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

                            CHAPTER 374-H.F.No. 3270 
                  An act relating to the financing of state government; 
                  appropriating money and reducing appropriations for 
                  kindergarten through grade 12, early childhood and 
                  family education, higher education, environment, state 
                  government, and health and human services; canceling 
                  balances and appropriations and transferring balances 
                  to the general fund in order to avert a deficit; 
                  converting certain capital project financing from 
                  general fund cash to general obligation bonding; 
                  modifying education aids; transferring programs; 
                  changing certain fees; modifying certain programs; 
                  amending Minnesota Statutes 2000, sections 13.05, 
                  subdivision 4; 16A.28, subdivision 6; 16B.27, by 
                  adding a subdivision; 79.251, subdivision 1; 115A.557, 
                  subdivision 1; 115A.96, subdivisions 2, 3, 4, 5, 7, as 
                  added; 124D.69, by adding a subdivision; 125A.65, 
                  subdivisions 1, 3, 8, 9; 127A.45, subdivisions 2, 3, 
                  10, 13, 14, 16, by adding a subdivision; 136A.121, 
                  subdivision 7; 144.395, subdivision 1, as amended; 
                  241.44, by adding a subdivision; 256.9657, subdivision 
                  1, as amended; 256B.431, subdivisions 23, as amended, 
                  37, as added; 256E.06, subdivision 3; 256J.425, by 
                  adding a subdivision; 256L.01, subdivision 4; 
                  Minnesota Statutes 2001 Supplement, sections 62J.694, 
                  subdivision 1; 123B.54, as amended; 124D.11, 
                  subdivision 9; 126C.10, subdivision 13; 126C.17, 
                  subdivision 7; 127A.45, subdivision 14a; 241.021, 
                  subdivision 4; 256B.5013, subdivision 1, as amended; 
                  256J.425, subdivisions 3, 4, 5; Laws 1997, chapter 
                  202, article 2, section 61, as amended; Laws 2001, 
                  First Special Session chapter 3, article 1, section 
                  17, subdivision 2; Laws 2001, First Special Session 
                  chapter 3, article 1, section 17, subdivision 3, as 
                  amended; Laws 2001, First Special Session chapter 3, 
                  article 1, section 17, subdivision 4; Laws 2001, First 
                  Special Session chapter 3, article 1, section 17, 
                  subdivision 7, as amended; Laws 2001, First Special 
                  Session chapter 3, article 1, section 17, subdivision 
                  9, as amended; Laws 2001, First Special Session 
                  chapter 3, article 1, section 19, subdivision 3, as 
                  amended; Laws 2001, First Special Session chapter 3, 
                  article 1, section 19, subdivision 5, as amended; Laws 
                  2001, First Special Session chapter 3, article 2, 
                  section 15, subdivision 3, as amended; Laws 2001, 
                  First Special Session chapter 3, article 2, section 
                  15, subdivision 4; Laws 2001, First Special Session 
                  chapter 3, article 2, section 15, subdivision 6; Laws 
                  2001, First Special Session chapter 3, article 3, 
                  section 9, subdivision 5; Laws 2001 First Special 
                  Session chapter 3, article 3, section 9, subdivision 
                  7; Laws 2001, First Special Session chapter 3, article 
                  4, section 5, subdivision 2, as amended; Laws 2001, 
                  First Special Session chapter 3, article 4, section 5, 
                  subdivision 3; Laws 2001, First Special Session 
                  chapter 5, article 2, section 29, subdivision 2, as 
                  amended; Laws 2001, First Special Session chapter 6, 
                  article 1, section 54, subdivision 2, as amended; Laws 
                  2001, First Special Session chapter 6, article 1, 
                  section 54, subdivision 4, as amended; Laws 2001, 
                  First Special Session chapter 6, article 1, section 
                  54, subdivision 5, as amended; Laws 2001, First 
                  Special Session chapter 6, article 1, section 54, 
                  subdivision 6, as amended; Laws 2001, First Special 
                  Session chapter 6, article 1, section 54, subdivision 
                  7, as amended; Laws 2001, First Special Session 
                  chapter 6, article 2, section 77, subdivision 4, as 
                  amended; Laws 2001, First Special Session chapter 6, 
                  article 2, section 77, subdivision 5, as amended; Laws 
                  2001, First Special Session chapter 6, article 2, 
                  section 77, subdivision 6; Laws 2001, First Special 
                  Session chapter 6, article 2, section 77, subdivision 
                  8, as amended; Laws 2001, First Special Session 
                  chapter 6, article 2, section 77, subdivision 11, as 
                  amended; Laws 2001, First Special Session chapter 6, 
                  article 2, section 77, subdivision 15, as amended; 
                  Laws 2001, First Special Session chapter 6, article 2, 
                  section 77, subdivision 18, as amended; Laws 2001, 
                  First Special Session chapter 6, article 3, section 
                  21, subdivision 2, as amended; Laws 2001, First 
                  Special Session chapter 6, article 3, section 21, 
                  subdivision 3, as amended; Laws 2001, First Special 
                  Session chapter 6, article 3, section 21, subdivision 
                  4, as amended; Laws 2001, First Special Session 
                  chapter 6, article 3, section 21, subdivision 5, as 
                  amended; Laws 2001, First Special Session chapter 6, 
                  article 3, section 21, subdivision 7, as amended; Laws 
                  2001, First Special Session chapter 6, article 4, 
                  section 27, subdivision 2, as amended; Laws 2001, 
                  First Special Session chapter 6, article 4, section 
                  27, subdivision 3, as amended; Laws 2001, First 
                  Special Session chapter 6, article 4, section 27, 
                  subdivision 5, as amended; Laws 2001, First Special 
                  Session chapter 6, article 5, section 13, subdivision 
                  3; Laws 2001, First Special Session chapter 6, article 
                  7, section 14, as amended; Laws 2001, First Special 
                  Session chapter 9, article 2, section 74; Laws 2002, 
                  chapter 220, article 2, section 14, subdivision 1; 
                  Laws 2002, chapter 220, article 8, section 15; Laws 
                  2002, chapter 220, article 10, section 4; Laws 2002, 
                  chapter 220, article 10, section 36; Laws 2002, 
                  chapter 220, article 10, section 37, as amended; Laws 
                  2002 chapter 220, article 10, section 38, subdivision 
                  2; Laws 2002, chapter 220, article 10, section 38, 
                  subdivision 3; Laws 2002, chapter 220, article 10, 
                  section 39; Laws 2002, chapter 220, article 13, 
                  section 7; Laws 2002, chapter 220, article 13, section 
                  9, subdivision 1; Laws 2002, chapter 220, article 13, 
                  section 9, subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1
                          EDUCATION AID PAYMENT DELAY
           Section 1.  Minnesota Statutes 2001 Supplement, section 
        124D.11, subdivision 9, is amended to read: 
           Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
        Notwithstanding section 127A.45, subdivision 3, aid payments for 
        the current fiscal year to a charter school not in its first 
        year of operation shall be of an equal amount on each of the 23 
        payment dates.  A charter school in its first year of operation 
        shall receive, on its first payment date, ten percent of its 
        cumulative amount guaranteed for the year and 22 payments of an 
        equal amount thereafter the sum of which shall be 90 percent of 
        the cumulative amount guaranteed. 
           (b) Notwithstanding paragraph (a), for a charter school 
        ceasing operation prior to the end of a school year, 90 83 
        percent of the amount due for the school year may be paid to the 
        school after audit of prior fiscal year and current fiscal year 
        pupil counts. 
           (c) Notwithstanding section 127A.45, subdivision 3, and 
        paragraph (a), 90 83 percent of the start-up cost aid under 
        subdivision 8 shall be paid within 45 days after the first day 
        of student attendance for that school year. 
           (d) In order to receive state aid payments under this 
        subdivision, a charter school in its first three years of 
        operation must submit a quarterly report to the department of 
        children, families, and learning.  The report must list each 
        student by grade, show the student's start and end dates, if 
        any, with the charter school, and for any student participating 
        in a learning year program, the report must list the hours and 
        times of learning year activities.  The report must be submitted 
        not more than two weeks after the end of the calendar quarter to 
        the department.  The department must develop a Web-based 
        reporting form for charter schools to use when submitting 
        enrollment reports.  A charter school in its fourth and 
        subsequent year of operation must submit enrollment information 
        to the department in the form and manner requested by the 
        department. 
           Sec. 2.  Minnesota Statutes 2000, section 127A.45, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] (a) The term "other district 
        receipts" means payments by county treasurers pursuant to 
        section 276.10, apportionments from the school endowment fund 
        pursuant to section 127A.33, apportionments by the county 
        auditor pursuant to section 127A.34, subdivision 2, and payments 
        to school districts by the commissioner of revenue pursuant to 
        chapter 298.  
           (b) The term "cumulative amount guaranteed" means the 
        product of 
           (1) the cumulative disbursement percentage shown in 
        subdivision 3; times 
           (2) the sum of 
           (i) 90 83 percent of the estimated aid and credit 
        entitlements paid according to subdivision 13; plus 
           (ii) 100 percent of the entitlements paid according to 
        subdivisions 11 and 12; plus 
           (iii) the other district receipts; plus 
           (iv) the final adjustment payment according to subdivision 
        9.  
           (c) The term "payment date" means the date on which state 
        payments to districts are made by the electronic funds transfer 
        method.  If a payment date falls on a Saturday, a Sunday, or a 
        weekday which is a legal holiday, the payment shall be made on 
        the immediately preceding business day.  The commissioner may 
        make payments on dates other than those listed in subdivision 3, 
        but only for portions of payments from any preceding payment 
        dates which could not be processed by the electronic funds 
        transfer method due to documented extenuating circumstances.  
           Sec. 3.  Minnesota Statutes 2000, section 127A.45, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] (a) For fiscal 
        year 2003, the commissioner shall pay to a district on the dates 
        indicated an amount computed as follows:  the cumulative amount 
        guaranteed minus the sum of (a) the district's other district 
        receipts through the current payment, and (b) the aid and credit 
        payments through the immediately preceding payment.  For 
        purposes of this computation, the payment dates and the 
        cumulative disbursement percentages are as follows:  
                                 Payment date               Percentage 
        Payment 1    July 15:                                    4.6 5.1
        Payment 2    July 30:                                    6.9 7.7
        Payment 3    August 15:  the greater of (a) the final        
                     adjustment for the prior fiscal year for
                     the state paid property tax credits
                     established in section 273.1392, or
                     (b) the amount needed to provide 15.2 percent 16.9
        Payment 4    August 30:                                 17.4 19.3
        Payment 5    September 15:                              19.6 21.8
        Payment 6    September 30:                              21.8 24.3
        Payment 7    October 15:  the greater of (a) one-half of
                     the final adjustment for the prior fiscal year
                     for all aid entitlements except state paid
                     property tax credits, or (b) the amount needed to
                     provide 24 percent 26.3
        Payment 8    October 30:  the greater of (a) one-half of the
                     final adjustment for the prior fiscal year for all
                     aid entitlements except state paid property
                     tax credits, or (b) the amount needed
                     to provide 27.3 percent 28.3
        Payment 9    November 15:                               33.3 32.8
        Payment 10   November 30:                               39.3 39.1
        Payment 11   December 15:                               42.3 42.4
        Payment 12   December 30:                               45.3 45.6
        Payment 13   January 15:                                49.5 50.5
        Payment 14   January 30:                                53.8 55.0
        Payment 15   February 15:                               58.3 60.2
        Payment 16   February 28:                               62.8 65.0
        Payment 17   March 15:                                  67.6 69.7
        Payment 18   March 30:                                  72.3 74.3
        Payment 19   April 15:                                  75.3 78.3
        Payment 20   April 30:                                  81.3 84.2
        Payment 21   May 15:                                    84.3 88.7
        Payment 22   May 30:                                    92.3 93.3
        Payment 23   June 20:                                       100.0
           (b) In addition to the amounts paid under paragraph (a), 
        for fiscal year 2003, the commissioner shall pay to a district 
        on the dates indicated an amount computed as follows: 
        Payment 3    August 15:  the final adjustment for the
                     prior fiscal year for the state paid
                     property tax credits established in
                     section 273.1392
        Payment 7    October 15:  one-half of the final adjustment
                     for the prior fiscal year for all aid
                     entitlements except state paid property
                     tax credits 
        Payment 8    October 30:  one-half of the final adjustment
                     for the prior fiscal year for all aid
                     entitlements except state paid property
                     tax credits 
           (c) For fiscal year 2004 and later, the commissioner shall 
        pay to a district on the dates indicated an amount computed as 
        follows:  the cumulative amount guaranteed minus the sum of (a) 
        the district's other district receipts through the current 
        payment, and (b) the aid and credit payments through the 
        immediately preceding payment.  For purposes of this 
        computation, the payment dates and the cumulative disbursement 
        percentages are as follows: 
                   Payment date                      Percentage 
        Payment 1    July 15:                                    5.1
        Payment 2    July 30:                                    7.7
        Payment 3    August 15:                                 16.9
        Payment 4    August 30:                                 19.3
        Payment 5    September 15:                              21.8
        Payment 6    September 30:                              24.3
        Payment 7    October 15:                                26.3
        Payment 8    October 30:                                28.3
        Payment 9    November 15:                               30.3
        Payment 10   November 30:                               35.0
        Payment 11   December 15:                               40.0
        Payment 12   December 30:                               43.0
        Payment 13   January 15:                                48.0
        Payment 14   January 30:                                52.0
        Payment 15   February 15:                               56.0
        Payment 16   February 28:                               61.0
        Payment 17   March 15:                                  66.0
        Payment 18   March 30:                                  72.0
        Payment 19   April 15:                                  76.0
        Payment 20   April 30:                                  83.0
        Payment 21   May 15:                                    88.0
        Payment 22   May 30:                                    95.0
        Payment 23   June 20:                                  100.0
           (d) In addition to the amounts paid under paragraph (c), 
        for fiscal year 2004 and later, the commissioner shall pay to a 
        district on the dates indicated an amount computed as follows: 
        Payment 3    August 15:  the final adjustment for the
                     prior fiscal year for the state paid
                     property tax credits established in 
                     section 273.1392 
        Payment 4    August 30:  one-third of the final adjustment
                     for the prior fiscal year for all aid
                     entitlements except state paid property
                     tax credits 
        Payment 6    September 30:  one-third of the final adjustment
                     for the prior fiscal year for all aid
                     entitlements except state paid property
                     tax credits
        Payment 8    October 30:  one-third of the final adjustment
                     for the prior fiscal year for all aid
                     entitlements except state paid property
                     tax credits
           Sec. 4.  Minnesota Statutes 2000, section 127A.45, is 
        amended by adding a subdivision to read: 
           Subd. 7a.  [ADVANCE FINAL PAYMENT.] (a) Notwithstanding 
        subdivisions 3 and 7, a school district or a charter school 
        exceeding its expenditure limitations under section 123B.83 as 
        of June 30 of the prior fiscal year may receive a portion of its 
        final payment for the current fiscal year on June 20, if 
        requested by the district.  The amount paid under this 
        subdivision must not exceed the lesser of: 
           (1) seven percent of the district or charter school's 
        general education aid for the current fiscal year; or 
           (2) the amount by which the district or charter school's 
        net negative unreserved general fund balance as of June 30 of 
        the prior fiscal year exceeds 2.5 percent of the district or 
        charter school's expenditures for that fiscal year. 
           (b) The state total advance final payment under this 
        subdivision for any year must not exceed $17,500,000.  If the 
        amount requested exceeds $17,500,000, the advance final payment 
        for each eligible district must be reduced proportionately. 
           Sec. 5.  Minnesota Statutes 2000, section 127A.45, 
        subdivision 10, is amended to read: 
           Subd. 10.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
        fiscal year state general fund payments for a district 
        nonoperating fund must be made at 90 83 percent of the estimated 
        entitlement during the fiscal year of the entitlement.  This 
        amount shall be paid in 12 equal monthly installments.  The 
        amount of the actual entitlement, after adjustment for actual 
        data, minus the payments made during the fiscal year of the 
        entitlement must be paid prior to October 31 of the following 
        school year.  The commissioner may make advance payments of debt 
        service equalization aid or homestead and agricultural credit 
        aid for a district's debt service fund earlier than would occur 
        under the preceding schedule if the district submits evidence 
        showing a serious cash flow problem in the fund.  The 
        commissioner may make earlier payments during the year and, if 
        necessary, increase the percent of the entitlement paid to 
        reduce the cash flow problem. 
           Sec. 6.  Minnesota Statutes 2000, section 127A.45, 
        subdivision 13, is amended to read: 
           Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
        subdivisions 11, 12, 12a, and 14, each fiscal year, all 
        education aids and credits in this chapter and chapters 120A, 
        120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 
        section 273.1392, shall be paid at 90 83 percent of the 
        estimated entitlement during the fiscal year of the 
        entitlement.  For the purposes of this subdivision, a district's 
        estimated entitlement for special education excess cost aid 
        under section 125A.79 equals 70 percent of the district's 
        entitlement for the second prior fiscal year.  The final 
        adjustment payment, according to subdivision 9, must be the 
        amount of the actual entitlement, after adjustment for actual 
        data, minus the payments made during the fiscal year of the 
        entitlement. 
           Sec. 7.  Minnesota Statutes 2000, section 127A.45, 
        subdivision 14, is amended to read: 
           Subd. 14.  [NONPUBLIC AIDS.] The state shall pay aid 
        according to sections 123B.40 to 123B.48 for pupils attending 
        nonpublic schools as follows: 
           (1) an advance payment by November 30 equal to 90 83 
        percent of the estimated entitlement for the current fiscal 
        year; and 
           (2) a final payment by October 31 of the following fiscal 
        year, adjusted for actual data.  
           If a payment advance to meet cash flow needs is requested 
        by a district and approved by the commissioner, the state shall 
        pay nonpublic pupil transportation aid according to section 
        123B.92 by October 31. 
           Sec. 8.  Minnesota Statutes 2001 Supplement, section 
        127A.45, subdivision 14a, is amended to read: 
           Subd. 14a.  [STATE NUTRITION PROGRAMS.] Notwithstanding 
        subdivision 3, the state shall pay 100 percent of the aid for 
        the current year according to sections 124D.111, 124D.115, and 
        124D.118 and 90 83 percent of the aid for the current year 
        according to section 124D.1156 based on submitted monthly 
        vouchers showing meals and milk served.  The remaining ten 17 
        percent according to section 124D.1156 shall be paid by October 
        30 of the following fiscal year. 
           Sec. 9.  Minnesota Statutes 2000, section 127A.45, 
        subdivision 16, is amended to read: 
           Subd. 16.  [PAYMENTS TO THIRD PARTIES.] Notwithstanding 
        subdivision 3, 90 83 percent of the amounts under section 
        123A.26, subdivision 3, shall be paid in equal installments on 
        August 30, December 30, and March 30, with a ten 17 percent 
        final adjustment payment on October 30 of the next fiscal year. 
           Sec. 10.  [APPROPRIATION, ADVANCE FINAL PAYMENT.] 
           $17,500,000 is appropriated from the general fund to the 
        commissioner of children, families, and learning to make advance 
        final payments to school districts and charter schools under 
        section 4.  

                                   ARTICLE 2
                      EARLY CHILDHOOD AND FAMILY EDUCATION
           Section 1.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 2, is amended to read: 
           Subd. 2.  [SCHOOL READINESS PROGRAM REVENUE.] For revenue 
        for school readiness programs according to Minnesota Statutes, 
        sections 124D.15 and 124D.16: 
             $10,395,000    .....     2002
             $10,395,000 $9,667,000    .....     2003
           The 2002 appropriation includes $1,039,000 for 2001 and 
        $9,356,000 for 2002. 
           The 2003 appropriation includes $1,039,000 for 2002 and 
        $9,356,000 $8,628,000 for 2003.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 2.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 3, as amended by Laws 2002, 
        chapter 220, article 2, section 2, is amended to read: 
           Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
        childhood family education aid according to Minnesota Statutes, 
        section 124D.135: 
             $20,725,000 $20,746,000     .....     2002 
             $20,624,000 $19,184,000     .....     2003
           The 2002 appropriation includes $2,036,000 for 2001 and 
        $18,689,000 $18,710,000 for 2002.  
           The 2003 appropriation includes $2,076,000 $2,079,000 for 
        2002 and $18,548,000 $17,105,000 for 2003.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 3.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 4, is amended to read: 
           Subd. 4.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
        health and developmental screening aid according to Minnesota 
        Statutes, sections 121A.17 and 121A.19: 
             $2,661,000     .....     2002 
             $2,661,000 $2,475,000     .....     2003 
           The 2002 appropriation includes $266,000 for 2001 and 
        $2,395,000 for 2002.  
           The 2003 appropriation includes $266,000 for 2002 and 
        $2,395,000 $2,209,000 for 2003.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 4.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 7, as amended by Laws 2002, 
        chapter 220, article 2, section 3, is amended to read: 
           Subd. 7.  [SCHOOL AGE CARE AID.] For school age care aid 
        according to Minnesota Statutes, section 124D.22: 
             $221,000     .....     2002 
             $100,000 $94,000     .....     2003
           The 2002 appropriation includes $30,000 for 2001 and 
        $191,000 for 2002. 
           The 2003 appropriation includes $21,000 for 2002 and 
        $79,000 $73,000 for 2003. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 5.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 9, as amended by Laws 2002, 
        chapter 220, article 2, section 5, is amended to read: 
           Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
        according to Minnesota Statutes, section 119B.05: 
             $69,201,000 $59,956,000     .....     2002 
             $77,122,000 $68,182,000     .....     2003 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 6.  Laws 2001, First Special Session chapter 3, 
        article 1, section 19, subdivision 3, as amended by Laws 2002, 
        chapter 220, article 2, section 8, is amended to read: 
           Subd. 3.  [TRANSITION YEAR FAMILIES.] To provide 
        uninterrupted assistance under Minnesota Statutes, section 
        119B.03, for families completing transition year child care 
        assistance: 
             $1,404,000 $1,695,000   .....     2002
             $1,357,000 $1,014,000   .....     2003
           Any unspent balance from the appropriations for 2002 and 
        2003 is returned to the TANF reserve.  TANF dollars appropriated 
        for this purpose in 2001 which are not encumbered by January 1, 
        2002, are returned to the TANF reserve. 
           Sec. 7.  Laws 2001, First Special Session chapter 3, 
        article 1, section 19, subdivision 5, as amended by Laws 2002, 
        chapter 220, article 2, section 9, is amended to read: 
           Subd. 5.  [MFIP SOCIAL SERVICES CHILD CARE.] For social 
        services child care costs of eligible MFIP participants under 
        Minnesota Statutes, section 119B.05, subdivision 1, clause (5): 
             $973,000 $775,000   .....     2002
             $997,000 $801,000   .....     2003
           Any unspent balance from the appropriations for 2002 and 
        2003 is returned to the TANF reserve.  TANF dollars appropriated 
        for this purpose in 2001 which are not encumbered by January 1, 
        2002, are returned to the TANF reserve. 
           Sec. 8.  Laws 2001, First Special Session chapter 3, 
        article 2, section 15, subdivision 3, as amended by Laws 2002, 
        chapter 220, article 2, section 10, is amended to read: 
           Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
        education aid according to Minnesota Statutes, section 124D.20: 
             $14,190,000 $14,194,000     .....     2002
             $ 8,186,000 $ 7,664,000     .....     2003
           The 2002 appropriation includes $1,528,000 for 2001 and 
        $12,662,000 $12,666,000 for 2002.  
           The 2003 appropriation includes $1,406,000 $1,407,000 for 
        2002 and $6,780,000 $6,257,000 for 2003.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 9.  Laws 2001, First Special Session chapter 3, 
        article 2, section 15, subdivision 4, is amended to read: 
           Subd. 4.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
        adults with disabilities programs according to Minnesota 
        Statutes, section 124D.56: 
             $639,000     .....     2002 
             $710,000 $661,000     .....     2003 
           The 2002 appropriation includes $0 for 2001 and $639,000 
        for 2002. 
           The 2003 appropriation includes $71,000 for 2002 and 
        $639,000 $590,000 for 2003. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 10.  Laws 2001, First Special Session chapter 3, 
        article 2, section 15, subdivision 6, is amended to read: 
           Subd. 6.  [VIOLENCE PREVENTION EDUCATION GRANTS.] For 
        violence prevention education grants according to Minnesota 
        Statutes, section 120B.23: 
             $1,305,000     .....     2002
             $1,450,000 $1,349,000     .....     2003
           The 2002 appropriation includes $0 for 2001 and $1,305,000 
        for 2002. 
           The 2003 appropriation includes $145,000 for 2002 and 
        $1,305,000 $1,204,000 for 2003. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 11.  Laws 2001, First Special Session chapter 3, 
        article 3, section 9, subdivision 5, is amended to read: 
           Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
        education aid according to Minnesota Statutes, section 124D.531: 
             $32,150,000     .....     2002 
             $34,731,000 $32,282,000     .....     2003
           The 2002 appropriation includes $3,019,000 for 2001 and 
        $29,131,000 for 2002.  
           The 2003 appropriation includes $3,237,000 for 2002 and 
        $31,494,000 $29,045,000 for 2003.  
           Sec. 12.  Laws 2001, First Special Session chapter 3, 
        article 3, section 9, subdivision 7, is amended to read: 
           Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
        according to Minnesota Statutes, section 124D.54: 
             $3,195,000 $2,462,000     .....     2002 
             $3,356,000 $2,327,000     .....     2003 
           The 2002 appropriation includes $305,000 for 2001 and 
        $2,890,000 $2,157,000 for 2002.  
           The 2003 appropriation includes $321,000 $240,000 for 2002 
        and $3,035,000 $2,087,000 for 2003.  
           Sec. 13.  Laws 2001, First Special Session chapter 3, 
        article 4, section 5, subdivision 2, as amended by Laws 2002, 
        chapter 220, article 2, section 12, is amended to read: 
           Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
        according to Minnesota Statutes, sections 134.32 to 134.35: 
             $8,570,000     .....     2002 
             $8,570,000 $7,971,000     .....     2003 
           The 2002 appropriation includes $857,000 for 2001 and 
        $7,713,000 for 2002. 
           The 2003 appropriation includes $857,000 for 2002 and 
        $7,713,000 $7,114,000 for 2003. 
           Base level funding for fiscal year 2004 is 
        $9,823,000 $9,754,000 and $9,822,000 $9,962,000 for fiscal year 
        2005. 
           Sec. 14.  Laws 2001, First Special Session chapter 3, 
        article 4, section 5, subdivision 3, is amended to read: 
           Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
        grants according to Minnesota Statutes, sections 134.353 and 
        134.354, to multicounty, multitype library systems: 
             $903,000     .....     2002 
             $903,000 $840,000     .....     2003 
           The 2002 appropriation includes $90,000 for 2001 and 
        $813,000 for 2002. 
           The 2003 appropriation includes $90,000 for 2002 and 
        $813,000 $750,000 for 2003. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 15.  Laws 2002, chapter 220, article 2, section 14, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sum indicated in this section is appropriated to 
        the commissioner of children, families, and learning transferred 
        from the federal Temporary Assistance for Needy Families block 
        grant to the child care and development fund and appropriated to 
        the department of children, families, and learning for the 
        fiscal year designated.  This amount is available for 
        expenditure until June 30, 2003. 
           Sec. 16.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.

                                   ARTICLE 3
                    K-12 EDUCATION APPROPRIATION ADJUSTMENTS
           Section 1.  Minnesota Statutes 2001 Supplement, section 
        123B.54, as amended by Laws 2002, chapter 220, article 4, 
        section 1, is amended to read: 
           123B.54 [DEBT SERVICE APPROPRIATION.] 
           (a) $25,987,000 in fiscal year 2002, 
        $31,892,000 $29,941,000 in fiscal year 2003, 
        $36,629,000 $40,075,000 in fiscal year 2004, and 
        $36,931,000 $39,774,000 in fiscal years 2005 and later are 
        appropriated from the general fund to the commissioner of 
        children, families, and learning for payment of debt service 
        equalization aid under section 123B.53.  
           (b) The appropriations in paragraph (a) must be reduced by 
        the amount of any money specifically appropriated for the same 
        purpose in any year from any state fund. 
           Sec. 2.  Laws 2001, First Special Session chapter 5, 
        article 2, section 29, subdivision 2, as amended by Laws 2002, 
        chapter 220, article 4, section 2, is amended to read: 
           Subd. 2.  [REFERENDUM TAX BASE REPLACEMENT AID.] For 
        referendum tax base replacement aid according to Minnesota 
        Statutes, section 126C.17, subdivision 7a: 
             $7,616,000 $7,027,000     .....     2003
           The 2003 appropriation includes $0 for 2002 and 
        $7,616,000 $7,027,000 for 2003.  
           Sec. 3.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 2, as amended by Laws 2002, 
        chapter 220, article 3, section 8, is amended to read: 
           Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] (a) For 
        general and supplemental education aid:  
             $3,404,787,000 $3,414,168,000     .....     2002
             $4,982,334,000 $4,616,467,000     .....     2003
           The 2002 appropriation includes $323,767,000 $333,756,000 
        for 2001 and $3,081,020,000 $3,080,412,000 for 2002.  
           The 2003 appropriation includes $335,220,000 $335,163,000 
        for 2002 and $4,647,114,000 $4,281,304,000 for 2003.  
           (b) The fiscal year 2003 appropriation in paragraph (a) is 
        reduced by $1,901,000. 
           Sec. 4.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 4, as amended by Laws 2002, 
        chapter 220, article 4, section 3, is amended to read: 
           Subd. 4.  [ABATEMENT AID.] For abatement aid according to 
        Minnesota Statutes, section 127A.49:  
             $5,698,000    .....     2002 
             $2,990,000 $2,870,000    .....     2003 
           The 2002 appropriation includes $640,000 for 2001 and 
        $5,058,000 for 2002.  
           The 2003 appropriation includes $562,000 for 2002 
        and $2,428,000 $2,308,000 for 2003.  
           Sec. 5.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 5, as amended by Laws 2002, 
        chapter 220, article 4, section 4, is amended to read: 
           Subd. 5.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
        education aid according to Minnesota Statutes, sections 123.79 
        and 123B.40 to 123B.43: 
             $14,441,000 $14,254,000   .....     2002 
             $15,977,000 $14,259,000   .....     2003 
           The 2002 appropriation includes $1,330,000 for 2001 and 
        $13,111,000 $12,924,000 for 2002. 
           The 2003 appropriation includes $1,457,000 $1,436,000 for 
        2002 and $14,520,000 $12,823,000 for 2003. 
           Sec. 6.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 6, as amended by Laws 2002, 
        chapter 220, article 4, section 5, is amended to read: 
           Subd. 6.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
        pupil transportation aid under Minnesota Statutes, section 
        123B.92, subdivision 9: 
             $20,635,000 $20,634,000    .....     2002 
             $25,347,000 $22,236,000    .....     2003 
           The 2002 appropriation includes $2,000,000 for 2001 and 
        $18,635,000 $18,634,000 for 2002. 
           The 2003 appropriation includes $2,070,000 $2,071,000 for 
        2002 and $23,277,000 $20,165,000 for 2003. 
           Sec. 7.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 7, as amended by Laws 2002, 
        chapter 220, article 4, section 6, is amended to read: 
           Subd. 7.  [CONSOLIDATION TRANSITION AID.] For districts 
        consolidating under Minnesota Statutes, section 123A.485: 
             $531,000 $539,000       .....     2002 
             $736,000 $225,000       .....     2003 
           The 2002 appropriation includes $44,000 for 2001 and 
        $487,000 $495,000 for 2002. 
           The 2003 appropriation includes $54,000 for 2002 
        and $682,000 $171,000 for 2003. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 8.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 4, as amended by Laws 2002, 
        chapter 220, article 4, section 7, is amended to read: 
           Subd. 4.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
        lease aid under Minnesota Statutes, section 124D.11, subdivision 
        4: 
             $12,323,000 $12,286,000     .....     2002 
             $15,330,000 $14,394,000     .....     2003 
           The 2002 appropriation includes $1,114,000 for 2001 and 
        $11,209,000 $11,172,000 for 2002. 
           The 2003 appropriation includes $1,245,000 $1,241,000 for 
        2002 and $14,085,000 $13,153,000 for 2003.  
           Sec. 9.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 5, as amended by Laws 2002, 
        chapter 220, article 4, section 8, is amended to read: 
           Subd. 5.  [CHARTER SCHOOL STARTUP GRANTS.] For charter 
        school startup cost aid under Minnesota Statutes, section 
        124D.11: 
             $2,090,000 $2,064,000    .....     2002 
             $1,549,000 $1,456,000    .....     2003 
           The 2002 appropriation includes $258,000 for 2001 
        and $1,832,000 $1,806,000 for 2002.  
           The 2003 appropriation includes $204,000 $200,000 for 2002 
        and $1,345,000 $1,256,000 for 2003. 
           Sec. 10.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 6, is amended to read: 
           Subd. 6.  [CHARTER SCHOOL INTEGRATION AID.] For grants to 
        charter schools to promote integration and desegregation under 
        Minnesota Statutes, section 124D.11, subdivision 6, paragraph 
        (e): 
             $45,000        .....     2002 
             $50,000 $47,000        .....     2003 
           The 2002 appropriation includes $0 for 2001 and $45,000 for 
        2002.  
           The 2003 appropriation includes $5,000 for 2002 and 
        $45,000 $42,000 for 2003. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 11.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 8, as amended by Laws 2002, 
        chapter 220, article 4, section 9, is amended to read: 
           Subd. 8.  [INTEGRATION AID.] For integration aid: 
             $63,421,000 $63,311,000     .....    2002 
             $53,890,000 $50,418,000     .....    2003 
           The 2002 appropriation includes $5,729,000 for 2001 and 
        $57,692,000 $57,582,000 for 2002. 
           The 2003 appropriation includes $6,410,000 $6,398,000 for 
        2002 and $47,480,000 $44,020,000 for 2003.  
           Sec. 12.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 11, as amended by Laws 2002, 
        chapter 220, article 4, section 10, is amended to read: 
           Subd. 11.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
        startup aid under Minnesota Statutes, section 124D.88: 
             $475,000 $448,000      .....     2002 
             $298,000 $326,000      .....     2003 
           The 2002 appropriation includes $25,000 for 2001 and 
        $450,000 $423,000 for 2002.  
           The 2003 appropriation includes $50,000 $47,000 for 2002 
        and $248,000 $279,000 for 2003. 
           Sec. 13.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 15, as amended by Laws 2002, 
        chapter 220, article 4, section 11, is amended to read: 
           Subd. 15.  [SUCCESS FOR THE FUTURE.] For American Indian 
        success for the future grants according to Minnesota Statutes, 
        section 124D.81: 
             $1,924,000     .....     2002
             $2,137,000 $1,987,000     .....     2003
           The 2002 appropriation includes $0 for 2001 and $1,924,000 
        for 2002. 
           The 2003 appropriation includes $213,000 for 2002 
        and $1,924,000 $1,774,000 for 2003. 
           Sec. 14.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 18, as amended by Laws 2002, 
        chapter 220, article 4, section 12, is amended to read: 
           Subd. 18.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
        school aid under Minnesota Statutes, section 124D.83: 
             $2,304,000 $2,147,000    .....     2002
             $2,408,000 $2,221,000    .....     2003
           The 2002 appropriation includes $192,000 for 2001 and 
        $2,112,000 $1,955,000 for 2002. 
           The 2003 appropriation includes $235,000 $217,000 for 2002 
        and $2,173,000 $2,004,000 for 2003. 
           Sec. 15.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 2, as amended by Laws 2002, 
        chapter 220, article 4, section 13, is amended to read: 
           Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
        aid according to Minnesota Statutes, section 125A.75: 
             $507,841,000 $507,928,000  .....     2002 
             $532,282,000 $495,032,000  .....     2003 
           The 2002 appropriation includes $47,400,000 for 2001 and 
        $460,441,000 $460,528,000 for 2002. 
           The 2003 appropriation includes $51,160,000 $51,170,000 for 
        2002 and $481,122,000 $443,862,000 for 2003. 
           Sec. 16.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 3, as amended by Laws 2002, 
        chapter 220, article 4, section 14, is amended to read: 
           Subd. 3.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
        according to Minnesota Statutes, section 125A.75, subdivision 3, 
        for children with a disability placed in residential facilities 
        within the district boundaries for whom no district of residence 
        can be determined: 
             $1,358,000 $1,346,000    .....     2002 
             $3,161,000 $2,363,000    .....     2003 
           If the appropriation for either year is insufficient, the 
        appropriation for the other year is available.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 17.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 4, as amended by Laws 2002, 
        chapter 220, article 4, section 15, is amended to read: 
           Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
        teacher travel for home-based services according to Minnesota 
        Statutes, section 125A.75, subdivision 1: 
             $143,000 $139,000      .....     2002 
             $148,000 $134,000      .....     2003 
           The 2002 appropriation includes $14,000 $13,000 for 2001 
        and $129,000 $126,000 for 2002. 
           The 2003 appropriation includes $15,000 $14,000 for 2002 
        and $133,000 $120,000 for 2003. 
           Sec. 18.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 5, as amended by Laws 2002, 
        chapter 220, article 4, section 16, is amended to read: 
           Subd. 5.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
        cost aid: 
             $103,061,000 $92,622,000     .....     2002 
             $105,289,000 $60,372,000     .....     2003 
           The 2002 appropriation includes $9,889,000 for 2001 and 
        $93,172,000 $82,733,000 for 2002. 
           The 2003 appropriation includes $10,352,000 $9,192,000 for 
        2002 and $94,937,000 $51,180,000 for 2003. 
           Sec. 19.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 7, as amended by Laws 2002, 
        chapter 220, article 4, section 17, is amended to read: 
           Subd. 7.  [TRANSITION PROGRAMS; STUDENTS WITH 
        DISABILITIES.] For aid for transition programs for pupils with 
        disabilities according to Minnesota Statutes, section 124D.454: 
             $8,960,000 $8,962,000    .....     2002 
             $8,952,000 $8,328,000    .....     2003 
           The 2002 appropriation includes $896,000 for 2001 and 
        $8,064,000 $8,066,000 for 2002.  
           The 2003 appropriation includes $896,000 for 2002 
        and $8,056,000 $7,432,000 for 2003.  
           Sec. 20.  Laws 2001, First Special Session chapter 6, 
        article 4, section 27, subdivision 2, as amended by Laws 2002, 
        chapter 220, article 4, section 18, is amended to read: 
           Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
        aid according to Minnesota Statutes, section 123B.57, 
        subdivision 5: 
             $13,630,000 $12,280,000   .....     2002 
             $10,800,000 $ 9,085,000   .....     2003 
           The 2002 appropriation includes $1,480,000 for 2001 and 
        $12,150,000 $10,800,000 for 2002. 
           The 2003 appropriation includes $1,350,000 $1,200,000 for 
        2002 and $9,450,000 $7,885,000 for 2003. 
           Sec. 21.  Laws 2001, First Special Session chapter 6, 
        article 4, section 27, subdivision 3, as amended by Laws 2002, 
        chapter 220, article 4, section 19, is amended to read: 
           Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
        according to Minnesota Statutes, section 123B.53, subdivision 6: 
             $25,987,000     .....     2002 
             $31,892,000 $29,941,000     .....     2003 
           The 2002 appropriation includes $2,890,000 for 2001 and 
        $23,097,000 for 2002. 
           The 2003 appropriation includes $2,566,000 for 2002 
        and $29,326,000 $27,375,000 for 2003. 
           Sec. 22.  Laws 2001, First Special Session chapter 6, 
        article 4, section 27, subdivision 5, as amended by Laws 2002, 
        chapter 220, article 4, section 20, is amended to read: 
           Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
        alternative facilities bonding aid, according to Minnesota 
        Statutes, section 123B.59, subdivision 1: 
             $19,280,000     .....     2002 
             $19,287,000 $17,937,000     .....     2003 
           The 2002 appropriation includes $1,921,000 for 2001 and 
        $17,359,000 for 2002. 
           The 2003 appropriation includes $1,928,000 for 2002 
        and $17,359,000 $16,009,000 for 2003. 
           Sec. 23.  Laws 2001, First Special Session chapter 6, 
        article 5, section 13, subdivision 3, is amended to read: 
           Subd. 3.  [SCHOOL BREAKFAST.] For school breakfast aid 
        under Minnesota Statutes, section 124D.115: 
             $640,000       .....     2002 
             $700,000 $680,000       .....     2003 
           Sec. 24.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.

                                   ARTICLE 4
                                 K-12 EDUCATION
           Section 1.  Minnesota Statutes 2000, section 124D.69, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [UNCOMMON SCHOOLS SERVING STUDENTS WITH CHEMICAL 
        DEPENDENCIES; ALLOCATION OF FUNDS.] In addition to the amounts 
        provided in section 124D.68, subdivision 9, a school district 
        may allocate funds from its undesignated general fund to a 
        private contracted alternative program, including a private 
        contracted alternative program that is tuition free and provides 
        a comprehensive secondary academic program for students who have 
        been assessed chemically dependent and who have completed a 
        licensed treatment program for chemical dependency. 
           Sec. 2.  Minnesota Statutes 2000, section 125A.65, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESPONSIBILITY ALLOCATED.] Responsibility 
        for special instruction and services for a visually 
        disabled blind/visually impaired or hearing impaired deaf/hard 
        of hearing child attending the Minnesota state academy for the 
        deaf or the Minnesota state academy for the blind must be 
        determined in subdivisions 2 to 10. 
           Sec. 3.  Minnesota Statutes 2000, section 125A.65, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EDUCATIONAL PROGRAM; TUITION.] When it is 
        determined pursuant to section 125A.69, subdivision 1 or 2, that 
        the child is entitled to attend either school, the board of the 
        Minnesota state academies must provide the appropriate 
        educational program for the child.  The board of the Minnesota 
        state academies must make a tuition charge to the child's 
        district of residence for the cost of providing the program.  
        The amount of tuition charged must not exceed the basic revenue 
        of the district general education revenue formula allowance 
        times the pupil unit weighting factor pursuant to section 
        126C.05 for that child, for the amount of time the child is in 
        the program.  For purposes of this subdivision, "basic revenue" 
        has the meaning given it in section 126C.10, subdivision 2.  The 
        district of the child's residence must pay the tuition and may 
        claim general education aid for the child.  Tuition received by 
        the board of the Minnesota state academies, except for tuition 
        received under subdivision 4, must be deposited in the state 
        treasury as provided in subdivision 8. 
           Sec. 4.  Minnesota Statutes 2000, section 125A.65, 
        subdivision 8, is amended to read: 
           Subd. 8.  [STUDENT COUNT; TUITION.] (a) On May 1 of each 
        year, 1996, and each year thereafter, the board of the Minnesota 
        state academies shall count the actual number of Minnesota 
        resident kindergarten and elementary students and the actual 
        number of Minnesota resident secondary special education 
        eligible students enrolled and receiving education services at 
        the Minnesota state academy for the deaf and the Minnesota state 
        academy for the blind.  The board of the Minnesota state 
        academies shall deposit in the state treasury an amount equal to 
        all tuition received less: the amount calculated in paragraph 
        (b). 
           (1) the total number of students on May 1 less 175, times 
        the ratio of the number of kindergarten and elementary students 
        to the total number of students on May 1, times the general 
        education formula allowance; plus 
           (2) the total number of students on May 1 less 175, times 
        the ratio of the number of secondary students on May 1 to the 
        total number of students on May 1, times 1.3, times the general 
        education formula allowance. 
           (b) The Minnesota state academies shall credit to their 
        general operation account an amount equal to the tuition 
        received which represents tuition earned for the total number of 
        students over 175 based on: 
           (1) the total number of enrolled students on May 1 less 
        175; times 
           (2) the ratio of the number of students in that grade 
        category to the total number of students on May 1; times 
           (3) the general education revenue formula allowance; times 
           (4) the pupil unit weighting factor pursuant to section 
        126C.05. 
           Sec. 5.  Minnesota Statutes 2000, section 125A.65, 
        subdivision 9, is amended to read: 
           Subd. 9.  [CALCULATION.] The sum provided by the 
        calculation in subdivision 8, clauses (1) and (2), must be 
        deposited in the state treasury and credited to the general 
        operation account of the academy for the deaf and the academy 
        for the blind Minnesota state academy for the deaf and the 
        Minnesota state academy for the blind. 
           Sec. 6.  Minnesota Statutes 2001 Supplement, section 
        126C.10, subdivision 13, is amended to read: 
           Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
        fiscal year 2000 and thereafter, total operating capital revenue 
        for a district equals the amount determined under paragraph (b) 
        or (c), plus $73 times the adjusted marginal cost pupil units 
        for the school year.  The revenue must be placed in a reserved 
        account in the general fund and may only be used according to 
        paragraph (d) or subdivision 14. 
           (b) For fiscal years 2000 and later, capital revenue for a 
        district equals $100 times the district's maintenance cost index 
        times its adjusted marginal cost pupil units for the school year.
           (c) For fiscal years 2000 and later, the revenue for a 
        district that operates a program under section 124D.128, is 
        increased by an amount equal to $30 times the number of marginal 
        cost pupil units served at the site where the program is 
        implemented. 
           (d) For fiscal years 2001 and, 2002, and 2003, the district 
        must reserve an amount equal to $5 per adjusted marginal cost 
        pupil unit for telecommunication access costs.  Reserve revenue 
        under this paragraph must first be used to pay for ongoing or 
        recurring telecommunication access costs, including access to 
        data and video connections, including Internet access.  Any 
        revenue remaining after covering all ongoing or recurring access 
        costs may be used for computer hardware or equipment. 
           Sec. 7.  Minnesota Statutes 2001 Supplement, section 
        126C.17, subdivision 7, is amended to read: 
           Subd. 7.  [REFERENDUM EQUALIZATION AID.] (a) A district's 
        referendum equalization aid equals the difference between its 
        referendum equalization revenue and levy. 
           (b) If a district's actual levy for first or second tier 
        referendum equalization revenue is less than its maximum levy 
        limit for that tier, aid shall be proportionately reduced. 
           (c) Notwithstanding paragraph (a), the referendum 
        equalization aid for a district, where the referendum 
        equalization aid under paragraph (a) exceeds 90 percent of the 
        referendum revenue, must not exceed 18.2 percent of the formula 
        allowance times the district's resident marginal cost pupil 
        units.  A district's referendum levy is increased by the amount 
        of any reduction in referendum aid under this paragraph. 
           [EFFECTIVE DATE.] This section is effective for operating 
        referendum elections January 1, 2002, and later. 
           Sec. 8.  Laws 2001, First Special Session chapter 6, 
        article 7, section 14, as amended by Laws 2002, chapter 220, 
        article 3, section 16, is amended to read: 
           Sec. 14.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
        EDUCATION.] 
           The sums indicated in this section are appropriated from 
        the general fund to the Perpich Center for Arts Education for 
        the fiscal years designated: 
         $7,431,000 $7,681,000    .....     2002 
         $7,316,000 $7,816,000    .....     2003 
           $150,000 each year is to extend the partnership network to 
        up to five new partnership sites and for developing 
        whole-school, arts-based teaching and learning curriculum at new 
        sites. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 9.  [REFERENDUM TRANSFER ADJUSTMENT.] 
           Notwithstanding Minnesota Statutes, section 126C.17, 
        subdivision 1, paragraph (b), for fiscal year 2003 and later, 
        the initial referendum allowance for independent school district 
        No. 709, Duluth, equals the sum of the allowance under Minnesota 
        Statutes, section 126C.16, subdivision 2, plus the referendum 
        conversion allowance approved under Minnesota Statutes, section 
        126C.17, subdivision 13, minus $373.  If the district has more 
        than one referendum authority, the reduction must be computed 
        separately for each authority.  The reduction must be applied 
        first to the referendum authority with the earliest expiration 
        date.  The district's initial referendum allowance may not be 
        less than zero. 
           Sec. 10.  [DECLINING PUPIL UNIT AID; ALBERT LEA.] 
           Subdivision 1.  [FISCAL YEAR 2003.] For fiscal year 2003, 
        independent school district No. 241, Albert Lea, is eligible for 
        declining enrollment aid equal to $300,000. 
           Subd. 2.  [FISCAL YEAR 2004.] For fiscal year 2004, 
        independent school district No. 241, Albert Lea, is eligible for 
        declining enrollment aid equal to 75 percent of the fiscal year 
        2003 appropriation in subdivision 1. 
           Subd. 3.  [FISCAL YEAR 2005.] For fiscal year 2005, 
        independent school district No. 241, Albert Lea, is eligible for 
        declining enrollment aid equal to 50 percent of the fiscal year 
        2003 appropriation in subdivision 1. 
           Subd. 4.  [FISCAL YEAR 2006.] For fiscal year 2006, 
        independent school district No. 241, Albert Lea, is eligible for 
        declining enrollment aid equal to 25 percent of the fiscal year 
        2003 appropriation in subdivision 1. 
           Sec. 11.  [DECLINING ENROLLMENT; LTV DISLOCATION.] 
           Subdivision 1.  [FISCAL YEAR 2003.] For fiscal year 2003, 
        independent school district No. 2711, Mesabi East, is eligible 
        for declining enrollment aid equal to $200,000. 
           Subd. 2.  [FISCAL YEAR 2004.] For fiscal year 2004, 
        independent school district No. 2711, Mesabi East, is eligible 
        for declining enrollment aid equal to 75 percent of the amount 
        that the district received in the fiscal year 2003 appropriation 
        in subdivision 1. 
           Subd. 3.  [FISCAL YEAR 2005.] For fiscal year 2005, 
        independent school district No. 2711, Mesabi East, is eligible 
        for declining enrollment aid equal to 50 percent of the amount 
        that the district received in the fiscal year 2003 appropriation 
        in subdivision 1. 
           Subd. 4.  [FISCAL YEAR 2006.] For fiscal year 2006, 
        independent school district No. 2711, Mesabi East, is eligible 
        for declining enrollment aid equal to 25 percent of the amount 
        that the district received in the fiscal year 2003 appropriation 
        in subdivision 1. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 12.  [FUND TRANSFER; BUTTERFIELD.] 
           Notwithstanding Minnesota Statutes, section 123B.79 or 
        123B.80, on June 30, 2002, independent school district No. 836, 
        Butterfield, may permanently transfer up to $117,000 from its 
        reserves for operating capital account in its general fund to 
        the undesignated fund balance. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 13.  [FUND TRANSFER; TRUMAN.] 
           Notwithstanding Minnesota Statutes, section 123B.79 or 
        123B.80, on June 30, 2002, independent school district No. 458, 
        Truman, may permanently transfer up to $500,000 from its 
        reserves for operating capital account in its general fund to 
        the undesignated fund balance. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 14.  [APPROPRIATION.] 
           (a) $300,000 in fiscal year 2003 is appropriated from the 
        general fund to the commissioner of children, families, and 
        learning for declining pupil unit aid to independent school 
        district No. 241, Albert Lea. 
           (b) In addition to the amounts appropriated for general and 
        supplemental education aid, $295,000 in fiscal year 2003 is 
        appropriated from the general fund to the commissioner of 
        children, families, and learning for the aid portion of the 
        referendum transfer adjustment for independent school district 
        No. 709, Duluth. 
           (c) $200,000 in fiscal year 2003 is appropriated from the 
        general fund to the commissioner of children, families, and 
        learning for declining pupil unit aid to independent school 
        district No. 2711, Mesabi East. 
           Sec. 15.  [EFFECTIVE DATE.] 
           Except as otherwise provided in this article, this article 
        is effective the day following final enactment. 

                                   ARTICLE 5
                                HIGHER EDUCATION
           Section 1.  Minnesota Statutes 2000, section 136A.121, 
        subdivision 7, is amended to read: 
           Subd. 7.  [INSUFFICIENT APPROPRIATION.] If the amount 
        appropriated is determined by the office to be insufficient to 
        make full awards to applicants under subdivision 5, before any 
        award for that year has been disbursed, awards must be reduced 
        by 
           (1) adding a surcharge to the contribution of the 
        applicant's parents, and assigned family responsibility, as 
        defined in section 136A.101, subdivision 5a; and 
           (2) a percentage increase in the applicant's contribution 
        assigned student responsibility, as defined in subdivision 5.  
           Sec. 2.  [STATE GRANT APPROPRIATION.] 
           $5,000,000 is appropriated from the general fund to the 
        higher education services office to make state grants.  This 
        appropriation is added to the appropriation in Laws 2001, First 
        Special Session chapter 1, article 1, section 2, subdivision 2, 
        for fiscal year 2002. 
           The higher education services office, by July 1, 2002, must 
        make a determination of the projected sufficiency or deficiency 
        in state money available for the state grant program to make 
        full state grant awards through fiscal year 2003.  If it is 
        determined that a deficiency is projected, then, notwithstanding 
        Minnesota Statutes, section 136A.121, subdivision 7, the higher 
        education services office shall immediately transfer to the 
        state grant appropriation from the work study appropriation and 
        notwithstanding Minnesota Statutes, section 136A.125, 
        subdivision 4c, from the child care grant appropriation in Laws 
        2001, First Special Session chapter 1, article 1, section 2, the 
        amount necessary to make full state grant awards in fiscal year 
        2003.  If state money available for the state grant program 
        continues to be insufficient to make full state grant awards 
        after the initial transfers, subsequent transfers must be made 
        before any reduction in state grant awards under Minnesota 
        Statutes, section 136A.121, subdivision 7, is made. 
           Sec. 3.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.

                                   ARTICLE 6
                       ENVIRONMENT AND NATURAL RESOURCES
           Section 1.  [SCORE BLOCK GRANT APPROPRIATION SHIFT.] 
           $9,000,000 of the appropriation in Laws 2001, First Special 
        Session chapter 2, section 3, from the general fund to the 
        office of environmental assistance for SCORE block grants to 
        counties in fiscal year 2003 is canceled.  This is a onetime 
        reduction and the same amount must be restored to the general 
        fund budget base for fiscal year 2004. 
           $9,000,000 is appropriated from the solid waste fund to the 
        office of environmental assistance for SCORE block grants to 
        counties in fiscal year 2003.  This is a onetime appropriation. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 2.  Minnesota Statutes 2000, section 115A.557, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DISTRIBUTION; FORMULA.] Any funds 
        appropriated to the director for the purpose of distribution to 
        counties under this section must be distributed each fiscal year 
        by the director based on population, except a county may not 
        receive less than $55,000 in a fiscal year.  If the amount 
        available for distribution under this section is less than the 
        amount available in fiscal year 2001, the minimum county payment 
        under this section is reduced proportionately.  For purposes of 
        this subdivision, "population" has the definition given in 
        section 477A.011, subdivision 3.  A county that participates in 
        a multicounty district that manages solid waste and that has 
        responsibility for recycling programs as authorized in section 
        115A.552, must pass through to the districts funds received by 
        the county in excess of the $55,000 annual base minimum county 
        payment under this section in proportion to the population of 
        the county served by that district. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 3.  Minnesota Statutes 2000, section 115A.96, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MANAGEMENT PROGRAM.] The agency office shall 
        establish a statewide program to manage household hazardous 
        wastes.  The program must include: 
           (1) the establishment and operation of collection sites; 
        and 
           (2) the provision of information, education, and technical 
        assistance regarding proper management of household hazardous 
        wastes. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 4.  Minnesota Statutes 2000, section 115A.96, 
        subdivision 3, is amended to read: 
           Subd. 3.  [OTHER PARTICIPANTS.] (a) The agency office may 
        establish or operate all or part of the management program or 
        may provide for services by contract or other agreement with 
        public or private entities.  
           (b) The agency office shall allow these programs to accept 
        up to 100 pounds of waste per year from a hazardous waste 
        generator that generates 220 pounds or less of hazardous waste 
        per month.  
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 5.  Minnesota Statutes 2000, section 115A.96, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MANAGEMENT.] Any person who establishes or 
        operates all or part of a household hazardous waste management 
        program shall manage collected waste in compliance with 
        standards applicable to a hazardous waste generator.  If 
        collected waste must be stored for a time exceeding those 
        standards, the agency office or other entity shall obtain the 
        approval of the commissioner of the agency and shall manage the 
        waste in compliance with applicable standards for the use and 
        management of containers, but no facility permit is required.  
        Waste accepted under subdivision 3, paragraph (b), must be 
        managed in accordance with standards applicable to the waste.  
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 6.  Minnesota Statutes 2000, section 115A.96, 
        subdivision 5, is amended to read: 
           Subd. 5.  [OTHER PROGRAMS.] A person must notify the 
        commissioner of the agency and director of the office before 
        establishing and operating any part of a household hazardous 
        waste management program. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 7.  Minnesota Statutes 2000, section 115A.96, 
        subdivision 7, as added by Laws 2002, chapter 265, section 2, is 
        amended to read: 
           Subd. 7.  [INDEMNIFICATION; MUNICIPALITIES.] (a) A 
        municipality, when operating or participating in a household 
        hazardous waste management program pursuant to a contract with 
        the agency office under this section or other law, is an 
        employee of the state, certified to be acting within the scope 
        of employment, for purposes of the indemnification provisions of 
        section 3.736, subdivision 9, for claims that arise out of the 
        transportation, management, or disposal of any waste covered by 
        the contract:  
           (1) from and after the time the waste permanently leaves 
        the municipality's possession and comes into the possession of 
        the agency's office's authorized transporter; and 
           (2) during the time the waste is transported between the 
        municipality's facilities by the agency's office's authorized 
        transporter. 
           (b) The state is not obligated to defend or indemnify a 
        municipality under this subdivision to the extent of the 
        municipality's liability insurance.  The municipality's right to 
        indemnity is not a waiver of the limitations, defenses, and 
        immunities available to either the municipality or the state by 
        law. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 8.  Laws 2002, chapter 220, article 8, section 15, is 
        amended to read: 
           Sec. 15.  [INCREASE TO WATER QUALITY PERMIT FEES.] 
           (a) The pollution control agency shall collect water 
        quality permit application and annual fees that reflect the fees 
        in Minnesota Rules, part 7002.0310, increased to the amounts 
        described in paragraphs (b) to (g). 
           (b) The application fee for individual permits, general 
        permits, and general industrial stormwater permits is $240. 
           (c) The annual fees for individual National Pollutant 
        Discharge Elimination System permits for major municipal 
        facilities are as follows: 
              Design Flow in  
              Million Gallons Per Day           Annual Fee
                50 and over                      $175,750 $175,500
                20 to 49.99                       $40,350
                 5 to 19.99                       $14,350
                 Up to 4.99                        $5,900
           (d) The annual fees for individual National Pollutant 
        Discharge Elimination System permits for major nonmunicipal 
        facilities are as follows: 
              Design Flow in  
              Million Gallons Per Day           Annual Fee 
                20 to 49.99                       $44,200
                 5 to 19.99                       $18,250
                 Up to 4.99                        $8,450
                Cooling or mine pit 
                dewatering (any flow)             $16,900
           (e) The annual fees for individual National Pollutant 
        Discharge Elimination System and State Disposal System permits 
        for nonmajor municipal facilities with design flows greater than 
        0.100 million gallons per day are $1,450. 
           (f) The annual fees for general industrial stormwater 
        permits are $280. 
           (g) The annual fees for general National Pollutant 
        Discharge Elimination System and State Disposal System permits 
        are $345. 
           (h) The application and annual fees are not increased for 
        general construction stormwater permits and sanitary sewer 
        extension permits.  The annual fees are not increased for 
        National Pollutant Discharge Elimination System and State 
        Disposal System permits regulating municipal nonmajors with 
        facility design flow of 0 to .100, sewage sludge landspreading 
        facilities, and nonmajor nonmunicipal facilities. 
           (i) The increased permit fees are effective July 1, 2002.  
        The agency shall adopt amended water quality permit fee rules 
        incorporating the permit fee increases in this subdivision under 
        Minnesota Statutes, section 14.389.  The pollution control 
        agency shall begin collecting the increased permit fees on July 
        1, 2002, even if the rule adoption process has not been 
        initiated or completed.  Notwithstanding Minnesota Statutes, 
        section 14.18, subdivision 2, the increased permit fees 
        reflecting the permit fee increases in this section and the rule 
        amendments incorporating those permit fee increases do not 
        require further legislative approval. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 9.  [HOUSEHOLD HAZARDOUS WASTE PROGRAM TRANSFER.] 
           Responsibility for the household hazardous waste program is 
        transferred under Minnesota Statutes, section 15.039, from the 
        pollution control agency to the office of environmental 
        assistance on July 1, 2003.  The amount of base funding to be 
        transferred is $1,041,000 from the solid waste fund. 
           Sec. 10.  [DIRECTOR OF THE OFFICE OF ENVIRONMENTAL 
        ASSISTANCE; APPOINTING AUTHORITY.] 
           The governor is encouraged to evaluate the advantages and 
        disadvantages associated with making the governor the appointing 
        authority for the director of environmental assistance, instead 
        of the commissioner of the pollution control agency as required 
        by Minnesota Statutes, section 115A.055, subdivision 1. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 

                                   ARTICLE 7 
                                STATE GOVERNMENT  
        Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
           The dollar amounts in the columns under "APPROPRIATIONS" 
        are added to or, if shown in parentheses, are subtracted from 
        the appropriations in Laws 2001, First Special Session chapter 
        10, or other law to the specified agencies.  The appropriations 
        are from the general fund or other named fund and are available 
        for the fiscal years indicated for each purpose.  The figure 
        "2002" or "2003" means that the addition to or subtraction from 
        the appropriations listed under the figure are for the fiscal 
        year ending June 30, 2002, or June 30, 2003, respectively. 
                                SUMMARY BY FUND 
                                  2002          2003           TOTAL
        APPROPRIATIONS
        General            $   (2,995,000) $  (1,620,000)$   (4,615,000)
        TRANSFERS IN           (2,000,000)         -0-       (2,000,000)
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2002         2003 
        Sec. 2.  LEGISLATURE          
        Subdivision 1.  Total           
        Appropriation                         (3,000,000)    (2,000,000)
        Subd. 2.  Senate             
            (1,000,000)    (1,000,000)
        Subd. 3.  House of Representatives 
            (2,000,000)    (1,000,000)
        $1,000,000 of the reduction in the 
        first year is from amounts previously 
        carried forward under Minnesota 
        Statutes, section 16A.281. 
        Sec. 3.  GOVERNOR                          -0-          375,000 
        $200,000 is to the office of the 
        governor to reopen the governor's 
        residence and make it available for 
        public use. 
        $175,000 is to the commissioner of 
        public safety to provide security at 
        the governor's residence. 
        Sec. 4.  ADMINISTRATION
        $2,000,000 of the balance in the State 
        Building Code account in the state 
        government special revenue fund as of 
        June 30, 2002, is canceled and must be 
        transferred to the general fund. 
        Sec. 5.  UNIFORM LAWS COMMISSION           5,000          5,000 
        These appropriations are added to the 
        appropriations in Laws 2001, First 
        Special Session chapter 8, article 4, 
        section 8. 
           Sec. 6.  Minnesota Statutes 2000, section 16A.28, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CANCELED OCTOBER 15.] On October 15 all 
        allotments and encumbrances for the last fiscal year shall be 
        canceled unless an agency head certifies to the commissioner 
        that there is an encumbrance for services rendered or, goods 
        ordered, or grants issued in the last fiscal year, or certifies 
        that funding will be carried forward under subdivision 
        1.  Encumbrances for grants issued by June 30 may be certified 
        for a period of one year beyond the year in which the funds were 
        originally appropriated.  Services rendered under grant 
        contracts may occur during the certification period.  The 
        commissioner may: reinstate the part of the cancellation needed 
        to meet the certified encumbrance or charge the certified 
        encumbrance against the current year's appropriation. 
           Sec. 7.  Minnesota Statutes 2000, section 16B.27, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [USE BY NONSTATE ENTITIES.] A nonstate entity 
        using the governor's residence must pay the state for all direct 
        and indirect costs associated with use of the facility. 
           Sec. 8.  Laws 1997, chapter 202, article 2, section 61, as 
        amended by Laws 1999, chapter 250, article 1, section 106, and 
        Laws 2001, First Special Session chapter 10, article 2, section 
        85, is amended to read: 
           Sec. 61.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
           Appointing authorities in state government may allow each 
        employee to take an unpaid leave of absence for up to 320 hours 
        during the period ending June 30, 2003, and an additional 160 
        hours during the period beginning July 1, 2003, and ending June 
        30, 2005.  Each appointing authority approving such a leave 
        shall allow the employee to continue accruing vacation and sick 
        leave, be eligible for paid holidays and insurance benefits, 
        accrue seniority, and accrue service credit in state retirement 
        plans permitting service credits for authorized leaves of 
        absence as if the employee had actually been employed during the 
        time of the leave.  If the leave of absence is for one full pay 
        period or longer, any holiday pay shall be included in the first 
        payroll warrant after return from the leave of absence.  The 
        appointing authority shall attempt to grant requests for unpaid 
        leaves of absence consistent with the need to continue efficient 
        operation of the agency.  However, each appointing authority 
        shall retain discretion to grant or refuse to grant requests for 
        leaves of absence and to schedule and cancel leaves, subject to 
        applicable provisions of collective bargaining agreements and 
        compensation plans. 
           Sec. 9.  Laws 2002, chapter 220, article 10, section 4, is 
        amended to read: 
        Sec. 4.  GOVERNOR'S OFFICE              (460,000)      (702,000)
        No funding may be used for the 
        operation of the Washington, D.C., 
        office of the state of Minnesota. 
           Sec. 10.  Laws 2002, chapter 220, article 10, section 36, 
        is amended to read: 
           Sec. 36.  [REDUCTION IN CONTRACT EXPENDITURES.] 
           During the biennium ending June 30, 2003, the governor must 
        reduce planned executive branch state agency general fund 
        expenditures on contracts for professional or technical services 
        by at least $35,000,000 $28,300,000.  The governor must allocate 
        this reduction among executive branch state agencies.  If the 
        governor determines that the mandated contract savings cannot be 
        achieved, the governor must make proportional reductions to 
        executive agency operating budgets in order to achieve the 
        savings.  For purposes of this section and section 37, 
        "professional or technical services" has the meaning given in 
        Minnesota Statutes, section 16C.08, subdivision 1; and 
        "executive branch state agency" has the meaning given in 
        Minnesota Statutes, section 16A.011, subdivision 12a, and 
        includes but does not include the Minnesota state colleges and 
        universities or the higher education services office.  The base 
        for these reductions is the amount allocated for professional or 
        technical service contracts in agency spending plans as of 
        January 1, 2002.  
           Sec. 11.  Laws 2002, chapter 220, article 10, section 37, 
        as amended by Laws 2002, chapter 364, section 30, is amended to 
        read: 
           Sec. 37.  [MORATORIUM ON CONSULTANT CONTRACTS.] 
           (a) An entity in the executive branch of state government, 
        including other than the Minnesota state colleges and 
        universities or the higher education services office, may not 
        enter into a new contract or renew an existing contract for 
        professional or technical services after the effective date of 
        this section and before July 1, 2003.  This section does not 
        apply to a contract: 
           (1) that relates to a threat to public health, welfare, or 
        safety that threatens the functioning of government, the 
        protection of property, or the health or safety of people; 
           (2) that is paid for entirely with federal funds received 
        before the effective date of this section or the cost of which 
        is entirely recovered from nonstate entities; 
           (3) that is paid entirely with funds from the state 
        airports fund, trunk highway fund, county state-aid highway 
        fund, or municipal state-aid street fund; or 
           (4) for a trunk highway project of a type described in Laws 
        2000, chapter 479, article 1, section 2, subdivision 3, 
        paragraph (a), clauses (1) to (3); or 
           (5) that is necessary to avoid a disruption of essential 
        state functions, will reduce state costs, or is necessary to 
        avoid a legal liability. 
           (b) An entity in the executive branch may apply for a 
        waiver of the moratorium by sending a letter with reasons for 
        the request to the commissioner of administration for executive 
        branch entities governor.  Upon a finding that a consultant 
        contract is necessary, the commissioner governor may grant a 
        waiver.  The decision of the commissioner is final and not 
        subject to appeal.  A monthly report of all exceptions granted 
        under paragraph (a) and all waivers granted must be filed by the 
        entity granting the waiver.  The report must be published on the 
        entity's a state Web site, and copies must be provided to the 
        chairs of the house ways and means and senate finance committees 
        and to the legislative reference library. 
           Sec. 12.  Laws 2002, chapter 220, article 10, section 38, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXCEPTIONS.] Subdivision 1 does not apply to: 
           (1) an employee at a state correctional facility; 
           (2) an employee of the department of corrections who 
        provides direct services to offenders; 
           (3) an employee of state-operated services under the 
        department of human services; 
           (4) a student in a work-study position worker; or 
           (2) (5) a position that is necessary to perform essential 
        government services; or 
           (6) an employee who is paid entirely with federal funds or 
        a special revenue fund, or whose costs are entirely recovered 
        from nonstate entities, or a combination of them. 
           A determination under clause (2) (5) must be made by the 
        speaker of the house of representatives with respect to house 
        employees, the chair of the committee on rules and 
        administration with respect to senate employees, and the 
        legislative coordinating commission with respect to its 
        employees, by a constitutional officer with respect to employees 
        of the constitutional office, and by the governor with respect 
        to any other employee covered by this section.  Exceptions 
        granted under clause (2) (5) must be reported monthly by the 
        entity granting the exception.  The reports must be published on 
        the entity's Web site, and copies must be provided to the chairs 
        of the house ways and means and senate finance committees and to 
        the legislative reference library.  
           Sec. 13.  Laws 2002, chapter 220, article 10, section 38, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ANTICIPATED SAVINGS.] The legislature 
        anticipates that application of this section to executive branch 
        agencies and to the Minnesota state colleges and universities 
        will result in savings to the general fund of 
        $40,000,000 $29,736,000 by June 30, 2003.  If the governor 
        determines that application of this section will not result 
        in $40,000,000 $29,736,000 in savings to the general fund by 
        June 30, 2003, the governor must make proportional reductions in 
        executive agency operating budgets necessary to achieve these 
        savings.  If the governor makes proportional reductions to 
        executive agency operating budgets to achieve the required 
        savings, the governor shall exclude from the reductions: 
           (1) the department of corrections with respect to employees 
        at state correctional institutions or who provide direct 
        services to offenders; and 
           (2) the department of human services with respect to 
        state-operated services. 
           Sec. 14.  Laws 2002, chapter 220, article 10, section 39, 
        is amended to read: 
           Sec. 39.  [SAVINGS ARE ADDITIONAL.] 
           Savings achieved in sections 36 to 38 from the freeze in 
        state hiring or the reduction in the number of state contracts 
        for professional or technical services are in addition to 
        reductions in spending required by other sections of this 
        article act. 
           Sec. 15.  [NONPROFIT GRANT AND CONTRACT DECISIONS.] 
           Subdivision 1.  [FISCAL YEAR 2002 PROCESSING.] (a) This 
        subdivision applies when: 
           (1) a state agency has delayed its final decision on 
        whether to enter into a grant or contract with a nonprofit 
        corporation to spend money appropriated for the fiscal year 
        ending June 30, 2002, pending elimination of the state budget 
        deficit; and 
           (2) the nonprofit corporation has provided services based 
        on an appropriation that names the nonprofit corporation or 
        based on a grant award letter from a state agency to the 
        nonprofit corporation.  
           (b) In a circumstance described in paragraph (a), within 15 
        business days after final enactment of this act the state agency 
        must: 
           (1) process the grant or contract with the nonprofit 
        corporation; and 
           (2) issue payment to the nonprofit corporation for services 
        already provided. 
           Subd. 2.  [FISCAL YEAR 2002 RETROACTIVITY.] A contract 
        encumbered or a grant awarded by a state agency to a nonprofit 
        corporation for services rendered in the fiscal year ending June 
        30, 2002, is retroactive to the date that services were first 
        provided under the contract or grant. 
           Subd. 3.  [FISCAL YEAR 2003.] A contract encumbered or a 
        grant awarded by a state agency to a nonprofit corporation for 
        services rendered in the fiscal year ending June 30, 2003, is 
        retroactive to the date that services were first provided under 
        the contract or grant. 
           Sec. 16.  [VOTING EQUIPMENT GRANTS.] 
           Within 30 days after the effective date of this section, 
        the commissioner of administration must make voting equipment 
        grants authorized by Minnesota Statutes 2001 Supplement, section 
        204B.48, to the full extent of appropriations available for 
        these grants under Laws 2001, First Special Session chapter 10, 
        article 1, section 12, subdivision 7, as amended by Laws 2002, 
        chapter 220, article 10, section 10, subdivision 8. 
           Sec. 17.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.

                                   ARTICLE 8
                     CANCELLATIONS; CASH FLOW; TRANSFERS IN
           Section 1.  Minnesota Statutes 2001 Supplement, section 
        62J.694, subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION.] (a) The medical education 
        endowment fund is created in the state treasury.  The state 
        board of investment shall invest the fund under section 11A.24.  
        All earnings of the fund must be credited to the fund.  The 
        principal of the fund must be maintained inviolate, except that 
        the principal may be used to make expenditures from the fund for 
        the purposes specified in this section when the market value of 
        the fund falls below 105 percent of the cumulative total of the 
        tobacco settlement payments received by the state and credited 
        to the tobacco settlement fund under section 16A.87, subdivision 
        2.  For purposes of this section, "principal" means an amount 
        equal to the cumulative total of the tobacco settlement payments 
        received by the state and credited to the tobacco settlement 
        fund under section 16A.87, subdivision 2.  
           (b) If the commissioner of finance determines that probable 
        receipts to the general fund will be sufficient to meet the need 
        for expenditures from the general fund for a fiscal biennium, 
        after using the cash reserves of the tobacco use prevention and 
        local public health endowment fund, excluding an amount 
        sufficient to meet the annual appropriations in section 144.395, 
        subdivision 2, the commissioner may use cash reserves of the 
        medical education endowment fund, excluding the amounts needed 
        to meet the appropriations described in subdivisions 2 and 2a, 
        to pay expenses of the general fund.  If cash reserves are 
        transferred to the general fund to meet cash flow needs, the 
        amount transferred, plus interest at a rate comparable to the 
        rate earned by the state on invested treasurer's cash, as 
        determined monthly by the commissioner, must be returned to the 
        endowment fund as soon as sufficient cash balances are available 
        in the general fund, but in any event before the end of the 
        fiscal biennium.  An amount necessary to pay the interest is 
        appropriated from the general fund.  If cash reserves of the 
        endowment fund are used to pay expenses for the general fund, 
        notwithstanding subdivision 2, paragraph (d), the academic 
        health center shall be held harmless to the extent possible.  
        When determining the fair market value of the fund, for the 
        purposes described in subdivisions 2 and 2a, the value of the 
        cash reserves transferred to the general fund must be included 
        in the determination.  
           (c) The academic health center account is created as a 
        separate account in the medical education endowment fund.  The 
        account is invested under paragraph (a).  All earnings of the 
        account must be credited to the account.  The principal of the 
        account must be maintained inviolate, except that the principal 
        may be used to make expenditures from the account for the 
        purposes specified in subdivision 2a when the value of the 
        account falls below an amount equal to deposits made to the 
        account under section 16A.87, subdivision 3, paragraph (b). 
           Sec. 2.  Minnesota Statutes 2000, section 79.251, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ASSIGNED RISK PLAN REVIEW BOARD.] (a) (1) 
        An assigned risk plan review board is created for the purposes 
        of review of the operation of section 79.252 and this section.  
        The board shall have all the usual powers and authorities 
        necessary for the discharge of its duties under this section and 
        may contract with individuals in discharge of those duties.  
           (2) The board shall consist of six members to be appointed 
        by the commissioner of commerce.  Three members shall be 
        insureds holding policies or contracts of coverage issued 
        pursuant to subdivision 4.  Two members shall be insurers 
        licensed pursuant to section 60A.06, subdivision 1, clause (5), 
        paragraph (b).  The commissioner shall be the sixth member and 
        shall vote. 
           Initial appointments shall be made by September 1, 1981, 
        and terms shall be for three years duration.  Removal, the 
        filling of vacancies and compensation of the members other than 
        the commissioner shall be as provided in section 15.059.  
           (3) The assigned risk plan review board shall audit the 
        reserves established (a) for individual cases arising under 
        policies and contracts of coverage issued under subdivision 4 
        and (b) for the total book of business issued under subdivision 
        4.  If the board determines on the basis of an audit that there 
        is an excess surplus in the assigned risk plan, it must notify 
        the commissioner of finance who shall transfer assets of the 
        plan equal to the excess surplus to the budget reserve account 
        in the general fund. 
           (4) The assigned risk plan review board shall monitor the 
        operations of section 79.252 and this section and shall 
        periodically make recommendations to the commissioner, and to 
        the governor and legislature when appropriate, for improvement 
        in the operation of those sections.  
           (5) All insurers and self-insurance administrators issuing 
        policies or contracts under subdivision 4 shall pay to the 
        commissioner a .25 percent assessment on premiums for policies 
        and contracts of coverage issued under subdivision 4 for the 
        purpose of defraying the costs of the assigned risk plan review 
        board.  Proceeds of the assessment shall be deposited in the 
        state treasury and credited to the general fund. 
           (6) The assigned risk plan and the assigned risk plan 
        review board shall not be deemed a state agency.  
           (b) As used in this subdivision, "excess surplus" means the 
        amount of assigned risk plan assets in excess of the amount 
        needed to pay all current liabilities of the plan, including, 
        but not limited to: 
           (1) administrative expenses; 
           (2) benefit claims; and 
           (3) if the assigned risk plan is dissolved under 
        subdivision 8, the amounts that would be due insurers who have 
        paid assessments to the plan. 
           Sec. 3.  Minnesota Statutes 2000, section 144.395, 
        subdivision 1, as amended by Laws 2002, chapter 220, article 13, 
        section 6, is amended to read: 
           Subdivision 1.  [CREATION.] (a) The tobacco use prevention 
        and local public health endowment fund is created in the state 
        treasury.  The state board of investment shall invest the fund 
        under section 11A.24.  All earnings of the fund must be credited 
        to the fund.  The principal of the fund must be maintained 
        inviolate, except that the principal may be used to make 
        expenditures from the fund for the purposes specified in this 
        section when the market value of the fund falls below 105 
        percent of the cumulative total of the tobacco settlement 
        payments received by the state and credited to the tobacco 
        settlement fund under section 16A.87, subdivision 2.  For 
        purposes of this section, "principal" means an amount equal to 
        the cumulative total of the tobacco settlement payments received 
        by the state and credited to the tobacco settlement fund under 
        section 16A.87, subdivision 2.  
           (b) If the commissioner of finance determines that probable 
        receipts to the general fund will not be sufficient to meet the 
        need for expenditures from the general fund for a fiscal 
        biennium, the commissioner may use cash reserves of the tobacco 
        use prevention and local public health endowment fund, excluding 
        an amount sufficient to meet the annual appropriations in 
        subdivision 2, to pay expenses of the general fund.  If cash 
        reserves are transferred to the general fund to meet cash flow 
        needs, the cash flow transfers amount transferred, plus interest 
        at a rate comparable to the rate earned by the state on invested 
        treasurer's cash, as determined monthly by the commissioner, 
        must be returned to the endowment fund as soon as sufficient 
        cash balances are available in the general fund, but in any 
        event before the end of the fiscal biennium.  Any interest 
        earned on cash flow transfers from the endowment fund accrues to 
        the endowment fund and not to the general fund.  An amount 
        necessary to pay the interest is appropriated from the general 
        fund.  If cash reserves of the endowment fund are used to pay 
        expenses for the general fund, the recipients of the grants 
        shall be held harmless to the extent possible in the following 
        order:  (1) local public health; (2) local tobacco prevention; 
        and (3) statewide tobacco prevention.  When determining the fair 
        market value of the fund, for the purposes described in 
        subdivision 2, the value of the cash reserves transferred to the 
        general fund must be included in the determination.  
           Sec. 4.  Laws 2002, chapter 220, article 13, section 7, is 
        amended to read: 
           Sec. 7.  [BALANCES CANCELED TO GENERAL FUND.] 
           The unobligated balances in the following general fund 
        accounts created in the sections of Minnesota Statutes indicated 
        are canceled to the general fund in the fiscal years indicated: 
           (1) the budget reserve account, Minnesota Statutes, section 
        16A.152, subdivision 1a, estimated to be $653,000,000, in fiscal 
        year 2002; 
           (2) the local government aid reform account, Minnesota 
        Statutes, section 16A.1523, estimated to be $14,000,000, in 
        fiscal year 2003; 
           (3) the tax relief account, Minnesota Statutes, section 
        16A.1522, subdivision 4, estimated to be $158,148,000, in fiscal 
        year 2004 2003; and 
           (4) $195,000,000 $350,000,000 of the unobligated balance in 
        the cash flow account in Minnesota Statutes, section 16A.152, 
        subdivision 1. 
           Sec. 5.  Laws 2002, chapter 220, article 13, section 9, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ASSIGNED RISK PLAN.] By June 30, 2002, the 
        commissioner of finance shall transfer $120,000,000 $134,000,000 
        in assets of the assigned risk plan created under Minnesota 
        Statutes, section 79.252, to the general fund.  $25,100,000 is 
        appropriated from the general fund to the commissioner of 
        finance to fund the settlement of the lawsuit entitled Danny's 
        Trannys, Inc. et al. v. State, et al., Ramsey County District 
        Court No. C7-00-5714, and to reimburse the tort claims account 
        for amounts paid to implement settlement of this lawsuit. 
           Sec. 6.  Laws 2002, chapter 220, article 13, section 9, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SPECIAL COMPENSATION FUND.] After June 1, 2003, 
        but no later than June 30, 2003, the commissioner of finance 
        shall transfer $230,000,000 $250,000,000 in assets of the excess 
        surplus account of the special compensation fund created under 
        Minnesota Statutes, section 176.129, to the general fund. 
           Sec. 7.  [BALANCES DEPOSITED IN BUDGET RESERVE.] 
           Notwithstanding Minnesota Statutes, section 16A.1522, any 
        positive unrestricted general fund balance on June 30, 2003, 
        must be allocated to the budget reserve account in the general 
        fund. 
           Sec. 8.  [EFFECTIVE DATE.] 
           This article is effective the day following final 
        enactment, except that section 2 is effective January 1, 2003, 
        and sections 1 and 3 are effective July 1, 2003. 

                                   ARTICLE 9
                    HEALTH AND HUMAN SERVICES APPROPRIATIONS 
        Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
           The dollar amounts shown in the columns marked 
        "APPROPRIATIONS" are added to or, if shown in parentheses, are 
        subtracted from the appropriations in Laws 2001, First Special 
        Session chapter 9, and Laws 2002, chapter 220, or other law, and 
        are appropriated from the general fund, or any other fund named, 
        to the agencies and for the purposes specified in this article, 
        to be available for the fiscal years indicated for each 
        purpose.  The figures "2002" and "2003" used in this article 
        mean that the appropriation or appropriations listed under them 
        are available for the fiscal year ending June 30, 2002, or June 
        30, 2003, respectively.  
                                SUMMARY BY FUND
                                  2002          2003           TOTAL
        General  
        Forecast 
        Adjustments           $47,032,000    $26,019,000    $73,051,000
        Nonforecast             1,660,000    (26,554,000)   (24,894,000)
        Health Care
        Access                 (2,605,000)    (4,318,000)    (6,923,000)
        Federal TANF           (7,383,000)     8,896,000      1,513,000 
        State Government
        Special Revenue           -0-              4,000          4,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2002         2003 
        Sec. 2.  COMMISSIONER OF
        HUMAN SERVICES
        Subdivision 1.  Total
        Appropriation                     $   38,704,000 $    3,143,000 
                      Summary by Fund
        General              48,692,000    (1,435,000)
        Health Care
        Access               (2,605,000)   (4,318,000)
        Federal TANF         (7,383,000)    8,896,000
        Subd. 2.  Children's
        Grants                   
        General                 -0-        (4,748,000)
        [FAMILY PRESERVATION AND CHILDREN'S 
        MENTAL HEALTH GRANTS.] This 
        appropriation includes a reduction of 
        $6,548,000 in family preservation and 
        children's mental health grants due to 
        changes in allocations and an increase 
        of $1,800,000 in local collaboratives 
        wraparound services coordination 
        grants.  The increased appropriation 
        for coordination grants shall become 
        part of base level funding for the 
        biennium beginning July 1, 2003. 
        Subd. 3.  Basic Health Care
        Grants
        General              10,999,000     6,126,000
        Health Care
        Access               (2,605,000)   (4,318,000)
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) MinnesotaCare Grants
        Health Care
        Access               (2,605,000)   (4,318,000)
        [MINNESOTACARE ELIGIBILITY 
        DETERMINATION CARRYOVER.] The 
        appropriation for the biennium 
        beginning July 1, 2001, in Laws 2001, 
        First Special Session chapter 9, 
        article 17, section 2, subdivision 7, 
        paragraph (b), for activities related 
        to processing MinnesotaCare 
        applications and determining applicant 
        eligibility shall not cancel but shall 
        be available until June 30, 2005.  
        (b) MA Basic Health Care
        Grants - Families and Children
        General               7,437,000    (5,285,000)
        (c) MA Basic Health Care
        Grants - Elderly and Disabled
        General                (779,000)    7,476,000
        (d) General Assistance
        Medical Care Grants
        General               2,681,000     5,080,000
        (e) Health Care Grants -
        Other Assistance
        General               1,660,000    (1,145,000)
        [U SPECIAL KIDS PROGRAM.] Of this 
        appropriation, $350,000 in fiscal year 
        2002 is immediately available to the 
        commissioner to be transferred 
        immediately to the University of 
        Minnesota for the U Special Kids 
        program.  The money may be used to 
        match private grants.  The money shall 
        be used to provide physician-supervised 
        medical case management services for up 
        to 50 Minnesota children in the program 
        who are eligible for medical 
        assistance.  Any unspent portion of 
        this appropriation shall not cancel but 
        shall be available for these purposes 
        until June 30, 2005.  This is a onetime 
        appropriation and shall not become part 
        of base level funding for the 2004-2005 
        biennium. 
        [HIV/AIDS DRUG REBATES.] For the fiscal 
        year ending June 30, 2003, $1,150,000 
        of the general fund appropriations for 
        HIV/AIDS grants and services that are 
        no longer needed as a result of greater 
        than anticipated collections under the 
        AIDS drug assistance program rebate 
        must be used to meet funding needs of 
        the state prescription drug program. 
        [ADAP FUNDING.] For the fiscal year 
        ending June 30, 2003, $1,150,000 from 
        the AIDS drug assistance program (ADAP) 
        rebate program shall be used to meet 
        the needs of the HIV/AIDS grants and 
        services program. 
        Subd. 4.  State-Operated
        Services
        General                   -0-      4,000,000 
        [STATE-OPERATED SERVICES DEDICATED 
        REVENUE ACCOUNTS.] The commissioner of 
        human services shall provide the chairs 
        of the house and senate health and 
        human services finance committees 
        copies of all dedicated revenue account 
        quarterly and annual financial 
        statements that are reviewed by the 
        state-operated services governing 
        board.  The annual financial statement 
        must include a summary of revenues, 
        expenditures, obligations, and cash 
        balances.  The description of cash 
        balances must specifically identify 
        cash balances included in funded 
        depreciation accounts and in cash flow 
        reserves for 120 days of operating 
        expense.  The annual financial 
        statement must clearly delineate any 
        amount of cash reserve that is in 
        excess of requirements for funded 
        depreciation and 120 days of operating 
        expense.  Quarterly financial 
        statements must be available to the 
        chairs within 30 days of the closing 
        date for that quarter.  The annual 
        financial statement must be available 
        by August 15 of each year.  
        [ONETIME APPROPRIATION.] Of the 
        appropriation for fiscal year 2003, 
        $4,000,000 is from the general fund to 
        the commissioner of human services for 
        state-operated services.  This is a 
        onetime appropriation and shall not 
        become part of base level funding.  
        [STATE-OPERATED SERVICES STUDY.] The 
        commissioner of human services, in 
        consultation with community 
        representatives, shall evaluate 
        strategies to consolidate the delivery 
        of state-operated services.  Strategies 
        shall be considered in the context of 
        other community-based services 
        options.  By January 15, 2003, the 
        commissioner shall provide 
        recommendations to the 2003 legislature 
        that result from this evaluation.  
        [ONETIME REDUCTION TO SHARED SERVICES 
        DEDICATED REVENUES.] For fiscal year 
        2003 only, $564,000 of fund balances 
        within the accounts established under 
        Minnesota Statutes, section 246.57, 
        subdivision 1, shall be transferred to 
        the general fund.  
        Subd. 5.  Continuing Care 
        Grants
        [FUNDING USAGE.] Up to 75 percent of 
        the fiscal year 2004 appropriations for 
        family preservation grants, 
        developmental disability 
        semi-independent living services, 
        developmental disability family 
        support, adult mental health grants, 
        and children's mental health grants may 
        be used to fund calendar year 2003 
        allocations for these programs, with 
        the resulting calendar year funding 
        pattern continuing into the future.  
        Appropriation reductions associated 
        with this shift are one time only.  
        General              27,896,000   (4,863,000)
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Medical Assistance
        Long-Term Care Waivers and
        Home Care Grants
        General              26,054,000    26,552,000
        (b) Medical Assistance
        Long-Term Care Facilities
        Grants
        General               1,815,000      (736,000)
        (c) Group Residential
        Housing Grants
        General                  27,000       689,000
        (d) Chemical Dependency 
        Entitlement Grants
        General                  -0-       (1,000,000)
        [ADDITIONAL CONSOLIDATED CHEMICAL 
        DEPENDENCY TREATMENT FUND RESERVE 
        TRANSFER.] In addition to the amount 
        transferred in Laws 2002, chapter 220, 
        article 17, section 2, subdivision 6, 
        paragraph (e), an additional $7,000,000 
        of funds available in the consolidated 
        chemical dependency treatment fund 
        general reserve account is transferred 
        to the general fund in fiscal year 2003.
        (e) Community Social
        Service Grants         
        General                  -0-      (13,730,000)
        (f) Mental Health 
        Grants  
        General                  -0-      (13,635,000)
        This reduction is one time only. 
        (g) Community Support
        Grants 
        General                  -0-       (3,003,000)
        Subd. 6.  Economic
        Support Grants
        General               9,797,000    (1,950,000)
        Federal TANF         (7,383,000)    8,896,000
        The amounts that may be spent from the 
        appropriation for each purpose are as 
        follows: 
        (a) Assistance to Families
        Grants
        General               8,712,000    (3,740,000)
        Federal TANF         (7,383,000)    8,803,000
        [AUTHORITY TO CARRYFORWARD AUTHORIZED 
        TRANSFER.] The $11,000,000 in TANF 
        funds authorized for transfer to title 
        XX of the federal Social Security Act 
        grants in fiscal year 2003 by Laws 
        1999, chapter 245, article 1, section 
        2, subdivision 11, are available for 
        expenditure in fiscal year 2004. 
        (b) General Assistance
        Grants
        General               1,361,000     1,779,000
        (c) Economic Support - 
        Other Assistance
        Federal TANF            -0-            93,000
        [TANF TRANSFER TO THE DEPARTMENT OF 
        CHILDREN, FAMILIES, AND LEARNING.] Of 
        the TANF appropriation, $93,000 in 
        fiscal year 2003 is appropriated to the 
        commissioner of children, families, and 
        learning for the purposes of Minnesota 
        Statutes, section 119B.05.  The 
        commissioner of human services shall 
        authorize a sufficient transfer of 
        funds from the state's federal TANF 
        block grant to the state's federal 
        child care development fund block grant 
        to meet this appropriation. 
        (d) Minnesota Supplemental
        Aid Grants
        General                (276,000)       11,000
        Sec. 3.  COMMISSIONER OF HEALTH
        Subdivision 1.  Total Appropriation      -0-              4,000
                      Summary by Fund
        State Government
        Special Revenue         -0-             4,000  
        Subd. 2.  Family and Provider 
        Compliance    
        State Government
        Special Revenue         -0-             4,000
        [REGISTRATION COSTS.] This 
        appropriation in fiscal year 2003 is to 
        the commissioner for the costs of 
        registering establishments under 
        Minnesota Statutes, section 144D.025. 
        Sec. 4.  VETERANS NURSING
        HOMES BOARD 
                      Summary by Fund
        General                 -0-           900,000
        [DEFICIENCY APPROPRIATION.] The 
        appropriation to the veterans nursing 
        homes board for fiscal year 2003 is for 
        a deficiency in board operations.  This 
        is a onetime appropriation and shall 
        not become part of base level funding 
        for the 2004-2005 biennium. 
           Sec. 5.  [VETERANS NURSING HOMES BOARD FUNDING.] 
           (a) Notwithstanding Minnesota Statutes, section 16B.31, 
        subdivision 7, on July 1, 2002, the commissioner of 
        administration shall transfer to the veterans nursing homes 
        board any remaining portion of the payments received from 
        contractors for the mold damage at the Luverne facility. 
           (b) Notwithstanding the provisions of Minnesota Statutes, 
        section 16A.151, any payments made during fiscal year 2003 from 
        contractors to settle legal issues regarding the mold damage at 
        the Luverne facility are appropriated to the veterans nursing 
        homes board. 
           (c) Total appropriations to the veterans nursing homes 
        board under this section shall not exceed $500,000. 
           Sec. 6.  [EXEMPTIONS FROM REDUCTION IN CONTRACT 
        EXPENDITURES AND FROM HIRING FREEZE.] 
           For fiscal year 2003, the department of human services is 
        exempt from the hiring freeze established in Laws 2002, chapter 
        220, article 10, section 38, as amended by article 7, section 
        12, and the contract moratorium established in Laws 2002, 
        chapter 220, article 10, section 37, as amended by article 7, 
        section 11, and by Laws 2002, chapter 364, section 30, as it 
        relates to the establishment and implementation of a 
        supplemental drug rebate program.  
           Sec. 7.  [INCARCERATION REPORT.] 
           By February 1, 2003, the commissioner of corrections must 
        report to the chairs and ranking minority members of the house 
        of representatives and senate committees having jurisdiction 
        over criminal justice and judiciary finance divisions 
        alternatives for dealing with offenders who actually serve less 
        than one year in prison.  This report shall include capital and 
        operating costs, possible partnerships, renting beds from public 
        or private facilities, and current prison capacities.  
           Sec. 8.  [FISCAL 2003 TANF MAINTENANCE OF EFFORT.] 
           The commissioner of human services must ensure that the 
        maintenance of effort amount used in the MFIP forecast of 
        November 2002 and February 2003 is not less than $188,937,000 
        with respect to fiscal year 2003. 
           Sec. 9.  [SUNSET OF UNCODIFIED LANGUAGE.] 
           All uncodified language contained in this article expires 
        June 30, 2003, unless a different expiration date is explicit. 
           Sec. 10.  [EFFECTIVE DATE.] 
           Except as otherwise provided in this article, this article 
        is effective the day following final enactment. 

                                   ARTICLE 10 
                           HEALTH AND HUMAN SERVICES 
           Section 1.  Minnesota Statutes 2000, section 13.05, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LIMITATIONS ON COLLECTION AND USE OF DATA.] 
        Private or confidential data on an individual shall not be 
        collected, stored, used, or disseminated by political 
        subdivisions, statewide systems, or state agencies for any 
        purposes other than those stated to the individual at the time 
        of collection in accordance with section 13.04, except as 
        provided in this subdivision. 
           (a) Data collected prior to August 1, 1975, and which have 
        not been treated as public data, may be used, stored, and 
        disseminated for the purposes for which the data was originally 
        collected or for purposes which are specifically approved by the 
        commissioner as necessary to public health, safety, or welfare. 
           (b) Private or confidential data may be used and 
        disseminated to individuals or agencies specifically authorized 
        access to that data by state, local, or federal law enacted or 
        promulgated after the collection of the data. 
           (c) Private or confidential data may be used and 
        disseminated to individuals or agencies subsequent to the 
        collection of the data when the responsible authority 
        maintaining the data has requested approval for a new or 
        different use or dissemination of the data and that request has 
        been specifically approved by the commissioner as necessary to 
        carry out a function assigned by law. 
           (d) Private data may be used by and disseminated to any 
        person or agency if the individual subject or subjects of the 
        data have given their informed consent.  Whether a data subject 
        has given informed consent shall be determined by rules of the 
        commissioner.  Informed consent shall not be deemed to have been 
        given by an individual subject of the data by the signing of any 
        statement authorizing any person or agency to disclose 
        information about the individual to an insurer or its authorized 
        representative, unless the statement is: 
           (1) in plain language; 
           (2) dated; 
           (3) specific in designating the particular persons or 
        agencies the data subject is authorizing to disclose information 
        about the data subject; 
           (4) specific as to the nature of the information the 
        subject is authorizing to be disclosed; 
           (5) specific as to the persons or agencies to whom the 
        subject is authorizing information to be disclosed; 
           (6) specific as to the purpose or purposes for which the 
        information may be used by any of the parties named in clause 
        (5), both at the time of the disclosure and at any time in the 
        future; 
           (7) specific as to its expiration date which should be 
        within a reasonable period of time, not to exceed one year 
        except in the case of authorizations given in connection with 
        applications for (i) life insurance or noncancelable or 
        guaranteed renewable health insurance and identified as such, 
        two years after the date of the policy or (ii) medical 
        assistance under chapter 256B or MinnesotaCare under chapter 
        256L, which shall be ongoing during all terms of eligibility, 
        for individual education plan health-related services provided 
        by a school district under section 125A.21, subdivision 2. 
           The responsible authority may require a person requesting 
        copies of data under this paragraph to pay the actual costs of 
        making, certifying, and compiling the copies. 
           (e) Private or confidential data on an individual may be 
        discussed at a meeting open to the public to the extent provided 
        in section 13D.05.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 2.  Minnesota Statutes 2001 Supplement, section 
        241.021, subdivision 4, is amended to read: 
           Subd. 4.  [HEALTH CARE.] The commissioner of corrections 
        shall provide professional health care to persons confined in 
        institutions under the control of the commissioner of 
        corrections and pay the costs of their care in hospitals and 
        other medical facilities not under the control of the 
        commissioner of corrections.  All reimbursements for these 
        health care services shall be deposited in the general fund.  
        The commissioner of corrections is authorized to contract 
        with or reimburse entities, including health care management 
        companies, to provide health care to inmates, at reimbursement 
        rates equal to medical assistance unless otherwise negotiated.  
        With respect to these contracts, these entities shall not be 
        regulated as, or otherwise considered to be, health plan 
        companies as defined in section 62Q.01, subdivision 4. 
           Sec. 3.  Minnesota Statutes 2000, section 241.44, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [GRANTS.] The ombudsman may apply for and receive 
        grants from public and private entities for purposes of carrying 
        out the ombudsman's powers and duties under sections 241.41 to 
        241.45. 
           Sec. 4.  Minnesota Statutes 2000, section 256.9657, 
        subdivision 1, as amended by Laws 2002, chapter 220, article 14, 
        section 5, is amended to read: 
           Subdivision 1.  [NURSING HOME LICENSE SURCHARGE.] (a) 
        Effective July 1, 1993, each non-state-operated nursing home 
        licensed under chapter 144A shall pay to the commissioner an 
        annual surcharge according to the schedule in subdivision 4.  
        The surcharge shall be calculated as $620 per licensed bed.  If 
        the number of licensed beds is reduced, the surcharge shall be 
        based on the number of remaining licensed beds the second month 
        following the receipt of timely notice by the commissioner of 
        human services that beds have been delicensed.  The nursing home 
        must notify the commissioner of health in writing when beds are 
        delicensed.  The commissioner of health must notify the 
        commissioner of human services within ten working days after 
        receiving written notification.  If the notification is received 
        by the commissioner of human services by the 15th of the month, 
        the invoice for the second following month must be reduced to 
        recognize the delicensing of beds.  Beds on layaway status 
        continue to be subject to the surcharge.  The commissioner of 
        human services must acknowledge a medical care surcharge appeal 
        within 30 days of receipt of the written appeal from the 
        provider. 
           (b) Effective July 1, 1994, the surcharge in paragraph (a) 
        shall be increased to $625. 
           (c) Effective August 15, 2003, the surcharge under 
        paragraph (b) shall be increased by an amount necessary to 
        ensure a net gain to the general fund of $9,620,000 during 
        fiscal year 2004 as a result of: 
           (1) the total transfers anticipated during the fiscal year 
        ending June 30, 2004, under section 256B.19, subdivision 1d, 
        paragraph (c); 
           (2) the county nursing home payment adjustments under 
        section 256B.431, subdivision 23, paragraph (c); 
           (3) the surcharges under this paragraph; and 
           (4) the nursing facility rate increases under section 
        256B.431, subdivision 37. 
        The increase under this paragraph shall not exceed $365 per bed. 
           (d) Effective August 15, 2004 2002, the surcharge under 
        paragraph (c) (b) shall be equal to an amount necessary to 
        ensure a net gain to the general fund each fiscal year of 
        $10,228,000 as a result of: increased to $990. 
           (1) the total transfers anticipated during the fiscal year 
        under section 256B.19, subdivision 1d, paragraph (c); 
           (2) the county nursing home payment adjustments under 
        section 256B.431, subdivision 23, paragraph (c); 
           (3) the surcharges under this paragraph; and 
           (4) the nursing facility rate increases under section 
        256B.431, subdivision 37. 
        The surcharge under this paragraph shall not exceed $365 per bed.
           Sec. 5.  Minnesota Statutes 2000, section 256B.431, 
        subdivision 23, as amended by Laws 2002, chapter 220, article 
        14, section 9, is amended to read: 
           Subd. 23.  [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a) 
        Beginning in 1994, the commissioner shall pay a nursing home 
        payment adjustment on May 31 after noon to a county in which is 
        located a nursing home that, as of January 1 of the previous 
        year on that date, was county-owned and operated, with the 
        county named as licensee by the commissioner of health, and had 
        over 40 beds and medical assistance occupancy in excess of 50 
        percent during the reporting year ending September 30, 1991.  
        The adjustment shall be an amount equal to $16 per calendar day 
        multiplied by the number of beds licensed in the facility as of 
        September 30, 1991. 
           (b) Payments under paragraph (a) are excluded from medical 
        assistance per diem rate calculations.  These payments are 
        required notwithstanding any rule prohibiting medical assistance 
        payments from exceeding payments from private pay residents.  A 
        facility receiving a payment under paragraph (a) may not 
        increase charges to private pay residents by an amount 
        equivalent to the per diem amount payments under paragraph (a) 
        would equal if converted to a per diem. 
           (c) Beginning in 2002, in addition to any payment under 
        paragraph (a), the commissioner shall pay to a nursing facility 
        described in paragraph (a) an adjustment in an amount equal to 
        $29.55 per calendar day multiplied by the number of beds 
        licensed in the facility on that date.  The provisions of 
        paragraphs (a) and (b) apply to payments under this paragraph.  
           (d) The commissioner may reduce payments under paragraph (c)
        based on the commissioner's determination of Medicare upper 
        payment limits.  Any adjustments must be proportional to 
        adjustments made under section 256B.19, subdivision 1d, 
        paragraph (d). 
           Sec. 6.  Minnesota Statutes 2000, section 256B.431, 
        subdivision 37, as added by Laws 2002, chapter 220, article 14, 
        section 10, is amended to read: 
           Subd. 37.  [NURSING HOME RATE INCREASES EFFECTIVE JULY 1, 
        2003 2002.] For rate years beginning on or after July 1, 2003 
        2002, the commissioner shall provide to each nursing home 
        reimbursed under this section or section 256B.434 an increase in 
        each case mix payment rate equal to the increase in the per-bed 
        surcharge paid under section 256.9657, subdivision 1, paragraph 
        (c) or (d), divided by 365 and further divided by .80.  The 
        increase under this subdivision shall be added following the 
        determination of the payment rate for the home under this 
        chapter.  The increase shall not be subject to any annual 
        percentage increase. 
           Sec. 7.  Minnesota Statutes 2001 Supplement, section 
        256B.5013, subdivision 1, as amended by Laws 2002, chapter 220, 
        article 14, section 14, is amended to read: 
           Subdivision 1.  [VARIABLE RATE ADJUSTMENTS.] (a) For rate 
        years beginning on or after October 1, 2000, when there is a 
        documented increase in the needs of a current ICF/MR recipient, 
        the county of financial responsibility may recommend a variable 
        rate to enable the facility to meet the individual's increased 
        needs.  Variable rate adjustments made under this subdivision 
        replace payments for persons with special needs under section 
        256B.501, subdivision 8, and payments for persons with special 
        needs for crisis intervention services under section 256B.501, 
        subdivision 8a.  Effective July 1, 2003, facilities with a base 
        rate above the 50th percentile of the statewide average 
        reimbursement rate for a Class A facility or Class B facility, 
        whichever matches the facility licensure, are not eligible for a 
        variable rate adjustment.  Variable rate adjustments may not 
        exceed a 12-month period, except when approved for purposes 
        established in paragraph (b), clause (1).  Variable rate 
        adjustments approved solely on the basis of changes on a 
        developmental disabilities screening document will end June 30, 
        2002. 
           (b) A variable rate may be recommended by the county of 
        financial responsibility for increased needs in the following 
        situations: 
           (1) a need for resources due to an individual's full or 
        partial retirement from participation in a day training and 
        habilitation service when the individual:  (i) has reached the 
        age of 65 or has a change in health condition that makes it 
        difficult for the person to participate in day training and 
        habilitation services over an extended period of time because it 
        is medically contraindicated; and (ii) has expressed a desire 
        for change through the mental retardation and related conditions 
        screening process under section 256B.092; 
           (2) a need for additional resources for intensive 
        short-term programming which is necessary prior to an 
        individual's discharge to a less restrictive, more integrated 
        setting; 
           (3) a demonstrated medical need that significantly impacts 
        the type or amount of services needed by the individual; or 
           (4) a demonstrated behavioral need that significantly 
        impacts the type or amount of services needed by the individual. 
           (c) The county of financial responsibility must justify the 
        purpose, the projected length of time, and the additional 
        funding needed for the facility to meet the needs of the 
        individual.  
           (d) The facility shall provide a quarterly report to the 
        county case manager on the use of the variable rate funds and 
        the status of the individual on whose behalf the funds were 
        approved.  The county case manager will forward the facility's 
        report with a recommendation to the commissioner to approve or 
        disapprove a continuation of the variable rate. 
           (e) Funds made available through the variable rate process 
        that are not used by the facility to meet the needs of the 
        individual for whom they were approved shall be returned to the 
        state. 
           Sec. 8.  Minnesota Statutes 2000, section 256E.06, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PAYMENTS TO COUNTIES.] The commissioner of human 
        services shall make payments for community social services to 
        each county in four installments per on or before July 10 of 
        each year.  The commissioner of human services may certify the 
        payments for the first three months of a calendar year based on 
        estimates of the unduplicated number of persons receiving 
        Minnesota family investment program assistance, general 
        assistance, and medical assistance for the prior year.  The 
        following three payments shall be adjusted to reflect the actual 
        unduplicated number of persons who received Minnesota family 
        investment program assistance, general assistance, and medical 
        assistance as required by subdivision 1.  The commissioner shall 
        ensure that the pertinent payment of the allotment for that 
        quarter is made to each county on the first working day after 
        the end of each quarter of the calendar year, except for the 
        last quarter of the calendar year.  The commissioner shall 
        ensure that each county receives its payment of the allotment 
        for that quarter no later than the last working day of that 
        quarter.  This scheduling of payments does not require 
        compliance with subdivision 10.  
           Sec. 9.  Minnesota Statutes 2001 Supplement, section 
        256J.425, subdivision 3, is amended to read: 
           Subd. 3.  [HARD-TO-EMPLOY PARTICIPANTS.] An assistance unit 
        subject to the time limit in section 256J.42, subdivision 1, in 
        which any participant has received 60 counted months of 
        assistance, is eligible to receive months of assistance under a 
        hardship extension if the participant belongs to any of the 
        following groups: 
           (1) a person who is diagnosed by a licensed physician, 
        psychological practitioner, or other qualified professional, as 
        mentally retarded or mentally ill, and that condition prevents 
        the person from obtaining or retaining unsubsidized employment; 
           (2) a person who: 
           (i) has been assessed by a vocational specialist or the 
        county agency to be unemployable for purposes of this 
        subdivision; or 
           (ii) has an IQ below 80 who has been assessed by a 
        vocational specialist or a county agency to be employable, but 
        not at a level that makes the participant eligible for an 
        extension under subdivision 4 or, in the case of a 
        non-English-speaking person for whom it is not possible to 
        provide a determination due to language barriers or absence of 
        culturally appropriate assessment tools, is determined by a 
        qualified professional to have an IQ below 80.  A person is 
        considered employable if positions of employment in the local 
        labor market exist, regardless of the current availability of 
        openings for those positions, that the person is capable of 
        performing; or 
           (3) a person who is determined by the county agency to be 
        learning disabled or, in the case of a non-English-speaking 
        person for whom it is not possible to provide a medical 
        diagnosis due to language barriers or absence of culturally 
        appropriate assessment tools, is determined by a qualified 
        professional to have a learning disability.  If a rehabilitation 
        plan for the person is developed or approved by the county 
        agency, the plan must be incorporated into the employment plan.  
        However, a rehabilitation plan does not replace the requirement 
        to develop and comply with an employment plan under section 
        256J.52.  For purposes of this section, "learning disabled" 
        means the applicant or recipient has a disorder in one or more 
        of the psychological processes involved in perceiving, 
        understanding, or using concepts through verbal language or 
        nonverbal means.  The disability must severely limit the 
        applicant or recipient in obtaining, performing, or maintaining 
        suitable employment.  Learning disabled does not include 
        learning problems that are primarily the result of visual, 
        hearing, or motor handicaps; mental retardation; emotional 
        disturbance; or due to environmental, cultural, or economic 
        disadvantage; or 
           (4) a person who is a victim of family violence as defined 
        in section 256J.49, subdivision 2, and who is participating in 
        an alternative employment plan under section 256J.49, 
        subdivision 1a.  
           Sec. 10.  Minnesota Statutes 2001 Supplement, section 
        256J.425, subdivision 4, is amended to read: 
           Subd. 4.  [EMPLOYED PARTICIPANTS.] (a) An assistance unit 
        subject to the time limit under section 256J.42, subdivision 1, 
        in which any participant has received 60 months of assistance, 
        is eligible to receive assistance under a hardship extension if 
        the participant belongs to: 
           (1) a one-parent assistance unit in which the participant 
        is participating in work activities for at least 30 hours per 
        week, of which an average of at least 25 hours per week every 
        month are spent participating in employment; or 
           (2) a two-parent assistance unit in which the participants 
        are participating in work activities for at least 55 hours per 
        week, of which an average of at least 45 hours per week every 
        month are spent participating in employment; or 
           (3) an assistance unit in which a participant is 
        participating in employment for fewer hours than those specified 
        in clause (1), and the participant submits verification from a 
        health care provider, in a form acceptable to the commissioner, 
        stating that the number of hours the participant may work is 
        limited due to illness or disability, as long as the participant 
        is participating in employment for at least the number of hours 
        specified by the health care provider.  The participant must be 
        following the treatment recommendations of the health care 
        provider providing the verification.  The commissioner shall 
        develop a form to be completed and signed by the health care 
        provider, documenting the diagnosis and any additional 
        information necessary to document the functional limitations of 
        the participant that limit work hours.  If the participant is 
        part of a two-parent assistance unit, the other parent must be 
        treated as a one-parent assistance unit for purposes of meeting 
        the work requirements under this subdivision. 
           For purposes of this section, employment means: 
           (1) unsubsidized employment under section 256J.49, 
        subdivision 13, clause (1); 
           (2) subsidized employment under section 256J.49, 
        subdivision 13, clause (2); 
           (3) on-the-job training under section 256J.49, subdivision 
        13, clause (4); 
           (4) an apprenticeship under section 256J.49, subdivision 
        13, clause (19); 
           (5) supported work.  For purposes of this section, 
        "supported work" means services supporting a participant on the 
        job which include, but are not limited to, supervision, job 
        coaching, and subsidized wages; 
           (6) a combination of (1) to (5); or 
           (7) child care under section 256J.49, subdivision 13, 
        clause (25), if it is in combination with paid employment. 
           (b) If a participant is complying with a child protection 
        plan under chapter 260C, the number of hours required under the 
        child protection plan count toward the number of hours required 
        under this subdivision.  
           (c) The county shall provide the opportunity for subsidized 
        employment to participants needing that type of employment 
        within available appropriations. 
           (d) To be eligible for a hardship extension for employed 
        participants under this subdivision, a participant in a 
        one-parent assistance unit or both parents in a two-parent 
        assistance unit must be in compliance for at least ten out of 
        the 12 months immediately preceding the participant's 61st month 
        on assistance.  If only one parent in a two-parent assistance 
        unit fails to be in compliance ten out of the 12 months 
        immediately preceding the participant's 61st month, the county 
        shall give the assistance unit the option of disqualifying the 
        noncompliant parent.  If the noncompliant participant is 
        disqualified, the assistance unit must be treated as a 
        one-parent assistance unit for the purposes of meeting the work 
        requirements under this subdivision and the assistance unit's 
        MFIP grant shall be calculated using the shared household 
        standard under section 256J.08, subdivision 82a. 
           (e) The employment plan developed under section 256J.52, 
        subdivision 5, for participants under this subdivision must 
        contain the number of hours specified in paragraph (a) related 
        to employment and work activities.  The job counselor and the 
        participant must sign the employment plan to indicate agreement 
        between the job counselor and the participant on the contents of 
        the plan. 
           (f) Participants who fail to meet the requirements in 
        paragraph (a), without good cause under section 256J.57, shall 
        be sanctioned or permanently disqualified under subdivision 6.  
        Good cause may only be granted for that portion of the month for 
        which the good cause reason applies.  Participants must meet all 
        remaining requirements in the approved employment plan or be 
        subject to sanction or permanent disqualification.  
           (g) If the noncompliance with an employment plan is due to 
        the involuntary loss of employment, the participant is exempt 
        from the hourly employment requirement under this subdivision 
        for one month.  Participants must meet all remaining 
        requirements in the approved employment plan or be subject to 
        sanction or permanent disqualification.  This exemption is 
        available to one-parent assistance units two times in a 12-month 
        period, and two-parent assistance units, two times per parent in 
        a 12-month period. 
           (h) This subdivision expires on June 30, 2004. 
           Sec. 11.  Minnesota Statutes 2001 Supplement, section 
        256J.425, is amended by adding a subdivision to read: 
           Subd. 4a.  [HARDSHIP EXTENSION PENDING DOCUMENTATION.] If 
        the documentation needed to determine if a participant is 
        eligible for a hardship extension under subdivision 2 or 3 is 
        not available by the 60th month, the county agency may extend 
        the participant pending receipt of the documentation if the 
        county believes the participant is likely to qualify for a 
        hardship extension and the participant is cooperating with 
        efforts to obtain the documentation.  If the participant is 
        found to be not eligible for an extension, the participant may 
        be responsible for an overpayment. 
           Sec. 12.  Minnesota Statutes 2001 Supplement, section 
        256J.425, subdivision 5, is amended to read: 
           Subd. 5.  [ACCRUAL OF CERTAIN EXEMPT MONTHS.] (a) A 
        participant who received TANF assistance that counted towards 
        the federal 60-month time limit while the participant was exempt 
        under section 256J.56, paragraph (a), clause (7), from 
        employment and training services requirements and who is no 
        longer eligible for assistance under a hardship extension under 
        subdivision 2, paragraph (a), clause (3), is eligible for 
        assistance under a hardship extension for a period of time equal 
        to the number of months that were counted toward the federal 
        60-month time limit while the participant was exempt under 
        section 256J.56, paragraph (a), clause (7), from the employment 
        and training services requirements. 
           (b) A participant who received TANF assistance that counted 
        towards the federal 60-month time limit while the participant 
        met the state time limit exemption criteria under section 
        256J.42, subdivision 4 or 5, is eligible for assistance under a 
        hardship extension for a period of time equal to the number of 
        months that were counted toward the federal 60-month time limit 
        while the participant met the state time limit exemption 
        criteria under section 256J.42, subdivision 5. 
           (c) A participant who received TANF assistance that counted 
        towards the federal 60-month time limit while the participant 
        was exempt under section 256J.56, paragraph (a), clause (3), 
        from employment and training services requirements, who 
        demonstrates at the time of the case review required under 
        section 256J.42, subdivision 6, that the participant met the 
        exemption criteria under section 256J.56, paragraph (a), clause 
        (7), during one or more months the participant was exempt under 
        section 256J.56, paragraph (a), clause (3), before or after July 
        1, 2002, is eligible for assistance under a hardship extension 
        for a period of time equal to the number of months that were 
        counted toward the federal 60-month time limit during the time 
        the participant met the criteria under section 256J.56, 
        paragraph (a), clause (7).  At the time of the case review, a 
        county agency must explain to the participant the basis for 
        receiving a hardship extension based on the accrual of exempt 
        months.  The participant must provide documentation necessary to 
        enable the county agency to determine whether the participant is 
        eligible to receive a hardship extension based on the accrual of 
        exempt months or authorize a county agency to verify the 
        information. 
           Sec. 13.  Minnesota Statutes 2000, section 256L.01, 
        subdivision 4, is amended to read: 
           Subd. 4.  [GROSS INDIVIDUAL OR GROSS FAMILY INCOME.] (a) 
        "Gross individual or gross family income" for farm and nonfarm 
        self-employed means income calculated using as the baseline the 
        adjusted gross income reported on the applicant's federal income 
        tax form for the previous year and adding back in reported 
        depreciation, carryover loss, and net operating loss amounts 
        that apply to the business in which the family is currently 
        engaged.  
           (b) "Gross individual or gross family income" for farm 
        self-employed means income calculated using as the baseline the 
        adjusted gross income reported on the applicant's federal income 
        tax form for the previous year and adding back in reported 
        depreciation amounts that apply to the business in which the 
        family is currently engaged.  
           (c) Applicants shall report the most recent financial 
        situation of the family if it has changed from the period of 
        time covered by the federal income tax form.  The report may be 
        in the form of percentage increase or decrease. 
           Sec. 14.  Laws 2001, First Special Session chapter 9, 
        article 2, section 74, is amended to read: 
           Sec. 74.  [ELIGIBILITY EXCEPTION TO THE PRESCRIPTION DRUG 
        PROGRAM.] 
           Notwithstanding the requirements of Minnesota Statutes, 
        section 256.955, subdivision 2, paragraph (d), from March 1, 
        2001, to June 30, 2002 2003, the definition of a "qualified 
        individual" in the prescription drug program established under 
        Minnesota Statutes, section 256.955, shall include an individual 
        who: 
           (1) was enrolled in the prescription drug program prior to 
        March 1, 2001; 
           (2) was enrolled in a Medicare risk plan prior to March 1, 
        2001, to which an annual prescription drug benefit of $400 was 
        added on March 1, 2001; and 
           (3) meets the requirements described in Minnesota Statutes, 
        section 256.955, subdivision 2, paragraph (d), clauses (1) and 
        (5), and subdivision 2a. 
        The prescription benefit offered by the Medicare risk plan shall 
        be primary to benefits provided under the prescription drug 
        program. 

                                   ARTICLE 11
                     GENERAL FUND CONVERSION TO BOND FUNDS
           Section 1.  [INTENT.] 
           This article intends to return to the unreserved general 
        fund $75,043,000 by changing the fund source of the projects 
        listed in this article in the amounts shown in sections 2 to 14, 
        by decreasing the appropriation from the general fund and by 
        appropriating an equal amount from the aggregate of the bond 
        proceeds fund and the transportation fund.  This action changes 
        the designation of the fund sources made under the cumulative 
        effect of Laws 1998, chapter 404; Laws 1999, chapter 250; and 
        Laws 2000, chapters 479 and 492.  This article also makes a new 
        appropriation of $77,000 from the bond proceeds fund for bond 
        sale expenses in connection with the bonds authorized in this 
        article. 
        Sec. 2.  [CAPITAL IMPROVEMENT APPROPRIATIONS.] 
           The sums in the column under "APPROPRIATIONS" are 
        appropriated from the bond proceeds fund or other named fund to 
        the state agencies or officials indicated, to be spent for 
        public purposes, including to acquire and to better public land 
        and buildings and other public improvements of a capital nature, 
        as specified in this article. 
                                    SUMMARY
        UNIVERSITY OF MINNESOTA                            $    500,000
        CHILDREN, FAMILIES, AND LEARNING                        500,000
        NATURAL RESOURCES                                     6,973,000
        WATER AND SOIL RESOURCES BOARD                          300,000
        ADMINISTRATION                                       43,350,000
        CAPITOL AREA ARCHITECTURAL AND
        PLANNING BOARD                                          250,000
        AMATEUR SPORTS COMMISSION                               690,000
        TRANSPORTATION                                       13,590,000
        HUMAN SERVICES                                        1,500,000
        CORRECTIONS                                             250,000
        TRADE AND ECONOMIC DEVELOPMENT                        5,590,000
        MINNESOTA HISTORICAL SOCIETY                          1,550,000
        BOND SALE EXPENSES                                       77,000
        TOTAL                                            $   75,120,000
        Bond Proceeds Fund                                   61,530,000
        Transportation Fund                                  13,590,000
                                                         APPROPRIATIONS
                                                         $             
        Sec. 3.  UNIVERSITY OF MINNESOTA                        500,000
        To the board of regents of the 
        University of Minnesota for 1998 Higher 
        Education Asset Preservation and 
        Replacement.  
        Sec. 4.  CHILDREN, FAMILIES, AND LEARNING               500,000
        To the commissioner of children, 
        families, and learning for 1998 Early 
        Childhood Learning Facilities.  
        Sec. 5.  NATURAL RESOURCES 
        Subdivision 1.  To the commissioner
        of natural resources for the purposes 
        specified in this section                             6,973,000
        Subd. 2.  1998 Park Building Rehabilitation             500,000
        Subd. 3.  1998 Park Betterment 
        and Rehabilitation                                      500,000
        Subd. 4.  1998 Forest Roads and Bridges                 750,000
        Subd. 5.  1998 Metro Greenways Acquisition            2,000,000
        Subd. 6.  Safe Harbors Program                        3,223,000
        Sec. 6.  BOARD OF WATER AND 
        SOIL RESOURCES                                          300,000
        To the board of water and soil 
        resources for local road replacement.  
        Sec. 7.  ADMINISTRATION 
        Subdivision 1.  To the commissioner of 
        administration for the purposes specified 
        in this section                                      45,350,000
        Subd. 2.  2000 Asset Preservation                       350,000
        Subd. 3.  2000 Bureau of Criminal 
        Apprehension Facility                                40,000,000
        Subd. 4.  2000 Property Acquisition                     450,000
        Subd. 5.  1998 Asset Preservation                     1,250,000
        Subd. 6.  1998 Real Property Acquisition              1,000,000
        Subd. 7.  1998 BCA Land Acquisition                     300,000
        Sec. 8.  CAPITOL AREA ARCHITECTURAL 
        AND PLANNING BOARD                                      250,000
        To the commissioner of administration 
        for the HHH Memorial.  
        Sec. 9.  AMATEUR SPORTS COMMISSION                      690,000
        To the amateur sports commission for 
        the Giants Ridge Facility.  
        Sec. 10.  TRANSPORTATION 
        Subdivision 1.  To the commissioner of 
        transportation for the purposes specified 
        in this section                                      13,590,000
        This appropriation is from the 
        transportation fund. 
        Subd. 2.  2000 County and Local Bridges              13,000,000
        Subd. 3.  1998 CSAH Highway 90                          590,000
        Sec. 11.  HUMAN SERVICES                              1,500,000
        To the commissioner of administration 
        for 1998 Asset Preservation.  
        Sec. 12.  CORRECTIONS                                   250,000
        To the commissioner of administration 
        for 1998 Asset Preservation.  
        Sec. 13.  TRADE AND ECONOMIC DEVELOPMENT              5,590,000
        To the commissioner of trade and 
        economic development for 2000 
        Wastewater Infrastructure.  
        Sec. 14.  MINNESOTA HISTORICAL SOCIETY
        Subdivision 1.  To the Minnesota 
        historical society for the purposes
        specified in this section                             1,550,000
        Subd. 2.  1998 Historic Site 
        Preservation and Repair                                 850,000
        Subd. 3.  Split Rock Lighthouse                         700,000
        Sec. 15.  BOND SALE EXPENSES                             77,000
        To the commissioner of finance for 
        bond sale expenses under Minnesota 
        Statutes, section 16A.641, subdivision 8.
           Sec. 16.  [IDENTICAL PROJECTS.] 
           The purpose and use of appropriations in this article are 
        for the same purpose and use and for identical projects as 
        authorized in Laws 1998, chapter 404; Laws 1999, chapter 250; 
        and Laws 2000, chapters 479 and 492.  Except for the fund source 
        of unspent parts of the appropriations listed in this article, 
        this article does not change or limit the purpose and use of the 
        appropriations and related requirements in Laws 1998, chapter 
        404; Laws 1999, chapter 250; and Laws 2000, chapters 479 and 492.
           Sec. 17.  [BOND SALE AUTHORIZATIONS.] 
           Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
        appropriated in this article from the bond proceeds fund, the 
        commissioner of finance shall sell and issue bonds of the state 
        in an amount up to $61,530,000 in the manner, upon the terms, 
        and with the effect prescribed by Minnesota Statutes, sections 
        16A.631 to 16A.675, and by the Minnesota Constitution, article 
        XI, sections 4 to 7. 
           Subd. 2.  [TRANSPORTATION FUND.] To provide the money 
        appropriated in this article from the transportation fund, the 
        commissioner of finance shall sell and issue bonds of the state 
        in an amount up to $13,590,000 in the manner, upon the terms, 
        and with the effect prescribed by Minnesota Statutes, sections 
        16A.631 to 16A.675, and by the Minnesota Constitution, article 
        XI, sections 4 to 7.  The proceeds of the bonds, except accrued 
        interest and any premium received on the sale of the bonds, must 
        be credited to a bond proceeds account in the state 
        transportation fund. 
           Sec. 18.  [CANCELLATION TO GENERAL FUND.] 
           Money appropriated from the general fund pursuant to 1998, 
        1999, and 2000 acts and not yet spent for the projects listed in 
        this article is canceled to the general fund in the amount shown 
        for each project. 
           Sec. 19.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.
           Presented to the governor May 15, 2002 
           Vetoed by the governor May 18, 2002, 7:20 p.m. 
           Reconsidered and approved by the legislature after the 
        governor's veto May 18, 2002

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