1.1                          A bill for an act 
  1.2             relating to education; providing for kindergarten 
  1.3             through grade 12 education including general education 
  1.4             revenue; education excellence; special programs; 
  1.5             facilities and technology; nutrition, school 
  1.6             accounting, and other programs; agency provisions; 
  1.7             deficiencies; local achievement testing; and technical 
  1.8             amendments; appropriating money; amending Minnesota 
  1.9             Statutes 2000, sections 16B.616, subdivision 4; 
  1.10            120A.05, by adding a subdivision; 120B.02; 120B.031, 
  1.11            subdivision 11; 120B.13, subdivision 1; 120B.30, 
  1.12            subdivision 1; 120B.31, subdivision 3; 120B.35; 
  1.13            121A.11, by adding subdivisions; 121A.41, subdivision 
  1.14            10; 121A.45, subdivision 2, by adding a subdivision; 
  1.15            121A.582; 121A.61, subdivision 2; 122A.06, by adding a 
  1.16            subdivision; 122A.09, subdivision 4; 122A.162; 
  1.17            122A.163; 122A.18, subdivisions 1, 2, 2a, 4, by adding 
  1.18            subdivisions; 122A.20, subdivision 2; 122A.21; 
  1.19            122A.26, subdivision 3; 122A.31; 122A.61, subdivision 
  1.20            1; 123B.03, subdivision 3; 123B.143, subdivision 1; 
  1.21            123B.42, subdivision 3; 123B.44, subdivision 6; 
  1.22            123B.53, subdivisions 1, 2, 4, 5; 123B.54; 123B.57, 
  1.23            subdivisions 3, 6, 8; 123B.71, subdivisions 1, 4, 8, 
  1.24            9; 123B.75, subdivision 5, by adding subdivisions; 
  1.25            123B.80, subdivision 1; 123B.92, by adding 
  1.26            subdivisions; 124D.10, subdivisions 1, 3, 4, 6, 8, 10, 
  1.27            14, 15, 19, 23, 25, by adding subdivisions; 124D.11, 
  1.28            subdivisions 4, 5, 9; 124D.128, subdivisions 1, 2, 3, 
  1.29            6; 124D.454, subdivision 11; 124D.65, subdivision 5; 
  1.30            124D.69, subdivision 1; 124D.74, subdivisions 1, 2, 3, 
  1.31            4, 6; 124D.75, subdivision 6; 124D.76; 124D.78, 
  1.32            subdivision 1; 124D.81, subdivisions 1, 3, 5, 6, 7; 
  1.33            124D.86, subdivisions 3, 6; 125A.023, subdivision 4; 
  1.34            125A.08; 125A.09, subdivision 3; 125A.11, subdivision 
  1.35            3; 125A.17; 125A.27, subdivision 15; 125A.76, 
  1.36            subdivisions 1, 2; 126C.05, subdivisions 1, 3, 5, 6, 
  1.37            15; 126C.10, subdivisions 1, 2, 3, 9, 20, 21, 22, 24, 
  1.38            25, 27, by adding a subdivision; 126C.12, subdivisions 
  1.39            2, 3, 4, 5, by adding a subdivision; 126C.13, 
  1.40            subdivision 1; 126C.15, subdivisions 1, 2, 5; 126C.16, 
  1.41            by adding a subdivision; 126C.17, subdivisions 1, 2, 
  1.42            5, 6, 9, 10, 11; 126C.23, subdivision 5; 126C.41, 
  1.43            subdivision 3; 126C.43, subdivision 3; 126C.63, 
  1.44            subdivision 8; 126C.69, subdivisions 2, 3, 9, 12, 15; 
  1.45            127A.05, subdivision 1; 127A.41, subdivisions 5, 8, 9; 
  1.46            127A.45, subdivision 12, by adding a subdivision; 
  2.1             127A.50, subdivision 2; 136D.281, subdivision 4; 
  2.2             136D.741, subdivision 4; 136D.88, subdivision 4; 
  2.3             179A.20, by adding a subdivision; 214.01, subdivision 
  2.4             3; 214.04, subdivisions 1, 3; 214.12, subdivision 1; 
  2.5             260A.01; 260C.163, subdivision 11; 475.53, subdivision 
  2.6             4; 475.61, subdivision 3; 626.556, subdivision 2; Laws 
  2.7             1992, chapter 499, article 7, section 31, as amended; 
  2.8             Laws 2000, chapter 489, article 2, sections 34, 36, 
  2.9             37, subdivision 3, 39, subdivision 2; Laws 2000, 
  2.10            chapter 489, article 3, sections 24, 25, subdivision 
  2.11            5; Laws 2000, chapter 489, article 5, section 21; Laws 
  2.12            2000, chapter 489, article 7, section 15, subdivision 
  2.13            3; proposing coding for new law in Minnesota Statutes, 
  2.14            chapters 120B; 122A; 123B; 124D; 127A; repealing 
  2.15            Minnesota Statutes 2000, sections 120B.031; 120B.31, 
  2.16            subdivisions 1, 2, 4; 123B.05; 123B.71, subdivisions 
  2.17            3, 10; 124D.07; 124D.1155; 124D.128, subdivision 7; 
  2.18            124D.32; 124D.85; 126C.01, subdivision 10; 126C.10, 
  2.19            subdivisions 3, 12, 23, 28; 126C.16, subdivision 2; 
  2.20            126C.17, subdivision 12; 126C.18; 126C.22; 126C.30; 
  2.21            126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 126C.36; 
  2.22            126C.42, subdivisions 2, 3; 126C.47; 127A.44; 
  2.23            135A.081; 136D.281, subdivision 8; 136D.741, 
  2.24            subdivision 8; 136D.88, subdivision 8; 136D.94; Laws 
  2.25            2000, chapter 254, section 30; Laws 2000, chapter 489, 
  2.26            article 1, section 18; Minnesota Rules, parts 
  2.27            3501.0300; 3501.0310; 3501.0320; 3501.0330; 3501.0340; 
  2.28            3501.0350; 3501.0370; 3501.0380; 3501.0390; 3501.0400; 
  2.29            3501.0410; 3501.0420; 3501.0430; 3501.0440; 3501.0441; 
  2.30            3501.0442; 3501.0443; 3501.0444; 3501.0445; 3501.0446; 
  2.31            3501.0447; 3501.0448; 3501.0449; 3501.0450; 3501.0460; 
  2.32            3501.0461; 3501.0462; 3501.0463; 3501.0464; 3501.0465; 
  2.33            3501.0466; 3501.0467; 3501.0468; 3501.0469. 
  2.34  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.35                             ARTICLE 1 
  2.36                     GENERAL EDUCATION REVENUE 
  2.37     Section 1.  Minnesota Statutes 2000, section 123B.143, 
  2.38  subdivision 1, is amended to read: 
  2.39     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
  2.40  maintaining a classified secondary school must employ a 
  2.41  superintendent who shall be an ex officio nonvoting member of 
  2.42  the school board.  The authority for selection and employment of 
  2.43  a superintendent must be vested in the board in all cases.  An 
  2.44  individual employed by a board as a superintendent shall have an 
  2.45  initial employment contract for a period of time no longer than 
  2.46  three years from the date of employment.  Any subsequent 
  2.47  employment contract must not exceed a period of three years.  A 
  2.48  board, at its discretion, may or may not renew an employment 
  2.49  contract.  A board must not, by action or inaction, extend the 
  2.50  duration of an existing employment contract.  Beginning 365 days 
  2.51  prior to the expiration date of an existing employment contract, 
  2.52  a board may negotiate and enter into a subsequent employment 
  3.1   contract to take effect upon the expiration of the existing 
  3.2   contract.  A subsequent contract must be contingent upon the 
  3.3   employee completing the terms of an existing contract.  If a 
  3.4   contract between a board and a superintendent is terminated 
  3.5   prior to the date specified in the contract, the board may not 
  3.6   enter into another superintendent contract with that same 
  3.7   individual that has a term that extends beyond the date 
  3.8   specified in the terminated contract.  A board may terminate a 
  3.9   superintendent during the term of an employment contract for any 
  3.10  of the grounds specified in section 122A.40, subdivision 9 or 13.
  3.11  A superintendent shall not rely upon an employment contract with 
  3.12  a board to assert any other continuing contract rights in the 
  3.13  position of superintendent under section 122A.40.  
  3.14  Notwithstanding the provisions of sections 122A.40, subdivision 
  3.15  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
  3.16  individual shall have a right to employment as a superintendent 
  3.17  based on order of employment in any district.  If two or more 
  3.18  districts enter into an agreement for the purchase or sharing of 
  3.19  the services of a superintendent, the contracting districts have 
  3.20  the absolute right to select one of the individuals employed to 
  3.21  serve as superintendent in one of the contracting districts and 
  3.22  no individual has a right to employment as the superintendent to 
  3.23  provide all or part of the services based on order of employment 
  3.24  in a contracting district. The superintendent of a district 
  3.25  shall perform the following:  
  3.26     (1) visit and supervise the schools in the district, report 
  3.27  and make recommendations about their condition when advisable or 
  3.28  on request by the board; 
  3.29     (2) recommend to the board employment and dismissal of 
  3.30  teachers; 
  3.31     (3) superintend school grading practices and examinations 
  3.32  for promotions; 
  3.33     (4) make reports required by the commissioner; 
  3.34     (5) by January 10, submit an annual report to the 
  3.35  commissioner in a manner prescribed by the commissioner, in 
  3.36  consultation with school districts, ~~identifying the expenditures~~ 
  4.1   ~~that the district requires to ensure an 80 percent and a 90~~ 
  4.2   ~~percent student passage rate on the basic standards test taken~~ 
  4.3   ~~in the eighth grade, identifying the amount of expenditures that~~ 
  4.4   ~~the district requires to ensure a 99 percent student passage~~ 
  4.5   ~~rate on the basic standards test by 12th grade, and~~ to identify 
  4.6   how much the district is cross-subsidizing programs with special 
  4.7   education~~, basic skills,~~ and general education revenue; and 
  4.8      (6) perform other duties prescribed by the board. 
  4.9      Sec. 2.  Minnesota Statutes 2000, section 123B.42, 
  4.10  subdivision 3, is amended to read: 
  4.11     Subd. 3.  [COST; LIMITATION.] (a) The cost per pupil of the 
  4.12  textbooks, individualized instructional or cooperative learning 
  4.13  materials, and standardized tests provided for in this section 
  4.14  for each school year must not exceed the statewide average 
  4.15  expenditure per pupil, adjusted pursuant to clause (b), by the 
  4.16  Minnesota public elementary and secondary schools for textbooks, 
  4.17  individualized instructional materials and standardized tests as 
  4.18  computed and established by the department by ~~March~~ February 1 
  4.19  of the preceding school year from the most recent public school 
  4.20  year data then available. 
  4.21     (b) The cost computed in clause (a) shall be increased by 
  4.22  an inflation adjustment equal to the percent of increase in the 
  4.23  formula allowance, pursuant to section 126C.10, subdivision 2, 
  4.24  from the second preceding school year to the current school year.
  4.25     (c) The commissioner shall allot to the districts or 
  4.26  intermediary service areas the total cost for each school year 
  4.27  of providing or loaning the textbooks, individualized 
  4.28  instructional or cooperative learning materials, and 
  4.29  standardized tests for the pupils in each nonpublic school.  The 
  4.30  allotment shall not exceed the product of the statewide average 
  4.31  expenditure per pupil, according to clause (a), adjusted 
  4.32  pursuant to clause (b), multiplied by the number of nonpublic 
  4.33  school pupils who make requests pursuant to this section and who 
  4.34  are enrolled as of September 15 of the current school year. 
  4.35     Sec. 3.  Minnesota Statutes 2000, section 123B.44, 
  4.36  subdivision 6, is amended to read: 
  5.1      Subd. 6.  [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 
  5.2   of computing maximum allotments for each school year pursuant to 
  5.3   this section, the average public school expenditure per pupil 
  5.4   for health services and the average public school expenditure 
  5.5   per secondary pupil for guidance and counseling services shall 
  5.6   be computed and established by the department by ~~March~~ February 
  5.7   1 of the preceding school year from the most recent public 
  5.8   school year data then available. 
  5.9      Sec. 4.  Minnesota Statutes 2000, section 123B.75, 
  5.10  subdivision 5, is amended to read: 
  5.11     Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
  5.12  settlement revenue" means the current, delinquent, and 
  5.13  manufactured home property tax receipts collected by the county 
  5.14  and distributed to the school district. 
  5.15     (b) In June of ~~each year~~ 2001, the school district must 
  5.16  recognize as revenue, in the fund for which the levy was made, 
  5.17  the lesser of:  
  5.18     (1) the sum of May, June, and July school district tax 
  5.19  settlement revenue received in that calendar year plus general 
  5.20  education aid according to section 126C.13, subdivision 4, 
  5.21  received in July and August of that calendar year; or 
  5.22     (2) the sum of: 
  5.23     (i) 31 percent of the referendum levy certified in the 
  5.24  prior calendar year according to section 126C.17, subdivision 9; 
  5.25  plus 
  5.26     (ii) the entire amount of the levy certified in the prior 
  5.27  calendar year according to sections 124D.86, subdivision 4, for 
  5.28  school districts receiving revenue under 124D.86, subdivision 3, 
  5.29  clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 
  5.30  paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 
  5.31  126C.48, subdivision 6.  
  5.32     (c) For fiscal year 2002 and later years, in June of each 
  5.33  year, the school district must recognize as revenue, in the fund 
  5.34  for which the levy was made, the lesser of: 
  5.35     (1) the sum of May, June, and July school district tax 
  5.36  settlement revenue received in that calendar year, plus general 
  6.1   education aid according to section 126C.13, subdivision 4, 
  6.2   received in July and August of that calendar year; or 
  6.3      (2) the sum of: 
  6.4      (i) the lesser of 50 percent of the referendum levy 
  6.5   certified in the prior calendar year according to section 
  6.6   126C.17, subdivision 9; or 31 percent of the referendum levy 
  6.7   certified according to section 126C.17, in calendar year 2000; 
  6.8   plus 
  6.9      (ii) the entire amount of the levy certified in the prior 
  6.10  calendar year according to section 124D.86, subdivision 4, for 
  6.11  school districts receiving revenue under sections 124D.86, 
  6.12  subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 
  6.13  1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 
  6.14  2; and 126C.48, subdivision 6. 
  6.15     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2001. 
  6.16     Sec. 5.  Minnesota Statutes 2000, section 123B.75, is 
  6.17  amended by adding a subdivision to read: 
  6.18     Subd. 6b.  [GENERAL EDUCATION AID.] If the amount to be 
  6.19  recognized as revenue under subdivision 5 exceeds the May, June, 
  6.20  and July school district tax settlement revenue received in that 
  6.21  calendar year, the district must recognize an amount of general 
  6.22  education aid equal to the difference between the total amount 
  6.23  to be recognized as revenue under subdivision 5, and the May, 
  6.24  June, and July school district tax settlement revenue received 
  6.25  in that calendar year as revenue in the previous fiscal year. 
  6.26     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2001. 
  6.27     Sec. 6.  Minnesota Statutes 2000, section 123B.92, is 
  6.28  amended by adding a subdivision to read: 
  6.29     Subd. 11.  [TRANSPORTATION RESERVE.] Each school district 
  6.30  must establish a reserve for pupil transportation and must 
  6.31  reserve an amount not less than the amount expended on pupil 
  6.32  transportation in the prior year.  The transportation reserve 
  6.33  must include regular transportation, between schools 
  6.34  transportation, integration, sparsity, nonpublic, and special 
  6.35  needs transportation.  This revenue may only be spent for 
  6.36  transportation purposes.  The board may adopt a written 
  7.1   resolution unreserving any specified portion of the general 
  7.2   education basic revenue otherwise reserved for transportation 
  7.3   purposes. 
  7.4      Sec. 7.  Minnesota Statutes 2000, section 123B.92, is 
  7.5   amended by adding a subdivision to read: 
  7.6      Subd. 12.  [BUS PURCHASE RESERVE.] Each school district 
  7.7   must reserve from the transportation reserve under subdivision 
  7.8   11 an amount equal to seven percent of the 15-year depreciation 
  7.9   schedule of the district's owned or contracted school bus fleet, 
  7.10  including specially equipped wheelchair lift school buses.  Each 
  7.11  school district must use this reserve for school bus purchases 
  7.12  or other transportation purposes. 
  7.13     Sec. 8.  Minnesota Statutes 2000, section 124D.69, 
  7.14  subdivision 1, is amended to read: 
  7.15     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
  7.16  program, eligible under section 124D.68, subdivision 3, 
  7.17  paragraph (d), or subdivision 4, operated by a private 
  7.18  organization that has contracted with a school district to 
  7.19  provide educational services for eligible pupils under section 
  7.20  124D.68, subdivision 2, the district contracting with the 
  7.21  private organization must reimburse the provider an amount equal 
  7.22  to at least ~~90~~ 95 percent of the district's average general 
  7.23  education less basic skills revenue per pupil unit times the 
  7.24  number of pupil units for pupils attending the program.  Basic 
  7.25  skills revenue shall be paid according to section 126C.10, 
  7.26  subdivision 4.  Compensatory revenue must be allocated according 
  7.27  to section 126C.15, subdivision 2.  For a pupil attending the 
  7.28  program part time, the revenue paid to the program must be 
  7.29  reduced proportionately, according to the amount of time the 
  7.30  pupil attends the program, and revenue paid to the district 
  7.31  shall be reduced accordingly.  Pupils for whom a district 
  7.32  provides reimbursement may not be counted by the district for 
  7.33  any purpose other than computation of general education 
  7.34  revenue.  If payment is made to a district or program for a 
  7.35  pupil under this section, the department must not make a payment 
  7.36  for the same pupil under section 124D.68, subdivision 9. 
  8.1      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  8.2   fiscal years 2002 and later. 
  8.3      Sec. 9.  Minnesota Statutes 2000, section 126C.05, 
  8.4   subdivision 1, is amended to read: 
  8.5      Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
  8.6   Minnesota resident pupil in average daily membership enrolled in 
  8.7   the district of residence, in another district under sections 
  8.8   123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
  8.9   124D.68; in a charter school under section 124D.10; or for whom 
  8.10  the resident district pays tuition under section 123A.18, 
  8.11  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  8.12  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
  8.13  125A.65, shall be counted according to this subdivision.  
  8.14     (a) A prekindergarten pupil with a disability who is 
  8.15  enrolled in a program approved by the commissioner and has an 
  8.16  individual education plan is counted as the ratio of the number 
  8.17  of hours of assessment and education service to 825 times 1.25 
  8.18  with a minimum average daily membership of 0.28, but not more 
  8.19  than 1.25 pupil units. 
  8.20     (b) A prekindergarten pupil who is assessed but determined 
  8.21  not to be handicapped is counted as the ratio of the number of 
  8.22  hours of assessment service to 825 times 1.25.  
  8.23     (c) A kindergarten pupil with a disability who is enrolled 
  8.24  in a program approved by the commissioner is counted as the 
  8.25  ratio of the number of hours of assessment and education 
  8.26  services required in the fiscal year by the pupil's individual 
  8.27  education program plan to 875, but not more than one. 
  8.28     (d) A kindergarten pupil who is not included in paragraph 
  8.29  (c) is counted as .557 of a pupil unit for fiscal year 2000 and 
  8.30  thereafter. 
  8.31     (e) A pupil who is in any of grades 1 to 3 is counted as 
  8.32  1.115 pupil units for fiscal year 2000 and thereafter. 
  8.33     (f) A pupil who is any of grades 4 to 6 is counted as 1.06 
  8.34  pupil units for fiscal year 1995 and thereafter. 
  8.35     (g) A pupil who is in any of grades 7 to 12 is counted as 
  8.36  1.3 pupil units.  
  9.1      (h) A pupil who is in the post-secondary enrollment options 
  9.2   program is counted as 1.3 pupil units.  
  9.3      Sec. 10.  Minnesota Statutes 2000, section 126C.05, 
  9.4   subdivision 3, is amended to read: 
  9.5      Subd. 3.  [~~COMPENSATION~~ REMEDIAL REVENUE PUPIL UNITS.] 
  9.6   ~~Compensation~~ (a) Remedial revenue pupil units ~~for fiscal year~~ 
  9.7   ~~1998 and thereafter~~ must be computed according to this 
  9.8   subdivision.  
  9.9      ~~(a)~~ (b) The ~~compensation~~ remedial revenue concentration 
  9.10  percentage for each building in a district equals the product of 
  9.11  100 times the ratio of:  
  9.12     (1) the sum of the number of pupils enrolled in the 
  9.13  building eligible to receive free lunch plus one-half of the 
  9.14  pupils eligible to receive reduced priced lunch on October 1 of 
  9.15  the previous fiscal year; to 
  9.16     (2) the number of pupils enrolled in the building on 
  9.17  October 1 of the previous fiscal year. 
  9.18     ~~(b)~~ (c) The ~~compensation~~ remedial revenue pupil weighting 
  9.19  factor for a building equals the lesser of one or the quotient 
  9.20  obtained by dividing the building's compensation revenue 
  9.21  concentration percentage by 80.0.  
  9.22     ~~(c)~~ (d) The ~~compensation~~ remedial revenue pupil units for a 
  9.23  building equals the product of:  
  9.24     (1) the sum of the number of pupils enrolled in the 
  9.25  building eligible to receive free lunch and one-half of the 
  9.26  pupils eligible to receive reduced priced lunch on October 1 of 
  9.27  the previous fiscal year; times 
  9.28     (2) the ~~compensation~~ remedial revenue pupil weighting 
  9.29  factor for the building; times 
  9.30     (3) .60. 
  9.31     ~~(d)~~ (e) Notwithstanding paragraphs ~~(a)~~ (b) to ~~(c)~~ (d), 
  9.32  for charter schools and contracted alternative programs in the 
  9.33  first year of operation, ~~compensation~~ remedial revenue pupil 
  9.34  units shall be computed using data for the current fiscal year.  
  9.35  If the charter school or contracted alternative program begins 
  9.36  operation after October 1, ~~compensatory~~ remedial revenue pupil 
 10.1   units shall be computed based on pupils enrolled on an alternate 
 10.2   date determined by the commissioner, and the ~~compensation~~ 
 10.3   remedial revenue pupil units shall be prorated based on the 
 10.4   ratio of the number of days of student instruction to 170 days. 
 10.5      ~~(e)~~ (f) The percentages in this subdivision must be based 
 10.6   on the count of individual pupils and not on a building average 
 10.7   or minimum.  
 10.8      (g) For fiscal years 2004 and later, statewide total 
 10.9   remedial revenue equals the amount of remedial revenue for 
 10.10  fiscal year 2003.  This amount is included in general education 
 10.11  revenue. 
 10.12     Sec. 11.  Minnesota Statutes 2000, section 126C.05, 
 10.13  subdivision 5, is amended to read: 
 10.14     Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
 10.15  for a district or charter school means the sum of: 
 10.16     (1) the number of pupil units served, according to 
 10.17  subdivision 7, plus 
 10.18     (2) pupil units according to subdivision 1 for whom the 
 10.19  district or charter school pays tuition under section 123A.18, 
 10.20  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 10.21  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 10.22  125A.65, minus 
 10.23     (3) pupil units according to subdivision 1 for whom the 
 10.24  district or charter school receives tuition under section 
 10.25  123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 10.26  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 10.27  125A.65. 
 10.28     (b) Adjusted marginal cost pupil units means the greater of:
 10.29     (1) the sum of ~~.77~~ .50 times the pupil units defined in 
 10.30  paragraph (a) for the current school year and ~~.23~~ .50 times the 
 10.31  pupil units defined in paragraph (a) for the previous school 
 10.32  year; or 
 10.33     (2) the number of adjusted pupil units defined in paragraph 
 10.34  (a) for the current school year. 
 10.35     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 10.36  fiscal years 2002 and later.  
 11.1      Sec. 12.  Minnesota Statutes 2000, section 126C.05, 
 11.2   subdivision 6, is amended to read: 
 11.3      Subd. 6.  [RESIDENT PUPIL UNITS.] (a) Resident pupil units 
 11.4   for a district means the number of pupil units according to 
 11.5   subdivision 1 residing in the district. 
 11.6      (b) Resident marginal cost pupil units means the greater of:
 11.7      (1) the sum of ~~.77~~ .50 times the pupil units defined in 
 11.8   paragraph (a) for the current year and ~~.23~~ .50 times the pupil 
 11.9   units defined in paragraph (a) for the previous school year; or 
 11.10     (2) the number of resident pupil units defined in paragraph 
 11.11  (a) for the current school year. 
 11.12     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 11.13  fiscal years 2002 and later. 
 11.14     Sec. 13.  Minnesota Statutes 2000, section 126C.10, 
 11.15  subdivision 1, is amended to read: 
 11.16     Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
 11.17  year ~~2000~~ 2002 and thereafter, the general education revenue for 
 11.18  each district equals the sum of the district's basic revenue, 
 11.19  basic skills revenue, training and experience revenue, secondary 
 11.20  sparsity revenue, elementary sparsity revenue, transportation 
 11.21  sparsity revenue, total operating capital revenue, equity 
 11.22  revenue, ~~referendum offset adjustment,~~ transition revenue, and 
 11.23  supplemental revenue. 
 11.24     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 11.25  fiscal year 2002. 
 11.26     Sec. 14.  Minnesota Statutes 2000, section 126C.10, 
 11.27  subdivision 2, is amended to read: 
 11.28     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 11.29  district equals the formula allowance times the adjusted 
 11.30  marginal cost pupil units for the school year.  ~~The formula~~ 
 11.31  ~~allowance for fiscal year 1998 is $3,581.  The formula allowance~~ 
 11.32  ~~for fiscal year 1999 is $3,530.  The formula allowance for~~ 
 11.33  ~~fiscal year 2000 is $3,740.~~  The formula allowance for fiscal 
 11.34  year 2001 ~~and subsequent fiscal years~~ is $3,964.  The formula 
 11.35  allowance for fiscal year 2002 is $4,050.  The formula allowance 
 11.36  for fiscal year 2003 and later is $4,175. 
 12.1      Sec. 15.  Minnesota Statutes 2000, section 126C.10, 
 12.2   subdivision 3, is amended to read: 
 12.3      Subd. 3.  [~~COMPENSATORY~~ REMEDIAL EDUCATION REVENUE.] For 
 12.4   fiscal year 2002 and later, the ~~compensatory~~ remedial education 
 12.5   revenue for each building in the district equals the formula 
 12.6   allowance for fiscal year 2001 times the ~~compensation~~ remedial 
 12.7   revenue pupil units computed according to section 126C.05, 
 12.8   subdivision 3.  Revenue shall be paid to the district and must 
 12.9   be allocated according to section 126C.15, subdivision 2. 
 12.10     Sec. 16.  Minnesota Statutes 2000, section 126C.10, 
 12.11  subdivision 9, is amended to read: 
 12.12     Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
 12.13  supplemental revenue allowance for fiscal year ~~1994~~ 2002 and 
 12.14  later fiscal years equals the district's supplemental 
 12.15  revenue allowance for fiscal year ~~1993 divided by the district's~~ 
 12.16  ~~1992-1993 resident pupil units~~ 2001. 
 12.17     (b) ~~A district's supplemental revenue allowance is reduced~~ 
 12.18  ~~for fiscal year 1995 and later according to subdivision 12.~~ 
 12.19     ~~(c)~~ A district's supplemental revenue equals the 
 12.20  supplemental revenue allowance, if any, times its adjusted 
 12.21  marginal cost pupil units for that year.  
 12.22     ~~(d) A district may cancel its supplemental revenue by~~ 
 12.23  ~~notifying the commissioner of education prior to June 30, 1994.~~  
 12.24  ~~A district that is reorganizing under section 123A.35, 123A.46,~~ 
 12.25  ~~or 123A.48 may cancel its supplemental revenue by notifying the~~ 
 12.26  ~~commissioner of children, families, and learning before July 1~~ 
 12.27  ~~of the year of the reorganization.  If a district cancels its~~ 
 12.28  ~~supplemental revenue according to this paragraph, its~~ 
 12.29  ~~supplemental revenue allowance for fiscal year 1993 for purposes~~ 
 12.30  ~~of subdivision 12 and section 124A.03, subdivision 3b, equals~~ 
 12.31  ~~zero.~~ 
 12.32     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 12.33  fiscal year 2002. 
 12.34     Sec. 17.  Minnesota Statutes 2000, section 126C.10, 
 12.35  subdivision 20, is amended to read: 
 12.36     Subd. 20.  [TRANSITION REVENUE ~~ADJUSTMENT~~.] A district's 
 13.1   transition revenue ~~adjustment~~ equals the district's transition 
 13.2   allowance times the adjusted marginal cost pupil units for the 
 13.3   school year. 
 13.4      Sec. 18.  Minnesota Statutes 2000, section 126C.10, 
 13.5   subdivision 21, is amended to read: 
 13.6      Subd. 21.  [TRANSITION LEVY ~~ADJUSTMENT~~.] A district's 
 13.7   ~~general education levy shall be adjusted by an amount equal to~~ 
 13.8   transition levy for fiscal year 2003 and later equals the 
 13.9   district's transition revenue times the lesser of 1 or the ratio 
 13.10  of its adjusted net tax capacity per adjusted marginal cost 
 13.11  pupil unit to $8,404. 
 13.12     Sec. 19.  Minnesota Statutes 2000, section 126C.10, 
 13.13  subdivision 22, is amended to read: 
 13.14     Subd. 22.  [TRANSITION AID ~~ADJUSTMENT~~.] A district's 
 13.15  transition aid ~~adjustment~~ is the difference between the 
 13.16  transition revenue and the transition levy. 
 13.17     Sec. 20.  Minnesota Statutes 2000, section 126C.10, 
 13.18  subdivision 24, is amended to read: 
 13.19     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 13.20  qualifies for equity revenue if: 
 13.21     (1) the school district's adjusted marginal cost pupil unit 
 13.22  amount of basic revenue, supplemental revenue, transition 
 13.23  revenue, and referendum revenue is less than the value of the 
 13.24  school district at or immediately above the ~~90th~~ 95th percentile 
 13.25  of school districts ~~in its equity region~~ for those revenue 
 13.26  categories; and 
 13.27     (2) the school district's administrative offices are not 
 13.28  located in a city of the first class on July 1, 1999. 
 13.29     (b) Equity revenue for a qualifying district ~~that receives~~ 
 13.30  ~~referendum revenue under section 126C.17, subdivision 4,~~ equals 
 13.31  the product of (1) the district's adjusted marginal cost pupil 
 13.32  units for that year; times (2) the sum of (i) ~~$10~~ $8, plus (ii) 
 13.33  ~~$30~~ $64, times the school district's equity index computed under 
 13.34  subdivision 27; times (3) the school district's small school 
 13.35  index number under subdivision 29. 
 13.36     (c) Equity revenue ~~for a qualifying district that does not~~ 
 14.1   ~~receive referendum revenue under section 126C.17, subdivision 4,~~ 
 14.2   ~~equals the product of the district's adjusted marginal cost~~ 
 14.3   ~~pupil units for that year times $10~~ must not exceed $150 times 
 14.4   the adjusted marginal cost pupil units for that year. 
 14.5      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 14.6   fiscal year 2002 and later. 
 14.7      Sec. 21.  Minnesota Statutes 2000, section 126C.10, 
 14.8   subdivision 25, is amended to read: 
 14.9      Subd. 25.  [~~REGIONAL~~ STATEWIDE EQUITY GAP.] The ~~regional~~ 
 14.10  statewide equity gap equals the difference between the value of 
 14.11  the school district at or immediately above the fifth percentile 
 14.12  of adjusted general revenue per adjusted marginal cost pupil 
 14.13  unit and the value of the school district at or immediately 
 14.14  above the ~~90th~~ 95th percentile of adjusted general revenue per 
 14.15  adjusted marginal cost pupil unit. 
 14.16     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 14.17  fiscal year 2002 and later. 
 14.18     Sec. 22.  Minnesota Statutes 2000, section 126C.10, 
 14.19  subdivision 27, is amended to read: 
 14.20     Subd. 27.  [DISTRICT EQUITY INDEX.] A district's equity 
 14.21  index equals the ratio of the sum of the district equity gap 
 14.22  amount to the ~~regional~~ statewide equity gap amount. 
 14.23     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 14.24  fiscal year 2002 and later. 
 14.25     Sec. 23.  Minnesota Statutes 2000, section 126C.10, is 
 14.26  amended by adding a subdivision to read: 
 14.27     Subd. 29.  [SMALL SCHOOL INDEX.] The small school index for 
 14.28  a district with 1,500 or fewer adjusted marginal cost pupil 
 14.29  units for that school year equals one plus the product of two 
 14.30  and the ratio of 200 to the district's adjusted marginal cost 
 14.31  pupil units for that year.  The small school index for a 
 14.32  district with more than 1,500 adjusted marginal cost pupil units 
 14.33  for that year equals 1.0.  
 14.34     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 14.35  fiscal year 2002 and later. 
 14.36     Sec. 24.  Minnesota Statutes 2000, section 126C.12, 
 15.1   subdivision 2, is amended to read: 
 15.2      Subd. 2.  [~~INSTRUCTOR DEFINED~~ DEFINITIONS.] ~~Primary~~ 
 15.3   ~~instructor~~ (a) "Classroom teacher" means a public employee 
 15.4   licensed by the board of teaching who is authorized to teach all 
 15.5   subjects to children in any grade in kindergarten through grade 
 15.6   6 and whose duties are full-time regular classroom instruction, 
 15.7   excluding a teacher for whom federal aids are received or for 
 15.8   whom categorical aids are received ~~pursuant to~~ under section 
 15.9   125A.76 or who is an itinerant teacher or provides instruction 
 15.10  outside of the regular classroom.  Except as provided in section 
 15.11  122A.68, subdivision 6, ~~instructor~~ classroom teacher does not 
 15.12  include supervisory and support personnel~~, except school social~~ 
 15.13  ~~workers as~~ defined in section 122A.15.  ~~An instructor~~ A 
 15.14  classroom teacher whose duties are less than full-time 
 15.15  instruction must be included as an equivalent only for the 
 15.16  number of hours of instruction in ~~grades~~ kindergarten through ~~6~~ 
 15.17  grade 3.  
 15.18     (b) "Class size" means the districtwide ratio at each grade 
 15.19  level of the number of full-time students in kindergarten 
 15.20  through grade 3 served at least 40 percent of the time in 
 15.21  regular classrooms to the number of full-time classroom teachers 
 15.22  in kindergarten through grade 3, determined as of October 1 of 
 15.23  each school year. 
 15.24     Sec. 25.  Minnesota Statutes 2000, section 126C.12, 
 15.25  subdivision 3, is amended to read: 
 15.26     Subd. 3.  [INSTRUCTION CONTACT TIME.] Instruction may be 
 15.27  provided by a ~~primary instructor,~~ classroom teacher or by a team 
 15.28  of ~~instructors~~ classroom teachers, or by a teacher resident 
 15.29  supervised by a ~~primary instructor~~ classroom teacher.  The 
 15.30  district must maximize ~~instructor~~ classroom teacher to learner 
 15.31  average instructional contact time in the core subjects of 
 15.32  reading and mathematics. 
 15.33     Sec. 26.  Minnesota Statutes 2000, section 126C.12, 
 15.34  subdivision 4, is amended to read: 
 15.35     Subd. 4.  [REVENUE USE.] (a) ~~Revenue must be used according~~ 
 15.36  ~~to either paragraph (b) or (c).~~ 
 16.1      ~~(b)~~ Revenue must be used to reduce and maintain the 
 16.2   district's ~~instructor to learner ratios~~ average class size in 
 16.3   kindergarten through grade ~~6~~ 3 to a level of ~~1~~ 17 to ~~17~~ 1 on 
 16.4   average in each of the respective grades.  ~~The district must~~ 
 16.5   ~~prioritize the use of the revenue to attain this level initially~~ 
 16.6   ~~in kindergarten and grade 1 and then through the subsequent~~ 
 16.7   ~~grades as revenue is available.~~  
 16.8      ~~(c) The revenue may be used to prepare and use an~~ 
 16.9   ~~individualized learning plan for each learner.~~  (b) A district 
 16.10  must not increase the ~~district wide instructor-to-learner ratios~~ 
 16.11  districtwide class sizes in other grades as a result of reducing 
 16.12  ~~instructor-to-learner ratios~~ class sizes in kindergarten through 
 16.13  grade ~~6~~ 3.  Revenue may not be used to provide instructor 
 16.14  preparation ~~time~~.  A district may use a portion of the revenue 
 16.15  reserved under this section to employ up to the same number of 
 16.16  full-time equivalent education assistants or aides as the 
 16.17  district employed during the 1992-1993 school year under 
 16.18  Minnesota Statutes 1992, section 124.331, subdivision 2 through 
 16.19  fiscal year 2002.  Beginning in fiscal year 2003, class size 
 16.20  reduction revenue may only be reserved to employ classroom 
 16.21  teachers contributing to lower class sizes in kindergarten 
 16.22  through grade 3. 
 16.23     Sec. 27.  Minnesota Statutes 2000, section 126C.12, 
 16.24  subdivision 5, is amended to read: 
 16.25     Subd. 5.  [ADDITIONAL REVENUE USE.] If the board of a 
 16.26  district determines that the district has achieved and is 
 16.27  maintaining the ~~instructor-to-learner ratios~~ class sizes 
 16.28  specified in subdivision 4 ~~and is using individualized learning~~ 
 16.29  ~~plans~~, the board may use the revenue to: 
 16.30     (1) reduce class size in grades 4, 5, and 6; or 
 16.31     (2) purchase instructional material ~~and~~, services, or 
 16.32  ~~provide staff development needed for reduced~~ 
 16.33  ~~instructor-to-learner ratios.  If additional revenue remains,~~ 
 16.34  ~~the district must use the revenue to improve program offerings,~~ 
 16.35  ~~including programs provided through interactive television,~~ 
 16.36  ~~throughout the district or other general education~~ 
 17.1   ~~purposes~~ technology. 
 17.2      Sec. 28.  Minnesota Statutes 2000, section 126C.12, is 
 17.3   amended by adding a subdivision to read: 
 17.4      Subd. 6.  [ANNUAL REPORT.] By December 1 of each year, 
 17.5   districts receiving revenue under subdivision 1 shall make 
 17.6   available to the public a report on the amount of revenue the 
 17.7   district has received and the use of the revenue.  This report 
 17.8   shall be in the form and manner determined by the commissioner 
 17.9   and shall include the district average class sizes in 
 17.10  kindergarten through grade 6 as of October 1 of the current 
 17.11  school year and the class sizes for each site serving 
 17.12  kindergarten through grade 6 students in the district.  A copy 
 17.13  of the report shall be filed with the commissioner by December 
 17.14  15. 
 17.15     Sec. 29.  Minnesota Statutes 2000, section 126C.13, 
 17.16  subdivision 1, is amended to read: 
 17.17     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 17.18  commissioner must establish the general education tax rate by 
 17.19  July 1 of each year for levies payable in the following year.  
 17.20  The general education tax capacity rate must be a rate, rounded 
 17.21  up to the nearest hundredth of a percent, that, when applied to 
 17.22  the adjusted net tax capacity for all districts, raises the 
 17.23  amount specified in this subdivision.  The general education tax 
 17.24  rate must be the rate that raises ~~$1,330,000,000~~ $1,361,000,000 
 17.25  for fiscal year 2001, and later fiscal years.  The general 
 17.26  education tax rate may not be changed due to changes or 
 17.27  corrections made to a district's adjusted net tax capacity after 
 17.28  the tax rate has been established. 
 17.29     Sec. 30.  Minnesota Statutes 2000, section 126C.15, 
 17.30  subdivision 1, is amended to read: 
 17.31     Subdivision 1.  [USE OF THE REVENUE.] The basic skills 
 17.32  revenue under section 126C.10, subdivision 4, and the portion of 
 17.33  the transition revenue adjustment under section 126C.10, 
 17.34  subdivision 20, attributable to the compensatory transition 
 17.35  allowance under section 126C.10, subdivision 19, paragraph (b), 
 17.36  must be reserved and used to meet the educational needs of 
 18.1   pupils who enroll under-prepared to learn and whose progress 
 18.2   toward meeting state or local content or performance standards 
 18.3   is below the level that is appropriate for learners of their 
 18.4   age.  Any of the following may be provided to meet these 
 18.5   learners' needs: 
 18.6      (1) direct instructional services under the assurance of 
 18.7   mastery program according to section 124D.66; 
 18.8      (2) remedial instruction in reading, language arts, 
 18.9   mathematics, other content areas, or study skills to improve the 
 18.10  achievement level of these learners; 
 18.11     (3) additional teachers and teacher aides to provide more 
 18.12  individualized instruction to these learners through individual 
 18.13  tutoring, lower instructor-to-learner ratios, or team teaching; 
 18.14     (4) a longer school day or week during the regular school 
 18.15  year or through a summer program that may be offered directly by 
 18.16  the site or under a performance-based contract with a 
 18.17  community-based organization; 
 18.18     (5) comprehensive and ongoing staff development consistent 
 18.19  with district and site plans according to section 122A.60, for 
 18.20  teachers, teacher aides, principals, and other personnel to 
 18.21  improve their ability to identify the needs of these learners 
 18.22  and provide appropriate remediation, intervention, 
 18.23  accommodations, or modifications; 
 18.24     (6) instructional materials and technology appropriate for 
 18.25  meeting the individual needs of these learners; 
 18.26     (7) programs to reduce truancy, encourage completion of 
 18.27  high school, enhance self-concept, provide health services, 
 18.28  provide nutrition services, provide a safe and secure learning 
 18.29  environment, provide coordination for pupils receiving services 
 18.30  from other governmental agencies, provide psychological services 
 18.31  to determine the level of social, emotional, cognitive, and 
 18.32  intellectual development, and provide counseling services, 
 18.33  guidance services, and social work services; 
 18.34     (8) bilingual programs, bicultural programs, and programs 
 18.35  for learners of limited English proficiency; 
 18.36     (9) all day kindergarten; 
 19.1      (10) extended school day and extended school year programs; 
 19.2   and 
 19.3      (11) substantial parent involvement in developing and 
 19.4   implementing remedial education or intervention plans for a 
 19.5   learner, including learning contracts between the school, the 
 19.6   learner, and the parent that establish achievement goals and 
 19.7   responsibilities of the learner and the learner's parent or 
 19.8   guardian~~; and~~ 
 19.9      ~~(12) other methods to increase achievement, as needed~~.  
 19.10     Sec. 31.  Minnesota Statutes 2000, section 126C.15, 
 19.11  subdivision 2, is amended to read: 
 19.12     Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 19.13  allocate its compensatory revenue to each school building in the 
 19.14  district where the children who have generated the revenue are 
 19.15  served. 
 19.16     (b) Notwithstanding paragraph (a), ~~for fiscal years 1999,~~ 
 19.17  ~~2000, and 2001, upon approval by the commissioner,~~ a district 
 19.18  may allocate up to five percent of the amount of compensatory 
 19.19  revenue that the district ~~would have~~ received ~~under Minnesota~~ 
 19.20  ~~Statutes 1996, section 124A.22, subdivision 3, for fiscal year~~ 
 19.21  ~~1998, computed using a basic formula allowance of $3,581~~ during 
 19.22  the previous fiscal year to school sites according to a plan 
 19.23  adopted by the school board. 
 19.24     (c) For the purposes of this section and section 126C.05, 
 19.25  subdivision 3, "building" means education site as defined in 
 19.26  section 123B.04, subdivision 1. 
 19.27     (d) If the pupil is served at a site other than one owned 
 19.28  and operated by the district, the revenue shall be paid to the 
 19.29  district and used for services for pupils who generate the 
 19.30  revenue.  
 19.31     Sec. 32.  Minnesota Statutes 2000, section 126C.15, 
 19.32  subdivision 5, is amended to read: 
 19.33     Subd. 5.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
 19.34  that receives basic skills revenue must submit a report 
 19.35  identifying the expenditures it incurred to meet the needs of 
 19.36  eligible learners under subdivision 1.  The report must conform 
 20.1   to uniform financial and reporting standards established for 
 20.2   this purpose.  Using valid and reliable data and measurement 
 20.3   criteria, the report also must determine whether increased 
 20.4   expenditures raised student achievement levels. 
 20.5      Sec. 33.  Minnesota Statutes 2000, section 126C.16, is 
 20.6   amended by adding a subdivision to read: 
 20.7      Subd. 4.  [REFERENDUM ALLOWANCE ADJUSTMENT.] Beginning in 
 20.8   fiscal year 2003, the referendum allowance determined for a 
 20.9   district under subdivision 3 is increased by an amount equal to 
 20.10  the reduction in the district's referendum allowance for fiscal 
 20.11  year 2001 under section 126C.17, subdivision 2.  The increased 
 20.12  allowance, as adjusted according to section 126C.17, subdivision 
 20.13  2, shall be used in computing a district's referendum revenue 
 20.14  for all later years for which the revenue is authorized. 
 20.15     Sec. 34.  Minnesota Statutes 2000, section 126C.17, 
 20.16  subdivision 1, is amended to read: 
 20.17     Subdivision 1.  [REFERENDUM ALLOWANCE.] A district's 
 20.18  referendum revenue allowance equals the ~~referendum revenue~~ 
 20.19  ~~authority for that year divided by its resident marginal cost~~ 
 20.20  ~~pupil units for that school year~~ sum of the allowance under 
 20.21  section 126C.16, subdivision 2, plus any additional allowance 
 20.22  per resident marginal cost pupil unit authorized under 
 20.23  subdivision 9 for fiscal year 2002 and later. 
 20.24     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 20.25  fiscal year 2002. 
 20.26     Sec. 35.  Minnesota Statutes 2000, section 126C.17, 
 20.27  subdivision 2, is amended to read: 
 20.28     Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 
 20.29  subdivision 1, a district's referendum allowance must not exceed 
 20.30  the greater of:  
 20.31     (1) the district's referendum allowance for fiscal year 
 20.32  1994 multiplied by the inflation factor established in paragraph 
 20.33  (b); 
 20.34     (2) ~~25~~ 35 percent of the formula allowance; or 
 20.35     (3) for a newly reorganized district created after July 1, 
 20.36  1994, the sum of the referendum revenue authority for the 
 21.1   reorganizing districts for the fiscal year preceding the 
 21.2   reorganization, divided by the sum of the resident marginal cost 
 21.3   pupil units of the reorganizing districts for the fiscal year 
 21.4   preceding the reorganization. 
 21.5      (b) The operating referendum inflation factor equals the 
 21.6   ratio of the consumer price index for urban consumers as 
 21.7   prepared by the United States Department of Labor, for the most 
 21.8   recently available year to the Consumer Price Index for urban 
 21.9   consumers for 1994. 
 21.10     Sec. 36.  Minnesota Statutes 2000, section 126C.17, 
 21.11  subdivision 5, is amended to read: 
 21.12     Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] (a) A 
 21.13  district's referendum equalization revenue equals the referendum 
 21.14  equalization allowance times the district's resident marginal 
 21.15  cost pupil units for that year.  
 21.16     (b) The referendum equalization allowance equals ~~$350 for~~ 
 21.17  ~~fiscal year 2000 and~~ $415 for fiscal ~~year~~ years 2001 and 2002, 
 21.18  $515 for fiscal year 2003, and $615 for fiscal year 2004 and 
 21.19  later. 
 21.20     (c) Referendum equalization revenue must not exceed a 
 21.21  district's total referendum revenue for that year. 
 21.22     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 21.23  fiscal year 2003 and later. 
 21.24     Sec. 37.  Minnesota Statutes 2000, section 126C.17, 
 21.25  subdivision 6, is amended to read: 
 21.26     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] ~~(a)~~ A district's 
 21.27  referendum equalization levy ~~for a referendum levied against the~~ 
 21.28  ~~referendum market value of all taxable property as defined in~~ 
 21.29  ~~section 126C.01, subdivision 3,~~ equals the district's referendum 
 21.30  equalization revenue times the lesser of one or the ratio of the 
 21.31  district's referendum market value per resident marginal cost 
 21.32  pupil unit to $476,000. 
 21.33     ~~(b) A district's referendum equalization levy for a~~ 
 21.34  ~~referendum levied against the net tax capacity of all taxable~~ 
 21.35  ~~property equals the district's referendum equalization revenue~~ 
 21.36  ~~times the lesser of one or the ratio of the district's adjusted~~ 
 22.1   ~~net tax capacity per resident marginal cost pupil unit to $8,404.~~
 22.2      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 22.3   fiscal year 2002. 
 22.4      Sec. 38.  Minnesota Statutes 2000, section 126C.17, 
 22.5   subdivision 9, is amended to read: 
 22.6      Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 22.7   by section 126C.10, subdivision 1, may be increased in the 
 22.8   amount approved by the voters of the district at a referendum 
 22.9   called for the purpose.  The referendum may be called by the 
 22.10  board or shall be called by the board upon written petition of 
 22.11  qualified voters of the district.  The referendum must be 
 22.12  conducted one or two calendar years before the increased levy 
 22.13  authority, if approved, first becomes payable.  Only one 
 22.14  election to approve an increase may be held in a calendar year.  
 22.15  Unless the referendum is conducted by mail under paragraph (g), 
 22.16  the referendum must be held on the first Tuesday after the first 
 22.17  Monday in November.  The ballot must state the maximum amount of 
 22.18  the increased revenue per resident marginal cost pupil unit, the 
 22.19  estimated referendum tax rate as a percentage of referendum 
 22.20  market value in the first year it is to be levied, and that the 
 22.21  revenue must be used to finance school operations.  The ballot 
 22.22  may state a schedule, determined by the board, of increased 
 22.23  revenue per resident marginal cost pupil unit that differs from 
 22.24  year to year over the number of years for which the increased 
 22.25  revenue is authorized.  If the ballot contains a schedule 
 22.26  showing different amounts, it must also indicate the estimated 
 22.27  referendum tax rate as a percent of referendum market value for 
 22.28  the amount specified for the first year and for the maximum 
 22.29  amount specified in the schedule.  The ballot may state that 
 22.30  existing referendum levy authority is expiring.  In this case, 
 22.31  the ballot may also compare the proposed levy authority to the 
 22.32  existing expiring levy authority, and express the proposed 
 22.33  increase as the amount, if any, over the expiring referendum 
 22.34  levy authority.  The ballot must designate the specific number 
 22.35  of years, not to exceed ten, for which the referendum 
 22.36  authorization applies.  The notice required under section 275.60 
 23.1   may be modified to read, in cases of renewing existing levies: 
 23.2      "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 23.3      FOR A PROPERTY TAX INCREASE." 
 23.4      The ballot may contain a textual portion with the 
 23.5   information required in this subdivision and a question stating 
 23.6   substantially the following:  
 23.7      "Shall the increase in the revenue proposed by (petition 
 23.8   to) the board of ........., School District No. .., be approved?"
 23.9      If approved, an amount equal to the approved revenue per 
 23.10  resident marginal cost pupil unit times the resident marginal 
 23.11  cost pupil units for the school year beginning in the year after 
 23.12  the levy is certified shall be authorized for certification for 
 23.13  the number of years approved, if applicable, or until revoked or 
 23.14  reduced by the voters of the district at a subsequent referendum.
 23.15     (b) The board must prepare and deliver by first class mail 
 23.16  at least 15 days but no more than 30 days before the day of the 
 23.17  referendum to each taxpayer a notice of the referendum and the 
 23.18  proposed revenue increase.  The board need not mail more than 
 23.19  one notice to any taxpayer.  For the purpose of giving mailed 
 23.20  notice under this subdivision, owners must be those shown to be 
 23.21  owners on the records of the county auditor or, in any county 
 23.22  where tax statements are mailed by the county treasurer, on the 
 23.23  records of the county treasurer.  Every property owner whose 
 23.24  name does not appear on the records of the county auditor or the 
 23.25  county treasurer is deemed to have waived this mailed notice 
 23.26  unless the owner has requested in writing that the county 
 23.27  auditor or county treasurer, as the case may be, include the 
 23.28  name on the records for this purpose.  The notice must project 
 23.29  the anticipated amount of tax increase in annual dollars and 
 23.30  annual percentage for typical residential homesteads, 
 23.31  agricultural homesteads, apartments, and commercial-industrial 
 23.32  property within the school district. 
 23.33     The notice for a referendum may state that an existing 
 23.34  referendum levy is expiring and project the anticipated amount 
 23.35  of increase over the existing referendum levy in the first year, 
 23.36  if any, in annual dollars and annual percentage for typical 
 24.1   residential homesteads, agricultural homesteads, apartments, and 
 24.2   commercial-industrial property within the district. 
 24.3      The notice must include the following statement:  "Passage 
 24.4   of this referendum will result in an increase in your property 
 24.5   taxes."  However, in cases of renewing existing levies, the 
 24.6   notice may include the following statement:  "Passage of this 
 24.7   referendum may result in an increase in your property taxes." 
 24.8      (c) A referendum on the question of revoking or reducing 
 24.9   the increased revenue amount authorized pursuant to paragraph 
 24.10  (a) may be called by the board and shall be called by the board 
 24.11  upon the written petition of qualified voters of the district.  
 24.12  A referendum to revoke or reduce the levy amount must be based 
 24.13  upon the dollar amount, local tax rate, or amount per resident 
 24.14  marginal cost pupil unit, that was stated to be the basis for 
 24.15  the initial authorization.  Revenue approved by the voters of 
 24.16  the district pursuant to paragraph (a) must be received at least 
 24.17  once before it is subject to a referendum on its revocation or 
 24.18  reduction for subsequent years.  Only one revocation or 
 24.19  reduction referendum may be held to revoke or reduce referendum 
 24.20  revenue for any specific year and for years thereafter. 
 24.21     (d) A petition authorized by paragraph (a) or (c) is 
 24.22  effective if signed by a number of qualified voters in excess of 
 24.23  15 percent of the registered voters of the district on the day 
 24.24  the petition is filed with the board.  A referendum invoked by 
 24.25  petition must be held on the date specified in paragraph (a). 
 24.26     (e) The approval of 50 percent plus one of those voting on 
 24.27  the question is required to pass a referendum authorized by this 
 24.28  subdivision. 
 24.29     (f) At least 15 days before the day of the referendum, the 
 24.30  district must submit a copy of the notice required under 
 24.31  paragraph (b) to the commissioner and to the county auditor of 
 24.32  each county in which the district is located.  Within 15 days 
 24.33  after the results of the referendum have been certified by the 
 24.34  board, or in the case of a recount, the certification of the 
 24.35  results of the recount by the canvassing board, the district 
 24.36  must notify the commissioner of the results of the referendum. 
 25.1      ~~(g) Except for a referendum held under subdivision 11, any~~ 
 25.2   ~~referendum under this section held on a day other than the first~~ 
 25.3   ~~Tuesday after the first Monday in November must be conducted by~~ 
 25.4   ~~mail in accordance with section 204B.46.  Notwithstanding~~ 
 25.5   ~~paragraph (b) to the contrary, in the case of a referendum~~ 
 25.6   ~~conducted by mail under this paragraph, the notice required by~~ 
 25.7   ~~paragraph (b) must be prepared and delivered by first class mail~~ 
 25.8   ~~at least 20 days before the referendum.~~ 
 25.9      Sec. 39.  Minnesota Statutes 2000, section 126C.17, 
 25.10  subdivision 10, is amended to read: 
 25.11     Subd. 10.  [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 
 25.12  ~~Notwithstanding the provisions of subdivision 9,~~ A school 
 25.13  referendum levy ~~approved after November 1, 1992, for taxes~~ 
 25.14  ~~payable in 1993 and thereafter,~~ must be levied against the 
 25.15  referendum market value of all taxable property as defined in 
 25.16  section 126C.01, subdivision 3.  Any referendum levy amount 
 25.17  subject to the requirements of this subdivision must be 
 25.18  certified separately to the county auditor under section 275.07. 
 25.19     ~~All other provisions of subdivision 9 that do not conflict~~ 
 25.20  ~~with this subdivision apply to referendum levies under this~~ 
 25.21  ~~subdivision.~~  
 25.22     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 25.23  fiscal year 2002. 
 25.24     Sec. 40.  Minnesota Statutes 2000, section 126C.17, 
 25.25  subdivision 11, is amended to read: 
 25.26     Subd. 11.  [REFERENDUM DATE.] (a) Except for a referendum 
 25.27  held under paragraph (b), any referendum under this section held 
 25.28  on a day other than the first Tuesday after the first Monday in 
 25.29  November must be conducted by mail in accordance with section 
 25.30  204B.46.  Notwithstanding subdivision 9, paragraph (b), to the 
 25.31  contrary, in the case of a referendum conducted by mail under 
 25.32  this paragraph, the notice required by subdivision 9, paragraph 
 25.33  (b), must be prepared and delivered by first-class mail at least 
 25.34  20 days before the referendum. 
 25.35     (b) In addition to the referenda allowed in subdivision 9, 
 25.36  clause (a), the commissioner may ~~authorize a referendum for a~~ 
 26.1   ~~different day.~~  
 26.2      ~~(a) The commissioner may~~ grant authority to a district to 
 26.3   hold a referendum on a different day if the district is in 
 26.4   statutory operating debt and has an approved plan or has 
 26.5   received an extension from the department to file a plan to 
 26.6   eliminate the statutory operating debt.  
 26.7      ~~(b) The commissioner may grant authority for a district to~~ 
 26.8   ~~hold a referendum on a different day if:  (1) the district will~~ 
 26.9   ~~conduct a bond election under chapter 475 on that same day; and~~ 
 26.10  ~~(2) the proceeds of the referendum will provide only additional~~ 
 26.11  ~~operating revenue complementing the purpose for which bonding~~ 
 26.12  ~~authority is sought.  The commissioner may only grant authority~~ 
 26.13  ~~under this paragraph if the district demonstrates to the~~ 
 26.14  ~~commissioner's satisfaction that the district's ability to~~ 
 26.15  ~~operate the new facility or achieve efficiencies with the~~ 
 26.16  ~~purchases connected to the proceeds of the bond sale will be~~ 
 26.17  ~~significantly affected if the operating referendum is not~~ 
 26.18  ~~conducted until the November general election.  Authority under~~ 
 26.19  ~~this paragraph expires November 30, 1998.~~ 
 26.20     (c) The commissioner must approve, deny, or modify each 
 26.21  district's request for a referendum levy on a different day 
 26.22  within 60 days of receiving the request from a district. 
 26.23     Sec. 41.  Minnesota Statutes 2000, section 126C.23, 
 26.24  subdivision 5, is amended to read: 
 26.25     Subd. 5.  [DATA REPORTING.] Each district must report to 
 26.26  the commissioner ~~the estimated amount of general education and~~ 
 26.27  ~~referendum initially allocated to each building under~~ 
 26.28  ~~subdivision 2 and the amount of any reallocations under~~ 
 26.29  ~~subdivision 3 by January 30 of the current fiscal year, and~~ the 
 26.30  actual amount of general education and referendum revenue 
 26.31  initially allocated to each building under subdivision 2 and the 
 26.32  amount of any reallocations under subdivision 3 by January 30 of 
 26.33  the next fiscal year. 
 26.34     Sec. 42.  Minnesota Statutes 2000, section 126C.41, 
 26.35  subdivision 3, is amended to read: 
 26.36     Subd. 3.  [RETIREMENT LEVIES.] ~~(1) In addition to the~~ 
 27.1   ~~excess levy authorized in 1976 any district within a city of the~~ 
 27.2   ~~first class which was authorized in 1975 to make a retirement~~ 
 27.3   ~~levy under Minnesota Statutes 1974, section 275.127 and chapter~~ 
 27.4   ~~422A may levy an amount per pupil unit which is equal to the~~ 
 27.5   ~~amount levied in 1975 payable 1976, under Minnesota Statutes~~ 
 27.6   ~~1974, section 275.127 and chapter 422A, divided by the number of~~ 
 27.7   ~~pupil units in the district in 1976-1977.~~ 
 27.8      ~~(2) In 1979 and each year thereafter, any district which~~ 
 27.9   ~~qualified in 1976 for an extra levy under paragraph (1) shall be~~ 
 27.10  ~~allowed to levy the same amount as levied for retirement in 1978~~ 
 27.11  ~~under this clause reduced each year by ten percent of the~~ 
 27.12  ~~difference between the amount levied for retirement in 1971~~ 
 27.13  ~~under Minnesota Statutes 1971, sections 275.127 and 422.01 to~~ 
 27.14  ~~422.54 and the amount levied for retirement in 1975 under~~ 
 27.15  ~~Minnesota Statutes 1974, section 275.127 and chapter 422A.~~ 
 27.16     ~~(3)~~ (a) In 1991 and each year thereafter, a district to 
 27.17  which this subdivision applies may levy an additional amount 
 27.18  required for contributions to the Minneapolis employees 
 27.19  retirement fund as a result of the maximum dollar amount 
 27.20  limitation on state contributions to the fund imposed under 
 27.21  section 422A.101, subdivision 3.  The additional levy must not 
 27.22  exceed the most recent amount certified by the board of the 
 27.23  Minneapolis employees retirement fund as the district's share of 
 27.24  the contribution requirement in excess of the maximum state 
 27.25  contribution under section 422A.101, subdivision 3.  
 27.26     ~~(4)~~ (b) For taxes payable in 1994 and thereafter, special 
 27.27  school district No. 1, Minneapolis, and independent school 
 27.28  district No. 625, St. Paul, may levy for the increase in the 
 27.29  employer retirement fund contributions, under Laws 1992, chapter 
 27.30  598, article 5, section 1.  
 27.31     ~~(5)~~ (c) If the employer retirement fund contributions under 
 27.32  section 354A.12, subdivision 2a, are increased for fiscal year 
 27.33  1994 or later fiscal years, special school district No. 1, 
 27.34  Minneapolis, and independent school district No. 625, St. Paul, 
 27.35  may levy in payable 1994 or later an amount equal to the amount 
 27.36  derived by applying the net increase in the employer retirement 
 28.1   fund contribution rate of the respective teacher retirement fund 
 28.2   association between fiscal year 1993 and the fiscal year 
 28.3   beginning in the year after the levy is certified to the total 
 28.4   covered payroll of the applicable teacher retirement fund 
 28.5   association.  If an applicable school district levies under this 
 28.6   paragraph, they may not levy under paragraph ~~(4)~~ (b). 
 28.7      ~~(6)~~ (d) In addition to the levy authorized under paragraph 
 28.8   ~~(5)~~ (c), special school district No. 1, Minneapolis, may also 
 28.9   levy payable in 1997 or later an amount equal to the 
 28.10  contributions under section 423A.02, subdivision 3, and may also 
 28.11  levy in payable 1994 or later an amount equal to the state aid 
 28.12  contribution under section 354A.12, subdivision 3b.  Independent 
 28.13  school district No. 625, St. Paul, may levy payable in 1997 or 
 28.14  later an amount equal to the supplemental contributions under 
 28.15  section 423A.02, subdivision 3.  
 28.16     Sec. 43.  Minnesota Statutes 2000, section 126C.43, 
 28.17  subdivision 3, is amended to read: 
 28.18     Subd. 3.  [TAX LEVY FOR ~~UNPAID~~ JUDGMENT.] A school district 
 28.19  may levy the amounts necessary to pay ~~the district's obligations~~ 
 28.20  judgments against the school district and, if the school 
 28.21  district is a member of an intermediate school district, the 
 28.22  district's proportionate share of the judgments against the 
 28.23  intermediate school district, under section ~~126C.47~~ 123B.25 that 
 28.24  became final after the date the district certified its proposed 
 28.25  levy in the previous year.  With the approval of the 
 28.26  commissioner, a district may spread this levy over a period not 
 28.27  to exceed three years. 
 28.28     Sec. 44.  Minnesota Statutes 2000, section 127A.41, 
 28.29  subdivision 5, is amended to read: 
 28.30     Subd. 5.  [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 
 28.31  DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] Public schools shall 
 28.32  at all times be open to the inspection of the commissioner.  The 
 28.33  accounts and records of any district must be open to inspection 
 28.34  by the state auditor, or the commissioner for the purpose of 
 28.35  audits conducted under this section.  Each district shall keep 
 28.36  for a minimum of three years at least the following:  (1) 
 29.1   identification of the annual session days held, together with a 
 29.2   record of the length of each session day, (2) a record of each 
 29.3   pupil's daily attendance, with entrance and withdrawal dates, 
 29.4   and (3) identification of the ~~pupils transported who are~~ 
 29.5   ~~reported for transportation aid~~ to-and-from school 
 29.6   transportation category for each pupil as defined in section 
 29.7   123B.92, subdivision 1. 
 29.8      Sec. 45.  Minnesota Statutes 2000, section 127A.50, 
 29.9   subdivision 2, is amended to read: 
 29.10     Subd. 2.  [APPROPRIATION ~~AND ESTIMATED NET SAVINGS~~.] The 
 29.11  amounts necessary to pay any positive net adjustments under this 
 29.12  section to any school district are appropriated annually from 
 29.13  the general fund to the commissioner of children, families, and 
 29.14  learning.  ~~The estimated net general fund savings under this~~ 
 29.15  ~~section is $29,819,000 in fiscal year 1998, and $26,997,000 in~~ 
 29.16  ~~each fiscal year thereafter.~~ 
 29.17     Sec. 46.  Laws 1992, chapter 499, article 7, section 31, as 
 29.18  amended by Laws 1998, chapter 398, article 1, section 39, Laws 
 29.19  1999, chapter 241, article 1, section 54, and Laws 2000, chapter 
 29.20  489, article 2, section 28, is amended to read: 
 29.21     Sec. 31.  [REPEALER.] 
 29.22     ~~Minnesota Statutes 1990, sections 124A.02, subdivision 24;~~ 
 29.23  ~~124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3;~~ 
 29.24  ~~124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota~~ 
 29.25  ~~Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and~~ 
 29.26  ~~23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i;~~ 
 29.27  ~~124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9;~~ 
 29.28  ~~124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision~~ 
 29.29  ~~1; and 124A.29, subdivision 1, are repealed effective June 30,~~ 
 29.30  ~~2004;~~ Laws 1991, chapter 265, article 7, section 35, is repealed.
 29.31     Sec. 47.  Laws 2000, chapter 489, article 2, section 34, is 
 29.32  amended to read: 
 29.33     Sec. 34.  [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 
 29.34     (a) For fiscal year 2001 only, a school district's training 
 29.35  and experience replacement revenue equals the sum of the 
 29.36  following: 
 30.1      (1) the ratio of the amount of training and experience 
 30.2   revenue the district would have received for fiscal year 1999 
 30.3   calculated using the training and experience index in Minnesota 
 30.4   Statutes 1996, section 124A.04, to its resident pupil units for 
 30.5   that year, times the district's adjusted marginal cost pupil 
 30.6   units for fiscal year 2001, times .06; plus 
 30.7      (2) the difference between .47 times the training and 
 30.8   experience revenue the district would have received for fiscal 
 30.9   year 1999, calculated using the training and experience index in 
 30.10  Minnesota Statutes 1996, section 124A.04, and the amount 
 30.11  calculated in Minnesota Statutes, section 126C.10, subdivision 
 30.12  5, for fiscal year 2001, but not less than zero. 
 30.13     (b) This revenue is paid entirely in fiscal year 2001 based 
 30.14  on estimated data. 
 30.15     (c) By January 31, 2002, the department of children, 
 30.16  families, and learning shall recalculate the revenue for each 
 30.17  district using actual data, and shall adjust the general 
 30.18  education aid paid to school districts for fiscal year 2002 by 
 30.19  the amount of the difference between the estimated revenue and 
 30.20  the actual revenue. 
 30.21     Sec. 48.  Laws 2000, chapter 489, article 2, section 36, is 
 30.22  amended to read: 
 30.23     Sec. 36.  [FISCAL YEARS ~~2003~~ 2004 TO ~~2007~~ 2008 AIRPORT 
 30.24  RUNWAY IMPACT PUPIL UNIT AID; RICHFIELD.] 
 30.25     Subdivision 1.  [AIRPORT IMPACT ZONE PUPIL UNITS, 
 30.26  DEFINITION.] For the purposes of this section, "airport impact 
 30.27  zone pupil units" means the number of pupil units, according to 
 30.28  Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 
 30.29  1, in school year 1998-1999 that were attributable to the 
 30.30  airport impact zone, as defined in Laws 1999, chapter 243, 
 30.31  article 16, section 35, subdivision 1. 
 30.32     Subd. 2.  [FISCAL YEAR ~~2003~~ 2004.] For fiscal year ~~2003~~ 
 30.33  2004 only, independent school district No. 280, Richfield, is 
 30.34  eligible for declining pupil unit aid equal to the product of 70 
 30.35  percent of the airport impact zone pupil units times the general 
 30.36  education formula allowance for fiscal year ~~2003~~ 2004. 
 31.1      Subd. 3.  [FISCAL YEAR ~~2004~~ 2005.] For fiscal year ~~2004~~ 
 31.2   2005 only, independent school district No. 280, Richfield, is 
 31.3   eligible for declining pupil unit aid equal to the product of 70 
 31.4   percent of the airport impact zone pupil units times the general 
 31.5   education formula allowance for fiscal year ~~2004~~ 2005. 
 31.6      Subd. 4.  [FISCAL YEAR ~~2005~~ 2006.] For fiscal year ~~2005~~ 
 31.7   2006 only, independent school district No. 280, Richfield, is 
 31.8   eligible for declining pupil unit aid equal to the product of 
 31.9   52.5 percent of the airport impact zone pupil units times the 
 31.10  general education formula allowance for fiscal year ~~2005~~ 2006. 
 31.11     Subd. 5.  [FISCAL YEAR ~~2006~~ 2007.] For fiscal year ~~2006~~ 
 31.12  2007 only, independent school district No. 280, Richfield, is 
 31.13  eligible for declining pupil unit aid equal to the product of 35 
 31.14  percent of the airport impact zone pupil units times the general 
 31.15  education formula allowance for fiscal year ~~2006~~ 2007. 
 31.16     Subd. 6.  [FISCAL YEAR ~~2007~~ 2008.] For fiscal year ~~2007~~ 
 31.17  2008 only, independent school district No. 280, Richfield, is 
 31.18  eligible for declining pupil unit aid equal to the product of 
 31.19  17.5 percent of the airport impact zone pupil units times the 
 31.20  general education formula allowance for fiscal year ~~2007~~ 2008.  
 31.21     Sec. 49.  Laws 2000, chapter 489, article 2, section 37, 
 31.22  subdivision 3, is amended to read: 
 31.23     Subd. 3.  [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal 
 31.24  year 2001, a school district's sparsity correction revenue 
 31.25  equals .5 times the difference between sparsity revenue in 
 31.26  fiscal year 2001 calculated according to Laws 1999, chapter 241, 
 31.27  article 1, sections 18 and 19, and the sparsity revenue the 
 31.28  district would have received for fiscal year 2001 had these 
 31.29  sections of law not been approved. 
 31.30     (b) This revenue is paid entirely in fiscal year 2001 based 
 31.31  on estimated data.  
 31.32     (c) By January 31, 2002, the department of children, 
 31.33  families, and learning shall recalculate the revenue for each 
 31.34  district using actual data, and shall adjust the general 
 31.35  education aid paid to school districts for fiscal year 2002 by 
 31.36  the amount of the difference between the estimated revenue and 
 32.1   the actual revenue. 
 32.2      Sec. 50.  Laws 2000, chapter 489, article 2, section 39, 
 32.3   subdivision 2, is amended to read: 
 32.4      Subd. 2.  [SPARSITY CORRECTION REVENUE.] For sparsity 
 32.5   correction revenue: 
 32.6        $1,030,000     .....     2000
 32.7        $  515,000     .....     2001
 32.8      The 2000 appropriation is available until June 30, 2001.  
 32.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 32.10  following final enactment. 
 32.11     Sec. 51.  Laws 2000, chapter 489, article 3, section 25, 
 32.12  subdivision 5, is amended to read: 
 32.13     Subd. 5.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 
 32.14  special education cross-subsidy revenue: 
 32.15       $ 7,898,000     .....     2000 
 32.16       $18,396,000     .....     2001 
 32.17     The 2000 appropriation is available until June 30, 2001. 
 32.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 32.19  following final enactment. 
 32.20     Sec. 52.  [LEGISLATIVE TASK FORCE ON REDUCING THE 
 32.21  COMPLEXITY OF KINDERGARTEN THROUGH GRADE 12 EDUCATION FUNDING 
 32.22  STATUTES AND RULES.] 
 32.23     (a) The legislative task force on reducing the complexity 
 32.24  of kindergarten through grade 12 education funding consists of 
 32.25  13 members.  The speaker of the house of representatives shall 
 32.26  appoint four members from the house, two of whom must be from 
 32.27  the minority caucus.  The subcommittee on committees of the 
 32.28  senate committee on rules and administration shall appoint four 
 32.29  members from the senate, two of whom must be from the minority 
 32.30  caucus.  The task force membership shall also consist of the 
 32.31  following persons or their designees: 
 32.32     (1) the commissioner of the department of children, 
 32.33  families, and learning; 
 32.34     (2) the executive director of the Minnesota school boards 
 32.35  association and the executive director of the Minnesota 
 32.36  association of school administrators; 
 33.1      (3) the executive director of the Minnesota association of 
 33.2   school business officials; and 
 33.3      (4) the parent of a school-age child appointed by the 
 33.4   governor.  
 33.5      (b) The task force shall study and make recommendations to 
 33.6   the legislature by January 15, 2002, on any changes in statutes 
 33.7   and rules needed to simplify, clarify, and reduce the complexity 
 33.8   of the kindergarten through grade 12 education funding system.  
 33.9   The task force shall consider, at least, the following in making 
 33.10  its recommendations for changes in statutes and rules: 
 33.11     (1) the extent to which funding system provisions are 
 33.12  readily readable and understandable; 
 33.13     (2) the extent to which the funding system can be 
 33.14  simplified; 
 33.15     (3) the extent to which regional variations in cost and 
 33.16  differentials in market-based wages affect school district 
 33.17  costs; 
 33.18     (4) how to define compensatory revenue to most effectively 
 33.19  meet the academic needs of poor performing students; 
 33.20     (5) the extent to which references to other sections or 
 33.21  provisions of law or rule are minimized; 
 33.22     (6) the extent to which definitional provisions are 
 33.23  incorporated in the text of the statutes or rules; and 
 33.24     (7) the extent to which the legislative process of funding 
 33.25  kindergarten through grade 12 education can be improved to 
 33.26  provide school districts with timely, accurate information 
 33.27  concerning legislative decisions. 
 33.28     (c) The task force shall seek the input of various 
 33.29  kindergarten through grade 12 education stakeholders as well as 
 33.30  the general public in making its recommendations.  The task 
 33.31  force may call upon the staff of the legislature and the 
 33.32  department of children, families, and learning to assist with 
 33.33  its duties.  Upon submission of its recommendations, the task 
 33.34  force expires. 
 33.35     Sec. 53.  [DECLINING PUPIL UNIT AID; YELLOW MEDICINE EAST.] 
 33.36     Subdivision 1.  [FISCAL YEAR 2002.] For fiscal year 2002, 
 34.1   independent school district No. 2190, Yellow Medicine East, is 
 34.2   eligible for tornado impact declining enrollment aid equal to 
 34.3   $156,000. 
 34.4      Subd. 2.  [FISCAL YEAR 2003.] For fiscal year 2003, 
 34.5   independent school district No. 2190, Yellow Medicine East, is 
 34.6   eligible for tornado impact declining enrollment aid equal to 75 
 34.7   percent of the fiscal year 2002 appropriation in subdivision 1. 
 34.8      Subd. 3.  [FISCAL YEAR 2004.] For fiscal year 2004, 
 34.9   independent school district No. 2190, Yellow Medicine East, is 
 34.10  eligible for tornado impact declining enrollment aid equal to 50 
 34.11  percent of the fiscal year 2002 appropriation in subdivision 1. 
 34.12     Subd. 4.  [FISCAL YEAR 2005.] For fiscal year 2005, 
 34.13  independent school district No. 2190, Yellow Medicine East, is 
 34.14  eligible for tornado impact declining enrollment aid equal to 25 
 34.15  percent of the fiscal year 2002 appropriation in subdivision 1. 
 34.16     Sec. 54.  [SUPPLEMENTAL REVENUE; ANOKA.] 
 34.17     For fiscal year 2002 and later, the supplemental revenue 
 34.18  for independent school district No. 11, Anoka, is increased by 
 34.19  $1,000,000.  
 34.20     Sec. 55.  [DIRECTION TO COMMISSIONER.] 
 34.21     (a) The commissioner of children, families, and learning is 
 34.22  directed to collect the necessary data from each school district 
 34.23  to create a cost-based pupil transportation formula based on the 
 34.24  following ridership categories: 
 34.25     (1) regular; 
 34.26     (2) excess; 
 34.27     (3) disabled; 
 34.28     (4) nonpublic; 
 34.29     (5) desegregation; 
 34.30     (6) noon kindergarten; 
 34.31     (7) learning year summer; 
 34.32     (8) between schools; 
 34.33     (9) late activity; 
 34.34     (10) summer school; 
 34.35     (11) open enrollment; 
 34.36     (12) student activity trips; and 
 35.1      (13) enrollment options. 
 35.2      (b) The commissioner must recommend a cost-based pupil 
 35.3   transportation formula and report to the legislative committees 
 35.4   responsible for kindergarten through grade 12 education finance 
 35.5   by February 15, 2002. 
 35.6      (c) The commissioner is directed to identify for each 
 35.7   district all transportation revenues.  
 35.8      Sec. 56.  [APPROPRIATIONS.] 
 35.9      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 35.10  LEARNING.] The sums indicated in this section are appropriated 
 35.11  from the general fund to the department of children, families, 
 35.12  and learning for the fiscal years designated.  
 35.13     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 35.14  general and supplemental education aid:  
 35.15       $3,369,140,000 .....     2002
 35.16       $3,465,366,000 .....     2003
 35.17     The 2002 appropriation includes $318,932,000 for 2001 and 
 35.18  $3,050,208,000 for 2002.  
 35.19     The 2003 appropriation includes $328,926,000 for 2002 and 
 35.20  $3,136,440,000 for 2003.  
 35.21     Subd. 3.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 35.22  transportation of pupils attending post-secondary institutions 
 35.23  according to Minnesota Statutes, section 124D.09, or for 
 35.24  transportation of pupils attending nonresident districts 
 35.25  according to Minnesota Statutes, section 124D.03: 
 35.26       $70,000        .....     2002
 35.27       $80,000        .....     2003
 35.28     Any balance in the first year does not cancel but is 
 35.29  available in the second year. 
 35.30     Subd. 4.  [ABATEMENT AID.] For abatement aid according to 
 35.31  Minnesota Statutes, section 127A.49:  
 35.32       $7,098,000     .....     2002 
 35.33       $7,692,000     .....     2003 
 35.34     The 2002 appropriation includes $640,000 for 2001 and 
 35.35  $6,458,000 for 2002.  
 35.36     The 2003 appropriation includes $717,000 for 2002 and 
 36.1   $6,975,000 for 2003.  
 36.2      Subd. 5.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
 36.3   education aid according to Minnesota Statutes, sections 123.79 
 36.4   and 123B.40 to 123B.43: 
 36.5        $13,881,000    .....     2002 
 36.6        $14,526,000    .....     2003 
 36.7      The 2002 appropriation includes $1,330,000 for 2001 and 
 36.8   $12,551,000 for 2002. 
 36.9      The 2003 appropriation includes $1,395,000 for 2002 and 
 36.10  $13,131,000 for 2003. 
 36.11     Subd. 6.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 36.12  pupil transportation aid under Minnesota Statutes, section 
 36.13  123B.92, subdivision 9: 
 36.14       $20,411,000     .....     2002 
 36.15       $22,276,000     .....     2003 
 36.16     The 2002 appropriation includes $2,000,000 for 2001 and 
 36.17  $18,411,000 for 2002. 
 36.18     The 2003 appropriation includes $2,045,000 for 2002 and 
 36.19  $20,231,000 for 2003. 
 36.20     Subd. 7.  [CONSOLIDATION TRANSITION AID.] For districts 
 36.21  consolidating under Minnesota Statutes, section 123A.485: 
 36.22       $675,000        .....     2002 
 36.23       $669,000        .....     2003 
 36.24     The 2002 appropriation includes $44,000 for 2001 and 
 36.25  $631,000 for 2002. 
 36.26     The 2003 appropriation includes $70,000 for 2002 and 
 36.27  $599,000 for 2003. 
 36.28     Any balance in the first year does not cancel but is 
 36.29  available in the second year. 
 36.30     Subd. 8.  [TORNADO IMPACT; YELLOW MEDICINE EAST.] For a 
 36.31  grant to independent school district No. 2190, Yellow Medicine 
 36.32  East, for tornado impact declining enrollment aid: 
 36.33       $156,000     .....     2002
 36.34       $117,000     .....     2003
 36.35     Subd. 9.  [TORNADO IMPACT; ST. PETER.] For a grant to 
 36.36  independent school district No. 508, St. Peter, for tornado 
 37.1   impact declining enrollment aid: 
 37.2        $455,000     .....     2002 
 37.3      This grant is in lieu of funds authorized under Laws 1999, 
 37.4   chapter 241, article 4, section 22. 
 37.5      Sec. 57.  [REVISOR INSTRUCTION.] 
 37.6      In the next and subsequent editions of Minnesota Statutes, 
 37.7   the revisor shall change all references to "compensatory 
 37.8   revenue" to "remedial revenue." 
 37.9      Sec. 58.  [REPEALER.] 
 37.10     (a) Minnesota Statutes 2000, sections 123B.05; 124D.07; 
 37.11  126C.01, subdivision 10; 126C.16, subdivision 2; 126C.18; 
 37.12  126C.22; 126C.30; 126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 
 37.13  126C.36; and 127A.44, are repealed. 
 37.14     (b) Minnesota Statutes 2000, sections 126C.10, subdivisions 
 37.15  12, 23, and 28; and 126C.17, subdivision 12, are repealed 
 37.16  effective for revenue for fiscal year 2002. 
 37.17     (c) Minnesota Statutes 2000, sections 126C.42, subdivisions 
 37.18  2 and 3; and 126C.47, are repealed effective for taxes payable 
 37.19  in 2002. 
 37.20     (d) Minnesota Statutes 2000, section 126C.10, subdivision 
 37.21  3, is repealed for revenue for fiscal year 2004 and later. 
 37.22                             ARTICLE 2 
 37.23                        EDUCATION EXCELLENCE 
 37.24     Section 1.  [120B.12] [READING COMPETENCY; GRANTS.] 
 37.25     Subdivision 1.  [LITERACY GOAL.] The legislature wants 
 37.26  Minnesota's children to read by the end of the third grade as 
 37.27  measured by the Minnesota comprehensive assessment and other 
 37.28  general outcome measures. 
 37.29     Subd. 2.  [DEFINITION.] For purposes of this section, a 
 37.30  "district" may be a local school district, an intermediate 
 37.31  district, or an education district.  
 37.32     Subd. 3.  [GRANT RECIPIENTS; CRITERIA.] The commissioner 
 37.33  may award up to three grants to assist charter schools and sites 
 37.34  in district-operated schools in achieving children's reading 
 37.35  competency by the end of third grade.  Grant recipients must 
 37.36  have: 
 38.1      (1) expertise in early literacy and the teaching of reading 
 38.2   or mathematics; 
 38.3      (2) research-based evidence that the strategies recommended 
 38.4   by the grant recipient improve student performance in reading; 
 38.5      (3) a measurement system for teachers to use that includes 
 38.6   an individual student test that is reliable, easy to use, and 
 38.7   requires minimal time; and 
 38.8      (4) an accountability structure for measuring the grant 
 38.9   recipient's results.  
 38.10     Subd. 4.  [GRANT REQUIREMENTS.] (a) Grant recipients also 
 38.11  must meet the requirements of this subdivision.  
 38.12     (b) Grant recipients must collaborate with the commissioner 
 38.13  in informing district-operated schools and charter schools about 
 38.14  available assistance with reading competency.  In awarding a 
 38.15  grant, the commissioner may give highest priority to those sites 
 38.16  and charter schools in greatest need of assistance based on 
 38.17  annual yearly progress reports. 
 38.18     (c) A district that is a grant recipient must assist a 
 38.19  minimum of 50 sites, at least 30 of which must have at least 25 
 38.20  percent enrolled students in kindergarten through grade 3 
 38.21  eligible for free or reduced price lunch. 
 38.22     (d) Grant recipients must consult with preschool programs 
 38.23  including early childhood family education, learning readiness, 
 38.24  Head Start, child care centers, and other programs to ensure 
 38.25  that staff at these programs possess skills that are 
 38.26  research-based predictors of literacy. 
 38.27     (e) Grant recipients must agree with a site on the reading 
 38.28  results the site will achieve over a three-school year period 
 38.29  and on the assistance with reading competency the grant 
 38.30  recipient will provide.  The site council or the school board if 
 38.31  there is no site council and the teachers at the site must 
 38.32  consent to the agreement. 
 38.33     (f) The agreement must include the timeline for a baseline 
 38.34  measurement of each student, the frequency that individual 
 38.35  student performance is measured, and the manner for reporting 
 38.36  data to the site and the district board. 
 39.1      (g) The agreement also must estimate the amount of grant 
 39.2   funds the district will provide to the site, including funds 
 39.3   allocated for site planning and collecting student performance 
 39.4   data, and the amount of revenue the site will contribute.  The 
 39.5   agreement must provide that if the district fails to perform 
 39.6   according to the agreement, the commissioner will award to the 
 39.7   site the funds remaining for the site under the agreement, which 
 39.8   the site may use for contracting with a different reading vendor.
 39.9      (h) The agreement must define the site's responsibilities.  
 39.10  If the site does not fulfill its responsibilities, the district 
 39.11  may discontinue its services to that site, inform the site of 
 39.12  the reason for terminating the agreement, and indicate the 
 39.13  funding amount expended for that site. 
 39.14     Subd. 5.  [REPORT.] Grant recipients annually must report 
 39.15  to the commissioner on the results achieved at each site.  The 
 39.16  report must include: 
 39.17     (1) demographic information about the students at the site; 
 39.18     (2) the service provided to the site; 
 39.19     (3) student performance data for fall, winter, and spring, 
 39.20  although all sites may not have fall student performance data in 
 39.21  the first year of the program; and 
 39.22     (4) the amount of grant funding expended for the site. 
 39.23     Subd. 6.  [APPLICATION PROCESS.] The commissioner shall 
 39.24  award one grant by July 1, 2001.  The commissioner must award 
 39.25  the remaining grants no later than October 1, 2001. 
 39.26     Sec. 2.  Minnesota Statutes 2000, section 120B.13, 
 39.27  subdivision 1, is amended to read: 
 39.28     Subdivision 1.  [PROGRAM STRUCTURE; TRAINING PROGRAMS FOR 
 39.29  TEACHERS.] (a) The advanced placement and international 
 39.30  baccalaureate programs are well-established academic programs 
 39.31  for mature, academically-directed high school students.  These 
 39.32  programs, in addition to providing academic rigor, offer sound 
 39.33  curricular design, accountability, comprehensive external 
 39.34  assessment, feedback to students and teachers, and the 
 39.35  opportunity for high school students to compete academically on 
 39.36  a global level.  Advanced placement and international 
 40.1   baccalaureate programs allow students to leave high school with 
 40.2   the academic skills and self-confidence to succeed in college 
 40.3   and beyond.  The advanced placement and international 
 40.4   baccalaureate programs help provide Minnesota students with 
 40.5   world-class educational opportunity. 
 40.6      (b) Critical to schools' educational success is ongoing 
 40.7   advanced placement/international baccalaureate-approved teacher 
 40.8   training.  A secondary teacher assigned by a district to teach 
 40.9   an advanced placement or international baccalaureate course or 
 40.10  other interested educator may participate in a training program 
 40.11  offered by the college board or International Baccalaureate 
 40.12  North America, Inc.  The state may pay a portion of the tuition, 
 40.13  room, and board costs a teacher or other interested educator 
 40.14  incurs in participating in a training program.  The commissioner 
 40.15  shall determine application procedures and deadlines, and select 
 40.16  teachers and other interested educators to participate in the 
 40.17  training program.  The procedures determined by the commissioner 
 40.18  shall, to the extent possible, ensure that advanced placement 
 40.19  and international baccalaureate courses become available in all 
 40.20  parts of the state and that a variety of course offerings are 
 40.21  available in school districts.  This subdivision does not 
 40.22  prevent teacher or other interested educator participation in 
 40.23  training programs offered by the college board or International 
 40.24  Baccalaureate North America, Inc., when tuition is paid by a 
 40.25  source other than the state. 
 40.26     Sec. 3.  [120B.15] [INVOLUNTARY CAREER TRACKING 
 40.27  PROHIBITED.] 
 40.28     A school district may develop grade-level curricula or 
 40.29  provide instruction that introduces students to various careers, 
 40.30  but must not require any curriculum, instruction, or 
 40.31  employment-related activity that obligates an elementary or 
 40.32  secondary student to involuntarily select a career, career 
 40.33  interest, employment goals, or related job training. 
 40.34     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 40.35  following final enactment. 
 40.36     Sec. 4.  Minnesota Statutes 2000, section 120B.30, 
 41.1   subdivision 1, is amended to read: 
 41.2      Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
 41.3   with advice from experts with appropriate technical 
 41.4   qualifications and experience and stakeholders, shall include in 
 41.5   the comprehensive assessment system, for each grade level to be 
 41.6   tested, a test, which shall be aligned with the state's 
 41.7   graduation standards and administered annually to all students 
 41.8   in the third, fifth, and eighth grades.  All elementary and 
 41.9   secondary students who take a statewide math test designed for 
 41.10  students in grade 3, 4, 5, 6, 7, or 8 are prohibited from using 
 41.11  a calculator while taking such a test.  The commissioner shall: 
 41.12     (1) ensure that all multiple choice and true/false test 
 41.13  items contained in a statewide test have a single correct 
 41.14  answer; 
 41.15     (2) include in test items measuring a student's reading 
 41.16  comprehension, a variety of print sources in addition to mass 
 41.17  media, including fiction or nonfiction literature; 
 41.18     (3) ensure that all statewide tests administered to 
 41.19  elementary and secondary students measure students' academic 
 41.20  knowledge and not students' values, attitudes, and beliefs; and 
 41.21     (4) establish one or more months during which schools shall 
 41.22  administer the tests to students each school year.  Only 
 41.23  Minnesota basic skills tests in reading, mathematics, and 
 41.24  writing shall fulfill students' basic skills testing 
 41.25  requirements for a passing state notation.  The passing scores 
 41.26  of the state tests in reading and mathematics are the equivalent 
 41.27  of:  
 41.28     ~~(1)~~ (i) 70 percent correct for students entering grade 9 in 
 41.29  1996; and 
 41.30     ~~(2)~~ (ii) 75 percent correct for students entering grade 9 
 41.31  in 1997 and thereafter, as based on the first uniform test 
 41.32  administration of February 1998.  
 41.33     Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, 
 41.34  at the written request of a parent or guardian, and with the 
 41.35  recommendation of the student's teacher, a district may offer 
 41.36  the test of basic requirements in reading, math, or writing to 
 42.1   an individual student beginning in grade 5.  The student must 
 42.2   take the same test on the same date as administered to students 
 42.3   in eighth grade or higher.  Third and fifth grade test results 
 42.4   shall be available to districts for diagnostic purposes 
 42.5   affecting student learning and district instruction and 
 42.6   curriculum, and for establishing educational accountability.  
 42.7   The commissioner must disseminate to the public the third and 
 42.8   fifth grade test results upon receiving those results. 
 42.9      (b) In addition, at the secondary level, districts shall 
 42.10  assess student performance in all required learning areas and 
 42.11  selected required standards within each area of the profile of 
 42.12  learning.  The testing instruments and testing process shall be 
 42.13  determined by the commissioner.  The results shall be aggregated 
 42.14  at the site and district level.  The testing shall be 
 42.15  administered beginning in the 1999-2000 school year and 
 42.16  thereafter. 
 42.17     (c) The commissioner shall report school site and school 
 42.18  district student academic achievement levels of the current and 
 42.19  two immediately preceding school years.  The report shall 
 42.20  include students' unweighted mean test scores in each tested 
 42.21  subject, the unweighted mean test scores of only those students 
 42.22  enrolled in the school by January 1 of the previous school year, 
 42.23  and the unweighted test scores of all students except those 
 42.24  students receiving limited English proficiency instruction.  The 
 42.25  report also shall record separately, in proximity to the 
 42.26  reported performance levels, the percentages of students who are 
 42.27  eligible to receive a free or reduced price school meal, 
 42.28  demonstrate limited English proficiency, or are eligible to 
 42.29  receive special education services. 
 42.30     (d) In addition to the testing and reporting requirements 
 42.31  under paragraphs (a), (b), and (c), the commissioner shall 
 42.32  include the following components in the statewide public 
 42.33  reporting system: 
 42.34     (1) uniform statewide testing of all third, fifth, eighth, 
 42.35  and post-eighth grade students that provides exemptions, only 
 42.36  with parent or guardian approval, for those very few students 
 43.1   for whom the student's individual education plan team under 
 43.2   sections 125A.05 and 125A.06, determines that the student is 
 43.3   incapable of taking a statewide test, or for a limited English 
 43.4   proficiency student under section 124D.59, subdivision 2, if the 
 43.5   student has been in the United States for fewer than 12 months 
 43.6   and for whom special language barriers exist, such as the 
 43.7   student's native language does not have a written form or the 
 43.8   district does not have access to appropriate interpreter 
 43.9   services for the student's native language; 
 43.10     (2) educational indicators that can be aggregated and 
 43.11  compared across school districts and across time on a statewide 
 43.12  basis, including average daily attendance, high school 
 43.13  graduation rates, and high school drop-out rates by age and 
 43.14  grade level; 
 43.15     (3) students' scores on the American College Test; and 
 43.16     (4) participation in the National Assessment of Educational 
 43.17  Progress so that the state can benchmark its performance against 
 43.18  the nation and other states, and, where possible, against other 
 43.19  countries, and contribute to the national effort to monitor 
 43.20  achievement. 
 43.21     (e) Districts must report exemptions under paragraph (d), 
 43.22  clause (1), to the commissioner consistent with a format 
 43.23  provided by the commissioner. 
 43.24     (f) The commissioner shall make a student's test results, 
 43.25  including the student's individual test, on all statewide tests 
 43.26  available to the student's school district and the student's 
 43.27  parent or guardian. 
 43.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 43.29  following final enactment. 
 43.30     Sec. 5.  [120B.32] [SCHOOL DISTRICT SYSTEM ACCOUNTABILITY 
 43.31  AND EDUCATIONAL IMPROVEMENT PLAN.] 
 43.32     Subdivision 1.  [QUALIFYING PLAN.] A district may develop a 
 43.33  system accountability and educational improvement plan.  The 
 43.34  plan must establish comprehensive measures of school district, 
 43.35  school site, teacher, and individual student performance 
 43.36  consistent with subdivisions 2 to 5.  
 44.1      Subd. 2.  [DISTRICT ACCOUNTABILITY.] A school board must 
 44.2   approve a system accountability and educational improvement 
 44.3   plan.  The plan must indicate the data and measures needed for 
 44.4   improving educational performance within the district, including 
 44.5   baseline data, performance goals, and benchmarks accompanied by 
 44.6   specific dates for meeting those benchmarks.  A district's 
 44.7   performance goals must include student achievement goals and may 
 44.8   include other performance goals such as improved school 
 44.9   attendance, student discipline, school safety, or parent 
 44.10  involvement, or enhancing the knowledge and skills of school 
 44.11  staff.  The plan also must describe the methods for developing, 
 44.12  reviewing, and implementing means to improve educational 
 44.13  performance at each school site located within the district. 
 44.14     Subd. 3.  [SCHOOL SITE ACCOUNTABILITY.] Each school site 
 44.15  must develop a board-approved accountability and educational 
 44.16  improvement plan that is aligned with the performance goals 
 44.17  contained in the school district accountability and educational 
 44.18  improvement plan.  While a site plan must be consistent with the 
 44.19  district accountability plan, it may establish performance goals 
 44.20  and benchmarks that meet or exceed those of the district.  
 44.21     Subd. 4.  [TEACHER ACCOUNTABILITY.] A district's 
 44.22  accountability and educational improvement plan must identify 
 44.23  the district's plan to assess teacher performance.  The plan 
 44.24  must include clearly defined, research-based teacher 
 44.25  professional development standards that permit objective 
 44.26  assessment, including classroom observation, consistent with 
 44.27  district goals for instruction.  The exclusive bargaining 
 44.28  representative of the teachers and the school board must agree 
 44.29  to the plan.  The plan may include:  
 44.30     (1) teacher professional development standards that 
 44.31  emphasize content; 
 44.32     (2) staff development opportunities for teachers to attain 
 44.33  teacher professional development standards; or 
 44.34     (3) standards and procedures for assessing teachers' 
 44.35  professional practice.  
 44.36     The teacher professional development standards must be 
 45.1   sufficiently rigorous to effect meaningful professional 
 45.2   development and improvement.  
 45.3      Subd. 5.  [STUDENT ACCOUNTABILITY.] A district's system 
 45.4   accountability and educational improvement plan must include 
 45.5   comprehensive measures of student performance and a list of 
 45.6   assessment tools the district will use to determine student 
 45.7   performance. 
 45.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 45.9   following final enactment.  
 45.10     Sec. 6.  [120B.33] [ALTERNATIVE TEACHER COMPENSATION; 
 45.11  ACCOUNTABILITY AND EDUCATIONAL IMPROVEMENT.] 
 45.12     Subdivision 1.  [RESTRUCTURED SYSTEM ESTABLISHED.] A 
 45.13  restructured teacher compensation system is established to 
 45.14  provide incentives for teachers to continuously improve their 
 45.15  knowledge and skills, for school districts to successfully 
 45.16  recruit and retain highly qualified teachers, and to support 
 45.17  teachers' roles in improving students' educational achievement. 
 45.18     Subd. 2.  [TEACHER PROFESSIONAL PAY LADDER.] (a) In order 
 45.19  to qualify for funding under this section, all of a district's 
 45.20  eligible probationary teachers defined in paragraph (c) must be 
 45.21  compensated according to the teacher professional pay ladder 
 45.22  schedule instead of the existing step and lane salary schedule.  
 45.23  The professional pay ladder is as described in this section.  A 
 45.24  district must include in a teacher professional pay ladder 
 45.25  schedule the conditions needed for a teacher to advance to each 
 45.26  subsequent progression.  The schedule and conditions must be 
 45.27  developed in collaboration with the exclusive bargaining 
 45.28  representative of the teachers and approved by the school 
 45.29  board.  The restructured teacher compensation system must 
 45.30  accurately and adequately reflect teachers' level of content 
 45.31  knowledge and general pedagogy, include professional standards 
 45.32  of best practices, and promote professional growth and 
 45.33  expertise.  The professional pay ladder must contain an 
 45.34  evaluation mechanism at each subsequent progression that is 
 45.35  aligned with teacher accountability provisions in section 
 45.36  120B.32, subdivision 4. 
 46.1      (b) The restructured teacher compensation system may 
 46.2   provide compensation increases to teachers who attain additional 
 46.3   relevant knowledge and skills. 
 46.4      (c) All teachers with fewer than three years of teaching 
 46.5   experience who are newly hired in a district that implements a 
 46.6   professional pay ladder must be placed on the professional pay 
 46.7   ladder.  
 46.8      Subd. 3.  [ADDITIONAL DAYS FOR ELIGIBLE PROBATIONARY 
 46.9   TEACHER INDUCTION AND MENTORING.] (a) To be eligible to 
 46.10  implement a restructured teacher compensation system, 
 46.11  participating teachers, which must include eligible probationary 
 46.12  teachers, and school districts must agree to increase by at 
 46.13  least ten days per school year the number of days devoted to 
 46.14  staff development activities.  The ten additional days must be: 
 46.15     (1) the equivalent in hours of ten school days, consistent 
 46.16  with section 120A.41; and 
 46.17     (2) calculated in terms of the number of days that teachers 
 46.18  with continuing contract or tenure rights must work.  
 46.19  Teachers and school districts must use the additional days for 
 46.20  establishing and implementing a new teacher induction and 
 46.21  mentoring program that provides continuous learning 
 46.22  opportunities, ongoing orientation, and sustained teacher 
 46.23  support.  Teachers and school districts may schedule some 
 46.24  additional days during the school year.  
 46.25     (b) Teachers and school districts are encouraged to use the 
 46.26  resources of existing educational institutions and organizations 
 46.27  to establish and implement the program.  
 46.28     (c) Teachers and school districts may extend the work year 
 46.29  of nonparticipating teachers in order to provide induction and 
 46.30  mentoring activities for peer review and assessment, and for 
 46.31  professional development that aligns with the district's 
 46.32  accountability system if the exclusive bargaining representative 
 46.33  of the teachers and the school board agree to the terms and 
 46.34  conditions under which to extend the work year of 
 46.35  nonparticipating teachers providing the mentoring.  
 46.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 47.1   following final enactment.  
 47.2      Sec. 7.  [120B.34] [ALTERNATIVE COMPENSATION AID.] 
 47.3      A school district that meets the conditions of section 
 47.4   120B.33 is eligible for alternative compensation aid.  
 47.5   Alternative compensation aid for a qualifying school district 
 47.6   equals $2,000 times the number of eligible probationary teachers 
 47.7   teaching in the school district during the current school year 
 47.8   plus $500 times the number of nonprobationary teachers providing 
 47.9   induction and mentoring activities for peer review and 
 47.10  assessment during the current school year.  For purposes of this 
 47.11  section, the number of eligible probationary teachers includes 
 47.12  any nontenured licensed teacher or licensed teacher without a 
 47.13  continuing contract who is working at least 60 percent of a 
 47.14  full-time teacher's hours.  This aid is available to a school 
 47.15  district only after the school board and the exclusive 
 47.16  bargaining representative of the teachers sign and submit to the 
 47.17  commissioner of the department of children, families, and 
 47.18  learning a written statement that they have developed an 
 47.19  alternative teacher compensation proposal based on the system 
 47.20  accountability and educational improvement plan under section 
 47.21  120B.32.  The aid received under this section must be used for 
 47.22  activities under section 120B.33, subdivision 3. 
 47.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.  
 47.24     Sec. 8.  Minnesota Statutes 2000, section 120B.35, is 
 47.25  amended to read: 
 47.26     120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.] 
 47.27     Subdivision 1.  [VALUE ADDED ASSESSMENT.] (a) "Value added 
 47.28  assessment" is the basis for defining adequate yearly progress 
 47.29  and for determining student achievement levels and has the 
 47.30  components described in paragraphs (b), (c), and (d). 
 47.31     (b) A value added assessment is a statistical system for 
 47.32  assessing educational outcomes that relies on measures of 
 47.33  student learning to estimate teacher, school, and school 
 47.34  district statistical distributions.  The system uses available 
 47.35  and appropriate data as input to explain differences in prior 
 47.36  student attainment so that the impact of the teacher, school, 
 48.1   and school district on a student's educational progress is 
 48.2   estimated on a constant student attainment basis.  The impact 
 48.3   that a teacher, school, or school district has on a student's 
 48.4   progress, or lack of progress, in making educational 
 48.5   advancements or acquiring learning is the "effect" of the 
 48.6   teacher, school, or school district on a student's educational 
 48.7   progress.  
 48.8      (c) The system includes mixed model methodologies that 
 48.9   provide linear unbiased prediction for the effect of the 
 48.10  teacher, school, and school district on the student's 
 48.11  educational progress.  The system adequately provides these 
 48.12  estimates for classrooms where a single teacher teaches multiple 
 48.13  subjects to the same group of students, for team teaching 
 48.14  arrangements, and for other teaching circumstances. 
 48.15     (d) In order to minimize ceiling and floor effects, the 
 48.16  metrics used to measure student learning are linear scales that 
 48.17  cover the entire range of subjects contained in a school's 
 48.18  academic curriculum.  A strong relationship exists between the 
 48.19  metrics and the academic curriculum for the applicable grade 
 48.20  level and subject. 
 48.21     Subd. 2.  [STUDENT ACHIEVEMENT LEVELS.] (a) Consistent with 
 48.22  subdivision 1, each school year, a school district must 
 48.23  determine if the student achievement levels at each school site 
 48.24  meet state and local expectations.  If student achievement 
 48.25  levels at a school site do not meet state and local expectations 
 48.26  for two out of three consecutive school years, beginning with 
 48.27  the 2000-2001 school year, the district must work with the 
 48.28  school site to adopt a plan to raise student achievement levels 
 48.29  to meet state and local expectations.  ~~The legislature will~~ 
 48.30  ~~determine state expectations after receiving a recommendation~~ 
 48.31  ~~from the commissioner of children, families, and learning.~~  
 48.32     (b) The department, at a district's request, must assist 
 48.33  the district and the school site in developing a plan to improve 
 48.34  student achievement.  The plan must include parental involvement 
 48.35  components. 
 48.36     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 49.1   2001-2002 school year and later.  
 49.2      Sec. 9.  Minnesota Statutes 2000, section 121A.11, is 
 49.3   amended by adding a subdivision to read: 
 49.4      Subd. 3.  [PLEDGE OF ALLEGIANCE.] (a) All public and 
 49.5   charter school students shall recite the pledge of allegiance to 
 49.6   the flag of the United States of America one or more times each 
 49.7   week.  The recitation shall be conducted: 
 49.8      (1) by each individual classroom teacher or the teacher's 
 49.9   surrogate; or 
 49.10     (2) over a school intercom system by a person designated by 
 49.11  the school principal or other person having administrative 
 49.12  control over the school. 
 49.13  A local school board or a charter school board of directors 
 49.14  annually, by majority vote, may waive this requirement.  
 49.15     (b) Any student or teacher who objects to reciting the 
 49.16  pledge must be excused from participating without penalty. 
 49.17     (c) A local school board or a charter school board of 
 49.18  directors that waives the requirement to recite the pledge of 
 49.19  allegiance under paragraph (a) may adopt a district or school 
 49.20  policy regarding the reciting of the pledge of allegiance. 
 49.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 49.22  following final enactment. 
 49.23     Sec. 10.  Minnesota Statutes 2000, section 121A.11, is 
 49.24  amended by adding a subdivision to read: 
 49.25     Subd. 4.  [INSTRUCTION.] Unless this requirement is waived 
 49.26  annually by a majority vote of the school board, a school 
 49.27  district must instruct students in the proper etiquette toward, 
 49.28  correct display of, and respect for the flag, and in patriotic 
 49.29  exercises.  The instruction must be part of the district's fifth 
 49.30  grade social studies curriculum. 
 49.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 49.32  following final enactment.  Each school district must begin the 
 49.33  instruction required under this section no later than the 
 49.34  2002-2003 school year. 
 49.35     Sec. 11.  Minnesota Statutes 2000, section 121A.45, 
 49.36  subdivision 2, is amended to read: 
 50.1      Subd. 2.  [GROUNDS FOR DISMISSAL.] A pupil may be dismissed 
 50.2   on any of the following grounds: 
 50.3      (a) willful violation of any reasonable school board 
 50.4   regulation.  Such regulation must be clear and definite to 
 50.5   provide notice to pupils that they must conform their conduct to 
 50.6   its requirements; 
 50.7      (b) willful conduct that ~~materially and~~ 
 50.8   ~~substantially~~ significantly disrupts the rights of others to an 
 50.9   education, or the ability of school personnel to perform their 
 50.10  duties, or school sponsored extracurricular activities; or 
 50.11     (c) willful conduct that endangers the pupil or other 
 50.12  pupils, or surrounding persons, including school district 
 50.13  employees, or property of the school. 
 50.14     Sec. 12.  Minnesota Statutes 2000, section 121A.45, is 
 50.15  amended by adding a subdivision to read: 
 50.16     Subd. 3.  [PARENT NOTIFICATION AND MEETING.] If a pupil's 
 50.17  total days of removal from school exceeds ten cumulative days in 
 50.18  a school year, the school district shall make reasonable 
 50.19  attempts to convene a meeting with the pupil and the pupil's 
 50.20  parent or guardian prior to subsequently removing the pupil from 
 50.21  school.  The purpose of this meeting is to attempt to determine 
 50.22  the pupil's need for assessment or other services. 
 50.23     Sec. 13.  Minnesota Statutes 2000, section 121A.582, is 
 50.24  amended to read: 
 50.25     121A.582 [STUDENT DISCIPLINE; REASONABLE FORCE.] 
 50.26     Subdivision 1.  [REASONABLE FORCE STANDARD.] (a) A 
 50.27  teacher or school principal, in exercising the person's lawful 
 50.28  authority, may use reasonable force when it is necessary under 
 50.29  the circumstances to correct or restrain a student or prevent 
 50.30  bodily harm or death to another. 
 50.31     (b) A school employee, school bus driver, or other agent of 
 50.32  a district, in exercising the person's lawful authority, may use 
 50.33  reasonable force when it is necessary under the circumstances to 
 50.34  restrain a student or prevent bodily harm or death to another. 
 50.35     (c) Paragraphs (a) and (b) do not authorize conduct 
 50.36  prohibited under sections 121A.58 and 121A.67. 
 51.1      Subd. 2.  [CIVIL LIABILITY.] (a) A teacher or school 
 51.2   principal who, in the exercise of the person's lawful authority, 
 51.3   uses reasonable force under the standard in subdivision 1, 
 51.4   paragraph (a), has a defense against a civil action for damages 
 51.5   under section 123B.25. 
 51.6      (b) A school employee, bus driver, or other agent of a 
 51.7   district who, in the exercise of the person's lawful authority, 
 51.8   uses reasonable force under the standard in subdivision 1, 
 51.9   paragraph (b), has a defense against a civil action for damages 
 51.10  under section 123B.25. 
 51.11     Subd. 3.  [CRIMINAL PROSECUTION.] (a) A teacher or school 
 51.12  principal who, in the exercise of the person's lawful authority, 
 51.13  uses reasonable force under the standard in subdivision 1, 
 51.14  paragraph (a), has a defense against a criminal prosecution 
 51.15  under section 609.06, subdivision 1. 
 51.16     (b) A school employee, bus driver, or other agent of a 
 51.17  district who, in the exercise of the person's lawful authority, 
 51.18  uses reasonable force under the standard in subdivision 1, 
 51.19  paragraph (b), has a defense against a criminal prosecution 
 51.20  under section 609.06, subdivision 1. 
 51.21     Subd. 4.  [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 
 51.22  defense in this section is supplementary to those specified in 
 51.23  section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 
 51.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 51.25  following final enactment. 
 51.26     Sec. 14.  Minnesota Statutes 2000, section 121A.61, 
 51.27  subdivision 2, is amended to read: 
 51.28     Subd. 2.  [GROUNDS FOR REMOVAL FROM CLASS.] The policy must 
 51.29  establish the various grounds for which a student may be removed 
 51.30  from a class in the district for a period of time ~~pursuant~~ 
 51.31  ~~to~~ under the procedures specified in the policy.  The policy 
 51.32  must include a procedure for notifying and meeting with a 
 51.33  student's parent or guardian to discuss the problem that is 
 51.34  causing the student to be removed from class after the student 
 51.35  has been removed from class more than ten times in one school 
 51.36  year.  The grounds in the policy must include at least the 
 52.1   following provisions as well as other grounds determined 
 52.2   appropriate by the board:  
 52.3      (a) willful conduct ~~which materially and substantially~~ that 
 52.4   significantly disrupts the rights of others to an education, 
 52.5   including conduct that interferes with a teacher's ability to 
 52.6   teach or communicate effectively with students in a class or 
 52.7   with the ability of other students to learn; 
 52.8      (b) willful conduct ~~which~~ that endangers surrounding 
 52.9   persons, including school district employees, the student or 
 52.10  other students, or the property of the school; and 
 52.11     (c) willful violation of any rule of conduct specified in 
 52.12  the discipline policy adopted by the board.  
 52.13     Sec. 15.  Minnesota Statutes 2000, section 122A.06, is 
 52.14  amended by adding a subdivision to read: 
 52.15     Subd. 4.  [COMPREHENSIVE, SCIENTIFICALLY BASED READING 
 52.16  INSTRUCTION.] "Comprehensive, scientifically based reading 
 52.17  instruction" includes instruction and practice in phonemic 
 52.18  awareness, phonics and other word-recognition skills, and guided 
 52.19  oral reading for beginning readers, as well as extensive silent 
 52.20  reading, vocabulary instruction, instruction in comprehension, 
 52.21  and instruction that fosters understanding and higher-order 
 52.22  thinking for readers of all ages and proficiency levels. 
 52.23     Sec. 16.  Minnesota Statutes 2000, section 122A.09, 
 52.24  subdivision 4, is amended to read: 
 52.25     Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
 52.26  rules to license public school teachers and interns subject to 
 52.27  chapter 14. 
 52.28     (b) The board must adopt rules requiring a person to 
 52.29  successfully complete a skills examination in reading, writing, 
 52.30  and mathematics as a requirement for initial teacher licensure.  
 52.31  Such rules must require college and universities offering a 
 52.32  board approved teacher preparation program to provide remedial 
 52.33  assistance to persons who did not achieve a qualifying score on 
 52.34  the skills examination, including those for whom English is a 
 52.35  second language. 
 52.36     (c) The board must adopt rules to approve teacher 
 53.1   preparation programs.  The board, upon the request of a 
 53.2   post-secondary student preparing for teacher licensure or a 
 53.3   licensed graduate of a teacher preparation program, shall assist 
 53.4   in resolving a dispute between the person and a post-secondary 
 53.5   institution providing a teacher preparation program when the 
 53.6   dispute involves an institution's recommendation for licensure 
 53.7   affecting the person or the person's credentials.  At the 
 53.8   board's discretion, assistance may include the application of 
 53.9   chapter 14. 
 53.10     (d) The board must provide the leadership and shall adopt 
 53.11  rules for the redesign of teacher education programs to 
 53.12  implement a research based, results-oriented curriculum that 
 53.13  focuses on the skills teachers need in order to be effective.  
 53.14  The board shall implement new systems of teacher preparation 
 53.15  program evaluation to assure program effectiveness based on 
 53.16  proficiency of graduates in demonstrating attainment of program 
 53.17  outcomes. 
 53.18     (e) The board must adopt rules requiring successful 
 53.19  completion of an examination of general pedagogical knowledge 
 53.20  and examinations of licensure-specific teaching skills.  The 
 53.21  rules shall be effective on the dates determined by the board, 
 53.22  but not later than September 1, 2001. 
 53.23     (f) The board must adopt rules requiring teacher educators 
 53.24  to work directly with elementary or secondary school teachers in 
 53.25  elementary or secondary schools to obtain periodic exposure to 
 53.26  the elementary or secondary teaching environment. 
 53.27     (g) The board must grant licenses to interns and to 
 53.28  candidates for initial licenses. 
 53.29     (h) The board must design and implement an assessment 
 53.30  system which requires a candidate for an initial license and 
 53.31  first continuing license to demonstrate the abilities necessary 
 53.32  to perform selected, representative teaching tasks at 
 53.33  appropriate levels. 
 53.34     (i) The board must receive recommendations from local 
 53.35  committees as established by the board for the renewal of 
 53.36  teaching licenses. 
 54.1      (j) The board must grant life licenses to those who qualify 
 54.2   according to requirements established by the board, and suspend 
 54.3   or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
 54.4   board must not establish any expiration date for application for 
 54.5   life licenses.  
 54.6      (k) The board must adopt rules that require all licensed 
 54.7   teachers who are renewing their continuing license to include in 
 54.8   their renewal requirements further preparation in the areas of 
 54.9   using positive behavior interventions and in accommodating, 
 54.10  modifying, and adapting curricula, materials, and strategies to 
 54.11  appropriately meet the needs of individual students and ensure 
 54.12  adequate progress toward the state's graduation rule.  ~~The rules~~ 
 54.13  ~~adopted under this paragraph apply to teachers who renew their~~ 
 54.14  ~~licenses in year 2001 and later.~~ 
 54.15     (l) In adopting rules to license public school teachers who 
 54.16  provide health-related services for disabled children, the board 
 54.17  shall adopt rules consistent with license or registration 
 54.18  requirements of the commissioner of health and the 
 54.19  health-related boards who license personnel who perform similar 
 54.20  services outside of the school. 
 54.21     (m) The board must adopt rules that require all licensed 
 54.22  teachers who are renewing their continuing license to include in 
 54.23  their renewal requirements further reading preparation, 
 54.24  consistent with section 122A.06, subdivision 4.  The rules do 
 54.25  not take effect until they are approved by law.  
 54.26     <b>[EFFECTIVE DATE.]</b> This section is effective for teachers 
 54.27  who renew their licenses in year 2004 and later. 
 54.28     Sec. 17.  Minnesota Statutes 2000, section 122A.18, 
 54.29  subdivision 2, is amended to read: 
 54.30     Subd. 2.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
 54.31  (a) The board of teaching must issue licenses under its 
 54.32  jurisdiction to persons the board finds to be qualified and 
 54.33  competent for their respective positions. 
 54.34     (b) The board must require a person to successfully 
 54.35  complete an examination of skills in reading, writing, and 
 54.36  mathematics before being granted an initial teaching license to 
 55.1   provide direct instruction to pupils in prekindergarten, 
 55.2   elementary, secondary, or special education programs.  The board 
 55.3   must require colleges and universities offering a board approved 
 55.4   teacher preparation program to provide remedial assistance that 
 55.5   includes a formal diagnostic component to persons enrolled in 
 55.6   their institution who did not achieve a qualifying score on the 
 55.7   skills examination, including those for whom English is a second 
 55.8   language.  The colleges and universities must provide assistance 
 55.9   in the specific academic areas of deficiency in which the person 
 55.10  did not achieve a qualifying score.  School districts must 
 55.11  provide similar, appropriate, and timely remedial assistance 
 55.12  that includes a formal diagnostic component and mentoring to 
 55.13  those persons employed by the district who completed their 
 55.14  teacher education program outside the state of Minnesota, 
 55.15  received a one-year license to teach in Minnesota and did not 
 55.16  achieve a qualifying score on the skills examination, including 
 55.17  those persons for whom English is a second language.  The board 
 55.18  of teaching shall report annually to the education committees of 
 55.19  the legislature on the total number of teacher candidates during 
 55.20  the most recent school year taking the skills examination, the 
 55.21  number who achieve a qualifying score on the examination, the 
 55.22  number who do not achieve a qualifying score on the examination, 
 55.23  the distribution of all candidates' scores, the number of 
 55.24  candidates who have taken the examination at least once before, 
 55.25  and the number of candidates who have taken the examination at 
 55.26  least once before and achieve a qualifying score.  
 55.27     (c) A person who has completed an approved teacher 
 55.28  preparation program and obtained a one-year license to teach, 
 55.29  but has not successfully completed the skills examination, may 
 55.30  renew the one-year license for two additional one-year periods.  
 55.31  Each renewal of the one-year license is contingent upon the 
 55.32  licensee: 
 55.33     (1) providing evidence of participating in an approved 
 55.34  remedial assistance program provided by a school district or 
 55.35  post-secondary institution that includes a formal diagnostic 
 55.36  component in the specific areas in which the licensee did not 
 56.1   obtain qualifying scores; and 
 56.2      (2) attempting to successfully complete the skills 
 56.3   examination during the period of each one-year license. 
 56.4      (d) The board of teaching must grant continuing licenses 
 56.5   only to those persons who have met board criteria for granting a 
 56.6   continuing license, which includes successfully completing the 
 56.7   skills examination in reading, writing, and mathematics. 
 56.8      (e) All colleges and universities approved by the board of 
 56.9   teaching to prepare persons for teacher licensure must include 
 56.10  in their teacher preparation programs a common core of teaching 
 56.11  knowledge and skills to be acquired by all persons recommended 
 56.12  for teacher licensure.  This common core shall meet the 
 56.13  standards developed by the interstate new teacher assessment and 
 56.14  support consortium in its 1992 "model standards for beginning 
 56.15  teacher licensing and development."  Amendments to standards 
 56.16  adopted under this paragraph are covered by chapter 14.  The 
 56.17  board of teaching shall report annually to the education 
 56.18  committees of the legislature on the performance of teacher 
 56.19  candidates on common core assessments of knowledge and skills 
 56.20  under this paragraph during the most recent school year. 
 56.21     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 56.22  2001-2002 school year and later. 
 56.23     Sec. 18.  Minnesota Statutes 2000, section 122A.18, 
 56.24  subdivision 2a, is amended to read: 
 56.25     Subd. 2a.  [READING STRATEGIES.] (a) All colleges and 
 56.26  universities approved by the board of teaching to prepare 
 56.27  persons for classroom teacher licensure must include in their 
 56.28  teacher preparation programs reading best practices that enable 
 56.29  classroom teacher licensure candidates to know how to teach 
 56.30  reading, such as phonics or other research-based best practices. 
 56.31     (b) Colleges and universities offering board-approved 
 56.32  teacher preparation programs must require instruction in the 
 56.33  application of comprehensive, scientifically based reading 
 56.34  instruction programs, as defined in section 122A.06, subdivision 
 56.35  4. 
 56.36     <b>[EFFECTIVE DATE.]</b> This section is effective for candidates 
 57.1   for initial licensure in year 2004 and later. 
 57.2      Sec. 19.  Minnesota Statutes 2000, section 122A.18, is 
 57.3   amended by adding a subdivision to read: 
 57.4      Subd. 2b.  [READING SPECIALIST.] Not later than July 1, 
 57.5   2002, the board of teaching must adopt rules providing for the 
 57.6   licensure of reading teachers. 
 57.7      Sec. 20.  Minnesota Statutes 2000, section 122A.61, 
 57.8   subdivision 1, is amended to read: 
 57.9      Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] (a) A district 
 57.10  is required to reserve revenue for staff development purposes.  
 57.11  An amount equal to at least one percent of the basic revenue 
 57.12  under section 126C.10, subdivision 2, must be reserved for 
 57.13  teacher mentoring and teacher induction programs according to 
 57.14  paragraph (d) and an amount equal to at least ~~two~~ one percent of 
 57.15  the basic revenue under section 126C.10, subdivision 2, must be 
 57.16  reserved for in-service education for programs under section 
 57.17  120B.22, subdivision 2, for staff development plans, including 
 57.18  plans for challenging instructional activities and experiences 
 57.19  under section 122A.60, and for curriculum development and 
 57.20  programs, other in-service education, teachers' workshops, 
 57.21  teacher conferences, the cost of substitute teachers staff 
 57.22  development purposes, and other related costs for staff 
 57.23  development efforts.  
 57.24     (b) A district may annually waive the requirement to 
 57.25  reserve their basic revenue under this section if a majority 
 57.26  vote of the licensed teachers in the district and a majority 
 57.27  vote of the school board agree to a resolution to waive the 
 57.28  requirement.  A district in statutory operating debt is exempt 
 57.29  from reserving basic revenue according to this section.  
 57.30  Districts may expend an additional amount of unreserved revenue 
 57.31  for staff development based on their needs.  
 57.32     (c) With the exception of amounts reserved for new teacher 
 57.33  mentoring and teacher induction programs, and staff development 
 57.34  from revenues allocated directly to school sites, the board must 
 57.35  initially allocate 50 percent of the reserved revenue to each 
 57.36  school site in the district on a per teacher basis, which must 
 58.1   be retained by the school site until used.  The board may retain 
 58.2   25 percent to be used for district wide staff development 
 58.3   efforts.  The remaining 25 percent of the revenue must be used 
 58.4   to make grants to school sites for best practices methods.  A 
 58.5   grant may be used for any purpose authorized under section 
 58.6   120B.22, subdivision 2, 122A.60, or for the costs of curriculum 
 58.7   development and programs, other in-service education, teachers' 
 58.8   workshops, teacher conferences, substitute teachers for staff 
 58.9   development purposes, and other staff development efforts, and 
 58.10  determined by the site professional development team.  The site 
 58.11  professional development team must demonstrate to the school 
 58.12  board the extent to which staff at the site have met the 
 58.13  outcomes of the program.  The board may withhold a portion of 
 58.14  initial allocation of revenue if the staff development outcomes 
 58.15  are not being met. 
 58.16     (d) A school district must use its reserved revenue for 
 58.17  teacher mentoring and teacher induction programs to serve 
 58.18  teachers who have taught five or fewer years in the school 
 58.19  district.  Teacher mentoring and induction activities include 
 58.20  programs designed to train teachers to serve as mentors, provide 
 58.21  ongoing peer coaching and assessment, assist in developing 
 58.22  individual professional development plans, and offer other 
 58.23  structured learning experiences to new teachers. 
 58.24     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 58.25  fiscal year 2002 and later. 
 58.26     Sec. 21.  [122A.76] [BEST PRACTICES.] 
 58.27     "Best practices" means research-based proven practices.  
 58.28     Sec. 22.  Minnesota Statutes 2000, section 123B.03, 
 58.29  subdivision 3, is amended to read: 
 58.30     Subd. 3.  [DEFINITIONS.] For purposes of this section: 
 58.31     (a) "School" means a school as defined in section 120A.22, 
 58.32  subdivision 4, except a home-school, and includes a school 
 58.33  receiving tribal contract or grant school aid under section 
 58.34  124D.83; school, for the purposes of this section, also means a 
 58.35  service cooperative, a special education cooperative, or an 
 58.36  education district under Minnesota Statutes 1997 Supplement, 
 59.1   section 123.35, a charter school under section 124D.10, and a 
 59.2   joint powers district under section 471.59. 
 59.3      (b) "School hiring authority" means the school principal or 
 59.4   other person having general control and supervision of the 
 59.5   school. 
 59.6      Sec. 23.  [123B.305] [REASONABLE ACCESS; DISTRIBUTION OF 
 59.7   WRITTEN MATERIALS; OFF-TIME USE OF SCHOOL FACILITIES.] 
 59.8      (a) A public school may adopt a policy to give community 
 59.9   organizations that provide programs or services to children or 
 59.10  youth with reasonable access to the school's facilities for the 
 59.11  purpose of distributing written materials appropriate to the 
 59.12  school setting.  A district is not required to distribute 
 59.13  written materials that disrupt the school's educational 
 59.14  program.  A school must not deny a community organization 
 59.15  reasonable access under this paragraph based on the 
 59.16  organization's membership, policies or ideological views.  
 59.17     (b) A public school must apply the same conditions to all 
 59.18  community organizations that seek off-time use of the school's 
 59.19  facilities and must not deny an organization access to the 
 59.20  school's facilities because of the organization's membership, 
 59.21  policies or ideological views. 
 59.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 59.23  following final enactment. 
 59.24     Sec. 24.  Minnesota Statutes 2000, section 124D.10, is 
 59.25  amended by adding a subdivision to read: 
 59.26     Subd. 3a.  [CONFLICT OF INTEREST.] (a) A member of a 
 59.27  charter school board of directors is prohibited from serving as 
 59.28  a member of the board of directors or as an employee or agent of 
 59.29  or a contractor with an entity with whom the charter school 
 59.30  contracts, directly or indirectly, for professional services, 
 59.31  goods, or facilities.  A violation of this prohibition renders a 
 59.32  contract voidable at the option of the commissioner.  A member 
 59.33  of a charter school board of directors who violates this 
 59.34  prohibition shall be individually liable to the charter school 
 59.35  for any damage caused by the violation.  
 59.36     (b) An individual may serve as a member of the board of 
 60.1   directors if no conflict of interest under paragraph (a) exists. 
 60.2      (c) The conflict of interest provisions under this 
 60.3   subdivision do not apply to the standard compensation paid to a 
 60.4   teacher employed by the charter school who also serves as a 
 60.5   member of the board of directors. 
 60.6      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 60.7   2001-2002 school year and following. 
 60.8      Sec. 25.  Minnesota Statutes 2000, section 124D.10, 
 60.9   subdivision 4, is amended to read: 
 60.10     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 60.11  authorize one or more licensed teachers under section 122A.18, 
 60.12  subdivision 1, to operate a charter school subject to approval 
 60.13  by the commissioner.  A board must vote on charter school 
 60.14  application for sponsorship no later than 90 days after 
 60.15  receiving the application.  After 90 days, the applicant may 
 60.16  apply to the commissioner.  If a board elects not to sponsor a 
 60.17  charter school, the applicant may appeal the board's decision to 
 60.18  the commissioner.  If the commissioner authorizes the school, 
 60.19  the commissioner must sponsor the school according to this 
 60.20  section.  The school must be organized and operated as a 
 60.21  cooperative under chapter 308A or nonprofit corporation under 
 60.22  chapter 317A and the provisions under the applicable chapter 
 60.23  shall apply to the school except as provided in this section.  
 60.24     (b) Before the operators may form and operate a school, the 
 60.25  sponsor must file an affidavit with the commissioner stating its 
 60.26  intent to authorize a charter school.  The affidavit must state 
 60.27  the terms and conditions under which the sponsor would authorize 
 60.28  a charter school.  The commissioner must approve or disapprove 
 60.29  the sponsor's proposed authorization within 60 days of receipt 
 60.30  of the affidavit.  Failure to obtain commissioner approval 
 60.31  precludes a sponsor from authorizing the charter school that was 
 60.32  the subject of the affidavit.  
 60.33     (c) The operators authorized to organize and operate a 
 60.34  school, before entering into a contract or other agreement for 
 60.35  professional or other services, goods, or facilities, must ~~hold~~ 
 60.36  ~~an election for members of the school's board of directors in a~~ 
 61.1   ~~timely manner after the school is operating~~ incorporate as a 
 61.2   cooperative under chapter 308A or as a nonprofit corporation 
 61.3   under chapter 317A and must establish a board of directors 
 61.4   composed of at least five members until a timely election for 
 61.5   members of the charter school board of directors is held 
 61.6   according to the school's articles and bylaws.  A charter school 
 61.7   board of directors must be composed of at least seven members.  
 61.8   Any staff members who are employed at the school, including 
 61.9   teachers providing instruction under a contract with a 
 61.10  cooperative, and all parents of children enrolled in the school 
 61.11  may participate in the election for members of the school's 
 61.12  board of directors.  Licensed teachers employed at the school, 
 61.13  including teachers providing instruction under a contract with a 
 61.14  cooperative, must be a majority of the members of the board of 
 61.15  directors before the school completes its third year of 
 61.16  operation, unless the commissioner waives the requirement 
 61.17  for ~~the school~~ a majority of licensed teachers on the board.  ~~A~~ 
 61.18  ~~provisional board may operate before the election of the~~ 
 61.19  ~~school's board of directors.~~  Board of director meetings must 
 61.20  comply with chapter 13D. 
 61.21     (d) The granting or renewal of a charter by a sponsoring 
 61.22  entity must not be conditioned upon the bargaining unit status 
 61.23  of the employees of the school.  
 61.24     (e) The state board for charter schools annually must 
 61.25  provide timely financial management training to newly elected 
 61.26  members of a charter school board of directors and ongoing 
 61.27  training to other members of a charter school board of 
 61.28  directors.  Training must address ways to: 
 61.29     (1) proactively assess opportunities for a charter school 
 61.30  to maximize all available revenue sources; 
 61.31     (2) establish and maintain complete, auditable records for 
 61.32  the charter school; 
 61.33     (3) establish proper filing techniques; 
 61.34     (4) document formal actions of the charter school, 
 61.35  including meetings of the charter school board of directors; 
 61.36     (5) properly manage and retain charter school and student 
 62.1   records; 
 62.2      (6) comply with state and federal payroll recordkeeping 
 62.3   requirements; and 
 62.4      (7) address other similar factors that facilitate 
 62.5   establishing and maintaining complete records on the charter 
 62.6   school's operations.  
 62.7      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 62.8   2001-2002 school year and later. 
 62.9      Sec. 26.  Minnesota Statutes 2000, section 124D.10, is 
 62.10  amended by adding a subdivision to read: 
 62.11     Subd. 6a.  [AUDIT REPORT.] The charter school must submit 
 62.12  an audit report to the commissioner by December 31 each year.  
 62.13  The charter school, with the assistance of the auditor 
 62.14  conducting the audit, must include with the report a copy of all 
 62.15  charter school agreements for corporate management services.  If 
 62.16  the entity that provides the professional services to the 
 62.17  charter school is exempt from taxation under section 501 of the 
 62.18  Internal Revenue Code of 1986, that entity must file with the 
 62.19  commissioner by February 15 a copy of the annual return required 
 62.20  under section 6033 of the Internal Revenue Code of 1986.  If the 
 62.21  commissioner receives as part of the audit report a management 
 62.22  letter indicating that a material weakness exists in the 
 62.23  financial reporting systems of a charter school, the charter 
 62.24  school must submit a written report to the commissioner 
 62.25  explaining how the material weakness will be resolved.  Upon the 
 62.26  request of an individual, the charter school must make available 
 62.27  in a timely fashion the minutes of meetings of members, the 
 62.28  board of directors, and committees having any of the authority 
 62.29  of the board of directors, and statements showing the financial 
 62.30  result of all operations and transactions affecting income and 
 62.31  surplus during the school's last annual accounting period and a 
 62.32  balance sheet containing a summary of its assets and liabilities 
 62.33  as of the closing date of the accounting period.  
 62.34     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 62.35  2001-2002 school year and later.  
 62.36     Sec. 27.  Minnesota Statutes 2000, section 124D.10, 
 63.1   subdivision 15, is amended to read: 
 63.2      Subd. 15.  [REVIEW AND COMMENT.] The department must review 
 63.3   and comment on the evaluation, by the sponsor, of the 
 63.4   performance of a charter school before the charter school's 
 63.5   contract is renewed.  A sponsor shall monitor and evaluate the 
 63.6   fiscal and student performance of the school, and may for this 
 63.7   purpose annually assess ~~the school~~ a charter school:  (1) in its 
 63.8   first, second, or third year of operation up to ~~$10~~ $30 per 
 63.9   student up to a maximum of ~~$3,500~~ $10,000; and (2) in its fourth 
 63.10  or a subsequent year of operation up to $10 per student up to a 
 63.11  maximum of $3,500.  The information for the review and comment 
 63.12  shall be reported by the sponsor to the commissioner of 
 63.13  children, families, and learning in a timely manner.  
 63.14  Periodically, the commissioner shall report trends or 
 63.15  suggestions based on the evaluation of charter school contracts 
 63.16  to the education committees of the state legislature.  
 63.17     Sec. 28.  Minnesota Statutes 2000, section 124D.10, is 
 63.18  amended by adding a subdivision to read: 
 63.19     Subd. 23a.  [EXCESSIVE LEASE COSTS; RECOVERY.] (a) This 
 63.20  subdivision does not apply to a lease in which: 
 63.21     (1) the lessor and lessee are not related parties, as 
 63.22  defined in this subdivision, as determined in writing by the 
 63.23  commissioner prior to the lease becoming effective; or 
 63.24     (2) the lessor and lessee are related parties, but the 
 63.25  lessor is a nonprofit corporation under chapter 317A or a 
 63.26  cooperative under chapter 308A. 
 63.27     (b) For purposes of this subdivision: 
 63.28     (1) A "related party" is an affiliate or close relative of 
 63.29  the other party in question, an affiliate of a close relative, 
 63.30  or a close relative of an affiliate.  
 63.31     (2) "Affiliate" means a person that directly, or indirectly 
 63.32  through one or more intermediaries, controls, or is controlled 
 63.33  by, or is under common control with, another person. 
 63.34     (3) "Close relative" means an individual whose relationship 
 63.35  by blood, marriage, or adoption to another individual is no more 
 63.36  remote than first cousin. 
 64.1      (4) "Person" means an individual or entity of any kind. 
 64.2      (5) "Control" includes the terms "controlling," "controlled 
 64.3   by," and "under common control with" and means the possession, 
 64.4   direct or indirect, of the power to direct or cause the 
 64.5   direction of the management, operations, or policies of a 
 64.6   person, whether through the ownership of voting securities, by 
 64.7   contract, or otherwise. 
 64.8      (c) A lease of real property to be used for a charter 
 64.9   school, not excluded in paragraph (a), must contain the 
 64.10  following statement:  "This lease is subject to Minnesota 
 64.11  Statutes, section 124D.10, subdivision 23a." 
 64.12     (d) A lease described in paragraph (c) does not go into 
 64.13  effect, and no rent or other payments may be made under the 
 64.14  lease, until the commissioner or a party to the lease has 
 64.15  recorded with the county recorder or filed with the registrar of 
 64.16  titles, whichever is appropriate, a document entitled "Notice of 
 64.17  Lien," stating that the commissioner of children, families, and 
 64.18  learning of the state of Minnesota claims a lien under this 
 64.19  subdivision on the real property, including fixtures.  The 
 64.20  notice of lien must contain a legal description of the leased 
 64.21  real property, be signed and acknowledged by the commissioner, 
 64.22  and meet all other applicable requirements for recording or 
 64.23  filing.  The lessor or lessee, as agreed between them, shall pay 
 64.24  the recording or filing fee. 
 64.25     (e) A lease described in paragraph (c) must contain the 
 64.26  following clause:  "The lessor under this lease hereby grants to 
 64.27  the commissioner of children, families, and learning of the 
 64.28  state of Minnesota a lien under Minnesota Statutes, section 
 64.29  124D.10, subdivision 23a, on the real property, including 
 64.30  fixtures, that is included in this lease.  This lien is 
 64.31  evidenced by a recorded or filed notice of lien, as required by 
 64.32  that subdivision."  
 64.33     (f) A lien granted under this subdivision secures the 
 64.34  rights of the commissioner under paragraph (g). 
 64.35     (g) The commissioner may recover from the lessor the amount 
 64.36  of rent or other payments made under this lease, to the extent 
 65.1   that the rent or other payments exceed the fair market rental 
 65.2   value of the real property, as determined by the commissioner.  
 65.3   If the lessor is not the holder of fee title to the real 
 65.4   property, the commissioner's right of recovery extends to the 
 65.5   holder of fee title if the lessor and holder of fee title are 
 65.6   related parties as defined in this subdivision. 
 65.7      (h) The lien created under this subdivision applies only to 
 65.8   the equity in the real property of the lessor or other party 
 65.9   against whom the commissioner has a right of recovery under 
 65.10  paragraph (g).  The lien created in this subdivision is 
 65.11  subordinate to the interest of any mortgagee or other lienholder 
 65.12  of the property, whether the mortgage or other lien is prior or 
 65.13  subsequent to the recording or filing of the lien created in 
 65.14  this subdivision, except that this provision does not apply to a 
 65.15  mortgagee or other lienholder that is a related party to the 
 65.16  lessor or other party against whom the commissioner has a right 
 65.17  of recovery under paragraph (g). 
 65.18     (i) The lien created in this subdivision is not enforceable 
 65.19  against, and is subordinate to, the interest of a good faith 
 65.20  purchaser for value of the real property who (1) is not a 
 65.21  related party of the lessor or of another party against whom the 
 65.22  commissioner has a right of recovery under paragraph (g), and 
 65.23  (2) purchases the real property before the recording or filing 
 65.24  of the notice of lien. 
 65.25     (j) If the parties to a lease to which this subdivision 
 65.26  applies fail to record or file the notice of lien, the 
 65.27  commissioner may do so at any time. 
 65.28     (k) If, or to the extent that, the commissioner determines 
 65.29  that the commissioner has no right of recovery under paragraph 
 65.30  (g), the commissioner shall provide to the lessor a release or 
 65.31  partial release of this lien.  Any recording or filing fees for 
 65.32  the release are the responsibility of the lessor. 
 65.33     (l) A decision or action of the commissioner under this 
 65.34  subdivision may be appealed under chapter 14.  
 65.35     (m) A lien created under this section may be foreclosed in 
 65.36  the manner provided in chapter 581, with reasonable attorney 
 66.1   fees to be determined by the court.  
 66.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 66.3   following final enactment and applies to any charter school 
 66.4   organized as of January 1, 2001, or thereafter.  
 66.5      Sec. 29.  Minnesota Statutes 2000, section 124D.11, 
 66.6   subdivision 4, is amended to read: 
 66.7      Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
 66.8   it economically advantageous to rent or lease a building or land 
 66.9   for any instructional purposes and it determines that the total 
 66.10  operating capital revenue under section 126C.10, subdivision 13, 
 66.11  is insufficient for this purpose, it may apply to the 
 66.12  commissioner for building lease aid for this purpose.  ~~Criteria~~ 
 66.13  ~~for aid approval and revenue uses shall be as defined for the~~ 
 66.14  ~~building lease levy in section 126C.40, subdivision 1,~~ 
 66.15  ~~paragraphs (a) and (b).~~  The commissioner must review and either 
 66.16  approve or deny a lease aid application using the following 
 66.17  criteria: 
 66.18     (1) the reasonableness of the price based on current market 
 66.19  values; 
 66.20     (2) the appropriateness of the space for the proposed 
 66.21  activity; 
 66.22     (3) the extent to which the lease conforms to applicable 
 66.23  state laws and rules; and 
 66.24     (4) the appropriateness of the proposed lease in the 
 66.25  context of the space needs and financial circumstances of the 
 66.26  charter school.  
 66.27  A charter school must not use the building lease aid it receives 
 66.28  for custodial, maintenance service, utility, or other operating 
 66.29  costs.  The amount of building lease aid per pupil unit served 
 66.30  for a charter school for any year shall not exceed the lesser of 
 66.31  (a) 90 percent of the approved cost or (b) the product of the 
 66.32  pupil units served for the current school year times $1,500. 
 66.33     Sec. 30.  Minnesota Statutes 2000, section 124D.11, 
 66.34  subdivision 9, is amended to read: 
 66.35     Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
 66.36  Notwithstanding section 127A.45, subdivision 3, aid payments for 
 67.1   the current fiscal year to a charter school not in its first 
 67.2   year of operation shall be of an equal amount on each of the 23 
 67.3   payment dates.  A charter school in its first year of operation 
 67.4   shall receive, on its first payment date, ten percent of its 
 67.5   cumulative amount guaranteed for the year and 22 payments of an 
 67.6   equal amount thereafter the sum of which shall be 90 percent of 
 67.7   the cumulative amount guaranteed. 
 67.8      (b) Notwithstanding section 127A.45, subdivision 3, and 
 67.9   paragraph (a), 90 percent of the start-up cost aid under 
 67.10  subdivision 8 shall be paid within 45 days after the first day 
 67.11  of student attendance for that school year. 
 67.12     (c) In order to receive state aid payments under this 
 67.13  subdivision, a charter school in its first three years of 
 67.14  operation must submit a quarterly enrollment report to the 
 67.15  department of children, families, and learning.  The report must 
 67.16  list each student by grade, show the student's start and end 
 67.17  dates, if any, with the charter school, and for any student 
 67.18  participating in a learning year program, the report must list 
 67.19  the hours and times of learning year activities.  The report 
 67.20  must be submitted not more than two weeks after the end of the 
 67.21  calendar quarter to the department.  The department must develop 
 67.22  a web-based reporting form for charter schools to use when 
 67.23  submitting enrollment reports.  A charter school in its fourth 
 67.24  and subsequent year of operation must submit enrollment 
 67.25  information to the department in the form and manner requested 
 67.26  by the department.  
 67.27     Sec. 31.  Minnesota Statutes 2000, section 124D.128, 
 67.28  subdivision 1, is amended to read: 
 67.29     Subdivision 1.  [PROGRAM ESTABLISHED.] A learning year 
 67.30  program provides instruction throughout the year.  A pupil may 
 67.31  participate in the program and to attain or accelerate 
 67.32  attainment of grade level requirements or graduation 
 67.33  requirements.  A learning year program may begin after the close 
 67.34  of the regular school year in June.  The program may be for 
 67.35  students in one or more grade levels from kindergarten through 
 67.36  grade 12.  
 68.1      ~~Students may participate in the program if they reside in:~~  
 68.2      ~~(1) a district that has been designated a learning year~~ 
 68.3   ~~site under subdivision 2;~~ 
 68.4      ~~(2) a district that is a member of the same education~~ 
 68.5   ~~district as a site; or~~ 
 68.6      ~~(3) a district that participates in the same area learning~~ 
 68.7   ~~center program as a site.~~  
 68.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 68.9   following final enactment. 
 68.10     Sec. 32.  Minnesota Statutes 2000, section 124D.128, 
 68.11  subdivision 2, is amended to read: 
 68.12     Subd. 2.  [COMMISSIONER DESIGNATION.] (a) An area learning 
 68.13  center designated by the state must be a site.  To be 
 68.14  designated, a district or center must demonstrate to the 
 68.15  commissioner that it will: 
 68.16     (1) provide a program of instruction that permits pupils to 
 68.17  receive instruction throughout the entire year; and 
 68.18     (2) maintain a record system that, for purposes of section 
 68.19  126C.05, permits identification of membership attributable to 
 68.20  pupils participating in the program.  The record system and 
 68.21  identification must ensure that the program will not have the 
 68.22  effect of increasing the total number of pupil units 
 68.23  attributable to an individual pupil as a result of a learning 
 68.24  year program.  The record system must include the date the pupil 
 68.25  originally enrolled in a learning year program, the pupil's 
 68.26  grade level, the date of each grade promotion, the average daily 
 68.27  membership generated in each grade level, the number of credits 
 68.28  or standards earned, and the number needed to graduate. 
 68.29     (b) A student who has not completed a school district's 
 68.30  graduation requirements may continue to enroll in courses the 
 68.31  student must complete in order to graduate until the student 
 68.32  satisfies the district's graduation requirements or the student 
 68.33  is 21 years old, whichever comes first. 
 68.34     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 68.35  following final enactment. 
 68.36     Sec. 33.  Minnesota Statutes 2000, section 124D.128, 
 69.1   subdivision 3, is amended to read: 
 69.2      Subd. 3.  [STUDENT PLANNING.] A district must inform all 
 69.3   pupils and their parents about the learning year program and 
 69.4   that participation in the program is optional.  A continual 
 69.5   learning plan must be developed at least annually for each pupil 
 69.6   with the participation of the pupil, parent or guardian, 
 69.7   teachers, and other staff; each participant must sign and date 
 69.8   the plan.  The plan must specify the learning experiences that 
 69.9   must occur ~~each~~ during the entire fiscal year and, for secondary 
 69.10  students, for graduation.  The plan must include:  
 69.11     (1) the pupil's learning objectives and experiences, 
 69.12  including courses or credits the pupil plans to complete each 
 69.13  year and, for a secondary pupil, the graduation requirements the 
 69.14  student must complete; 
 69.15     (2) the assessment measurements used to evaluate a pupil's 
 69.16  objectives; 
 69.17     (3) requirements for grade level or other appropriate 
 69.18  progression; and 
 69.19     (4) for pupils generating more than one average daily 
 69.20  membership in a given grade, an indication of which objectives 
 69.21  were unmet. 
 69.22  The plan may be modified to conform to district schedule 
 69.23  changes.  The district may not modify the plan if the 
 69.24  modification would result in delaying the student's time of 
 69.25  graduation.  
 69.26     Sec. 34.  Minnesota Statutes 2000, section 124D.128, 
 69.27  subdivision 6, is amended to read: 
 69.28     Subd. 6.  [REVENUE COMPUTATION AND REPORTING.] Aid and levy 
 69.29  revenue computations must be based on the total number of hours 
 69.30  of education programs for pupils in average daily membership for 
 69.31  each fiscal year.  ~~For purposes of section 126C.05,~~ Average 
 69.32  daily membership shall be computed ~~by dividing the total number~~ 
 69.33  ~~of hours of participation for the fiscal year by the minimum~~ 
 69.34  ~~number of hours for a year determined for the appropriate grade~~ 
 69.35  ~~level~~ under section 126C.05, subdivision 15.  Hours of 
 69.36  participation that occur after the close of the regular 
 70.1   instructional year and before July 1 must be attributed to the 
 70.2   following fiscal year.  ~~Thirty hours may be used for teacher~~ 
 70.3   ~~workshops, staff development, or parent-teacher conferences.  As~~ 
 70.4   ~~part of each pilot program, the department and each district~~ 
 70.5   ~~must report and evaluate the changes needed to adjust the dates~~ 
 70.6   ~~of the fiscal year for aid and levy computation and fiscal year~~ 
 70.7   ~~reporting.~~  For revenue computation purposes, the learning year 
 70.8   program shall generate revenue based on the formulas for the 
 70.9   fiscal year in which the services are provided.  The dates a 
 70.10  participating pupil is promoted must be reported in a timely 
 70.11  manner to the department. 
 70.12     ~~State aid and levy revenue computation for the learning~~ 
 70.13  ~~year programs begins July 1, 1988, for fiscal year 1989.~~  
 70.14     Sec. 35.  Minnesota Statutes 2000, section 124D.74, 
 70.15  subdivision 1, is amended to read: 
 70.16     Subdivision 1.  [PROGRAM DESCRIBED.] American Indian 
 70.17  ~~language and culture~~ education programs are programs in public 
 70.18  elementary and secondary schools, nonsectarian nonpublic, 
 70.19  community, tribal, or alternative schools enrolling American 
 70.20  Indian children designed to: 
 70.21     (1) ~~to~~ support post-secondary preparation for pupils; 
 70.22     (2) support the academic achievement of American Indian 
 70.23  students with identified focus to improve reading and mathematic 
 70.24  skills; 
 70.25     (3) make the curriculum more relevant to the needs, 
 70.26  interests, and cultural heritage of American Indian pupils; 
 70.27     ~~(2) to~~ (4) provide positive reinforcement of the self-image 
 70.28  of American Indian pupils; ~~and~~ 
 70.29     ~~(3) to~~ (5) develop intercultural awareness among pupils, 
 70.30  parents, and staff; and 
 70.31     (6) supplement, not supplant, state and federal educational 
 70.32  and cocurricular programs.  
 70.33  Program components may include:  ~~instruction in American Indian~~ 
 70.34  ~~language, literature, history, and culture~~ development of 
 70.35  support components for students in the areas of academic 
 70.36  achievement, retention, and attendance; development of support 
 71.1   components for staff, including in-service training and 
 71.2   technical assistance in methods of teaching American Indian 
 71.3   pupils; research projects, including experimentation with and 
 71.4   evaluation of methods of relating to American Indian pupils; 
 71.5   provision of personal and vocational counseling to American 
 71.6   Indian pupils; modification of curriculum, instructional 
 71.7   methods, and administrative procedures to meet the needs of 
 71.8   American Indian pupils; and ~~establishment of cooperative~~ 
 71.9   ~~liaisons with nonsectarian nonpublic, community, tribal or~~ 
 71.10  ~~alternative schools offering curricula which reflect American~~ 
 71.11  ~~Indian culture~~ supplemental instruction in American Indian 
 71.12  language, literature, history, and culture.  Districts offering 
 71.13  programs may make contracts for the provision of program 
 71.14  components by ~~nonsectarian nonpublic, community, tribal or~~ 
 71.15  ~~alternative schools~~ establishing cooperative liaisons with 
 71.16  tribal programs and American Indian social service agencies.  
 71.17  These programs may also be provided as components of early 
 71.18  childhood and family education programs. 
 71.19     Sec. 36.  Minnesota Statutes 2000, section 124D.74, 
 71.20  subdivision 2, is amended to read: 
 71.21     Subd. 2.  [VOLUNTARY ENROLLMENT.] Enrollment in American 
 71.22  Indian ~~language and culture~~ education programs must be 
 71.23  voluntary.  School districts and participating schools must make 
 71.24  affirmative efforts to encourage participation.  They shall 
 71.25  encourage parents to visit classes or come to school for a 
 71.26  conference explaining the nature of the program and provide 
 71.27  visits by school staff to parents' homes to explain the nature 
 71.28  of the program. 
 71.29     Sec. 37.  Minnesota Statutes 2000, section 124D.74, 
 71.30  subdivision 3, is amended to read: 
 71.31     Subd. 3.  [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 
 71.32  ENROLLMENT.] To the extent it is economically feasible, a 
 71.33  district or participating school may make provision for the 
 71.34  voluntary enrollment of non-American Indian children in the 
 71.35  instructional components of an American Indian ~~language and~~ 
 71.36  ~~culture~~ education program in order that they may acquire an 
 72.1   understanding of the cultural heritage of the American Indian 
 72.2   children for whom that particular program is designed.  However, 
 72.3   in determining eligibility to participate in a program, priority 
 72.4   must be given to American Indian children.  American Indian 
 72.5   children and other children enrolled in an existing nonpublic 
 72.6   school system may be enrolled on a shared time basis in American 
 72.7   Indian ~~language and culture~~ education programs. 
 72.8      Sec. 38.  Minnesota Statutes 2000, section 124D.74, 
 72.9   subdivision 4, is amended to read: 
 72.10     Subd. 4.  [LOCATION OF PROGRAMS.] American Indian ~~language~~ 
 72.11  ~~and culture~~ education programs must be located in facilities in 
 72.12  which regular classes in a variety of subjects are offered on a 
 72.13  daily basis.  Programs may operate on an extended day or 
 72.14  extended year basis. 
 72.15     Sec. 39.  Minnesota Statutes 2000, section 124D.74, 
 72.16  subdivision 6, is amended to read: 
 72.17     Subd. 6.  [NONVERBAL COURSES AND EXTRACURRICULAR 
 72.18  ACTIVITIES.] In predominantly nonverbal subjects, such as art, 
 72.19  music, and physical education, American Indian children shall 
 72.20  participate fully and on an equal basis with their 
 72.21  contemporaries in school classes provided for these subjects.  
 72.22  Every school district or participating school shall ensure to 
 72.23  children enrolled in American Indian ~~language and culture~~ 
 72.24  education programs an equal and meaningful opportunity to 
 72.25  participate fully with other children in all extracurricular 
 72.26  activities.  This subdivision shall not be construed to prohibit 
 72.27  instruction in nonverbal subjects or extracurricular activities 
 72.28  which relate to the cultural heritage of the American Indian 
 72.29  children, or which are otherwise necessary to accomplish the 
 72.30  objectives described in sections 124D.71 to 124D.82. 
 72.31     Sec. 40.  Minnesota Statutes 2000, section 124D.75, 
 72.32  subdivision 6, is amended to read: 
 72.33     Subd. 6.  [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 
 72.34  Any person licensed under this section shall be eligible for 
 72.35  employment by a school board or a participating school as a 
 72.36  teacher in an American Indian ~~language and culture~~ education 
 73.1   program in which the American Indian language or culture in 
 73.2   which the person is licensed is taught.  A school district or 
 73.3   participating school may prescribe only those additional 
 73.4   qualifications for teachers licensed under this section as are 
 73.5   approved by the board of teaching.  Any school board or 
 73.6   participating school upon request may be exempted from the 
 73.7   licensure requirements of this section in the hiring of one or 
 73.8   more American Indian language and culture education teachers for 
 73.9   any school year in which compliance would, in the opinion of the 
 73.10  commissioner, create a hardship in the securing of the teachers. 
 73.11     Sec. 41.  Minnesota Statutes 2000, section 124D.76, is 
 73.12  amended to read: 
 73.13     124D.76 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 
 73.14     In addition to employing American Indian language and 
 73.15  culture education teachers, each district or participating 
 73.16  school providing programs pursuant to sections 124D.71 to 
 73.17  124D.82 may employ teachers' aides.  Teachers' aides must not be 
 73.18  employed for the purpose of supplanting American Indian language 
 73.19  and culture education teachers. 
 73.20     Any district or participating school which conducts 
 73.21  American Indian ~~language and culture~~ education programs pursuant 
 73.22  to sections 124D.71 to 124D.82 must employ one or more full-time 
 73.23  or part-time community coordinators if there are 100 or more 
 73.24  students enrolled in the program.  Community coordinators shall 
 73.25  promote communication understanding, and cooperation between the 
 73.26  schools and the community and shall visit the homes of children 
 73.27  who are to be enrolled in an American Indian ~~language and~~ 
 73.28  ~~culture~~ education program in order to convey information about 
 73.29  the program. 
 73.30     Sec. 42.  Minnesota Statutes 2000, section 124D.78, 
 73.31  subdivision 1, is amended to read: 
 73.32     Subdivision 1.  [PARENT COMMITTEE.] School boards and 
 73.33  American Indian schools must provide for the maximum involvement 
 73.34  of parents of children enrolled in education programs, ~~including~~ 
 73.35  ~~language and culture education programs,~~ programs for elementary 
 73.36  and secondary grades, special education programs, and support 
 74.1   services.  Accordingly, the board of a school district in which 
 74.2   there are ten or more American Indian children enrolled and each 
 74.3   American Indian school must establish a parent committee.  If a 
 74.4   committee whose membership consists of a majority of parents of 
 74.5   American Indian children has been or is established according to 
 74.6   federal, tribal, or other state law, that committee may serve as 
 74.7   the committee required by this section and is subject to, at 
 74.8   least, the requirements of this subdivision and subdivision 2.  
 74.9      The parent committee must develop its recommendations in 
 74.10  consultation with the curriculum advisory committee required by 
 74.11  section 120B.11, subdivision 3.  This committee must afford 
 74.12  parents the necessary information and the opportunity 
 74.13  effectively to express their views concerning all aspects of 
 74.14  American Indian education and the educational needs of the 
 74.15  American Indian children enrolled in the school or program.  The 
 74.16  committee must also address the need for adult education 
 74.17  programs for American Indian people in the community.  The board 
 74.18  or American Indian school must ensure that programs are planned, 
 74.19  operated, and evaluated with the involvement of and in 
 74.20  consultation with parents of children served by the programs.  
 74.21     Sec. 43.  Minnesota Statutes 2000, section 124D.81, 
 74.22  subdivision 1, is amended to read: 
 74.23     Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
 74.24  commissioner of children, families, and learning must make 
 74.25  grants to no fewer than six American Indian ~~language and culture~~ 
 74.26  education programs.  At least three programs must be in urban 
 74.27  areas and at least three must be on or near reservations.  The 
 74.28  board of a local district, a participating school or a group of 
 74.29  boards may develop a proposal for grants in support of American 
 74.30  Indian ~~language and culture~~ education programs.  Proposals may 
 74.31  provide for contracts for the provision of program components by 
 74.32  nonsectarian nonpublic, community, tribal, or alternative 
 74.33  schools.  The commissioner shall prescribe the form and manner 
 74.34  of application for grants, and no grant shall be made for a 
 74.35  proposal not complying with the requirements of sections 124D.71 
 74.36  to 124D.82.  The commissioner must submit all proposals to the 
 75.1   state advisory ~~task force~~ committee on American Indian ~~language~~ 
 75.2   ~~and culture~~ education programs for its recommendations 
 75.3   concerning approval, modification, or disapproval and the 
 75.4   amounts of grants to approved programs. 
 75.5      Sec. 44.  Minnesota Statutes 2000, section 124D.81, 
 75.6   subdivision 3, is amended to read: 
 75.7      Subd. 3.  [ADDITIONAL REQUIREMENTS.] Each district 
 75.8   receiving a grant under this section must each year conduct a 
 75.9   count of American Indian children in the schools of the 
 75.10  district; test for achievement; identify the extent of other 
 75.11  educational needs of the children to be enrolled in the American 
 75.12  Indian ~~language and culture~~ education program; and classify the 
 75.13  American Indian children by grade, level of educational 
 75.14  attainment, age and achievement.  Participating schools must 
 75.15  maintain records concerning the needs and achievements of 
 75.16  American Indian children served. 
 75.17     Sec. 45.  Minnesota Statutes 2000, section 124D.81, 
 75.18  subdivision 5, is amended to read: 
 75.19     Subd. 5.  [RECORDS.] Participating schools and districts 
 75.20  must keep records and afford access to them as the commissioner 
 75.21  finds necessary to ensure that American Indian ~~language and~~ 
 75.22  ~~culture~~ education programs are implemented in conformity with 
 75.23  sections 124D.71 to 124D.82.  Each school district or 
 75.24  participating school must keep accurate, detailed, and separate 
 75.25  revenue and expenditure accounts for pilot American Indian 
 75.26  ~~language and culture~~ education programs funded under this 
 75.27  section. 
 75.28     Sec. 46.  Minnesota Statutes 2000, section 124D.81, 
 75.29  subdivision 6, is amended to read: 
 75.30     Subd. 6.  [MONEY FROM OTHER SOURCES.] A district or 
 75.31  participating school providing American Indian ~~language and~~ 
 75.32  ~~culture~~ education programs shall be eligible to receive moneys 
 75.33  for these programs from other government agencies and from 
 75.34  private sources when the moneys are available. 
 75.35     Sec. 47.  Minnesota Statutes 2000, section 124D.81, 
 75.36  subdivision 7, is amended to read: 
 76.1      Subd. 7.  [EXCEPTIONS.] Nothing in sections 124D.71 to 
 76.2   124D.82 shall be construed as prohibiting a district or school 
 76.3   from implementing an American Indian ~~language and culture~~ 
 76.4   education program which is not in compliance with sections 
 76.5   124D.71 to 124D.82 if the proposal and plan for that program is 
 76.6   not funded pursuant to this section. 
 76.7      Sec. 48.  Minnesota Statutes 2000, section 124D.86, 
 76.8   subdivision 3, is amended to read: 
 76.9      Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 2000 and 
 76.10  later fiscal years, integration revenue equals the following 
 76.11  amounts: 
 76.12     (1) ~~for independent school district No. 709, Duluth, $207~~ 
 76.13  ~~times the adjusted pupil units for the school year;~~ 
 76.14     ~~(2)~~ for independent school district No. 625, St. Paul, $446 
 76.15  times the adjusted pupil units for the school year; 
 76.16     ~~(3)~~ (2) for special school district No. 1, Minneapolis, 
 76.17  $536 times the adjusted pupil units for the school year; ~~and~~ 
 76.18     (3) for a district not listed in clause (1) or (2) that 
 76.19  must implement a plan under Minnesota Rules, parts 3535.0100 to 
 76.20  3535.0180, where the district's enrollment of protected 
 76.21  students, as defined under Minnesota Rules, part 3535.0110, 
 76.22  exceeds 17 percent, and that is located in the rural equity 
 76.23  region as defined under section 126C.10, subdivision 28, the 
 76.24  lesser of (i) the actual cost of implementing the plan during 
 76.25  the fiscal year minus the aid received under subdivision 6, or 
 76.26  (ii) $150 times the adjusted pupil units for the school year; 
 76.27     (4) for a district not listed in clause (1), (2), or (3) 
 76.28  that is required to implement a plan according to the 
 76.29  requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 
 76.30  the lesser of 
 76.31     (i) the actual cost of implementing the plan during the 
 76.32  fiscal year minus the aid received under subdivision 6, or 
 76.33     (ii) $93 times the adjusted pupil units for the school year.
 76.34     Any money received by districts in clauses (1) to (3) which 
 76.35  exceeds the amount received in fiscal year 2000 shall be subject 
 76.36  to the budget requirements in subdivision 1a~~.~~; and 
 77.1      (5) for a member district of a multidistrict integration 
 77.2   collaborative that files a plan with the commissioner, but is 
 77.3   not contiguous to a racially isolated district, integration 
 77.4   revenue equals the amount defined in clause (4). 
 77.5      <b>[EFFECTIVE DATE.]</b> This section is effective for aid payable 
 77.6   in fiscal year 2002. 
 77.7      Sec. 49.  Minnesota Statutes 2000, section 124D.86, 
 77.8   subdivision 6, is amended to read: 
 77.9      Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
 77.10  integration aid under subdivision 5 must be adjusted for each 
 77.11  pupil residing in a district eligible for integration revenue 
 77.12  under subdivision 3, clause (1), (2), or (3), and attending a 
 77.13  nonresident district under sections 123A.05 to 123A.08, 124D.03, 
 77.14  124D.06, 124D.07, and 124D.08, that is not eligible for 
 77.15  integration revenue under subdivision 3, clause (1), (2), or 
 77.16  (3), and has implemented a plan under Minnesota Rules, parts 
 77.17  3535.0100 to 3535.0180, if the enrollment of the pupil in the 
 77.18  nonresident district contributes to desegregation or integration 
 77.19  purposes.  The adjustments must be made according to this 
 77.20  subdivision.  
 77.21     (b) Aid paid to a district serving nonresidents must be 
 77.22  increased by an amount equal to the revenue per pupil unit of 
 77.23  the resident district under subdivision 3, clause (1), (2), or 
 77.24  (3), minus the revenue attributable to the pupil in the 
 77.25  nonresident district under subdivision 3, ~~clause~~ clauses (4) and 
 77.26  (5), for the time the pupil is enrolled in the nonresident 
 77.27  district. 
 77.28     <b>[EFFECTIVE DATE.]</b> This section is effective for aid payable 
 77.29  in fiscal year 2000, and for taxes payable in 2002. 
 77.30     Sec. 50.  Minnesota Statutes 2000, section 126C.05, 
 77.31  subdivision 15, is amended to read: 
 77.32     Subd. 15.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 77.33  enrolled in a learning year program under section 124D.128, an 
 77.34  area learning center under sections 123A.05 and 123A.06, an 
 77.35  alternative program approved by the commissioner, or a contract 
 77.36  alternative program under section 124D.68, subdivision 3, 
 78.1   paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
 78.2   school year for a secondary student, more than 935 hours in a 
 78.3   school year for an elementary student, or more than 425 hours in 
 78.4   a school year for a kindergarten student without a disability, 
 78.5   that pupil may be counted as more than one pupil in average 
 78.6   daily membership.  The amount in excess of one pupil must be 
 78.7   determined by the ratio of the number of hours of instruction 
 78.8   provided to that pupil in excess of:  (i) the greater of 1,020 
 78.9   hours or the number of hours required for a full-time secondary 
 78.10  pupil in the district to 1,020 for a secondary pupil; (ii) the 
 78.11  greater of 935 hours or the number of hours required for a 
 78.12  full-time elementary pupil in the district to 935 for an 
 78.13  elementary pupil in grades 1 through 6; and (iii) the greater of 
 78.14  425 hours or the number of hours required for a full-time 
 78.15  kindergarten student without a disability in the district to 425 
 78.16  for a kindergarten student without a disability.  Hours that 
 78.17  occur after the close of the instructional year in June shall be 
 78.18  attributable to the following fiscal year.  A kindergarten 
 78.19  student must not be counted as more than 1.2 pupils in average 
 78.20  daily membership under this subdivision. 
 78.21     (b)(i) To receive general education revenue for a pupil in 
 78.22  an alternative program that has an independent study component, 
 78.23  a district must meet the requirements in this paragraph.  The 
 78.24  district must develop, ~~with~~ for the pupil, a continual learning 
 78.25  plan ~~for the pupil.  A district must allow a minor pupil's~~ 
 78.26  ~~parent or guardian to participate in developing the plan, if the~~ 
 78.27  ~~parent or guardian wants to participate.  The plan must identify~~ 
 78.28  ~~the learning experiences and expected outcomes needed for~~ 
 78.29  ~~satisfactory credit for the year and for graduation.  The plan~~ 
 78.30  ~~must be updated each year~~ consistent with section 124D.128, 
 78.31  subdivision 3.  Each school district that has a state-approved 
 78.32  public alternative program must reserve revenue in an amount 
 78.33  equal to at least 90 percent of the district average general 
 78.34  education revenue per pupil unit less compensatory revenue per 
 78.35  pupil unit times the number of pupil units generated by students 
 78.36  attending a state-approved public alternative program.  The 
 79.1   amount of reserved revenue available under this subdivision may 
 79.2   only be spent for program costs associated with the 
 79.3   state-approved public alternative program.  Compensatory revenue 
 79.4   must be allocated according to section 126C.15, subdivision 2. 
 79.5      (ii) General education revenue for a pupil in an approved 
 79.6   alternative program without an independent study component must 
 79.7   be prorated for a pupil participating for less than a full year, 
 79.8   or its equivalent.  The district must develop a continual 
 79.9   learning plan for the pupil, consistent with section 124D.128, 
 79.10  subdivision 3.  Each school district that has a state-approved 
 79.11  public alternative program must reserve revenue in an amount 
 79.12  equal to at least 90 percent of the district average general 
 79.13  education revenue per pupil unit less compensatory revenue per 
 79.14  pupil unit times the number of pupil units generated by students 
 79.15  attending a state-approved public alternative program.  The 
 79.16  amount of reserved revenue available under this subdivision may 
 79.17  only be spent for program costs associated with the 
 79.18  state-approved public alternative program.  Compensatory revenue 
 79.19  must be allocated according to section 126C.15, subdivision 2.  
 79.20     (iii) General education revenue for a pupil in an approved 
 79.21  alternative program that has an independent study component must 
 79.22  be paid for each hour of teacher contact time and each hour of 
 79.23  independent study time completed toward a credit or graduation 
 79.24  standards necessary for graduation.  Average daily membership 
 79.25  for a pupil shall equal the number of hours of teacher contact 
 79.26  time and independent study time divided by 1,020. 
 79.27     (iv) For an alternative program having an independent study 
 79.28  component, the commissioner shall require a description of the 
 79.29  courses in the program, the kinds of independent study involved, 
 79.30  the expected learning outcomes of the courses, and the means of 
 79.31  measuring student performance against the expected outcomes.  
 79.32     Sec. 51.  Minnesota Statutes 2000, section 179A.20, is 
 79.33  amended by adding a subdivision to read: 
 79.34     Subd. 2b.  [STRUCTURALLY BALANCED SCHOOL DISTRICT 
 79.35  CONTRACTS.] (a) A school board must not enter into a contract 
 79.36  with the exclusive representative of the teachers that is not 
 80.1   structurally balanced for a time period that corresponds to the 
 80.2   term of the contract and the following year beginning on the 
 80.3   July 1 following the specified end date of that contract.  
 80.4   Failure to enter into a contract to implement a proposed 
 80.5   contract settlement or an interest arbitration decision that 
 80.6   violates the provisions of this subdivision shall not be an 
 80.7   unfair labor practice under section 179A.13, subdivision 2.  The 
 80.8   provisions of section 123B.05 shall not apply to a contract or 
 80.9   an interest arbitration decision that is not structurally 
 80.10  balanced and that is not approved by the date specified therein. 
 80.11     (b) The school board must make a good-faith determination 
 80.12  as to whether a proposed contract settlement is structurally 
 80.13  balanced for the time period specified prior to its approval of 
 80.14  that contract.  The resolution adopted by the school board 
 80.15  making the determination that the proposed contract is 
 80.16  structurally balanced must include or incorporate written 
 80.17  findings and specific calculations to support the 
 80.18  determination.  The findings and calculations must be available 
 80.19  to members of the school board and the public at the meeting at 
 80.20  which the resolution is adopted.  A copy of the resolution with 
 80.21  supporting findings and calculations shall also be attached to 
 80.22  the uniform collective bargaining agreement settlement document 
 80.23  filed with the commissioner of finance under section 179A.07, 
 80.24  subdivision 7. 
 80.25     (c) An arbitrator in an interest arbitration must make a 
 80.26  good-faith determination as to whether an interest arbitration 
 80.27  decision for a teacher contract is structurally balanced for the 
 80.28  time period specified and must prove that structural balance in 
 80.29  the decision.  The school board must review the arbitrator's 
 80.30  decision to determine whether the arbitrator has correctly 
 80.31  determined that the arbitration decision is structurally 
 80.32  balanced.  If the school board makes a good-faith determination 
 80.33  that the arbitration decision is not structurally balanced for 
 80.34  the time period specified, it must return the decision to the 
 80.35  arbitrator with a detailed explanation of why the board has 
 80.36  determined that the decision is not structurally balanced.  The 
 81.1   arbitrator must revise the decision until the school board can 
 81.2   make a good-faith determination that the decision is 
 81.3   structurally balanced for the time period specified.  The 
 81.4   resolution adopted by the school board making the determination 
 81.5   that the interest arbitration decision is structurally balanced 
 81.6   must include or incorporate written findings and specific 
 81.7   calculations to support the determination.  The findings and 
 81.8   calculations must be available to members of the school board 
 81.9   and the public at the meeting at which the resolution is 
 81.10  adopted.  A copy of the resolution with supporting findings and 
 81.11  calculations shall also be attached to the uniform collective 
 81.12  bargaining agreement settlement document filed with the 
 81.13  commissioner of finance under section 179A.07, subdivision 7. 
 81.14     (d) In making a determination as to whether a contract 
 81.15  settlement or interest arbitration decision is structurally 
 81.16  balanced for the term of the contract and the following year, 
 81.17  the board shall review the general fund revenue and expenditure 
 81.18  projections for the three-year time period specified based on 
 81.19  laws in effect at the time the determination is made. 
 81.20     (1) Revenue projections must be based on the general 
 81.21  education and other formulas in effect for the time period 
 81.22  specified at the time the determination is made. 
 81.23     (2) Revenue projections must be based on pupil unit 
 81.24  projections for the time period specified.  
 81.25     (3) Expenditure projections must be based on the costs of 
 81.26  this contract and the projected costs of the contract with the 
 81.27  teachers for the third year of the time period specified. 
 81.28     (4) Expenditure projections must be based on the projected 
 81.29  seniority of the staff during each year of the time period 
 81.30  specified and on current teacher-to-student ratios.  The 
 81.31  projections must include projected movement through contract 
 81.32  steps and lanes each year during the time period specified to 
 81.33  reflect increased seniority leading to step changes and 
 81.34  increased education or training leading to lane changes. 
 81.35     (5) Expenditure projections must include anticipated costs 
 81.36  of fringe benefits, including, but not limited to, health 
 82.1   insurance, during each year of the time period specified. 
 82.2      (6) Expenditure projections must include projected staff 
 82.3   retirements and the hiring of projected new teachers during the 
 82.4   time period specified.  The projections must include projected 
 82.5   payouts of severance pay, accumulated sick leave or other leave 
 82.6   if any, vacation pay if any, and other benefits to retiring 
 82.7   employees or employees leaving employment in the district. 
 82.8      (7) Expenditure projections must include all other 
 82.9   projected contract-related general fund expenditures for the 
 82.10  time period specified. 
 82.11     (e) A school board may determine that a contract with the 
 82.12  exclusive representative of the employees is structurally 
 82.13  balanced for the time period specified if, taking into account 
 82.14  at least the projections specified in paragraph (d) and such 
 82.15  other projections as may be necessary, the projected general 
 82.16  fund expenditures for each year of the time period specified 
 82.17  will not exceed projected general fund revenues for that year. 
 82.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 82.19  following final enactment and applies to contracts between 
 82.20  school boards and exclusive representatives of teachers for the 
 82.21  time period July 1, 2001, to June 30, 2003, and thereafter. 
 82.22     Sec. 52.  [ACCESS TO STATEWIDE TESTS AND STUDENTS' TEST 
 82.23  RESULTS.] 
 82.24     Subdivision 1.  [TEST ACCESS.] Consistent with subdivisions 
 82.25  2 and 3 and Minnesota Statutes, section 120B.30, subdivision 1, 
 82.26  paragraph (f), the commissioner of children, families, and 
 82.27  learning shall make available copies of the statewide basic 
 82.28  skills tests and the Minnesota comprehensive assessments and 
 82.29  students' test results. 
 82.30     Subd. 2.  [ACCESS TO BASIC SKILLS TESTS.] Beginning in 
 82.31  February 2002, the commissioner, on the date the results for the 
 82.32  February statewide basic skills tests are released, at the same 
 82.33  time also shall: 
 82.34     (1) make available to the public electronic copies of those 
 82.35  tests and accompanying answer sheets and mail to districts paper 
 82.36  copies of the tests and accompanying answer sheets; and 
 83.1      (2) make available to parents or guardians a copy of their 
 83.2   students' answers to the test questions. 
 83.3   The commissioner must release to a student's parent or guardian 
 83.4   a copy of the student's actual answer sheet upon receiving a 
 83.5   written request from that student's parent or guardian within a 
 83.6   reasonable time of the request.  The requirements of this 
 83.7   paragraph apply only to those statewide basic skills tests 
 83.8   administered in February of any year.  The commissioner must 
 83.9   allow a parent or guardian to examine a statewide basic skills 
 83.10  test administered in April or July and the student's 
 83.11  accompanying answer sheets upon receiving a written request from 
 83.12  that student's parent or guardian. 
 83.13     Subd. 3.  [ACCESS TO MINNESOTA COMPREHENSIVE ASSESSMENTS.] 
 83.14  Beginning in the 2000-2001 school year, the commissioner shall 
 83.15  release copies of Minnesota comprehensive assessments previously 
 83.16  administered as follows: 
 83.17     (1) in the 2000-2001 school year, the commissioner shall 
 83.18  make available to the public electronic copies of the tests 
 83.19  administered in March 1999 and accompanying answer sheets; 
 83.20     (2) in the 2001-2002 school year, the commissioner shall 
 83.21  make available to the public electronic copies of the tests 
 83.22  administered in March 2000 and March 2001 and accompanying 
 83.23  answer sheets; and 
 83.24     (3) in the 2002-2003 school year, the commissioner shall 
 83.25  make available to the public electronic copies of the tests 
 83.26  administered in March 2002 and accompanying answer sheets.  
 83.27  Beginning in the 2002-2003 school year and later, the 
 83.28  commissioner shall release the tests administered in that school 
 83.29  year.  Beginning in January 2003 and later, the commissioner, on 
 83.30  the date the results for the Minnesota comprehensive assessments 
 83.31  are released, at the same time also shall: 
 83.32     (1) make available to the public electronic copies of those 
 83.33  tests and accompanying answer sheets and mail to districts paper 
 83.34  copies of the tests and accompanying answer sheets; and 
 83.35     (2) make available to parents or guardians a copy of their 
 83.36  students' answers to the test questions. 
 84.1   The commissioner must release to a student's parent or guardian 
 84.2   a copy of the student's actual answer sheet upon receiving a 
 84.3   written request from that student's parent or guardian within a 
 84.4   reasonable time of the request. 
 84.5      Subd. 4.  [TEST ACCESS POLICY.] If statewide elementary or 
 84.6   secondary level tests other than the basic skills tests or the 
 84.7   Minnesota comprehensive assessments are administered to 
 84.8   elementary or secondary students, the commissioner must adopt 
 84.9   and publish a policy to provide public or parental access to 
 84.10  copies of such tests and to students' accompanying test results, 
 84.11  consistent with the provisions of this section. 
 84.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 84.13  following final enactment. 
 84.14     Sec. 53.  [LABORATORY SCHOOL; INNOVATIVE TEACHING 
 84.15  TECHNIQUES.] 
 84.16     Subdivision 1.  [PURPOSE.] The purpose of this section is 
 84.17  to ensure that the school children in kindergarten through grade 
 84.18  5 in the Randall area, elsewhere in the Little Falls school 
 84.19  district, and in all school districts in the state have access 
 84.20  to a high quality, innovative education experience. 
 84.21     Subd. 2.  [JOINT OFFICE ESTABLISHED.] Independent school 
 84.22  district No. 482, Little Falls; the department of children, 
 84.23  families, and learning; Minnesota state colleges and 
 84.24  universities; and St. Cloud State University's school of 
 84.25  education shall collaborate for the purpose of establishing a 
 84.26  joint office, if funds are available, to evaluate curriculum, 
 84.27  instruction, and testing.  The office shall be located at the 
 84.28  Dr. S. G. Knight school in Randall.  
 84.29     Subd. 3.  [LABORATORY SCHOOL.] The office under authority 
 84.30  of independent school district No. 482, Little Falls shall, if 
 84.31  funds are available, operate a laboratory school program for 
 84.32  elementary students in kindergarten through grade 5 at the Dr. 
 84.33  S. G. Knight school.  The laboratory school, if established, 
 84.34  must be used to develop innovative teaching techniques that 
 84.35  enhance students' learning experiences.  The office, if 
 84.36  established, must make the innovative teaching techniques, which 
 85.1   must include testing of students' knowledge, developed at the 
 85.2   laboratory school available to all school districts in the state.
 85.3      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 85.4      Sec. 54.  [ALTERNATIVE MODELS FOR DELIVERING EDUCATION; 
 85.5   EXPANDING THE FLEXIBLE LEARNING YEAR PROGRAM.] 
 85.6      Subdivision 1.  [ESTABLISHMENT; GOAL.] A three-year pilot 
 85.7   project is established to permit participating school districts 
 85.8   and school sites approved by the commissioner of children, 
 85.9   families, and learning under subdivision 2 to use alternative 
 85.10  models for delivering education by expanding the flexible 
 85.11  learning year program under Minnesota Statutes, sections 124D.12 
 85.12  to 124D.127.  The project is intended to explore effective 
 85.13  alternatives for delivering education, with the goal of 
 85.14  improving instruction and students' educational outcomes and 
 85.15  opportunities and increasing the cost-effectiveness of 
 85.16  educational programs. 
 85.17     Subd. 2.  [ELIGIBILITY; APPLICATIONS.] The commissioner 
 85.18  shall make application forms available to school districts and 
 85.19  school sites interested in exploring effective alternative 
 85.20  models for delivering instruction during a redefined flexible 
 85.21  learning year as described in this section.  Interested school 
 85.22  districts and school sites must have their application to 
 85.23  participate in this program first approved by the local school 
 85.24  board and a majority of teachers employed in the district or at 
 85.25  the site, respectively, after a public hearing on the matter.  
 85.26  Applications must be submitted to the commissioner by January 1, 
 85.27  2002.  The application must describe how the applicant proposes 
 85.28  to realize the goal of this project, including what activities 
 85.29  and procedures the applicant proposes to develop and implement 
 85.30  and the specific changes in the learning year the applicant 
 85.31  requires to accomplish those activities and procedures.  The 
 85.32  commissioner, consistent with the requirements of this section, 
 85.33  shall approve applications before March 1, 2002. 
 85.34     Subd. 3.  [EXEMPTIONS.] (a) Notwithstanding other laws or 
 85.35  rules to the contrary, a participant in the pilot project under 
 85.36  this section is exempt from Minnesota Statutes, sections 120A.40 
 86.1   and 120A.41, through the 2004-2005 school year.  Minnesota 
 86.2   Statutes, sections 124D.12 to 124D.127, apply through the 
 86.3   2004-2005 school year except to the extent that the provisions 
 86.4   of this section or the participant's learning year changes 
 86.5   conflict with particular provisions in Minnesota Statutes, 
 86.6   sections 124D.12 to 124D.127. 
 86.7      (b) Consistent with this section, a participant may adopt a 
 86.8   learning year calendar that allows the participant to suitably 
 86.9   fulfill the educational needs of its students using an 
 86.10  alternative learning year calendar.  The commissioner must 
 86.11  provide participants with a formula for computing average daily 
 86.12  membership so that all formulas based upon average daily 
 86.13  membership are not affected as a result of participating in this 
 86.14  pilot project. 
 86.15     Subd. 4.  [TECHNICAL ASSISTANCE.] The commissioner, at the 
 86.16  request of a participant, must provide technical assistance to 
 86.17  the participant.  Also, the commissioner must assist 
 86.18  participants in developing and implementing a valid and uniform 
 86.19  procedure to evaluate the efficacy of their alternative learning 
 86.20  year calendar, consistent with the goals of this section. 
 86.21     Subd. 5.  [EVALUATION; REPORT.] (a) Participants must 
 86.22  complete a formative and summative evaluation of their 
 86.23  experiences in delivering education under an alternative 
 86.24  learning year calendar.  Participants must focus the evaluation 
 86.25  on the overall efficacy of the pilot project, including the 
 86.26  cost-effectiveness of educational programs and the extent to 
 86.27  which students' educational outcomes and opportunities 
 86.28  improved.  Participants shall use their interim evaluations, 
 86.29  with the commissioner's approval, to modify their project where 
 86.30  appropriate. 
 86.31     (b) Participants shall submit to the commissioner a 
 86.32  progress report by September 1, 2004, and a final report by 
 86.33  January 1, 2006, evaluating the cost-effectiveness of 
 86.34  educational programs and the extent to which students' 
 86.35  educational outcomes and opportunities improved.  The 
 86.36  commissioner shall compile the reports to present to the 
 87.1   committees in the legislature that deal with education policy 
 87.2   and education finance by March 1, 2006.  When presenting the 
 87.3   report, the commissioner must recommend whether or not to 
 87.4   continue or expand this pilot project. 
 87.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 87.6   following final enactment. 
 87.7      Sec. 55.  [FEDERAL FUNDS.] 
 87.8      The commissioner of children, families, and learning shall 
 87.9   use federal funds available for reading-related purposes to fund 
 87.10  grants under Minnesota Statutes, section 120B.12.  
 87.11     Sec. 56.  [INTEGRATION LEVY.] 
 87.12     Subdivision 1.  [AUTHORIZATION AMOUNT.] A district eligible 
 87.13  for integration revenue under Minnesota Statutes, section 
 87.14  124D.86, subdivision 3, clause (5), is authorized to levy for 
 87.15  integration revenue for 2001 payable 2002 taxes an amount up to 
 87.16  the district's integration levy limit for fiscal years 2002 and 
 87.17  2003. 
 87.18     Subd. 2.  [LEVY RECOGNITION.] Notwithstanding Minnesota 
 87.19  Statutes, section 123B.75, subdivision 5, for a district 
 87.20  eligible for integration revenue under Minnesota Statutes, 
 87.21  section 124D.86, subdivision 3, clause (5), the full amount of 
 87.22  integration levy for taxes payable in 2002, attributable to 
 87.23  fiscal year 2002, shall be recognized in fiscal year 2002. 
 87.24     Sec. 57.  [SCHOOLS' ACADEMIC AND FINANCIAL PERFORMANCE 
 87.25  EVALUATION; INDEPENDENT CONTRACTOR.] 
 87.26     (a) To assist taxpayers, educators, school board members, 
 87.27  and state and local officials in realizing their commitment to 
 87.28  improving student achievement and the management of school 
 87.29  systems, the commissioner of children, families, and learning 
 87.30  shall contract with an independent school evaluation services 
 87.31  contractor to evaluate and report on the academic and financial 
 87.32  performance of the state's independent school districts using 
 87.33  six core categories of analysis: 
 87.34     (1) school district expenditures; 
 87.35     (2) students' performance outcomes based on multiple 
 87.36  indicia including students' test scores, attendance rates, 
 88.1   dropout rates, and graduation rates; 
 88.2      (3) return on resources to determine the extent to which 
 88.3   student outcomes improve commensurate with increases in district 
 88.4   spending; 
 88.5      (4) school district finances, taxes, and debt to establish 
 88.6   the context for analyzing the district's return on resources 
 88.7   under clause (3); 
 88.8      (5) students' learning environment to establish the context 
 88.9   for analyzing the district's return on resources under clause 
 88.10  (3); and 
 88.11     (6) school district demographics to establish the 
 88.12  socioeconomic context for analyzing the district's return on 
 88.13  resources under clause (3). 
 88.14     (b) In order to compare the regional and socioeconomic 
 88.15  peers of particular school districts, monitor educational 
 88.16  changes over time and identify important educational trends, the 
 88.17  contractor shall use the six core categories of analysis to: 
 88.18     (1) identify allocations of baseline and incremental school 
 88.19  district spending; 
 88.20     (2) connect student achievement with expenditure patterns; 
 88.21     (3) track school district financial health; 
 88.22     (4) observe school district debt and capital spending 
 88.23  levels; and 
 88.24     (5) measure the return on a school district's educational 
 88.25  resources. 
 88.26     (c) The contractor under paragraph (a) shall evaluate and 
 88.27  report on the academic and financial performance of all school 
 88.28  districts. 
 88.29     (d) Consistent with paragraph (a), clause (2), the 
 88.30  evaluation and reporting of test scores must distinguish between:
 88.31     (1) performance-based assessments; and 
 88.32     (2) academic, objective knowledge-based tests. 
 88.33     (e) The contractor must complete its written report and 
 88.34  submit it to the commissioner within 360 days of the date on 
 88.35  which the contract is signed.  The commissioner immediately must 
 88.36  make the report available in a readily accessible format to 
 89.1   state and local elected officials, members of the public, 
 89.2   educators, parents, and other interested individuals.  The 
 89.3   commissioner, upon receiving an individual's request, also must 
 89.4   make available all draft reports prepared by the contractor, 
 89.5   consistent with Minnesota Statutes, chapter 13. 
 89.6      Sec. 58.  [TECHNICAL ASSISTANCE.] 
 89.7      (a) The department of children, families, and learning or 
 89.8   the state board of teaching, at a participant's request, must 
 89.9   assist teachers and school districts in designing the teacher 
 89.10  professional development standards and training interested 
 89.11  parties in assessing whether and at what level teachers are 
 89.12  attaining the standards, consistent with Minnesota Statutes, 
 89.13  sections 120B.32 and 120B.33. 
 89.14     (b) Teachers and school districts also are encouraged to 
 89.15  seek assistance from education districts, education 
 89.16  cooperatives, and other education organizations in designing the 
 89.17  teacher professional development standards and training teachers 
 89.18  and administrators in assessing whether and at what level 
 89.19  teachers are attaining the standards, consistent with Minnesota 
 89.20  Statutes, sections 120B.32 and 120B.33. 
 89.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 89.22  following final enactment.  
 89.23     Sec. 59.  [PARTICIPATION IN ATHLETIC ACTIVITIES; MINNESOTA 
 89.24  STATE HIGH SCHOOL LEAGUE STUDY.] 
 89.25     The Minnesota state high school league must prepare a 
 89.26  written report by February 15, 2002, for the legislative 
 89.27  committees charged with overseeing kindergarten through grade 12 
 89.28  education policy that indicates the interest of charter school 
 89.29  students in participating in athletic activities available in 
 89.30  the students' resident district.  The Minnesota state high 
 89.31  school league at least must: 
 89.32     (1) survey the students enrolled in the state's charter 
 89.33  schools to determine how interested the students are in 
 89.34  participating in various athletic activities offered by their 
 89.35  resident school district; 
 89.36     (2) review the ability of charter schools to independently 
 90.1   or through a cooperative sponsorship provide students with 
 90.2   various athletic activities; and 
 90.3      (3) determine whether the league's cooperative sponsorship 
 90.4   rules need to be amended to facilitate cooperative sponsorship 
 90.5   arrangements involving charter schools.  The Minnesota state 
 90.6   high school league must cover the costs of this report. 
 90.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 90.8   following final enactment.  
 90.9      Sec. 60.  [CHARTER SCHOOL CONTRACTS TEMPORARILY PERMITTED.] 
 90.10     Notwithstanding Minnesota Statutes, section 124D.10, 
 90.11  subdivision 3a, a school organized as a charter school as of the 
 90.12  2000-2001 school year may enter into a contract of up to $2,000 
 90.13  annually with a nonteacher board member until June 30, 2003, 
 90.14  when such a contract must expire.  
 90.15     Sec. 61.  [SCIENCE LICENSURE.] 
 90.16     The board of teaching must issue a teaching license to an 
 90.17  applicant who qualifies to teach general science to students in 
 90.18  grades five to eight, or who qualifies to teach a specialty in 
 90.19  physics, chemistry, life science, or earth and space science to 
 90.20  students in grades nine to 12 if the applicant meets other 
 90.21  applicable licensure requirements, including the requirements of 
 90.22  Minnesota Statutes, section 122A.18, subdivision 8. 
 90.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 90.24  following final enactment. 
 90.25     Sec. 62.  [APPROPRIATIONS.] 
 90.26     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 90.27  LEARNING.] The sums indicated in this section are appropriated 
 90.28  from the general fund to the department of children, families, 
 90.29  and learning for the fiscal years indicated.  
 90.30     Subd. 2.  [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 
 90.31  PROGRAMS.] (a) For students' advanced placement and 
 90.32  international baccalaureate examination fees under Minnesota 
 90.33  Statutes 2000, section 120B.13, subdivision 3, and the training 
 90.34  and related costs for teachers and other interested educators 
 90.35  under Minnesota Statutes 2000, section 120B.13, subdivision 1: 
 90.36       $2,000,000     .....     2002 
 91.1        $2,000,000     .....     2003 
 91.2      Any funds unexpended in the first year do not cancel and 
 91.3   are available in the second year. 
 91.4      (b) The advanced placement program shall receive 75 percent 
 91.5   of the appropriation each year and the international 
 91.6   baccalaureate program shall receive 25 percent of the 
 91.7   appropriation each year.  The department, in consultation with 
 91.8   representatives of the advanced placement and international 
 91.9   baccalaureate programs selected by the advanced placement 
 91.10  advisory council and IBMN, respectively, shall determine the 
 91.11  amounts of the expenditures each year for examination fees and 
 91.12  training and support programs for each program. 
 91.13     (c) Notwithstanding Minnesota Statutes, section 120B.13, 
 91.14  subdivision 1, $375,000 each year is for teachers to attend 
 91.15  subject matter summer training programs and follow-up support 
 91.16  workshops approved by the advanced placement or international 
 91.17  baccalaureate programs.  The amount of the subsidy for each 
 91.18  teacher attending an advanced placement or international 
 91.19  baccalaureate summer training program or workshop shall be the 
 91.20  same.  The commissioner shall determine the payment process and 
 91.21  the amount of the subsidy. 
 91.22     (d) Notwithstanding Minnesota Statutes, section 120B.13, 
 91.23  subdivision 3, in each year to the extent of available 
 91.24  appropriations, the commissioner shall pay all examination fees 
 91.25  for all students sitting for an advanced placement examination, 
 91.26  international baccalaureate examination, or both.  If this 
 91.27  amount is not adequate, the commissioner may pay less than the 
 91.28  full examination fee. 
 91.29     Any balance in the first year does not cancel but is 
 91.30  available in the second year. 
 91.31     Subd. 3.  [IMPLEMENTATION ASSISTANCE.] For grants to school 
 91.32  districts for the costs of developing research-based teacher 
 91.33  professional development and assessment standards and for 
 91.34  training to implement the standards under Minnesota Statutes, 
 91.35  sections 120B.32 and 120B.33: 
 91.36       $1,500,000     .....     2002 
 92.1        $1,500,000     .....     2003 
 92.2      Districts may apply for a grant amount of $50 per full-time 
 92.3   equivalent instructional staff person or $2,500, whichever is 
 92.4   greater.  No grant may exceed $50,000.  Districts receiving 
 92.5   grants are encouraged to cooperate with other grant recipients 
 92.6   for the purposes of this appropriation. 
 92.7      This appropriation is available until June 30, 2003. 
 92.8      Subd. 4.  [ALTERNATIVE COMPENSATION AID.] For alternative 
 92.9   compensation aid under Minnesota Statutes, section 120B.34: 
 92.10       $6,000,000     .....     2002 
 92.11       $6,000,000     .....     2003 
 92.12     Of the annual appropriations, at least $2,000,000 must be 
 92.13  awarded to school districts whose administrative offices on July 
 92.14  1, 2001, are located in Anoka, Carver, Dakota, Hennepin, Ramsey, 
 92.15  Scott, or Washington county, and at least $2,000,000 must be 
 92.16  awarded to school districts whose administrative offices on July 
 92.17  1, 2001, are not located in Anoka, Carver, Dakota, Hennepin, 
 92.18  Ramsey, Scott, or Washington county.  If applications for 
 92.19  funding are not sufficient to distribute the full amount of 
 92.20  funding designated for each geographic area, the commissioner 
 92.21  may reallocate those funds to the remaining applicant districts, 
 92.22  regardless of their location.  The commissioner shall award 
 92.23  grants based on the order in which the documents required under 
 92.24  Minnesota Statutes, section 120B.34, are received.  A school 
 92.25  district that qualifies for aid in fiscal year 2002 remains 
 92.26  eligible for aid in fiscal year 2003. 
 92.27     Any balance in the first year does not cancel but is 
 92.28  available in the second year. 
 92.29     Subd. 5.  [STATEWIDE TESTING.] For administering tests 
 92.30  under Minnesota Statutes, sections 120B.02; 120B.30, subdivision 
 92.31  1; and 120B.35: 
 92.32       $6,500,000     .....     2002 
 92.33       $6,500,000     .....     2003 
 92.34     A district may apply to the commissioner for a grant to 
 92.35  reimburse the district for test-related costs. 
 92.36     Any balance in the first year does not cancel but is 
 93.1   available in the second year. 
 93.2      Subd. 6.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
 93.3   lease aid under Minnesota Statutes, section 124D.11, subdivision 
 93.4   4: 
 93.5        $16,554,000    .....     2002 
 93.6        $25,176,000    .....     2003 
 93.7      The 2002 appropriation includes $1,114,000 for 2001 and 
 93.8   $15,440,000 for 2002. 
 93.9      The 2003 appropriation includes $1,715,000 for 2002 and 
 93.10  $23,461,000 for 2003.  
 93.11     Subd. 7.  [CHARTER SCHOOL STARTUP GRANTS.] For charter 
 93.12  school startup cost aid under Minnesota Statutes, section 
 93.13  124D.11: 
 93.14       $2,738,000     .....     2002 
 93.15       $3,143,000     .....     2003 
 93.16     The 2002 appropriation includes $273,000 for 2001 and 
 93.17  $2,465,000 for 2002.  
 93.18     The 2003 appropriation includes $274,000 for 2002 and 
 93.19  $2,869,000 for 2003. 
 93.20     Subd. 8.  [CHARTER SCHOOL INTEGRATION AID.] For grants to 
 93.21  charter schools to promote integration and desegregation under 
 93.22  Minnesota Statutes, section 124D.11, subdivision 6, paragraph 
 93.23  (e): 
 93.24       $50,000        .....     2002 
 93.25       $50,000        .....     2003 
 93.26     Any balance in the first year does not cancel but is 
 93.27  available in the second year. 
 93.28     Subd. 9.  [BEST PRACTICES GRANTS.] For best practices 
 93.29  grants:  
 93.30       $1,000,000     .....     2002
 93.31       $1,000,000     .....     2003
 93.32     Of this amount, $1,000,000 each year is for the Minnesota 
 93.33  new teacher project. 
 93.34     Subd. 10.  [INTEGRATION AID.] For integration aid: 
 93.35       $63,231,000    .....     2002 
 93.36       $63,742,000    .....     2003 
 94.1      The 2002 appropriation includes $5,729,000 for 2001 and 
 94.2   $57,502,000 for 2002. 
 94.3      The 2003 appropriation includes $6,389,000 for 2002 and 
 94.4   $57,353,000 for 2003.  
 94.5      Subd. 11.  [INTEGRATION PROGRAMS.] For minority fellowship 
 94.6   grants under Laws 1994, chapter 647, article 8, section 29; 
 94.7   minority teacher incentives under Minnesota Statutes, section 
 94.8   122A.65; teachers of color program grants under Minnesota 
 94.9   Statutes, section 122A.64; and cultural exchange grants under 
 94.10  Minnesota Statutes, section 124D.89: 
 94.11       $1,000,000     .....     2002
 94.12       $1,000,000     .....     2003
 94.13     Any balance in the first year does not cancel but is 
 94.14  available in the second year. 
 94.15     In awarding teachers of color program grants, the 
 94.16  commissioner must give priority to districts with students who 
 94.17  are currently completing their academic program. 
 94.18     Subd. 12.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 94.19  program grants under Minnesota Statutes, section 124D.871: 
 94.20       $1,750,000     .....     2002 
 94.21       $1,050,000     .....     2003 
 94.22     Subd. 13.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
 94.23  startup aid under Minnesota Statutes, section 124D.88: 
 94.24       $482,000       .....     2002 
 94.25       $326,000       .....     2003 
 94.26     The 2002 appropriation includes $25,000 for 2001 and 
 94.27  $457,000 for 2002.  
 94.28     The 2003 appropriation includes $51,000 for 2002 and 
 94.29  $275,000 for 2003. 
 94.30     Subd. 14.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 94.31  TRANSPORTATION GRANTS.] For interdistrict desegregation or 
 94.32  integration transportation grants under Minnesota Statutes, 
 94.33  section 124D.87: 
 94.34       $2,932,000     .....     2003
 94.35     Subd. 15.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 94.36  For grants to American Indian language and culture education 
 95.1   programs under Minnesota Statutes 2000, section 124D.81, 
 95.2   subdivision 1: 
 95.3        $73,000        .....     2002
 95.4      The 2002 appropriation includes $73,000 for 2001 and $0 for 
 95.5   2002.  
 95.6      Subd. 16.  [AMERICAN INDIAN EDUCATION.] For certain 
 95.7   American Indian education programs in school districts: 
 95.8        $17,000        .....     2002
 95.9      The 2002 appropriation includes $17,000 for 2001 and $0 for 
 95.10  2002.  
 95.11     Subd. 17.  [SUCCESS FOR THE FUTURE.] For American Indian 
 95.12  success for the future grants under Minnesota Statutes, section 
 95.13  124D.81: 
 95.14       $1,797,000     .....     2002
 95.15       $1,887,000     .....     2003
 95.16     The 2002 appropriation includes $0 for 2001 and $1,797,000 
 95.17  for 2002. 
 95.18     The 2003 appropriation includes $200,000 for 2002 and 
 95.19  $1,687,000 for 2003. 
 95.20     Subd. 18.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 95.21  Indian scholarships under Minnesota Statutes, section 124D.84: 
 95.22       $1,875,000     .....     2002 
 95.23       $1,875,000     .....     2003 
 95.24     Any balance in the first year does not cancel but is 
 95.25  available in the second year. 
 95.26     Subd. 19.  [AMERICAN INDIAN TEACHER PREPARATION GRANTS.] (a)
 95.27  For joint grants to assist American Indian people to become 
 95.28  teachers under Minnesota Statutes, section 122A.63: 
 95.29       $190,000       .....     2002 
 95.30       $190,000       .....     2003 
 95.31     (b) Up to $70,000 each year is for a joint grant to the 
 95.32  University of Minnesota at Duluth and the Duluth school district.
 95.33     (c) Up to $40,000 each year is for a joint grant to each of 
 95.34  the following: 
 95.35     (1) Bemidji state university and the Red Lake school 
 95.36  district; 
 96.1      (2) Moorhead state university and a school district located 
 96.2   within the White Earth reservation; and 
 96.3      (3) Augsburg college, independent school district No. 625, 
 96.4   St. Paul, and the Minneapolis school district. 
 96.5      (d) Money not used for students at one location may be 
 96.6   transferred for use at another location. 
 96.7      (e) Any balance in the first year does not cancel but is 
 96.8   available in the second year. 
 96.9      Subd. 20.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 96.10  school aid under Minnesota Statutes, section 124D.83: 
 96.11       $2,520,000     .....     2002
 96.12       $2,767,000     .....     2003
 96.13     The 2002 appropriation includes $192,000 for 2001 and 
 96.14  $2,328,000 for 2002. 
 96.15     The 2003 appropriation includes $258,000 for 2002 and 
 96.16  $2,509,000 for 2003. 
 96.17     Subd. 21.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL 
 96.18  SCHOOLS.] For early childhood family education programs at 
 96.19  tribal contract schools: 
 96.20       $68,000        .....     2002 
 96.21       $68,000        .....     2003 
 96.22     Subd. 22.  [FIRST GRADE PREPAREDNESS.] For first grade 
 96.23  preparedness grants under Minnesota Statutes, section 124D.081: 
 96.24       $7,000,000     .....     2002 
 96.25       $7,000,000     .....     2003
 96.26     Subd. 23.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 96.27  secondary vocational education aid under Minnesota Statutes, 
 96.28  section 124D.453: 
 96.29       $1,242,000     .....     2002 
 96.30     The 2002 appropriation includes $1,242,000 for 2001 and $0 
 96.31  for 2002.  
 96.32     Subd. 24.  [YOUTHWORKS PROGRAM.] For youthworks programs 
 96.33  under Minnesota Statutes, sections 124D.37 to 124D.45: 
 96.34       $1,788,000     .....     2002 
 96.35       $1,788,000     .....     2003 
 96.36     A grantee organization may provide health and child care 
 97.1   coverage to the dependents of each participant enrolled in a 
 97.2   full-time youth works program to the extent such coverage is not 
 97.3   otherwise available. 
 97.4      Up to $250,000 each year may be used for the jobs for 
 97.5   America graduates program. 
 97.6      Any balance in the first year does not cancel but is 
 97.7   available in the second year. 
 97.8      Subd. 25.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 97.9   GRANTS.] For education and employment transitions programming 
 97.10  under Minnesota Statutes, section 124D.46: 
 97.11       $450,000       .....     2002 
 97.12       $450,000       .....     2003 
 97.13     $450,000 each year is for ISEEKS. 
 97.14     Any balance in the first year does not cancel but is 
 97.15  available in the second year. 
 97.16     Subd. 26.  [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 
 97.17  For the learn and earn graduation achievement program under 
 97.18  Minnesota Statutes, section 124D.32: 
 97.19       $725,000       .....     2002 
 97.20     Any balance in the first year does not cancel but is 
 97.21  available in the second year. 
 97.22     Subd. 27.  [SCHOOL EVALUATION SERVICES.] For contracting 
 97.23  with an independent school evaluation services contractor to 
 97.24  evaluate and report on school districts' academic and financial 
 97.25  performance under section 57:  
 97.26       $2,500,000     .....     2002 
 97.27     Subd. 28.  [MINNESOTA STUDENT ORGANIZATION FOUNDATION.] For 
 97.28  the Minnesota student organization foundation under Minnesota 
 97.29  Statutes, section 124D.34: 
 97.30         $625,000     .....     2002 
 97.31         $625,000     .....     2003 
 97.32     Any balance in the first year does not cancel but is 
 97.33  available in the second year. 
 97.34     Subd. 29.  [READING COMPETENCY GRANTS.] For reading 
 97.35  competency grants under Minnesota Statutes, section 120B.12: 
 97.36         $100,000     .....     2002 
 98.1          $100,000     .....     2003 
 98.2      The commissioner must award one grant to the St. Croix 
 98.3   river education district by July 1, 2001. 
 98.4      Sec. 63.  [REPEALER.] 
 98.5      (a) Minnesota Statutes 2000, section 124D.85, is repealed. 
 98.6      (b) Minnesota Statutes 2000, section 124D.32, is repealed, 
 98.7   effective July 1, 2002. 
 98.8      (c) Minnesota Statutes 2000, sections 124D.128, subdivision 
 98.9   7, and 135A.081, are repealed effective the day following final 
 98.10  enactment. 
 98.11                             ARTICLE 3 
 98.12                          SPECIAL PROGRAMS 
 98.13     Section 1.  Minnesota Statutes 2000, section 120B.031, 
 98.14  subdivision 11, is amended to read: 
 98.15     Subd. 11.  [TECHNOLOGY AND RECORDKEEPING.] (a) Consistent 
 98.16  with the requirements of this section, the commissioner must 
 98.17  ensure the availability and maintain the ongoing operation of a 
 98.18  uniform system for school districts to report profile of 
 98.19  learning data at the state and local levels.  The 
 98.20  commissioner also shall designate to school districts, area 
 98.21  learning centers, and charter schools software packages for 
 98.22  reporting student performance on the content standards.  The 
 98.23  commissioner shall ensure that the designated recordkeeping 
 98.24  software is capable of transferring student records between 
 98.25  schools and school districts and is available to school 
 98.26  districts at a minimal cost.  ~~The commissioner shall convene an~~ 
 98.27  ~~advisory group composed of qualified experts and interested~~ 
 98.28  ~~stakeholders to recommend to districts and charter schools~~ 
 98.29  ~~recordkeeping practices under the graduation rule.~~  The 
 98.30  commissioner also must ~~also~~ report on an ongoing basis on 
 98.31  technology needs for efficient daily classroom recordkeeping and 
 98.32  accountability reporting. 
 98.33     (b) The commissioner annually shall ~~notify~~ inform the 
 98.34  education committees of the legislature ~~that~~ regarding 
 98.35  recordkeeping practices under the profile of learning until the 
 98.36  requirements in paragraph (a) have been fully met. 
 99.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 99.2   following final enactment. 
 99.3      Sec. 2.  Minnesota Statutes 2000, section 121A.41, 
 99.4   subdivision 10, is amended to read: 
 99.5      Subd. 10.  [SUSPENSION.] "Suspension" means an action by 
 99.6   the school administration, under rules promulgated by the school 
 99.7   board, prohibiting a pupil from attending school for a period of 
 99.8   no more than ten school days.  If a suspension is longer than 
 99.9   five days, the suspending administrator must provide the 
 99.10  superintendent with a reason for the longer suspension.  This 
 99.11  definition does not apply to dismissal from school for one 
 99.12  school day or less, except as provided in federal law for a 
 99.13  student with a disability.  Each suspension action may include a 
 99.14  readmission plan.  The readmission plan shall include, where 
 99.15  appropriate, a provision for implementing alternative 
 99.16  educational services upon readmission and may not be used to 
 99.17  extend the current suspension.  Consistent with section 125A.09, 
 99.18  subdivision 3, the readmission plan must not obligate a parent 
 99.19  to provide a sympathomimetic medication for the parent's child 
 99.20  as a condition of readmission.  The school administration may 
 99.21  not impose consecutive suspensions against the same pupil for 
 99.22  the same course of conduct, or incident of misconduct, except 
 99.23  where the pupil will create an immediate and substantial danger 
 99.24  to self or to surrounding persons or property, or where the 
 99.25  district is in the process of initiating an expulsion, in which 
 99.26  case the school administration may extend the suspension to a 
 99.27  total of 15 days.  In the case of a student with a disability, 
 99.28  the student's individual education plan team must meet 
 99.29  immediately but not more than ten school days after the date on 
 99.30  which the decision to remove the student from the student's 
 99.31  current education placement is made.  The individual education 
 99.32  plan team shall at that meeting:  conduct a review of the 
 99.33  relationship between the child's disability and the behavior 
 99.34  subject to disciplinary action; and determine the 
 99.35  appropriateness of the child's education plan. 
 99.36     The requirements of the individual education plan team 
100.1   meeting apply when: 
100.2      (1) the parent requests a meeting; 
100.3      (2) the student is removed from the student's current 
100.4   placement for five or more consecutive days; or 
100.5      (3) the student's total days of removal from the student's 
100.6   placement during the school year exceed ten cumulative days in a 
100.7   school year.  The school administration shall implement 
100.8   alternative educational services when the suspension exceeds 
100.9   five days.  A separate administrative conference is required for 
100.10  each period of suspension. 
100.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
100.12  following final enactment.  
100.13     Sec. 3.  Minnesota Statutes 2000, section 122A.18, is 
100.14  amended by adding a subdivision to read: 
100.15     Subd. 2b.  [SPECIAL EDUCATION INFORMATION.] All colleges 
100.16  and universities approved by the board of teaching to prepare 
100.17  persons for classroom teacher licensure must include in their 
100.18  teacher preparation programs information on special education 
100.19  laws, teaching strategies, and positive behavior interventions. 
100.20     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
100.21  2002-2003 school year and later.  
100.22     Sec. 4.  Minnesota Statutes 2000, section 122A.31, is 
100.23  amended to read: 
100.24     122A.31 [AMERICAN SIGN LANGUAGE/ENGLISH INTERPRETERS.] 
100.25     Subdivision 1.  [REQUIREMENTS FOR AMERICAN SIGN 
100.26  LANGUAGE/ENGLISH INTERPRETERS.] (a) In addition to any other 
100.27  requirements that a school district establishes, any person 
100.28  employed to provide American sign language/English interpreting 
100.29  or sign transliterating services on a full-time or part-time 
100.30  basis for a school district after July 1, 2000, must: 
100.31     (1) hold current interpreter and transliterator 
100.32  certificates awarded by the Registry of Interpreters for the 
100.33  Deaf (RID), or the general level interpreter proficiency 
100.34  certificate awarded by the National Association of the Deaf 
100.35  (NAD), or a comparable state certification from the commissioner 
100.36  of children, families, and learning; and 
101.1      (2) satisfactorily complete an interpreter/transliterator 
101.2   training program affiliated with an accredited educational 
101.3   institution. 
101.4      (b) ~~To provide American sign language/English interpreting~~ 
101.5   ~~or transliterating services on a full-time or part-time basis, a~~ 
101.6   ~~person employed in a school district during the 1999-2000 school~~ 
101.7   ~~year must only comply with paragraph (a), clause (1).  The~~ 
101.8   ~~commissioner shall grant a nonrenewable, one-year provisional~~ 
101.9   ~~certificate to individuals who have not attained a current~~ 
101.10  ~~applicable transliterator certificate pursuant to paragraph (a),~~ 
101.11  ~~clause (1).  During the one-year provisional period, the~~ 
101.12  ~~interpreter/transliterator must develop and implement an~~ 
101.13  ~~education plan in collaboration with a mentor under paragraph~~ 
101.14  ~~(d).  This paragraph shall expire on June 30, 2001.~~ 
101.15     ~~(c)~~ New graduates of an interpreter/transliterator program 
101.16  affiliated with an accredited education institution shall be 
101.17  granted a two-year provisional certificate by the commissioner.  
101.18  During the two-year provisional period, the 
101.19  interpreter/transliterator must develop and implement an 
101.20  education plan in collaboration with a mentor under paragraph 
101.21  ~~(d)~~ (c).  ~~This paragraph applies to spring semester 2000~~ 
101.22  ~~graduates and thereafter.~~ 
101.23     ~~(d)~~ (c) A mentor of a provisionally certified 
101.24  interpreter/transliterator must be an interpreter/transliterator 
101.25  who has either NAD level IV or V certification or RID certified 
101.26  interpreter and certified transliterator certification and have 
101.27  at least three years interpreting/transliterating experience in 
101.28  any educational setting.  The mentor, in collaboration with the 
101.29  provisionally certified interpreter/transliterator, shall 
101.30  develop and implement an education plan designed to meet the 
101.31  requirements of paragraph (a), clause (1), and include a weekly 
101.32  on-site mentoring process. 
101.33     (d) Consistent with the requirements of this paragraph, a 
101.34  person holding a two-year provisional certificate may apply to 
101.35  the commissioner for a time-limited extension.  The 
101.36  commissioner, in consultation with the commission serving deaf 
102.1   and hard-of-hearing people, must grant the person a time-limited 
102.2   extension of the provisional certificate based on the following 
102.3   documentation: 
102.4      (1) letters of support from the person's mentor, a parent 
102.5   of a pupil the person serves, the special education director of 
102.6   the district in which the person is employed, and a 
102.7   representative from the regional service center of the deaf and 
102.8   hard-of-hearing; 
102.9      (2) records of the person's formal education, training, 
102.10  experience, and progress on the person's education plan; and 
102.11     (3) an explanation of why an extension is needed. 
102.12     As a condition of receiving an extension, the person must 
102.13  comply with a plan and the accompanying time line for meeting 
102.14  the requirements of this subdivision.  A committee composed of 
102.15  the director of the Minnesota resource center serving deaf and 
102.16  hard-of-hearing, or the director's designee, a representative of 
102.17  the Minnesota association of deaf citizens, a representative of 
102.18  the Minnesota registry of interpreters of the deaf, and other 
102.19  appropriate persons selected by the commissioner must develop 
102.20  the plan and time line for the person receiving the extension. 
102.21     (e) A school district may ~~not~~ employ only an 
102.22  interpreter/transliterator who has ~~not~~ been certified under 
102.23  paragraph (a)~~,~~ or (b), or ~~(c)~~ for whom a time-limited extension 
102.24  has been granted under paragraph (d). 
102.25     Subd. 2.  [ORAL OR CUED SPEECH TRANSLITERATORS.] (a) In 
102.26  addition to any other requirements that a school district 
102.27  establishes, any person employed to provide oral transliterating 
102.28  or cued speech transliterating services on a full-time or 
102.29  part-time basis for a school district after July 1, 2000, must 
102.30  hold a current applicable transliterator certificate awarded by 
102.31  the national certifying association or comparable state 
102.32  certification from the commissioner of children, families, and 
102.33  learning. 
102.34     (b) Consistent with the requirements of this paragraph, a 
102.35  person holding a two-year provisional certificate may apply to 
102.36  the commissioner for a time-limited extension.  The 
103.1   commissioner, in consultation with the commission serving deaf 
103.2   and hard-of-hearing people, must grant the person a time-limited 
103.3   extension of the provisional certificate based on the following 
103.4   documentation: 
103.5      (1) letters of support from the person's mentor, a parent 
103.6   of a pupil the person serves, the special education director of 
103.7   the district in which the person is employed, and a 
103.8   representative from the regional service center of the deaf and 
103.9   hard-of-hearing; 
103.10     (2) records of the person's formal education, training, 
103.11  experience, and progress on the person's education plan; and 
103.12     (3) an explanation of why an extension is needed. 
103.13     As a condition of receiving an extension, the person must 
103.14  comply with a plan and the accompanying time line for meeting 
103.15  the requirements of this subdivision.  A committee composed of 
103.16  the director of the Minnesota resource center serving deaf and 
103.17  hard-of-hearing, or the director's designee, a representative of 
103.18  the Minnesota association of deaf citizens, a representative of 
103.19  the Minnesota registry of interpreters of the deaf, and other 
103.20  appropriate persons selected by the commissioner must develop 
103.21  the plan and time line for the person receiving the extension. 
103.22     Subd. 3.  [QUALIFIED INTERPRETERS.] The department of 
103.23  children, families, and learning and the resource center:  deaf 
103.24  and hard of hearing shall work with existing 
103.25  interpreter/transliterator training programs, other 
103.26  training/educational institutions, and the regional service 
103.27  centers to ensure that ongoing staff development training for 
103.28  educational interpreters/transliterators is provided throughout 
103.29  the state. 
103.30     Subd. 4.  [REIMBURSEMENT.] (a) For purposes of revenue 
103.31  under section 125A.78, the department of children, families, and 
103.32  learning must only reimburse school districts for the services 
103.33  of those interpreters/transliterators who satisfy the standards 
103.34  of competency under this section.  
103.35     (b) Notwithstanding paragraph (a), a district shall be 
103.36  reimbursed for the services of interpreters with a nonrenewable 
104.1   provisional certificate ~~and~~, interpreters/transliterators 
104.2   employed to mentor the provisional certified interpreters and 
104.3   persons for whom a time-limited extension has been granted under 
104.4   subdivision 1, paragraph (d), or subdivision 2, paragraph (b). 
104.5      [EFFECTIVE DATE.] This section is effective for the 
104.6   2001-2002 school year and later. 
104.7      Sec. 5.  Minnesota Statutes 2000, section 122A.61, 
104.8   subdivision 1, is amended to read: 
104.9      Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
104.10  required to reserve an amount equal to at least two percent of 
104.11  the basic revenue under section 126C.10, subdivision 2, for 
104.12  in-service education for programs under section 120B.22, 
104.13  subdivision 2, for staff development plans, including plans for 
104.14  challenging instructional activities and experiences under 
104.15  section 122A.60, and for curriculum development and programs, 
104.16  other in-service education, teachers' workshops, teacher 
104.17  conferences, the cost of substitute teachers staff development 
104.18  purposes, preservice and in-service education for special 
104.19  education professionals and paraprofessionals, and other related 
104.20  costs for staff development efforts.  A district may annually 
104.21  waive the requirement to reserve their basic revenue under this 
104.22  section if a majority vote of the licensed teachers in the 
104.23  district and a majority vote of the school board agree to a 
104.24  resolution to waive the requirement.  A district in statutory 
104.25  operating debt is exempt from reserving basic revenue according 
104.26  to this section.  Districts may expend an additional amount of 
104.27  unreserved revenue for staff development based on their needs.  
104.28  With the exception of amounts reserved for staff development 
104.29  from revenues allocated directly to school sites, the board must 
104.30  initially allocate 50 percent of the reserved revenue to each 
104.31  school site in the district on a per teacher basis, which must 
104.32  be retained by the school site until used.  The board may retain 
104.33  25 percent to be used for district wide staff development 
104.34  efforts.  The remaining 25 percent of the revenue must be used 
104.35  to make grants to school sites for best practices methods.  A 
104.36  grant may be used for any purpose authorized under section 
105.1   120B.22, subdivision 2, 122A.60, or for the costs of curriculum 
105.2   development and programs, other in-service education, teachers' 
105.3   workshops, teacher conferences, substitute teachers for staff 
105.4   development purposes, and other staff development efforts, and 
105.5   determined by the site professional development team.  The site 
105.6   professional development team must demonstrate to the school 
105.7   board the extent to which staff at the site have met the 
105.8   outcomes of the program.  The board may withhold a portion of 
105.9   initial allocation of revenue if the staff development outcomes 
105.10  are not being met. 
105.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
105.12  following final enactment. 
105.13     Sec. 6.  Minnesota Statutes 2000, section 124D.65, 
105.14  subdivision 5, is amended to read: 
105.15     Subd. 5.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
105.16  district's limited English proficiency programs revenue for 
105.17  fiscal year 2000 equals the state total limited English 
105.18  proficiency programs revenue, minus the amount determined under 
105.19  paragraph (b), times the ratio of the district's adjusted 
105.20  limited English proficiency programs base revenue to the state 
105.21  total adjusted limited English proficiency programs base revenue.
105.22     (b) Notwithstanding paragraph (a), if the limited English 
105.23  proficiency programs base revenue for a district equals zero, 
105.24  the limited English proficiency programs revenue equals the sum 
105.25  of the following amounts, computed using current year data: 
105.26     (1) 68 percent of the salary of one full-time equivalent 
105.27  teacher for each 40 pupils of limited English proficiency 
105.28  enrolled, or 68 percent of the salary of one-half of a full-time 
105.29  teacher in a district with 20 or fewer pupils of limited English 
105.30  proficiency enrolled; and 
105.31     (2) for supplies and equipment purchased or rented for use 
105.32  in the instruction of pupils of limited English proficiency an 
105.33  amount equal to 47 percent of the sum actually spent by the 
105.34  district but not to exceed an average of $47 in any one school 
105.35  year for each pupil of limited English proficiency receiving 
105.36  instruction. 
106.1      (c) A district's limited English proficiency programs 
106.2   revenue for fiscal year 2001 and later equals the product of 
106.3   $584 times the greater of 20 or the number of adjusted marginal 
106.4   cost pupils of limited English proficiency enrolled in the 
106.5   district during the current fiscal year. 
106.6      (d) A pupil ceases to generate state limited English 
106.7   proficiency aid in the school year following the school year in 
106.8   which the pupil attains the state cut-off score on a 
106.9   commissioner-provided assessment that measures the pupil's 
106.10  emerging academic English. 
106.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
106.12     Sec. 7.  Minnesota Statutes 2000, section 125A.023, 
106.13  subdivision 4, is amended to read: 
106.14     Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
106.15  shall convene ~~an 18-member~~ a 19-member interagency committee to 
106.16  develop and implement a coordinated, multidisciplinary, 
106.17  interagency intervention service system for children ages three 
106.18  to 21 with disabilities.  The commissioners of commerce, 
106.19  children, families, and learning, health, human rights, human 
106.20  services, economic security, and corrections shall each appoint 
106.21  two committee members from their departments; the association of 
106.22  Minnesota counties shall appoint two county representatives, one 
106.23  of whom must be an elected official, as committee members; and 
106.24  the Minnesota school boards association, the Minnesota 
106.25  administrators of special education, and the school nurse 
106.26  association of Minnesota shall each appoint one committee 
106.27  member.  The committee shall select a chair from among its 
106.28  members. 
106.29     (b) The committee shall: 
106.30     (1) identify and assist in removing state and federal 
106.31  barriers to local coordination of services provided to children 
106.32  with disabilities; 
106.33     (2) identify adequate, equitable, and flexible funding 
106.34  sources to streamline these services; 
106.35     (3) develop guidelines for implementing policies that 
106.36  ensure a comprehensive and coordinated system of all state and 
107.1   local agency services, including multidisciplinary assessment 
107.2   practices for children with disabilities ages three to 21; 
107.3      (4) develop, consistent with federal law, a standardized 
107.4   written plan for providing services to a child with 
107.5   disabilities; 
107.6      (5) identify how current systems for dispute resolution can 
107.7   be coordinated and develop guidelines for that coordination; 
107.8      (6) develop an evaluation process to measure the success of 
107.9   state and local interagency efforts in improving the quality and 
107.10  coordination of services to children with disabilities ages 
107.11  three to 21; 
107.12     (7) develop guidelines to assist the governing boards of 
107.13  the interagency early intervention committees in carrying out 
107.14  the duties assigned in section 125A.027, subdivision 1, 
107.15  paragraph (b); and 
107.16     (8) carry out other duties necessary to develop and 
107.17  implement within communities a coordinated, multidisciplinary, 
107.18  interagency intervention service system for children with 
107.19  disabilities. 
107.20     (c) The committee shall consult on an ongoing basis with 
107.21  the state education advisory committee for special education and 
107.22  the governor's interagency coordinating council in carrying out 
107.23  its duties under this section, including assisting the governing 
107.24  boards of the interagency early intervention committees. 
107.25     Sec. 8.  Minnesota Statutes 2000, section 125A.08, is 
107.26  amended to read: 
107.27     125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
107.28     (a) As defined in this section, every district must ensure 
107.29  the following: 
107.30     (1) all students with disabilities are provided the special 
107.31  instruction and services which are appropriate to their needs.  
107.32  Where the individual education plan team has determined 
107.33  appropriate goals and objectives based on the student's needs, 
107.34  including the extent to which the student can be included in the 
107.35  least restrictive environment, and where there are essentially 
107.36  equivalent and effective instruction, related services, or 
108.1   assistive technology devices available to meet the student's 
108.2   needs, cost to the district may be among the factors considered 
108.3   by the team in choosing how to provide the appropriate services, 
108.4   instruction, or devices that are to be made part of the 
108.5   student's individual education plan.  The individual education 
108.6   plan team shall consider and may authorize services covered by 
108.7   medical assistance according to section 256B.0625, subdivision 
108.8   26.  The student's needs and the special education instruction 
108.9   and services to be provided must be agreed upon through the 
108.10  development of an individual education plan.  The plan must 
108.11  address the student's need to develop skills to live and work as 
108.12  independently as possible within the community.  The individual 
108.13  education plan team must consider positive behavioral 
108.14  interventions, strategies, and supports that address behavior 
108.15  for children with attention deficit disorder or attention 
108.16  deficit hyperactivity disorder.  By grade 9 or age 14, the plan 
108.17  must address the student's needs for transition from secondary 
108.18  services to post-secondary education and training, employment, 
108.19  community participation, recreation, and leisure and home 
108.20  living.  In developing the plan, districts must inform parents 
108.21  of the full range of transitional goals and related services 
108.22  that should be considered.  The plan must include a statement of 
108.23  the needed transition services, including a statement of the 
108.24  interagency responsibilities or linkages or both before 
108.25  secondary services are concluded; 
108.26     (2) children with a disability under age five and their 
108.27  families are provided special instruction and services 
108.28  appropriate to the child's level of functioning and needs; 
108.29     (3) children with a disability and their parents or 
108.30  guardians are guaranteed procedural safeguards and the right to 
108.31  participate in decisions involving identification, assessment 
108.32  including assistive technology assessment, and educational 
108.33  placement of children with a disability; 
108.34     (4) eligibility and needs of children with a disability are 
108.35  determined by an initial assessment or reassessment, which may 
108.36  be completed using existing data under United States Code, title 
109.1   20, section 33, et seq.; 
109.2      (5) to the maximum extent appropriate, children with a 
109.3   disability, including those in public or private institutions or 
109.4   other care facilities, are educated with children who are not 
109.5   disabled, and that special classes, separate schooling, or other 
109.6   removal of children with a disability from the regular 
109.7   educational environment occurs only when and to the extent that 
109.8   the nature or severity of the disability is such that education 
109.9   in regular classes with the use of supplementary services cannot 
109.10  be achieved satisfactorily; 
109.11     (6) in accordance with recognized professional standards, 
109.12  testing and evaluation materials, and procedures used for the 
109.13  purposes of classification and placement of children with a 
109.14  disability are selected and administered so as not to be 
109.15  racially or culturally discriminatory; and 
109.16     (7) the rights of the child are protected when the parents 
109.17  or guardians are not known or not available, or the child is a 
109.18  ward of the state. 
109.19     (b) For paraprofessionals employed to work in programs for 
109.20  students with disabilities, the school board in each district 
109.21  shall ensure that: 
109.22     (1) before or immediately upon employment, each 
109.23  paraprofessional develops sufficient knowledge and skills in 
109.24  emergency procedures, building orientation, roles and 
109.25  responsibilities, confidentiality, vulnerability, and 
109.26  reportability, among other things, to begin meeting the needs of 
109.27  the students with whom the paraprofessional works; 
109.28     (2) annual training opportunities are available to enable 
109.29  the paraprofessional to continue to further develop the 
109.30  knowledge and skills that are specific to the students with whom 
109.31  the paraprofessional works, including understanding 
109.32  disabilities, following lesson plans, and implementing follow-up 
109.33  instructional procedures and activities; and 
109.34     (3) a districtwide process obligates each paraprofessional 
109.35  to work under the ongoing direction of a licensed teacher and, 
109.36  where appropriate and possible, the supervision of a school 
110.1   nurse. 
110.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
110.3   following final enactment.  
110.4      Sec. 9.  Minnesota Statutes 2000, section 125A.09, 
110.5   subdivision 3, is amended to read: 
110.6      Subd. 3.  [INITIAL ACTION; PARENT CONSENT.] (a) The 
110.7   district must not proceed with the initial formal assessment of 
110.8   a child, the initial placement of a child in a special education 
110.9   program, or the initial provision of special education services 
110.10  for a child without the prior written consent of the child's 
110.11  parent or guardian.  The refusal of a parent or guardian to 
110.12  consent may be overridden by the decision in a hearing held 
110.13  pursuant to subdivision 6 at the district's initiative. 
110.14     (b) A parent, after consulting with health care, education, 
110.15  or other professional providers, may agree or disagree to 
110.16  provide the parent's child with sympathomimetic medications 
110.17  unless section 144.344 applies.  
110.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
110.19  following final enactment.  
110.20     Sec. 10.  Minnesota Statutes 2000, section 125A.11, 
110.21  subdivision 3, is amended to read: 
110.22     Subd. 3.  [AGREEMENT BETWEEN DISTRICTS TO PROVIDE SPECIAL 
110.23  INSTRUCTION AND SERVICES.] For the purposes of this section, any 
110.24  school district may enter into an agreement, upon mutually 
110.25  agreed upon terms and conditions, to provide special instruction 
110.26  and services for children with a disability.  In that event, one 
110.27  of the participating units may employ and contract with 
110.28  necessary qualified personnel to offer services in the several 
110.29  districts.  Each participating unit must reimburse the employing 
110.30  unit a proportionate amount of the actual cost of providing the 
110.31  special instruction and services, less the amount of state 
110.32  special education aid~~, which shall be claimed in full by the~~ 
110.33  ~~employing district~~.  
110.34     Sec. 11.  Minnesota Statutes 2000, section 125A.27, 
110.35  subdivision 15, is amended to read: 
110.36     Subd. 15.  [PART ~~H~~ C STATE PLAN.] "Part ~~H~~ C state plan" 
111.1   means the annual state plan application approved by the federal 
111.2   government under the Individuals with Disabilities Education 
111.3   Act, United States Code, title 20, section 1471 et seq. (Part ~~H~~ 
111.4   C, Public Law Number ~~102-119~~ 105-117). 
111.5      Sec. 12.  Minnesota Statutes 2000, section 125A.76, 
111.6   subdivision 1, is amended to read: 
111.7      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
111.8   section, the definitions in this subdivision apply. 
111.9      (a) "Base year" for fiscal year 1998 and later fiscal years 
111.10  means the second fiscal year preceding the fiscal year for which 
111.11  aid will be paid. 
111.12     (b) "Basic revenue" has the meaning given it in section 
111.13  126C.10, subdivision 2.  For the purposes of computing basic 
111.14  revenue pursuant to this section, each child with a disability 
111.15  shall be counted as prescribed in section 126C.05, subdivision 1.
111.16     (c) "Essential personnel" means teachers, cultural 
111.17  liaisons, related services, and support services staff providing 
111.18  direct services to students.  Essential personnel may also 
111.19  include special education paraprofessionals or clericals 
111.20  providing support to teachers and students by preparing 
111.21  paperwork and making arrangements related to special education 
111.22  compliance requirements, including parent meetings and 
111.23  individual education plans. 
111.24     (d) "Average daily membership" has the meaning given it in 
111.25  section 126C.05. 
111.26     (e) "Program growth factor" means 1.08 for fiscal year 
111.27  2002, and 1.046 for fiscal year 2003 and later. 
111.28     Sec. 13.  Minnesota Statutes 2000, section 125A.76, 
111.29  subdivision 2, is amended to read: 
111.30     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
111.31  education base revenue equals the sum of the following amounts 
111.32  computed using base year data: 
111.33     (1) 68 percent of the salary of each essential person 
111.34  employed in the district's program for children with a 
111.35  disability during the fiscal year, ~~not including the share of~~ 
111.36  ~~salaries for personnel providing health-related services counted~~ 
112.1   ~~in clause (8),~~ whether the person is employed by one or more 
112.2   districts or a Minnesota correctional facility operating on a 
112.3   fee-for-service basis; 
112.4      (2) for the Minnesota state academy for the deaf or the 
112.5   Minnesota state academy for the blind, 68 percent of the salary 
112.6   of each instructional aide assigned to a child attending the 
112.7   academy, if that aide is required by the child's individual 
112.8   education plan; 
112.9      (3) for special instruction and services provided to any 
112.10  pupil by contracting with public, private, or voluntary agencies 
112.11  other than school districts, in place of special instruction and 
112.12  services provided by the district, 52 percent of the difference 
112.13  between the amount of the contract and the ~~basic revenue of the~~ 
112.14  ~~district for that pupil~~ amount of the basic revenue, as defined 
112.15  in section 126C.10, subdivision 2, special education aid, and 
112.16  any other aid earned on behalf of the child for the fraction of 
112.17  the school day the pupil receives services under the contract; 
112.18     (4) for special instruction and services provided to any 
112.19  pupil by contracting for services with public, private, or 
112.20  voluntary agencies other than school districts, that are 
112.21  supplementary to a full educational program provided by the 
112.22  school district, 52 percent of the amount of the contract for 
112.23  that pupil; 
112.24     (5) for supplies and equipment purchased or rented for use 
112.25  in the instruction of children with a disability, ~~not including~~ 
112.26  ~~the portion of the expenses for supplies and equipment used to~~ 
112.27  ~~provide health-related services counted in clause (8),~~ an amount 
112.28  equal to 47 percent of the sum actually expended by the 
112.29  district, or a Minnesota correctional facility operating on a 
112.30  fee-for-service basis, but not to exceed an average of $47 in 
112.31  any one school year for each child with a disability receiving 
112.32  instruction; 
112.33     (6) for fiscal years 1997 and later, special education base 
112.34  revenue shall include amounts under clauses (1) to (5) for 
112.35  special education summer programs provided during the base year 
112.36  for that fiscal year; and 
113.1      (7) for fiscal years 1999 and later, the cost of providing 
113.2   transportation services for children with disabilities under 
113.3   section 123B.92, subdivision 1, paragraph (b), clause (4). 
113.4      The department shall establish procedures through the 
113.5   uniform financial accounting and reporting system to identify 
113.6   and track all revenues generated from third-party billings as 
113.7   special education revenue at the school district level; include 
113.8   revenue generated from third-party billings as special education 
113.9   revenue in the annual cross-subsidy report; and exclude 
113.10  third-party revenue from calculation of excess cost aid to the 
113.11  districts. 
113.12     (b) If requested by a school district operating a special 
113.13  education program during the base year for less than the full 
113.14  fiscal year, or a school district in which is located a 
113.15  Minnesota correctional facility operating on a fee-for-service 
113.16  basis for less than the full fiscal year, the commissioner may 
113.17  adjust the base revenue to reflect the expenditures that would 
113.18  have occurred during the base year had the program been operated 
113.19  for the full fiscal year. 
113.20     (c) Notwithstanding paragraphs (a) and (b), the portion of 
113.21  a school district's base revenue attributable to a Minnesota 
113.22  correctional facility operating on a fee-for-service basis 
113.23  during the facility's first year of operating on a 
113.24  fee-for-service basis shall be computed using current year data. 
113.25     Sec. 14.  Minnesota Statutes 2000, section 260A.01, is 
113.26  amended to read: 
113.27     260A.01 [TRUANCY PROGRAMS AND SERVICES.] 
113.28     (a) The programs in this chapter are designed to provide a 
113.29  continuum of intervention and services to support families and 
113.30  children in keeping children in school and combating truancy and 
113.31  educational neglect.  School districts, county attorneys, and 
113.32  law enforcement may establish the programs and coordinate them 
113.33  with other community-based truancy services in order to provide 
113.34  the necessary and most effective intervention for children and 
113.35  their families.  This continuum of intervention and services 
113.36  involves progressively intrusive intervention, beginning with 
114.1   strong service-oriented efforts at the school and community 
114.2   level and involving the court's authority only when necessary. 
114.3      (b) Consistent with section 125A.09, subdivision 3, a 
114.4   parent's refusal to provide the parent's child with 
114.5   sympathomimetic medications does not constitute educational 
114.6   neglect.  
114.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
114.8   following final enactment.  
114.9      Sec. 15.  Minnesota Statutes 2000, section 260C.163, 
114.10  subdivision 11, is amended to read: 
114.11     Subd. 11.  [PRESUMPTIONS REGARDING TRUANCY OR EDUCATIONAL 
114.12  NEGLECT.] (a) A child's absence from school is presumed to be 
114.13  due to the parent's, guardian's, or custodian's failure to 
114.14  comply with compulsory instruction laws if the child is under 12 
114.15  years old and the school has made appropriate efforts to resolve 
114.16  the child's attendance problems; this presumption may be 
114.17  rebutted based on a showing by clear and convincing evidence 
114.18  that the child is habitually truant.  A child's absence from 
114.19  school without lawful excuse, when the child is 12 years old or 
114.20  older, is presumed to be due to the child's intent to be absent 
114.21  from school; this presumption may be rebutted based on a showing 
114.22  by clear and convincing evidence that the child's absence is due 
114.23  to the failure of the child's parent, guardian, or custodian to 
114.24  comply with compulsory instruction laws, sections 120A.22 and 
114.25  120A.24. 
114.26     (b) Consistent with section 125A.09, subdivision 3, a 
114.27  parent's refusal to provide the parent's child with 
114.28  sympathomimetic medications does not constitute educational 
114.29  neglect.  
114.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
114.31  following final enactment.  
114.32     Sec. 16.  Minnesota Statutes 2000, section 626.556, 
114.33  subdivision 2, is amended to read: 
114.34     Subd. 2.  [DEFINITIONS.] As used in this section, the 
114.35  following terms have the meanings given them unless the specific 
114.36  content indicates otherwise: 
115.1      (a) "Sexual abuse" means the subjection of a child by a 
115.2   person responsible for the child's care, by a person who has a 
115.3   significant relationship to the child, as defined in section 
115.4   609.341, or by a person in a position of authority, as defined 
115.5   in section 609.341, subdivision 10, to any act which constitutes 
115.6   a violation of section 609.342 (criminal sexual conduct in the 
115.7   first degree), 609.343 (criminal sexual conduct in the second 
115.8   degree), 609.344 (criminal sexual conduct in the third degree), 
115.9   609.345 (criminal sexual conduct in the fourth degree), or 
115.10  609.3451 (criminal sexual conduct in the fifth degree).  Sexual 
115.11  abuse also includes any act which involves a minor which 
115.12  constitutes a violation of prostitution offenses under sections 
115.13  609.321 to 609.324 or 617.246.  Sexual abuse includes threatened 
115.14  sexual abuse.  
115.15     (b) "Person responsible for the child's care" means (1) an 
115.16  individual functioning within the family unit and having 
115.17  responsibilities for the care of the child such as a parent, 
115.18  guardian, or other person having similar care responsibilities, 
115.19  or (2) an individual functioning outside the family unit and 
115.20  having responsibilities for the care of the child such as a 
115.21  teacher, school administrator, or other lawful custodian of a 
115.22  child having either full-time or short-term care 
115.23  responsibilities including, but not limited to, day care, 
115.24  babysitting whether paid or unpaid, counseling, teaching, and 
115.25  coaching.  
115.26     (c) "Neglect" means: 
115.27     (1) failure by a person responsible for a child's care to 
115.28  supply a child with necessary food, clothing, shelter, health, 
115.29  medical, or other care required for the child's physical or 
115.30  mental health when reasonably able to do so; 
115.31     (2) failure to protect a child from conditions or actions 
115.32  which imminently and seriously endanger the child's physical or 
115.33  mental health when reasonably able to do so; 
115.34     (3) failure to provide for necessary supervision or child 
115.35  care arrangements appropriate for a child after considering 
115.36  factors as the child's age, mental ability, physical condition, 
116.1   length of absence, or environment, when the child is unable to 
116.2   care for the child's own basic needs or safety, or the basic 
116.3   needs or safety of another child in their care; 
116.4      (4) failure to ensure that the child is educated as defined 
116.5   in sections 120A.22 and 260C.163, subdivision 11, which does not 
116.6   include a parent's refusal to provide the parent's child with 
116.7   sympathomimetic medications, consistent with section 125A.09, 
116.8   subdivision 3; 
116.9      (5) nothing in this section shall be construed to mean that 
116.10  a child is neglected solely because the child's parent, 
116.11  guardian, or other person responsible for the child's care in 
116.12  good faith selects and depends upon spiritual means or prayer 
116.13  for treatment or care of disease or remedial care of the child 
116.14  in lieu of medical care; except that a parent, guardian, or 
116.15  caretaker, or a person mandated to report pursuant to 
116.16  subdivision 3, has a duty to report if a lack of medical care 
116.17  may cause serious danger to the child's health.  This section 
116.18  does not impose upon persons, not otherwise legally responsible 
116.19  for providing a child with necessary food, clothing, shelter, 
116.20  education, or medical care, a duty to provide that care; 
116.21     (6) prenatal exposure to a controlled substance, as defined 
116.22  in section 253B.02, subdivision 2, used by the mother for a 
116.23  nonmedical purpose, as evidenced by withdrawal symptoms in the 
116.24  child at birth, results of a toxicology test performed on the 
116.25  mother at delivery or the child at birth, or medical effects or 
116.26  developmental delays during the child's first year of life that 
116.27  medically indicate prenatal exposure to a controlled substance; 
116.28     (7) "medical neglect" as defined in section 260C.007, 
116.29  subdivision 4, clause (5); 
116.30     (8) chronic and severe use of alcohol or a controlled 
116.31  substance by a parent or person responsible for the care of the 
116.32  child that adversely affects the child's basic needs and safety; 
116.33  or 
116.34     (9) emotional harm from a pattern of behavior which 
116.35  contributes to impaired emotional functioning of the child which 
116.36  may be demonstrated by a substantial and observable effect in 
117.1   the child's behavior, emotional response, or cognition that is 
117.2   not within the normal range for the child's age and stage of 
117.3   development, with due regard to the child's culture. 
117.4      (d) "Physical abuse" means any physical injury, mental 
117.5   injury, or threatened injury, inflicted by a person responsible 
117.6   for the child's care on a child other than by accidental means, 
117.7   or any physical or mental injury that cannot reasonably be 
117.8   explained by the child's history of injuries, or any aversive 
117.9   and deprivation procedures that have not been authorized under 
117.10  section 245.825.  Abuse does not include reasonable and moderate 
117.11  physical discipline of a child administered by a parent or legal 
117.12  guardian which does not result in an injury.  Actions which are 
117.13  not reasonable and moderate include, but are not limited to, any 
117.14  of the following that are done in anger or without regard to the 
117.15  safety of the child: 
117.16     (1) throwing, kicking, burning, biting, or cutting a child; 
117.17     (2) striking a child with a closed fist; 
117.18     (3) shaking a child under age three; 
117.19     (4) striking or other actions which result in any 
117.20  nonaccidental injury to a child under 18 months of age; 
117.21     (5) unreasonable interference with a child's breathing; 
117.22     (6) threatening a child with a weapon, as defined in 
117.23  section 609.02, subdivision 6; 
117.24     (7) striking a child under age one on the face or head; 
117.25     (8) purposely giving a child poison, alcohol, or dangerous, 
117.26  harmful, or controlled substances which were not prescribed for 
117.27  the child by a practitioner, in order to control or punish the 
117.28  child; or other substances that substantially affect the child's 
117.29  behavior, motor coordination, or judgment or that results in 
117.30  sickness or internal injury, or subjects the child to medical 
117.31  procedures that would be unnecessary if the child were not 
117.32  exposed to the substances; or 
117.33     (9) unreasonable physical confinement or restraint not 
117.34  permitted under section 609.379, including but not limited to 
117.35  tying, caging, or chaining. 
117.36     (e) "Report" means any report received by the local welfare 
118.1   agency, police department, or county sheriff pursuant to this 
118.2   section. 
118.3      (f) "Facility" means a licensed or unlicensed day care 
118.4   facility, residential facility, agency, hospital, sanitarium, or 
118.5   other facility or institution required to be licensed under 
118.6   sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 
118.7   chapter 245B; or a school as defined in sections 120A.05, 
118.8   subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 
118.9   personal care provider organization as defined in sections 
118.10  256B.04, subdivision 16, and 256B.0625, subdivision 19a. 
118.11     (g) "Operator" means an operator or agency as defined in 
118.12  section 245A.02.  
118.13     (h) "Commissioner" means the commissioner of human services.
118.14     (i) "Assessment" includes authority to interview the child, 
118.15  the person or persons responsible for the child's care, the 
118.16  alleged perpetrator, and any other person with knowledge of the 
118.17  abuse or neglect for the purpose of gathering the facts, 
118.18  assessing the risk to the child, and formulating a plan.  
118.19     (j) "Practice of social services," for the purposes of 
118.20  subdivision 3, includes but is not limited to employee 
118.21  assistance counseling and the provision of guardian ad litem and 
118.22  parenting time expeditor services.  
118.23     (k) "Mental injury" means an injury to the psychological 
118.24  capacity or emotional stability of a child as evidenced by an 
118.25  observable or substantial impairment in the child's ability to 
118.26  function within a normal range of performance and behavior with 
118.27  due regard to the child's culture. 
118.28     (l) "Threatened injury" means a statement, overt act, 
118.29  condition, or status that represents a substantial risk of 
118.30  physical or sexual abuse or mental injury. 
118.31     (m) Persons who conduct assessments or investigations under 
118.32  this section shall take into account accepted child-rearing 
118.33  practices of the culture in which a child participates, which 
118.34  are not injurious to the child's health, welfare, and safety. 
118.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
118.36  following final enactment. 
119.1      Sec. 17.  Laws 2000, chapter 489, article 3, section 24, is 
119.2   amended to read: 
119.3      Sec. 24.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 
119.4      (a) For fiscal year 2000, a school district shall receive 
119.5   an amount of revenue equal to $8.15 times the district's 
119.6   adjusted marginal cost pupil units.  
119.7      (b) For fiscal year 2001, a school district shall receive 
119.8   an amount of revenue equal to $19 times the district's adjusted 
119.9   marginal cost pupil units.  Special education cross-subsidy 
119.10  revenue must be used to pay for a district's unfunded special 
119.11  education costs that are currently cross-subsidized by a 
119.12  district's general education revenue. 
119.13     (c) The fiscal year 2001 revenue is paid entirely in fiscal 
119.14  year 2001 based on estimated data.  By January 31, 2002, the 
119.15  department of children, families, and learning shall recalculate 
119.16  the revenue for each district using actual data, and shall 
119.17  adjust the general education aid paid to school districts for 
119.18  fiscal year 2002 by the amount of the difference between the 
119.19  estimated revenue and the actual revenue. 
119.20     Sec. 18.  [INTERAGENCY AUTISM COORDINATING COMMITTEE.] 
119.21     (a) The commissioner of children, families, and learning 
119.22  shall establish an interagency committee to coordinate state 
119.23  efforts related to serving children with autism.  The committee 
119.24  shall include representatives of the departments of children, 
119.25  families, and learning and human services; parents or guardians 
119.26  of children with autism; pediatricians; local public health 
119.27  officials; and representatives of private or nonprofit 
119.28  organizations that advocate on behalf of children with autism. 
119.29     (b) The interagency autism coordinating committee shall 
119.30  study and recommend by December 1, 2001, to the committees in 
119.31  the legislature charged with early childhood through grade 12 
119.32  education policy and finance matters a plan for improving 
119.33  efforts at early assessment and identification of autism in 
119.34  young children.  The plan must consider: 
119.35     (1) all existing assessment program options; 
119.36     (2) public and private funding sources including 
120.1   programmatic funding for early and periodic screening, 
120.2   diagnosis, and treatment; and 
120.3      (3) current, research-based best practice models. 
120.4   The plan must be designed to make optimal use of existing public 
120.5   resources. 
120.6      (c) The committee expires June 30, 2003. 
120.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
120.8   following final enactment. 
120.9      Sec. 19.  [APPROPRIATIONS.] 
120.10     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
120.11  LEARNING.] The sums indicated in this section are appropriated 
120.12  from the general fund to the department of children, families, 
120.13  and learning for the fiscal years designated. 
120.14     Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
120.15  aid according to Minnesota Statutes, section 125A.75: 
120.16       $507,448,000   .....     2002 
120.17       $531,481,000   .....     2003 
120.18     The 2002 appropriation includes $47,400,000 for 2001 and 
120.19  $460,048,000 for 2002. 
120.20     The 2003 appropriation includes $51,116,000 for 2002 and 
120.21  $480,365,000 for 2003. 
120.22     Subd. 3.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
120.23  according to Minnesota Statutes, section 125A.75, subdivision 3, 
120.24  for children with a disability placed in residential facilities 
120.25  within the district boundaries for whom no district of residence 
120.26  can be determined: 
120.27       $1,877,000     .....     2002 
120.28       $2,033,000     .....     2003 
120.29     If the appropriation for either year is insufficient, the 
120.30  appropriation for the other year is available.  Any balance in 
120.31  the first year does not cancel but is available in the second 
120.32  year. 
120.33     Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
120.34  teacher travel for home-based services according to Minnesota 
120.35  Statutes, section 125A.75, subdivision 1: 
120.36       $135,000       .....     2002 
121.1        $138,000       .....     2003 
121.2      The 2002 appropriation includes $13,000 for 2001 and 
121.3   $122,000 for 2002. 
121.4      The 2003 appropriation includes $13,000 for 2002 and 
121.5   $125,000 for 2003. 
121.6      Subd. 5.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
121.7   cost aid: 
121.8        $102,665,000   .....     2002 
121.9        $104,773,000   .....     2003 
121.10     The 2002 appropriation includes $9,889,000 for 2001 and 
121.11  $92,776,000 for 2002. 
121.12     The 2003 appropriation includes $10,308,000 for 2002 and 
121.13  $94,465,000 for 2003. 
121.14     Subd. 6.  [LITIGATION COSTS.] For paying the costs a 
121.15  district incurs under Minnesota Statutes, section 125A.75, 
121.16  subdivision 8: 
121.17       $375,000       .....     2002 
121.18       $375,000       .....     2003 
121.19     Subd. 7.  [TRANSITION PROGRAMS; STUDENTS WITH 
121.20  DISABILITIES.] For aid for transition programs for pupils with 
121.21  disabilities according to Minnesota Statutes, section 124D.454: 
121.22       $8,954,000     .....     2002 
121.23       $8,939,000     .....     2003 
121.24     The 2002 appropriation includes $896,000 for 2001 and 
121.25  $8,058,000 for 2002.  
121.26     The 2003 appropriation includes $895,000 for 2002 and 
121.27  $8,044,000 for 2003.  
121.28     Subd. 8.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
121.29  reimbursing serving school districts for unreimbursed eligible 
121.30  expenditures attributable to children placed in the serving 
121.31  school district by court action under Minnesota Statutes, 
121.32  section 125A.79, subdivision 4: 
121.33       $350,000       .....     2002 
121.34       $350,000       .....     2003 
121.35     Subd. 9.  [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 
121.36  special education out-of-state tuition according to Minnesota 
122.1   Statutes, section 125A.79, subdivision 8: 
122.2        $250,000       .....     2002 
122.3        $250,000       .....     2003 
122.4      Subd. 10.  [BEST PRACTICES GRANT.] For a best practices 
122.5   grant to intermediate school districts Nos. 287, 916, and 917: 
122.6        $1,000,000     .....     2002 
122.7      The intermediate school districts must use the grant 
122.8   proceeds to train teachers of special needs students under Laws 
122.9   1998, chapter 398, article 5, section 42. 
122.10     Subd. 11.  [USE OF SYMPATHOMIMETIC MEDICATIONS; STUDY.] For 
122.11  the purpose of contracting with a qualified expert to determine 
122.12  and report, consistent with Minnesota Statutes, chapter 13, the 
122.13  number and overall incidence rate of Minnesota children ages 
122.14  three to 18, by age, grade level, gender, and race, diagnosed 
122.15  with attention deficit disorder (ADD) or attention deficit 
122.16  hyperactivity disorder (ADHD) currently taking sympathomimetic 
122.17  medications such as Ritalin: 
122.18       $50,000     .....     2002 
122.19     In preparing the report, the contractor also must determine 
122.20  the number and overall incidence rate of children not identified 
122.21  with ADD or ADHD currently taking sympathomimetic medications 
122.22  such as Ritalin.  The contractor is encouraged to examine the 
122.23  number of children who take sympathomimetic medications at home 
122.24  and not at school, the previous interventions tried with 
122.25  children taking sympathomimetic medications, the types of 
122.26  practitioners who prescribe the sympathomimetic medications, and 
122.27  what pressures families have experienced in terms of providing 
122.28  their children with sympathomimetic medications.  The 
122.29  commissioner must submit the report to the education committees 
122.30  of the legislature by February 15, 2002. 
122.31                             ARTICLE 4 
122.32                     FACILITIES AND TECHNOLOGY 
122.33     Section 1.  Minnesota Statutes 2000, section 16B.616, 
122.34  subdivision 4, is amended to read: 
122.35     Subd. 4.  [ENFORCEMENT.] (a) A statutory or home rule 
122.36  charter city that is not covered by the code because of action 
123.1   taken under section 16B.72 or 16B.73 is responsible for 
123.2   enforcement in the city of the code's requirements for bleacher 
123.3   safety.  In all other areas where the code does not apply 
123.4   because of action taken under section 16B.72 or 16B.73, the 
123.5   county is responsible for enforcement of those requirements. 
123.6      (b) Municipalities that have not adopted the code may 
123.7   enforce the code requirements for bleacher safety by either 
123.8   entering into a joint powers agreement for enforcement with 
123.9   another municipality that has adopted the code or contracting 
123.10  for enforcement with a qualified and certified building official 
123.11  or state licensed design professional to enforce the code. 
123.12     (c) Municipalities, school districts, organizations, 
123.13  individuals, and other persons operating or owning places of 
123.14  public accommodation with bleachers that are subject to the 
123.15  safety requirements in subdivision 3 shall provide a signed 
123.16  certification of compliance to the commissioner by January 1, 
123.17  2002.  For bleachers subject to the exception in subdivision 3, 
123.18  clause (1), entities covered by this paragraph must have on file 
123.19  a bleacher safety management plan and amortization schedule.  
123.20  The certification shall be prepared by a qualified and certified 
123.21  building official or state licensed design professional and 
123.22  shall certify that the bleachers have been inspected and are in 
123.23  compliance with the requirements of this section and are 
123.24  structurally sound.  For bleachers owned by a school district or 
123.25  nonpublic school, the person the district or nonpublic school 
123.26  designates to be responsible for buildings and grounds may make 
123.27  the certification. 
123.28     Sec. 2.  Minnesota Statutes 2000, section 123B.53, 
123.29  subdivision 1, is amended to read: 
123.30     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
123.31  section, the eligible debt service revenue of a district is 
123.32  defined as follows: 
123.33     (1) the amount needed to produce between five and six 
123.34  percent in excess of the amount needed to meet when due the 
123.35  principal and interest payments on the obligations of the 
123.36  district for eligible projects according to subdivision 2, 
124.1   including the amounts necessary for repayment of energy loans 
124.2   according to section 216C.37 or sections 298.292 to 298.298, 
124.3   debt service loans and capital loans, lease purchase payments 
124.4   under section 126C.40, subdivision 2, alternative facilities 
124.5   levies under section 123B.59, subdivision 5, minus 
124.6      (2) the amount of debt service excess levy reduction for 
124.7   that school year calculated according to the procedure 
124.8   established by the commissioner. 
124.9      (b) The obligations in this paragraph are excluded from 
124.10  eligible debt service revenue: 
124.11     (1) obligations under section 123B.61; 
124.12     (2) the part of debt service principal and interest paid 
124.13  from the taconite environmental protection fund or northeast 
124.14  Minnesota economic protection trust; 
124.15     (3) obligations issued under Laws 1991, chapter 265, 
124.16  article 5, section 18, as amended by Laws 1992, chapter 499, 
124.17  article 5, section 24; and 
124.18     (4) obligations under section 123B.62. 
124.19     (c) For purposes of this section, if a preexisting school 
124.20  district reorganized under sections 123A.35 to 123A.43, 123A.46, 
124.21  and 123A.48 is solely responsible for retirement of the 
124.22  preexisting district's bonded indebtedness, capital loans or 
124.23  debt service loans, debt service equalization aid must be 
124.24  computed separately for each of the preexisting districts. 
124.25     (d) For purposes of this section, "revenue eligible for 
124.26  second tier debt equalization" means the eligible debt service 
124.27  revenue according to paragraphs (a) to (c) for projects 
124.28  receiving a positive review and comment according to section 
124.29  123B.70 and receiving voter approval or school district approval 
124.30  after January 1, 2000, or, for projects not requiring a review 
124.31  and comment, that are approved by the commissioner after January 
124.32  1, 2000. 
124.33     Sec. 3.  Minnesota Statutes 2000, section 123B.53, 
124.34  subdivision 2, is amended to read: 
124.35     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
124.36  district's debt service levy qualify for debt service 
125.1   equalization: 
125.2      (1) debt service for repayment of principal and interest on 
125.3   bonds issued before July 2, 1992; 
125.4      (2) debt service for bonds refinanced after July 1, 1992, 
125.5   if the bond schedule has been approved by the commissioner and, 
125.6   if necessary, adjusted to reflect a 20-year maturity schedule; 
125.7   and 
125.8      (3) debt service for bonds issued after July 1, 1992, for 
125.9   construction projects that have received a positive review and 
125.10  comment according to section 123B.71, if the commissioner has 
125.11  determined that the district has met the criteria under section 
125.12  126C.69, subdivision 3, ~~except section 126C.69, subdivision 3,~~ 
125.13  ~~paragraph (a), clause (2),~~ and if the bond schedule has been 
125.14  approved by the commissioner and, if necessary, adjusted to 
125.15  reflect a 20-year maturity schedule. 
125.16     (b) The criterion described in section 126C.69, subdivision 
125.17  3, paragraph (a), clause (9), does not apply to bonds authorized 
125.18  by elections held before July 1, 1992. 
125.19     (c) For the purpose of this subdivision the department 
125.20  shall determine the eligibility for sparsity at the location of 
125.21  the new facility, or the site of the new facility closest to the 
125.22  nearest operating school if there is more than one new facility. 
125.23     (d) Notwithstanding paragraphs (a) to (c), debt service for 
125.24  repayment of principal and interest on bonds issued after July 
125.25  1, 1997, does not qualify for debt service equalization aid 
125.26  unless the primary purpose of the facility is to serve students 
125.27  in kindergarten through grade 12. 
125.28     Sec. 4.  Minnesota Statutes 2000, section 123B.53, 
125.29  subdivision 4, is amended to read: 
125.30     Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 
125.31  service equalization revenue of a district equals the sum of the 
125.32  first tier debt service equalization revenue and the second tier 
125.33  debt service equalization revenue. 
125.34     (b) The first tier debt service equalization revenue of a 
125.35  district equals the greater of zero or the eligible debt service 
125.36  revenue minus the amount raised by a levy of 12 percent times 
126.1   the adjusted net tax capacity of the district minus the second 
126.2   tier debt service equalization revenue of the district. 
126.3      (c) The second tier debt service equalization revenue of a 
126.4   district equals the greater of zero or the lesser of the 
126.5   eligible debt service revenue minus the amount raised by a levy 
126.6   of 20 percent times the adjusted net tax capacity of the 
126.7   district or the district's revenue eligible for second tier debt 
126.8   equalization. 
126.9      Sec. 5.  Minnesota Statutes 2000, section 123B.53, 
126.10  subdivision 5, is amended to read: 
126.11     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] ~~To obtain debt~~ 
126.12  ~~service equalization revenue, a district must levy an amount not~~ 
126.13  ~~to exceed the district's debt service equalization revenue~~ (a) 
126.14  The equalized debt service levy of a district equals the sum of 
126.15  the first tier equalized debt service levy and the second tier 
126.16  equalized debt service levy. 
126.17     (b) A district's first tier equalized debt service levy 
126.18  equals the district's first tier debt service equalization 
126.19  revenue times the lesser of one or the ratio of: 
126.20     (1) the quotient derived by dividing the adjusted net tax 
126.21  capacity of the district for the year before the year the levy 
126.22  is certified by the adjusted pupil units in the district for the 
126.23  school year ending in the year prior to the year the levy is 
126.24  certified; to 
126.25     (2) $4,000. 
126.26     (c) A district's second tier equalized debt service levy 
126.27  equals the district's second tier debt service equalization 
126.28  revenue times the lesser of one or the ratio of: 
126.29     (1) the quotient derived by dividing the adjusted net tax 
126.30  capacity of the district for the year before the year the levy 
126.31  is certified by the adjusted pupil units in the district for the 
126.32  school year ending in the year prior to the year the levy is 
126.33  certified; to 
126.34     (2) $10,000. 
126.35     Sec. 6.  Minnesota Statutes 2000, section 123B.54, is 
126.36  amended to read: 
127.1      123B.54 [DEBT SERVICE APPROPRIATION.] 
127.2      (a) ~~$33,141,000 in fiscal year 2000, $29,400,000 in fiscal~~ 
127.3   ~~year 2001, $26,934,000 in fiscal year 2002, and $24,540,000 in~~ 
127.4   ~~fiscal year 2003 and each year thereafter is~~ $25,989,000 in 
127.5   fiscal year 2002, $33,360,000 in fiscal year 2003, $32,897,000 
127.6   in fiscal year 2004, and $28,547,000 in fiscal years 2005 and 
127.7   later are appropriated from the general fund to the commissioner 
127.8   of children, families, and learning for payment of debt service 
127.9   equalization aid under section 123B.53.  
127.10     (b) The appropriations in paragraph (a) must be reduced by 
127.11  the amount of any money specifically appropriated for the same 
127.12  purpose in any year from any state fund. 
127.13     Sec. 7.  Minnesota Statutes 2000, section 123B.57, 
127.14  subdivision 3, is amended to read: 
127.15     Subd. 3.  [HEALTH AND SAFETY REVENUE.] A district's health 
127.16  and safety revenue for a fiscal year equals: 
127.17     (1) the sum of (a) the total approved cost of the 
127.18  district's hazardous substance plan for fiscal years 1985 
127.19  through 1989, plus (b) the total approved cost of the district's 
127.20  health and safety program for fiscal year 1990 through the 
127.21  fiscal year to which the levy is attributable, excluding 
127.22  expenditures funded with bonds issued under section 123B.59 or 
127.23  123B.62, or chapter 475; certificates of indebtedness or capital 
127.24  notes under section 123B.61; levies under section 123B.58, 
127.25  123B.59, 123B.63, or 126C.40, subdivision 1 or 6; and other 
127.26  federal, state, or local revenues, minus 
127.27     (2) the sum of (a) the district's total hazardous substance 
127.28  aid and levy for fiscal years 1985 through 1989 under sections 
127.29  124.245 and 275.125, subdivision 11c, plus (b) the district's 
127.30  health and safety revenue under this subdivision, for years 
127.31  before the fiscal year to which the levy is attributable~~, plus~~ 
127.32  ~~(c) the amount of other federal, state, or local receipts for~~ 
127.33  ~~the district's hazardous substance or health and safety programs~~ 
127.34  ~~for fiscal year 1985 through the fiscal year to which the levy~~ 
127.35  ~~is attributable~~. 
127.36     Sec. 8.  Minnesota Statutes 2000, section 123B.57, 
128.1   subdivision 6, is amended to read: 
128.2      Subd. 6.  [USES OF HEALTH AND SAFETY REVENUE.] Health and 
128.3   safety revenue may be used only for approved expenditures 
128.4   necessary to correct fire safety hazards, life safety hazards, 
128.5   or for the removal or encapsulation of asbestos from school 
128.6   buildings or property owned or being acquired by the district, 
128.7   asbestos-related repairs, cleanup and disposal of 
128.8   polychlorinated biphenyls found in school buildings or 
128.9   property owned or being acquired by the district, or the 
128.10  cleanup, removal, disposal, and repairs related to storing 
128.11  heating fuel or transportation fuels such as alcohol, gasoline, 
128.12  fuel oil, and special fuel, as defined in section 296A.01, labor 
128.13  and industry regulated facility and equipment hazards, and 
128.14  health, safety, and environmental management.  Health and safety 
128.15  revenue must not be used to finance a lease purchase agreement, 
128.16  installment purchase agreement, or other deferred payments 
128.17  agreement.  Health and safety revenue must not be used for the 
128.18  construction of new facilities or the purchase of portable 
128.19  classrooms, for interest or other financing expenses, or for 
128.20  energy efficiency projects under section 123B.65.  The revenue 
128.21  may not be used for a building or property or part of a building 
128.22  or property used for post-secondary instruction or 
128.23  administration or for a purpose unrelated to elementary and 
128.24  secondary education. 
128.25     Sec. 9.  Minnesota Statutes 2000, section 123B.57, 
128.26  subdivision 8, is amended to read: 
128.27     Subd. 8.  [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 
128.28  COST.] (a) A district's cost for health, safety, and 
128.29  environmental management is limited to the lesser of:  
128.30     (1) actual cost to implement their plan; or 
128.31     (2) an amount determined by the commissioner, based on 
128.32  enrollment, building age, and size. 
128.33     (b) The department may contract with regional service 
128.34  organizations, private contractors, Minnesota safety council, or 
128.35  state agencies to provide management assistance to school 
128.36  districts for health and safety capital projects.  Management 
129.1   assistance is the development of written programs for the 
129.2   identification, recognition and control of hazards, and 
129.3   prioritization and scheduling of district health and safety 
129.4   capital projects.  The department shall not exclude private 
129.5   contractors from the opportunity to provide any health and 
129.6   safety services to school districts. 
129.7      (c) Notwithstanding paragraph (b), the department may 
129.8   approve revenue, up to the limit defined in paragraph (a) for 
129.9   districts having an approved health, safety, and environmental 
129.10  management plan that uses district staff to accomplish 
129.11  coordination and provided services. 
129.12     Sec. 10.  Minnesota Statutes 2000, section 123B.71, 
129.13  subdivision 1, is amended to read: 
129.14     Subdivision 1.  [CONSULTATION.] A school district shall 
129.15  consult with the commissioner of children, families, and 
129.16  learning before developing any plans and specifications to 
129.17  construct, remodel, or improve the building or site of an 
129.18  educational facility for which the estimated cost exceeds 
129.19  ~~$100,000~~ $250,000.  This consultation shall occur before a 
129.20  referendum for bonds, solicitation for bids, or use of capital 
129.21  expenditure facilities revenue according to section 126C.10, 
129.22  subdivision 14, clause (2).  The commissioner may require the 
129.23  district to participate in a management assistance plan before 
129.24  conducting a review and comment on the project. 
129.25     Sec. 11.  Minnesota Statutes 2000, section 123B.71, 
129.26  subdivision 4, is amended to read: 
129.27     Subd. 4.  [PLAN SUBMITTAL.] For a project for which 
129.28  consultation is required under subdivision 1, the commissioner, 
129.29  after the consultation required in subdivision 1, may require a 
129.30  school district to submit ~~the following~~ preliminary and final 
129.31  plans for approval~~:~~  
129.32     ~~(a) two sets of preliminary plans for each new building or~~ 
129.33  ~~addition, and~~ 
129.34     ~~(b) one set of final plans for each construction,~~ 
129.35  ~~remodeling, or site improvement project~~.  The commissioner shall 
129.36  approve or disapprove the plans within 90 days after submission. 
130.1      Final plans shall meet all applicable state laws, rules, 
130.2   and codes concerning public buildings, including sections 16B.59 
130.3   to 16B.73.  ~~The department may furnish to a school district~~ 
130.4   ~~plans and specifications for temporary school buildings~~ 
130.5   ~~containing two classrooms or less.~~  
130.6      Sec. 12.  Minnesota Statutes 2000, section 123B.71, 
130.7   subdivision 8, is amended to read: 
130.8      Subd. 8.  [REVIEW AND COMMENT.] A school district, a 
130.9   special education cooperative, or a cooperative unit of 
130.10  government, as defined in section 123A.24, subdivision 2, must 
130.11  not initiate an installment contract for purchase or a lease 
130.12  agreement, hold a referendum for bonds, nor solicit bids for new 
130.13  construction, expansion, or remodeling of an educational 
130.14  facility that requires an expenditure in excess 
130.15  of ~~$400,000~~ $500,000 per school site prior to review and comment 
130.16  by the commissioner.  The commissioner may exempt a facility 
130.17  maintenance project funded with general education aid and levy 
130.18  or health and safety revenue from this provision after reviewing 
130.19  a written request from a school district describing the scope of 
130.20  work.  A school board shall not separate portions of a single 
130.21  project into components to avoid the requirements of this 
130.22  subdivision. 
130.23     Sec. 13.  Minnesota Statutes 2000, section 123B.71, 
130.24  subdivision 9, is amended to read: 
130.25     Subd. 9.  [INFORMATION REQUIRED.] A school board proposing 
130.26  to construct a facility described in subdivision 8 shall submit 
130.27  to the commissioner a proposal containing information including 
130.28  at least the following: 
130.29     ~~(a) the geographic area proposed to be served, whether~~ 
130.30  ~~within or outside the boundaries of the school district;~~ 
130.31     ~~(b) the people proposed to be served, including census~~ 
130.32  ~~findings and projections for the next ten years of the number of~~ 
130.33  ~~preschool and school-aged people in the area;~~ 
130.34     ~~(c) the reasonably anticipated need for the facility or~~ 
130.35  ~~service to be provided;~~ 
130.36     ~~(d) a description of the construction in reasonable detail,~~ 
131.1   ~~including:  the expenditures contemplated; the estimated annual~~ 
131.2   ~~operating cost, including the anticipated salary and number of~~ 
131.3   ~~new staff necessitated by the proposal; and an evaluation of the~~ 
131.4   ~~energy efficiency and effectiveness of the construction,~~ 
131.5   ~~including estimated annual energy costs; and a description of~~ 
131.6   ~~the telephone capabilities of the facility and its classrooms;~~ 
131.7      ~~(e) a description of existing facilities within the area to~~ 
131.8   ~~be served and within school districts adjacent to the area to be~~ 
131.9   ~~served; the extent to which existing facilities or services are~~ 
131.10  ~~used; the extent to which alternate space is available,~~ 
131.11  ~~including other school districts, post-secondary institutions,~~ 
131.12  ~~other public or private buildings, or other noneducation~~ 
131.13  ~~community resources; and the anticipated effect that the~~ 
131.14  ~~facility will have on existing facilities and services;~~ 
131.15     ~~(f) the anticipated benefit of the facility to the area;~~ 
131.16     ~~(g) if known, the relationship of the proposed construction~~ 
131.17  ~~to any priorities that have been established for the area to be~~ 
131.18  ~~served;~~ 
131.19     ~~(h) the availability and manner of financing the facility~~ 
131.20  ~~and the estimated date to begin and complete the facility;~~ 
131.21     ~~(i) desegregation requirements that cannot be met by any~~ 
131.22  ~~other reasonable means;~~ 
131.23     ~~(j) the relationship of the proposed facility to the~~ 
131.24  ~~cooperative integrated learning needs of the area;~~ 
131.25     ~~(k) the effects of the proposed facility on the district's~~ 
131.26  ~~operating budget;~~ 
131.27     ~~(l) the level of collaboration at the facility between the~~ 
131.28  ~~district and other governmental or nonprofit entities; and~~ 
131.29     ~~(m) the extent to which the district has minimized~~ 
131.30  ~~administrative overhead among facilities.~~ 
131.31     (1) the geographic area and population to be served, 
131.32  preschool through grade 12 student enrollments for the past five 
131.33  years, and student enrollment projections for the next five 
131.34  years; 
131.35     (2) a list of existing facilities by year constructed, 
131.36  their uses, and an assessment of the extent to which alternate 
132.1   facilities are available within the school district boundaries 
132.2   and in adjacent school districts; 
132.3      (3) a list of the specific deficiencies of the facility 
132.4   that demonstrate the need for a new or renovated facility to be 
132.5   provided, and a list of the specific benefits that the new or 
132.6   renovated facility will provide to the students, teachers, and 
132.7   community users served by the facility; 
132.8      (4) the relationship of the project to any priorities 
132.9   established by the school district, educational cooperatives 
132.10  that provide support services, or other public bodies in the 
132.11  service area; 
132.12     (5) a specification of how the project will increase 
132.13  community use of the facility and whether and how the project 
132.14  will increase collaboration with other governmental or nonprofit 
132.15  entities; 
132.16     (6) a description of the project, including the 
132.17  specification of site and outdoor space acreage and square 
132.18  footage allocations for classrooms, laboratories, and support 
132.19  spaces; estimated expenditures for the major portions of the 
132.20  project; and the dates the project will begin and be completed; 
132.21     (7) a specification of the source of financing the project; 
132.22  the scheduled date for a bond issue or school board action; a 
132.23  schedule of payments, including debt service equalization aid; 
132.24  and the effect of a bond issue on local property taxes by the 
132.25  property class and valuation; 
132.26     (8) an analysis of how the proposed new or remodeled 
132.27  facility will affect school district operational or 
132.28  administrative staffing costs, and how the district's operating 
132.29  budget will cover any increased operational or administrative 
132.30  staffing costs; 
132.31     (9) a description of the consultation with local or state 
132.32  road and transportation officials on school site access and 
132.33  safety issues, and the ways that the project will address those 
132.34  issues; 
132.35     (10) a description of how indoor air quality issues have 
132.36  been considered and a certification that the architects and 
133.1   engineers designing the facility will have professional 
133.2   liability insurance; 
133.3      (11) as required under section 123B.72, for buildings 
133.4   coming into service after July 1, 2002, a certification that the 
133.5   plans and designs for the extensively renovated or new 
133.6   facility's heating, ventilation, and air conditioning systems 
133.7   will meet or exceed code standards; will provide for the 
133.8   monitoring of outdoor airflow and total airflow of ventilation 
133.9   systems; and will provide an indoor air quality filtration 
133.10  system that meets ASHRAE standard 52.1; and 
133.11     (12) a specification of any desegregation requirements that 
133.12  cannot be met by any other reasonable means. 
133.13     Sec. 14.  Minnesota Statutes 2000, section 126C.63, 
133.14  subdivision 8, is amended to read: 
133.15     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
133.16  effort debt service levy" means the lesser of: 
133.17     (1) a levy in whichever of the following amounts is 
133.18  applicable: 
133.19     (a) in any district receiving a debt service loan for a 
133.20  debt service levy payable in 2002 and thereafter, or granted a 
133.21  capital loan after January 1, 2001, a levy in total dollar 
133.22  amount computed at a rate of 30 percent of adjusted net tax 
133.23  capacity for taxes payable in 2002 and thereafter; 
133.24     (b) in any district receiving a debt service loan for a 
133.25  debt service levy payable in 1991 and thereafter, or granted a 
133.26  capital loan after January 1, 1990, a levy in a total dollar 
133.27  amount computed at a rate of 24 percent of adjusted net tax 
133.28  capacity for taxes payable in 1991 and thereafter; 
133.29     ~~(b)~~ (c) in any district granted a debt service loan after 
133.30  July 31, 1981, or granted a capital loan which is approved after 
133.31  July 31, 1981, a levy in a total dollar amount computed as a tax 
133.32  rate of 21.92 percent on the adjusted net tax capacity for taxes 
133.33  payable in 1991 and thereafter; or 
133.34     (2) a levy in any district for which a capital loan was 
133.35  approved prior to August 1, 1981, a levy in a total dollar 
133.36  amount equal to the sum of the amount of the required debt 
134.1   service levy and an amount which when levied annually will in 
134.2   the opinion of the commissioner be sufficient to retire the 
134.3   remaining interest and principal on any outstanding loans from 
134.4   the state within 30 years of the original date when the capital 
134.5   loan was granted.  
134.6      The board in any district affected by the provisions of 
134.7   clause (2) may elect instead to determine the amount of its levy 
134.8   according to the provisions of clause (1).  If a district's 
134.9   capital loan is not paid within 30 years because it elects to 
134.10  determine the amount of its levy according to the provisions of 
134.11  clause (2), the liability of the district for the amount of the 
134.12  difference between the amount it levied under clause (2) and the 
134.13  amount it would have levied under clause (1), and for interest 
134.14  on the amount of that difference, must not be satisfied and 
134.15  discharged pursuant to Minnesota Statutes 1988, or an earlier 
134.16  edition of Minnesota Statutes if applicable, section 124.43, 
134.17  subdivision 4. 
134.18     Sec. 15.  Minnesota Statutes 2000, section 126C.69, 
134.19  subdivision 2, is amended to read: 
134.20     Subd. 2.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 
134.21  1999, a district is not eligible for a capital loan unless the 
134.22  district's estimated net debt tax rate as computed by the 
134.23  commissioner after debt service equalization aid would be more 
134.24  than ~~24~~ 30 percent of adjusted net tax capacity.  The estimate 
134.25  must assume a 20-year maturity schedule for new debt. 
134.26     Sec. 16.  Minnesota Statutes 2000, section 126C.69, 
134.27  subdivision 3, is amended to read: 
134.28     Subd. 3.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
134.29  district or a joint powers district that intends to apply for a 
134.30  capital loan must submit a proposal to the commissioner for 
134.31  review and comment according to section 123B.71 by July 1 of an 
134.32  odd-numbered year.  The commissioner shall prepare a review and 
134.33  comment on the proposed facility, regardless of the amount of 
134.34  the capital expenditure required to construct the facility.  In 
134.35  addition to the information provided under section 123B.71, 
134.36  subdivision 9, the commissioner shall require that predesign 
135.1   packages comparable to those required under section 16B.335 be 
135.2   prepared by the applicant school district.  The predesign 
135.3   packages must be sufficient to define the scope, cost, and 
135.4   schedule of the project and must demonstrate that the project 
135.5   has been analyzed according to appropriate space needs standards 
135.6   and also consider the following criteria in determining whether 
135.7   to make a positive review and comment.  
135.8      (a) To grant a positive review and comment the commissioner 
135.9   shall determine that all of the following conditions are met: 
135.10     (1) the facilities are needed for pupils for whom no 
135.11  adequate facilities exist or will exist; 
135.12     (2) ~~the district will serve, on average, at least 80 pupils~~ 
135.13  ~~per grade or is eligible for elementary or secondary sparsity~~ 
135.14  ~~revenue~~ there is evidence to indicate that the facilities will 
135.15  have a useful public purpose for at least the term of the bonds; 
135.16     (3) no form of cooperation with another district would 
135.17  provide the necessary facilities; 
135.18     (4) the facilities are comparable in size and quality to 
135.19  facilities recently constructed in other districts that have 
135.20  similar enrollments; 
135.21     (5) the facilities are comparable in size and quality to 
135.22  facilities recently constructed in other districts that are 
135.23  financed without a capital loan; 
135.24     (6) the district is projected to ~~maintain or increase its~~ 
135.25  ~~average daily membership over the next five years or is eligible~~ 
135.26  ~~for elementary or secondary sparsity revenue~~ have adequate funds 
135.27  in its general operating budget to support a quality education 
135.28  for its students for at least the next five years; 
135.29     (7) the current facility poses a threat to the life, 
135.30  health, and safety of pupils, and cannot reasonably be brought 
135.31  into compliance with fire, health, or life safety codes; 
135.32     (8) the district has made a good faith effort, as evidenced 
135.33  by its maintenance expenditures, to adequately maintain the 
135.34  existing facility during the previous ten years and to comply 
135.35  with fire, health, and life safety codes and state and federal 
135.36  requirements for handicapped accessibility; 
136.1      (9) the district has made a good faith effort to encourage 
136.2   integration of social service programs within the new facility; 
136.3   ~~and~~ 
136.4      (10) evaluations by boards of adjacent districts have been 
136.5   received; and 
136.6      (11) the proposal includes a comprehensive technology plan 
136.7   that assures information access for the students, parents, and 
136.8   community. 
136.9      (b) The commissioner may grant a negative review and 
136.10  comment if: 
136.11     (1) the state demographer has examined the population of 
136.12  the communities to be served by the facility and determined that 
136.13  the communities have not grown during the previous five years; 
136.14     (2) the state demographer determines that the economic and 
136.15  population bases of the communities to be served by the facility 
136.16  are not likely to grow or to remain at a level sufficient, 
136.17  during the next ten years, to ensure use of the entire facility; 
136.18     (3) the need for facilities could be met within the 
136.19  district or adjacent districts at a comparable cost by leasing, 
136.20  repairing, remodeling, or sharing existing facilities or by 
136.21  using temporary facilities; 
136.22     (4) the district plans do not include cooperation and 
136.23  collaboration with health and human services agencies and other 
136.24  political subdivisions; or 
136.25     (5) if the application is for new construction, an existing 
136.26  facility that would meet the district's needs could be purchased 
136.27  at a comparable cost from any other source within the area. 
136.28     Sec. 17.  Minnesota Statutes 2000, section 126C.69, 
136.29  subdivision 9, is amended to read: 
136.30     Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
136.31  recommended for approval for a district exceeding an amount 
136.32  computed as follows: 
136.33     (1) the amount requested by the district under subdivision 
136.34  6; 
136.35     (2) plus the aggregate principal amount of general 
136.36  obligation bonds of the district outstanding on June 30 of the 
137.1   year following the year the application was received, not 
137.2   exceeding the limitation on net debt of the district in section 
137.3   475.53, subdivision 4, or ~~363~~ 450 percent of its adjusted net 
137.4   tax capacity as most recently determined, whichever is less; 
137.5      (3) less the maximum net debt permissible for the district 
137.6   on December 1 of the year the application is received, under the 
137.7   limitation in section 475.53, subdivision 4, or ~~363~~ 450 percent 
137.8   of its adjusted net tax capacity as most recently determined, 
137.9   whichever is less; 
137.10     (4) less any amount by which the amount voted exceeds the 
137.11  total cost of the facilities for which the loan is granted.  
137.12     (b) The loan may be approved in an amount computed as 
137.13  provided in paragraph (a), clauses (1) to (3), subject to later 
137.14  reduction according to paragraph (a), clause (4). 
137.15     Sec. 18.  Minnesota Statutes 2000, section 126C.69, 
137.16  subdivision 12, is amended to read: 
137.17     Subd. 12.  [CONTRACT.] (a) Each capital loan must be 
137.18  evidenced by a contract between the district and the state 
137.19  acting through the commissioner.  The contract must obligate the 
137.20  state to reimburse the district, from the maximum effort school 
137.21  loan fund, for eligible capital expenses for construction of the 
137.22  facility for which the loan is granted, an amount computed as 
137.23  provided in subdivision 9.  The commissioner must receive from 
137.24  the district a certified resolution of the board estimating the 
137.25  costs of construction and reciting that contracts for 
137.26  construction of the facilities for which the loan is granted 
137.27  have been awarded ~~and~~, that bonds of the district have been 
137.28  issued and sold in the amount necessary to pay all estimated 
137.29  costs of construction in excess of the amount of the loan, and 
137.30  that all work, when completed, will meet or exceed standards 
137.31  established in the state building code.  The contract must 
137.32  obligate the district to repay the loan out of the excesses of 
137.33  its maximum effort debt service levy over its required debt 
137.34  service levy, including interest at a rate equal to the weighted 
137.35  average annual rate payable on Minnesota state school loan bonds 
137.36  issued or reissued for the project ~~and disbursed to the~~ 
138.1   ~~districts on a reimbursement basis, but in no event less than~~ 
138.2   ~~3-1/2 percent per year on the principal amount from time to time~~ 
138.3   ~~unpaid~~. 
138.4      (b) The district must each year, as long as it is indebted 
138.5   to the state, levy for debt service (i) the amount of its 
138.6   maximum effort debt service levy or (ii) the amount of its 
138.7   required debt service levy, whichever is greater, except as the 
138.8   required debt service levy may be reduced by a loan under 
138.9   section 126C.68.  The district shall remit payments to the 
138.10  commissioner according to section 126C.71. 
138.11     (c) The commissioner shall supervise the collection of 
138.12  outstanding accounts due the fund and may, by notice to the 
138.13  proper county auditor, require the maximum levy to be made as 
138.14  required in this subdivision.  Interest on capital loans must be 
138.15  paid on December 15 of the year after the year the loan is 
138.16  granted and annually in later years.  By September 30, the 
138.17  commissioner shall notify the county auditor of each county 
138.18  containing taxable property situated within the district of the 
138.19  amount of the maximum effort debt service levy of the district 
138.20  for that year.  The county auditor or auditors shall extend upon 
138.21  the tax rolls an ad valorem tax upon all taxable property within 
138.22  the district in the aggregate amount so certified. 
138.23     Sec. 19.  Minnesota Statutes 2000, section 126C.69, 
138.24  subdivision 15, is amended to read: 
138.25     Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
138.26  outstanding state loan must not issue and sell any bonds on the 
138.27  public market, except to refund state loans, unless it agrees to 
138.28  make the maximum effort debt service levy in each later year at 
138.29  the higher rate provided in section 126C.63, subdivision 8, and 
138.30  unless it schedules the maturities of the bonds according to 
138.31  section 475.54, subdivision 2.  A district that refunds bonds at 
138.32  a lower interest rate may continue to make the maximum effort 
138.33  debt service levy in each later year at the current rate 
138.34  provided in section 126C.63, subdivision 8, if the district can 
138.35  demonstrate to the commissioner's satisfaction that the 
138.36  district's repayments of the state loan will not be reduced 
139.1   below the previous year's level.  The district must report each 
139.2   sale to the commissioner. 
139.3      For a capital loan issued prior to July 1, 2001, after ~~a~~ 
139.4   the district's capital loan has been outstanding for 30 years, 
139.5   the district must not issue bonds on the public market except to 
139.6   refund the loan. 
139.7      For a capital loan issued on or after July 1, 2001, after 
139.8   the district's capital loan has been outstanding for 20 years, 
139.9   the district must not issue bonds on the public market except to 
139.10  refund the loan. 
139.11     Sec. 20.  Minnesota Statutes 2000, section 136D.281, 
139.12  subdivision 4, is amended to read: 
139.13     Subd. 4.  [REFERENDUM.] (a) The intermediate school board 
139.14  ~~shall not~~ may sell and issue bonds for acquisition or betterment 
139.15  purposes ~~until~~ in an aggregate amount not to exceed $8,000,000 
139.16  if:  
139.17     (1) each member school district board has adopted a 
139.18  resolution authorizing the project; 
139.19     (2) the intermediate board has prepared and published in a 
139.20  newspaper of general circulation in the district a notice of the 
139.21  public meeting on the intermediate district's intent to sell 
139.22  bonds; 
139.23     (3) the intermediate board has adopted a resolution 
139.24  authorizing the bonds; and 
139.25     (4) the question of their issuance has been submitted to 
139.26  the voters of the intermediate school district at a special 
139.27  election held in and for the intermediate district.  
139.28     (b) The date of the election, the question to be submitted, 
139.29  and all other necessary conduct of the election shall be fixed 
139.30  by the intermediate school board.  The election shall be 
139.31  conducted and canvassed under the direction of the intermediate 
139.32  school board in accordance with chapter 205A, insofar as 
139.33  applicable. 
139.34     (c) If a majority of the total number of votes cast on the 
139.35  question within the intermediate school district is in favor of 
139.36  the question, the intermediate school board may proceed with the 
140.1   sale and issuance of the bonds. 
140.2      (d) The bonds shall be general obligations of the 
140.3   intermediate school district; however, each member school 
140.4   district must each year certify its proportionate share of the 
140.5   debt service levy on the bonds, with the allocation of its share 
140.6   of that levy determined in accordance with the resolution 
140.7   authorizing the project previously adopted by each member school 
140.8   board.  For purposes of section 123B.53, the debt service levies 
140.9   certified for this purpose by an individual member school 
140.10  district shall be considered debt service levies of that school 
140.11  district.  By July 1 and December 1 of each year, the school 
140.12  board of each member school district shall transfer to the 
140.13  intermediate school district an amount equal to 50 percent of 
140.14  the debt service levy certified by that member school district 
140.15  in the previous fiscal year to pay its proportionate share. 
140.16     Sec. 21.  Minnesota Statutes 2000, section 136D.741, 
140.17  subdivision 4, is amended to read: 
140.18     Subd. 4.  [REFERENDUM.] (a) The intermediate school board 
140.19  ~~shall not~~ may sell and issue bonds for acquisition or betterment 
140.20  purposes ~~until~~ in an aggregate amount not to exceed $8,000,000 
140.21  if:  
140.22     (1) each member school district board has adopted a 
140.23  resolution authorizing the project; 
140.24     (2) the intermediate board has prepared and published in a 
140.25  newspaper of general circulation in the district a notice of the 
140.26  public meeting on the intermediate district's intent to sell 
140.27  bonds; 
140.28     (3) the intermediate board has adopted a resolution 
140.29  authorizing the bonds; and 
140.30     (4) the question of their issuance has been submitted to 
140.31  the voters of the intermediate school district at a special 
140.32  election held in and for such intermediate district. 
140.33     (b) The date of such election, the question to be 
140.34  submitted, and all other necessary conduct of such election 
140.35  shall be fixed by the intermediate school board and said 
140.36  election shall be conducted and canvassed under the direction of 
141.1   the intermediate school board in accordance with chapter 205A, 
141.2   insofar as the same may be deemed applicable. 
141.3      (c) If a majority of the total number of votes cast on the 
141.4   question within the intermediate school district is in favor of 
141.5   the question, the intermediate school board may thereupon 
141.6   proceed with the sale and the issuance of said bonds. 
141.7      (d) The bonds shall be general obligations of the 
141.8   intermediate school district; however, each member school 
141.9   district must each year certify its proportionate share of the 
141.10  debt service levy on the bonds, with the allocation of its share 
141.11  of that levy determined in accordance with the resolution 
141.12  authorizing the project previously adopted by each member school 
141.13  board.  For purposes of section 123B.53, the debt service levies 
141.14  certified for this purpose by an individual member school 
141.15  district shall be considered debt service levies of that school 
141.16  district.  By July 1 and December 1 of each year, the school 
141.17  board of each member school district shall transfer to the 
141.18  intermediate school district an amount equal to 50 percent of 
141.19  the debt service levy certified by that member school district 
141.20  in the previous fiscal year to pay its proportionate share. 
141.21     Sec. 22.  Minnesota Statutes 2000, section 136D.88, 
141.22  subdivision 4, is amended to read: 
141.23     Subd. 4.  [REFERENDUM.] (a) The intermediate school board 
141.24  ~~shall not~~ may sell and issue bonds for acquisition or betterment 
141.25  purposes ~~until~~ in an aggregate amount not to exceed $8,000,000 
141.26  if:  
141.27     (1) each member school district board has adopted a 
141.28  resolution authorizing the project; 
141.29     (2) the intermediate board has prepared and published in a 
141.30  newspaper of general circulation in the district a notice of the 
141.31  public meeting on the intermediate district's intent to sell 
141.32  bonds; 
141.33     (3) the intermediate board has adopted a resolution 
141.34  authorizing the bonds; and 
141.35     (4) the question of their issuance has been submitted to 
141.36  the voters of the intermediate school district at a special 
142.1   election held in and for the intermediate district. 
142.2      (b) The date of the election, the question to be submitted, 
142.3   and all other necessary conduct of the election shall be fixed 
142.4   by the intermediate school board.  The election shall be 
142.5   conducted and canvassed under the direction of the intermediate 
142.6   school board in accordance with chapter 205A, insofar as 
142.7   applicable. 
142.8      (c) If a majority of the total number of votes cast on the 
142.9   question within the intermediate school district is in favor of 
142.10  the question, the intermediate school board may thereupon 
142.11  proceed with the sale and issuance of the bonds. 
142.12     (d) The bonds shall be general obligations of the 
142.13  intermediate school district; however, each member school 
142.14  district must each year certify its proportionate share of the 
142.15  debt service levy on the bonds, with the allocation of its share 
142.16  of that levy determined in accordance with the resolution 
142.17  authorizing the project previously adopted by each member school 
142.18  board.  For purposes of section 123B.53, the debt service levies 
142.19  certified for this purpose by an individual member school 
142.20  district shall be considered debt service levies of that school 
142.21  district.  By July 1 and December 1 of each year, the school 
142.22  board of each member school district shall transfer to the 
142.23  intermediate school district an amount equal to 50 percent of 
142.24  the debt service levy certified by that member school district 
142.25  in the previous fiscal year to pay its proportionate share. 
142.26     Sec. 23.  Minnesota Statutes 2000, section 475.53, 
142.27  subdivision 4, is amended to read: 
142.28     Subd. 4.  [SCHOOL DISTRICTS.] Except as otherwise provided 
142.29  by law, no school district shall be subject to a net debt in 
142.30  excess of ~~ten~~ 15 percent of the actual market value of all 
142.31  taxable property situated within its corporate limits, as 
142.32  computed in accordance with this subdivision.  The county 
142.33  auditor of each county containing taxable real or personal 
142.34  property situated within any school district shall certify to 
142.35  the district upon request the market value of all such 
142.36  property.  Whenever the commissioner of revenue, in accordance 
143.1   with section 127A.48, subdivisions 1 to 6, has determined that 
143.2   the net tax capacity of any district furnished by county 
143.3   auditors is not based upon the market value of taxable property 
143.4   in the district, the commissioner of revenue shall certify to 
143.5   the district upon request the ratio most recently ascertained to 
143.6   exist between such value and the actual market value of property 
143.7   within the district.  The actual market value of property within 
143.8   a district, on which its debt limit under this subdivision is 
143.9   based, is (a) the value certified by the county auditors, or (b) 
143.10  this value divided by the ratio certified by the commissioner of 
143.11  revenue, whichever results in a higher value. 
143.12     Sec. 24.  Laws 2000, chapter 489, article 5, section 21, is 
143.13  amended to read: 
143.14     Sec. 21.  [ONE-TIME DEFERRED MAINTENANCE AID.] 
143.15     (a) For fiscal year 2001 only, a district's one-time 
143.16  deferred maintenance aid is equal to: 
143.17     (1) $10 times the adjusted marginal cost pupil units for 
143.18  the school year; plus 
143.19     (2) $21.90 times the adjusted marginal cost pupil units for 
143.20  the school year for a district that does not qualify for 
143.21  alternative facilities bonding under Minnesota Statutes, section 
143.22  123B.59, or under Laws 1999, chapter 241, article 4, section 25. 
143.23     (b) Aid received under this section must be used for 
143.24  deferred maintenance, to make accessibility improvements, or to 
143.25  make fire, safety, or health repairs. 
143.26     (c) This aid is paid entirely in fiscal year 2001 based on 
143.27  estimated data.  By January 31, 2002, the department of 
143.28  children, families, and learning shall recalculate the aid for 
143.29  each district using actual data, and shall adjust the general 
143.30  education aid paid to school districts for fiscal year 2002 by 
143.31  the amount of the difference between the estimated aid and the 
143.32  actual aid. 
143.33     Sec. 25.  Laws 2000, chapter 489, article 7, section 15, 
143.34  subdivision 3, is amended to read: 
143.35     Subd. 3.  [~~COOPERATIVE SECONDARY FACILITY~~ FACILITIES NEEDS; 
143.36  PLANNING AND EXPENSES.] For a grant and administrative expenses 
144.1   ~~to facilitate~~ for facilities and curricular planning ~~for a~~ 
144.2   ~~cooperative secondary facility under a joint powers agreement~~ 
144.3   for school ~~district~~ districts Nos. 411, Balaton, 402, Hendricks, 
144.4   403, Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 
144.5   409, Tyler: 
144.6          $100,000     .....     ~~2001~~ 2002
144.7      This is a one-time appropriation.  This appropriation is 
144.8   available until June 30, 2003. 
144.9      Sec. 26.  [RESTORATION OF DISABLED ACCESS LEVY AUTHORITY.] 
144.10     Subdivision 1.  [PINE CITY.] Notwithstanding the time 
144.11  limits in Minnesota Statutes, section 123B.58, subdivision 3, 
144.12  independent school district No. 578, Pine City, may levy its 
144.13  remaining disabled access levy authority over five or fewer 
144.14  years.  
144.15     Subd. 2.  [SOUTHLAND.] Notwithstanding the time limits in 
144.16  Minnesota Statutes, section 123B.58, subdivision 3, independent 
144.17  school district No. 500, Southland, may levy up to $66,000 of 
144.18  its remaining disabled access levy authority over five or fewer 
144.19  years.  
144.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
144.21  following final enactment. 
144.22     Sec. 27.  [INTERMEDIATE SCHOOL DISTRICTS; BONDING AUTHORITY 
144.23  WITHOUT VOTER APPROVAL.] 
144.24     Subdivision 1.  [INTERMEDIATE SCHOOL DISTRICT NO. 
144.25  916.] Notwithstanding Minnesota Statutes, chapter 136D, the 
144.26  school board of intermediate school district No. 916 may sell 
144.27  and issue up to $1,500,000 in bonds for acquisition and 
144.28  betterment purposes upon adoption of a resolution by the board 
144.29  authorizing the bonds.  
144.30     The bonds shall be general obligations of the intermediate 
144.31  school district; however, each member school district must each 
144.32  year certify its proportionate share of the debt service levy on 
144.33  the bonds, with the allocation of its share of that levy 
144.34  determined in accordance with the resolution authorizing the 
144.35  project previously adopted by each member school board.  For 
144.36  purposes of section 123B.53, the debt service levies certified 
145.1   for this purpose by an individual member school district shall 
145.2   be considered debt service levies of that school district.  By 
145.3   July 1 and December 1 of each year, the school board of each 
145.4   member school district shall transfer to the intermediate school 
145.5   district an amount equal to 50 percent of the debt service levy 
145.6   certified by that member school district in the previous fiscal 
145.7   year to pay its proportionate share. 
145.8      Subd. 2.  [INTERMEDIATE SCHOOL DISTRICT NO. 
145.9   917.] Notwithstanding Minnesota Statutes, chapter 136D, the 
145.10  school board of intermediate school district No. 917 may sell 
145.11  and issue up to $4,000,000 in bonds for acquisition and 
145.12  betterment purposes upon adoption of a resolution by the board 
145.13  authorizing the bonds. 
145.14     The bonds shall be general obligations of the intermediate 
145.15  school district; however, each member school district must each 
145.16  year certify its proportionate share of the debt service levy on 
145.17  the bonds, with the allocation of its share of that levy 
145.18  determined in accordance with the resolution authorizing the 
145.19  project previously adopted by each member school board.  For 
145.20  purposes of section 123B.53, the debt service levies certified 
145.21  for this purpose by an individual member school district shall 
145.22  be considered debt service levies of that school district.  By 
145.23  July 1 and December 1 of each year, the school board of each 
145.24  member school district shall transfer to the intermediate school 
145.25  district an amount equal to 50 percent of the debt service levy 
145.26  certified by that member school district in the previous fiscal 
145.27  year to pay its proportionate share. 
145.28     Sec. 28.  [HIGH-PERFORMANCE ENVIRONMENTALLY SUSTAINABLE 
145.29  SCHOOL FACILITIES.] 
145.30     Subdivision 1.  [TECHNICAL ASSISTANCE.] The department of 
145.31  children, families, and learning, must provide technical 
145.32  assistance to a school district interested in providing 
145.33  environmentally sustainable facilities. 
145.34     Subd. 2.  [DEFINITION.] High-performance environmentally 
145.35  sustainable school projects involve elements for simpler school 
145.36  building design, with lower energy costs and lower life-cycle 
146.1   building costs.  The goals of high-performance environmentally 
146.2   sustainable school facilities are to: 
146.3      (1) reduce the long-term life-cycle building costs of 
146.4   schools; 
146.5      (2) reduce the energy costs of schools; 
146.6      (3) improve the indoor air quality of schools; and 
146.7      (4) allow school districts to shift the investment of 
146.8   tax-generated school revenues from utility bills and excessive 
146.9   building repair costs to funding for school facilities 
146.10  preventive maintenance projects and general education costs. 
146.11     Sec. 29.  [APPROPRIATIONS.] 
146.12     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
146.13  LEARNING.] The sums indicated in this section are appropriated 
146.14  from the general fund to the department of children, families, 
146.15  and learning for the fiscal years designated.  
146.16     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
146.17  aid according to Minnesota Statutes, section 123B.57, 
146.18  subdivision 5: 
146.19       $14,980,000    .....     2002 
146.20       $14,550,000    .....     2003 
146.21     The 2002 appropriation includes $1,480,000 for 2001 and 
146.22  $13,500,000 for 2002. 
146.23     The 2003 appropriation includes $1,500,000 for 2002 and 
146.24  $13,050,000 for 2003. 
146.25     Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
146.26  according to Minnesota Statutes, section 123B.53, subdivision 6: 
146.27       $25,989,000    .....     2002 
146.28       $33,360,000    .....     2003 
146.29     The 2002 appropriation includes $2,890,000 for 2001 and 
146.30  $23,099,000 for 2002. 
146.31     The 2003 appropriation includes $2,567,000 for 2002 and 
146.32  $30,793,000 for 2003. 
146.33     Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
146.34  interactive television (ITV) aid under Minnesota Statutes, 
146.35  section 126C.40, subdivision 4: 
146.36       $1,418,000     .....     2002 
147.1        $  129,000     .....     2003 
147.2      The 2002 appropriation includes $260,000 for 2001 and 
147.3   $1,158,000 for 2002. 
147.4      The 2003 appropriation includes $129,000 for 2002 and $0 
147.5   for 2003. 
147.6      Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
147.7   alternative facilities bonding aid, according to Minnesota 
147.8   Statutes, section 123B.59, subdivision 1: 
147.9        $19,279,000    .....     2002 
147.10       $19,287,000    .....     2003 
147.11     The 2002 appropriation includes $1,921,000 for 2001 and 
147.12  $17,358,000 for 2002. 
147.13     The 2003 appropriation includes $1,929,000 for 2002 and 
147.14  $17,358,000 for 2003. 
147.15     Subd. 6.  [TELECOMMUNICATION ACCESS COST REVENUE.] For 
147.16  telecommunication access cost revenue under Minnesota Statutes, 
147.17  section 125B.25: 
147.18       $17,968,000    .....     2002 
147.19       $ 1,852,000    .....     2003 
147.20     The 2002 appropriation includes $1,300,000 for 2001 and 
147.21  $16,668,000 for 2002. 
147.22     The 2003 appropriation includes $1,852,000 for 2002 and $0 
147.23  for 2003. 
147.24     If the appropriation amount is insufficient, the 
147.25  commissioner shall reduce the reimbursement rate in Minnesota 
147.26  Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 
147.27  for the 2001-2002 school year shall be prorated.  The 
147.28  reimbursement rate shall not exceed 100 percent. 
147.29     Subd. 7.  [FLOODS; DECLINING PUPIL AID.] For declining 
147.30  pupil aid under Laws 1999, chapter 241, article 4, section 23: 
147.31       $921,000       .....     2002 
147.32     Subd. 8.  [CROSSWINDS; PROJECT COMPLETION.] For a 
147.33  metropolitan magnet school grant to school district No. 6067, 
147.34  Tri-District, to acquire land for, design, construct, furnish, 
147.35  and equip a new school building.  
147.36       $1,700,000     .....     2002 
148.1      The appropriation in this subdivision is in addition to 
148.2   appropriations in Laws 1998, chapter 404, section 5, subdivision 
148.3   5; Laws 1999, chapter 240, article 1, section 3; and Laws 2000, 
148.4   chapter 492, article 1, section 5, subdivision 2. 
148.5      Sec. 30.  [REPEALER.] 
148.6      Minnesota Statutes 2000, sections 123B.71, subdivisions 3 
148.7   and 10; 136D.281, subdivision 8; 136D.741, subdivision 8; 
148.8   136D.88, subdivision 8; and 136D.94, are repealed. 
148.9                              ARTICLE 5 
148.10          NUTRITION; SCHOOL ACCOUNTING; AND OTHER PROGRAMS 
148.11     Section 1.  Minnesota Statutes 2000, section 123B.75, is 
148.12  amended by adding a subdivision to read: 
148.13     Subd. 10.  [RESERVED REVENUE.] (a) In addition to any other 
148.14  reserve accounts authorized to be established pursuant to other 
148.15  law, a school district may establish one or more reserve 
148.16  accounts in the general fund which will contain revenue 
148.17  appropriated to those accounts by the board.  Revenue contained 
148.18  in a reserve account may only be used for the purposes specified 
148.19  by the board and shall not be available for other purposes. 
148.20     (b) A school district must establish a reserve account for 
148.21  secondary vocational programming.  A district must reserve up to 
148.22  the amount of secondary vocational revenue that it received in 
148.23  fiscal year 2001. 
148.24     Sec. 2.  Minnesota Statutes 2000, section 123B.80, 
148.25  subdivision 1, is amended to read: 
148.26     Subdivision 1.  [COMMISSIONER'S AUTHORIZATION.] The 
148.27  commissioner may authorize a board to transfer money from any 
148.28  fund or account ~~other than the debt redemption fund~~ to another 
148.29  fund or account according to this section. 
148.30     Sec. 3.  [124D.1156] [FAST BREAK TO LEARNING BREAKFAST 
148.31  PROGRAM.] 
148.32     Subdivision 1.  [ELIGIBILITY.] The commissioner shall 
148.33  provide funding to the 41 targeted breakfast program grant 
148.34  recipients under Laws 1997, First Special Session chapter 4, 
148.35  article 6, section 19, and then to public or nonpublic 
148.36  elementary schools that participate in the federal School 
149.1   Breakfast and Lunch Programs where at least 33 percent of the 
149.2   lunches served to children during the second preceding school 
149.3   year were provided free or at a reduced price.  Schools shall 
149.4   not charge student households for fast break to learning meals.  
149.5      Subd. 2.  [PROGRAM.] The fast break to learning school 
149.6   breakfast program enables schools participating in the federal 
149.7   School Breakfast and Lunch Programs to cover the costs for 
149.8   school breakfast without charging student households. 
149.9      Subd. 3.  [PROGRAM REIMBURSEMENT.] State funds are provided 
149.10  to reimburse fast break to learning school breakfasts.  Each 
149.11  school year, the state must reimburse schools for the difference 
149.12  between the per meal federal rate of reimbursement and the per 
149.13  meal state average cost.  Meals that are reimbursed at a federal 
149.14  rate that is equal to or higher than the state average cost do 
149.15  not qualify for fast break to learning funds.  Schools must use 
149.16  the funds to provide school breakfast to school children every 
149.17  day school is in session. 
149.18     Sec. 4.  [124D.1195] [COMMODITY DONATED FOOD REVOLVING 
149.19  FUND.] 
149.20     A revolving fund is established for the purpose of 
149.21  depositing cash received for commodity donated foods that have 
149.22  been lost, damaged, recalled, or diverted for processing.  The 
149.23  state shall use the fund to issue payments for the value of the 
149.24  lost, damaged, recalled, or diverted commodity donated foods and 
149.25  related costs. 
149.26     Sec. 5.  Minnesota Statutes 2000, section 127A.41, 
149.27  subdivision 8, is amended to read: 
149.28     Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
149.29  appropriation from the general fund to the department for any 
149.30  education aid or grant authorized in this chapter and chapters 
149.31  122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 
149.32  appropriations under sections 124D.135, 124D.16, 124D.20, 
149.33  124D.21, 124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 
149.34  124D.56, exceeds the amount required, the commissioner may 
149.35  transfer the excess to any education aid or grant appropriation 
149.36  that is insufficient.  However, section 126C.20 applies to a 
150.1   deficiency in the direct appropriation for general education 
150.2   aid.  Excess appropriations must be allocated proportionately 
150.3   among aids or grants that have insufficient appropriations.  The 
150.4   commissioner of finance shall make the necessary transfers among 
150.5   appropriations according to the determinations of the 
150.6   commissioner.  If the amount of the direct appropriation for the 
150.7   aid or grant plus the amount transferred according to this 
150.8   subdivision is insufficient, the commissioner shall prorate the 
150.9   available amount among eligible districts.  The state is not 
150.10  obligated for any additional amounts. 
150.11     Sec. 6.  Minnesota Statutes 2000, section 127A.45, 
150.12  subdivision 12, is amended to read: 
150.13     Subd. 12.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 
150.14  hundred percent of the aid for the current fiscal year must be 
150.15  paid for the following aids:  reimbursement for transportation 
150.16  to post-secondary institutions, according to section 124D.09, 
150.17  subdivision 22; aid for the program for adults with 
150.18  disabilities, according to section 124D.56, subdivision 2; 
150.19  ~~school lunch aid, according to section 124D.111;~~ hearing 
150.20  impaired support services aid, according to section 124D.57; 
150.21  Indian post-secondary preparation grants according to section 
150.22  124D.85; integration grants according to Laws 1989, chapter 329, 
150.23  article 8, section 14, subdivision 3; and debt service aid 
150.24  according to section 123B.53, subdivision 6. 
150.25     Sec. 7.  Minnesota Statutes 2000, section 127A.45, is 
150.26  amended by adding a subdivision to read: 
150.27     Subd. 14a.  [STATE NUTRITION PROGRAMS.] Notwithstanding 
150.28  subdivision 3, the state shall pay 100 percent of the aid for 
150.29  the current year according to sections 124D.111, 124D.115, 
150.30  124D.1156, and 124D.118 based on submitted monthly vouchers 
150.31  showing meals and milk served. 
150.32     Sec. 8.  Minnesota Statutes 2000, section 475.61, 
150.33  subdivision 3, is amended to read: 
150.34     Subd. 3.  [IRREVOCABILITY.] (a) Tax levies so made and 
150.35  filed shall be irrevocable, except as provided in this 
150.36  subdivision. 
151.1      (b) For purposes of this subdivision, "excess debt 
151.2   redemption fund balance" means the greater of zero or the 
151.3   balance in the district's debt redemption fund as of June 30 of 
151.4   the fiscal year ending in the year before the year the levy is 
151.5   certified, minus any debt redemption fund balance attributable 
151.6   to refunding of existing bonds, minus the amount of the levy 
151.7   reduction for the current year and the prior year under 
151.8   paragraphs (e) and (f), minus five percent of the district's 
151.9   required debt service levy for the next year. 
151.10     (c) By July 15 each year, a district shall report to the 
151.11  commissioner of children, families, and learning the amount of 
151.12  the districts' debt redemption fund balance as of June 30 of the 
151.13  prior year attributable to refunding of existing bonds.  
151.14     (d) By August 15 each year, the commissioner shall 
151.15  determine the excess debt redemption fund balance for each 
151.16  school district, and shall certify the amount of the excess 
151.17  balance to the school district superintendent.  
151.18     (e) In each year when ~~there is on hand any~~ a district has 
151.19  an excess ~~amount in the~~ debt redemption fund ~~of a school~~ 
151.20  ~~district at the time the district makes its property tax levies,~~ 
151.21  ~~the amount of the excess shall be certified by the school board~~ 
151.22  ~~to the commissioner.~~ balance, the commissioner shall report the 
151.23  amount of the excess to the county auditor and the auditor shall 
151.24  reduce the tax levy otherwise to be included in the rolls next 
151.25  prepared by the amount certified.  ~~The commissioner shall~~ 
151.26  ~~prescribe the form and calculation to be used in computing the~~ 
151.27  ~~excess amount.~~  
151.28     (f) The school board may, with the approval of the 
151.29  commissioner, retain all or part of the excess ~~amount~~ balance if 
151.30  it is necessary to ensure the prompt and full payment of the 
151.31  obligations and any call premium on the obligations, or will be 
151.32  used for redemption of the obligations in accordance with their 
151.33  terms.  A school district requesting authority to retain all or 
151.34  part of the excess balance shall provide written documentation 
151.35  to the commissioner describing the rationale for its request by 
151.36  September 15.  A school district that retains an excess may 
152.1   request to transfer the excess to its operating capital account 
152.2   in the general fund under section 123B.80.  The school board 
152.3   may, with the approval of the commissioner, specify a tax levy 
152.4   in a higher amount if necessary because of anticipated tax 
152.5   delinquency or for cash flow needs to meet the required payments 
152.6   from the debt redemption fund.  
152.7      (g) If the governing body, including the governing body of 
152.8   a school district, in any year makes an irrevocable 
152.9   appropriation to the debt service fund of money actually on hand 
152.10  or if there is on hand any excess amount in the debt service 
152.11  fund, the recording officer may certify to the county auditor 
152.12  the fact and amount thereof and the auditor shall reduce by the 
152.13  amount so certified the amount otherwise to be included in the 
152.14  rolls next thereafter prepared. 
152.15     Sec. 9.  [FUND TRANSFERS.] 
152.16     Subdivision 1.  [LAPORTE.] Notwithstanding Minnesota 
152.17  Statutes, section 123B.79 or 123B.80, on June 30, 2001, 
152.18  independent school district No. 306, LaPorte, may permanently 
152.19  transfer up to $141,000 from the bus purchase account in its 
152.20  transportation fund to its capital expenditure fund without 
152.21  making a levy reduction. 
152.22     Subd. 2.  [CLEVELAND.] Notwithstanding Minnesota Statutes, 
152.23  section 123B.79 or 123B.80, on June 30, 2001, independent school 
152.24  district No. 391, Cleveland, may permanently transfer up to 
152.25  $107,000 from its reserved operating capital account in its 
152.26  general fund to the undesignated fund balance. 
152.27     Subd. 3.  [LEWISTON.] (a) Notwithstanding Minnesota 
152.28  Statutes, section 123B.79 or 123B.80, for calendar years 2002 
152.29  through 2012, on June 30 of each year, independent school 
152.30  district No. 857, Lewiston, may permanently transfer up to 
152.31  $175,000 from its capital accounts in its general fund or from 
152.32  its unrestricted general fund to the debt redemption fund. 
152.33     (b) The eligible debt service revenue and debt service 
152.34  equalization aid, if any, for independent school district No. 
152.35  857, Lewiston, must be determined prior to the annual transfer 
152.36  of general fund revenue authorized in subdivision 1. 
153.1      Subd. 4.  [RUSSELL.] Notwithstanding Minnesota Statutes, 
153.2   section 123B.79 or 123B.80, on June 30, 2001, independent school 
153.3   district No. 418, Russell, may permanently transfer up to 
153.4   $160,000 from its reserved capital accounts in its general fund 
153.5   to the undesignated fund balance.  
153.6      Subd. 5.  [MOUNTAIN LAKE.] Notwithstanding Minnesota 
153.7   Statutes, section 123B.79 or 123B.80, on June 30, 2001, 
153.8   independent school district No. 173, Mountain Lake, may 
153.9   permanently transfer up to $300,000 from its reserved capital 
153.10  accounts in its general fund to the undesignated fund balance. 
153.11     Subd. 6.  [ISLE.] (a) Notwithstanding Minnesota Statutes, 
153.12  section 123B.79 or 123B.80, on June 30, 2001, upon approval of 
153.13  the commissioner of children, families, and learning, 
153.14  independent school district No. 473, Isle, may permanently 
153.15  transfer up to $175,000 from its reserved account for disability 
153.16  access to its undesignated general fund balance.  
153.17     (b) Prior to making the fund transfer, independent school 
153.18  district No. 473, Isle, must demonstrate to the commissioner's 
153.19  satisfaction that the district's school buildings are accessible 
153.20  to students or employees with disabilities.  
153.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
153.22  following final enactment.  
153.23     Sec. 10.  [FUND TRANSFERS; DEBT REDEMPTION FUND.] 
153.24     Subdivision 1.  [ELGIN-MILLVILLE.] Notwithstanding 
153.25  Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, 
153.26  subdivision 4, on June 30, 2001, independent school district No. 
153.27  806, Elgin-Millville, may permanently transfer up to $100,000 
153.28  from its debt redemption fund to its reserved capital accounts 
153.29  in its general fund without making a levy reduction.  
153.30     Subd. 2.  [PINE CITY.] (a) Notwithstanding Minnesota 
153.31  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
153.32  on June 30, 2001, independent school district No. 578, Pine 
153.33  City, may permanently transfer up to $200,000 from its debt 
153.34  redemption fund to its capital account in its general fund 
153.35  without making a levy reduction. 
153.36     (b) Revenue transferred under this section must be used to 
154.1   purchase a facility for the area learning center. 
154.2      Subd. 3.  [ROCORI.] Notwithstanding Minnesota Statutes, 
154.3   sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 
154.4   30, 2001, independent school district No. 750, Rocori, may 
154.5   permanently transfer up to $325,000 from its debt redemption 
154.6   fund to its capital account in its general fund without making a 
154.7   levy reduction. 
154.8      Subd. 4.  [TRI-COUNTY SCHOOLS.] Notwithstanding Minnesota 
154.9   Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
154.10  on June 30, 2001, independent school district No. 2358, 
154.11  Tri-County schools, may permanently transfer up to $120,000 from 
154.12  its debt redemption fund to its operating capital account in its 
154.13  general fund without making a levy reduction. 
154.14     Subd. 5.  [WATERTOWN-MAYER.] Notwithstanding Minnesota 
154.15  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
154.16  on June 30, 2001, independent school district No. 111, 
154.17  Watertown-Mayer, may permanently transfer up to $325,000 from 
154.18  its debt redemption fund to its reserved capital accounts in its 
154.19  general fund without making a levy reduction.  
154.20     Subd. 6.  [HOLDINGFORD.] Notwithstanding Minnesota 
154.21  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
154.22  on June 30, 2001, independent school district No. 738, 
154.23  Holdingford, may permanently transfer up to $200,000 from its 
154.24  debt redemption fund to its undesignated general fund balance 
154.25  without making a levy reduction. 
154.26     Subd. 7.  [ROYALTON.] Notwithstanding Minnesota Statutes, 
154.27  sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
154.28  30, 2001, independent school district No. 485, Royalton, may 
154.29  permanently transfer up to $64,000 from its debt redemption fund 
154.30  to its reserved capital accounts in its general fund without 
154.31  making a levy reduction.  
154.32     Subd. 8.  [GLENCOE-SILVER LAKE.] Notwithstanding Minnesota 
154.33  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
154.34  on June 30, 2001, independent school district No. 2859, 
154.35  Glencoe-Silver Lake, may permanently transfer up to $27,000 from 
154.36  its debt redemption fund to its reserved operating capital 
155.1   account in its general fund without making a levy reduction. 
155.2      Subd. 9.  [PILLAGER.] Notwithstanding Minnesota Statutes, 
155.3   sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
155.4   30, 2001, independent school district No. 116, Pillager, may 
155.5   permanently transfer up to $60,000 from its debt redemption fund 
155.6   to its reserved operating capital account in its general fund 
155.7   without making a levy reduction. 
155.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
155.9   following final enactment. 
155.10     Sec. 11.  [OPERATING CAPITAL ACCOUNT DEFICIT; EXCEPTION.] 
155.11     Notwithstanding Minnesota Statutes, section 123B.78, 
155.12  subdivision 5, independent school district No. 492, Austin, may 
155.13  incur a deficit of up to $4,200,000 in its reserved capital 
155.14  operating account for the Westcott Field improvement project.  
155.15  The deficit must be eliminated by June 30, 2011.  Any donations 
155.16  or contributions received by the district for the Westcott Field 
155.17  improvement project must be deposited in the reserved capital 
155.18  operating account. 
155.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
155.20  following final enactment. 
155.21     Sec. 12.  [APPROPRIATIONS.] 
155.22     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
155.23  LEARNING.] The sums indicated in this section are appropriated 
155.24  from the general fund to the department of children, families, 
155.25  and learning for the fiscal years designated. 
155.26     Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
155.27  according to Minnesota Statutes, section 124D.111, and Code of 
155.28  Federal Regulations, title 7, section 210.17, and for school 
155.29  milk aid according to Minnesota Statutes, section 124D.118:  
155.30       $8,710,000     .....     2002 
155.31       $8,950,000     .....     2003 
155.32     (b) Not more than $800,000 of the amount appropriated each 
155.33  year may be used for school milk aid. 
155.34     Subd. 3.  [SCHOOL BREAKFAST.] For school breakfast aid 
155.35  under Minnesota Statutes, section 124D.115: 
155.36       $640,000       .....     2002 
156.1        $700,000       .....     2003 
156.2      Subd. 4.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 
156.3   food service replacement aid under Minnesota Statutes, section 
156.4   124D.119: 
156.5        $150,000       .....     2002 
156.6        $150,000       .....     2003 
156.7      Subd. 5.  [FAST BREAK TO LEARNING GRANTS.] For fast break 
156.8   to learning grants under Minnesota Statutes, section 124D.1156: 
156.9        $2,500,000     .....     2002 
156.10       $2,500,000     .....     2003 
156.11     Any balance in the first year does not cancel but is 
156.12  available in the second year. 
156.13     Sec. 13.  [REPEALER.] 
156.14     Minnesota Statutes 2000, section 124D.1155, is repealed. 
156.15                             ARTICLE 6 
156.16                         AGENCY PROVISIONS 
156.17     Section 1.  Minnesota Statutes 2000, section 120A.05, is 
156.18  amended by adding a subdivision to read: 
156.19     Subd. 14a.  [STATE BOARD OF EDUCATION.] "State board of 
156.20  education" or "state board" means the state board of education 
156.21  established under section 127A.03 that is charged with general 
156.22  supervision over educational agencies and other 
156.23  education-related matters. 
156.24     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
156.25     Sec. 2.  Minnesota Statutes 2000, section 122A.162, is 
156.26  amended to read: 
156.27     122A.162 [LICENSURE RULES.] 
156.28     The commissioner may make rules relating to licensure of 
156.29  school personnel not licensed by the board of teaching or board 
156.30  of educational administration. 
156.31     Sec. 3.  Minnesota Statutes 2000, section 122A.163, is 
156.32  amended to read: 
156.33     122A.163 [TEACHER RULE VARIANCES; COMMISSIONER.] 
156.34     Notwithstanding any law to the contrary, and only upon 
156.35  receiving the agreement of the state board of teaching or board 
156.36  of educational administration, whichever has jurisdiction over 
157.1   the licensure, the commissioner of children, families, and 
157.2   learning may grant a variance to rules governing licensure 
157.3   of ~~teachers for those teachers~~ persons licensed by the board of 
157.4   teaching or board of educational administration, whichever has 
157.5   jurisdiction.  ~~The commissioner may grant a variance, without~~ 
157.6   ~~the agreement of the board of teaching, to rules adopted by the~~ 
157.7   ~~commissioner governing licensure of teachers for those teachers~~ 
157.8   ~~the commissioner licenses.~~ 
157.9      Sec. 4.  Minnesota Statutes 2000, section 122A.18, 
157.10  subdivision 1, is amended to read: 
157.11     Subdivision 1.  [AUTHORITY TO LICENSE.] (a) The board of 
157.12  teaching must license teachers, as defined in section 122A.15, 
157.13  subdivision 1, except for supervisory personnel, as defined in 
157.14  section 122A.15, subdivision 2. 
157.15     (b) The ~~commissioner of children, families, and learning~~ 
157.16  board of educational administration must license supervisory 
157.17  personnel as defined in section 122A.15, subdivision 2, except 
157.18  for athletic coaches.  
157.19     (c) Licenses under the jurisdiction of the board of 
157.20  teaching and the commissioner of children, families, and 
157.21  learning must be issued through the licensing section of the 
157.22  department.  
157.23     Sec. 5.  Minnesota Statutes 2000, section 122A.18, 
157.24  subdivision 4, is amended to read: 
157.25     Subd. 4.  [EXPIRATION AND RENEWAL.] (a) Each license the 
157.26  department of children, families, and learning issues through 
157.27  its licensing section must bear the date of issue.  Licenses 
157.28  must expire and be renewed according to the respective rules the 
157.29  board of teaching, the board of educational administration, or 
157.30  the commissioner of children, families, and learning adopts.  
157.31  Requirements for renewing a license must include showing 
157.32  satisfactory evidence of successful teaching or administrative 
157.33  experience for at least one school year during the period 
157.34  covered by the license in grades or subjects for which the 
157.35  license is valid or completing such additional preparation as 
157.36  the board of teaching prescribes.  The ~~commissioner of children,~~ 
158.1   ~~families, and learning~~ board of educational administration shall 
158.2   establish requirements for renewing the licenses of supervisory 
158.3   personnel except athletic coaches.  The state board of teaching 
158.4   shall establish requirements for renewing the licenses of 
158.5   athletic coaches. 
158.6      (b) The board of teaching shall offer alternative 
158.7   continuing relicensure options for teachers who are accepted 
158.8   into and complete the national board for professional teaching 
158.9   standards certification process, and offer additional continuing 
158.10  relicensure options for teachers who earn national board for 
158.11  professional teaching standards certification.  Continuing 
158.12  relicensure requirements for teachers who do not maintain 
158.13  national board for professional teaching standards certification 
158.14  are those the board prescribes.  
158.15     Sec. 6.  [122A.191] [DEFINITIONS.] 
158.16     Subdivision 1.  [SCOPE.] For the purposes of sections 
158.17  122A.191 to 122A.194, the terms defined in this section have the 
158.18  meanings given them, unless another meaning is clearly indicated.
158.19     Subd. 2.  [BOARD.] "Board" means the board of educational 
158.20  administration.  
158.21     Subd. 3.  [COMMUNITY EDUCATION DIRECTOR.] "Community 
158.22  education director" means a person devoting time to 
158.23  administrative and supervisory duties pertaining to community 
158.24  education and employed as a community education director.  
158.25     Subd. 4.  [PRINCIPAL.] "Principal" means a person who 
158.26  devotes more than 50 percent of the time to administrative or 
158.27  supervisory duties and is employed as an elementary principal, 
158.28  secondary principal, or kindergarten through grade 12 
158.29  principal.  The term also includes assistant principals.  
158.30     Subd. 5.  [SCHOOL ADMINISTRATORS.] "School administrators" 
158.31  means superintendents, principals, special education directors, 
158.32  community education directors, and vocational administrators. 
158.33     Subd. 6.  [SPECIAL EDUCATION DIRECTOR.] "Special education 
158.34  director" means a person devoting time to administrative or 
158.35  supervisory duties for special instruction and services for 
158.36  children and is employed as a special education director.  
159.1   Special education director includes assistant special education 
159.2   directors. 
159.3      Subd. 7.  [SUPERINTENDENT.] "Superintendent" means a school 
159.4   administrator employed pursuant to section 123B.143, subdivision 
159.5   1, and includes assistant superintendents.  
159.6      Subd. 8.  [VOCATIONAL ADMINISTRATOR.] "Vocational 
159.7   administrator" means a person devoting time to administrative or 
159.8   supervisory duties for vocational education.  
159.9      Sec. 7.  [122A.192] [BOARD OF EDUCATIONAL ADMINISTRATION.] 
159.10     Subdivision 1.  [APPOINTMENT OF MEMBERS; ELIGIBILITY.] The 
159.11  board of educational administration consists of seven members 
159.12  appointed by the governor as follows: 
159.13     (1) an elementary school principal employed by a school 
159.14  district; 
159.15     (2) a secondary school principal employed by a school 
159.16  district; 
159.17     (3) a school superintendent employed by a school district; 
159.18     (4) a classroom teacher employed by a school district; 
159.19     (5) a community education director or a special education 
159.20  director; 
159.21     (6) one higher education representative, who must be a 
159.22  faculty member preparing school administrators; and 
159.23     (7) a public member, as defined in section 214.02. 
159.24     In making appointments, the governor shall solicit 
159.25  recommendations from groups representing persons in clauses (1) 
159.26  to (6). 
159.27     Subd. 2.  [TERMS; COMPENSATION; REMOVAL.] Membership terms, 
159.28  removal of members, and the filling of membership vacancies 
159.29  shall be as provided under section 214.09 except the terms 
159.30  expire July 31.  The terms of the initial board members must be 
159.31  determined by lot as follows:  one member must be appointed for 
159.32  a term that expires August 1, 2002; one member must be appointed 
159.33  for a term that expires August 1, 2003; two members must be 
159.34  appointed for a term that expires August 1, 2004; and three 
159.35  members must be appointed to terms that expire August 1, 2005.  
159.36  The actual and necessary expenses of all members serving on the 
160.1   board shall be as provided in section 214.09, subdivision 3.  
160.2   Members shall not receive the daily payment under section 
160.3   214.09, subdivision 3.  The employer of a member shall not 
160.4   reduce the member's compensation or benefits for the member's 
160.5   absence from employment when engaging in the business of the 
160.6   board.  A member shall not be reappointed for more than one 
160.7   additional term.  
160.8      Subd. 3.  [VACANT POSITION.] The position of a member who 
160.9   leaves Minnesota or whose employment status changes to a 
160.10  category different from that from which appointed shall be 
160.11  deemed vacant.  
160.12     Subd. 4.  [ADMINISTRATION.] The provision of staff, 
160.13  administrative services, and office space; the review and 
160.14  processing of complaints; the setting of fees; the selection and 
160.15  duties of an executive secretary to serve the board; and other 
160.16  provisions relating to board operations are as provided in 
160.17  chapter 214.  Fiscal year and reporting requirements shall be as 
160.18  provided under sections 214.07 and 214.08. 
160.19     Sec. 8.  [122A.193] [MEETINGS.] 
160.20     Subdivision 1.  [MEETINGS.] The board of educational 
160.21  administration shall meet regularly at the times and places 
160.22  determined by the board.  The board shall nominate and elect a 
160.23  chair and other officers from its membership.  Meetings shall be 
160.24  called by the chair or at the written request of any three 
160.25  members.  
160.26     Subd. 2.  [EXECUTIVE SECRETARY.] The board of educational 
160.27  administration may hire an executive secretary and other staff 
160.28  or may arrange to share a director and staff with the board of 
160.29  teaching.  If the board hires an executive director, the person 
160.30  is in the unclassified service. 
160.31     Sec. 9.  [122A.194] [DUTIES OF BOARD OF EDUCATIONAL 
160.32  ADMINISTRATION.] 
160.33     Subdivision 1.  [LICENSING.] The board shall license school 
160.34  administrators.  The board shall adopt rules to license school 
160.35  administrators in accordance with chapter 14.  Other than the 
160.36  rules transferred to the board under section 122A.18, 
161.1   subdivision 4, the board may not adopt or amend rules under this 
161.2   section until the rules are approved by law.  The rules shall 
161.3   include the licensing of persons who have successfully completed 
161.4   alternative preparation programs under section 122A.27.  The 
161.5   board may enter into agreements with the board of teaching 
161.6   regarding multiple license matters.  
161.7      Subd. 2.  [PREPARATION PROGRAMS.] The board shall review 
161.8   and approve preparation programs for school administrators and 
161.9   alternative preparation programs under section 122A.27.  
161.10     Subd. 3.  [RULES FOR CONTINUING EDUCATION REQUIREMENTS.] 
161.11  The board shall adopt rules establishing continuing education 
161.12  requirements which promote continuous improvement and 
161.13  acquisition of new and relevant skills by school administrators. 
161.14     Subd. 4.  [CODE OF ETHICS.] The board shall adopt by rule a 
161.15  code of ethics covering standards of professional practice, 
161.16  including ethical conduct, professional performance, and methods 
161.17  of enforcement, and advise school administrators in interpreting 
161.18  the code of ethics. 
161.19     Subd. 5.  [COMMISSIONER'S REPRESENTATIVE TO COMMENT ON 
161.20  PROPOSED RULE.] Prior to the adoption of any rule that must be 
161.21  submitted to public hearing, a representative of the 
161.22  commissioner of children, families, and learning shall appear 
161.23  before the board and at any hearing required under section 
161.24  14.14, subdivision 1, to comment on the cost and educational 
161.25  implications of the proposed rule.  
161.26     Subd. 6.  [REGISTER OF PERSONS LICENSED.] The executive 
161.27  director of the board shall keep a record of the proceedings of 
161.28  the board and a register of all persons licensed under this 
161.29  chapter.  The register must show the name, address, license 
161.30  number, and the renewal of the license.  The board must on July 
161.31  1 of each year, or as soon thereafter as is practicable, compile 
161.32  a list of licensed school administrators and transmit a copy of 
161.33  the list to the board.  A copy of the register must be available 
161.34  during business hours at the office of the board to any 
161.35  interested person.  
161.36     Subd. 7.  [COMMISSIONER'S ASSISTANCE; BOARD MONEY.] The 
162.1   commissioner shall provide all necessary materials and 
162.2   assistance for the transaction of the business of the board and 
162.3   all money received by the board shall be paid into the state 
162.4   treasury as provided by law.  The expenses of administering the 
162.5   board of educational administration shall be paid for from 
162.6   appropriations made to the board of educational administration. 
162.7      Sec. 10.  Minnesota Statutes 2000, section 122A.20, 
162.8   subdivision 2, is amended to read: 
162.9      Subd. 2.  [MANDATORY REPORTING.] A school board must report 
162.10  to the board of teaching, the board of educational 
162.11  administration, or the board of trustees of the Minnesota state 
162.12  colleges and universities, whichever has jurisdiction over the 
162.13  teacher's or administrator's license, when its teacher or 
162.14  administrator is discharged or resigns from employment after a 
162.15  charge is filed with the school board under section 122A.41, 
162.16  subdivisions 6, clauses (1), (2), and (3), and 7, or after 
162.17  charges are filed that are ground for discharge under section 
162.18  122A.40, subdivision 13, paragraph (a), clauses (1) to (5), or 
162.19  when a teacher or administrator is suspended or resigns while an 
162.20  investigation is pending under section 122A.40, subdivision 13, 
162.21  paragraph (a) clauses (1) to (5); 122A.41, subdivisions 6, 
162.22  clauses (1), (2), and (3), and 7; or 626.556.  The report must 
162.23  be made to the appropriate licensing board within ten days after 
162.24  the discharge, suspension, or resignation has occurred.  The 
162.25  licensing board to which the report is made must investigate the 
162.26  report for violation of subdivision 1 and the reporting board 
162.27  must cooperate in the investigation.  Notwithstanding any 
162.28  provision in chapter 13 or any law to the contrary, upon written 
162.29  request from the licensing board having jurisdiction over 
162.30  the ~~teacher's~~ license, a board or school superintendent shall 
162.31  provide the licensing board with information about the 
162.32  teacher or administrator from the district's files, any 
162.33  termination or disciplinary proceeding, any settlement or 
162.34  compromise, or any investigative file.  Upon written request 
162.35  from the appropriate licensing board, a board or school 
162.36  superintendent may, at the discretion of the board or school 
163.1   superintendent, solicit the written consent of a student and the 
163.2   student's parent to provide the licensing board with information 
163.3   that may aid the licensing board in its investigation and 
163.4   license proceedings.  The licensing board's request need not 
163.5   identify a student or parent by name.  The consent of the 
163.6   student and the student's parent must meet the requirements of 
163.7   chapter 13 and Code of Federal Regulations, title 34, section 
163.8   99.30.  The licensing board may provide a consent form to the 
163.9   district.  Any data transmitted to any board under this section 
163.10  is private data under section 13.02, subdivision 12, 
163.11  notwithstanding any other classification of the data when it was 
163.12  in the possession of any other agency. 
163.13     The licensing board to which a report is made must transmit 
163.14  to the attorney general's office any record or data it receives 
163.15  under this subdivision for the sole purpose of having the 
163.16  attorney general's office assist that board in its 
163.17  investigation.  When the attorney general's office has informed 
163.18  an employee of the appropriate licensing board in writing that 
163.19  grounds exist to suspend or revoke a teacher's license to teach, 
163.20  that licensing board must consider suspending or revoking or 
163.21  decline to suspend or revoke the teacher's or administrator's 
163.22  license within 45 days of receiving a stipulation executed by 
163.23  the teacher or administrator under investigation or a 
163.24  recommendation from an administrative law judge that 
163.25  disciplinary action be taken. 
163.26     Sec. 11.  Minnesota Statutes 2000, section 122A.21, is 
163.27  amended to read: 
163.28     122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 
163.29     Each application for the issuance, renewal, or extension of 
163.30  a license to teach ~~and each application for the issuance,~~ 
163.31  ~~renewal, or extension of a license as supervisory personnel~~ must 
163.32  be accompanied by a processing fee in an amount set by the board 
163.33  of teaching by rule.  Each application for the issuance, 
163.34  renewal, or extension of a license as school administrators and 
163.35  supervisors must be accompanied by a processing fee in the same 
163.36  amounts set by the board of teaching.  The processing fee for a 
164.1   teacher's license and for the licenses of supervisory personnel 
164.2   must be paid to the executive secretary of the appropriate board 
164.3   ~~of teaching~~.  The executive secretary of the board ~~of teaching~~ 
164.4   shall deposit the fees with the state treasurer, as provided by 
164.5   law, and report each month to the commissioner of finance the 
164.6   amount of fees collected.  The fees as set by the board are 
164.7   nonrefundable for applicants not qualifying for a license.  
164.8   However, a fee must be refunded by the state treasurer in any 
164.9   case in which the applicant already holds a valid unexpired 
164.10  license.  The board may waive or reduce fees for applicants who 
164.11  apply at the same time for more than one license. 
164.12     Sec. 12.  Minnesota Statutes 2000, section 124D.10, 
164.13  subdivision 1, is amended to read: 
164.14     Subdivision 1.  [PURPOSES.] ~~(a)~~ The purpose of this section 
164.15  is to: 
164.16     (1) improve pupil learning; 
164.17     (2) increase learning opportunities for pupils; 
164.18     (3) encourage the use of different and innovative teaching 
164.19  methods; 
164.20     (4) require the measurement of learning outcomes and create 
164.21  different and innovative forms of measuring outcomes; 
164.22     (5) establish new forms of accountability for schools; ~~or~~ 
164.23     (6) create new professional opportunities for teachers, 
164.24  including the opportunity to be responsible for the learning 
164.25  program at the school site; 
164.26     (7) test new and more accountable, results-based forms of 
164.27  oversight and accountability for schools; 
164.28     (8) focus state oversight on the role of sponsors of 
164.29  charter schools; or 
164.30     (9) encourage school boards to make full use of the 
164.31  opportunities provided by this section. 
164.32     ~~(b) This section does not provide a means to keep open a~~ 
164.33  ~~school that otherwise would be closed.  Applicants in these~~ 
164.34  ~~circumstances bear the burden of proving that conversion to a~~ 
164.35  ~~charter school fulfills a purpose specified in this subdivision,~~ 
164.36  ~~independent of the school's closing.~~ 
165.1      Sec. 13.  Minnesota Statutes 2000, section 124D.10, is 
165.2   amended by adding a subdivision to read: 
165.3      Subd. 2a.  [STATE BOARD FOR CHARTER SCHOOLS.] (a) The state 
165.4   board for charter schools shall administer laws governing 
165.5   charter schools.  The state board shall: 
165.6      (1) perform the state role in sponsorship of charter 
165.7   schools; 
165.8      (2) encourage the creation of innovative schools; 
165.9      (3) provide leadership and support for sponsors to increase 
165.10  innovation, effectiveness, accountability, and fiscal soundness 
165.11  of schools authorized under this section; and 
165.12     (4) administer state and federal start-up aid. 
165.13     The board may establish advisory groups. 
165.14     (b) The state board shall consist of seven members 
165.15  appointed by the governor with the advice and consent of the 
165.16  senate.  Persons appointed to the board shall have demonstrated 
165.17  experience or interest in charter schools.  Members must be 
165.18  appointed for staggered terms of six years, with terms beginning 
165.19  August 1 of each year.  The terms of the initial board members 
165.20  must be determined by lot as follows:  one member must be 
165.21  appointed for a term that expires August 1, 2004; two members 
165.22  must be appointed for terms that expire August 1, 2005; two 
165.23  members must be appointed for terms that expire August 1, 2006; 
165.24  and two members must be appointed to terms that expire August 1, 
165.25  2007. 
165.26     (c) The initial chair of the board must be appointed by the 
165.27  governor and successor chairs must be elected by the board 
165.28  members.  The chair shall serve a two-year term. 
165.29     (d) Except as otherwise provided in this section, the 
165.30  membership terms, compensation, removal of members, and filling 
165.31  of vacancies shall be as provided for in section 15.0575. 
165.32     (e) The state board shall appoint an executive director who 
165.33  shall serve in the unclassified service and may appoint other 
165.34  staff. 
165.35     Sec. 14.  Minnesota Statutes 2000, section 124D.10, 
165.36  subdivision 3, is amended to read: 
166.1      Subd. 3.  [SPONSOR.] A school board; intermediate school 
166.2   district school board; education district organized under 
166.3   sections 123A.15 to 123A.19; charitable organization under 
166.4   section 501(c)(3) of the Internal Revenue Code of 1986 that is a 
166.5   member of the Minnesota council of nonprofits or the Minnesota 
166.6   council on foundations, registered with the attorney general's 
166.7   office, and reports an end-of-year fund balance of at least 
166.8   $2,000,000; Minnesota private college that grants two- or 
166.9   four-year degrees and is registered with the higher education 
166.10  services office under chapter 136A; community college, state 
166.11  university, or technical college, governed by the board of 
166.12  trustees of the Minnesota state colleges and universities; ~~or~~ 
166.13  the University of Minnesota; or the state board for charter 
166.14  schools may sponsor one or more charter schools. 
166.15     Sec. 15.  Minnesota Statutes 2000, section 124D.10, 
166.16  subdivision 4, is amended to read: 
166.17     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
166.18  authorize one or more licensed teachers under section 122A.18, 
166.19  subdivision 1, to operate a charter school subject to approval 
166.20  by the ~~commissioner~~ state board for charter schools.  A board 
166.21  must vote on charter school application for sponsorship no later 
166.22  than 90 days after receiving the application.  After 90 days, 
166.23  the applicant may apply to the ~~commissioner~~ state board for 
166.24  charter schools.  If a board elects not to sponsor a charter 
166.25  school, the applicant may appeal the board's decision to 
166.26  the ~~commissioner~~ state board for charter schools.  If 
166.27  the ~~commissioner~~ state board for charter schools authorizes the 
166.28  school, the ~~commissioner~~ state board must sponsor the school 
166.29  according to this section.  The school must be organized and 
166.30  operated as a cooperative under chapter 308A or nonprofit 
166.31  corporation under chapter 317A.  
166.32     (b) Before the operators may form and operate a school, the 
166.33  sponsor must file an affidavit with the ~~commissioner~~ state board 
166.34  for charter schools stating its intent to authorize a charter 
166.35  school.  The affidavit must state the terms and conditions under 
166.36  which the sponsor would authorize a charter school.  
167.1   The ~~commissioner~~ state board for charter schools must approve or 
167.2   disapprove the sponsor's proposed authorization within 60 days 
167.3   of receipt of the affidavit.  Failure to obtain ~~commissioner~~ 
167.4   state board approval precludes a sponsor from authorizing the 
167.5   charter school that was the subject of the affidavit.  
167.6      (c) The operators authorized to organize and operate a 
167.7   school must hold an election for members of the school's board 
167.8   of directors in a timely manner after the school is operating.  
167.9   Any staff members who are employed at the school, including 
167.10  teachers providing instruction under a contract with a 
167.11  cooperative, and all parents of children enrolled in the school 
167.12  may participate in the election.  Licensed teachers employed at 
167.13  the school, including teachers providing instruction under a 
167.14  contract with a cooperative, must be a majority of the members 
167.15  of the board of directors, unless the ~~commissioner~~ state board 
167.16  for charter schools waives the requirement for the school.  A 
167.17  provisional board may operate before the election of the 
167.18  school's board of directors.  Board of director meetings must 
167.19  comply with chapter 13D. 
167.20     (d) The granting or renewal of a charter by a sponsoring 
167.21  entity must not be conditioned upon the bargaining unit status 
167.22  of the employees of the school.  
167.23     Sec. 16.  Minnesota Statutes 2000, section 124D.10, 
167.24  subdivision 6, is amended to read: 
167.25     Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
167.26  charter school must be in the form of a written contract signed 
167.27  by the sponsor and the board of directors of the charter 
167.28  school.  The contract must be completed within 90 days of ~~the~~ 
167.29  ~~commissioner's~~ approval by the state board of charter schools of 
167.30  the sponsor's proposed authorization.  The contract for a 
167.31  charter school must be in writing and contain at least the 
167.32  following: 
167.33     (1) a description of a program that carries out one or more 
167.34  of the purposes in subdivision 1; 
167.35     (2) specific outcomes pupils are to achieve under 
167.36  subdivision 10; 
168.1      (3) admission policies and procedures; 
168.2      (4) management and administration of the school; 
168.3      (5) requirements and procedures for program and financial 
168.4   audits; 
168.5      (6) how the school will comply with subdivisions 8, 13, 16, 
168.6   and 23; 
168.7      (7) assumption of liability by the charter school; 
168.8      (8) types and amounts of insurance coverage to be obtained 
168.9   by the charter school; 
168.10     (9) the term of the contract, which may be up to three 
168.11  years; and 
168.12     (10) if the board of directors or the operators of the 
168.13  charter school provide special instruction and services for 
168.14  children with a disability under sections 125A.03 to 125A.24, 
168.15  and 125A.65, a description of the financial parameters within 
168.16  which the charter school will operate to provide the special 
168.17  instruction and services to children with a disability. 
168.18     Sec. 17.  Minnesota Statutes 2000, section 124D.10, 
168.19  subdivision 8, is amended to read: 
168.20     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
168.21  school shall meet all applicable state and local health and 
168.22  safety requirements. 
168.23     (b) A school sponsored by a school board may be located in 
168.24  any district, unless the school board of the district of the 
168.25  proposed location disapproves by written resolution.  If such a 
168.26  board denies a request to locate within its boundaries a charter 
168.27  school sponsored by another school board, the sponsoring school 
168.28  board may appeal to the ~~commissioner~~ state board for charter 
168.29  schools.  If the ~~commissioner~~ state board for charter schools 
168.30  authorizes the school, the ~~commissioner~~ state board must sponsor 
168.31  the school. 
168.32     (c) A charter school must be nonsectarian in its programs, 
168.33  admission policies, employment practices, and all other 
168.34  operations.  A sponsor may not authorize a charter school or 
168.35  program that is affiliated with a nonpublic sectarian school or 
168.36  a religious institution. 
169.1      (d) Charter schools must not be used as a method of 
169.2   providing education or generating revenue for students who are 
169.3   being home-schooled. 
169.4      (e) The primary focus of a charter school must be to 
169.5   provide a comprehensive program of instruction for at least one 
169.6   grade or age group from five through 18 years of age.  
169.7   Instruction may be provided to people younger than five years 
169.8   and older than 18 years of age. 
169.9      (f) A charter school may not charge tuition. 
169.10     (g) A charter school is subject to and must comply with 
169.11  chapter 363 and section 121A.04. 
169.12     (h) A charter school is subject to and must comply with the 
169.13  Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
169.14  Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 
169.15     (i) A charter school is subject to the same financial 
169.16  audits, audit procedures, and audit requirements as a district.  
169.17  The audit must comply with the requirements of sections 123B.75 
169.18  to 123B.83, except to the extent deviations are necessary 
169.19  because of the program at the school.  The department of 
169.20  children, families, and learning, state board for charter 
169.21  schools, state auditor, or legislative auditor may conduct 
169.22  financial, program, or compliance audits.  A charter school 
169.23  determined to be in statutory operating debt under sections 
169.24  123B.81 to 123B.83 must submit a plan under section 123B.81, 
169.25  subdivision 4. 
169.26     (j) A charter school is a district for the purposes of tort 
169.27  liability under chapter 466. 
169.28     Sec. 18.  Minnesota Statutes 2000, section 124D.10, 
169.29  subdivision 10, is amended to read: 
169.30     Subd. 10.  [PUPIL PERFORMANCE.] A charter school must 
169.31  design its programs to at least meet the outcomes adopted by the 
169.32  commissioner of children, families, and learning for public 
169.33  school students.  In the absence of the commissioner's 
169.34  requirements, the school must meet the outcomes contained in the 
169.35  contract with the sponsor.  The achievement levels of the 
169.36  outcomes contained in the contract may exceed the achievement 
170.1   levels of any outcomes adopted by the commissioner for public 
170.2   school students.  
170.3      Sec. 19.  Minnesota Statutes 2000, section 124D.10, 
170.4   subdivision 14, is amended to read: 
170.5      Subd. 14.  [ANNUAL PUBLIC REPORTS.] A charter school must 
170.6   report at least annually to its sponsor and the 
170.7   ~~commissioner~~ state board for charter schools the information 
170.8   required by the sponsor or the ~~commissioner~~ state board.  The 
170.9   reports are public data under chapter 13.  
170.10     Sec. 20.  Minnesota Statutes 2000, section 124D.10, 
170.11  subdivision 15, is amended to read: 
170.12     Subd. 15.  [REVIEW AND COMMENT.] The ~~department~~ state board 
170.13  for charter schools must review and comment on the evaluation, 
170.14  by the sponsor, of the performance of a charter school before 
170.15  the charter school's contract is renewed.  A sponsor shall 
170.16  monitor and evaluate the fiscal and student performance of the 
170.17  school, and may for this purpose annually assess the school up 
170.18  to $10 per student up to a maximum of $3,500.  The information 
170.19  for the review and comment shall be reported by the sponsor to 
170.20  the ~~commissioner of children, families, and learning~~ state board 
170.21  in a timely manner.  Periodically, the ~~commissioner~~ state board 
170.22  shall report trends or suggestions based on the evaluation of 
170.23  charter school contracts to the education committees of the 
170.24  state legislature.  Annually, the state board shall report to 
170.25  the governor and education committees of the legislature on the 
170.26  status of the charter schools formed and operated under this 
170.27  section. 
170.28     Sec. 21.  Minnesota Statutes 2000, section 124D.10, 
170.29  subdivision 19, is amended to read: 
170.30     Subd. 19.  [DISSEMINATE INFORMATION.] The sponsor, the 
170.31  operators, and the ~~department of children, families, and~~ 
170.32  ~~learning~~ state board for charter schools must disseminate 
170.33  information to the public on how to form and operate a charter 
170.34  school and how to utilize the offerings of a charter school.  
170.35  Particular groups to be targeted include low-income families and 
170.36  communities, and students of color. 
171.1      Sec. 22.  Minnesota Statutes 2000, section 124D.10, 
171.2   subdivision 23, is amended to read: 
171.3      Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
171.4   SCHOOL CONTRACT.] (a) The duration of the contract with a 
171.5   sponsor must be for the term contained in the contract according 
171.6   to subdivision 6.  The sponsor may or may not renew a contract 
171.7   at the end of the term for any ground listed in paragraph (b).  
171.8   A sponsor may unilaterally terminate a contract during the term 
171.9   of the contract for any ground listed in paragraph (b).  At 
171.10  least 60 days before not renewing or terminating a contract, the 
171.11  sponsor shall notify the board of directors of the charter 
171.12  school of the proposed action in writing.  The notice shall 
171.13  state the grounds for the proposed action in reasonable detail 
171.14  and that the charter school's board of directors may request in 
171.15  writing an informal hearing before the sponsor within 14 days of 
171.16  receiving notice of nonrenewal or termination of the contract.  
171.17  Failure by the board of directors to make a written request for 
171.18  a hearing within the 14-day period shall be treated as 
171.19  acquiescence to the proposed action.  Upon receiving a timely 
171.20  written request for a hearing, the sponsor shall give reasonable 
171.21  notice to the charter school's board of directors of the hearing 
171.22  date.  The sponsor shall conduct an informal hearing before 
171.23  taking final action.  The sponsor shall take final action to 
171.24  renew or not renew a contract by the last day of classes in the 
171.25  school year.  If the sponsor is a local board, the school's 
171.26  board of directors may appeal the sponsor's decision to 
171.27  the ~~commissioner~~ state board for charter schools. 
171.28     (b) A contract may be terminated or not renewed upon any of 
171.29  the following grounds: 
171.30     (1) failure to meet the requirements for pupil performance 
171.31  contained in the contract; 
171.32     (2) failure to meet generally accepted standards of fiscal 
171.33  management; 
171.34     (3) violations of law; or 
171.35     (4) other good cause shown. 
171.36     If a contract is terminated or not renewed, the school must 
172.1   be dissolved according to the applicable provisions of chapter 
172.2   308A or 317A, except when the ~~commissioner~~ state board for 
172.3   charter schools approves the decision of a different eligible 
172.4   sponsor to authorize the charter school. 
172.5      (c) The commissioner or state board for charter schools, 
172.6   after providing reasonable notice to the board of directors of a 
172.7   charter school and the existing sponsor, and after providing an 
172.8   opportunity for a public hearing, may terminate the existing 
172.9   sponsorial relationship if the charter school has a history of: 
172.10     (1) financial mismanagement; or 
172.11     (2) repeated violations of the law. 
172.12     Sec. 23.  Minnesota Statutes 2000, section 124D.10, 
172.13  subdivision 25, is amended to read: 
172.14     Subd. 25.  [EXTENT OF SPECIFIC LEGAL AUTHORITY.] (a) The 
172.15  board of directors of a charter school may sue and be sued. 
172.16     (b) The board may not levy taxes or issue bonds.  
172.17     (c) The ~~commissioner~~ state board for charter schools, a 
172.18  sponsor, members of the board of a sponsor in their official 
172.19  capacity, and employees of a sponsor are immune from civil or 
172.20  criminal liability with respect to all activities related to a 
172.21  charter school they approve or sponsor.  The board of directors 
172.22  shall obtain at least the amount of and types of insurance 
172.23  required by the contract, according to subdivision 6.  
172.24     Sec. 24.  [127A.03] [STATE BOARD OF EDUCATION.] 
172.25     Subdivision 1.  [STATE BOARD ESTABLISHED; APPOINTMENTS; 
172.26  MEETINGS; CONFLICT OF INTEREST; ADMINISTRATIVE COSTS.] (a) The 
172.27  department of children, families, and learning is maintained 
172.28  under the direction of a state board of education composed of 
172.29  the following members:  ten representative citizens of the 
172.30  state, at least one of whom resides in each congressional 
172.31  district in the state and two of whom serve as members at-large; 
172.32  the chancellor of the Minnesota state colleges and universities 
172.33  or a person appointed by the chancellor; and the president of 
172.34  the University of Minnesota or a person appointed by the 
172.35  president. 
172.36     (b) Of the ten representative citizens of the state 
173.1   appointed to the state board of education, one member at-large 
173.2   is a student who is enrolled full-time in a Minnesota public 
173.3   high school at the time of the student's appointment and one 
173.4   member at-large previously shall have served as an elected 
173.5   member of a board of education of a school district. 
173.6      (c) The governor appoints the representative citizen 
173.7   members of the state board with the advice and consent of the 
173.8   senate.  The state board of education annually elects one of its 
173.9   members as president, but no member serves as president more 
173.10  than three consecutive years. 
173.11     (d) The state board of education holds meetings on dates 
173.12  and at places it designates. 
173.13     (e) No member shall hold any public office, or represent or 
173.14  be employed by any board of education or school district, public 
173.15  or private, and shall not voluntarily have any personal 
173.16  financial interest in any contract with a board of education or 
173.17  school district, or be engaged in any capacity where a conflict 
173.18  of interest may arise. 
173.19     (f) The administrative costs of the state board of 
173.20  education must be paid out of department of children, families, 
173.21  and learning appropriations. 
173.22     Subd. 2.  [MEMBERSHIP; COMPENSATION.] The membership terms, 
173.23  compensation, removal of members, and filling of vacancies on 
173.24  the state board are as provided in section 15.0575. 
173.25     Subd. 3.  [RESIDENCY REQUIREMENT.] If a member moves out of 
173.26  the congressional district from which the member was appointed, 
173.27  the member ceases to be a member of the state board.  The 
173.28  governor appoints a successor within six months thereafter. 
173.29     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
173.30     Sec. 25.  Minnesota Statutes 2000, section 127A.05, 
173.31  subdivision 1, is amended to read: 
173.32     Subdivision 1.  [APPOINTMENT AND DUTIES.] (a) The 
173.33  department shall be under the administrative control of the 
173.34  commissioner of children, families, and learning which office is 
173.35  established.  The ~~governor~~ commissioner is the secretary of the 
173.36  state board of education.  The state board of education shall 
174.1   appoint the commissioner under the provisions of section 15.06.  
174.2   For purposes of section 15.06, the state board of education is 
174.3   the appointing authority. 
174.4      (b) The commissioner serves at the pleasure of the board. 
174.5      (c) The commissioner shall be a person who possesses 
174.6   educational attainment and breadth of experience in the 
174.7   administration of public education and of the finances 
174.8   pertaining thereto commensurate with the spirit and intent of 
174.9   this code.  Notwithstanding any other law to the contrary, the 
174.10  commissioner may appoint two deputy commissioners who shall 
174.11  serve in the unclassified service.  The commissioner shall also 
174.12  appoint other employees as may be necessary for the organization 
174.13  of the department.  The commissioner shall perform such duties 
174.14  as the law and rules may provide and be held responsible for the 
174.15  efficient administration and discipline of the department.  The 
174.16  commissioner is charged with the execution of powers and duties 
174.17  to promote public education in the state and to safeguard the 
174.18  finances pertaining thereto. 
174.19     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
174.20     Sec. 26.  Minnesota Statutes 2000, section 214.01, 
174.21  subdivision 3, is amended to read: 
174.22     Subd. 3.  [NON-HEALTH-RELATED LICENSING BOARD.] 
174.23  "Non-health-related licensing board" means the board of teaching 
174.24  established pursuant to section 122A.07, the board of 
174.25  educational administration established pursuant to section 
174.26  122A.192, the board of barber examiners established pursuant to 
174.27  section 154.22, the board of assessors established pursuant to 
174.28  section 270.41, the board of architecture, engineering, land 
174.29  surveying, landscape architecture, geoscience, and interior 
174.30  design established pursuant to section 326.04, the board of 
174.31  accountancy established pursuant to section 326.17, the board of 
174.32  electricity established pursuant to section 326.241, the private 
174.33  detective and protective agent licensing board established 
174.34  pursuant to section 326.33, the board of boxing established 
174.35  pursuant to section 341.01, and the peace officer standards and 
174.36  training board established pursuant to section 626.841. 
175.1      Sec. 27.  Minnesota Statutes 2000, section 214.04, 
175.2   subdivision 1, is amended to read: 
175.3      Subdivision 1.  [SERVICES PROVIDED.] The commissioner of 
175.4   administration with respect to the board of electricity, the 
175.5   commissioner of children, families, and learning with respect to 
175.6   the board of teaching and the board of educational 
175.7   administration, the commissioner of public safety with respect 
175.8   to the board of private detective and protective agent services, 
175.9   and the board of peace officer standards and training, and the 
175.10  commissioner of revenue with respect to the board of assessors, 
175.11  shall provide suitable offices and other space, joint conference 
175.12  and hearing facilities, examination rooms, and the following 
175.13  administrative support services:  purchasing service, accounting 
175.14  service, advisory personnel services, consulting services 
175.15  relating to evaluation procedures and techniques, data 
175.16  processing, duplicating, mailing services, automated printing of 
175.17  license renewals, and such other similar services of a 
175.18  housekeeping nature as are generally available to other agencies 
175.19  of state government.  Investigative services shall be provided 
175.20  the boards by employees of the office of attorney general.  The 
175.21  commissioner of health with respect to the health-related 
175.22  licensing boards shall provide mailing and office supply 
175.23  services and may provide other facilities and services listed in 
175.24  this subdivision at a central location upon request of the 
175.25  health-related licensing boards.  The commissioner of commerce 
175.26  with respect to the remaining non-health-related licensing 
175.27  boards shall provide the above facilities and services at a 
175.28  central location for the remaining non-health-related licensing 
175.29  boards.  The legal and investigative services for the boards 
175.30  shall be provided by employees of the attorney general assigned 
175.31  to the departments servicing the boards.  Notwithstanding the 
175.32  foregoing, the attorney general shall not be precluded by this 
175.33  section from assigning other attorneys to service a board if 
175.34  necessary in order to insure competent and consistent legal 
175.35  representation.  Persons providing legal and investigative 
175.36  services shall to the extent practicable provide the services on 
176.1   a regular basis to the same board or boards. 
176.2      Sec. 28.  Minnesota Statutes 2000, section 214.04, 
176.3   subdivision 3, is amended to read: 
176.4      Subd. 3.  [OFFICERS; STAFF.] The executive director of each 
176.5   health-related board and the executive secretary of each 
176.6   non-health-related board shall be the chief administrative 
176.7   officer for the board but shall not be a member of the board.  
176.8   The executive director or executive secretary shall maintain the 
176.9   records of the board, account for all fees received by it, 
176.10  supervise and direct employees servicing the board, and perform 
176.11  other services as directed by the board.  The executive 
176.12  directors, executive secretaries, and other employees of the 
176.13  following boards shall be hired by the board, and the executive 
176.14  directors or executive secretaries shall be in the unclassified 
176.15  civil service, except as provided in this subdivision:  
176.16     (1) dentistry; 
176.17     (2) medical practice; 
176.18     (3) nursing; 
176.19     (4) pharmacy; 
176.20     (5) accountancy; 
176.21     (6) architecture, engineering, land surveying, landscape 
176.22  architecture, geoscience, and interior design; 
176.23     (7) barber examiners; 
176.24     (8) cosmetology; 
176.25     (9) electricity; 
176.26     (10) teaching; 
176.27     (11) peace officer standards and training; 
176.28     (12) social work; 
176.29     (13) marriage and family therapy; ~~and~~ 
176.30     (14) dietetics and nutrition practice; and 
176.31     (15) educational administration. 
176.32     The executive directors or executive secretaries serving 
176.33  the boards are hired by those boards and are in the unclassified 
176.34  civil service, except for part-time executive directors or 
176.35  executive secretaries, who are not required to be in the 
176.36  unclassified service.  Boards not requiring full-time executive 
177.1   directors or executive secretaries may employ them on a 
177.2   part-time basis.  To the extent practicable, the sharing of 
177.3   part-time executive directors or executive secretaries by boards 
177.4   being serviced by the same department is encouraged.  Persons 
177.5   providing services to those boards not listed in this 
177.6   subdivision, except executive directors or executive secretaries 
177.7   of the boards and employees of the attorney general, are 
177.8   classified civil service employees of the department servicing 
177.9   the board.  To the extent practicable, the commissioner shall 
177.10  ensure that staff services are shared by the boards being 
177.11  serviced by the department.  If necessary, a board may hire 
177.12  part-time, temporary employees to administer and grade 
177.13  examinations. 
177.14     Sec. 29.  Minnesota Statutes 2000, section 214.12, 
177.15  subdivision 1, is amended to read: 
177.16     Subdivision 1.  [REQUIREMENTS.] The health-related and 
177.17  non-health-related licensing boards may promulgate by rule 
177.18  requirements for renewal of licenses designed to promote the 
177.19  continuing professional competence of licensees.  These 
177.20  requirements of continuing professional education or training 
177.21  shall be designed solely to improve professional skills and 
177.22  shall not exceed an average attendance requirement of 50 clock 
177.23  hours per year.  All requirements promulgated by the boards 
177.24  shall be effective commencing January 1, 1977, or at a later 
177.25  date as the board may determine.  The 50 clock hour limitation 
177.26  shall not apply to the board of teaching and board of 
177.27  educational administration. 
177.28     Sec. 30.  [TRANSFER; DEPARTMENT ASSISTANCE.] 
177.29     The powers and duties of the department of children, 
177.30  families, and learning with respect to charter schools are 
177.31  transferred to the state board for charter schools under 
177.32  Minnesota Statutes, section 15.039, subdivisions 1, 2, 3, 4, 5, 
177.33  5a, 6, and 8.  The department shall provide all necessary 
177.34  materials and assistance for the transfer from the department to 
177.35  the state board. 
177.36     Sec. 31.  [TRANSFER OF POWERS AND DUTIES.] 
178.1      The powers, duties, and responsibilities of the 
178.2   commissioner of children, families, and learning with respect to 
178.3   supervisory personnel as defined in Minnesota Statutes, section 
178.4   122A.15, subdivision 2, are transferred to the board of 
178.5   educational administration under Minnesota Statutes, section 
178.6   15.039. 
178.7      Sec. 32.  [INITIAL STATE BOARD OF EDUCATION APPOINTMENTS.] 
178.8      Initial appointments to the state board of education under 
178.9   Minnesota Statutes, section 122A.162, are as follows: 
178.10     (1) four members, at least one of whom resides in each of 
178.11  four congressional districts and one member at-large serve a 
178.12  two-year term; and 
178.13     (2) four members, at least one of whom resides in each of 
178.14  the remaining four congressional districts not represented under 
178.15  clause (1) and one member at-large serve a four-year term. 
178.16  The membership terms, compensation, removal of members, and 
178.17  filling of vacancies on the state board otherwise are as 
178.18  provided in Minnesota Statutes, section 15.0575. 
178.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
178.20  following final enactment. 
178.21     Sec. 33.  [FEE INCREASE APPROVAL; MODIFICATION.] 
178.22     The fee for licenses issued by the board of educational 
178.23  administration is approved at $75.  
178.24     Sec. 34.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING; 
178.25  SCHOOL MEDIA STAFF PERSON.] 
178.26     The commissioner of children, families, and learning shall 
178.27  designate a staff person as a resource person for providing 
178.28  state-level leadership for school media programs.  The 
178.29  commissioner shall pay all costs for that staff person out of 
178.30  existing department appropriations. 
178.31     Sec. 35.  [SCHOOL MEDIA CENTER STUDY.] 
178.32     The commissioner shall use existing funds to conduct a 
178.33  study of school media centers.  The study must: 
178.34     (1) make available comprehensive data about school media 
178.35  center staffing, facilities, collections, and technology; 
178.36     (2) identify elements of school media programs that 
179.1   contribute to students' educational achievement; and 
179.2      (3) recommend best practices for school media programs. 
179.3      The commissioner, by January 15, 2003, must provide copies 
179.4   of the study to the chairs of the legislature's committees 
179.5   charged with oversight of kindergarten through grade 12 
179.6   education policy. 
179.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
179.8   following final enactment. 
179.9      Sec. 36.  [RETURN OF FUNDS TO PEW CHARITABLE TRUSTS.] 
179.10     The commissioner of children, families, and learning must 
179.11  return $113,423 of unspent funds received from the Pew 
179.12  Charitable Trusts through the Trusts' agreement with the Amherst 
179.13  H. Wilder Foundation that provided grants to the state of 
179.14  Minnesota and certain local units of government in the state for 
179.15  the period from June 9, 1994, through June 30, 1997, and the 
179.16  subsequent agreement between Pew Charitable Trusts and the state 
179.17  to extend the original grant period through June 30, 1998.  The 
179.18  commissioner of finance shall determine the time and manner in 
179.19  which the department of children, families, and learning shall 
179.20  return the $113,423 of unspent funds, plus interest as set by 
179.21  the commissioner of finance, to the Pew Charitable Trusts.  The 
179.22  department of children, families, and learning must pay this 
179.23  money from its existing budget.  Money may not be appropriated 
179.24  specifically for the purposes of this section. 
179.25     Sec. 37.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 
179.26  FAMILIES, AND LEARNING.] 
179.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
179.28  LEARNING.] Unless otherwise indicated, the sums indicated in 
179.29  this section are appropriated from the general fund to the 
179.30  department of children, families, and learning for the fiscal 
179.31  years designated. 
179.32     Subd. 2.  [DEPARTMENT.] (a) For the department of children, 
179.33  families, and learning: 
179.34       $28,464,000    .....     2002
179.35       $30,164,000    .....     2003 
179.36     Any balance in the first year does not cancel but is 
180.1   available in the second year. 
180.2      (b) $684,000 in 2002 and $690,000 in 2003 is for the board 
180.3   of teaching. 
180.4      (c) $200,000 each year is for the board of educational 
180.5   administration. 
180.6      (d) $200,000 each year is for the state board for charter 
180.7   schools. 
180.8      (e) $100,000 in fiscal year 2002 and $200,000 in fiscal 
180.9   year 2003 are for the state board of education.  
180.10     (f) $400,000 in fiscal year 2002 and $400,000 in fiscal 
180.11  year 2003 are for the office of educational accountability under 
180.12  Minnesota Statutes, section 120B.31, subdivision 3. 
180.13     (g) The expenditures of federal grants and aids as shown in 
180.14  the biennial budget document and its supplements are approved 
180.15  and appropriated and shall be spent as indicated. 
180.16     (h) In preparing the department budget for fiscal years 
180.17  2004-2005, the department shall shift all administrative funding 
180.18  from aids appropriations into the appropriation for the 
180.19  department.  
180.20     Sec. 38.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
180.21  EDUCATION.] 
180.22     The sums indicated in this section are appropriated from 
180.23  the general fund to the Perpich center for arts education for 
180.24  the fiscal years designated: 
180.25       $7,531,000     .....     2002 
180.26       $7,666,000     .....     2003 
180.27     Any balance in the first year does not cancel but is 
180.28  available in the second year. 
180.29     Sec. 39.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
180.30     The sums indicated in this section are appropriated from 
180.31  the general fund to the Minnesota state academies for the deaf 
180.32  and the blind for the fiscal years designated:  
180.33       $10,761,000    .....     2002 
180.34       $10,966,000    .....     2003 
180.35     Any balance in the first year does not cancel but is 
180.36  available in the second year. 
181.1      Sec. 40.  [REVISOR INSTRUCTION; STATE BOARD OF EDUCATIONAL 
181.2   ADMINISTRATION.] 
181.3      In the next and subsequent editions of Minnesota Statutes, 
181.4   the revisor of statutes shall substitute the term "board of 
181.5   educational administration" for the term "commissioner" or 
181.6   "commissioner of children, families, and learning" in the 
181.7   following sections of Minnesota Statutes:  122A.18, subdivisions 
181.8   3, 6, and 8; 122A.20, subdivision 1; 122A.23, subdivision 1; 
181.9   122A.27, subdivisions 1, 4, and 5; 123A.21; 123B.03, subdivision 
181.10  1; and 125A.67, subdivision 2. 
181.11     Sec. 41.  [REVISOR'S INSTRUCTION; STATE BOARD OF 
181.12  EDUCATION.] 
181.13     Except as provided in Minnesota Statutes, section 124D.10, 
181.14  establishing a state board for charter schools, and the section 
181.15  transferring powers, duties, and responsibilities for 
181.16  supervisory personnel to the board of educational 
181.17  administration, in the next and subsequent editions of Minnesota 
181.18  Statutes and Minnesota Rules, all references changed from the 
181.19  state board of education to the commissioner of children, 
181.20  families, and learning and all authority transferred from the 
181.21  state board of education to the commissioner of children, 
181.22  families, and learning under Laws 1998, chapter 398, and Laws 
181.23  1999, chapter 241, shall be changed back to the state board of 
181.24  education.  Among other things, and as an illustration only, 
181.25  these changes shall affect the authority to exercise general 
181.26  supervision over educational agencies and adopt or amend 
181.27  administrative rules.  In addition, and consistent with the 
181.28  provisions of this article, the revisor of statutes, in 
181.29  consultation with house and senate counsel, shall make other 
181.30  necessary changes affecting the powers and duties of the state 
181.31  board of education, consistent with the law as it appeared in 
181.32  Minnesota Statutes 1996 and Minnesota Statutes 1997 Supplement, 
181.33  and in Minnesota Rules 1997 and supplements.  The revisor shall 
181.34  prepare a report to the 2002 legislature showing where these 
181.35  changes were made.  The changes identified by the revisor shall 
181.36  be effective January 1, 2002. 
182.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
182.2   following final enactment. 
182.3                              ARTICLE 7 
182.4                             DEFICIENCIES 
182.5      Section 1.  [APPROPRIATIONS; DEFICIENCIES.] 
182.6      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
182.7   LEARNING.] Unless otherwise indicated, the sums indicated in 
182.8   this section are appropriated from the general fund to the 
182.9   department of children, families, and learning for the fiscal 
182.10  years designated for the funding of programs subject to 
182.11  state-aid deficiencies in fiscal year 2001.  These 
182.12  appropriations are in addition to any other appropriations for 
182.13  those purposes. 
182.14     Subd. 2.  [GENERAL EDUCATION AID.] For general education 
182.15  aid: 
182.16       $19,754,000    .....     2001 
182.17     Subd. 3.  [SECONDARY VOCATIONAL AID.] For secondary 
182.18  vocational aid: 
182.19       $    6,000     .....     2001 
182.20     Subd. 4.  [SPECIAL EDUCATION EXCESS COST AID.] For special 
182.21  education excess cost aid: 
182.22       $6,740,000     .....     2001 
182.23     Subd. 5.  [HEALTH AND SAFETY AID.] For health and safety 
182.24  aid: 
182.25       $  273,000     .....     2001 
182.26     Subd. 6.  [INTERACTIVE TELEVISION AID.] For interactive 
182.27  television aid: 
182.28       $    6,000     .....     2001 
182.29     Subd. 7.  [ALTERNATIVE FACILITIES BONDING AID.] For 
182.30  alternative facilities bonding aid: 
182.31       $   68,000     .....     2001 
182.32                             ARTICLE 8 
182.33                     LOCAL ACHIEVEMENT TESTING 
182.34     Section 1.  Minnesota Statutes 2000, section 120B.02, is 
182.35  amended to read: 
182.36     120B.02 [~~RESULTS-ORIENTED~~ GRADUATION RULE~~; BASIC SKILLS~~ 
183.1   ~~REQUIREMENTS; PROFILE OF LEARNING~~.] 
183.2      (a) The legislature is committed to establishing a 
183.3   rigorous~~, results-oriented~~ graduation rule for Minnesota's 
183.4   public school students.  To that end, the commissioner shall use 
183.5   its rulemaking authority under section 127A.05, subdivision 4, 
183.6   to adopt a ~~statewide, results-oriented~~ graduation rule ~~to be~~ 
183.7   ~~implemented starting with students beginning ninth grade in the~~ 
183.8   ~~1996-1997 school year~~.  The commissioner shall not prescribe in 
183.9   rule or otherwise the delivery system or form of instruction 
183.10  that independent school ~~sites~~ districts must use to meet the 
183.11  requirements contained in this rule.  ~~For purposes of this~~ 
183.12  ~~chapter, a school site is a separate facility, or a separate~~ 
183.13  ~~program within a facility that a local school board recognizes~~ 
183.14  ~~as a school site.~~  
183.15     (b) To successfully accomplish paragraph (a), ~~the~~ 
183.16  ~~commissioner shall set in rule high academic standards for all~~ 
183.17  ~~students.  The standards must contain the foundational~~ basic 
183.18  skills requirements in the three core curricular areas of 
183.19  reading, writing, and mathematics ~~while meeting requirements~~ are 
183.20  established by Minnesota Rules, parts 3501.0010 to 3501.0180 and 
183.21  3501.0200 to 3501.0290, and must be completed for public high 
183.22  school graduation.  The ~~standards~~ graduation rule must also 
183.23  provide an opportunity for students to excel by meeting higher 
183.24  academic standards through ~~a profile of learning that uses~~ 
183.25  ~~curricular requirements to allow students to expand their~~ local 
183.26  academic achievement testing under section 120B.35 that measures 
183.27  knowledge ~~and skills~~ beyond the foundational skills.  All 
183.28  commissioner actions regarding the graduation rule must be 
183.29  premised on the following:  
183.30     (1) the rule is intended to raise academic expectations for 
183.31  students, teachers, and schools; 
183.32     (2) any state action regarding the rule must evidence 
183.33  consideration of school district autonomy; and 
183.34     (3) the department of children, families, and learning, 
183.35  with the assistance of school districts, must make available 
183.36  information about all state initiatives related to the rule to 
184.1   students and parents, teachers, and the general public in a 
184.2   timely format that is appropriate, comprehensive, and readily 
184.3   understandable. 
184.4      (c) ~~For purposes of adopting the rule, the commissioner, in~~ 
184.5   ~~consultation with the department, recognized psychometric~~ 
184.6   ~~experts in assessment, and other interested and knowledgeable~~ 
184.7   ~~educators, using the most current version of professional~~ 
184.8   ~~standards for educational testing, shall evaluate the~~ 
184.9   ~~alternative approaches to assessment.~~  
184.10     ~~(d) The content of the graduation rule must differentiate~~ 
184.11  ~~between minimum competencies reflected in the basic requirements~~ 
184.12  ~~assessment and rigorous profile of learning standards.  When~~ 
184.13  ~~fully implemented, the requirements for high school graduation~~ 
184.14  ~~in Minnesota must include both basic requirements and the~~ 
184.15  ~~required profile of learning.  The profile of learning must~~ 
184.16  ~~measure student performance using performance-based assessments~~ 
184.17  ~~compiled over time that integrate higher academic standards,~~ 
184.18  ~~higher order thinking skills, and application of knowledge from~~ 
184.19  ~~a variety of content areas.  The profile of learning shall~~ 
184.20  ~~include a broad range of academic experience and accomplishment~~ 
184.21  ~~necessary to achieve the goal of preparing students to function~~ 
184.22  ~~effectively as purposeful thinkers, effective communicators,~~ 
184.23  ~~self-directed learners, productive group participants, and~~ 
184.24  ~~responsible citizens~~.  
184.25     ~~(e) The profile of learning contains the following learning~~ 
184.26  ~~areas:~~ 
184.27     ~~(1) read, listen, and view;~~ 
184.28     ~~(2) write and speak;~~ 
184.29     ~~(3) arts and literature;~~ 
184.30     ~~(4) mathematical concepts and applications;~~ 
184.31     ~~(5) inquiry and research;~~ 
184.32     ~~(6) scientific concepts and applications;~~ 
184.33     ~~(7) social studies;~~ 
184.34     ~~(8) physical education and lifetime fitness;~~ 
184.35     ~~(9) economics and business;~~ 
184.36     ~~(10) world languages; and~~ 
185.1      ~~(11) technical and vocational education.~~ 
185.2      ~~(f) The commissioner shall periodically review and report~~ 
185.3   ~~on the assessment process and student achievement with the~~ 
185.4   ~~expectation of raising the standards and expanding high school~~ 
185.5   ~~graduation requirements.~~ 
185.6      ~~(g) Beginning August 31, 2000, the commissioner must~~ 
185.7   ~~publish, including in electronic format for the Internet, a~~ 
185.8   ~~report, by school site, area learning center, and charter~~ 
185.9   ~~school, of:~~ 
185.10     ~~(1) the required preparatory content standards;~~ 
185.11     ~~(2) the high school content standards required for~~ 
185.12  ~~graduation; and~~ 
185.13     ~~(3) the number of student waivers the district, area~~ 
185.14  ~~learning center, or charter school approves under section~~ 
185.15  ~~120B.031, subdivisions 4, 5, and 6, based on information each~~ 
185.16  ~~district, area learning center, and charter school provides.~~ 
185.17     ~~(h) School districts must integrate required and elective~~ 
185.18  ~~content standards in the scope and sequence of the district~~ 
185.19  ~~curriculum.~~ 
185.20     ~~(i)~~ School districts are not required to adopt, and 
185.21  students are not required to participate in, specific provisions 
185.22  of ~~the~~ Goals 2000 ~~and the~~, federal School-to-Work programs, the 
185.23  National Assessment of Educational Progress, and Title I of the 
185.24  Elementary and Secondary Education Act. 
185.25     Sec. 2.  Minnesota Statutes 2000, section 120B.30, 
185.26  subdivision 1, is amended to read: 
185.27     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
185.28  with advice from experts with appropriate technical 
185.29  qualifications and experience and stakeholders, ~~shall include in~~ 
185.30  ~~the comprehensive assessment system, for each grade level to be~~ 
185.31  ~~tested, a test, which shall be aligned with the state's~~ 
185.32  ~~graduation standards and administered annually to all students~~ 
185.33  ~~in the third, fifth, and eighth grades.  The commissioner~~ shall 
185.34  establish one or more months during which schools shall 
185.35  administer the basic skills tests to students each school year.  
185.36  Only Minnesota basic skills tests in reading, mathematics, and 
186.1   writing shall fulfill students' basic skills testing 
186.2   requirements for a passing state notation.  The passing scores 
186.3   of the state tests in reading and mathematics are the equivalent 
186.4   of:  
186.5      (1) 70 percent correct for students entering grade 9 in 
186.6   1996; and 
186.7      (2) 75 percent correct for students entering grade 9 in 
186.8   1997 and thereafter~~, as based on the first uniform test~~ 
186.9   ~~administration of February 1998~~.  
186.10     Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, 
186.11  at the written request of a parent or guardian, and with the 
186.12  recommendation of the student's teacher, a district may offer 
186.13  the test of basic requirements in reading, math, or writing to 
186.14  an individual student beginning in grade 5.  The student must 
186.15  take the same test on the same date as administered to students 
186.16  in eighth grade or higher.  ~~Third and fifth grade test results~~ 
186.17  ~~shall be available to districts for diagnostic purposes~~ 
186.18  ~~affecting student learning and district instruction and~~ 
186.19  ~~curriculum, and for establishing educational accountability.~~  
186.20  ~~The commissioner must disseminate to the public the third and~~ 
186.21  ~~fifth grade test results upon receiving those results.~~ 
186.22     (b) ~~In addition, at the secondary level, districts shall~~ 
186.23  ~~assess student performance in all required learning areas and~~ 
186.24  ~~selected required standards within each area of the profile of~~ 
186.25  ~~learning.  The testing instruments and testing process shall be~~ 
186.26  ~~determined by the commissioner.  The results shall be aggregated~~ 
186.27  ~~at the site and district level.  The testing shall be~~ 
186.28  ~~administered beginning in the 1999-2000 school year and~~ 
186.29  ~~thereafter.~~ A statewide test under this section shall: 
186.30     (1) use a multiple choice format with only one factually 
186.31  correct answer, except for writing, which may include an essay 
186.32  requirement; 
186.33     (2) test academic, objective knowledge, and not personal 
186.34  characteristics, values, attitudes, or conscientiously held 
186.35  beliefs of students; and 
186.36     (3) be made available in its entirety, including questions, 
187.1   answer key, and aggregate results, to the public, and the 
187.2   aggregated results shall be reported to the department and the 
187.3   office of educational accountability within 60 days of its 
187.4   administration.  Upon request, a parent of a student who 
187.5   participated in the testing program shall receive a copy of each 
187.6   test in its entirety and the results for the child. 
187.7      (c) The commissioner shall report aggregate school site and 
187.8   school district student academic basic skills achievement levels 
187.9   of the current and two immediately preceding school years.  The 
187.10  report shall include students' unweighted mean test scores in 
187.11  each tested subject, the unweighted mean test scores of only 
187.12  those students enrolled in the school by January 1 of the 
187.13  previous school year, and the unweighted test scores of all 
187.14  students except those students receiving limited English 
187.15  proficiency instruction.  The report also shall record 
187.16  separately, in proximity to the reported performance levels, the 
187.17  percentages of students who are eligible to receive a free or 
187.18  reduced price school meal, demonstrate limited English 
187.19  proficiency, or are eligible to receive special education 
187.20  services. 
187.21     (d) In addition to the testing and reporting requirements 
187.22  under paragraphs (a), (b), and (c), the commissioner shall 
187.23  include the following components in ~~the~~ statewide public 
187.24  reporting ~~system~~: 
187.25     (1) ~~uniform statewide testing of all third, fifth, eighth,~~ 
187.26  ~~and post-eighth grade students that provides exemptions, only~~ 
187.27  ~~with parent or guardian approval, for those very few students~~ 
187.28  ~~for whom the student's individual education plan team under~~ 
187.29  ~~sections 125A.05 and 125A.06, determines that the student is~~ 
187.30  ~~incapable of taking a statewide test, or for a limited English~~ 
187.31  ~~proficiency student under section 124D.59, subdivision 2, if the~~ 
187.32  ~~student has been in the United States for fewer than 12 months~~ 
187.33  ~~and for whom special language barriers exist, such as the~~ 
187.34  ~~student's native language does not have a written form or the~~ 
187.35  ~~district does not have access to appropriate interpreter~~ 
187.36  ~~services for the student's native language;~~ 
188.1      ~~(2)~~ educational indicators that can be aggregated and 
188.2   compared across school districts and across time on a statewide 
188.3   basis, including average daily attendance, high school 
188.4   graduation rates, and high school drop-out rates by age and 
188.5   grade level; and 
188.6      ~~(3)~~ (2) students' scores on the American College Test~~; and~~ 
188.7      ~~(4) participation in the National Assessment of Educational~~ 
188.8   ~~Progress so that the state can benchmark its performance against~~ 
188.9   ~~the nation and other states, and, where possible, against other~~ 
188.10  ~~countries, and contribute to the national effort to monitor~~ 
188.11  ~~achievement.~~ 
188.12     ~~(e) Districts must report exemptions under paragraph (d),~~ 
188.13  ~~clause (1), to the commissioner consistent with a format~~ 
188.14  ~~provided by the commissioner~~, the Preliminary Scholastic 
188.15  Aptitude Test, and the Scholastic Aptitude Test. 
188.16     Sec. 3.  Minnesota Statutes 2000, section 120B.31, 
188.17  subdivision 3, is amended to read: 
188.18     Subd. 3.  [EDUCATIONAL ACCOUNTABILITY.] ~~(a)~~ The independent 
188.19  office of educational accountability, as authorized by Laws 
188.20  1997, First Special Session chapter 4, article 5, section 28, 
188.21  subdivision 2, is established.  The office shall advise the 
188.22  education committees of the legislature and the commissioner of 
188.23  children, families, and learning, at least on a biennial basis, 
188.24  on the degree to which ~~the statewide~~ educational 
188.25  ~~accountability~~ testing and reporting ~~system includes a~~ 
188.26  ~~comprehensive assessment framework that measures school~~ 
188.27  ~~accountability for students achieving the goals described in the~~ 
188.28  ~~state's results-oriented graduation rule.  The office shall~~ 
188.29  ~~consider whether the statewide system of educational~~ 
188.30  ~~accountability utilizes multiple indicators to provide valid and~~ 
188.31  ~~reliable comparative and contextual data on students, schools,~~ 
188.32  ~~districts, and the state, and if not, recommend ways to improve~~ 
188.33  ~~the accountability reporting system~~ reflect student academic 
188.34  achievement. 
188.35     ~~(b)~~ When the office reviews ~~the statewide~~ educational 
188.36  accountability and reporting ~~system~~, it shall also consider~~:~~ 
189.1      ~~(1) the objectivity and neutrality of the state's~~ 
189.2   ~~educational accountability system; and~~ 
189.3      ~~(2)~~ the impact of a testing program on school curriculum 
189.4   and student learning. 
189.5      Sec. 4.  Minnesota Statutes 2000, section 120B.35, is 
189.6   amended to read: 
189.7      120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.] 
189.8      Subdivision 1.  [LOCAL TESTING.] (a) Each school year, a 
189.9   school district must administer a uniform testing program to 
189.10  determine if the student academic achievement levels at each 
189.11  school site in the third, fifth, and tenth grades meet ~~state and~~ 
189.12  local expectations.  A school district should annually 
189.13  administer a national norm referenced test to students in grades 
189.14  4, 6, 7, 8 and 9 to the extent district funds are available for 
189.15  this purpose.  If student achievement levels at a school site do 
189.16  not meet ~~state and~~ local expectations for two out of three 
189.17  consecutive school years, ~~beginning with the 2000-2001 school~~ 
189.18  ~~year,~~ the district must work with the school site to adopt a 
189.19  plan to raise student achievement levels to meet ~~state and~~ local 
189.20  expectations.  ~~The legislature will determine state expectations~~ 
189.21  ~~after receiving a recommendation from the commissioner of~~ 
189.22  ~~children, families, and learning.~~  
189.23     (b) The testing program shall measure knowledge in the 
189.24  following subject areas: 
189.25     (1) for third grade, at least mathematics and language 
189.26  arts, which shall include reading, writing, grammar, vocabulary, 
189.27  and spelling; and 
189.28     (2) for fifth and tenth grades: 
189.29     (i) mathematics; 
189.30     (ii) language arts, which shall include reading, writing, 
189.31  grammar, vocabulary, and spelling; 
189.32     (iii) science; 
189.33     (iv) history, which shall include an emphasis on the United 
189.34  States and Minnesota; and 
189.35     (v) geography. 
189.36     (c) The testing program shall be selected by the school 
190.1   district and may include nationally normed tests, the placement 
190.2   tests or their equivalents used by Minnesota post-secondary 
190.3   institutions, locally developed tests, or other valid tests.  
190.4   Each test shall be: 
190.5      (1) in multiple choice question format with only one 
190.6   factually correct answer for each question, except for language 
190.7   arts, which may include an essay requirement; 
190.8      (2) academic, objective, and not pertain to the personal 
190.9   characteristics, values, attitudes, or conscientiously held 
190.10  beliefs of students; 
190.11     (3) secure, confidential, timed, and not permit the use of 
190.12  any outside aid or reference, except that calculators may be 
190.13  permitted at the secondary level and special accommodations may 
190.14  be permitted under state or federal law for students with an 
190.15  individualized education plan; 
190.16     (4) comprehensive enough to include questions that would 
190.17  identify students of academic excellence; and 
190.18     (5) made available in its entirety, including questions, 
190.19  answer key, and aggregate results, to the public, and be 
190.20  reported to the department and the office of educational 
190.21  accountability, within 60 days of its administration.  Upon 
190.22  request, a parent of a student who participated in the testing 
190.23  program shall receive a copy of each test in its entirety and 
190.24  the results for the child. 
190.25     Subd. 2.  [ASSISTANCE.] The department, at a district's 
190.26  request, must assist the district and the school site in 
190.27  developing a plan to improve student achievement.  ~~The plan~~ When 
190.28  developing the plan, a district must ~~include~~ consider parental 
190.29  ~~involvement components~~ recommendations. 
190.30     Sec. 5.  [INSTRUCTION TO THE REVISOR.] 
190.31     The revisor of statutes shall change the headnote names of 
190.32  Minnesota Statutes, section 120B.30 from "STATEWIDE TESTING AND 
190.33  REPORTING SYSTEM" to "STATEWIDE BASIC SKILLS TESTING AND 
190.34  REPORTING" and Minnesota Statutes, section 120B.31 from "SYSTEM 
190.35  ACCOUNTABILITY AND STATISTICAL ADJUSTMENTS" to "OFFICE OF 
190.36  EDUCATIONAL ACCOUNTABILITY." 
191.1      Sec. 6.  [REPEALER.] 
191.2      (a) Minnesota Statutes 2000, sections 120B.031; and 
191.3   120B.31, subdivisions 1, 2, and 4, are repealed. 
191.4      (b) Minnesota Rules, parts 3501.0300; 3501.0310; 3501.0320; 
191.5   3501.0330; 3501.0340; 3501.0350; 3501.0370; 3501.0380; 
191.6   3501.0390; 3501.0400; 3501.0410; 3501.0420; 3501.0430; 
191.7   3501.0440; 3501.0441; 3501.0442; 3501.0443; 3501.0444; 
191.8   3501.0445; 3501.0446; 3501.0447; 3501.0448; 3501.0449; 
191.9   3501.0450; 3501.0460; 3501.0461; 3501.0462; 3501.0463; 
191.10  3501.0464; 3501.0465; 3501.0466; 3501.0467; 3501.0468; and 
191.11  3501.0469, are repealed. 
191.12                             ARTICLE 9 
191.13                        TECHNICAL AMENDMENTS
191.14     Section 1.  Minnesota Statutes 2000, section 122A.26, 
191.15  subdivision 3, is amended to read: 
191.16     Subd. 3.  [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 
191.17  subdivision 2, a person who possesses a bachelor's or master's 
191.18  degree in English as a second language, applied linguistics, or 
191.19  bilingual education, or who possesses a related degree as 
191.20  approved by the commissioner, shall be permitted to teach 
191.21  English as a second language in an adult basic education program 
191.22  that receives funding under section ~~124D.53~~ 124D.531.  
191.23     Sec. 2.  Minnesota Statutes 2000, section 124D.11, 
191.24  subdivision 5, is amended to read: 
191.25     Subd. 5.  [SPECIAL EDUCATION AID.] Except as provided in 
191.26  subdivision 2, special education aid must be paid to a charter 
191.27  school according to section 125A.76, as though it were a school 
191.28  district.  The charter school may charge tuition to the district 
191.29  of residence as provided in section 125A.11.  ~~The charter school~~ 
191.30  ~~shall allocate its special education levy equalization revenue~~ 
191.31  ~~to the resident districts of the pupils attending the charter~~ 
191.32  ~~school.  The districts of residence shall levy as though they~~ 
191.33  ~~were participating in a cooperative, as provided in section~~ 
191.34  ~~125A.77, subdivision 3.~~ 
191.35     Sec. 3.  Minnesota Statutes 2000, section 124D.454, 
191.36  subdivision 11, is amended to read: 
192.1      Subd. 11.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
192.2   INTERMEDIATE DISTRICTS.] For purposes of this section ~~and~~ 
192.3   ~~section 125A.77~~, a cooperative center or an intermediate 
192.4   district must allocate its approved expenditures for transition 
192.5   programs for children with a disability among participating 
192.6   school districts.  Aid for transition programs for children with 
192.7   a disability for services provided by a cooperative or 
192.8   intermediate district shall be paid to the participating 
192.9   districts.  
192.10     Sec. 4.  Minnesota Statutes 2000, section 125A.17, is 
192.11  amended to read: 
192.12     125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY 
192.13  PLACED IN A FOSTER FACILITY.] 
192.14     The legal residence of a child with a disability placed in 
192.15  a foster facility for care and treatment is the district in 
192.16  which the child resides when: 
192.17     (1) parental rights have been terminated by court order; 
192.18     (2) the parent or guardian is not living within the state; 
192.19     (3) no other district residence can be established; or 
192.20     (4) the parent or guardian having legal custody of the 
192.21  child is an inmate of a Minnesota correctional facility or is a 
192.22  resident of a halfway house under the supervision of the 
192.23  commissioner of corrections~~;~~ 
192.24  ~~is the district in which the child resides~~.  The school board of 
192.25  the district of residence must provide the same educational 
192.26  program for the child as it provides for all resident children 
192.27  with a disability in the district.  
192.28     Sec. 5.  Minnesota Statutes 2000, section 127A.41, 
192.29  subdivision 8, is amended to read: 
192.30     Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
192.31  appropriation from the general fund to the department for any 
192.32  education aid or grant authorized in this chapter and chapters 
192.33  122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 
192.34  under sections 124D.135, 124D.16, 124D.20, 124D.21, 124D.22, 
192.35  124D.52, ~~124D.53~~ 124D.531, 124D.54, 124D.55, and 124D.56, 
192.36  exceeds the amount required, the commissioner may transfer the 
193.1   excess to any education aid or grant appropriation that is 
193.2   insufficient.  However, section 126C.20 applies to a deficiency 
193.3   in the direct appropriation for general education aid.  Excess 
193.4   appropriations must be allocated proportionately among aids or 
193.5   grants that have insufficient appropriations.  The commissioner 
193.6   of finance shall make the necessary transfers among 
193.7   appropriations according to the determinations of the 
193.8   commissioner.  If the amount of the direct appropriation for the 
193.9   aid or grant plus the amount transferred according to this 
193.10  subdivision is insufficient, the commissioner shall prorate the 
193.11  available amount among eligible districts.  The state is not 
193.12  obligated for any additional amounts.  
193.13     Sec. 6.  Minnesota Statutes 2000, section 127A.41, 
193.14  subdivision 9, is amended to read: 
193.15     Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
193.16  PROGRAMS.] If a direct appropriation from the general fund to 
193.17  the department of children, families, and learning for an 
193.18  education aid or grant authorized under section 124D.135, 
193.19  124D.16, 124D.20, 124D.21, 124D.22, 124D.52, ~~124D.53~~ 124D.531, 
193.20  124D.54, 124D.55, or 124D.56 exceeds the amount required, the 
193.21  commissioner of children, families, and learning may transfer 
193.22  the excess to any education aid or grant appropriation that is 
193.23  insufficiently funded under these sections.  Excess 
193.24  appropriations shall be allocated proportionately among aids or 
193.25  grants that have insufficient appropriations.  The commissioner 
193.26  of finance shall make the necessary transfers among 
193.27  appropriations according to the determinations of the 
193.28  commissioner of children, families, and learning.  If the amount 
193.29  of the direct appropriation for the aid or grant plus the amount 
193.30  transferred according to this subdivision is insufficient, the 
193.31  commissioner shall prorate the available amount among eligible 
193.32  districts.  The state is not obligated for any additional 
193.33  amounts. 
193.34     Sec. 7.  [REPEALER.] 
193.35     Laws 2000, chapter 254, section 30; and Laws 2000, chapter 
193.36  489, article 1, section 18, are repealed.