraph (b). 104.21 A sponsor may unilaterally terminate a contract during the term 104.22 of the contract for any ground listed in paragraph (b). At 104.23 least 60 days before not renewing or terminating a contract, the 104.24 sponsor shall notify the board of directors of the charter 104.25 school of the proposed action in writing. The notice shall 104.26 state the grounds for the proposed action in reasonable detail 104.27 and that the charter school's board of directors may request in 104.28 writing an informal hearing before the sponsor within 14 days of 104.29 receiving notice of nonrenewal or termination of the contract. 104.30 Failure by the board of directors to make a written request for 104.31 a hearing within the 14-day period shall be treated as 104.32 acquiescence to the proposed action. Upon receiving a timely 104.33 written request for a hearing, the sponsor shall give reasonable 104.34 notice to the charter school's board of directors of the hearing 104.35 date. The sponsor shall conduct an informal hearing before 104.36 taking final action. The sponsor shall take final action to 105.1 renew or not renew a contract by the last day of classes in the 105.2 school year. If the sponsor is a local board, the school's 105.3 board of directors may appeal the sponsor's decision to the 105.4 commissioner. 105.5 (b) A contract may be terminated or not renewed upon any of 105.6 the following grounds: 105.7 (1) failure to meet the requirements for pupil performance 105.8 contained in the contract; 105.9 (2) failure to meet generally accepted standards of fiscal 105.10 management; 105.11 (3) violations of law; or 105.12 (4) other good cause shown. 105.13 If a contract is terminated or not renewed, the school must 105.14 be dissolved according to the applicable provisions of chapter 105.15 308A or 317A, except when the commissioner approves the decision 105.16 of a different eligible sponsor to authorize the charter school. 105.17 (c) The commissioner, after providing reasonable notice to 105.18 the governing body of a charter school and the existing sponsor, 105.19 and after providing an opportunity for a public hearing, may 105.20 terminate the existing sponsorial relationship if: 105.21 (1) the charter school has a history of financial 105.22 mismanagement; or 105.23 (2) the charter school has a history of repeated violations 105.24 of the law. 105.25 EFFECTIVE DATE: This section is effective the day 105.26 following final enactment. 105.27 Sec. 34. Minnesota Statutes 1999 Supplement, section 105.28 124D.11, subdivision 4, is amended to read: 105.29 Subd. 4. [BUILDING LEASE AID.] When a charter school finds105.30 it economically advantageous to rent or lease a building or land105.31 for any instructional purposes and it determines that the total105.32 operating capital revenue under section 126C.10, subdivision 13,105.33 is insufficient for this purpose, it may apply to the105.34 commissioner for building lease aid for this purpose.Criteria 105.35 for aid approval and revenue uses shall be as defined for the 105.36 building lease levy in section 126C.40, subdivision 1, 106.1 paragraphs (a) and (b). A charter school is eligible for 106.2 building lease aid. Buildings leased by charter schools must 106.3 meet all local and state building codes, state health and safety 106.4 requirements, and federal Americans with Disabilities Act 106.5 requirements. The commissioner shall approve the amount of 106.6 building lease aid. The amount of building lease aid per pupil 106.7 unit served for a charter school for any year shall not exceed106.8 equals the lesser of (a) 90 percent of the approved cost or (b) 106.9 the product of the pupil units served for the current school 106.10 year times $1,500$750. Existing charter schools must apply by 106.11 January 15 of the fiscal year in which the lease applies to be 106.12 considered for this program. The amount of building lease aid 106.13 shall be subject to proration based upon the actual 106.14 appropriation. 106.15 Sec. 35. Minnesota Statutes 1999 Supplement, section 106.16 124D.11, subdivision 6, is amended to read: 106.17 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 106.18 school is eligible to receive other aids, grants, and revenue 106.19 according to chapters 120A to 129C, as though it were a district. 106.20 (b) Notwithstanding paragraph (a), a charter school may not 106.21 receive aid, a grant, or revenue if a levy is required to obtain 106.22 the money, except as otherwise provided in this section. 106.23 (c) Federal aid received by the state must be paid to the 106.24 school, if it qualifies for the aid as though it were a school 106.25 district. 106.26 (d) A charter school may receive money from any source for 106.27 capital facilities needs. In the year-end report to the 106.28 commissioner of children, families, and learning, the charter 106.29 school shall report the total amount of funds received from 106.30 grants and other outside sources. 106.31 (e) Notwithstanding paragraph (a) or (b), a charter school 106.32 is eligiblemay apply for a grant to receive the aid portion of 106.33 integration revenue under section 124D.86, subdivision 3, for 106.34 enrolled students who are residents of a district that is 106.35 eligible for integration revenue if the enrollment of the pupil106.36 in the charter school contributes to desegregation or107.1 integration purposes. The commissioner shall determine grant 107.2 recipients and may adopt application guidelines. The grants 107.3 must be competitively determined and must demonstrate that the 107.4 enrollment of pupils in the charter school contributes to 107.5 desegregation or integration purposes as determined by the 107.6 commissioner. If the charter school has elected not to provide 107.7 transportation under section 124D.10, subdivision 16, the aid 107.8 shall be reduced by the amount per pupil unit specified for the 107.9 district where the charter school is located under section 107.10 123B.92, subdivision 8. 107.11 EFFECTIVE DATE: This section is effective the day 107.12 following final enactment. 107.13 Sec. 36. Minnesota Statutes 1998, section 124D.128, 107.14 subdivision 4, is amended to read: 107.15 Subd. 4. [TRANSPORTATION.] A district must report data to 107.16 the department as required by the department to account for 107.17 learning year summer transportation expenditures for this107.18 program must be included in nonregular transportation according107.19 to sections 124.225, subdivision 8; and 124.226, subdivision 4. 107.20 Sec. 37. Minnesota Statutes 1999 Supplement, section 107.21 126C.05, subdivision 3, is amended to read: 107.22 Subd. 3. [COMPENSATION REVENUE PUPIL UNITS.] Compensation 107.23 revenue pupil units for fiscal year 1998 and thereafter must be 107.24 computed according to this subdivision. 107.25 (a) The compensation revenue concentration percentage for 107.26 each building in a district equals the product of 100 times the 107.27 ratio of: 107.28 (1) the sum of the number of pupils enrolled in the 107.29 building eligible to receive free lunch plus one-half of the 107.30 pupils eligible to receive reduced priced lunch on October 1 of 107.31 the previous fiscal year; to 107.32 (2) the number of pupils enrolled in the building on 107.33 October 1 of the previous fiscal year. 107.34 (b) The compensation revenue pupil weighting factor for a 107.35 building equals the lesser of one or the quotient obtained by 107.36 dividing the building's compensation revenue concentration 108.1 percentage by 80.0. 108.2 (c) The compensation revenue pupil units for a building 108.3 equals the product of: 108.4 (1) the sum of the number of pupils enrolled in the 108.5 building eligible to receive free lunch and one-half of the 108.6 pupils eligible to receive reduced priced lunch on October 1 of 108.7 the previous fiscal year; times 108.8 (2) the compensation revenue pupil weighting factor for the 108.9 building; times 108.10 (3) .60. 108.11 (d) Notwithstanding paragraphs (a) to (c), for charter 108.12 schools and contracted alternative programs in the first year of 108.13 operation, or for any year of operation when the number of 108.14 pupils eligible for free or reduced lunch in the current year is 108.15 more than 20 percent greater than in the previous year, 108.16 compensation revenue pupil units shall be computed using data 108.17 for the current fiscal year. If the charter school or 108.18 contracted alternative program begins operation after October 1, 108.19 compensatory revenue pupil units shall be computed based on 108.20 pupils enrolled on an alternate date determined by the 108.21 commissioner, and the compensation revenue pupil units shall be 108.22 prorated based on the ratio of the number of days of student 108.23 instruction to 170 days. 108.24 (e) The percentages in this subdivision must be based on 108.25 the count of individual pupils and not on a building average or 108.26 minimum. 108.27 Sec. 38. Minnesota Statutes 1999 Supplement, section 108.28 127A.05, subdivision 6, is amended to read: 108.29 Subd. 6. [SURVEY OF DISTRICTS.] The commissioner of 108.30 children, families, and learning shall survey the state's school 108.31 districts and teacher preparation programs and report to the 108.32 education committees of the legislature by January 15 of each 108.33 odd-numbered year on the status of teacher early retirement 108.34 patterns, the teacher shortage, and the substitute teacher 108.35 shortage, including patterns and shortages in subject areas and 108.36 regions of the state. The report must also include how 109.1 districts are making progress in hiring teachers and substitutes 109.2 in the areas of shortage and a five-year projection of teacher 109.3 demand for each district. 109.4 Sec. 39. Minnesota Statutes 1999 Supplement, section 109.5 148.235, is amended by adding a subdivision to read: 109.6 Subd. 8. [NONPRESCRIPTION DRUGS IN SCHOOLS.] Nothing in 109.7 sections 148.171 to 148.285 prohibits a school nurse from 109.8 providing nonprescription drugs or medications to a pupil in a 109.9 school upon the request of a parent or guardian of the pupil as 109.10 long as the nonprescription drugs or medications are 109.11 administered in accordance with section 121A.22. 109.12 Sec. 40. Minnesota Statutes 1998, section 169.447, is 109.13 amended by adding a subdivision to read: 109.14 Subd. 2a. [PASSENGER LAP AND SHOULDER BELTS.] (a) In 109.15 addition to the requirements in section 169.4501, subdivision 1, 109.16 a school bus may be equipped with an approved lap belt or an 109.17 approved lap and shoulder belt installed for each 109.18 passenger-seating position on the bus. The design and 109.19 installation of lap belts and lap and shoulder belts required 109.20 under this paragraph must meet the standards of the commissioner 109.21 established under paragraph (b). 109.22 (b) The commissioner shall consider all concerns necessary 109.23 to properly integrate lap belts or lap and shoulder belts into 109.24 the current compartmentalization safety system and prescribe 109.25 standards for the design and installation of lap and shoulder 109.26 belts required under paragraph (a). The standards are not 109.27 subject to chapter 14 and are specifically not subject to 109.28 section 14.386. 109.29 (c) This subdivision does not apply to specially equipped 109.30 school buses under section 169.4504. 109.31 (d) A passenger on a school bus equipped with lap belts or 109.32 lap and shoulder belts must use these lap belts or lap and 109.33 shoulder belts unless the passenger, or if the passenger is a 109.34 minor, the passenger's parent or guardian, has notified the 109.35 school district in writing that the passenger does not intend to 109.36 wear the lap belt or lap and shoulder belt. 110.1 (e) In an action for personal injury or wrongful death 110.2 against a school district, a school bus operator under contract 110.3 with a school district, or any agent or employee of a school 110.4 district or operator, or against a volunteer, no such person or 110.5 entity shall be held liable solely because the injured party was 110.6 not wearing a safety belt; provided, however, that nothing 110.7 contained herein shall be construed to grant immunity from 110.8 liability for failure to: 110.9 (1) maintain in operating order any equipment required by 110.10 statute, rule, or school district policy; or 110.11 (2) comply with an applicable statute, rule, or school 110.12 district policy. 110.13 (f) In an action for personal injury or wrongful death, a 110.14 school district, a school bus contract operator, any agent or 110.15 employee of a school district or operator, or a volunteer is not 110.16 liable for failing to assist any child with the adjustment, 110.17 fastening, unfastening, or other use of the lap belt or lap and 110.18 shoulder belt. 110.19 EFFECTIVE DATE: This section is effective the day 110.20 following final enactment. 110.21 Sec. 41. Minnesota Statutes 1998, section 169.448, 110.22 subdivision 3, is amended to read: 110.23 Subd. 3. [HEAD START VEHICLE.] Notwithstanding subdivision 110.24 1, a vehicle used to transport passengersstudents under Public 110.25 Law Number 99-425, the Head Start Act, may be equipped as a 110.26 school bus or Head Start bus. 110.27 EFFECTIVE DATE: This section is effective the day 110.28 following final enactment. 110.29 Sec. 42. Minnesota Statutes 1998, section 171.06, 110.30 subdivision 2, is amended to read: 110.31 Subd. 2. [FEES.] (a) The fees for a license and Minnesota 110.32 identification card are as follows: 110.33 Classified Driver's License D-$18.50 C-$22.50 B-$29.50 A-$37.50 110.34 Classified Under-21 D.L. D-$18.50 C-$22.50 B-$29.50 A-$17.50 110.35 Instruction Permit $ 9.50 110.36 Provisional License $ 9.50 111.1 Duplicate License or 111.2 duplicate identification card $ 8.00 111.3 Minnesota identification card or Under-21 Minnesota 111.4 identification card, other than duplicate, 111.5 except as otherwise provided in section 171.07, 111.6 subdivisions 3 and 3a $12.50 111.7 (b) Notwithstanding paragraph (a), a person who holds a 111.8 provisional license and has a driving record free of (1) 111.9 convictions for a violation of section 169.121, 169.1218, 111.10 169.122, or 169.123, (2) convictions for crash-related moving 111.11 violations, and (3) convictions for moving violations that are 111.12 not crash related, shall have a $3.50 credit toward the fee for 111.13 any classified under-21 driver's license. "Moving violation" 111.14 has the meaning given it in section 171.04, subdivision 1. 111.15 (c) In addition to the driver's license fee required under 111.16 paragraph (a), the registrar shall collect an additional $4 111.17 processing fee from each new applicant or person renewing a 111.18 license with a school bus endorsement to cover the costs for 111.19 processing an applicant's initial and biennial physical 111.20 examination certificate. The department shall not charge these 111.21 applicants any other fee to receive or renew the endorsement. 111.22 EFFECTIVE DATE: This section is effective the day 111.23 following final enactment. 111.24 Sec. 43. Minnesota Statutes 1998, section 171.321, is 111.25 amended to read: 111.26 171.321 [QUALIFICATIONS OF SCHOOL BUS DRIVER.] 111.27 Subdivision 1. [SCHOOL BUS ENDORSEMENT.] (a) No person 111.28 shall drive a school bus when transporting school children to or 111.29 from school or upon a school-related trip or activity without 111.30 having a valid class A, class B, orclass C, or class D driver's 111.31 license with a school bus endorsement except that a person 111.32 possessing a valid driver's license but not a school bus 111.33 endorsement may drive a vehicle with a seating capacity of ten 111.34 or lessfewer persons used as a school bus but not outwardly 111.35 equipped or identified as a school bus. 111.36 (b) Notwithstanding section 171.08, a person who otherwise 112.1 meets the qualifications for a school bus endorsement or 112.2 temporary endorsement under subdivision 3, paragraph (b), may 112.3 drive a school bus for up to 30 days without an endorsement so 112.4 long as the employer of the person: 112.5 (1) has in possession all documentation required for 112.6 issuing the endorsement; and 112.7 (2) has forwarded proof of possession of the documentation 112.8 to the commissioner of public safety. 112.9 Subd. 1a. [RESPONSIBILITY FOR ENDORSEMENT STATUS.] It is 112.10 the responsibility of the commissioner of public safety to issue 112.11 a school bus endorsement to a qualified applicant. When the 112.12 endorsement has been issued, it is the responsibility of the 112.13 individual to whom the endorsement is issued to ensure that the 112.14 endorsement is in effect before the individual operates a school 112.15 bus. The employer of a school bus driver shall check the 112.16 endorsement status when the school bus driver is hired and at 112.17 least twice during each 12-month period thereafter. 112.18 Subd. 2. [RULES.] (a) The commissioner of public safety 112.19 shall prescribe rules governing the physical qualifications of 112.20 school bus drivers and tests required to obtain a school bus 112.21 endorsement. The rules must provide that an applicant for a 112.22 school bus endorsement or renewal is exempt from the physical 112.23 qualifications and medical examination required to operate a 112.24 school bus upon providing evidence of being medically examined 112.25 and certified within the preceding 24 months as physically 112.26 qualified to operate a commercial motor vehicle, pursuant to 112.27 Code of Federal Regulations, title 49, part 391, subpart E, or 112.28 rules of the commissioner of transportation incorporating those 112.29 federal regulations. The commissioner shall accept physical 112.30 examinations for school bus drivers conducted by medical 112.31 examiners authorized as provided by the Code of Federal 112.32 Regulations, title 49, chapter 3, part 391, subpart E. 112.33 (b) The commissioner of public safety, in conjunction with 112.34 the commissioner of economic security, shall adopt rules 112.35 prescribing a training program for Head Start bus drivers. The 112.36 program must provide for initial classroom and behind-the-wheel 113.1 training, and annual in-service training. The program must 113.2 provide training in defensive driving, human relations, 113.3 emergency and accident procedures, vehicle maintenance, traffic 113.4 laws, and use of safety equipment. The program must provide 113.5 that the training will be conducted by the contract operator for 113.6 a Head Start agency, the Head Start grantee, a licensed driver 113.7 training school, or by another person or entity approved by both 113.8 commissioners. 113.9 Subd. 3. [RECORDS CHECK OF APPLICANT.] (a) Before issuing 113.10 or renewing a school bus endorsement, the commissioner shall 113.11 conduct a criminal and driver's license records check of the 113.12 applicant. The commissioner may also conduct the check at any 113.13 time while a person is so licensed. The check shallmust 113.14 consist of a criminal records check of the state criminal 113.15 records repository and a check of the driver's license records 113.16 system. If the applicant has resided in Minnesota for less than 113.17 five years, the check shallmust also include a criminal records 113.18 check of information from the state law enforcement agencies in 113.19 the states where the person resided during the five years before 113.20 moving to Minnesota, and of the national criminal records 113.21 repository including the criminal justice data communications 113.22 network. The applicant's failure to cooperate with the 113.23 commissioner in conducting the records check is reasonable cause 113.24 to deny an application or cancel a school bus endorsement. The 113.25 commissioner may not release the results of the records check to 113.26 any person except the applicant or the applicant's designee in 113.27 writing. 113.28 (b) The commissioner may issue to an otherwise qualified 113.29 applicant a temporary school bus endorsement, effective for no 113.30 more than 180 days, upon presentation of (1) an affidavit by the 113.31 applicant that the applicant has not been convicted of a 113.32 disqualifying offense and (2) a criminal history check from each 113.33 state of residence for the previous five years. The criminal 113.34 history check may be conducted and prepared by any public or 113.35 private source acceptable to the commissioner. The commissioner 113.36 may reissue the temporary endorsement if the National Criminal 114.1 Records Repository check is timely submitted but not completed 114.2 within the 180-day period. 114.3 Subd. 4. [TRAINING.] (a) No person shall drive a class A, 114.4 B, C, or D school bus when transporting school children to or 114.5 from school or upon a school-related trip or activity without 114.6 having demonstrated sufficient skills and knowledge to transport 114.7 students in a safe and legal manner. 114.8 (b) A bus driver must have training or experience that 114.9 allows the driver to meet at least the following competencies: 114.10 (1) safely operate the type of school bus the driver will 114.11 be driving; 114.12 (2) understand student behavior, including issues relating 114.13 to students with disabilities; 114.14 (3) encourage orderly conduct of students on the bus and 114.15 handle incidents of misconduct appropriately; 114.16 (4) know and understand relevant laws, rules of the road, 114.17 and local school bus safety policies; 114.18 (5) handle emergency situations; and 114.19 (6) safely load and unload students. 114.20 (c) The commissioner of public safety, in conjunction with 114.21 the commissioner of children, families, and learning, shall 114.22 develop a comprehensive model school bus driver training program 114.23 and model assessments for school bus driver training 114.24 competencies, which are not subject to chapter 14. A school 114.25 district may use alternative assessments for bus driver training 114.26 competencies with the approval of the commissioner of public 114.27 safety. The employer shall keep the assessment for the current 114.28 period available for inspection by representatives of the 114.29 commissioner. 114.30 Subd. 5. [ANNUAL EVALUATION.] A school district's pupil 114.31 transportation safety director, the chief administrator of a 114.32 nonpublic school, or a private contractor shall certify annually 114.33 to the commissioner of public safetyschool board or governing 114.34 board of a nonpublic school that, at minimum, each school bus 114.35 driver meets the school bus driver training competencies under 114.36 subdivision 4 and shall report the number of hours of in-service115.1 training completed by each driver. A school district, nonpublic 115.2 school, or private contractor also shall provide in-service 115.3 training annually to each school bus driver. A district,115.4 nonpublic school, or private contractor also shall check the115.5 license of each person who transports students for the district115.6 with the National Drivers Register or the department of public115.7 safety annually. The school board must approve and forward the115.8 competency certification and in-service report to the115.9 commissioner of public safety.115.10 EFFECTIVE DATE: This section is effective the day 115.11 following final enactment. 115.12 Sec. 44. Minnesota Statutes 1998, section 354.05, 115.13 subdivision 2, is amended to read: 115.14 Subd. 2. [TEACHER.] (a) "Teacher" means: 115.15 (1) a person who renders service as a teacher, supervisor, 115.16 principal, superintendent, librarian, nurse, counselor, social 115.17 worker, therapist, or psychologist in the public schools of the 115.18 state located outside of the corporate limits of the cities of 115.19 the first class as those cities were so classified on January 1, 115.20 1979, or in the state colleges and universities system, or in 115.21 any charitable, penal, or correctional institutions of a 115.22 governmental subdivision, or who is engaged in educational 115.23 administration in connection with the state public school 115.24 system, including the state colleges and university system, but 115.25 excluding the University of Minnesota, whether the position be a 115.26 public office or an employment, not including members or 115.27 officers of any general governing or managing board or body; 115.28 (2) an employee of the teachers retirement association 115.29 unless the employee is covered by the Minnesota state retirement 115.30 system by virtue of prior employment by the association; 115.31 (3) a person who renders teaching service on a part-time 115.32 basis and who also renders other services for a single employing 115.33 unit. In such cases, the executive director shall determine 115.34 whether all or none of the combined service is covered by the 115.35 association, however a person whose teaching service comprises 115.36 at least 50 percent of the combined employment salary is a 116.1 member of the association for all services with the single 116.2 employing unit; or 116.3 (4) a person who renders services as a teacher, supervisor, 116.4 principal, superintendent, librarian, nurse, counselor, social 116.5 worker, therapist, or psychologist in a public school, 116.6 including, but not limited to, charter schools organized under 116.7 section 124D.10, when such services are provided by such person 116.8 as an employee of a teacher controlled professional association 116.9 formed under chapters 308A, 319B, 322B, 323, 323A, or any other 116.10 appropriate law. 116.11 (b) The term does not mean: 116.12 (1) an employee described in section 352D.02, subdivision 116.13 1a, who is hired after the effective date of Laws 1986, chapter 116.14 458; 116.15 (2) a person who works for a school or institution as an 116.16 independent contractor as defined by the Internal Revenue 116.17 Service; 116.18 (3) a person employed in subsidized on-the-job training, 116.19 work experience or public service employment as an enrollee 116.20 under the federal Comprehensive Employment and Training Act from 116.21 and after March 30, 1978, unless the person has, as of the later 116.22 of March 30, 1978, or the date of employment, sufficient service 116.23 credit in the retirement association to meet the minimum vesting 116.24 requirements for a deferred retirement annuity, or the employer 116.25 agrees in writing on forms prescribed by the executive director 116.26 to make the required employer contributions, including any 116.27 employer additional contributions, on account of that person 116.28 from revenue sources other than funds provided under the federal 116.29 Comprehensive Training and Employment Act, or the person agrees 116.30 in writing on forms prescribed by the executive director to make 116.31 the required employer contribution in addition to the required 116.32 employee contribution; 116.33 (4) a person holding a part-time adult supplementary 116.34 technical college license who renders part-time teaching service 116.35 in a technical college if (i) the service is incidental to the 116.36 regular nonteaching occupation of the person; and (ii) the 117.1 applicable technical college stipulates annually in advance that 117.2 the part-time teaching service will not exceed 300 hours in a 117.3 fiscal year and retains the stipulation in its records; and 117.4 (iii) the part-time teaching service actually does not exceed 117.5 300 hours in a fiscal year; or 117.6 (5) a person exempt from licensure pursuant to section 117.7 122A.30. 117.8 Sec. 45. Minnesota Statutes 1998, section 354A.011, 117.9 subdivision 27, is amended to read: 117.10 Subd. 27. [TEACHER.] "Teacher" means any person who 117.11 renders service in a public school district, including, but not 117.12 limited to, a charter school organized under section 124D.10, 117.13 located in the corporate limits of one of the cities of the 117.14 first class which was so classified on January 1, 1979, as any 117.15 of the following: 117.16 (a) a full-time employee in a position for which a valid 117.17 license from the state department of children, families, and 117.18 learning is required; 117.19 (b) an employee of the teachers retirement fund association 117.20 located in the city of the first class unless the employee has 117.21 exercised the option pursuant to Laws 1955, chapter 10, section 117.22 1, to retain membership in the Minneapolis employees retirement 117.23 fund established pursuant to chapter 422A; 117.24 (c) a part-time employee in a position for which a valid 117.25 license from the state department of children, families, and 117.26 learning is required; or117.27 (d) a part-time employee in a position for which a valid 117.28 license from the state department of children, families, and 117.29 learning is required who also renders other nonteaching services 117.30 for the school district unless the board of trustees of the 117.31 teachers retirement fund association determines that the 117.32 combined employment is on the whole so substantially dissimilar 117.33 to teaching service that the service shall not be covered by the 117.34 association; or 117.35 (e) an employee of a teacher controlled professional 117.36 association formed under chapter 308A, 319B, 322B, 323, 323A, or 118.1 any other appropriate law. 118.2 The term shall not mean any person who renders service in 118.3 the school district as any of the following: 118.4 (1) an independent contractor or the employee of an 118.5 independent contractor; 118.6 (2) an employee who is a full-time teacher covered by 118.7 another teachers retirement fund association established 118.8 pursuant to this chapter or chapter 354; 118.9 (3) an employee exempt from licensure pursuant to section 118.10 122A.30; 118.11 (4) an employee who is a teacher in a technical college 118.12 located in a city of the first class unless the person elects 118.13 coverage by the applicable first class city teacher retirement 118.14 fund association under section 354B.21, subdivision 2; or 118.15 (5) an employee who is a part-time teacher in a technical 118.16 college in a city of the first class and who has elected 118.17 coverage by the applicable first class city teacher retirement 118.18 fund association under section 354B.21, subdivision 2, but (i) 118.19 the teaching service is incidental to the regular nonteaching 118.20 occupation of the person; (ii) the applicable technical college 118.21 stipulates annually in advance that the part-time teaching 118.22 service will not exceed 300 hours in a fiscal year; and (iii) 118.23 the part-time teaching actually does not exceed 300 hours in the 118.24 fiscal year to which the certification applies. 118.25 Sec. 46. Minnesota Statutes 1998, section 471.15, is 118.26 amended to read: 118.27 471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 118.28 BONDS.] 118.29 (a) Any home rule charter or statutory city or any town, 118.30 county, school district, or any board thereof, or any 118.31 incorporated post of the American Legion or any other 118.32 incorporated veterans' organization, may expend not to exceed 118.33 $800 in any one year, for the purchase of awards and trophies 118.34 and may operate a program of public recreation and playgrounds; 118.35 acquire, equip, and maintain land, buildings, or other 118.36 recreational facilities, including an outdoor or indoor swimming 119.1 pool; and expend funds for the operation of such program 119.2 pursuant to the provisions of sections 471.15 to 471.19. The 119.3 city, town, county or school district may issue bonds pursuant 119.4 to chapter 475 for the purpose of carrying out the powers 119.5 granted by this section. The city, town, county or school 119.6 district may operate the program and facilities directly or 119.7 establish one or more recreation boards to operate all or 119.8 various parts of them. 119.9 (b) A town may expend funds for the purpose of supporting 119.10 student academic and extra curricula activities sponsored by the 119.11 local school district. 119.12 Sec. 47. Laws 1999, chapter 241, article 5, section 18, 119.13 subdivision 5, is amended to read: 119.14 Subd. 5. [CHARTER SCHOOL BUILDING LEASE AID.] For building 119.15 lease aid according to Minnesota Statutes, section 124D.11, 119.16 subdivision 4: 119.17 $2,992,000$5,981,000 ..... 2000 119.18 $3,616,000$9,975,000 ..... 2001 119.19 The 2000 appropriation includes $194,000 for 1999 and 119.20 $2,798,000$5,787,000 for 2000. 119.21 The 2001 appropriation includes $311,000$643,000 for 2000 119.22 and $3,305,000$9,332,000 for 2001. 119.23 EFFECTIVE DATE: This section is effective the day 119.24 following final enactment. 119.25 Sec. 48. Laws 1999, chapter 241, article 5, section 18, 119.26 subdivision 6, is amended to read: 119.27 Subd. 6. [CHARTER SCHOOL START-UP GRANTS.] For charter 119.28 school start-up cost aid under Minnesota Statutes, section 119.29 124D.11: 119.30 $1,789,000$1,955,000 ..... 2000 119.31 $1,876,000$2,926,000 ..... 2001 119.32 The 2000 appropriation includes $100,000 for 1999 and 119.33 $1,689,000$1,855,000 for 2000. 119.34 The 2001 appropriation includes $188,000$706,000 for 1999119.35 2000 and $1,688,000$2,720,000 for 2001. 119.36 Any balance in the first year does not cancel but is 120.1 available in the second year. This appropriation may also be 120.2 used for grants to convert existing schools into charter schools. 120.3 EFFECTIVE DATE: This section is effective the day 120.4 following final enactment. 120.5 Sec. 49. [MINNESOTA NEW TEACHER PROJECT.] 120.6 Subdivision 1. [ESTABLISHMENT; PARTICIPATION.] The 120.7 Minnesota new teacher project is established in the department 120.8 of children, families, and learning in order to retain new 120.9 teachers in the profession and to provide models for supporting 120.10 the professional development of first-year and second-year 120.11 teachers. In order for a school district to participate in the 120.12 new teacher project, a school board and an exclusive 120.13 representative of the teachers in the district, or for a charter 120.14 school the majority of the teachers, must agree to participate 120.15 in the new teacher project and to the district plan under 120.16 subdivision 2. 120.17 Subd. 2. [DISTRICT PLAN.] A district that participates in 120.18 the new teacher project must submit a plan for the project to 120.19 the commissioner for approval. The new teacher project plan 120.20 must be consistent with the knowledge and skills required in the 120.21 teacher licensure rules adopted by the board of teaching and the 120.22 state graduation requirements and include curricula of best 120.23 practice activities such as one-on-one mentoring, intensive 120.24 summer orientation, first-year and second-year training 120.25 workshops, peer review, mutual observation between new and 120.26 experienced teachers, classroom management techniques, cultural 120.27 diversity, reading strategies, lighter workloads, and first-year 120.28 residency. The plan must include the participation of a teacher 120.29 preparation program approved by the board of teaching. 120.30 Districts receiving a grant under this section must report 120.31 to the board of teaching regarding its chosen new teacher 120.32 project plan. 120.33 Subd. 3. [STATE MATCH.] A district that has an approved 120.34 new teacher project plan is eligible to receive $3,000 of state 120.35 money for each new teacher participating in the project. The 120.36 district must contribute $2,000 of district money for each new 121.1 teacher participating in the project. 121.2 Sec. 50. [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE 121.3 TASK FORCE.] 121.4 (a) The commissioner of employee relations shall convene a 121.5 task force on postretirement and active employee health care. 121.6 The task force shall identify strategies for providing 121.7 postretirement and active employee health care coverage for 121.8 public employees and make recommendations regarding the most 121.9 appropriate and efficient manner for providing postretirement 121.10 and active employee health care. 121.11 (b) One-half of the task force membership shall be composed 121.12 of employees and the other half of the membership must be 121.13 composed of employers. The task force shall include, but not be 121.14 limited to, the following: 121.15 (1) a representative of the department of employee 121.16 relations; 121.17 (2) a representative of the Minnesota state retirement 121.18 system; 121.19 (3) a representative of the teachers retirement 121.20 association; 121.21 (4) a representative of the public employees retirement 121.22 association; 121.23 (5) a representative of the first class city teacher 121.24 retirement fund associations; 121.25 (6) a representative of the first class city police and 121.26 fire department relief associations; 121.27 (7) a representative of the Minneapolis employees 121.28 retirement fund; 121.29 (8) a representative of the legislative coordinating 121.30 commission subcommittee on employee relations; 121.31 (9) one representative each from the Minnesota school 121.32 boards association, Minnesota service cooperatives, the 121.33 association of Minnesota counties, the Minnesota association of 121.34 townships, and the league of Minnesota cities; 121.35 (10) exclusive representatives of affected public 121.36 employees; and 122.1 (11) representatives of major public employers. 122.2 (c) The task force shall report its findings and 122.3 recommendations to the legislature by November 15, 2000. The 122.4 report shall address: 122.5 (1) alternative methods of providing and paying for 122.6 postretirement and active employee health care; 122.7 (2) the estimated cost of providing postretirement and 122.8 active employee health care under various alternatives, 122.9 including statewide, regional, or market alternatives; 122.10 (3) the most efficient administrative structure for 122.11 providing for postretirement and active employee health care; 122.12 and 122.13 (4) issues of adverse selection, cost containment, consumer 122.14 choice, and consider options for dealing with other employee 122.15 concerns. 122.16 (d) The task force shall conduct the study and assemble 122.17 data in a manner that will provide for the ability to conduct 122.18 analysis for subsets of the groups being studied by employer and 122.19 employee types. 122.20 Sec. 51. [TASK FORCE ON SCHOOL GOVERNANCE AND MANAGEMENT.] 122.21 Subdivision 1. [ESTABLISHMENT.] The task force on school 122.22 governance and management is established to examine the existing 122.23 constitutional and statutory provisions that dictate the 122.24 governance responsibilities and authority of the respective 122.25 components of the state's public education system. 122.26 Subd. 2. [MEMBERSHIP; STAFFING.] (a) The task force on 122.27 school governance and management must be composed of nine 122.28 members, with three members appointed by the governor, three 122.29 members appointed by the speaker of the house of 122.30 representatives, and three members appointed by the subcommittee 122.31 on committees of the senate committee on rules and 122.32 administration. Members should represent the business 122.33 community, education stakeholders, parents, or other interested 122.34 community members. 122.35 (b) The executive branch through the office of the governor 122.36 shall make staff available to assist the task force. 123.1 Subd. 3. [REPORT.] (a) The task force on school governance 123.2 and management must report to the governor and the appropriate 123.3 committees of the house and senate no later than December 1, 123.4 2000. 123.5 (b) The task force must do the following: 123.6 (1) identify any governance or organizational barriers that 123.7 inhibit or preclude schools or school districts from: 123.8 (i) ensuring all students meet state and local graduation 123.9 standards; 123.10 (ii) ensuring instructional programs are available to meet 123.11 individual student's academic needs; 123.12 (iii) making efficient changes in instructional and 123.13 noninstructional program and service delivery; and 123.14 (iv) delegating instructional and general operating 123.15 decision-making to the school level; and 123.16 (2) make recommendations regarding the statutory changes 123.17 needed to enable school districts to: 123.18 (i) continuously identify changes to meet the needs of 123.19 student cohorts; 123.20 (ii) provide a variety of instructional opportunities to 123.21 meet individual student needs; 123.22 (iii) measure individual student academic achievement; and 123.23 (iv) modify or expand instructional programs if student 123.24 achievement does not meet expectations. 123.25 Subd. 4. [EXPIRATION.] The task force on school governance 123.26 and management expires on December 31, 2000. 123.27 EFFECTIVE DATE: This section is effective the day 123.28 following final enactment. 123.29 Sec. 52. [2000-2001 SCHOOL YEAR START DATE.] 123.30 Subdivision 1. [LABOR DAY START.] Notwithstanding 123.31 Minnesota Statutes, section 120A.40, for the 2000-2001 school 123.32 year only, a district must not begin the elementary or secondary 123.33 school year prior to Labor Day. 123.34 Subd. 2. [MABEL-CANTON.] Notwithstanding subdivision 1 and 123.35 Minnesota Statutes, section 120A.40, for the 2000-2001 school 123.36 year only, independent school district No. 238, Mabel-Canton, 124.1 may start the school year up to five weekdays before Labor Day 124.2 for the purpose of scheduling an additional academic term during 124.3 the regular school year. 124.4 Sec. 53. [TEACHER PREPARATION PROGRAM CREATED.] 124.5 Subdivision 1. [TEACHER PREPARATION LEADING TO LICENSURE.] 124.6 The board of trustees of the Minnesota state colleges and 124.7 universities shall offer a program of teacher preparation 124.8 leading to licensure, involving Metropolitan state university, 124.9 Inver Hills community college, and Minneapolis community and 124.10 technical college. The institutions involved shall enter into 124.11 an agreement whereby Inver Hills community college and 124.12 Minneapolis community and technical college shall provide the 124.13 first two years of the program, and Metropolitan state 124.14 university shall provide the final two years of the program. In 124.15 fall semester 2000, Minneapolis community and technical college 124.16 and Inver Hills community college shall offer a preeducation 124.17 program. After development of the program in fiscal year 2001, 124.18 Metropolitan state university shall begin its licensure program 124.19 in fall semester 2001. The program shall focus on preparing 124.20 teachers to meet the specific needs of urban and inner-ring 124.21 suburban schools and shall emphasize significant direct 124.22 classroom teaching experience and mentoring throughout each 124.23 student's preparation. The program may also focus on the 124.24 professional development of pre-tenure teachers. Metropolitan 124.25 state university, Inver Hills community college, and Minneapolis 124.26 community and technical college are encouraged to enter into 124.27 partnerships with urban and inner-ring suburban schools to 124.28 provide for significant involvement of elementary and secondary 124.29 teachers in the mentoring of students enrolled in the program. 124.30 The program shall establish a goal that at least 50 percent of 124.31 the participants be students of color. 124.32 Subd. 2. [REPORT REQUIRED.] By February 15, 2002, the 124.33 board of trustees shall provide a progress report to the chairs 124.34 of the higher education finance divisions of the legislature 124.35 regarding the development of the teacher preparation program. 124.36 The report shall include feedback from enrolled students 125.1 concerning how the program meets their needs, as well as from 125.2 cooperating elementary and secondary schools on how the students 125.3 are performing on site. The report shall also include the 125.4 number of participants in the program who are students of color. 125.5 Sec. 54. [CHARTER SCHOOL BUILDING LEASE AID ADJUSTMENT.] 125.6 Notwithstanding Minnesota Statutes, section 124D.11, 125.7 subdivision 4, for fiscal year 2000 and fiscal year 2001 only, 125.8 the amount of building lease aid for a charter school with a 125.9 lease signed before March 15, 2000, equals the lesser of: 125.10 (1) 90 percent of the approved cost in the current year for 125.11 leases signed before March 15, 2000; or 125.12 (2) the product of the pupil units served for the current 125.13 school year times $1,500. 125.14 EFFECTIVE DATE: This section is effective the day 125.15 following final enactment. 125.16 Sec. 55. [CHARTER SCHOOL BUILDING LEASE AID REVIEW.] 125.17 The department of children, families, and learning shall 125.18 work with charter school operators and other interested parties 125.19 to create recommendations for appropriate criteria for charter 125.20 school building lease aid and report its findings to the 125.21 education committees of the legislature by January 15, 2001. 125.22 Sec. 56. [APPROPRIATIONS.] 125.23 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 125.24 LEARNING.] The sum indicated in this section is appropriated 125.25 from the general fund to the department of children, families, 125.26 and learning for the fiscal year indicated. 125.27 Subd. 2. [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE.] 125.28 For a report on postretirement and active employee health care: 125.29 $150,000 ..... 2001 125.30 Subd. 3. [BUSINESS CHARTER SCHOOL START-UP GRANT.] For a 125.31 new charter school with a business immersion program that 125.32 occupies a publicly owned building in St. Paul: 125.33 $200,000 ..... 2001 125.34 Subd. 4. [PROFESSIONAL TEACHING STANDARDS.] For grant 125.35 awards for national board for professional teaching standards 125.36 certification according to Laws 1997, First Special Session 126.1 chapter 4, article 5, section 22: 126.2 $150,000 ..... 2001 126.3 Sec. 57. [REPEALER.] 126.4 Minnesota Statutes 1998, section 120A.41, is repealed 126.5 effective for the 2000-2001 and later school years. 126.6 ARTICLE 6 126.7 NUTRITION AND OTHER PROGRAMS 126.8 Section 1. [123B.575] [PESTICIDE APPLICATION AT SCHOOLS.] 126.9 Subdivision 1. [PARENTS' RIGHT-TO-KNOW ACT.] Subdivisions 126.10 2 to 9 may be cited as the Janet B. Johnson Parents' 126.11 Right-to-Know Act of 2000. 126.12 Subd. 2. [PESTICIDE APPLICATION NOTIFICATION.] A school 126.13 that plans to apply a pesticide which is a toxicity category I, 126.14 II, or III pesticide product, as classified by the United States 126.15 Environmental Protection Agency, or a restricted use pesticide, 126.16 as designated under the Federal Insecticide, Fungicide, and 126.17 Rodenticide Act, must provide a notice to parents and employees 126.18 that it applies such pesticides. The notice required under 126.19 subdivision 3 must: 126.20 (1) provide that an estimated schedule of the pesticide 126.21 applications is available for review or copying at the school 126.22 offices where such pesticides are applied; 126.23 (2) state that long-term health effects on children from 126.24 the application of such pesticides or the class of chemicals to 126.25 which they belong may not be fully understood; 126.26 (3) inform parents that a parent may request the school 126.27 notify him or her in the manner specified in subdivision 6 126.28 before any application of a pesticide listed in this subdivision. 126.29 Subd. 3. [NOTICE; TIMING; DISTRIBUTION.] The notice must 126.30 be provided during the first two weeks of each school year 126.31 during which pesticides listed in subdivision 2 are planned to 126.32 be applied. The notice may be included with other notices 126.33 provided by the school, but must be separately identified and 126.34 clearly visible to the reader. 126.35 Subd. 4. [SCHOOL HANDBOOK OR NEWSLETTER INFORMATION.] In 126.36 addition to the notice provided during the first two weeks of 127.1 the school year, a school that is required to provide notice 127.2 under this section shall include in any school handbook or 127.3 newsletter a section informing parents that an estimated 127.4 schedule of applications of pesticides listed in subdivision 2 127.5 is available for review or copying at the school offices, and 127.6 that a parent may receive prior notice of each application if 127.7 specifically requested. 127.8 Subd. 5. [NOTICE AVAILABILITY.] A school that uses a 127.9 pesticide listed in subdivision 2 must keep a copy of all 127.10 notifications required under subdivisions 2 and 3 in a manner 127.11 available to the public. 127.12 Subd. 6. [NOTIFICATION FOR INDIVIDUAL PARENTS.] A parent 127.13 of a student at a school may request that the school principal 127.14 or other person having general control and supervision of the 127.15 school notify the parent prior to the application of any 127.16 pesticides listed in subdivision 2 at the school. The school 127.17 principal or other person having general control and supervision 127.18 of the school must provide reasonable notice to a parent who has 127.19 requested such notification prior to applying such pesticides. 127.20 The notice may be waived for emergency applications required 127.21 only by appropriate state or local health officials. The notice 127.22 must include the pesticide to be applied, the time of the 127.23 planned application, and the location at the school of the 127.24 planned application. 127.25 Subd. 7. [MODEL NOTICE.] The department of health, in 127.26 consultation with the department of children, families, and 127.27 learning and the office of environmental assistance, shall 127.28 develop and make available to schools by August 1, 2000, a model 127.29 notice in a form that can be used by a school if it chooses to 127.30 do so. The model notice must include the information required 127.31 by this section. The department of health must provide an 127.32 opportunity for environmental groups and interested parents to 127.33 work with the department in developing the model notice. 127.34 Subd. 8. [PLAN.] A school is not required to adopt an 127.35 integrated pest management plan. A school board may only notify 127.36 students, parents, or employees that it has adopted an 128.1 integrated pest management plan if the plan is a managed pest 128.2 control program designed to minimize the risk to human health 128.3 and the environment and to reduce the use of chemical 128.4 pesticides, and which ranks the district's response to pests in 128.5 the following manner: 128.6 (1) identifying pests which need to be controlled; 128.7 (2) establishing tolerable limits of each identified pest; 128.8 (3) designing future buildings and landscapes to prevent 128.9 identified pests; 128.10 (4) excluding identified pests from sites and buildings 128.11 using maintenance practices; 128.12 (5) adapting cleaning activities and best management 128.13 practices to minimize the number of pests; 128.14 (6) using mechanical methods of controlling identified 128.15 pests; and 128.16 (7) controlling identified pests using the least toxic 128.17 pesticides with the least exposure to persons as is practicable. 128.18 Subd. 9. [PESTICIDE DEFINED; CLEANING PRODUCTS 128.19 EXCLUDED.] For purposes of this section, the term "pesticide" 128.20 has the meaning given it in section 18B.01, subdivision 18, 128.21 except that it does not include any disinfectants, sanitizers, 128.22 deodorizers, or antimicrobial agents used for general cleaning 128.23 purposes. 128.24 Subd. 10. [PEST DEFINED.] For purposes of this section, 128.25 the term "pest" has the meaning given it in section 18B.01, 128.26 subdivision 17. 128.27 Subd. 11. [SCHOOL DEFINED.] For the purposes of this 128.28 section, "school" means a school as defined in section 120A.22, 128.29 subdivision 4, excluding home schools. 128.30 Subd. 12. [IMMUNITY FROM LIABILITY.] No cause of action 128.31 may be brought against a school district, a school, or the 128.32 districts or school's employees or agents for any action taken 128.33 by them in performing their duties under this section. 128.34 EFFECTIVE DATE: This section is effective August 1, 2000. 128.35 Sec. 2. Minnesota Statutes 1998, section 123B.80, is 128.36 amended by adding a subdivision to read: 129.1 Subd. 4. [FUND TRANSFER.] A district may permanently 129.2 transfer funds without a levy reduction under section 475.61 if 129.3 at least 30 days prior to the transfer it adopts a board 129.4 resolution authorizing the action and informs each property 129.5 taxpayer in the district by first-class mail of the proposed 129.6 amount to be transferred. The notice must indicate that state 129.7 law requires the district to otherwise reduce school levies and 129.8 that levies will be higher by the amount. This notice 129.9 requirement also applies to any transfer made under this section 129.10 or by any special provision enacted into law. If the transfer 129.11 under this section or special law would not otherwise have 129.12 resulted in a levy reduction, the notice must include the amount 129.13 and must indicate that property tax levies will not be used for 129.14 the original purpose for which they were levied. 129.15 Sec. 3. Minnesota Statutes 1998, section 124D.111, 129.16 subdivision 1, is amended to read: 129.17 Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school 129.18 year, the state must pay districts participating in the national 129.19 school lunch program the amount of 6.5eight cents for each full 129.20 paid, reduced, and free student lunch served to students in the 129.21 district. 129.22 EFFECTIVE DATE: This section is effective the day 129.23 following final enactment. 129.24 Sec. 4. Laws 1999, chapter 241, article 6, section 14, 129.25 subdivision 2, is amended to read: 129.26 Subd. 2. [ABATEMENT AID.] For abatement aid according to 129.27 Minnesota Statutes, section 127A.49: 129.28 $9,110,000$9,577,000 ..... 2000 129.29 $8,947,000$8,279,000 ..... 2001 129.30 The 2000 appropriation includes $1,352,000 for 1999 and 129.31 $7,758,000$8,225,000 for 2000. 129.32 The 2001 appropriation includes $861,000$914,000 for 2000 129.33 and $8,086,000$7,365,000 for 2001. 129.34 EFFECTIVE DATE: This section is effective the day 129.35 following final enactment. 129.36 Sec. 5. Laws 1999, chapter 241, article 6, section 14, 130.1 subdivision 3, is amended to read: 130.2 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 130.3 education aid according to Minnesota Statutes, sections 123B.40 130.4 to 123B.48 and 123B.87: 130.5 $10,996,000$11,552,000 ..... 2000 130.6 $11,878,000$12,757,000 ..... 2001 130.7 The 2000 appropriation includes $970,000 for 1999 and 130.8 $10,026,000$10,582,000 for 2000. 130.9 The 2001 appropriation includes $1,114,000$1,175,000 for 130.10 2000 and $10,764,000$11,582,000 for 2001. 130.11 The department shall recompute the maximum allotments 130.12 established on March 1, 1999, for fiscal year 2000 under 130.13 Minnesota Statutes, sections 123B.42, subdivision 3, and 130.14 123B.44, subdivision 6, to reflect the amount appropriated in 130.15 this subdivision for fiscal year 2000. 130.16 EFFECTIVE DATE: This section is effective the day 130.17 following final enactment. 130.18 Sec. 6. Laws 1999, chapter 241, article 6, section 14, 130.19 subdivision 4, is amended to read: 130.20 Subd. 4. [CONSOLIDATION TRANSITION AID.] For districts 130.21 consolidating under Minnesota Statutes, section 123A.485: 130.22 $451,000$563,000 ..... 2000 130.23 $375,000$455,000 ..... 2001 130.24 The 2000 appropriation includes $113,000 for 1999 and 130.25 $338,000$450,000 for 2000. 130.26 The 2001 appropriation includes $37,000$50,000 for 2000 130.27 and $338,000$405,000 for 2001. 130.28 Any balance in the first year does not cancel but is 130.29 available in the second year. 130.30 EFFECTIVE DATE: This section is effective the day 130.31 following final enactment. 130.32 Sec. 7. Laws 1999, chapter 241, article 6, section 14, 130.33 subdivision 5, is amended to read: 130.34 Subd. 5. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 130.35 pupil transportation aid under Minnesota Statutes, section 130.36 123B.92, subdivision 9: 131.1 $18,586,000$20,358,000 ..... 2000 131.2 $20,922,000$21,333,000 ..... 2001 131.3 The 2000 appropriation includes $1,848,000 for 2000 and 131.4 $16,738,000$18,510,000 for 2001. 131.5 The 2001 appropriation includes $1,860,000$2,057,000 for 131.6 2000 and $19,062,000$19,276,000 for 2001. 131.7 EFFECTIVE DATE: This section is effective the day 131.8 following final enactment. 131.9 Sec. 8. Laws 1999, chapter 241, article 7, section 2, 131.10 subdivision 2, is amended to read: 131.11 Subd. 2. [SCHOOL LUNCH AID.] (a) For school lunch aid 131.12 according to Minnesota Statutes, section 124D.111, and Code of 131.13 Federal Regulations, title 7, section 210.17, and for school 131.14 milk aid according to Minnesota Statutes, section 124D.118: 131.15 $8,200,000 ..... 2000 131.16 $8,200,000 ..... 2001 131.17 (b) Any unexpended balance remaining from the 131.18 appropriations in this subdivision shall be prorated among 131.19 participating schools based on the number of free, reduced, and 131.20 fully paid federally reimbursable student lunches served during 131.21 that school year. 131.22 (c) If the appropriation amount attributable to either year131.23 is insufficient, the rate of payment for each fully paid student131.24 lunch shall be reduced and the aid for that year shall be131.25 prorated among participating schools so as not to exceed the131.26 total authorized appropriation for that year.131.27 (d)Not more than $800,000 of the amount appropriated each 131.28 year may be used for school milk aid. 131.29 EFFECTIVE DATE: This section is effective the day 131.30 following final enactment. 131.31 Sec. 9. Laws 1999, chapter 241, article 7, section 2, 131.32 subdivision 5, is amended to read: 131.33 Subd. 5. [SCHOOL BREAKFAST.] To operate the school 131.34 breakfast program according to Minnesota Statutes, sections 131.35 124D.115 and 124D.117: 131.36 $456,000$713,000 ..... 2000 132.1 $456,000$713,000 ..... 2001 132.2 If the appropriation amount attributable to either year is132.3 insufficient, the rate of payment for each fully paid student132.4 breakfast shall be reduced and the aid for that year shall be132.5 prorated among participating schools so as not to exceed the132.6 total authorized appropriation for that year.Any unexpended 132.7 balance remaining shall be used to subsidize the payments made 132.8 for school lunch aid per Minnesota Statutes, section 124D.111. 132.9 Up to one percent of the program funding can be used by the 132.10 department of children, families, and learning for technical and 132.11 administrative assistance. 132.12 EFFECTIVE DATE: This section is effective the day 132.13 following final enactment. 132.14 Sec. 10. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 132.15 WEB SITE.] 132.16 The department of children, families, and learning must 132.17 maintain a list of pesticides that are classified as toxicity 132.18 category I, II, or III pesticide products or as restricted use 132.19 pesticides under the Federal Insecticide, Fungicide, and 132.20 Rodenticide Act. The department must maintain the list on its 132.21 Web site or as a prominent link on its Web site to another state 132.22 or federal agency's Web site. 132.23 EFFECTIVE DATE: This section is effective August 1, 2000. 132.24 Sec. 11. [FUND TRANSFERS.] 132.25 Subdivision 1. [BROWERVILLE.] Notwithstanding Minnesota 132.26 Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 132.27 on June 30, 2000, independent school district No. 787, 132.28 Browerville, may permanently transfer up to $110,000 from its 132.29 debt redemption fund to its operating capital fund without 132.30 making a levy reduction. 132.31 Subd. 2. [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 132.32 Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 132.33 2000, upon approval of the commissioner of children, families, 132.34 and learning, independent school district No. 771, 132.35 Chokio-Alberta, may permanently transfer up to $121,000 from its 132.36 reserved account for disabled accessibility to its undesignated 133.1 general fund balance. 133.2 (b) Prior to making the fund transfer, independent school 133.3 district No. 771, Chokio-Alberta, must demonstrate to the 133.4 commissioner's satisfaction that the district's school buildings 133.5 are accessible to students or employees with disabilities. 133.6 Subd. 3. [FERGUS FALLS.] Notwithstanding Minnesota 133.7 Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 133.8 independent school district No. 544, Fergus Falls, on June 30, 133.9 2000, may permanently transfer up to $200,000 from the debt 133.10 redemption fund to the general fund without making a levy 133.11 reduction. 133.12 Subd. 4. [GRAND MEADOW.] Notwithstanding Minnesota 133.13 Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 133.14 independent school district No. 495, Grand Meadow, may 133.15 permanently transfer up to $300,000 from its disabled access 133.16 account in the general fund to its capital fund. This transfer 133.17 is contingent upon the school district's successful construction 133.18 of a new kindergarten through grade 12 school. 133.19 Subd. 5. [LAKEVILLE.] Notwithstanding Minnesota Statutes, 133.20 section 123B.79 or 123B.80, independent school district No. 194, 133.21 Lakeville, may transfer up to $1,000,000 from its reserved 133.22 account for operating capital to the unreserved, undesignated 133.23 general fund. When independent school district No. 194, 133.24 Lakeville, attains a positive unreserved, undesignated general 133.25 fund balance greater than ten percent of the most recent fiscal 133.26 year's expenditures, the district shall transfer the amount 133.27 exceeding ten percent to its reserve account for operating 133.28 capital until an amount is transferred back that is equal to the 133.29 amount transferred under this authority. This subdivision 133.30 expires on December 31, 2014. 133.31 Subd. 6. [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 133.32 sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 133.33 30, 2000, independent school district No. 832, Mahtomedi, may 133.34 permanently transfer up to $525,000 from its debt redemption 133.35 fund to its capital account in its general fund without making a 133.36 levy reduction to purchase land for a school facility. 134.1 Subd. 7. [NORMAN COUNTY EAST.] Notwithstanding Minnesota 134.2 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 134.3 on June 2000, independent school district No. 2215, Norman 134.4 County East, may permanently transfer up to $419,000 from its 134.5 building construction fund to the reserved account for operating 134.6 capital in the general fund without making a levy reduction. 134.7 Subd. 8. [ST. FRANCIS.] Notwithstanding Minnesota 134.8 Statutes, section 123B.53, on June 30, 2000, independent school 134.9 district No. 15, St. Francis, may permanently transfer $543,000 134.10 from its debt service fund to the general fund to help the 134.11 district out of statutory operating debt without making a levy 134.12 reduction. This transfer is contingent upon the district 134.13 maintaining 105 percent of principal and interest against the 134.14 debt service fund liabilities. 134.15 Subd. 9. [STAPLES-MOTLEY.] Notwithstanding Minnesota 134.16 Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 134.17 on May 31, 2000, independent school district No. 2170, 134.18 Staples-Motley, may permanently transfer up to $71,000 from the 134.19 debt service account of the former independent school district 134.20 No. 483, Motley, to independent school district No. 2170, 134.21 Staples-Motley's, operating capital fund without making a levy 134.22 reduction. 134.23 Subd. 10. [WIN-E-MAC.] At the completion of the 134.24 consolidation of independent school district No. 604, Mentor, 134.25 and independent school district No. 2609, Win-E-Mac, up to 134.26 $125,000 may be transferred from the former Mentor school 134.27 district health and safety reserve fund to the Win-E-Mac health 134.28 and safety reserve fund. 134.29 Subd. 11. [PARKERS PRAIRIE.] Notwithstanding Minnesota 134.30 Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 134.31 independent school district No. 547, Parkers Prairie, on June 134.32 30, 2000, may permanently transfer up to $105,000 from the debt 134.33 redemption fund to the reserved account for operating capital in 134.34 the general fund without making a levy reduction. 134.35 EFFECTIVE DATE: This section is effective the day 134.36 following final enactment. 135.1 Sec. 12. [INTERMEDIATE DISTRICTS.] 135.2 Notwithstanding any termination date in the agreements 135.3 between the intermediate school districts and the Minnesota 135.4 state colleges and universities board for the use of space in 135.5 the technical colleges or any law to the contrary, the 135.6 agreements shall not expire or terminate. 135.7 Sec. 13. [REVIEW OF FEDERAL RESTRICTIONS ON SCHOOL TRUST 135.8 FUND LANDS.] 135.9 The attorney general and the commissioner of natural 135.10 resources shall review the extent to which federal law and 135.11 policy diminish the return to the school trust fund by impairing 135.12 the use of school trust fund land. The attorney general and the 135.13 commissioner shall pursue efforts to make the school trust fund 135.14 whole, including the use of litigation if necessary. 135.15 Sec. 14. [APPROPRIATIONS.] 135.16 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 135.17 LEARNING.] The sums indicated in this section are appropriated 135.18 from the general fund to the department of children, families, 135.19 and learning for the fiscal years designated. 135.20 Subd. 2. [ASSISTANCE FOR IMMIGRANT FAMILIES.] For grants 135.21 to organizations that assist immigrants, ages 12 to 24, in 135.22 becoming literate and acquiring vocational skills: 135.23 $500,000 ..... 2001 135.24 Subd. 3. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 135.25 HOMELESS CHILDREN.] For matching grants for education programs 135.26 serving homeless children under Laws 1997, First Special Session 135.27 chapter 4, article 2, section 48: 135.28 $1,000,000 ..... 2001 135.29 Subd. 4. [COOPERATIVE SECONDARY FACILITY; PLANNING AND 135.30 EXPENSES.] For a grant and administrative expenses to facilitate 135.31 planning for a cooperative secondary facility under a joint 135.32 powers agreement for school district Nos. 411, Balaton, 402, 135.33 Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 135.34 Tyler: 135.35 $100,000 ..... 2001 135.36 Subd. 5. [ARTS VIA THE INTERNET.] For an arts via the 136.1 Internet collaborative project between the Walker art center and 136.2 the Minneapolis institute of arts: 136.3 $1,000,000 ..... 2001 136.4 Subd. 6. [BEST PRACTICES SEMINARS.] For best practices 136.5 graduation rule seminars to be conducted by the commissioner 136.6 after consultation with Education Minnesota: 136.7 $4,000,000 ..... 2001 136.8 Of this amount, $500,000 is for the Minnesota children's museum 136.9 reading program and $1,000,000 is for the Minnesota new teacher 136.10 project. 136.11 Subd. 7. [MAGNET SCHOOL FACILITIES GRANTS.] (a) For magnet 136.12 school facilities grants: 136.13 $1,500,000 ..... 2001 136.14 (b) Of this amount, $1,200,000 is for the discovery magnet 136.15 school in independent school district No. 347, Willmar, for 136.16 capital and operating costs of the magnet school serving 136.17 children from birth through grade 4. 136.18 (c) Of this amount, $300,000 is to independent school 136.19 district No. 696, Ely, to determine the feasibility of 136.20 establishing a joint secondary and higher education 136.21 environmental studies magnet school. 136.22 Subd. 8. [GEOGRAPHIC INFORMATION SYSTEMS.] To the director 136.23 of the office of strategic and long-range planning to enhance 136.24 the office's use of geographic information systems for 136.25 educational demographics and other purposes: 136.26 $100,000 ..... 2001 136.27 Subd. 9. [SOBRIETY HIGH GRANT; UNITED SOUTH CENTRAL.] For 136.28 a grant to independent school district No. 2134, United South 136.29 Central, for its sobriety high program: 136.30 $50,000 ..... 2001 136.31 Sec. 15. [REPEALER.] 136.32 Minnesota Statutes 1999 Supplement, section 124D.1155, 136.33 subdivision 5, is repealed. 136.34 EFFECTIVE DATE: This section is effective the day 136.35 following final enactment. 136.36 ARTICLE 7 137.1 LIBRARIES 137.2 Section 1. Minnesota Statutes 1999 Supplement, section 137.3 126C.10, subdivision 14, is amended to read: 137.4 Subd. 14. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 137.5 operating capital revenue may be used only for the following 137.6 purposes: 137.7 (1) to acquire land for school purposes; 137.8 (2) to acquire or construct buildings for school purposes; 137.9 (3) to rent or lease buildings, including the costs of 137.10 building repair or improvement that are part of a lease 137.11 agreement; 137.12 (4) to improve and repair school sites and buildings, and 137.13 equip or reequip school buildings with permanent attached 137.14 fixtures, including library media centers; 137.15 (5) for a surplus school building that is used 137.16 substantially for a public nonschool purpose; 137.17 (6) to eliminate barriers or increase access to school 137.18 buildings by individuals with a disability; 137.19 (7) to bring school buildings into compliance with the 137.20 Uniform Fire Code adopted according to chapter 299F; 137.21 (8) to remove asbestos from school buildings, encapsulate 137.22 asbestos, or make asbestos-related repairs; 137.23 (9) to clean up and dispose of polychlorinated biphenyls 137.24 found in school buildings; 137.25 (10) to clean up, remove, dispose of, and make repairs 137.26 related to storing heating fuel or transportation fuels such as 137.27 alcohol, gasoline, fuel oil, and special fuel, as defined in 137.28 section 296A.01; 137.29 (11) for energy audits for school buildings and to modify 137.30 buildings if the audit indicates the cost of the modification 137.31 can be recovered within ten years; 137.32 (12) to improve buildings that are leased according to 137.33 section 123B.51, subdivision 4; 137.34 (13) to pay special assessments levied against school 137.35 property but not to pay assessments for service charges; 137.36 (14) to pay principal and interest on state loans for 138.1 energy conservation according to section 216C.37 or loans made 138.2 under the Northeast Minnesota Economic Protection Trust Fund Act 138.3 according to sections 298.292 to 298.298; 138.4 (15) to purchase or lease interactive telecommunications 138.5 equipment; 138.6 (16) by board resolution, to transfer money into the debt 138.7 redemption fund to: (i) pay the amounts needed to meet, when 138.8 due, principal and interest payments on certain obligations 138.9 issued according to chapter 475; or (ii) pay principal and 138.10 interest on debt service loans or capital loans according to 138.11 section 126C.70; 138.12 (17) to pay operating capital-related assessments of any 138.13 entity formed under a cooperative agreement between two or more 138.14 districts; 138.15 (18) to purchase or lease computers and related materials, 138.16 copying machines, telecommunications equipment, and other 138.17 noninstructional equipment; 138.18 (19) to purchase or lease assistive technology or equipment 138.19 for instructional programs; 138.20 (20) to purchase textbooks; 138.21 (21) to purchase new and replacement library booksmedia 138.22 resources or technology; 138.23 (22) to purchase vehicles; 138.24 (23) to purchase or lease telecommunications equipment, 138.25 computers, and related equipment for integrated information 138.26 management systems for: 138.27 (i) managing and reporting learner outcome information for 138.28 all students under a results-oriented graduation rule; 138.29 (ii) managing student assessment, services, and achievement 138.30 information required for students with individual education 138.31 plans; and 138.32 (iii) other classroom information management needs; and 138.33 (24) to pay personnel costs directly related to the 138.34 acquisition, operation, and maintenance of telecommunications 138.35 systems, computers, related equipment, and network and 138.36 applications software. 139.1 EFFECTIVE DATE: This section is effective for the 139.2 2000-2001 and later school years. 139.3 Sec. 2. Laws 1997, First Special Session chapter 4, 139.4 article 8, section 4, as amended by Laws 1998, chapter 398, 139.5 article 7, section 1, and Laws 1999, chapter 241, article 8, 139.6 section 1, is amended to read: 139.7 Sec. 4. [LIBRARY PROJECT.] 139.8 Subdivision 1. [ESTABLISHMENT.] Notwithstanding law to the 139.9 contrary and subject to approvals in subdivision 2, a public 139.10 library may operate as a library project jointly with the school 139.11 library at Nashwauk-Keewatin high school, located in the city of 139.12 Nashwauk. The public library is established to serve persons 139.13 within the boundaries of independent school district No. 319, 139.14 except the city of Keewatin. 139.15 Subd. 2. [APPROVALS.] Operation of the public library is 139.16 contingent upon the governing bodies of cities, towns, and 139.17 unorganized townships within the geographical boundaries of 139.18 independent school district No. 319, except for the city of 139.19 Keewatin, entering into a joint powers agreement under Minnesota 139.20 Statutes 1998, section 471.59, to accomplish the purpose of this 139.21 section. The joint powers agreement must provide for continuing 139.22 the library project if one partyor more parties to the 139.23 agreement withdraws from or fails to enter into the agreement. 139.24 For the purposes of this subdivision, the Itasca county board is 139.25 designated as the governing body for the unorganized townships. 139.26 Subd. 3. [BOARD; APPOINTMENTS.] The joint powers agreement 139.27 in subdivision 2 shall provide for a library board ofup to 139.28 seven members as follows: two members appointed by the school 139.29 board of independent school district No. 319, one member 139.30 appointed by each town board located within independent school 139.31 district No. 319 boundaries that is a signatory to the joint 139.32 powers agreement, one member appointed by the council of the 139.33 city of Nashwauk, and one member appointed by the Itasca county 139.34 board to represent the unorganized towns within the school 139.35 district territory. 139.36 Subd. 4. [BOARD TERMS; COMPENSATION.] The library board 140.1 members shall serve for the term of the library project or to a 140.2 maximum of three consecutive three-year terms. An appointing 140.3 authority may remove for misconduct or neglect any member it has 140.4 appointed to the board and may replace that member by 140.5 appointment. Board members shall receive no compensation for 140.6 their services but may be reimbursed for actual and necessary 140.7 travel expenses incurred in the discharge of library board 140.8 duties and activities. 140.9 Subd. 5. [FUNDING.] For taxes payable in 1998, 1999, 2000,140.10 2001, 2002, and 2003 only, and provided that the joint powers 140.11 agreement under subdivision 2 has been executed by September 1 140.12 of the previous calendar year, the library board may levy a tax 140.13 in an amount up to $25,000 annually on property located within 140.14 the boundaries of independent school district No. 319, except 140.15 the city of Keewatin. The Itasca county auditor shall collect 140.16 the tax and distribute it to the library board. The levy shall 140.17 be assessed against the individual members of the joint powers 140.18 agreement. The money may be used for library staff and for the 140.19 purchase of library materials, including computer software. The140.20 levy must also fund the amount necessary to receive bookmobile140.21 services from the Arrowhead regional library system.For taxes 140.22 payable in 1998, 1999, 2000,2001, 2002, and 2003 only, the 140.23 county may not levy under Minnesota Statutes, section 134.07, 140.24 for the areas described in this section. 140.25 Subd. 6. [BUILDING.] The school district shall provide the 140.26 physical space and costs associated with operating the library 140.27 including, but not limited to, heat, light, telephone service, 140.28 and maintenance. 140.29 Subd. 7. [ORGANIZATION.] Immediately after appointment, 140.30 the library board shall organize by electing one of its number 140.31 as president and one as secretary, and it may appoint other 140.32 officers it finds necessary. 140.33 Subd. 8. [DUTIES.] The library board shall adopt bylaws 140.34 and regulations for the library and for the conduct of its 140.35 business as may be expedient and conformable to law. It shall 140.36 have exclusive control of the expenditure of all money collected 141.1 for it. The library board shall appoint a qualified library 141.2 director and other staff, establish the compensation of 141.3 employees, and remove any of them for cause. The library board 141.4 may contract with the school board, the regional library board, 141.5 or the city in which the library is located to provide 141.6 personnel, fiscal, or administrative services. The contract 141.7 shall state the personnel, fiscal, and administrative services 141.8 and payments to be provided by each party. 141.9 Subd. 9. [CRITERIA.] The library shall meet all 141.10 requirements in statutes and rules applicable to public 141.11 libraries and school media centers. A media supervisor licensed 141.12 by the board of teaching may be the director of the library. 141.13 Public parking, restrooms, drinking water, and other necessities 141.14 shall be easily accessible to library patrons. 141.15 EFFECTIVE DATE: This section is effective the day 141.16 following final enactment. 141.17 Sec. 3. Laws 1999, chapter 241, article 8, section 4, 141.18 subdivision 4, is amended to read: 141.19 Subd. 4. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 141.20 grants to regional public library systems under Minnesota 141.21 Statutes, section 125B.20, subdivision 3: 141.22 $1,200,000 ..... 2000 141.23 $1,200,000$3,700,000 ..... 2001 141.24 Any balance in the first year does not cancel but is 141.25 available in the second year. 141.26 Notwithstanding Minnesota Statutes, section 125B.20, 141.27 subdivision 3, this appropriation may be used for video lines in 141.28 addition to the uses under Minnesota Statutes, section 125B.20, 141.29 subdivision 3. 141.30 The budget base for this program for fiscal years 2002 and 141.31 2003 is $1,200,000 for each year. 141.32 Sec. 4. Laws 1999, chapter 241, article 8, section 4, 141.33 subdivision 5, is amended to read: 141.34 Subd. 5. [LIBRARY FOR THE BLIND.] For compact shelving, 141.35 technology, and staffing for the Minnesota library for the blind 141.36 and physically handicapped: 142.1 $212,000 ..... 2000 142.2 This appropriation is available until June 30, 2001. 142.3 ARTICLE 8 142.4 DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 142.5 Section 1. Laws 1999, chapter 241, article 10, section 6, 142.6 is amended to read: 142.7 Sec. 6. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 142.8 CENTER FOR ARTS EDUCATION.] 142.9 The sums indicated in this section are appropriated from 142.10 the general fund to the center for arts education for the fiscal 142.11 years designated: 142.12 $7,239,000 ..... 2000 142.13 $7,400,000 ..... 2001 142.14 Of each year's appropriation, $154,000 is to fund artist 142.15 and arts organization participation in the education residency 142.16 and education technology projects, $75,000 is for school support 142.17 for the residency project, $121,000 is for further development 142.18 of the partners: arts and school for students (PASS) program, 142.19 including pilots, and $220,000$110,000 is to fund the center 142.20 for arts education base for asset preservation and facility 142.21 repair. The guidelines for the education residency project and 142.22 the pass program shall be developed and defined by the center 142.23 for arts education in cooperation with the Minnesota arts 142.24 board. The Minnesota arts board shall participate in the review 142.25 and allocation process. The center for arts education and the 142.26 Minnesota arts board shall cooperate to fund these projects. 142.27 Any balance in the first year does not cancel but is 142.28 available in the second year. 142.29 EFFECTIVE DATE: This section is effective the day 142.30 following final enactment. 142.31 Sec. 2. [PURCHASING COMPUTER HARDWARE AND SOFTWARE.] 142.32 The department of children, families, and learning and 142.33 local school districts shall not be precluded from purchasing 142.34 computer hardware and software from specific vendors. The 142.35 department of children, families, and learning or any other 142.36 governmental agency or subdivision shall only prescribe 143.1 technology standards that include provisions for 143.2 interoperability of computer systems and cross-platform access 143.3 to computer programs. 143.4 ARTICLE 9 143.5 TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS 143.6 Section 1. Minnesota Statutes 1998, section 120A.22, 143.7 subdivision 3, is amended to read: 143.8 Subd. 3. [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 143.9 this section and sections 120A.24 ,and 120A.26, and 120A.41,143.10 "parent" means a parent, guardian, or other person having legal 143.11 custody of a child. 143.12 (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 143.13 means a parent, guardian, or other person having legal custody 143.14 of a child under age 18. For an unmarried pupil age 18 or over, 143.15 "parent" means the pupil unless a guardian or conservator has 143.16 been appointed, in which case it means the guardian or 143.17 conservator. 143.18 (c) For purposes of sections 125A.03 to 125A.24 and 143.19 125A.65, the school district of residence for an unmarried pupil 143.20 age 18 or over who is a parent under paragraph (b) and who is 143.21 placed in a center for care and treatment, shall be the school 143.22 district in which the pupil's biological or adoptive parent or 143.23 designated guardian resides. 143.24 (d) For a married pupil age 18 or over, the school district 143.25 of residence is the school district in which the married pupil 143.26 resides. 143.27 Sec. 2. Minnesota Statutes 1998, section 122A.31, 143.28 subdivision 4, is amended to read: 143.29 Subd. 4. [REIMBURSEMENT.] For purposes of revenue 143.30 under sections 125A.77 andsection 125A.78, the department of 143.31 children, families, and learning must only reimburse school 143.32 districts for the services of those interpreters/transliterators 143.33 who satisfy the standards of competency under this section. 143.34 Sec. 3. Minnesota Statutes 1998, section 123B.02, is 143.35 amended by adding a subdivision to read: 143.36 Subd. 5a. [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 144.1 school property shall be governed according to section 609.605, 144.2 subdivision 4. 144.3 Sec. 4. Minnesota Statutes 1998, section 123B.85, 144.4 subdivision 1, is amended to read: 144.5 Subdivision 1. [APPLICATION.] The following words and 144.6 terms in sections 121A.585, 121A.59, 123B.84 to 123B.87, and144.7 123B.89 to123B.90, and 123B.91, shall have the following 144.8 meanings ascribed to them. 144.9 Sec. 5. Minnesota Statutes 1999 Supplement, section 144.10 124D.128, subdivision 2, is amended to read: 144.11 Subd. 2. [COMMISSIONER DESIGNATION.] An area learning 144.12 center designated by the state must be a site. To be 144.13 designated, a district or center must demonstrate to the 144.14 commissioner that it will: 144.15 (1) provide a program of instruction that permits pupils to 144.16 receive instruction throughout the entire year; and 144.17 (2) maintain a record system that, for purposes of section 144.18 124.17126C.05, permits identification of membership 144.19 attributable to pupils participating in the program. The record 144.20 system and identification must ensure that the program will not 144.21 have the effect of increasing the total number of pupil units 144.22 attributable to an individual pupil as a result of a learning 144.23 year program. 144.24 Sec. 6. Minnesota Statutes 1998, section 124D.454, 144.25 subdivision 2, is amended to read: 144.26 Subd. 2. [DEFINITIONS.] For the purposes of this 144.27 section and section 125A.77, the definitions in this subdivision 144.28 apply. 144.29 (a) "Base year" for fiscal year 1996 means fiscal year 1995. 144.30 Base year for later fiscal years means the second fiscal year 144.31 preceding the fiscal year for which aid will be paid. 144.32 (b) "Basic revenue" has the meaning given it in section 144.33 126C.10, subdivision 2. For the purposes of computing basic 144.34 revenue pursuant to this section, each child with a disability 144.35 shall be counted as prescribed in section 126C.05, subdivision 1. 144.36 (c) "Average daily membership" has the meaning given it in 145.1 section 126C.05. 145.2 (d) "Program growth factor" means 1.00 for fiscal year 1998 145.3 and later. 145.4 (e) "Aid percentage factor" means 60 percent for fiscal 145.5 year 1996, 70 percent for fiscal year 1997, 80 percent for 145.6 fiscal year 1998, 90 percent for fiscal year 1999, and 100 145.7 percent for fiscal year 2000 and later. 145.8 Sec. 7. Minnesota Statutes 1998, section 124D.454, 145.9 subdivision 10, is amended to read: 145.10 Subd. 10. [EXCLUSION.] A district shall not receive aid 145.11 pursuant to section 124D.453 ,or 125A.76 , or 125A.77for 145.12 salaries, supplies, travel or equipment for which the district 145.13 receives aid pursuant to this section. 145.14 Sec. 8. Minnesota Statutes 1999 Supplement, section 145.15 125A.023, subdivision 3, is amended to read: 145.16 Subd. 3. [DEFINITIONS.] For purposes of this section and 145.17 section 125A.027, the following terms have the meanings given 145.18 them: 145.19 (a) "Health plan" means: 145.20 (1) a health plan under section 62Q.01, subdivision 3; 145.21 (2) a county-based purchasing plan under section 256B.692; 145.22 (3) a self-insured health plan established by a local 145.23 government under section 471.617; or 145.24 (4) self-insured health coverage provided by the state to 145.25 its employees or retirees. 145.26 (b) For purposes of this section, "health plan company" 145.27 means an entity that issues a health plan as defined in 145.28 paragraph (a). 145.29 (c) "Individual interagency intervention plan" means a 145.30 standardized written plan describing those programs or services 145.31 and the accompanying funding sources available to eligible 145.32 children with disabilities. 145.33 (d) "Interagency intervention service system" means a 145.34 system that coordinates services and programs required in state 145.35 and federal law to meet the needs of eligible children with 145.36 disabilities ages three to 21, including: 146.1 (1) services provided under the following programs or 146.2 initiatives administered by state or local agencies: 146.3 (i) the maternal and child health program under title V of 146.4 the Social Security Act, United States Code, title 42, sections 146.5 701 to 709; 146.6 (ii) the Individuals with Disabilities Education Act under 146.7 United States Code, title 20, chapter 33, subchapter II, 146.8 sections 1411 to 1420; 146.9 (iii) medical assistance under the Social Security Act, 146.10 United States Code, title 42, chapter 7, subchapter XIX, section 146.11 1396, et seq.; 146.12 (iv) the Developmental Disabilities Assistance and Bill of 146.13 Rights Act, United States Code, title 42, chapter 75, subchapter 146.14 II, sections 6021 to 6030, Part B; 146.15 (v) the Head Start Act, United States Code, title 42, 146.16 chapter 105, subchapter II, sections 9831 to 9852; 146.17 (vi) rehabilitation services provided under chapter 268A; 146.18 (vii) Juvenile Court Act services provided under sections 146.19 260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 146.20 260C.451; 146.21 (viii) the children's mental health collaboratives under 146.22 section 245.493; 146.23 (ix) the family service collaboratives under section 146.24 124D.23; 146.25 (x) the family community support plan under section 146.26 245.4881, subdivision 4; 146.27 (xi) the MinnesotaCare program under chapter 256L; 146.28 (xii) the community health services grants under chapter 146.29 145; 146.30 (xiii) the Community Social Services Act funding under the 146.31 Social Security Act, United States Code, title 42, sections 1397 146.32 to 1397f; and 146.33 (xiv) the community interagencytransition interagency 146.34 committees under section 125A.22; 146.35 (2) services provided under a health plan in conformity 146.36 with an individual family service plan or an individual 147.1 education plan; and 147.2 (3) additional appropriate services that local agencies and 147.3 counties provide on an individual need basis upon determining 147.4 eligibility and receiving a request from the interagency early 147.5 intervention committee and the child's parent. 147.6 (e) "Children with disabilities" has the meaning given in 147.7 section 125A.02. 147.8 (f) A "standardized written plan" means those individual 147.9 services or programs available through the interagency 147.10 intervention service system to an eligible child other than the 147.11 services or programs described in the child's individual 147.12 education plan or the child's individual family service plan. 147.13 Sec. 9. Minnesota Statutes 1999 Supplement, section 147.14 125A.023, subdivision 5, is amended to read: 147.15 Subd. 5. [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 147.16 commissioner of children, families, and learning, based on 147.17 recommendations from the state interagency committee, shall 147.18 issue a request for proposals by January 1, 1999, for grants to 147.19 the governing boards of interagency early intervention 147.20 committees under section 125A.027 or a combination of one or 147.21 more counties and school districts to establish five voluntary 147.22 interagency intervention demonstration projects. One grant 147.23 shall be used to implement a coordinated service system for all 147.24 eligible children with disabilities up to age five who received 147.25 services under sections 125A.26 to 125A.48. One grant shall be 147.26 used to implement a coordinated service system for a population 147.27 of minority children with disabilities from ages 12 to 21, who 147.28 may have behavioral problems and are in need of transitional 147.29 services. Each project must be operational by July 1, 1999. 147.30 The governing boards of the interagency early intervention 147.31 committees and the counties and school districts receiving 147.32 project grants must develop efficient ways to coordinate 147.33 services and funding for children with disabilities ages three 147.34 to 21, consistent with the requirements of this section and 147.35 section 125A.027 and the guidelines developed by the state 147.36 interagency committee under this section. 148.1 (b) The state interagency committee shall evaluate the 148.2 demonstration projects and provide the evaluation results to 148.3 interagency early intervention committees. 148.4 Sec. 10. Minnesota Statutes 1999 Supplement, section 148.5 125A.08, is amended to read: 148.6 125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 148.7 (a) As defined in this section, to the extent required by148.8 federal law as of July 1, 2000,every district must ensure the 148.9 following: 148.10 (1) all students with disabilities are provided the special 148.11 instruction and services which are appropriate to their needs. 148.12 Where the individual education plan team has determined 148.13 appropriate goals and objectives based on the student's needs, 148.14 including the extent to which the student can be included in the 148.15 least restrictive environment, and where there are essentially 148.16 equivalent and effective instruction, related services, or 148.17 assistive technology devices available to meet the student's 148.18 needs, cost to the district may be among the factors considered 148.19 by the team in choosing how to provide the appropriate services, 148.20 instruction, or devices that are to be made part of the 148.21 student's individual education plan. The individual education 148.22 plan team shall consider and may authorize services covered by 148.23 medical assistance according to section 256B.0625, subdivision 148.24 26. The student's needs and the special education instruction 148.25 and services to be provided must be agreed upon through the 148.26 development of an individual education plan. The plan must 148.27 address the student's need to develop skills to live and work as 148.28 independently as possible within the community. By grade 9 or 148.29 age 14, the plan must address the student's needs for transition 148.30 from secondary services to post-secondary education and 148.31 training, employment, community participation, recreation, and 148.32 leisure and home living. In developing the plan, districts must 148.33 inform parents of the full range of transitional goals and 148.34 related services that should be considered. The plan must 148.35 include a statement of the needed transition services, including 148.36 a statement of the interagency responsibilities or linkages or 149.1 both before secondary services are concluded; 149.2 (2) children with a disability under age five and their 149.3 families are provided special instruction and services 149.4 appropriate to the child's level of functioning and needs; 149.5 (3) children with a disability and their parents or 149.6 guardians are guaranteed procedural safeguards and the right to 149.7 participate in decisions involving identification, assessment 149.8 including assistive technology assessment, and educational 149.9 placement of children with a disability; 149.10 (4) eligibility and needs of children with a disability are 149.11 determined by an initial assessment or reassessment, which may 149.12 be completed using existing data under United States Code, title 149.13 20, section 33, et seq.; 149.14 (5) to the maximum extent appropriate, children with a 149.15 disability, including those in public or private institutions or 149.16 other care facilities, are educated with children who are not 149.17 disabled, and that special classes, separate schooling, or other 149.18 removal of children with a disability from the regular 149.19 educational environment occurs only when and to the extent that 149.20 the nature or severity of the disability is such that education 149.21 in regular classes with the use of supplementary services cannot 149.22 be achieved satisfactorily; 149.23 (6) in accordance with recognized professional standards, 149.24 testing and evaluation materials, and procedures used for the 149.25 purposes of classification and placement of children with a 149.26 disability are selected and administered so as not to be 149.27 racially or culturally discriminatory; and 149.28 (7) the rights of the child are protected when the parents 149.29 or guardians are not known or not available, or the child is a 149.30 ward of the state. 149.31 (b) For paraprofessionals employed to work in programs for 149.32 students with disabilities, the school board in each district 149.33 shall ensure that: 149.34 (1) before or immediately upon employment, each 149.35 paraprofessional develops sufficient knowledge and skills in 149.36 emergency procedures, building orientation, roles and 150.1 responsibilities, confidentiality, vulnerability, and 150.2 reportability, among other things, to begin meeting the needs of 150.3 the students with whom the paraprofessional works; 150.4 (2) annual training opportunities are available to enable 150.5 the paraprofessional to continue to further develop the 150.6 knowledge and skills that are specific to the students with whom 150.7 the paraprofessional works, including understanding 150.8 disabilities, following lesson plans, and implementing follow-up 150.9 instructional procedures and activities; and 150.10 (3) a districtwide process obligates each paraprofessional 150.11 to work under the ongoing direction of a licensed teacher and, 150.12 where appropriate and possible, the supervision of a school 150.13 nurse. 150.14 Sec. 11. Minnesota Statutes 1998, section 125A.76, 150.15 subdivision 7, is amended to read: 150.16 Subd. 7. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 150.17 INTERMEDIATES.] For the purposes of this section and section150.18 125A.77, a special education cooperative or an intermediate 150.19 district must allocate its approved expenditures for special 150.20 education programs among participating school districts. 150.21 Sec. 12. Minnesota Statutes 1999 Supplement, section 150.22 125A.79, subdivision 8, is amended to read: 150.23 Subd. 8. [OUT-OF-STATE TUITION.] For children who are 150.24 residents of the state, receive services under section 125A.76, 150.25 subdivisions 1 and 2, and are placed in a care and treatment 150.26 facility by court action in a state that does not have a 150.27 reciprocity agreement with the commissioner under section 150.28 125A.115125A.155, the resident school district shall submit the 150.29 balance of the tuition bills, minus the amount of the basic 150.30 revenue, as defined by section 126C.10, subdivision 2, of the 150.31 district for the child and the special education aid, and any 150.32 other aid earned on behalf of the child. 150.33 Sec. 13. Minnesota Statutes 1999 Supplement, section 150.34 125A.80, is amended to read: 150.35 125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 150.36 OUT-OF-HOME PLACED STUDENTS.] 151.1 The commissioner, in cooperation with the commissioners of 151.2 human services and corrections and with input from appropriate 151.3 billing system users, shall develop and implement a uniform 151.4 billing system for school districts and other agencies, 151.5 including private providers, who provide the educational 151.6 services for students who are placed out of the home. The 151.7 uniform billing system must: 151.8 (1) allow for the proper and timely billing to districts by 151.9 service providers with a minimum amount of district 151.10 administration; 151.11 (2) allow districts to bill the state for certain types of 151.12 special education and regular education services as provided by 151.13 law; 151.14 (3) provide flexibility for the types of services that are 151.15 provided for children placed out of the home, including day 151.16 treatment services; 151.17 (4) allow the commissioner to track the type, cost, and 151.18 quality of services provided for children placed out of the 151.19 home; 151.20 (5) conform existing special education and proposed regular 151.21 education billing procedures; 151.22 (6) provide a uniform reporting standard of per diem rates; 151.23 (7) determine allowable expenses and maximum reimbursement 151.24 rates for the state reimbursement of care and treatment services 151.25 according to section 124D.701; and 151.26 (8) provide a process for the district to appeal to the 151.27 commissioner tuition bills submitted to districts and to the 151.28 state. 151.29 Sec. 14. Minnesota Statutes 1999 Supplement, section 151.30 125B.21, subdivision 3, is amended to read: 151.31 Subd. 3. [CRITERIA.] In addition to responsibilities of 151.32 the council under Laws 1993, First Special Session chapter 2, as 151.33 amended, the telecommunications council shall evaluate grant 151.34 applications under section 124C.74125B.20 and applications from 151.35 district organizations using the following criteria: 151.36 (1) evidence of cooperative arrangements with other 152.1 post-secondary institutions, school districts, and community and 152.2 regional libraries in the geographic region; 152.3 (2) plans for shared classes and programs; 152.4 (3) avoidance of network duplication; 152.5 (4) evidence of efficiencies to be achieved in delivery of 152.6 instruction due to use of telecommunications; 152.7 (5) a plan for development of a list of all courses 152.8 available in the region for delivery at a distance; 152.9 (6) a plan for coordinating and scheduling courses; and 152.10 (7) a plan for evaluation of costs, access, and outcomes. 152.11 Sec. 15. Minnesota Statutes 1999 Supplement, section 152.12 126C.10, subdivision 24, is amended to read: 152.13 Subd. 24. [EQUITY REVENUE.] (a) A school district 152.14 qualifies for equity revenue if the school district's adjusted 152.15 marginal cost pupil unit amount of basic revenue, supplemental 152.16 revenue, transition revenue, and referendum revenue is less than 152.17 the 90th percentile of school districts in its equity region for 152.18 those revenue categories and the school district's 152.19 administrative offices are not located in a city of the first 152.20 class on July 1, 1999. 152.21 (b) Equity revenue for a qualifying district that receives 152.22 referendum revenue under section 126C.17, subdivision 4, equals 152.23 the product of (1) the district's adjusted marginal cost pupil 152.24 units for that year; times (2) the sum of (i) $10, plus (ii) 152.25 $30, times the school district's equity index computed under 152.26 section 126C.10,subdivision 627. 152.27 (c) Equity revenue for a qualifying district that does not 152.28 receive referendum revenue under section 126C.17, subdivision 4, 152.29 equals the product of the district's adjusted marginal cost 152.30 pupil units for that year times $10. 152.31 Sec. 16. Minnesota Statutes 1998, section 126C.12, 152.32 subdivision 2, is amended to read: 152.33 Subd. 2. [INSTRUCTOR DEFINED.] Primary instructor means a 152.34 public employee licensed by the board of teaching whose duties 152.35 are full-time instruction, excluding a teacher for whom 152.36 categorical aids are received pursuant to sectionssection 153.1 125A.76 and 125A.77. Except as provided in section 122A.68, 153.2 subdivision 6, instructor does not include supervisory and 153.3 support personnel, except school social workers as defined in 153.4 section 122A.15. An instructor whose duties are less than 153.5 full-time instruction must be included as an equivalent only for 153.6 the number of hours of instruction in grades kindergarten 153.7 through 6. 153.8 Sec. 17. Minnesota Statutes 1998, section 127A.05, 153.9 subdivision 4, is amended to read: 153.10 Subd. 4. [ADMINISTRATIVE RULES.] The commissioner may 153.11 adopt new rules and amend themor amend any existing rules only 153.12 under specific authority and consistent with the requirements of 153.13 chapter 14. The commissioner may repeal any existing 153.14 rules adopted by the commissioner. Notwithstanding the 153.15 provisions of section 14.05, subdivision 4, the commissioner may 153.16 grant a variance to rules adopted by the commissioner upon 153.17 application by a school district for purposes of implementing 153.18 experimental programs in learning or school management. This 153.19 subdivision shall not prohibit the commissioner from making 153.20 technical changes or corrections to adoptedrules adopted by the 153.21 commissioner. 153.22 Sec. 18. Minnesota Statutes 1998, section 127A.41, 153.23 subdivision 8, is amended to read: 153.24 Subd. 8. [APPROPRIATION TRANSFERS.] If a direct 153.25 appropriation from the general fund to the department for any 153.26 education aid or grant authorized in this chapter and chapters 153.27 122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 153.28 under sections 124D.135, 124D.14,124D.16, 124D.20, 124D.21, 153.29 124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 153.30 exceeds the amount required, the commissioner may transfer the 153.31 excess to any education aid or grant appropriation that is 153.32 insufficient. However, section 126C.20 applies to a deficiency 153.33 in the direct appropriation for general education aid. Excess 153.34 appropriations must be allocated proportionately among aids or 153.35 grants that have insufficient appropriations. The commissioner 153.36 of finance shall make the necessary transfers among 154.1 appropriations according to the determinations of the 154.2 commissioner. If the amount of the direct appropriation for the 154.3 aid or grant plus the amount transferred according to this 154.4 subdivision is insufficient, the commissioner shall prorate the 154.5 available amount among eligible districts. The state is not 154.6 obligated for any additional amounts. 154.7 Sec. 19. Minnesota Statutes 1998, section 127A.41, 154.8 subdivision 9, is amended to read: 154.9 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 154.10 PROGRAMS.] If a direct appropriation from the general fund to 154.11 the department of children, families, and learning for an 154.12 education aid or grant authorized under section 154.13 124D.135, 124D.14,124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 154.14 124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 154.15 required, the commissioner of children, families, and learning 154.16 may transfer the excess to any education aid or grant 154.17 appropriation that is insufficiently funded under these sections. 154.18 Excess appropriations shall be allocated proportionately among 154.19 aids or grants that have insufficient appropriations. The 154.20 commissioner of finance shall make the necessary transfers among 154.21 appropriations according to the determinations of the 154.22 commissioner of children, families, and learning. If the amount 154.23 of the direct appropriation for the aid or grant plus the amount 154.24 transferred according to this subdivision is insufficient, the 154.25 commissioner shall prorate the available amount among eligible 154.26 districts. The state is not obligated for any additional 154.27 amounts. 154.28 Sec. 20. Minnesota Statutes 1999 Supplement, section 154.29 181A.04, subdivision 6, is amended to read: 154.30 Subd. 6. A high school student under the age of 18 must 154.31 not be permitted to work after 11:00 p.m. on an evening before a 154.32 school day or before 5:00 a.m. on a school day, except as 154.33 permitted by section 181A.07, subdivisions 1, 2, 3, and 4. If a 154.34 high school student under the age of 18 has supplied the 154.35 employer with a note signed by the parent or guardian of the 154.36 student, the student may be permitted to work until 11:30 p.m. 155.1 on the evening before a school day and beginning at 4:30 a.m. on 155.2 a school day. 155.3 For the purpose of this subdivision, a high school student 155.4 does not include a student enrolled in an alternative education 155.5 program approved by the commissioner of children, families, and 155.6 learning or an area learning center, including area learning 155.7 centers under sections 123A.05 to 123A.08 or according to 155.8 section 122A.164122A.163. 155.9 Sec. 21. Laws 1999, chapter 241, article 1, section 69, is 155.10 amended to read: 155.11 Sec. 69. [REPEALER.] 155.12 (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 155.13 subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 155.14 (b) Minnesota Statutes 1998, section 120B.05, is repealed 155.15 effective for revenue for fiscal year 2000. 155.16 (c) Minnesota Statutes 1998, section 124D.65, subdivisions 155.17 1, 2, and 3, are repealed effective for revenue for fiscal year 155.18 2001. 155.19 (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 155.20 subdivision 4; and 126C.06, are repealed effective the day 155.21 following final enactment. 155.22 This appropriation is available until June 30, 2001.155.23 Sec. 22. Laws 1999, chapter 241, article 4, section 27, 155.24 subdivision 5, is amended to read: 155.25 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 155.26 alternative facilities bonding aid, according to Minnesota 155.27 Statutes, section 123B.59: 155.28 $19,058,000 ..... 2000 155.29 $19,286,000 ..... 2001 155.30 The 2000 appropriation includes $1,700,000 for 20001999 155.31 and $17,358,000 for 20012000. 155.32 The 2001 appropriation includes $1,928,000 for 2000 and 155.33 $17,358,000 for 2001. 155.34 EFFECTIVE DATE: This section is effective the day 155.35 following final enactment. 155.36 Sec. 23. Laws 1999, chapter 241, article 6, section 14, 156.1 subdivision 5, is amended to read: 156.2 Subd. 5. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 156.3 pupil transportation aid under Minnesota Statutes, section 156.4 123B.92, subdivision 9: 156.5 $18,586,000 ..... 2000 156.6 $20,922,000 ..... 2001 156.7 The 2000 appropriation includes $1,848,000 for 20001999 156.8 and $16,738,000 for 20012000. 156.9 The 2001 appropriation includes $1,860,000 for 2000 and 156.10 $19,062,000 for 2001. 156.11 EFFECTIVE DATE: This section is effective the day 156.12 following final enactment. 156.13 Sec. 24. Laws 1999, chapter 241, article 9, section 49, is 156.14 amended to read: 156.15 Sec. 49. [TRANSITION.] 156.16 Notwithstanding Minnesota Statutes, section 15.0597, the 156.17 terms of persons who are members appointed by the governor 156.18 before the effective date of section 837, shall have their term 156.19 end on July 31 of the year following the last year of their 156.20 appointment. 156.21 Sec. 25. [REVISOR INSTRUCTION.] 156.22 In the next and subsequent editions of Minnesota Statutes, 156.23 the revisor shall renumber section 123B.02, subdivision 12, as 156.24 120A.22, subdivision 1a. The revisor shall correct all 156.25 cross-references to be consistent with the renumbering. 156.26 Sec. 26. [REPEALER.] 156.27 Laws 1999, chapter 241, article 9, sections 35 and 36, are 156.28 repealed. Laws 1999, chapter 245, article 4, section 3, is 156.29 repealed. 156.30 ARTICLE 10 156.31 HIGHER EDUCATION 156.32 APPROPRIATIONS 156.33 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 156.34 The sums in the columns marked "APPROPRIATIONS" are 156.35 appropriated from the general fund, or other named fund, to the 156.36 agencies and for the purposes specified in this article. The 157.1 listing of an amount under the figure "2000" or "2001" in this 157.2 article indicates that the amount is appropriated to be 157.3 available for the fiscal year ending June 30, 2000, or June 30, 157.4 2001, respectively. "The first year" is fiscal year 2000. "The 157.5 second year" is fiscal year 2001. "The biennium" is fiscal 157.6 years 2000 and 2001. 157.7 SUMMARY BY FUND 157.8 2000 2001 TOTAL 157.9 General -0- $ 29,000,000 $ 29,000,000 157.10 SUMMARY BY AGENCY - ALL FUNDS 157.11 2000 2001 TOTAL 157.12 Board of Trustees of the Minnesota 157.13 State Colleges and Universities 157.14 -0- 13,180,000 13,180,000 157.15 Board of Regents of the University 157.16 of Minnesota 157.17 -0- 15,820,000 15,820,000 157.18 APPROPRIATIONS 157.19 Available for the Year 157.20 Ending June 30 157.21 2000 2001 157.22 Sec. 2. BOARD OF TRUSTEES OF THE 157.23 MINNESOTA STATE COLLEGES AND UNIVERSITIES 157.24 Subdivision 1. Total 157.25 Appropriation $13,180,000 157.26 The amounts that may be spent from this 157.27 appropriation for each purpose are 157.28 specified in the following subdivisions. 157.29 Subd. 2. Deficiency 157.30 Appropriations 157.31 -0- 11,600,000 157.32 This is a one-time appropriation under 157.33 Minnesota Statutes, section 135A.031, 157.34 subdivision 4, to fund unanticipated 157.35 enrollment increases. This 157.36 appropriation is added to the 157.37 appropriation in Laws 1999, chapter 157.38 214, article 1, section 3, subdivision 157.39 1. 157.40 Subd. 3. Farm Business 157.41 Management 157.42 -0- 250,000 157.43 This appropriation is to provide 157.44 educational and management services to 157.45 a greater number of farmers facing 157.46 financial hardship in the farm wrap and 157.47 farm help network service areas. 158.1 Subd. 4. Urban Teacher 158.2 Preparation 158.3 -0- 1,250,000 158.4 This is a one-time appropriation for 158.5 the development and implementation of 158.6 the secondary and early childhood 158.7 education components of the program 158.8 established by this subdivision. 158.9 (a) The board shall offer a program of 158.10 teacher preparation leading to 158.11 licensure, involving Metropolitan State 158.12 University, Inver Hills Community 158.13 College, and Minneapolis Community and 158.14 Technical College. The institutions 158.15 involved shall enter into an agreement 158.16 whereby Inver Hills Community College 158.17 and Minneapolis Community and Technical 158.18 College shall provide the first two 158.19 years of the program, and Metropolitan 158.20 State University shall provide the 158.21 final two years of the program. In 158.22 fall semester 2000, Minneapolis 158.23 Community and Technical College and 158.24 Inver Hills Community College shall 158.25 offer a preeducation program. After 158.26 development of the program in fiscal 158.27 year 2001, Metropolitan State 158.28 University shall begin its licensure 158.29 program in fall semester 2001. The 158.30 program shall focus on preparing 158.31 teachers to meet the specific needs of 158.32 urban and inner-ring suburban schools 158.33 and shall emphasize significant direct 158.34 classroom teaching experience and 158.35 mentoring throughout each student's 158.36 preparation. The program may also 158.37 focus on the professional development 158.38 of pretenure teachers. Metropolitan 158.39 State University, Inver Hills Community 158.40 College, and Minneapolis Community and 158.41 Technical College are encouraged to 158.42 enter into partnerships with urban and 158.43 inner-ring suburban schools to provide 158.44 for significant involvement of 158.45 elementary and secondary teachers in 158.46 the mentoring of students enrolled in 158.47 the program. 158.48 (b) The legislature expects the program 158.49 to enroll at least 50 percent students 158.50 of color. 158.51 (c) By February 15, 2002, and annually 158.52 thereafter, the board of trustees shall 158.53 provide a progress report to the chairs 158.54 of the higher education finance 158.55 divisions of the legislature regarding 158.56 the development of the teacher 158.57 preparation program. The annual report 158.58 shall include, to the extent 158.59 practicable at the time of preparation, 158.60 information comparing program outcomes 158.61 with the target expectations set forth 158.62 in paragraph (b). The report shall 158.63 include feedback from enrolled students 158.64 concerning how the program meets their 158.65 needs, as well as from cooperating 158.66 elementary and secondary schools on how 159.1 the students are performing on site. 159.2 Subd. 5. Cook County Higher 159.3 Education Project 159.4 -0- 80,000 159.5 This appropriation is for the Cook 159.6 county higher education project for 159.7 delivery of educational services 159.8 electronically. The board shall submit 159.9 a report in the biennial budget 159.10 document on uses of the appropriation. 159.11 The report shall include information 159.12 regarding the number of students 159.13 served, credit hours delivered, other 159.14 services provided, strategic direction 159.15 of the project, expected future funding 159.16 sources, and collaborations with other 159.17 organizations. 159.18 Sec. 3. BOARD OF REGENTS OF THE 159.19 UNIVERSITY OF MINNESOTA 159.20 Subdivision 1. Total 159.21 Appropriation 15,820,000 159.22 The amounts that may be spent from this 159.23 appropriation for each purpose are 159.24 specified in the following subdivisions. 159.25 Subd. 2. Operations and 159.26 Maintenance 159.27 (a) North Star Research Coalition 159.28 -0- 15,000,000 159.29 This is a one-time appropriation for 159.30 the university's contribution to the 159.31 North Star Research Coalition. The 159.32 commissioner of finance may not release 159.33 this appropriation until the university 159.34 presents evidence that a nonprofit 159.35 tax-exempt corporation, to be known as 159.36 the North Star Research Coalition, in a 159.37 form complying with this paragraph, has 159.38 been established. The commissioner 159.39 shall release the money appropriated, 159.40 as a one-for-one match for money from 159.41 nonstate sources, on a quarterly basis, 159.42 until the appropriation is expended. 159.43 Notwithstanding any law to the 159.44 contrary, this appropriation shall not 159.45 cancel, but is available until expended. 159.46 The board of regents is requested to 159.47 establish a partnership with private 159.48 industry to leverage the university's 159.49 research capabilities into economic 159.50 development results through the 159.51 creation of a nonprofit tax-exempt 159.52 corporation to be known as the North 159.53 Star Research Coalition. The money for 159.54 projects funded under this initiative 159.55 must be used to fund research projects 159.56 consistent with priorities established 159.57 by the partnership, purchase equipment 159.58 for research laboratories, and 159.59 establish endowed faculty chairs in the 159.60 area of technology-based research. 160.1 The coalition may fund research 160.2 projects that establish collaborative 160.3 research efforts among the University 160.4 of Minnesota and the private sector, 160.5 the Mayo Clinic, nonprofit research 160.6 institutes, or the Minnesota state 160.7 colleges and universities. 160.8 The duties of the coalition include: 160.9 (1) identifying technology-based 160.10 research projects that have the 160.11 potential to create significant 160.12 opportunities for economic development 160.13 and industrial growth in the state; 160.14 (2) strengthening the university's 160.15 research capabilities in subject areas 160.16 associated with emerging 160.17 technology-based industries; 160.18 (3) expanding the research capacity of 160.19 the university through the creation of 160.20 opportunities for the university to 160.21 assist private enterprises in emerging 160.22 technology-based industries; 160.23 (4) promoting the transfer of 160.24 technology from the research laboratory 160.25 to commercial application by 160.26 businesses; 160.27 (5) developing application procedures 160.28 for, reviewing, and prioritizing 160.29 research projects seeking funding under 160.30 this initiative; and 160.31 (6) creating opportunities for 160.32 collaborative research opportunities 160.33 among the University of Minnesota, the 160.34 Mayo Clinic, nonprofit research 160.35 institutes, and the Minnesota state 160.36 colleges and universities. 160.37 The board shall have the authority to 160.38 allocate state and nonstate money to 160.39 projects. 160.40 The incorporating documents of the 160.41 North Star Research Coalition must 160.42 provide for representation of 160.43 university and private sector interests 160.44 on the coalition's board of directors 160.45 and provide that changes in the 160.46 governance structure require a super 160.47 majority of the board. The board 160.48 consists of 12 members. Six shall be 160.49 appointed by the board of regents of 160.50 the University of Minnesota and need 160.51 not be affiliated with the university. 160.52 The initial six members representing 160.53 the private sector shall be appointed 160.54 by the governor. Subsequent members 160.55 representing the private sector shall 160.56 be appointed by the incumbent members. 160.57 Private sector members of the board 160.58 must have expertise in the technology 160.59 research needs of the state and not be 160.60 affiliated with the university. 160.61 (b) Duluth; Child Care 161.1 -0- 220,000 161.2 To provide for child care in the newly 161.3 renovated Kirby Center. 161.4 Subd. 3. Special 161.5 Appropriation 161.6 Agricultural Rapid Response Fund 161.7 -0- 600,000 161.8 This appropriation is for the rapid 161.9 agricultural response fund. The 161.10 university shall report on the uses of 161.11 this appropriation in the biennial 161.12 budget document. This appropriation is 161.13 added to the appropriation in Laws 161.14 1999, chapter 214, article 1, section 161.15 4, subdivision 5, paragraph (a). 161.16 Sec. 4. Minnesota Statutes 1998, section 136A.125, is 161.17 amended by adding a subdivision to read: 161.18 Subd. 4c. [SURPLUS FUNDS.] Any projected surplus 161.19 appropriation in the child care grant program in the first year 161.20 of a biennium shall be used to augment the maximum award in 161.21 subdivision 4 in the second year of the biennium. 161.22 Sec. 5. Laws 1999, chapter 214, article 1, section 4, 161.23 subdivision 2, is amended to read: 161.24 Subd. 2. Operations and 161.25 Maintenance 513,279,000 533,870,000 161.26 Estimated Expenditures 161.27 and Appropriations 161.28 The legislature estimates that 161.29 instructional expenditures will be 161.30 $461,521,000 in the first year and 161.31 $484,679,000 in the second year. 161.32 The legislature estimates that 161.33 noninstructional expenditures will be 161.34 $202,367,000 in the first year and 161.35 $201,717,000 in the second year. 161.36 By January 30, 2000, the University 161.37 shall submit to the governor and the 161.38 legislature a master academic plan for 161.39 the Rochester region that clearly 161.40 defines the academic needs of the 161.41 region, short and long-term plans to 161.42 address those needs including the 161.43 designation of responsibility among the 161.44 partner institutions, short and 161.45 long-term demographic and enrollment 161.46 projections, physical plant capacity 161.47 and needs, and a delineation of 161.48 missions among the partner institutions 161.49 to avoid competition and duplication. 161.50 Notwithstanding Minnesota Statutes 161.51 1998, section 137.022, subdivision 4, 161.52 in fiscal year 2001 the first $200,000 162.1 of permanent university fund income 162.2 from royalties for mining under state 162.3 mineral leases designated for the 162.4 natural resources research institute 162.5 shall be allocated by the board of 162.6 regents to the department of landscape 162.7 architecture to develop a long-range 162.8 plan for the reclamation of taconite 162.9 mining lands. The board shall allocate 162.10 the money only if an equal or greater162.11 amount of matching money from nonstate162.12 sources has been pledged to support the162.13 project by June 30, 2000in increments 162.14 of $50,000 as each $50,000 is matched 162.15 by nonstate sources, provided that no 162.16 money may be allocated after June 30, 162.17 2001. 162.18 The University of Minnesota academic 162.19 health center, after consultation with 162.20 the health care community and medical 162.21 education and research costs advisory 162.22 committee, shall report by January 15, 162.23 2000, to the higher education finance 162.24 committees on the strategic direction 162.25 of its health professional programs. 162.26 The plans shall include a programmatic 162.27 and financial model for health 162.28 professional education that will meet 162.29 the state's future workforce needs, 162.30 maintain the integrity of the education 162.31 process, provide an appropriate level 162.32 of ongoing financial support, and 162.33 provide a framework for the health 162.34 community and academic health center to 162.35 work together in meeting the health 162.36 needs of the state. The academic 162.37 health center is requested to provide 162.38 the report also to the commissioner of 162.39 health and the legislative commission 162.40 on health care access. 162.41 Sec. 6. [REPEALER.] 162.42 Minnesota Rules, parts 4830.9005, 4830.9010, 4830.9015, 162.43 4830.9020, and 4830.9030, are repealed. 162.44 ARTICLE 11 162.45 EARLY CHILDHOOD AND FAMILY EDUCATION 162.46 Section 1. Minnesota Statutes 1999 Supplement, section 162.47 119B.011, subdivision 12, is amended to read: 162.48 Subd. 12. [EMPLOYMENT PLAN.] "Employment plan" means 162.49 employment of recipients financially eligible for child care 162.50 assistance, or other work activities defined under section 162.51 256J.49, approved in an employability development, job search 162.52 support plan, or employment plan that is developed by the county 162.53 agency, if it is acting as an employment and training service 162.54 provider, or by an employment and training service provider 162.55 certified by the commissioner of economic security or an 163.1 individual designated by the county to provide employment and 163.2 training services. The plans and designation of a service 163.3 provider must meet the requirements of this chapter and chapter 163.4 256J or chapter 256K, Minnesota Rules, parts 3400.0010 to 163.5 3400.0230, and other programs that provide federal reimbursement 163.6 for child care services. 163.7 Sec. 2. Minnesota Statutes 1999 Supplement, section 163.8 119B.011, subdivision 15, is amended to read: 163.9 Subd. 15. [INCOME.] "Income" means earned or unearned 163.10 income received by all family members, including public 163.11 assistance cash benefits and at-home infant care subsidy 163.12 payments, unless specifically excluded. The following are 163.13 excluded from income: funds used to pay for health insurance 163.14 premiums for family members, Supplemental Security Income, 163.15 scholarships, work-study income, and grants that cover costs or 163.16 reimbursement for tuition, fees, books, and educational 163.17 supplies; student loans for tuition, fees, books, supplies, and 163.18 living expenses; state and federal earned income tax credits; 163.19 in-kind income such as food stamps, energy assistance, foster 163.20 care assistance, medical assistance, child care assistance, and 163.21 housing subsidies; earned income of fullfull-time or part-time 163.22 students up to the age of 19, who have not earned a high school 163.23 diploma or GED high school equivalency diploma including 163.24 earnings from summer employment; grant awards under the family 163.25 subsidy program; nonrecurring lump sum income only to the extent 163.26 that it is earmarked and used for the purpose for which it is 163.27 paid; and any income assigned to the public authority according 163.28 to section 256.74 or 256.741. 163.29 Sec. 3. Minnesota Statutes 1999 Supplement, section 163.30 119B.011, subdivision 20, is amended to read: 163.31 Subd. 20. [TRANSITION YEAR FAMILIES.] "Transition year 163.32 families" means families who have received MFIP assistance, or 163.33 who were eligible to receive MFIP assistance after choosing to 163.34 discontinue receipt of the cash portion of MFIP assistance under 163.35 section 256J.31, subdivision 12, for at least three of the last 163.36 six months before losing eligibility for MFIP due to increased164.1 income from employment or child or spousal supportor families 164.2 participating in work first under chapter 256K who meet the 164.3 requirements of section 256K.07. Transition year child care may 164.4 be used to support employment or job search. Transition year 164.5 child care is not available to families who have been 164.6 disqualified from MFIP due to fraud. 164.7 Sec. 4. Minnesota Statutes 1999 Supplement, section 164.8 119B.03, subdivision 4, is amended to read: 164.9 Subd. 4. [FUNDING PRIORITY.] (a) First priority for child 164.10 care assistance under the basic sliding fee program must be 164.11 given to eligible non-MFIP families who do not have a high 164.12 school or general equivalency diploma or who need remedial and 164.13 basic skill courses in order to pursue employment or to pursue 164.14 education leading to employment and who need child care 164.15 assistance to participate in the education program. Within this 164.16 priority, the following subpriorities must be used: 164.17 (1) child care needs of minor parents; 164.18 (2) child care needs of parents under 21 years of age; and 164.19 (3) child care needs of other parents within the priority 164.20 group described in this paragraph. 164.21 (b) Second priority must be given to parents who have 164.22 completed their MFIP or work first transition year. 164.23 (c) Third priority must be given to families who are 164.24 eligible for portable basic sliding fee assistance through the 164.25 portability pool under subdivision 9. 164.26 Sec. 5. Minnesota Statutes 1998, section 119B.03, is 164.27 amended by adding a subdivision to read: 164.28 Subd. 6a. [ALLOCATION DUE TO INCREASED FUNDING.] When 164.29 funding increases are implemented within a calendar year, every 164.30 county must receive an allocation at least equal and 164.31 proportionate to its original allocation for the same time 164.32 period. The remainder of the allocation must be recalculated to 164.33 reflect the funding increase, according to formulas identified 164.34 in subdivision 6. 164.35 Sec. 6. Minnesota Statutes 1999 Supplement, section 164.36 119B.05, subdivision 1, is amended to read: 165.1 Subdivision 1. [ELIGIBLE PARTICIPANTS.] Families eligible 165.2 for child care assistance under the MFIP child care program are: 165.3 (1) MFIP participants who are employed or in job search and 165.4 meet the requirements of section 119B.10; 165.5 (2) persons who are members of transition year families 165.6 under section 119B.011, subdivision 20; 165.7 (3) families who are participating in employment 165.8 orientation or job search, or other employment or training 165.9 activities that are included in an approved employability 165.10 development plan under chapter 256K; 165.11 (4) MFIP families who are participating in work activities 165.12 defined under section 256J.49 as required in their job search 165.13 support or employment plan, or in appeals, hearings, 165.14 assessments, or orientations according to chapter 256J . Child165.15 care assistance to support work activities as described in165.16 section 256J.49 must be available according to sections165.17 119B.011, subdivision 11, 124D.13, 256E.08, and 611A.32 and165.18 titles IVA, IVB, IVE, and XX of the Social Security Act; and 165.19 (5) families who are participating in programs as required 165.20 in tribal contracts under section 119B.02, subdivision 2, or 165.21 256.01, subdivision 2. 165.22 Sec. 7. Minnesota Statutes 1998, section 124D.16, 165.23 subdivision 1, is amended to read: 165.24 Subdivision 1. [PROGRAM REVIEW AND APPROVAL.] By February165.25 15, 1992, for the 1991-1992 school year or by May 1 preceding165.26 subsequent school years, a district must submit to the165.27 commissioners of children, families, and learning, and healthA 165.28 school district shall biennially by May 1 submit to the 165.29 commissioners of children, families, and learning and health the 165.30 program plan required under this subdivision. As determined by 165.31 the commissioners, one-half of the districts shall first submit 165.32 the plan by May 1 of the 2000-2001 school year and one-half of 165.33 the districts shall first submit the plan by May 1 of the 165.34 2001-2002 school year. The program plan must include: 165.35 (1) a description of the services to be provided; 165.36 (2) a plan to ensure children at greatest risk receive 166.1 appropriate services; 166.2 (3) a description of procedures and methods to be used to 166.3 coordinate public and private resources to maximize use of 166.4 existing community resources, including school districts, health 166.5 care facilities, government agencies, neighborhood 166.6 organizations, and other resources knowledgeable in early 166.7 childhood development; 166.8 (4) comments about the district's proposed program by the 166.9 advisory council required by section 124D.15, subdivision 7; and 166.10 (5) agreements with all participating service providers. 166.11 Each commissioner may review and comment on the program, 166.12 and make recommendations to the commissioner of children, 166.13 families, and learning, within 30 days of receiving the plan. 166.14 Sec. 8. Minnesota Statutes 1999 Supplement, section 166.15 124D.221, subdivision 2, is amended to read: 166.16 Subd. 2. [PRIORITY NEIGHBORHOODS.] For grants in 166.17 Minneapolis and St. Paul, the commissioner must give priority to 166.18 neighborhoods in this subdivision. In Minneapolis, priority 166.19 neighborhoods are Near North, Hawthorne, Sumner-Glenwood, 166.20 Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland, 166.21 McKinley, Waite Park, Sheridan, Holland, Lyndale, Folwell, and 166.22 Phillips. In St. Paul, priority neighborhoods are 166.23 Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons 166.24 Bluff, and the West Side. 166.25 Sec. 9. [124D.515] [ADULT BASIC EDUCATION AID 166.26 DEFINITIONS.] 166.27 Subdivision 1. [APPLICABILITY.] For purposes of this 166.28 chapter, the following terms have the meanings given them. 166.29 Subd. 2. [ADULT BASIC EDUCATION CONSORTIUM.] "Adult basic 166.30 education consortium" means a voluntary association of school 166.31 districts, public agencies, or nonprofit organizations that work 166.32 together to provide coordinated adult basic education services 166.33 in a designated geographic area, and that act as a fiscal entity 166.34 providing adult basic education services. 166.35 Subd. 3. [CONTACT HOURS.] (a) "Contact hours" means the 166.36 number of hours during which a student was engaged in learning 167.1 activities provided by an approved adult education program. 167.2 (b) Contact hours for an organization funded in fiscal year 167.3 2000, but not eligible for basic population aid in fiscal year 167.4 2001, is computed by multiplying the organization's contact 167.5 hours by 1.08. 167.6 (c) Contact hours excludes homework. 167.7 Subd. 4. [FIRST PRIOR PROGRAM YEAR.] "First prior program 167.8 year" means the period from May 1 of the second prior fiscal 167.9 year through April 30 of the first prior fiscal year. 167.10 Subd. 5. [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 167.11 means allowable adult basic education expenses of a program that 167.12 are not covered by payments from federal or private for profit 167.13 sources. 167.14 Sec. 10. Minnesota Statutes 1998, section 124D.52, 167.15 subdivision 1, is amended to read: 167.16 Subdivision 1. [PROGRAM REQUIREMENTS.] An adult basic 167.17 education program is a day or evening program offered by a 167.18 district that is for people over 16 years of age who do not 167.19 attend an elementary or secondary school. The program offers 167.20 academic instruction necessary to earn a high school diploma or 167.21 equivalency certificate. Tuition and fees may not be charged to 167.22 a learner for instruction paid under this section, except for a 167.23 security deposit to assure return of materials, supplies, and 167.24 equipment. 167.25 Each approved adult basic education program must develop a 167.26 memorandum of understanding with the local workforce development 167.27 centers located in the approved program's service delivery 167.28 area. The memorandum of understanding must describe how the 167.29 adult basic education program and the workforce development 167.30 centers will cooperate and coordinate services to provide 167.31 unduplicated, efficient, and effective services to clients. 167.32 Adult basic education aid must be spent for adult basic 167.33 education purposes, and to meet the adult basic education 167.34 criteria, as specified in sections 124D.515 to 124D.531. 167.35 Sec. 11. Minnesota Statutes 1998, section 124D.52, 167.36 subdivision 2, is amended to read: 168.1 Subd. 2. [PROGRAM APPROVAL.] (a) To receive aid under this 168.2 section, a district, a consortium of districts, or a private 168.3 nonprofit organization must submit an application by June 1 168.4 describing the program, on a form provided by the department. 168.5 The program must be approved by the commissioner according to 168.6 the following criteria: 168.7 (1) how the needs of different levels of learning will be 168.8 met; 168.9 (2) for continuing programs, an evaluation of results; 168.10 (3) anticipated number and education level of participants; 168.11 (4) coordination with other resources and services; 168.12 (5) participation in a consortium, if any, and money 168.13 available from other participants; 168.14 (6) management and program design; 168.15 (7) volunteer training and use of volunteers; 168.16 (8) staff development services; 168.17 (9) program sites and schedules; and168.18 (10) program expenditures that qualify for aid; 168.19 (11) program ability to provide data related to learner 168.20 outcomes as required by law; and 168.21 (12) a copy of the memorandum of understanding described in 168.22 subdivision 1 submitted to the commissioner. 168.23 (b) The commissioner may grant adult basic education funds168.24 to a private, nonprofit organization to provide services that168.25 are not offered by a district or that are supplemental to a168.26 district's program. The program provided under this provision168.27 must be approved and funded according to the same criteria used168.28 for district programs.168.29 (c)Adult basic education programs may be approved under 168.30 this subdivision for up to five years. Five-year program 168.31 approval must be granted to an applicant who has demonstrated 168.32 the capacity to: 168.33 (1) offer comprehensive learning opportunities and support 168.34 service choices appropriate for and accessible to adults at all 168.35 basic skill need levels; 168.36 (2) provide a participatory and experiential learning 169.1 approach based on the strengths, interests, and needs of each 169.2 adult, that enables adults with basic skill needs to: 169.3 (i) identify, plan for, and evaluate their own progress 169.4 toward achieving their defined educational and occupational 169.5 goals; 169.6 (ii) master the basic academic reading, writing, and 169.7 computational skills, as well as the problem-solving, decision 169.8 making, interpersonal effectiveness, and other life and learning 169.9 skills they need to function effectively in a changing society; 169.10 (iii) locate and be able to use the health, governmental, 169.11 and social services and resources they need to improve their own 169.12 and their families' lives; and 169.13 (iv) continue their education, if they desire, to at least 169.14 the level of secondary school completion, with the ability to 169.15 secure and benefit from continuing education that will enable 169.16 them to become more employable, productive, and responsible 169.17 citizens; 169.18 (3) plan, coordinate, and develop cooperative agreements 169.19 with community resources to address the needs that the adults 169.20 have for support services, such as transportation, flexible 169.21 course scheduling, convenient class locations, and child care; 169.22 (4) collaborate with business, industry, labor unions, and 169.23 employment-training agencies, as well as with family and 169.24 occupational education providers, to arrange for resources and 169.25 services through which adults can attain economic 169.26 self-sufficiency; 169.27 (5) provide sensitive and well trained adult education 169.28 personnel who participate in local, regional, and statewide 169.29 adult basic education staff development events to master 169.30 effective adult learning and teaching techniques; 169.31 (6) participate in regional adult basic education peer 169.32 program reviews and evaluations; and169.33 (7) submit accurate and timely performance and fiscal 169.34 reports; 169.35 (8) submit accurate and timely reports related to program 169.36 outcomes and learner follow-up information; and 170.1 (9) spend adult basic education aid on adult basic 170.2 education purposes only, which are specified in sections 170.3 124D.515 to 124D.531. 170.4 (c) The commissioner shall require each district to provide 170.5 notification by February 1, 2001, of its intent to apply for 170.6 funds under this section as a single district or as part of an 170.7 identified consortium of districts. A district receiving funds 170.8 under this section must notify the commissioner by February 1 of 170.9 its intent to change its application status for applications due 170.10 the following June 1. 170.11 Sec. 12. Minnesota Statutes 1998, section 124D.52, 170.12 subdivision 3, is amended to read: 170.13 Subd. 3. [ACCOUNTS; REVENUE; AID.] Each district, group of 170.14 districts, or private nonprofit organization providing adult 170.15 basic education programs must establish and maintain accounts 170.16 separate from all other district accounts for the receipt and 170.17 disbursement of all funds related to these programs. All 170.18 revenue received pursuant to this section must be utilized 170.19 solely for the purposes of adult basic education programs. 170.20 Federal and state aid plus levymust not equal more than 100 170.21 percent of the actual costunreimbursed expenses of providing 170.22 these programs, excluding in-kind costs. 170.23 Sec. 13. Minnesota Statutes 1998, section 124D.52, is 170.24 amended by adding a subdivision to read: 170.25 Subd. 6. [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 170.26 ADULT BASIC EDUCATION PROGRAMS.] (a) A school district, or adult 170.27 basic education consortium that receives revenue under section 170.28 124D.531, may deliver English as a second language, citizenship, 170.29 or other adult education programming in collaboration with 170.30 community-based and nonprofit organizations located within its 170.31 district or region, and with correctional institutions. The 170.32 organization or correctional institution must have the 170.33 demonstrated capacity to offer education programs for adults. 170.34 Community-based or nonprofit organizations must meet the 170.35 criteria in paragraph (b), or have prior experience. A 170.36 community-based or nonprofit organization or a correctional 171.1 institution may be reimbursed for unreimbursed expenses as 171.2 defined in section 124D.515, subdivision 5, for the 171.3 administration of English as a second language or adult basic 171.4 education programs, not to exceed eight percent of the total 171.5 funds provided by a school district or adult basic education 171.6 consortium. The administrative reimbursement for a school 171.7 district or adult basic education consortium that delivers 171.8 services cooperatively with a community-based or nonprofit 171.9 organization or correctional institution is limited to five 171.10 percent of the program aid, not to exceed the unreimbursed 171.11 expenses of administering programs delivered by community-based 171.12 or nonprofit organizations or correctional institutions. 171.13 (b) A community-based organization or nonprofit 171.14 organization that delivers education services under this section 171.15 must demonstrate that it has met the following criteria: 171.16 (1) be legally established as a nonprofit organization; 171.17 (2) have an established system for fiscal accounting and 171.18 reporting that is consistent with the department of children, 171.19 families, and learning's adult basic education completion report 171.20 and reporting requirements under section 124D.531; 171.21 (3) require all instructional staff to complete a training 171.22 course in teaching adult learners; and 171.23 (4) develop a learning plan for each student that 171.24 identifies defined educational and occupational goals with 171.25 measures to evaluate progress. 171.26 Sec. 14. [124D.521] [CONSORTIUM REQUIREMENTS.] 171.27 Each consortium, as defined under section 124D.515, 171.28 subdivision 1, must meet at least twice per year to develop and 171.29 amend as necessary an annual consortium agreement signed by all 171.30 members and filed with the department of children, families, and 171.31 learning that at a minimum includes: 171.32 (1) a description of the members and fiscal agent of the 171.33 consortium; 171.34 (2) a description of the contributions of each member of 171.35 the consortium and the process for distributing state aid among 171.36 the members; and 172.1 (3) the state adult basic education assurances from the 172.2 annual adult basic education program application. 172.3 As a condition of membership in a consortium, each member 172.4 must make a documented contribution toward the cost of adult 172.5 basic education programming, either as a direct financial 172.6 contribution, or an in-kind contribution. 172.7 Each consortium's designated fiscal agent must: 172.8 (1) collect data from consortium members; 172.9 (2) submit required performance reports and fiscal reports 172.10 to the state; 172.11 (3) receive state adult basic education aid under section 172.12 124D.531 for adult basic education programming delivered by the 172.13 consortium; and 172.14 (4) distribute state adult basic education aid to members 172.15 of the consortium according to the consortium agreement under 172.16 sources. 172.17 Sec. 15. [124D.522] [ADULT BASIC EDUCATION POLICY REVIEW 172.18 TASK FORCE.] 172.19 Subdivision 1. [ESTABLISHMENT.] A nine-member adult basic 172.20 education policy review task force is established to advise the 172.21 commissioner on program and funding policies for adult basic 172.22 education programs that receive aid under section 124D.531. The 172.23 commissioner must appoint task force members to two-year terms, 172.24 by June 30, 2000. Members do not receive per diem, but may be 172.25 reimbursed for expenses as specified in section 15.059, 172.26 subdivision 3. At a minimum, the task force must hold two 172.27 meetings. All other matters of the review task force's 172.28 operation, except expiration of the task force under subdivision 172.29 4, are governed by section 15.069. 172.30 Subd. 2. [MEMBERSHIP.] Members are appointed by the 172.31 commissioner. The commissioner must appoint two members of the 172.32 task force from rural programs, two members from suburban 172.33 programs, two members from urban programs, one member from a 172.34 nonprofit group that has knowledge and expertise in the area of 172.35 adult literacy, one member who is currently an adult basic 172.36 education learner or has participated in an adult basic 173.1 education program, and one member who is an adult basic 173.2 education instructor. Members of the legislature and 173.3 representatives of other concerned groups may be included as 173.4 unofficial members of the task force. 173.5 Subd. 3. [DUTIES.] The policy review task force must: 173.6 (1) recommend to the legislature a mission statement for a 173.7 statewide system of adult basic education programs that includes 173.8 educational outcomes, services, eligible learners, requirements 173.9 for teacher licensing, expectations for student advancement and 173.10 progress, and recognition of the importance of distance learning 173.11 and other technology-based instruction methods; 173.12 (2) advise the commissioner on adult basic education 173.13 standard policies and procedures; 173.14 (3) advise the commissioner on the adult basic education 173.15 curriculum and course offerings, including policies to offer 173.16 computer literacy and other skill-based education through adult 173.17 basic education programs; 173.18 (4) recommend to the legislature the minimum number of 173.19 contact hours that are necessary in order for a program to 173.20 continue; 173.21 (5) recommend to the legislature an adequate and reasonable 173.22 hourly rate for smaller programs; 173.23 (6) recommend to the legislature a reasonable range for the 173.24 number of instructional hours or a reasonable cap on the number 173.25 of hours individuals may spend in adult basic education 173.26 instruction; 173.27 (7) recommend to the legislature an outcome-based adult 173.28 basic education funding system that rewards and recognizes 173.29 student progress in attaining educational goals; and 173.30 (8) review statewide grant applications for supplemental 173.31 services under section 124D.522. 173.32 Subd. 4. [EXPIRATION.] The adult basic education policy 173.33 review task force expires on January 2, 2001. 173.34 Sec. 16. [124D.523] [ADULT BASIC EDUCATION SUPPLEMENTAL 173.35 SERVICE GRANTS.] 173.36 (a) The commissioner, in consultation with the policy 174.1 review task force under section 124D.521, may make grants to 174.2 nonprofit organizations to provide services that are not offered 174.3 by a district adult basic education program or that are 174.4 supplemental to either the statewide adult basic education 174.5 program, or a district's adult basic education program. The 174.6 commissioner may make grants for: staff development for adult 174.7 basic education teachers and administrators; training for 174.8 volunteer tutors; training, services, and materials for serving 174.9 disabled students through adult basic education programs; 174.10 statewide promotion of adult basic education services and 174.11 programs; development and dissemination of instructional and 174.12 administrative technology for adult basic education programs; 174.13 programs delivered by communities of color; adult basic 174.14 education distance learning projects, including television 174.15 instruction programs; and other supplemental services to support 174.16 the mission of adult basic education and innovative delivery of 174.17 adult basic education services. 174.18 (b) The commissioner must establish eligibility criteria 174.19 and grant application procedures. Grants under this section 174.20 must support services throughout the state, focus on educational 174.21 results for adult learners, and promote outcome-based 174.22 achievement through adult basic education programs. The 174.23 commissioner may make grants under this section from funds 174.24 specifically appropriated for supplemental service grants. Up 174.25 to one-third of the appropriation for supplemental service 174.26 grants must be used for grants for adult basic education 174.27 programs to encourage and support innovations in adult basic 174.28 education instruction and service delivery. A grant to a single 174.29 organization must be for two years or less and cannot exceed 174.30 $100,000. Nothing in this section prevents an approved adult 174.31 basic education program from using state or federal aid to 174.32 purchase supplemental services. 174.33 Sec. 17. Minnesota Statutes 1999 Supplement, section 174.34 124D.53, subdivision 3, is amended to read: 174.35 Subd. 3. [AID.] For fiscal year 2000, adult basic 174.36 education aid for each approved program equals $2,295 for fiscal175.1 year 2000 and $2,338 for fiscal year 2001 and later fiscal175.2 years$1,767 times the number of full-time equivalent students 175.3 in its adult basic education program during the first prior 175.4 program year. 175.5 Sec. 18. [124D.531] [ADULT BASIC EDUCATION AID.] 175.6 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] (a) 175.7 The state total adult basic education aid for fiscal year 2001 175.8 equals $30,207,000. The state total adult basic education aid 175.9 for later years equals: 175.10 (1) the state total adult basic education aid for the 175.11 preceding fiscal year; times 175.12 (2) the lesser of: 175.13 (i) 1.08, or 175.14 (ii) the greater of 1.00 or the ratio of the state total 175.15 contact hours in the first prior program year to the state total 175.16 contact hours in the second prior program year. 175.17 (b) The state total adult basic education aid, excluding 175.18 basic population aid, equals the difference between the amount 175.19 computed in paragraph (a), and the state total basic population 175.20 aid under subdivision 2. 175.21 Subd. 2. [BASIC POPULATION AID.] A district is eligible 175.22 for basic population aid if the district has a basic service 175.23 level approved by the commissioner under section 124D.52, 175.24 subdivision 5, or is a member of a consortium with an approved 175.25 basic service level. Basic population aid is equal to the 175.26 greater of $4,000 or $1.80 times the population of the district. 175.27 District population is determined according to section 275.14. 175.28 Subd. 3. [PROGRAM REVENUE.] Adult basic education programs 175.29 established under section 124D.52 and approved by the 175.30 commissioner are eligible for revenue under this subdivision. 175.31 For fiscal year 2001 and later, adult basic education revenue 175.32 for each approved program equals the sum of: 175.33 (1) the basic population aid under subdivision 2 for 175.34 districts participating in the program during the current 175.35 program year; plus 175.36 (2)(i) for fiscal year 2001, 84 percent times the amount 176.1 computed in subdivision 1, paragraph (b), times the ratio of the 176.2 contact hours for students participating in the program during 176.3 the first prior program year to the state total contact hours 176.4 during the first prior program year; plus 176.5 (ii) for fiscal year 2002, 84 percent times the amount 176.6 computed in subdivision 1, paragraph (b), times the ratio of the 176.7 contact hours for students participating in the program during 176.8 the first and second prior program years to the state total 176.9 contact hours during the first and second prior program years; 176.10 plus 176.11 (iii) for fiscal year 2003, and thereafter, 84 percent 176.12 times the amount computed in subdivision 1, paragraph (b), times 176.13 the ratio of the contact hours for students participating in the 176.14 program during the first, second, and third prior program years 176.15 to the state total contact hours during the first, second, and 176.16 third prior program years; plus 176.17 (3) eight percent times the amount computed in subdivision 176.18 1, paragraph (b), times the ratio of the enrollment of students 176.19 with limited English proficiency during the prior school year in 176.20 districts participating in the program during the current 176.21 program year to the state total enrollment of students with 176.22 limited English proficiency during the prior school year in 176.23 districts participating in adult basic education programs during 176.24 the current program year; plus 176.25 (4) eight percent times the amount computed in subdivision 176.26 1, paragraph (b), times the ratio of the latest federal census 176.27 count of the number of adults aged 20 or older with no diploma 176.28 residing in the districts participating in the program during 176.29 the current program year to the latest federal census count of 176.30 the state total number of adults aged 20 or older with no 176.31 diploma residing in the districts participating in adult basic 176.32 education programs during the current program year. 176.33 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 176.34 Notwithstanding subdivisions 2 and 3, the total adult basic 176.35 education aid for a program per prior year contact hour must not 176.36 exceed four times the rate per prior year contact hour computed 177.1 under subdivision 3, clause (2). 177.2 (b) For fiscal year 2002 and later, the aid for a program 177.3 under subdivision 3, clause (2), adjusted for changes in program 177.4 membership, must not exceed the aid for that program under 177.5 subdivision 3, clause (2), for the first preceding fiscal year 177.6 by more than the greater of 20 percent or $20,000. 177.7 (c) Adult basic education aid is payable to a program for 177.8 unreimbursed costs. 177.9 Subd. 5. [INSTITUTIONAL PROGRAMS.] Notwithstanding section 177.10 124D.531, for fiscal year 2001 only, adult basic education aid 177.11 for an approved program in its first year of operation that 177.12 provides adult basic education services at a newly constructed 177.13 correctional facility equals the product of the number of 177.14 contact hours during the current program year, times 1.08, times 177.15 the rate per contact hour established under section 124D.531, 177.16 subdivision 3, clause (2). 177.17 Subd. 6. [AID GUARANTEE.] Notwithstanding subdivisions 1, 177.18 3, and 4, for fiscal year 2001, any adult basic education 177.19 program qualifying for aid under this section, that receives 177.20 less state aid than in fiscal year 2000 must receive additional 177.21 aid equal to the difference between its fiscal year 2000 aid and 177.22 its fiscal year 2001 aid. 177.23 Subd. 7. [PAYMENT OF AID TO FISCAL AGENT.] Adult basic 177.24 education aid must be paid directly to the fiscal agent of each 177.25 approved program. An approved program must have only one fiscal 177.26 agent. 177.27 Subd. 8. [PROGRAM AUDITS.] Programs that receive aid under 177.28 this section must maintain records that support the aid 177.29 payments. The commissioner may audit these records upon 177.30 request. The commissioner must establish procedures for 177.31 conducting fiscal audits of adult basic education programs 177.32 according to the schedule in this subdivision. In fiscal year 177.33 2002, the commissioner must audit all approved adult basic 177.34 education programs that received aid for fiscal year 2001. 177.35 Beginning with fiscal year 2003, the commissioner must, at a 177.36 minimum, audit each adult basic education program once every 178.1 five years. The commissioner must establish procedures to 178.2 reconcile any discrepancies between aid payments based on 178.3 information reported to the commissioner and aid estimates based 178.4 on a program audit. 178.5 Subd. 9. [ADMINISTRATIVE CAP.] A consortium or district 178.6 shall not spend more than five percent of the consortium or 178.7 district's total adult basic education aid on administrative 178.8 costs. 178.9 Subd. 10. [FISCAL REPORTS.] Programs that receive aid 178.10 under this section must submit an annual report to the 178.11 commissioner that includes revenue and expense reports for each 178.12 district and program, including instructional services offered 178.13 in partnership with businesses and nonprofit organizations. 178.14 EFFECTIVE DATE: This section is effective for revenue for 178.15 fiscal years beginning with 2001. 178.16 Sec. 19. Minnesota Statutes 1998, section 245A.14, 178.17 subdivision 4, is amended to read: 178.18 Subd. 4. [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 178.19 child care programs serving 14 or fewer children that are 178.20 conducted at a location other than the license holder's own 178.21 residence shall be licensed under this section and the rules 178.22 governing family day care or group family day care if: 178.23 (a) the license holder is the primary provider of care and 178.24 the nonresidential child care program is conducted in a dwelling 178.25 that is located on a residential lot; or178.26 (b) the license holder is an employer who may or may not be 178.27 the primary provider of care, and the purpose for the child care 178.28 program is to provide child care services to children of the 178.29 license holder's employees; or 178.30 (c) the license holder is a church or religious 178.31 organization. 178.32 Sec. 20. Minnesota Statutes 1998, section 245A.14, is 178.33 amended by adding a subdivision to read: 178.34 Subd. 8. [EXPERIENCED AIDES; CHILD CARE CENTERS.] (a) An 178.35 individual employed as an aide at a child care center may work 178.36 with children without being directly supervised for up to 25 179.1 percent of the individual's daily work shift if: 179.2 (1) a teacher is in the building; 179.3 (2) the individual has received first aid training within 179.4 the last three years; and 179.5 (3) the individual is at least 20 years old and has at 179.6 least 4,160 hours of child care experience as defined in section 179.7 245A.02, subdivision 6b. 179.8 (b) The use of an experienced aide working without direct 179.9 supervision under paragraph (a) is limited to 25 percent of each 179.10 classrooms' daily hours of operation. 179.11 (c) A child care center that utilizes experienced aides 179.12 under this subdivision must notify the parents or guardians of 179.13 the children who are cared for under this subdivision, and must 179.14 send a duplicate letter to the commissioner of human services, 179.15 licensing division. The notice must provide the approximate 179.16 number of hours per classroom per month that this subdivision is 179.17 utilized. 179.18 (d) This subdivision sunsets June 30, 2002. 179.19 Sec. 21. Laws 1998, First Special Session chapter 1, 179.20 article 1, section 10, is amended to read: 179.21 Sec. 10. [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 179.22 Subdivision 1. [INITIAL ELIGIBILITY.] To be eligible for 179.23 state or TANF matching funds in the family assets for 179.24 independence initiative, a household must have income at or179.25 below 185 percent of the federal poverty level and assets of179.26 $15,000 or less. An individual who is a dependent of another179.27 person for federal income tax purposes may not be a separate179.28 eligible household for purposes of establishing a family asset179.29 account. An individual who is a debtor for a judgment resulting179.30 from nonpayment of a court-ordered child support obligation may179.31 not participate in this program. Households accessing TANF179.32 matching funds are subject to the MFIP definition of household179.33 under Minnesota Statutes, section 256J.08, subdivision 46.179.34 Income and assets are determined according to eligibility179.35 guidelines for the energy assistance programmeet the 179.36 eligibility requirements of the federal Assets for Independence 180.1 Act, Public Law Number 105-285, in title IV, section 408, of 180.2 that act. 180.3 Sec. 22. Laws 1998, First Special Session chapter 1, 180.4 article 1, section 11, is amended to read: 180.5 Sec. 11. [WITHDRAWAL; MATCHING; PERMISSIBLE USES.] 180.6 Subdivision 1. [WITHDRAWAL OF FUNDS.] To receive a match, 180.7 a participating household must transfer funds withdrawn from a 180.8 family asset account to its matching fund custodial account held 180.9 by the fiscal agent, according to the family asset agreement. 180.10 The fiduciary organizationfiscal agent must determine if the 180.11 match request is for a permissible use consistent with the 180.12 household's family asset agreement. 180.13 The fiscal agent must ensure the household's custodial 180.14 account contains the applicable matching funds to match the 180.15 balance in the household's account, including interest, on at 180.16 least a quarterly basis and at the time of an approved 180.17 withdrawal. Matches must be provided as follows: 180.18 (1) from state grant and TANF funds a matching contribution 180.19 of $1.50 for every $1 of funds withdrawn from the family asset 180.20 account equal to the lesser of $720 per year or a $3,000 180.21 lifetime limit; and 180.22 (2) from nonstate funds, a matching contribution of no less 180.23 than $1.50 for every $1 of funds withdrawn from the family asset 180.24 account equal to the lesser of $720 per year or a $3,000 180.25 lifetime limit. 180.26 Sec. 23. Laws 1999, chapter 205, article 1, section 65, is 180.27 amended to read: 180.28 Sec. 65. [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 180.29 FISCAL YEAR 2000 AND FISCAL YEAR 2001.] 180.30 A district that complies with Minnesota Statutes, section 180.31 124D.13, shall receive additional early childhood family 180.32 education aid for fiscal year 2000 and fiscal year 2001 equal to 180.33 $2.46 times the greater of: 180.34 (1) 150; or 180.35 (2) the number of people under five years of age residing 180.36 in the school district on October 1 of the previous school 181.1 year. The additional early childhood family education aid may 181.2 be used only for early childhood family education programs. 181.3 Sec. 24. Laws 1999, chapter 205, article 1, section 71, 181.4 subdivision 3, is amended to read: 181.5 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 181.6 childhood family education aid according to Minnesota Statutes, 181.7 section 124D.135: 181.8 $20,485,000$20,109,000 ..... 2000 181.9 $19,420,000$21,107,000 ..... 2001 181.10 The 2000 appropriation includes $1,390,000 for 1999 and 181.11 $19,095,000$18,719,000 for 2000. 181.12 The 2001 appropriation includes $2,122,000$2,079,000 for 181.13 2000 and $17,298,000$19,028,000 for 2001. 181.14 Any balance in the first year does not cancel but is 181.15 available in the second year. 181.16 Sec. 25. Laws 1999, chapter 205, article 1, section 71, 181.17 subdivision 7, is amended to read: 181.18 Subd. 7. [SCHOOL AGE CARE AID.] For extended day aid 181.19 according to Minnesota Statutes, section 124D.22: 181.20 $274,000 ..... 2000 181.21 $216,000$245,000 ..... 2001 181.22 The 2000 appropriation includes $30,000 for 1999 and 181.23 $244,000 for 2000. 181.24 The 2001 appropriation includes $27,000 for 2000 and 181.25 $189,000$218,000 for 2001. 181.26 Any balance in the first year does not cancel but is 181.27 available in the second year. 181.28 Sec. 26. Laws 1999, chapter 205, article 1, section 71, 181.29 subdivision 9, is amended to read: 181.30 Subd. 9. [MFIP CHILD CARE.] For child care assistance 181.31 according to Minnesota Statutes, section 119B.05: 181.32 $86,318,000$66,524,000 ..... 2000 181.33 $88,443,000$78,606,000 ..... 2001 181.34 Any balance in the first year does not cancel but is 181.35 available in the second year. 181.36 Sec. 27. Laws 1999, chapter 205, article 2, section 4, 182.1 subdivision 3, is amended to read: 182.2 Subd. 3. [COMMUNITY EDUCATION AID.] For community 182.3 education aid according to Minnesota Statutes, section 124D.20: 182.4 $14,136,000 ..... 2000 182.5 $14,696,000$15,274,000 ..... 2001 182.6 The 2000 appropriation includes $160,000 for 1999 and 182.7 $13,976,000 for 2000. 182.8 The 2001 appropriation includes $1,552,000 for 2000 and 182.9 $13,144,000$13,722,000 for 2001. 182.10 Any balance in the first year does not cancel but is 182.11 available in the second year. 182.12 Sec. 28. Laws 1999, chapter 205, article 4, section 12, 182.13 subdivision 5, is amended to read: 182.14 Subd. 5. [ADULT BASIC EDUCATION AID.] For adult basic 182.15 education aid according to Minnesota Statutes, section 124D.52, 182.16 in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 182.17 fiscal year 2001: 182.18 $20,132,000 ..... 2000 182.19 $22,477,000$29,168,000 ..... 2001 182.20 The 2000 appropriation includes $1,227,000 for 1999 and 182.21 $18,905,000 for 2000. 182.22 The 2001 appropriation includes $2,101,000 for 2000 and 182.23 $20,376,000$27,067,000 for 2001. 182.24 Sec. 29. Laws 1999, chapter 205, article 4, section 12, 182.25 subdivision 6, is amended to read: 182.26 Subd. 6. [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 182.27 basic population aid for eligible districts under section 7: 182.28 $1,960,000$1,974,000 ..... 2000 182.29 Notwithstanding Minnesota Statutes, section 127A.45, 182.30 subdivision 12, 100 percent of this appropriation is for fiscal 182.31 year 2000. 182.32 Any balance in the first year does not cancel but is 182.33 available in the second year. This is a one-time appropriation. 182.34 Sec. 30. Laws 1999, chapter 205, article 4, section 12, 182.35 subdivision 7, is amended to read: 182.36 Subd. 7. [ADULT GRADUATION AID.] For adult graduation aid 183.1 according to Minnesota Statutes, section 124D.54: 183.2 $3,184,000$2,760,000 ..... 2000 183.3 $4,732,000$3,031,000 ..... 2001 183.4 The 2000 appropriation includes $258,000$258,000 for 1999 183.5 and $2,926,000$2,502,000 for 2000. 183.6 The 2001 appropriation includes $325,000$278,000 for 2000 183.7 and $4,407,000$2,753,000 for 2001. 183.8 Sec. 31. [COMPETENCY-BASED ADULT BASIC EDUCATION AND 183.9 ENGLISH AS A SECOND LANGUAGE LICENSE.] 183.10 The board of teaching must convene a task force to develop 183.11 a competency-based license for teachers of adult basic education 183.12 classes and English as a second language class. The 183.13 competency-based license must be an alternative to the current 183.14 licensing requirements. By January 15, 2002, the board of 183.15 teaching must present their recommendations to the committees of 183.16 the legislature responsible for teacher licensing and funding of 183.17 adult basic education programs, including recommendations for 183.18 implementing competency-based licensing for teachers of adult 183.19 learners. 183.20 Sec. 32. [ADULT BASIC EDUCATION CONSORTIUM DISTRIBUTION TO 183.21 MEMBERS.] 183.22 Consortiums receiving additional funding based on 183.23 population aid shall proportionately distribute that additional 183.24 funding to noneducation institution members of the consortium 183.25 based upon the percentage of contact hours each noneducation 183.26 institution member provides. This provision shall be effective 183.27 through June 30, 2001. 183.28 Sec. 33. [ENERGY ASSISTANCE PROGRAM.] 183.29 (a) The commissioner of economic security shall establish 183.30 policies and procedures to address the findings in the 183.31 department of administration's evaluation of Minnesota's energy 183.32 assistance program published in December 1999. 183.33 (b) The commissioner of economic security shall develop: 183.34 (1) outcome measures, in accordance with federal 183.35 recommendations, by which to evaluate subgrantee performance and 183.36 the program as a whole; 184.1 (2) methods to identify the eligible population for the 184.2 energy assistance program; 184.3 (3) procedures to improve program consistency across the 184.4 state. This shall address program start and end dates, 184.5 eligibility determination, eligibility verification, and 184.6 application and payment processing times; and 184.7 (4) improved internal management practices. This includes 184.8 program oversight, evaluation and auditing of the service 184.9 delivery agencies, computer software system, and overall 184.10 management. The report shall also include proposals for the 184.11 utilization of technology to provide for the most cost-effective 184.12 service delivery. 184.13 Sec. 34. [FEDERAL TANF APPROPRIATIONS.] 184.14 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 184.15 LEARNING.] The sums indicated in this section are appropriated 184.16 from the federal TANF block grant fund to the commissioner of 184.17 children, families, and learning for the fiscal years 184.18 indicated. These amounts are available until expended and may 184.19 be carried forward and spent in the 2002-2003 biennium. 184.20 Subd. 2. [TRANSITIONAL HOUSING PROGRAMS.] For transitional 184.21 housing programs according to Minnesota Statutes, section 184.22 119A.43: 184.23 $3,700,000 ..... 2001 184.24 The amount appropriated under this subdivision does not 184.25 cancel, but is available until expended. 184.26 Sec. 35. [FEDERAL TANF TRANSFERS.] 184.27 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 184.28 LEARNING.] The sums indicated in this section are transferred 184.29 from the federal TANF fund to the child care and development 184.30 fund and appropriated to the commissioner of children, families, 184.31 and learning for the fiscal year designated. The commissioner 184.32 shall ensure that all transferred funds are expended in 184.33 accordance with the child care and development fund regulations 184.34 and that the maximum allowable transferred funds are used for 184.35 the program in this section. 184.36 Subd. 2. [BASIC SLIDING FEE CHILD CARE.] For child care 185.1 assistance according to Minnesota Statutes, section 119B.03: 185.2 $11,789,000 ..... 2001 185.3 $ 5,888,000 ..... 2002 185.4 $ 2,488,000 ..... 2003 185.5 The amounts appropriated under this subdivision do not 185.6 cancel, but are available until expended. 185.7 Subd. 3. [MFIP SOCIAL SERVICE CHILD CARE.] For social 185.8 service child care costs of eligible MFIP participants according 185.9 to Minnesota Statutes, section 119B.05: 185.10 $3,233,000 ..... 2001 185.11 $3,297,000 ..... 2002 185.12 $2,865,000 ..... 2003 185.13 This amount shall be added to the federal TANF block grant 185.14 base with regard to this program. 185.15 Subd. 4. [MFIP EDUCATION CHILD CARE.] For child care costs 185.16 related to the possible modifications to Minnesota Statutes, 185.17 section 256J.522, made in the 2000 legislative session in the 185.18 health and family security omnibus bill, which allows 24 months 185.19 of education to eligible MFIP participants under certain 185.20 circumstances. If the changes to Minnesota Statutes, section 185.21 256J.522, relating to 24 months of education do not pass into 185.22 law, the money appropriated under this subdivision shall revert 185.23 to the basic sliding fee program under subdivision 2, for fiscal 185.24 year 2001: 185.25 $600,000 ..... 2001 185.26 Subd. 5. [TRANSITION YEAR FAMILIES.] To provide 185.27 uninterrupted assistance under Minnesota Statutes, section 185.28 119B.03, for families completing transition year child care 185.29 assistance: 185.30 $1,080,000 ..... 2001 185.31 $3,620,000 ..... 2002 185.32 $4,040,000 ..... 2003 185.33 A balance may be carried forward one fiscal year. Any 185.34 amount remaining in fiscal year 2003 that is not needed for 185.35 uninterrupted child care must be used for assistance under 185.36 Minnesota Statutes, section 119B.03. 186.1 Sec. 36. [GENERAL FUND APPROPRIATIONS.] 186.2 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 186.3 LEARNING.] The sums indicated in this section are appropriated 186.4 from the general fund to the commissioner of children, families, 186.5 and learning for the fiscal years designated. The amounts are 186.6 available until expended and may be carried forward to the 186.7 2002-2003 biennium. 186.8 Subd. 2. [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 186.9 GRANTS.] For adult basic education supplemental service grants 186.10 according to Minnesota Statutes, section 124D.522: 186.11 $700,000 ..... 2001 186.12 This appropriation is added to the base for fiscal years 186.13 2002 and 2003. 186.14 Subd. 3. [ADULT BASIC ADMINISTRATION.] For the adult basic 186.15 policy review task force under Minnesota Statutes, section 186.16 124D.521, and for administration of the state adult basic 186.17 education program including auditing, technical assistance, and 186.18 reporting requirements under this act: 186.19 $100,000 ..... 2001 186.20 This appropriation is added to the fiscal year 2002 and 186.21 2003 base. 186.22 Subd. 4. [CITIZENSHIP PROMOTION.] For the citizenship 186.23 promotion program under Laws 1997, chapter 162, article 2, 186.24 section 32: 186.25 $350,000 ..... 2001 186.26 Subd. 5. [ADULTS WITH DISABILITIES.] For purposes of the 186.27 adults with disabilities pilot programs under Laws 1997, chapter 186.28 162, article 2, section 31, subdivision 4: 186.29 $40,000 ..... 2001 186.30 Subd. 6. [EMERGENCY SERVICES.] For emergency services 186.31 grants according to Laws 1997, chapter 162, article 3, section 7: 186.32 $1,477,000 ..... 2001 186.33 Sec. 37. [REPORT.] 186.34 The commissioner of economic security shall submit a report 186.35 to the legislature detailing the costs and benefits of operating 186.36 the energy assistance program. The report shall be submitted to 187.1 the senate jobs, energy and community development committee, and 187.2 the house jobs and economic development policy committee by 187.3 January 30, 2001. 187.4 Sec. 38. [TRANSFER OF ENERGY ASSISTANCE AND WEATHERIZATION 187.5 RESPONSIBILITIES.] 187.6 Energy assistance and weatherization responsibilities under 187.7 Minnesota Statutes, sections 119A.40, 119A.41, 119A.42, and 187.8 119A.425, are transferred from the department of children, 187.9 families, and learning to the department of economic security. 187.10 Sec. 39. [INSTRUCTION TO REVISOR.] 187.11 The revisor of statutes shall renumber each section of 187.12 Minnesota Statutes listed in column A with the number listed in 187.13 column B. The revisor shall also make necessary cross-reference 187.14 changes consistent with the renumbering. 187.15 column A column B 187.16 119A.40 268.985 187.17 119A.41 268.986 187.18 119A.42 268.987 187.19 119A.425 268.989 187.20 Sec. 40. [REPEALER.] 187.21 Minnesota Statutes 1998, section 124D.53, subdivisions 1, 187.22 2, and 5, are repealed. Minnesota Statutes 1999 Supplement, 187.23 section 124D.53, subdivision 4, is repealed. Laws 1998, First 187.24 Special Session chapter 1, article 1, section 10, subdivision 2, 187.25 is repealed. 187.26 Sec. 41. [EFFECTIVE DATE.] 187.27 Sections 33 and 37 to 39 are effective the day following 187.28 final enactment.