1.1                          A bill for an act 
  1.2             relating to education finance; increasing state aid 
  1.3             for special education services; increasing limited 
  1.4             English proficiency revenue; modifying the salary of 
  1.5             participants in the teacher residency program; funding 
  1.6             nonpublic pupil and charter school pupil 
  1.7             transportation; expanding full day kindergarten; 
  1.8             clarifying the metropolitan magnet grant amounts; 
  1.9             allocating health and safety costs of metropolitan 
  1.10            magnet schools back to member districts; allowing 
  1.11            school employees to participate in the state insurance 
  1.12            program; making integration aid an open and standing 
  1.13            appropriation; increasing the crime levy; authorizing 
  1.14            a change in an annuity reduction; appropriating money; 
  1.15            amending Minnesota Statutes 1998, sections 122A.68, 
  1.16            subdivision 4; 123B.92, by adding a subdivision; 
  1.17            124D.88, by adding a subdivision; 126C.05, subdivision 
  1.18            17; 126C.20; 127A.48, subdivision 1; 128D.11, 
  1.19            subdivision 3; and 354A.31, subdivision 3; Minnesota 
  1.20            Statutes 1999 Supplement, sections 123B.92, 
  1.21            subdivision 9; 124D.081, subdivision 3; 124D.453, 
  1.22            subdivision 3; 124D.88, subdivision 3; 125A.76, 
  1.23            subdivisions 1 and 2; 125A.79, subdivisions 1 and 2; 
  1.24            126C.05, subdivision 5; and 126C.44; Laws 1999, 
  1.25            chapter 241, articles 3, section 3, subdivision 2; and 
  1.26            10, section 5, subdivision 2; proposing coding for new 
  1.27            law in Minnesota Statutes, chapter 126C; repealing 
  1.28            Minnesota Statutes 1999 Supplement, section 125A.79, 
  1.29            subdivisions 5, 6, and 7; Laws 1999, chapter 241, 
  1.30            article 3, section 5. 
  1.31  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.32     Section 1.  Minnesota Statutes 1998, section 122A.68, 
  1.33  subdivision 4, is amended to read: 
  1.34     Subd. 4.  [EMPLOYMENT CONDITIONS.] A school district must 
  1.35  pay a teaching resident a salary equal to ~~75~~ 90 percent of the 
  1.36  salary of a first-year teacher with a bachelor's degree in the 
  1.37  district.  The resident shall be a member of the local 
  1.38  bargaining unit and shall be covered under the terms of the 
  2.1   contract, except for salary and benefits, unless otherwise 
  2.2   provided in this subdivision.  The school district must provide 
  2.3   health insurance coverage for the resident if the district 
  2.4   provides it for teachers, and may provide other benefits upon 
  2.5   negotiated agreement. 
  2.6      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.7   123B.92, subdivision 9, is amended to read: 
  2.8      Subd. 9.  [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 
  2.9   district's nonpublic pupil transportation aid for the ~~1996-1997~~ 
  2.10  2000-2001 and later school years for transportation services for 
  2.11  nonpublic school pupils according to sections 123B.88, 123B.84 
  2.12  to 123B.86, and this section, equals the sum of the amounts 
  2.13  computed in paragraphs (b) and (c).  This aid does not limit the 
  2.14  obligation to transport pupils under sections 123B.84 to 123B.87.
  2.15     (b) For regular and excess transportation according to 
  2.16  subdivision 1, paragraph (b), clauses (1) and (2), an amount 
  2.17  equal to the product of: 
  2.18     (1) the district's actual expenditure per nonpublic pupil 
  2.19  transported in the regular and excess transportation categories 
  2.20  during the second preceding school year; times 
  2.21     (2) the number of nonpublic school pupils residing in the 
  2.22  district who receive regular or excess transportation service or 
  2.23  reimbursement for the current school year; times 
  2.24     (3) the ratio of the formula allowance pursuant to section 
  2.25  126C.10, subdivision 2, for the current school year to the 
  2.26  formula allowance pursuant to section 126C.10, subdivision 2, 
  2.27  for the second preceding school year. 
  2.28     (c) For nonpublic nonregular transportation according to 
  2.29  subdivision 1, paragraph (b), clause (5), an amount equal to the 
  2.30  product of: 
  2.31     (1) the district's actual expenditure for nonpublic 
  2.32  nonregular transportation during the second preceding school 
  2.33  year; times 
  2.34     (2) the ratio of the formula allowance pursuant to section 
  2.35  126C.10, subdivision 2, for the current school year to the 
  2.36  formula allowance pursuant to section 126C.10, subdivision 2, 
  3.1   for the second preceding school year. 
  3.2      (d) Notwithstanding the amount of the formula allowance for 
  3.3   fiscal years 2000, 2001, and 2002 in section 126C.10, 
  3.4   subdivision 2, the commissioner shall use the amount of the 
  3.5   formula allowance for the current year plus $87 in determining 
  3.6   the nonpublic pupil transportation revenue in paragraphs (b) and 
  3.7   (c) for fiscal year 2000, and the amount of the formula 
  3.8   allowance less $110 in determining the nonpublic pupil 
  3.9   transportation revenue in paragraphs (b) and (c) for fiscal 
  3.10  years 2001 and 2002. 
  3.11     Sec. 3.  Minnesota Statutes 1998, section 123B.92, is 
  3.12  amended by adding a subdivision to read: 
  3.13     Subd. 11.  [CHARTER SCHOOL TRANSPORTATION AID.] (a) A 
  3.14  school district required to transport charter school students is 
  3.15  eligible for charter school transportation aid for 2000-2001 and 
  3.16  later school years equal to the sum of the amounts computed in 
  3.17  paragraphs (b) and (c). 
  3.18     (b) For regular and excess transportation according to 
  3.19  subdivision 1, paragraph (b), clauses (1) and (2), an amount 
  3.20  equal to the product of: 
  3.21     (1) the district's actual expenditure per charter school 
  3.22  pupil transported in the regular and excess transportation 
  3.23  categories during the second preceding school year; times 
  3.24     (2) the number of charter school pupils residing in the 
  3.25  district who receive regular or excess transportation service or 
  3.26  reimbursement for the current school year; times 
  3.27     (3) the ratio of the formula allowance under section 
  3.28  126C.10, subdivision 2, for the current school year to the 
  3.29  formula allowance under section 126C.10, subdivision 2, for the 
  3.30  second preceding school year. 
  3.31     (c) For charter school nonregular transportation according 
  3.32  to subdivision 1, paragraph (b), clause (5), an amount equal to 
  3.33  the product of: 
  3.34     (1) the district's actual expenditure for charter school 
  3.35  nonregular transportation during the second preceding school 
  3.36  year; times 
  4.1      (2) the ratio of the formula allowance under section 
  4.2   126C.10, subdivision 2, for the current school year to the 
  4.3   formula allowance under section 126C.10, subdivision 2, for the 
  4.4   second preceding school year. 
  4.5      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
  4.6   124D.081, subdivision 3, is amended to read: 
  4.7      Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) ~~The commissioner~~ 
  4.8   ~~shall rank~~ All school sites with kindergarten programs that do 
  4.9   not exclusively serve students under sections 125A.03 to 
  4.10  125A.24~~,~~ and 125A.65~~.  The ranking must be from highest to~~ 
  4.11  ~~lowest based on the site's~~ and that have a free and reduced 
  4.12  lunch count as a percent of the fall enrollment using the 
  4.13  preceding October 1 enrollment data higher than the average for 
  4.14  that geographic region qualify for revenue.  Once a school site 
  4.15  is calculated to be eligible, it remains eligible ~~for the~~ 
  4.16  ~~duration of the pilot program, unless the site's ranking falls~~ 
  4.17  ~~below the state average for elementary schools~~ for revenue.  For 
  4.18  each school site, the percentage used to calculate the ranking 
  4.19  must be the greater of (1) the percent of the fall kindergarten 
  4.20  enrollment receiving free and reduced lunch, or (2) the percent 
  4.21  of the total fall enrollment receiving free and reduced lunch.  
  4.22  The ~~list of ranked sites must be separated into the following~~ 
  4.23  geographic ~~areas~~ regions are:  school sites located in 
  4.24  Minneapolis ~~district~~, school sites located in St. Paul ~~district~~, 
  4.25  ~~suburban Twin Cities districts~~ school sites located in the 
  4.26  seven-county metropolitan area, and school ~~districts~~ sites 
  4.27  located in greater Minnesota. 
  4.28     (b) The commissioner shall establish a process and 
  4.29  timelines to qualify school sites for the next school year.  
  4.30  School sites must be qualified in each geographic area from the 
  4.31  list of ranked sites until the estimated revenue available for 
  4.32  this program has been allocated.  ~~The total estimated revenue~~ 
  4.33  ~~must be distributed to qualified school sites in each geographic~~ 
  4.34  ~~area as follows:  25 percent for Minneapolis sites, 25 percent~~ 
  4.35  ~~for St. Paul sites, 25 percent for suburban Twin Cities sites,~~ 
  4.36  ~~and 25 percent for greater Minnesota.~~ 
  5.1      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  5.2   124D.453, subdivision 3, is amended to read: 
  5.3      Subd. 3.  [CAREER AND TECHNICAL AID.] A district's career 
  5.4   and technical education aid for fiscal year 2000 and later 
  5.5   fiscal years equals the lesser of: 
  5.6      (a) $73 times the district's average daily membership in 
  5.7   grades 10 to 12; or 
  5.8      (b) 25 percent of approved expenditures for the following: 
  5.9      (1) salaries paid to essential, licensed personnel 
  5.10  providing direct instructional services to students in that 
  5.11  fiscal year for services rendered in the district's approved 
  5.12  career and technical education programs; 
  5.13     (2) contracted services provided by a public or private 
  5.14  agency other than a Minnesota school district or cooperative 
  5.15  center under subdivision 7; 
  5.16     (3) necessary travel between instructional sites by 
  5.17  licensed career and technical education personnel; 
  5.18     (4) necessary travel by licensed career and technical 
  5.19  education personnel for vocational student organization 
  5.20  activities held within the state for instructional purposes; 
  5.21     (5) curriculum development activities that are part of a 
  5.22  five-year plan for improvement based on program assessment; 
  5.23     (6) necessary travel by licensed career and technical 
  5.24  education personnel for noncollegiate credit bearing 
  5.25  professional development; and 
  5.26     (7) specialized vocational instructional supplies. 
  5.27     (c) Up to ten percent of a district's career and technical 
  5.28  aid may be spent on equipment purchases.  Districts using career 
  5.29  and technical aid for equipment purchases must report to the 
  5.30  department on the improved learning opportunities for students 
  5.31  that result from the investment in equipment.  
  5.32     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
  5.33  124D.88, subdivision 3, is amended to read: 
  5.34     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
  5.35  school districts that meets the criteria required under 
  5.36  paragraph (b)(1) may apply for a magnet school grant in an 
  6.1   amount not to exceed ~~$20,800,000 for~~ the approved costs or 
  6.2   expansion of a magnet school facility. 
  6.3      (b)(1) Any group of districts that submits an application 
  6.4   for a grant shall submit a proposal to the commissioner for 
  6.5   review and comment under section 123B.71, and the commissioner 
  6.6   shall prepare a review and comment on the proposed magnet school 
  6.7   facility, regardless of the amount of the capital expenditure 
  6.8   required to design, acquire, construct, remodel, improve, 
  6.9   furnish, or equip the facility.  The commissioner must not 
  6.10  approve an application for a magnet school grant for any 
  6.11  facility unless the facility receives a favorable review and 
  6.12  comment under section 123B.71 and the participating districts: 
  6.13     (i) establish a joint powers board under section 471.59 to 
  6.14  represent all participating districts and govern the magnet 
  6.15  school facility; 
  6.16     (ii) design the planned magnet school facility to meet the 
  6.17  applicable requirements contained in Minnesota Rules, chapter 
  6.18  3535; 
  6.19     (iii) submit a statement of need, including reasons why the 
  6.20  magnet school will facilitate integration and improve learning; 
  6.21     (iv) prepare an educational plan that includes input from 
  6.22  both community and professional staff; and 
  6.23     (v) develop an education program that will improve learning 
  6.24  opportunities for students attending the magnet school. 
  6.25     (2) The districts may develop a plan that permits social 
  6.26  service, health, and other programs serving students and 
  6.27  community residents to be located within the magnet school 
  6.28  facility.  The commissioner shall consider this plan when 
  6.29  preparing a review and comment on the proposed facility.  
  6.30     (c) When two or more districts enter into an agreement 
  6.31  establishing a joint powers board to govern the magnet school 
  6.32  facility, all member districts shall have the same powers.  
  6.33     (d) A joint powers board of participating school districts 
  6.34  established under paragraphs (b) and (c) that intends to apply 
  6.35  for a grant must adopt a resolution stating the costs of the 
  6.36  proposed project, the purpose for which the debt is to be 
  7.1   incurred, and an estimate of the dates when the contracts for 
  7.2   the proposed project will be completed.  A copy of the 
  7.3   resolution must accompany any application for a state grant 
  7.4   under this section. 
  7.5      (e)(1) The commissioner shall examine and consider all 
  7.6   grant applications.  If the commissioner finds that any joint 
  7.7   powers district is not a qualified grant applicant, the 
  7.8   commissioner shall promptly notify that joint powers board.  The 
  7.9   commissioner shall make awards to no more than two qualified 
  7.10  applicants whose applications have been on file with the 
  7.11  commissioner more than 30 days.  
  7.12     (2) A grant award is subject to verification by the joint 
  7.13  powers board under paragraph (f).  A grant award must not be 
  7.14  made until the participating districts determine the site of the 
  7.15  magnet school facility.  If the total amount of the approved 
  7.16  applications exceeds the amount of grant funding that is or can 
  7.17  be made available, the commissioner shall allot the available 
  7.18  amount equally between the approved applicant districts.  The 
  7.19  commissioner shall promptly certify to each qualified joint 
  7.20  powers board the amount, if any, of the grant awarded to it. 
  7.21     (f) Each grant must be evidenced by a contract between the 
  7.22  joint powers board and the state acting through the 
  7.23  commissioner.  The contract obligates the state to pay to the 
  7.24  joint powers board an amount computed according to paragraph 
  7.25  (e)(2) and a schedule, and terms and conditions acceptable to 
  7.26  the commissioner of finance. 
  7.27     (g) Notwithstanding the provisions of section 123B.02, 
  7.28  subdivision 3, the joint powers and its individual members may 
  7.29  enter into long-term lease agreements as part of the magnet 
  7.30  school program.  
  7.31     Sec. 7.  Minnesota Statutes 1998, section 124D.88, is 
  7.32  amended by adding a subdivision to read: 
  7.33     Subd. 5.  [ALLOCATION OF HEALTH AND SAFETY COSTS.] A 
  7.34  metropolitan magnet school may adopt a health and safety program 
  7.35  and submit an application for health and safety revenue to the 
  7.36  commissioner of children, families, and learning under section 
  8.1   123B.57.  If the application is approved, the magnet school 
  8.2   shall annually allocate proportional shares of the health and 
  8.3   safety revenue to its member school districts.  If a member 
  8.4   school district participates in the alternative facilities 
  8.5   program, these costs may be included in the district's approved 
  8.6   alternative facilities revenue. 
  8.7      Sec. 8.  Minnesota Statutes 1999 Supplement, section 
  8.8   125A.76, subdivision 1, is amended to read: 
  8.9      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  8.10  section, the definitions in this subdivision apply. 
  8.11     (a) "Base year" for fiscal year 1998 and later fiscal years 
  8.12  means the second fiscal year preceding the fiscal year for which 
  8.13  aid will be paid. 
  8.14     (b) "Basic revenue" has the meaning given it in section 
  8.15  126C.10, subdivision 2.  For the purposes of computing basic 
  8.16  revenue pursuant to this section, each child with a disability 
  8.17  shall be counted as prescribed in section 126C.05, subdivision 1.
  8.18     (c) "Essential personnel" means teachers, related services, 
  8.19  and support services staff providing direct services to students.
  8.20     (d) "Average daily membership" has the meaning given it in 
  8.21  section 126C.05. 
  8.22     (e) "Program growth factor" means ~~1.012~~ 1.10 for fiscal 
  8.23  year 2002 and later. 
  8.24     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
  8.25  125A.76, subdivision 2, is amended to read: 
  8.26     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
  8.27  education base revenue equals the sum of the following amounts 
  8.28  computed using base year data: 
  8.29     (1) ~~68~~ 80 percent of the salary and benefits of each 
  8.30  essential person employed in the district's program for children 
  8.31  with a disability during the fiscal year, not including the 
  8.32  share of salaries and benefits for personnel providing 
  8.33  health-related services counted in clause (8), whether the 
  8.34  person is employed by one or more districts or a Minnesota 
  8.35  correctional facility operating on a fee-for-service basis; 
  8.36     (2) for the Minnesota state academy for the deaf or the 
  9.1   Minnesota state academy for the blind, ~~68~~ 80 percent of the 
  9.2   salary and benefits of each instructional aide assigned to a 
  9.3   child attending the academy, if that aide is required by the 
  9.4   child's individual education plan; 
  9.5      (3) for special instruction and services provided to any 
  9.6   pupil by contracting with public, private, or voluntary agencies 
  9.7   other than school districts, in place of special instruction and 
  9.8   services provided by the district, ~~52~~ 60 percent of the 
  9.9   difference between the amount of the contract and the basic 
  9.10  revenue of the district for that pupil for the fraction of the 
  9.11  school day the pupil receives services under the contract; 
  9.12     (4) for special instruction and services provided to any 
  9.13  pupil by contracting for services with public, private, or 
  9.14  voluntary agencies other than school districts, that are 
  9.15  supplementary to a full educational program provided by the 
  9.16  school district, ~~52~~ 60 percent of the amount of the contract for 
  9.17  that pupil; 
  9.18     (5) for supplies and equipment purchased or rented for use 
  9.19  in the instruction of children with a disability, not including 
  9.20  the portion of the expenses for supplies and equipment used to 
  9.21  provide health-related services counted in clause (8), an amount 
  9.22  equal to 47 percent of the sum actually expended by the 
  9.23  district, or a Minnesota correctional facility operating on a 
  9.24  fee-for-service basis, but not to exceed an average of ~~$47~~ $100 
  9.25  in any one school year for each child with a disability 
  9.26  receiving instruction; 
  9.27     (6) for fiscal years 1997 and later, special education base 
  9.28  revenue shall include amounts under clauses (1) to (5) for 
  9.29  special education summer programs provided during the base year 
  9.30  for that fiscal year; 
  9.31     (7) for fiscal years 1999 and later, the cost of providing 
  9.32  transportation services for children with disabilities under 
  9.33  section 123B.92, subdivision 1, paragraph (b), clause (4); and 
  9.34     (8) for fiscal years 2001 and later, the cost of salaries, 
  9.35  supplies and equipment, and other related costs actually 
  9.36  expended by the district for the nonfederal share of medical 
 10.1   assistance services according to section 256B.0625, subdivision 
 10.2   26. 
 10.3      (b) If requested by a school district operating a special 
 10.4   education program during the base year for less than the full 
 10.5   fiscal year, or a school district in which is located a 
 10.6   Minnesota correctional facility operating on a fee-for-service 
 10.7   basis for less than the full fiscal year, the commissioner may 
 10.8   adjust the base revenue to reflect the expenditures that would 
 10.9   have occurred during the base year had the program been operated 
 10.10  for the full fiscal year. 
 10.11     (c) Notwithstanding paragraphs (a) and (b), the portion of 
 10.12  a school district's base revenue attributable to a Minnesota 
 10.13  correctional facility operating on a fee-for-service basis 
 10.14  during the facility's first year of operating on a 
 10.15  fee-for-service basis shall be computed using current year data. 
 10.16     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 10.17  125A.79, subdivision 1, is amended to read: 
 10.18     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 10.19  section, the definitions in this subdivision apply. 
 10.20     (a) "Unreimbursed special education cost" means the sum of 
 10.21  the following: 
 10.22     (1) expenditures for teachers' salaries, contracted 
 10.23  services, supplies, equipment, and transportation services 
 10.24  eligible for revenue under section 125A.76; plus 
 10.25     (2) expenditures for tuition bills received under sections 
 10.26  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 10.27  under sections 125A.76, subdivision 2, and 124.3202, subdivision 
 10.28  1; minus 
 10.29     (3) revenue for teachers' salaries, contracted services, 
 10.30  supplies, and equipment under sections 124.3202 and 124A.76; 
 10.31  minus 
 10.32     (4) tuition receipts under sections 125A.03 to 125A.24 and 
 10.33  125A.65 for services eligible for revenue under sections 
 10.34  124.3202, subdivision 1, and 124A.76, subdivision 2. 
 10.35     (b) "General revenue" means ~~for fiscal year 1996, the sum~~ 
 10.36  ~~of the general education revenue according to section 126C.10,~~ 
 11.1   ~~subdivision 1, as adjusted according to section 127A.47,~~ 
 11.2   ~~subdivision 7, plus the total referendum revenue according to~~ 
 11.3   ~~section 126C.17, subdivision 4.  For fiscal years 1997 and~~ 
 11.4   ~~later, "general revenue" means~~ the sum of the general education 
 11.5   revenue according to section 126C.10, subdivision 1, as adjusted 
 11.6   according to section 127A.47, subdivisions 7 and 8, plus the 
 11.7   total referendum revenue minus transportation sparsity revenue 
 11.8   minus total operating capital revenue.  
 11.9      (c) "Average daily membership" has the meaning given it in 
 11.10  section 126C.05. 
 11.11     (d) ~~"Program growth factor" means 1.044 for fiscal year~~ 
 11.12  ~~2002 and 1.02 for fiscal year 2003 and later~~ "Aid percentage 
 11.13  factor" means 80 percent for fiscal year 2001, 90 percent for 
 11.14  fiscal year 2002, and 100 percent for fiscal year 2003 and later.
 11.15     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 11.16  125A.79, subdivision 2, is amended to read: 
 11.17     Subd. 2.  [EXCESS COST AID, FISCAL YEARS ~~2000 AND~~ 2001 AND 
 11.18  LATER.] For fiscal years ~~2000 and~~ 2001 and later, a district's 
 11.19  special education excess cost aid equals the greatest of: 
 11.20     (a) ~~75 percent of~~ the aid percentage factor for that year 
 11.21  times the difference between (1) the district's unreimbursed 
 11.22  special education cost and (2) 4.4 percent of the district's 
 11.23  general revenue; 
 11.24     (b) 70 percent of the difference between (1) the increase 
 11.25  in the district's unreimbursed special education cost between 
 11.26  the base year as defined in section 125A.76, subdivision 1, and 
 11.27  the current year and (2) 1.6 percent of the district's general 
 11.28  revenue; or 
 11.29     (c) zero. 
 11.30     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 11.31  126C.05, subdivision 5, is amended to read: 
 11.32     Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
 11.33  for a district or charter school means the sum of: 
 11.34     (1) the number of pupil units served, according to 
 11.35  subdivision 7, plus 
 11.36     (2) pupil units according to subdivision 1 for whom the 
 12.1   district or charter school pays tuition under section 123A.18, 
 12.2   123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 12.3   subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 12.4   125A.65, minus 
 12.5      (3) pupil units according to subdivision 1 for whom the 
 12.6   district or charter school receives tuition under section 
 12.7   123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 12.8   subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 12.9   125A.65. 
 12.10     (b) Adjusted marginal cost pupil units means the sum of .9 
 12.11  times the pupil units defined in paragraph (a) for the current 
 12.12  school year and .1 times the sum of the pupil units defined in 
 12.13  paragraph (a) for the previous school year plus the number of 
 12.14  resident pupil units attending a charter school for the previous 
 12.15  school year. 
 12.16     Sec. 13.  Minnesota Statutes 1998, section 126C.05, 
 12.17  subdivision 17, is amended to read: 
 12.18     Subd. 17.  [LEP PUPIL UNITS.] (a) Limited English 
 12.19  proficiency pupil units for fiscal year ~~1998~~ 2001 and thereafter 
 12.20  shall be determined according to this subdivision. 
 12.21     (b) The limited English proficiency concentration 
 12.22  percentage for a district equals the product of 100 times the 
 12.23  ratio of: 
 12.24     (1) the number of pupils of limited English proficiency 
 12.25  enrolled in the district during the current fiscal year; to 
 12.26     (2) the number of pupils in average daily membership 
 12.27  enrolled in the district. 
 12.28     (c) The limited English proficiency pupil units for each 
 12.29  pupil enrolled in a program for pupils of limited English 
 12.30  proficiency in accordance with sections 124D.58 to 124D.64 
 12.31  equals the ~~lesser of one or the~~ quotient obtained by dividing 
 12.32  the limited English proficiency concentration percentage for the 
 12.33  pupil's district of enrollment by 11.5. 
 12.34     (d) Limited English proficiency pupil units shall be 
 12.35  counted by the district of enrollment. 
 12.36     (e) Notwithstanding paragraph (d), for the purposes of this 
 13.1   subdivision, pupils enrolled in a cooperative or intermediate 
 13.2   school district shall be counted by the district of residence. 
 13.3      Sec. 14.  Minnesota Statutes 1998, section 126C.20, is 
 13.4   amended to read: 
 13.5      126C.20 [ANNUAL ~~FOUNDATION OR~~ GENERAL EDUCATION AID AND 
 13.6   INTEGRATION AID APPROPRIATION.] 
 13.7      There is annually appropriated from the general fund to the 
 13.8   department the amount necessary for general education aid under 
 13.9   section 126C.13 and integration aid under section 124D.86.  This 
 13.10  amount must be reduced by the amount of any money specifically 
 13.11  appropriated for the same purpose in any year from any state 
 13.12  fund.  
 13.13     Sec. 15.  [126C.24] [SCHOOL DISTRICT EMPLOYEE INSURANCE AND 
 13.14  BENEFITS.] 
 13.15     Subdivision 1.  [ELIGIBILITY.] Beginning July 1, 2001, 
 13.16  school district employees are eligible to participate in the 
 13.17  group plan for state paid insurance and benefits under section 
 13.18  43A.24.  In order for a school district employee to participate 
 13.19  in the plan, the school board and the employee's exclusive 
 13.20  representative, if any, must mutually agree to participate in 
 13.21  the plan. 
 13.22     Subd. 2.  [COVERAGE.] The coverage and allocation of 
 13.23  premiums between the school board and the employees are as 
 13.24  provided for state employees who are covered by the plan adopted 
 13.25  under section 43A.18.  The employer's share of the premiums must 
 13.26  be paid by the state. 
 13.27     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 13.28  126C.44, is amended to read: 
 13.29     126C.44 [CRIME-RELATED COSTS LEVY.] 
 13.30     (a) Each district may make a levy on all taxable property 
 13.31  located within the district for the purposes specified in this 
 13.32  subdivision.  The maximum amount which may be levied for all 
 13.33  costs under this subdivision shall be equal to $1.50 multiplied 
 13.34  by the population of the school district.  For purposes of this 
 13.35  ~~subdivision~~ section, "population" of the school district means 
 13.36  the same as contained in section 275.14.  
 14.1      (b) A school district is eligible for matching state aid 
 14.2   equal to the amount that it levies for the purposes of this 
 14.3   section. 
 14.4      (c) The proceeds of the levy must be used for directly 
 14.5   funding the following purposes or for reimbursing the cities and 
 14.6   counties who contract with the district for the following 
 14.7   purposes:  (1) to pay the costs incurred for the salaries, 
 14.8   benefits, and transportation costs of peace officers and 
 14.9   sheriffs for liaison services in the district's middle and 
 14.10  secondary schools; (2) to pay the costs for a drug abuse 
 14.11  prevention program as defined in Minnesota Statutes 1991 
 14.12  Supplement, section 609.101, subdivision 3, paragraph (f), in 
 14.13  the elementary schools; (3) to pay the costs for a gang 
 14.14  resistance education training curriculum in the middle 
 14.15  schools; ~~or~~ (4) to pay the costs for other crime prevention and 
 14.16  drug abuse and violence prevention measures taken by the school 
 14.17  district; or (5) for other expenses intended to improve student 
 14.18  and staff personal safety.  
 14.19     (d) The district must initially attempt to contract for 
 14.20  services to be provided by peace officers or sheriffs with the 
 14.21  police department of each city or the sheriff's department of 
 14.22  the county within the district containing the school receiving 
 14.23  the services.  If a local police department or a county 
 14.24  sheriff's department does not wish to provide the necessary 
 14.25  services, the district may contract for these services with any 
 14.26  other police or sheriff's department located entirely or 
 14.27  partially within the school district's boundaries.  ~~The levy~~ 
 14.28  ~~authorized under this subdivision is not included in determining~~ 
 14.29  ~~the school district's levy limitations.~~ 
 14.30     Sec. 17.  Minnesota Statutes 1998, section 127A.48, 
 14.31  subdivision 1, is amended to read: 
 14.32     Subdivision 1.  [COMPUTATION.] The department of revenue 
 14.33  must annually conduct an assessment/sales ratio study of the 
 14.34  taxable property in each school district in accordance with the 
 14.35  procedures in subdivisions 2 and 3.  Based upon the results of 
 14.36  ~~this~~ these assessment/sales ratio ~~study~~ studies for the three 
 15.1   most recent years, the department of revenue must determine an 
 15.2   aggregate equalized net tax capacity for the various classes of 
 15.3   taxable property in each district, which tax capacity shall be 
 15.4   designated as the adjusted net tax capacity.  The adjusted net 
 15.5   tax capacities shall be determined using the net tax capacity 
 15.6   percentages in effect for the assessment year following the 
 15.7   assessment year of the study.  The department of revenue must 
 15.8   make whatever estimates are necessary to account for changes in 
 15.9   the classification system.  The department of revenue may incur 
 15.10  the expense necessary to make the determinations.  The 
 15.11  commissioner of revenue may reimburse any county or governmental 
 15.12  official for requested services performed in ascertaining the 
 15.13  adjusted net tax capacity.  On or before March 15 annually, the 
 15.14  department of revenue shall file with the chair of the tax 
 15.15  committee of the house of representatives and the chair of the 
 15.16  committee on taxes and tax laws of the senate a report of 
 15.17  adjusted net tax capacities.  On or before June 15 annually, the 
 15.18  department of revenue shall file its final report on the 
 15.19  adjusted net tax capacities established by the previous year's 
 15.20  assessments and the current year's net tax capacity percentages 
 15.21  with the commissioner of children, families, and learning and 
 15.22  each county auditor for those districts for which the auditor 
 15.23  has the responsibility for determination of local tax rates.  A 
 15.24  copy of the report so filed shall be mailed to the clerk of each 
 15.25  district involved and to the county assessor or supervisor of 
 15.26  assessments of the county or counties in which each district is 
 15.27  located. 
 15.28     Sec. 18.  Minnesota Statutes 1998, section 128D.11, 
 15.29  subdivision 3, is amended to read: 
 15.30     Subd. 3.  [NO ELECTION.] Subject to the provisions of 
 15.31  subdivisions 7 to 10, the school district may also by a 
 15.32  two-thirds majority vote of all the members of its board of 
 15.33  education and without any election by the voters of the 
 15.34  district, issue and sell in each calendar year general 
 15.35  obligation bonds of the district in an amount not to exceed 
 15.36  5-1/10 per cent of the net tax capacity of the taxable property 
 16.1   in the district (plus, for calendar years 1990 to ~~2003~~ 2008, an 
 16.2   amount not to exceed ~~$7,500,000~~ $15,000,000; with an additional 
 16.3   provision that any amount of bonds so authorized for sale in a 
 16.4   specific year and not sold can be carried forward and sold in 
 16.5   the year immediately following).  
 16.6      Sec. 19.  Minnesota Statutes 1998, section 354A.31, 
 16.7   subdivision 3, is amended to read: 
 16.8      Subd. 3.  [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A 
 16.9   RETIREMENT ANNUITY.] Any person who retired and is receiving a 
 16.10  coordinated program retirement annuity under the provisions of 
 16.11  sections 354A.31 to 354A.41 or any person receiving a basic 
 16.12  program retirement annuity under the governing sections in the 
 16.13  articles of incorporation or bylaws and who has resumed teaching 
 16.14  service for the school district in which the teachers retirement 
 16.15  fund association exists is entitled to continue to receive 
 16.16  retirement annuity payments, except that annuity payments must 
 16.17  be reduced during the calendar year immediately following the 
 16.18  calendar year in which the person's income from the teaching 
 16.19  service is in an amount greater than two times the annual 
 16.20  maximum earnings allowable for that age for the continued 
 16.21  receipt of full benefit amounts monthly under the federal old 
 16.22  age, survivors, and disability insurance program as set by the 
 16.23  secretary of health and human services under United States Code, 
 16.24  title 42, section 403.  The amount of the reduction must be 
 16.25  one-third the amount in excess of the applicable reemployment 
 16.26  income maximum specified in this subdivision and must be 
 16.27  deducted from the annuity payable for the calendar year 
 16.28  immediately following the calendar year in which the excess 
 16.29  amount was earned.  If the person has not yet reached the 
 16.30  minimum age for the receipt of social security benefits, the 
 16.31  maximum earnings for the person must be equal to two times the 
 16.32  annual maximum earnings allowable for the minimum age for the 
 16.33  receipt of social security benefits. 
 16.34     If the person is retired for only a fractional part of the 
 16.35  calendar year during the initial year of retirement, the maximum 
 16.36  reemployment income specified in this subdivision must be 
 17.1   prorated for that calendar year. 
 17.2      After a person has reached the age of 70, no reemployment 
 17.3   income maximum is applicable regardless of the amount of any 
 17.4   compensation received for teaching service for the school 
 17.5   district in which the teachers retirement fund association 
 17.6   exists.  For the purpose of this subdivision, income from 
 17.7   teaching service includes:  (i) all income for services 
 17.8   performed as a consultant or independent contractor; or income 
 17.9   resulting from working with the school district in any capacity; 
 17.10  and (ii) the greater of either the income received or an amount 
 17.11  based on the rate paid with respect to an administrative 
 17.12  position, consultant, or independent contractor in the school 
 17.13  district in which the teachers retirement fund association 
 17.14  exists and at the same level as the position occupied by the 
 17.15  person who resumes teaching service. 
 17.16     Sec. 20.  Laws 1999, chapter 241, article 3, section 3, 
 17.17  subdivision 2, is amended to read: 
 17.18     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 17.19  secondary vocational education aid according to Minnesota 
 17.20  Statutes, section 124D.453: 
 17.21       $11,335,000      .....     2000 
 17.22       ~~$1,130,000~~  $11,300,000     .....     2001 
 17.23     The 2000 appropriation includes $1,159,000 for 1999 and 
 17.24  $10,176,000 for 2000.  The 2001 appropriation includes 
 17.25  $1,130,000 for 2000 and $10,170,000 for 2001. 
 17.26     Sec. 21.  Laws 1999, chapter 241, article 10, section 5, 
 17.27  subdivision 2, is amended to read: 
 17.28     Subd. 2.  [TEACHING AND LEARNING PROGRAM.] (a) For the 
 17.29  teaching and learning program in the department of children, 
 17.30  families, and learning: 
 17.31       $9,979,000     .....     2000 
 17.32       ~~$9,926,000~~ $10,026,000    .....     2001 
 17.33     (b) Any balance the first year does not cancel but is 
 17.34  available in the second year. 
 17.35     (c) $21,000 each year is from the trunk highway fund. 
 17.36     (d) $673,000 in 2000 and ~~$678,000~~ $778,000 in 2001 is for 
 18.1   the board of teaching.  Of the fiscal year 2001 appropriation, 
 18.2   $100,000 must be used to provide professional development 
 18.3   services to teacher residents under Minnesota Statutes, section 
 18.4   122A.68, subdivision 3. 
 18.5      (e) Notwithstanding Minnesota Statutes, section 15.53, 
 18.6   subdivision 2, the commissioner of children, families, and 
 18.7   learning may contract with a school district for a period no 
 18.8   longer than five consecutive years to work in the development or 
 18.9   implementation of the graduation rule.  The commissioner may 
 18.10  contract for services and expertise as necessary.  The contracts 
 18.11  are not subject to Minnesota Statutes, section 16B.06. 
 18.12     Sec. 22.  [REPEALER.] 
 18.13     (a) Minnesota Statutes 1999 Supplement, section 125A.79, 
 18.14  subdivisions 5, 6, and 7, are repealed. 
 18.15     (b) Laws 1999, chapter 241, article 3, section 5, is 
 18.16  repealed. 
 18.17     Sec. 23.  [EFFECTIVE DATE.] 
 18.18     Sections 6, 20, and 22, paragraph (b), are effective the 
 18.19  day following final enactment.  Section 17 is effective for 
 18.20  taxes payable in 2001.