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                            CHAPTER 489-H.F.No. 3800 
                  An act relating to education; providing for family and 
                  early childhood education; providing for disclosure of 
                  data; changing requirements for child care assistance 
                  and child care programs; making changes to adult basic 
                  education programs; modifying child care licensing and 
                  inservice training requirements; changing eligibility 
                  for individual development accounts; creating task 
                  forces; authorizing commissioner of children, 
                  families, and learning to make certain grants; 
                  providing for kindergarten through grade 12 general 
                  education, special programs, employment and 
                  transitions, facilities and technology, educational 
                  excellence and other policy, nutrition and other 
                  programs, fund transfers, libraries, and technical, 
                  conforming, and clarifying amendments; providing for 
                  higher education; requiring a study and report; 
                  providing relief to campuses experiencing increased 
                  health care costs; appropriating money to Minnesota 
                  state colleges and universities to fund increased 
                  enrollment; appropriating money; amending Minnesota 
                  Statutes 1998, sections 119B.03, by adding a 
                  subdivision; 120A.22, subdivision 3; 120B.13, 
                  subdivision 4; 121A.61, subdivision 3; 122A.31, 
                  subdivision 4; 122A.68, subdivision 4; 123A.485, 
                  subdivision 4; 123B.02, by adding a subdivision; 
                  123B.04, subdivision 2; 123B.143, subdivision 1; 
                  123B.51, subdivision 6; 123B.52, by adding a 
                  subdivision; 123B.57, subdivision 1; 123B.71, 
                  subdivision 10; 123B.72, subdivision 3; 123B.75, 
                  subdivision 5; 123B.77, subdivision 3; 123B.79, 
                  subdivision 7; 123B.85, subdivision 1; 123B.88, 
                  subdivision 3; 123B.90, subdivision 1; 124D.03, 
                  subdivision 1; 124D.081, subdivision 6; 124D.10, 
                  subdivision 9; 124D.111, subdivision 1; 124D.16, 
                  subdivision 1; 124D.44; 124D.454, subdivisions 2, 4, 
                  6, 7, and 10; 124D.52, subdivisions 1, 2, 3, and by 
                  adding subdivisions; 124D.86, subdivision 6, and by 
                  adding subdivisions; 124D.88, by adding a subdivision; 
                  124D.892, subdivision 3; 125A.76, subdivision 7; 
                  126C.12, subdivision 2; 126C.16, subdivision 3; 
                  126C.40, subdivision 1; 126C.69, subdivision 15; 
                  127A.05, subdivision 4; 127A.41, subdivisions 8 and 9; 
                  128D.11, subdivision 3; 136A.125, by adding a 
                  subdivision; 169.447, by adding a subdivision; 
                  169.448, subdivision 3; 171.06, subdivision 2; 
                  171.321, subdivisions 2, 3, 4, and 5; 245A.14, 
                  subdivision 4, and by adding subdivisions; and 471.15; 
                  Minnesota Statutes 1999 Supplement, sections 13.32, 
                  subdivision 3; 119B.011, subdivisions 12, 15, as 
                  amended, and 20; 119B.03, subdivision 4; 119B.05, 
                  subdivision 1; 120B.30, subdivision 1; 122A.23; 
                  122A.31, subdivision 1; 122A.61, subdivision 1; 
                  123B.54; 123B.83, subdivision 4; 123B.90, subdivision 
                  2; 123B.91, subdivision 1; 124D.10, subdivisions 3, 8, 
                  11, 15, and 23; 124D.11, subdivisions 1 and 6; 
                  124D.1155, subdivision 2; 124D.128, subdivision 2; 
                  124D.221, subdivision 2; 124D.453, subdivision 3; 
                  124D.53, subdivision 3; 124D.65, subdivision 4; 
                  124D.68, subdivision 9; 124D.84, subdivision 1; 
                  124D.86, subdivisions 1 and 3; 124D.87; 124D.88, 
                  subdivision 3; 125A.023, subdivisions 3 and 5; 
                  125A.027, subdivision 3; 125A.08; 125A.15; 125A.51; 
                  125A.76, subdivisions 1 and 2; 125A.79, subdivisions 
                  2, 5, and 8; 125A.80; 125B.21, subdivision 3; 126C.05, 
                  subdivisions 5 and 6; 126C.052; 126C.10, subdivisions 
                  2, 13, 14, 23, 24, 25, and 26; 126C.12, subdivision 1; 
                  126C.17, subdivision 9; 126C.40, subdivision 6; 
                  126C.44, as amended; 127A.05, subdivision 6; 127A.42, 
                  subdivision 3; 127A.45, subdivision 12a; 127A.51; 
                  169.974, subdivision 2; 171.05, subdivision 2; 
                  181A.04, subdivision 6; and 260C.143, subdivision 4; 
                  Laws 1992, chapter 499, article 7, sections 31, as 
                  amended; and 32; Laws 1997, chapter 157, section 71, 
                  as amended; Laws 1997, First Special Session chapter 
                  4, article 8, section 4, as amended; Laws 1998, First 
                  Special Session chapter 1, article 1, sections 10, 
                  subdivision 1, as amended; and 11, subdivisions 1 and 
                  2, as amended; Laws 1999, chapter 205, article 1, 
                  sections 65 and 71, subdivisions 3, 7, and 9; article 
                  2, section 4, subdivisions 2 and 3; article 4, section 
                  12, subdivisions 5, 6, and 7; chapter 214, article 1, 
                  section 4, subdivision 2; 216, article 4, section 12; 
                  chapter 241, article 1, sections 68, subdivisions 2, 
                  4, and 5; 69; and 70; article 2, section 60, 
                  subdivisions 7, 9, 12, 13, 14, 17, and 19; article 3, 
                  sections 3, subdivisions 3 and 4; and 5; article 4, 
                  sections 27, subdivisions 2, 3, 4, 5, 10, and 11; and 
                  29; article 5, section 18, subdivisions 5 and 6; 
                  article 6, section 14, subdivisions 2, 3, 4, and 5; 
                  article 7, section 2, subdivisions 2 and 5; article 8, 
                  section 4, subdivisions 4 and 5; article 9, section 
                  49; and article 10, section 6; proposing coding for 
                  new law in Minnesota Statutes, chapters 121A; 123B; 
                  124D; 125B; and 134; repealing Minnesota Statutes 
                  1998, section 124D.53; Minnesota Statutes 1999 
                  Supplement, sections 124D.1155, subdivision 5; Laws 
                  1998, First Special Session chapter 1, article 1, 
                  section 10, subdivision 2, as amended; Laws 1999, 
                  chapter 241, article 9, sections 35 and 36; article 
                  10, section 5; chapter 245, article 4, section 3; 
                  Minnesota Rules, parts 3535.9920; 4830.9005; 
                  4830.9010; 4830.9015; 4830.9020; and 4830.9030. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                      FAMILY AND EARLY CHILDHOOD EDUCATION 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        13.32, subdivision 3, is amended to read: 
           Subd. 3.  [PRIVATE DATA; WHEN DISCLOSURE IS PERMITTED.] 
        Except as provided in subdivision 5, educational data is private 
        data on individuals and shall not be disclosed except as follows:
           (a) Pursuant to section 13.05; 
           (b) Pursuant to a valid court order; 
           (c) Pursuant to a statute specifically authorizing access 
        to the private data; 
           (d) To disclose information in health and safety 
        emergencies pursuant to the provisions of United States Code, 
        title 20, section 1232g(b)(1)(I) and Code of Federal 
        Regulations, title 34, section 99.36; 
           (e) Pursuant to the provisions of United States Code, title 
        20, sections 1232g(b)(1), (b)(4)(A), (b)(4)(B), (b)(1)(B), 
        (b)(3) and Code of Federal Regulations, title 34, sections 
        99.31, 99.32, 99.33, 99.34, and 99.35; 
           (f) To appropriate health authorities to the extent 
        necessary to administer immunization programs and for bona fide 
        epidemiologic investigations which the commissioner of health 
        determines are necessary to prevent disease or disability to 
        individuals in the public educational agency or institution in 
        which the investigation is being conducted; 
           (g) When disclosure is required for institutions that 
        participate in a program under title IV of the Higher Education 
        Act, United States Code, title 20, chapter 1092; 
           (h) To the appropriate school district officials to the 
        extent necessary under subdivision 6, annually to indicate the 
        extent and content of remedial instruction, including the 
        results of assessment testing and academic performance at a 
        post-secondary institution during the previous academic year by 
        a student who graduated from a Minnesota school district within 
        two years before receiving the remedial instruction; 
           (i) To appropriate authorities as provided in United States 
        Code, title 20, section 1232g(b)(1)(E)(ii), if the data concern 
        the juvenile justice system and the ability of the system to 
        effectively serve, prior to adjudication, the student whose 
        records are released; provided that the authorities to whom the 
        data are released submit a written request for the data that 
        certifies that the data will not be disclosed to any other 
        person except as authorized by law without the written consent 
        of the parent of the student and the request and a record of the 
        release are maintained in the student's file; 
           (j) To volunteers who are determined to have a legitimate 
        educational interest in the data and who are conducting 
        activities and events sponsored by or endorsed by the 
        educational agency or institution for students or former 
        students; 
           (k) To provide student recruiting information, from 
        educational data held by colleges and universities, as required 
        by and subject to Code of Federal Regulations, title 32, section 
        216; or 
           (l) To the juvenile justice system if information about the 
        behavior of a student who poses a risk of harm is reasonably 
        necessary to protect the health or safety of the student or 
        other individuals; or 
           (m) With respect to social security numbers of students in 
        the adult basic education system, to Minnesota state colleges 
        and universities and the department of economic security for the 
        purpose and in the manner described in section 124D.52, 
        subdivision 7. 
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        119B.011, subdivision 12, is amended to read: 
           Subd. 12.  [EMPLOYMENT PLAN.] "Employment plan" means 
        employment of recipients financially eligible for child care 
        assistance, or other work activities defined under section 
        256J.49, approved in an employability development, job search 
        support plan, or employment plan that is developed by the county 
        agency, if it is acting as an employment and training service 
        provider, or by an employment and training service provider 
        certified by the commissioner of economic security or an 
        individual designated by the county to provide employment and 
        training services.  The plans and designation of a service 
        provider must meet the requirements of this chapter and chapter 
        256J or chapter 256K, Minnesota Rules, parts 3400.0010 to 
        3400.0230, and other programs that provide federal reimbursement 
        for child care services. 
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        119B.011, subdivision 15, as amended by Laws 2000, chapter 260, 
        section 19, is amended to read: 
           Subd. 15.  [INCOME.] "Income" means earned or unearned 
        income received by all family members, including public 
        assistance cash benefits and at-home infant care subsidy 
        payments, unless specifically excluded.  The following are 
        excluded from income:  funds used to pay for health insurance 
        premiums for family members, Supplemental Security Income, 
        scholarships, work-study income, and grants that cover costs or 
        reimbursement for tuition, fees, books, and educational 
        supplies; student loans for tuition, fees, books, supplies, and 
        living expenses; state and federal earned income tax credits; 
        in-kind income such as food stamps, energy assistance, foster 
        care assistance, medical assistance, child care assistance, and 
        housing subsidies; earned income of full full-time or part-time 
        students up to the age of 19, who have not earned a high school 
        diploma or GED high school equivalency diploma including 
        earnings from summer employment; grant awards under the family 
        subsidy program; nonrecurring lump sum income only to the extent 
        that it is earmarked and used for the purpose for which it is 
        paid; and any income assigned to the public authority according 
        to section 256.741. 
           Sec. 4.  Minnesota Statutes 1999 Supplement, section 
        119B.011, subdivision 20, is amended to read: 
           Subd. 20.  [TRANSITION YEAR FAMILIES.] "Transition year 
        families" means families who have received MFIP assistance, or 
        who were eligible to receive MFIP assistance after choosing to 
        discontinue receipt of the cash portion of MFIP assistance under 
        section 256J.31, subdivision 12, for at least three of the last 
        six months before losing eligibility for MFIP due to increased 
        income from employment or child or spousal support or families 
        participating in work first under chapter 256K who meet the 
        requirements of section 256K.07.  Transition year child care may 
        be used to support employment or job search.  Transition year 
        child care is not available to families who have been 
        disqualified from MFIP due to fraud.  
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        119B.03, subdivision 4, is amended to read: 
           Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
        care assistance under the basic sliding fee program must be 
        given to eligible non-MFIP families who do not have a high 
        school or general equivalency diploma or who need remedial and 
        basic skill courses in order to pursue employment or to pursue 
        education leading to employment and who need child care 
        assistance to participate in the education program.  Within this 
        priority, the following subpriorities must be used: 
           (1) child care needs of minor parents; 
           (2) child care needs of parents under 21 years of age; and 
           (3) child care needs of other parents within the priority 
        group described in this paragraph. 
           (b) Second priority must be given to parents who have 
        completed their MFIP or work first transition year. 
           (c) Third priority must be given to families who are 
        eligible for portable basic sliding fee assistance through the 
        portability pool under subdivision 9. 
           Sec. 6.  Minnesota Statutes 1998, section 119B.03, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [ALLOCATION DUE TO INCREASED FUNDING.] When 
        funding increases are implemented within a calendar year, every 
        county must receive an allocation at least equal and 
        proportionate to its original allocation for the same time 
        period.  The remainder of the allocation must be recalculated to 
        reflect the funding increase, according to formulas identified 
        in subdivision 6. 
           Sec. 7.  Minnesota Statutes 1999 Supplement, section 
        119B.05, subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBLE PARTICIPANTS.] Families eligible 
        for child care assistance under the MFIP child care program are: 
           (1) MFIP participants who are employed or in job search and 
        meet the requirements of section 119B.10; 
           (2) persons who are members of transition year families 
        under section 119B.011, subdivision 20; 
           (3) families who are participating in employment 
        orientation or job search, or other employment or training 
        activities that are included in an approved employability 
        development plan under chapter 256K; 
           (4) MFIP families who are participating in work job search, 
        job support, employment, or training activities as required in 
        their job search support or employment plan, or in appeals, 
        hearings, assessments, or orientations according to chapter 
        256J.  Child care assistance to support work activities as 
        described in section 256J.49 must be available according to 
        sections 119B.011, subdivision 11, 124D.13, 256E.08, and 611A.32 
        and titles IVA, IVB, IVE, and XX of the Social Security Act; and 
           (5) MFIP families who are participating in social services 
        activities under chapter 256J or 256K as required in their 
        employment plan approved according to chapter 256J or 256K; and 
           (6) families who are participating in programs as required 
        in tribal contracts under section 119B.02, subdivision 2, or 
        256.01, subdivision 2. 
           Sec. 8.  Minnesota Statutes 1998, section 124D.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] By February 
        15, 1992, for the 1991-1992 school year or by May 1 preceding 
        subsequent school years, a district must submit to the 
        commissioners of children, families, and learning, and health A 
        school district shall biennially by May 1 submit to the 
        commissioners of children, families, and learning and health the 
        program plan required under this subdivision.  As determined by 
        the commissioners, one-half of the districts shall first submit 
        the plan by May 1 of the 2000-2001 school year and one-half of 
        the districts shall first submit the plan by May 1 of the 
        2001-2002 school year.  The program plan must include: 
           (1) a description of the services to be provided; 
           (2) a plan to ensure children at greatest risk receive 
        appropriate services; 
           (3) a description of procedures and methods to be used to 
        coordinate public and private resources to maximize use of 
        existing community resources, including school districts, health 
        care facilities, government agencies, neighborhood 
        organizations, and other resources knowledgeable in early 
        childhood development; 
           (4) comments about the district's proposed program by the 
        advisory council required by section 124D.15, subdivision 7; and 
           (5) agreements with all participating service providers.  
           Each commissioner may review and comment on the program, 
        and make recommendations to the commissioner of children, 
        families, and learning, within 30 days of receiving the plan. 
           Sec. 9.  Minnesota Statutes 1999 Supplement, section 
        124D.221, subdivision 2, is amended to read: 
           Subd. 2.  [PRIORITY NEIGHBORHOODS.] For grants in 
        Minneapolis and St. Paul, the commissioner must give priority to 
        neighborhoods in this subdivision.  In Minneapolis, priority 
        neighborhoods are Near North, Hawthorne, Sumner-Glenwood, 
        Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland, 
        McKinley, Waite Park, Sheridan, Holland, Lyndale, Folwell, and 
        Phillips.  In St. Paul, priority neighborhoods are 
        Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons 
        Bluff, and the West Side.  
           Sec. 10.  [124D.518] [ADULT BASIC EDUCATION AID 
        DEFINITIONS.] 
           Subdivision 1.  [APPLICABILITY.] The definitions in this 
        section apply to sections 124D.52 to 124D.531.  
           Subd. 2.  [ADULT BASIC EDUCATION CONSORTIUM.] "Adult basic 
        education consortium" means a voluntary association of school 
        districts, public agencies, or nonprofit organizations that work 
        together to provide coordinated adult basic education services 
        in a designated geographic area, and that act as a fiscal entity 
        providing adult basic education services. 
           Subd. 3.  [CONTACT HOURS.] (a) "Contact hours" means the 
        number of hours during which a student was engaged in learning 
        activities provided by an approved adult education program.  
        Contact hours excludes homework, but includes interactive 
        distance learning.  The commissioner may only reallocate contact 
        hours among programs to adjust for changes in program membership 
        between the first prior program year and the current program 
        year based on the actual contact hours reported for the first 
        prior program year. 
           (b) For revenue beginning in fiscal year 2002, contact 
        hours for a provider of adult basic education services funded in 
        fiscal year 2000, but not eligible for basic population aid in 
        fiscal year 2001, is computed by multiplying the provider's 
        contact hours by 1.03. 
           (c) For aid in fiscal year 2001, contact hours in fiscal 
        year 2000 equals the number of full-time equivalent learners 
        times the contact hours.  A level one full-time equivalent 
        learner is equal to 240 contact hours and a level two full-time 
        learner is equal to 408 contact hours. 
           Subd. 4.  [FIRST PRIOR PROGRAM YEAR.] "First prior program 
        year" means the period from May 1 of the second prior fiscal 
        year through April 30 of the first prior fiscal year. 
           Subd. 5.  [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 
        means allowable adult basic education expenses of a program that 
        are not covered by payments from federal or private for-profit 
        sources. 
           Sec. 11.  Minnesota Statutes 1998, section 124D.52, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM REQUIREMENTS.] An adult basic 
        education program is a day or evening program offered by a 
        district that is for people over 16 years of age who do not 
        attend an elementary or secondary school.  The program offers 
        academic instruction necessary to earn a high school diploma or 
        equivalency certificate.  Tuition and fees may not be charged to 
        a learner for instruction paid under this section, except for a 
        security deposit to assure return of materials, supplies, and 
        equipment. 
           Each approved adult basic education program must develop a 
        memorandum of understanding with the local workforce development 
        centers located in the approved program's service delivery 
        area.  The memorandum of understanding must describe how the 
        adult basic education program and the workforce development 
        centers will cooperate and coordinate services to provide 
        unduplicated, efficient, and effective services to clients.  
           Adult basic education aid must be spent for adult basic 
        education purposes as specified in sections 124D.518 to 124D.531.
           Sec. 12.  Minnesota Statutes 1998, section 124D.52, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
        section, a district, a consortium of districts, or a private 
        nonprofit organization must submit an application by June 1 
        describing the program, on a form provided by the department.  
        The program must be approved by the commissioner according to 
        the following criteria:  
           (1) how the needs of different levels of learning will be 
        met; 
           (2) for continuing programs, an evaluation of results; 
           (3) anticipated number and education level of participants; 
           (4) coordination with other resources and services; 
           (5) participation in a consortium, if any, and money 
        available from other participants; 
           (6) management and program design; 
           (7) volunteer training and use of volunteers; 
           (8) staff development services; 
           (9) program sites and schedules; and 
           (10) program expenditures that qualify for aid; 
           (11) program ability to provide data related to learner 
        outcomes as required by law; and 
           (12) a copy of the memorandum of understanding described in 
        subdivision 1 submitted to the commissioner.  
           (b) The commissioner may grant adult basic education funds 
        to a private, nonprofit organization to provide services that 
        are not offered by a district or that are supplemental to a 
        district's program.  The program provided under this provision 
        must be approved and funded according to the same criteria used 
        for district programs. 
           (c) Adult basic education programs may be approved under 
        this subdivision for up to five years.  Five-year program 
        approval must be granted to an applicant who has demonstrated 
        the capacity to: 
           (1) offer comprehensive learning opportunities and support 
        service choices appropriate for and accessible to adults at all 
        basic skill need levels; 
           (2) provide a participatory and experiential learning 
        approach based on the strengths, interests, and needs of each 
        adult, that enables adults with basic skill needs to: 
           (i) identify, plan for, and evaluate their own progress 
        toward achieving their defined educational and occupational 
        goals; 
           (ii) master the basic academic reading, writing, and 
        computational skills, as well as the problem-solving, decision 
        making, interpersonal effectiveness, and other life and learning 
        skills they need to function effectively in a changing society; 
           (iii) locate and be able to use the health, governmental, 
        and social services and resources they need to improve their own 
        and their families' lives; and 
           (iv) continue their education, if they desire, to at least 
        the level of secondary school completion, with the ability to 
        secure and benefit from continuing education that will enable 
        them to become more employable, productive, and responsible 
        citizens; 
           (3) plan, coordinate, and develop cooperative agreements 
        with community resources to address the needs that the adults 
        have for support services, such as transportation, flexible 
        course scheduling, convenient class locations, and child care; 
           (4) collaborate with business, industry, labor unions, and 
        employment-training agencies, as well as with family and 
        occupational education providers, to arrange for resources and 
        services through which adults can attain economic 
        self-sufficiency; 
           (5) provide sensitive and well trained adult education 
        personnel who participate in local, regional, and statewide 
        adult basic education staff development events to master 
        effective adult learning and teaching techniques; 
           (6) participate in regional adult basic education peer 
        program reviews and evaluations; and 
           (7) submit accurate and timely performance and fiscal 
        reports; 
           (8) submit accurate and timely reports related to program 
        outcomes and learner follow-up information; and 
           (9) spend adult basic education aid on adult basic 
        education purposes only, which are specified in sections 
        124D.518 to 124D.531.  
           (c) The commissioner shall require each district to provide 
        notification by February 1, 2001, of its intent to apply for 
        funds under this section as a single district or as part of an 
        identified consortium of districts.  A district receiving funds 
        under this section must notify the commissioner by February 1 of 
        its intent to change its application status for applications due 
        the following June 1. 
           Sec. 13.  Minnesota Statutes 1998, section 124D.52, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
        districts, or private nonprofit organization providing adult 
        basic education programs must establish and maintain accounts 
        separate from all other district accounts for the receipt and 
        disbursement of all funds related to these programs.  All 
        revenue received pursuant to this section must be utilized 
        solely for the purposes of adult basic education programs.  
        Federal and State aid plus levy must not equal more than 100 
        percent of the actual cost unreimbursed expenses of providing 
        these programs, excluding in-kind costs.  
           Sec. 14.  Minnesota Statutes 1998, section 124D.52, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 
        ADULT BASIC EDUCATION PROGRAMS.] (a) A school district, or adult 
        basic education consortium that receives revenue under section 
        124D.531, may deliver English as a second language, citizenship, 
        or other adult education programming in collaboration with 
        community-based and nonprofit organizations located within its 
        district or region, and with correctional institutions.  The 
        organization or correctional institution must have the 
        demonstrated capacity to offer education programs for adults.  
        Community-based or nonprofit organizations must meet the 
        criteria in paragraph (b), or have prior experience.  A 
        community-based or nonprofit organization or a correctional 
        institution may be reimbursed for unreimbursed expenses as 
        defined in section 124D.518, subdivision 5, for the 
        administration of English as a second language or adult basic 
        education programs, not to exceed eight percent of the total 
        funds provided by a school district or adult basic education 
        consortium.  The administrative reimbursement for a school 
        district or adult basic education consortium that delivers 
        services cooperatively with a community-based or nonprofit 
        organization or correctional institution is limited to five 
        percent of the program aid, not to exceed the unreimbursed 
        expenses of administering programs delivered by community-based 
        or nonprofit organizations or correctional institutions.  
           (b) A community-based organization or nonprofit 
        organization that delivers education services under this section 
        must demonstrate that it has met the following criteria: 
           (1) be legally established as a nonprofit organization; 
           (2) have an established system for fiscal accounting and 
        reporting that is consistent with the department of children, 
        families, and learning's adult basic education completion report 
        and reporting requirements under section 124D.531; 
           (3) require all instructional staff to complete a training 
        course in teaching adult learners; and 
           (4) develop a learning plan for each student that 
        identifies defined educational and occupational goals with 
        measures to evaluate progress.  
           Sec. 15.  Minnesota Statutes 1998, section 124D.52, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [PERFORMANCE TRACKING SYSTEM.] (a) By July 1, 
        2000, each approved adult basic education program must develop 
        and implement a performance tracking system to provide 
        information necessary to comply with federal law and serve as 
        one means of assessing the effectiveness of adult basic 
        education programs.  The tracking system must be designed to 
        collect data on the following core outcomes for learners who 
        have completed participation in the adult basic education 
        program: 
           (1) demonstrated improvements in literacy skill levels in 
        reading, writing, speaking the English language, numeracy, 
        problem solving, English language acquisition, and other 
        literacy skills; 
           (2) placement in, retention in, or completion of 
        post-secondary education, training, unsubsidized employment, or 
        career advancement; and 
           (3) receipt of a secondary school diploma or its recognized 
        equivalent. 
           (b) A district, group of districts, state agency, or 
        private nonprofit organization providing an adult basic 
        education program may meet this requirement by developing a 
        tracking system based on either or both of the following 
        methodologies: 
           (1) conducting a reliable follow-up survey; or 
           (2) submitting student information, including social 
        security numbers for data matching. 
           Data related to obtaining employment must be collected in 
        the first quarter following program completion or can be 
        collected while the student is enrolled, if known.  Data related 
        to employment retention must be collected in the third quarter 
        following program exit.  Data related to any other specified 
        outcome may be collected at any time during a program year. 
           (c) When a student in a program is requested to provide the 
        student's social security number, the student must be notified 
        in a written form easily understandable to the student that: 
           (1) providing the social security number is optional and no 
        adverse action may be taken against the student if the student 
        chooses not to provide the social security number; 
           (2) the request is made under section 124D.52, subdivision 
        7; 
           (3) if the student provides the social security number, it 
        will be used to assess the effectiveness of the program by 
        tracking the student's subsequent career; and 
           (4) the social security number will be shared with the 
        department of children, families, and learning; Minnesota state 
        colleges and universities; and the department of economic 
        security in order to accomplish the purposes of this section and 
        will not be used for any other purpose or reported to any other 
        governmental entities. 
           (d) Annually a district, group of districts, state agency, 
        or private nonprofit organization providing programs under this 
        section must forward the tracking data collected to the 
        department of children, families, and learning.  For the 
        purposes of longitudinal studies on the employment status of 
        former students under this section, the department of children, 
        families, and learning must forward the social security numbers 
        to the department of economic security to electronically match 
        the social security numbers of former students with wage detail 
        reports filed under section 268.044.  The results of data 
        matches must, for purposes of this section and consistent with 
        the requirements of the United States Code, title 29, section 
        2871, of the Workforce Investment Act of 1998, be compiled in a 
        longitudinal form by the department of economic security and 
        released to the department of children, families, and learning 
        in the form of summary data that does not identify the 
        individual students.  The department of children, families, and 
        learning may release this summary data.  State funding for adult 
        basic education programs must not be based on the number or 
        percentage of students who decline to provide their social 
        security numbers or on whether the program is evaluated by means 
        of a follow-up survey instead of data matching. 
           Sec. 16.  [124D.521] [CONSORTIUM REQUIREMENTS.] 
           Each consortium, as defined under section 124D.518, 
        subdivision 1, must meet at least twice per year to develop and 
        amend as necessary an annual consortium agreement signed by all 
        members and filed with the department of children, families, and 
        learning that at a minimum includes:  
           (1) a description of the members and fiscal agent of the 
        consortium; 
           (2) a description of the contributions of each member of 
        the consortium and the process for distributing state aid among 
        the members; and 
           (3) the state adult basic education assurances from the 
        annual adult basic education program application. 
           As a condition of membership in a consortium, each member 
        must make a documented contribution toward the cost of adult 
        basic education programming, either as a direct financial 
        contribution, or an in-kind contribution. 
           Each consortium's designated fiscal agent must: 
           (1) collect data from consortium members; 
           (2) submit required performance reports and fiscal reports 
        to the state; 
           (3) receive state adult basic education aid under section 
        124D.531 for adult basic education programming delivered by the 
        consortium; and 
           (4) distribute state adult basic education aid to members 
        of the consortium according to the consortium agreement. 
           Sec. 17.  [124D.522] [ADULT BASIC EDUCATION SUPPLEMENTAL 
        SERVICE GRANTS.] 
           (a) The commissioner, in consultation with the policy 
        review task force under section 124D.521, may make grants to 
        nonprofit organizations to provide services that are not offered 
        by a district adult basic education program or that are 
        supplemental to either the statewide adult basic education 
        program, or a district's adult basic education program.  The 
        commissioner may make grants for:  staff development for adult 
        basic education teachers and administrators; training for 
        volunteer tutors; training, services, and materials for serving 
        disabled students through adult basic education programs; 
        statewide promotion of adult basic education services and 
        programs; development and dissemination of instructional and 
        administrative technology for adult basic education programs; 
        programs which primarily serve communities of color; adult basic 
        education distance learning projects, including television 
        instruction programs; and other supplemental services to support 
        the mission of adult basic education and innovative delivery of 
        adult basic education services.  
           (b) The commissioner must establish eligibility criteria 
        and grant application procedures.  Grants under this section 
        must support services throughout the state, focus on educational 
        results for adult learners, and promote outcome-based 
        achievement through adult basic education programs.  The 
        commissioner may make grants under this section from funds 
        specifically appropriated for supplemental service grants.  Up 
        to one-third of the appropriation for supplemental service 
        grants must be used for grants for adult basic education 
        programs to encourage and support innovations in adult basic 
        education instruction and service delivery.  A grant to a single 
        organization cannot exceed $100,000.  Nothing in this section 
        prevents an approved adult basic education program from using 
        state or federal aid to purchase supplemental services. 
           Sec. 18.  Minnesota Statutes 1999 Supplement, section 
        124D.53, subdivision 3, is amended to read: 
           Subd. 3.  [AID.] For fiscal year 2000, adult basic 
        education aid for each approved program equals $2,295 for fiscal 
        year 2000 and $2,338 for fiscal year 2001 and later fiscal 
        years $1,767 times the number of full-time equivalent students 
        in its adult basic education program during the first prior 
        program year.  
           Sec. 19.  [124D.531] [ADULT BASIC EDUCATION AID.] 
           Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] (a)
        The state total adult basic education aid for fiscal year 2001 
        equals $30,157,000.  The state total adult basic education aid 
        for later years equals: 
           (1) the state total adult basic education aid for the 
        preceding fiscal year; times 
           (2) the lesser of: 
           (i) 1.08, or 
           (ii) the greater of 1.00 or the ratio of the state total 
        contact hours in the first prior program year to the state total 
        contact hours in the second prior program year. 
           (b) The state total adult basic education aid, excluding 
        basic population aid, equals the difference between the amount 
        computed in paragraph (a), and the state total basic population 
        aid under subdivision 2. 
           Subd. 2.  [BASIC POPULATION AID.] A district is eligible 
        for basic population aid if the district has a basic service 
        level approved by the commissioner under section 124D.52, 
        subdivision 5, or is a member of a consortium with an approved 
        basic service level.  Basic population aid is equal to the 
        greater of $4,000 or $1.80 times the population of the district. 
        District population is determined according to section 275.14. 
           Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
        established under section 124D.52 and approved by the 
        commissioner are eligible for revenue under this subdivision.  
        For fiscal year 2001 and later, adult basic education revenue 
        for each approved program equals the sum of: 
           (1) the basic population aid under subdivision 2 for 
        districts participating in the program during the current 
        program year; plus 
           (2) 84 percent times the amount computed in subdivision 1, 
        paragraph (b), times the ratio of the contact hours for students 
        participating in the program during the first prior program year 
        to the state total contact hours during the first prior program 
        year; plus 
           (3) eight percent times the amount computed in subdivision 
        1, paragraph (b), times the ratio of the enrollment of students 
        with limited English proficiency during the prior school year in 
        districts participating in the program during the current 
        program year to the state total enrollment of students with 
        limited English proficiency during the prior school year in 
        districts participating in adult basic education programs during 
        the current program year; plus 
           (4) eight percent times the amount computed in subdivision 
        1, paragraph (b), times the ratio of the latest federal census 
        count of the number of adults aged 20 or older with no diploma 
        residing in the districts participating in the program during 
        the current program year to the latest federal census count of 
        the state total number of adults aged 20 or older with no 
        diploma residing in the districts participating in adult basic 
        education programs during the current program year. 
           Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
        Notwithstanding subdivisions 2 and 3, the total adult basic 
        education aid for a program per prior year contact hour must not 
        exceed four times the rate per prior year contact hour computed 
        under subdivision 3, clause (2). 
           (b) For fiscal year 2002 and later, the aid for a program 
        under subdivision 3, clause (2), adjusted for changes in program 
        membership, must not exceed the aid for that program under 
        subdivision 3, clause (2), for the first preceding fiscal year 
        by more than the greater of 17 percent or $20,000. 
           (c) Adult basic education aid is payable to a program for 
        unreimbursed costs. 
           Subd. 5.  [AID GUARANTEE.] Notwithstanding subdivisions 1, 
        3, and 4, for fiscal year 2001, any adult basic education 
        program qualifying for aid under this section, that receives 
        less state aid than in fiscal year 2000 must receive additional 
        aid equal to the difference between its fiscal year 2000 aid and 
        its fiscal year 2001 aid. 
           Subd. 6.  [PAYMENT OF AID TO FISCAL AGENT.] (a) Except as 
        provided in paragraph (b), adult basic education aid must be 
        paid directly to the fiscal agent of each approved program.  An 
        approved program must have only one fiscal agent. 
           (b) A district that is part of a consortium may request 
        direct payment of basic population aid under subdivision 2.  The 
        district must make a written request to the commissioner by June 
        15 for aid payments the following fiscal year.  The request must 
        include certification that: 
           (1) the district will deposit direct aid payments in a 
        separate adult basic education account; and 
           (2) the district will use direct aid payments only for 
        adult basic education instruction. 
           Subd. 7.  [PROGRAM AUDITS.] Programs that receive aid under 
        this section must maintain records that support the aid 
        payments.  The commissioner may audit these records upon 
        request.  The commissioner must establish procedures for 
        conducting fiscal audits of adult basic education programs 
        according to the schedule in this subdivision.  In calendar year 
        2002, the commissioner must audit one-half of approved adult 
        basic education programs that received aid for fiscal year 2001, 
        and in calendar year 2003, the commissioner must audit the 
        remaining unaudited programs for aid received in fiscal year 
        2002.  Beginning with fiscal year 2004, the commissioner must, 
        at a minimum, audit each adult basic education program once 
        every five years.  The commissioner must establish procedures to 
        reconcile any discrepancies between aid payments based on 
        information reported to the commissioner and aid estimates based 
        on a program audit. 
           Subd. 8.  [ADMINISTRATIVE CAP.] A consortium or district 
        shall not spend more than five percent of the consortium or 
        district's total adult basic education aid on administrative 
        costs. 
           Subd. 9.  [FISCAL REPORTS.] Programs that receive aid under 
        this section must submit an annual report to the commissioner 
        that includes revenue and expense reports for each district and 
        program, including instructional services offered in partnership 
        with businesses and nonprofit organizations. 
           EFFECTIVE DATE:  This section is effective for revenue for 
        fiscal years beginning with 2001. 
           Sec. 20.  Minnesota Statutes 1998, section 245A.14, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
        child care programs serving 14 or fewer children that are 
        conducted at a location other than the license holder's own 
        residence shall be licensed under this section and the rules 
        governing family day care or group family day care if:  
           (a) the license holder is the primary provider of care and 
        the nonresidential child care program is conducted in a dwelling 
        that is located on a residential lot; or 
           (b) the license holder is an employer who may or may not be 
        the primary provider of care, and the purpose for the child care 
        program is to provide child care services to children of the 
        license holder's employees; or 
           (c) the license holder is a church or religious 
        organization. 
           Sec. 21.  Minnesota Statutes 1998, section 245A.14, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [EXPERIENCED AIDES; CHILD CARE CENTERS.] (a) An 
        individual employed as an aide at a child care center may work 
        with children without being directly supervised for up to 25 
        percent of the individual's daily work shift if: 
           (1) a teacher is in the building; 
           (2) the individual has received first aid training within 
        the last three years; and 
           (3) the individual is at least 20 years old and has at 
        least 4,160 hours of child care experience as defined in section 
        245A.02, subdivision 6b. 
           (b) The use of an experienced aide working without direct 
        supervision under paragraph (a) is limited to 25 percent of each 
        classroom's daily hours of operation. 
           (c) A child care center that uses experienced aides under 
        this subdivision must notify the commissioner once per year.  
        The notification must indicate the approximate number of hours 
        per classroom per month that this subdivision is used.  Upon 
        enrollment and once each year, child care centers must report to 
        parents or guardians if they use experienced aides under this 
        subdivision. 
           (d) This subdivision sunsets June 30, 2003. 
           Sec. 22.  Minnesota Statutes 1998, section 245A.14, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [INSERVICE TRAINING; CHILD CARE CENTERS.] (a) A 
        teacher at a child care center must complete one percent of 
        working hours of inservice training annually if the teacher: 
           (1) possesses a baccalaureate or masters degree in early 
        childhood education, or school age care; 
           (2) is licensed in Minnesota as a prekindergarten teacher, 
        an early childhood educator, a kindergarten to sixth grade 
        teacher with a prekindergarten specialty, an early childhood 
        special education teacher, or an elementary teacher with a 
        kindergarten endorsement; or 
           (3) possesses a baccalaureate degree with a Montessori 
        certificate. 
           (b) A teacher or assistant teacher at a child care center 
        must complete 1-1/2 percent of working hours of inservice 
        training annually if the individual is: 
           (1) a registered nurse or licensed practical nurse with 
        experience working with infants; 
           (2) possesses a Montessori certificate, a technical college 
        certificate in early childhood development, or a child 
        development associate certificate; or 
           (3) possesses an associate of arts degree in early 
        childhood education, a baccalaureate degree in child 
        development, or a technical college diploma in early childhood 
        development. 
           (c) Except as provided in paragraphs (a) and (b), all other 
        teachers, assistant teachers, or aides must have two percent of 
        working hours of inservice training annually. 
           (d) The number of required training hours may be prorated 
        for individuals not employed full time or for an entire year.  
        This subdivision supersedes Minnesota Rules, part 9503.0035, 
        subpart 4, item B, for teachers, assistant teachers, and aides.  
        The remainder of Minnesota Rules, part 9503.0035, subpart 4, 
        remains in effect unless superseded by other law. 
           Sec. 23.  Laws 1998, First Special Session chapter 1, 
        article 1, section 10, subdivision 1, as amended by Laws 1999, 
        chapter 205, article 4, section 8, is amended to read: 
           Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
        state or TANF matching funds in the family assets for 
        independence initiative, a household must have income at or 
        below 185 percent of the federal poverty level and assets of 
        $15,000 or less.  An individual who is a dependent of another 
        person for federal income tax purposes may not be a separate 
        eligible household for purposes of establishing a family asset 
        account.  An individual who is a debtor for a judgment resulting 
        from nonpayment of a court-ordered child support obligation may 
        not participate in this program.  Households accessing TANF 
        matching funds are subject to the MFIP definition of household 
        under Minnesota Statutes, section 256J.08, subdivision 46.  
        Income and assets are determined according to eligibility 
        guidelines for the energy assistance program meet the 
        eligibility requirements of the federal Assets for Independence 
        Act, Public Law Number 105-285, in Title IV, section 408 of that 
        act.  
           Sec. 24.  Laws 1998, First Special Session chapter 1, 
        article 1, section 11, subdivision 1, is amended to read: 
           Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match, 
        a participating household must transfer funds withdrawn from a 
        family asset account to its matching fund custodial account held 
        by the fiscal agent, according to the family asset agreement.  
        The fiduciary organization fiscal agent must determine if the 
        match request is for a permissible use consistent with the 
        household's family asset agreement. 
           The fiscal agent must ensure the household's custodial 
        account contains the applicable matching funds to match the 
        balance in the household's account, including interest, on at 
        least a quarterly basis and at the time of an approved 
        withdrawal.  Matches must be provided as follows: 
           (1) from state grant and TANF funds a matching contribution 
        of $1.50 for every $1 of funds withdrawn from the family asset 
        account equal to the lesser of $720 per year or a $3,000 
        lifetime limit; and 
           (2) from nonstate funds, a matching contribution of no less 
        than $1.50 for every $1 of funds withdrawn from the family asset 
        account equal to the lesser of $720 per year or a $3,000 
        lifetime limit. 
           Sec. 25.  Laws 1998, First Special Session chapter 1, 
        article 1, section 11, subdivision 2, as amended by Laws 1999, 
        chapter 205, article 4, section 9, is amended to read: 
           Subd. 2.  [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt 
        of transferred custodial account funds, the fiduciary 
        organization fiscal agent must make a direct payment to the 
        vendor of the goods or services for the permissible use.  
           Sec. 26.  Laws 1999, chapter 205, article 1, section 65, is 
        amended to read: 
           Sec. 65.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
        FISCAL YEAR 2000 AND FISCAL YEAR 2001.] 
           A district that complies with Minnesota Statutes, section 
        124D.13, shall receive additional early childhood family 
        education aid for fiscal year 2000 and fiscal year 2001 equal to 
        $2.46 times the greater of: 
           (1) 150; or 
           (2) the number of people under five years of age residing 
        in the school district on October 1 of the previous school 
        year.  The additional early childhood family education aid may 
        be used only for early childhood family education programs. 
           Sec. 27.  Laws 1999, chapter 205, article 1, section 71, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
        childhood family education aid according to Minnesota Statutes, 
        section 124D.135: 
             $20,485,000 $20,109,000   .....     2000 
             $19,420,000 $21,107,000   .....     2001
           The 2000 appropriation includes $1,390,000 for 1999 and 
        $19,095,000 $18,719,000 for 2000.  
           The 2001 appropriation includes $2,122,000 $2,079,000 for 
        2000 and $17,298,000 $19,028,000 for 2001.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 28.  Laws 1999, chapter 205, article 1, section 71, 
        subdivision 7, is amended to read: 
           Subd. 7.  [SCHOOL AGE CARE AID.] For extended day aid 
        according to Minnesota Statutes, section 124D.22: 
             $274,000       .....     2000 
             $216,000 $245,000       .....     2001
           The 2000 appropriation includes $30,000 for 1999 and 
        $244,000 for 2000. 
           The 2001 appropriation includes $27,000 for 2000 and 
        $189,000 $218,000 for 2001. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 29.  Laws 1999, chapter 205, article 1, section 71, 
        subdivision 9, is amended to read: 
           Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
        according to Minnesota Statutes, section 119B.05: 
             $86,318,000 $66,524,000    .....     2000 
             $88,443,000 $78,606,000    .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 30.  Laws 1999, chapter 205, article 2, section 4, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FAMILY COLLABORATIVES.] For family 
        collaboratives according to Laws 1995, First Special Session 
        chapter 3, article 4, section 29, subdivision 10 Minnesota 
        Statutes, section 124D.23: 
             $4,777,000     .....     2000
             $2,535,000 $2,435,000    .....     2001
           No new family services collaboratives shall be funded with 
        this appropriation after June 30, 1999.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 31.  Laws 1999, chapter 205, article 2, section 4, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
        education aid according to Minnesota Statutes, section 124D.20: 
             $14,136,000    .....     2000 
             $14,696,000 $15,274,000    .....     2001 
           The 2000 appropriation includes $160,000 for 1999 and 
        $13,976,000 for 2000.  
           The 2001 appropriation includes $1,552,000 for 2000 and 
        $13,144,000 $13,722,000 for 2001.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 32.  Laws 1999, chapter 205, article 4, section 12, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
        education aid according to Minnesota Statutes, section 124D.52, 
        in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 
        fiscal year 2001:  
             $20,132,000    .....     2000
             $22,477,000 $29,168,000   .....     2001 
           The 2000 appropriation includes $1,227,000 for 1999 and 
        $18,905,000 for 2000.  
           The 2001 appropriation includes $2,101,000 for 2000 and 
        $20,376,000 $27,067,000 for 2001.  
           Sec. 33.  Laws 1999, chapter 205, article 4, section 12, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 
        basic population aid for eligible districts under section 7: 
             $1,960,000 $1,974,000     .....     2000 
           Notwithstanding Minnesota Statutes, section 127A.45, 
        subdivision 12, 100 percent of this appropriation is for fiscal 
        year 2000. 
           Any balance in the first year does not cancel but is 
        available in the second year.  This is a one-time appropriation. 
           Sec. 34.  Laws 1999, chapter 205, article 4, section 12, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
        according to Minnesota Statutes, section 124D.54: 
             $3,184,000 $2,760,000     .....     2000
             $4,732,000 $3,031,000     .....     2001
           The 2000 appropriation includes $258,000 $258,000 for 1999 
        and $2,926,000 $2,502,000 for 2000.  
           The 2001 appropriation includes $325,000 $278,000 for 2000 
        and $4,407,000 $2,753,000 for 2001. 
           Sec. 35.  [COMPETENCY-BASED ADULT BASIC EDUCATION AND 
        ENGLISH AS A SECOND LANGUAGE LICENSE.] 
           The board of teaching must convene a task force to develop 
        a competency-based license for teachers of adult basic education 
        classes and English as a second language classes.  The 
        competency-based license must be an alternative to the current 
        licensing requirements.  By January 15, 2002, the board of 
        teaching must present their recommendations to the committees of 
        the legislature responsible for teacher licensing and funding of 
        adult basic education programs including recommendations for 
        implementing competency-based licensing for teachers of adult 
        learners. 
           Sec. 36.  [MFIP SOCIAL SERVICES CHILD CARE SUNSET AND 
        REPORT.] 
           Minnesota Statutes, section 119B.05, subdivision 1, clause 
        (5), expires on June 30, 2003.  MFIP social services child care 
        must be paid for with the appropriations under section 45, 
        subdivision 3.  Priority must be given to mental health services 
        and chemical dependency services.  Any amount that is not needed 
        for MFIP social services child care must be used for child care 
        assistance under Minnesota Statutes, section 119B.03.  The 
        commissioner of children, families, and learning must notify the 
        chairs of the family and early childhood committees in the house 
        and the senate if expenditures for MFIP social services child 
        care are expected to exceed appropriations under section 45, 
        subdivision 3.  The commissioner shall report to the legislature 
        by January 15, 2003, on the use of MFIP social services child 
        care with recommendations on the need for social services child 
        care and its effectiveness in promoting self-sufficiency. 
           Sec. 37.  [EXPEDITED APPLICATION FOR MINOR STUDENTS.] 
           The commissioner of children, families, and learning, as a 
        component of the training for counties to administer child care 
        assistance under Minnesota Statutes, chapter 119B, must provide 
        technical assistance on ways to expedite and streamline the 
        application process for minor parents participating in 
        school-based child care.  The commissioner must make child care 
        assistance information and applications available to 
        school-based adolescent parenting programs so eligible minor 
        parents are able to complete their high school education.  
           Sec. 38.  [COOPERATIVE LANGUAGE INSTRUCTION.] 
           The commissioner of children, families, and learning shall 
        create an application process to make grants for the 
        establishment of cooperative programs to teach English as a 
        second language to adults and their children.  Instruction shall 
        be provided through prekindergarten programs, elementary and 
        secondary schools, and the adult basic education program.  At 
        least two grants in the seven-county metropolitan area and one 
        grant outside the seven-county metropolitan area shall be made.  
           Sec. 39.  [INTENSIVE ESL GRANTS.] 
           The commissioner of children, families, and learning shall 
        establish a reimbursement grant program to fund intensive 
        English as a second language (ESL) programs for TANF eligible 
        adults who participate in the MFIP program under Minnesota 
        Statutes, chapter 256J, with funds appropriated under Minnesota 
        Statutes, section 44, subdivision 2.  Intensive ESL programming 
        must provide intensive instruction for MFIP participants who are 
        making inadequate literacy progress as measured by a standard 
        assessment test.  The intensive instruction must be focused on 
        participants' gaining sufficient literacy to achieve 
        self-sufficiency through employment.  
           Organizations eligible for grants under this section 
        include adult basic education programs, school districts, 
        post-secondary institutions, and nonprofit or community-based 
        organizations or other private organizations with experience in 
        providing English language instruction to non-English speaking 
        immigrants and refugees.  Grant applications must contain 
        information required by the commissioner in the form prescribed 
        by the commissioner.  At a minimum, the application must 
        document experience in literacy programs serving immigrants and 
        refugees, describe fiscal accounting systems and reporting 
        capacity, ensure that administrative expenses are limited to 
        five percent of grant funds, and provide a description of the 
        proposed instructional services and training plans.  Funds must 
        be paid to programs on a reimbursement basis.  The intensive ESL 
        program expires on June 30, 2003. 
           Sec. 40.  [CHILD AND ADULT CARE FOOD PROGRAM.] 
           The commissioner of the department of children, families, 
        and learning must request a waiver from the department of 
        agriculture so that child care programs that are licensed under 
        Minnesota Statutes, section 245A.14, subdivision 4, are allowed 
        to participate in the federal child and adult care food program 
        under United States Code, title 42, section 1766. 
           Sec. 41.  [FAMILY PROVIDER PARTICIPATION.] 
           The commissioner of the department of children, families, 
        and learning must ensure that licensed family child care 
        providers have an opportunity to participate in policy 
        discussions that impact child care.  The commissioner must seek 
        participation and input from family providers including, but not 
        limited to, participation on task forces. 
           Sec. 42.  [ADULT BASIC EDUCATION POLICY TASK FORCE.] 
           Subdivision 1.  [ESTABLISHMENT.] A nine-member adult basic 
        education policy task force is established to make 
        recommendations to the legislature on program and funding 
        policies for adult basic education programs that receive aid 
        under Minnesota Statutes, section 124D.531.  Members do not 
        receive per diem or reimbursement for expenses.  At a minimum, 
        the task force must hold two meetings a year.  All other matters 
        of the task force's operation, except expiration of the task 
        force under subdivision 4, are governed by Minnesota Statutes, 
        section 15.069. 
           Subd. 2.  [MEMBERSHIP.] The commissioner shall appoint nine 
        members to the task force.  Four members are appointed from a 
        list of candidates provided to the commissioner by the Minnesota 
        community education association and Literacy Minnesota.  The 
        commissioner must appoint two members of the task force from 
        rural programs, two members from suburban programs, two members 
        from urban programs, and one member from the nonprofit group.  
        The commissioner shall appoint one former adult basic education 
        learner and one current adult basic education learner to the 
        task force.  The composition of the task force must allow for 
        equal representation from adult basic education learners, 
        instructors, and administrators. 
           Subd. 3.  [DUTIES.] The task force must: 
           (1) recommend to the legislature and the commissioner a 
        mission statement for a statewide system of adult basic 
        education programs that includes educational outcomes, services, 
        eligible learners, requirements for teacher licensing, 
        expectations for student advancement and progress, and 
        recognition of the importance of distance learning and other 
        technology-based instruction methods; 
           (2) recommend to the legislature adult basic education 
        standard policies and procedures; 
           (3) recommend to the legislature the adult basic education 
        curriculum and course offerings including policies to offer 
        computer literacy and other skill-based education through adult 
        basic education programs; 
           (4) recommend to the legislature the minimum number of 
        contact hours that are necessary in order for a program to 
        continue; 
           (5) recommend to the legislature an adequate and reasonable 
        hourly rate for smaller programs; 
           (6) recommend to the legislature a reasonable range for the 
        number of instructional hours or a reasonable cap on the number 
        of hours individuals may spend in adult basic education 
        instruction; 
           (7) recommend to the legislature an outcome-based adult 
        basic education funding system that rewards and recognizes 
        student progress in attaining educational goals; 
           (8) recommend to the legislature an appropriate weight for 
        contact hours for nonschool district programs based on an 
        evaluation of costs, revenues, and the impact of weighted 
        contact hours on consortium stability; and 
           (9) review statewide grant applications for supplemental 
        services under Minnesota Statutes, section 124D.522. 
           Subd. 4.  [EXPIRATION.] The adult basic education policy 
        task force expires on December 1, 2002. 
           Sec. 43.  [GENERAL FUND APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the commissioner of children, families, 
        and learning for the fiscal years designated.  
           Subd. 2.  [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
        GRANTS.] For adult basic education supplemental service grants 
        according to Minnesota Statutes, section 124D.522: 
             $700,000     .....     2001 
           This is a one-time appropriation and is not to be added to 
        the base for 2002 and 2003. 
           Subd. 3.  [ADULT BASIC EDUCATION ADMINISTRATION.] For 
        administration of the state adult basic education program 
        including auditing, technical assistance, and reporting 
        requirements under this act: 
             $100,000     .....     2001 
           This appropriation is added to the fiscal year 2002 and 
        2003 base at a level of $175,000 each year to finance adult 
        basic education audits.  Any balance in the first year does not 
        cancel, but is available in the second year. 
           Subd. 4.  [HOUSING COLLABORATION.] For a grant to the city 
        of St. Louis Park for the Meadowbrook Collaborative Housing 
        Project to enhance youth outreach services and to provide 
        educational and recreational programming for at-risk youth.  The 
        collaborative must include a cross section of public and private 
        sector community representatives.  
             $25,000     .....     2001 
           This is a one-time appropriation. 
           Subd. 5.  [EMERGENCY SERVICES.] For emergency services 
        grants according to Laws 1997, chapter 162, article 3, section 7:
             $622,000     .....     2001
           This is a one-time appropriation. 
           Subd. 6.  [COOPERATIVE LANGUAGE INSTRUCTION.] For 
        cooperative language instruction grants under section 38: 
             $250,000     .....     2001
           This is a one-time appropriation. 
           Subd. 7.  [ADULTS WITH DISABILITIES.] For purposes of the 
        adults with disabilities pilot programs under Laws 1997, chapter 
        162, article 2, section 31, subdivision 4: 
             $40,000     .....     2001
           Sec. 44.  [TANF APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section for fiscal years 
        2001 to 2003 are appropriated to the commissioner of human 
        services from the federal Temporary Assistance for Needy 
        Families (TANF) block grant funds authorized under United States 
        Code, title 42, section 601 et seq., and awarded in federal 
        fiscal years 2000 to 2002, and are transferred to the department 
        of children, families, and learning for the fiscal years 
        indicated for use as provided in this section.  These amounts 
        are available for expenditure until June 30, 2003.  
        Appropriations under this section are one-time appropriations 
        and are not added to the base for fiscal years 2004 and 2005.  
           Subd. 2.  [INTENSIVE ESL.] For intensive English as a 
        second language (ESL) for eligible MFIP participants under 
        section 39: 
             $1,100,000     .....     2001
             $1,100,000     .....     2002
             $1,100,000     .....     2003
           Subd. 3.  [TRANSITIONAL HOUSING PROGRAMS.] For 
        reimbursement grants to transitional housing programs under 
        Minnesota Statutes, section 119A.43: 
             $1,900,000     .....     2001 
             $1,900,000     .....     2002 
             $1,950,000     .....     2003 
           These appropriations must be used for up to four months of 
        transitional housing for families with incomes below 200 percent 
        of the federal poverty guidelines.  Payment must be made to 
        programs on a reimbursement basis. 
           Sec. 45.  [FEDERAL TANF TRANSFERS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are transferred 
        from the federal TANF fund to the child care and development 
        fund and appropriated to the department of children, families, 
        and learning for the fiscal years designated.  The commissioner 
        shall ensure that all transferred funds are expended in 
        accordance with the child care and development fund regulations 
        and that the maximum allowable transferred funds are used for 
        the program in this section.  Appropriations under this section 
        are one-time appropriations and are not added to the base.  
           Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
        assistance according to Minnesota Statutes, section 119B.03: 
             $2,539,000     .....     2001
             $2,138,000     .....     2002
             $1,738,000     .....     2003
           Subd. 3.  [MFIP SOCIAL SERVICES CHILD CARE.] For social 
        services child care costs of eligible MFIP participants under 
        section 36: 
             $3,233,000     .....     2001
             $3,297,000     .....     2002
             $2,865,000     .....     2003
           Any amount remaining in fiscal year 2003 that is not needed 
        for social service child care must be used for assistance under 
        Minnesota Statutes, section 119B.03. 
           Subd. 4.  [TRANSITION YEAR FAMILIES.] To provide 
        uninterrupted assistance under Minnesota Statutes, section 
        119B.03, for families completing transition year child care 
        assistance: 
             $1,080,000     .....     2001
             $3,620,000     .....     2002
             $4,040,000     .....     2003
           Any amount remaining in fiscal year 2003 that is not needed 
        for uninterrupted child care must be used for assistance under 
        Minnesota Statutes, section 119B.03. 
           Sec. 46.  [REPEALER.] 
           (a) Minnesota Statutes 1998, section 124D.53, is repealed.  
           (b) Laws 1998, First Special Session chapter 1, article 1, 
        section 10, subdivision 2, as amended by Laws 1999, chapter 205, 
        article 4, section 8, is repealed. 
           EFFECTIVE DATE:  Paragraph (a) is effective for revenue for 
        fiscal year 2001 and later. 

                                   ARTICLE 2 
                         KINDERGARTEN THROUGH GRADE 12 
                               GENERAL EDUCATION 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        122A.61, subdivision 1, is amended to read: 
           Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
        required to reserve an amount equal to at least one two percent 
        of the basic revenue under section 126C.10, subdivision 2, for 
        in-service education for programs under section 120B.22, 
        subdivision 2, for staff development plans, including plans for 
        challenging instructional activities and experiences under 
        section 122A.60, and for curriculum development and programs, 
        other in-service education, teachers' workshops, teacher 
        conferences, the cost of substitute teachers staff development 
        purposes, and other related costs for staff development 
        efforts.  A district may annually waive the requirement to 
        reserve their basic revenue under this section if a majority 
        vote of the licensed teachers in the district and a majority 
        vote of the school board agree to a resolution to waive the 
        requirement.  A district in statutory operating debt is exempt 
        from reserving basic revenue according to this section.  
        Districts may expend an additional amount of unreserved revenue 
        for staff development based on their needs.  With the exception 
        of amounts reserved for staff development from revenues 
        allocated directly to school sites, the board must initially 
        allocate 50 percent of the reserved revenue to each school site 
        in the district on a per teacher basis, which must be retained 
        by the school site until used.  The board may retain 25 percent 
        to be used for district wide staff development efforts.  The 
        remaining 25 percent of the revenue must be used to make grants 
        to school sites for best practices methods.  A grant may be used 
        for any purpose authorized under section 120B.22, subdivision 2, 
        122A.60, or for the costs of curriculum development and 
        programs, other in-service education, teachers' workshops, 
        teacher conferences, substitute teachers for staff development 
        purposes, and other staff development efforts, and determined by 
        the site professional development team.  The site professional 
        development team must demonstrate to the school board the extent 
        to which staff at the site have met the outcomes of the 
        program.  The board may withhold a portion of initial allocation 
        of revenue if the staff development outcomes are not being met. 
           Sec. 2.  Minnesota Statutes 1998, section 122A.68, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EMPLOYMENT CONDITIONS.] A school district must 
        pay a teaching resident a salary equal to 75 90 percent of the 
        salary of a first-year teacher with a bachelor's degree in the 
        district.  The resident shall be a member of the local 
        bargaining unit and shall be covered under the terms of the 
        contract, except for salary and benefits, unless otherwise 
        provided in this subdivision.  The school district must provide 
        health insurance coverage for the resident if the district 
        provides it for teachers, and may provide other benefits upon 
        negotiated agreement. 
           Sec. 3.  Minnesota Statutes 1998, section 123B.75, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
        settlement revenue" means the current, delinquent, and 
        manufactured home property tax receipts collected by the county 
        and distributed to the school district. 
           (b) In June of each year, the school district must 
        recognize as revenue, in the fund for which the levy was made, 
        the lesser of:  
           (1) the May, June, and July school district tax settlement 
        revenue received in that calendar year; or 
           (2) the sum of: 
           (i) 31 percent of the referendum levy certified in the 
        prior calendar year according to section 126C.17, subdivision 9; 
        plus 
           (ii) the entire amount of the levy certified in the prior 
        calendar year according to sections 124D.86, subdivision 4, for 
        school districts receiving revenue under 124D.86, subdivision 3, 
        clauses (1), (2) and (3); 126C.41, subdivisions 1, 2, and 3, 
        paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 
        126C.48, subdivision 6. 
           Sec. 4.  Minnesota Statutes 1999 Supplement, section 
        124D.11, subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
        education revenue must be paid to a charter school as though it 
        were a district.  The general education revenue for each 
        adjusted marginal cost pupil unit is the state average general 
        education revenue per pupil unit, plus the referendum 
        equalization aid allowance in the pupil's district of residence, 
        minus an amount equal to the product of the formula allowance 
        according to section 126C.10, subdivision 2, times .0485, 
        calculated without basic skills revenue, transportation sparsity 
        revenue, and the transportation portion of the transition 
        revenue adjustment, plus basic skills revenue as though the 
        school were a school district. 
           (b) Notwithstanding paragraph (a), for charter schools in 
        the first year of operation, general education revenue shall be 
        computed using the number of adjusted pupil units in the current 
        fiscal year.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        124D.65, subdivision 4, is amended to read: 
           Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
        limited English proficiency programs revenue for fiscal year 
        2000 equals $27,454,000.  The state total limited English 
        proficiency programs revenue for fiscal year 2001 equals 
        $31,752,000.  
           (b) The state total limited English proficiency programs 
        revenue for later fiscal years equals: 
           (1) the state total limited English proficiency programs 
        revenue for the preceding fiscal year; times 
           (2) the program growth factor under section 125A.76 
        subdivision 1; times 
           (3) the ratio of the state total number of pupils with 
        limited English proficiency for the current fiscal year to the 
        state total number of pupils with limited English proficiency 
        for the preceding fiscal year. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 6.  Minnesota Statutes 1999 Supplement, section 
        124D.86, subdivision 1, is amended to read: 
           Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
        under this section must be used for programs established under a 
        desegregation plan filed with the department of children, 
        families, and learning according to Minnesota Rules, parts 
        3535.0100 to 3535.0180, or under court order, to increase.  The 
        revenue must be used to create or enhance learning opportunities 
        and reduce the learning gap between learners living in high 
        concentrations of poverty and their peers which are designed to 
        provide opportunities for students to have increased interracial 
        contacts through classroom experiences, staff initiatives, and 
        other educationally related programs. 
           Sec. 7.  Minnesota Statutes 1998, section 124D.86, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [BUDGET APPROVAL PROCESS.] Each year before a 
        district receives any revenue under subdivision 3, clause (4), 
        the district must submit to the department of children, 
        families, and learning, for its review and approval a budget 
        detailing the costs of the desegregation/integration plan filed 
        under Minnesota Rules, parts 3535.0100 to 3535.0180.  
        Notwithstanding chapter 14, the department may develop criteria 
        for budget approval.  The department shall consult with the 
        desegregation advisory board in developing these criteria.  The 
        criteria developed by the department should address, at a 
        minimum, the following: 
           (1) budget items cannot be approved unless they are part of 
        any overall desegregation plan approved by the district for 
        isolated sites or by the multidistrict collaboration council and 
        participation individual members; 
           (2) the budget must indicate how revenue expenditures will 
        be used specifically to support increased opportunities for 
        interracial contact; 
           (3) components of the budget to be considered by the 
        department, including staffing, curriculum, transportation, 
        facilities, materials, and equipment and reasonable planning 
        costs, as determined by the department; and 
           (4) if plans are proposed to enhance existing programs, the 
        total budget being appropriated to the program must be included, 
        indicating what part is to be funded using integration revenue 
        and what part is to be funded using other revenues.  
           Sec. 8.  Minnesota Statutes 1998, section 124D.86, is 
        amended by adding a subdivision to read: 
           Subd. 1b.  [PLAN COMPONENTS.] Plans submitted by each 
        district under Minnesota Rules, parts 3535.0160 and 3535.0170, 
        must be approved by the district's board each year before 
        integration revenue will be awarded.  If a district is applying 
        for revenue for a plan that is part of a multidistrict council, 
        the individual district shall not receive revenue unless it 
        ratifies the plan adopted by its multidistrict council or 
        approves a modified plan with a written explanation of any 
        modifications.  Each plan shall contain: 
           (1) an identification of the integration issues at the 
        sites or districts covered by Minnesota Rules, parts 3535.0100 
        to 3535.0180; 
           (2) a description of the community outreach that preceded 
        the integration plan, such that the commissioner can determine 
        whether the membership of the planning councils complied with 
        the requirements of Minnesota Rules, parts 3535.0100 to 
        3535.0180; and 
           (3) the specific goals of the integration plan. 
        By June 30 of the subsequent fiscal year, each district shall 
        report to the commissioner in writing about the extent to which 
        the integration goals identified in the plan were met. 
           Sec. 9.  Minnesota Statutes 1999 Supplement, section 
        124D.86, subdivision 3, is amended to read: 
           Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 2000 and 
        later fiscal years, integration revenue equals the following 
        amounts: 
           (1) for independent school district No. 709, Duluth, $207 
        times the adjusted pupil units for the school year; 
           (2) for independent school district No. 625, St. Paul, $446 
        times the adjusted pupil units for the school year; 
           (3) for special school district No. 1, Minneapolis, $536 
        times the adjusted pupil units for the school year; and 
           (4) for a district not listed in clause (1), (2), or (3) 
        that is required to implement a plan according to the 
        requirements of Minnesota Rules, parts 3535.0100 to 
        3535.0180, as proposed in 23 State Register 1344, December 7, 
        1998, the lesser of 
           (i) the actual cost of implementing the plan during the 
        fiscal year minus the aid received under subdivision 6, or 
           (ii) $93 times the adjusted pupil units for the school year.
           Any money received by districts in clauses (1) to (3) which 
        exceeds the amount received in fiscal year 2000 shall be subject 
        to the budget requirements in subdivision 1a. 
           Sec. 10.  Minnesota Statutes 1998, section 124D.86, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
        integration aid under subdivision 5 must be adjusted for each 
        pupil residing in a district eligible for integration revenue 
        under subdivision 3, clause (1), (2), or (3), and attending a 
        nonresident district under sections 123A.05 to 123A.08, 124D.03, 
        124D.06, 124D.07, and 124D.08, that is not eligible for 
        integration revenue under subdivision 3, clause (1), (2), or 
        (3), and has implemented a plan under Minnesota Rules, parts 
        3535.0100 to 3535.0180, if the enrollment of the pupil in the 
        nonresident district contributes to desegregation or integration 
        purposes.  The adjustments must be made according to this 
        subdivision.  
           (b) Aid paid to the district of the pupil's residence must 
        be reduced by an amount equal to the revenue per resident pupil 
        unit of the resident district times the number of resident pupil 
        units attributable to the pupil for the time the pupil is 
        enrolled in a nonresident district. 
           (c) Aid paid to a district serving nonresidents must be 
        increased by an amount equal to the aid reduction to the 
        resident district under paragraphs (b) and (d) revenue per pupil 
        unit of the resident district under subdivision 3, clause (1), 
        (2), or (3), minus the revenue attributable to the pupil in the 
        nonresident district under subdivision 3, clause (4), for the 
        time the pupil is enrolled in the nonresident district.  
           (d) If the amount of the reduction to be made from the aid 
        of a district is greater than the amount of aid otherwise due 
        the district, the excess reduction must be made from other state 
        aids due the district. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 11.  Minnesota Statutes 1999 Supplement, section 
        124D.87, is amended to read: 
           124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
        TRANSPORTATION AID.] 
           (a) A district that provides transportation of pupils to 
        and from an interdistrict program for desegregation or 
        integration purposes is eligible for state aid to cover 
        reimburse the additional costs of transportation during the 
        preceding fiscal year.  
           (b) A district in the metropolitan area may apply to the 
        commissioner for state aid to cover reimburse the costs of 
        transporting pupils who are enrolled under section 
        124D.03 during the preceding fiscal year if the enrollment of 
        the student in the nonresident district contributes to 
        desegregation or integration purposes.  The commissioner shall 
        develop the form and manner of applications for state aid, the 
        criteria to be used to determine when transportation is for 
        desegregation or integration purposes, and the accounting 
        procedure to be used to determine excess costs.  In determining 
        aid amounts, the commissioner shall consider other revenue 
        received by the district for transportation for desegregation or 
        integration purposes. 
           (c) Aid must be paid under paragraph (b) only if aid 
        amounts under paragraph (a) have been fully funded. 
           EFFECTIVE DATE:  This section is effective July 1, 2001. 
           Sec. 12.  Minnesota Statutes 1999 Supplement, section 
        126C.05, subdivision 5, is amended to read: 
           Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
        for a district or charter school means the sum of: 
           (1) the number of pupil units served, according to 
        subdivision 7, plus 
           (2) pupil units according to subdivision 1 for whom the 
        district or charter school pays tuition under section 123A.18, 
        123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
        subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
        125A.65, minus 
           (3) pupil units according to subdivision 1 for whom the 
        district or charter school receives tuition under section 
        123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
        subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
        125A.65. 
           (b) Adjusted marginal cost pupil units means the greater of:
           (1) the sum of .9 .77 times the pupil units defined in 
        paragraph (a) for the current school year and .1 .23 times the 
        pupil units defined in paragraph (a) for the previous school 
        year; or 
           (2) the number of adjusted pupil units defined in paragraph 
        (a) for the current school year. 
           Sec. 13.  Minnesota Statutes 1999 Supplement, section 
        126C.05, subdivision 6, is amended to read: 
           Subd. 6.  [RESIDENT PUPIL UNITS.] (a) Resident pupil units 
        for a district means the number of pupil units according to 
        subdivision 1 residing in the district. 
           (b) Resident marginal cost pupil units means the greater of:
           (1) the sum of .9 .77 times the pupil units defined in 
        paragraph (a) for the current year and .1 .23 times the pupil 
        units defined in paragraph (a) for the previous school year; or 
           (2) the number of resident pupil units defined in paragraph 
        (a) for the current school year. 
           Sec. 14.  Minnesota Statutes 1999 Supplement, section 
        126C.052, is amended to read: 
           126C.052 [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 
        EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 
           A district is required to reserve $3 in fiscal year 2000 
        and $11 in fiscal year 2001 and later per adjusted marginal cost 
        pupil unit for class size reduction, all-day kindergarten, or 
        for reducing special education student-to-instructor ratios.  
        The school board of each district must pass a resolution stating 
        which one of these three programs will be funded with this 
        reserve.  The reserve amount under this section must be 
        allocated to the education site as defined in section 123B.04, 
        subdivision 1, according to a plan adopted by the school board. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 15.  Minnesota Statutes 1999 Supplement, section 
        126C.10, subdivision 2, is amended to read: 
           Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
        district equals the formula allowance times the resident 
        adjusted marginal cost pupil units for the school year.  The 
        formula allowance for fiscal year 1998 is $3,581.  The formula 
        allowance for fiscal year 1999 is $3,530.  The formula allowance 
        for fiscal year 2000 is $3,740.  The formula allowance for 
        fiscal year 2001 and subsequent fiscal years is $3,875 $3,964. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 16.  Minnesota Statutes 1999 Supplement, section 
        126C.10, subdivision 14, is amended to read: 
           Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
        operating capital revenue may be used only for the following 
        purposes: 
           (1) to acquire land for school purposes; 
           (2) to acquire or construct buildings for school purposes; 
           (3) to rent or lease buildings, including the costs of 
        building repair or improvement that are part of a lease 
        agreement; 
           (4) to improve and repair school sites and buildings, and 
        equip or reequip school buildings with permanent attached 
        fixtures, including library media centers; 
           (5) for a surplus school building that is used 
        substantially for a public nonschool purpose; 
           (6) to eliminate barriers or increase access to school 
        buildings by individuals with a disability; 
           (7) to bring school buildings into compliance with the 
        Uniform Fire Code adopted according to chapter 299F; 
           (8) to remove asbestos from school buildings, encapsulate 
        asbestos, or make asbestos-related repairs; 
           (9) to clean up and dispose of polychlorinated biphenyls 
        found in school buildings; 
           (10) to clean up, remove, dispose of, and make repairs 
        related to storing heating fuel or transportation fuels such as 
        alcohol, gasoline, fuel oil, and special fuel, as defined in 
        section 296A.01; 
           (11) for energy audits for school buildings and to modify 
        buildings if the audit indicates the cost of the modification 
        can be recovered within ten years; 
           (12) to improve buildings that are leased according to 
        section 123B.51, subdivision 4; 
           (13) to pay special assessments levied against school 
        property but not to pay assessments for service charges; 
           (14) to pay principal and interest on state loans for 
        energy conservation according to section 216C.37 or loans made 
        under the Northeast Minnesota Economic Protection Trust Fund Act 
        according to sections 298.292 to 298.298; 
           (15) to purchase or lease interactive telecommunications 
        equipment; 
           (16) by board resolution, to transfer money into the debt 
        redemption fund to:  (i) pay the amounts needed to meet, when 
        due, principal and interest payments on certain obligations 
        issued according to chapter 475; or (ii) pay principal and 
        interest on debt service loans or capital loans according to 
        section 126C.70; 
           (17) to pay operating capital-related assessments of any 
        entity formed under a cooperative agreement between two or more 
        districts; 
           (18) to purchase or lease computers and related materials, 
        copying machines, telecommunications equipment, and other 
        noninstructional equipment; 
           (19) to purchase or lease assistive technology or equipment 
        for instructional programs; 
           (20) to purchase textbooks; 
           (21) to purchase new and replacement library books media 
        resources or technology; 
           (22) to purchase vehicles; 
           (23) to purchase or lease telecommunications equipment, 
        computers, and related equipment for integrated information 
        management systems for: 
           (i) managing and reporting learner outcome information for 
        all students under a results-oriented graduation rule; 
           (ii) managing student assessment, services, and achievement 
        information required for students with individual education 
        plans; and 
           (iii) other classroom information management needs; and 
           (24) to pay personnel costs directly related to the 
        acquisition, operation, and maintenance of telecommunications 
        systems, computers, related equipment, and network and 
        applications software. 
           EFFECTIVE DATE:  This section is effective for the 
        2000-2001 and later school years. 
           Sec. 17.  Minnesota Statutes 1999 Supplement, section 
        126C.10, subdivision 23, is amended to read: 
           Subd. 23.  [REFERENDUM OFFSET ADJUSTMENT.] A district that 
        qualifies for the referendum allowance reduction under section 
        126C.17, subdivision 12, and whose referendum allowance under 
        section 126C.17, subdivision 1, as adjusted under section 
        126C.17, subdivisions 2 and 12, does not exceed the referendum 
        allowance limit under section 126C.17, subdivision 2, clause 
        (2), shall receive a referendum offset adjustment.  In fiscal 
        year 2000 and thereafter, the referendum offset adjustment is 
        equal to $25 per resident adjusted marginal cost pupil unit. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 18.  Minnesota Statutes 1999 Supplement, section 
        126C.10, subdivision 24, is amended to read: 
           Subd. 24.  [EQUITY REVENUE.] (a) A school district 
        qualifies for equity revenue if the school district's adjusted 
        marginal cost pupil unit amount of basic revenue, supplemental 
        revenue, transition revenue, and referendum revenue is less than 
        the value of the school district at or immediately above the 
        90th percentile of school districts in its equity region for 
        those revenue categories and the school district's 
        administrative offices are not located in a city of the first 
        class on July 1, 1999. 
           (b) Equity revenue for a qualifying district that receives 
        referendum revenue under section 126C.17, subdivision 4, equals 
        the product of (1) the district's adjusted marginal cost pupil 
        units for that year; times (2) the sum of (i) $10, plus (ii) 
        $30, times the school district's equity index computed under 
        section 126C.10, subdivision 6 27. 
           (c) Equity revenue for a qualifying district that does not 
        receive referendum revenue under section 126C.17, subdivision 4, 
        equals the product of the district's adjusted marginal cost 
        pupil units for that year times $10. 
           EFFECTIVE DATE:  This section is effective for revenue in 
        fiscal year 2000. 
           Sec. 19.  Minnesota Statutes 1999 Supplement, section 
        126C.10, subdivision 25, is amended to read: 
           Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
        equals the difference between the value of the school district 
        at or immediately above the fifth percentile of adjusted general 
        revenue per adjusted marginal cost pupil unit and the value of 
        the school district at or immediately above the 90th percentile 
        of adjusted general revenue per adjusted marginal cost pupil 
        unit. 
           EFFECTIVE DATE:  This section is effective for revenue in 
        fiscal year 2000. 
           Sec. 20.  Minnesota Statutes 1999 Supplement, section 
        126C.10, subdivision 26, is amended to read: 
           Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
        equals the greater of zero or the difference between the 
        district's adjusted general revenue and the value of the school 
        district at or immediately above the regional 90th percentile of 
        adjusted general revenue per adjusted marginal cost pupil unit. 
           EFFECTIVE DATE:  This section is effective for revenue in 
        fiscal year 2000. 
           Sec. 21.  Minnesota Statutes 1999 Supplement, section 
        126C.12, subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE.] Of a district's general 
        education revenue for fiscal year 2000 and thereafter each 
        school district shall reserve an amount equal to the formula 
        allowance multiplied by the following calculation: 
           (1) the sum of adjusted marginal cost pupil units pupils in 
        average daily membership, according to section 126C.05, 
        subdivision 5, in kindergarten times .057; plus 
           (2) the sum of adjusted marginal cost pupil units pupils in 
        average daily membership, according to section 126C.05, 
        subdivision 5, in grades 1 to 3 times .115; plus 
           (3) the sum of adjusted marginal cost pupil units pupils in 
        average daily membership, according to section 126C.05, 
        subdivision 5, in grades 4 to 6 times .06. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 22.  Minnesota Statutes 1998, section 126C.16, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PER PUPIL REVENUE CONVERSION.] (a) The 
        department must convert each district's referendum revenue 
        authority for fiscal year 2002 and later years to an allowance 
        per pupil unit as follows:  the revenue allowance equals the 
        amount determined by dividing the district's maximum revenue 
        under section 126C.17, for fiscal year 2001 by the district's 
        2000-2001 resident marginal cost pupil units.  A district's 
        maximum revenue for all later years for which the revenue is 
        authorized equals the revenue allowance times the district's 
        resident marginal cost pupil units for that year.  
           (b) The referendum allowance reduction must be applied 
        first to the authority with the earliest expiration date. 
           Sec. 23.  Minnesota Statutes 1999 Supplement, section 
        126C.17, subdivision 9, is amended to read: 
           Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
        by section 126C.10, subdivision 1, may be increased in the 
        amount approved by the voters of the district at a referendum 
        called for the purpose.  The referendum may be called by the 
        board or shall be called by the board upon written petition of 
        qualified voters of the district.  The referendum must be 
        conducted one or two calendar years before the increased levy 
        authority, if approved, first becomes payable.  Only one 
        election to approve an increase may be held in a calendar year.  
        Unless the referendum is conducted by mail under paragraph (g), 
        the referendum must be held on the first Tuesday after the first 
        Monday in November.  The ballot must state the maximum amount of 
        the increased revenue per resident marginal cost pupil unit, the 
        estimated referendum tax rate as a percentage of referendum 
        market value in the first year it is to be levied, and that the 
        revenue must be used to finance school operations.  The ballot 
        may state a schedule, determined by the board, of increased 
        revenue per resident marginal cost pupil units unit that differs 
        from year to year over the number of years for which the 
        increased revenue is authorized.  If the ballot contains a 
        schedule showing different amounts, it must also indicate the 
        estimated referendum tax rate as a percent of referendum market 
        value for the amount specified for the first year and for the 
        maximum amount specified in the schedule.  The ballot may state 
        that existing referendum levy authority is expiring.  In this 
        case, the ballot may also compare the proposed levy authority to 
        the existing expiring levy authority, and express the proposed 
        increase as the amount, if any, over the expiring referendum 
        levy authority.  The ballot must designate the specific number 
        of years, not to exceed ten, for which the referendum 
        authorization applies.  The notice required under section 275.60 
        may be modified to read, in cases of renewing existing levies: 
           "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
           FOR A PROPERTY TAX INCREASE." 
           The ballot may contain a textual portion with the 
        information required in this subdivision and a question stating 
        substantially the following:  
           "Shall the increase in the revenue proposed by (petition 
        to) the board of ........., School District No. .., be approved?"
           If approved, an amount equal to the approved revenue per 
        resident marginal cost pupil unit times the resident marginal 
        cost pupil units for the school year beginning in the year after 
        the levy is certified shall be authorized for certification for 
        the number of years approved, if applicable, or until revoked or 
        reduced by the voters of the district at a subsequent referendum.
           (b) The board must prepare and deliver by first class mail 
        at least 15 days but no more than 30 days before the day of the 
        referendum to each taxpayer a notice of the referendum and the 
        proposed revenue increase.  The board need not mail more than 
        one notice to any taxpayer.  For the purpose of giving mailed 
        notice under this subdivision, owners must be those shown to be 
        owners on the records of the county auditor or, in any county 
        where tax statements are mailed by the county treasurer, on the 
        records of the county treasurer.  Every property owner whose 
        name does not appear on the records of the county auditor or the 
        county treasurer is deemed to have waived this mailed notice 
        unless the owner has requested in writing that the county 
        auditor or county treasurer, as the case may be, include the 
        name on the records for this purpose.  The notice must project 
        the anticipated amount of tax increase in annual dollars and 
        annual percentage for typical residential homesteads, 
        agricultural homesteads, apartments, and commercial-industrial 
        property within the school district. 
           The notice for a referendum may state that an existing 
        referendum levy is expiring and project the anticipated amount 
        of increase over the existing referendum levy in the first year, 
        if any, in annual dollars and annual percentage for typical 
        residential homesteads, agricultural homesteads, apartments, and 
        commercial-industrial property within the district. 
           The notice must include the following statement:  "Passage 
        of this referendum will result in an increase in your property 
        taxes."  However, in cases of renewing existing levies, the 
        notice may include the following statement:  "Passage of this 
        referendum may result in an increase in your property taxes." 
           (c) A referendum on the question of revoking or reducing 
        the increased revenue amount authorized pursuant to paragraph 
        (a) may be called by the board and shall be called by the board 
        upon the written petition of qualified voters of the district.  
        A referendum to revoke or reduce the levy amount must be based 
        upon the dollar amount, local tax rate, or amount per resident 
        marginal cost pupil unit, that was stated to be the basis for 
        the initial authorization.  Revenue approved by the voters of 
        the district pursuant to paragraph (a) must be received at least 
        once before it is subject to a referendum on its revocation or 
        reduction for subsequent years.  Only one revocation or 
        reduction referendum may be held to revoke or reduce referendum 
        revenue for any specific year and for years thereafter. 
           (d) A petition authorized by paragraph (a) or (c) is 
        effective if signed by a number of qualified voters in excess of 
        15 percent of the registered voters of the district on the day 
        the petition is filed with the board.  A referendum invoked by 
        petition must be held on the date specified in paragraph (a). 
           (e) The approval of 50 percent plus one of those voting on 
        the question is required to pass a referendum authorized by this 
        subdivision. 
           (f) At least 15 days before the day of the referendum, the 
        district must submit a copy of the notice required under 
        paragraph (b) to the commissioner and to the county auditor of 
        each county in which the district is located.  Within 15 days 
        after the results of the referendum have been certified by the 
        board, or in the case of a recount, the certification of the 
        results of the recount by the canvassing board, the district 
        must notify the commissioner of the results of the referendum. 
           (g) Except for a referendum held under subdivision 11, any 
        referendum under this section held on a day other than the first 
        Tuesday after the first Monday in November must be conducted by 
        mail in accordance with section 204B.46.  Notwithstanding 
        paragraph (b) to the contrary, in the case of a referendum 
        conducted by mail under this paragraph, the notice required by 
        paragraph (b) must be prepared and delivered by first class mail 
        at least 20 days before the referendum. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 24.  Minnesota Statutes 1999 Supplement, section 
        126C.44, as amended by Laws 2000, chapter 254, section 44, is 
        amended to read: 
           126C.44 [CRIME-RELATED COSTS LEVY.] 
           Each district may make a levy on all taxable property 
        located within the district for the purposes specified in this 
        subdivision section.  The maximum amount which may be levied for 
        all costs under this subdivision section shall be equal to 
        $1.50 $11.00 multiplied by the population of the school district 
        district's adjusted marginal cost pupil units for the school 
        year.  For purposes of this subdivision, "population" of the 
        school district means the same as contained in section 275.14.  
        The proceeds of the levy must be used for directly funding the 
        following purposes or for reimbursing the cities and counties 
        who contract with the district for the following purposes:  (1) 
        to pay the costs incurred for the salaries, benefits, and 
        transportation costs of peace officers and sheriffs for 
        liaison in services in the district's middle and secondary 
        schools; (2) to pay the costs for a drug abuse prevention 
        program as defined in section 609.101, subdivision 3, paragraph 
        (e), in the elementary schools; (3) to pay the costs for a gang 
        resistance education training curriculum in the middle 
        district's schools; or (4) to pay the costs for security in the 
        districts' schools and on school property; or (5) to pay the 
        costs for other crime prevention and, drug abuse, student and 
        staff safety, and violence prevention measures taken by the 
        school district.  The district must initially attempt to 
        contract for services to be provided by peace officers or 
        sheriffs with the police department of each city or the 
        sheriff's department of the county within the district 
        containing the school receiving the services.  If a local police 
        department or a county sheriff's department does not wish to 
        provide the necessary services, the district may contract for 
        these services with any other police or sheriff's department 
        located entirely or partially within the school district's 
        boundaries.  The levy authorized under this subdivision section 
        is not included in determining the school district's levy 
        limitations. 
           EFFECTIVE DATE:  This section is effective July 1, 2000, 
        for levies for taxes payable in 2001 and later. 
           Sec. 25.  Minnesota Statutes 1999 Supplement, section 
        127A.45, subdivision 12a, is amended to read: 
           Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 
        percent of the state aid in fiscal year 1999, and 31 percent of 
        the state aid in fiscal years 2000 and later received under 
        section 124D.86 must be paid by the state to the recipient 
        school district on July 15 of that year.  The recipient school 
        district must recognize this aid in the same fiscal year as the 
        levy is recognized. 
           (b) One hundred percent of the state aid in fiscal years 
        2003 and later received under section 124D.87 must be paid by 
        the state to the recipient school district on August 30 of that 
        year.  The recipient school district must recognize this aid in 
        the previous fiscal year. 
           Sec. 26.  Minnesota Statutes 1999 Supplement, section 
        127A.51, is amended to read: 
           127A.51 [STATEWIDE AVERAGE REVENUE.] 
           By October 1 of each year the commissioner must estimate 
        the statewide average adjusted general revenue per adjusted 
        marginal cost pupil unit and the disparity in adjusted general 
        revenue among pupils and districts by computing the ratio of the 
        ninety-fifth percentile to the fifth percentile of adjusted 
        general revenue.  The commissioner must provide that information 
        to all districts. 
           If the disparity in adjusted general revenue as measured by 
        the ratio of the ninety-fifth percentile to the fifth percentile 
        increases in any year, the commissioner shall recommend to the 
        legislature options for change in the general education formula 
        that will limit the disparity in adjusted general revenue to no 
        more than the disparity for the previous school year.  The 
        commissioner must submit the recommended options to the 
        education committees of the legislature by January 15. 
           For purposes of this section and section 126C.10, adjusted 
        general revenue means the sum of basic revenue under section 
        126C.10, subdivision 2; supplemental revenue under section 
        126C.10, subdivisions 9 and 12; transition revenue under section 
        126C.10, subdivision 20; and referendum revenue under section 
        126C.17. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 27.  Minnesota Statutes 1998, section 128D.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NO ELECTION.] Subject to the provisions of 
        subdivisions 7 to 10, the school district may also by a 
        two-thirds majority vote of all the members of its board of 
        education and without any election by the voters of the 
        district, issue and sell in each calendar year general 
        obligation bonds of the district in an amount not to exceed 
        5-1/10 per cent of the net tax capacity of the taxable property 
        in the district (plus, for calendar years 1990 to 2003, an 
        amount not to exceed $7,500,000, and for calendar years 2004 to 
        2008 an amount not to exceed $15,000,000; with an additional 
        provision that any amount of bonds so authorized for sale in a 
        specific year and not sold can be carried forward and sold in 
        the year immediately following).  
           Sec. 28.  Laws 1992, chapter 499, article 7, section 31, as 
        amended by Laws 1998, chapter 398, article 1, section 39, and 
        Laws 1999, chapter 241, article 1, section 54, is amended to 
        read: 
           Sec. 31.  [REPEALER.] 
           Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
        124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
        124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
        Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
        23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
        124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
        124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
        1; and 124A.29, subdivision 1, are repealed effective June 30, 
        2002 2004; Laws 1991, chapter 265, article 7, section 35, is 
        repealed. 
           Sec. 29.  Laws 1992, chapter 499, article 7, section 32, is 
        amended to read: 
           Sec. 32.  [EFFECTIVE DATE.] 
           Sections 1, 9, 14, 18, 19, 20, 21, 22, 23, and 30 are 
        effective the day following final enactment.  Sections 4 to 8 
        are effective for revenue for fiscal year 2000 2002. 
           Sec. 30.  Laws 1999, chapter 241, article 1, section 68, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
        general and supplemental education aid:  
         $3,062,321,000 $3,066,166,000    .....     2000
         $3,160,518,000 $3,247,635,000    .....     2001
           The 2000 appropriation includes $272,186,000 for 1999 and 
        $2,790,135,000 $2,793,980,000 for 2000.  
           The 2001 appropriation includes $310,015,000 $310,442,000 
        for 2000 and $2,850,503,000 $2,937,193,000 for 2001.  
           Sec. 31.  Laws 1999, chapter 241, article 1, section 68, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
        transportation of pupils attending post-secondary institutions 
        according to Minnesota Statutes, section 124D.09, or for 
        transportation of pupils attending nonresident districts 
        according to Minnesota Statutes, section 124D.03: 
             $102,000 $70,000      .....     2000
             $102,000 $70,000      .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 32.  Laws 1999, chapter 241, article 1, section 68, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
        cooperation revenue aid: 
             $5,940,000 $5,881,000    .....     2000
             $  563,000 $  556,000    .....     2001
           The 2000 appropriation includes $869,000 for 1999 and 
        $5,071,000 $5,012,000 for 2000. 
           The 2001 appropriation includes $563,000 $556,000 for 2000 
        and $0 for 2001. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 33.  Laws 1999, chapter 241, article 1, section 70, is 
        amended to read: 
           Sec. 70.  [EFFECTIVE DATES.] 
           Sections 13, 14, 26, 30, 37, and 39 are effective for 
        revenue for fiscal year 2000 and later.  Section 41 is effective 
        for revenue for fiscal year 2001 and later.  Sections 46, 47, 
        and 55 to 60 are effective the day following final enactment.  
        Section 61 is effective for taxes payable in 2000 and later. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 34.  [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 
           (a) For fiscal year 2001 only, a school district's training 
        and experience replacement revenue equals the sum of the 
        following: 
           (1) the ratio of the amount of training and experience 
        revenue the district would have received for fiscal year 1999 
        calculated using the training and experience index in Minnesota 
        Statutes 1996, section 124A.04, to its resident pupil units for 
        that year, times the district's adjusted marginal cost pupil 
        units for fiscal year 2001, times .06; plus 
           (2) the difference between .47 times the training and 
        experience revenue the district would have received for fiscal 
        year 1999, calculated using the training and experience index in 
        Minnesota Statutes 1996, section 124A.04, and the amount 
        calculated in Minnesota Statutes, section 126C.10, subdivision 
        5, for fiscal year 2001, but not less than zero. 
           (b) This revenue is paid entirely in fiscal year 2001. 
           Sec. 35.  [LEVY RECOGNITION FOR INTEGRATION LEVY 
        ADJUSTMENT.] 
           Notwithstanding Minnesota Statutes, section 123B.75, 
        subdivision 5, the full amount of integration levy for taxes 
        payable in 2001, attributable to fiscal year 2001, for school 
        districts receiving revenue under Minnesota Statutes, section 
        124D.86, subdivision 3, clause (4), shall be recognized in 
        fiscal year 2001. 
           Sec. 36.  [FISCAL YEARS 2003 TO 2007 AIRPORT RUNWAY IMPACT 
        PUPIL UNIT AID; RICHFIELD.] 
           Subdivision 1.  [AIRPORT IMPACT ZONE PUPIL UNITS, 
        DEFINITION.] For the purposes of this section, "airport impact 
        zone pupil units" means the number of pupil units, according to 
        Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 
        1, in school year 1998-1999 that were attributable to the 
        airport impact zone, as defined in Laws 1999, chapter 243, 
        article 16, section 35, subdivision 1. 
           Subd. 2.  [FISCAL YEAR 2003.] For fiscal year 2003 only, 
        independent school district No. 280, Richfield, is eligible for 
        declining pupil unit aid equal to the product of 70 percent of 
        the airport impact zone pupil units times the general education 
        formula allowance for fiscal year 2003. 
           Subd. 3.  [FISCAL YEAR 2004.] For fiscal year 2004 only, 
        independent school district No. 280, Richfield, is eligible for 
        declining pupil unit aid equal to the product of 70 percent of 
        the airport impact zone pupil units times the general education 
        formula allowance for fiscal year 2004. 
           Subd. 4.  [FISCAL YEAR 2005.] For fiscal year 2005 only, 
        independent school district No. 280, Richfield, is eligible for 
        declining pupil unit aid equal to the product of 52.5 percent of 
        the airport impact zone pupil units times the general education 
        formula allowance for fiscal year 2005. 
           Subd. 5.  [FISCAL YEAR 2006.] For fiscal year 2006 only, 
        independent school district No. 280, Richfield, is eligible for 
        declining pupil unit aid equal to the product of 35 percent of 
        the airport impact zone pupil units times the general education 
        formula allowance for fiscal year 2006. 
           Subd. 6.  [FISCAL YEAR 2007.] For fiscal year 2007 only, 
        independent school district No. 280, Richfield, is eligible for 
        declining pupil unit aid equal to the product of 17.5 percent of 
        the airport impact zone pupil units times the general education 
        formula allowance for fiscal year 2007. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 37.  [SPARSITY CORRECTION REVENUE.] 
           Subdivision 1.  [QUALIFICATION FOR REVENUE.] A school 
        district qualifies for sparsity correction revenue if it 
        qualifies for sparsity revenue, according to Minnesota Statutes, 
        section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 
        2001 and the amount of sparsity revenue it received in those 
        years is less than the amount it would have received in fiscal 
        year 2000 or 2001 prior to the passage of Laws 1999, chapter 
        241, article 1, sections 18 and 19. 
           Subd. 2.  [FISCAL YEAR 2000 CALCULATION.] For fiscal year 
        2000, a school district's sparsity correction revenue equals the 
        difference between sparsity revenue in fiscal year 2000 
        calculated according to Laws 1999, chapter 241, article 1, 
        sections 18 and 19, and the sparsity revenue the district would 
        have received for fiscal year 2000 had these sections of law not 
        been approved. 
           Subd. 3.  [FISCAL YEAR 2001 CALCULATION.] For fiscal year 
        2001, a school district's sparsity correction revenue equals .5 
        times the difference between sparsity revenue in fiscal year 
        2001 calculated according to Laws 1999, chapter 241, article 1, 
        sections 18 and 19, and the sparsity revenue the district would 
        have received for fiscal year 2001 had these sections of law not 
        been approved. 
           Sec. 38.  [SEVERANCE LEVY; MESABI EAST.] 
           Independent school district No. 2711, Mesabi East, may levy 
        an amount up to $250,000 each year for a period of five years 
        for severance and early retirement incentives for licensed 
        employees who have retired early as a result of the district's 
        combination that was effective July 1, 1991. 
           EFFECTIVE DATE:  This section is effective for taxes 
        payable in 2001 and later years. 
           Sec. 39.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [SPARSITY CORRECTION REVENUE.] For sparsity 
        correction revenue: 
             $1,030,000     .....     2000
             $  515,000     .....     2001
           Subd. 3.  [TRAINING AND EXPERIENCE REPLACEMENT 
        REVENUE.] For training and experience replacement revenue: 
             $30,794,000    .....     2001 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 

                                   ARTICLE 3 
                    KINDERGARTEN THROUGH GRADE 12 EDUCATION 
                                SPECIAL PROGRAMS 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        122A.31, subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENTS FOR AMERICAN SIGN 
        LANGUAGE/ENGLISH INTERPRETERS.] (a) In addition to any other 
        requirements that a school district establishes, any person 
        employed to provide American sign language/English interpreting 
        or sign transliterating services on a full-time or part-time 
        basis for a school district after July 1, 2000, must: 
           (1) hold current interpreter and transliterator 
        certificates awarded by the Registry of Interpreters for the 
        Deaf (RID), or the general level interpreter proficiency 
        certificate awarded by the National Association of the 
        Deaf (NAD), or a comparable state certification from the 
        commissioner of children, families, and learning; and 
           (2) satisfactorily complete an interpreter/transliterator 
        training program affiliated with an accredited educational 
        institution. 
           (b) To provide American sign language/English interpreting 
        or transliterating services on a full-time or part-time basis, a 
        person employed in a school district during the 1999-2000 school 
        year must only comply with paragraph (a), clause (1).  The 
        commissioner shall grant a nonrenewable, one-year provisional 
        certificate to individuals who have not attained a current 
        applicable transliterator certificate pursuant to paragraph (a), 
        clause (1).  During the one-year provisional period, the 
        interpreter/transliterator must develop and implement an 
        education plan in collaboration with a mentor under paragraph 
        (d).  This paragraph shall expire on June 30, 2001. 
           (c) Graduates of an interpreter/transliterator program 
        affiliated with an accredited education institution shall be 
        granted a two-year provisional certificate by the commissioner.  
        During the two-year provisional period, the 
        interpreter/transliterator must develop and implement an 
        education plan in collaboration with a mentor under paragraph 
        (d).  This paragraph applies to spring semester 2000 graduates 
        and thereafter. 
           (d) A mentor of a provisionally certified 
        interpreter/transliterator must be an interpreter/transliterator 
        who has either NAD level IV or V certification or RID certified 
        interpreter and certified transliterator certification and have 
        at least three years interpreting/transliterating experience in 
        any educational setting.  The mentor, in collaboration with the 
        provisionally certified interpreter/transliterator, shall 
        develop and implement an educational plan designed to meet the 
        requirements of paragraph (a), clause (1), and include a weekly 
        on-site mentoring process. 
           (e) A school district may not employ an 
        interpreter/transliterator who has not been certified under 
        paragraphs (a), (b), or (c). 
           Sec. 2.  Minnesota Statutes 1998, section 122A.31, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REIMBURSEMENT.] (a) For purposes of revenue 
        under sections 125A.77 and section 125A.78, the department of 
        children, families, and learning must only reimburse school 
        districts for the services of those interpreters/transliterators 
        who satisfy the standards of competency under this section.  
           (b) Notwithstanding paragraph (a), a district shall be 
        reimbursed for the services of interpreters with a nonrenewable 
        provisional certificate and interpreters/transliterators 
        employed to mentor the provisional certified interpreters. 
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        124D.68, subdivision 9, is amended to read: 
           Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
        attending an eligible program full time under subdivision 3, 
        paragraph (d), the department must pay 90 percent of the 
        district's average general education revenue less basic skills 
        revenue to the eligible program and ten percent of the 
        district's average general education revenue less basic skills 
        revenue to the resident contracting district within 30 days 
        after the eligible program verifies enrollment using the form 
        provided by the department.  For a pupil attending an eligible 
        program part time, revenue shall be reduced proportionately, 
        according to the amount of time the pupil attends the program, 
        and the payments to the eligible program and the resident 
        contracting district shall be reduced accordingly.  A pupil for 
        whom payment is made according to this section may not be 
        counted by any district for any purpose other than computation 
        of general education revenue.  If payment is made for a pupil 
        under this subdivision, a district shall not reimburse a program 
        under section 124D.69 for the same pupil.  Basic skills revenue 
        shall be paid according to section 126C.10, subdivision 4. 
           (b) The department must pay up to 100 percent of the 
        revenue to the eligible program if there is an agreement to that 
        effect between the school district and the eligible program. 
           (c) Notwithstanding paragraphs (a) and (b), for an eligible 
        program that provides chemical treatment services to students, 
        the department must pay 100 percent of the revenue to the 
        eligible program. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 4.  Minnesota Statutes 1999 Supplement, section 
        124D.84, subdivision 1, is amended to read: 
           Subdivision 1.  [AWARDS.] The commissioner, with the advice 
        and counsel of the Minnesota Indian scholarship committee, may 
        award scholarships to any Minnesota resident student who is of 
        one-fourth or more Indian ancestry, who has applied for other 
        existing state and federal scholarship and grant programs, and 
        who, in the opinion of the commissioner, has the capabilities to 
        benefit from further education.  Scholarships must be 
        for advanced or specialized education accredited degree programs 
        in accredited colleges or universities or for courses in 
        accredited or approved colleges or in business, technical, or 
        vocational schools.  Scholarships shall be used to defray the 
        total cost of education including tuition, incidental fees, 
        books, supplies, transportation, other related school costs and 
        the cost of board and room and shall be paid directly to the 
        college or school concerned.  The total cost of education 
        includes all tuition and fees for each student enrolling in a 
        public institution and the portion of tuition and fees for each 
        student enrolling in a private institution that does not exceed 
        the tuition and fees at a comparable public institution.  Each 
        student shall be awarded a scholarship based on the total cost 
        of the student's education and a standardized need analysis.  
        The amount and type of each scholarship shall be determined 
        through the advice and counsel of the Minnesota Indian 
        scholarship committee.  
           When an Indian student satisfactorily completes the work 
        required by a certain college or school in a school year the 
        student is eligible for additional scholarships, if additional 
        training is necessary to reach the student's educational and 
        vocational objective.  Scholarships may not be given to any 
        Indian student for more than five years of study without special 
        approval of the Minnesota Indian scholarship committee.  
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        124D.88, subdivision 3, is amended to read: 
           Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
        school districts that meets the criteria required under 
        paragraph (b)(1) may apply for a magnet school grant in an 
        amount not to exceed $20,800,000 for the approved costs or 
        expansion of a magnet school facility. 
           (b)(1) Any group of districts that submits an application 
        for a grant shall submit a proposal to the commissioner for 
        review and comment under section 123B.71, and the commissioner 
        shall prepare a review and comment on the proposed magnet school 
        facility, regardless of the amount of the capital expenditure 
        required to design, acquire, construct, remodel, improve, 
        furnish, or equip the facility.  The commissioner must not 
        approve an application for a magnet school grant for any 
        facility unless the facility receives a favorable review and 
        comment under section 123B.71 and the participating districts: 
           (i) establish a joint powers board under section 471.59 to 
        represent all participating districts and govern the magnet 
        school facility; 
           (ii) design the planned magnet school facility to meet the 
        applicable requirements contained in Minnesota Rules, chapter 
        3535; 
           (iii) submit a statement of need, including reasons why the 
        magnet school will facilitate integration and improve learning; 
           (iv) prepare an educational plan that includes input from 
        both community and professional staff; and 
           (v) develop an education program that will improve learning 
        opportunities for students attending the magnet school. 
           (2) The districts may develop a plan that permits social 
        service, health, and other programs serving students and 
        community residents to be located within the magnet school 
        facility.  The commissioner shall consider this plan when 
        preparing a review and comment on the proposed facility.  
           (c) When two or more districts enter into an agreement 
        establishing a joint powers board to govern the magnet school 
        facility, all member districts shall have the same powers.  
           (d) A joint powers board of participating school districts 
        established under paragraphs (b) and (c) that intends to apply 
        for a grant must adopt a resolution stating the costs of the 
        proposed project, the purpose for which the debt is to be 
        incurred, and an estimate of the dates when the contracts for 
        the proposed project will be completed.  A copy of the 
        resolution must accompany any application for a state grant 
        under this section. 
           (e)(1) The commissioner shall examine and consider all 
        grant applications.  If the commissioner finds that any joint 
        powers district is not a qualified grant applicant, the 
        commissioner shall promptly notify that joint powers board.  The 
        commissioner shall make awards to no more than two qualified 
        applicants whose applications have been on file with the 
        commissioner more than 30 days.  
           (2) A grant award is subject to verification by the joint 
        powers board under paragraph (f).  A grant award must not be 
        made until the participating districts determine the site of the 
        magnet school facility.  If the total amount of the approved 
        applications exceeds the amount of grant funding that is or can 
        be made available, the commissioner shall allot the available 
        amount equally between the approved applicant districts.  The 
        commissioner shall promptly certify to each qualified joint 
        powers board the amount, if any, of the grant awarded to it. 
           (f) Each grant must be evidenced by a contract between the 
        joint powers board and the state acting through the 
        commissioner.  The contract obligates the state to pay to the 
        joint powers board an amount computed according to paragraph 
        (e)(2) and a schedule, and terms and conditions acceptable to 
        the commissioner of finance. 
           (g) Notwithstanding the provisions of section 123B.02, 
        subdivision 3, the joint powers and its individual members may 
        enter into long-term lease agreements as part of the magnet 
        school program.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 6.  Minnesota Statutes 1998, section 124D.88, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [START-UP COSTS.] During the first two years of a 
        metropolitan magnet school's operation, the school is eligible 
        for aid to pay for start-up costs and additional operating 
        costs.  Start-up cost aid equals $500 times the magnet school's 
        pupil units served for that year. 
           Sec. 7.  Minnesota Statutes 1998, section 124D.892, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
        establish an advisory board composed of: 
           (1) eight nine superintendents, each of whom eight shall be 
        selected by the superintendents of the school districts located 
        in whole or in part within each of the eight metropolitan 
        districts established under section 473.123, subdivision 3c, and 
        one superintendent of a district outside the seven-county 
        metropolitan area and is from a district that is considered 
        racially isolated or has a racially isolated school site 
        according to Minnesota Rules, part 3535.0110; and 
           (2) one person each selected by the Indian affairs council, 
        the council on Asian-Pacific Minnesotans, the council on Black 
        Minnesotans, and the council on affairs of Chicano/Latino 
        people; and 
           (3) the superintendent of independent school district No. 
        709, Duluth. 
           The advisory board shall advise the office on complying 
        with the requirements under subdivision 1.  The advisory board 
        may solicit comments from teachers, parents, students, and 
        interested community organizations and others. 
           Sec. 8.  Minnesota Statutes 1999 Supplement, section 
        125A.027, subdivision 3, is amended to read: 
           Subd. 3.  [IMPLEMENTATION TIMELINE.] By July 1, 2000, the 
        individual interagency intervention plan must be available and 
        by January 1, 2001, all governing boards of interagency early 
        intervention committees statewide must implement a coordinated 
        service system for children up to age five with disabilities 
        consistent with the requirements of this section and section 
        125A.023 and the evaluation results from the demonstration 
        projects under section 125A.023, subdivision 5.  Children with 
        disabilities up to the age of 21 shall be eligible for 
        coordinated services and their eligibility to receive such 
        services under this section shall be phased in over a four-year 
        period as follows: 
           (1) July 1, 2001, children up to age nine become eligible; 
           (2) July 1, 2002, children up to age 14 become eligible; 
        and 
           (3) July 1, 2003, children up to age 21 become eligible. 
           Sec. 9.  Minnesota Statutes 1999 Supplement, section 
        125A.15, is amended to read: 
           125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
           The responsibility for special instruction and services for 
        a child with a disability temporarily placed in another district 
        for care and treatment shall be determined in the following 
        manner: 
           (a) The district of residence of a child shall be the 
        district in which the child's parent resides, if living, or the 
        child's guardian, or the district designated by the commissioner 
        if neither parent nor guardian is living within the state. 
           (b) When a child is temporarily placed for care and 
        treatment in a day program located in another district and the 
        child continues to live within the district of residence during 
        the care and treatment, the district of residence is responsible 
        for providing transportation to and from the care and treatment 
        facility and an appropriate educational program for the child.  
        Transportation shall only be provided by the district during 
        regular operating hours of the district.  The district may 
        provide the educational program at a school within the district 
        of residence, at the child's residence, or in the district in 
        which the day treatment center is located by paying tuition to 
        that district. 
           (c) When a child is temporarily placed in a residential 
        program for care and treatment, the nonresident district in 
        which the child is placed is responsible for providing an 
        appropriate educational program for the child and necessary 
        transportation while the child is attending the educational 
        program; and must bill the district of the child's residence for 
        the actual cost of providing the program, as outlined in section 
        125A.11, except as provided in paragraph (d).  However, the 
        board, lodging, and treatment costs incurred in behalf of a 
        child with a disability placed outside of the school district of 
        residence by the commissioner of human services or the 
        commissioner of corrections or their agents, for reasons other 
        than providing for the child's special educational needs must 
        not become the responsibility of either the district providing 
        the instruction or the district of the child's residence.  For 
        the purposes of this section, the state correctional facilities 
        operated on a fee-for-service basis are considered to be 
        residential programs for care and treatment. 
           (d) A privately owned and operated residential facility may 
        enter into a contract to obtain appropriate educational programs 
        for special education children and services with a joint powers 
        entity.  The entity with which the private facility contracts 
        for special education services shall be the district responsible 
        for providing students placed in that facility an appropriate 
        educational program in place of the district in which the 
        facility is located.  If a privately owned and operated 
        residential facility does not enter into a contract under this 
        paragraph, then paragraph (c) applies. 
           (e) The district of residence shall pay tuition and other 
        program costs, not including transportation costs, to the 
        district providing the instruction and services.  The district 
        of residence may claim general education aid for the child as 
        provided by law.  Transportation costs must be paid by the 
        district responsible for providing the transportation and the 
        state must pay transportation aid to that district. 
           Sec. 10.  Minnesota Statutes 1999 Supplement, section 
        125A.51, is amended to read: 
           125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
        EDUCATION AND TRANSPORTATION.] 
           The responsibility for providing instruction and 
        transportation for a pupil without a disability who has a 
        short-term or temporary physical or emotional illness or 
        disability, as determined by the standards of the commissioner, 
        and who is temporarily placed for care and treatment for that 
        illness or disability, must be determined as provided in this 
        section.  
           (a) The school district of residence of the pupil is the 
        district in which the pupil's parent or guardian resides. 
           (b) When parental rights have been terminated by court 
        order, the legal residence of a child placed in a residential or 
        foster facility for care and treatment is the district in which 
        the child resides when parental rights have been terminated. 
           (c) Before the placement of a pupil for care and treatment, 
        the district of residence must be notified and provided an 
        opportunity to participate in the placement decision.  When an 
        immediate emergency placement is necessary and time does not 
        permit resident district participation in the placement 
        decision, the district in which the pupil is temporarily placed, 
        if different from the district of residence, must notify the 
        district of residence of the emergency placement within 15 days 
        of the placement.  
           (d) When a pupil without a disability is temporarily placed 
        for care and treatment in a day program and the pupil continues 
        to live within the district of residence during the care and 
        treatment, the district of residence must provide instruction 
        and necessary transportation to and from the treatment facility 
        for the pupil.  Transportation shall only be provided by the 
        district during regular operating hours of the district.  The 
        district may provide the instruction at a school within the 
        district of residence, at the pupil's residence, or in the case 
        of a placement outside of the resident district, in the district 
        in which the day treatment program is located by paying tuition 
        to that district.  The district of placement may contract with a 
        facility to provide instruction by teachers licensed by the 
        state board of teaching.  
           (e) When a pupil without a disability is temporarily placed 
        in a residential program for care and treatment, the district in 
        which the pupil is placed must provide instruction for the pupil 
        and necessary transportation while the pupil is receiving 
        instruction, and in the case of a placement outside of the 
        district of residence, the nonresident district must bill the 
        district of residence for the actual cost of providing the 
        instruction for the regular school year and for summer school, 
        excluding transportation costs.  When a pupil without a 
        disability is temporarily placed in a residential program 
        outside the district of residence, the administrator of the 
        court placing the pupil must send timely written notice of the 
        placement to the district of residence.  The district of 
        placement may contract with a residential facility to provide 
        instruction by teachers licensed by the state board of teaching. 
        For purposes of this section, the state correctional facilities 
        operated on a fee-for-service basis are considered to be 
        residential programs for care and treatment. 
           (f) The district of residence must include the pupil in its 
        residence count of pupil units and pay tuition as provided in 
        section 123A.488 to the district providing the instruction.  
        Transportation costs must be paid by the district providing the 
        transportation and the state must pay transportation aid to that 
        district.  For purposes of computing state transportation aid, 
        pupils governed by this subdivision must be included in the 
        disabled transportation category.  
           Sec. 11.  Minnesota Statutes 1999 Supplement, section 
        125A.76, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, the definitions in this subdivision apply. 
           (a) "Base year" for fiscal year 1998 and later fiscal years 
        means the second fiscal year preceding the fiscal year for which 
        aid will be paid. 
           (b) "Basic revenue" has the meaning given it in section 
        126C.10, subdivision 2.  For the purposes of computing basic 
        revenue pursuant to this section, each child with a disability 
        shall be counted as prescribed in section 126C.05, subdivision 1.
           (c) "Essential personnel" means teachers, related services, 
        and support services staff providing direct services to students.
           (d) "Average daily membership" has the meaning given it in 
        section 126C.05. 
           (e) "Program growth factor" means 1.012 1.08 for fiscal 
        year 2002, and 1.047 for fiscal year 2003 and later. 
           Sec. 12.  Minnesota Statutes 1999 Supplement, section 
        125A.76, subdivision 2, is amended to read: 
           Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
        education base revenue equals the sum of the following amounts 
        computed using base year data: 
           (1) 68 percent of the salary of each essential person 
        employed in the district's program for children with a 
        disability during the fiscal year, not including the share of 
        salaries for personnel providing health-related services counted 
        in clause (8), whether the person is employed by one or more 
        districts or a Minnesota correctional facility operating on a 
        fee-for-service basis; 
           (2) for the Minnesota state academy for the deaf or the 
        Minnesota state academy for the blind, 68 percent of the salary 
        of each instructional aide assigned to a child attending the 
        academy, if that aide is required by the child's individual 
        education plan; 
           (3) for special instruction and services provided to any 
        pupil by contracting with public, private, or voluntary agencies 
        other than school districts, in place of special instruction and 
        services provided by the district, 52 percent of the difference 
        between the amount of the contract and the basic revenue of the 
        district for that pupil for the fraction of the school day the 
        pupil receives services under the contract; 
           (4) for special instruction and services provided to any 
        pupil by contracting for services with public, private, or 
        voluntary agencies other than school districts, that are 
        supplementary to a full educational program provided by the 
        school district, 52 percent of the amount of the contract for 
        that pupil; 
           (5) for supplies and equipment purchased or rented for use 
        in the instruction of children with a disability, not including 
        the portion of the expenses for supplies and equipment used to 
        provide health-related services counted in clause (8), an amount 
        equal to 47 percent of the sum actually expended by the 
        district, or a Minnesota correctional facility operating on a 
        fee-for-service basis, but not to exceed an average of $47 in 
        any one school year for each child with a disability receiving 
        instruction; 
           (6) for fiscal years 1997 and later, special education base 
        revenue shall include amounts under clauses (1) to (5) for 
        special education summer programs provided during the base year 
        for that fiscal year; and 
           (7) for fiscal years 1999 and later, the cost of providing 
        transportation services for children with disabilities under 
        section 123B.92, subdivision 1, paragraph (b), clause (4); and 
           (8) for fiscal years 2001 and later, the cost of salaries, 
        supplies and equipment, and other related costs actually 
        expended by the district for the nonfederal share of medical 
        assistance services according to section 256B.0625, subdivision 
        26. 
           The department shall establish procedures through the 
        uniform financial accounting and reporting system to identify 
        and track all revenues generated from third-party billings as 
        special education revenue at the school district level; include 
        revenue generated from third-party billings as special education 
        revenue in the annual cross-subsidy report; and exclude 
        third-party revenue from calculation of excess cost aid to the 
        districts. 
           (b) If requested by a school district operating a special 
        education program during the base year for less than the full 
        fiscal year, or a school district in which is located a 
        Minnesota correctional facility operating on a fee-for-service 
        basis for less than the full fiscal year, the commissioner may 
        adjust the base revenue to reflect the expenditures that would 
        have occurred during the base year had the program been operated 
        for the full fiscal year. 
           (c) Notwithstanding paragraphs (a) and (b), the portion of 
        a school district's base revenue attributable to a Minnesota 
        correctional facility operating on a fee-for-service basis 
        during the facility's first year of operating on a 
        fee-for-service basis shall be computed using current year data. 
           Sec. 13.  Minnesota Statutes 1999 Supplement, section 
        125A.79, subdivision 2, is amended to read: 
           Subd. 2.  [EXCESS COST AID, FISCAL YEARS 2000 AND 2001.] 
        For fiscal years 2000 and 2001, a district's special education 
        excess cost aid equals the greatest of: 
           (a) 75 percent of the difference between (1) the district's 
        unreimbursed special education cost and (2) 4.4 4.36 percent of 
        the district's general revenue; 
           (b) 70 percent of the difference between (1) the increase 
        in the district's unreimbursed special education cost between 
        the base year as defined in section 125A.76, subdivision 1, and 
        the current year and (2) 1.6 percent of the district's general 
        revenue; or 
           (c) zero. 
           Sec. 14.  Minnesota Statutes 1999 Supplement, section 
        125A.79, subdivision 5, is amended to read: 
           Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
        and later, a district's initial excess cost aid equals the 
        greatest of: 
           (1) 75 percent of the difference between (i) the district's 
        unreimbursed special education cost and (ii) 4.4 4.36 percent of 
        the district's general revenue; 
           (2) 70 percent of the difference between (i) the increase 
        in the district's unreimbursed special education cost between 
        the base year as defined in section 125A.76, subdivision 1, and 
        the current year and (ii) 1.6 percent of the district's general 
        revenue; or 
           (3) zero. 
           Sec. 15.  Minnesota Statutes 1999 Supplement, section 
        127A.42, subdivision 3, is amended to read: 
           Subd. 3.  [ASSURANCE OF COMPLIANCE.] (a) After consultation 
        with the commissioner of human rights, the commissioner of 
        children, families, and learning shall adopt rules in 
        conformance with chapter 14.  The rules must direct districts to 
        file with the commissioner of children, families, and learning 
        assurances of compliance with state and federal laws prohibiting 
        discrimination and specify the information required to be 
        submitted in support of the assurances.  The commissioner shall 
        provide copies of the assurances and the supportive information 
        to the commissioner of human rights The assurances must be 
        provided in a form and manner prescribed by the commissioner.  
           (b) If, after reviewing the assurances and the supportive 
        information it appears that one or more violations of the 
        Minnesota Human Rights Act are occurring in the a district, the 
        commissioner of human rights shall notify the commissioner of 
        the violations, and the commissioner of children, families, and 
        learning may then proceed pursuant to subdivision 4. 
           Sec. 16.  Laws 1999, chapter 216, article 4, section 12, is 
        amended to read: 
           Sec. 12.  [SELECTION OF VENDOR TO OPERATE EDUCATIONAL 
        PROGRAM AT MCF-RED WING.] 
           The assessment for excellence task force, appointed by the 
        commissioner of corrections, shall assist the commissioner of 
        administration in developing a request for proposals from 
        vendors to operate the educational program at the Minnesota 
        correctional facility - Red Wing.  The commissioner of 
        administration shall issue the request for proposals by November 
        1, 1999, and shall select a vendor who shall begin operating the 
        program by January 1, 2000.  The commissioner shall issue a new 
        request for proposals by November 1, 2005, and shall issue a new 
        request for proposals every other year thereafter.  The 
        department of corrections may respond to the request for 
        proposals. 
           Sec. 17.  Laws 1999, chapter 241, article 2, section 60, 
        subdivision 7, is amended to read: 
           Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
        school aid according to Minnesota Statutes, section 124D.83: 
             $2,706,000 $1,671,000  .....     2000
             $2,790,000 $1,882,000  .....     2001
           The 2000 appropriation includes $283,000 for 1999 and 
        $2,423,000 $1,388,000 for 2000. 
           The 2001 appropriation includes $269,000 $154,000 for 2000 
        and $2,521,000 $1,728,000 for 2001. 
           Sec. 18.  Laws 1999, chapter 241, article 2, section 60, 
        subdivision 9, is amended to read: 
           Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
        program grants under Laws 1994, chapter 647, article 8, section 
        38: 
             $1,750,000     .....     2000 
             $1,750,000     .....     2001 
           These amounts may be used for magnet school programs 
        according to Minnesota Statutes, section 124D.88.  The budget 
        base for this program for fiscal year 2003 and each year 
        thereafter is $1,050,000. 
           Sec. 19.  Laws 1999, chapter 241, article 2, section 60, 
        subdivision 12, is amended to read: 
           Subd. 12.  [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: 
             $  443,000 $  433,000  .....     2000 
             $1,064,000 $4,263,000  .....     2001 
           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. 20.  Laws 1999, chapter 241, article 2, section 60, 
        subdivision 13, is amended to read: 
           Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
        teacher travel for home-based services according to Minnesota 
        Statutes, section 125A.75, subdivision 1: 
             $133,000 $125,000    .....     2000 
             $139,000 $130,000    .....     2001 
           The 2000 appropriation includes $11,000 for 1999 and 
        $122,000 $114,000 for 2000.  
           The 2001 appropriation includes $13,000 for 2000 and 
        $126,000 $117,000 for 2001.  
           Sec. 21.  Laws 1999, chapter 241, article 2, section 60, 
        subdivision 14, is amended to read: 
           Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
        cost aid: 
             $60,498,000 $66,032,000   .....     2000 
             $79,405,000 $89,072,000   .....     2001 
           The 2000 appropriation includes $4,693,000 for 1999 and 
        $55,805,000 $61,339,000 for 2000.  
           The 2001 appropriation includes $6,200,000 $6,815,000 for 
        2000 and $73,205,000 $82,257,000 for 2001. 
           Sec. 22.  Laws 1999, chapter 241, article 2, section 60, 
        subdivision 17, is amended to read: 
           Subd. 17.  [INTEGRATION AID.] For integration aid: 
             $37,182,000 $37,610,000  .....     2000 
             $43,787,000 $55,828,000  .....     2001 
           The 2000 appropriation includes $2,902,000 for 1999 and 
        $34,280,000 $34,708,000 for 2000. 
           The 2001 appropriation includes $3,809,000 $3,856,000 for 
        2000 and $39,978,000 $51,972,000 for 2001.  
           Sec. 23.  Laws 1999, chapter 241, article 2, section 60, 
        subdivision 19, is amended to read: 
           Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
        TRANSPORTATION AID.] (a) For interdistrict desegregation or 
        integration transportation aid under Minnesota Statutes, section 
        124D.87: 
             $970,000       .....     2000
             $970,000       .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year.  
           (b) For fiscal year 2003 and later, the budget base for 
        this program is the forecasted cost of fully reimbursing 
        districts according to Minnesota Statutes, section 124D.87. 
           Sec. 24.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 
           For fiscal year 2000, a school district shall receive an 
        amount of revenue equal to $8.15 times the district's adjusted 
        marginal cost pupil units.  For fiscal year 2001, a school 
        district shall receive an amount of revenue equal to $19 times 
        the district's adjusted marginal cost pupil units.  Special 
        education cross-subsidy revenue must be used to pay for a 
        district's unfunded special education costs that are currently 
        cross-subsidized by a district's general education revenue. 
           Sec. 25.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [LITTLE FALLS; REVENUE REIMBURSEMENT.] For 
        independent school district No. 482, Little Falls, for partial 
        reimbursement of revenue returned to the state as a result of a 
        finding that the district had over-counted kindergarten pupils 
        in earlier years: 
             $300,000     .....     2000 
           Revenue appropriated to the district under this subdivision 
        must be used for all-day kindergarten services.  This is a 
        one-time appropriation. 
           Subd. 3.  [NORTHLAND LEARNING CENTER.] For a grant to the 
        Northland joint powers board for start-up costs associated with 
        the delay of special education funding for the Northland 
        learning center: 
             $200,000     .....     2001 
           This is a one-time appropriation. 
           Subd. 4.  [MAGNET SCHOOL START-UP AID.] For magnet school 
        start-up aid under Minnesota Statutes, section 124D.88: 
             $225,000     .....     2001 
           Subd. 5.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 
        special education cross-subsidy revenue: 
             $ 7,898,000     .....     2000 
             $18,396,000     .....     2001 
           Subd. 6.  [GRANT TO INDEPENDENT SCHOOL DISTRICT NO. 707, 
        NETT LAKE.] (a) For a grant to independent school district No. 
        707, Nett Lake, to pay obligations of the school district for 
        unemployment compensation: 
             $ 30,000     .....     2001
           (b) This appropriation must be paid to the appropriate 
        state agency for the purposes of paragraph (a) in the name of 
        the school district.  This is a one-time appropriation. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 26.  [REPEALER.] 
           Minnesota Rules, part 3535.9920, is repealed. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 

                                   ARTICLE 4 
                    KINDERGARTEN THROUGH GRADE 12 EDUCATION 
                           EMPLOYMENT AND TRANSITIONS 
           Section 1.  Minnesota Statutes 1998, section 124D.44, is 
        amended to read: 
           124D.44 [MATCH REQUIREMENTS.] 
           Youth works grant funds must be used for the living 
        allowance, cost of employer taxes under sections 3111 and 3301 
        of the Internal Revenue Code of 1986, workers' compensation 
        coverage, and health benefits for each program participant, and 
        administrative expenses, which must not exceed five percent of 
        total program costs.  Youthworks grant funds may also be used to 
        supplement applicant resources to fund postservice benefits for 
        program participants.  Applicant resources, from sources and in 
        a form determined by the commission and, beginning January 1, 
        1997, the council, must be used to provide for all other program 
        costs, including the portion of the applicant's obligation for 
        postservice benefits that is not covered by state or federal 
        grant funds and such costs as supplies, materials, 
        transportation, and salaries and benefits of those staff 
        directly involved in the operation, internal monitoring, and 
        evaluation of the program.  Administrative expenses must not 
        exceed five percent of total program costs.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        124D.453, subdivision 3, is amended to read: 
           Subd. 3.  [CAREER AND TECHNICAL AID.] A district's career 
        and technical education aid for fiscal year years 2000 and 2001 
        equals the lesser of: 
           (a) $73 times the district's average daily membership in 
        grades 10 to 12; or 
           (b) 25 percent of approved expenditures for the following: 
           (1) salaries paid to essential, licensed personnel 
        providing direct instructional services to students in that 
        fiscal year for services rendered in the district's approved 
        career and technical education programs; 
           (2) contracted services provided by a public or private 
        agency other than a Minnesota school district or cooperative 
        center under subdivision 7; 
           (3) necessary travel between instructional sites by 
        licensed career and technical education personnel; 
           (4) necessary travel by licensed career and technical 
        education personnel for vocational student organization 
        activities held within the state for instructional purposes; 
           (5) curriculum development activities that are part of a 
        five-year plan for improvement based on program assessment; 
           (6) necessary travel by licensed career and technical 
        education personnel for noncollegiate credit bearing 
        professional development; and 
           (7) specialized vocational instructional supplies. 
           (c) Up to ten percent of a district's career and technical 
        aid may be spent on equipment purchases.  Districts using career 
        and technical aid for equipment purchases must report to the 
        department on the improved learning opportunities for students 
        that result from the investment in equipment.  
           Sec. 3.  Minnesota Statutes 1998, section 124D.454, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ADJUSTED SECONDARY 
        VOCATIONAL-DISABLED TRANSITION-DISABLED BASE REVENUE.] For 
        fiscal year 1996 and later, a district's adjusted secondary 
        vocational-disabled transition-disabled base revenue equals the 
        district's secondary vocational-disabled transition-disabled 
        base revenue times the ratio of the district's average daily 
        membership for the current school year to the district's average 
        daily membership for the base year. 
           Sec. 4.  Minnesota Statutes 1998, section 124D.454, 
        subdivision 6, is amended to read: 
           Subd. 6.  [SCHOOL DISTRICT SECONDARY 
        VOCATIONAL-DISABLED TRANSITION-DISABLED REVENUE.] (a) A school 
        district's secondary vocational-disabled transition-disabled 
        revenue for fiscal year 1996 and later equals the state 
        total secondary vocational-disabled transition-disabled revenue, 
        minus the amount determined under paragraph (b), times the ratio 
        of the district's adjusted secondary 
        vocational-disabled transition-disabled base revenue to the 
        state total adjusted secondary 
        vocational-disabled transition-disabled base revenue. 
           (b) Notwithstanding paragraph (a), if the secondary 
        vocational-disabled transition-disabled base revenue for a 
        district equals zero and no district residents were enrolled 
        in secondary vocational-disabled transition-disabled programs 
        during the base year, the secondary 
        vocational-disabled transition-disabled revenue equals the 
        amount computed according to subdivision 3 using current year 
        data. 
           Sec. 5.  Minnesota Statutes 1998, section 124D.454, 
        subdivision 7, is amended to read: 
           Subd. 7.  [SCHOOL DISTRICT SECONDARY 
        VOCATIONAL-DISABLED TRANSITION-DISABLED AID.] A school 
        district's secondary vocational-disabled transition-disabled aid 
        for fiscal year 1996 and later equals the district's secondary 
        vocational-disabled transition-disabled revenue times the aid 
        percentage factor for that year. 
           Sec. 6.  Laws 1997, chapter 157, section 71, as amended by 
        Laws 1998, chapter 398, article 3, section 11, is amended to 
        read: 
           Sec. 71.  [SCHOOL BANK PILOT PROJECT BANKS.] 
           (a) A school bank sponsored by independent school district 
        No. 31, Bemidji, independent school district No. 316, 
        Greenway-Coleraine, independent school district No. 2170, 
        Staples-Motley, or by independent school district No. 508, St. 
        Peter, that meets all requirements of paragraph (b) is not 
        subject to Minnesota Statutes, section 47.03, subdivision 1, or 
        to any other statute or rule that regulates banks, other 
        financial institutions, or currency exchanges. 
           (b) To qualify under paragraph (a), the school bank must: 
           (1) be operated as part of a high school educational 
        program and under guidelines adopted by the school board; 
           (2) be advised on a regular basis by one or more 
        state-chartered state chartered or federally-chartered federally 
        chartered financial institutions, but not owned or operated by 
        any financial institution; 
           (3) be located on school premises and have as customers 
        only students enrolled in, or employees of, the school in which 
        it is located; and 
           (4) have a written commitment from the school board, 
        guaranteeing reimbursement of any depositor's funds lost due to 
        insolvency of the school bank. 
           (c) Funds of a school bank that meets the requirements of 
        this section are not school district or other public funds for 
        purposes of any state law governing the use or investment of 
        school district or other public funds. 
           (d) The school district shall annually file with the 
        commissioner of commerce a report, prepared by the students and 
        teachers involved, summarizing the operation of the school bank. 
           (e) This section expires June 30, 2000.  The commissioner 
        of commerce shall, no later than December 15, 1999, provide a 
        written report to the legislature regarding this pilot project 
        and any recommended legislation regarding school banks. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 7.  Laws 1999, chapter 241, article 3, section 3, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
        secondary vocational education aid according to Minnesota 
        Statutes, section 124D.453: 
             $11,335,000 $12,413,000    .....     2000 
             $1,130,000  $12,417,000    .....     2001 
           The 2000 appropriation includes $1,159,000 for 1999 and 
        $10,176,000 $11,254,000 for 2000.  The 2001 appropriation 
        includes $1,130,000 $1,250,000 for 2000 and $11,167,000 for 2001.
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 8.  Laws 1999, chapter 241, article 3, section 3, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
        GRANTS.] For education and employment transitions programming 
        under Minnesota Statutes, section 124D.46: 
             $3,225,000     .....     2000 
             $3,225,000 $2,225,000     .....     2001
           $200,000 each year is for the development and 
        implementation of the ISEEK Internet-based education and 
        employment information system. 
           $1,000,000 each in fiscal year 2000 is for an employer 
        rebate program for qualifying employers who offer youth 
        internships to educators. 
           $500,000 each year is for youth entrepreneurship grants.  
           $750,000 each year is for youth apprenticeship grants. 
           $300,000 each year is for grants to programs in cities of 
        the first class to expand the number of at-risk students 
        participating in school-to-work projects. 
           $350,000 each year is for agricultural school-to-work 
        grants. 
           $125,000 each year is to conduct a high school follow-up 
        survey to include first, third, and sixth year graduates of 
        Minnesota schools. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 9.  Laws 1999, chapter 241, article 3, section 5, is 
        amended to read: 
           Sec. 5.  [REPEALER.] 
           Minnesota Statutes 1998, section 124D.453, is repealed 
        effective for revenue for fiscal year 2001 2002. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 

                                   ARTICLE 5 
                    KINDERGARTEN THROUGH GRADE 12 EDUCATION 
                           FACILITIES AND TECHNOLOGY 
           Section 1.  Minnesota Statutes 1998, section 123A.485, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NEW DISTRICTS.] If a district consolidates with 
        another district that has received aid under section 123A.39, 
        subdivision 3, or 123A.485 for a combination or consolidation 
        taking effect within six years of the effective date of the new 
        consolidation, only the pupil units in the district or districts 
        not previously reorganized must be counted for aid purposes 
        under subdivision 2.  If two or more districts consolidate and 
        all districts received aid under subdivision 2 for a 
        consolidation taking effect within six years of the effective 
        date of the new consolidation, only one quarter of the pupil 
        units in the newly created district must be used to determine 
        aid under subdivision 2. 
           Sec. 2.  Minnesota Statutes 1998, section 123B.51, 
        subdivision 6, is amended to read: 
           Subd. 6.  [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 
        the sale or exchange of school buildings or real property of the 
        district must be used as provided in this subdivision. 
           (b) In districts with outstanding bonds, the proceeds of 
        the sale or exchange shall first be deposited in the debt 
        retirement fund of the district in an amount sufficient to meet 
        when due that percentage of the principal and interest payments 
        for outstanding bonds which is ascribable to the payment of 
        expenses necessary and incidental to the construction or 
        purchase of the particular building or property which is sold.  
           (c) After satisfying the requirements of paragraph (b), a 
        district with outstanding bonds may deposit proceeds of the sale 
        or exchange in its capital expenditure fund general fund 
        reserved for operating capital account if the amount deposited 
        is used for the following:  
           (1) for expenditures for the cleanup of polychlorinated 
        biphenyls, if the method for cleanup is approved by the 
        department; 
           (2) for capital expenditures for the betterment, as defined 
        in section 475.51, subdivision 8, of district-owned school 
        buildings; or 
           (3) to replace the building or property sold.  
           (d) In a district with outstanding bonds, the amount of the 
        proceeds of the sale or exchange remaining after the application 
        of paragraphs (b) and (c), which is sufficient to meet when due 
        that percentage of the principal and interest payments for the 
        district's outstanding bonds which is not governed by paragraph 
        (b), shall be deposited in the debt retirement fund.  
           (e) Any proceeds of the sale or exchange remaining in 
        districts with outstanding bonds after the application of 
        paragraphs (b), (c), and (d), and all proceeds of the sale or 
        exchange in districts without outstanding bonds shall be 
        deposited in the capital expenditure general fund reserved for 
        operating capital account of the district. 
           (f) Notwithstanding paragraphs (c) and (d), a district with 
        outstanding bonds may deposit in its capital expenditure general 
        fund reserved for operating capital account and use for any 
        lawful operating capital expenditure without the reduction of 
        any levy limitation the same percentage of the proceeds of the 
        sale or exchange of a building or property as the percentage of 
        the initial cost of purchasing or constructing the building or 
        property which was paid using revenue from the capital 
        expenditure general fund reserved for operating capital account. 
           Sec. 3.  Minnesota Statutes 1998, section 123B.52, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [DISPOSING OF SURPLUS SCHOOL COMPUTERS.] 
        Notwithstanding section 471.345, governing school district 
        contracts made upon sealed bid or otherwise complying with the 
        requirements for competitive bidding, other provisions of this 
        section governing school district contracts, or other law to the 
        contrary, a school district under this subdivision may dispose 
        of a surplus school computer and related equipment if the 
        district disposes of the surplus property by conveying the 
        property and title to: 
           (1) another school district; 
           (2) the state department of corrections; 
           (3) the board of trustees of the Minnesota state colleges 
        and universities; or 
           (4) the family of a student residing in the district whose 
        total family income meets the federal definition of poverty. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 4.  Minnesota Statutes 1999 Supplement, section 
        123B.54, is amended to read: 
           123B.54 [DEBT SERVICE APPROPRIATION.] 
           (a) $33,165,000 $33,141,000 in fiscal year 2000, 
        $32,057,000 $29,400,000 in fiscal year 2001, and 
        $31,280,000 $26,934,000 in fiscal year 2002, and $25,540,000 in 
        fiscal year 2003 and each year thereafter is appropriated from 
        the general fund to the commissioner of children, families, and 
        learning for payment of debt service equalization aid under 
        section 123B.53.  The 2002 appropriation includes $3,201,000 for 
        2001 and $29,079,000 for 2002. 
           (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. 5.  Minnesota Statutes 1998, section 123B.57, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
        health and safety revenue for any fiscal year a district must 
        submit to the commissioner an application for aid and levy by 
        the date determined by the commissioner.  The application may be 
        for hazardous substance removal, fire and life safety code 
        repairs, labor and industry regulated facility and equipment 
        violations, and health, safety, and environmental management, 
        including indoor air quality management.  The application must 
        include a health and safety program adopted by the school 
        district board.  The program must include the estimated cost, 
        per building, of the program by fiscal year.  Upon approval 
        through the adoption of a resolution by each of an intermediate 
        district's member school district boards and the approval of the 
        department of children, families, and learning, a school 
        district may include its proportionate share of the costs of 
        health and safety projects for an intermediate district in its 
        application. 
           EFFECTIVE DATE:  This section is effective for revenue for 
        fiscal year 2002 and thereafter.  
           Sec. 6.  Minnesota Statutes 1998, section 123B.71, 
        subdivision 10, is amended to read: 
           Subd. 10.  [INDOOR AIR QUALITY.] A school board seeking a 
        review and comment under this section must submit information 
        demonstrating to the commissioner's satisfaction that: 
           (1) indoor air quality issues have been considered; and 
           (2) the architects and engineers designing the facility 
        will have professional liability insurance.  
           Plans submitted under subdivisions 3 and 4 for projects to 
        be placed in service after July 1, 2002, must demonstrate that: 
           (a) the facility's heating, ventilation, and air 
        conditioning systems meet or exceed the standards established by 
        code; and 
           (b) the facility's design will provide the ability for 
        monitoring of outdoor airflow and total airflow of ventilation 
        systems in new school facilities. 
           Sec. 7.  Minnesota Statutes 1998, section 123B.72, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CERTIFICATION.] Prior to occupying or 
        reoccupying a school facility affected by this section, a school 
        board or its designee shall submit a document prepared by a 
        system inspector to the building official or to the 
        commissioner, verifying that the facility's heating, 
        ventilation, and air conditioning system has been installed and 
        operates according to design specifications and code, according 
        to section 123B.71, subdivision 10, clause (3).  A systems 
        inspector shall also verify that the facility's design will 
        provide the ability for monitoring of outdoor airflow and total 
        airflow of ventilation systems in new school facilities and that 
        any heating, ventilation, or air conditioning system that is 
        installed or modified for a project subject to this section must 
        provide a filtration system with a current ASHRAE standard. 
           EFFECTIVE DATE:  This section is effective on July 1, 2002. 
           Sec. 8.  [125B.25] [TELECOMMUNICATIONS ACCESS REVENUE.] 
           Subdivision 1.  [COSTS TO BE SUBMITTED.] A district shall 
        submit its outstanding ongoing or recurring telecommunications 
        access costs associated with data lines and video links to the 
        department of children, families, and learning.  Costs of 
        telecommunications hardware or equipment must not be included in 
        the costs submitted by districts to the department.  A district 
        may include installation charges associated with new lines or 
        upgraded lines, but may not include costs of hardware or 
        equipment. 
           Subd. 2.  [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 
        recurring telecommunications access costs submitted to the 
        department by each district under this section are limited to 
        the operation costs equal to the greater of: 
           (1) one data line or video link that relies on a transport 
        medium that operates at a minimum speed of 1.544 megabytes per 
        second for each elementary school, middle school, or high school 
        under section 120A.05, subdivisions 9, 11, and 13; or 
           (2) one data line or video link that relies on a transport 
        medium that operates at a minimum speed of 1.544 megabytes per 
        second for each district. 
           (b) A district may include costs associated with 
        cooperative arrangements with other post-secondary institutions, 
        school districts, and community and regional libraries in its 
        geographic region.  A district may continue to purchase its 
        ongoing or recurring telecommunications access services through 
        existing contracts. 
           Subd. 3.  [E-RATES.] To be eligible for revenue under this 
        section, a district is required to file an e-rate application 
        either separately or through their telecommunications grant 
        cluster.  Discounts received on telecommunications expenditures 
        shall be used to offset the amount submitted to the department 
        for per pupil revenue under this section. 
           Subd. 4.  [CALCULATION OF COSTS.] By December 15 of each 
        year, the commissioner shall calculate the ongoing or recurring 
        telecommunications access cost per adjusted marginal cost pupil 
        unit submitted by each school district under subdivisions 1 and 
        2 for the year in which the data is submitted minus the reserved 
        revenue under section 126C.10, subdivision 13, paragraph (d).  
        Districts shall submit their anticipated ongoing or recurring 
        telecommunications access costs, adjusted for any e-rate revenue 
        received to the department based on contracts entered into by 
        the district for that school year.  Districts shall also submit 
        their actual telecommunications access costs by August 15 of 
        each year and adjusted for any e-rate revenue received to the 
        department as prescribed by the commissioner. 
           Subd. 5.  [DISTRICT REVENUE.] A district shall receive an 
        amount equal to the amount as calculated by the commissioner 
        under subdivision 4, times the adjusted marginal cost pupil 
        units for that year, times 65 percent. 
           Subd. 6.  [REVENUE FOR CHARTER SCHOOLS.] (a) Each charter 
        school shall receive revenue equal to the greater of: 
           (1) the per marginal cost pupil unit amount for the 
        district in which the charter school is located as determined by 
        the commissioner according to subdivision 4; or 
           (2) $5; 
        times the adjusted marginal cost pupil units for that year, 
        times 65 percent. 
           (b) A charter school's revenue under this subdivision must 
        be used to pay for ongoing or recurring telecommunication access 
        costs, including access to data lines, video lines, or Internet 
        access. 
           Subd. 7.  [TELECOMMUNICATION ACCESS SERVICES FOR NONPUBLIC 
        SCHOOLS.] (a) Districts shall provide each year upon formal 
        request by or on behalf of a nonpublic school, not including 
        home schools, located in that district or area, ongoing or 
        recurring telecommunication access services to the nonpublic 
        school either through existing district providers or through 
        separate providers. 
           (b) The amount of district revenue for telecommunication 
        access services for each nonpublic school under this subdivision 
        is equal to: 
           (1) $5; plus 
           (2) the per marginal cost pupil unit amount for the 
        district as determined in subdivision 5; times the number of 
        pupils who are enrolled at the nonpublic school as of October 1 
        of the current school year. 
           (c) Each year, a district providing services under 
        paragraph (a) may claim up to five percent of the revenue 
        determined in paragraph (b) for costs of administering this 
        subdivision.  No district may expend an amount for these 
        telecommunication access services which exceeds the amount 
        allocated under this subdivision.  The nonpublic school is 
        responsible for the telecommunications access costs not covered 
        by this section. 
           (d) At the request of a nonpublic school, districts may 
        allocate the amount determined in paragraph (b) directly to the 
        nonpublic school to pay for or offset the nonpublic school's 
        costs for telecommunication access services, however, the amount 
        allocated directly to the nonpublic school may not exceed the 
        actual amount of the school's ongoing or recurring 
        telecommunication access costs.  
           Subd. 8.  [REIMBURSEMENT CRITERIA.] The commissioner, 
        working with the commissioner of administration and the 
        Minnesota education telecommunications council, shall develop 
        reimbursement criteria that schools must address when submitting 
        ongoing or recurring telecommunications costs as determined in 
        subdivisions 1 and 2.  The criteria must assist schools to 
        procure telecommunications access services in the most efficient 
        and cost effective manner possible. 
           Subd. 9.  [EXPIRATION.] This section expires on July 1, 
        2002. 
           Subd. 10.  [SEVERABILITY.] If any portion of this section 
        is found by a court to be unconstitutional, the remaining 
        portions of the section shall remain in effect. 
           Sec. 9.  Minnesota Statutes 1999 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 $68 $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, 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 lines, video lines, or Internet access.  Any revenue 
        remaining after covering all ongoing or recurring access costs 
        may be used for computer hardware or equipment. 
           Sec. 10.  Minnesota Statutes 1998, section 126C.40, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
        district finds it economically advantageous to rent or lease a 
        building or land for any instructional purposes or for school 
        storage or furniture repair, and it determines that the 
        operating capital revenue authorized under section 126C.10, 
        subdivision 13, is insufficient for this purpose, it may apply 
        to the commissioner for permission to make an additional capital 
        expenditure levy for this purpose.  An application for 
        permission to levy under this subdivision must contain financial 
        justification for the proposed levy, the terms and conditions of 
        the proposed lease, and a description of the space to be leased 
        and its proposed use.  
           (b) The criteria for approval of applications to levy under 
        this subdivision must include:  the reasonableness of the price, 
        the appropriateness of the space to the proposed activity, the 
        feasibility of transporting pupils to the leased building or 
        land, conformity of the lease to the laws and rules of the state 
        of Minnesota, and the appropriateness of the proposed lease to 
        the space needs and the financial condition of the district.  
        The commissioner must not authorize a levy under this 
        subdivision in an amount greater than the cost to the district 
        of renting or leasing a building or land for approved purposes.  
        The proceeds of this levy must not be used for custodial or 
        other maintenance services.  A district may not levy under this 
        subdivision for the purpose of leasing or renting a 
        district-owned building or site to itself. 
           (c) For agreements finalized after July 1, 1997, a district 
        may not levy under this subdivision for the purpose of leasing:  
        (1) a newly constructed building used primarily for regular 
        kindergarten, elementary, or secondary instruction; or (2) a 
        newly constructed building addition or additions used primarily 
        for regular kindergarten, elementary, or secondary instruction 
        that contains more than 20 percent of the square footage of the 
        previously existing building. 
           (d) Notwithstanding paragraph (b), a district may levy 
        under this subdivision for the purpose of leasing or renting a 
        district-owned building or site to itself only if the amount is 
        needed by the district to make payments required by a lease 
        purchase agreement, installment purchase agreement, or other 
        deferred payments agreement authorized by law, and the levy 
        meets the requirements of paragraph (c).  A levy authorized for 
        a district by the commissioner under this paragraph may be in 
        the amount needed by the district to make payments required by a 
        lease purchase agreement, installment purchase agreement, or 
        other deferred payments agreement authorized by law, provided 
        that any agreement include a provision giving the school 
        districts the right to terminate the agreement annually without 
        penalty. 
           (e) The total levy under this subdivision for a district 
        for any year must not exceed $100 times the resident pupil units 
        for the fiscal year to which the levy is attributable. 
           (e) (f) For agreements for which a review and comment have 
        been submitted to the department of children, families, and 
        learning after April 1, 1998, the term "instructional purpose" 
        as used in this subdivision excludes expenditures on stadiums. 
           (g) The commissioner of children, families, and learning 
        may authorize a school district to exceed the limit in paragraph 
        (e) if the school district petitions the commissioner for 
        approval.  The commissioner shall grant approval to a school 
        district to exceed the limit in paragraph (e) for not more than 
        five years if the district meets the following criteria: 
           (1) the school district has been experiencing pupil 
        enrollment growth in the preceding five years; 
           (2) the purpose of the increased levy is in the long-term 
        public interest; 
           (3) the purpose of the increased levy promotes colocation 
        of government services; and 
           (4) the purpose of the increased levy is in the long-term 
        interest of the district by avoiding over construction of school 
        facilities. 
           Sec. 11.  Minnesota Statutes 1999 Supplement, section 
        126C.40, subdivision 6, is amended to read: 
           Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
        application to, and approval by, the commissioner in accordance 
        with the procedures and limits in subdivision 1, paragraphs (a) 
        and (b), a district, as defined in this subdivision, may: 
           (1) purchase real or personal property under an installment 
        contract or may lease real or personal property with an option 
        to purchase under a lease purchase agreement, by which 
        installment contract or lease purchase agreement title is kept 
        by the seller or vendor or assigned to a third party as security 
        for the purchase price, including interest, if any; and 
           (2) annually levy the amounts necessary to pay the 
        district's obligations under the installment contract or lease 
        purchase agreement. 
           (b) The obligation created by the installment contract or 
        the lease purchase agreement must not be included in the 
        calculation of net debt for purposes of section 475.53, and does 
        not constitute debt under other law.  An election is not 
        required in connection with the execution of the installment 
        contract or the lease purchase agreement. 
           (c) The proceeds of the levy authorized by this subdivision 
        must not be used to acquire a facility to be primarily used for 
        athletic or school administration purposes. 
           (d) For the purposes of this subdivision, "district" means: 
           (1) a school district required to have a comprehensive plan 
        for the elimination of segregation whose plan has been 
        determined by the commissioner to be in compliance with 
        department of children, families, and learning rules relating to 
        equality of educational opportunity and school 
        desegregation and, for a district eligible for revenue under 
        section 124D.86, subdivision 3, clause (4), where the 
        acquisition of property under this subdivision is determined by 
        the commissioner to contribute to the implementation of the 
        desegregation plan; or 
           (2) a school district that participates in a joint program 
        for interdistrict desegregation with a district defined in 
        clause (1) if the facility acquired under this subdivision is to 
        be primarily used for the joint program and the commissioner 
        determines that the joint programs are being undertaken to 
        implement the districts' desegregation plan. 
           (e) Notwithstanding subdivision 1, the prohibition against 
        a levy by a district to lease or rent a district-owned building 
        to itself does not apply to levies otherwise authorized by this 
        subdivision. 
           (f) For the purposes of this subdivision, any references in 
        subdivision 1 to building or land shall include personal 
        property. 
           EFFECTIVE DATE:  This section is effective for taxes 
        payable in 2001 and later.  
           Sec. 12.  Minnesota Statutes 1998, section 126C.69, 
        subdivision 15, is amended to read: 
           Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
        outstanding state loan must not issue and sell any bonds on the 
        public market, except to refund state loans, unless it agrees to 
        make the maximum effort debt service levy in each later year at 
        the higher rate provided in section 126C.63, subdivision 8, and 
        unless it schedules the maturities of the bonds according to 
        section 475.54, subdivision 2.  A district that refunds bonds at 
        a lower interest rate may continue to make the maximum effort 
        debt service levy in each later year at the current rate 
        provided in section 126C.63, subdivision 8, if the district can 
        demonstrate to the commissioner's satisfaction that the 
        district's repayments of the state loan will not be reduced 
        below the previous year's level.  The district must report each 
        sale to the commissioner. 
           After a district's capital loan has been outstanding for 20 
        30 years, the district must not issue bonds on the public market 
        except to refund the loan. 
           Sec. 13.  Laws 1999, chapter 241, article 4, section 27, 
        subdivision 2, is amended to read: 
           Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
        aid according to Minnesota Statutes, section 123B.57, 
        subdivision 5: 
             $14,528,000 $14,015,000   .....     2000 
             $14,957,000 $14,450,000   .....     2001 
           The 2000 appropriation includes $1,415,000 for 1999 and 
        $13,113,000 $12,600,000 for 2000.  
           The 2001 appropriation includes $1,456,000 $1,400,000 for 
        2000 and $13,501,000 $13,050,000 for 2001.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment.  
           Sec. 14.  Laws 1999, chapter 241, article 4, section 27, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
        according to Minnesota Statutes, section 123B.53, subdivision 6: 
             $33,165,000 $33,141,000   .....     2000
             $32,084,000 $29,400,000   .....     2001
           The 2000 appropriation includes $3,842,000 for 1999 and 
        $29,323,000 $29,299,000 for 2000. 
           The 2001 appropriation includes $3,256,000 $3,255,000 for 
        2000 and $28,828,000 $26,145,000 for 2001. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment.  
           Sec. 15.  Laws 1999, chapter 241, article 4, section 27, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
        interactive television (ITV) aid under Minnesota Statutes, 
        section 126C.40, subdivision 4: 
             $4,197,000 $4,194,000    .....     2000
             $2,851,000 $2,761,000    .....     2001
           The 2000 appropriation includes $405,000 for 1999 and 
        $3,792,000 $3,789,000 for 2000. 
           The 2001 appropriation includes $421,000 for 2000 and 
        $2,430,000 $2,340,000 for 2001. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment.  
           Sec. 16.  Laws 1999, chapter 241, article 4, section 27, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
        alternative facilities bonding aid, according to Minnesota 
        Statutes, section 123B.59: 
             $19,058,000 $18,920,000   .....     2000 
             $19,286,000 $19,134,000   .....     2001 
           The 2000 appropriation includes $1,700,000 for 2000 1999 
        and $17,358,000 $17,220,000 for 2001 2000. 
           The 2001 appropriation includes $1,928,000 $1,913,000 for 
        2000 and $17,358,000 $17,221,000 for 2001. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment.  
           Sec. 17.  Laws 1999, chapter 241, article 4, section 27, 
        subdivision 10, is amended to read: 
           Subd. 10.  [DECLINING PUPIL AID; ST. PETER.] For a grant to 
        independent school district No. 508, St. Peter, to ameliorate 
        general fund operating losses associated with the March, 1998 
        tornado: 
             $  105,000 $ 75,000    .....     2000 
             $  278,000 $115,000    .....     2001 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 18.  Laws 1999, chapter 241, article 4, section 27, 
        subdivision 11, is amended to read: 
           Subd. 11.  [FLOODS; DECLINING PUPIL AID.] For declining 
        pupil aid under section 23: 
             $2,132,000 $2,087,000    .....     2000 
             $1,758,000 $1,639,000    .....     2001 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 19.  Laws 1999, chapter 241, article 4, section 29, is 
        amended to read: 
           Sec. 29.  [REPEALER.] 
           (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
        123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
        subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
        subdivisions 1 and 2; section 123B.66; 123B.67; 123B.68; and 
        123B.69, are, is repealed effective the day following final 
        enactment. 
           (b) Minnesota Statutes 1998, section 123B.58, is repealed 
        effective July 1, 2004. 
           (c) Minnesota Statutes 1998, section 123B.64, subdivision 
        4, is repealed effective for revenue for fiscal year 2000. 
           (d) (c) Minnesota Statutes 1998, section 123B.64, 
        subdivisions 1, 2, and 3, are repealed effective for revenue for 
        fiscal year 2001. 
           (e) (d) Minnesota Rules, parts 3500.3900; 3500.4000; 
        3500.4100; 3500.4200; and 3500.4300, are repealed. 
           EFFECTIVE DATE:  Paragraph (a) is effective retroactive to 
        May 26, 1999.  
           Sec. 20.  [DECLINING PUPIL UNITS; ST. PETER.] 
           For purposes of Laws 1999, chapter 241, article 4, section 
        22, the St. Peter school district's marginal cost pupil units 
        for the 1996-1997 school year must be calculated using the pupil 
        weights in effect for fiscal year 2000. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 21.  [ONE-TIME DEFERRED MAINTENANCE AID.] 
           (a) For fiscal year 2001 only, a district's one-time 
        deferred maintenance aid is equal to: 
           (1) $10 times the adjusted marginal cost pupil units for 
        the school year; plus 
           (2) $21.90 times the adjusted marginal cost pupil units for 
        the school year for a district that does not qualify for 
        alternative facilities bonding under Minnesota Statutes, section 
        123B.59, or under Laws 1999, chapter 241, article 4, section 25. 
           (b) Aid received under this section must be used for 
        deferred maintenance, to make accessibility improvements, or to 
        make fire, safety, or health repairs. 
           Sec. 22.  [PROJECT QUALIFICATION; TRITON.] 
           Subdivision 1.  [ELIGIBILITY.] Notwithstanding Minnesota 
        Statutes, section 123B.57, independent school district No. 2125, 
        Triton, may include all unreimbursed costs associated with the 
        testing, evaluation, removal, and replacement of building 
        fixtures and equipment necessitated by the discovery of mold in 
        a school building in its health and safety plan not to exceed 
        $400,000. 
           Subd. 2.  [COST RECOVERY.] Independent school district No. 
        2125, Triton, must pursue all reasonable options to recover 
        expenses resulting from the mold from its insurance company, the 
        subcontractors, and any other parties responsible for the damage 
        caused by the mold. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 23.  [COMMISSIONER RECOMMENDATION.] 
           By February 1, 2002, the commissioner of children, 
        families, and learning, in cooperation with the commissioner of 
        administration and the Minnesota education telecommunication 
        council, shall recommend to the legislature a permanent method 
        for funding telecommunications access as part of the general 
        education revenue formula under Minnesota Statutes, section 
        126C.10.  The commissioner shall consider the following in 
        making the recommendation: 
           (1) the range of costs for providing a minimum level of 
        telecommunications access for all students; 
           (2) the flexibility that is necessary to accommodate 
        emerging technological advances in the telecommunications field; 
        and 
           (3) other related efforts within the state, including the 
        state's higher education and public library systems. 
           Sec. 24.  [CHISHOLM SCHOOL DISTRICT BONDS.] 
           Subdivision 1.  [AUTHORIZATION.] Independent school 
        district No. 695, Chisholm, may issue bonds in an aggregate 
        principal amount not exceeding $4,250,000. 
           Subd. 2.  [USES; PROCESS.] The bonds authorized under 
        subdivision 1 may be issued in addition to any bonds already 
        issued or authorized.  The proceeds of the bonds shall be used 
        to provide funds to design, construct, equip, furnish, remodel, 
        rehabilitate, and acquire land for school facilities and 
        buildings and to pay any architect, engineer and legal fees 
        incidental to those purposes or to the sale of bonds.  Except as 
        permitted by this section, the bonds shall be authorized, 
        issued, sold, executed, and delivered in the manner provided by 
        Minnesota Statutes, chapter 475.  A referendum on the question 
        of issuing the bonds authorized under subdivision 1 is 
        required.  A resolution of the board levying taxes for the 
        payment of the bonds and interest on them shall be deemed to be 
        in compliance with the provisions of Minnesota Statutes, chapter 
        475, with respect to the levying of taxes for their payment. 
           Subd. 3.  [APPROPRIATION.] There is annually appropriated 
        from the distribution of taconite production tax revenues to the 
        taconite environmental protection fund pursuant to Minnesota 
        Statutes, section 298.28, subdivision 11, and to the northeast 
        Minnesota economic protection trust pursuant to Minnesota 
        Statutes, section 298.28, subdivisions 9 and 11, in equal 
        shares, an amount sufficient to pay when due 80 percent of the 
        principal and interest on the bonds issued under subdivision 1.  
        If the annual distribution to the northeast Minnesota economic 
        protection trust is insufficient to pay its share after 
        fulfilling any obligations of the trust under Minnesota 
        Statutes, section 298.225 or 298.293, the deficiency shall be 
        appropriated from the taconite environmental protection fund. 
           Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
        authority of this section shall be the general obligations of 
        the school district, for which its full faith and credit and 
        unlimited taxing powers shall be pledged.  If there are any 
        deficiencies in the amount received under subdivision 3, they 
        shall be satisfied by general levies, not subject to limit, on 
        all taxable properties in the district in accordance with 
        Minnesota Statutes, section 475.74.  If any deficiency levies 
        are necessary, the school board may effect a temporary loan or 
        loans on certificates of indebtedness issued in anticipation of 
        them to meet payments of principal or interest on the bonds due 
        or about to become due. 
           Subd. 5.  [DISTRICT LEVY.] The school board of the school 
        district authorized to issue bonds under subdivision 1 shall by 
        resolution levy on all property in the school district subject 
        to the general ad valorem school tax levies, and not subject to 
        taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
        direct annual ad valorem tax for each year of the term of the 
        bonds in amounts that, if collected in full, will produce the 
        amounts needed to meet when due 20 percent of the principal and 
        interest payments on the bonds.  A copy of the resolution shall 
        be filed, and the necessary taxes shall be extended, assessed, 
        collected, and remitted in accordance with Minnesota Statutes, 
        section 475.61. 
           Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
        section shall be disregarded in the calculation of any other tax 
        levies or limits on tax levies provided by other law. 
           Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
        authority of this section notwithstanding any limitations upon 
        the indebtedness of a district, and their amounts shall not be 
        included in computing the indebtedness of a district for any 
        purpose, including the issuance of subsequent bonds and the 
        incurring of subsequent indebtedness. 
           Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
        authorized in subdivision 3 terminates upon payment or maturity 
        of the last of the bonds issued under this section. 
           Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
        under this section after April 30, 2002, unless they are issued 
        under a contract in effect on or before April 30, 2002. 
           Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
        independent school district No. 695 the day after its governing 
        body complies with Minnesota Statutes, section 645.021, 
        subdivision 3. 
           Sec. 25.  [GREENWAY-COLERAINE SCHOOL DISTRICT BONDS.] 
           Subdivision 1.  [AUTHORIZATION.] Independent school 
        district No. 316, Greenway-Coleraine, may issue bonds in an 
        aggregate principal amount not exceeding $2,500,000. 
           Subd. 2.  [USES; PROCESS.] The bonds authorized under 
        subdivision 1 may be issued in addition to any bonds already 
        issued or authorized.  The proceeds of the bonds shall be used 
        to provide funds to design, construct, equip, furnish, remodel, 
        rehabilitate, and acquire land for school facilities and 
        buildings and to pay any architect, engineer and legal fees 
        incidental to those purposes or to the sale of bonds.  Except as 
        permitted by this section, the bonds shall be authorized, 
        issued, sold, executed, and delivered in the manner provided by 
        Minnesota Statutes, chapter 475.  A referendum on the question 
        of issuing the bonds authorized under subdivision 1 is 
        required.  A resolution of the board levying taxes for the 
        payment of the bonds and interest on them shall be deemed to be 
        in compliance with the provisions of Minnesota Statutes, chapter 
        475, with respect to the levying of taxes for their payment. 
           Subd. 3.  [APPROPRIATION.] There is annually appropriated 
        from the distribution of taconite production tax revenues to the 
        taconite environmental protection fund pursuant to Minnesota 
        Statutes, section 298.28, subdivision 11, and to the northeast 
        Minnesota economic protection trust pursuant to Minnesota 
        Statutes, section 298.28, subdivisions 9 and 11, in equal 
        shares, an amount sufficient to pay when due 80 percent of the 
        principal and interest on the bonds issued under subdivision 1.  
        If the annual distribution to the northeast Minnesota economic 
        protection trust is insufficient to pay its share after 
        fulfilling any obligations of the trust under Minnesota 
        Statutes, section 298.225 or 298.293, the deficiency shall be 
        appropriated from the taconite environmental protection fund. 
           Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
        authority of this section shall be the general obligations of 
        the school district, for which its full faith and credit and 
        unlimited taxing powers shall be pledged.  If there are any 
        deficiencies in the amount received under subdivision 3, they 
        shall be satisfied by general levies, not subject to limit, on 
        all taxable properties in the district in accordance with 
        Minnesota Statutes, section 475.74.  If any deficiency levies 
        are necessary, the school board may effect a temporary loan or 
        loans on certificates of indebtedness issued in anticipation of 
        them to meet payments of principal or interest on the bonds due 
        or about to become due. 
           Subd. 5.  [DISTRICT LEVY.] The school board of the school 
        district authorized to issue bonds under subdivision 1 shall by 
        resolution levy on all property in the school district subject 
        to the general ad valorem school tax levies, and not subject to 
        taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
        direct annual ad valorem tax for each year of the term of the 
        bonds in amounts that, if collected in full, will produce the 
        amounts needed to meet when due 20 percent of the principal and 
        interest payments on the bonds.  A copy of the resolution shall 
        be filed, and the necessary taxes shall be extended, assessed, 
        collected, and remitted in accordance with Minnesota Statutes, 
        section 475.61. 
           Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
        section shall be disregarded in the calculation of any other tax 
        levies or limits on tax levies provided by other law. 
           Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
        authority of this section notwithstanding any limitations upon 
        the indebtedness of a district, and their amounts shall not be 
        included in computing the indebtedness of a district for any 
        purpose, including the issuance of subsequent bonds and the 
        incurring of subsequent indebtedness. 
           Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
        authorized in subdivision 3 terminates upon payment or maturity 
        of the last of the bonds issued under this section. 
           Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
        under this section after April 30, 2002, unless they are issued 
        under a contract in effect on or before April 30, 2002. 
           Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
        independent school district No. 316 the day after its governing 
        body complies with Minnesota Statutes, section 645.021, 
        subdivision 3. 
           Sec. 26.  [LAKE SUPERIOR SCHOOL DISTRICT BONDS.] 
           Subdivision 1.  [AUTHORIZATION.] Independent school 
        district No. 381, Lake Superior, may issue bonds in an aggregate 
        principal amount not exceeding $6,000,000. 
           Subd. 2.  [USES; PROCESS.] The bonds authorized under 
        subdivision 1 may be issued in addition to any bonds already 
        issued or authorized.  The proceeds of the bonds shall be used 
        to provide funds to design, construct, equip, furnish, remodel, 
        rehabilitate, and acquire land for school facilities and 
        buildings and to pay any architect, engineer and legal fees 
        incidental to those purposes or to the sale of bonds.  Except as 
        permitted by this section, the bonds shall be authorized, 
        issued, sold, executed, and delivered in the manner provided by 
        Minnesota Statutes, chapter 475.  A referendum on the question 
        of issuing the bonds authorized under subdivision 1 is 
        required.  A resolution of the board levying taxes for the 
        payment of the bonds and interest on them shall be deemed to be 
        in compliance with the provisions of Minnesota Statutes, chapter 
        475, with respect to the levying of taxes for their payment. 
           Subd. 3.  [APPROPRIATION.] There is annually appropriated 
        from the distribution of taconite production tax revenues to the 
        taconite environmental protection fund pursuant to Minnesota 
        Statutes, section 298.28, subdivision 11, and to the northeast 
        Minnesota economic protection trust pursuant to Minnesota 
        Statutes, section 298.28, subdivisions 9 and 11, in equal 
        shares, an amount sufficient to pay when due 80 percent of the 
        principal and interest on the bonds issued under subdivision 1.  
        If the annual distribution to the northeast Minnesota economic 
        protection trust is insufficient to pay its share after 
        fulfilling any obligations of the trust under Minnesota 
        Statutes, section 298.225 or 298.293, the deficiency shall be 
        appropriated from the taconite environmental protection fund. 
           Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
        authority of this section shall be the general obligations of 
        the school district, for which its full faith and credit and 
        unlimited taxing powers shall be pledged.  If there are any 
        deficiencies in the amount received under subdivision 3, they 
        shall be satisfied by general levies, not subject to limit, on 
        all taxable properties in the district in accordance with 
        Minnesota Statutes, section 475.74.  If any deficiency levies 
        are necessary, the school board may effect a temporary loan or 
        loans on certificates of indebtedness issued in anticipation of 
        them to meet payments of principal or interest on the bonds due 
        or about to become due. 
           Subd. 5.  [DISTRICT LEVY.] The school board of the school 
        district authorized to issue bonds under subdivision 1 shall by 
        resolution levy on all property in the school district subject 
        to the general ad valorem school tax levies, and not subject to 
        taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
        direct annual ad valorem tax for each year of the term of the 
        bonds in amounts that, if collected in full, will produce the 
        amounts needed to meet when due 20 percent of the principal and 
        interest payments on the bonds.  A copy of the resolution shall 
        be filed, and the necessary taxes shall be extended, assessed, 
        collected, and remitted in accordance with Minnesota Statutes, 
        section 475.61. 
           Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
        section shall be disregarded in the calculation of any other tax 
        levies or limits on tax levies provided by other law. 
           Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
        authority of this section notwithstanding any limitations upon 
        the indebtedness of a district, and their amounts shall not be 
        included in computing the indebtedness of a district for any 
        purpose, including the issuance of subsequent bonds and the 
        incurring of subsequent indebtedness. 
           Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
        authorized in subdivision 3 terminates upon payment or maturity 
        of the last of the bonds issued under this section. 
           Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
        under this section after April 30, 2002, unless they are issued 
        under a contract in effect on or before April 30, 2002. 
           Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
        independent school district No. 381 the day after its governing 
        body complies with Minnesota Statutes, section 645.021, 
        subdivision 3. 
           Sec. 27.  [REPEALER WITHOUT EFFECT.] 
           The repeal of Minnesota Statutes 1998, sections 123A.44; 
        123A.441; 123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 
        123B.57, subdivisions 4, 5, and 7; 123B.59, subdivision 7; 
        123B.63, subdivisions 1 and 2; 123B.67; 123B.68; and 123B.69, by 
        Laws 1999, chapter 241, article 4, section 29, with an effective 
        date of May 26, 1999, is without effect and Minnesota Statutes 
        1998, sections 123A.44; 123A.441; 123A.442; 123A.443; 123A.444; 
        123A.445; 123A.446; 123B.57, subdivisions 4, 5, and 7; 123B.59, 
        subdivision 7; 123B.63, subdivisions 1 and 2; 123B.67; 123B.68; 
        and 123B.69, remain in effect after May 25, 1999. 
           EFFECTIVE DATE:  This section is effective retroactive to 
        May 26, 1999. 
           Sec. 28.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for fiscal years designated. 
           Subd. 2.  [TELECOMMUNICATION ACCESS REVENUE.] For 
        telecommunication access cost revenue under Minnesota Statutes, 
        section 125B.25:  
             $16,668,000     .....     2001 
           Of this amount, $16,668,000 is for fiscal year 2001. 
           If the appropriation amount exceeds the revenue for the 
        2000-2001 school year, the commissioner shall increase the 
        reimbursement rate in Minnesota Statutes, section 125B.25, 
        subdivisions 5 and 6, to expend the full appropriation.  If the 
        appropriation amount is insufficient, the commissioner shall 
        reduce the reimbursement rate in Minnesota Statutes, section 
        125B.25, subdivisions 5 and 6, and the revenue for the 2000-2001 
        school year shall be prorated.  The reimbursement rate shall not 
        exceed 100 percent. 
           Subd. 3.  [INTEREST ON FLOOD LOANS.] For interest paid on 
        flood loans: 
             $   970,000     .....     2000
           Of this amount, $761,000 is for independent school district 
        No. 595, East Grand Forks, and $209,000 is for independent 
        school district No. 2854, Ada-Borup. 
           This is a one-time appropriation and is available until 
        June 30, 2001. 
           Subd. 4.  [ONE-TIME DEFERRED MAINTENANCE AID.] For one-time 
        deferred maintenance aid: 
             $23,260,000     .....     2001
           This is a one-time appropriation. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 

                                   ARTICLE 6 
                    KINDERGARTEN THROUGH GRADE 12 EDUCATION 
                    EDUCATIONAL EXCELLENCE AND OTHER POLICY 
           Section 1.  Minnesota Statutes 1998, section 120B.13, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INFORMATION.] The commissioner shall submit the 
        following information to the education committees of the 
        legislature each year by January February 1: 
           (1) the number of pupils enrolled in advanced placement and 
        international baccalaureate courses in each school district; 
           (2) the number of teachers in each district attending 
        training programs offered by the college board or International 
        Baccalaureate North America, Inc.; 
           (3) the number of teachers in each district participating 
        in support programs; 
           (4) recent trends in the field of advanced placement and 
        international baccalaureate programs; 
           (5) expenditures for each category in this section; and 
           (6) other recommendations for the state program. 
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        120B.30, subdivision 1, is amended to read: 
           Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
        with advice from experts with appropriate technical 
        qualifications and experience and stakeholders, shall include in 
        the comprehensive assessment system, for each grade level to be 
        tested, a single statewide norm-referenced or 
        criterion-referenced test, or a combination of a norm-referenced 
        and a criterion-referenced test, which shall be highly 
        correlated with the state's graduation standards and 
        administered annually to all students in the third, fifth, and 
        eighth grades.  The commissioner shall establish one or more 
        months during which schools shall administer the tests to 
        students each school year.  Only Minnesota basic skills tests in 
        reading, mathematics, and writing shall fulfill students' 
        testing requirements for a passing state notation.  The passing 
        scores of the state tests in reading and mathematics are the 
        equivalent of:  
           (1) 70 percent correct for students entering grade 9 in 
        1996; and 
           (2) 75 percent correct for students entering grade 9 in 
        1997 and thereafter, as based on the first uniform test 
        administration of February 1998. 
           (b) In addition, at the secondary level, districts shall 
        assess student performance in all required learning areas and 
        selected required standards within each area of the profile of 
        learning.  The testing instruments and testing process shall be 
        determined by the commissioner.  The results shall be aggregated 
        at the site and district level.  The testing shall be 
        administered beginning in the 1999-2000 school year and 
        thereafter. 
           (c) The comprehensive assessment system shall include an 
        evaluation of school site and school district performance levels 
        during the 1997-1998 school year and thereafter using an 
        established performance baseline developed from students' test 
        scores under this section that records, at a minimum, students' 
        unweighted mean test scores in each tested subject, a second 
        performance baseline that reports, at a minimum, the same 
        unweighted mean test scores of only those students enrolled in 
        the school by January 1 of the previous school year, and a third 
        performance baseline that reports the same unweighted test 
        scores of all students except those students receiving limited 
        English proficiency instruction.  The evaluation also shall 
        record separately, in proximity to the performance baselines, 
        the percentages of students who are eligible to receive a free 
        or reduced price school meal, demonstrate limited English 
        proficiency, or are eligible to receive special education 
        services. 
           (d) In addition to the testing and reporting requirements 
        under paragraphs (a), (b), and (c), the commissioner shall 
        include the following components in the statewide educational 
        accountability and public reporting system: 
           (1) uniform statewide testing of all third, fifth, eighth, 
        and post-eighth grade students with exemptions, only with parent 
        or guardian approval, from the testing requirement only for 
        those very few students for whom the student's individual 
        education plan team under sections 125A.05 and 125A.06, 
        determines that the student is incapable of taking a statewide 
        test, or a limited English proficiency student under section 
        124D.59, subdivision 2, if the student has been in the United 
        States for fewer than 12 months and for whom special language 
        barriers exist, such as the student's native language does not 
        have a written form or the district does not have access to 
        appropriate interpreter services for the student's native 
        language; 
           (2) educational indicators that can be aggregated and 
        compared across school districts and across time on a statewide 
        basis; 
           (3) students' scores on the American College Test; 
           (4) participation in the National Assessment of Educational 
        Progress so that the state can benchmark its performance against 
        the nation and other states, and, where possible, against other 
        countries, and contribute to the national effort to monitor 
        achievement; and 
           (5) basic skills and advanced competencies connecting 
        teaching and learning to high academic standards, assessment, 
        and transitions to citizenship and employment. 
           (e) Districts must report exemptions under paragraph (d), 
        clause (1), to the commissioner consistent with a format 
        provided by the commissioner. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment and applies to test administrations 
        beginning in February 2000. 
           Sec. 3.  [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 
           Subdivision 1.  [REASONABLE FORCE STANDARD.] (a) A teacher, 
        in exercising the person's lawful authority, may use reasonable 
        force when it is necessary under the circumstances to correct or 
        restrain a student or prevent bodily harm or death to another. 
           (b) A school employee, school bus driver, or other agent of 
        a district, in exercising the person's lawful authority, may use 
        reasonable force when it is necessary under the circumstances to 
        restrain a student or prevent bodily harm or death to another. 
           (c) Paragraphs (a) and (b) do not authorize conduct 
        prohibited under sections 121A.58 and 121A.67. 
           Subd. 2.  [CIVIL LIABILITY.] (a) A teacher who, in the 
        exercise of the person's lawful authority, uses reasonable force 
        under the standard in subdivision 1, paragraph (a), has a 
        defense against a civil action for damages under section 123B.25.
           (b) A school employee, bus driver, or other agent of a 
        district who, in the exercise of the person's lawful authority, 
        uses reasonable force under the standard in subdivision 1, 
        paragraph (b), has a defense against a civil action for damages 
        under section 123B.25. 
           Subd. 3.  [CRIMINAL PROSECUTION.] (a) A teacher who, in the 
        exercise of the person's lawful authority, uses reasonable force 
        under the standard in subdivision 1, paragraph (a), has a 
        defense against a criminal prosecution under section 609.06, 
        subdivision 1. 
           (b) A school employee, bus driver, or other agent of a 
        district who, in the exercise of the person's lawful authority, 
        uses reasonable force under the standard in subdivision 1, 
        paragraph (b), has a defense against a criminal prosecution 
        under section 609.06, subdivision 1. 
           Subd. 4.  [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 
        defense in this section is supplementary to those specified in 
        section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 
           EFFECTIVE DATE:  This section is effective for the 
        2000-2001 school year and later. 
           Sec. 4.  Minnesota Statutes 1998, section 121A.61, 
        subdivision 3, is amended to read: 
           Subd. 3.  [POLICY COMPONENTS.] The policy must include at 
        least the following components:  
           (a) rules governing student conduct and procedures for 
        informing students of the rules; 
           (b) the grounds for removal of a student from a class; 
           (c) the authority of the classroom teacher to remove 
        students from the classroom pursuant to procedures and rules 
        established in the district's policy; 
           (d) the procedures for removal of a student from a class by 
        a teacher, school administrator, or other school district 
        employee; 
           (e) the period of time for which a student may be removed 
        from a class, which may not exceed five class periods for a 
        violation of a rule of conduct; 
           (f) provisions relating to the responsibility for and 
        custody of a student removed from a class; 
           (g) the procedures for return of a student to the specified 
        class from which the student has been removed; 
           (h) the procedures for notifying a student and the 
        student's parents or guardian of violations of the rules of 
        conduct and of resulting disciplinary actions; 
           (i) any procedures determined appropriate for encouraging 
        early involvement of parents or guardians in attempts to improve 
        a student's behavior; 
           (j) any procedures determined appropriate for encouraging 
        early detection of behavioral problems; 
           (k) any procedures determined appropriate for referring a 
        student in need of special education services to those services; 
           (1) the procedures for consideration of whether there is a 
        need for a further assessment or of whether there is a need for 
        a review of the adequacy of a current individual education plan 
        of a student with a disability who is removed from class; 
           (m) procedures for detecting and addressing chemical abuse 
        problems of a student while on the school premises; 
           (n) the minimum consequences for violations of the code of 
        conduct; and 
           (o) procedures for immediate and appropriate interventions 
        tied to violations of the code; and 
           (p) a provision that states that a teacher, school 
        employee, school bus driver, or other agent of a district may 
        use reasonable force in compliance with section 121A.582 and 
        other laws.  
           EFFECTIVE DATE:  This section is effective for the 
        2001-2002 school year and thereafter. 
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        122A.23, is amended to read: 
           122A.23 [APPLICANTS TRAINED IN OTHER STATES.] 
           Subdivision 1.  [PREPARATION EQUIVALENCY.] When a license 
        to teach is authorized to be issued to any holder of a diploma 
        or a degree of a Minnesota state university, or of the 
        University of Minnesota, or of a liberal arts university, or a 
        technical training institution, such license may also, in the 
        discretion of the board of teaching or the commissioner of 
        children, families, and learning, whichever has jurisdiction, be 
        issued to any holder of a diploma or a degree of a teacher 
        training institution of equivalent rank and standing of any 
        other state.  The diploma or degree must be granted by virtue of 
        the completion of a course in teacher preparation essentially 
        equivalent in content to that required by such Minnesota state 
        university or the University of Minnesota or a liberal arts 
        university in Minnesota or a technical training institution as 
        preliminary to the granting of a diploma or a degree of the same 
        rank and class. 
           Subd. 2.  [APPLICANTS LICENSED IN OTHER STATES.] (a) 
        Subject to the requirements of sections 122A.18, subdivision 8, 
        and 123B.03, the board of teaching must issue a teaching license 
        or a temporary teaching license under paragraphs (b) to (e) to 
        an applicant who holds at least a baccalaureate degree from a 
        regionally accredited college or university and holds or held a 
        similar out-of-state teaching license that requires the 
        applicant to successfully complete a teacher preparation program 
        approved by the issuing state, which includes field-specific 
        teaching methods and student teaching or essentially equivalent 
        experience. 
           (b) The board of teaching must issue a teaching license to 
        an applicant who: 
           (1) successfully completed all exams and human relations 
        preparation components required by the board of teaching; and 
           (2) holds or held an out-of-state teaching license to teach 
        the same content field and grade levels if the scope of the 
        out-of-state license is no more than one grade level less than a 
        similar Minnesota license. 
           (c) The board of teaching, consistent with board rules, 
        must issue up to three one-year temporary teaching licenses to 
        an applicant who holds or held an out-of-state teaching license 
        to teach the same content field and grade levels, where the 
        scope of the out-of-state license is no more than one grade 
        level less than a similar Minnesota license, but has not 
        successfully completed all exams and human relations preparation 
        components required by the board of teaching. 
           (d) The board of teaching, consistent with board rules, 
        must issue up to three one-year temporary teaching licenses to 
        an applicant who: 
           (1) successfully completed all exams and human relations 
        preparation components required by the board of teaching; and 
           (2) holds or held an out-of-state teaching license to teach 
        the same content field and grade levels, where the scope of the 
        out-of-state license is no more than one grade level less than a 
        similar Minnesota license, but has not completed field-specific 
        teaching methods, or student teaching or equivalent experience. 
        The applicant may complete field-specific teaching methods and 
        student teaching or equivalent experience by successfully 
        participating in a one-year school district mentorship program 
        consistent with board-adopted standards of effective practice 
        and Minnesota graduation requirements. 
           (e) The board of teaching must issue a temporary teaching 
        license for a term of up to three years only in the content 
        field or grade levels specified in the out-of-state license to 
        an applicant who: 
           (1) successfully completed all exams and human relations 
        preparation components required by the board of teaching; and 
           (2) holds or held an out-of-state teaching license where 
        the out-of-state license is more limited in the content field or 
        grade levels than a similar Minnesota license. 
           (f) The board of teaching must not issue to an applicant 
        more than three one-year temporary teaching licenses under this 
        subdivision.  
           (g) The board of teaching must not issue a license under 
        this subdivision if the applicant has not attained the 
        additional degrees, credentials, or licenses required in a 
        particular licensure field.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 6.  Minnesota Statutes 1998, section 123B.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AGREEMENT.] (a) Either the school board or the 
        school site decision-making team may request that the school 
        board enter into an agreement with a school site decision-making 
        team concerning the governance, management, or control of the 
        school.  A school site decision-making team may include the 
        school principal, teachers in the school or their designee, 
        other employees in the school, parents of pupils in the school, 
        representatives of pupils in the school, or other members in the 
        community.  The school site decision-making team shall include 
        the school principal or other person having general control and 
        supervision of the school.  The site decision-making team must 
        reflect the diversity of the education site.  No more than 
        one-half of the members shall be employees of the district, 
        unless an employee is the parent of a student enrolled in the 
        school site, in which case the employee may elect to serve as a 
        parent member of the site team. 
           (b) School site decision-making agreements must delegate 
        powers, duties, and broad management responsibilities to site 
        teams and involve staff members, students as appropriate, and 
        parents in decision making. 
           (c) An agreement shall include a statement of powers, 
        duties, responsibilities, and authority to be delegated to and 
        within the site. 
           (d) An agreement may include: 
           (1) an achievement contract according to subdivision 4; 
           (2) a mechanism to allow principals, or other persons 
        having general control and supervision of the school, to make 
        decisions regarding how financial and personnel resources are 
        best allocated at the site and from whom goods or services are 
        purchased; 
           (3) a mechanism to implement parental involvement programs 
        under section 124D.895 and to provide for effective parental 
        communication and feedback on this involvement at the site 
        level; 
           (4) a provision that would allow the team to determine who 
        is hired into licensed and nonlicensed positions; 
           (5) a provision that would allow teachers to choose the 
        principal or other person having general control; 
           (6) an amount of revenue allocated to the site under 
        subdivision 3; and 
           (7) any other powers and duties determined appropriate by 
        the board. 
           The school board of the district remains the legal employer 
        under clauses (4) and (5). 
           (e) Any powers or duties not delegated to the school site 
        management team in the school site management agreement shall 
        remain with the school board. 
           (f) Approved agreements shall be filed with the 
        commissioner.  If a school board denies a request to enter into 
        a school site management agreement, it shall provide a copy of 
        the request and the reasons for its denial to the commissioner.  
           EFFECTIVE DATE:  This section is effective July 1, 2000. 
           Sec. 7.  [123B.022] [CONTRACTS FOR COMPUTERS OR RELATED 
        EQUIPMENT OR SERVICE.] 
           (a) The school board of a school district may not enter 
        into a contract or permit a school within the district to enter 
        into a contract for the use of a computer or related equipment 
        or service that requires advertising to be disseminated to 
        students unless the school board: 
           (1) enters into the contract at a public hearing of the 
        school board; 
           (2) makes a finding that the offered electronic product or 
        service is an integral component of students' education; 
           (3) provides written notice to students' parents that 
        advertising will be used in the classroom, media center, 
        computer lab, or other areas of learning, whether data will be 
        collected on students, and how that data will be used; 
           (4) as part of normal, ongoing district communications with 
        parents, allows parents to request in writing that (i) their 
        student not be exposed to the program that contains the 
        advertising for the current school year, or that (ii) any or all 
        data relating to the student that is collected as a result of 
        this contract is not disclosed; and 
           (5) honors parents' request, under clause (4), that their 
        student not be exposed to the advertising program or that data 
        relating to the student is not disclosed and allows parents to 
        withdraw their request at any time. 
           (b) Advertising under this section does not include: 
           (1) the identification of the source of the document or 
        information; and 
           (2) advertising that is generally available to the public 
        viewing a particular site or application and is not directed 
        specifically to students benefiting from a contract under 
        paragraph (a). 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 8.  Minnesota Statutes 1998, section 123B.143, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONTRACT; DUTIES.] All districts 
        maintaining a classified secondary school must employ a 
        superintendent who shall be an ex officio nonvoting member of 
        the school board.  The authority for selection and employment of 
        a superintendent must be vested in the board in all cases.  An 
        individual employed by a board as a superintendent shall have an 
        initial employment contract for a period of time no longer than 
        three years from the date of employment.  Any subsequent 
        employment contract must not exceed a period of three years.  A 
        board, at its discretion, may or may not renew an employment 
        contract.  A board must not, by action or inaction, extend the 
        duration of an existing employment contract.  Beginning 365 days 
        prior to the expiration date of an existing employment contract, 
        a board may negotiate and enter into a subsequent employment 
        contract to take effect upon the expiration of the existing 
        contract.  A subsequent contract must be contingent upon the 
        employee completing the terms of an existing contract.  If a 
        contract between a board and a superintendent is terminated 
        prior to the date specified in the contract, the board may not 
        enter into another superintendent contract with that same 
        individual that has a term that extends beyond the date 
        specified in the terminated contract.  A board may terminate a 
        superintendent during the term of an employment contract for any 
        of the grounds specified in section 122A.40, subdivision 9 or 13.
        A superintendent shall not rely upon an employment contract with 
        a board to assert any other continuing contract rights in the 
        position of superintendent under section 122A.40.  
        Notwithstanding the provisions of sections 122A.40, subdivision 
        10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
        individual shall have a right to employment as a superintendent 
        based on order of employment in any district.  If two or more 
        districts enter into an agreement for the purchase or sharing of 
        the services of a superintendent, the contracting districts have 
        the absolute right to select one of the individuals employed to 
        serve as superintendent in one of the contracting districts and 
        no individual has a right to employment as the superintendent to 
        provide all or part of the services based on order of employment 
        in a contracting district. The superintendent of a district 
        shall perform the following:  
           (1) visit and supervise the schools in the district, report 
        and make recommendations about their condition when advisable or 
        on request by the board; 
           (2) recommend to the board employment and dismissal of 
        teachers; 
           (3) superintend school grading practices and examinations 
        for promotions; 
           (4) make reports required by the commissioner; 
           (5) by January 10, submit an annual report to the 
        commissioner in a manner prescribed by the commissioner, in 
        consultation with school districts, identifying the expenditures 
        that the district requires to ensure an 80 percent and a 90 
        percent student passage rate on the basic standards test taken 
        in the eighth grade, identifying the amount of expenditures that 
        the district requires to ensure a 99 percent student passage 
        rate on the basic standards test by 12th grade, and how much the 
        district is cross-subsidizing programs with special education, 
        compensatory basic skills, and general education revenue; and 
           (6) perform other duties prescribed by the board. 
           Sec. 9.  Minnesota Statutes 1998, section 123B.77, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STATEMENT FOR COMPARISON AND CORRECTION.] By 
        November 30 of the calendar year of the submission of the 
        unaudited financial data, the district must provide to the 
        commissioner audited financial data for the preceding fiscal 
        year.  The audit must be conducted in compliance with generally 
        accepted governmental auditing standards, the federal Single 
        Audit Act, and the Minnesota legal compliance guide issued by 
        the office of the state auditor.  An audited financial statement 
        prepared in a form which will allow comparison with and 
        correction of material differences in the unaudited financial 
        data shall be submitted to the commissioner and the state 
        auditor by December 31.  The audited financial statement must 
        also provide a statement of assurance pertaining to uniform 
        financial accounting and reporting standards compliance and a 
        copy of the management letter submitted to the district by the 
        school district's auditor. 
           Sec. 10.  Minnesota Statutes 1998, section 123B.79, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
        district may maintain in a designated reserve for certain 
        severance pay account not more than 50 percent of the amount 
        necessary to meet the obligations for the portion of severance 
        pay that constitutes compensation for accumulated sick leave to 
        be used for payment of premiums for group insurance provided for 
        former employees by the district.  The amount necessary must be 
        calculated according to standards established by the advisory 
        council on uniform financial accounting and reporting 
        standards department. 
           Sec. 11.  Minnesota Statutes 1999 Supplement, section 
        123B.83, subdivision 4, is amended to read: 
           Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
        unappropriated operating unreserved general fund balance as 
        defined in section 126C.01, subdivision 11, calculated in 
        accordance with the uniform financial accounting and reporting 
        standards for Minnesota school districts, as of June 30 each 
        year, is more than 2-1/2 percent of the year's expenditure 
        amount, the district must, prior to January 31 of the next 
        fiscal year, submit a special operating plan to reduce the 
        district's deficit expenditures to the commissioner for 
        approval.  The commissioner may also require the district to 
        provide evidence that the district meets and will continue to 
        meet all high school graduation requirements. 
           Notwithstanding any other law to the contrary, a district 
        submitting a special operating plan to the commissioner under 
        this clause which is disapproved by the commissioner must not 
        receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
        124D, 125A, 126C, and 127A until a special operating plan of the 
        district is so approved. 
           (2) A district must receive aids pending the approval of 
        its special operating plan under clause (1).  A district which 
        complies with its approved operating plan must receive aids as 
        long as the district continues to comply with the approved 
        operating plan. 
           Sec. 12.  Minnesota Statutes 1998, section 123B.88, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
        may contract for the furnishing of authorized transportation 
        under rules established by the commissioner section 123B.52, and 
        may purchase gasoline and furnish same to a contract carrier for 
        use in the performance of a contract with the school district 
        for transportation of school children to and from school. 
           Sec. 13.  Minnesota Statutes 1998, section 123B.90, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The third week of 
        school is designated as school bus safety week. 
           A school board may designate one day of school bus safety 
        week as school bus driver day. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 14.  Minnesota Statutes 1999 Supplement, section 
        123B.90, subdivision 2, is amended to read: 
           Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
        provide public school pupils enrolled in grades kindergarten 
        through 10 with age-appropriate school bus safety training.  The 
        training must be results-oriented and shall consist of both 
        classroom instruction and practical training using a school 
        bus.  Upon completing the training, a student shall be able to 
        demonstrate knowledge and understanding of at least the 
        following competencies and concepts: 
           (1) transportation by school bus is a privilege and not a 
        right; 
           (2) district policies for student conduct and school bus 
        safety; 
           (3) appropriate conduct while on the school bus; 
           (4) the danger zones surrounding a school bus; 
           (5) procedures for safely boarding and leaving a school 
        bus; 
           (6) procedures for safe street or road crossing; 
           (7) school bus evacuation and other emergency procedures; 
        and 
           (8) appropriate training on the use of lap belts or lap and 
        shoulder belts, if the district uses buses equipped with lap 
        belts or lap and shoulder belts. 
           (b) Each nonpublic school located within the district must 
        provide all nonpublic school pupils enrolled in grades 
        kindergarten through 10 who are transported by school bus at 
        public expense and attend school within the district's 
        boundaries with training as required in paragraph (a).  The 
        school district shall make a bus available for the practical 
        training if the district transports the nonpublic students.  
        Each nonpublic school shall provide the instruction. 
           (c) All students enrolled in grades kindergarten through 3 
        who are transported by school bus and are enrolled during the 
        first or second week of school must demonstrate achievement of 
        the school bus safety training competencies by the end of the 
        third week of school.  All students enrolled in grades 4 through 
        10 who are transported by school bus and are enrolled during the 
        first or second week of school must demonstrate achievement of 
        the competencies by the end of the sixth week of school.  
        Students enrolled in grades kindergarten through 10 who enroll 
        in a school after the second week of school and are transported 
        by school bus shall undergo school bus safety training and 
        demonstrate achievement of the school bus safety competencies 
        within four weeks of the first day of attendance.  The pupil 
        school transportation safety director in each district must 
        certify to the commissioner annually that all students 
        transported by school bus within the district have 
        satisfactorily demonstrated knowledge and understanding of the 
        school bus safety competencies according to this section or 
        provide an explanation for a student's failure to demonstrate 
        the competencies.  The principal or other chief administrator of 
        each nonpublic school must certify annually to the public school 
        transportation safety director of the district in which the 
        school is located that all of the school's students transported 
        by school bus at public expense have received training.  A 
        district may deny transportation to a student who fails to 
        demonstrate the competencies, unless the student is unable to 
        achieve the competencies due to a disability, or to a student 
        who attends a nonpublic school that fails to provide training as 
        required by this subdivision. 
           (d) A district and a nonpublic school with students 
        transported by school bus at public expense must, to the extent 
        possible, provide kindergarten pupils with bus safety training 
        before the first day of school. 
           (e) A district and a nonpublic school with students 
        transported by school bus at public expense must also provide 
        student safety education for bicycling and pedestrian safety, 
        for students enrolled in grades kindergarten through 5. 
           (f) A district and a nonpublic school with students 
        transported by school bus at public expense must make reasonable 
        accommodations for the school bus, bicycle, and pedestrian 
        safety training of pupils known to speak English as a second 
        language and pupils with disabilities. 
           Sec. 15.  Minnesota Statutes 1999 Supplement, section 
        123B.91, subdivision 1, is amended to read: 
           Subdivision 1.  [COMPREHENSIVE POLICY.] (a) Each district 
        must shall develop and implement a comprehensive, written policy 
        governing pupil transportation safety, including transportation 
        of nonpublic school students, when applicable.  The 
        policy shall, at minimum, must contain: 
           (1) provisions for appropriate student bus safety training 
        under section 123B.90; 
           (2) rules governing student conduct on school buses and in 
        school bus loading and unloading areas; 
           (3) a statement of parent or guardian responsibilities 
        relating to school bus safety; 
           (4) provisions for notifying students and parents or 
        guardians of their responsibilities and the rules, including the 
        district's seat belt policy, if applicable; 
           (5) an intradistrict system for reporting school bus 
        accidents or misconduct and a system for dealing with local law 
        enforcement officials in cases of criminal conduct on a school 
        bus; 
           (6) a discipline policy to address violations of school bus 
        safety rules, including procedures for revoking a student's bus 
        riding privileges in cases of serious or repeated misconduct; 
           (7) a system for integrating school bus misconduct records 
        with other discipline records; 
           (8) a statement of bus driver duties; 
           (9) planned expenditures for safety activities under 
        section 123B.89 and, where applicable, provisions governing bus 
        monitor qualifications, training, and duties; 
           (10) rules governing the use and maintenance of type III 
        vehicles, drivers of type III vehicles, qualifications to drive 
        a type III vehicle, qualifications for a type III vehicle, and 
        the circumstances under which a student may be transported in a 
        type III vehicle; 
           (11) operating rules and procedures; 
           (12) provisions for annual bus driver in-service training 
        and evaluation; 
           (13) emergency procedures; 
           (14) a system for maintaining and inspecting equipment; 
           (15) requirements of the school district, if any, that 
        exceed state law minimum requirements for school bus operations; 
        and 
           (16) requirements for basic first aid training, which must 
        include the Heimlich maneuver and procedures for dealing with 
        obstructed airways, shock, bleeding, and seizures. 
           (b) Districts are encouraged to use the model policy 
        developed by the Minnesota school boards association, the 
        department of public safety, and the department of children, 
        families, and learning, as well as the current edition of the 
        "National Standards for School Buses and Operations 
        Transportation," published by the National Safety Council, in 
        developing safety policies.  Each district shall review its 
        policy annually and make appropriate amendments, which must be 
        submitted to the school bus safety advisory committee within one 
        month of approval by the school board to ensure that it conforms 
        to law. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 16.  Minnesota Statutes 1998, section 124D.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] (a) An enrollment options 
        program is established to enable any pupil to attend a school or 
        program in a district in which the pupil does not reside, 
        subject to the limitations in this section.  
           (b) A district may refuse to allow a pupil who is expelled 
        under section 121A.45 to enroll during the term of the expulsion 
        if the student was expelled for: 
           (1) possessing a dangerous weapon, as defined by United 
        States Code, title 18, section 930, paragraph (g)(2), at school 
        or a school function; 
           (2) possessing or using an illegal drug at school or a 
        school function; 
           (3) selling or soliciting the sale of a controlled 
        substance while at school or a school function; or 
           (4) committing a third-degree assault as described in 
        section 609.223, subdivision 1. 
           EFFECTIVE DATE:  This section is effective for the 
        2000-2001 school year and later. 
           Sec. 17.  Minnesota Statutes 1998, section 124D.081, 
        subdivision 6, is amended to read: 
           Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
        district is eligible for first-grade preparedness revenue equal 
        to the basic formula allowance for that year times the number of 
        children five years of age or older enrolled in a kindergarten 
        program at the site on October 1 of the previous year times .53. 
           (b) This revenue must supplement and not replace 
        compensatory revenue that the district uses for the same or 
        similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 
        and 127A. 
           (c) A pupil enrolled in the first grade preparedness 
        program at a qualifying school site is eligible for 
        transportation under section 123B.88, subdivision 1.  
           (d) First grade preparedness revenue paid to a charter 
        school for which a school district is providing transportation 
        according to section 124D.10, subdivision 16, shall be decreased 
        by an amount equal to the product of $170 the formula allowance 
        according to section 126C.10, subdivision 2, times .0485 times 
        the pupil units calculated according to paragraph (a).  This 
        amount shall be paid to the school district for transportation 
        costs.  
           Sec. 18.  Minnesota Statutes 1999 Supplement, section 
        124D.10, subdivision 3, is amended to read: 
           Subd. 3.  [SPONSOR.] A school board,; intermediate school 
        district school board,; education districts district organized 
        under sections 123A.15 to 123A.19,; charitable organization 
        under section 501(c)(3) of the Internal Revenue Code of 1986 
        that is a member of the Minnesota council of nonprofits or the 
        Minnesota council on foundations, registered with the attorney 
        general's office, and reports an end-of-year fund balance of at 
        least $2,000,000; Minnesota private college, that grants two- or 
        four-year degrees and is registered with the higher education 
        services office under chapter 136A; community college, state 
        university, or technical college, governed by the board of 
        trustees of the Minnesota state colleges and universities; or 
        the University of Minnesota may sponsor one or more charter 
        schools. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 19.  Minnesota Statutes 1999 Supplement, section 
        124D.10, subdivision 8, is amended to read: 
           Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
        school shall meet all applicable state and local health and 
        safety requirements. 
           (b) A school sponsored by a school board may be located in 
        any district, unless the school board of the district of the 
        proposed location disapproves by written resolution.  If such a 
        board denies a request to locate within its boundaries a charter 
        school sponsored by another school board, the sponsoring school 
        board may appeal to the commissioner.  If the commissioner 
        authorizes the school, the commissioner must sponsor the school. 
           (c) A charter school must be nonsectarian in its programs, 
        admission policies, employment practices, and all other 
        operations.  A sponsor may not authorize a charter school or 
        program that is affiliated with a nonpublic sectarian school or 
        a religious institution. 
           (d) Charter schools must not be used as a method of 
        providing education or generating revenue for students who are 
        being home-schooled. 
           (e) The primary focus of a charter school must be to 
        provide a comprehensive program of instruction for at least one 
        grade or age group from five through 18 years of age.  
        Instruction may be provided to people younger than five years 
        and older than 18 years of age. 
           (f) A charter school may not charge tuition. 
           (g) A charter school is subject to and must comply with 
        chapter 363 and section 121A.04. 
           (h) A charter school is subject to and must comply with The 
        Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
        Minnesota Public School Fee law, sections 123B.34 to 123B.39. 
           (i) A charter school is subject to the same financial 
        audits, audit procedures, and audit requirements as a district.  
        The audit must be consistent comply with the requirements of 
        sections 123B.75 to 123B.83, except to the extent deviations are 
        necessary because of the program at the school.  The department 
        of children, families, and learning, state auditor, or 
        legislative auditor may conduct financial, program, or 
        compliance audits.  A charter school determined to be in 
        statutory operating debt under sections 123B.81 to 123B.83 must 
        submit a plan under section 123B.81, subdivision 4. 
           (j) A charter school is a district for the purposes of tort 
        liability under chapter 466. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 20.  Minnesota Statutes 1998, section 124D.10, 
        subdivision 9, is amended to read: 
           Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
        limit admission to: 
           (1) pupils within an age group or grade level; 
           (2) people who are eligible to participate in the 
        graduation incentives program under section 124D.68; or 
           (3) residents of a specific geographic area where the 
        percentage of the population of non-Caucasian people of that 
        area is greater than the percentage of the non-Caucasian 
        population in the congressional district in which the geographic 
        area is located, and as long as the school reflects the racial 
        and ethnic diversity of the specific area. 
           A charter school shall enroll an eligible pupil who submits 
        a timely application, unless the number of applications exceeds 
        the capacity of a program, class, grade level, or building.  In 
        this case, pupils must be accepted by lot.  If a charter school 
        is the only school located in a town serving pupils within a 
        particular grade level, then pupils that are residents of the 
        town must be given preference for enrollment before accepting 
        pupils by lot.  If a pupil lives within two miles of a charter 
        school and the next closest public school is more than five 
        miles away, the charter school must give those pupils preference 
        for enrollment before accepting other pupils by lot. 
           A charter school shall give preference for enrollment to a 
        sibling of an enrolled pupil and to a foster child of that 
        pupil's parents before accepting other pupils by lot. 
           A charter school may not limit admission to pupils on the 
        basis of intellectual ability, measures of achievement or 
        aptitude, or athletic ability. 
           Sec. 21.  Minnesota Statutes 1999 Supplement, section 
        124D.10, subdivision 11, is amended to read: 
           Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
        charter school must employ or contract with necessary teachers, 
        as defined by section 122A.15, subdivision 1, who hold valid 
        licenses to perform the particular service for which they are 
        employed in the school.  The charter school's state aid may be 
        reduced under section 127A.42 if the school employs a teacher 
        who is not appropriately licensed or approved by the board of 
        teaching.  The school may employ necessary employees who are not 
        required to hold teaching licenses to perform duties other than 
        teaching and may contract for other services.  The school may 
        discharge teachers and nonlicensed employees.  A person, without 
        holding a valid administrator's license, may perform 
        administrative, supervisory, or instructional leadership duties. 
           The board of directors also shall decide matters related to 
        the operation of the school, including budgeting, curriculum and 
        operating procedures.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 22.  Minnesota Statutes 1999 Supplement, section 
        124D.10, subdivision 15, is amended to read: 
           Subd. 15.  [REVIEW AND COMMENT.] The department must review 
        and comment on the evaluation, by the chartering school district 
        sponsor, of the performance of a charter school before the 
        charter school's contract is renewed.  A sponsor shall monitor 
        and evaluate the fiscal and student performance of the school, 
        and may for this purpose annually assess the school up to $10 
        per student up to a maximum of $3,500.  The information from for 
        the review and comment shall be reported by the sponsor to the 
        commissioner of children, families, and learning in a timely 
        manner.  Periodically, the commissioner shall report trends or 
        suggestions based on the evaluation of charter school contracts 
        to the education committees of the state legislature.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 23.  Minnesota Statutes 1999 Supplement, section 
        124D.10, subdivision 23, is amended to read: 
           Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
        SCHOOL CONTRACT.] (a) The duration of the contract with a 
        sponsor must be for the term contained in the contract according 
        to subdivision 6.  The sponsor may or may not renew a contract 
        at the end of the term for any ground listed in paragraph (b).  
        A sponsor may unilaterally terminate a contract during the term 
        of the contract for any ground listed in paragraph (b).  At 
        least 60 days before not renewing or terminating a contract, the 
        sponsor shall notify the board of directors of the charter 
        school of the proposed action in writing.  The notice shall 
        state the grounds for the proposed action in reasonable detail 
        and that the charter school's board of directors may request in 
        writing an informal hearing before the sponsor within 14 days of 
        receiving notice of nonrenewal or termination of the contract.  
        Failure by the board of directors to make a written request for 
        a hearing within the 14-day period shall be treated as 
        acquiescence to the proposed action.  Upon receiving a timely 
        written request for a hearing, the sponsor shall give reasonable 
        notice to the charter school's board of directors of the hearing 
        date.  The sponsor shall conduct an informal hearing before 
        taking final action.  The sponsor shall take final action to 
        renew or not renew a contract by the last day of classes in the 
        school year.  If the sponsor is a local board, the school's 
        board of directors may appeal the sponsor's decision to the 
        commissioner. 
           (b) A contract may be terminated or not renewed upon any of 
        the following grounds: 
           (1) failure to meet the requirements for pupil performance 
        contained in the contract; 
           (2) failure to meet generally accepted standards of fiscal 
        management; 
           (3) violations of law; or 
           (4) other good cause shown. 
           If a contract is terminated or not renewed, the school must 
        be dissolved according to the applicable provisions of chapter 
        308A or 317A, except when the commissioner approves the decision 
        of a different eligible sponsor to authorize the charter school. 
           (c) The commissioner, after providing reasonable notice to 
        the board of directors of a charter school and the existing 
        sponsor, and after providing an opportunity for a public 
        hearing, may terminate the existing sponsorial relationship if 
        the charter school has a history of: 
           (1) financial mismanagement; or 
           (2) repeated violations of the law. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 24.  Minnesota Statutes 1999 Supplement, section 
        124D.11, subdivision 6, is amended to read: 
           Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
        school is eligible to receive other aids, grants, and revenue 
        according to chapters 120A to 129C, as though it were a district.
           (b) Notwithstanding paragraph (a), a charter school may not 
        receive aid, a grant, or revenue if a levy is required to obtain 
        the money, except as otherwise provided in this section.  
           (c) Federal aid received by the state must be paid to the 
        school, if it qualifies for the aid as though it were a school 
        district. 
           (d) A charter school may receive money from any source for 
        capital facilities needs.  In the year-end report to the 
        commissioner of children, families, and learning, the charter 
        school shall report the total amount of funds received from 
        grants and other outside sources. 
           (e) Notwithstanding paragraph (a) or (b), a charter school 
        is eligible may apply for a grant to receive the aid portion of 
        integration revenue under section 124D.86, subdivision 3, for 
        enrolled students who are residents of a district that is 
        eligible for integration revenue if the enrollment of the pupil 
        in the charter school contributes to desegregation or 
        integration purposes.  The commissioner shall determine grant 
        recipients and may adopt application guidelines.  The grants 
        must be competitively determined and must demonstrate that 
        enrolling pupils in the charter school contributes to 
        desegregation or integration purposes as determined by the 
        commissioner.  If the charter school has elected not to provide 
        transportation under section 124D.10, subdivision 16, the aid 
        shall be reduced by the amount per pupil unit specified for the 
        district where the charter school is located under section 
        123B.92, subdivision 8. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 25.  [125B.15] [INTERNET ACCESS FOR STUDENTS.] 
           (a) Recognizing the difference between school libraries, 
        school computer labs, and school media centers, which serve 
        unique educational purposes, and public libraries, which are 
        designed for public inquiry, all computers at a school site with 
        access to the Internet available for student use must be 
        equipped to restrict, including by use of available software 
        filtering technology or other effective methods, all student 
        access to material that is reasonably believed to be obscene or 
        child pornography or material harmful to minors under federal or 
        state law. 
           (b) A school site is not required to purchase filtering 
        technology if the school site would incur more than incidental 
        expense in making the purchase. 
           (c) A school district receiving technology revenue under 
        section 125B.25 must prohibit, including through use of 
        available software filtering technology or other effective 
        methods, adult access to material that under federal or state 
        law is reasonably believed to be obscene or child pornography. 
           (d) A school district, its agents or employees, are immune 
        from liability for failure to comply with this section if they 
        have made a good faith effort to comply with the requirements of 
        this section. 
           (e) "School site" means an education site as defined in 
        section 123B.04, subdivision 1, or charter school under section 
        124D.10. 
           Sec. 26.  Minnesota Statutes 1999 Supplement, section 
        127A.05, subdivision 6, is amended to read: 
           Subd. 6.  [SURVEY OF DISTRICTS.] The commissioner of 
        children, families, and learning shall survey the state's school 
        districts and teacher preparation programs and report to the 
        education committees of the legislature by January 15 of each 
        odd-numbered year on the status of teacher early retirement 
        patterns, the teacher shortage, and the substitute teacher 
        shortage, including patterns and shortages in subject areas and 
        regions of the state.  The report must also include how 
        districts are making progress in hiring teachers and substitutes 
        in the areas of shortage and a five-year projection of teacher 
        demand for each district. 
           Sec. 27.  [134.50] [INTERNET ACCESS; LIBRARIES.] 
           (a) Recognizing the difference between public libraries, 
        which are designed for public inquiry, and school libraries, 
        school computer labs, and school media centers, which serve 
        unique educational purposes, all public library computers with 
        access to the Internet available for use by children under the 
        age of 17 must be equipped to restrict, including by use of 
        available software filtering technology or other effective 
        methods, all access by children to material that is reasonably 
        believed to be obscene or child pornography or material harmful 
        to minors under federal or state law. 
           (b) A public library is not required to purchase filtering 
        technology if the public library would incur more than 
        incidental expense in making the purchase. 
           (c) A public library that receives state money must 
        prohibit, including through the use of available software 
        filtering technology or other effective methods, adult access to 
        material that under federal or state law is reasonably believed 
        to be obscene or child pornography.  A public library may remove 
        a person from the library if the person gains access or attempts 
        to gain access to materials prohibited under this section by 
        intentionally bypassing the filtering technology or other method 
        used by the library. 
           (d) A public library, its agents or employees, are immune 
        from liability for failure to comply with this section if they 
        have made a good faith effort to comply with the requirements of 
        this section. 
           (e) This section does not apply to the libraries of 
        post-secondary institutions. 
           Sec. 28.  Minnesota Statutes 1998, section 169.447, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [PASSENGER LAP AND SHOULDER BELTS.] (a) In 
        addition to the requirements in section 169.4501, subdivision 1, 
        a school bus may be equipped with an approved lap belt or an 
        approved lap and shoulder belt installed for each 
        passenger-seating position on the bus.  The design and 
        installation of lap belts and lap and shoulder belts required 
        under this paragraph must meet the standards of the commissioner 
        established under paragraph (b). 
           (b) The commissioner shall consider all concerns necessary 
        to properly integrate lap belts or lap and shoulder belts into 
        the current compartmentalization safety system and prescribe 
        standards for the design and installation of lap and shoulder 
        belts required under paragraph (a).  The standards are not 
        subject to chapter 14 and are specifically not subject to 
        section 14.386. 
           (c) This subdivision does not apply to specially equipped 
        school buses under section 169.4504. 
           (d) A passenger on a school bus equipped with lap belts or 
        lap and shoulder belts must use these lap belts or lap and 
        shoulder belts unless the passenger, or if the passenger is a 
        minor, the passenger's parent or guardian, has notified the 
        school district in writing that the passenger does not intend to 
        wear the lap belt or lap and shoulder belt. 
           (e) In an action for personal injury or wrongful death 
        against a school district, a school bus operator under contract 
        with a school district, or any agent or employee of a school 
        district or operator, or against a volunteer, no such person or 
        entity shall be held liable solely because the injured party was 
        not wearing a safety belt; provided, however, that nothing 
        contained herein shall be construed to grant immunity from 
        liability for failure to: 
           (1) maintain in operating order any equipment required by 
        statute, rule, or school district policy; or 
           (2) comply with an applicable statute, rule, or school 
        district policy. 
           (f) In an action for personal injury or wrongful death, a 
        school district, a school bus contract operator, any agent or 
        employee of a school district or operator, or a volunteer is not 
        liable for failing to assist any child with the adjustment, 
        fastening, unfastening, or other use of the lap belt or lap and 
        shoulder belt. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 29.  Minnesota Statutes 1998, section 169.448, 
        subdivision 3, is amended to read: 
           Subd. 3.  [HEAD START VEHICLE.] Notwithstanding subdivision 
        1, a vehicle used to transport passengers students under Public 
        Law Number 99-425, the Head Start Act, may be equipped as a 
        school bus or Head Start bus. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 30.  Minnesota Statutes 1999 Supplement, section 
        169.974, subdivision 2, is amended to read: 
           Subd. 2.  [LICENSE ENDORSEMENT AND PERMIT REQUIREMENTS.] 
        (a) No person shall operate a motorcycle on any street or 
        highway without having a valid standard driver's license with a 
        two-wheeled vehicle endorsement as provided by law.  No such The 
        commissioner of public safety shall issue a two-wheeled vehicle 
        endorsement shall be issued unless the person applying 
        therefor only if the applicant (1) has in possession a valid 
        two-wheeled vehicle instruction permit as provided herein in 
        paragraph (b), (2) has passed a written examination and road 
        test administered by the department of public safety for such 
        the endorsement, and, (3) in the case of applicants under 18 
        years of age, shall present presents a certificate or other 
        evidence of having successfully completed an approved 
        two-wheeled vehicle driver's safety course in this or another 
        state, in accordance with rules promulgated adopted by the 
        commissioner of children, families, and learning for courses 
        offered through the public schools, or rules promulgated by the 
        commissioner of public safety for courses offered by a public, 
        private, or commercial school or institute.  The commissioner of 
        public safety may waive the road test for any applicant on 
        determining that the applicant possesses a valid license to 
        operate a two-wheeled vehicle issued by a jurisdiction that 
        requires a comparable road test for license issuance.  
           (b) The commissioner of public safety shall issue a 
        two-wheeled vehicle instruction permit shall be issued to any 
        person over 16 years of age, who (1) is in possession of a valid 
        driver's license, who (2) is enrolled in an approved two-wheeled 
        vehicle driver's safety course, and who (3) has passed a written 
        examination for such the permit and has paid such a fee as 
        prescribed by the commissioner of public safety shall 
        prescribe.  A two-wheeled vehicle instruction permit shall be is 
        effective for one year, and may be renewed under rules to be 
        prescribed by the commissioner of public safety. 
           (c) No person who is operating by virtue of a two-wheeled 
        vehicle instruction permit shall: 
           (a) (1) carry any passengers on the streets and highways of 
        this state on the motorcycle which while the person is operating 
        the motorcycle; 
           (b) (2) drive the motorcycle at nighttime night; 
           (c) (3) drive the motorcycle on any highway marked by the 
        commissioner as an interstate highway pursuant to title 23 of 
        the United States Code; or 
           (d) (4) drive the motorcycle without wearing protective 
        headgear that complies with standards established by the 
        commissioner of public safety. 
           (d) Notwithstanding the provisions of this subdivision 
        paragraph (a), (b), or (c), the commissioner of public safety 
        may, however, issue a special motorcycle permit, restricted or 
        qualified in such manner as the commissioner of public 
        safety shall deem deems proper, to any person demonstrating a 
        need therefor for the permit and unable to qualify for a 
        standard driver's license. 
           Sec. 31.  Minnesota Statutes 1999 Supplement, section 
        171.05, subdivision 2, is amended to read: 
           Subd. 2.  [PERSON LESS THAN 18 YEARS OF AGE.] (a) 
        Notwithstanding any provision in subdivision 1 to the contrary, 
        the department, upon application therefor, may issue an 
        instruction permit to an applicant who is 15, 16, or 17 years of 
        age and the applicant who: 
           (1) has completed a course of driver education in another 
        state, has a previously issued valid license from another state, 
        or is enrolled in one of the following types of driver education 
        programs either: 
           (i) a public, private, or commercial driver education 
        program offered through the public schools that is approved by 
        the commissioner of public safety and that includes classroom 
        and behind-the-wheel training and that has been approved by the 
        commissioner of children, families, and learning; or 
           (ii) a course offered by a private, commercial driver 
        education school or institute that includes classroom and 
        behind-the-wheel training and that has been approved by the 
        department of public safety; or 
           (iii) an approved behind-the-wheel driver education program 
        when the student is receiving full-time instruction in a home 
        school within the meaning of sections 120A.22 and 120A.24, the 
        student is working toward a home-school diploma, the student's 
        status as a home-school student has been certified by the 
        superintendent of the school district in which the student 
        resides, and the student is taking home-classroom driver 
        training with classroom materials approved by the commissioner 
        of public safety; 
           (2) has completed the classroom phase of instruction in the 
        driver education program; 
           (3) has passed a test of the applicant's eyesight; 
           (4) has passed a department-administered test of the 
        applicant's knowledge of traffic laws, which test must be 
        administered by the department; 
           (5) has completed the required application, which must be 
        approved by (i) either parent when both reside in the same 
        household as the minor applicant or, if otherwise, then (ii) the 
        parent or spouse of the parent having custody or, in the event 
        there is no court order for custody, then (iii) the parent or 
        spouse of the parent with whom the minor is living or, if items 
        (i) to (iii) do not apply, then (iv) the guardian having custody 
        of the minor or, in the event a person under the age of 18 has 
        no living father, mother, or guardian, then (v) the applicant's 
        employer; provided, that the approval required by this clause 
        contains a verification of the age of the applicant and the 
        identity of the parent, guardian, or employer; and 
           (6) has paid the fee required in section 171.06, 
        subdivision 2. 
           (b) The instruction permit is valid for one year from the 
        date of application and may be renewed upon payment of a fee 
        equal to the fee for issuance of an instruction permit under 
        section 171.06, subdivision 2. 
           Sec. 32.  Minnesota Statutes 1998, section 171.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES.] (a) The fees for a license and Minnesota 
        identification card are as follows: 
        Classified Driver's License  D-$18.50 C-$22.50 B-$29.50 A-$37.50
        Classified Under-21 D.L.     D-$18.50 C-$22.50 B-$29.50 A-$17.50
        Instruction Permit                                        $ 9.50
        Provisional License                                       $ 9.50
        Duplicate License or
         duplicate identification card                            $ 8.00
        Minnesota identification card or Under-21 Minnesota
        identification card, other than duplicate,
        except as otherwise provided in section 171.07,
        subdivisions 3 and 3a $12.50
           (b) Notwithstanding paragraph (a), a person who holds a 
        provisional license and has a driving record free of (1) 
        convictions for a violation of section 169.121, 169.1218, 
        169.122, or 169.123, (2) convictions for crash-related moving 
        violations, and (3) convictions for moving violations that are 
        not crash related, shall have a $3.50 credit toward the fee for 
        any classified under-21 driver's license.  "Moving violation" 
        has the meaning given it in section 171.04, subdivision 1. 
           (c) In addition to the driver's license fee required under 
        paragraph (a), the registrar shall collect an additional $4 
        processing fee from each new applicant or person renewing a 
        license with a school bus endorsement to cover the costs for 
        processing an applicant's initial and biennial physical 
        examination certificate.  The department shall not charge these 
        applicants any other fee to receive or renew the endorsement. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 33.  Minnesota Statutes 1998, section 171.321, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RULES.] (a) The commissioner of public safety 
        shall prescribe rules governing the physical qualifications of 
        school bus drivers and tests required to obtain a school bus 
        endorsement.  The rules must provide that an applicant for a 
        school bus endorsement or renewal is exempt from the physical 
        qualifications and medical examination required to operate a 
        school bus upon providing evidence of being medically examined 
        and certified within the preceding 24 months as physically 
        qualified to operate a commercial motor vehicle, pursuant to 
        Code of Federal Regulations, title 49, part 391, subpart E, or 
        rules of the commissioner of transportation incorporating those 
        federal regulations.  The commissioner shall accept physical 
        examinations for school bus drivers conducted by medical 
        examiners authorized as provided by the Code of Federal 
        Regulations, title 49, chapter 3, part 391, subpart E. 
           (b) The commissioner of public safety, in conjunction with 
        the commissioner of economic security, shall adopt rules 
        prescribing a training program for Head Start bus drivers.  The 
        program must provide for initial classroom and behind-the-wheel 
        training, and annual in-service training.  The program must 
        provide training in defensive driving, human relations, 
        emergency and accident procedures, vehicle maintenance, traffic 
        laws, and use of safety equipment.  The program must provide 
        that the training will be conducted by the contract operator for 
        a Head Start agency, the Head Start grantee, a licensed driver 
        training school, or by another person or entity approved by both 
        commissioners. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 34.  Minnesota Statutes 1998, section 171.321, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RECORDS CHECK OF APPLICANT.] (a) Before issuing 
        or renewing a school bus endorsement, the commissioner shall 
        conduct a criminal and driver's license records check of the 
        applicant.  The commissioner may also conduct the check at any 
        time while a person is so licensed.  The check shall must 
        consist of a criminal records check of the state criminal 
        records repository and a check of the driver's license records 
        system.  If the applicant has resided in Minnesota for less than 
        five years, the check shall must also include a criminal records 
        check of information from the state law enforcement agencies in 
        the states where the person resided during the five years before 
        moving to Minnesota, and of the national criminal records 
        repository including the criminal justice data communications 
        network.  The applicant's failure to cooperate with the 
        commissioner in conducting the records check is reasonable cause 
        to deny an application or cancel a school bus endorsement.  The 
        commissioner may not release the results of the records check to 
        any person except the applicant or the applicant's designee in 
        writing. 
           (b) The commissioner may issue to an otherwise qualified 
        applicant a temporary school bus endorsement, effective for no 
        more than 180 days, upon presentation of (1) an affidavit by the 
        applicant that the applicant has not been convicted of a 
        disqualifying offense and (2) a criminal history check from each 
        state of residence for the previous five years.  The criminal 
        history check may be conducted and prepared by any public or 
        private source acceptable to the commissioner.  The commissioner 
        may reissue the temporary endorsement if the National Criminal 
        Records Repository check is timely submitted but not completed 
        within the 180-day period. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 35.  Minnesota Statutes 1998, section 171.321, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TRAINING.] (a) No person shall drive a class A, 
        B, C, or D school bus when transporting school children to or 
        from school or upon a school-related trip or activity without 
        having demonstrated sufficient skills and knowledge to transport 
        students in a safe and legal manner. 
           (b) A bus driver must have training or experience that 
        allows the driver to meet at least the following competencies: 
           (1) safely operate the type of school bus the driver will 
        be driving; 
           (2) understand student behavior, including issues relating 
        to students with disabilities; 
           (3) encourage orderly conduct of students on the bus and 
        handle incidents of misconduct appropriately; 
           (4) know and understand relevant laws, rules of the road, 
        and local school bus safety policies; 
           (5) handle emergency situations; and 
           (6) safely load and unload students. 
           (c) The commissioner of public safety, in conjunction with 
        the commissioner of children, families, and learning, shall 
        develop a comprehensive model school bus driver training program 
        and model assessments for school bus driver training 
        competencies, which are not subject to chapter 14.  A school 
        district may use alternative assessments for bus driver training 
        competencies with the approval of the commissioner of public 
        safety.  The employer shall keep the assessment for the current 
        period available for inspection by representatives of the 
        commissioner. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 36.  Minnesota Statutes 1998, section 171.321, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ANNUAL EVALUATION.] A school district's pupil 
        transportation safety director, the chief administrator of a 
        nonpublic school, or a private contractor shall certify annually 
        to the commissioner of public safety school board or governing 
        board of a nonpublic school that, at minimum, each school bus 
        driver meets the school bus driver training competencies under 
        subdivision 4 and shall report the number of hours of in-service 
        training completed by each driver.  A school district, nonpublic 
        school, or private contractor also shall provide in-service 
        training annually to each school bus driver.  A district, 
        nonpublic school, or private contractor also shall check the 
        license of each person who transports students for the district 
        with the National Drivers Register or the department of public 
        safety annually.  The school board must approve and forward the 
        competency certification and in-service report to the 
        commissioner of public safety. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 37.  Minnesota Statutes 1999 Supplement, section 
        260C.143, subdivision 4, is amended to read: 
           Subd. 4.  [TRUANT.] When a peace officer or probation 
        officer has probable cause to believe that a child is currently 
        under age 16 and absent from school without lawful excuse, 
        consistent with section 120A.22, subdivisions 5 and 8, the 
        officer may: 
           (1) transport the child to the child's home and deliver the 
        child to the custody of the child's parent or guardian,; 
           (2) transport the child to the child's school of enrollment 
        and deliver the child to the custody of a school superintendent 
        or teacher or; 
           (3) transport the child to a truancy service center under 
        section 260A.04, subdivision 3; or 
           (4) transport the child from the child's home to the 
        child's school of enrollment or to a truancy service center. 
           Sec. 38.  Minnesota Statutes 1998, section 471.15, is 
        amended to read: 
           471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 
        BONDS.] 
           (a) Any home rule charter or statutory city or any town, 
        county, school district, or any board thereof, or any 
        incorporated post of the American Legion or any other 
        incorporated veterans' organization, may expend not to exceed 
        $800 in any one year, for the purchase of awards and trophies 
        and may operate a program of public recreation and playgrounds; 
        acquire, equip, and maintain land, buildings, or other 
        recreational facilities, including an outdoor or indoor swimming 
        pool; and expend funds for the operation of such program 
        pursuant to the provisions of sections 471.15 to 471.19.  The 
        city, town, county or school district may issue bonds pursuant 
        to chapter 475 for the purpose of carrying out the powers 
        granted by this section.  The city, town, county or school 
        district may operate the program and facilities directly or 
        establish one or more recreation boards to operate all or 
        various parts of them. 
           (b) A home rule charter or statutory city, a county, or a 
        town may expend funds for the purpose of supporting student 
        academic or extracurricular activities sponsored by the local 
        school district. 
           Sec. 39.  Laws 1999, chapter 241, article 5, section 18, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
        lease aid according to Minnesota Statutes, section 124D.11, 
        subdivision 4: 
             $2,992,000 $ 5,981,000     .....     2000
             $3,616,000 $10,807,000     .....     2001
           The 2000 appropriation includes $194,000 for 1999 and 
        $2,798,000 $5,787,000 for 2000. 
           The 2001 appropriation includes $311,000 $643,000 for 2000 
        and $3,305,000 $10,164,000 for 2001.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 40.  Laws 1999, chapter 241, article 5, section 18, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
        school start-up cost aid under Minnesota Statutes, section 
        124D.11: 
             $1,789,000 $1,955,000   .....     2000 
             $1,876,000 $2,926,000   .....     2001 
           The 2000 appropriation includes $100,000 for 1999 and 
        $1,689,000 $1,855,000 for 2000.  
           The 2001 appropriation includes $188,000 $206,000 for 
        1999 2000 and $1,688,000 $2,720,000 for 2001. 
           Any balance in the first year does not cancel but is 
        available in the second year.  This appropriation may also be 
        used for grants to convert existing schools into charter schools.
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 41.  [RESIDENTIAL ACADEMIES.] 
           In the event that a recipient who has been awarded a grant 
        under Laws 1998, chapter 398, article 5, section 46, has 
        received approval for updated capital and operating plans after 
        June 1, 1999, and has not substantially performed pursuant to 
        the terms and conditions of its award by June 30, 2002, the 
        commissioner shall reopen the application process with respect 
        to any funds available. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 42.  [MINNESOTA NEW TEACHER PROJECT.] 
           Subdivision 1.  [ESTABLISHMENT; PARTICIPATION.] The 
        Minnesota new teacher project is established in the department 
        of children, families, and learning in order to retain new 
        teachers in the profession and to provide models for supporting 
        the professional development of first-year and second-year 
        teachers.  In order for a school district to participate in the 
        new teacher project, a school board and an exclusive 
        representative of the teachers in the district, or for a charter 
        school the majority of the teachers, must agree to participate 
        in the new teacher project and to the district plan under 
        subdivision 2. 
           Subd. 2.  [DISTRICT PLAN.] A district that participates in 
        the new teacher project must submit a plan for the project to 
        the commissioner for approval.  The new teacher project plan 
        must be consistent with the knowledge and skills required in the 
        teacher licensure rules adopted by the board of teaching and the 
        state graduation requirements and include curricula of best 
        practice activities such as one-on-one mentoring, intensive 
        summer orientation, first-year and second-year training 
        workshops, peer review, mutual observation between new and 
        experienced teachers, classroom management techniques, cultural 
        diversity, reading strategies, lighter workloads, and first-year 
        residency.  The plan must include the participation of a teacher 
        preparation program approved by the board of teaching. 
           Districts receiving a grant under this section must report 
        to the board of teaching regarding its chosen new teacher 
        project plan. 
           Subd. 3.  [STATE MATCH.] A district that has an approved 
        new teacher project plan is eligible to receive $3,000 of state 
        money for each new teacher participating in the project.  The 
        district must contribute $2,000 of district money for each new 
        teacher participating in the project. 
           Sec. 43.  [TASK FORCE ON SCHOOL GOVERNANCE AND MANAGEMENT.] 
           Subdivision 1.  [ESTABLISHMENT.] The task force on school 
        governance and management is established to examine the existing 
        constitutional and statutory provisions that dictate the 
        governance responsibilities and authority of the respective 
        components of the state's public education system. 
           Subd. 2.  [MEMBERSHIP; STAFFING.] (a) The task force on 
        school governance and management must be composed of nine 
        members, with three members appointed by the governor, three 
        members appointed by the speaker of the house of 
        representatives, and three members appointed by the subcommittee 
        on committees of the senate committee on rules and 
        administration.  Members should represent the business 
        community, education stakeholders, parents, or other interested 
        community members. 
           (b) The executive branch through the office of the governor 
        shall make staff available to assist the task force. 
           Subd. 3.  [REPORT.] (a) The task force on school governance 
        and management must report to the governor and the appropriate 
        committees of the house and senate no later than December 1, 
        2000. 
           (b) The task force must do the following: 
           (1) identify any governance or organizational barriers that 
        inhibit or preclude schools or school districts from: 
           (i) ensuring all students meet state and local graduation 
        standards; 
           (ii) ensuring instructional programs are available to meet 
        individual student's academic needs; 
           (iii) making efficient changes in instructional and 
        noninstructional program and service delivery; and 
           (iv) delegating instructional and general operating 
        decision-making to the school level; and 
           (2) make recommendations regarding the statutory changes 
        needed to enable school districts to: 
           (i) continuously identify changes to meet the needs of 
        student cohorts; 
           (ii) provide a variety of instructional opportunities to 
        meet individual student needs; 
           (iii) measure individual student academic achievement; and 
           (iv) modify or expand instructional programs if student 
        achievement does not meet expectations. 
           Subd. 4.  [EXPIRATION.] The task force on school governance 
        and management expires on December 31, 2000. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 44.  [2000-2001 SCHOOL YEAR START DATE.] 
           Subdivision 1.  [LABOR DAY START.] Notwithstanding 
        Minnesota Statutes, section 120A.40, for the 2000-2001 school 
        year only, a district must not begin the elementary or secondary 
        school year prior to Labor Day. 
           Subd. 2.  [MABEL-CANTON INDEPENDENT SCHOOL DISTRICT NO. 
        238.] Notwithstanding subdivision 1 and Minnesota Statutes, 
        section 120A.40, for the 2000-2001 school year only, independent 
        school district No. 238, Mabel-Canton, may start the school year 
        up to five weekdays before Labor Day for the purpose of 
        scheduling an additional academic term during the regular school 
        year. 
           Subd. 3.  [BROWNS VALLEY INDEPENDENT SCHOOL DISTRICT NO. 
        801.] Notwithstanding subdivision 1 and Minnesota Statutes, 
        section 120A.40, for the 2000-2001 school year only, independent 
        school district No. 801, Browns Valley, may start the school 
        year up to five weekdays before Labor Day for the purpose of 
        scheduling an additional academic term during the regular school 
        year. 
           Sec. 45.  [CHARTER SCHOOL BUILDING LEASE AID REVIEW.] 
           The department of children, families, and learning shall 
        work with charter school operators and other interested parties 
        to create recommendations for appropriate criteria for charter 
        school building lease aid and report its findings to the 
        education committees of the legislature by January 15, 2001. 
           Sec. 46.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sum indicated in this section is appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal year indicated. 
           Subd. 2.  [PROFESSIONAL TEACHING STANDARDS.] For grant 
        awards for national board for professional teaching standards 
        certification according to Laws 1997, First Special Session 
        chapter 4, article 5, section 22: 
             $150,000     .....     2001
           This is a one-time appropriation. 

                                   ARTICLE 7 
                    KINDERGARTEN THROUGH GRADE 12 EDUCATION 
                  NUTRITION AND OTHER PROGRAMS; FUND TRANSFERS 
           Section 1.  [121A.30] [PESTICIDE APPLICATION AT SCHOOLS.] 
           Subdivision 1.  [PARENTS' RIGHT-TO-KNOW ACT.] Subdivisions 
        2 to 14 may be cited as the Janet B. Johnson Parents' 
        Right-to-Know Act of 2000. 
           Subd. 2.  [PESTICIDE APPLICATION NOTIFICATION.] A school 
        that plans to apply a pesticide which is a toxicity category I, 
        II, or III pesticide product, as classified by the United States 
        Environmental Protection Agency, or a restricted use pesticide, 
        as designated under the Federal Insecticide, Fungicide, and 
        Rodenticide Act, on school property, must provide a notice to 
        parents and employees that it applies such pesticides.  The 
        notice required under subdivision 3 must: 
           (1) provide that an estimated schedule of the pesticide 
        applications is available for review or copying at the school 
        offices where such pesticides are applied; 
           (2) state that long-term health effects on children from 
        the application of such pesticides or the class of chemicals to 
        which they belong may not be fully understood; 
           (3) inform parents that a parent may request the school 
        notify him or her in the manner specified in subdivision 6 
        before any application of a pesticide listed in this subdivision.
           Subd. 3.  [NOTICE; TIMING; DISTRIBUTION.] The notice must 
        be provided no later than September 15 of each school year 
        during which pesticides listed in subdivision 2 are planned to 
        be applied.  The notice may be included with other notices 
        provided by the school, but must be separately identified and 
        clearly visible to the reader.  
           Subd. 4.  [SCHOOL HANDBOOK OR STATEMENT OF POLICIES.] In 
        addition to the notice provided according to subdivision 3, a 
        school that is required to provide notice under this section 
        shall include in an official school handbook or official school 
        policy guide of a general nature a section informing parents 
        that an estimated schedule of applications of pesticides listed 
        in subdivision 2 is available for review or copying at the 
        school offices, and that a parent may receive prior notice of 
        each application if specifically requested.  
           Subd. 5.  [NOTICE AVAILABILITY.] A school that uses a 
        pesticide listed in subdivision 2 must keep a copy of all 
        notifications required under subdivisions 2 and 3 for at least 
        six years in a manner available to the public.  
           Subd. 6.  [NOTIFICATION FOR INDIVIDUAL PARENTS.] A parent 
        of a student at a school may request that the school principal 
        or other person having general control and supervision of the 
        school notify the parent prior to the application of any 
        pesticides listed in subdivision 2 at the school on a day 
        different from the days specified in the notice under 
        subdivision 3.  The school principal or other person having 
        general control and supervision of the school must provide 
        reasonable notice to a parent who has requested such 
        notification prior to applying such pesticides.  The notice may 
        be waived for emergency applications required only by 
        appropriate state or local health officials.  The notice must 
        include the pesticide to be applied, the time of the planned 
        application, and the location at the school of the planned 
        application.  A school may request reimbursement for the 
        school's reasonable costs of providing notice under this 
        subdivision, including any costs of mailing, from individuals 
        requesting notification under this subdivision. 
           Subd. 7.  [MODEL NOTICE.] The department of health, in 
        consultation with the department of children, families, and 
        learning, the office of environmental assistance, and University 
        of Minnesota extension service, shall develop and make available 
        to schools by August 1, 2000, a model notice in a form that can 
        be used by a school if it chooses to do so.  The model notice 
        must include the information required by this section.  The 
        department of health must provide an opportunity for 
        environmental groups, interested parents, public health 
        organizations, and other parties to work with the department in 
        developing the model notice.  
           Subd. 8.  [PLAN.] A school is not required to adopt an 
        integrated pest management plan.  A school board may only notify 
        students, parents, or employees that it has adopted an 
        integrated pest management plan if the plan is a managed pest 
        control program designed to minimize the risk to human health 
        and the environment and to reduce the use of chemical 
        pesticides, and which ranks the district's response to pests in 
        the following manner: 
           (1) identifying pests which need to be controlled; 
           (2) establishing tolerable limits of each identified pest; 
           (3) designing future buildings and landscapes to prevent 
        identified pests; 
           (4) excluding identified pests from sites and buildings 
        using maintenance practices; 
           (5) adapting cleaning activities and best management 
        practices to minimize the number of pests; 
           (6) using mechanical methods of controlling identified 
        pests; and 
           (7) controlling identified pests using the least toxic 
        pesticides with the least exposure to persons as is practicable. 
           Subd. 9.  [PESTICIDE DEFINED; CLEANING PRODUCTS 
        EXCLUDED.] For purposes of this section, the term "pesticide" 
        has the meaning given it in section 18B.01, subdivision 18, 
        except that it does not include any disinfectants, sanitizers, 
        deodorizers, or antimicrobial agents used for general cleaning 
        purposes. 
           Subd. 10.  [PEST DEFINED.] For purposes of this section, 
        the term "pest" has the meaning given it in section 18B.01, 
        subdivision 17. 
           Subd. 11.  [SCHOOL DEFINED.] For the purposes of this 
        section, "school" means a school as defined in section 120A.22, 
        subdivision 4, excluding home schools. 
           Subd. 12.  [IMMUNITY FROM LIABILITY.] No cause of action 
        may be brought against a school district, a school, or the 
        districts or school's employees or agents for any failure to 
        comply with the requirements under this section. 
           Subd. 13.  [EVIDENCE OF FAILURE TO COMPLY EXCLUDED.] A 
        failure to comply with the requirements of this section may not 
        be presented as evidence in any lawsuit based upon physical 
        injury resulting from exposure to pesticides applied at a school.
           Subd. 14.  [NO SPECIAL RIGHTS.] Nothing in this section 
        affects the duty of a parent or a student to comply with the 
        compulsory attendance law or the duty of a school employee to 
        comply with the provisions of an applicable employment contract 
        or policy.  
           EFFECTIVE DATE:  This section is effective August 1, 2000. 
           Sec. 2.  Minnesota Statutes 1998, section 124D.111, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
        year, the state must pay districts participating in the national 
        school lunch program the amount of 6.5 eight cents for each full 
        paid, reduced, and free student lunch served to students in the 
        district. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        124D.1155, subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
        public or nonpublic elementary school that participates in the 
        federal school breakfast and lunch programs.  The commissioner 
        must give first priority to schools where at least 33 percent of 
        the lunches the school served to children during the second 
        preceding school year were provided free or at a reduced price.  
        The commissioner must give second priority to all other public 
        or nonpublic elementary schools. 
           Sec. 4.  Laws 1999, chapter 241, article 6, section 14, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
        Minnesota Statutes, section 127A.49:  
              $9,110,000 $9,577,000   .....     2000 
              $8,947,000 $8,279,000   .....     2001 
           The 2000 appropriation includes $1,352,000 for 1999 and 
        $7,758,000 $8,225,000 for 2000.  
           The 2001 appropriation includes $861,000 $914,000 for 2000 
        and $8,086,000 $7,365,000 for 2001.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 5.  Laws 1999, chapter 241, article 6, section 14, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
        education aid according to Minnesota Statutes, sections 123B.40 
        to 123B.48 and 123B.87: 
             $10,996,000   .....      2000 
             $11,878,000 $13,448,000   .....      2001
           The 2000 appropriation includes $970,000 for 1999 and 
        $10,026,000 for 2000. 
           The 2001 appropriation includes $1,114,000 $1,175,000 for 
        2000 and $10,764,000 $12,273,000 for 2001.  
           The department shall recompute the maximum allotments 
        established on March 1, 1999, for fiscal year 2000 under 
        Minnesota Statutes, sections 123B.42, subdivision 3, and 
        123B.44, subdivision 6, to reflect the amount appropriated in 
        this subdivision for fiscal year 2000. 
           The department shall recompute the maximum allotments 
        established on March 1, 2000, for fiscal year 2001 under 
        Minnesota Statutes, sections 123B.42, subdivision 3, and 
        123B.44, subdivision 6, to reflect the amount appropriated in 
        this subdivision for fiscal year 2001. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 6.  Laws 1999, chapter 241, article 6, section 14, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
        consolidating under Minnesota Statutes, section 123A.485: 
             $451,000 $563,000      .....     2000
             $375,000 $455,000      .....     2001
           The 2000 appropriation includes $113,000 for 1999 and 
        $338,000 $450,000 for 2000. 
           The 2001 appropriation includes $37,000 $50,000 for 2000 
        and $338,000 $405,000 for 2001. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 7.  Laws 1999, chapter 241, article 6, section 14, 
        subdivision 5, is amended to read: 
           Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
        pupil transportation aid under Minnesota Statutes, section 
        123B.92, subdivision 9: 
             $18,586,000 $20,358,000   .....     2000 
             $20,922,000 $21,333,000   .....     2001 
           The 2000 appropriation includes $1,848,000 for 2000 1999 
        and $16,738,000 $18,510,000 for 2001 2000. 
           The 2001 appropriation includes $1,860,000 $2,057,000 for 
        2000 and $19,062,000 $19,276,000 for 2001. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 8.  Laws 1999, chapter 241, article 7, section 2, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SCHOOL LUNCH AID.] (a) For school lunch aid 
        according to Minnesota Statutes, section 124D.111, and Code of 
        Federal Regulations, title 7, section 210.17, and for school 
        milk aid according to Minnesota Statutes, section 124D.118:  
             $8,200,000 $8,340,000     .....     2000 
             $8,200,000 $8,566,000     .....     2001 
           (b) Any unexpended balance remaining from the 
        appropriations in this subdivision shall be prorated among 
        participating schools based on the number of free, reduced, and 
        fully paid federally reimbursable student lunches served during 
        that school year.  
           (c) If the appropriation amount attributable to either year 
        is insufficient, the rate of payment for each fully paid student 
        lunch shall be reduced and the aid for that year shall be 
        prorated among participating schools so as not to exceed the 
        total authorized appropriation for that year.  
           (d) Not more than $800,000 of the amount appropriated each 
        year may be used for school milk aid. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 9.  Laws 1999, chapter 241, article 7, section 2, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SCHOOL BREAKFAST.] To operate the school 
        breakfast program according to Minnesota Statutes, sections 
        124D.115 and 124D.117: 
             $456,000 $713,000     .....     2000
             $456,000 $713,000     .....     2001
           If the appropriation amount attributable to either year is 
        insufficient, the rate of payment for each fully paid student 
        breakfast shall be reduced and the aid for that year shall be 
        prorated among participating schools so as not to exceed the 
        total authorized appropriation for that year.  Any unexpended 
        balance remaining shall be used to subsidize the payments made 
        for school lunch aid per Minnesota Statutes, section 124D.111.  
           Up to one percent of the program funding can be used by the 
        department of children, families, and learning for technical and 
        administrative assistance. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 10.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 
        WEB SITE.] 
           The department of children, families, and learning must 
        maintain a list of pesticides that will enable a school district 
        to identify whether the district is using a pesticide that is 
        classified as toxicity category I, II, or III pesticide products 
        or as restricted use pesticides under the Federal Insecticide, 
        Fungicide, and Rodenticide Act for purposes of providing notice 
        required by Minnesota Statutes, section 121A.30.  To the extent 
        practicable, the list maintained shall include the name under 
        which the pesticide is registered by the environmental 
        protection agency and the common brand names by which it is 
        sold.  The department must maintain the list on its Web site or 
        as a prominent link on its Web site to another state or federal 
        agency's Web site. 
           EFFECTIVE DATE:  This section is effective August 1, 2000. 
           Sec. 11.  [PESTICIDE REPORTING.] 
           (a) The commissioner of agriculture, in cooperation with 
        the University of Minnesota extension service; the commissioners 
        of administration; children, families, and learning; health; 
        transportation; natural resources; and the pollution control 
        agency; and other interested parties, must review the use of 
        pesticide and integrated pest management techniques and 
        practices as they are applied to the use and storage of 
        pesticides in and around a representative sample of buildings 
        owned by the state and buildings and grounds used for 
        kindergarten through grade 12 public education.  Recommendations 
        by the commissioner of agriculture on the use and avoidance of 
        pesticides and comprehensive integrated pest management 
        practices in state buildings and kindergarten through grade 12 
        public school buildings, including the training of building 
        managers and school personnel, must be presented to the 
        environmental policy and finance committees of the legislature 
        by January 15, 2001. 
           (b) For purposes of the review and report in paragraph (a), 
        the term "pesticide" has the meaning given in Minnesota 
        Statutes, section 18B.01, subdivision 18, except that it does 
        not include disinfectants, sanitizers, deodorizers, or 
        antimicrobial agents for general cleaning purposes. 
           Sec. 12.  [FUND TRANSFERS.] 
           Subdivision 1.  [LAKEVILLE.] Notwithstanding Minnesota 
        Statutes, section 123B.79 or 123B.80, independent school 
        district No. 194, Lakeville, may transfer up to $1,000,000 from 
        its reserved account for operating capital to the unreserved, 
        undesignated general fund.  When independent school district No. 
        194, Lakeville, attains a positive unreserved, undesignated 
        general fund balance greater than ten percent of the most recent 
        fiscal year's expenditures, the district shall transfer the 
        amount exceeding ten percent to its reserve account for 
        operating capital until an amount is transferred back that is 
        equal to the amount transferred under this authority.  This 
        subdivision expires on December 31, 2014.  
           Subd. 2.  [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 
        Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 
        2000, upon approval of the commissioner of children, families, 
        and learning, independent school district No. 771, 
        Chokio-Alberta, may permanently transfer up to $121,000 from its 
        reserved account for disabled accessibility to its undesignated 
        general fund balance. 
           (b) Prior to making the fund transfer, independent school 
        district No. 771, Chokio-Alberta, must demonstrate to the 
        commissioner's satisfaction that the district's school buildings 
        are accessible to students or employees with disabilities. 
           Subd. 3.  [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 
        sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 
        30, 2000, independent school district No. 832, Mahtomedi, may 
        permanently transfer up to $525,000 from its debt redemption 
        fund to its capital account in its general fund without making a 
        levy reduction to purchase land for a school facility. 
           Subd. 4.  [NORMAN COUNTY EAST.] Notwithstanding Minnesota 
        Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
        on June 2000, independent school district No. 2215, Norman 
        County East, may permanently transfer up to $419,000 from its 
        building construction fund to the reserved account for operating 
        capital in the general fund without making a levy reduction. 
           Subd. 5.  [ST. FRANCIS.] Notwithstanding Minnesota 
        Statutes, section 123B.53, on June 30, 2000, independent school 
        district No. 15, St. Francis, may permanently transfer $543,000 
        from its debt service fund to the general fund to help the 
        district out of statutory operating debt without making a levy 
        reduction.  This transfer is contingent upon the district 
        maintaining 105 percent of principal and interest against the 
        debt service fund liabilities. 
           Subd. 6.  [STAPLES-MOTLEY.] Notwithstanding Minnesota 
        Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
        on May 31, 2000, independent school district No. 2170, 
        Staples-Motley, may permanently transfer up to $71,000 from the 
        debt service account of the former independent school district 
        No. 483, Motley, to independent school district No. 2170, 
        Staples-Motley's, operating capital fund without making a levy 
        reduction. 
           Subd. 7.  [FERGUS FALLS.] Notwithstanding Minnesota 
        Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
        independent school district No. 544, Fergus Falls, on June 30, 
        2000, may permanently transfer up to $200,000 from the debt 
        redemption fund to the general fund without making a levy 
        reduction. 
           Subd. 8.  [CROOKSTON.] Notwithstanding Minnesota Statutes, 
        section 123B.79, 123B.80, or 475.61, subdivision 4, independent 
        school district No. 593, Crookston, on June 30, 2000, may 
        permanently transfer up to $400,000 from the debt redemption 
        fund to the general fund without making a levy reduction. 
           Subd. 9.  [LAKEVIEW SCHOOLS.] Notwithstanding any law to 
        the contrary, independent school district No. 2167, Lakeview 
        schools, is authorized to retain a cooperative facilities grant 
        awarded in fiscal year 1995, and may permanently transfer that 
        amount to its reserve account for operating capital. 
           Subd. 10.  [PARKERS PRAIRIE.] Notwithstanding Minnesota 
        Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
        independent school district No. 547, Parkers Prairie, on June 
        30, 2000, may permanently transfer up to $105,000 from the debt 
        redemption fund to the reserved account for operating capital in 
        the general fund without making a levy reduction. 
           Subd. 11.  [GRAND MEADOW.] Notwithstanding Minnesota 
        Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
        independent school district No. 495, Grand Meadow, may 
        permanently transfer up to $300,000 from its disabled access 
        account in the general fund to its capital fund.  This transfer 
        is contingent upon the school district's successful construction 
        of a new kindergarten through grade 12 school. 
           Subd. 12.  [WIN-E-MAC.] At the completion of the 
        consolidation of independent school district No. 604, Mentor, 
        and independent school district No. 2609, Win-E-Mac, up to 
        $125,000 may be transferred from the former Mentor school 
        district health and safety reserve fund to the Win-E-Mac health 
        and safety reserve fund. 
           Subd. 13.  [BROWERVILLE.] Notwithstanding Minnesota 
        Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
        on June 30, 2000, independent school district No. 787, 
        Browerville, may permanently transfer up to $110,000 from its 
        debt redemption fund to its general fund without making a levy 
        reduction. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 13.  [LEVY RESTORATION; INDEPENDENT SCHOOL DISTRICT NO.
        2859, GLENCOE-SILVER LAKE.] 
           (a) Due to the special circumstances of its consolidation, 
        independent school district No. 2859, Glencoe-Silver Lake, may 
        levy up to one-third of the total of the sum from paragraph (b) 
        in each of the fiscal years 2002, 2003, and 2004 due to 
        under-levy in the period immediately following the district's 
        consolidation. 
           (b) For each of the fiscal years of 1999, 2000, and 2001, 
        the amount of the levy is equal to the sum of: 
           (1) the difference between the maximum amount of levy 
        authorized by law for the fiscal year and the amount of levy 
        certified by independent school district No. 2859, 
        Glencoe-Silver Lake, under Minnesota Statutes 1996 and 1997 
        Supplement, section 124.2725; 
           (2) the difference between the maximum amount of levy 
        authorized by law for the fiscal year and the amount of levy 
        certified by independent school district No. 2859, 
        Glencoe-Silver Lake, under Minnesota Statutes, section 126C.42; 
        and 
           (3) the difference between the maximum amount of levy 
        authorized by law for the fiscal year and the amount of levy 
        certified by independent school district No. 2859, 
        Glencoe-Silver Lake, under Minnesota Statutes, section 126C.22. 
           EFFECTIVE DATE:  This section is effective for taxes 
        payable in 2001. 
           Sec. 14.  [INTERMEDIATE DISTRICTS.] 
           Notwithstanding any termination date in the agreements 
        between the intermediate school districts and the Minnesota 
        state colleges and universities board for the use of space in 
        the technical colleges or any law to the contrary, the 
        agreements shall not expire or terminate until June 30, 2010. 
           Sec. 15.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
        HOMELESS CHILDREN.] For matching grants for education programs 
        serving homeless children under Laws 1997, First Special Session 
        chapter 4, article 2, section 48: 
             $1,000,000     .....     2001
           This is a one-time appropriation. 
           Subd. 3.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
        EXPENSES.] For a grant and administrative expenses to facilitate 
        planning for a cooperative secondary facility under a joint 
        powers agreement for school district Nos. 411, Balaton, 402, 
        Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 
        Tyler: 
               $100,000     .....     2001
           This is a one-time appropriation. 
           Subd. 4.  [BEST PRACTICES SEMINARS.] (a) For best practices 
        graduation rule seminars and other professional development 
        capacity building activities that assure proficiency in teaching 
        and implementation of graduation rule standards: 
             $5,000,000     .....     2001
           (b) The commissioner may make grants to Education Minnesota 
        or other practitioners implementing or developing best 
        practices.  This appropriation is not intended to increase 
        full-time equivalents or complements in the department of 
        children, families, and learning. 
           (c) Of this amount, $500,000 is for the Minnesota 
        children's museum reading program, $1,000,000 is for the 
        Minnesota new teacher project, and $1,000,000 is for an arts via 
        the Internet collaborative project between the Walker art center 
        and the Minneapolis institute of arts. 
           (d) The base budget for this program is $5,000,000 for 
        fiscal years 2002 and 2003.  Of this amount, for fiscal year 
        2002, $1,000,000 is for arts via the Internet collaborative 
        project between the Walker art center and the Minneapolis 
        institute of arts. 
           Subd. 5.  [MAGNET SCHOOL FACILITIES GRANTS.] (a) For 
        one-time magnet school facilities grants: 
             $1,300,000     .....     2001
           (b) Of this amount, $1,200,000 is for the discovery magnet 
        school in independent school district No. 347, Willmar, for 
        one-time facility and other start-up costs to convert a 
        traditional first and second grade school building and program 
        to a magnet school facility serving children from birth through 
        grade 4.  The education program at the magnet facility shall 
        emphasize birth through preschool parent education, all day, 
        every day preschool and kindergarten programming, multiagency 
        collaboration, second-language services for all students, 
        multicultural programming, and parent goal setting. 
           (c) Of this amount, $100,000 is to independent school 
        district No. 696, Ely, to develop environmental curriculum 
        related to the district's proximity to the Boundary Waters Canoe 
        Area and Voyagers National Park. 
           (d) This is a one-time appropriation. 
           Subd. 6.  [GEOGRAPHIC INFORMATION SYSTEMS.] To the director 
        of the office of strategic and long-range planning to enhance 
        the office's use of geographic information systems for 
        educational demographics and other purposes: 
             $156,000     .....     2001   
           This is a one-time appropriation. 
           Subd. 7.  [GRANTS FOR SCHOOLS SERVING STUDENTS WITH 
        CHEMICAL DEPENDENCIES.] For grants to schools serving students 
        with chemical dependencies: 
             $500,000     .....     2001
           The commissioner shall award grants to schools established 
        exclusively to provide teens in recovery from alcohol and drug 
        addiction a four-year high school education while maintaining 
        sobriety.  A sober high school located in Freeborn and a sober 
        high school with campuses located in Edina and Oakdale/Maplewood 
        shall receive up to $5,000 per pupil unit.  This is a one-time 
        appropriation. 
           Subd. 8.  [ASSISTANCE FOR IMMIGRANT FAMILIES.] For grants 
        to organizations that assist immigrants, ages 12 to 24, in 
        becoming literate and acquiring vocational skills: 
               $500,000     .....     2001
           This is a one-time appropriation. 
           Sec. 16.  [REPEALER.] 
           Minnesota Statutes 1999 Supplement, section 124D.1155, 
        subdivision 5, is repealed. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 

                                   ARTICLE 8 
                    KINDERGARTEN THROUGH GRADE 12 EDUCATION 
                                   LIBRARIES 
           Section 1.  Laws 1997, First Special Session chapter 4, 
        article 8, section 4, as amended by Laws 1998, chapter 398, 
        article 7, section 1, and Laws 1999, chapter 241, article 8, 
        section 1, is amended to read: 
           Sec. 4.  [LIBRARY PROJECT.] 
           Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
        contrary and subject to approvals in subdivision 2, a public 
        library may operate as a library project jointly with the school 
        library at Nashwauk-Keewatin high school, located in the city of 
        Nashwauk.  The public library is established to serve persons 
        within the boundaries of independent school district No. 319, 
        except the city of Keewatin. 
           Subd. 2.  [APPROVALS.] Operation of the public library is 
        contingent upon the governing bodies of cities, towns, and 
        unorganized townships within the geographical boundaries of 
        independent school district No. 319, except for the city of 
        Keewatin, entering into a joint powers agreement under Minnesota 
        Statutes 1998, section 471.59, to accomplish the purpose of this 
        section.  The joint powers agreement must provide for continuing 
        the library project if one party or more parties to the 
        agreement withdraws from or fails to enter into the agreement.  
        For the purposes of this subdivision, the Itasca county board is 
        designated as the governing body for the unorganized townships. 
           Subd. 3.  [BOARD; APPOINTMENTS.] The joint powers agreement 
        in subdivision 2 shall provide for a library board of up to 
        seven members as follows:  two members appointed by the school 
        board of independent school district No. 319, one member 
        appointed by each town board located within independent school 
        district No. 319 boundaries that is a signatory to the joint 
        powers agreement, one member appointed by the council of the 
        city of Nashwauk, and one member appointed by the Itasca county 
        board to represent the unorganized towns within the school 
        district territory. 
           Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
        members shall serve for the term of the library project or to a 
        maximum of three consecutive three-year terms.  An appointing 
        authority may remove for misconduct or neglect any member it has 
        appointed to the board and may replace that member by 
        appointment.  Board members shall receive no compensation for 
        their services but may be reimbursed for actual and necessary 
        travel expenses incurred in the discharge of library board 
        duties and activities. 
           Subd. 5.  [FUNDING.] For taxes payable in 1998, 1999, 2000, 
        2001, 2002, and 2003 only, and provided that the joint powers 
        agreement under subdivision 2 has been executed by September 1 
        of the previous calendar year, the library board may levy a tax 
        in an amount up to $25,000 annually on property located within 
        the boundaries of independent school district No. 319, except 
        the city of Keewatin.  The Itasca county auditor shall collect 
        the tax and distribute it to the library board.  The levy shall 
        be assessed against the individual members of the joint powers 
        agreement.  The money may be used for library staff and for the 
        purchase of library materials, including computer software.  The 
        levy must also fund the amount necessary to receive bookmobile 
        services from the Arrowhead regional library system.  For taxes 
        payable in 1998, 1999, 2000, 2001, 2002, and 2003 only, the 
        county may not levy under Minnesota Statutes, section 134.07, 
        for the areas described in this section. 
           Subd. 6.  [BUILDING.] The school district shall provide the 
        physical space and costs associated with operating the library 
        including, but not limited to, heat, light, telephone service, 
        and maintenance. 
           Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
        the library board shall organize by electing one of its number 
        as president and one as secretary, and it may appoint other 
        officers it finds necessary. 
           Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
        and regulations for the library and for the conduct of its 
        business as may be expedient and conformable to law.  It shall 
        have exclusive control of the expenditure of all money collected 
        for it.  The library board shall appoint a qualified library 
        director and other staff, establish the compensation of 
        employees, and remove any of them for cause.  The library board 
        may contract with the school board, the regional library board, 
        or the city in which the library is located to provide 
        personnel, fiscal, or administrative services.  The contract 
        shall state the personnel, fiscal, and administrative services 
        and payments to be provided by each party. 
           Subd. 9.  [CRITERIA.] The library shall meet all 
        requirements in statutes and rules applicable to public 
        libraries and school media centers.  A media supervisor licensed 
        by the board of teaching may be the director of the library.  
        Public parking, restrooms, drinking water, and other necessities 
        shall be easily accessible to library patrons. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 2.  Laws 1999, chapter 241, article 8, section 4, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
        grants to regional public library systems under Minnesota 
        Statutes, section 125B.20, subdivision 3: 
             $1,200,000     .....     2000 
             $1,200,000 $3,606,000    .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Notwithstanding Minnesota Statutes, section 125B.20, 
        subdivision 3, this appropriation may be used for video lines in 
        addition to the uses under Minnesota Statutes, section 125B.20, 
        subdivision 3. 
           The budget base for this program for fiscal years 2002 and 
        2003 is $1,200,000 for each year. 
           Sec. 3.  Laws 1999, chapter 241, article 8, section 4, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
        technology, and staffing for the Minnesota library for the blind 
        and physically handicapped: 
             $212,000     .....     2000 
           This appropriation is available until June 30, 2001. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 

                                   ARTICLE 9 
                    KINDERGARTEN THROUGH GRADE 12 EDUCATION
                                 STATE AGENCIES 
           Section 1.  Laws 1999, chapter 241, article 10, section 6, 
        is amended to read: 
           Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
        CENTER FOR ARTS EDUCATION.] 
           The sums indicated in this section are appropriated from 
        the general fund to the center for arts education for the fiscal 
        years designated: 
             $7,239,000     .....     2000
             $7,400,000     .....     2001
           Of each year's appropriation, $154,000 is to fund artist 
        and arts organization participation in the education residency 
        and education technology projects, $75,000 is for school support 
        for the residency project, $121,000 is for further development 
        of the partners:  arts and school for students (PASS) program, 
        including pilots, and $220,000 $110,000 is to fund the center 
        for arts education base for asset preservation and facility 
        repair.  The guidelines for the education residency project and 
        the pass program shall be developed and defined by the center 
        for arts education in cooperation with the Minnesota arts 
        board.  The Minnesota arts board shall participate in the review 
        and allocation process.  The center for arts education and the 
        Minnesota arts board shall cooperate to fund these projects. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 2.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] 
           (a) The sums indicated in this section are appropriated 
        from the general fund unless otherwise indicated to the 
        department of children, families, and learning for the fiscal 
        years designated. 
             $32,316,000     .....     2000 
             $29,785,000     .....     2001 
           (b) Any balance the first year does not cancel but is 
        available in the second year. 
           (c) $21,000 each year is from the trunk highway fund. 
           (d) $673,000 in 2000 and $678,000 in 2001 is for the board 
        of teaching. 
           (e) Notwithstanding Minnesota Statutes, section 15.53, 
        subdivision 2, the commissioner of children, families, and 
        learning may contract with a school district for a period no 
        longer than five consecutive years to work in the development or 
        implementation of the graduation rule.  The commissioner may 
        contract for services and expertise as necessary.  The contracts 
        are not subject to Minnesota Statutes, section 16B.06. 
           (f) $165,000 in 2000 is for the state board of education.  
        Any functions of the state board of education that are not 
        specifically transferred to another agency are transferred to 
        the department of children, families, and learning under 
        Minnesota Statutes, section 15.039.  For the position that is 
        classified, upon transferring the responsibilities, the current 
        incumbent is appointed to the classified position without exam 
        or probationary period. 
           (g) $2,000,000 in 2000 is for litigation costs and may only 
        be used for those purposes.  This appropriation is available 
        until June 30, 2001.  This is a one-time appropriation. 
           EFFECTIVE DATE:  This section is effective retroactive to 
        July 1, 1999. 
           Sec. 3.  [REPEALER.] 
           Laws 1999, chapter 241, article 10, section 5, is repealed 
        retroactive to July 1, 1999. 
           EFFECTIVE DATE:  This section is effective retroactive to 
        July 1, 1999. 

                                   ARTICLE 10 
                    KINDERGARTEN THROUGH GRADE 12 EDUCATION
                TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS
           Section 1.  Minnesota Statutes 1998, section 120A.22, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
        this section and sections 120A.24, and 120A.26, and 120A.41, 
        "parent" means a parent, guardian, or other person having legal 
        custody of a child.  
           (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 
        means a parent, guardian, or other person having legal custody 
        of a child under age 18.  For an unmarried pupil age 18 or over, 
        "parent" means the pupil unless a guardian or conservator has 
        been appointed, in which case it means the guardian or 
        conservator. 
           (c) For purposes of sections 125A.03 to 125A.24 and 
        125A.65, the school district of residence for an unmarried pupil 
        age 18 or over who is a parent under paragraph (b) and who is 
        placed in a center for care and treatment, shall be the school 
        district in which the pupil's biological or adoptive parent or 
        designated guardian resides. 
           (d) For a married pupil age 18 or over, the school district 
        of residence is the school district in which the married pupil 
        resides. 
           Sec. 2.  Minnesota Statutes 1998, section 123B.02, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 
        school property shall be governed according to section 609.605, 
        subdivision 4. 
           Sec. 3.  Minnesota Statutes 1998, section 123B.85, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION.] The following words and 
        terms in sections 121A.585, 121A.59, 123B.84 to 123B.87, and 
        123B.89 to 123B.90, and 123B.91, shall have the following 
        meanings ascribed to them. 
           Sec. 4.  Minnesota Statutes 1999 Supplement, section 
        124D.128, subdivision 2, is amended to read: 
           Subd. 2.  [COMMISSIONER DESIGNATION.] An area learning 
        center designated by the state must be a site.  To be 
        designated, a district or center must demonstrate to the 
        commissioner that it will: 
           (1) provide a program of instruction that permits pupils to 
        receive instruction throughout the entire year; and 
           (2) maintain a record system that, for purposes of section 
        124.17 126C.05, permits identification of membership 
        attributable to pupils participating in the program.  The record 
        system and identification must ensure that the program will not 
        have the effect of increasing the total number of pupil units 
        attributable to an individual pupil as a result of a learning 
        year program. 
           Sec. 5.  Minnesota Statutes 1998, section 124D.454, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] For the purposes of this 
        section and section 125A.77, the definitions in this subdivision 
        apply. 
           (a) "Base year" for fiscal year 1996 means fiscal year 1995.
        Base year for later fiscal years means the second fiscal year 
        preceding the fiscal year for which aid will be paid. 
           (b) "Basic revenue" has the meaning given it in section 
        126C.10, subdivision 2.  For the purposes of computing basic 
        revenue pursuant to this section, each child with a disability 
        shall be counted as prescribed in section 126C.05, subdivision 1.
           (c) "Average daily membership" has the meaning given it in 
        section 126C.05. 
           (d) "Program growth factor" means 1.00 for fiscal year 1998 
        and later. 
           (e) "Aid percentage factor" means 60 percent for fiscal 
        year 1996, 70 percent for fiscal year 1997, 80 percent for 
        fiscal year 1998, 90 percent for fiscal year 1999, and 100 
        percent for fiscal year 2000 and later. 
           Sec. 6.  Minnesota Statutes 1998, section 124D.454, 
        subdivision 10, is amended to read: 
           Subd. 10.  [EXCLUSION.] A district shall not receive aid 
        pursuant to section 124D.453, or 125A.76, or 125A.77 for 
        salaries, supplies, travel or equipment for which the district 
        receives aid pursuant to this section. 
           Sec. 7.  Minnesota Statutes 1999 Supplement, section 
        125A.023, subdivision 3, is amended to read: 
           Subd. 3.  [DEFINITIONS.] For purposes of this section and 
        section 125A.027, the following terms have the meanings given 
        them: 
           (a) "Health plan" means: 
           (1) a health plan under section 62Q.01, subdivision 3; 
           (2) a county-based purchasing plan under section 256B.692; 
           (3) a self-insured health plan established by a local 
        government under section 471.617; or 
           (4) self-insured health coverage provided by the state to 
        its employees or retirees. 
           (b) For purposes of this section, "health plan company" 
        means an entity that issues a health plan as defined in 
        paragraph (a). 
           (c) "Individual interagency intervention plan" means a 
        standardized written plan describing those programs or services 
        and the accompanying funding sources available to eligible 
        children with disabilities. 
           (d) "Interagency intervention service system" means a 
        system that coordinates services and programs required in state 
        and federal law to meet the needs of eligible children with 
        disabilities ages three to 21, including: 
           (1) services provided under the following programs or 
        initiatives administered by state or local agencies: 
           (i) the maternal and child health program under title V of 
        the Social Security Act, United States Code, title 42, sections 
        701 to 709; 
           (ii) the Individuals with Disabilities Education Act under 
        United States Code, title 20, chapter 33, subchapter II, 
        sections 1411 to 1420; 
           (iii) medical assistance under the Social Security Act, 
        United States Code, title 42, chapter 7, subchapter XIX, section 
        1396, et seq.; 
           (iv) the Developmental Disabilities Assistance and Bill of 
        Rights Act, United States Code, title 42, chapter 75, subchapter 
        II, sections 6021 to 6030, Part B; 
           (v) the Head Start Act, United States Code, title 42, 
        chapter 105, subchapter II, sections 9831 to 9852; 
           (vi) rehabilitation services provided under chapter 268A; 
           (vii) Juvenile Court Act services provided under sections 
        260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 
        260C.451; 
           (viii) the children's mental health collaboratives under 
        section 245.493; 
           (ix) the family service collaboratives under section 
        124D.23; 
           (x) the family community support plan under section 
        245.4881, subdivision 4; 
           (xi) the MinnesotaCare program under chapter 256L; 
           (xii) the community health services grants under chapter 
        145; 
           (xiii) the Community Social Services Act funding under the 
        Social Security Act, United States Code, title 42, sections 1397 
        to 1397f; and 
           (xiv) the community interagency transition interagency 
        committees under section 125A.22; 
           (2) services provided under a health plan in conformity 
        with an individual family service plan or an individual 
        education plan; and 
           (3) additional appropriate services that local agencies and 
        counties provide on an individual need basis upon determining 
        eligibility and receiving a request from the interagency early 
        intervention committee and the child's parent. 
           (e) "Children with disabilities" has the meaning given in 
        section 125A.02. 
           (f) A "standardized written plan" means those individual 
        services or programs available through the interagency 
        intervention service system to an eligible child other than the 
        services or programs described in the child's individual 
        education plan or the child's individual family service plan. 
           Sec. 8.  Minnesota Statutes 1999 Supplement, section 
        125A.023, subdivision 5, is amended to read: 
           Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
        commissioner of children, families, and learning, based on 
        recommendations from the state interagency committee, shall 
        issue a request for proposals by January 1, 1999, for grants to 
        the governing boards of interagency early intervention 
        committees under section 125A.027 or a combination of one or 
        more counties and school districts to establish five voluntary 
        interagency intervention demonstration projects.  One grant 
        shall be used to implement a coordinated service system for all 
        eligible children with disabilities up to age five who received 
        services under sections 125A.26 to 125A.48.  One grant shall be 
        used to implement a coordinated service system for a population 
        of minority children with disabilities from ages 12 to 21, who 
        may have behavioral problems and are in need of transitional 
        services.  Each project must be operational by July 1, 1999.  
        The governing boards of the interagency early intervention 
        committees and the counties and school districts receiving 
        project grants must develop efficient ways to coordinate 
        services and funding for children with disabilities ages three 
        to 21, consistent with the requirements of this section and 
        section 125A.027 and the guidelines developed by the state 
        interagency committee under this section. 
           (b) The state interagency committee shall evaluate the 
        demonstration projects and provide the evaluation results to 
        interagency early intervention committees. 
           Sec. 9.  Minnesota Statutes 1999 Supplement, section 
        125A.08, is amended to read: 
           125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
           (a) As defined in this section, to the extent required by 
        federal law as of July 1, 2000, every district must ensure the 
        following: 
           (1) all students with disabilities are provided the special 
        instruction and services which are appropriate to their needs.  
        Where the individual education plan team has determined 
        appropriate goals and objectives based on the student's needs, 
        including the extent to which the student can be included in the 
        least restrictive environment, and where there are essentially 
        equivalent and effective instruction, related services, or 
        assistive technology devices available to meet the student's 
        needs, cost to the district may be among the factors considered 
        by the team in choosing how to provide the appropriate services, 
        instruction, or devices that are to be made part of the 
        student's individual education plan.  The individual education 
        plan team shall consider and may authorize services covered by 
        medical assistance according to section 256B.0625, subdivision 
        26.  The student's needs and the special education instruction 
        and services to be provided must be agreed upon through the 
        development of an individual education plan.  The plan must 
        address the student's need to develop skills to live and work as 
        independently as possible within the community.  By grade 9 or 
        age 14, the plan must address the student's needs for transition 
        from secondary services to post-secondary education and 
        training, employment, community participation, recreation, and 
        leisure and home living.  In developing the plan, districts must 
        inform parents of the full range of transitional goals and 
        related services that should be considered.  The plan must 
        include a statement of the needed transition services, including 
        a statement of the interagency responsibilities or linkages or 
        both before secondary services are concluded; 
           (2) children with a disability under age five and their 
        families are provided special instruction and services 
        appropriate to the child's level of functioning and needs; 
           (3) children with a disability and their parents or 
        guardians are guaranteed procedural safeguards and the right to 
        participate in decisions involving identification, assessment 
        including assistive technology assessment, and educational 
        placement of children with a disability; 
           (4) eligibility and needs of children with a disability are 
        determined by an initial assessment or reassessment, which may 
        be completed using existing data under United States Code, title 
        20, section 33, et seq.; 
           (5) to the maximum extent appropriate, children with a 
        disability, including those in public or private institutions or 
        other care facilities, are educated with children who are not 
        disabled, and that special classes, separate schooling, or other 
        removal of children with a disability from the regular 
        educational environment occurs only when and to the extent that 
        the nature or severity of the disability is such that education 
        in regular classes with the use of supplementary services cannot 
        be achieved satisfactorily; 
           (6) in accordance with recognized professional standards, 
        testing and evaluation materials, and procedures used for the 
        purposes of classification and placement of children with a 
        disability are selected and administered so as not to be 
        racially or culturally discriminatory; and 
           (7) the rights of the child are protected when the parents 
        or guardians are not known or not available, or the child is a 
        ward of the state. 
           (b) For paraprofessionals employed to work in programs for 
        students with disabilities, the school board in each district 
        shall ensure that: 
           (1) before or immediately upon employment, each 
        paraprofessional develops sufficient knowledge and skills in 
        emergency procedures, building orientation, roles and 
        responsibilities, confidentiality, vulnerability, and 
        reportability, among other things, to begin meeting the needs of 
        the students with whom the paraprofessional works; 
           (2) annual training opportunities are available to enable 
        the paraprofessional to continue to further develop the 
        knowledge and skills that are specific to the students with whom 
        the paraprofessional works, including understanding 
        disabilities, following lesson plans, and implementing follow-up 
        instructional procedures and activities; and 
           (3) a districtwide process obligates each paraprofessional 
        to work under the ongoing direction of a licensed teacher and, 
        where appropriate and possible, the supervision of a school 
        nurse. 
           Sec. 10.  Minnesota Statutes 1998, section 125A.76, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
        INTERMEDIATES.] For the purposes of this section and section 
        125A.77, a special education cooperative or an intermediate 
        district must allocate its approved expenditures for special 
        education programs among participating school districts. 
           Sec. 11.  Minnesota Statutes 1999 Supplement, section 
        125A.79, subdivision 8, is amended to read: 
           Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
        residents of the state, receive services under section 125A.76, 
        subdivisions 1 and 2, and are placed in a care and treatment 
        facility by court action in a state that does not have a 
        reciprocity agreement with the commissioner under section 
        125A.115 125A.155, the resident school district shall submit the 
        balance of the tuition bills, minus the amount of the basic 
        revenue, as defined by section 126C.10, subdivision 2, of the 
        district for the child and the special education aid, and any 
        other aid earned on behalf of the child. 
           Sec. 12.  Minnesota Statutes 1999 Supplement, section 
        125A.80, is amended to read: 
           125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 
        OUT-OF-HOME PLACED STUDENTS.] 
           The commissioner, in cooperation with the commissioners of 
        human services and corrections and with input from appropriate 
        billing system users, shall develop and implement a uniform 
        billing system for school districts and other agencies, 
        including private providers, who provide the educational 
        services for students who are placed out of the home.  The 
        uniform billing system must: 
           (1) allow for the proper and timely billing to districts by 
        service providers with a minimum amount of district 
        administration; 
           (2) allow districts to bill the state for certain types of 
        special education and regular education services as provided by 
        law; 
           (3) provide flexibility for the types of services that are 
        provided for children placed out of the home, including day 
        treatment services; 
           (4) allow the commissioner to track the type, cost, and 
        quality of services provided for children placed out of the 
        home; 
           (5) conform existing special education and proposed regular 
        education billing procedures; 
           (6) provide a uniform reporting standard of per diem rates; 
           (7) determine allowable expenses and maximum reimbursement 
        rates for the state reimbursement of care and treatment services 
        according to section 124D.701; and 
           (8) provide a process for the district to appeal to the 
        commissioner tuition bills submitted to districts and to the 
        state. 
           Sec. 13.  Minnesota Statutes 1999 Supplement, section 
        125B.21, subdivision 3, is amended to read: 
           Subd. 3.  [CRITERIA.] In addition to responsibilities of 
        the council under Laws 1993, First Special Session chapter 2, as 
        amended, the telecommunications council shall evaluate grant 
        applications under section 124C.74 125B.20 and applications from 
        district organizations using the following criteria: 
           (1) evidence of cooperative arrangements with other 
        post-secondary institutions, school districts, and community and 
        regional libraries in the geographic region; 
           (2) plans for shared classes and programs; 
           (3) avoidance of network duplication; 
           (4) evidence of efficiencies to be achieved in delivery of 
        instruction due to use of telecommunications; 
           (5) a plan for development of a list of all courses 
        available in the region for delivery at a distance; 
           (6) a plan for coordinating and scheduling courses; and 
           (7) a plan for evaluation of costs, access, and outcomes. 
           Sec. 14.  Minnesota Statutes 1998, section 126C.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
        public employee licensed by the board of teaching whose duties 
        are full-time instruction, excluding a teacher for whom 
        categorical aids are received pursuant to sections section 
        125A.76 and 125A.77.  Except as provided in section 122A.68, 
        subdivision 6, instructor does not include supervisory and 
        support personnel, except school social workers as defined in 
        section 122A.15.  An instructor whose duties are less than 
        full-time instruction must be included as an equivalent only for 
        the number of hours of instruction in grades kindergarten 
        through 6. 
           Sec. 15.  Minnesota Statutes 1998, section 127A.05, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
        adopt new rules and amend them or amend any existing rules only 
        under specific authority and consistent with the requirements of 
        chapter 14.  The commissioner may repeal any existing 
        rules adopted by the commissioner.  Notwithstanding the 
        provisions of section 14.05, subdivision 4, the commissioner may 
        grant a variance to rules adopted by the commissioner upon 
        application by a school district for purposes of implementing 
        experimental programs in learning or school management.  This 
        subdivision shall not prohibit the commissioner from making 
        technical changes or corrections to adopted rules adopted by the 
        commissioner. 
           Sec. 16.  Minnesota Statutes 1998, section 127A.41, 
        subdivision 8, is amended to read: 
           Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
        appropriation from the general fund to the department for any 
        education aid or grant authorized in this chapter and chapters 
        122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 
        under sections 124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 
        124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 
        exceeds the amount required, the commissioner may transfer the 
        excess to any education aid or grant appropriation that is 
        insufficient.  However, section 126C.20 applies to a deficiency 
        in the direct appropriation for general education aid.  Excess 
        appropriations must be allocated proportionately among aids or 
        grants that have insufficient appropriations.  The commissioner 
        of finance shall make the necessary transfers among 
        appropriations according to the determinations of the 
        commissioner.  If the amount of the direct appropriation for the 
        aid or grant plus the amount transferred according to this 
        subdivision is insufficient, the commissioner shall prorate the 
        available amount among eligible districts.  The state is not 
        obligated for any additional amounts.  
           Sec. 17.  Minnesota Statutes 1998, section 127A.41, 
        subdivision 9, is amended to read: 
           Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
        PROGRAMS.] If a direct appropriation from the general fund to 
        the department of children, families, and learning for an 
        education aid or grant authorized under section 
        124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 
        124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 
        required, the commissioner of children, families, and learning 
        may transfer the excess to any education aid or grant 
        appropriation that is insufficiently funded under these sections.
        Excess appropriations shall be allocated proportionately among 
        aids or grants that have insufficient appropriations.  The 
        commissioner of finance shall make the necessary transfers among 
        appropriations according to the determinations of the 
        commissioner of children, families, and learning.  If the amount 
        of the direct appropriation for the aid or grant plus the amount 
        transferred according to this subdivision is insufficient, the 
        commissioner shall prorate the available amount among eligible 
        districts.  The state is not obligated for any additional 
        amounts. 
           Sec. 18.  Minnesota Statutes 1999 Supplement, section 
        181A.04, subdivision 6, is amended to read: 
           Subd. 6.  A high school student under the age of 18 must 
        not be permitted to work after 11:00 p.m. on an evening before a 
        school day or before 5:00 a.m. on a school day, except as 
        permitted by section 181A.07, subdivisions 1, 2, 3, and 4.  If a 
        high school student under the age of 18 has supplied the 
        employer with a note signed by the parent or guardian of the 
        student, the student may be permitted to work until 11:30 p.m. 
        on the evening before a school day and beginning at 4:30 a.m. on 
        a school day. 
           For the purpose of this subdivision, a high school student 
        does not include a student enrolled in an alternative education 
        program approved by the commissioner of children, families, and 
        learning or an area learning center, including area learning 
        centers under sections 123A.05 to 123A.08 or according to 
        section 122A.164 122A.163. 
           Sec. 19.  Laws 1999, chapter 241, article 1, section 69, is 
        amended to read: 
           Sec. 69.  [REPEALER.] 
           (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 
        subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 
           (b) Minnesota Statutes 1998, section 120B.05, is repealed 
        effective for revenue for fiscal year 2000. 
           (c) Minnesota Statutes 1998, section 124D.65, subdivisions 
        1, 2, and 3, are repealed effective for revenue for fiscal year 
        2001. 
           (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
        subdivision 4; and 126C.06, are repealed effective the day 
        following final enactment. 
           This appropriation is available until June 30, 2001. 
           Sec. 20.  Laws 1999, chapter 241, article 9, section 49, is 
        amended to read: 
           Sec. 49.  [TRANSITION.] 
           Notwithstanding Minnesota Statutes, section 15.0597, the 
        terms of persons who are members appointed by the governor 
        before the effective date of section 8 37, shall have their term 
        end on July 31 of the year following the last year of their 
        appointment. 
           Sec. 21.  [REVISOR INSTRUCTION.] 
           In the next and subsequent editions of Minnesota Statutes, 
        the revisor shall renumber section 123B.02, subdivision 12, as 
        120A.22, subdivision 1a.  The revisor shall correct all 
        cross-references to be consistent with the renumbering. 
           Sec. 22.  [REPEALER.] 
           Laws 1999, chapter 241, article 9, sections 35 and 36, and 
        chapter 245, article 4, section 3, are repealed. 

                                   ARTICLE 11 
                                HIGHER EDUCATION 
        Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
           The sums in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or other named fund, to the 
        agencies and for the purposes specified in this article.  The 
        listing of an amount under the figure "2000" or "2001" in this 
        article indicates that the amount is appropriated to be 
        available for the fiscal year ending June 30, 2000, or June 30, 
        2001, respectively.  "The first year" is fiscal year 2000.  "The 
        second year" is fiscal year 2001.  "The biennium" is fiscal 
        years 2000 and 2001. 
                                SUMMARY BY FUND
                                  2000          2001           TOTAL
        General            $    5,800,000 $    8,200,000 $   14,000,000
                         SUMMARY BY AGENCY - ALL FUNDS
                                  2000          2001           TOTAL
        Board of Trustees of the Minnesota
        State Colleges and Universities
                                5,800,000      7,380,000     13,180,000
        Board of Regents of the University
        of Minnesota
                                  -0-            820,000        820,000
                                                  APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2000         2001 
        Sec. 2.  BOARD OF TRUSTEES OF THE
        MINNESOTA STATE COLLEGES AND UNIVERSITIES
        Subdivision 1.  Total
        Appropriation                          5,800,000      7,380,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        Subd. 2.  Deficiency                                
        Appropriations                                                 
             5,800,000      5,800,000
        This is a deficiency appropriation for 
        increased enrollments.  This 
        appropriation is in addition to the 
        appropriation in Laws 1999, chapter 
        214, article 1, section 3, subdivision 
        1.  This is a one-time appropriation.  
        Subd. 3.  Farm Business     
        Management                                                     
               -0-            250,000
        This appropriation is to provide 
        educational and management services to 
        a greater number of farmers facing 
        financial hardship in the farm wrap and 
        farm help network service areas. 
        Subd. 4.  Urban Teacher     
        Preparation                                                    
               -0-          1,250,000
        This appropriation is for the 
        development and implementation of the 
        secondary and early childhood education 
        components of the program established 
        by this subdivision. 
        (a) The board shall offer a program of 
        teacher preparation leading to 
        licensure, involving Metropolitan State 
        University, Inver Hills Community 
        College, and Minneapolis Community and 
        Technical College.  The institutions 
        involved shall enter into an agreement 
        whereby Inver Hills Community College 
        and Minneapolis Community and Technical 
        College shall provide the first two 
        years of the program, and Metropolitan 
        State University shall provide the 
        final two years of the program.  In 
        fall semester 2000, Minneapolis 
        Community and Technical College and 
        Inver Hills Community College shall 
        offer a preeducation program.  After 
        development of the program in fiscal 
        year 2001, Metropolitan State 
        University shall begin its licensure 
        program in fall semester 2001.  The 
        program shall focus on preparing 
        teachers to meet the specific needs of 
        urban and inner-ring suburban schools 
        and shall emphasize significant direct 
        classroom teaching experience and 
        mentoring throughout each student's 
        preparation.  The program may also 
        focus on the professional development 
        of pretenure teachers.  Metropolitan 
        State University, Inver Hills Community 
        College, and Minneapolis Community and 
        Technical College are encouraged to 
        enter into partnerships with urban and 
        inner-ring suburban schools to provide 
        for significant involvement of 
        elementary and secondary teachers in 
        the mentoring of students enrolled in 
        the program.  
        (b) The legislature expects the program 
        to enroll at least 50 percent students 
        of color. 
        (c) By February 15, 2002, and annually 
        thereafter, the board of trustees shall 
        provide a progress report to the chairs 
        of the higher education finance 
        divisions of the legislature regarding 
        the development of the teacher 
        preparation program.  The annual report 
        shall include, to the extent 
        practicable at the time of preparation, 
        information comparing program outcomes 
        with the target expectations set forth 
        in paragraph (b).  The report shall 
        include feedback from enrolled students 
        concerning how the program meets their 
        needs, as well as from cooperating 
        elementary and secondary schools on how 
        the students are performing on site. 
        Subd. 5.  Cook County Higher
        Education Project                                              
               -0-             80,000
        This appropriation is for the Cook 
        county higher education project for 
        delivery of educational services 
        electronically due to the lack of 
        access to higher education services in 
        the area.  The board shall submit a 
        report in the biennial budget document 
        on uses of the appropriation.  The 
        report shall include information 
        regarding the number of students 
        served, credit hours delivered, other 
        services provided, strategic direction 
        of the project, expected future funding 
        sources, and collaborations with other 
        organizations. 
        Subd. 6.  Allocation For
        Excess Health Care Costs
        The board must provide relief to 
        campuses who have experienced health 
        care cost increases of greater than 80 
        percent above the systemwide average 
        increase since 1996. 
        Sec. 3.  BOARD OF REGENTS OF THE 
        UNIVERSITY OF MINNESOTA 
        Subdivision 1.  Total
        Appropriation                                            820,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        Subd. 2.  Duluth; Child Care
               -0-            220,000
        This is a one-time appropriation for 
        start-up costs for child care in the 
        newly renovated Kirby Center. 
        Subd. 3.  Special           
        Appropriation                                                  
        Agricultural Rapid Response Fund
               -0-            600,000
        This appropriation is for the rapid 
        agricultural response fund.  The 
        university shall report on the uses of 
        this appropriation in the biennial 
        budget document.  This appropriation is 
        added to the appropriation in Laws 
        1999, chapter 214, article 1, section 
        4, subdivision 5, paragraph (a). 
           Sec. 4.  Minnesota Statutes 1998, section 136A.125, is 
        amended by adding a subdivision to read: 
           Subd. 4c.  [UNEXPENDED BALANCE.] Any unexpended 
        appropriation in the child care grant program in the first year 
        of a biennium shall be used to augment the maximum award in 
        subdivision 4 in the second year of the biennium. 
           Sec. 5.  Laws 1999, chapter 214, article 1, section 4, 
        subdivision 2, is amended to read: 
        Subd. 2.  Operations and
        Maintenance                          513,279,000    533,870,000
        Estimated Expenditures 
        and Appropriations 
        The legislature estimates that 
        instructional expenditures will be 
        $461,521,000 in the first year and 
        $484,679,000 in the second year. 
        The legislature estimates that 
        noninstructional expenditures will be 
        $202,367,000 in the first year and 
        $201,717,000 in the second year.  
        By January 30, 2000, the University 
        shall submit to the governor and the 
        legislature a master academic plan for 
        the Rochester region that clearly 
        defines the academic needs of the 
        region, short and long-term plans to 
        address those needs including the 
        designation of responsibility among the 
        partner institutions, short and 
        long-term demographic and enrollment 
        projections, physical plant capacity 
        and needs, and a delineation of 
        missions among the partner institutions 
        to avoid competition and duplication. 
        Notwithstanding Minnesota Statutes 
        1998, section 137.022, subdivision 4, 
        in fiscal year 2001 the first $200,000 
        of permanent university fund income 
        from royalties for mining under state 
        mineral leases designated for the 
        natural resources research institute 
        shall be allocated by the board of 
        regents to the department of landscape 
        architecture to develop a long-range 
        plan for the reclamation of taconite 
        mining lands.  The board shall allocate 
        the money only if an equal or greater 
        amount of matching money from nonstate 
        sources has been pledged to support the 
        project by June 30, 2000 in increments 
        of $50,000 as each $50,000 is matched 
        by nonstate sources, provided that no 
        money may be allocated after June 30, 
        2001. 
        The University of Minnesota academic 
        health center, after consultation with 
        the health care community and medical 
        education and research costs advisory 
        committee, shall report by January 15, 
        2000, to the higher education finance 
        committees on the strategic direction 
        of its health professional programs.  
        The plans shall include a programmatic 
        and financial model for health 
        professional education that will meet 
        the state's future workforce needs, 
        maintain the integrity of the education 
        process, provide an appropriate level 
        of ongoing financial support, and 
        provide a framework for the health 
        community and academic health center to 
        work together in meeting the health 
        needs of the state.  The academic 
        health center is requested to provide 
        the report also to the commissioner of 
        health and the legislative commission 
        on health care access. 
           Sec. 6.  [FACILITY USE ANALYSIS OF MINNESOTA STATE COLLEGES 
        AND UNIVERSITIES AND INTERMEDIATE SCHOOL DISTRICTS.] 
           The intermediate school districts and the board of trustees 
        of the Minnesota state colleges and universities shall contract 
        with the management analysis division of the department of 
        administration for an analysis and report to the legislature on 
        the educational space needs of Century community and technical 
        college and intermediate school district No. 916, Dakota county 
        technical college and intermediate school district No. 917, and 
        Hennepin technical college and intermediate school district No. 
        287.  The board of trustees will pay 50 percent of the cost of 
        the contract and the intermediate school districts will pay the 
        remainder.  The report shall:  (a) include an analysis of 
        current and future educational space needs in buildings shared 
        by the intermediate school districts and Minnesota state 
        colleges and universities; (b) include information on the amount 
        paid from property taxes to construct the space used by 
        intermediate school districts in each facility under Minnesota 
        state colleges and universities control; (c) analyze areas where 
        the missions and space requirements are compatible and long-term 
        sharing of space will efficiently serve students; (d) include 
        recommendations, if any, for amendments to the current joint 
        powers agreements; and (e) recommend facility arrangements and 
        financing alternatives for space needed to relocate programs or 
        services provided by intermediate school districts.  The 
        alternative financing recommendations may include, but are not 
        limited to, state appropriations, state capital bonding, local 
        bonding, or local levies to provide instructional and 
        administrative space.  The report shall be delivered to the 
        kindergarten through grade 12 and higher education committees of 
        the legislature prior to February 1, 2001. 
           Notwithstanding any termination date in the agreements 
        between the intermediate school districts and the Minnesota 
        state colleges and universities board for the use of space in 
        the technical colleges or any law to the contrary, the 
        agreements shall not expire or terminate until June 30, 2010. 
           Sec. 7.  [MANAGEMENT ANALYSIS OF MINNESOTA STATE COLLEGES 
        AND UNIVERSITIES.] 
           The management analysis division of the department of 
        administration must review board-level administration and 
        management of the Minnesota state colleges and universities and 
        make recommendations to the board of trustees and the 
        legislature by February 1, 2001, as to: 
           (1) the extent that the board should delegate its control 
        and authority over internal system operations, including, but 
        not limited to, contracting, employment responsibilities, and 
        hiring and supervisory authority with respect to campus 
        presidents; 
           (2) the necessity for an independent staff for the board of 
        trustees and if necessary, the appropriate role for such 
        independent staff; 
           (3) other issues deemed important to the improvement of 
        board-level management; and 
           (4) practices that will improve reporting by the system to 
        the board. 
           The board of trustees must contract with the management 
        analysis division of the department of administration for the 
        study under this section. 
           Sec. 8.  [REPEALER.] 
           Minnesota Rules, parts 4830.9005; 4830.9010; 4830.9015; 
        4830.9020; and 4830.9030, are repealed. 
           Sec. 9.  [EFFECTIVE DATE.] 
           Sections 1 to 8 are effective the day following final 
        enactment. 
           Presented to the governor May 11, 2000 
           Signed by the governor May 15, 2000, 6:55 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569