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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 464-H.F.No. 3557 
                  An act relating to legislative enactments; correcting 
                  miscellaneous oversights, inconsistencies, unintended 
                  results, and technical errors in state government, 
                  human services, and prekindergarten-grade 12 education 
                  code appropriations acts; appropriating money; 
                  amending Minnesota Statutes 1998, sections 125A.21, 
                  subdivision 1; and 256B.501, by adding a subdivision; 
                  Minnesota Statutes 1999 Supplement, sections 16A.129, 
                  subdivision 3; 124D.65, subdivision 4; 126C.052; 
                  126C.10, subdivisions 2 and 23; 126C.12, subdivision 
                  1; and 256B.77, subdivision 10; Laws 1999, chapters 
                  241, articles 1, section 70; and 4, section 29; 245, 
                  articles 1, section 3, subdivision 2; and 4, section 
                  121; 250, article 1, sections 11 and 14, subdivision 
                  3; repealing Laws 1999, chapter 241, article 10, 
                  section 5; and 250, article 1, section 15, subdivision 
                  4. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1
                                STATE GOVERNMENT
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        16A.129, subdivision 3, is amended to read: 
           Subd. 3.  [CASH ADVANCES.] When the operations of any 
        nongeneral fund account would be impeded by projected cash 
        deficiencies resulting from delays in the receipt of grants, 
        dedicated income, or other similar receivables, and when the 
        deficiencies would be corrected within the budget period 
        involved, the commissioner of finance may use general fund cash 
        reserves to meet cash demands.  If funds are transferred from 
        the general fund to meet cash flow needs, the cash flow 
        transfers must be returned to the general fund as soon as 
        sufficient cash balances are available in the account to which 
        the transfer was made.  The fund to which general fund cash was 
        advanced must pay interest on the cash advance at a rate 
        comparable to the rate earned by the state on invested 
        treasurer's cash, as determined monthly by the commissioner.  An 
        amount necessary to pay the interest is appropriated from the 
        nongeneral fund to which the cash advance was made.  Any 
        interest earned on general fund cash flow transfers accrues to 
        the general fund and not to the accounts or funds to which the 
        transfer was made.  The commissioner may advance general fund 
        cash reserves to nongeneral fund accounts where the receipts 
        from other governmental units cannot be collected within the 
        budget period. 
           Sec. 2.  Laws 1999, chapter 250, article 1, section 11, is 
        amended to read: 
        Sec. 11.  OFFICE OF STRATEGIC 
        AND LONG-RANGE PLANNING                6,891,000      4,417,000
        $100,000 the first year is to integrate 
        the office's information technology and 
        is available until June 30, 2003.  The 
        director shall report on the progress 
        of the unit to the chairs of the 
        legislative committees responsible for 
        this budget item by January 15, 2000, 
        2001, and 2002. 
        $1,600,000 the first year is for a 
        generic environmental impact statement 
        on animal agriculture. 
        $200,000 the first year is to perform 
        program evaluations of agencies in the 
        executive branch. 
        The program evaluation division will 
        report to the legislature by December 
        1, 2000, ways to reduce state 
        government expenditures by five to ten 
        percent. 
        $100,000 the first year is to provide 
        administrative support to 
        community-based planning efforts. 
        $150,000 the first year is for a grant 
        of $50,000 to the southwest regional 
        development commission for the 
        continuation of the pilot program and 
        two additional grants of $50,000 each 
        to regional development commissions or, 
        in regions not served by regional 
        development commissions, to regional 
        organizations selected by the director 
        of strategic and long-range planning, 
        to support planning work on behalf of 
        local units of government.  The 
        planning work shall include, but need 
        not be limited to:  
        (1) development of local zoning 
        ordinances; 
        (2) land use plans; 
        (3) community or economic development 
        plans; 
        (4) transportation and transit plans; 
        (5) solid waste management plans; 
        (6) wastewater management plans; 
        (7) workforce development plans; 
        (8) housing development plans and/or 
        market analysis; 
        (9) rural health service plans; 
        (10) natural resources management 
        plans; or 
        (11) development of geographical 
        information systems database to serve a 
        region's needs, including hardware and 
        software purchases and related labor 
        costs. 
        $200,000 the first year is to prepare 
        the generic environmental impact 
        statement on urban development required 
        by section 108.  Any unencumbered 
        balance remaining in the first year 
        does not cancel and is available for 
        the second year of the biennium. 
        $24,000 the first year is for the 
        southwest Minnesota wind monitoring 
        project. 
        $100,000 the first year is for a grant 
        to the city of Mankato to complete the 
        Mankato area growth management and 
        planning study, phase 2.  The 
        appropriation is available until June 
        30, 2002.  The appropriation must be 
        matched by an in-kind donation of 
        $100,000 in administrative, technical, 
        and higher educational internship 
        support and supervision.  The value of 
        the in-kind donations must be 
        determined by the commissioner of 
        finance. 
        The city shall serve as fiscal agent to 
        complete the study under the 1997 
        regional planning joint powers 
        agreement among the cities of Mankato, 
        North Mankato, and Eagle Lake; the 
        counties of Nicollet and Blue Earth; 
        and the towns of Mankato, South Bend, 
        Lime, Decoria, and Belgrade, without 
        limitation on the rights of the parties 
        to that agreement to add or remove 
        members.  The study is intended as an 
        alternative to community-based 
        planning.  The study is intended to 
        develop information and analysis to 
        provide guidance on such issues as: 
        (1) the development of joint planning 
        agreements to implement a unified 
        growth management strategy; 
        (2) joint service ventures, such as 
        planning or zoning administration in 
        urban fringe areas; 
        (3) orderly growth and annexation 
        agreements between cities and 
        townships; 
        (4) feedlot regulations in urban fringe 
        areas and future growth corridors; 
        (5) service strategies for unsewered 
        subdivisions; 
        (6) other joint ventures for city, 
        county, and township service delivery 
        in fringe areas; 
        (7) feasibility of a rural township 
        taxing district; and 
        (8) alternatives to the current 
        community-based planning legislation 
        that would add flexibility and improve 
        the planning process. 
        The city of Mankato shall report the 
        results of the study to the legislature 
        by January 15, 2002. 
           Sec. 3.  Laws 1999, chapter 250, article 1, section 14, 
        subdivision 3, is amended to read: 
         Subd. 3.  Information and 
        Management Services 
            16,643,000      9,932,000
        $100,000 the first year is for a grant 
        to the city of Mankato to complete the 
        Mankato area growth management and 
        planning study, phase 2.  The 
        appropriation is available until June 
        30, 2002.  The appropriation must be 
        matched by an in-kind donation of 
        $100,000 in administrative, technical, 
        and higher educational internship 
        support and supervision.  The value of 
        the in-kind donations must be 
        determined by the commissioner of 
        finance. 
        The city shall serve as fiscal agent to 
        complete the study under the 1997 
        regional planning joint powers 
        agreement among the cities of Mankato, 
        North Mankato, and Eagle Lake; the 
        counties of Nicollet and Blue Earth; 
        and the towns of Mankato, South Bend, 
        Lime, Decoria, and Belgrade, without 
        limitation on the rights of the parties 
        to that agreement to add or remove 
        members.  The study is intended as an 
        alternative to community-based 
        planning.  The study is intended to 
        develop information and analysis to 
        provide guidance on such issues as: 
        (1) the development of joint planning 
        agreements to implement a unified 
        growth management strategy; 
        (2) joint service ventures, such as 
        planning or zoning administration in 
        urban fringe areas; 
        (3) orderly growth and annexation 
        agreements between cities and 
        townships; 
        (4) feedlot regulations in urban fringe 
        areas and future growth corridors; 
        (5) service strategies for unsewered 
        subdivisions; 
        (6) other joint ventures for city, 
        county, and township service delivery 
        in fringe areas; 
        (7) feasibility of a rural township 
        taxing district; and 
        (8) alternatives to the current 
        community-based planning legislation 
        that would add flexibility and improve 
        the planning process. 
        The city of Mankato shall report the 
        results of the study to the legislature 
        by January 15, 2002. 
        $6,839,000 the first year is a one-time 
        appropriation to upgrade the human 
        resources and payroll system and is 
        available until June 30, 2003.  The 
        commissioner shall report on the 
        progress of this project to the chairs 
        of the legislative committees 
        responsible for this budget item by 
        January 15, 2000, 2001, and 2002. 
        The commissioner of finance shall work 
        with the commissioners of employee 
        relations and administration and shall 
        develop as part of the human resource 
        and payroll systems upgrade, and submit 
        to the chairs of the senate 
        governmental operations budget division 
        and the house state government finance 
        committee by January 15, 2000, a 
        long-range plan for the statewide 
        business systems:  human resources, 
        payroll, accounting, and procurement.  
        The plan must detail each system's 
        original development costs, its 
        expected life cycle, the estimated cost 
        of upgrading software to newer versions 
        during its life cycle, its operating 
        costs to date, and the factors that are 
        expected to drive future operating 
        costs within the departments of 
        finance, administration, and employee 
        relations.  The plan must also include 
        an evaluation of and recommendations on 
        whether, for the statewide business 
        systems, the state should use software 
        that is developed and maintained in 
        house; proprietary software, either 
        modified or unmodified; a private 
        vendor; or a particular combination of 
        these options. 
        The commissioner of finance, in 
        consultation with senate and house 
        fiscal staff and the commissioner of 
        administration, shall develop 
        recommendations for inclusion in the 
        governor's fiscal year 2002-2003 budget 
        document on the presentation of 
        internal service funds.  The 
        commissioner of finance shall submit 
        the recommendations to the chairs of 
        the senate governmental operations 
        budget division and the house state 
        government finance committee by January 
        15, 2000. 
        The department shall prepare a separate 
        budget book for the biennium beginning 
        July 1, 2001, containing all of the 
        administration's technology 
        initiatives.  The book must also 
        include a complete inventory of 
        state-owned and leased technology, 
        along with a projected replacement 
        schedule.  The inventory must include 
        information on how the technology fits 
        into the state's master plan. 
           Sec. 4.  [REPEALER.] 
           Laws 1999, chapter 250, article 1, section 15, subdivision 
        4, is repealed. 

                                   ARTICLE 2 
                          DEPARTMENT OF HUMAN SERVICES 
           Section 1.  Minnesota Statutes 1998, section 125A.21, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [OBLIGATION TO PAY.] Nothing in sections 
        125A.03 to 125A.24 and 125A.65 relieves an insurer or similar 
        third party from an otherwise valid obligation to pay, or 
        changes the validity of an obligation to pay, for services 
        rendered to a child with a disability, and the child's family.  
        A school district shall pay the nonfederal share of medical 
        assistance services provided according to section 256B.0625, 
        subdivision 26.  Eligible expenditures must not be made from 
        federal funds or funds used to match other federal funds.  Any 
        federal disallowances are the responsibility of the school 
        district.  A school district may pay or reimburse copayments, 
        coinsurance, deductibles, and other enrollee cost-sharing 
        amounts, on behalf of the student or family, in connection with 
        health and related services provided under an individual 
        educational plan.  
           Sec. 2.  Minnesota Statutes 1998, section 256B.501, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [ICF/MR RATE INCREASES BEGINNING OCTOBER 1, 
        1999, AND OCTOBER 1, 2000.] (a) For the rate years beginning 
        October 1, 1999, and October 1, 2000, the commissioner shall 
        make available to each facility reimbursed under this section, 
        section 256B.5011, and Laws 1993, First Special Session chapter 
        1, article 4, section 11, an adjustment to the total operating 
        payment rate.  For each facility, total operating costs shall be 
        separated into costs that are compensation-related and all other 
        costs.  "Compensation-related costs" means the facility's 
        allowable program operating cost category employee training 
        expenses, and the facility's allowable salaries, payroll taxes, 
        and fringe benefits.  The term does not include these same 
        salary-related costs for both administrative or central office 
        employees. 
           For the purpose of determining the adjustment to be granted 
        under this subdivision, the commissioner must use the most 
        recent cost report that has been subject to desk audit. 
           (b) For the rate year beginning October 1, 1999, the 
        commissioner shall make available a rate increase for 
        compensation-related costs of 4.6 percent and a rate increase 
        for all other operating costs of 3.2 percent. 
           (c) For the rate year beginning October 1, 2000, the 
        commissioner shall make available a rate increase for 
        compensation-related costs of 3.6 percent and a rate increase 
        for all other operating costs of two percent. 
           (d) For each facility, the commissioner shall determine the 
        payment rate adjustment using the categories specified in 
        paragraph (a) multiplied by the rate increases specified in 
        paragraph (b) or (c), and then dividing the resulting amount by 
        the facility's actual resident days.  
           (e) Any facility whose payment rates are governed by 
        closure agreements, receivership agreements, or Minnesota Rules, 
        part 9553.0075, are not eligible for an adjustment otherwise 
        granted under this subdivision.  
           (f) A facility may apply for the compensation-related 
        payment rate adjustment calculated under this subdivision.  The 
        application must be made to the commissioner and contain a plan 
        by which the facility will distribute the compensation-related 
        portion of the payment rate adjustment to employees of the 
        facility.  For facilities in which the employees are represented 
        by an exclusive bargaining representative, an agreement 
        negotiated and agreed to by the employer and the exclusive 
        bargaining representative constitutes the plan.  The 
        commissioner shall review the plan to ensure that the payment 
        rate adjustment per diem is used as provided in this 
        subdivision.  To be eligible, a facility must submit its plan 
        for the compensation distribution by December 31 each year.  A 
        facility may amend its plan for the second rate year by 
        submitting a revised plan by December 31, 2000.  If a facility's 
        plan for compensation distribution is effective for its 
        employees after October 1 of the year that the funds are 
        available, the payment rate adjustment per diem shall be 
        effective the same date as its plan. 
           (g) A copy of the approved distribution plan must be made 
        available to all employees.  This must be done by giving each 
        employee a copy or by posting it in an area of the facility to 
        which all employees have access.  If an employee does not 
        receive the compensation adjustment described in their 
        facility's approved plan and is unable to resolve the problem 
        with the facility's management or through the employee's union 
        representative, the employee may contact the commissioner at an 
        address or phone number provided by the commissioner and 
        included in the approved plan. 
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        256B.77, subdivision 10, is amended to read: 
           Subd. 10.  [CAPITATION PAYMENT.] (a) The commissioner shall 
        pay a capitation payment to the county authority and, when 
        applicable under subdivision 6, paragraph (a), to the service 
        delivery organization for each medical assistance eligible 
        enrollee.  The commissioner shall develop capitation payment 
        rates for the initial contract period for each demonstration 
        site in consultation with an independent actuary, to ensure that 
        the cost of services under the demonstration project does not 
        exceed the estimated cost for medical assistance services for 
        the covered population under the fee-for-service system for the 
        demonstration period.  For each year of the demonstration 
        project, the capitation payment rate shall be based on 96 
        percent of the projected per person costs that would otherwise 
        have been paid under medical assistance fee-for-service during 
        each of those years.  Rates shall be adjusted within the limits 
        of the available risk adjustment technology, as mandated by 
        section 62Q.03.  In addition, the commissioner shall implement 
        appropriate risk and savings sharing provisions with county 
        administrative entities and, when applicable under subdivision 
        6, paragraph (a), service delivery organizations within the 
        projected budget limits.  Capitation rates shall be adjusted, at 
        least annually, to include any rate increases and payments for 
        expanded or newly covered services for eligible individuals.  
        The initial demonstration project rate shall include an amount 
        in addition to the fee-for-service payments to adjust for 
        underutilization of dental services.  Any savings beyond those 
        allowed for the county authority, county administrative entity, 
        or service delivery organization shall be first used to meet the 
        unmet needs of eligible individuals.  Payments to providers 
        participating in the project are exempt from the requirements of 
        sections 256.966 and 256B.03, subdivision 2. 
           (b) The commissioner shall monitor and evaluate annually 
        the effect of the discount on consumers, the county authority, 
        and providers of disability services.  Findings shall be 
        reported and recommendations made, as appropriate, to ensure 
        that the discount effect does not adversely affect the ability 
        of the county administrative entity or providers of services to 
        provide appropriate services to eligible individuals, and does 
        not result in cost shifting of eligible individuals to the 
        county authority. 
           (c) For risk-sharing to occur under this subdivision, the 
        aggregate fee-for-service cost of covered services provided by 
        the county administrative entity under this section must exceed 
        the aggregate sum of capitation payments made to the county 
        administrative entity under this section.  The county authority 
        is required to maintain its current level of nonmedical 
        assistance spending on enrollees.  If the county authority 
        spends less in nonmedical assistance dollars on enrollees than 
        it spent the year prior to the contract year, the amount of 
        underspending shall be deducted from the aggregate 
        fee-for-service cost of covered services.  The commissioner 
        shall then compare the fee-for-service costs and capitation 
        payments related to the services provided for the term of this 
        contract.  The commissioner shall base its calculation of the 
        fee-for-service costs on application of the medical assistance 
        fee schedule to services identified on the county administrative 
        entity's encounter claims submitted to the commissioner.  The 
        aggregate fee-for-service cost shall not include any third-party 
        recoveries or cost-avoided amounts. 
           If the commissioner finds that the aggregate 
        fee-for-service cost is greater than the sum of the capitation 
        payments, the commissioner shall settle according to the 
        following schedule: 
           (1) For the first contract year for each project, the 
        commissioner shall pay the county administrative entity 50 
        percent of the difference between the sum of the capitation 
        payments and 100 percent of projected fee-for-service costs.  
        For aggregate fee-for-service costs in excess of 100 percent of 
        projected fee-for-service costs, the commissioner shall pay 250 
        25 percent of the difference between the aggregate 
        fee-for-service costs and the projected fee-for-service costs, 
        up to 104 percent of the projected fee-for-service costs.  The 
        county administrative entity shall be responsible for all costs 
        in excess of 104 percent of projected fee-for-service costs. 
           (2) For the second contract year for each project, the 
        commissioner shall pay the county administrative entity 37.5 
        percent of the difference between the sum of the capitation 
        payments and 100 percent of projected fee-for-service costs.  
        The county administrative entity shall be responsible for all 
        costs in excess of 100 percent of projected fee-for-service 
        costs. 
           (3) For the third contract year for each project, the 
        commissioner shall pay the county administrative entity 25 
        percent of the difference between the sum of the capitation 
        payments and 100 percent of projected fee-for-service costs.  
        The county administrative entity shall be responsible for all 
        costs in excess of 100 percent of projected fee-for-service 
        costs. 
           (4) For the fourth and subsequent contract years for each 
        project, the county administrative entity shall be responsible 
        for all costs in excess of the capitation payments. 
           (d) In addition to other payments under this subdivision, 
        the commissioner may increase payments by up to 0.25 percent of 
        the projected per person costs that would otherwise have been 
        paid under medical assistance fee-for-service.  The commissioner 
        may make the increased payments to: 
           (1) offset rate increases for regional treatment services 
        under subdivision 22 which are higher than was expected by the 
        commissioner when the capitation was set at 96 percent; and 
           (2) implement incentives to encourage appropriate, high 
        quality, efficient services. 
           Sec. 4.  Laws 1999, chapter 245, article 1, section 3, 
        subdivision 2, is amended to read: 
        Subd. 2.  Health Systems
        and Special Populations               66,999,000     66,269,000
                      Summary by Fund
        General              46,593,000    46,299,000
        State Government
        Special Revenue      10,557,000    10,012,000
        Health Care 
        Access                9,849,000     9,958,000
        [MERC ADMINISTRATIVE COSTS.] Of the 
        general fund appropriation for the 
        medical education and research fund, 
        $150,000 in fiscal year 2000 and 
        $150,000 in fiscal year 2001 is for the 
        commissioner for administrative costs 
        in implementing Minnesota Statutes, 
        sections 62J.692 and 62J.693. 
        [WIC TRANSFERS.] The general fund 
        appropriation for the women, infants, 
        and children (WIC) food supplement 
        program is available for either year of 
        the biennium.  Transfers of these funds 
        between fiscal years must either be to 
        maximize federal funds or to minimize 
        fluctuations in the number of program 
        participants. 
        [MINNESOTA CHILDREN WITH SPECIAL HEALTH 
        NEEDS CARRYOVER.] General fund 
        appropriations for treatment services 
        in the services for Minnesota children 
        with special health needs program are 
        available for either year of the 
        biennium. 
        [SUICIDE PREVENTION STUDY.] Of the 
        general fund appropriation, $100,000 in 
        fiscal year 2000 is for the 
        commissioner to study suicide issues 
        and develop a suicide prevention plan.  
        The study must be conducted in 
        consultation with local community 
        health boards, mental health 
        professionals, schools, and other 
        interested parties.  The plan must be 
        reported to the legislature by January 
        15, 2000.  
        [FAMILY PRACTICE RESIDENCY PROGRAM.] Of 
        the general fund appropriation, 
        $300,000 in fiscal year 2000 is to the 
        commissioner to make a grant to the 
        city of Duluth for a family practice 
        residency program for northeastern 
        Minnesota. 
        [UNCOMPENSATED CARE.] The commissioner 
        shall study and report to the 
        legislature by January 15, 2000, with: 
        (1) statistical information on the 
        amount of uncompensated health care 
        provided in Minnesota, the types of 
        care provided, the settings in which 
        the care is provided, and, if known, 
        the most common reasons why the care is 
        uncompensated; and 
        (2) recommendations for reducing the 
        level of uncompensated care, including, 
        but not limited to, methods to enroll 
        eligible persons in public health care 
        programs through simplification of the 
        application process and other efforts. 
        [RURAL HOSPITAL CAPITAL IMPROVEMENT 
        GRANT PROGRAM.] (a) Of this 
        appropriation, $2,800,000 for each 
        fiscal year is from the health care 
        access fund to the commissioner for the 
        rural hospital capital improvement 
        grant program described in Minnesota 
        Statutes, section 144.148. This 
        appropriation shall not become part of 
        the base for the 2002-2003 biennium. 
        (b) The commissioner may provide up to 
        $300,000 for the Westbrook health 
        center for hospital and clinic 
        improvements, upon receipt of 
        information from the Westbrook health 
        center indicating how it has fulfilled 
        the requirements of Minnesota Statutes, 
        section 144.148, and evidence that it 
        has raised at least a dollar-for-dollar 
        match from nonstate sources. 
        [ACCESS TO SUMMARY MINIMUM DATA SET 
        (MDS).] The commissioner, in 
        cooperation with the commissioner of 
        administration, shall work to obtain 
        access to Minimum Data Set (MDS) data 
        that is electronically transmitted by 
        nursing facilities to the health 
        department.  The MDS data shall be made 
        available on a quarterly basis to 
        industry trade associations for use in 
        quality improvement efforts and 
        comparative analysis.  The MDS data 
        shall be provided to the industry trade 
        associations in the form of summary 
        aggregate data, without patient 
        identifiers, to ensure patient 
        privacy.  The commissioner may charge 
        for the actual cost of production of 
        these documents. 
        [NURSING HOME MORATORIUM REPORT.] In 
        preparing the report required by 
        Minnesota Statutes, section 144A.071, 
        subdivision 5, the commissioner and the 
        commissioner of human services shall 
        analyze the adequacy of the supply of 
        nursing home beds by measuring the 
        ability of hospitals to promptly 
        discharge patients to a nursing home 
        within the hospital's primary service 
        area.  If it is determined that a 
        shortage of beds exists, the report 
        shall present a plan to correct the 
        service deficits.  The report shall 
        also analyze the impact of assisted 
        living services on the medical 
        assistance utilization of nursing homes.
        [HEALTH CARE PURCHASING ALLIANCES.] Of 
        the health care access fund 
        appropriation, $100,000 each year is to 
        the commissioner for grants to two 
        local organizations to develop health 
        care purchasing alliances under 
        Minnesota Statutes, section 62T.02, to 
        negotiate the purchase of health care 
        services from licensed entities.  Of 
        this amount, $50,000 each year is for a 
        grant to the Southwest Regional 
        Development Commissioner to coordinate 
        purchasing alliance development in the 
        southwest area of the state, and 
        $50,000 each year is for a grant to the 
        University of Minnesota extension 
        services in Crookston to coordinate 
        purchasing alliance development in the 
        northwest area of the state.  This is a 
        one-time appropriation and shall not 
        become part of base level funding for 
        this activity for the 2002-2003 
        biennium. 
        [GENERAL FUND TOBACCO BASE REDUCTION.] 
        The general fund base level 
        appropriation for tobacco prevention 
        and control programs and activities 
        shall be reduced by $1,100,000 each 
        year of the biennium beginning July 1, 
        2001.  Section 13, sunset of uncodified 
        language, does not apply to this 
        provision. 
        [STANDARDS FOR SPECIAL CASE AUTOPSIES.] 
        Of this general fund appropriation, 
        $20,000 for the biennium is for a grant 
        to a professional association 
        representing coroners and medical 
        examiners in Minnesota to conduct case 
        studies, and develop and disseminate 
        guidelines, for autopsy practice in 
        special cases.  This is a one-time 
        appropriation and shall not become part 
        of base level funding for the 2002-2003 
        biennium. 
           Sec. 5.  Laws 1999, chapter 245, article 4, section 121, is 
        amended to read: 
           Sec. 121.  [EFFECTIVE DATE.] 
           (a) Sections 3, 4, 5, 45, 95, and 97, subdivision 3, 
        paragraph (d), are effective July 1, 2000. 
           (b) Section 56 is effective upon federal approval. 
           Sec. 6.  [EFFECTIVE DATE.] 
           Section 1 is effective July 1, 2000.  Sections 2 to 4 are 
        effective retroactive to July 1, 1999. 

                                   ARTICLE 3 
                   EDUCATION CODE:  PREKINDERGARTEN-GRADE 12 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        124D.65, subdivision 4, is amended to read: 
           Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
        limited English proficiency programs revenue for fiscal year 
        2000 equals $27,454,000.  The state total limited English 
        proficiency programs revenue for fiscal year 2001 equals 
        $31,752,000.  
           (b) The state total limited English proficiency programs 
        revenue for later fiscal years equals: 
           (1) the state total limited English proficiency programs 
        revenue for the preceding fiscal year; times 
           (2) the program growth factor under section 125A.76 
        subdivision 1; times 
           (3) the ratio of the state total number of pupils with 
        limited English proficiency for the current fiscal year to the 
        state total number of pupils with limited English proficiency 
        for the preceding fiscal year. 
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        126C.052, is amended to read: 
           126C.052 [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 
        EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 
           A district is required to reserve $3 in fiscal year 2000 
        and $11 in fiscal year 2001 and later per adjusted marginal cost 
        pupil unit for class size reduction, all-day kindergarten, or 
        for reducing special education student-to-instructor ratios.  
        The school board of each district must pass a resolution stating 
        which one of these three programs will be funded with this 
        reserve.  The reserve amount under this section must be 
        allocated to the education site as defined in section 123B.04, 
        subdivision 1, according to a plan adopted by the school board. 
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        126C.10, subdivision 2, is amended to read: 
           Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
        district equals the formula allowance times the resident 
        adjusted marginal cost pupil units for the school year.  The 
        formula allowance for fiscal year 1998 is $3,581.  The formula 
        allowance for fiscal year 1999 is $3,530.  The formula allowance 
        for fiscal year 2000 is $3,740.  The formula allowance for 
        fiscal year 2001 and subsequent fiscal years is $3,875. 
           Sec. 4.  Minnesota Statutes 1999 Supplement, section 
        126C.10, subdivision 23, is amended to read: 
           Subd. 23.  [REFERENDUM OFFSET ADJUSTMENT.] A district that 
        qualifies for the referendum allowance reduction under section 
        126C.17, subdivision 12, and whose referendum allowance under 
        section 126C.17, subdivision 1, as adjusted under section 
        126C.17, subdivisions 2 and 12, does not exceed the referendum 
        allowance limit under section 126C.17, subdivision 2, clause 
        (2), shall receive a referendum offset adjustment.  In fiscal 
        year 2000 and thereafter, the referendum offset adjustment is 
        equal to $25 per resident adjusted marginal cost pupil unit. 
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        126C.12, subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE.] Of a district's general 
        education revenue for fiscal year 2000 and thereafter each 
        school district shall reserve an amount equal to the formula 
        allowance multiplied by the following calculation: 
           (1) the sum of adjusted marginal cost pupil units pupils in 
        average daily membership, according to section 126C.05, 
        subdivision 5, in kindergarten times .057; plus 
           (2) the sum of adjusted marginal cost pupil units pupils in 
        average daily membership, according to section 126C.05, 
        subdivision 5, in grades 1 to 3 times .115; plus 
           (3) the sum of adjusted marginal cost pupil units pupils in 
        average daily membership, according to section 126C.05, 
        subdivision 5, in grades 4 to 6 times .06. 
           Sec. 6.  Laws 1999, chapter 241, article 1, section 70, is 
        amended to read: 
           Sec. 70.  [EFFECTIVE DATES.] 
           Sections 13, 14, 26, 30, 37, and 39 are effective for 
        revenue for fiscal year 2000 and later.  Section 41 is effective 
        for revenue for fiscal year 2001 and later.  Sections 46, 47, 
        and 55 to 60 are effective the day following final enactment.  
        Section 61 is effective for taxes payable in 2000 and later. 
           Sec. 7.  Laws 1999, chapter 241, article 4, section 29, is 
        amended to read: 
           Sec. 29.  [REPEALER.] 
           (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
        123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
        subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
        subdivisions 1 and 2; section 123B.66; 123B.67; 123B.68; and 
        123B.69, are, is repealed effective the day following final 
        enactment. 
           (b) Minnesota Statutes 1998, section 123B.58, is repealed 
        effective July 1, 2004. 
           (c) Minnesota Statutes 1998, section 123B.64, subdivision 
        4, is repealed effective for revenue for fiscal year 2000. 
           (d) (c) Minnesota Statutes 1998, section 123B.64, 
        subdivisions 1, 2, and 3, are repealed effective for revenue for 
        fiscal year 2001. 
           (e) (d) Minnesota Rules, parts 3500.3900; 3500.4000; 
        3500.4100; 3500.4200; and 3500.4300, are repealed. 
           Sec. 8.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] 
           (a) The sums indicated in this section are appropriated 
        from the general fund unless otherwise indicated to the 
        department of children, families, and learning for the fiscal 
        years designated. 
             $32,316,000     .....     2000 
             $29,785,000     .....     2001 
           (b) Any balance the first year does not cancel but is 
        available in the second year. 
           (c) $21,000 each year is from the trunk highway fund. 
           (d) $673,000 in 2000 and $678,000 in 2001 is for the board 
        of teaching. 
           (e) Notwithstanding Minnesota Statutes, section 15.53, 
        subdivision 2, the commissioner of children, families, and 
        learning may contract with a school district for a period no 
        longer than five consecutive years to work in the development or 
        implementation of the graduation rule.  The commissioner may 
        contract for services and expertise as necessary.  The contracts 
        are not subject to Minnesota Statutes, section 16C.05. 
           (f) $165,000 in 2000 is for the state board of education.  
        Any functions of the state board of education that are not 
        specifically transferred to another agency are transferred to 
        the department of children, families, and learning under 
        Minnesota Statutes, section 15.039.  For the position that is 
        classified, upon transferring the responsibilities, the current 
        incumbent is appointed to the classified position without exam 
        or probationary period. 
           (g) $2,000,000 in 2000 is for litigation costs and may only 
        be used for those purposes.  This is a one-time appropriation. 
           Sec. 9.  [REPEALER WITHOUT EFFECT.] 
           The repeal of Minnesota Statutes 1998, sections 123A.44; 
        123A.441; 123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 
        123B.57, subdivisions 4, 5, and 7; 123B.59, subdivision 7; 
        123B.63, subdivisions 1 and 2; 123B.67; 123B.68; and 123B.69, by 
        Laws 1999, chapter 241, article 4, section 29, with an effective 
        date of May 26, 1999, is without effect and Minnesota Statutes 
        1998, sections 123A.44; 123A.441; 123A.442; 123A.443; 123A.444; 
        123A.445; 123A.446; 123B.57, subdivisions 4, 5, and 7; 123B.59, 
        subdivision 7; 123B.63, subdivisions 1 and 2; 123B.67; 123B.68; 
        and 123B.69, remain in effect after May 25, 1999. 
           Sec. 10.  [REPEALER.] 
           Laws 1999, chapter 241, article 10, section 5, is repealed 
        retroactive to July 1, 1999. 
           Sec. 11.  [EFFECTIVE DATE.] 
           Section 8 is effective retroactive to July 1, 1999.  
        Sections 7, paragraph (a), and 9 are effective retroactive to 
        May 26, 1999. 
           Presented to the governor May 11, 2000 
           Signed by the governor May 15, 2000, 10:48 a.m.