Office of the Revisor of Statutes
Minnesota Session Laws - 2002, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 374-H.F.No. 3270
An act relating to the financing of state government;
appropriating money and reducing appropriations for
kindergarten through grade 12, early childhood and
family education, higher education, environment, state
government, and health and human services; canceling
balances and appropriations and transferring balances
to the general fund in order to avert a deficit;
converting certain capital project financing from
general fund cash to general obligation bonding;
modifying education aids; transferring programs;
changing certain fees; modifying certain programs;
amending Minnesota Statutes 2000, sections 13.05,
subdivision 4; 16A.28, subdivision 6; 16B.27, by
adding a subdivision; 79.251, subdivision 1; 115A.557,
subdivision 1; 115A.96, subdivisions 2, 3, 4, 5, 7, as
added; 124D.69, by adding a subdivision; 125A.65,
subdivisions 1, 3, 8, 9; 127A.45, subdivisions 2, 3,
10, 13, 14, 16, by adding a subdivision; 136A.121,
subdivision 7; 144.395, subdivision 1, as amended;
241.44, by adding a subdivision; 256.9657, subdivision
1, as amended; 256B.431, subdivisions 23, as amended,
37, as added; 256E.06, subdivision 3; 256J.425, by
adding a subdivision; 256L.01, subdivision 4;
Minnesota Statutes 2001 Supplement, sections 62J.694,
subdivision 1; 123B.54, as amended; 124D.11,
subdivision 9; 126C.10, subdivision 13; 126C.17,
subdivision 7; 127A.45, subdivision 14a; 241.021,
subdivision 4; 256B.5013, subdivision 1, as amended;
256J.425, subdivisions 3, 4, 5; Laws 1997, chapter
202, article 2, section 61, as amended; Laws 2001,
First Special Session chapter 3, article 1, section
17, subdivision 2; Laws 2001, First Special Session
chapter 3, article 1, section 17, subdivision 3, as
amended; Laws 2001, First Special Session chapter 3,
article 1, section 17, subdivision 4; Laws 2001, First
Special Session chapter 3, article 1, section 17,
subdivision 7, as amended; Laws 2001, First Special
Session chapter 3, article 1, section 17, subdivision
9, as amended; Laws 2001, First Special Session
chapter 3, article 1, section 19, subdivision 3, as
amended; Laws 2001, First Special Session chapter 3,
article 1, section 19, subdivision 5, as amended; Laws
2001, First Special Session chapter 3, article 2,
section 15, subdivision 3, as amended; Laws 2001,
First Special Session chapter 3, article 2, section
15, subdivision 4; Laws 2001, First Special Session
chapter 3, article 2, section 15, subdivision 6; Laws
2001, First Special Session chapter 3, article 3,
section 9, subdivision 5; Laws 2001 First Special
Session chapter 3, article 3, section 9, subdivision
7; Laws 2001, First Special Session chapter 3, article
4, section 5, subdivision 2, as amended; Laws 2001,
First Special Session chapter 3, article 4, section 5,
subdivision 3; Laws 2001, First Special Session
chapter 5, article 2, section 29, subdivision 2, as
amended; Laws 2001, First Special Session chapter 6,
article 1, section 54, subdivision 2, as amended; Laws
2001, First Special Session chapter 6, article 1,
section 54, subdivision 4, as amended; Laws 2001,
First Special Session chapter 6, article 1, section
54, subdivision 5, as amended; Laws 2001, First
Special Session chapter 6, article 1, section 54,
subdivision 6, as amended; Laws 2001, First Special
Session chapter 6, article 1, section 54, subdivision
7, as amended; Laws 2001, First Special Session
chapter 6, article 2, section 77, subdivision 4, as
amended; Laws 2001, First Special Session chapter 6,
article 2, section 77, subdivision 5, as amended; Laws
2001, First Special Session chapter 6, article 2,
section 77, subdivision 6; Laws 2001, First Special
Session chapter 6, article 2, section 77, subdivision
8, as amended; Laws 2001, First Special Session
chapter 6, article 2, section 77, subdivision 11, as
amended; Laws 2001, First Special Session chapter 6,
article 2, section 77, subdivision 15, as amended;
Laws 2001, First Special Session chapter 6, article 2,
section 77, subdivision 18, as amended; Laws 2001,
First Special Session chapter 6, article 3, section
21, subdivision 2, as amended; Laws 2001, First
Special Session chapter 6, article 3, section 21,
subdivision 3, as amended; Laws 2001, First Special
Session chapter 6, article 3, section 21, subdivision
4, as amended; Laws 2001, First Special Session
chapter 6, article 3, section 21, subdivision 5, as
amended; Laws 2001, First Special Session chapter 6,
article 3, section 21, subdivision 7, as amended; Laws
2001, First Special Session chapter 6, article 4,
section 27, subdivision 2, as amended; Laws 2001,
First Special Session chapter 6, article 4, section
27, subdivision 3, as amended; Laws 2001, First
Special Session chapter 6, article 4, section 27,
subdivision 5, as amended; Laws 2001, First Special
Session chapter 6, article 5, section 13, subdivision
3; Laws 2001, First Special Session chapter 6, article
7, section 14, as amended; Laws 2001, First Special
Session chapter 9, article 2, section 74; Laws 2002,
chapter 220, article 2, section 14, subdivision 1;
Laws 2002, chapter 220, article 8, section 15; Laws
2002, chapter 220, article 10, section 4; Laws 2002,
chapter 220, article 10, section 36; Laws 2002,
chapter 220, article 10, section 37, as amended; Laws
2002 chapter 220, article 10, section 38, subdivision
2; Laws 2002, chapter 220, article 10, section 38,
subdivision 3; Laws 2002, chapter 220, article 10,
section 39; Laws 2002, chapter 220, article 13,
section 7; Laws 2002, chapter 220, article 13, section
9, subdivision 1; Laws 2002, chapter 220, article 13,
section 9, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
EDUCATION AID PAYMENT DELAY
Section 1. Minnesota Statutes 2001 Supplement, section
124D.11, subdivision 9, is amended to read:
Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a)
Notwithstanding section 127A.45, subdivision 3, aid payments for
the current fiscal year to a charter school not in its first
year of operation shall be of an equal amount on each of the 23
payment dates. A charter school in its first year of operation
shall receive, on its first payment date, ten percent of its
cumulative amount guaranteed for the year and 22 payments of an
equal amount thereafter the sum of which shall be 90 percent of
the cumulative amount guaranteed.
(b) Notwithstanding paragraph (a), for a charter school
ceasing operation prior to the end of a school year, 90 83
percent of the amount due for the school year may be paid to the
school after audit of prior fiscal year and current fiscal year
pupil counts.
(c) Notwithstanding section 127A.45, subdivision 3, and
paragraph (a), 90 83 percent of the start-up cost aid under
subdivision 8 shall be paid within 45 days after the first day
of student attendance for that school year.
(d) In order to receive state aid payments under this
subdivision, a charter school in its first three years of
operation must submit a quarterly report to the department of
children, families, and learning. The report must list each
student by grade, show the student's start and end dates, if
any, with the charter school, and for any student participating
in a learning year program, the report must list the hours and
times of learning year activities. The report must be submitted
not more than two weeks after the end of the calendar quarter to
the department. The department must develop a Web-based
reporting form for charter schools to use when submitting
enrollment reports. A charter school in its fourth and
subsequent year of operation must submit enrollment information
to the department in the form and manner requested by the
department.
Sec. 2. Minnesota Statutes 2000, section 127A.45,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] (a) The term "other district
receipts" means payments by county treasurers pursuant to
section 276.10, apportionments from the school endowment fund
pursuant to section 127A.33, apportionments by the county
auditor pursuant to section 127A.34, subdivision 2, and payments
to school districts by the commissioner of revenue pursuant to
chapter 298.
(b) The term "cumulative amount guaranteed" means the
product of
(1) the cumulative disbursement percentage shown in
subdivision 3; times
(2) the sum of
(i) 90 83 percent of the estimated aid and credit
entitlements paid according to subdivision 13; plus
(ii) 100 percent of the entitlements paid according to
subdivisions 11 and 12; plus
(iii) the other district receipts; plus
(iv) the final adjustment payment according to subdivision
9.
(c) The term "payment date" means the date on which state
payments to districts are made by the electronic funds transfer
method. If a payment date falls on a Saturday, a Sunday, or a
weekday which is a legal holiday, the payment shall be made on
the immediately preceding business day. The commissioner may
make payments on dates other than those listed in subdivision 3,
but only for portions of payments from any preceding payment
dates which could not be processed by the electronic funds
transfer method due to documented extenuating circumstances.
Sec. 3. Minnesota Statutes 2000, section 127A.45,
subdivision 3, is amended to read:
Subd. 3. [PAYMENT DATES AND PERCENTAGES.] (a) For fiscal
year 2003, the commissioner shall pay to a district on the dates
indicated an amount computed as follows: the cumulative amount
guaranteed minus the sum of (a) the district's other district
receipts through the current payment, and (b) the aid and credit
payments through the immediately preceding payment. For
purposes of this computation, the payment dates and the
cumulative disbursement percentages are as follows:
Payment date Percentage
Payment 1 July 15: 4.6 5.1
Payment 2 July 30: 6.9 7.7
Payment 3 August 15: the greater of (a) the final
adjustment for the prior fiscal year for
the state paid property tax credits
established in section 273.1392, or
(b) the amount needed to provide 15.2 percent 16.9
Payment 4 August 30: 17.4 19.3
Payment 5 September 15: 19.6 21.8
Payment 6 September 30: 21.8 24.3
Payment 7 October 15: the greater of (a) one-half of
the final adjustment for the prior fiscal year
for all aid entitlements except state paid
property tax credits, or (b) the amount needed to
provide 24 percent 26.3
Payment 8 October 30: the greater of (a) one-half of the
final adjustment for the prior fiscal year for all
aid entitlements except state paid property
tax credits, or (b) the amount needed
to provide 27.3 percent 28.3
Payment 9 November 15: 33.3 32.8
Payment 10 November 30: 39.3 39.1
Payment 11 December 15: 42.3 42.4
Payment 12 December 30: 45.3 45.6
Payment 13 January 15: 49.5 50.5
Payment 14 January 30: 53.8 55.0
Payment 15 February 15: 58.3 60.2
Payment 16 February 28: 62.8 65.0
Payment 17 March 15: 67.6 69.7
Payment 18 March 30: 72.3 74.3
Payment 19 April 15: 75.3 78.3
Payment 20 April 30: 81.3 84.2
Payment 21 May 15: 84.3 88.7
Payment 22 May 30: 92.3 93.3
Payment 23 June 20: 100.0
(b) In addition to the amounts paid under paragraph (a),
for fiscal year 2003, the commissioner shall pay to a district
on the dates indicated an amount computed as follows:
Payment 3 August 15: the final adjustment for the
prior fiscal year for the state paid
property tax credits established in
section 273.1392
Payment 7 October 15: one-half of the final adjustment
for the prior fiscal year for all aid
entitlements except state paid property
tax credits
Payment 8 October 30: one-half of the final adjustment
for the prior fiscal year for all aid
entitlements except state paid property
tax credits
(c) For fiscal year 2004 and later, the commissioner shall
pay to a district on the dates indicated an amount computed as
follows: the cumulative amount guaranteed minus the sum of (a)
the district's other district receipts through the current
payment, and (b) the aid and credit payments through the
immediately preceding payment. For purposes of this
computation, the payment dates and the cumulative disbursement
percentages are as follows:
Payment date Percentage
Payment 1 July 15: 5.1
Payment 2 July 30: 7.7
Payment 3 August 15: 16.9
Payment 4 August 30: 19.3
Payment 5 September 15: 21.8
Payment 6 September 30: 24.3
Payment 7 October 15: 26.3
Payment 8 October 30: 28.3
Payment 9 November 15: 30.3
Payment 10 November 30: 35.0
Payment 11 December 15: 40.0
Payment 12 December 30: 43.0
Payment 13 January 15: 48.0
Payment 14 January 30: 52.0
Payment 15 February 15: 56.0
Payment 16 February 28: 61.0
Payment 17 March 15: 66.0
Payment 18 March 30: 72.0
Payment 19 April 15: 76.0
Payment 20 April 30: 83.0
Payment 21 May 15: 88.0
Payment 22 May 30: 95.0
Payment 23 June 20: 100.0
(d) In addition to the amounts paid under paragraph (c),
for fiscal year 2004 and later, the commissioner shall pay to a
district on the dates indicated an amount computed as follows:
Payment 3 August 15: the final adjustment for the
prior fiscal year for the state paid
property tax credits established in
section 273.1392
Payment 4 August 30: one-third of the final adjustment
for the prior fiscal year for all aid
entitlements except state paid property
tax credits
Payment 6 September 30: one-third of the final adjustment
for the prior fiscal year for all aid
entitlements except state paid property
tax credits
Payment 8 October 30: one-third of the final adjustment
for the prior fiscal year for all aid
entitlements except state paid property
tax credits
Sec. 4. Minnesota Statutes 2000, section 127A.45, is
amended by adding a subdivision to read:
Subd. 7a. [ADVANCE FINAL PAYMENT.] (a) Notwithstanding
subdivisions 3 and 7, a school district or a charter school
exceeding its expenditure limitations under section 123B.83 as
of June 30 of the prior fiscal year may receive a portion of its
final payment for the current fiscal year on June 20, if
requested by the district. The amount paid under this
subdivision must not exceed the lesser of:
(1) seven percent of the district or charter school's
general education aid for the current fiscal year; or
(2) the amount by which the district or charter school's
net negative unreserved general fund balance as of June 30 of
the prior fiscal year exceeds 2.5 percent of the district or
charter school's expenditures for that fiscal year.
(b) The state total advance final payment under this
subdivision for any year must not exceed $17,500,000. If the
amount requested exceeds $17,500,000, the advance final payment
for each eligible district must be reduced proportionately.
Sec. 5. Minnesota Statutes 2000, section 127A.45,
subdivision 10, is amended to read:
Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each
fiscal year state general fund payments for a district
nonoperating fund must be made at 90 83 percent of the estimated
entitlement during the fiscal year of the entitlement. This
amount shall be paid in 12 equal monthly installments. The
amount of the actual entitlement, after adjustment for actual
data, minus the payments made during the fiscal year of the
entitlement must be paid prior to October 31 of the following
school year. The commissioner may make advance payments of debt
service equalization aid or homestead and agricultural credit
aid for a district's debt service fund earlier than would occur
under the preceding schedule if the district submits evidence
showing a serious cash flow problem in the fund. The
commissioner may make earlier payments during the year and, if
necessary, increase the percent of the entitlement paid to
reduce the cash flow problem.
Sec. 6. Minnesota Statutes 2000, section 127A.45,
subdivision 13, is amended to read:
Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in
subdivisions 11, 12, 12a, and 14, each fiscal year, all
education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and
section 273.1392, shall be paid at 90 83 percent of the
estimated entitlement during the fiscal year of the
entitlement. For the purposes of this subdivision, a district's
estimated entitlement for special education excess cost aid
under section 125A.79 equals 70 percent of the district's
entitlement for the second prior fiscal year. The final
adjustment payment, according to subdivision 9, must be the
amount of the actual entitlement, after adjustment for actual
data, minus the payments made during the fiscal year of the
entitlement.
Sec. 7. Minnesota Statutes 2000, section 127A.45,
subdivision 14, is amended to read:
Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid
according to sections 123B.40 to 123B.48 for pupils attending
nonpublic schools as follows:
(1) an advance payment by November 30 equal to 90 83
percent of the estimated entitlement for the current fiscal
year; and
(2) a final payment by October 31 of the following fiscal
year, adjusted for actual data.
If a payment advance to meet cash flow needs is requested
by a district and approved by the commissioner, the state shall
pay nonpublic pupil transportation aid according to section
123B.92 by October 31.
Sec. 8. Minnesota Statutes 2001 Supplement, section
127A.45, subdivision 14a, is amended to read:
Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding
subdivision 3, the state shall pay 100 percent of the aid for
the current year according to sections 124D.111, 124D.115, and
124D.118 and 90 83 percent of the aid for the current year
according to section 124D.1156 based on submitted monthly
vouchers showing meals and milk served. The remaining ten 17
percent according to section 124D.1156 shall be paid by October
30 of the following fiscal year.
Sec. 9. Minnesota Statutes 2000, section 127A.45,
subdivision 16, is amended to read:
Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding
subdivision 3, 90 83 percent of the amounts under section
123A.26, subdivision 3, shall be paid in equal installments on
August 30, December 30, and March 30, with a ten 17 percent
final adjustment payment on October 30 of the next fiscal year.
Sec. 10. [APPROPRIATION, ADVANCE FINAL PAYMENT.]
$17,500,000 is appropriated from the general fund to the
commissioner of children, families, and learning to make advance
final payments to school districts and charter schools under
section 4.
ARTICLE 2
EARLY CHILDHOOD AND FAMILY EDUCATION
Section 1. Laws 2001, First Special Session chapter 3,
article 1, section 17, subdivision 2, is amended to read:
Subd. 2. [SCHOOL READINESS PROGRAM REVENUE.] For revenue
for school readiness programs according to Minnesota Statutes,
sections 124D.15 and 124D.16:
$10,395,000 ..... 2002
$10,395,000 $9,667,000 ..... 2003
The 2002 appropriation includes $1,039,000 for 2001 and
$9,356,000 for 2002.
The 2003 appropriation includes $1,039,000 for 2002 and
$9,356,000 $8,628,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 2. Laws 2001, First Special Session chapter 3,
article 1, section 17, subdivision 3, as amended by Laws 2002,
chapter 220, article 2, section 2, is amended to read:
Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early
childhood family education aid according to Minnesota Statutes,
section 124D.135:
$20,725,000 $20,746,000 ..... 2002
$20,624,000 $19,184,000 ..... 2003
The 2002 appropriation includes $2,036,000 for 2001 and
$18,689,000 $18,710,000 for 2002.
The 2003 appropriation includes $2,076,000 $2,079,000 for
2002 and $18,548,000 $17,105,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 3. Laws 2001, First Special Session chapter 3,
article 1, section 17, subdivision 4, is amended to read:
Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For
health and developmental screening aid according to Minnesota
Statutes, sections 121A.17 and 121A.19:
$2,661,000 ..... 2002
$2,661,000 $2,475,000 ..... 2003
The 2002 appropriation includes $266,000 for 2001 and
$2,395,000 for 2002.
The 2003 appropriation includes $266,000 for 2002 and
$2,395,000 $2,209,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 4. Laws 2001, First Special Session chapter 3,
article 1, section 17, subdivision 7, as amended by Laws 2002,
chapter 220, article 2, section 3, is amended to read:
Subd. 7. [SCHOOL AGE CARE AID.] For school age care aid
according to Minnesota Statutes, section 124D.22:
$221,000 ..... 2002
$100,000 $94,000 ..... 2003
The 2002 appropriation includes $30,000 for 2001 and
$191,000 for 2002.
The 2003 appropriation includes $21,000 for 2002 and
$79,000 $73,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 5. Laws 2001, First Special Session chapter 3,
article 1, section 17, subdivision 9, as amended by Laws 2002,
chapter 220, article 2, section 5, is amended to read:
Subd. 9. [MFIP CHILD CARE.] For child care assistance
according to Minnesota Statutes, section 119B.05:
$69,201,000 $59,956,000 ..... 2002
$77,122,000 $68,182,000 ..... 2003
Any balance in the first year does not cancel but is
available in the second year.
Sec. 6. Laws 2001, First Special Session chapter 3,
article 1, section 19, subdivision 3, as amended by Laws 2002,
chapter 220, article 2, section 8, is amended to read:
Subd. 3. [TRANSITION YEAR FAMILIES.] To provide
uninterrupted assistance under Minnesota Statutes, section
119B.03, for families completing transition year child care
assistance:
$1,404,000 $1,695,000 ..... 2002
$1,357,000 $1,014,000 ..... 2003
Any unspent balance from the appropriations for 2002 and
2003 is returned to the TANF reserve. TANF dollars appropriated
for this purpose in 2001 which are not encumbered by January 1,
2002, are returned to the TANF reserve.
Sec. 7. Laws 2001, First Special Session chapter 3,
article 1, section 19, subdivision 5, as amended by Laws 2002,
chapter 220, article 2, section 9, is amended to read:
Subd. 5. [MFIP SOCIAL SERVICES CHILD CARE.] For social
services child care costs of eligible MFIP participants under
Minnesota Statutes, section 119B.05, subdivision 1, clause (5):
$973,000 $775,000 ..... 2002
$997,000 $801,000 ..... 2003
Any unspent balance from the appropriations for 2002 and
2003 is returned to the TANF reserve. TANF dollars appropriated
for this purpose in 2001 which are not encumbered by January 1,
2002, are returned to the TANF reserve.
Sec. 8. Laws 2001, First Special Session chapter 3,
article 2, section 15, subdivision 3, as amended by Laws 2002,
chapter 220, article 2, section 10, is amended to read:
Subd. 3. [COMMUNITY EDUCATION AID.] For community
education aid according to Minnesota Statutes, section 124D.20:
$14,190,000 $14,194,000 ..... 2002
$ 8,186,000 $ 7,664,000 ..... 2003
The 2002 appropriation includes $1,528,000 for 2001 and
$12,662,000 $12,666,000 for 2002.
The 2003 appropriation includes $1,406,000 $1,407,000 for
2002 and $6,780,000 $6,257,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 9. Laws 2001, First Special Session chapter 3,
article 2, section 15, subdivision 4, is amended to read:
Subd. 4. [ADULTS WITH DISABILITIES PROGRAM AID.] For
adults with disabilities programs according to Minnesota
Statutes, section 124D.56:
$639,000 ..... 2002
$710,000 $661,000 ..... 2003
The 2002 appropriation includes $0 for 2001 and $639,000
for 2002.
The 2003 appropriation includes $71,000 for 2002 and
$639,000 $590,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 10. Laws 2001, First Special Session chapter 3,
article 2, section 15, subdivision 6, is amended to read:
Subd. 6. [VIOLENCE PREVENTION EDUCATION GRANTS.] For
violence prevention education grants according to Minnesota
Statutes, section 120B.23:
$1,305,000 ..... 2002
$1,450,000 $1,349,000 ..... 2003
The 2002 appropriation includes $0 for 2001 and $1,305,000
for 2002.
The 2003 appropriation includes $145,000 for 2002 and
$1,305,000 $1,204,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 11. Laws 2001, First Special Session chapter 3,
article 3, section 9, subdivision 5, is amended to read:
Subd. 5. [ADULT BASIC EDUCATION AID.] For adult basic
education aid according to Minnesota Statutes, section 124D.531:
$32,150,000 ..... 2002
$34,731,000 $32,282,000 ..... 2003
The 2002 appropriation includes $3,019,000 for 2001 and
$29,131,000 for 2002.
The 2003 appropriation includes $3,237,000 for 2002 and
$31,494,000 $29,045,000 for 2003.
Sec. 12. Laws 2001, First Special Session chapter 3,
article 3, section 9, subdivision 7, is amended to read:
Subd. 7. [ADULT GRADUATION AID.] For adult graduation aid
according to Minnesota Statutes, section 124D.54:
$3,195,000 $2,462,000 ..... 2002
$3,356,000 $2,327,000 ..... 2003
The 2002 appropriation includes $305,000 for 2001 and
$2,890,000 $2,157,000 for 2002.
The 2003 appropriation includes $321,000 $240,000 for 2002
and $3,035,000 $2,087,000 for 2003.
Sec. 13. Laws 2001, First Special Session chapter 3,
article 4, section 5, subdivision 2, as amended by Laws 2002,
chapter 220, article 2, section 12, is amended to read:
Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants
according to Minnesota Statutes, sections 134.32 to 134.35:
$8,570,000 ..... 2002
$8,570,000 $7,971,000 ..... 2003
The 2002 appropriation includes $857,000 for 2001 and
$7,713,000 for 2002.
The 2003 appropriation includes $857,000 for 2002 and
$7,713,000 $7,114,000 for 2003.
Base level funding for fiscal year 2004 is
$9,823,000 $9,754,000 and $9,822,000 $9,962,000 for fiscal year
2005.
Sec. 14. Laws 2001, First Special Session chapter 3,
article 4, section 5, subdivision 3, is amended to read:
Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For
grants according to Minnesota Statutes, sections 134.353 and
134.354, to multicounty, multitype library systems:
$903,000 ..... 2002
$903,000 $840,000 ..... 2003
The 2002 appropriation includes $90,000 for 2001 and
$813,000 for 2002.
The 2003 appropriation includes $90,000 for 2002 and
$813,000 $750,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 15. Laws 2002, chapter 220, article 2, section 14,
subdivision 1, is amended to read:
Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND
LEARNING.] The sum indicated in this section is appropriated to
the commissioner of children, families, and learning transferred
from the federal Temporary Assistance for Needy Families block
grant to the child care and development fund and appropriated to
the department of children, families, and learning for the
fiscal year designated. This amount is available for
expenditure until June 30, 2003.
Sec. 16. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 3
K-12 EDUCATION APPROPRIATION ADJUSTMENTS
Section 1. Minnesota Statutes 2001 Supplement, section
123B.54, as amended by Laws 2002, chapter 220, article 4,
section 1, is amended to read:
123B.54 [DEBT SERVICE APPROPRIATION.]
(a) $25,987,000 in fiscal year 2002,
$31,892,000 $29,941,000 in fiscal year 2003,
$36,629,000 $40,075,000 in fiscal year 2004, and
$36,931,000 $39,774,000 in fiscal years 2005 and later are
appropriated from the general fund to the commissioner of
children, families, and learning for payment of debt service
equalization aid under section 123B.53.
(b) The appropriations in paragraph (a) must be reduced by
the amount of any money specifically appropriated for the same
purpose in any year from any state fund.
Sec. 2. Laws 2001, First Special Session chapter 5,
article 2, section 29, subdivision 2, as amended by Laws 2002,
chapter 220, article 4, section 2, is amended to read:
Subd. 2. [REFERENDUM TAX BASE REPLACEMENT AID.] For
referendum tax base replacement aid according to Minnesota
Statutes, section 126C.17, subdivision 7a:
$7,616,000 $7,027,000 ..... 2003
The 2003 appropriation includes $0 for 2002 and
$7,616,000 $7,027,000 for 2003.
Sec. 3. Laws 2001, First Special Session chapter 6,
article 1, section 54, subdivision 2, as amended by Laws 2002,
chapter 220, article 3, section 8, is amended to read:
Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] (a) For
general and supplemental education aid:
$3,404,787,000 $3,414,168,000 ..... 2002
$4,982,334,000 $4,616,467,000 ..... 2003
The 2002 appropriation includes $323,767,000 $333,756,000
for 2001 and $3,081,020,000 $3,080,412,000 for 2002.
The 2003 appropriation includes $335,220,000 $335,163,000
for 2002 and $4,647,114,000 $4,281,304,000 for 2003.
(b) The fiscal year 2003 appropriation in paragraph (a) is
reduced by $1,901,000.
Sec. 4. Laws 2001, First Special Session chapter 6,
article 1, section 54, subdivision 4, as amended by Laws 2002,
chapter 220, article 4, section 3, is amended to read:
Subd. 4. [ABATEMENT AID.] For abatement aid according to
Minnesota Statutes, section 127A.49:
$5,698,000 ..... 2002
$2,990,000 $2,870,000 ..... 2003
The 2002 appropriation includes $640,000 for 2001 and
$5,058,000 for 2002.
The 2003 appropriation includes $562,000 for 2002
and $2,428,000 $2,308,000 for 2003.
Sec. 5. Laws 2001, First Special Session chapter 6,
article 1, section 54, subdivision 5, as amended by Laws 2002,
chapter 220, article 4, section 4, is amended to read:
Subd. 5. [NONPUBLIC PUPIL AID.] For nonpublic pupil
education aid according to Minnesota Statutes, sections 123.79
and 123B.40 to 123B.43:
$14,441,000 $14,254,000 ..... 2002
$15,977,000 $14,259,000 ..... 2003
The 2002 appropriation includes $1,330,000 for 2001 and
$13,111,000 $12,924,000 for 2002.
The 2003 appropriation includes $1,457,000 $1,436,000 for
2002 and $14,520,000 $12,823,000 for 2003.
Sec. 6. Laws 2001, First Special Session chapter 6,
article 1, section 54, subdivision 6, as amended by Laws 2002,
chapter 220, article 4, section 5, is amended to read:
Subd. 6. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic
pupil transportation aid under Minnesota Statutes, section
123B.92, subdivision 9:
$20,635,000 $20,634,000 ..... 2002
$25,347,000 $22,236,000 ..... 2003
The 2002 appropriation includes $2,000,000 for 2001 and
$18,635,000 $18,634,000 for 2002.
The 2003 appropriation includes $2,070,000 $2,071,000 for
2002 and $23,277,000 $20,165,000 for 2003.
Sec. 7. Laws 2001, First Special Session chapter 6,
article 1, section 54, subdivision 7, as amended by Laws 2002,
chapter 220, article 4, section 6, is amended to read:
Subd. 7. [CONSOLIDATION TRANSITION AID.] For districts
consolidating under Minnesota Statutes, section 123A.485:
$531,000 $539,000 ..... 2002
$736,000 $225,000 ..... 2003
The 2002 appropriation includes $44,000 for 2001 and
$487,000 $495,000 for 2002.
The 2003 appropriation includes $54,000 for 2002
and $682,000 $171,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 8. Laws 2001, First Special Session chapter 6,
article 2, section 77, subdivision 4, as amended by Laws 2002,
chapter 220, article 4, section 7, is amended to read:
Subd. 4. [CHARTER SCHOOL BUILDING LEASE AID.] For building
lease aid under Minnesota Statutes, section 124D.11, subdivision
4:
$12,323,000 $12,286,000 ..... 2002
$15,330,000 $14,394,000 ..... 2003
The 2002 appropriation includes $1,114,000 for 2001 and
$11,209,000 $11,172,000 for 2002.
The 2003 appropriation includes $1,245,000 $1,241,000 for
2002 and $14,085,000 $13,153,000 for 2003.
Sec. 9. Laws 2001, First Special Session chapter 6,
article 2, section 77, subdivision 5, as amended by Laws 2002,
chapter 220, article 4, section 8, is amended to read:
Subd. 5. [CHARTER SCHOOL STARTUP GRANTS.] For charter
school startup cost aid under Minnesota Statutes, section
124D.11:
$2,090,000 $2,064,000 ..... 2002
$1,549,000 $1,456,000 ..... 2003
The 2002 appropriation includes $258,000 for 2001
and $1,832,000 $1,806,000 for 2002.
The 2003 appropriation includes $204,000 $200,000 for 2002
and $1,345,000 $1,256,000 for 2003.
Sec. 10. Laws 2001, First Special Session chapter 6,
article 2, section 77, subdivision 6, is amended to read:
Subd. 6. [CHARTER SCHOOL INTEGRATION AID.] For grants to
charter schools to promote integration and desegregation under
Minnesota Statutes, section 124D.11, subdivision 6, paragraph
(e):
$45,000 ..... 2002
$50,000 $47,000 ..... 2003
The 2002 appropriation includes $0 for 2001 and $45,000 for
2002.
The 2003 appropriation includes $5,000 for 2002 and
$45,000 $42,000 for 2003.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 11. Laws 2001, First Special Session chapter 6,
article 2, section 77, subdivision 8, as amended by Laws 2002,
chapter 220, article 4, section 9, is amended to read:
Subd. 8. [INTEGRATION AID.] For integration aid:
$63,421,000 $63,311,000 ..... 2002
$53,890,000 $50,418,000 ..... 2003
The 2002 appropriation includes $5,729,000 for 2001 and
$57,692,000 $57,582,000 for 2002.
The 2003 appropriation includes $6,410,000 $6,398,000 for
2002 and $47,480,000 $44,020,000 for 2003.
Sec. 12. Laws 2001, First Special Session chapter 6,
article 2, section 77, subdivision 11, as amended by Laws 2002,
chapter 220, article 4, section 10, is amended to read:
Subd. 11. [MAGNET SCHOOL STARTUP AID.] For magnet school
startup aid under Minnesota Statutes, section 124D.88:
$475,000 $448,000 ..... 2002
$298,000 $326,000 ..... 2003
The 2002 appropriation includes $25,000 for 2001 and
$450,000 $423,000 for 2002.
The 2003 appropriation includes $50,000 $47,000 for 2002
and $248,000 $279,000 for 2003.
Sec. 13. Laws 2001, First Special Session chapter 6,
article 2, section 77, subdivision 15, as amended by Laws 2002,
chapter 220, article 4, section 11, is amended to read:
Subd. 15. [SUCCESS FOR THE FUTURE.] For American Indian
success for the future grants according to Minnesota Statutes,
section 124D.81:
$1,924,000 ..... 2002
$2,137,000 $1,987,000 ..... 2003
The 2002 appropriation includes $0 for 2001 and $1,924,000
for 2002.
The 2003 appropriation includes $213,000 for 2002
and $1,924,000 $1,774,000 for 2003.
Sec. 14. Laws 2001, First Special Session chapter 6,
article 2, section 77, subdivision 18, as amended by Laws 2002,
chapter 220, article 4, section 12, is amended to read:
Subd. 18. [TRIBAL CONTRACT SCHOOLS.] For tribal contract
school aid under Minnesota Statutes, section 124D.83:
$2,304,000 $2,147,000 ..... 2002
$2,408,000 $2,221,000 ..... 2003
The 2002 appropriation includes $192,000 for 2001 and
$2,112,000 $1,955,000 for 2002.
The 2003 appropriation includes $235,000 $217,000 for 2002
and $2,173,000 $2,004,000 for 2003.
Sec. 15. Laws 2001, First Special Session chapter 6,
article 3, section 21, subdivision 2, as amended by Laws 2002,
chapter 220, article 4, section 13, is amended to read:
Subd. 2. [SPECIAL EDUCATION AID.] For special education
aid according to Minnesota Statutes, section 125A.75:
$507,841,000 $507,928,000 ..... 2002
$532,282,000 $495,032,000 ..... 2003
The 2002 appropriation includes $47,400,000 for 2001 and
$460,441,000 $460,528,000 for 2002.
The 2003 appropriation includes $51,160,000 $51,170,000 for
2002 and $481,122,000 $443,862,000 for 2003.
Sec. 16. Laws 2001, First Special Session chapter 6,
article 3, section 21, subdivision 3, as amended by Laws 2002,
chapter 220, article 4, section 14, is amended to read:
Subd. 3. [AID FOR CHILDREN WITH A DISABILITY.] For aid
according to Minnesota Statutes, section 125A.75, subdivision 3,
for children with a disability placed in residential facilities
within the district boundaries for whom no district of residence
can be determined:
$1,358,000 $1,346,000 ..... 2002
$3,161,000 $2,363,000 ..... 2003
If the appropriation for either year is insufficient, the
appropriation for the other year is available.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 17. Laws 2001, First Special Session chapter 6,
article 3, section 21, subdivision 4, as amended by Laws 2002,
chapter 220, article 4, section 15, is amended to read:
Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for
teacher travel for home-based services according to Minnesota
Statutes, section 125A.75, subdivision 1:
$143,000 $139,000 ..... 2002
$148,000 $134,000 ..... 2003
The 2002 appropriation includes $14,000 $13,000 for 2001
and $129,000 $126,000 for 2002.
The 2003 appropriation includes $15,000 $14,000 for 2002
and $133,000 $120,000 for 2003.
Sec. 18. Laws 2001, First Special Session chapter 6,
article 3, section 21, subdivision 5, as amended by Laws 2002,
chapter 220, article 4, section 16, is amended to read:
Subd. 5. [SPECIAL EDUCATION EXCESS COST AID.] For excess
cost aid:
$103,061,000 $92,622,000 ..... 2002
$105,289,000 $60,372,000 ..... 2003
The 2002 appropriation includes $9,889,000 for 2001 and
$93,172,000 $82,733,000 for 2002.
The 2003 appropriation includes $10,352,000 $9,192,000 for
2002 and $94,937,000 $51,180,000 for 2003.
Sec. 19. Laws 2001, First Special Session chapter 6,
article 3, section 21, subdivision 7, as amended by Laws 2002,
chapter 220, article 4, section 17, is amended to read:
Subd. 7. [TRANSITION PROGRAMS; STUDENTS WITH
DISABILITIES.] For aid for transition programs for pupils with
disabilities according to Minnesota Statutes, section 124D.454:
$8,960,000 $8,962,000 ..... 2002
$8,952,000 $8,328,000 ..... 2003
The 2002 appropriation includes $896,000 for 2001 and
$8,064,000 $8,066,000 for 2002.
The 2003 appropriation includes $896,000 for 2002
and $8,056,000 $7,432,000 for 2003.
Sec. 20. Laws 2001, First Special Session chapter 6,
article 4, section 27, subdivision 2, as amended by Laws 2002,
chapter 220, article 4, section 18, is amended to read:
Subd. 2. [HEALTH AND SAFETY AID.] For health and safety
aid according to Minnesota Statutes, section 123B.57,
subdivision 5:
$13,630,000 $12,280,000 ..... 2002
$10,800,000 $ 9,085,000 ..... 2003
The 2002 appropriation includes $1,480,000 for 2001 and
$12,150,000 $10,800,000 for 2002.
The 2003 appropriation includes $1,350,000 $1,200,000 for
2002 and $9,450,000 $7,885,000 for 2003.
Sec. 21. Laws 2001, First Special Session chapter 6,
article 4, section 27, subdivision 3, as amended by Laws 2002,
chapter 220, article 4, section 19, is amended to read:
Subd. 3. [DEBT SERVICE AID.] For debt service aid
according to Minnesota Statutes, section 123B.53, subdivision 6:
$25,987,000 ..... 2002
$31,892,000 $29,941,000 ..... 2003
The 2002 appropriation includes $2,890,000 for 2001 and
$23,097,000 for 2002.
The 2003 appropriation includes $2,566,000 for 2002
and $29,326,000 $27,375,000 for 2003.
Sec. 22. Laws 2001, First Special Session chapter 6,
article 4, section 27, subdivision 5, as amended by Laws 2002,
chapter 220, article 4, section 20, is amended to read:
Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For
alternative facilities bonding aid, according to Minnesota
Statutes, section 123B.59, subdivision 1:
$19,280,000 ..... 2002
$19,287,000 $17,937,000 ..... 2003
The 2002 appropriation includes $1,921,000 for 2001 and
$17,359,000 for 2002.
The 2003 appropriation includes $1,928,000 for 2002
and $17,359,000 $16,009,000 for 2003.
Sec. 23. Laws 2001, First Special Session chapter 6,
article 5, section 13, subdivision 3, is amended to read:
Subd. 3. [SCHOOL BREAKFAST.] For school breakfast aid
under Minnesota Statutes, section 124D.115:
$640,000 ..... 2002
$700,000 $680,000 ..... 2003
Sec. 24. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 4
K-12 EDUCATION
Section 1. Minnesota Statutes 2000, section 124D.69, is
amended by adding a subdivision to read:
Subd. 3. [UNCOMMON SCHOOLS SERVING STUDENTS WITH CHEMICAL
DEPENDENCIES; ALLOCATION OF FUNDS.] In addition to the amounts
provided in section 124D.68, subdivision 9, a school district
may allocate funds from its undesignated general fund to a
private contracted alternative program, including a private
contracted alternative program that is tuition free and provides
a comprehensive secondary academic program for students who have
been assessed chemically dependent and who have completed a
licensed treatment program for chemical dependency.
Sec. 2. Minnesota Statutes 2000, section 125A.65,
subdivision 1, is amended to read:
Subdivision 1. [RESPONSIBILITY ALLOCATED.] Responsibility
for special instruction and services for a visually
disabled blind/visually impaired or hearing impaired deaf/hard
of hearing child attending the Minnesota state academy for the
deaf or the Minnesota state academy for the blind must be
determined in subdivisions 2 to 10.
Sec. 3. Minnesota Statutes 2000, section 125A.65,
subdivision 3, is amended to read:
Subd. 3. [EDUCATIONAL PROGRAM; TUITION.] When it is
determined pursuant to section 125A.69, subdivision 1 or 2, that
the child is entitled to attend either school, the board of the
Minnesota state academies must provide the appropriate
educational program for the child. The board of the Minnesota
state academies must make a tuition charge to the child's
district of residence for the cost of providing the program.
The amount of tuition charged must not exceed the basic revenue
of the district general education revenue formula allowance
times the pupil unit weighting factor pursuant to section
126C.05 for that child, for the amount of time the child is in
the program. For purposes of this subdivision, "basic revenue"
has the meaning given it in section 126C.10, subdivision 2. The
district of the child's residence must pay the tuition and may
claim general education aid for the child. Tuition received by
the board of the Minnesota state academies, except for tuition
received under subdivision 4, must be deposited in the state
treasury as provided in subdivision 8.
Sec. 4. Minnesota Statutes 2000, section 125A.65,
subdivision 8, is amended to read:
Subd. 8. [STUDENT COUNT; TUITION.] (a) On May 1 of each
year, 1996, and each year thereafter, the board of the Minnesota
state academies shall count the actual number of Minnesota
resident kindergarten and elementary students and the actual
number of Minnesota resident secondary special education
eligible students enrolled and receiving education services at
the Minnesota state academy for the deaf and the Minnesota state
academy for the blind. The board of the Minnesota state
academies shall deposit in the state treasury an amount equal to
all tuition received less: the amount calculated in paragraph
(b).
(1) the total number of students on May 1 less 175, times
the ratio of the number of kindergarten and elementary students
to the total number of students on May 1, times the general
education formula allowance; plus
(2) the total number of students on May 1 less 175, times
the ratio of the number of secondary students on May 1 to the
total number of students on May 1, times 1.3, times the general
education formula allowance.
(b) The Minnesota state academies shall credit to their
general operation account an amount equal to the tuition
received which represents tuition earned for the total number of
students over 175 based on:
(1) the total number of enrolled students on May 1 less
175; times
(2) the ratio of the number of students in that grade
category to the total number of students on May 1; times
(3) the general education revenue formula allowance; times
(4) the pupil unit weighting factor pursuant to section
126C.05.
Sec. 5. Minnesota Statutes 2000, section 125A.65,
subdivision 9, is amended to read:
Subd. 9. [CALCULATION.] The sum provided by the
calculation in subdivision 8, clauses (1) and (2), must be
deposited in the state treasury and credited to the general
operation account of the academy for the deaf and the academy
for the blind Minnesota state academy for the deaf and the
Minnesota state academy for the blind.
Sec. 6. Minnesota Statutes 2001 Supplement, section
126C.10, subdivision 13, is amended to read:
Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For
fiscal year 2000 and thereafter, total operating capital revenue
for a district equals the amount determined under paragraph (b)
or (c), plus $73 times the adjusted marginal cost pupil units
for the school year. The revenue must be placed in a reserved
account in the general fund and may only be used according to
paragraph (d) or subdivision 14.
(b) For fiscal years 2000 and later, capital revenue for a
district equals $100 times the district's maintenance cost index
times its adjusted marginal cost pupil units for the school year.
(c) For fiscal years 2000 and later, the revenue for a
district that operates a program under section 124D.128, is
increased by an amount equal to $30 times the number of marginal
cost pupil units served at the site where the program is
implemented.
(d) For fiscal years 2001 and, 2002, and 2003, the district
must reserve an amount equal to $5 per adjusted marginal cost
pupil unit for telecommunication access costs. Reserve revenue
under this paragraph must first be used to pay for ongoing or
recurring telecommunication access costs, including access to
data and video connections, including Internet access. Any
revenue remaining after covering all ongoing or recurring access
costs may be used for computer hardware or equipment.
Sec. 7. Minnesota Statutes 2001 Supplement, section
126C.17, subdivision 7, is amended to read:
Subd. 7. [REFERENDUM EQUALIZATION AID.] (a) A district's
referendum equalization aid equals the difference between its
referendum equalization revenue and levy.
(b) If a district's actual levy for first or second tier
referendum equalization revenue is less than its maximum levy
limit for that tier, aid shall be proportionately reduced.
(c) Notwithstanding paragraph (a), the referendum
equalization aid for a district, where the referendum
equalization aid under paragraph (a) exceeds 90 percent of the
referendum revenue, must not exceed 18.2 percent of the formula
allowance times the district's resident marginal cost pupil
units. A district's referendum levy is increased by the amount
of any reduction in referendum aid under this paragraph.
[EFFECTIVE DATE.] This section is effective for operating
referendum elections January 1, 2002, and later.
Sec. 8. Laws 2001, First Special Session chapter 6,
article 7, section 14, as amended by Laws 2002, chapter 220,
article 3, section 16, is amended to read:
Sec. 14. [APPROPRIATIONS; PERPICH CENTER FOR ARTS
EDUCATION.]
The sums indicated in this section are appropriated from
the general fund to the Perpich Center for Arts Education for
the fiscal years designated:
$7,431,000 $7,681,000 ..... 2002
$7,316,000 $7,816,000 ..... 2003
$150,000 each year is to extend the partnership network to
up to five new partnership sites and for developing
whole-school, arts-based teaching and learning curriculum at new
sites.
Any balance in the first year does not cancel but is
available in the second year.
Sec. 9. [REFERENDUM TRANSFER ADJUSTMENT.]
Notwithstanding Minnesota Statutes, section 126C.17,
subdivision 1, paragraph (b), for fiscal year 2003 and later,
the initial referendum allowance for independent school district
No. 709, Duluth, equals the sum of the allowance under Minnesota
Statutes, section 126C.16, subdivision 2, plus the referendum
conversion allowance approved under Minnesota Statutes, section
126C.17, subdivision 13, minus $373. If the district has more
than one referendum authority, the reduction must be computed
separately for each authority. The reduction must be applied
first to the referendum authority with the earliest expiration
date. The district's initial referendum allowance may not be
less than zero.
Sec. 10. [DECLINING PUPIL UNIT AID; ALBERT LEA.]
Subdivision 1. [FISCAL YEAR 2003.] For fiscal year 2003,
independent school district No. 241, Albert Lea, is eligible for
declining enrollment aid equal to $300,000.
Subd. 2. [FISCAL YEAR 2004.] For fiscal year 2004,
independent school district No. 241, Albert Lea, is eligible for
declining enrollment aid equal to 75 percent of the fiscal year
2003 appropriation in subdivision 1.
Subd. 3. [FISCAL YEAR 2005.] For fiscal year 2005,
independent school district No. 241, Albert Lea, is eligible for
declining enrollment aid equal to 50 percent of the fiscal year
2003 appropriation in subdivision 1.
Subd. 4. [FISCAL YEAR 2006.] For fiscal year 2006,
independent school district No. 241, Albert Lea, is eligible for
declining enrollment aid equal to 25 percent of the fiscal year
2003 appropriation in subdivision 1.
Sec. 11. [DECLINING ENROLLMENT; LTV DISLOCATION.]
Subdivision 1. [FISCAL YEAR 2003.] For fiscal year 2003,
independent school district No. 2711, Mesabi East, is eligible
for declining enrollment aid equal to $200,000.
Subd. 2. [FISCAL YEAR 2004.] For fiscal year 2004,
independent school district No. 2711, Mesabi East, is eligible
for declining enrollment aid equal to 75 percent of the amount
that the district received in the fiscal year 2003 appropriation
in subdivision 1.
Subd. 3. [FISCAL YEAR 2005.] For fiscal year 2005,
independent school district No. 2711, Mesabi East, is eligible
for declining enrollment aid equal to 50 percent of the amount
that the district received in the fiscal year 2003 appropriation
in subdivision 1.
Subd. 4. [FISCAL YEAR 2006.] For fiscal year 2006,
independent school district No. 2711, Mesabi East, is eligible
for declining enrollment aid equal to 25 percent of the amount
that the district received in the fiscal year 2003 appropriation
in subdivision 1.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 12. [FUND TRANSFER; BUTTERFIELD.]
Notwithstanding Minnesota Statutes, section 123B.79 or
123B.80, on June 30, 2002, independent school district No. 836,
Butterfield, may permanently transfer up to $117,000 from its
reserves for operating capital account in its general fund to
the undesignated fund balance.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 13. [FUND TRANSFER; TRUMAN.]
Notwithstanding Minnesota Statutes, section 123B.79 or
123B.80, on June 30, 2002, independent school district No. 458,
Truman, may permanently transfer up to $500,000 from its
reserves for operating capital account in its general fund to
the undesignated fund balance.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 14. [APPROPRIATION.]
(a) $300,000 in fiscal year 2003 is appropriated from the
general fund to the commissioner of children, families, and
learning for declining pupil unit aid to independent school
district No. 241, Albert Lea.
(b) In addition to the amounts appropriated for general and
supplemental education aid, $295,000 in fiscal year 2003 is
appropriated from the general fund to the commissioner of
children, families, and learning for the aid portion of the
referendum transfer adjustment for independent school district
No. 709, Duluth.
(c) $200,000 in fiscal year 2003 is appropriated from the
general fund to the commissioner of children, families, and
learning for declining pupil unit aid to independent school
district No. 2711, Mesabi East.
Sec. 15. [EFFECTIVE DATE.]
Except as otherwise provided in this article, this article
is effective the day following final enactment.
ARTICLE 5
HIGHER EDUCATION
Section 1. Minnesota Statutes 2000, section 136A.121,
subdivision 7, is amended to read:
Subd. 7. [INSUFFICIENT APPROPRIATION.] If the amount
appropriated is determined by the office to be insufficient to
make full awards to applicants under subdivision 5, before any
award for that year has been disbursed, awards must be reduced
by
(1) adding a surcharge to the contribution of the
applicant's parents, and assigned family responsibility, as
defined in section 136A.101, subdivision 5a; and
(2) a percentage increase in the applicant's contribution
assigned student responsibility, as defined in subdivision 5.
Sec. 2. [STATE GRANT APPROPRIATION.]
$5,000,000 is appropriated from the general fund to the
higher education services office to make state grants. This
appropriation is added to the appropriation in Laws 2001, First
Special Session chapter 1, article 1, section 2, subdivision 2,
for fiscal year 2002.
The higher education services office, by July 1, 2002, must
make a determination of the projected sufficiency or deficiency
in state money available for the state grant program to make
full state grant awards through fiscal year 2003. If it is
determined that a deficiency is projected, then, notwithstanding
Minnesota Statutes, section 136A.121, subdivision 7, the higher
education services office shall immediately transfer to the
state grant appropriation from the work study appropriation and
notwithstanding Minnesota Statutes, section 136A.125,
subdivision 4c, from the child care grant appropriation in Laws
2001, First Special Session chapter 1, article 1, section 2, the
amount necessary to make full state grant awards in fiscal year
2003. If state money available for the state grant program
continues to be insufficient to make full state grant awards
after the initial transfers, subsequent transfers must be made
before any reduction in state grant awards under Minnesota
Statutes, section 136A.121, subdivision 7, is made.
Sec. 3. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 6
ENVIRONMENT AND NATURAL RESOURCES
Section 1. [SCORE BLOCK GRANT APPROPRIATION SHIFT.]
$9,000,000 of the appropriation in Laws 2001, First Special
Session chapter 2, section 3, from the general fund to the
office of environmental assistance for SCORE block grants to
counties in fiscal year 2003 is canceled. This is a onetime
reduction and the same amount must be restored to the general
fund budget base for fiscal year 2004.
$9,000,000 is appropriated from the solid waste fund to the
office of environmental assistance for SCORE block grants to
counties in fiscal year 2003. This is a onetime appropriation.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 2. Minnesota Statutes 2000, section 115A.557,
subdivision 1, is amended to read:
Subdivision 1. [DISTRIBUTION; FORMULA.] Any funds
appropriated to the director for the purpose of distribution to
counties under this section must be distributed each fiscal year
by the director based on population, except a county may not
receive less than $55,000 in a fiscal year. If the amount
available for distribution under this section is less than the
amount available in fiscal year 2001, the minimum county payment
under this section is reduced proportionately. For purposes of
this subdivision, "population" has the definition given in
section 477A.011, subdivision 3. A county that participates in
a multicounty district that manages solid waste and that has
responsibility for recycling programs as authorized in section
115A.552, must pass through to the districts funds received by
the county in excess of the $55,000 annual base minimum county
payment under this section in proportion to the population of
the county served by that district.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 3. Minnesota Statutes 2000, section 115A.96,
subdivision 2, is amended to read:
Subd. 2. [MANAGEMENT PROGRAM.] The agency office shall
establish a statewide program to manage household hazardous
wastes. The program must include:
(1) the establishment and operation of collection sites;
and
(2) the provision of information, education, and technical
assistance regarding proper management of household hazardous
wastes.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 4. Minnesota Statutes 2000, section 115A.96,
subdivision 3, is amended to read:
Subd. 3. [OTHER PARTICIPANTS.] (a) The agency office may
establish or operate all or part of the management program or
may provide for services by contract or other agreement with
public or private entities.
(b) The agency office shall allow these programs to accept
up to 100 pounds of waste per year from a hazardous waste
generator that generates 220 pounds or less of hazardous waste
per month.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 5. Minnesota Statutes 2000, section 115A.96,
subdivision 4, is amended to read:
Subd. 4. [MANAGEMENT.] Any person who establishes or
operates all or part of a household hazardous waste management
program shall manage collected waste in compliance with
standards applicable to a hazardous waste generator. If
collected waste must be stored for a time exceeding those
standards, the agency office or other entity shall obtain the
approval of the commissioner of the agency and shall manage the
waste in compliance with applicable standards for the use and
management of containers, but no facility permit is required.
Waste accepted under subdivision 3, paragraph (b), must be
managed in accordance with standards applicable to the waste.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 6. Minnesota Statutes 2000, section 115A.96,
subdivision 5, is amended to read:
Subd. 5. [OTHER PROGRAMS.] A person must notify the
commissioner of the agency and director of the office before
establishing and operating any part of a household hazardous
waste management program.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 7. Minnesota Statutes 2000, section 115A.96,
subdivision 7, as added by Laws 2002, chapter 265, section 2, is
amended to read:
Subd. 7. [INDEMNIFICATION; MUNICIPALITIES.] (a) A
municipality, when operating or participating in a household
hazardous waste management program pursuant to a contract with
the agency office under this section or other law, is an
employee of the state, certified to be acting within the scope
of employment, for purposes of the indemnification provisions of
section 3.736, subdivision 9, for claims that arise out of the
transportation, management, or disposal of any waste covered by
the contract:
(1) from and after the time the waste permanently leaves
the municipality's possession and comes into the possession of
the agency's office's authorized transporter; and
(2) during the time the waste is transported between the
municipality's facilities by the agency's office's authorized
transporter.
(b) The state is not obligated to defend or indemnify a
municipality under this subdivision to the extent of the
municipality's liability insurance. The municipality's right to
indemnity is not a waiver of the limitations, defenses, and
immunities available to either the municipality or the state by
law.
[EFFECTIVE DATE.] This section is effective July 1, 2003.
Sec. 8. Laws 2002, chapter 220, article 8, section 15, is
amended to read:
Sec. 15. [INCREASE TO WATER QUALITY PERMIT FEES.]
(a) The pollution control agency shall collect water
quality permit application and annual fees that reflect the fees
in Minnesota Rules, part 7002.0310, increased to the amounts
described in paragraphs (b) to (g).
(b) The application fee for individual permits, general
permits, and general industrial stormwater permits is $240.
(c) The annual fees for individual National Pollutant
Discharge Elimination System permits for major municipal
facilities are as follows:
Design Flow in
Million Gallons Per Day Annual Fee
50 and over $175,750 $175,500
20 to 49.99 $40,350
5 to 19.99 $14,350
Up to 4.99 $5,900
(d) The annual fees for individual National Pollutant
Discharge Elimination System permits for major nonmunicipal
facilities are as follows:
Design Flow in
Million Gallons Per Day Annual Fee
20 to 49.99 $44,200
5 to 19.99 $18,250
Up to 4.99 $8,450
Cooling or mine pit
dewatering (any flow) $16,900
(e) The annual fees for individual National Pollutant
Discharge Elimination System and State Disposal System permits
for nonmajor municipal facilities with design flows greater than
0.100 million gallons per day are $1,450.
(f) The annual fees for general industrial stormwater
permits are $280.
(g) The annual fees for general National Pollutant
Discharge Elimination System and State Disposal System permits
are $345.
(h) The application and annual fees are not increased for
general construction stormwater permits and sanitary sewer
extension permits. The annual fees are not increased for
National Pollutant Discharge Elimination System and State
Disposal System permits regulating municipal nonmajors with
facility design flow of 0 to .100, sewage sludge landspreading
facilities, and nonmajor nonmunicipal facilities.
(i) The increased permit fees are effective July 1, 2002.
The agency shall adopt amended water quality permit fee rules
incorporating the permit fee increases in this subdivision under
Minnesota Statutes, section 14.389. The pollution control
agency shall begin collecting the increased permit fees on July
1, 2002, even if the rule adoption process has not been
initiated or completed. Notwithstanding Minnesota Statutes,
section 14.18, subdivision 2, the increased permit fees
reflecting the permit fee increases in this section and the rule
amendments incorporating those permit fee increases do not
require further legislative approval.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 9. [HOUSEHOLD HAZARDOUS WASTE PROGRAM TRANSFER.]
Responsibility for the household hazardous waste program is
transferred under Minnesota Statutes, section 15.039, from the
pollution control agency to the office of environmental
assistance on July 1, 2003. The amount of base funding to be
transferred is $1,041,000 from the solid waste fund.
Sec. 10. [DIRECTOR OF THE OFFICE OF ENVIRONMENTAL
ASSISTANCE; APPOINTING AUTHORITY.]
The governor is encouraged to evaluate the advantages and
disadvantages associated with making the governor the appointing
authority for the director of environmental assistance, instead
of the commissioner of the pollution control agency as required
by Minnesota Statutes, section 115A.055, subdivision 1.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
ARTICLE 7
STATE GOVERNMENT
Section 1. [STATE GOVERNMENT APPROPRIATIONS.]
The dollar amounts in the columns under "APPROPRIATIONS"
are added to or, if shown in parentheses, are subtracted from
the appropriations in Laws 2001, First Special Session chapter
10, or other law to the specified agencies. The appropriations
are from the general fund or other named fund and are available
for the fiscal years indicated for each purpose. The figure
"2002" or "2003" means that the addition to or subtraction from
the appropriations listed under the figure are for the fiscal
year ending June 30, 2002, or June 30, 2003, respectively.
SUMMARY BY FUND
2002 2003 TOTAL
APPROPRIATIONS
General $ (2,995,000) $ (1,620,000)$ (4,615,000)
TRANSFERS IN (2,000,000) -0- (2,000,000)
APPROPRIATIONS
Available for the Year
Ending June 30
2002 2003
Sec. 2. LEGISLATURE
Subdivision 1. Total
Appropriation (3,000,000) (2,000,000)
Subd. 2. Senate
(1,000,000) (1,000,000)
Subd. 3. House of Representatives
(2,000,000) (1,000,000)
$1,000,000 of the reduction in the
first year is from amounts previously
carried forward under Minnesota
Statutes, section 16A.281.
Sec. 3. GOVERNOR -0- 375,000
$200,000 is to the office of the
governor to reopen the governor's
residence and make it available for
public use.
$175,000 is to the commissioner of
public safety to provide security at
the governor's residence.
Sec. 4. ADMINISTRATION
$2,000,000 of the balance in the State
Building Code account in the state
government special revenue fund as of
June 30, 2002, is canceled and must be
transferred to the general fund.
Sec. 5. UNIFORM LAWS COMMISSION 5,000 5,000
These appropriations are added to the
appropriations in Laws 2001, First
Special Session chapter 8, article 4,
section 8.
Sec. 6. Minnesota Statutes 2000, section 16A.28,
subdivision 6, is amended to read:
Subd. 6. [CANCELED OCTOBER 15.] On October 15 all
allotments and encumbrances for the last fiscal year shall be
canceled unless an agency head certifies to the commissioner
that there is an encumbrance for services rendered or, goods
ordered, or grants issued in the last fiscal year, or certifies
that funding will be carried forward under subdivision
1. Encumbrances for grants issued by June 30 may be certified
for a period of one year beyond the year in which the funds were
originally appropriated. Services rendered under grant
contracts may occur during the certification period. The
commissioner may: reinstate the part of the cancellation needed
to meet the certified encumbrance or charge the certified
encumbrance against the current year's appropriation.
Sec. 7. Minnesota Statutes 2000, section 16B.27, is
amended by adding a subdivision to read:
Subd. 6. [USE BY NONSTATE ENTITIES.] A nonstate entity
using the governor's residence must pay the state for all direct
and indirect costs associated with use of the facility.
Sec. 8. Laws 1997, chapter 202, article 2, section 61, as
amended by Laws 1999, chapter 250, article 1, section 106, and
Laws 2001, First Special Session chapter 10, article 2, section
85, is amended to read:
Sec. 61. [VOLUNTARY UNPAID LEAVE OF ABSENCE.]
Appointing authorities in state government may allow each
employee to take an unpaid leave of absence for up to 320 hours
during the period ending June 30, 2003, and an additional 160
hours during the period beginning July 1, 2003, and ending June
30, 2005. Each appointing authority approving such a leave
shall allow the employee to continue accruing vacation and sick
leave, be eligible for paid holidays and insurance benefits,
accrue seniority, and accrue service credit in state retirement
plans permitting service credits for authorized leaves of
absence as if the employee had actually been employed during the
time of the leave. If the leave of absence is for one full pay
period or longer, any holiday pay shall be included in the first
payroll warrant after return from the leave of absence. The
appointing authority shall attempt to grant requests for unpaid
leaves of absence consistent with the need to continue efficient
operation of the agency. However, each appointing authority
shall retain discretion to grant or refuse to grant requests for
leaves of absence and to schedule and cancel leaves, subject to
applicable provisions of collective bargaining agreements and
compensation plans.
Sec. 9. Laws 2002, chapter 220, article 10, section 4, is
amended to read:
Sec. 4. GOVERNOR'S OFFICE (460,000) (702,000)
No funding may be used for the
operation of the Washington, D.C.,
office of the state of Minnesota.
Sec. 10. Laws 2002, chapter 220, article 10, section 36,
is amended to read:
Sec. 36. [REDUCTION IN CONTRACT EXPENDITURES.]
During the biennium ending June 30, 2003, the governor must
reduce planned executive branch state agency general fund
expenditures on contracts for professional or technical services
by at least $35,000,000 $28,300,000. The governor must allocate
this reduction among executive branch state agencies. If the
governor determines that the mandated contract savings cannot be
achieved, the governor must make proportional reductions to
executive agency operating budgets in order to achieve the
savings. For purposes of this section and section 37,
"professional or technical services" has the meaning given in
Minnesota Statutes, section 16C.08, subdivision 1; and
"executive branch state agency" has the meaning given in
Minnesota Statutes, section 16A.011, subdivision 12a, and
includes but does not include the Minnesota state colleges and
universities or the higher education services office. The base
for these reductions is the amount allocated for professional or
technical service contracts in agency spending plans as of
January 1, 2002.
Sec. 11. Laws 2002, chapter 220, article 10, section 37,
as amended by Laws 2002, chapter 364, section 30, is amended to
read:
Sec. 37. [MORATORIUM ON CONSULTANT CONTRACTS.]
(a) An entity in the executive branch of state government,
including other than the Minnesota state colleges and
universities or the higher education services office, may not
enter into a new contract or renew an existing contract for
professional or technical services after the effective date of
this section and before July 1, 2003. This section does not
apply to a contract:
(1) that relates to a threat to public health, welfare, or
safety that threatens the functioning of government, the
protection of property, or the health or safety of people;
(2) that is paid for entirely with federal funds received
before the effective date of this section or the cost of which
is entirely recovered from nonstate entities;
(3) that is paid entirely with funds from the state
airports fund, trunk highway fund, county state-aid highway
fund, or municipal state-aid street fund; or
(4) for a trunk highway project of a type described in Laws
2000, chapter 479, article 1, section 2, subdivision 3,
paragraph (a), clauses (1) to (3); or
(5) that is necessary to avoid a disruption of essential
state functions, will reduce state costs, or is necessary to
avoid a legal liability.
(b) An entity in the executive branch may apply for a
waiver of the moratorium by sending a letter with reasons for
the request to the commissioner of administration for executive
branch entities governor. Upon a finding that a consultant
contract is necessary, the commissioner governor may grant a
waiver. The decision of the commissioner is final and not
subject to appeal. A monthly report of all exceptions granted
under paragraph (a) and all waivers granted must be filed by the
entity granting the waiver. The report must be published on the
entity's a state Web site, and copies must be provided to the
chairs of the house ways and means and senate finance committees
and to the legislative reference library.
Sec. 12. Laws 2002, chapter 220, article 10, section 38,
subdivision 2, is amended to read:
Subd. 2. [EXCEPTIONS.] Subdivision 1 does not apply to:
(1) an employee at a state correctional facility;
(2) an employee of the department of corrections who
provides direct services to offenders;
(3) an employee of state-operated services under the
department of human services;
(4) a student in a work-study position worker; or
(2) (5) a position that is necessary to perform essential
government services; or
(6) an employee who is paid entirely with federal funds or
a special revenue fund, or whose costs are entirely recovered
from nonstate entities, or a combination of them.
A determination under clause (2) (5) must be made by the
speaker of the house of representatives with respect to house
employees, the chair of the committee on rules and
administration with respect to senate employees, and the
legislative coordinating commission with respect to its
employees, by a constitutional officer with respect to employees
of the constitutional office, and by the governor with respect
to any other employee covered by this section. Exceptions
granted under clause (2) (5) must be reported monthly by the
entity granting the exception. The reports must be published on
the entity's Web site, and copies must be provided to the chairs
of the house ways and means and senate finance committees and to
the legislative reference library.
Sec. 13. Laws 2002, chapter 220, article 10, section 38,
subdivision 3, is amended to read:
Subd. 3. [ANTICIPATED SAVINGS.] The legislature
anticipates that application of this section to executive branch
agencies and to the Minnesota state colleges and universities
will result in savings to the general fund of
$40,000,000 $29,736,000 by June 30, 2003. If the governor
determines that application of this section will not result
in $40,000,000 $29,736,000 in savings to the general fund by
June 30, 2003, the governor must make proportional reductions in
executive agency operating budgets necessary to achieve these
savings. If the governor makes proportional reductions to
executive agency operating budgets to achieve the required
savings, the governor shall exclude from the reductions:
(1) the department of corrections with respect to employees
at state correctional institutions or who provide direct
services to offenders; and
(2) the department of human services with respect to
state-operated services.
Sec. 14. Laws 2002, chapter 220, article 10, section 39,
is amended to read:
Sec. 39. [SAVINGS ARE ADDITIONAL.]
Savings achieved in sections 36 to 38 from the freeze in
state hiring or the reduction in the number of state contracts
for professional or technical services are in addition to
reductions in spending required by other sections of this
article act.
Sec. 15. [NONPROFIT GRANT AND CONTRACT DECISIONS.]
Subdivision 1. [FISCAL YEAR 2002 PROCESSING.] (a) This
subdivision applies when:
(1) a state agency has delayed its final decision on
whether to enter into a grant or contract with a nonprofit
corporation to spend money appropriated for the fiscal year
ending June 30, 2002, pending elimination of the state budget
deficit; and
(2) the nonprofit corporation has provided services based
on an appropriation that names the nonprofit corporation or
based on a grant award letter from a state agency to the
nonprofit corporation.
(b) In a circumstance described in paragraph (a), within 15
business days after final enactment of this act the state agency
must:
(1) process the grant or contract with the nonprofit
corporation; and
(2) issue payment to the nonprofit corporation for services
already provided.
Subd. 2. [FISCAL YEAR 2002 RETROACTIVITY.] A contract
encumbered or a grant awarded by a state agency to a nonprofit
corporation for services rendered in the fiscal year ending June
30, 2002, is retroactive to the date that services were first
provided under the contract or grant.
Subd. 3. [FISCAL YEAR 2003.] A contract encumbered or a
grant awarded by a state agency to a nonprofit corporation for
services rendered in the fiscal year ending June 30, 2003, is
retroactive to the date that services were first provided under
the contract or grant.
Sec. 16. [VOTING EQUIPMENT GRANTS.]
Within 30 days after the effective date of this section,
the commissioner of administration must make voting equipment
grants authorized by Minnesota Statutes 2001 Supplement, section
204B.48, to the full extent of appropriations available for
these grants under Laws 2001, First Special Session chapter 10,
article 1, section 12, subdivision 7, as amended by Laws 2002,
chapter 220, article 10, section 10, subdivision 8.
Sec. 17. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 8
CANCELLATIONS; CASH FLOW; TRANSFERS IN
Section 1. Minnesota Statutes 2001 Supplement, section
62J.694, subdivision 1, is amended to read:
Subdivision 1. [CREATION.] (a) The medical education
endowment fund is created in the state treasury. The state
board of investment shall invest the fund under section 11A.24.
All earnings of the fund must be credited to the fund. The
principal of the fund must be maintained inviolate, except that
the principal may be used to make expenditures from the fund for
the purposes specified in this section when the market value of
the fund falls below 105 percent of the cumulative total of the
tobacco settlement payments received by the state and credited
to the tobacco settlement fund under section 16A.87, subdivision
2. For purposes of this section, "principal" means an amount
equal to the cumulative total of the tobacco settlement payments
received by the state and credited to the tobacco settlement
fund under section 16A.87, subdivision 2.
(b) If the commissioner of finance determines that probable
receipts to the general fund will be sufficient to meet the need
for expenditures from the general fund for a fiscal biennium,
after using the cash reserves of the tobacco use prevention and
local public health endowment fund, excluding an amount
sufficient to meet the annual appropriations in section 144.395,
subdivision 2, the commissioner may use cash reserves of the
medical education endowment fund, excluding the amounts needed
to meet the appropriations described in subdivisions 2 and 2a,
to pay expenses of the general fund. If cash reserves are
transferred to the general fund to meet cash flow needs, the
amount transferred, plus interest at a rate comparable to the
rate earned by the state on invested treasurer's cash, as
determined monthly by the commissioner, must be returned to the
endowment fund as soon as sufficient cash balances are available
in the general fund, but in any event before the end of the
fiscal biennium. An amount necessary to pay the interest is
appropriated from the general fund. If cash reserves of the
endowment fund are used to pay expenses for the general fund,
notwithstanding subdivision 2, paragraph (d), the academic
health center shall be held harmless to the extent possible.
When determining the fair market value of the fund, for the
purposes described in subdivisions 2 and 2a, the value of the
cash reserves transferred to the general fund must be included
in the determination.
(c) The academic health center account is created as a
separate account in the medical education endowment fund. The
account is invested under paragraph (a). All earnings of the
account must be credited to the account. The principal of the
account must be maintained inviolate, except that the principal
may be used to make expenditures from the account for the
purposes specified in subdivision 2a when the value of the
account falls below an amount equal to deposits made to the
account under section 16A.87, subdivision 3, paragraph (b).
Sec. 2. Minnesota Statutes 2000, section 79.251,
subdivision 1, is amended to read:
Subdivision 1. [ASSIGNED RISK PLAN REVIEW BOARD.] (a) (1)
An assigned risk plan review board is created for the purposes
of review of the operation of section 79.252 and this section.
The board shall have all the usual powers and authorities
necessary for the discharge of its duties under this section and
may contract with individuals in discharge of those duties.
(2) The board shall consist of six members to be appointed
by the commissioner of commerce. Three members shall be
insureds holding policies or contracts of coverage issued
pursuant to subdivision 4. Two members shall be insurers
licensed pursuant to section 60A.06, subdivision 1, clause (5),
paragraph (b). The commissioner shall be the sixth member and
shall vote.
Initial appointments shall be made by September 1, 1981,
and terms shall be for three years duration. Removal, the
filling of vacancies and compensation of the members other than
the commissioner shall be as provided in section 15.059.
(3) The assigned risk plan review board shall audit the
reserves established (a) for individual cases arising under
policies and contracts of coverage issued under subdivision 4
and (b) for the total book of business issued under subdivision
4. If the board determines on the basis of an audit that there
is an excess surplus in the assigned risk plan, it must notify
the commissioner of finance who shall transfer assets of the
plan equal to the excess surplus to the budget reserve account
in the general fund.
(4) The assigned risk plan review board shall monitor the
operations of section 79.252 and this section and shall
periodically make recommendations to the commissioner, and to
the governor and legislature when appropriate, for improvement
in the operation of those sections.
(5) All insurers and self-insurance administrators issuing
policies or contracts under subdivision 4 shall pay to the
commissioner a .25 percent assessment on premiums for policies
and contracts of coverage issued under subdivision 4 for the
purpose of defraying the costs of the assigned risk plan review
board. Proceeds of the assessment shall be deposited in the
state treasury and credited to the general fund.
(6) The assigned risk plan and the assigned risk plan
review board shall not be deemed a state agency.
(b) As used in this subdivision, "excess surplus" means the
amount of assigned risk plan assets in excess of the amount
needed to pay all current liabilities of the plan, including,
but not limited to:
(1) administrative expenses;
(2) benefit claims; and
(3) if the assigned risk plan is dissolved under
subdivision 8, the amounts that would be due insurers who have
paid assessments to the plan.
Sec. 3. Minnesota Statutes 2000, section 144.395,
subdivision 1, as amended by Laws 2002, chapter 220, article 13,
section 6, is amended to read:
Subdivision 1. [CREATION.] (a) The tobacco use prevention
and local public health endowment fund is created in the state
treasury. The state board of investment shall invest the fund
under section 11A.24. All earnings of the fund must be credited
to the fund. The principal of the fund must be maintained
inviolate, except that the principal may be used to make
expenditures from the fund for the purposes specified in this
section when the market value of the fund falls below 105
percent of the cumulative total of the tobacco settlement
payments received by the state and credited to the tobacco
settlement fund under section 16A.87, subdivision 2. For
purposes of this section, "principal" means an amount equal to
the cumulative total of the tobacco settlement payments received
by the state and credited to the tobacco settlement fund under
section 16A.87, subdivision 2.
(b) If the commissioner of finance determines that probable
receipts to the general fund will not be sufficient to meet the
need for expenditures from the general fund for a fiscal
biennium, the commissioner may use cash reserves of the tobacco
use prevention and local public health endowment fund, excluding
an amount sufficient to meet the annual appropriations in
subdivision 2, to pay expenses of the general fund. If cash
reserves are transferred to the general fund to meet cash flow
needs, the cash flow transfers amount transferred, plus interest
at a rate comparable to the rate earned by the state on invested
treasurer's cash, as determined monthly by the commissioner,
must be returned to the endowment fund as soon as sufficient
cash balances are available in the general fund, but in any
event before the end of the fiscal biennium. Any interest
earned on cash flow transfers from the endowment fund accrues to
the endowment fund and not to the general fund. An amount
necessary to pay the interest is appropriated from the general
fund. If cash reserves of the endowment fund are used to pay
expenses for the general fund, the recipients of the grants
shall be held harmless to the extent possible in the following
order: (1) local public health; (2) local tobacco prevention;
and (3) statewide tobacco prevention. When determining the fair
market value of the fund, for the purposes described in
subdivision 2, the value of the cash reserves transferred to the
general fund must be included in the determination.
Sec. 4. Laws 2002, chapter 220, article 13, section 7, is
amended to read:
Sec. 7. [BALANCES CANCELED TO GENERAL FUND.]
The unobligated balances in the following general fund
accounts created in the sections of Minnesota Statutes indicated
are canceled to the general fund in the fiscal years indicated:
(1) the budget reserve account, Minnesota Statutes, section
16A.152, subdivision 1a, estimated to be $653,000,000, in fiscal
year 2002;
(2) the local government aid reform account, Minnesota
Statutes, section 16A.1523, estimated to be $14,000,000, in
fiscal year 2003;
(3) the tax relief account, Minnesota Statutes, section
16A.1522, subdivision 4, estimated to be $158,148,000, in fiscal
year 2004 2003; and
(4) $195,000,000 $350,000,000 of the unobligated balance in
the cash flow account in Minnesota Statutes, section 16A.152,
subdivision 1.
Sec. 5. Laws 2002, chapter 220, article 13, section 9,
subdivision 1, is amended to read:
Subdivision 1. [ASSIGNED RISK PLAN.] By June 30, 2002, the
commissioner of finance shall transfer $120,000,000 $134,000,000
in assets of the assigned risk plan created under Minnesota
Statutes, section 79.252, to the general fund. $25,100,000 is
appropriated from the general fund to the commissioner of
finance to fund the settlement of the lawsuit entitled Danny's
Trannys, Inc. et al. v. State, et al., Ramsey County District
Court No. C7-00-5714, and to reimburse the tort claims account
for amounts paid to implement settlement of this lawsuit.
Sec. 6. Laws 2002, chapter 220, article 13, section 9,
subdivision 2, is amended to read:
Subd. 2. [SPECIAL COMPENSATION FUND.] After June 1, 2003,
but no later than June 30, 2003, the commissioner of finance
shall transfer $230,000,000 $250,000,000 in assets of the excess
surplus account of the special compensation fund created under
Minnesota Statutes, section 176.129, to the general fund.
Sec. 7. [BALANCES DEPOSITED IN BUDGET RESERVE.]
Notwithstanding Minnesota Statutes, section 16A.1522, any
positive unrestricted general fund balance on June 30, 2003,
must be allocated to the budget reserve account in the general
fund.
Sec. 8. [EFFECTIVE DATE.]
This article is effective the day following final
enactment, except that section 2 is effective January 1, 2003,
and sections 1 and 3 are effective July 1, 2003.
ARTICLE 9
HEALTH AND HUMAN SERVICES APPROPRIATIONS
Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.]
The dollar amounts shown in the columns marked
"APPROPRIATIONS" are added to or, if shown in parentheses, are
subtracted from the appropriations in Laws 2001, First Special
Session chapter 9, and Laws 2002, chapter 220, or other law, and
are appropriated from the general fund, or any other fund named,
to the agencies and for the purposes specified in this article,
to be available for the fiscal years indicated for each
purpose. The figures "2002" and "2003" used in this article
mean that the appropriation or appropriations listed under them
are available for the fiscal year ending June 30, 2002, or June
30, 2003, respectively.
SUMMARY BY FUND
2002 2003 TOTAL
General
Forecast
Adjustments $47,032,000 $26,019,000 $73,051,000
Nonforecast 1,660,000 (26,554,000) (24,894,000)
Health Care
Access (2,605,000) (4,318,000) (6,923,000)
Federal TANF (7,383,000) 8,896,000 1,513,000
State Government
Special Revenue -0- 4,000 4,000
APPROPRIATIONS
Available for the Year
Ending June 30
2002 2003
Sec. 2. COMMISSIONER OF
HUMAN SERVICES
Subdivision 1. Total
Appropriation $ 38,704,000 $ 3,143,000
Summary by Fund
General 48,692,000 (1,435,000)
Health Care
Access (2,605,000) (4,318,000)
Federal TANF (7,383,000) 8,896,000
Subd. 2. Children's
Grants
General -0- (4,748,000)
[FAMILY PRESERVATION AND CHILDREN'S
MENTAL HEALTH GRANTS.] This
appropriation includes a reduction of
$6,548,000 in family preservation and
children's mental health grants due to
changes in allocations and an increase
of $1,800,000 in local collaboratives
wraparound services coordination
grants. The increased appropriation
for coordination grants shall become
part of base level funding for the
biennium beginning July 1, 2003.
Subd. 3. Basic Health Care
Grants
General 10,999,000 6,126,000
Health Care
Access (2,605,000) (4,318,000)
The amounts that may be spent from this
appropriation for each purpose are as
follows:
(a) MinnesotaCare Grants
Health Care
Access (2,605,000) (4,318,000)
[MINNESOTACARE ELIGIBILITY
DETERMINATION CARRYOVER.] The
appropriation for the biennium
beginning July 1, 2001, in Laws 2001,
First Special Session chapter 9,
article 17, section 2, subdivision 7,
paragraph (b), for activities related
to processing MinnesotaCare
applications and determining applicant
eligibility shall not cancel but shall
be available until June 30, 2005.
(b) MA Basic Health Care
Grants - Families and Children
General 7,437,000 (5,285,000)
(c) MA Basic Health Care
Grants - Elderly and Disabled
General (779,000) 7,476,000
(d) General Assistance
Medical Care Grants
General 2,681,000 5,080,000
(e) Health Care Grants -
Other Assistance
General 1,660,000 (1,145,000)
[U SPECIAL KIDS PROGRAM.] Of this
appropriation, $350,000 in fiscal year
2002 is immediately available to the
commissioner to be transferred
immediately to the University of
Minnesota for the U Special Kids
program. The money may be used to
match private grants. The money shall
be used to provide physician-supervised
medical case management services for up
to 50 Minnesota children in the program
who are eligible for medical
assistance. Any unspent portion of
this appropriation shall not cancel but
shall be available for these purposes
until June 30, 2005. This is a onetime
appropriation and shall not become part
of base level funding for the 2004-2005
biennium.
[HIV/AIDS DRUG REBATES.] For the fiscal
year ending June 30, 2003, $1,150,000
of the general fund appropriations for
HIV/AIDS grants and services that are
no longer needed as a result of greater
than anticipated collections under the
AIDS drug assistance program rebate
must be used to meet funding needs of
the state prescription drug program.
[ADAP FUNDING.] For the fiscal year
ending June 30, 2003, $1,150,000 from
the AIDS drug assistance program (ADAP)
rebate program shall be used to meet
the needs of the HIV/AIDS grants and
services program.
Subd. 4. State-Operated
Services
General -0- 4,000,000
[STATE-OPERATED SERVICES DEDICATED
REVENUE ACCOUNTS.] The commissioner of
human services shall provide the chairs
of the house and senate health and
human services finance committees
copies of all dedicated revenue account
quarterly and annual financial
statements that are reviewed by the
state-operated services governing
board. The annual financial statement
must include a summary of revenues,
expenditures, obligations, and cash
balances. The description of cash
balances must specifically identify
cash balances included in funded
depreciation accounts and in cash flow
reserves for 120 days of operating
expense. The annual financial
statement must clearly delineate any
amount of cash reserve that is in
excess of requirements for funded
depreciation and 120 days of operating
expense. Quarterly financial
statements must be available to the
chairs within 30 days of the closing
date for that quarter. The annual
financial statement must be available
by August 15 of each year.
[ONETIME APPROPRIATION.] Of the
appropriation for fiscal year 2003,
$4,000,000 is from the general fund to
the commissioner of human services for
state-operated services. This is a
onetime appropriation and shall not
become part of base level funding.
[STATE-OPERATED SERVICES STUDY.] The
commissioner of human services, in
consultation with community
representatives, shall evaluate
strategies to consolidate the delivery
of state-operated services. Strategies
shall be considered in the context of
other community-based services
options. By January 15, 2003, the
commissioner shall provide
recommendations to the 2003 legislature
that result from this evaluation.
[ONETIME REDUCTION TO SHARED SERVICES
DEDICATED REVENUES.] For fiscal year
2003 only, $564,000 of fund balances
within the accounts established under
Minnesota Statutes, section 246.57,
subdivision 1, shall be transferred to
the general fund.
Subd. 5. Continuing Care
Grants
[FUNDING USAGE.] Up to 75 percent of
the fiscal year 2004 appropriations for
family preservation grants,
developmental disability
semi-independent living services,
developmental disability family
support, adult mental health grants,
and children's mental health grants may
be used to fund calendar year 2003
allocations for these programs, with
the resulting calendar year funding
pattern continuing into the future.
Appropriation reductions associated
with this shift are one time only.
General 27,896,000 (4,863,000)
The amounts that may be spent from this
appropriation for each purpose are as
follows:
(a) Medical Assistance
Long-Term Care Waivers and
Home Care Grants
General 26,054,000 26,552,000
(b) Medical Assistance
Long-Term Care Facilities
Grants
General 1,815,000 (736,000)
(c) Group Residential
Housing Grants
General 27,000 689,000
(d) Chemical Dependency
Entitlement Grants
General -0- (1,000,000)
[ADDITIONAL CONSOLIDATED CHEMICAL
DEPENDENCY TREATMENT FUND RESERVE
TRANSFER.] In addition to the amount
transferred in Laws 2002, chapter 220,
article 17, section 2, subdivision 6,
paragraph (e), an additional $7,000,000
of funds available in the consolidated
chemical dependency treatment fund
general reserve account is transferred
to the general fund in fiscal year 2003.
(e) Community Social
Service Grants
General -0- (13,730,000)
(f) Mental Health
Grants
General -0- (13,635,000)
This reduction is one time only.
(g) Community Support
Grants
General -0- (3,003,000)
Subd. 6. Economic
Support Grants
General 9,797,000 (1,950,000)
Federal TANF (7,383,000) 8,896,000
The amounts that may be spent from the
appropriation for each purpose are as
follows:
(a) Assistance to Families
Grants
General 8,712,000 (3,740,000)
Federal TANF (7,383,000) 8,803,000
[AUTHORITY TO CARRYFORWARD AUTHORIZED
TRANSFER.] The $11,000,000 in TANF
funds authorized for transfer to title
XX of the federal Social Security Act
grants in fiscal year 2003 by Laws
1999, chapter 245, article 1, section
2, subdivision 11, are available for
expenditure in fiscal year 2004.
(b) General Assistance
Grants
General 1,361,000 1,779,000
(c) Economic Support -
Other Assistance
Federal TANF -0- 93,000
[TANF TRANSFER TO THE DEPARTMENT OF
CHILDREN, FAMILIES, AND LEARNING.] Of
the TANF appropriation, $93,000 in
fiscal year 2003 is appropriated to the
commissioner of children, families, and
learning for the purposes of Minnesota
Statutes, section 119B.05. The
commissioner of human services shall
authorize a sufficient transfer of
funds from the state's federal TANF
block grant to the state's federal
child care development fund block grant
to meet this appropriation.
(d) Minnesota Supplemental
Aid Grants
General (276,000) 11,000
Sec. 3. COMMISSIONER OF HEALTH
Subdivision 1. Total Appropriation -0- 4,000
Summary by Fund
State Government
Special Revenue -0- 4,000
Subd. 2. Family and Provider
Compliance
State Government
Special Revenue -0- 4,000
[REGISTRATION COSTS.] This
appropriation in fiscal year 2003 is to
the commissioner for the costs of
registering establishments under
Minnesota Statutes, section 144D.025.
Sec. 4. VETERANS NURSING
HOMES BOARD
Summary by Fund
General -0- 900,000
[DEFICIENCY APPROPRIATION.] The
appropriation to the veterans nursing
homes board for fiscal year 2003 is for
a deficiency in board operations. This
is a onetime appropriation and shall
not become part of base level funding
for the 2004-2005 biennium.
Sec. 5. [VETERANS NURSING HOMES BOARD FUNDING.]
(a) Notwithstanding Minnesota Statutes, section 16B.31,
subdivision 7, on July 1, 2002, the commissioner of
administration shall transfer to the veterans nursing homes
board any remaining portion of the payments received from
contractors for the mold damage at the Luverne facility.
(b) Notwithstanding the provisions of Minnesota Statutes,
section 16A.151, any payments made during fiscal year 2003 from
contractors to settle legal issues regarding the mold damage at
the Luverne facility are appropriated to the veterans nursing
homes board.
(c) Total appropriations to the veterans nursing homes
board under this section shall not exceed $500,000.
Sec. 6. [EXEMPTIONS FROM REDUCTION IN CONTRACT
EXPENDITURES AND FROM HIRING FREEZE.]
For fiscal year 2003, the department of human services is
exempt from the hiring freeze established in Laws 2002, chapter
220, article 10, section 38, as amended by article 7, section
12, and the contract moratorium established in Laws 2002,
chapter 220, article 10, section 37, as amended by article 7,
section 11, and by Laws 2002, chapter 364, section 30, as it
relates to the establishment and implementation of a
supplemental drug rebate program.
Sec. 7. [INCARCERATION REPORT.]
By February 1, 2003, the commissioner of corrections must
report to the chairs and ranking minority members of the house
of representatives and senate committees having jurisdiction
over criminal justice and judiciary finance divisions
alternatives for dealing with offenders who actually serve less
than one year in prison. This report shall include capital and
operating costs, possible partnerships, renting beds from public
or private facilities, and current prison capacities.
Sec. 8. [FISCAL 2003 TANF MAINTENANCE OF EFFORT.]
The commissioner of human services must ensure that the
maintenance of effort amount used in the MFIP forecast of
November 2002 and February 2003 is not less than $188,937,000
with respect to fiscal year 2003.
Sec. 9. [SUNSET OF UNCODIFIED LANGUAGE.]
All uncodified language contained in this article expires
June 30, 2003, unless a different expiration date is explicit.
Sec. 10. [EFFECTIVE DATE.]
Except as otherwise provided in this article, this article
is effective the day following final enactment.
ARTICLE 10
HEALTH AND HUMAN SERVICES
Section 1. Minnesota Statutes 2000, section 13.05,
subdivision 4, is amended to read:
Subd. 4. [LIMITATIONS ON COLLECTION AND USE OF DATA.]
Private or confidential data on an individual shall not be
collected, stored, used, or disseminated by political
subdivisions, statewide systems, or state agencies for any
purposes other than those stated to the individual at the time
of collection in accordance with section 13.04, except as
provided in this subdivision.
(a) Data collected prior to August 1, 1975, and which have
not been treated as public data, may be used, stored, and
disseminated for the purposes for which the data was originally
collected or for purposes which are specifically approved by the
commissioner as necessary to public health, safety, or welfare.
(b) Private or confidential data may be used and
disseminated to individuals or agencies specifically authorized
access to that data by state, local, or federal law enacted or
promulgated after the collection of the data.
(c) Private or confidential data may be used and
disseminated to individuals or agencies subsequent to the
collection of the data when the responsible authority
maintaining the data has requested approval for a new or
different use or dissemination of the data and that request has
been specifically approved by the commissioner as necessary to
carry out a function assigned by law.
(d) Private data may be used by and disseminated to any
person or agency if the individual subject or subjects of the
data have given their informed consent. Whether a data subject
has given informed consent shall be determined by rules of the
commissioner. Informed consent shall not be deemed to have been
given by an individual subject of the data by the signing of any
statement authorizing any person or agency to disclose
information about the individual to an insurer or its authorized
representative, unless the statement is:
(1) in plain language;
(2) dated;
(3) specific in designating the particular persons or
agencies the data subject is authorizing to disclose information
about the data subject;
(4) specific as to the nature of the information the
subject is authorizing to be disclosed;
(5) specific as to the persons or agencies to whom the
subject is authorizing information to be disclosed;
(6) specific as to the purpose or purposes for which the
information may be used by any of the parties named in clause
(5), both at the time of the disclosure and at any time in the
future;
(7) specific as to its expiration date which should be
within a reasonable period of time, not to exceed one year
except in the case of authorizations given in connection with
applications for (i) life insurance or noncancelable or
guaranteed renewable health insurance and identified as such,
two years after the date of the policy or (ii) medical
assistance under chapter 256B or MinnesotaCare under chapter
256L, which shall be ongoing during all terms of eligibility,
for individual education plan health-related services provided
by a school district under section 125A.21, subdivision 2.
The responsible authority may require a person requesting
copies of data under this paragraph to pay the actual costs of
making, certifying, and compiling the copies.
(e) Private or confidential data on an individual may be
discussed at a meeting open to the public to the extent provided
in section 13D.05.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 2. Minnesota Statutes 2001 Supplement, section
241.021, subdivision 4, is amended to read:
Subd. 4. [HEALTH CARE.] The commissioner of corrections
shall provide professional health care to persons confined in
institutions under the control of the commissioner of
corrections and pay the costs of their care in hospitals and
other medical facilities not under the control of the
commissioner of corrections. All reimbursements for these
health care services shall be deposited in the general fund.
The commissioner of corrections is authorized to contract
with or reimburse entities, including health care management
companies, to provide health care to inmates, at reimbursement
rates equal to medical assistance unless otherwise negotiated.
With respect to these contracts, these entities shall not be
regulated as, or otherwise considered to be, health plan
companies as defined in section 62Q.01, subdivision 4.
Sec. 3. Minnesota Statutes 2000, section 241.44, is
amended by adding a subdivision to read:
Subd. 5. [GRANTS.] The ombudsman may apply for and receive
grants from public and private entities for purposes of carrying
out the ombudsman's powers and duties under sections 241.41 to
241.45.
Sec. 4. Minnesota Statutes 2000, section 256.9657,
subdivision 1, as amended by Laws 2002, chapter 220, article 14,
section 5, is amended to read:
Subdivision 1. [NURSING HOME LICENSE SURCHARGE.] (a)
Effective July 1, 1993, each non-state-operated nursing home
licensed under chapter 144A shall pay to the commissioner an
annual surcharge according to the schedule in subdivision 4.
The surcharge shall be calculated as $620 per licensed bed. If
the number of licensed beds is reduced, the surcharge shall be
based on the number of remaining licensed beds the second month
following the receipt of timely notice by the commissioner of
human services that beds have been delicensed. The nursing home
must notify the commissioner of health in writing when beds are
delicensed. The commissioner of health must notify the
commissioner of human services within ten working days after
receiving written notification. If the notification is received
by the commissioner of human services by the 15th of the month,
the invoice for the second following month must be reduced to
recognize the delicensing of beds. Beds on layaway status
continue to be subject to the surcharge. The commissioner of
human services must acknowledge a medical care surcharge appeal
within 30 days of receipt of the written appeal from the
provider.
(b) Effective July 1, 1994, the surcharge in paragraph (a)
shall be increased to $625.
(c) Effective August 15, 2003, the surcharge under
paragraph (b) shall be increased by an amount necessary to
ensure a net gain to the general fund of $9,620,000 during
fiscal year 2004 as a result of:
(1) the total transfers anticipated during the fiscal year
ending June 30, 2004, under section 256B.19, subdivision 1d,
paragraph (c);
(2) the county nursing home payment adjustments under
section 256B.431, subdivision 23, paragraph (c);
(3) the surcharges under this paragraph; and
(4) the nursing facility rate increases under section
256B.431, subdivision 37.
The increase under this paragraph shall not exceed $365 per bed.
(d) Effective August 15, 2004 2002, the surcharge under
paragraph (c) (b) shall be equal to an amount necessary to
ensure a net gain to the general fund each fiscal year of
$10,228,000 as a result of: increased to $990.
(1) the total transfers anticipated during the fiscal year
under section 256B.19, subdivision 1d, paragraph (c);
(2) the county nursing home payment adjustments under
section 256B.431, subdivision 23, paragraph (c);
(3) the surcharges under this paragraph; and
(4) the nursing facility rate increases under section
256B.431, subdivision 37.
The surcharge under this paragraph shall not exceed $365 per bed.
Sec. 5. Minnesota Statutes 2000, section 256B.431,
subdivision 23, as amended by Laws 2002, chapter 220, article
14, section 9, is amended to read:
Subd. 23. [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a)
Beginning in 1994, the commissioner shall pay a nursing home
payment adjustment on May 31 after noon to a county in which is
located a nursing home that, as of January 1 of the previous
year on that date, was county-owned and operated, with the
county named as licensee by the commissioner of health, and had
over 40 beds and medical assistance occupancy in excess of 50
percent during the reporting year ending September 30, 1991.
The adjustment shall be an amount equal to $16 per calendar day
multiplied by the number of beds licensed in the facility as of
September 30, 1991.
(b) Payments under paragraph (a) are excluded from medical
assistance per diem rate calculations. These payments are
required notwithstanding any rule prohibiting medical assistance
payments from exceeding payments from private pay residents. A
facility receiving a payment under paragraph (a) may not
increase charges to private pay residents by an amount
equivalent to the per diem amount payments under paragraph (a)
would equal if converted to a per diem.
(c) Beginning in 2002, in addition to any payment under
paragraph (a), the commissioner shall pay to a nursing facility
described in paragraph (a) an adjustment in an amount equal to
$29.55 per calendar day multiplied by the number of beds
licensed in the facility on that date. The provisions of
paragraphs (a) and (b) apply to payments under this paragraph.
(d) The commissioner may reduce payments under paragraph (c)
based on the commissioner's determination of Medicare upper
payment limits. Any adjustments must be proportional to
adjustments made under section 256B.19, subdivision 1d,
paragraph (d).
Sec. 6. Minnesota Statutes 2000, section 256B.431,
subdivision 37, as added by Laws 2002, chapter 220, article 14,
section 10, is amended to read:
Subd. 37. [NURSING HOME RATE INCREASES EFFECTIVE JULY 1,
2003 2002.] For rate years beginning on or after July 1, 2003
2002, the commissioner shall provide to each nursing home
reimbursed under this section or section 256B.434 an increase in
each case mix payment rate equal to the increase in the per-bed
surcharge paid under section 256.9657, subdivision 1, paragraph
(c) or (d), divided by 365 and further divided by .80. The
increase under this subdivision shall be added following the
determination of the payment rate for the home under this
chapter. The increase shall not be subject to any annual
percentage increase.
Sec. 7. Minnesota Statutes 2001 Supplement, section
256B.5013, subdivision 1, as amended by Laws 2002, chapter 220,
article 14, section 14, is amended to read:
Subdivision 1. [VARIABLE RATE ADJUSTMENTS.] (a) For rate
years beginning on or after October 1, 2000, when there is a
documented increase in the needs of a current ICF/MR recipient,
the county of financial responsibility may recommend a variable
rate to enable the facility to meet the individual's increased
needs. Variable rate adjustments made under this subdivision
replace payments for persons with special needs under section
256B.501, subdivision 8, and payments for persons with special
needs for crisis intervention services under section 256B.501,
subdivision 8a. Effective July 1, 2003, facilities with a base
rate above the 50th percentile of the statewide average
reimbursement rate for a Class A facility or Class B facility,
whichever matches the facility licensure, are not eligible for a
variable rate adjustment. Variable rate adjustments may not
exceed a 12-month period, except when approved for purposes
established in paragraph (b), clause (1). Variable rate
adjustments approved solely on the basis of changes on a
developmental disabilities screening document will end June 30,
2002.
(b) A variable rate may be recommended by the county of
financial responsibility for increased needs in the following
situations:
(1) a need for resources due to an individual's full or
partial retirement from participation in a day training and
habilitation service when the individual: (i) has reached the
age of 65 or has a change in health condition that makes it
difficult for the person to participate in day training and
habilitation services over an extended period of time because it
is medically contraindicated; and (ii) has expressed a desire
for change through the mental retardation and related conditions
screening process under section 256B.092;
(2) a need for additional resources for intensive
short-term programming which is necessary prior to an
individual's discharge to a less restrictive, more integrated
setting;
(3) a demonstrated medical need that significantly impacts
the type or amount of services needed by the individual; or
(4) a demonstrated behavioral need that significantly
impacts the type or amount of services needed by the individual.
(c) The county of financial responsibility must justify the
purpose, the projected length of time, and the additional
funding needed for the facility to meet the needs of the
individual.
(d) The facility shall provide a quarterly report to the
county case manager on the use of the variable rate funds and
the status of the individual on whose behalf the funds were
approved. The county case manager will forward the facility's
report with a recommendation to the commissioner to approve or
disapprove a continuation of the variable rate.
(e) Funds made available through the variable rate process
that are not used by the facility to meet the needs of the
individual for whom they were approved shall be returned to the
state.
Sec. 8. Minnesota Statutes 2000, section 256E.06,
subdivision 3, is amended to read:
Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human
services shall make payments for community social services to
each county in four installments per on or before July 10 of
each year. The commissioner of human services may certify the
payments for the first three months of a calendar year based on
estimates of the unduplicated number of persons receiving
Minnesota family investment program assistance, general
assistance, and medical assistance for the prior year. The
following three payments shall be adjusted to reflect the actual
unduplicated number of persons who received Minnesota family
investment program assistance, general assistance, and medical
assistance as required by subdivision 1. The commissioner shall
ensure that the pertinent payment of the allotment for that
quarter is made to each county on the first working day after
the end of each quarter of the calendar year, except for the
last quarter of the calendar year. The commissioner shall
ensure that each county receives its payment of the allotment
for that quarter no later than the last working day of that
quarter. This scheduling of payments does not require
compliance with subdivision 10.
Sec. 9. Minnesota Statutes 2001 Supplement, section
256J.425, subdivision 3, is amended to read:
Subd. 3. [HARD-TO-EMPLOY PARTICIPANTS.] An assistance unit
subject to the time limit in section 256J.42, subdivision 1, in
which any participant has received 60 counted months of
assistance, is eligible to receive months of assistance under a
hardship extension if the participant belongs to any of the
following groups:
(1) a person who is diagnosed by a licensed physician,
psychological practitioner, or other qualified professional, as
mentally retarded or mentally ill, and that condition prevents
the person from obtaining or retaining unsubsidized employment;
(2) a person who:
(i) has been assessed by a vocational specialist or the
county agency to be unemployable for purposes of this
subdivision; or
(ii) has an IQ below 80 who has been assessed by a
vocational specialist or a county agency to be employable, but
not at a level that makes the participant eligible for an
extension under subdivision 4 or, in the case of a
non-English-speaking person for whom it is not possible to
provide a determination due to language barriers or absence of
culturally appropriate assessment tools, is determined by a
qualified professional to have an IQ below 80. A person is
considered employable if positions of employment in the local
labor market exist, regardless of the current availability of
openings for those positions, that the person is capable of
performing; or
(3) a person who is determined by the county agency to be
learning disabled or, in the case of a non-English-speaking
person for whom it is not possible to provide a medical
diagnosis due to language barriers or absence of culturally
appropriate assessment tools, is determined by a qualified
professional to have a learning disability. If a rehabilitation
plan for the person is developed or approved by the county
agency, the plan must be incorporated into the employment plan.
However, a rehabilitation plan does not replace the requirement
to develop and comply with an employment plan under section
256J.52. For purposes of this section, "learning disabled"
means the applicant or recipient has a disorder in one or more
of the psychological processes involved in perceiving,
understanding, or using concepts through verbal language or
nonverbal means. The disability must severely limit the
applicant or recipient in obtaining, performing, or maintaining
suitable employment. Learning disabled does not include
learning problems that are primarily the result of visual,
hearing, or motor handicaps; mental retardation; emotional
disturbance; or due to environmental, cultural, or economic
disadvantage; or
(4) a person who is a victim of family violence as defined
in section 256J.49, subdivision 2, and who is participating in
an alternative employment plan under section 256J.49,
subdivision 1a.
Sec. 10. Minnesota Statutes 2001 Supplement, section
256J.425, subdivision 4, is amended to read:
Subd. 4. [EMPLOYED PARTICIPANTS.] (a) An assistance unit
subject to the time limit under section 256J.42, subdivision 1,
in which any participant has received 60 months of assistance,
is eligible to receive assistance under a hardship extension if
the participant belongs to:
(1) a one-parent assistance unit in which the participant
is participating in work activities for at least 30 hours per
week, of which an average of at least 25 hours per week every
month are spent participating in employment; or
(2) a two-parent assistance unit in which the participants
are participating in work activities for at least 55 hours per
week, of which an average of at least 45 hours per week every
month are spent participating in employment; or
(3) an assistance unit in which a participant is
participating in employment for fewer hours than those specified
in clause (1), and the participant submits verification from a
health care provider, in a form acceptable to the commissioner,
stating that the number of hours the participant may work is
limited due to illness or disability, as long as the participant
is participating in employment for at least the number of hours
specified by the health care provider. The participant must be
following the treatment recommendations of the health care
provider providing the verification. The commissioner shall
develop a form to be completed and signed by the health care
provider, documenting the diagnosis and any additional
information necessary to document the functional limitations of
the participant that limit work hours. If the participant is
part of a two-parent assistance unit, the other parent must be
treated as a one-parent assistance unit for purposes of meeting
the work requirements under this subdivision.
For purposes of this section, employment means:
(1) unsubsidized employment under section 256J.49,
subdivision 13, clause (1);
(2) subsidized employment under section 256J.49,
subdivision 13, clause (2);
(3) on-the-job training under section 256J.49, subdivision
13, clause (4);
(4) an apprenticeship under section 256J.49, subdivision
13, clause (19);
(5) supported work. For purposes of this section,
"supported work" means services supporting a participant on the
job which include, but are not limited to, supervision, job
coaching, and subsidized wages;
(6) a combination of (1) to (5); or
(7) child care under section 256J.49, subdivision 13,
clause (25), if it is in combination with paid employment.
(b) If a participant is complying with a child protection
plan under chapter 260C, the number of hours required under the
child protection plan count toward the number of hours required
under this subdivision.
(c) The county shall provide the opportunity for subsidized
employment to participants needing that type of employment
within available appropriations.
(d) To be eligible for a hardship extension for employed
participants under this subdivision, a participant in a
one-parent assistance unit or both parents in a two-parent
assistance unit must be in compliance for at least ten out of
the 12 months immediately preceding the participant's 61st month
on assistance. If only one parent in a two-parent assistance
unit fails to be in compliance ten out of the 12 months
immediately preceding the participant's 61st month, the county
shall give the assistance unit the option of disqualifying the
noncompliant parent. If the noncompliant participant is
disqualified, the assistance unit must be treated as a
one-parent assistance unit for the purposes of meeting the work
requirements under this subdivision and the assistance unit's
MFIP grant shall be calculated using the shared household
standard under section 256J.08, subdivision 82a.
(e) The employment plan developed under section 256J.52,
subdivision 5, for participants under this subdivision must
contain the number of hours specified in paragraph (a) related
to employment and work activities. The job counselor and the
participant must sign the employment plan to indicate agreement
between the job counselor and the participant on the contents of
the plan.
(f) Participants who fail to meet the requirements in
paragraph (a), without good cause under section 256J.57, shall
be sanctioned or permanently disqualified under subdivision 6.
Good cause may only be granted for that portion of the month for
which the good cause reason applies. Participants must meet all
remaining requirements in the approved employment plan or be
subject to sanction or permanent disqualification.
(g) If the noncompliance with an employment plan is due to
the involuntary loss of employment, the participant is exempt
from the hourly employment requirement under this subdivision
for one month. Participants must meet all remaining
requirements in the approved employment plan or be subject to
sanction or permanent disqualification. This exemption is
available to one-parent assistance units two times in a 12-month
period, and two-parent assistance units, two times per parent in
a 12-month period.
(h) This subdivision expires on June 30, 2004.
Sec. 11. Minnesota Statutes 2001 Supplement, section
256J.425, is amended by adding a subdivision to read:
Subd. 4a. [HARDSHIP EXTENSION PENDING DOCUMENTATION.] If
the documentation needed to determine if a participant is
eligible for a hardship extension under subdivision 2 or 3 is
not available by the 60th month, the county agency may extend
the participant pending receipt of the documentation if the
county believes the participant is likely to qualify for a
hardship extension and the participant is cooperating with
efforts to obtain the documentation. If the participant is
found to be not eligible for an extension, the participant may
be responsible for an overpayment.
Sec. 12. Minnesota Statutes 2001 Supplement, section
256J.425, subdivision 5, is amended to read:
Subd. 5. [ACCRUAL OF CERTAIN EXEMPT MONTHS.] (a) A
participant who received TANF assistance that counted towards
the federal 60-month time limit while the participant was exempt
under section 256J.56, paragraph (a), clause (7), from
employment and training services requirements and who is no
longer eligible for assistance under a hardship extension under
subdivision 2, paragraph (a), clause (3), is eligible for
assistance under a hardship extension for a period of time equal
to the number of months that were counted toward the federal
60-month time limit while the participant was exempt under
section 256J.56, paragraph (a), clause (7), from the employment
and training services requirements.
(b) A participant who received TANF assistance that counted
towards the federal 60-month time limit while the participant
met the state time limit exemption criteria under section
256J.42, subdivision 4 or 5, is eligible for assistance under a
hardship extension for a period of time equal to the number of
months that were counted toward the federal 60-month time limit
while the participant met the state time limit exemption
criteria under section 256J.42, subdivision 5.
(c) A participant who received TANF assistance that counted
towards the federal 60-month time limit while the participant
was exempt under section 256J.56, paragraph (a), clause (3),
from employment and training services requirements, who
demonstrates at the time of the case review required under
section 256J.42, subdivision 6, that the participant met the
exemption criteria under section 256J.56, paragraph (a), clause
(7), during one or more months the participant was exempt under
section 256J.56, paragraph (a), clause (3), before or after July
1, 2002, is eligible for assistance under a hardship extension
for a period of time equal to the number of months that were
counted toward the federal 60-month time limit during the time
the participant met the criteria under section 256J.56,
paragraph (a), clause (7). At the time of the case review, a
county agency must explain to the participant the basis for
receiving a hardship extension based on the accrual of exempt
months. The participant must provide documentation necessary to
enable the county agency to determine whether the participant is
eligible to receive a hardship extension based on the accrual of
exempt months or authorize a county agency to verify the
information.
Sec. 13. Minnesota Statutes 2000, section 256L.01,
subdivision 4, is amended to read:
Subd. 4. [GROSS INDIVIDUAL OR GROSS FAMILY INCOME.] (a)
"Gross individual or gross family income" for farm and nonfarm
self-employed means income calculated using as the baseline the
adjusted gross income reported on the applicant's federal income
tax form for the previous year and adding back in reported
depreciation, carryover loss, and net operating loss amounts
that apply to the business in which the family is currently
engaged.
(b) "Gross individual or gross family income" for farm
self-employed means income calculated using as the baseline the
adjusted gross income reported on the applicant's federal income
tax form for the previous year and adding back in reported
depreciation amounts that apply to the business in which the
family is currently engaged.
(c) Applicants shall report the most recent financial
situation of the family if it has changed from the period of
time covered by the federal income tax form. The report may be
in the form of percentage increase or decrease.
Sec. 14. Laws 2001, First Special Session chapter 9,
article 2, section 74, is amended to read:
Sec. 74. [ELIGIBILITY EXCEPTION TO THE PRESCRIPTION DRUG
PROGRAM.]
Notwithstanding the requirements of Minnesota Statutes,
section 256.955, subdivision 2, paragraph (d), from March 1,
2001, to June 30, 2002 2003, the definition of a "qualified
individual" in the prescription drug program established under
Minnesota Statutes, section 256.955, shall include an individual
who:
(1) was enrolled in the prescription drug program prior to
March 1, 2001;
(2) was enrolled in a Medicare risk plan prior to March 1,
2001, to which an annual prescription drug benefit of $400 was
added on March 1, 2001; and
(3) meets the requirements described in Minnesota Statutes,
section 256.955, subdivision 2, paragraph (d), clauses (1) and
(5), and subdivision 2a.
The prescription benefit offered by the Medicare risk plan shall
be primary to benefits provided under the prescription drug
program.
ARTICLE 11
GENERAL FUND CONVERSION TO BOND FUNDS
Section 1. [INTENT.]
This article intends to return to the unreserved general
fund $75,043,000 by changing the fund source of the projects
listed in this article in the amounts shown in sections 2 to 14,
by decreasing the appropriation from the general fund and by
appropriating an equal amount from the aggregate of the bond
proceeds fund and the transportation fund. This action changes
the designation of the fund sources made under the cumulative
effect of Laws 1998, chapter 404; Laws 1999, chapter 250; and
Laws 2000, chapters 479 and 492. This article also makes a new
appropriation of $77,000 from the bond proceeds fund for bond
sale expenses in connection with the bonds authorized in this
article.
Sec. 2. [CAPITAL IMPROVEMENT APPROPRIATIONS.]
The sums in the column under "APPROPRIATIONS" are
appropriated from the bond proceeds fund or other named fund to
the state agencies or officials indicated, to be spent for
public purposes, including to acquire and to better public land
and buildings and other public improvements of a capital nature,
as specified in this article.
SUMMARY
UNIVERSITY OF MINNESOTA $ 500,000
CHILDREN, FAMILIES, AND LEARNING 500,000
NATURAL RESOURCES 6,973,000
WATER AND SOIL RESOURCES BOARD 300,000
ADMINISTRATION 43,350,000
CAPITOL AREA ARCHITECTURAL AND
PLANNING BOARD 250,000
AMATEUR SPORTS COMMISSION 690,000
TRANSPORTATION 13,590,000
HUMAN SERVICES 1,500,000
CORRECTIONS 250,000
TRADE AND ECONOMIC DEVELOPMENT 5,590,000
MINNESOTA HISTORICAL SOCIETY 1,550,000
BOND SALE EXPENSES 77,000
TOTAL $ 75,120,000
Bond Proceeds Fund 61,530,000
Transportation Fund 13,590,000
APPROPRIATIONS
$
Sec. 3. UNIVERSITY OF MINNESOTA 500,000
To the board of regents of the
University of Minnesota for 1998 Higher
Education Asset Preservation and
Replacement.
Sec. 4. CHILDREN, FAMILIES, AND LEARNING 500,000
To the commissioner of children,
families, and learning for 1998 Early
Childhood Learning Facilities.
Sec. 5. NATURAL RESOURCES
Subdivision 1. To the commissioner
of natural resources for the purposes
specified in this section 6,973,000
Subd. 2. 1998 Park Building Rehabilitation 500,000
Subd. 3. 1998 Park Betterment
and Rehabilitation 500,000
Subd. 4. 1998 Forest Roads and Bridges 750,000
Subd. 5. 1998 Metro Greenways Acquisition 2,000,000
Subd. 6. Safe Harbors Program 3,223,000
Sec. 6. BOARD OF WATER AND
SOIL RESOURCES 300,000
To the board of water and soil
resources for local road replacement.
Sec. 7. ADMINISTRATION
Subdivision 1. To the commissioner of
administration for the purposes specified
in this section 45,350,000
Subd. 2. 2000 Asset Preservation 350,000
Subd. 3. 2000 Bureau of Criminal
Apprehension Facility 40,000,000
Subd. 4. 2000 Property Acquisition 450,000
Subd. 5. 1998 Asset Preservation 1,250,000
Subd. 6. 1998 Real Property Acquisition 1,000,000
Subd. 7. 1998 BCA Land Acquisition 300,000
Sec. 8. CAPITOL AREA ARCHITECTURAL
AND PLANNING BOARD 250,000
To the commissioner of administration
for the HHH Memorial.
Sec. 9. AMATEUR SPORTS COMMISSION 690,000
To the amateur sports commission for
the Giants Ridge Facility.
Sec. 10. TRANSPORTATION
Subdivision 1. To the commissioner of
transportation for the purposes specified
in this section 13,590,000
This appropriation is from the
transportation fund.
Subd. 2. 2000 County and Local Bridges 13,000,000
Subd. 3. 1998 CSAH Highway 90 590,000
Sec. 11. HUMAN SERVICES 1,500,000
To the commissioner of administration
for 1998 Asset Preservation.
Sec. 12. CORRECTIONS 250,000
To the commissioner of administration
for 1998 Asset Preservation.
Sec. 13. TRADE AND ECONOMIC DEVELOPMENT 5,590,000
To the commissioner of trade and
economic development for 2000
Wastewater Infrastructure.
Sec. 14. MINNESOTA HISTORICAL SOCIETY
Subdivision 1. To the Minnesota
historical society for the purposes
specified in this section 1,550,000
Subd. 2. 1998 Historic Site
Preservation and Repair 850,000
Subd. 3. Split Rock Lighthouse 700,000
Sec. 15. BOND SALE EXPENSES 77,000
To the commissioner of finance for
bond sale expenses under Minnesota
Statutes, section 16A.641, subdivision 8.
Sec. 16. [IDENTICAL PROJECTS.]
The purpose and use of appropriations in this article are
for the same purpose and use and for identical projects as
authorized in Laws 1998, chapter 404; Laws 1999, chapter 250;
and Laws 2000, chapters 479 and 492. Except for the fund source
of unspent parts of the appropriations listed in this article,
this article does not change or limit the purpose and use of the
appropriations and related requirements in Laws 1998, chapter
404; Laws 1999, chapter 250; and Laws 2000, chapters 479 and 492.
Sec. 17. [BOND SALE AUTHORIZATIONS.]
Subdivision 1. [BOND PROCEEDS FUND.] To provide the money
appropriated in this article from the bond proceeds fund, the
commissioner of finance shall sell and issue bonds of the state
in an amount up to $61,530,000 in the manner, upon the terms,
and with the effect prescribed by Minnesota Statutes, sections
16A.631 to 16A.675, and by the Minnesota Constitution, article
XI, sections 4 to 7.
Subd. 2. [TRANSPORTATION FUND.] To provide the money
appropriated in this article from the transportation fund, the
commissioner of finance shall sell and issue bonds of the state
in an amount up to $13,590,000 in the manner, upon the terms,
and with the effect prescribed by Minnesota Statutes, sections
16A.631 to 16A.675, and by the Minnesota Constitution, article
XI, sections 4 to 7. The proceeds of the bonds, except accrued
interest and any premium received on the sale of the bonds, must
be credited to a bond proceeds account in the state
transportation fund.
Sec. 18. [CANCELLATION TO GENERAL FUND.]
Money appropriated from the general fund pursuant to 1998,
1999, and 2000 acts and not yet spent for the projects listed in
this article is canceled to the general fund in the amount shown
for each project.
Sec. 19. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
Presented to the governor May 15, 2002
Vetoed by the governor May 18, 2002, 7:20 p.m.
Reconsidered and approved by the legislature after the
governor's veto May 18, 2002
Official Publication of the State of Minnesota
Revisor of Statutes