2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; providing for kindergarten 1.3 through grade 12 education including general 1.4 education, education excellence, special programs, 1.5 facilities and technology, nutrition, school 1.6 accounting, other programs, deficiencies, state 1.7 agencies, and academic content standard; providing for 1.8 libraries; providing for early childhood and family 1.9 education including early childhood family support, 1.10 prevention, and self-sufficiency; requiring a school 1.11 district primary election in certain circumstances; 1.12 providing for recitation of the pledge of allegiance; 1.13 providing for technical amendments to certain 1.14 education provisions; changing the name of the 1.15 department of children, families, and learning to the 1.16 department of education; providing for teacher/school 1.17 board contract arbitration and post arbitration 1.18 procedures; providing for rulemaking; appropriating 1.19 money; amending Minnesota Statutes 2002, sections 1.20 12.21, subdivision 3; 15.01; 84A.51, subdivision 4; 1.21 119A.01, subdivision 2; 119A.02, subdivisions 2, 3; 1.22 119A.52; 119B.011, subdivisions 8, 10, 20; 120A.02; 1.23 120A.05, subdivisions 4, 7, 9; 120A.24, subdivision 4; 1.24 120A.41; 121A.11, by adding a subdivision; 121A.21; 1.25 121A.23, subdivision 1, by adding a subdivision; 1.26 121A.41, subdivision 10; 121A.50; 121A.55; 121A.64; 1.27 122A.09, subdivision 10; 122A.12, subdivisions 1, 2; 1.28 122A.18, subdivision 7a; 122A.21; 122A.22; 122A.41, 1.29 subdivision 2; 122A.414, by adding a subdivision; 1.30 122A.415, subdivisions 1, 3; 122A.63, subdivision 3; 1.31 123A.06, subdivision 3; 123A.18, subdivision 2; 1.32 123A.73, subdivisions 3, 4, 5; 123B.02, subdivisions 1.33 1, 14; 123B.36, subdivision 1; 123B.49, subdivision 4; 1.34 123B.51, subdivisions 3, 4; 123B.52, by adding a 1.35 subdivision; 123B.53, subdivision 4; 123B.57, 1.36 subdivisions 1, 4, 6; 123B.59, subdivisions 1, 2, 3, 1.37 5, by adding a subdivision; 123B.63, subdivisions 1, 1.38 2, 3, 4; 123B.72, subdivision 3; 123B.88, subdivision 1.39 2; 123B.90, subdivisions 2, 3; 123B.91, subdivision 1; 1.40 123B.92, subdivisions 1, 3, 9; 123B.93; 124D.03, 1.41 subdivision 12; 124D.081, by adding a subdivision; 1.42 124D.09, subdivisions 3, 9, 10, 13, 16, 20; 124D.10, 1.43 subdivisions 2a, 3, 4, 8, 13, 16, 20, 23a; 124D.11, 1.44 subdivisions 1, 2, 4, 6, 9; 124D.118, subdivision 4; 1.45 124D.128, subdivisions 3, 6; 124D.13, subdivisions 2, 1.46 4, 8, 11; 124D.135, subdivisions 1, 8; 124D.15, 2.1 subdivision 7; 124D.16, subdivisions 1, 6; 124D.19, 2.2 subdivision 3; 124D.20, subdivisions 3, 5, by adding 2.3 subdivisions; 124D.22, subdivision 3; 124D.42, 2.4 subdivision 6; 124D.454, subdivisions 1, 2, 3, 8, 10, 2.5 by adding a subdivision; 124D.52, subdivisions 1, 3; 2.6 124D.531, subdivisions 1, 2, 4, 7; 124D.59, 2.7 subdivision 2; 124D.65, subdivision 5; 124D.86, 2.8 subdivisions 1a, 3, 4, 5, 6; 125A.05; 125A.12; 2.9 125A.21, subdivision 2; 125A.28; 125A.30; 125A.76, 2.10 subdivisions 1, 4; 125A.79, subdivisions 1, 6; 2.11 125B.21; 126C.05, subdivisions 1, 8, 14, 15, 16, 17, 2.12 by adding a subdivision; 126C.10, subdivisions 1, 3, 2.13 4, 17, 18, 24, 28, by adding subdivisions; 126C.13, 2.14 subdivision 4; 126C.15, subdivision 1; 126C.17, 2.15 subdivisions 1, 2, 5, 7, 7a, 9, 13; 126C.21, 2.16 subdivision 3; 126C.40, subdivision 1; 126C.42, 2.17 subdivision 1; 126C.43, subdivisions 2, 3; 126C.44; 2.18 126C.45; 126C.457; 126C.48, subdivision 3; 126C.55, 2.19 subdivision 5; 126C.63, subdivisions 5, 8; 126C.69, 2.20 subdivisions 2, 9; 127A.05, subdivisions 1, 3, 4; 2.21 127A.45, subdivisions 2, 3, 7a, 10, 12, 13, 14, 14a, 2.22 16; 127A.47, subdivisions 7, 8; 127A.49, subdivisions 2.23 2, 3; 128C.05, by adding a subdivision; 128D.11, 2.24 subdivision 8; 134.34, subdivision 4; 169.26, 2.25 subdivision 3; 169.28, subdivision 1; 169.435; 2.26 169.449, subdivision 1; 169.4501, subdivisions 3, 4; 2.27 169.4503, subdivision 4; 169.454, subdivision 6; 2.28 169.973, subdivision 1; 171.321, subdivision 5; 2.29 177.42, subdivision 2; 178.02, subdivision 1; 179A.18, 2.30 subdivision 2; 205A.03, subdivisions 1, 3, 4; 205A.06, 2.31 subdivision 1a; 268.052, subdivisions 2, 4; 273.138, 2.32 subdivision 6; 298.28, subdivision 4; 475.61, 2.33 subdivisions 1, 3, 4; Laws 1965, chapter 705, as 2.34 amended; Laws 2001, First Special Session chapter 6, 2.35 article 2, section 64; proposing coding for new law in 2.36 Minnesota Statutes, chapters 120B; 121A; 123B; 124D; 2.37 125A; 126C; 179A; repealing Minnesota Statutes 2002, 2.38 sections 15.014, subdivision 3; 93.22, subdivision 2; 2.39 93.223, subdivision 1; 119A.01, subdivision 1; 2.40 120B.23; 121A.49; 122A.60; 122A.61; 122A.62; 122A.64; 2.41 122A.65; 123A.73, subdivisions 7, 10, 11; 123B.05; 2.42 123B.59, subdivisions 6, 7; 123B.81, subdivision 6; 2.43 123B.90, subdivision 1; 124D.09, subdivision 15; 2.44 124D.115; 124D.1156; 124D.17; 124D.21; 124D.221; 2.45 124D.54; 124D.65, subdivision 4; 124D.84, subdivision 2.46 2; 124D.89; 124D.93; 125A.023, subdivision 5; 125A.09; 2.47 125A.47; 125A.79, subdivision 2; 125B.11; 126C.01, 2.48 subdivision 4; 126C.05, subdivision 12; 126C.12; 2.49 126C.125; 126C.14; 126C.445; 126C.55, subdivision 5; 2.50 127A.41, subdivision 6; 144.401, subdivision 5; 2.51 169.441, subdivision 4; 239.004; Laws 1993, chapter 2.52 224, article 8, section 20, subdivision 2, as amended; 2.53 Laws 2000, chapter 489, article 2, section 36, as 2.54 amended; Laws 2001, First Special Session chapter 3, 2.55 article 4, sections 1, 2; Laws 2001, First Special 2.56 Session chapter 6, article 2, section 52; Laws 2001, 2.57 First Special Session chapter 6, article 5, section 2.58 12, as amended; Minnesota Rules, parts 3500.0600; 2.59 3520.0400; 3520.1400; 3520.3300; 3530.1500; 3530.2700; 2.60 3530.4400; 3530.4500; 3530.4700; 3550.0100. 2.61 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.62 ARTICLE 1 2.63 GENERAL EDUCATION 2.64 Section 1. Minnesota Statutes 2002, section 123A.06, 2.65 subdivision 3, is amended to read: 3.1 Subd. 3. [HOURS OF INSTRUCTION EXEMPTION.] Notwithstanding 3.2 any law to the contrary, the center programs must be available 3.4 throughout the entire year.Pupils in a center may receive3.5instruction for more than or less than the daily number of hours3.6required by the rules of the commissioner of children, families,3.7and learning. However, a pupil must receive instruction each3.8year for at least the total number of instructional hours3.9required by statutes and rules.A center may petition the state 3.10 board under Minnesota Rules, part 3500.1000, for exemption from 3.11 other rules. 3.12 Sec. 2. Minnesota Statutes 2002, section 123A.18, 3.13 subdivision 2, is amended to read: 3.14 Subd. 2. [EXTENDED YEAR INSTRUCTION.] The agreement may 3.15 provide opportunities for pupils to receive instruction 3.16 throughout the entire year and for teachers to coordinate 3.17 educational opportunities and provide instruction throughout the 3.18 entire year.Pupils may receive instruction for more than or3.19less than the daily number of hours required by the rules of the3.20commissioner of children, families, and learning. However, the3.21pupil must receive instruction each year for at least the total3.22number of instructional hours required by statutes and rules.A 3.23 teacher who is employed for the extended year may develop, in 3.24 consultation with pupils and parents, individual educational 3.25 programs for not more than 125 pupils. 3.26 Sec. 3. Minnesota Statutes 2002, section 123A.73, 3.27 subdivision 3, is amended to read: 3.28 Subd. 3. [VOLUNTARY DISSOLUTION; REFERENDUM REVENUE.] As 3.29 of the effective date of the voluntary dissolution of a district 3.30 and its attachment to one or more existing districts pursuant to 3.31 section 123A.46, the authorization for all referendum revenues 3.32 previously approved by the voters of all affected districts for 3.33 those districts pursuant to section 126C.17, subdivision 9, or 3.34 its predecessor provision, is canceled. However, if all of the 3.35 territory of any independent district is included in the 3.36 enlarged district, and if the adjusted net tax capacity of 3.37 taxable property in that territory comprises 90 percent or more 4.1 of the adjusted net tax capacity of all taxable property in an 4.2 enlarged district, the enlarged district's referendum revenue 4.3 shall be determined as follows: 4.4If the referendum revenue previously approved in the4.5preexisting district is authorized as a tax rate, the referendum4.6revenue in the enlarged district is the tax rate times the net4.7tax capacity of the enlarged district. If referendum revenue4.8previously approved in the preexisting district is authorized as4.9revenue per resident pupil unit,The referendum revenue shall be 4.10 the revenue per resident marginal cost pupil unit times the 4.11 number of resident marginal cost pupil units in the enlarged 4.12 district.If referendum revenue in the preexisting district is4.13authorized both as a tax rate and as revenue per resident pupil4.14unit, the referendum revenue in the enlarged district shall be4.15the sum of both plus any referendum revenue in the preexisting4.16district authorized as a dollar amount.Any new referendum 4.17 revenue shall be authorized only after approval is granted by 4.18 the voters of the entire enlarged district in an election 4.19 pursuant to section 126C.17, subdivision 9. 4.20 Sec. 4. Minnesota Statutes 2002, section 123A.73, 4.21 subdivision 4, is amended to read: 4.22 Subd. 4. [CONSOLIDATION; MAXIMUM AUTHORIZED REFERENDUM 4.23 REVENUES.] As of the effective date of a consolidation pursuant 4.24 to section 123A.48, if the plan for consolidation so provides, 4.25 or if the plan for consolidation makes no provision concerning 4.26 referendum revenues, the authorization for all referendum 4.27 revenues previously approved by the voters of all affected 4.28 districts for those districts pursuant to section 126C.17, 4.29 subdivision 9, or its predecessor provision shall be 4.30 recalculated as provided in this subdivision. The referendum 4.31 revenue authorization for the newly created district shall be 4.32 thenet tax capacity raterevenue per resident marginal cost 4.33 pupil unit that would raise an amount equal to the combined 4.34 dollar amount of the referendum revenues authorized by each of 4.35 the component districts for the year preceding the 4.36 consolidation, unless the referendum revenue authorization of 5.1 the newly created district is subsequently modified pursuant to 5.2 section 126C.17, subdivision 9.If the referendum revenue5.3authorizations for each of the component districts were limited5.4to a specified number of years,The referendum revenue 5.5 authorization for the newly created district shall continue for 5.6 a period of time equal to the longest period authorized for any 5.7 component district.If the referendum revenue authorization of5.8any component district is not limited to a specified number of5.9years, the referendum revenue authorization for the newly5.10created district shall not be limited to a specified number of5.11years.5.12 Sec. 5. Minnesota Statutes 2002, section 123A.73, 5.13 subdivision 5, is amended to read: 5.14 Subd. 5. [ALTERNATIVE METHOD.] As of the effective date of 5.15 a consolidation pursuant to section 123A.48, if the plan for 5.16 consolidation so provides, the authorization for all referendum 5.17 revenues previously approved by the voters of all affected 5.18 districts for those districts pursuant to section 126C.17, 5.19 subdivision 9, or its predecessor provision shall be combined as 5.20 provided in this subdivision. The referendum revenue 5.21 authorization for the newly created district may be any 5.22 allowance per resident marginal cost pupil unit provided in the 5.23 plan for consolidation, but may not exceed the allowance per 5.24 resident marginal cost pupil unit that would raise an amount 5.25 equal to the combined dollar amount of the referendum revenues 5.26 authorized by each of the component districts for the year 5.27 preceding the consolidation.If the referendum revenue5.28authorizations for each of the component districts were limited5.29to a specified number of years,The referendum revenue 5.30 authorization for the newly created district shall continue for 5.31 a period of time equal to the longest period authorized for any 5.32 component district.If the referendum revenue authorization of5.33any component district is not limited to a specified number of5.34years, the referendum revenue authorization for the newly5.35created district shall not be limited to a specified number of5.36years.The referendum revenue authorization for the newly 6.1 created district may be modified pursuant to section 126C.17, 6.2 subdivision 9. 6.3 Sec. 6. Minnesota Statutes 2002, section 123B.90, 6.4 subdivision 2, is amended to read: 6.5 Subd. 2. [STUDENT TRAINING.] (a) Each district must 6.6 provide public school pupils enrolled ingradeskindergarten 6.7 through grade 10 with age-appropriate school bus safety training.6.8The training must be results-oriented and shall consist of both6.9classroom instruction and practical training using a school6.10bus. Upon completing the training, a student shall be able to6.11demonstrate knowledge and understanding, as described in this 6.12 section, ofat leastthe followingcompetencies andconcepts: 6.13 (1) transportation by school bus is a privilege and not a 6.14 right; 6.15 (2) district policies for student conduct and school bus 6.16 safety; 6.17 (3) appropriate conduct while on the school bus; 6.18 (4) the danger zones surrounding a school bus; 6.19 (5) procedures for safely boarding and leaving a school 6.20 bus; 6.21 (6) procedures for safe street or road crossing; and 6.22 (7) school bus evacuationand other emergency procedures;6.23and6.24(8) appropriate training on the use of lap belts or lap and6.25shoulder belts, if the district uses buses equipped with lap6.26belts or lap and shoulder belts. 6.27 (b) Each nonpublic school located within the district must 6.28 provide all nonpublic school pupils enrolled ingrades6.29 kindergarten through grade 10 who are transported by school bus 6.30 at public expense and attend school within the district's 6.31 boundaries with training as required in paragraph (a).The6.32school district shall make a bus available for the practical6.33training if the district transports the nonpublic students.6.34Each nonpublic school shall provide the instruction.6.35 (c)AllStudents enrolled ingradeskindergarten through36.36 grade 6 who are transported by school bus and are enrolled 7.1 during the first or second week of school mustdemonstrate7.2achievement ofreceive the school bus safety training 7.3 competencies by the end of the third week of school.All7.4 Students enrolled in grades47 through 10 who are transported 7.5 by school bus and are enrolled during the first or second week 7.6 of school and have not received school bus safety training in 7.7 kindergarten through grade 6 mustdemonstrate achievement7.8ofreceive thecompetenciestraining by the end of the sixth 7.9 week of school. Students in grades 9 and 10 must receive 7.10 training in the laws and proper procedures when operating a 7.11 motor vehicle in the vicinity of a school bus. Students 7.12 enrolled ingradeskindergarten through grade 10 who enroll in a 7.13 school after the second week of school and are transported by 7.14 school bus and have not received training in their previous 7.15 school district shall undergo school bus safety trainingand7.16demonstrate achievement of the school bus safety competenciesor 7.17 receive bus safety instructional materials within four weeks of 7.18 the first day of attendance. The school transportation safety 7.19 director in each district must certify to thecommissioner7.20 superintendent of schools annually that all students transported 7.21 by school bus within the district havesatisfactorily7.22demonstrated knowledge and understanding ofreceived the school 7.23 bus safetycompetenciestraining according to this sectionor7.24provide an explanation for a student's failure to demonstrate7.25the competencies. The principal or other chief administrator of 7.26 each nonpublic school must certify annually to the school 7.27 transportation safety director of the district in which the 7.28 school is located thatall ofthe school's students transported 7.29 by school bus at public expense have received training according 7.30 to this section.A district may deny transportation to a7.31student who fails to demonstrate the competencies, unless the7.32student is unable to achieve the competencies due to a7.33disability, or to a student who attends a nonpublic school that7.34fails to provide training as required by this subdivision.7.35 (d) A district and a nonpublic school with students 7.36 transported by school bus at public expensemust, to the extent8.1possible,may provide kindergarten pupils with bus safety 8.2 training before the first day of school. 8.3 (e) A district and a nonpublic school with students 8.4 transported by school bus at public expensemustmay also 8.5 provide student safety education for bicycling and pedestrian 8.6 safety, for students enrolled ingradeskindergarten through 8.7 grade 5. 8.8 (f) A district and a nonpublic school with students 8.9 transported by school bus at public expense must make reasonable 8.10 accommodations for the school bus, bicycle, and pedestrian8.11 safety training of pupils known to speak English as a second 8.12 language and pupils with disabilities. 8.13 (g) The district must provide students enrolled in 8.14 kindergarten through grade 3 school bus safety training twice 8.15 during the school year. 8.16 Sec. 7. Minnesota Statutes 2002, section 123B.90, 8.17 subdivision 3, is amended to read: 8.18 Subd. 3. [MODEL TRAINING PROGRAM.] The commissioner shall 8.19 develop a comprehensive model school bus safety training program 8.20 for pupils who ride the bus that includes bus safety curriculum 8.21 for both classroom and practical instruction, methods for8.22assessing attainment of school bus safety competencies,and 8.23 age-appropriate instructional materials.The model training8.24program for students riding buses with lap belts or lap and8.25shoulder belts must include information on the appropriate use8.26of lap belts or lap and shoulder belts. The program must be8.27adaptable for use by students with disabilities.8.28 Sec. 8. Minnesota Statutes 2002, section 123B.91, 8.29 subdivision 1, is amended to read: 8.30 Subdivision 1. [COMPREHENSIVE POLICY.](a)Each district 8.31 shall develop and implement a comprehensive, written policy 8.32 governing pupil transportation safety, including transportation 8.33 of nonpublic school students, when applicable. The policy, at 8.34 minimum, must contain: 8.35 (1) provisions for appropriate student bus safety training 8.36 under section 123B.90; 9.1 (2) rules governing student conduct on school buses and in 9.2 school bus loading and unloading areas; 9.3 (3) a statement of parent or guardian responsibilities 9.4 relating to school bus safety; 9.5 (4)provisions for notifying students and parents or9.6guardians of their responsibilities and the rules, including the9.7district's seat belt policy, if applicable;9.8(5)an intradistrict system for reporting school bus 9.9 accidents or misconduct and a system for dealing with local law 9.10 enforcement officials in cases of criminal conduct on a school 9.11 bus; 9.12(6)(5) a discipline policy to address violations of school 9.13 bus safety rules, including procedures for revoking a student's 9.14 bus riding privileges in cases of serious or repeated 9.15 misconduct; 9.16(7)(6) a system for integrating school bus misconduct 9.17 records with other discipline records; 9.18(8) a statement of bus driver duties;9.19(9)(7) where applicable, provisions governing bus monitor 9.20 qualifications, training, and duties; 9.21(10)(8) rules governing the use and maintenance of type 9.22 III vehicles, drivers of type III vehicles, qualifications to 9.23 drive a type III vehicle, qualifications for a type III vehicle, 9.24 and the circumstances under which a student may be transported 9.25 in a type III vehicle; 9.26(11)(9) operating rules and procedures; 9.27(12) provisions for annual bus driver in-service training9.28and evaluation;9.29(13)(10) emergency procedures; 9.30(14)(11) a system for maintaining and inspecting 9.31 equipment; and 9.32(15)(12) any other requirements of the school district, if9.33any, that exceed state law minimum requirements for school bus9.34operations; and9.35(16) requirements for basic first aid training, which must9.36include the Heimlich maneuver and procedures for dealing with10.1obstructed airways, shock, bleeding, and seizures. 10.2(b) Districts are encouraged to use the model policy10.3developed by the Minnesota school boards association, the10.4department of public safety, and the department of children,10.5families, and learning, as well as the current edition of the10.6"National Standards for School Transportation," in developing10.7safety policies. Each district shall review its policy annually10.8to ensure that it conforms to law.10.9 Sec. 9. Minnesota Statutes 2002, section 123B.92, 10.10 subdivision 1, is amended to read: 10.11 Subdivision 1. [DEFINITIONS.] For purposes of this section 10.12 and section 125A.76, the terms defined in this subdivision have 10.13 the meanings given to them. 10.14 (a) "Actual expenditure per pupil transported in the 10.15 regular and excess transportation categories" means the quotient 10.16 obtained by dividing: 10.17 (1) the sum of: 10.18 (i) all expenditures for transportation in the regular 10.19 category, as defined in paragraph (b), clause (1), and the 10.20 excess category, as defined in paragraph (b), clause (2), plus 10.21 (ii) an amount equal to one year's depreciation on the 10.22 district's school bus fleet and mobile units computed on a 10.23 straight line basis at the rate of 15 percent per year for 10.24 districts operating a program under section 124D.128 for grades 10.25 1 to 12 for all students in the district and 12-1/2 percent per 10.26 year for other districts of the cost of the fleet, plus 10.27 (iii) an amount equal to one year's depreciation on the 10.28 district's type three school buses, as defined in section 10.29 169.01, subdivision 6, clause (5), which must be used a majority 10.30 of the time for pupil transportation purposes, computed on a 10.31 straight line basis at the rate of 20 percent per year of the 10.32 cost of the type three school buses by: 10.33 (2) the number of pupils eligible for transportation in the 10.34 regular category, as defined in paragraph (b), clause (1), and 10.35 the excess category, as defined in paragraph (b), clause (2). 10.36 (b) "Transportation category" means a category of 11.1 transportation service provided to pupils as follows: 11.2 (1) Regular transportation is: 11.3 (i) transportation to and from school during the regular 11.4 school year for resident elementary pupils residing one mile or 11.5 more from the public or nonpublic school they attend, and 11.6 resident secondary pupils residing two miles or more from the 11.7 public or nonpublic school they attend, excluding desegregation 11.8 transportation and noon kindergarten transportation; but with 11.9 respect to transportation of pupils to and from nonpublic 11.10 schools, only to the extent permitted by sections 123B.84 to 11.11 123B.87; 11.12 (ii) transportation of resident pupils to and from language 11.13 immersion programs; 11.14 (iii) transportation of a pupil who is a custodial parent 11.15 and that pupil's child between the pupil's home and the child 11.16 care provider and between the provider and the school, if the 11.17 home and provider are within the attendance area of the school; 11.18and11.19 (iv) transportation to and from or board and lodging in 11.20 another district, of resident pupils of a district without a 11.21 secondary school; and 11.22 (v) transportation to and from school during the regular 11.23 school year required under subdivision 3 for nonresident 11.24 elementary pupils when the distance from the attendance area 11.25 border to the public school is one mile or more, and for 11.26 nonresident secondary pupils when the distance from the 11.27 attendance area border to the public school is two miles or 11.28 more, excluding desegregation transportation and noon 11.29 kindergarten transportation. 11.30 For the purposes of this paragraph, a district may 11.31 designate a licensed day care facility, respite care facility, 11.32 the residence of a relative, or the residence of a person chosen 11.33 by the pupil's parent or guardian as the home of a pupil for 11.34 part or all of the day, if requested by the pupil's parent or 11.35 guardian, and if that facility or residence is within the 11.36 attendance area of the school the pupil attends. 12.1 (2) Excess transportation is: 12.2 (i) transportation to and from school during the regular 12.3 school year for resident secondary pupils residing at least one 12.4 mile but less than two miles from the public or nonpublic school 12.5 they attend, and transportation to and from school for resident 12.6 pupils residing less than one mile from school who are 12.7 transported because of extraordinary traffic, drug, or crime 12.8 hazards; and 12.9 (ii) transportation to and from school during the regular 12.10 school year required under subdivision 3 for nonresident 12.11 secondary pupils when the distance from the attendance area 12.12 border to the school is at least one mile but less than two 12.13 miles from the public school they attend, and for nonresident 12.14 pupils when the distance from the attendance area border to the 12.15 school is less than one mile from the school and who are 12.16 transported because of extraordinary traffic, drug, or crime 12.17 hazards. 12.18 (3) Desegregation transportation is transportation within 12.19 and outside of the district during the regular school year of 12.20 pupils to and from schools located outside their normal 12.21 attendance areas under a plan for desegregation mandated by the 12.22 commissioner or under court order. 12.23 (4) "Transportation services for pupils with disabilities" 12.24 is: 12.25 (i) transportation of pupils with disabilities who cannot 12.26 be transported on a regular school bus between home or a respite 12.27 care facility and school; 12.28 (ii) necessary transportation of pupils with disabilities 12.29 from home or from school to other buildings, including centers 12.30 such as developmental achievement centers, hospitals, and 12.31 treatment centers where special instruction or services required 12.32 by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 12.33 are provided, within or outside the district where services are 12.34 provided; 12.35 (iii) necessary transportation for resident pupils with 12.36 disabilities required by sections 125A.12, and 125A.26 to 13.1 125A.48; 13.2 (iv) board and lodging for pupils with disabilities in a 13.3 district maintaining special classes; 13.4 (v) transportation from one educational facility to another 13.5 within the district for resident pupils enrolled on a 13.6 shared-time basis in educational programs, and necessary 13.7 transportation required by sections 125A.18, and 125A.26 to 13.8 125A.48, for resident pupils with disabilities who are provided 13.9 special instruction and services on a shared-time basis; 13.10 (vi) transportation for resident pupils with disabilities 13.11 to and from board and lodging facilities when the pupil is 13.12 boarded and lodged for educational purposes; and 13.13 (vii) services described in clauses (i) to (vi), when 13.14 provided for pupils with disabilities in conjunction with a 13.15 summer instructional program that relates to the pupil's 13.16 individual education plan or in conjunction with a learning year 13.17 program established under section 124D.128. 13.18 (5) "Nonpublic nonregular transportation" is: 13.19 (i) transportation from one educational facility to another 13.20 within the district for resident pupils enrolled on a 13.21 shared-time basis in educational programs, excluding 13.22 transportation for nonpublic pupils with disabilities under 13.23 clause (4); 13.24 (ii) transportation within district boundaries between a 13.25 nonpublic school and a public school or a neutral site for 13.26 nonpublic school pupils who are provided pupil support services 13.27 pursuant to section 123B.44; and 13.28 (iii) late transportation home from school or between 13.29 schools within a district for nonpublic school pupils involved 13.30 in after-school activities. 13.31 (c) "Mobile unit" means a vehicle or trailer designed to 13.32 provide facilities for educational programs and services, 13.33 including diagnostic testing, guidance and counseling services, 13.34 and health services. A mobile unit located off nonpublic school 13.35 premises is a neutral site as defined in section 123B.41, 13.36 subdivision 13. 14.1 Sec. 10. Minnesota Statutes 2002, section 123B.92, 14.2 subdivision 3, is amended to read: 14.3 Subd. 3. [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 14.4 that enrolls nonresident pupils in programs under sections 14.5 124D.03, 124D.06,124D.07,124D.08, 123A.05 to 123A.08, and 14.6 124D.68, must provide authorized transportation to the pupil 14.7 within the attendance area for the school that the pupil attends 14.8 at the same level of service that is provided to resident pupils 14.9 within the attendance area. The resident district need not 14.10 provide or pay for transportation between the pupil's residence 14.11 and the district's border. 14.12 Sec. 11. Minnesota Statutes 2002, section 123B.92, 14.13 subdivision 9, is amended to read: 14.14 Subd. 9. [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 14.15 district's nonpublic pupil transportation aid for the 1996-1997 14.16 and later school years for transportation services for nonpublic 14.17 school pupils according to sections 123B.88, 123B.84 to 123B.86, 14.18 and this section, equals the sum of the amounts computed in 14.19 paragraphs (b) and (c). This aid does not limit the obligation 14.20 to transport pupils under sections 123B.84 to 123B.87. 14.21 (b) For regular and excess transportation according to 14.22 subdivision 1, paragraph (b), clauses (1) and (2), an amount 14.23 equal to the product of: 14.24 (1) the district's actual expenditure per pupil transported 14.25 in the regular and excess transportation categories during the 14.26 second preceding school year; times 14.27 (2) the number of nonpublic school pupils residing in the 14.28 district who receive regular or excess transportation service or 14.29 reimbursement for the current school year; times 14.30 (3) the ratio of the formula allowance pursuant to section 14.31 126C.10, subdivision 2, for the current school year to the 14.32 formula allowance pursuant to section 126C.10, subdivision 2, 14.33 for the second preceding school year. 14.34 (c) For nonpublic nonregular transportation according to 14.35 subdivision 1, paragraph (b), clause (5), an amount equal to the 14.36 product of: 15.1 (1) the district's actual expenditure for nonpublic 15.2 nonregular transportation during the second preceding school 15.3 year; times 15.4 (2) the ratio of the formula allowance pursuant to section 15.5 126C.10, subdivision 2, for the current school year to the 15.6 formula allowance pursuant to section 126C.10, subdivision 2, 15.7 for the second preceding school year. 15.8 (d) Notwithstanding the amount of the formula allowance for 15.9 fiscalyears 2000, 2001, and 2002year 2004 in section 126C.10, 15.10 subdivision 2, the commissioner shall use the amount of the 15.11 formula allowance for the current yearplus $87minus $415 in 15.12 determining the nonpublic pupil transportation revenue in 15.13 paragraphs (b) and (c) for fiscal year2000, and the amount of15.14the formula allowance less $110 in determining the nonpublic15.15pupil transportation revenue in paragraphs (b) and (c) for15.16fiscal years 2001 and 20022004. 15.17 [EFFECTIVE DATE.] This section is effective for revenue for 15.18 fiscal year 2004. 15.19 Sec. 12. Minnesota Statutes 2002, section 124D.09, 15.20 subdivision 13, is amended to read: 15.21 Subd. 13. [FINANCIAL ARRANGEMENTS.] For a pupil enrolled 15.22 in a course under this section, the department must make 15.23 payments according to this subdivision for courses that were 15.24 taken for secondary credit. 15.25 The department must not make payments to a school district 15.26 or post-secondary institution for a course taken for 15.27 post-secondary credit only. The department must not make 15.28 payments to a post-secondary institution for a course from which 15.29 a student officially withdraws during the first 14 days of the 15.30 quarter or semester or who has been absent from the 15.31 post-secondary institution for the first 15 consecutive school 15.32 days of the quarter or semester and is not receiving instruction 15.33 in the home or hospital. 15.34 A post-secondary institution shall receive the following: 15.35 (1) for an institution granting quarter credit, the 15.36 reimbursement per credit hour shall be an amount equal to 88 16.1 percent of the product of the formula allowance minus $415, 16.2 multiplied by 1.3, and divided by 45; or 16.3 (2) for an institution granting semester credit, the 16.4 reimbursement per credit hour shall be an amount equal to 88 16.5 percent of the product of the general revenue formula 16.6 allowance minus $415, multiplied by 1.3, and divided by 30. 16.7 The department must pay to each post-secondary institution 16.8 100 percent of the amount in clause (1) or (2) within 30 days of 16.9 receiving initial enrollment information each quarter or 16.10 semester. If changes in enrollment occur during a quarter or 16.11 semester, the change shall be reported by the post-secondary 16.12 institution at the time the enrollment information for the 16.13 succeeding quarter or semester is submitted. At any time the 16.14 department notifies a post-secondary institution that an 16.15 overpayment has been made, the institution shall promptly remit 16.16 the amount due. 16.17 Sec. 13. Minnesota Statutes 2002, section 124D.128, 16.18 subdivision 6, is amended to read: 16.19 Subd. 6. [REVENUE COMPUTATION AND REPORTING.] Aid and levy 16.20 revenue computations must be based on the total number of hours 16.21 of education programs for pupils in average daily membership for 16.22 each fiscal year. Average daily membership shall be computed 16.23 under section 126C.05, subdivision 15. Hours of participation 16.24 that occur after the close of the regular 2003-2004 16.25 instructional year and before July 1, 2004, must be attributed 16.26 to the following fiscal year. For revenue computation purposes, 16.27 the learning year program shall generate revenue based on the 16.28 formulas for the fiscal year in which the services are 16.29 provided. The dates a participating pupil is promoted must be 16.30 reported in a timely manner to the department. 16.31 Sec. 14. Minnesota Statutes 2002, section 124D.59, 16.32 subdivision 2, is amended to read: 16.33 Subd. 2. [PUPIL OF LIMITED ENGLISH PROFICIENCY.] 16.34 (a) "Pupil of limited English proficiency" means a pupil in 16.35 kindergarten through grade 12 who meets the following 16.36 requirements: 17.1 (1) the pupilin kindergarten through grade 12, as declared 17.2 by a parent or guardian first learned a language other than 17.3 English, comes from a home where the language usually spoken is 17.4 other than English, or usually speaks a language other than 17.5 English; and 17.6 (2)for a pupil in kindergarten through grade 2,the pupil 17.7 is determined by developmentally appropriate measures, which 17.8 might include observations, teacher judgment, parent 17.9 recommendations, or developmentally appropriate assessment 17.10 instruments, to lack the necessary English skills to participate 17.11 fully in classes taught in English; or. 17.12(3) the(b) Notwithstanding paragraph (a), a pupil in 17.13 grades34 through 12scoreswho was enrolled in a Minnesota 17.14 public school on the dates during the previous school year when 17.15 a commissioner provided assessment that measures the pupil's 17.16 emerging academic English was administered, shall not be counted 17.17 as a pupil of limited English proficiency in calculating limited 17.18 English proficiency pupil units under section 126C.05, 17.19 subdivision 17, and shall not generate state limited English 17.20 proficiency aid under section 124D.65, subdivision 5, unless the 17.21 pupil scored below the state cutoff score on an assessment 17.22 measuring emerging academic English provided by the commissioner 17.23 during the previous school year. 17.24 (c) Notwithstanding paragraphs (a) and (b), a pupil in 17.25 kindergarten through grade 12 shall not be counted as a pupil of 17.26 limited English proficiency in calculating limited English 17.27 proficiency pupil units under section 126C.05, subdivision 17, 17.28 and shall not generate state limited English proficiency aid 17.29 under section 124D.65, subdivision 5, if: 17.30 (i) the pupil is not enrolled during the current fiscal 17.31 year in an educational program for pupils of limited English 17.32 proficiency in accordance with sections 124D.58 to 124D.64; or 17.33 (ii) the pupil has generated seven or more years of average 17.34 daily membership in Minnesota public schools since July 1, 1996. 17.35 A pupil that has generated more than four years but less 17.36 than five years of average daily membership in Minnesota public 18.1 schools since July 1, 1996, counts as .75 pupils. A pupil that 18.2 has generated more than five years but less than six years of 18.3 average daily membership in Minnesota schools since July 1, 18.4 1996, counts as .50 pupils. A pupil that has generated more 18.5 than six years but less than seven years of average daily 18.6 membership in Minnesota schools since July 1, 1996, counts as 18.7 .25 pupils. 18.8 Sec. 15. Minnesota Statutes 2002, section 124D.65, 18.9 subdivision 5, is amended to read: 18.10 Subd. 5. [SCHOOL DISTRICT LEP REVENUE.] (a)A school18.11district's limited English proficiency programs revenue for18.12fiscal year 2000 equals the state total limited English18.13proficiency programs revenue, minus the amount determined under18.14paragraph (b), times the ratio of the district's adjusted18.15limited English proficiency programs base revenue to the state18.16total adjusted limited English proficiency programs base revenue.18.17(b) Notwithstanding paragraph (a), if the limited English18.18proficiency programs base revenue for a district equals zero,18.19the limited English proficiency programs revenue equals the sum18.20of the following amounts, computed using current year data:18.21(1) 68 percent of the salary of one full-time equivalent18.22teacher for each 40 pupils of limited English proficiency18.23enrolled, or 68 percent of the salary of one-half of a full-time18.24teacher in a district with 20 or fewer pupils of limited English18.25proficiency enrolled; and18.26(2) for supplies and equipment purchased or rented for use18.27in the instruction of pupils of limited English proficiency an18.28amount equal to 47 percent of the sum actually spent by the18.29district but not to exceed an average of $47 in any one school18.30year for each pupil of limited English proficiency receiving18.31instruction.18.32(c)A district's limited English proficiency programs 18.33 revenuefor fiscal year 2001 and laterequals the product 18.34 of$584(1) $650 in fiscal year 2004 and $675 in fiscal year 18.35 2005 and later times (2) the greater of 20 or thenumber of18.36 adjusted marginal cost average daily membership of eligible 19.1 pupils of limited English proficiency enrolled in the district 19.2 during the current fiscal year. 19.3(d)(b) A pupil ceases to generate state limited English 19.4 proficiency aid in the school year following the school year in 19.5 which the pupil attains the state cutoff score on a 19.6 commissioner-provided assessment that measures the pupil's 19.7 emerging academic English. 19.8 Sec. 16. Minnesota Statutes 2002, section 126C.05, 19.9 subdivision 1, is amended to read: 19.10 Subdivision 1. [PUPIL UNIT.] Pupil units for each 19.11 Minnesota resident pupil in average daily membership enrolled in 19.12 the district of residence, in another district under sections 19.13 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 19.14 124D.68; in a charter school under section 124D.10; or for whom 19.15 the resident district pays tuition under section 123A.18, 19.16 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 19.17 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 19.18 125A.65, shall be counted according to this subdivision. 19.19 (a) A prekindergarten pupil with a disability who is 19.20 enrolled in a program approved by the commissioner and has an 19.21 individual education plan is counted as the ratio of the number 19.22 of hours of assessment and education service to 825 times 1.25 19.23 with a minimum average daily membership of 0.28, but not more 19.24 than 1.25 pupil units. 19.25 (b) A prekindergarten pupil who is assessed but determined 19.26 not to be handicapped is counted as the ratio of the number of 19.27 hours of assessment service to 825 times 1.25. 19.28 (c) A kindergarten pupil with a disability who is enrolled 19.29 in a program approved by the commissioner is counted as the 19.30 ratio of the number of hours of assessment and education 19.31 services required in the fiscal year by the pupil's individual 19.32 education program plan to 875, but not more than one. 19.33 (d) A kindergarten pupil who is not included in paragraph 19.34 (c) is counted as.557.50 of a pupil unitfor fiscal year 200019.35and thereafter. 19.36 (e) A pupil who is in any of grades 1 to 3 is counted as 20.11.1151.00 pupilunits for fiscal year 2000 and thereafterunit. 20.2 (f) A pupil who is any of grades 4 to 6 is counted as1.0620.3 1.00 pupilunits for fiscal year 1995 and thereafterunit. 20.4 (g) A pupil who is in any of grades 7 to 12 is counted as 20.5 1.3 pupil units. 20.6 (h) A pupil who is in the post-secondary enrollment options 20.7 program is counted as 1.3 pupil units. 20.8 [EFFECTIVE DATE.] This section is effective for revenue for 20.9 fiscal year 2004. 20.10 Sec. 17. Minnesota Statutes 2002, section 126C.05, 20.11 subdivision 8, is amended to read: 20.12 Subd. 8. [AVERAGE DAILY MEMBERSHIP.] (a) Membership for 20.13 pupils in grades kindergarten through 12 and for prekindergarten 20.14 pupils with disabilities shall mean the number of pupils on the 20.15 current roll of the school, counted from the date of entry until 20.16 withdrawal. The date of withdrawal shall mean the day the pupil 20.17 permanently leaves the school or the date it is officially known 20.18 that the pupil has left or has been legally excused. However, a 20.19 pupil, regardless of age, who has been absent from school for 15 20.20 consecutive school days during the regular school year or for 20.21 five consecutive school days during summer school or 20.22 intersession classes of flexible school year programs without 20.23 receiving instruction in the home or hospital shall be dropped 20.24 from the roll and classified as withdrawn. Nothing in this 20.25 section shall be construed as waiving the compulsory attendance 20.26 provisions cited in section 120A.22. Average daily membership 20.27 equals the sum for all pupils of the number of days of the 20.28 school year each pupil is enrolled in the district's schools 20.29 divided by the number of days the schools are in session. Days 20.30 of summer school or intersession classes of flexible school year 20.31 programs are only included in the computation of membership for 20.32 pupils with a disability not appropriately served primarily in 20.33 the regular classroom. A student must not be counted as more 20.34 than 1.2 pupils in average daily membership under this section. 20.35 When the initial total average daily membership exceeds 1.2 for 20.36 a pupil enrolled in more than one school district during the 21.1 fiscal year, each district's average daily membership must be 21.2 reduced proportionately. 21.3 (b) A student must not be counted as more than one pupil in 21.4 average daily membership except for purposes of section 126C.10, 21.5 subdivision 2a. 21.6 Sec. 18. Minnesota Statutes 2002, section 126C.05, 21.7 subdivision 14, is amended to read: 21.8 Subd. 14. [COMPUTING PUPIL UNITS FOR A PRIOR YEAR.] In 21.9 computing pupil units for a prior year, the number of pupil 21.10 units shall be adjusted to reflect any change for the current 21.11 year in relative weightings by grade level or category of 21.12 special assistance, any change in measurement from average daily 21.13 attendance to average daily membership, any change in the limit 21.14 on average daily membership that can be generated by a pupil for 21.15 a fiscal year as provided in subdivisions 8 and 15, and any 21.16 change in school district boundaries, but not for the addition 21.17 for the first time in the current year of a specified category 21.18 of special assistance as provided in subdivision 1, clause (4). 21.19 Sec. 19. Minnesota Statutes 2002, section 126C.05, 21.20 subdivision 15, is amended to read: 21.21 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 21.22 enrolled in a learning year program under section 124D.128, an 21.23 area learning center under sections 123A.05 and 123A.06, an 21.24 alternative program approved by the commissioner, or a contract 21.25 alternative program under section 124D.68, subdivision 3, 21.26 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 21.27 school year for a secondary student, more than 935 hours in a 21.28 school year for an elementary student, or more than 425 hours in 21.29 a school year for a kindergarten student without a disability, 21.30 that pupil may be counted as more than one pupil in average 21.31 daily membership for purposes of section 126C.10, subdivision 21.32 2a. The amount in excess of one pupil must be determined by the 21.33 ratio of the number of hours of instruction provided to that 21.34 pupil in excess of: (i) the greater of 1,020 hours or the 21.35 number of hours required for a full-time secondary pupil in the 21.36 district to 1,020 for a secondary pupil; (ii) the greater of 935 22.1 hours or the number of hours required for a full-time elementary 22.2 pupil in the district to 935 for an elementary pupil in grades 1 22.3 through 6; and (iii) the greater of 425 hours or the number of 22.4 hours required for a full-time kindergarten student without a 22.5 disability in the district to 425 for a kindergarten student 22.6 without a disability. Hours that occur after the close of the 22.7 instructional year in June shall be attributable to the 22.8 following fiscal year. A kindergarten student must not be 22.9 counted as more than 1.2 pupils in average daily membership 22.10 under this subdivision. A student in grades 1 through 12 must 22.11 not be counted as more than1.51.2 pupils in average daily 22.12 membership under this subdivision. 22.13 (b)(i) To receive general education revenue for a pupil in 22.14 an alternative program that has an independent study component, 22.15 a district must meet the requirements in this paragraph. The 22.16 district must develop, for the pupil, a continual learning plan 22.17 consistent with section 124D.128, subdivision 3. Each school 22.18 district that has a state-approved public alternative program 22.19 must reserve revenue in an amount equal to at least 90 percent 22.20 of the district average general education revenue per pupil unit 22.21 less compensatory revenue per pupil unit times the number of 22.22 pupil units generated by students attending a state-approved 22.23 public alternative program. The amount of reserved revenue 22.24 available under this subdivision may only be spent for program 22.25 costs associated with the state-approved public alternative 22.26 program. Compensatory revenue must be allocated according to 22.27 section 126C.15, subdivision 2. 22.28 (ii) General education revenue for a pupil in an approved 22.29 alternative program without an independent study component must 22.30 be prorated for a pupil participating for less than a full year, 22.31 or its equivalent. The district must develop a continual 22.32 learning plan for the pupil, consistent with section 124D.128, 22.33 subdivision 3. Each school district that has a state-approved 22.34 public alternative program must reserve revenue in an amount 22.35 equal to at least 90 percent of the district average general 22.36 education revenue per pupil unit less compensatory revenue per 23.1 pupil unit times the number of pupil units generated by students 23.2 attending a state-approved public alternative program. The 23.3 amount of reserved revenue available under this subdivision may 23.4 only be spent for program costs associated with the 23.5 state-approved public alternative program. Compensatory revenue 23.6 must be allocated according to section 126C.15, subdivision 2. 23.7 (iii) General education revenue for a pupil in an approved 23.8 alternative program that has an independent study component must 23.9 be paid for each hour of teacher contact time and each hour of 23.10 independent study time completed toward a credit or graduation 23.11 standards necessary for graduation. Average daily membership 23.12 for a pupil shall equal the number of hours of teacher contact 23.13 time and independent study time divided by 1,020. 23.14 (iv) For an alternative program having an independent study 23.15 component, the commissioner shall require a description of the 23.16 courses in the program, the kinds of independent study involved, 23.17 the expected learning outcomes of the courses, and the means of 23.18 measuring student performance against the expected outcomes. 23.19 Sec. 20. Minnesota Statutes 2002, section 126C.05, 23.20 subdivision 16, is amended to read: 23.21 Subd. 16. [FREE AND REDUCED PRICED LUNCHES.] The 23.22 commissioner shall determine the number of children eligible to 23.23 receive either a free or reduced priced lunch on October 1 each 23.24 year. Children enrolled in a building on October 1 and 23.25 determined to be eligible to receive free or reduced price lunch 23.26 byJanuaryDecember 15 ofthe followingthat school year shall 23.27 be counted as eligible on October 1 for purposes of subdivision 23.28 3. The commissioner may use federal definitions for these 23.29 purposes and may adjust these definitions as appropriate. The 23.30 commissioner may adopt reporting guidelines to assure accuracy 23.31 of data counts and eligibility. Districts shall use any 23.32 guidelines adopted by the commissioner. 23.33 Sec. 21. Minnesota Statutes 2002, section 126C.05, 23.34 subdivision 17, is amended to read: 23.35 Subd. 17. [LEP PUPIL UNITS.] (a) Limited English 23.36 proficiency pupil units for fiscal year19982004 and thereafter 24.1 shall be determined according to this subdivision. 24.2 (b) The limited English proficiency concentration 24.3 percentage for a district equals the product of 100 times the 24.4 ratio of: 24.5 (1) the number of eligible pupils of limited English 24.6 proficiency in average daily membership enrolled in the district 24.7 during the current fiscal year; to 24.8 (2) the number of pupils in average daily membership 24.9 enrolled in the district. 24.10 (c) The limited English proficiency pupil units for 24.11 each eligible pupilenrolled in a program for pupilsof limited 24.12 English proficiencyin accordance with sections 124D.58 to24.13124D.64in average daily membership equals the lesser of one or 24.14 the quotient obtained by dividing the limited English 24.15 proficiency concentration percentage for the pupil's district of 24.16 enrollment by 11.5. 24.17 (d) Limited English proficiency pupil units shall be 24.18 counted by the district of enrollment. 24.19 (e) Notwithstanding paragraph (d), for the purposes of this 24.20 subdivision, pupils enrolled in a cooperative or intermediate 24.21 school district shall be counted by the district of residence. 24.22 (f) For the purposes of this subdivision, the terms defined 24.23 in section 124D.59 have the same meaning. 24.24 Sec. 22. Minnesota Statutes 2002, section 126C.10, 24.25 subdivision 1, is amended to read: 24.26 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a)For fiscal24.27year 2002, the general education revenue for each district24.28equals the sum of the district's basic revenue, basic skills24.29revenue, training and experience revenue, secondary sparsity24.30revenue, elementary sparsity revenue, transportation sparsity24.31revenue, total operating capital revenue, equity revenue,24.32transition revenue, and supplemental revenue.24.33(b)For fiscal year 2003and later, the general education 24.34 revenue for each district equals the sum of the district's basic 24.35 revenue, basic skills revenue, training and experience revenue, 24.36 secondary sparsity revenue, elementary sparsity revenue, 25.1 transportation sparsity revenue, total operating capital 25.2 revenue, and equity revenue. 25.3 (b) For fiscal year 2004 and later, the general education 25.4 revenue for each district equals the sum of the district's basic 25.5 revenue, extended time revenue, class size reduction revenue, 25.6 basic skills revenue, secondary sparsity revenue, elementary 25.7 sparsity revenue, transportation sparsity revenue, total 25.8 operating capital revenue, equity revenue, and transition 25.9 revenue. 25.10 Sec. 23. Minnesota Statutes 2002, section 126C.10, is 25.11 amended by adding a subdivision to read: 25.12 Subd. 2a. [EXTENDED TIME REVENUE.] (a) A school district's 25.13 extended time revenue is equal to the product of $4,601 and the 25.14 sum of the adjusted marginal cost pupil units of the district 25.15 for each pupil in average daily membership in excess of 1.0 and 25.16 less than 1.2 according to section 126C.05, subdivision 8. 25.17 (b) A school district's extended time revenue may be used 25.18 for extended day programs, extended week programs, summer 25.19 school, and other programming authorized under the learning year 25.20 program. 25.21 Sec. 24. Minnesota Statutes 2002, section 126C.10, is 25.22 amended by adding a subdivision to read: 25.23 Subd. 2b. [CLASS SIZE REDUCTION REVENUE.] For fiscal year 25.24 2004 and later, a school district's class size reduction revenue 25.25 equals: 25.26 (1) $262 times the sum of adjusted marginal cost pupils in 25.27 average daily membership, according to section 126C.05, 25.28 subdivision 5, in kindergarten; plus 25.29 (2) $529 times the sum of adjusted marginal cost pupils in 25.30 average daily membership, according to section 126C.05, 25.31 subdivision 5, in grades 1 to 3; plus 25.32 (3) $276 times the sum of adjusted marginal cost pupils in 25.33 average daily membership, according to section 126C.05, 25.34 subdivision 5, in grades 4 to 6. 25.35 Sec. 25. Minnesota Statutes 2002, section 126C.10, 25.36 subdivision 3, is amended to read: 26.1 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] (a) For fiscal 26.2 year 2004 and later, the compensatory education revenue for each 26.3 building in the district equalsthe formula allowance$4,150 26.4 times the compensation revenue pupil units computed according to 26.5 section 126C.05, subdivision 3. 26.6 (b) A district's compensatory education revenue equals the 26.7 greater of the amount computed in paragraph (a) or the minimum 26.8 compensatory allowance times the number of compensatory pupils 26.9 computed according to section 126C.05, subdivision 3, paragraph 26.10 (a), clause (1). For fiscal years 2004 and 2005, the minimum 26.11 compensatory allowance equals $500. The minimum compensatory 26.12 allowance for each subsequent year equals the previous year's 26.13 allowance plus $50. 26.14 (c) Revenue shall be paid to the district and must be 26.15 allocated according to section 126C.15, subdivision 2. 26.16 Sec. 26. Minnesota Statutes 2002, section 126C.10, 26.17 subdivision 4, is amended to read: 26.18 Subd. 4. [BASIC SKILLS REVENUE.](a) For fiscal year 2002,26.19a school district's basic skills revenue equals the sum of:26.20(1) compensatory revenue under subdivision 3; plus26.21(2) limited English proficiency revenue according to26.22section 124D.65, subdivision 5; plus26.23(3) $190 times the limited English proficiency pupil units26.24according to section 126C.05, subdivision 17; plus26.25(4) $22.50 times the number of adjusted marginal cost pupil26.26units in kindergarten to grade 8.26.27(b) For fiscal year 2003 and later,A school district's 26.28 basic skills revenue equals the sum of: 26.29 (1) compensatory revenue under subdivision 3; plus 26.30 (2) limited English proficiency revenue under section 26.31 124D.65, subdivision 5; plus 26.32 (3)$190(i) $200 in fiscal year 2004 and later, times (ii) 26.33 the limited English proficiency pupil units under section 26.34 126C.05, subdivision 17. 26.35 Sec. 27. Minnesota Statutes 2002, section 126C.10, 26.36 subdivision 17, is amended to read: 27.1 Subd. 17. [TRANSPORTATION SPARSITY DEFINITIONS.] The 27.2 definitions in this subdivision apply to subdivisions 18 and 19. 27.3 (a) "Sparsity index" for a district means the greater of .2 27.4 or the ratio of the square mile area of the district to the 27.5 resident pupil units of the district. 27.6 (b) "Density index" for a district means the ratio of the 27.7 square mile area of the district to the resident pupil units of 27.8 the district. However, the density index for a district cannot 27.9 be greater than .2 or less than .005. 27.10(c) "Fiscal year 1996 base allowance" for a district means27.11the result of the following computation:27.12(1) sum the following amounts:27.13(i) the fiscal year 1996 regular transportation revenue for27.14the district according to Minnesota Statutes 1996, section27.15124.225, subdivision 7d, paragraph (a), excluding the revenue27.16attributable nonpublic school pupils and to pupils with27.17disabilities receiving special transportation services; plus27.18(ii) the fiscal year 1996 nonregular transportation revenue27.19for the district according to Minnesota Statutes 1996, section27.20124.225, subdivision 7d, paragraph (b), excluding the revenue27.21for desegregation transportation according to Minnesota Statutes27.221996, section 124.225, subdivision 1, paragraph (c), clause (4),27.23and the revenue attributable to nonpublic school pupils and to27.24pupils with disabilities receiving special transportation27.25services or board and lodging; plus27.26(iii) the fiscal year 1996 excess transportation levy for27.27the district according to Minnesota Statutes 1996, section27.28124.226, subdivision 5, excluding the levy attributable to27.29nonpublic school pupils; plus27.30(iv) the fiscal year 1996 late activity bus levy for the27.31district according to Minnesota Statutes 1996, section 124.226,27.32subdivision 9, excluding the levy attributable to nonpublic27.33school pupils; plus27.34(v) an amount equal to one-third of the fiscal year 199627.35bus depreciation for the district according to Minnesota27.36Statutes 1996, section 124.225, subdivision 1, paragraph (b),28.1clauses (2), (3), and (4).28.2(2) divide the result in clause (1) by the district's28.31995-1996 fund balance pupil units.28.4 Sec. 28. Minnesota Statutes 2002, section 126C.10, 28.5 subdivision 18, is amended to read: 28.6 Subd. 18. [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 28.7 A district's transportation sparsity allowance equals the 28.8 greater of zero or the result of the following computation: 28.9 (i) Multiply the formula allowance according to subdivision 28.10 2 minus $415, by .1469. 28.11 (ii) Multiply the result in clause (i) by the district's 28.12 sparsity index raised to the 26/100 power. 28.13 (iii) Multiply the result in clause (ii) by the district's 28.14 density index raised to the 13/100 power. 28.15 (iv) Multiply the formula allowance minus $415 according to 28.16 subdivision 2, by .0485. 28.17 (v) Subtract the result in clause (iv) from the result in 28.18 clause (iii). 28.19 (b) Transportation sparsity revenue is equal to the 28.20 transportation sparsity allowance times the adjusted marginal 28.21 cost pupil units. 28.22 Sec. 29. Minnesota Statutes 2002, section 126C.10, 28.23 subdivision 24, is amended to read: 28.24 Subd. 24. [EQUITY REVENUE.] (a) A school district 28.25 qualifies for equity revenue if: 28.26 (1) the school district's adjusted marginal cost pupil unit 28.27 amount of basic revenue, supplemental revenue, transition 28.28 revenue, and referendum revenue is less than the value of the 28.29 school district at or immediately above the 95th percentile of 28.30 school districts in its equity region for those revenue 28.31 categories; and 28.32 (2) the school district's administrative offices are not 28.33 located in a city of the first class on July 1, 1999. 28.34 (b) Equity revenue for a qualifying district that receives 28.35 referendum revenue under section 126C.17, subdivision 4, equals 28.36 the product of (1) the district's adjusted marginal cost pupil 29.1 units for that year; times (2) the sum of (i)$10$13, plus (ii) 29.2$55$75, times the school district's equity index computed under 29.3 subdivision 27. 29.4 (c) Equity revenue for a qualifying district that does not 29.5 receive referendum revenue under section 126C.17, subdivision 4, 29.6 equals the product of the district's adjusted marginal cost 29.7 pupil units for that year times$10$13. 29.8 [EFFECTIVE DATE.] This section is effective for revenue for 29.9 fiscal year 2005. 29.10 Sec. 30. Minnesota Statutes 2002, section 126C.10, is 29.11 amended by adding a subdivision to read: 29.12 Subd. 29. [EQUITY LEVY.] To obtain equity revenue for 29.13 fiscal year 2005 and later, a district may levy an amount not 29.14 more than the product of its equity revenue for the fiscal year 29.15 times the lesser of one or the ratio of its referendum market 29.16 value per resident marginal cost pupil unit to $476,000. 29.17 Sec. 31. Minnesota Statutes 2002, section 126C.10, is 29.18 amended by adding a subdivision to read: 29.19 Subd. 30. [EQUITY AID.] A district's equity aid equals its 29.20 equity revenue minus its equity levy times the ratio of the 29.21 actual amount levied to the permitted levy. 29.22 Sec. 32. Minnesota Statutes 2002, section 126C.10, is 29.23 amended by adding a subdivision to read: 29.24 Subd. 31. [TRANSITION REVENUE.] (a) A district's 29.25 transition allowance for fiscal years 2004 through 2008 equals 29.26 the greater of zero or the product of the ratio of the number of 29.27 adjusted marginal cost pupil units the district would have 29.28 counted for fiscal year 2004 under Minnesota Statutes 2002 to 29.29 the district's adjusted marginal cost pupil units for fiscal 29.30 year 2004, times the difference between: (1) the lesser of the 29.31 district's general education revenue per adjusted marginal cost 29.32 pupil unit for fiscal year 2003 or the amount of general 29.33 education revenue the district would have received per adjusted 29.34 marginal cost pupil unit for fiscal year 2004 according to 29.35 Minnesota Statutes 2002, and (2) the district's general 29.36 education revenue for fiscal year 2004 excluding transition 30.1 revenue divided by the number of adjusted marginal cost pupil 30.2 units the district would have counted for fiscal year 2004 under 30.3 Minnesota Statutes 2002. A district's transition allowance for 30.4 fiscal year 2009 and later is zero. 30.5 (b) A district's transition revenue for fiscal year 2004 30.6 and later equals the product of the district's transition 30.7 allowance times the district's adjusted marginal cost pupil 30.8 units. 30.9 Sec. 33. Minnesota Statutes 2002, section 126C.10, is 30.10 amended by adding a subdivision to read: 30.11 Subd. 32. [TRANSITION LEVY.] To obtain transition revenue 30.12 for fiscal year 2005 and later, a district may levy an amount 30.13 not more than the product of its transition revenue for the 30.14 fiscal year times the lesser of one or the ratio of its 30.15 referendum market value per resident marginal cost pupil unit to 30.16 $476,000. 30.17 Sec. 34. Minnesota Statutes 2002, section 126C.10, is 30.18 amended by adding a subdivision to read: 30.19 Subd. 33. [TRANSITION AID.] (a) For fiscal year 2004, a 30.20 district's transition aid equals its transition revenue. 30.21 (b) For fiscal year 2005 and later, a district's transition 30.22 aid equals its transition revenue minus its transition levy 30.23 times the ratio of the actual amount levied to the permitted 30.24 levy. 30.25 Sec. 35. Minnesota Statutes 2002, section 126C.13, 30.26 subdivision 4, is amended to read: 30.27 Subd. 4. [GENERAL EDUCATION AID.] (a) For fiscal year 30.28 2004, a district's general education aid is the sum of the 30.29 following amounts: 30.30 (1) general education revenue; 30.31 (2) shared time aid according to section 126C.01, 30.32 subdivision 7;and30.33 (3) referendum aid according to section 126C.17; and 30.34 (4) distance education aid according to section 126C.24. 30.35 (b) For fiscal year 2005 and later, a district's general 30.36 education aid is the sum of the following amounts: 31.1 (1) general education revenue, excluding equity revenue and 31.2 transition revenue; 31.3 (2) equity aid according to section 126C.10, subdivision 31.4 30; 31.5 (3) transition aid according to section 126C.10, 31.6 subdivision 33; 31.7 (4) shared time aid according to section 126C.01, 31.8 subdivision 7; 31.9 (5) referendum aid according to section 126C.17; and 31.10 (6) distance education aid according to section 126C.24. 31.11 Sec. 36. Minnesota Statutes 2002, section 126C.15, 31.12 subdivision 1, is amended to read: 31.13 Subdivision 1. [USE OF THE REVENUE.] The basic skills 31.14 revenue under section 126C.10, subdivision 4,and the portion of31.15the transition revenue adjustment under section 126C.10,31.16subdivision 20, attributable to the compensatory transition31.17allowance under section 126C.10, subdivision 19, paragraph (b),31.18 must be reserved and used to meet the educational needs of 31.19 pupils who enroll under-prepared to learn and whose progress 31.20 toward meeting state or local content or performance standards 31.21 is below the level that is appropriate for learners of their 31.22 age. Any of the following may be provided to meet these 31.23 learners' needs: 31.24 (1) direct instructional services under the assurance of 31.25 mastery program according to section 124D.66; 31.26 (2) remedial instruction in reading, language arts, 31.27 mathematics, other content areas, or study skills to improve the 31.28 achievement level of these learners; 31.29 (3) additional teachers and teacher aides to provide more 31.30 individualized instruction to these learners through individual 31.31 tutoring, lower instructor-to-learner ratios, or team teaching; 31.32 (4) a longer school day or week during the regular school 31.33 year or through a summer program that may be offered directly by 31.34 the site or under a performance-based contract with a 31.35 community-based organization; 31.36 (5) comprehensive and ongoing staff development consistent 32.1 with district and site plans according to section 122A.60, for 32.2 teachers, teacher aides, principals, and other personnel to 32.3 improve their ability to identify the needs of these learners 32.4 and provide appropriate remediation, intervention, 32.5 accommodations, or modifications; 32.6 (6) instructional materials and technology appropriate for 32.7 meeting the individual needs of these learners; 32.8 (7) programs to reduce truancy, encourage completion of 32.9 high school, enhance self-concept, provide health services, 32.10 provide nutrition services, provide a safe and secure learning 32.11 environment, provide coordination for pupils receiving services 32.12 from other governmental agencies, provide psychological services 32.13 to determine the level of social, emotional, cognitive, and 32.14 intellectual development, and provide counseling services, 32.15 guidance services, and social work services; 32.16 (8) bilingual programs, bicultural programs, and programs 32.17 for learners of limited English proficiency; 32.18 (9) all day kindergarten; 32.19 (10) extended school day and extended school year programs; 32.20 and 32.21 (11) substantial parent involvement in developing and 32.22 implementing remedial education or intervention plans for a 32.23 learner, including learning contracts between the school, the 32.24 learner, and the parent that establish achievement goals and 32.25 responsibilities of the learner and the learner's parent or 32.26 guardian. 32.27 Sec. 37. Minnesota Statutes 2002, section 126C.17, 32.28 subdivision 1, is amended to read: 32.29 Subdivision 1. [REFERENDUM ALLOWANCE.] (a) For fiscal year 32.30 2002, a district's referendum revenue allowance equals the sum 32.31 of the allowance under section 126C.16, subdivision 2, plus any 32.32 additional allowance per resident marginal cost pupil unit 32.33 authorized under subdivision 9 for fiscal year 2002. 32.34 (b) For fiscal year 2003 and later, a district's initial 32.35 referendum revenue allowance equals the sum of the allowance 32.36 under section 126C.16, subdivision 2, plus any additional 33.1 allowance per resident marginal cost pupil unit authorized under 33.2 subdivision 9 before May 1, 2001, for fiscal year 2002 and 33.3 later, plus the referendum conversion allowance approved under 33.4 subdivision 13, minus $415. For districts with more than one 33.5 referendum authority, the reduction must be computed separately 33.6 for each authority. The reduction must be applied first to the 33.7 referendum conversion allowance and next to the authority with 33.8 the earliest expiration date. A district's initial referendum 33.9 revenue allowance may not be less than zero. 33.10 (c) For fiscal year 2003and later, a district's referendum 33.11 revenue allowance equals the initial referendum allowance plus 33.12 any additional allowance per resident marginal cost pupil unit 33.13 authorized under subdivision 9afterbetween April 30, 2001, and 33.14 December 30, 2001, for fiscal year 2003 and later. 33.15 (d) For fiscal year 2004 and later, a district's referendum 33.16 revenue allowance equals the sum of: 33.17 (1) the product of (i) the ratio of the resident marginal 33.18 cost pupil units the district would have counted for fiscal year 33.19 2004 under Minnesota Statutes 2002, section 126C.05, to the 33.20 district's resident marginal cost pupil units for fiscal year 33.21 2004, times (ii) the initial referendum allowance plus any 33.22 additional allowance per resident marginal cost pupil unit 33.23 authorized under subdivision 9 between April 30, 2001, and May 33.24 30, 2003, for fiscal year 2003 and later, plus 33.25 (2) any additional allowance per resident marginal cost 33.26 pupil unit authorized under subdivision 9 after May 30, 2003, 33.27 for fiscal year 2005 and later. 33.28 Sec. 38. Minnesota Statutes 2002, section 126C.17, 33.29 subdivision 2, is amended to read: 33.30 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a)Notwithstanding33.31subdivision 1, for fiscal year 2002, a district's referendum33.32allowance must not exceed the greater of:33.33(1) the district's referendum allowance for fiscal year33.341994;33.35(2) 25 percent of the formula allowance; or33.36(3) for a newly reorganized district created after July 1,34.11994, the sum of the referendum revenue authority for the34.2reorganizing districts for the fiscal year preceding the34.3reorganization, divided by the sum of the resident marginal cost34.4pupil units of the reorganizing districts for the fiscal year34.5preceding the reorganization.34.6(b)Notwithstanding subdivision 1, for fiscal year 2003and34.7later fiscal years, a district's referendum allowance must not 34.8 exceed the greater of: 34.9 (1) the sum of a district's referendum allowance for fiscal 34.10 year 1994 times 1.162 plus its referendum conversion allowance 34.11 for fiscal year 2003, minus $415; 34.12 (2) 18.2 percent of the formula allowance; 34.13 (3) for a newly reorganized district created on July 1, 34.14 2002, the referendum revenue authority for each reorganizing 34.15 district in the year preceding reorganization divided by its 34.16 resident marginal cost pupil units for the year preceding 34.17 reorganization, minus $415; or 34.18 (4) for a newly reorganized district created after July 1, 34.19 2002, the referendum revenue authority for each reorganizing 34.20 district in the year preceding reorganization divided by its 34.21 resident marginal cost pupil units for the year preceding 34.22 reorganization. 34.23 (b) Notwithstanding subdivision 1, for fiscal year 2004 and 34.24 later, a district's referendum allowance must not exceed the 34.25 greater of: 34.26 (1) the sum of: (i) a district's referendum allowance for 34.27 fiscal year 1994 times 1.300 times the annual inflationary 34.28 increase as calculated under paragraph (c) plus (ii) its 34.29 referendum conversion allowance for fiscal year 2003, minus 34.30 (iii) $415; 34.31 (2) 21 percent of the formula allowance times the annual 34.32 inflationary increase as calculated under paragraph (c); or 34.33 (3) for a newly reorganized district created after July 1, 34.34 2002, the referendum revenue authority for each reorganizing 34.35 district in the year preceding reorganization divided by its 34.36 resident marginal cost pupil units for the year preceding 35.1 reorganization. 35.2 (c) For purposes of this subdivision, for fiscal year 2005 35.3 and later, "inflationary increase" means one plus the percentage 35.4 change in the Consumer Price Index for urban consumers, as 35.5 prepared by the United States Bureau of Labor Standards, for the 35.6 most recent year for which data is available to the previous 35.7 year. 35.8 [EFFECTIVE DATE.] This section is effective for taxes 35.9 payable in 2004. 35.10 Sec. 39. Minnesota Statutes 2002, section 126C.17, 35.11 subdivision 5, is amended to read: 35.12 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) For fiscal 35.13 year 2003 and later, a district's referendum equalization 35.14 revenue equals the sum of the first tier referendum equalization 35.15 revenue and the second tier referendum equalization revenue. 35.16 (b) A district's first tier referendum equalization revenue 35.17 equals the district's first tier referendum equalization 35.18 allowance times the district's resident marginal cost pupil 35.19 units for that year. 35.20 (c) For fiscal years 2003 and 2004, a district's first tier 35.21 referendum equalization allowance equals the lesser of the 35.22 district's referendum allowance under subdivision 1 or 35.23 $126. For fiscal year 2005, a district's first tier referendum 35.24 equalization allowance equals the lesser of the district's 35.25 referendum allowance under subdivision 1 or $405. For fiscal 35.26 year 2006 and later, a district's first tier referendum 35.27 equalization allowance equals the lesser of the district's 35.28 referendum allowance under subdivision 1 or $500. 35.29 (d) A district's second tier referendum equalization 35.30 revenue equals the district's second tier referendum 35.31 equalization allowance times the district's resident marginal 35.32 cost pupil units for that year. 35.33 (e) A district's second tier referendum equalization 35.34 allowance equals the lesser of the district's referendum 35.35 allowance under subdivision 1 or18.221 percent of the formula 35.36 allowance, minus the district's first tier referendum 36.1 equalization allowance. 36.2 (f) Notwithstanding paragraph (e), the second tier 36.3 referendum allowance for a district qualifying for secondary 36.4 sparsity revenue under section 126C.10, subdivision 7, or 36.5 elementary sparsity revenue under section 126C.10, subdivision 36.6 8, equals the district's referendum allowance under subdivision 36.7 1 minus the district's first tier referendum equalization 36.8 allowance. 36.9 Sec. 40. Minnesota Statutes 2002, section 126C.17, 36.10 subdivision 7, is amended to read: 36.11 Subd. 7. [REFERENDUM EQUALIZATION AID.] (a) A district's 36.12 referendum equalization aid equals the difference between its 36.13 referendum equalization revenue and levy. 36.14 (b) If a district's actual levy for first or second tier 36.15 referendum equalization revenue is less than its maximum levy 36.16 limit for that tier, aid shall be proportionately reduced. 36.17 (c) Notwithstanding paragraph (a), the referendum 36.18 equalization aid for a district, where the referendum 36.19 equalization aid under paragraph (a) exceeds 90 percent of the 36.20 referendum revenue, must not exceed18.221 percent of the 36.21 formula allowance times the district's resident marginal cost 36.22 pupil units. A district's referendum levy is increased by the 36.23 amount of any reduction in referendum aid under this paragraph. 36.24 Sec. 41. Minnesota Statutes 2002, section 126C.17, 36.25 subdivision 7a, is amended to read: 36.26 Subd. 7a. [REFERENDUM TAX BASE REPLACEMENT AID.] For each 36.27 school district that had a referendum allowance for fiscal year 36.28 2002 exceeding $415, for each separately authorized referendum 36.29 levy, the commissioner of revenue, in consultation with the 36.30 commissioner ofchildren, families, and learningeducation, 36.31 shall certify the amount of the referendum levy in taxes payable 36.32 year 2001 attributable to the portion of the referendum 36.33 allowance exceeding $415 levied against property classified as 36.34 class 2, noncommercial 4c(1), or 4c(4), under section 273.13, 36.35 excluding the portion of the tax paid by the portion of class 2a 36.36 property consisting of the house, garage, and surrounding one 37.1 acre of land. The resulting amount must be used to reduce the 37.2 district's referendum levy amount otherwise determined, and must 37.3 be paid to the district each year that the referendum authority 37.4 remains in effect. The aid payable under this subdivision must 37.5 be subtracted from the district's referendum equalization aid 37.6 under subdivision 7. The referendum equalization aid after the 37.7 subtraction must not be less than zero. 37.8For the purposes of this subdivision, the referendum levy37.9with the latest year of expiration is assumed to be at the37.10highest level of equalization, and the referendum levy with the37.11earliest year of expiration is assumed to be at the lowest level37.12of equalization.37.13 Sec. 42. Minnesota Statutes 2002, section 126C.17, 37.14 subdivision 9, is amended to read: 37.15 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 37.16 by section 126C.10, subdivision 1, may be increased in the 37.17 amount approved by the voters of the district at a referendum 37.18 called for the purpose. The referendum may be called by the 37.19 board or shall be called by the board upon written petition of 37.20 qualified voters of the district. The referendum must be 37.21 conducted one or two calendar years before the increased levy 37.22 authority, if approved, first becomes payable. Only one 37.23 election to approve an increase may be held in a calendar year. 37.24 Unless the referendum is conducted by mail under paragraph (g), 37.25 the referendum must be held on the first Tuesday after the first 37.26 Monday in November. The ballot must state the maximum amount of 37.27 the increased revenue per resident marginal cost pupil unit, the 37.28 estimated referendum tax rate as a percentage of referendum 37.29 market value in the first year it is to be levied, and that the 37.30 revenue must be used to finance school operations. The ballot 37.31 may state a schedule, determined by the board, of increased 37.32 revenue per resident marginal cost pupil unit that differs from 37.33 year to year over the number of years for which the increased 37.34 revenue is authorized. If the ballot contains a schedule 37.35 showing different amounts, it must also indicate the estimated 37.36 referendum tax rate as a percent of referendum market value for 38.1 the amount specified for the first year and for the maximum 38.2 amount specified in the schedule. The ballot may state that 38.3 existing referendum levy authority is expiring. In this case, 38.4 the ballot may also compare the proposed levy authority to the 38.5 existing expiring levy authority, and express the proposed 38.6 increase as the amount, if any, over the expiring referendum 38.7 levy authority. The ballot must designate the specific number 38.8 of years, not to exceed ten, for which the referendum 38.9 authorization applies. The notice required under section 275.60 38.10 may be modified to read, in cases of renewing existing levies: 38.11 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 38.12 FOR A PROPERTY TAX INCREASE." 38.13 The ballot may contain a textual portion with the 38.14 information required in this subdivision and a question stating 38.15 substantially the following: 38.16 "Shall the increase in the revenue proposed by (petition 38.17 to) the board of ........., School District No. .., be approved?" 38.18 If approved, an amount equal to the approved revenue per 38.19 resident marginal cost pupil unit times the resident marginal 38.20 cost pupil units for the school year beginning in the year after 38.21 the levy is certified shall be authorized for certification for 38.22 the number of years approved, if applicable, or until revoked or 38.23 reduced by the voters of the district at a subsequent referendum. 38.24 (b) The board must prepare and deliver by first class mail 38.25 at least 15 days but no more than 30 days before the day of the 38.26 referendum to each taxpayer a notice of the referendum and the 38.27 proposed revenue increase. The board need not mail more than 38.28 one notice to any taxpayer. For the purpose of giving mailed 38.29 notice under this subdivision, owners must be those shown to be 38.30 owners on the records of the county auditor or, in any county 38.31 where tax statements are mailed by the county treasurer, on the 38.32 records of the county treasurer. Every property owner whose 38.33 name does not appear on the records of the county auditor or the 38.34 county treasurer is deemed to have waived this mailed notice 38.35 unless the owner has requested in writing that the county 38.36 auditor or county treasurer, as the case may be, include the 39.1 name on the records for this purpose. The notice must project 39.2 the anticipated amount of tax increase in annual dollars and 39.3 annual percentage for typical residential homesteads, 39.4 agricultural homesteads, apartments, and commercial-industrial 39.5 property within the school district. 39.6 The notice for a referendum may state that an existing 39.7 referendum levy is expiring and project the anticipated amount 39.8 of increase over the existing referendum levy in the first year, 39.9 if any, in annual dollars and annual percentage for typical 39.10 residential homesteads, agricultural homesteads, apartments, and 39.11 commercial-industrial property within the district. 39.12 The notice must include the following statement: "Passage 39.13 of this referendum will result in an increase in your property 39.14 taxes." However, in cases of renewing existing levies, the 39.15 notice may include the following statement: "Passage of this 39.16 referendum may result in an increase in your property taxes." 39.17 (c) A referendum on the question of revoking or reducing 39.18 the increased revenue amount authorized pursuant to paragraph 39.19 (a) may be called by the board and shall be called by the board 39.20 upon the written petition of qualified voters of the district. 39.21 A referendum to revoke or reduce thelevyrevenue amount mustbe39.22based upon the dollar amount, local tax rate, orstate the 39.23 amount per resident marginal cost pupil unit, that was stated to39.24be the basis for the initial authorizationby which the 39.25 authority is to be reduced. Revenue authority approved by the 39.26 voters of the district pursuant to paragraph (a) must 39.27 bereceivedavailable to the school district at least once 39.28 before it is subject to a referendum on its revocation or 39.29 reduction for subsequent years. Only one revocation or 39.30 reduction referendum may be held to revoke or reduce referendum 39.31 revenue for any specific year and for years thereafter. 39.32 (d) A petition authorized by paragraph (a) or (c) is 39.33 effective if signed by a number of qualified voters in excess of 39.34 15 percent of the registered voters of the district on the day 39.35 the petition is filed with the board. A referendum invoked by 39.36 petition must be held on the date specified in paragraph (a). 40.1 (e) The approval of 50 percent plus one of those voting on 40.2 the question is required to pass a referendum authorized by this 40.3 subdivision. 40.4 (f) At least 15 days before the day of the referendum, the 40.5 district must submit a copy of the notice required under 40.6 paragraph (b) to the commissioner and to the county auditor of 40.7 each county in which the district is located. Within 15 days 40.8 after the results of the referendum have been certified by the 40.9 board, or in the case of a recount, the certification of the 40.10 results of the recount by the canvassing board, the district 40.11 must notify the commissioner of the results of the referendum. 40.12 Sec. 43. Minnesota Statutes 2002, section 126C.17, 40.13 subdivision 13, is amended to read: 40.14 Subd. 13. [REFERENDUM CONVERSION ALLOWANCE.] (a) A school 40.15 district that received supplemental or transition revenue in 40.16 fiscal year 2002 may convert its supplemental revenue conversion 40.17 allowance and transition revenue conversion allowance to 40.18 additional referendum allowance under subdivision 1 for fiscal 40.19 year 2003 and thereafter. A majority of the school board must 40.20 approve the conversion at a public meeting before November 1, 40.21 2001. For a district with other referendum authority, the 40.22 referendum conversion allowance approved by the board continues 40.23 until the portion of the district's other referendum authority 40.24 with the earliest expiration date after June 30, 2006, expires. 40.25 For a district with no other referendum authority, the 40.26 referendum conversion allowance approved by the board continues 40.27 until June 30, 2012. 40.28 (b) A school district that received transition revenue in 40.29 fiscal year 2004 may convert all or part of its transition 40.30 revenue to referendum revenue with voter approval in a 40.31 referendum called for the purpose. The referendum must be held 40.32 in accordance with subdivision 9, except that the ballot may 40.33 state that existing transition revenue authority is being 40.34 canceled or is expiring. In this case, the ballot shall compare 40.35 the proposed referendum allowance to the canceled or expiring 40.36 transition revenue allowance. For purposes of this comparison, 41.1 the canceled or expiring transition revenue allowance per 41.2 adjusted marginal cost pupil unit shall be converted to an 41.3 allowance per resident marginal cost pupil unit based on the 41.4 district's ratio of adjusted marginal cost pupil units to 41.5 resident marginal cost pupil units for the preceding fiscal 41.6 year. The referendum must be held on the first Tuesday after 41.7 the first Monday in November. The notice required under section 41.8 275.60 may be modified to read: "BY VOTING 'YES' ON THIS BALLOT 41.9 QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE." 41.10 Elections under this paragraph must be held in 2007 or earlier. 41.11 Sec. 44. Minnesota Statutes 2002, section 126C.21, 41.12 subdivision 3, is amended to read: 41.13 Subd. 3. [COUNTY APPORTIONMENT DEDUCTION.] Each year the 41.14 amount of money apportioned to a district for that year pursuant 41.15 to section 127A.34, subdivision 2,excluding any district where41.16the general education levy is determined according to section41.17126C.13, subdivision 3,must be deducted from the general 41.18 education aid earned by that district for the same year or from 41.19 aid earned from other state sources. 41.20 Sec. 45. Minnesota Statutes 2002, section 126C.457, is 41.21 amended to read: 41.22 126C.457 [CAREER AND TECHNICAL LEVY.] 41.23For taxes payable in 2003 only,A school district may levy 41.24 an amount equal to the greater of (1) $10,000, or (2) the 41.25 district's fiscal year 2001 entitlement for career and technical 41.26 aid under section 124D.453. The district must recognize the 41.27 full amount of this levy as revenue for the fiscal year in which 41.28 it is certified. Revenue received under this section must be 41.29 reserved and used only for career and technical programs. 41.30 [EFFECTIVE DATE.] This section is effective for taxes 41.31 payable in 2004. 41.32 Sec. 46. Minnesota Statutes 2002, section 169.28, 41.33 subdivision 1, is amended to read: 41.34 Subdivision 1. [STOP REQUIRED.] (a) The driver of any 41.35 motor vehicle carrying passengers for hire, or of any school bus 41.36 whether carrying passengers or not, or of any Head Start bus 42.1 whether carrying passengers or not, or of any vehicle that is 42.2 required to stop at railroad grade crossings under Code of 42.3 Federal Regulations, title 49, section 392.10, before crossing 42.4 at grade any track or tracks of a railroad, shall stop the 42.5 vehicle not less than 15 feet nor more than 50 feet from the 42.6 nearest rail of the railroad and while so stopped shall listen 42.7 and look in both directions along the track for any approaching 42.8 train, and for signals indicating the approach of a train, 42.9 except as hereinafter provided, and shall not proceed until safe 42.10 to do so. The driver must not shift gears while crossing the 42.11 railroad tracks. 42.12 (b) A school bus or Head Start bus shall not be flagged 42.13 across railroad grade crossings except at those railroad grade 42.14 crossings that the local school administrative officer may 42.15 designate. 42.16 (c) A type III school bus, as defined in section 169.01, is 42.17 exempt from the requirement of school buses to stop at railroad 42.18 grade crossings. 42.19 Sec. 47. Minnesota Statutes 2002, section 169.4503, 42.20 subdivision 4, is amended to read: 42.21 Subd. 4. [CERTIFICATION.] A body manufacturer, school bus 42.22 dealer, or certified Minnesota commercial vehicle inspector who 42.23 is also an employee of an organization purchasing a school bus 42.24 shall certify to the department of public safety that the 42.25 product meets Minnesota standards. 42.26 Sec. 48. Minnesota Statutes 2002, section 169.454, 42.27 subdivision 6, is amended to read: 42.28 Subd. 6. [IDENTIFICATION.](a)The vehicle must not have 42.29 the words "school bus" in any location on the exterior of the 42.30 vehicle, or in any interior location visible to a motorist. 42.31(b) The vehicle must display to the rear of the vehicle42.32this sign: "VEHICLE STOPS AT RR CROSSINGS."42.33(c) The lettering (except for "AT," which may be one inch42.34smaller) must be a minimum two-inch "Series D" as specified in42.35standard alphabets for highway signs as specified by the Federal42.36Highway Administration. The printing must be in a color giving43.1a marked contrast with that of the part of the vehicle on which43.2it is placed.43.3(d) The sign must have provisions for being covered, or be43.4of a removable or fold-down type.43.5 Sec. 49. Minnesota Statutes 2002, section 171.321, 43.6 subdivision 5, is amended to read: 43.7 Subd. 5. [ANNUAL EVALUATION AND LICENSE VERIFICATION.] (a) 43.8A school district's pupil transportation safety director, the43.9chief administrator of a nonpublic school, or a private43.10contractor shall certify annually to the school board or43.11governing board of a nonpublic school that, at minimum, each43.12school bus driver meets the school bus driver training43.13competencies under subdivision 4.A school district, nonpublic 43.14 school, or private contractoralsoshall provide in-service 43.15 training annually to each school bus driver. 43.16 (b) A school district, nonpublic school, or private 43.17 contractor shall annually verify the validity of the driver's 43.18 license of each person who transports students for the district 43.19 with the National Drivers Register or with the department of 43.20 public safety. 43.21 Sec. 50. [NONPUBLIC PUPIL MATERIALS AND TESTS.] 43.22 Notwithstanding Minnesota Statutes, section 123B.42, 43.23 subdivision 3, paragraph (b), the inflation adjustment for 43.24 nonpublic pupil textbooks, individualized instructional or 43.25 cooperative learning materials, and standardized tests for 43.26 fiscal year 2004 must be computed using the fiscal year 2004 43.27 formula allowance minus $415. 43.28 Sec. 51. [RECOGNITION OF EXCELLENCE IN EDUCATION.] 43.29 The commissioner of education must develop for the 43.30 kindergarten through grade 12 task force on school finance 43.31 reform a plan that recognizes and financially rewards 43.32 outstanding schools and students demonstrating excellence in 43.33 education consistent with the provisions on academic excellence 43.34 in Minnesota Statutes, chapter 120B. 43.35 Sec. 52. [APPROPRIATIONS.] 43.36 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 44.1 indicated in this section are appropriated from the general fund 44.2 to the department of education for the fiscal years designated. 44.3 Subd. 2. [GENERAL EDUCATION AID.] For general education 44.4 aid under Minnesota Statutes, section 126C.13, subdivision 4: 44.5 $4,833,731,000 ..... 2004 44.6 $5,134,951,000 ..... 2005 44.7 The 2004 appropriation includes $857,432,000 for 2003 and 44.8 $3,976,299,000 for 2004. 44.9 The 2005 appropriation includes $1,164,715,000 for 2004 and 44.10 $3,970,237,000 for 2005. 44.11 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 44.12 referendum tax base replacement aid under Minnesota Statutes, 44.13 section 126C.17, subdivision 7a: 44.14 $ 7,600,000 ..... 2004 44.15 $ 7,971,000 ..... 2005 44.16 The 2004 appropriation includes $1,419,000 for 2003 and 44.17 $6,181,000 for 2004. 44.18 The 2005 appropriation includes $1,846,000 for 2004 and 44.19 $6,125,000 for 2005. 44.20 Subd. 4. [ENROLLMENT OPTIONS TRANSPORTATION.] For 44.21 transportation of pupils attending postsecondary institutions 44.22 under Minnesota Statutes, section 124D.09, or for transportation 44.23 of pupils attending nonresident districts under Minnesota 44.24 Statutes, section 124D.03: 44.25 $50,000 ..... 2004 44.26 $55,000 ..... 2005 44.27 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 44.28 Minnesota Statutes, section 127A.49: 44.29 $2,597,000 ..... 2004 44.30 $2,931,000 ..... 2005 44.31 The 2004 appropriation includes $472,000 for 2003 and 44.32 $2,125,000 for 2004. 44.33 The 2005 appropriation includes $643,000 for 2004 and 44.34 $2,297,000 for 2005. 44.35 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 44.36 consolidating under Minnesota Statutes, section 123A.485: 45.1 $200,000 ..... 2004 45.2 $593,000 ..... 2005 45.3 The 2004 appropriation includes $35,000 for 2003 and 45.4 $165,000 for 2004. 45.5 The 2005 appropriation includes $49,000 for 2004 and 45.6 $544,000 for 2005. 45.7 Subd. 7. [TORNADO IMPACT; YELLOW MEDICINE EAST.] For a 45.8 grant to independent school district No. 2190, Yellow Medicine 45.9 East, for tornado impact declining enrollment aid: 45.10 $78,000 ..... 2004 45.11 $39,000 ..... 2005 45.12 Subd. 8. [DECLINING PUPIL AID; ALBERT LEA.] For declining 45.13 pupil aid to independent school district No. 241, Albert Lea: 45.14 $225,000 ..... 2004 45.15 $150,000 ..... 2005 45.16 Subd. 9. [DECLINING PUPIL AID; MESABI EAST.] For declining 45.17 pupil aid to independent school district No. 2711, Mesabi East: 45.18 $150,000 ..... 2004 45.19 $100,000 ..... 2005 45.20 Subd. 10. [DECLINING PUPIL AID; ROSEAU.] For declining 45.21 pupil aid to independent school district No. 682, Roseau: 45.22 $30,000 ..... 2004 45.23 $20,000 ..... 2005 45.24 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 45.25 education aid under Minnesota Statutes, sections 123B.40 to 45.26 123B.43 and 123B.87: 45.27 $14,179,000 ..... 2004 45.28 $15,568,000 ..... 2005 45.29 The 2004 appropriation includes $2,715,000 for 2003 and 45.30 $11,464,000 for 2004. 45.31 The 2005 appropriation includes $3,424,000 for 2004 and 45.32 $12,144,000 for 2005. 45.33 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 45.34 pupil transportation aid under Minnesota Statutes, section 45.35 123B.92, subdivision 9: 45.36 $20,821,000 ..... 2004 46.1 $21,978,000 ..... 2005 46.2 The 2004 appropriation includes $3,990,000 for 2003 and 46.3 $16,831,000 for 2004. 46.4 The 2005 appropriation includes $5,027,000 for 2004 and 46.5 $16,951,000 for 2005. 46.6 Sec. 53. [REPEALER.] 46.7 (a) Minnesota Statutes 2002, sections 122A.60; 122A.61; 46.8 123A.73, subdivisions 7, 10, and 11; 123B.81, subdivision 6; 46.9 124D.65, subdivision 4; 126C.01, subdivision 4; 126C.12; and 46.10 126C.125, are repealed. 46.11 (b) Minnesota Statutes 2002, section 126C.14, is repealed 46.12 effective for revenue for fiscal year 2003. 46.13 (c) Minnesota Statutes 2002, sections 122A.62; and 46.14 126C.445, are repealed effective for taxes payable in 2004. 46.15 (d) Laws 2001, First Special Session chapter 6, article 5, 46.16 section 12, as amended by Laws 2002, chapter 377, article 12, 46.17 section 15, is repealed. 46.18 (e) Laws 2000, chapter 489, article 2, section 36, as 46.19 amended by Laws 2001, First Special Session chapter 6, article 46.20 1, section 44, is repealed effective for revenue for fiscal year 46.21 2004. 46.22 ARTICLE 2 46.23 EDUCATION EXCELLENCE 46.24 Section 1. Minnesota Statutes 2002, section 120A.24, 46.25 subdivision 4, is amended to read: 46.26 Subd. 4. [REPORTS TO THE STATE.] A superintendent must 46.27 make an annual report to the commissioner ofchildren, families,46.28and learningeducation. The report must include the following 46.29 information: 46.30 (1) the number of children residing in the district 46.31 attending nonpublic schools or receiving instruction from 46.32 persons or institutions other than a public school; 46.33 (2) the number of children in clause (1) who are in 46.34 compliance with section 120A.22 and this section; and 46.35 (3) thenames, ages, and addressesnumber of childrenwhom46.36 in clause (1) who the superintendent has determined are not in 47.1 compliance with section 120A.22 and this section. 47.2 Sec. 2. Minnesota Statutes 2002, section 120A.41, is 47.3 amended to read: 47.4 120A.41 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 47.5 A school board's annual school calendar must include at 47.6 leastthree additional days of student instruction or staff47.7development training related to implementing section 120B.031,47.8subdivision 1, paragraph (f), beyondthe number of days of 47.9 student instruction the board formally adopted as its school 47.10 calendar at the beginning of the 1996-1997 school year. 47.11 [EFFECTIVE DATE.] This section is effective for the 47.12 2003-2004 school year. 47.13 Sec. 3. Minnesota Statutes 2002, section 121A.11, is 47.14 amended by adding a subdivision to read: 47.15 Subd. 3. [PLEDGE OF ALLEGIANCE.] (a) All public and 47.16 charter school students shall recite the pledge of allegiance to 47.17 the flag of the United States of America one or more times each 47.18 week. The recitation shall be conducted: 47.19 (1) by each individual classroom teacher or the teacher's 47.20 surrogate; or 47.21 (2) over a school intercom system by a person designated by 47.22 the school principal or other person having administrative 47.23 control over the school. 47.24 A local school board or a charter school board of directors 47.25 annually, by majority vote, may waive this requirement. 47.26 (b) Any student or teacher who objects to reciting the 47.27 pledge must be excused from participating without penalty. 47.28 (c) A local school board or a charter school board of 47.29 directors that waives the requirement to recite the pledge of 47.30 allegiance under paragraph (a) may adopt a district or school 47.31 policy regarding the reciting of the pledge of allegiance. 47.32 [EFFECTIVE DATE.] This section is effective the day 47.33 following final enactment. 47.34 Sec. 4. Minnesota Statutes 2002, section 121A.11, is 47.35 amended by adding a subdivision to read: 47.36 Subd. 4. [INSTRUCTION.] Unless this requirement is waived 48.1 annually by a majority vote of the school board, a school 48.2 district must instruct students in the proper etiquette toward, 48.3 correct display of, and respect for the flag, and in patriotic 48.4 exercises. The instruction is recommended to be part of the 48.5 district's fifth grade social studies curriculum. 48.6 [EFFECTIVE DATE.] This section is effective the day 48.7 following final enactment. Each school district must begin the 48.8 instruction required under this section no later than the 48.9 2004-2005 school year. 48.10 Sec. 5. Minnesota Statutes 2002, section 121A.23, 48.11 subdivision 1, is amended to read: 48.12 Subdivision 1. [SEXUALLY TRANSMITTED INFECTIONS AND 48.13 DISEASES PROGRAM.] The commissioner ofchildren, families, and48.14learningeducation, in consultation with the commissioner of 48.15 health, shall assist districts in developing and implementing a 48.16 program to prevent and reduce the risk of sexually transmitted 48.17 infections and diseases, including but not exclusive to human 48.18 immune deficiency virus and human papilloma virus. Each 48.19 district must have a program that includes at least: 48.20 (1) planning materials, guidelines, and other technically 48.21 accurate and updated information; 48.22 (2) a comprehensive, technically accurate, and updated 48.23 curriculum that includes helping students to abstain from sexual 48.24 activity until marriage; 48.25 (3) cooperation and coordination among districts and SCs; 48.26 (4) a targeting of adolescents, especially those who may be 48.27 at high risk of contracting sexually transmitted infections and 48.28 diseases, for prevention efforts; 48.29 (5) involvement of parents and other community members; 48.30 (6) in-service training for appropriate district staff and 48.31 school board members; 48.32 (7) collaboration with state agencies and organizations 48.33 having a sexually transmitted infection and disease prevention 48.34 or sexually transmitted infection and disease risk reduction 48.35 program; 48.36 (8) collaboration with local community health services, 49.1 agencies and organizations having a sexually transmitted 49.2 infection and disease prevention or sexually transmitted 49.3 infection and disease risk reduction program; and 49.4 (9) participation by state and local student organizations. 49.5The department may provide assistance at a neutral site to49.6a nonpublic school participating in a district's program.49.7District programs must not conflict with the health and wellness49.8curriculum developed under Laws 1987, chapter 398, article 5,49.9section 2, subdivision 7.49.10If a district fails to develop and implement a program to49.11prevent and reduce the risk of sexually transmitted infection49.12and disease, the department must assist the service cooperative49.13in the region serving that district to develop or implement the49.14program.49.15 Sec. 6. Minnesota Statutes 2002, section 121A.23, is 49.16 amended by adding a subdivision to read: 49.17 Subd. 1a. [ABSTINENCE UNTIL MARRIAGE.] A school district 49.18 that complies with subdivision 1 must provide students with a 49.19 curriculum on and instruction in abstinence until marriage 49.20 premised on risk avoidance. 49.21 [EFFECTIVE DATE.] This section is effective the day 49.22 following final enactment. 49.23 Sec. 7. [121A.24] [NOTICE REQUIREMENTS FOR STUDENT SURVEYS 49.24 AND SIMILAR INSTRUMENTS.] 49.25 (a) A school district must obtain prior written informed 49.26 consent from a student's parent or guardian before administering 49.27 an academic or nonacademic student survey, assessment, analysis, 49.28 evaluation, or similar instrument that reveals information about 49.29 the student or the student's family concerning: 49.30 (1) political affiliations or beliefs; 49.31 (2) mental or psychological problems; 49.32 (3) sexual behavior or attitudes; 49.33 (4) illegal, antisocial, self-incriminating, or demeaning 49.34 behavior; 49.35 (5) critical appraisals of another individual with whom a 49.36 student has a close family relationship; 50.1 (6) legally recognized privileged or analogous 50.2 relationships, such as those with a lawyer, physician, or 50.3 minister; 50.4 (7) religious practices, affiliations, or beliefs; or 50.5 (8) income or other income-related information required by 50.6 law to determine eligibility to participate in or receive 50.7 financial assistance under a program. 50.8 (b) When asking a parent or guardian to provide informed 50.9 written consent, the school district must: 50.10 (1) make a copy of the instrument readily accessible to the 50.11 parent or guardian at a convenient location and reasonable time; 50.12 and 50.13 (2) specifically identify the information in paragraph (a) 50.14 that will be revealed through the instrument. 50.15 The district must request the consent of the parent or guardian 50.16 at least 14 days before administering the instrument. 50.17 (c) A parent or guardian seeking to compel a school 50.18 district to comply with this section has available the civil 50.19 remedies under section 13.08, subdivision 4, in addition to 50.20 other remedies provided by law. 50.21 [EFFECTIVE DATE.] This section is effective the day 50.22 following final enactment. 50.23 Sec. 8. Minnesota Statutes 2002, section 121A.50, is 50.24 amended to read: 50.25 121A.50 [JUDICIAL REVIEW.] 50.26 The decision of thecommissioner of children, families, and50.27learningschool district made under sections 121A.40 to 121A.56 50.28 is subject to judicial reviewunder sections 14.63 to 14.69by 50.29 writ of certiorari to the court of appeals. The school district 50.30 may implement its decision during the appeal.The decision of50.31the commissioner is stayed pending an appeal under this section.50.32 [EFFECTIVE DATE.] This section is effective the day 50.33 following final enactment and applies to all appeals of school 50.34 district decisions made after that date. 50.35 Sec. 9. Minnesota Statutes 2002, section 121A.55, is 50.36 amended to read: 51.1 121A.55 [POLICIES TO BE ESTABLISHED.] 51.2 (a) The commissioner ofchildren, families, and51.3learningeducation shall promulgate guidelines to assist each 51.4 school board. Each school board shall establish uniform 51.5 criteria for dismissal and adopt written policies and rules to 51.6 effectuate the purposes of sections 121A.40 to 121A.56. The 51.7 policies shall emphasize preventing dismissals through early 51.8 detection of problems and shall be designed to address students' 51.9 inappropriate behavior from recurring. The policies shall 51.10 recognize the continuing responsibility of the school for the 51.11 education of the pupil during the dismissal period. The 51.12 alternative educational services, if the pupil wishes to take 51.13 advantage of them, must be adequate to allow the pupil to make 51.14 progress towards meeting the graduation standards adopted under 51.15 section 120B.02 and help prepare the pupil for readmission. 51.16 (b) Consistent with its policies adopted under paragraph 51.17 (a), a school district, in consultation with a student's parent 51.18 or guardian, may assign a student to an area learning center or 51.19 provide other alternative educational services under section 51.20 121A.41, subdivision 11. An area learning center under section 51.21 123A.05 may not prohibit an expelled or excluded pupil from 51.22 enrolling solely because a district expelled or excluded the 51.23 pupil. The board of the area learning center may use the 51.24 provisions of the Pupil Fair Dismissal Act to exclude a pupil or 51.25 to require an admission plan. 51.26(c) The commissioner shall actively encourage and assist51.27school districts to cooperatively establish alternative51.28educational services within school buildings or at alternative51.29program sites that offer instruction to pupils who are dismissed51.30from school for willfully engaging in dangerous, disruptive, or51.31violent behavior, including for possessing a firearm in a school51.32zone.51.33 [EFFECTIVE DATE.] This section is effective the day 51.34 following final enactment. 51.35 Sec. 10. Minnesota Statutes 2002, section 121A.64, is 51.36 amended to read: 52.1 121A.64 [NOTIFICATION; TEACHERS' LEGITIMATE EDUCATIONAL 52.2 INTEREST.] 52.3 (a) A classroom teacher has a legitimate educational 52.4 interest in knowing which students placed in the teacher's 52.5 classroom have a history of violent behavior and must be 52.6 notified before such students are placed in the teacher's 52.7 classroom. 52.8 (b) Representatives of the school board and the exclusive 52.9 representative of the teachers shall discuss issues related to 52.10notification prior to placementthe model policy on student 52.11 records adopted under Laws 1999, chapter 241, article 9, section 52.12 50, and any modifications adopted under this act for notifying 52.13 classroom teachers and other school district employees having a 52.14 legitimate educational interest in knowing about students with a 52.15 history of violent behavior placed in classroomsof students52.16with histories of violent behavior and any. The representatives 52.17 of the school board and the exclusive representative of the 52.18 teachers also may discuss the need for intervention services or 52.19 conflict resolution or training for staffin these casesrelated 52.20 to placing students with a history of violent behavior in 52.21 teachers' classrooms. 52.22 [EFFECTIVE DATE.] This section is effective for the 52.23 2003-2004 school year and later. 52.24 Sec. 11. Minnesota Statutes 2002, section 122A.414, is 52.25 amended by adding a subdivision to read: 52.26 Subd. 3. [REPORT.] Participating districts and school 52.27 sites must report on the implementation and effectiveness of the 52.28 alternative teacher compensation plan, particularly addressing 52.29 each requirement under subdivision 2 and make biennial 52.30 recommendations by January 1 to their school boards. The school 52.31 boards shall transmit a summary of the findings and 52.32 recommendations of their district to the commissioner. 52.33 Sec. 12. Minnesota Statutes 2002, section 122A.415, 52.34 subdivision 1, is amended to read: 52.35 Subdivision 1. [AID AMOUNT.] (a) A school district that 52.36 meets the conditions of section 122A.414 and submits an 53.1 application approved by the commissioner is eligible for 53.2 alternative compensation aid. The commissioner must consider 53.3 only applications submitted jointly by a school district and the 53.4 exclusive representative of the teachers for participation in 53.5 the program. The application must contain a formally adopted 53.6 collective bargaining agreement, memorandum of understanding, or 53.7 other binding agreement that implements an alternative teacher 53.8 professional pay system consistent with section 122A.414 and 53.9 includes all teachers in a district, all teachers at a school 53.10 site, or at least 25 percent of the teachers in a district. The 53.11 commissioner, in approving applications, may give preference to 53.12 applications involving entire districts or sitesin approving53.13applicationsor to applications that align measures of teacher 53.14 performance with student academic achievement and progress under 53.15 section 120B.35, subdivision 1. 53.16 (b) Alternative compensation aid for a qualifying school 53.17 district, site, or portion of a district or school site is as 53.18 follows: 53.19 (1) for a school district in which the school board and the 53.20 exclusive representative of the teachers agree to place all 53.21 teachers in the district or at the site on the alternative 53.22 compensation schedule, alternative compensation aid equals $150 53.23 times the district's or the site's number of pupils enrolled on 53.24 October 1 of the previous fiscal year; or 53.25 (2) for a district in which the school board and the 53.26 exclusive representative of the teachers agree that at least 25 53.27 percent of the district's licensed teachers will be paid on the 53.28 alternative compensation schedule, alternative compensation aid 53.29 equals $150 times the percentage of participating teachers times 53.30 the district's number of pupils enrolled as of October 1 of the 53.31 previous fiscal year. 53.32 Sec. 13. Minnesota Statutes 2002, section 122A.415, 53.33 subdivision 3, is amended to read: 53.34 Subd. 3. [AID TIMING.] (a) Districts or sites with 53.35 approved applications must receive alternative compensation aid 53.36 for each school year that the district or site participates in 54.1 the program as described in this subdivision. Districts or 54.2 sites with applications received by the commissioner before June 54.3 1 of the first year of a two-year contract shall receive 54.4 alternative compensation aid for both years of the contract. 54.5 Districts or sites with applications received by the 54.6 commissioner after June 1 of the first year of a two-year 54.7 contract shall receive alternative compensation aid only for the 54.8 second year of the contract. A qualifying district or site that 54.9 received alternative compensation aid for the previous fiscal 54.10 year must receive at least an amount equal to the lesser of the 54.11 amount it received for the previous fiscal year or its 54.12 proportionate share of the previous year's appropriation if the 54.13 district or site submits a timely application and the 54.14 commissioner determines that the district or site continues to 54.15 implement an alternative teacher professional pay system, 54.16 consistent with its application under this section. The 54.17 commissioner must approve initial applications for school 54.18 districts qualifying under subdivision 1, paragraph (b), clause 54.19 (1), by January 15 of each year. If any money remains, the 54.20 commissioner must approve aid amounts for school districts 54.21 qualifying under subdivision 1, paragraph (b), clause (2), by 54.22 February 15 of each year. 54.23 (b) The commissioner shall select applicants that qualify 54.24 for this program, notify school districts and school sites about 54.25 the program, develop and disseminate application materials, and 54.26 carry out other activities needed to implement this section. 54.27 Sec. 14. Minnesota Statutes 2002, section 122A.63, 54.28 subdivision 3, is amended to read: 54.29 Subd. 3. [REVIEW AND COMMENT.] The commissioner must 54.30 submit the joint application to theMinnesotaAmerican Indian 54.31scholarshipeducation committee for review and comment. 54.32 Sec. 15. Minnesota Statutes 2002, section 123B.02, 54.33 subdivision 14, is amended to read: 54.34 Subd. 14. [EMPLOYEES; CONTRACTS FOR SERVICES.] (a) The 54.35 board may employ and discharge necessary employees and may 54.36 contract for other services. Notwithstanding any other law to 55.1 the contrary, it shall be an inherent managerial right of the 55.2 board to unilaterally contract or subcontract for services 55.3 unless the power to contract or subcontract is specifically 55.4 prohibited by collective bargaining agreements with all units of 55.5 affected employees. 55.6 (b) Notwithstanding any law to the contrary, when the 55.7 exclusive representative and the employer have been in 55.8 negotiation of a contract or subcontract for the services of 55.9 nonteachers as set out in the collective bargaining agreement 55.10 and have participated in mediation over a period of at least 45 55.11 days, either party may declare an impasse and terminate the 55.12 negotiation and the collective bargaining agreement shall 55.13 conclusively be determined to be expired. After expiration of 55.14 the collective bargaining agreement occurs under this paragraph, 55.15 the employer may contract with any other persons and entities 55.16 for the services. 55.17 (c) For the purposes of paragraph (b), the mediation period 55.18 begins on the day following receipt by the commissioner of a 55.19 request for mediation. 55.20 (d) Paragraph (b) applies to all agreements between the 55.21 board and collective bargaining representatives except for 55.22 teachers as defined in section 122A.41, subdivision 1, paragraph 55.23 (a). 55.24 [EFFECTIVE DATE.] This section is effective for contracts 55.25 negotiated and entered into on or after July 1, 2003, and 55.26 contracts beginning negotiation, but not entered into, before 55.27 July 1, 2003. 55.28 Sec. 16. [123B.025] [SCHOOL SPONSORSHIP AND ADVERTISING 55.29 REVENUE.] 55.30 Subdivision 1. [BOARD AUTHORITY; CONTRACTS.] A school 55.31 board may enter into a contract with advertisers, sponsors, or 55.32 others regarding advertising and naming rights to school 55.33 facilities and vehicles under the general charge of the 55.34 district. A contract authorized under this section must be 55.35 approved by the school board. The powers granted to a school 55.36 board under this section are in addition to any other authority 56.1 the school district may have. 56.2 Subd. 2. [AUTHORIZED AGREEMENTS.] A school district may 56.3 enter into a contract to: 56.4 (1) lease the naming rights for school facilities, 56.5 including school buildings, ice arenas, and stadiums; 56.6 (2) sell advertising on or in the facilities listed in 56.7 clause (1); 56.8 (3) sell advertising on or in school buses subject to the 56.9 content restrictions of section 123B.93; and 56.10 (4) otherwise enter into an agreement with a sponsoring 56.11 agent. 56.12 Subd. 3. [REVENUE USES.] Revenue generated under this 56.13 section must be used according to a plan specified by the school 56.14 board. 56.15 Sec. 17. Minnesota Statutes 2002, section 123B.36, 56.16 subdivision 1, is amended to read: 56.17 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 56.18 purposes of this subdivision, "home school" means a home school 56.19 as defined in sections 120A.22 and 120A.24 with five or fewer 56.20 students receiving instruction. 56.21 (b) A school board is authorized to require payment of fees 56.22 in the following areas: 56.23 (1) in any program where the resultant product, in excess 56.24 of minimum requirements and at the pupil's option, becomes the 56.25 personal property of the pupil; 56.26 (2) admission fees or charges for extra curricular 56.27 activities, where attendance is optional and where the admission 56.28 fees or charges a student must pay to attend or participate in 56.29 an extracurricular activity is the same for all students, 56.30 regardless of whether the student is enrolled in a public or a 56.31 home school; 56.32 (3) a security deposit for the return of materials, 56.33 supplies, or equipment; 56.34 (4) personal physical education and athletic equipment and 56.35 apparel, although any pupil may personally provide it if it 56.36 meets reasonable requirements and standards relating to health 57.1 and safety established by the board; 57.2 (5) items of personal use or products that a student has an 57.3 option to purchase such as student publications, class rings, 57.4 annuals, and graduation announcements; 57.5 (6) fees specifically permitted by any other statute, 57.6 including but not limited to section 171.05, subdivision 2; 57.7 provided (i) driver education fees do not exceed the actual cost 57.8 to the school and school district of providing driver education, 57.9 and (ii) the driver education courses are open to enrollment to 57.10 persons between the ages of 15 and 18 who reside or attend 57.11 school in the school district; 57.12 (7) field trips considered supplementary to a district 57.13 educational program; 57.14 (8) any authorized voluntary student health and accident 57.15 benefit plan; 57.16 (9) for the use of musical instruments owned or rented by 57.17 the district, a reasonable rental fee not to exceed either the 57.18 rental cost to the district or the annual depreciation plus the 57.19 actual annual maintenance cost for each instrument; 57.20 (10) transportation of pupils to and from extra curricular 57.21 activities conducted at locations other than school, where 57.22 attendance is optional, and transportation of charter school 57.23 students participating in extracurricular activities conducted 57.24 in the resident school district under section 123B.49, 57.25 subdivision 4, paragraph (a), which must be charged to the 57.26 charter school; 57.27 (11) transportation to and from school of pupils living 57.28 within two miles from school and all other transportation 57.29 services not required by law. If a district charges fees for 57.30 transportation of pupils, it must establish guidelines for that 57.31 transportation to ensure that no pupil is denied transportation 57.32 solely because of inability to pay; 57.33 (12) motorcycle classroom education courses conducted 57.34 outside of regular school hours; provided the charge must not 57.35 exceed the actual cost of these courses to the school district; 57.36 (13) transportation to and from post-secondary institutions 58.1 for pupils enrolled under the post-secondary enrollment options 58.2 program under section 123B.88, subdivision 22. Fees collected 58.3 for this service must be reasonable and must be used to reduce 58.4 the cost of operating the route. Families who qualify for 58.5 mileage reimbursement under section 124D.09, subdivision 22, may 58.6 use their state mileage reimbursement to pay this fee. If no 58.7 fee is charged, districts must allocate costs based on the 58.8 number of pupils riding the route. 58.9 [EFFECTIVE DATE.] This section is effective for the 58.10 2003-2004 school year and later. 58.11 Sec. 18. Minnesota Statutes 2002, section 123B.49, 58.12 subdivision 4, is amended to read: 58.13 Subd. 4. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 58.14 (a) The board may take charge of and control all extracurricular 58.15 activities of the teachers and children of the public schools in 58.16 the district. Extracurricular activities means all direct and 58.17 personal services for pupils for their enjoyment that are 58.18 managed and operated under the guidance of an adult or staff 58.19 member. The board shall allow all resident pupils receiving 58.20 instruction in a home school as defined in section 123B.36, 58.21 subdivision 1, paragraph (a), and all resident pupils receiving 58.22 instruction in a charter school as defined in section 124D.10 to 58.23 be eligible to fully participate in extracurricular activities 58.24 on the same basis as public school students enrolled in the 58.25 district's schools. Charter school students participating in 58.26 extracurricular activities must meet the academic and student 58.27 conduct requirements of the charter school and resident district. 58.28 (b) Extracurricular activities have all of the following 58.29 characteristics: 58.30 (1) they are not offered for school credit nor required for 58.31 graduation; 58.32 (2) they are generally conducted outside school hours, or 58.33 if partly during school hours, at times agreed by the 58.34 participants, and approved by school authorities; 58.35 (3) the content of the activities is determined primarily 58.36 by the pupil participants under the guidance of a staff member 59.1 or other adult. 59.2 (c) If the board does not take charge of and control 59.3 extracurricular activities, these activities shall be 59.4 self-sustaining with all expenses, except direct salary costs 59.5 and indirect costs of the use of school facilities, met by dues, 59.6 admissions, or other student fund-raising events. The general 59.7 fund must reflect only those salaries directly related to and 59.8 readily identified with the activity and paid by public funds. 59.9 Other revenues and expenditures for extra curricular activities 59.10 must be recorded according to the "Manual of Instruction for 59.11 Uniform Student Activities Accounting for Minnesota School 59.12 Districts and Area Vocational-Technical Colleges." 59.13 Extracurricular activities not under board control must have an 59.14 annual financial audit and must also be audited annually for 59.15 compliance with this section. 59.16 (d) If the board takes charge of and controls 59.17 extracurricular activities, any or all costs of these activities 59.18 may be provided from school revenues and all revenues and 59.19 expenditures for these activities shall be recorded in the same 59.20 manner as other revenues and expenditures of the district. 59.21 (e) If the board takes charge of and controls 59.22 extracurricular activities, the teachers or pupils in the 59.23 district must not participate in such activity, nor shall the 59.24 school name or any allied name be used in connection therewith, 59.25 except by consent and direction of the board. 59.26 (f) School districts may charge charter schools their 59.27 proportional share of the direct and indirect costs of the 59.28 extracurricular activities not covered by student fees under 59.29 section 123B.36, subdivision 1. 59.30 [EFFECTIVE DATE.] This section is effective for the 59.31 2003-2004 school year and later. 59.32 Sec. 19. Minnesota Statutes 2002, section 123B.88, 59.33 subdivision 2, is amended to read: 59.34 Subd. 2. [VOLUNTARY SURRENDER OF TRANSPORTATION 59.35 PRIVILEGES.] The parent or guardian of asecondarystudent may 59.36 voluntarily surrender thesecondarystudent's to and from school 60.1 transportation privileges granted under subdivision 1. 60.2 Sec. 20. Minnesota Statutes 2002, section 124D.081, is 60.3 amended by adding a subdivision to read: 60.4 Subd. 9. [RESERVE ACCOUNT.] First grade preparedness 60.5 revenue must be placed in a reserve account within the general 60.6 fund and may only be used for first grade preparedness programs 60.7 at qualifying school sites. 60.8 Sec. 21. Minnesota Statutes 2002, section 124D.09, 60.9 subdivision 9, is amended to read: 60.10 Subd. 9. [ENROLLMENT PRIORITY.] A post-secondary 60.11 institution shall give priority to its post-secondary students 60.12 when enrolling 11th and 12th grade pupils in its courses. A 60.13 post-secondary institution may provide information about its 60.14 programs to a secondary school or to a pupil or parent, but it 60.15 may not advertise or otherwise recruit or solicit the 60.16 participationon financial grounds,of secondary pupils to 60.17 enroll in its programs on financial grounds. An institution 60.18 must not enroll secondary pupils, for post-secondary enrollment 60.19 options purposes, in remedial, developmental, or other courses 60.20 that are not college level. Once a pupil has been enrolled in a 60.21 post-secondary course under this section, the pupil shall not be 60.22 displaced by another student. 60.23 Sec. 22. Minnesota Statutes 2002, section 124D.09, 60.24 subdivision 10, is amended to read: 60.25 Subd. 10. [COURSES ACCORDING TO AGREEMENTS.] An eligible 60.26 pupil, according to subdivision45, may enroll in a 60.27 nonsectarian course taught by a secondary teacher or a 60.28 post-secondary faculty member and offered at a secondary school, 60.29 or another location, according to an agreement between a public 60.30 school board and the governing body of an eligible public 60.31 post-secondary system or an eligible private post-secondary 60.32 institution, as defined in subdivision 3. All provisions of 60.33 this section shall apply to a pupil, public school board, 60.34 district, and the governing body of a post-secondary 60.35 institution, except as otherwise provided. 60.36 Sec. 23. Minnesota Statutes 2002, section 124D.09, 61.1 subdivision 16, is amended to read: 61.2 Subd. 16. [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 61.3 ACCORDING TO AGREEMENTS.] (a) The agreement between a board and 61.4 the governing body of a public post-secondary system or private 61.5 post-secondary institution shall set forth the payment amounts 61.6 and arrangements, if any, from the board to the post-secondary 61.7 institution. No payments shall be made by the department 61.8 according to subdivision1413 or 15. For the purpose of 61.9 computing state aids for a district, a pupil enrolled according 61.10 to subdivision 10 shall be counted in the average daily 61.11 membership of the district as though the pupil were enrolled in 61.12 a secondary course that is not offered in connection with an 61.13 agreement. Nothing in this subdivision shall be construed to 61.14 prohibit a public post-secondary system or private 61.15 post-secondary institution from receiving additional state 61.16 funding that may be available under any other law. 61.17 (b) If a course is provided under subdivision 10, offered 61.18 at a secondary school, and taught by a secondary teacher, the 61.19 post-secondary system or institution must not require a payment 61.20 from the school board that exceeds the cost to the 61.21 post-secondary institution that is directly attributable to 61.22 providing that course. 61.23 Sec. 24. Minnesota Statutes 2002, section 124D.09, 61.24 subdivision 20, is amended to read: 61.25 Subd. 20. [TEXTBOOKS; MATERIALS.] All textbooks and 61.26 equipment provided to a pupil, and paid for under subdivision 61.27 13, are the property of the pupil'sschool district of residence61.28 postsecondary institution. Each pupil is required to return all 61.29 textbooks and equipment to thedistrictpostsecondary 61.30 institution after the course has ended. 61.31 Sec. 25. [124D.095] [DISTANCE EDUCATION OPTION.] 61.32 Subdivision 1. [CITATION.] This section may be cited as 61.33 the "Distance Education Option Act." 61.34 Subd. 2. [DEFINITIONS.] For purposes of this section, the 61.35 following terms have the meanings given them. 61.36 (a) "Distance education" is an interactive course or 62.1 program that delivers instruction to a student by video, audio, 62.2 computer, or multimedia communication; is combined with other 62.3 traditional delivery methods that include frequent student 62.4 assessment and actual teacher contact time; and meets or exceeds 62.5 state academic standards. 62.6 (b) "Distance education provider" is a school district, an 62.7 organization of two or more school districts operating under a 62.8 joint powers agreement, or a charter school located in Minnesota 62.9 that provides distance education to students. 62.10 (c) "Student" is a Minnesota resident enrolled in a school 62.11 under section 120A.22, subdivision 4, in kindergarten through 62.12 grade 12. 62.13 (d) "Distance education student" is a student enrolled in 62.14 distance education delivered by a distance education provider 62.15 under paragraph (b). 62.16 Subd. 3. [AUTHORIZATION; NOTICE; LIMITATIONS ON 62.17 ENROLLMENT.] (a) A student, or the parent or guardian of a 62.18 student age 17 or younger, may apply to a distance education 62.19 provider to enroll the student in distance education. No school 62.20 district or charter school may prohibit a student from applying 62.21 to enroll in distance education. A distance education provider 62.22 that accepts a student under this section must, within ten days, 62.23 notify the student and the student's school and school district 62.24 if the student is not enrolled in the school district or charter 62.25 school delivering the distance education. The notice must 62.26 report the student's course or program and hours of instruction. 62.27 (b) A distance education provider must notify the 62.28 commissioner that it is delivering distance education and report 62.29 the number of distance education students it is accepting and 62.30 the distance education courses and programs it is delivering. 62.31 (c) A distance education provider may limit enrollment if 62.32 the provider's school board or board of directors adopts by 62.33 resolution specific standards for accepting and rejecting 62.34 students' applications. 62.35 (d) An enrolling district may reduce a distance education 62.36 student's regular classroom instructional membership in 63.1 proportion to the student's membership in distance education 63.2 courses. 63.3 Subd. 4. [DISTANCE EDUCATION PARAMETERS.] (a) A distance 63.4 education student must receive academic credit for successfully 63.5 completing the requirements of a distance education course or 63.6 program. Secondary credits granted to a distance education 63.7 student must be counted toward the graduation and subject area 63.8 requirements of the school district or charter school in which 63.9 the student is enrolled. 63.10 (b) A distance education student may: 63.11 (1) enroll during a single school year in a maximum of 12 63.12 semester-long courses or their equivalent delivered by a 63.13 distance education provider or the school district or charter 63.14 school in which the distance education student is currently 63.15 enrolled; 63.16 (2) complete course work at a grade level that is different 63.17 from the student's current grade level; and 63.18 (3) enroll in additional courses with the distance 63.19 education provider under a separate agreement that includes 63.20 terms for payment of any tuition or course fees. 63.21 (c) A distance education student has the same access to the 63.22 computer hardware and education software available in a school 63.23 as all other students enrolled in the district or charter 63.24 school. A distance education provider must assist a distance 63.25 education student whose family qualifies for the education tax 63.26 credit under section 290.0674 to acquire computer hardware and 63.27 educational software for distance learning purposes. 63.28 Subd. 5. [PARTICIPATION IN EXTRACURRICULAR ACTIVITIES.] A 63.29 distance education student may participate in the 63.30 extracurricular activities of the charter school or school 63.31 district in which the student is currently enrolled on the same 63.32 basis as other students enrolled in the charter school or school 63.33 district. 63.34 Subd. 6. [INFORMATION.] School districts and charter 63.35 schools must make available information about distance education 63.36 to all interested people. 64.1 Subd. 7. [FINANCIAL ARRANGEMENTS.] (a) For a distance 64.2 education student enrolled in a distance education course, the 64.3 department must calculate average daily membership and make 64.4 payments according to this subdivision. 64.5 (b) The initial distance education average daily membership 64.6 equals 1/12 for each semester course or a proportionate amount 64.7 for courses of different lengths. The adjusted distance 64.8 education average daily membership equals the initial distance 64.9 education average daily membership times .88. 64.10 (c) No distance education average daily membership shall be 64.11 generated if: (i) the distance education student officially 64.12 withdraws from the distance education course during the first 15 64.13 days of the course, or (ii) the distance education student is 64.14 enrolled in distance education provided by the district or 64.15 charter school in which the student is currently enrolled and 64.16 the student was enrolled in a Minnesota public school for the 64.17 school year before the school year in which the student first 64.18 enrolled in distance education. 64.19 (d) Distance education average daily membership under this 64.20 subdivision for a distance education student currently enrolled 64.21 in a Minnesota public school and who was enrolled in a Minnesota 64.22 public school for the school year before the school year in 64.23 which the student first enrolled in distance education shall be 64.24 used only for the computation of average daily membership 64.25 according to section 126C.05, subdivision 19, paragraph (a), 64.26 clause (ii), and for the computation of distance education aid 64.27 according to section 126C.24. 64.28 (e) Distance education average daily membership under this 64.29 subdivision for distance education students not included in 64.30 paragraph (b) or (c) shall be used only for the computation of 64.31 average daily membership according to section 126C.05, 64.32 subdivision 19, paragraph (a), clause (ii), and for the 64.33 computation of payments under paragraphs (f) and (g). 64.34 (f) Subject to the limitations in subdivision 8, the 64.35 department must pay a distance education provider an amount 64.36 equal to the product of the adjusted distance education average 65.1 daily membership for students under paragraph (e) times the 65.2 student grade level weighting under section 126C.05, subdivision 65.3 1, times the formula allowance. 65.4 (g) The department must pay each distance education 65.5 provider 100 percent of the amount in paragraph (f) within 45 65.6 days of receiving initial enrollment information each quarter or 65.7 semester. If a change in enrollment occurs during a semester, 65.8 the distance education provider must report the change to the 65.9 department at the time it submits the enrollment information for 65.10 the next quarter or semester. 65.11 Subd. 8. [PAYMENT PRIORITY.] (a) To the extent funds are 65.12 available, the commissioner must pay a distance education 65.13 provider according to subdivision 7, in the order in which a 65.14 distance education provider notifies the commissioner under 65.15 subdivision 3, paragraph (b), that it is delivering distance 65.16 education. The distance education provider must submit to the 65.17 commissioner any student information necessary to process 65.18 payments under this section. 65.19 (b) Before paying other distance education providers under 65.20 paragraph (a), the commissioner must pay providers that 65.21 delivered distance education in fiscal year 2003. A provider's 65.22 qualifying number of pupils may not exceed 110 percent of the 65.23 previous year's pupils. A provider that qualifies under this 65.24 paragraph may also submit an application for funding for 65.25 additional pupils under paragraph (a). 65.26 [EFFECTIVE DATE.] This section is effective for the 65.27 2003-2004 school year and later. 65.28 Sec. 26. Minnesota Statutes 2002, section 124D.10, 65.29 subdivision 2a, is amended to read: 65.30 Subd. 2a. [CHARTER SCHOOL ADVISORY COUNCIL.] (a) A charter 65.31 school advisory council is established under section 65.32 15.059 except that the term for each council member shall be 65.33 three years. The advisory council is composed of seven members 65.34 from throughout the state who have demonstrated experience with 65.35 or interest in charter schools. The members of the council 65.36 shall be appointed by the commissioner. The advisory council 66.1 shall bring to the attention of the commissioner any matters 66.2 related to charter schools that the council deems necessary and 66.3 shall: 66.4 (1) encourage school boards to make full use of charter 66.5 school opportunities; 66.6 (2) encourage the creation of innovative schools; 66.7 (3) provide leadership and support for charter school 66.8 sponsors to increase the innovation in and the effectiveness, 66.9 accountability, and fiscal soundness of charter schools; 66.10 (4) serve an ombudsman function in facilitating the 66.11 operations of new and existing charter schools; 66.12 (5) promote timely financial management training for newly 66.13 elected members of a charter school board of directors and 66.14 ongoing training for other members of a charter school board of 66.15 directors; and 66.16 (6)review charter school applications and recommend66.17approving or disapproving the applications; and66.18(7)facilitate compliance with auditing and other reporting 66.19 requirements. The advisory council shall refer all its 66.20 proposals to the commissioner who shall provide time for reports 66.21 from the council. 66.22 (b) The charter school advisory council under this 66.23 subdivision expires June 30,20032007. 66.24 Sec. 27. Minnesota Statutes 2002, section 124D.10, 66.25 subdivision 3, is amended to read: 66.26 Subd. 3. [SPONSOR.] A school board; intermediate school 66.27 district school board; education district organized under 66.28 sections 123A.15 to 123A.19; charitable organization under 66.29 section 501(c)(3) of the Internal Revenue Code of 1986 that is a 66.30 member of the Minnesota council of nonprofits or the Minnesota 66.31 council on foundations, registered with the attorney general's 66.32 office, and reports an end-of-year fund balance of at least 66.33 $2,000,000; Minnesota private college that grants two- or 66.34 four-year degrees and is registered with the higher education 66.35 services office under chapter 136A; community college, state 66.36 university, or technical college, governed by the board of 67.1 trustees of the Minnesota state colleges and universities; or 67.2 the University of Minnesota may sponsor one or more charter 67.3 schools. A nonprofit corporation subject to chapter 317A, 67.4 described in section 317A.905, and exempt from federal income 67.5 tax under section 501(c)(6) of the Internal Revenue Code of 67.6 1986, may sponsor one or more charter schools if the nonprofit 67.7 corporation has existed for at least 25 years. 67.8 [EFFECTIVE DATE.] This section is effective for the 67.9 2003-2004 school year and later. 67.10 Sec. 28. Minnesota Statutes 2002, section 124D.10, 67.11 subdivision 4, is amended to read: 67.12 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 67.13 authorize one or more licensed teachers under section 122A.18, 67.14 subdivision 1, to operate a charter school subject to approval 67.15 by the commissioner. A board must vote on charter school 67.16 application for sponsorship no later than 90 days after 67.17 receiving the application. After 90 days, the applicant may 67.18 apply to the commissioner. If a board elects not to sponsor a 67.19 charter school, the applicant may appeal the board's decision to 67.20 the commissioner. The commissioner may elect to sponsor the 67.21 charter school or assist the applicant in finding an eligible 67.22 sponsor. The school must be organized and operated as a 67.23 cooperative under chapter 308A or nonprofit corporation under 67.24 chapter 317A and the provisions under the applicable chapter 67.25 shall apply to the school except as provided in this section. 67.26 Notwithstanding sections 465.717 and 465.719, a school district 67.27 may create a corporation for the purpose of creating a charter 67.28 school. 67.29 (b) Before the operators may form and operate a school, the 67.30 sponsor must file an affidavit with the commissioner stating its 67.31 intent to authorize a charter school. The affidavit must state 67.32 the terms and conditions under which the sponsor would authorize 67.33 a charter school. The commissioner must approve or disapprove 67.34 the sponsor's proposed authorization within 60 days of receipt 67.35 of the affidavit. Failure to obtain commissioner approval 67.36 precludes a sponsor from authorizing the charter school that was 68.1 the subject of the affidavit. 68.2 (c) The operators authorized to organize and operate a 68.3 school, before entering into a contract or other agreement for 68.4 professional or other services, goods, or facilities, must 68.5 incorporate as a cooperative under chapter 308A or as a 68.6 nonprofit corporation under chapter 317A and must establish a 68.7 board of directors composed of at least five members until a 68.8 timely election for members of the charter school board of 68.9 directors is held according to the school's articles and 68.10 bylaws. A charter school board of directors must be composed of 68.11 at least five members. Any staff members who are employed at 68.12 the school, including teachers providing instruction under a 68.13 contract with a cooperative, and all parents of children 68.14 enrolled in the school may participate in the election for 68.15 members of the school's board of directors. Licensed teachers 68.16 employed at the school, including teachers providing instruction 68.17 under a contract with a cooperative, must be a majority of the 68.18 members of the board of directors before the school completes 68.19 its third year of operation, unless the commissioner waives the 68.20 requirement for a majority of licensed teachers on the board. 68.21 Board of director meetings must comply with chapter 13D. 68.22 (d) The granting or renewal of a charter by a sponsoring 68.23 entity must not be conditioned upon the bargaining unit status 68.24 of the employees of the school. 68.25 (e) A sponsor may authorize the operators of a charter 68.26 school to expand the operation of the charter school to 68.27 additional sites or to add additional grades at the school 68.28 beyond those described in the sponsor's application as approved 68.29 by the commissioner only after submitting a supplemental 68.30 application to the commissioner in a form and manner prescribed 68.31 by the commissioner. The supplemental application must provide 68.32 evidence that: 68.33 (1) the expansion of the charter school is supported by 68.34 need and projected enrollment; 68.35 (2) the charter school is fiscally sound; 68.36 (3) the sponsor supports the expansion; and 69.1 (4) the building of the additional site meets all health 69.2 and safety requirements to be eligible for lease aid. 69.3 (f) The commissioner annually must provide timely financial 69.4 management training to newly elected members of a charter school 69.5 board of directors and ongoing training to other members of a 69.6 charter school board of directors. Training must address ways 69.7 to: 69.8 (1) proactively assess opportunities for a charter school 69.9 to maximize all available revenue sources; 69.10 (2) establish and maintain complete, auditable records for 69.11 the charter school; 69.12 (3) establish proper filing techniques; 69.13 (4) document formal actions of the charter school, 69.14 including meetings of the charter school board of directors; 69.15 (5) properly manage and retain charter school and student 69.16 records; 69.17 (6) comply with state and federal payroll record-keeping 69.18 requirements; and 69.19 (7) address other similar factors that facilitate 69.20 establishing and maintaining complete records on the charter 69.21 school's operations. 69.22 Sec. 29. Minnesota Statutes 2002, section 124D.10, 69.23 subdivision 8, is amended to read: 69.24 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 69.25 school shall meet all applicable state and local health and 69.26 safety requirements. 69.27 (b) A school sponsored by a school board may be located in 69.28 any district, unless the school board of the district of the 69.29 proposed location disapproves by written resolution. 69.30 (c) A charter school must be nonsectarian in its programs, 69.31 admission policies, employment practices, and all other 69.32 operations. A sponsor may not authorize a charter school or 69.33 program that is affiliated with a nonpublic sectarian school or 69.34 a religious institution. 69.35 (d) Charter schools must not be used as a method of 69.36 providing education or generating revenue for students who are 70.1 being home-schooled. 70.2 (e) The primary focus of a charter school must be to 70.3 provide a comprehensive program of instruction for at least one 70.4 grade or age group from five through 18 years of age. 70.5 Instruction may be provided to people younger than five years 70.6 and older than 18 years of age. 70.7 (f) A charter school may not charge tuition. 70.8 (g) A charter school is subject to and must comply with 70.9 chapter 363 and section 121A.04. 70.10 (h) A charter school is subject to and must comply with the 70.11 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 70.12 Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 70.13 (i) A charter school is subject to the same financial 70.14 audits, audit procedures, and audit requirements as a district. 70.15 Audits must be conducted in compliance with generally accepted 70.16 governmental auditing standards, the Federal Single Audit Act, 70.17 if applicable, and section 6.65. A charter school is subject to 70.18 and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 70.19 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 70.20 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 70.21 4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must 70.22 comply with the requirements of sections 123B.75 to 123B.83, 70.23 except to the extent deviations are necessary because of the 70.24 program at the school. Deviations must be approved by the 70.25 commissioner. The department ofchildren, families, and70.26learningeducation, state auditor, or legislative auditor may 70.27 conduct financial, program, or compliance audits. A charter 70.28 school determined to be in statutory operating debt under 70.29 sections 123B.81 to 123B.83 must submit a plan under section 70.30 123B.81, subdivision 4. 70.31 (j) A charter school is a district for the purposes of tort 70.32 liability under chapter 466. 70.33 (k) A charter school must comply with sections 13.32; 70.34 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 70.35 and 5. 70.36 (l) A charter school where students participate in the 71.1 extracurricular activities of the student's resident school 71.2 district is subject to sections 123B.36, subdivision 1, clause 71.3 (10), and 123B.49, subdivision 4, paragraph (a). 71.4 (m) A charter school is subject to the pledge of allegiance 71.5 requirement under section 121A.11, subdivision 3. 71.6 [EFFECTIVE DATE.] This section is effective for the 71.7 2003-2004 school year and later. 71.8 Sec. 30. Minnesota Statutes 2002, section 124D.10, 71.9 subdivision 16, is amended to read: 71.10 Subd. 16. [TRANSPORTATION.] (a) By July 1 of each year, a 71.11 charter school must notify the district in which the school is 71.12 located and the department ofchildren, families, and71.13learningeducation if it will provide transportation for pupils 71.14 enrolled in the school for the fiscal year. 71.15 (b) If a charter school elects to provide transportation 71.16 for pupils, the transportation must be provided by the charter 71.17 school within the district in which the charter school is 71.18 located. The state must pay transportation aid to the charter 71.19 school according to section 124D.11, subdivision 2. 71.20 For pupils who reside outside the district in which the 71.21 charter school is located, the charter school is not required to 71.22 provide or pay for transportation between the pupil's residence 71.23 and the border of the district in which the charter school is 71.24 located. A parent may be reimbursed by the charter school for 71.25 costs of transportation from the pupil's residence to the border 71.26 of the district in which the charter school is located if the 71.27 pupil is from a family whose income is at or below the poverty 71.28 level, as determined by the federal government. The 71.29 reimbursement may not exceed the pupil's actual cost of 71.30 transportation or 15 cents per mile traveled, whichever is 71.31 less. Reimbursement may not be paid for more than 250 miles per 71.32 week. 71.33 At the time a pupil enrolls in a charter school, the 71.34 charter school must provide the parent or guardian with 71.35 information regarding the transportation. 71.36 (c) If a charter school does not elect to provide 72.1 transportation, transportation for pupils enrolled at the school 72.2 must be provided by the district in which the school is located, 72.3 according to sections 123B.88, subdivision 6, and 124D.03, 72.4 subdivision 8, for a pupil residing in the same district in 72.5 which the charter school is located. Transportation may be 72.6 provided by the district in which the school is located, 72.7 according to sections 123B.88, subdivision 6, and 124D.03, 72.8 subdivision 8, for a pupil residing in a different district. If 72.9 the district provides the transportation, the scheduling of 72.10 routes, manner and method of transportation, control and 72.11 discipline of the pupils, and any other matter relating to the 72.12 transportation of pupils under this paragraph shall be within 72.13 the sole discretion, control, and management of the district. 72.14 Sec. 31. Minnesota Statutes 2002, section 124D.10, 72.15 subdivision 20, is amended to read: 72.16 Subd. 20. [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 72.17 teacher employed by a district makes a written request for an 72.18 extended leave of absence to teach at a charter school, the 72.19 district must grant the leave. The district must grant a leave 72.20for any number ofnot to exceed a total of five yearsrequested72.21by the teacher, and must. Any request to extend the leaveat72.22the teacher's requestshall be granted only at the discretion of 72.23 the school board. The district may require that the request for 72.24 a leave or extension of leave be made up to 90 days before the 72.25 teacher would otherwise have to report for duty. Except as 72.26 otherwise provided in this subdivision and except for section 72.27 122A.46, subdivision 7, the leave is governed by section 72.28 122A.46, including, but not limited to, reinstatement, notice of 72.29 intention to return, seniority, salary, and insurance. 72.30 During a leave, the teacher may continue to aggregate 72.31 benefits and credits in the teachers' retirement association 72.32 account by paying both the employer and employee contributions 72.33 based upon the annual salary of the teacher for the last full 72.34 pay period before the leave began. The retirement association 72.35 may impose reasonable requirements to efficiently administer 72.36 this subdivision. 73.1 [EFFECTIVE DATE.] This section is effective the day 73.2 following final enactment and applies to approvals of leaves or 73.3 approvals of extensions of leaves made after that date. 73.4 Notwithstanding Minnesota Statutes 2002, section 122A.46, 73.5 subdivision 2, a school district, upon request, must grant a 73.6 one-year extension for the 2003-2004 school year to a teacher on 73.7 a leave of absence to teach at a charter school under this 73.8 subdivision who has taught five or more years as of the 73.9 2003-2004 school year. 73.10 Sec. 32. Minnesota Statutes 2002, section 124D.11, 73.11 subdivision 1, is amended to read: 73.12 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 73.13 education revenue must be paid to a charter school as though it 73.14 were a district. The general education revenue for each 73.15 adjusted marginal cost pupil unit is the state average general 73.16 education revenue per pupil unit, plus the referendum 73.17 equalization aid allowance in the pupil's district of residence, 73.18 minus an amount equal to the product of the formula allowance 73.19 according to section 126C.10, subdivision 2, times .0485, 73.20 calculated without basic skills revenue, and transportation 73.21 sparsity revenue,and the transportation portion of the73.22transition revenue adjustment,plus basic skills revenue and 73.23 transition revenue as though the school were a school district. 73.24 (b) Notwithstanding paragraph (a), for charter schools in 73.25 the first year of operation, general education revenue shall be 73.26 computed using the number of adjusted pupil units in the current 73.27 fiscal year. 73.28 Sec. 33. Minnesota Statutes 2002, section 124D.11, 73.29 subdivision 2, is amended to read: 73.30 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 73.31 must be paid to a charter school that provides transportation 73.32 services according to section 124D.10, subdivision 16, according 73.33 to this subdivision. Transportation aid shall equal 73.34 transportation revenue. 73.35 In addition to the revenue under subdivision 1, a charter 73.36 school providing transportation services must receive general 74.1 education aid for each pupil unit equal to the sum of an amount 74.2 equal to the product of the formula allowance according to 74.3 section 126C.10, subdivision 2, times .0485, plus the 74.4 transportation sparsity allowance for the school district in 74.5 which the charter school is located, plus the transportation74.6transition allowance for the district in which the charter74.7school is located. 74.8 Sec. 34. Minnesota Statutes 2002, section 124D.11, 74.9 subdivision 4, is amended to read: 74.10 Subd. 4. [BUILDING LEASE AID.] When a charter school finds 74.11 it economically advantageous to rent or lease a building or land 74.12 for any instructional purposes and it determines that the total 74.13 operating capital revenue under section 126C.10, subdivision 13, 74.14 is insufficient for this purpose, it may apply to the 74.15 commissioner for building lease aid for this purpose. The 74.16 commissioner must review and either approve or deny a lease aid 74.17 application using the following criteria: 74.18 (1) the reasonableness of the price based on current market 74.19 values; 74.20 (2) the extent to which the lease conforms to applicable 74.21 state laws and rules; and 74.22 (3) the appropriateness of the proposed lease in the 74.23 context of the space needs and financial circumstances of the 74.24 charter school. 74.25 A charter school must not use the building lease aid it receives 74.26 for custodial, maintenance service, utility, or other operating 74.27 costs. The amount of building lease aid per pupil unit served 74.28 for a charter school for any year shall not exceed the lesser of 74.29 (a) 90 percent of the approved cost or (b) the product of the 74.30 pupil units served for the current school year times$1,500the 74.31 greater of the charter school's building lease aid per pupil 74.32 unit served for fiscal year 2003, excluding the adjustment under 74.33 Laws 2002, chapter 392, article 6, section 4, or $1,200. 74.34 [EFFECTIVE DATE.] This section is effective for revenue for 74.35 fiscal year 2004. 74.36 Sec. 35. Minnesota Statutes 2002, section 124D.11, 75.1 subdivision 6, is amended to read: 75.2 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 75.3 school is eligible to receive other aids, grants, and revenue 75.4 according to chapters 120A to 129C, as though it were a district. 75.5 (b) Notwithstanding paragraph (a), a charter school may not 75.6 receive aid, a grant, or revenue if a levy is required to obtain 75.7 the money, except as otherwise provided in this section. 75.8 (c) Federal aid received by the state must be paid to the 75.9 school, if it qualifies for the aid as though it were a school 75.10 district. 75.11 (d) A charter school may receive money from any source for 75.12 capital facilities needs. In the year-end report to the 75.13 commissioner ofchildren, families, and learningeducation, the 75.14 charter school shall report the total amount of funds received 75.15 from grants and other outside sources. 75.16(e) Notwithstanding paragraph (a) or (b), a charter school75.17may apply for a grant to receive the aid portion of integration75.18revenue under section 124D.86, subdivision 3, for enrolled75.19students who are residents of a district that is eligible for75.20integration revenue. The commissioner shall determine grant75.21recipients and may adopt application guidelines. The grants75.22must be competitively determined and must demonstrate that75.23enrolling pupils in the charter school contributes to75.24desegregation or integration purposes as determined by the75.25commissioner. If the charter school has elected not to provide75.26transportation under section 124D.10, subdivision 16, the aid75.27shall be reduced by the amount per pupil unit specified for the75.28district where the charter school is located under section75.29123B.92, subdivision 8.75.30 [EFFECTIVE DATE.] This section is effective for revenue for 75.31 fiscal year 2004. 75.32 Sec. 36. Minnesota Statutes 2002, section 124D.128, 75.33 subdivision 3, is amended to read: 75.34 Subd. 3. [STUDENT PLANNING.] A district must inform all 75.35 pupils and their parents about the learning year programand75.36that participation in the program is optional. A continual 76.1 learning plan must be developed at least annually for each pupil 76.2 with the participation of the pupil, parent or guardian, 76.3 teachers, and other staff; each participant must sign and date 76.4 the plan. The plan must specify the learning experiences that 76.5 must occur during the entire fiscal year and, for secondary 76.6 students, for graduation. The plan must include: 76.7 (1) the pupil's learning objectives and experiences, 76.8 including courses or credits the pupil plans to complete each 76.9 year and, for a secondary pupil, the graduation requirements the 76.10 student must complete; 76.11 (2) the assessment measurements used to evaluate a pupil's 76.12 objectives; 76.13 (3) requirements for grade level or other appropriate 76.14 progression; and 76.15 (4) for pupils generating more than one average daily 76.16 membership in a given grade, an indication of which objectives 76.17 were unmet. 76.18 The plan may be modified to conform to district schedule 76.19 changes. The district may not modify the plan if the 76.20 modification would result in delaying the student's time of 76.21 graduation. 76.22 [EFFECTIVE DATE.] This section is effective the day 76.23 following final enactment. 76.24 Sec. 37. Minnesota Statutes 2002, section 124D.42, 76.25 subdivision 6, is amended to read: 76.26 Subd. 6. [PROGRAM TRAINING.] (a) The commission must, 76.27 within available resources, ensure an opportunity for each 76.28 participant to have three weeks of training in a residential 76.29 setting. If offered, each training session must: 76.30 (1) orient each participant in the nature, philosophy, and 76.31 purpose of the program; 76.32 (2) build an ethic of community service through general 76.33 community service training; and 76.34 (3) provide additional training as it determines necessary, 76.35 which may include training in evaluating early literacy skills 76.36 and teaching reading to preschool children through the St. Croix 77.1 River education district under Laws 2001, First Special Session 77.2 chapter 6, article 2, section 70, to assist local Head Start 77.3 organizations in establishing and evaluating Head Start programs 77.4 for developing children's early literacy skills. 77.5 (b) Each grantee organization shall also train participants 77.6 in skills relevant to the community service opportunity. 77.7 Sec. 38. Minnesota Statutes 2002, section 124D.86, 77.8 subdivision 1a, is amended to read: 77.9 Subd. 1a. [BUDGET APPROVAL PROCESS.] Each year before a 77.10 district receives any revenue under subdivision 3, clause (4), 77.11 (5), or (6), the district must submit to the department of 77.12children, families, and learningeducation, for its review and 77.13 approval a budget detailing the costs of the 77.14 desegregation/integration plan filed under Minnesota Rules, 77.15 parts 3535.0100 to 3535.0180. Notwithstanding chapter 14, the 77.16 department may develop criteria for budget approval. The 77.17 department shall consult with the desegregation advisory board 77.18 in developing these criteria. The criteria developed by the 77.19 department should address, at a minimum, the following: 77.20 (1) budget items cannot be approved unless they are part of 77.21 any overall desegregation plan approved by the district for 77.22 isolated sites or by the multidistrict collaboration council and 77.23 participation individual members; 77.24 (2) the budget must indicate how revenue expenditures will 77.25 be used specifically to support increased opportunities for 77.26 interracial contact; 77.27 (3) components of the budget to be considered by the 77.28 department, including staffing, curriculum, transportation, 77.29 facilities, materials, and equipment and reasonable planning 77.30 costs, as determined by the department; and 77.31 (4) if plans are proposed to enhance existing programs, the 77.32 total budget being appropriated to the program must be included, 77.33 indicating what part is to be funded using integration revenue 77.34 and what part is to be funded using other revenues. 77.35 [EFFECTIVE DATE.] This section is effective retroactively 77.36 for revenue for fiscal year 2003. 78.1 Sec. 39. Minnesota Statutes 2002, section 124D.86, 78.2 subdivision 3, is amended to read: 78.3 Subd. 3. [INTEGRATION REVENUE.] Integration revenue equals 78.4 the following amounts: 78.5 (1) for independent school district No. 709, 78.6 Duluth,$207$212 times the adjusted pupil units for the school 78.7 year; 78.8 (2) for independent school district No. 625, St. 78.9 Paul,$446$464 times the adjusted pupil units for the school 78.10 year; 78.11 (3) for special school district No. 1, Minneapolis, the sum 78.12 of$446$473 times the adjusted pupil units for the school year 78.13 and an additional$35$40 times the adjusted pupil units for the 78.14 school year that is provided entirely through a local levy; 78.15 (4) for a district not listed in clause (1), (2), or (3), 78.16 that must implement a plan under Minnesota Rules, parts 78.17 3535.0100 to 3535.0180, where the district's enrollment of 78.18 protected students, as defined under Minnesota Rules, part 78.19 3535.0110, exceeds 15 percent, the lesser of (i) the actual cost 78.20 of implementing the plan during the fiscal year minus the aid 78.21 received under subdivision 6, or (ii)$130$133 times the 78.22 adjusted pupil units for the school year; 78.23 (5) for a district not listed in clause (1), (2), (3), or 78.24 (4), that is required to implement a plan according to the 78.25 requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 78.26 the lesser of 78.27 (i) the actual cost of implementing the plan during the 78.28 fiscal year minus the aid received under subdivision 6, or 78.29 (ii)$93$94 times the adjusted pupil units for the school 78.30 year. 78.31 Any money received by districts in clauses (1) to(4)(3) 78.32 which exceeds the amount received in fiscal year 2000 shall be 78.33 subject to the budget requirements in subdivision 1a; and 78.34 (6) for a member district of a multidistrict integration 78.35 collaborative that files a plan with the commissioner, but is 78.36 not contiguous to a racially isolated district, integration 79.1 revenue equals the amount defined in clause (5). 79.2 [EFFECTIVE DATE.] This section is effective for revenue for 79.3 fiscal year 2004. 79.4 Sec. 40. Minnesota Statutes 2002, section 124D.86, 79.5 subdivision 4, is amended to read: 79.6 Subd. 4. [INTEGRATION LEVY.] A district may levy an amount 79.7 equal to 37 percent for fiscal year 2003,2223 percent for 79.8 fiscal year 2004,29and 30 percent for fiscal year 2005, and 2279.9percent for fiscal year 2006and thereafter of the district's 79.10 integration revenue as defined in subdivision 3. 79.11 [EFFECTIVE DATE.] This section is effective for revenue for 79.12 fiscal year 2004. 79.13 Sec. 41. Minnesota Statutes 2002, section 124D.86, 79.14 subdivision 5, is amended to read: 79.15 Subd. 5. [INTEGRATION AID.] A district's integration aid 79.16 equals63 percent for fiscal year 2003, 78 percent for fiscal79.17year 2004, 71 percent for fiscal year 2005, and 78 percent for79.18fiscal year 2006 and thereafter ofthe difference between the 79.19 district's integration revenueas defined in subdivision 3and 79.20 its integration levy. 79.21 [EFFECTIVE DATE.] This section is effective for revenue for 79.22 fiscal year 2004. 79.23 Sec. 42. Minnesota Statutes 2002, section 124D.86, 79.24 subdivision 6, is amended to read: 79.25 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 79.26 integration aid under subdivision 5 must be adjusted for each 79.27 pupil residing in a district eligible for integration revenue 79.28 under subdivision 3, clause (1), (2), or (3), and attending a 79.29 nonresident district under sections 123A.05 to 123A.08, 124D.03, 79.30 124D.06,124D.07,and 124D.08, that is not eligible for 79.31 integration revenue under subdivision 3, clause (1), (2), or 79.32 (3), and has implemented a plan under Minnesota Rules, parts 79.33 3535.0100 to 3535.0180, if the enrollment of the pupil in the 79.34 nonresident district contributes to desegregation or integration 79.35 purposes. The adjustments must be made according to this 79.36 subdivision. 80.1 (b) Aid paid to a district serving nonresidents must be 80.2 increased by an amount equal to the revenue per pupil unit of 80.3 the resident district under subdivision 3, clause (1), (2), or 80.4 (3), minus the revenue attributable to the pupil in the 80.5 nonresident district under subdivision 3, clause (4), (5), or 80.6 (6), for the time the pupil is enrolled in the nonresident 80.7 district. 80.8 [EFFECTIVE DATE.] This section is effective retroactively 80.9 for fiscal year 2003. 80.10 Sec. 43. Minnesota Statutes 2002, section 126C.05, is 80.11 amended by adding a subdivision to read: 80.12 Subd. 19. [DISTANCE EDUCATION STUDENTS.] (a) The average 80.13 daily membership for a public school pupil generating distance 80.14 education average daily membership according to section 80.15 124D.095, subdivision 7, paragraph (a), equals the sum of: (i) 80.16 the ratio of the sum of the number of instructional hours the 80.17 pupil is enrolled in a regular classroom setting at the 80.18 enrolling school to the actual number of instructional hours in 80.19 the school year at the enrolling school, plus (ii) .12 times the 80.20 initial distance education average daily membership according to 80.21 section 124D.095, subdivision 7, paragraph (a). 80.22 (b) When the sum of the average daily membership under 80.23 paragraph (a) and the adjusted distance education average daily 80.24 membership under section 124D.095, subdivision 7, paragraph (a), 80.25 exceeds the maximum allowed for the student under subdivision 8 80.26 or 15, as applicable, the average daily membership under 80.27 paragraph (a) shall be reduced by the excess over the maximum, 80.28 but shall not be reduced below .12. The adjusted distance 80.29 education average daily membership according to section 80.30 124D.095, subdivision 7, paragraph (a) shall be reduced by any 80.31 remaining excess over the maximum. 80.32 Sec. 44. [126C.24] [DISTANCE EDUCATION AID.] 80.33 (a) The distance education aid for a distance education 80.34 provider equals the product of the adjusted distance education 80.35 average daily membership for students under section 124D.095, 80.36 subdivision 7, paragraph (c), times the student grade level 81.1 weighting under section 126C.05, subdivision 1, times the 81.2 formula allowance. 81.3 (b) Notwithstanding section 127A.45, the department must 81.4 pay each distance education provider 77 percent of the amount in 81.5 paragraph (a) within 45 days of receiving initial enrollment 81.6 information each quarter or semester. If a change in enrollment 81.7 occurs during a quarter or semester, the distance education 81.8 provider must report the change to the department at the time it 81.9 submits the enrollment information for the next quarter or 81.10 semester. A final payment equal to 23 percent of the amount in 81.11 paragraph (a) must be made on September 30 of the next fiscal 81.12 year. 81.13 Sec. 45. Minnesota Statutes 2002, section 126C.44, is 81.14 amended to read: 81.15 126C.44 [SAFE SCHOOLS LEVY.] 81.16 Each district may make a levy on all taxable property 81.17 located within the district for the purposes specified in this 81.18 section. The maximum amount which may be levied for all costs 81.19 under this section shall be equal to$30$31 multiplied by the 81.20 district's adjusted marginal cost pupil units for the school 81.21 year. The proceeds of the levy must be used for directly 81.22 funding the following purposes or for reimbursing the cities and 81.23 counties who contract with the district for the following 81.24 purposes: (1) to pay the costs incurred for the salaries, 81.25 benefits, and transportation costs of peace officers and 81.26 sheriffs for liaison in services in the district's schools; (2) 81.27 to pay the costs for a drug abuse prevention program as defined 81.28 in section 609.101, subdivision 3, paragraph (e), in the 81.29 elementary schools; (3) to pay the costs for a gang resistance 81.30 education training curriculum in the district's schools; (4) to 81.31 pay the costs for security in the district's schools and on 81.32 school property; or (5) to pay the costs for other crime 81.33 prevention, drug abuse, student and staff safety, and violence 81.34 prevention measures taken by the school district. The district 81.35 must initially attempt to contract for services to be provided 81.36 by peace officers or sheriffs with the police department of each 82.1 city or the sheriff's department of the county within the 82.2 district containing the school receiving the services. If a 82.3 local police department or a county sheriff's department does 82.4 not wish to provide the necessary services, the district may 82.5 contract for these services with any other police or sheriff's 82.6 department located entirely or partially within the school 82.7 district's boundaries. The levy authorized under this section 82.8 is not included in determining the school district's levy 82.9 limitations. 82.10 [EFFECTIVE DATE.] This section is effective for taxes 82.11 payable in 2004. 82.12 Sec. 46. Minnesota Statutes 2002, section 128C.05, is 82.13 amended by adding a subdivision to read: 82.14 Subd. 1a. [SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.] (a) 82.15 Notwithstanding Minnesota Rules, part 4717.3750, any pool built 82.16 before January 1, 1987, that complies with the swimming and 82.17 diving rules of the national federation of state high school 82.18 associations may be used for supervised competitive high school 82.19 diving. A school or district using a pool for supervised 82.20 competitive high school diving under this provision must provide 82.21 appropriate notice to parents and participants. 82.22 (b) Paragraph (a) applies only to a school or district that 82.23 provided a high school diving program during the 2000-2001 82.24 school year. 82.25 [EFFECTIVE DATE.] This section is effective for the 82.26 2003-2004 school year and later. 82.27 Sec. 47. [179A.175] [TEACHER/SCHOOL BOARD NEGOTIATIONS.] 82.28 Subdivision 1. [APPLICATION.] This section applies to 82.29 negotiations between a school board and an exclusive 82.30 representative of teachers. 82.31 Subd. 2. [ARBITRATION.] If the school board and the 82.32 exclusive representative have not executed a new contract by 82.33 July 1 of an odd-numbered year, the parties must certify the 82.34 items in dispute to the commissioner of mediation services for 82.35 final-offer, total-package interest arbitration. If the parties 82.36 disagree on items subject to arbitration, the commissioner must 83.1 determine the items to be decided. Arbitration is governed by 83.2 section 179A.16, except that: 83.3 (1) the arbitration shall be final-offer, total-package 83.4 interest arbitration; 83.5 (2) participation is mandatory; 83.6 (3) unless both parties agree that the results are binding, 83.7 the results are not binding on either party; and 83.8 (4) if the arbitration is not binding, the arbitrator must 83.9 issue a decision by August 10. 83.10 Subd. 3. [POST-ARBITRATION PROCEDURES.] Immediately after 83.11 receiving a nonbinding arbitration decision, the school board 83.12 must make reasonable efforts to publicize the decision. Within 83.13 ten days of receiving the decision: (1) the school board must 83.14 conduct a public hearing, at which the school board must vote to 83.15 accept or reject the decision; and (2) the exclusive 83.16 representative must submit the decision to the members of the 83.17 bargaining unit for acceptance or rejection by secret ballot and 83.18 must certify the results of that election to the school board 83.19 and the commissioner of mediation services. If both parties 83.20 accept the decision, the parties must execute a contract based 83.21 on the decision within ten days of acceptance. 83.22 Subd. 4. [STRUCTURAL BALANCE.] An arbitration decision and 83.23 a contract entered into under this section must comply with the 83.24 structural balance requirements of section 123B.749. 83.25 Subd. 5. [NO SCHOOL; NO PAY.] (a) A school district must 83.26 not conduct school after September 1 of an odd-numbered year 83.27 unless a contract between the school and the exclusive 83.28 representative of teachers has been executed. However, a school 83.29 district may conduct school during this period: 83.30 (1) for up to ten school days if the school board and the 83.31 exclusive representative of teachers have reached a tentative 83.32 agreement on a contract that is in the process of being 83.33 ratified; or 83.34 (2) if the school board and the exclusive representative 83.35 have agreed to binding arbitration under section 179A.16. 83.36 (b) A teacher must not be paid for a day on which the 84.1 employing school district is prohibited from conducting school, 84.2 as provided in this section and the school district is not 84.3 permitted to make up any lost days. 84.4 [EFFECTIVE DATE.] This section is effective the day 84.5 following final enactment. 84.6 Sec. 48. Minnesota Statutes 2002, section 179A.18, 84.7 subdivision 2, is amended to read: 84.8 Subd. 2. [SCHOOL DISTRICT REQUIREMENTS.] Except as 84.9 otherwise provided by section 179A.17, subdivision 1, teachers 84.10 employed by a local school district, other than principals and 84.11 assistant principals, may strike only under the following 84.12 circumstances: 84.13 (1)(a) the collective bargaining agreement between their 84.14 exclusive representative and their employer has expired or, if 84.15 there is no agreement, impasse under section 179A.17, 84.16 subdivision 1, has occurred; and 84.17 (b) the exclusive representative and the employer have 84.18 participated in mediation over a period of at least 30 days. 84.19 For the purposes of this subclause the mediation period 84.20 commences on the day that a mediator designated by the 84.21 commissioner first attends a conference with the parties to 84.22 negotiate the issues not agreed upon; and 84.23 (c) neither party has requested binding interest 84.24 arbitration or a request for binding interest arbitration has 84.25 been rejected; or 84.26 (2) the employer violates section 179A.13, subdivision 2, 84.27 clause (9). 84.28 Sec. 49. Minnesota Statutes 2002, section 205A.03, 84.29 subdivision 1, is amended to read: 84.30 Subdivision 1. [RESOLUTIONREQUIRED PRIMARY IN CERTAIN 84.31 CIRCUMSTANCES.]The school board of a school district may, by84.32resolution adopted by June 1 of any year, decide to choose84.33nominees for school district elective offices by a primary as84.34provided in subdivisions 1 to 6. The resolution, when adopted,84.35is effective for all ensuing elections of board members in that84.36school district until it is revoked.In a school district 85.1 election, if there are more than two candidates for a specified 85.2 school board position or more than twice as many school board 85.3 candidates as there are at-large school board positions 85.4 available, a school district must hold a primary. 85.5 [EFFECTIVE DATE.] This section is effective the day 85.6 following final enactment for independent school district No. 85.7 742. This section is effective January 1, 2004, for all other 85.8 school districts and applies to school board elections held in 85.9 2004 and thereafter. 85.10 Sec. 50. Minnesota Statutes 2002, section 205A.03, 85.11 subdivision 3, is amended to read: 85.12 Subd. 3. [CANDIDATES, FILING.] The clerk shall place upon 85.13 the primary ballot without partisan designation the names of 85.14 individuals whose candidacies have been filed and for whom the 85.15 proper filing fee has been paid. When not more than twicethe85.16number of individuals to be elected to a school district85.17elective officeas many school board candidates as there are 85.18 at-large school board positions available file for nomination 85.19 for the office or when not more than two candidates for a 85.20 specified school board position file for nomination for that 85.21 office, their names must not be placed upon the primary ballot 85.22 and must be placed on the school district general election 85.23 ballot as the nominees for that office. 85.24 Sec. 51. Minnesota Statutes 2002, section 205A.03, 85.25 subdivision 4, is amended to read: 85.26 Subd. 4. [RESULTS.] The school district primary must be 85.27 conducted and the returns made in the manner provided for the 85.28 state primary as far as practicable. Within two days after the 85.29 primary, the school board of the school district shall canvass 85.30 the returns, and the two candidates for eachofficespecified 85.31 school board position who receive the highest number of votes, 85.32 or a number of candidates equal to twice the number of 85.33 individuals to be elected tothe officeat-large school board 85.34 positions who receive the highest number of votes, are the 85.35 nominees for the office named. Their names must be certified to 85.36 the school district clerk who shall place them on the school 86.1 district general election ballot without partisan designation 86.2 and without payment of an additional fee. 86.3 Sec. 52. Minnesota Statutes 2002, section 205A.06, 86.4 subdivision 1a, is amended to read: 86.5 Subd. 1a. [FILING PERIOD.]In school districts nominating86.6candidates at a school district primary,Affidavits of candidacy 86.7maymust be filed with the school district clerk no earlier than 86.8 the 70th day and no later than the 56th day before the first 86.9 Tuesday after the second Monday in September in the year when 86.10 the school district general election is held.In all other86.11school districts, affidavits of candidacy must be filed not more86.12than 70 days and not less than 56 days before the school86.13district general election.86.14 [EFFECTIVE DATE.] This section is effective the day 86.15 following final enactment for independent school district No. 86.16 742. This section is effective January 1, 2004, for all other 86.17 school districts and applies to school board elections held in 86.18 2004 and thereafter. 86.19 Sec. 53. Laws 2001, First Special Session chapter 6, 86.20 article 2, section 64, is amended to read: 86.21 Sec. 64. [SCHOOLS' ACADEMIC AND FINANCIAL PERFORMANCE 86.22 EVALUATION; INDEPENDENT CONTRACTOR.] 86.23 (a) To assist taxpayers, educators, school board members, 86.24 and state and local officials in realizing their commitment to 86.25 improving student achievement and the management of school 86.26 systems, the commissioner ofchildren, families, and86.27learningeducation shall contract with an independent school 86.28 evaluation services contractor to evaluate and report on the 86.29 academic and financial performance of the state's independent 86.30 school districts using, but not limited to, six core categories 86.31 of analysis: 86.32 (1) school district expenditures; 86.33 (2) students' performance outcomes based on multiple 86.34 indicia including students' test scores, attendance rates, 86.35 dropout rates, and graduation rates; 86.36 (3) return on resources to determine the extent to which 87.1 student outcomes improve commensurate with increases in district 87.2 spending; 87.3 (4) school district finances, taxes, and debt to establish 87.4 the context for analyzing the district's return on resources 87.5 under clause (3); 87.6 (5) students' learning environment to establish the context 87.7 for analyzing the district's return on resources under clause 87.8 (3); and 87.9 (6) school district demographics to establish the 87.10 socioeconomic context for analyzing the district's return on 87.11 resources under clause (3). 87.12 (b) In order to compare the regional and socioeconomic 87.13 peers of particular school districts, monitor educational 87.14 changes over time and identify important educational trends, the 87.15 contractor shall use the six core categories of analysis to: 87.16 (1) identify allocations of baseline and incremental school 87.17 district spending; 87.18 (2) connect student achievement with expenditure patterns; 87.19 (3) track school district financial health; 87.20 (4) observe school district debt and capital spending 87.21 levels; and 87.22 (5) measure the return on a school district's educational 87.23 resources. 87.24 (c) The contractor under paragraph (a) shall evaluate and 87.25 report on the academic and financial performance of all school 87.26 districts. 87.27 (d)Consistent with paragraph (a), clause (2), the87.28evaluation and reporting of test scores must distinguish between:87.29(1) performance-based assessments; and87.30(2) academic, objective knowledge-based tests.87.31(e)The contractormustshall complete its written report 87.32 and submit it to the commissioner within 360 days of the date on 87.33 which the contract is signed. The commissioner immediately must 87.34 make the report available in a readily accessible format to 87.35 state and local elected officials, members of the public, 87.36 educators, parents, and other interested individuals. The 88.1 commissioner, upon receiving an individual's request, alsomust88.2 shall make available all draft reports prepared by the 88.3 contractor, consistent with Minnesota Statutes, chapter 13. 88.4 Sec. 54. [CHARTER SCHOOL ADVISORY BOARD MEMBER TERMS.] 88.5 In order to establish staggered terms for charter school 88.6 advisory board members under Minnesota Statutes, section 88.7 124D.10, subdivision 2a, the commissioner of education shall, by 88.8 lot, determine the length of term for each member serving on the 88.9 board on the effective date of this section. One-third of the 88.10 members shall serve a one-year term, one-third shall serve a 88.11 two-year term, and one-third shall serve a three-year term. 88.12 Thereafter, the term for each member must be three years. 88.13 Sec. 55. [PILOT PROJECT; CARE AND TREATMENT CHARTER 88.14 SCHOOL.] 88.15 Subdivision 1. [PILOT PROJECT AUTHORIZED.] A pilot project 88.16 is created to evaluate the educational effectiveness of 88.17 combining a care and treatment program with a charter school. 88.18 Subd. 2. [APPLICATION.] Northwood Children's Services may 88.19 apply to the commissioner of education to form a care and 88.20 treatment pilot charter school under the provisions of this 88.21 section and Minnesota Statutes, section 124D.10. Before forming 88.22 the care and treatment pilot charter school, Northwood 88.23 Children's Services must file an affidavit with the commissioner 88.24 stating its intent to form the pilot charter school. The 88.25 affidavit must state the terms and conditions under which the 88.26 care and treatment pilot charter school would operate. The 88.27 commissioner must approve or disapprove Northwood Children's 88.28 Services' proposed authorization within 60 days of receipt of 88.29 the affidavit. Northwood Children's Services must include in 88.30 its application the items required in a charter school's 88.31 contract under Minnesota Statutes, section 124D.10, subdivision 88.32 6, and any other information the commissioner may request to 88.33 approve or disapprove the application. 88.34 Subd. 3. [ENROLLMENT.] Notwithstanding Minnesota Statutes, 88.35 section 124D.10, subdivision 9, a care and treatment center 88.36 pilot charter school shall give preference for enrollment to 89.1 participants in the center's care and treatment programs. 89.2 Subd. 4. [PLACEMENT OF STUDENTS; RESPONSIBILITIES FOR 89.3 PROVIDING EDUCATION.] Notwithstanding Minnesota Statutes, 89.4 section 125A.515, subdivision 3, a care and treatment center 89.5 operating a charter school may notify the department of 89.6 education of its intent to provide education services, including 89.7 special education if eligible, to all students placed in the 89.8 facility for care and treatment. 89.9 Subd. 5. [REVENUE.] A care and treatment center pilot 89.10 charter school is eligible for revenue as if it were a charter 89.11 school under Minnesota Statutes, section 124D.11, except that it 89.12 does not qualify for charter school lease aid under Minnesota 89.13 Statutes, section 124D.11, subdivision 4. 89.14 Subd. 6. [FINANCIAL INFORMATION.] A charter school 89.15 operating under this section must keep financial records 89.16 sufficient to allow audits under Minnesota Statutes, section 89.17 124D.10, subdivisions 6a and 8. 89.18 Subd. 7. [REPORT.] Northwood Children's Services must 89.19 annually report to the education committees of the legislature 89.20 on the charter school's success in integrating educational 89.21 services into the students' care and treatment programs. 89.22 Subd. 8. [EXPIRATION.] The authority granted Northwood 89.23 Children's Services under this section applies only to the 89.24 school's first six years of operation. This section expires 89.25 after the school's sixth year of operation. 89.26 [EFFECTIVE DATE.] This section is effective the day 89.27 following final enactment. 89.28 Sec. 56. [PROGRAM EFFICACY.] 89.29 The commissioner of education must study the efficacy of 89.30 American Indian Success for the Future program under Minnesota 89.31 Statutes, section 124D.81, to determine the extent to which the 89.32 program meets the educational needs of students participating in 89.33 the program and achieves the goals and objectives of the program 89.34 and its students and of the Minnesota American Indian Education 89.35 Act. The commissioner by February 15, 2004, must present a 89.36 written report of the efficacy of the program to the committees 90.1 of the legislature having jurisdiction over kindergarten through 90.2 grade 12 education policy and finance. 90.3 Sec. 57. [CHARTER SCHOOL START-UP AID.] 90.4 A charter school in its first year of operation during 90.5 fiscal year 2004 or 2005 is not eligible for charter school 90.6 start-up aid under Minnesota Statutes, section 124D.11, 90.7 subdivision 8. 90.8 Sec. 58. [ALTERNATIVE ATTENDANCE ADJUSTMENTS FOR FISCAL 90.9 YEAR 2002.] 90.10 Notwithstanding Minnesota Statutes, section 124D.86, 90.11 subdivision 6, for fiscal year 2002 only, integration aid under 90.12 Minnesota Statutes, section 124D.86, subdivision 5, must be 90.13 adjusted for each pupil residing in special school district No. 90.14 1, Minneapolis; independent school district No. 625, St. Paul; 90.15 or independent school district No. 709, Duluth, and attending a 90.16 nonresident district under Minnesota Statutes, sections 123A.05 90.17 to 123A.08, 124D.03, 124D.06, and 124D.08, other than 90.18 Minneapolis, St. Paul or Duluth that has implemented a plan 90.19 under Minnesota Rules, parts 3535.0100 to 3535.0180, if the 90.20 enrollment of the pupil in the nonresident district contributes 90.21 to desegregation or integration purposes. The adjustments must 90.22 be made according to this subdivision. 90.23 (b) Aid paid to a district serving nonresident pupils must 90.24 be increased by an amount equal to the revenue per pupil of the 90.25 resident district under Minnesota Statutes, section 124D.86, 90.26 subdivision 3, minus the revenue attributable to the pupil in 90.27 the nonresident district for the time the pupil is enrolled in 90.28 the nonresident district. 90.29 [EFFECTIVE DATE.] This section is effective the day 90.30 following final enactment and applies to fiscal year 2002. 90.31 Sec. 59. [POLICY ON STUDENTS WITH A HISTORY OF VIOLENT 90.32 BEHAVIOR.] 90.33 (a) Representatives of the Minnesota school boards 90.34 association, Education Minnesota, and the information policy 90.35 analysis division in the Minnesota department of administration, 90.36 the parent of a child who has participated in the Title I 91.1 delinquent education program selected by the commissioner of 91.2 children, families, and learning, a member of the majority party 91.3 and minority party in the state house appointed by the speaker 91.4 of the house and a member of the majority party and minority 91.5 party in the state senate appointed by the subcommittee on 91.6 committees, and the commissioner of children, families, and 91.7 learning or the commissioner's designee, shall develop a model 91.8 policy by August 1, 2003, on notifying classroom teachers and 91.9 other school district employees having a legitimate educational 91.10 interest when a student with a history of violent behavior is 91.11 placed in the teacher's classroom. The model policy at least 91.12 must: 91.13 (1) define what constitutes a history of violent behavior, 91.14 consistent with Minnesota Statutes, section 121A.45, subdivision 91.15 2, clause (c); 91.16 (2) limit reports on violent behavior to a specified number 91.17 of school years; 91.18 (3) define "legitimate educational interest," consistent 91.19 with Minnesota Statutes, section 121A.64; 91.20 (4) indicate the persons at the school or district level 91.21 who determine which school district employees have a legitimate 91.22 educational interest; 91.23 (5) require school districts that transfer the student 91.24 records of a student with a history of violent behavior to 91.25 another school district, charter school, or alternative 91.26 education program to include all information about the student's 91.27 history of violent behavior in the student's educational records 91.28 it transmits to the enrolling school district, charter school, 91.29 or alternative education program, consistent with this policy; 91.30 (6) permit the parent of a student with a history of 91.31 violent behavior, before the classroom teacher or other district 91.32 employee is notified, to review the student's education records, 91.33 request that the school correct inaccurate, misleading, or 91.34 otherwise inappropriate information and request a formal hearing 91.35 if the school refuses to change the records, consistent with 91.36 federal data practices law; and 92.1 (7) require school districts to inform the parent or 92.2 guardian of a student with a history of violent behavior under 92.3 Minnesota Statutes, section 121A.64, that the district gives 92.4 notice about the student's history of violent behavior to the 92.5 classroom teacher and other district employees having a 92.6 legitimate educational interest before placing the student in 92.7 the teacher's classroom. 92.8 (b) The information policy analysis division in the 92.9 Minnesota department of administration by August 15, 2003, must 92.10 post on its division Web site the model policy developed under 92.11 paragraph (a). 92.12 (c) The task force in paragraph (a) expires on August 1, 92.13 2003. 92.14 [EFFECTIVE DATE.] This section is effective the day 92.15 following final enactment. 92.16 Sec. 60. [TRANSITION.] 92.17 Minnesota Statutes, section 179A.175, subdivision 5, does 92.18 not apply during the 2003-2004 school year. 92.19 Sec. 61. [APPROPRIATIONS.] 92.20 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 92.21 indicated in this section are appropriated from the general fund 92.22 to the department of education for the fiscal years designated. 92.23 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 92.24 lease aid under Minnesota Statutes, section 124D.11, subdivision 92.25 4: 92.26 $16,592,000 ..... 2004 92.27 $20,915,000 ..... 2005 92.28 The 2004 appropriation includes $2,524,000 for 2003 and 92.29 $14,068,000 for 2004. 92.30 The 2005 appropriation includes $4,202,000 for 2004 and 92.31 $16,713,000 for 2005. 92.32 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 92.33 startup cost aid under Minnesota Statutes, section 124D.11: 92.34 $802,000 ..... 2004 92.35 $173,000 ..... 2005 92.36 The 2004 appropriation includes $220,000 for 2003 and 93.1 $582,000 for 2004. 93.2 The 2005 appropriation includes $173,000 for 2004 and $0 93.3 for 2005. 93.4 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 93.5 to charter schools to promote integration and desegregation 93.6 under Minnesota Statutes, section 124D.11, subdivision 6, 93.7 paragraph (e): 93.8 $8,000 ..... 2004 93.9 This appropriation includes $8,000 for 2003 and $0 for 2004. 93.10 Subd. 5. [INTEGRATION AID.] For integration aid under 93.11 Minnesota Statutes, section 124D.86, subdivision 5: 93.12 $55,169,000 ..... 2004 93.13 $56,347,000 ..... 2005 93.14 The 2004 appropriation includes $8,428,000 for 2003 and 93.15 $46,741,000 for 2004. 93.16 The 2005 appropriation includes $13,961,000 for 2004 and 93.17 $42,386,000 for 2005. 93.18 Subd. 6. [MAGNET SCHOOL GRANTS.] For magnet school and 93.19 program grants: 93.20 $750,000 ..... 2004 93.21 $750,000 ..... 2005 93.22 These amounts may be used for magnet school programs under 93.23 Minnesota Statutes, section 124D.88. 93.24 Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school 93.25 startup aid under Minnesota Statutes, section 124D.88: 93.26 $ 37,000 ..... 2004 93.27 $437,000 ..... 2005 93.28 The 2004 appropriation includes $37,000 for 2003 and $0 for 93.29 2004. 93.30 The 2005 appropriation includes $0 for 2004 and $437,000 93.31 for 2005. 93.32 Subd. 8. [INTERDISTRICT DESEGREGATION OR INTEGRATION 93.33 TRANSPORTATION GRANTS.] For interdistrict desegregation or 93.34 integration transportation grants under Minnesota Statutes, 93.35 section 124D.87: 93.36 $5,796,000 ..... 2004 94.1 $8,401,000 ..... 2005 94.2 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 94.3 success for the future grants under Minnesota Statutes, section 94.4 124D.81: 94.5 $2,009,000 ..... 2004 94.6 $2,137,000 ..... 2005 94.7 The 2004 appropriation includes $363,000 for 2003 and 94.8 $1,646,000 for 2004. 94.9 The 2005 appropriation includes $491,000 for 2004 and 94.10 $1,646,000 for 2005. 94.11 Subd. 10. [AMERICAN INDIAN SCHOLARSHIPS.] For American 94.12 Indian scholarships under Minnesota Statutes, section 124D.84: 94.13 $1,875,000 ..... 2004 94.14 $1,875,000 ..... 2005 94.15 Subd. 11. [AMERICAN INDIAN TEACHER PREPARATION 94.16 GRANTS.] For joint grants to assist American Indian people to 94.17 become teachers under Minnesota Statutes, section 122A.63: 94.18 $190,000 ..... 2004 94.19 $190,000 ..... 2005 94.20 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 94.21 school aid under Minnesota Statutes, section 124D.83: 94.22 $2,066,000 ..... 2004 94.23 $2,335,000 ..... 2005 94.24 The 2004 appropriation includes $285,000 for 2003 and 94.25 $1,781,000 for 2004. 94.26 The 2005 appropriation includes $531,000 for 2004 and 94.27 $1,804,000 for 2005. 94.28 Subd. 13. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 94.29 SCHOOLS.] For early childhood family education programs at 94.30 tribal contract schools under Minnesota Statutes, section 94.31 124D.83, subdivision 4: 94.32 $68,000 ..... 2004 94.33 $68,000 ..... 2005 94.34 Subd. 14. [STATEWIDE TESTING SUPPORT.] For supporting 94.35 implementation of the graduation standards: 94.36 $6,500,000 ..... 2004 95.1 $6,500,000 ..... 2005 95.2 Subd. 15. [SEVENTH GRADE TESTING.] For seventh grade 95.3 testing under Minnesota Statutes, section 120B.30: 95.4 $2,500,000 ..... 2004 95.5 $2,500,000 ..... 2005 95.6 Subd. 16. [BEST PRACTICES SEMINARS.] For best practices 95.7 seminars and other professional development capacity building 95.8 activities that assure proficiency in teaching and 95.9 implementation of graduation rule standards: 95.10 $2,180,000 ..... 2004 95.11 $2,180,000 ..... 2005 95.12 $250,000 per year is for a grant to A Chance to Grow/New 95.13 Visions for the Minnesota learning resource center's 95.14 comprehensive training program for education professionals 95.15 charged with helping children acquire basic reading and math 95.16 skills. 95.17 Subd. 17. [SCHOOL PERFORMANCE EVALUATION.] For evaluating 95.18 school performance under Laws 2001, First Special Session 95.19 chapter 6, article 2, section 64: 95.20 $2,000,000 ..... 2004 95.21 This appropriation is available until June 30, 2005. This 95.22 is a onetime appropriation. 95.23 Subd. 18. [ALTERNATIVE TEACHER COMPENSATION.] For 95.24 alternative teacher compensation established under Minnesota 95.25 Statutes, sections 122A.413 to 122A.415: 95.26 $3,700,000 ..... 2004 95.27 $3,700,000 ..... 2005 95.28 If the appropriations under this subdivision are 95.29 insufficient to fund all program participants, a participant may 95.30 receive less than the maximum per pupil amount available under 95.31 Minnesota Statutes, section 122A.415, subdivision 1. 95.32 Subd. 19. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 95.33 PROGRAMS.] (a) For students' advanced placement and 95.34 international baccalaureate examination fees under Minnesota 95.35 Statutes, section 120B.13, subdivision 3, and the training and 95.36 related costs for teachers and other interested educators under 96.1 Minnesota Statutes, section 120B.13, subdivision 1: 96.2 $1,000,000 ..... 2004 96.3 $1,000,000 ..... 2005 96.4 (b) The advanced placement program shall receive 75 percent 96.5 of the appropriation each year and the international 96.6 baccalaureate program shall receive 25 percent of the 96.7 appropriation each year. The department, in consultation with 96.8 representatives of the advanced placement and international 96.9 baccalaureate programs selected by the advanced placement 96.10 advisory council and IBMN, respectively, shall determine the 96.11 amounts of the expenditures each year for examination fees and 96.12 training and support programs for each program. 96.13 (c) Notwithstanding Minnesota Statutes, section 120B.13, 96.14 subdivision 1, $375,000 each year is for teachers to attend 96.15 subject matter summer training programs and follow-up support 96.16 workshops approved by the advanced placement or international 96.17 baccalaureate programs. The amount of the subsidy for each 96.18 teacher attending an advanced placement or international 96.19 baccalaureate summer training program or workshop shall be the 96.20 same. The commissioner shall determine the payment process and 96.21 the amount of the subsidy. 96.22 (d) The commissioner shall pay all examination fees for all 96.23 students of low-income families under Minnesota Statutes, 96.24 section 120B.13, subdivision 3, and to the extent of available 96.25 appropriations shall also pay examination fees for students 96.26 sitting for an advanced placement examination, international 96.27 baccalaureate examination, or both. 96.28 Any balance in the first year does not cancel but is 96.29 available in the second year. 96.30 Subd. 20. [FIRST GRADE PREPAREDNESS.] For first grade 96.31 preparedness grants under Minnesota Statutes, section 124D.081: 96.32 $7,250,000 ..... 2004 96.33 $7,250,000 ..... 2005 96.34 Subd. 21. [YOUTH WORKS PROGRAM.] For funding youth works 96.35 programs under Minnesota Statutes, sections 124D.37 to 124D.45: 96.36 $900,000 ..... 2004 97.1 $900,000 ..... 2005 97.2 (a) $150,000 per year is for training in evaluating early 97.3 literacy skills and teaching reading to preschool children under 97.4 Minnesota Statutes, section 124D.42, subdivision 6, paragraph 97.5 (a), clause (3). 97.6 (b) A grantee organization may provide health and child 97.7 care coverage to the dependents of each participant enrolled in 97.8 a full-time youth works program to the extent such coverage is 97.9 not otherwise available. 97.10 Subd. 22. [STUDENT ORGANIZATIONS.] For student 97.11 organizations: 97.12 $625,000 ..... 2004 97.13 $625,000 ..... 2005 97.14 Each student organization shall receive its fiscal year 97.15 2004 and 2005 appropriation using the allocation model that was 97.16 in effect for fiscal year 2002. 97.17 Subd. 23. [DISTANCE EDUCATION.] For distance education 97.18 under Minnesota Statutes, section 124D.095: 97.19 $2,400,000 ..... 2004 97.20 $3,000,000 ..... 2005 97.21 Sec. 62. [REVISOR'S INSTRUCTION.] 97.22 The revisor of statutes shall codify Laws 2001, First 97.23 Special Session chapter 6, article 2, section 68, as Minnesota 97.24 Statutes, section 120B.305. 97.25 Sec. 63. [REPEALER.] 97.26 (a) Minnesota Statutes 2002, sections 122A.64; 122A.65; 97.27 124D.84, subdivision 2; and 124D.89, are repealed. 97.28 (b) Laws 1993, chapter 224, article 8, section 20, 97.29 subdivision 2, as amended by Laws 1994, chapter 647, article 8, 97.30 section 29, is repealed. 97.31 (c) Minnesota Statutes 2002, section 121A.49, is repealed 97.32 the day following final enactment. 97.33 (d) Minnesota Statutes 2002, section 123B.05, is repealed 97.34 the day following final enactment. 97.35 ARTICLE 3 97.36 SPECIAL PROGRAMS 98.1 Section 1. Minnesota Statutes 2002, section 121A.41, 98.2 subdivision 10, is amended to read: 98.3 Subd. 10. [SUSPENSION.] "Suspension" means an action by 98.4 the school administration, under rules promulgated by the school 98.5 board, prohibiting a pupil from attending school for a period of 98.6 no more than ten school days. If a suspension is longer than 98.7 five days, the suspending administrator must provide the 98.8 superintendent with a reason for the longer suspension. This 98.9 definition does not apply to dismissal from school for one 98.10 school day or less, except as provided in federal law for a 98.11 student with a disability. Each suspension action may include a 98.12 readmission plan. The readmission plan shall include, where 98.13 appropriate, a provision for implementing alternative 98.14 educational services upon readmission and may not be used to 98.15 extend the current suspension. Consistent with section 125A.09, 98.16 subdivision 3, the readmission plan must not obligate a parent 98.17 to provide a sympathomimetic medication for the parent's child 98.18 as a condition of readmission. The school administration may 98.19 not impose consecutive suspensions against the same pupil for 98.20 the same course of conduct, or incident of misconduct, except 98.21 where the pupil will create an immediate and substantial danger 98.22 to self or to surrounding persons or property, or where the 98.23 district is in the process of initiating an expulsion, in which 98.24 case the school administration may extend the suspension to a 98.25 total of 15 days. In the case of a student with a disability, 98.26 the student's individual education plan team must meet 98.27 immediately but not more than ten school days after the date on 98.28 which the decision to remove the student from the student's 98.29 current education placement is made. The individual education 98.30 plan team and other qualified personnel shall at that meeting: 98.31 conduct a review of the relationship between the child's 98.32 disability and the behavior subject to disciplinary action; and 98.33 determine the appropriateness of the child's education plan. 98.34 The requirements of the individual education plan team 98.35 meeting apply when: 98.36 (1) the parent requests a meeting; 99.1 (2) the student is removed from the student's current 99.2 placement for five or more consecutive days; or 99.3 (3) the student's total days of removal from the student's 99.4 placement during the school year exceed ten cumulative days in a 99.5 school year. The school administration shall implement 99.6 alternative educational services when the suspension exceeds 99.7 five days. A separate administrative conference is required for 99.8 each period of suspension. 99.9 Sec. 2. [124D.452] [DISTRICT REPORT; CAREER AND TECHNICAL 99.10 EDUCATION.] 99.11 Each district and cooperative center must report data to 99.12 the department of education for all career and technical 99.13 education programs as required by the department. 99.14 Sec. 3. Minnesota Statutes 2002, section 124D.454, 99.15 subdivision 1, is amended to read: 99.16 Subdivision 1. [PURPOSE.] The purpose of this section is 99.17 to provide a method to fundtransitioncareer and technical 99.18 education programs for children with a disability that are 99.19 components of the student's transition plan. As used in this 99.20 section, the term "children with a disability" shall have the 99.21 meaning ascribed to it in section 125A.02. 99.22 Sec. 4. Minnesota Statutes 2002, section 124D.454, 99.23 subdivision 2, is amended to read: 99.24 Subd. 2. [DEFINITIONS.] For the purposes of this section, 99.25 the definitions in this subdivision apply. 99.26 (a) "Base year"for fiscal year 1996 means fiscal year 1995.99.27Base year for later fiscal yearsmeans the second fiscal year 99.28 preceding the fiscal year for which aid will be paid. 99.29 (b) "Basic revenue" has the meaning given it in section 99.30 126C.10, subdivision 2. For the purposes of computing basic 99.31 revenue pursuant to this section, each child with a disability 99.32 shall be counted as prescribed in section 126C.05, subdivision 1. 99.33 (c) "Average daily membership" has the meaning given it in 99.34 section 126C.05. 99.35 (d) "Program growth factor" means 1.00 for fiscal year 1998 99.36 and later. 100.1 (e) "Aid percentage factor" means60 percent for fiscal100.2year 1996, 70 percent for fiscal year 1997, 80 percent for100.3fiscal year 1998, 90 percent for fiscal year 1999, and100 100.4 percent for fiscal year 2000 and later. 100.5 (f) "Essential personnel" means a licensed teacher, 100.6 licensed support services staff person, paraprofessional 100.7 providing direct services to students, or licensed personnel 100.8 under subdivision 12. 100.9 Sec. 5. Minnesota Statutes 2002, section 124D.454, 100.10 subdivision 3, is amended to read: 100.11 Subd. 3. [BASE REVENUE.] (a) Thetransition100.12program-disabledtransition-disabled program base revenue equals 100.13 the sum of the following amounts computed using base year data: 100.14 (1) 68 percent of the salary of each essential licensed 100.15 person or approved paraprofessional who provides direct 100.16 instructional services to students employed during that fiscal 100.17 year for services rendered in that district's transition program 100.18 for children with a disability; 100.19 (2) 47 percent of the costs of necessary equipment for 100.20 transition programs for children with a disability; 100.21 (3) 47 percent of the costs of necessary travel between 100.22 instructional sites by transition program teachers of children 100.23 with a disability but not including travel to and from local, 100.24 regional, district, state, or nationalvocationalcareer and 100.25 technical student organization meetings; 100.26 (4) 47 percent of the costs of necessary supplies for 100.27 transition programs for children with a disability but not to 100.28 exceed an average of $47 in any one school year for each child 100.29 with a disability receiving these services; 100.30 (5) for transition programs for children with disabilities 100.31 provided by a contract approved by the commissioner with public, 100.32 private, or voluntary agencies other than a Minnesota school 100.33 district or cooperative center, in place of programs provided by 100.34 the district, 52 percent of the difference between the amount of 100.35 the contract and the basic revenue of the district for that 100.36 pupil for the fraction of the school day the pupil receives 101.1 services under the contract; 101.2 (6) for transition programs for children with disabilities 101.3 provided by a contract approved by the commissioner with public, 101.4 private, or voluntary agencies other than a Minnesota school 101.5 district or cooperative center, that are supplementary to a full 101.6 educational program provided by the school district, 52 percent 101.7 of the amount of the contract; and 101.8 (7) for a contract approved by the commissioner with 101.9 another Minnesota school district or cooperative center for 101.10 vocational evaluation services for children with a disability 101.11 for children that are not yet enrolled in grade 12, 52 percent 101.12 of the amount of the contract. 101.13 (b) If requested by a school district for transition 101.14 programs during the base year for less than the full school 101.15 year, the commissioner may adjust the base revenue to reflect 101.16 the expenditures that would have occurred during the base year 101.17 had the program been operated for the full year. 101.18 Sec. 6. Minnesota Statutes 2002, section 124D.454, 101.19 subdivision 8, is amended to read: 101.20 Subd. 8. [USE OF AID.] The aid provided under this section 101.21 shall be paid only for services rendered or for the costs which 101.22 are incurred according to this section for transition programs 101.23 for children with a disability which are approved by the 101.24 commissioner ofchildren, families, and learningeducation and 101.25 operated in accordance with rules promulgated by the 101.26 commissioner. These rules shall be subject to the restrictions 101.27 provided insection 124D.453,subdivision612. The procedure 101.28 for application for approval of these programs shall be as 101.29 provided in section 125A.75, subdivisions 4 and 6, and the 101.30 application review process shall be conducted by theoffice101.31 division oflifework developmentfederal programs in the 101.32 department. 101.33 Sec. 7. Minnesota Statutes 2002, section 124D.454, 101.34 subdivision 10, is amended to read: 101.35 Subd. 10. [EXCLUSION.] A district shall not receive aid 101.36 pursuant to section124D.453 or125A.76 for salaries, supplies, 102.1 travel or equipment for which the district receives aid pursuant 102.2 to this section. 102.3 Sec. 8. Minnesota Statutes 2002, section 124D.454, is 102.4 amended by adding a subdivision to read: 102.5 Subd. 12. [COMPLIANCE WITH RULES.] Aid must be paid under 102.6 this section only for services rendered or for costs incurred in 102.7 career and technical education programs approved by the 102.8 commissioner and operated in accordance with rules promulgated 102.9 by the commissioner. This aid shall be paid only for services 102.10 rendered and for costs incurred by essential, licensed personnel 102.11 who meet the requirements for licensure pursuant to the rules of 102.12 the Minnesota board of teaching. Licensed personnel means 102.13 persons holding a valid career and technical license issued by 102.14 the commissioner. If an average of five or fewer secondary 102.15 full-time equivalent students are enrolled per teacher in an 102.16 approved postsecondary program at intermediate district No. 287, 102.17 916, or 917, licensed personnel means persons holding a valid 102.18 vocational license issued by the commissioner or the board of 102.19 trustees of the Minnesota state colleges and universities. 102.20 Notwithstanding section 127A.42, the commissioner may modify or 102.21 withdraw the program or aid approval and withhold aid under this 102.22 section without proceeding under section 127A.42 at any time. 102.23 To do so, the commissioner must determine that the program does 102.24 not comply with rules of the department of education or that any 102.25 facts concerning the program or its budget differ from the facts 102.26 in the district's approved application. 102.27 Sec. 9. [125A.091] [ALTERNATIVE DISPUTE RESOLUTION AND DUE 102.28 PROCESS HEARINGS.] 102.29 Subdivision 1. [DISTRICT OBLIGATION.] A school district 102.30 must use the procedures in federal law and state law and rule to 102.31 reach decisions about the identification, evaluation, 102.32 educational placement, manifestation determination, interim 102.33 alternative educational placement, or the provision of a free 102.34 appropriate public education to a child with a disability. 102.35 Subd. 2. [PRIOR WRITTEN NOTICE.] A parent must receive 102.36 prior written notice a reasonable time before the district 103.1 proposes or refuses to initiate or change the identification, 103.2 evaluation, educational placement, or the provision of a free 103.3 appropriate public education to a child with a disability. 103.4 Subd. 3. [CONTENT OF NOTICE.] The notice under subdivision 103.5 2 must: 103.6 (1) describe the action the district proposes or refuses; 103.7 (2) explain why the district proposes or refuses to take 103.8 the action; 103.9 (3) describe any other option the district considered and 103.10 the reason why it rejected the option; 103.11 (4) describe each evaluation procedure, test, record, or 103.12 report the district used as a basis for the proposed or refused 103.13 action; 103.14 (5) describe any other factor affecting the proposal or 103.15 refusal of the district to take the action; 103.16 (6) state that the parent of a child with a disability is 103.17 protected by procedural safeguards and, if this notice is not an 103.18 initial referral for evaluation, how a parent can get a 103.19 description of the procedural safeguards; and 103.20 (7) identify where a parent can get help in understanding 103.21 this law. 103.22 Subd. 4. [UNDERSTANDABLE NOTICE.] (a) The written notice 103.23 under subdivision 2 must be understandable to the general public 103.24 and available in the parent's native language or by another 103.25 communication form, unless it is clearly not feasible to do so. 103.26 (b) If the parent's native language or other communication 103.27 form is not written, the district must take steps to ensure that: 103.28 (1) the notice is translated orally or by other means to 103.29 the parent in the parent's native language or other 103.30 communication form; 103.31 (2) the parent understands the notice; and 103.32 (3) written evidence indicates the requirements in 103.33 subdivision 2 are met. 103.34 Subd. 5. [INITIAL ACTION; PARENT CONSENT.] The district 103.35 must not proceed with the initial evaluation of a child, the 103.36 initial placement of a child in a special education program, or 104.1 the initial provision of special education services for a child 104.2 without the prior written consent of the child's parent. A 104.3 district may not override the written refusal of a parent to 104.4 consent to an initial evaluation or reevaluation. 104.5 Subd. 6. [DISPUTE RESOLUTION PROCESSES; 104.6 GENERALLY.] Parties are encouraged to resolve disputes over the 104.7 identification, evaluation, educational placement, manifestation 104.8 determination, interim alternative educational placement, or the 104.9 provision of a free appropriate public education to a child with 104.10 a disability through conciliation, mediation, facilitated team 104.11 meetings, or other alternative process. All dispute resolution 104.12 options are voluntary on the part of the parent and must not be 104.13 used to deny or delay the right to a due process hearing. All 104.14 dispute resolution processes under this section are provided at 104.15 no cost to the parent. 104.16 Subd. 7. [CONCILIATION CONFERENCE.] A parent must have an 104.17 opportunity to meet with appropriate district staff in at least 104.18 one conciliation conference if the parent objects to any 104.19 proposal of which the parent receives notice under subdivision 2. 104.20 If the parent refuses district efforts to conciliate the 104.21 dispute, the conciliation requirement is satisfied. Following a 104.22 conciliation conference, the district must prepare and provide 104.23 to the parent a conciliation conference memorandum that 104.24 describes the district's final proposed offer of service. This 104.25 memorandum is admissible in evidence in any subsequent 104.26 proceeding. 104.27 Subd. 8. [VOLUNTARY DISPUTE RESOLUTION OPTIONS.] In 104.28 addition to offering at least one conciliation conference, a 104.29 district must inform a parent of other dispute resolution 104.30 processes, including at least mediation and facilitated team 104.31 meetings. The fact that an alternative dispute resolution 104.32 process was used is admissible in evidence at any subsequent 104.33 proceeding. State-provided mediators and team meeting 104.34 facilitators shall not be subpoenaed to testify at a due process 104.35 hearing or civil action under federal special education law nor 104.36 are any records of mediators or state-provided team meeting 105.1 facilitators accessible to the parties. 105.2 Subd. 9. [MEDIATION.] Mediation is a dispute resolution 105.3 process that involves a neutral party provided by the state to 105.4 assist a parent and a district in resolving disputes over the 105.5 identification, evaluation, educational placement, manifestation 105.6 determination, interim alternative educational placement, or the 105.7 provision of a free appropriate public education to a child with 105.8 a disability. A mediation process is available as an informal 105.9 alternative to a due process hearing but must not be used to 105.10 deny or postpone the opportunity of a parent or district to 105.11 obtain a due process hearing. Mediation is voluntary for all 105.12 parties. All mediation discussions are confidential and 105.13 inadmissible in evidence in any subsequent proceeding, unless 105.14 the: 105.15 (1) parties expressly agree otherwise; 105.16 (2) evidence is otherwise available; or 105.17 (3) evidence is offered to prove bias or prejudice of a 105.18 witness. 105.19 Subd. 10. [MEDIATED AGREEMENTS.] Mediated agreements are 105.20 not admissible unless the parties agree otherwise or a party to 105.21 the agreement believes the agreement is not being implemented, 105.22 in which case the aggrieved party may enter the agreement into 105.23 evidence at a due process hearing. The parties may request 105.24 another mediation to resolve a dispute over implementing the 105.25 mediated agreement. After a due process hearing is requested, a 105.26 party may request mediation and the commissioner must provide a 105.27 mediator who conducts a mediation session no later than the 105.28 third business day after the mediation request is made to the 105.29 commissioner. 105.30 Subd. 11. [FACILITATED TEAM MEETING.] A facilitated team 105.31 meeting is an IEP, IFSP, or IIIP team meeting led by an 105.32 impartial state-provided facilitator to promote effective 105.33 communication and assist a team in developing an individualized 105.34 education plan. 105.35 Subd. 12. [IMPARTIAL DUE PROCESS HEARING.] (a) A parent or 105.36 a district is entitled to an impartial due process hearing 106.1 conducted by the state when a dispute arises over the 106.2 identification, evaluation, educational placement, manifestation 106.3 determination, interim alternative educational placement, or the 106.4 provision of a free appropriate public education to a child with 106.5 a disability. The hearing must be held in the district 106.6 responsible for ensuring that a free appropriate public 106.7 education is provided according to state and federal law. The 106.8 proceedings must be recorded and preserved, at state expense, 106.9 pending ultimate disposition of the action. 106.10 (b) The due process hearing must be conducted according to 106.11 the rules of the commissioner and federal law. 106.12 (c) A party in a due process hearing may not raise a claim 106.13 based upon an alleged violation that occurred more than two 106.14 years before the date on which the commissioner received the 106.15 hearing request. 106.16 Subd. 13. [HEARING OFFICER QUALIFICATIONS.] The 106.17 commissioner must appoint an individual who is qualified under 106.18 this subdivision to serve as a hearing officer. The hearing 106.19 officer must: 106.20 (1) be knowledgeable and impartial; 106.21 (2) have no personal interest in or specific involvement 106.22 with the student who is a party to the hearing; 106.23 (3) not have been employed as an administrator by the 106.24 district that is a party to the hearing; 106.25 (4) not have been involved in selecting the district 106.26 administrator who is a party to the hearing; 106.27 (5) have no personal, economic, or professional interest in 106.28 the outcome of the hearing other than properly administering 106.29 federal and state laws, rules, and policies; 106.30 (6) have no substantial involvement in developing state or 106.31 local policies or procedures challenged in the hearing; 106.32 (7) not be a current employee or board member of a 106.33 Minnesota public school district, education district, 106.34 intermediate unit or regional education agency, or the 106.35 department if the department is the service provider; and 106.36 (8) not be a current employee or board member of a 107.1 disability advocacy organization or group. 107.2 Subd. 14. [REQUEST FOR HEARING.] A request for a due 107.3 process hearing must: 107.4 (1) be in writing; 107.5 (2) describe the nature of the dispute about providing 107.6 special education services to the student including facts 107.7 relating to the dispute; and 107.8 (3) state, to the extent known, the relief sought. 107.9 Any school district administrator receiving a request for a 107.10 due process hearing must immediately forward the request to the 107.11 commissioner. Within two business days of receiving a request 107.12 for a due process hearing, the commissioner must appoint a 107.13 hearing officer. The commissioner must not deny a request for 107.14 hearing because the request is incomplete. A party may 107.15 disqualify a hearing officer only by affirmatively showing 107.16 prejudice or bias to the commissioner or to the chief 107.17 administrative law judge if the hearing officer is an 107.18 administrative law judge. If a party affirmatively shows 107.19 prejudice against a hearing officer, the commissioner must 107.20 assign another hearing officer to hear the matter. 107.21 Subd. 15. [PREHEARING CONFERENCE.] A prehearing conference 107.22 must be held within five business days of the date the 107.23 commissioner appoints the hearing officer. The hearing officer 107.24 must initiate the prehearing conference which may be conducted 107.25 in person, at a location within the district, or by telephone. 107.26 The hearing officer must create a written verbatim record of the 107.27 prehearing conference which is available to either party upon 107.28 request. At the prehearing conference, the hearing officer must: 107.29 (1) identify the questions that must be answered to resolve 107.30 the dispute and eliminate claims and complaints that are without 107.31 merit; 107.32 (2) set a scheduling order for the hearing and additional 107.33 prehearing activities; 107.34 (3) determine if the hearing can be disposed of without an 107.35 evidentiary hearing and, if so, establish the schedule and 107.36 procedure for doing so; and 108.1 (4) establish the management, control, and location of the 108.2 hearing to ensure its fair, efficient, and effective disposition. 108.3 Subd. 16. [BURDEN OF PROOF.] The burden of proof at a due 108.4 process hearing is on the district to demonstrate, by a 108.5 preponderance of the evidence, that it is complying with the law 108.6 and offered or provided a free appropriate public education to 108.7 the child in the least restrictive environment. If the district 108.8 has not offered or provided a free appropriate public education 108.9 in the least restrictive environment and the parent wants the 108.10 district to pay for a private placement, the burden of proof is 108.11 on the parent to demonstrate, by a preponderance of the 108.12 evidence, that the private placement is appropriate. 108.13 Subd. 17. [ADMISSIBLE EVIDENCE.] The hearing officer may 108.14 admit all evidence that possesses probative value, including 108.15 hearsay, if it is the type of evidence on which reasonable, 108.16 prudent persons are accustomed to rely in conducting their 108.17 serious affairs. The hearing officer must give effect to the 108.18 rules of privilege recognized by law and exclude evidence that 108.19 is incompetent, irrelevant, immaterial, or unduly repetitious. 108.20 Subd. 18. [HEARING OFFICER AUTHORITY.] (a) A hearing 108.21 officer must limit an impartial due process hearing to the time 108.22 sufficient for each party to present its case. 108.23 (b) A hearing officer must establish and maintain control 108.24 and manage the hearing. This authority includes, but is not 108.25 limited to: 108.26 (1) requiring attorneys representing parties at the 108.27 hearing, after notice and an opportunity to be heard, to pay 108.28 court reporting and hearing officer costs, or fines payable to 108.29 the state, for failing to: (i) obey scheduling or prehearing 108.30 orders, (ii) appear, (iii) be prepared, or (iv) participate in 108.31 the hearing process in good faith; 108.32 (2) administering oaths and affirmations; 108.33 (3) issuing subpoenas; 108.34 (4) determining the responsible and providing districts and 108.35 joining those districts, if not already notified, in the 108.36 proceedings; 109.1 (5) making decisions involving identification, evaluation, 109.2 educational placement, manifestation determination, interim 109.3 alternative educational placement, or the provision of a free 109.4 appropriate public education to a child with a disability; and 109.5 (6) ordering an independent educational evaluation of a 109.6 child at district expense. 109.7 Subd. 19. [EXPEDITED DUE PROCESS HEARINGS.] A parent has 109.8 the right to an expedited due process hearing when there is a 109.9 dispute over a manifestation determination or a proposed or 109.10 actual placement in an interim alternative educational setting. 109.11 A district has the right to an expedited due process hearing 109.12 when proposing or seeking to maintain placement in an interim 109.13 alternative educational setting. A hearing officer must hold an 109.14 expedited due process hearing and must issue a decision within 109.15 ten calendar days of the request for a hearing. A hearing 109.16 officer may extend by up to five additional calendar days the 109.17 time for issuing a decision in an expedited due process 109.18 hearing. All policies in this section apply to expedited due 109.19 process hearings to the extent they do not conflict with federal 109.20 law. 109.21 Subd. 20. [HEARING OFFICER'S DECISION; TIME PERIOD.] (a) 109.22 The hearing officer must issue a decision within 45 calendar 109.23 days of the date on which the commissioner receives the request 109.24 for a due process hearing. A hearing officer is encouraged to 109.25 accelerate the time line to 30 days for a child under the age of 109.26 three whose needs change rapidly and who requires quick 109.27 resolution of a dispute. A hearing officer may not extend the 109.28 time beyond the 45-day period unless requested by either party 109.29 for good cause shown on the record. Extensions of time must not 109.30 exceed a total of 30 calendar days unless both parties and the 109.31 hearing officer agree or time is needed to complete an 109.32 independent educational evaluation. Good cause includes, but is 109.33 not limited to, the time required for mediation or other 109.34 settlement discussions, independent educational evaluation, 109.35 complexity and volume of issues, or finding or changing counsel. 109.36 (b) The hearing officer's decision must: 110.1 (1) be in writing; 110.2 (2) state the controlling and material facts upon which the 110.3 decision is made in order to apprise the reader of the basis and 110.4 reason for the decision; and 110.5 (3) be based on local standards, state statute, the rules 110.6 of the commissioner, and federal law. 110.7 Subd. 21. [COMPENSATORY EDUCATIONAL SERVICES.] The hearing 110.8 officer may require the resident or responsible district to 110.9 provide compensatory educational services to the child if the 110.10 hearing officer finds that the district has not offered or made 110.11 available to the child a free appropriate public education in 110.12 the least restrictive environment and the child suffered a loss 110.13 of educational benefit. Such services take the form of direct 110.14 and indirect special education and related services designed to 110.15 address any loss of educational benefit that may have occurred. 110.16 The hearing officer's finding must be based on a present 110.17 determination of whether the child has suffered a loss of 110.18 educational benefit. 110.19 Subd. 22. [CHILD'S EDUCATIONAL PLACEMENT DURING A DUE 110.20 PROCESS HEARING.] (a) Until a due process hearing under this 110.21 section is completed or the district and the parent agree 110.22 otherwise, the child must remain in the child's current 110.23 educational placement and must not be denied initial admission 110.24 to school. 110.25 (b) Until an expedited due process hearing challenging an 110.26 interim alternative educational placement is completed, the 110.27 child must remain in the interim alternative educational setting 110.28 until the decision of the hearing officer or the expiration of 110.29 the 45 days permitted for an interim alternative educational 110.30 setting, whichever occurs first, unless the parent and district 110.31 agree otherwise. 110.32 Subd. 23. [IMPLEMENTATION OF HEARING OFFICER ORDER.] (a) 110.33 That portion of a hearing officer's decision granting relief 110.34 requested by the parent must be implemented upon issuance. 110.35 (b) Except as provided under paragraph (a) or the district 110.36 and parent agree otherwise, following a hearing officer's 111.1 decision granting relief requested by the district, the child 111.2 must remain in the current educational placement until the time 111.3 to request judicial review under subdivision 24 expires or, if 111.4 judicial review is requested, at the time the Minnesota court of 111.5 appeals or the federal district court issues its decision, 111.6 whichever is later. 111.7 Subd. 24. [REVIEW OF HEARING OFFICER DECISIONS.] The 111.8 parent or district may seek review of the hearing officer's 111.9 decision in the Minnesota court of appeals or in the federal 111.10 district court, consistent with federal law. A party must 111.11 appeal to the Minnesota court of appeals within 60 days of 111.12 receiving the hearing officer's decision. 111.13 Subd. 25. [ENFORCEMENT OF ORDERS.] The commissioner must 111.14 monitor final hearing officer decisions and ensure enforcement 111.15 of hearing officer orders. 111.16 Subd. 26. [HEARING OFFICER AND PERSON CONDUCTING 111.17 ALTERNATIVE DISPUTE RESOLUTION ARE STATE EMPLOYEES.] A hearing 111.18 officer or person conducting alternative dispute resolution 111.19 under this section is an employee of the state under section 111.20 3.732 for purposes of section 3.736 only. 111.21 Subd. 27. [HEARING OFFICER TRAINING.] A hearing officer 111.22 must participate in training and follow procedures established 111.23 by the commissioner. 111.24 Subd. 28. [DISTRICT LIABILITY.] A district is not liable 111.25 for harmless technical violations of this section or rules 111.26 implementing this section if the school district can demonstrate 111.27 on a case-by-case basis that the violations did not harm a 111.28 student's educational progress or the parent's right to notice, 111.29 participation, or due process. 111.30 Sec. 10. Minnesota Statutes 2002, section 125A.21, 111.31 subdivision 2, is amended to read: 111.32 Subd. 2. [THIRD PARTY REIMBURSEMENT.] (a) Beginning July 111.33 1, 2000, districts shall seek reimbursement from insurers and 111.34 similar third parties for the cost of services provided by the 111.35 district whenever the services provided by the district are 111.36 otherwise covered by the child's health coverage. Districts 112.1 shall request, but may not require, the child's family to 112.2 provide information about the child's health coverage when a 112.3 child with a disability begins to receive services from the 112.4 district of a type that may be reimbursable, and shall request, 112.5 but may not require, updated information after that as needed. 112.6 (b) For children enrolled in medical assistance under 112.7 chapter 256B or MinnesotaCare under chapter 256L who have no 112.8 other health coverage, a district shall provide an initial 112.9 written notice to the enrolled child's parent or legal 112.10 representative of its intent to seek reimbursement from medical 112.11 assistance or MinnesotaCare for the individual education plan 112.12 health-related services provided by the district. 112.13 (c) The district shall give the parent or legal 112.14 representative annual written notice of: 112.15 (1) the district's intent to seek reimbursement from 112.16 medical assistance or MinnesotaCare for individual education 112.17 plan health-related services provided by the district; 112.18 (2) the right of the parent or legal representative to 112.19 request a copy of all records concerning individual education 112.20 plan health-related services disclosed by the district to any 112.21 third party; and 112.22 (3) the right of the parent or legal representative to 112.23 withdraw consent for disclosure of a child's records at any time 112.24 without consequence. 112.25 The written notice shall be provided as part of the written 112.26 notice required by Code of Federal Regulations, title 34, 112.27 section300.503300.504. 112.28 (d) In order to access the private health care coverage of 112.29 a child who is covered by private health care coverage in whole 112.30 or in part, a district must: 112.31 (1) obtain annual written informed consent from the parent 112.32 or legal representative, in compliance with subdivision 5; and 112.33 (2) inform the parent or legal representative that a 112.34 refusal to permit the district or state Medicaid agency to 112.35 access their private health care coverage does not relieve the 112.36 district of its responsibility to provide all services necessary 113.1 to provide free and appropriate public education at no cost to 113.2 the parent or legal representative. 113.3 (e) If the commissioner of human services obtains federal 113.4 approval to exempt covered individual education plan 113.5 health-related services from the requirement that private health 113.6 care coverage refuse payment before medical assistance may be 113.7 billed, paragraphs (b), (c), and (d) shall also apply to 113.8 students with a combination of private health care coverage and 113.9 health care coverage through medical assistance or MinnesotaCare. 113.10 (f) In the event that Congress or any federal agency or the 113.11 Minnesota legislature or any state agency establishes lifetime 113.12 limits, limits for any health care services, cost-sharing 113.13 provisions, or otherwise provides that individual education plan 113.14 health-related services impact benefits for persons enrolled in 113.15 medical assistance or MinnesotaCare, the amendments to this 113.16 subdivision adopted in 2002 are repealed on the effective date 113.17 of any federal or state law or regulation that imposes the 113.18 limits. In that event, districts must obtain informed consent 113.19 consistent with this subdivision as it existed prior to the 2002 113.20 amendments and subdivision 5, before seeking reimbursement for 113.21 children enrolled in medical assistance under chapter 256B or 113.22 MinnesotaCare under chapter 256L who have no other health care 113.23 coverage. 113.24 Sec. 11. Minnesota Statutes 2002, section 125A.28, is 113.25 amended to read: 113.26 125A.28 [STATE INTERAGENCY COORDINATING COUNCIL.] 113.27 An interagency coordinating council of at least 17, but not 113.28 more than 25 members is established, in compliance with Public 113.29 LawNumber102-119, section 682. The members must be appointed 113.30 by the governor. Council members must elect the council chair. 113.31 The representative of the commissioner may not serve as the 113.32 chair. The council must be composed of at least five parents, 113.33 including persons of color, of children with disabilities under 113.34 age 12, including at least three parents of a child with a 113.35 disability under age seven, five representatives of public or 113.36 private providers of services for children with disabilities 114.1 under age five, including a special education director, county 114.2 social service director, local Head Start director, and a 114.3 community health services or public health nursing 114.4 administrator, one member of the senate, one member of the house 114.5 of representatives, one representative of teacher preparation 114.6 programs in early childhood-special education or other 114.7 preparation programs in early childhood intervention, at least 114.8 one representative of advocacy organizations for children with 114.9 disabilities under age five, one physician who cares for young 114.10 children with special health care needs, one representative each 114.11 from the commissioners of commerce,children, families, and114.12learningeducation, health, human services, a representative 114.13 from the state agency responsible for child care, and a 114.14 representative from Indian health services or a tribal council. 114.15 Section 15.059, subdivisions 2 to 5, apply to the council. The 114.16 council must meet at least quarterly. 114.17 The council must address methods of implementing the state 114.18 policy of developing and implementing comprehensive, 114.19 coordinated, multidisciplinary interagency programs of early 114.20 intervention services for children with disabilities and their 114.21 families. 114.22 The duties of the council include recommending policies to 114.23 ensure a comprehensive and coordinated system of all state and 114.24 local agency services for children under age five with 114.25 disabilities and their families. The policies must address how 114.26 to incorporate each agency's services into a unified state and 114.27 local system of multidisciplinary assessment practices, 114.28 individual intervention plans, comprehensive systems to find 114.29 children in need of services, methods to improve public 114.30 awareness, and assistance in determining the role of interagency 114.31 early intervention committees. 114.32 By September 1, the council must recommend to the governor 114.33 and the commissioners ofchildren, families, and learning114.34 education, health, human services, commerce, and economic 114.35 security policies for a comprehensive and coordinated system. 114.36 Notwithstanding any other law to the contrary, the state 115.1 interagency coordinating council expires on June 30,20032005. 115.2 Sec. 12. Minnesota Statutes 2002, section 125A.30, is 115.3 amended to read: 115.4 125A.30 [INTERAGENCY EARLY INTERVENTION COMMITTEES.] 115.5 (a) A school district, group of districts, or special 115.6 education cooperative, in cooperation with the health and human 115.7 service agencies located in the county or counties in which the 115.8 district or cooperative is located, must establish an 115.9 interagency early intervention committee for children with 115.10 disabilities under age five and their families under this 115.11 section, and for children with disabilities ages three to 22 115.12 consistent with the requirements under sections 125A.023 and 115.13 125A.027. Committees must include representatives of localand115.14regionalhealth, education, and county human service agencies, 115.15 county boards, school boards, early childhood family education 115.16 programs, Head Start, parents of young children with 115.17 disabilities under age 12, child care resource and referral 115.18 agencies, school readiness programs, current service providers, 115.19 and may also include representatives from other private or 115.20 public agencies and school nurses. The committee must elect a 115.21 chair from among its members and must meet at least quarterly. 115.22 (b) The committee must develop and implement interagency 115.23 policies and procedures concerning the following ongoing duties: 115.24 (1) develop public awareness systems designed to inform 115.25 potential recipient families of available programs and services; 115.26 (2) implement interagency child find systems designed to 115.27 actively seek out, identify, and refer infants and young 115.28 children with, or at risk of, disabilities and their families; 115.29 (3) establish and evaluate the identification, referral, 115.30 child and family assessment systems, procedural safeguard 115.31 process, and community learning systems to recommend, where 115.32 necessary, alterations and improvements; 115.33 (4) assure the development of individualized family service 115.34 plans for all eligible infants and toddlers with disabilities 115.35 from birth through age two, and their families, and individual 115.36 education plans and individual service plans when necessary to 116.1 appropriately serve children with disabilities, age three and 116.2 older, and their families and recommend assignment of financial 116.3 responsibilities to the appropriate agencies; 116.4 (5) encourage agencies to develop individual family service 116.5 plans for children with disabilities, age three and older; 116.6 (6) implement a process for assuring that services involve 116.7 cooperating agencies at all steps leading to individualized 116.8 programs; 116.9 (7) facilitate the development of a transitional plan if a 116.10 service provider is not recommended to continue to provide 116.11 services; 116.12 (8) identify the current services and funding being 116.13 provided within the community for children with disabilities 116.14 under age five and their families; 116.15 (9) develop a plan for the allocation and expenditure of 116.16 additional state and federal early intervention funds under 116.17 United States Code, title 20, section 1471 et seq. (Part H, 116.18 Public LawNumber102-119) and United States Code, title 20, 116.19 section 631, et seq. (Chapter I, Public LawNumber89-313); and 116.20 (10) develop a policy that is consistent with section 116.21 13.05, subdivision 9, and federal law to enable a member of an 116.22 interagency early intervention committee to allow another member 116.23 access to data classified as not public. 116.24 (c) The local committee shall also: 116.25 (1) participate in needs assessments and program planning 116.26 activities conducted by local social service, health and 116.27 education agencies for young children with disabilities and 116.28 their families; and 116.29 (2) review and comment on the early intervention section of 116.30 the total special education system for the district, the county 116.31 social service plan, the section or sections of the community 116.32 health services plan that address needs of and service 116.33 activities targeted to children with special health care 116.34 needs, the section on children with special needs in the county 116.35 child care fund plan, sections in Head Start plans on 116.36 coordinated planning and services for children with special 117.1 needs, any relevant portions of early childhood education plans, 117.2 such as early childhood family education or school readiness, or 117.3 other applicable coordinated school and community plans for 117.4 early childhood programs and services, and the section of the 117.5 maternal and child health special project grants that address 117.6 needs of and service activities targeted to children with 117.7 chronic illness and disabilities. 117.8 Sec. 13. Minnesota Statutes 2002, section 125A.76, 117.9 subdivision 1, is amended to read: 117.10 Subdivision 1. [DEFINITIONS.] For the purposes of this 117.11 section, the definitions in this subdivision apply. 117.12 (a) "Base year" for fiscal year 1998 and later fiscal years 117.13 means the second fiscal year preceding the fiscal year for which 117.14 aid will be paid. 117.15 (b) "Basic revenue" has the meaning given it in section 117.16 126C.10, subdivision 2. For the purposes of computing basic 117.17 revenue pursuant to this section, each child with a disability 117.18 shall be counted as prescribed in section 126C.05, subdivision 1. 117.19 (c) "Essential personnel" means teachers, cultural 117.20 liaisons, related services, and support services staff providing 117.21 direct services to students. Essential personnel may also 117.22 include special education paraprofessionals or clericals 117.23 providing support to teachers and students by preparing 117.24 paperwork and making arrangements related to special education 117.25 compliance requirements, including parent meetings and 117.26 individual education plans. 117.27 (d) "Average daily membership" has the meaning given it in 117.28 section 126C.05. 117.29 (e) "Program growth factor" means1.08 for fiscal year117.302002, and1.046 for fiscal year 2003, and 1.0 for fiscal year 117.31 2004 and later. 117.32 Sec. 14. Minnesota Statutes 2002, section 125A.76, 117.33 subdivision 4, is amended to read: 117.34 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.] The state 117.35 total special education aid for fiscal year20002004 equals 117.36$463,000,000$530,642,000. The state total special education 118.1 aid for fiscal year20012005 equals$474,000,000$529,164,000. 118.2 The state total special education aid for later fiscal years 118.3 equals: 118.4 (1) the state total special education aid for the preceding 118.5 fiscal year; times 118.6 (2) the program growth factor; times 118.7 (3) the ratio of the state total average daily membership 118.8 for the current fiscal year to the state total average daily 118.9 membership for the preceding fiscal year. 118.10 Sec. 15. Minnesota Statutes 2002, section 125A.79, 118.11 subdivision 1, is amended to read: 118.12 Subdivision 1. [DEFINITIONS.] For the purposes of this 118.13 section, the definitions in this subdivision apply. 118.14 (a) "Unreimbursed special education cost" means the sum of 118.15 the following: 118.16 (1) expenditures for teachers' salaries, contracted 118.17 services, supplies, equipment, and transportation services 118.18 eligible for revenue under section 125A.76; plus 118.19 (2) expenditures for tuition bills received under sections 118.20 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 118.21 under section 125A.76, subdivision 2; minus 118.22 (3) revenue for teachers' salaries, contracted services, 118.23 supplies, and equipment under section 125A.76; minus 118.24 (4) tuition receipts under sections 125A.03 to 125A.24 and 118.25 125A.65 for services eligible for revenue under section 125A.76, 118.26 subdivision 2. 118.27 (b) "General revenue" means for fiscal year 1996, the sum 118.28 of the general education revenue according to section 126C.10, 118.29 subdivision 1, as adjusted according to section 127A.47, 118.30 subdivision 7, plus the total referendum revenue according to 118.31 section 126C.17, subdivision 4. For fiscal years 1997 and 118.32 later, "general revenue" means the sum of the general education 118.33 revenue according to section 126C.10, subdivision 1, as adjusted 118.34 according to section 127A.47, subdivisions 7 and 8, plus the 118.35 total referendum revenue minus transportation sparsity revenue 118.36 minus total operating capital revenue. 119.1 (c) "Average daily membership" has the meaning given it in 119.2 section 126C.05. 119.3 (d) "Program growth factor" means1.044 for fiscal year119.42002 and1.02 for fiscal year 2003, and 1.0 for fiscal year 2004 119.5 and later. 119.6 Sec. 16. Minnesota Statutes 2002, section 125A.79, 119.7 subdivision 6, is amended to read: 119.8 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 119.9 The state total special education excess cost aid for fiscal 119.10 year 2004 equals $92,067,000. The state total special education 119.11 aid for fiscal year 2005 equals $91,811,000. The state total 119.12 special education excess cost aid for fiscal year20022006 and 119.13 later fiscal years equals: 119.14 (1) the state total special education excess cost aid for 119.15 the preceding fiscal year; times 119.16 (2) the program growth factor; times 119.17 (3) the ratio of the state total average daily membership 119.18 for the current fiscal year to the state total average daily 119.19 membership for the preceding fiscal year. 119.20 Sec. 17. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION AID.] 119.21 (a) For fiscal year 2004, a district shall receive special 119.22 education cross-subsidy reduction aid equal to $5,000,000 times 119.23 the ratio of the district's special education excess cost aid 119.24 for the previous fiscal year according to Minnesota Statutes, 119.25 section 125A.79, subdivision 7, to the state total special 119.26 education excess cost aid for the previous fiscal year according 119.27 to Minnesota Statutes, section 125A.79, subdivision 6. 119.28 (b) For fiscal year 2005, a district shall receive special 119.29 education cross-subsidy reduction aid equal to $15,000,000 times 119.30 the ratio of the district's special education excess cost aid 119.31 for the previous fiscal year according to Minnesota Statutes, 119.32 section 125A.79, subdivision 7, to the state total special 119.33 education excess cost aid for the previous fiscal year according 119.34 to Minnesota Statutes, section 125A.79, subdivision 6. 119.35 (c) Special education cross-subsidy reduction aid must be 119.36 used to pay for a district's unfunded special education costs 120.1 that would otherwise be cross-subsidized by a district's general 120.2 education revenue. 120.3 Sec. 18. [IMPACT OF WAIVING SPECIFIC SPECIAL EDUCATION 120.4 REQUIREMENTS THAT EXCEED FEDERAL LAW; THREE-YEAR PILOT PROJECT.] 120.5 Subdivision 1. [ESTABLISHMENT; GOAL.] A three-year pilot 120.6 project is established to permit independent school district No. 120.7 535, Rochester, and up to three other geographically diverse 120.8 school districts or cooperative units under Minnesota Statutes, 120.9 section 125A.11, subdivision 3, selected by the commissioner of 120.10 education to determine the impact, if any, of waiving specific 120.11 special education requirements listed in subdivision 3 on the 120.12 quality and cost-effectiveness of the instructional services and 120.13 educational outcomes provided to eligible students by the 120.14 project participant. 120.15 Subd. 2. [ELIGIBILITY; APPLICATIONS.] The commissioner 120.16 must transmit information about the pilot project and make 120.17 application forms available to interested school districts or 120.18 cooperative units. Applications must be submitted to the 120.19 commissioner by July 1, 2003. An applicant must identify the 120.20 specific special education requirements listed in subdivision 3 120.21 for which the applicant seeks a waiver and indicate how the 120.22 applicant proposes to modify the activities and procedures 120.23 affected by the waiver. The commissioner must approve the 120.24 applications by August 1, 2003. 120.25 Subd. 3. [WAIVERS.] The following state special education 120.26 requirements are waived for the 2003-2004, 2004-2005, and 120.27 2005-2006 school years for independent school district No. 535, 120.28 Rochester, and the other school districts or cooperative units 120.29 participating in this pilot project: 120.30 (1) Minnesota Statutes, section 125A.56, governing 120.31 prereferral interventions; 120.32 (2) Minnesota Statutes, section 125A.08, paragraph (a), 120.33 clause (1), governing transitional services for students when 120.34 reaching age 14 or grade 9, who transition from secondary 120.35 services to postsecondary education and training, employment, 120.36 community participation, recreation and leisure, and home 121.1 living; 121.2 (3) Minnesota Statutes, section 125A.22, governing 121.3 community transition interagency committees; and 121.4 (4) Minnesota Statutes, section 125A.023, governing 121.5 coordinated interagency services but only affecting eligible 121.6 children with disabilities age seven or older. 121.7 Subd. 4. [STUDENTS' RIGHTS.] Eligible students enrolled in 121.8 a district or receiving special instruction and services through 121.9 a cooperative unit that is participating in this pilot project 121.10 remain entitled to the procedural protections provided under 121.11 federal law in any matter that affects the students' 121.12 identification, evaluation, and placement or change in 121.13 placement, or protections provided under state law in dismissal 121.14 proceedings that may result in students' suspension, exclusion, 121.15 or expulsion. Project participants must ensure that students' 121.16 civil rights are protected, provide equal educational 121.17 opportunities, and prohibit discrimination. Failure to comply 121.18 with this subdivision will at least cause a district or 121.19 cooperative unit to become ineligible to participate in the 121.20 pilot project. 121.21 Subd. 5. [TECHNICAL ASSISTANCE.] The commissioner must 121.22 provide project participants, upon request, assistance in 121.23 developing and implementing a valid and uniform procedure under 121.24 subdivision 6 to evaluate the participants' experience. 121.25 Subd. 6. [EVALUATION; REPORT.] All participating school 121.26 districts and cooperative units must evaluate the impact, if 121.27 any, of waiving specific special education requirements listed 121.28 in subdivision 3 on the quality and cost-effectiveness of the 121.29 instructional services and educational outcomes provided to 121.30 eligible students by the project participant. Project 121.31 participants must focus the evaluation on the overall efficacy 121.32 of modifying the activities and procedures affected by the 121.33 waiver. The evaluation must include a mechanism for documenting 121.34 parents' response to the pilot project. Project participants 121.35 must submit to the commissioner a progress report by September 121.36 1, 2004, and a final report by November 1, 2005. The 122.1 commissioner must compile and present the results of the reports 122.2 to the legislature by February 1, 2006, and recommend 122.3 appropriate amendments to the statutory requirements listed in 122.4 subdivision 3. 122.5 [EFFECTIVE DATE.] This section is effective the day 122.6 following final enactment. 122.7 Sec. 19. [DEPARTMENT RESPONSIBILITY.] 122.8 By January 1, 2004, the commissioner of education must 122.9 adopt rules that: 122.10 (1) establish criteria for selecting hearing officers, the 122.11 standards of conduct to which a hearing officer must adhere, and 122.12 a process to evaluate the hearing system; 122.13 (2) ensure that appropriately trained and knowledgeable 122.14 persons conduct due process hearings in compliance with federal 122.15 law; and 122.16 (3) create standards for expedited due process hearings 122.17 under federal law. 122.18 By March 1, 2004, the commissioner of education must 122.19 develop and make available a notice for participants in 122.20 state-provided dispute resolution processes that informs 122.21 participants of their rights concerning dispute resolution. 122.22 Sec. 20. [APPROPRIATIONS.] 122.23 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 122.24 indicated in this section are appropriated from the general fund 122.25 to the department of education for the fiscal years designated. 122.26 Subd. 2. [SPECIAL EDUCATION; REGULAR.] For special 122.27 education aid under Minnesota Statutes, section 125A.75: 122.28 $499,172,000 ..... 2004 122.29 $529,504,000 ..... 2005 122.30 The 2004 appropriation includes $90,577,000 for 2003 and 122.31 $408,595,000 for 2004. 122.32 The 2005 appropriation includes $122,047,000 for 2004 and 122.33 $407,457,000 for 2005. 122.34 Subd. 3. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION 122.35 AID.] For special education cross-subsidy reduction aid under 122.36 section 17: 123.1 $ 5,000,000 ..... 2004 123.2 $15,000,000 ..... 2005 123.3 This is a onetime appropriation. 123.4 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 123.5 under Minnesota Statutes, section 125A.75, subdivision 3, for 123.6 children with disabilities placed in residential facilities 123.7 within the district boundaries for whom no district of residence 123.8 can be determined: 123.9 $2,177,000 ..... 2004 123.10 $2,244,000 ..... 2005 123.11 If the appropriation for either year is insufficient, the 123.12 appropriation for the other year is available. 123.13 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 123.14 teacher travel for home-based services under Minnesota Statutes, 123.15 section 125A.75, subdivision 1: 123.16 $213,000 ..... 2004 123.17 $260,000 ..... 2005 123.18 The 2004 appropriation includes $34,000 for 2003 and 123.19 $179,000 for 2004. 123.20 The 2005 appropriation includes $53,000 for 2004 and 123.21 $207,000 for 2005. 123.22 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 123.23 cost aid under Minnesota Statutes, section 125A.79, subdivision 123.24 7: 123.25 $90,699,000 ..... 2004 123.26 $92,950,000 ..... 2005 123.27 The 2004 appropriation includes $41,754,000 for 2003 and 123.28 $48,945,000 for 2004. 123.29 The 2005 appropriation includes $43,122,000 for 2004 and 123.30 $49,828,000 for 2005. 123.31 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 123.32 paying the costs a district incurs under Minnesota Statutes, 123.33 section 125A.75, subdivision 8: 123.34 $346,000 ..... 2004 123.35 $356,000 ..... 2005 123.36 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 124.1 transition programs for children with disabilities under 124.2 Minnesota Statutes, section 124D.454: 124.3 $8,359,000 ..... 2004 124.4 $8,867,000 ..... 2005 124.5 The 2004 appropriation includes $1,516,000 for 2003 and 124.6 $6,843,000 for 2004. 124.7 The 2005 appropriation includes $2,043,000 for 2004 and 124.8 $6,824,000 for 2005. 124.9 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 124.10 reimbursing serving school districts for unreimbursed eligible 124.11 expenditures attributable to children placed in the serving 124.12 school district by court action under Minnesota Statutes, 124.13 section 125A.79, subdivision 4: 124.14 $152,000 ..... 2004 124.15 $160,000 ..... 2005 124.16 Subd. 10. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 124.17 special education out-of-state tuition according to Minnesota 124.18 Statutes, section 125A.79, subdivision 8: 124.19 $250,000 ..... 2004 124.20 $250,000 ..... 2005 124.21 Sec. 21. [REPEALER.] 124.22 Minnesota Statutes 2002, sections 125A.023, subdivision 5; 124.23 125A.09; 125A.47; and 125A.79, subdivision 2, are repealed. 124.24 ARTICLE 4 124.25 FACILITIES AND TECHNOLOGY 124.26 Section 1. Minnesota Statutes 2002, section 123B.51, 124.27 subdivision 3, is amended to read: 124.28 Subd. 3. [LEASEROOMS OR BUILDINGSREAL PROPERTY.] When 124.29 necessary, the board may leaserooms or buildingsreal property 124.30 for school purposes. 124.31 Sec. 2. Minnesota Statutes 2002, section 123B.51, 124.32 subdivision 4, is amended to read: 124.33 Subd. 4. [LEASE FOR NONSCHOOL PURPOSE.] (a) The board may 124.34 lease to any person, business, or organizationa schoolhouse124.35 real property that is not needed for school purposes, or part of 124.36a schoolhousethe property that is not needed for school 125.1 purposes if the board determines that leasing part ofa125.2schoolhousethe property does not interfere with the educational 125.3 programs taking placein the rest of the buildingon the 125.4 property. The board may charge and collect reasonable 125.5 consideration for the lease and may determine the terms and 125.6 conditions of the lease. 125.7 (b) In districts with outstanding bonds, the net proceeds 125.8 of the lease must be first deposited in the debt retirement fund 125.9 of the district in an amount sufficient to meet when due that 125.10 percentage of the principal and interest payments for 125.11 outstanding bonds that is ascribable to the payment of expenses 125.12 necessary and incidental to the construction or purchase of the 125.13 particular building or property that is leased. Any remaining 125.14 net proceeds in these districts may be deposited in either the 125.15 debt redemption fund or operating capitalexpenditure125.16fundaccount. All net proceeds of the lease in districts 125.17 without outstanding bonds shall be deposited in the operating 125.18 capitalexpenditure fundaccount of the district. 125.19 (c) The board may make capital improvements, including125.20fixtures, to a schoolhouse or a portion thereofto the real 125.21 property, not exceeding in cost the replacement value of 125.22 theschoolhouseproperty, to facilitate its rental, and the 125.23 lease ofanthe improvedschoolhouseproperty, or part of it, 125.24 shall provide for rentals which will recover the cost of the 125.25 improvements over the initial term of the lease. 125.26 Notwithstanding paragraph (b), the portion of the rentals 125.27 representing the cost of the improvements shall be deposited in 125.28 the operating capitalexpenditure fundaccount of the district 125.29 and the balance of the rentals shall be used as provided in 125.30 paragraph (b). 125.31 Sec. 3. Minnesota Statutes 2002, section 123B.52, is 125.32 amended by adding a subdivision to read: 125.33 Subd. 1a. [CONSTRUCTION CONTRACTS.] In entering into a 125.34 contract for, or in calling for bids for, the construction or 125.35 repair of a facility, a board may not require that any 125.36 contractor or subcontractor that is not signatory to an 126.1 agreement with a labor organization at the time it makes a bid 126.2 or is awarded a contract, do any of the following as a condition 126.3 of performing work on the construction or repair project: 126.4 (1) enter into or agree to adhere to or otherwise observe 126.5 the wage, benefit, or economic terms of, or incur any economic 126.6 detriment pursuant to, any agreement with any labor organization 126.7 in connection with the public improvement; or 126.8 (2) enter into any agreement that requires the employees of 126.9 that contractor or subcontractor to do either of the following 126.10 as a condition of employment or continued employment: 126.11 (i) become members of or become affiliated with a labor 126.12 organization; or 126.13 (ii) pay dues or fees to a labor organization. 126.14 Sec. 4. Minnesota Statutes 2002, section 123B.53, 126.15 subdivision 4, is amended to read: 126.16 Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 126.17 service equalization revenue of a district equals the sum of the 126.18 first tier debt service equalization revenue and the second tier 126.19 debt service equalization revenue. 126.20 (b) The first tier debt service equalization revenue of a 126.21 district equals the greater of zero or the eligible debt service 126.22 revenue minus the amount raised by a levy of 15 percent times 126.23 the adjusted net tax capacity of the district minus the second 126.24 tier debt service equalization revenue of the district. 126.25 (c) The second tier debt service equalization revenue of a 126.26 district equals the greater of zero or the eligible debt service 126.27 revenue, excluding alternative facilities levies under section 126.28 123B.59, subdivision 5, minus the amount raised by a levy of 25 126.29 percent times the adjusted net tax capacity of the district. 126.30 [EFFECTIVE DATE.] This section is effective for revenue for 126.31 fiscal year 2005. 126.32 Sec. 5. Minnesota Statutes 2002, section 123B.57, 126.33 subdivision 1, is amended to read: 126.34 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] (a) To receive 126.35 health and safety revenue for any fiscal year a district must 126.36 submit to the commissioner an application for aid and levy by 127.1 the date determined by the commissioner. The application may be 127.2 for hazardous substance removal, fire and life safety code 127.3 repairs, labor and industry regulated facility and equipment 127.4 violations, and health, safety, and environmental management, 127.5 including indoor air quality management. The application must 127.6 include a health and safety program adopted by the school 127.7 district board. The program must include the estimated cost, 127.8 per building, of the program by fiscal year. Upon approval 127.9 through the adoption of a resolution by each of an intermediate 127.10 district's member school district boards and the approval of the 127.11 department ofchildren, families, and learningeducation, a 127.12 school district may include its proportionate share of the costs 127.13 of health and safety projects for an intermediate district in 127.14 its application. 127.15 (b) Health and safety projects with an estimated cost of 127.16 $500,000 or more per site, approved after February 1, 2003, are 127.17 not eligible for health and safety revenue. Health and safety 127.18 projects with an estimated cost of $500,000 or more per site, 127.19 approved after February 1, 2003, that meet all other 127.20 requirements for health and safety funding, are eligible for 127.21 alternative facilities bonding and levy revenue according to 127.22 section 123B.59. A school board shall not separate portions of 127.23 a single project into components to qualify for health and 127.24 safety revenue, and shall not combine unrelated projects into a 127.25 single project to qualify for alternative facilities bonding and 127.26 levy revenue. 127.27 [EFFECTIVE DATE.] This section is effective the day 127.28 following final enactment and applies to projects approved after 127.29 February 1, 2003, for taxes payable in 2004 and later. 127.30 Sec. 6. Minnesota Statutes 2002, section 123B.57, 127.31 subdivision 4, is amended to read: 127.32 Subd. 4. [HEALTH AND SAFETY LEVY.] To receive health and 127.33 safety revenue, a district may levy an amount equal to the 127.34 district's health and safety revenue as defined in subdivision 3 127.35 multiplied by the lesser of one, or the ratio of the quotient 127.36 derived by dividing the adjusted net tax capacity of the 128.1 district for the year preceding the year the levy is certified 128.2 by the adjusted marginal cost pupil units in the district for 128.3 the school year to which the levy is attributable, 128.4 to$3,956$2,935. 128.5 Sec. 7. Minnesota Statutes 2002, section 123B.57, 128.6 subdivision 6, is amended to read: 128.7 Subd. 6. [USES OF HEALTH AND SAFETY REVENUE.] (a) Health 128.8 and safety revenue may be used only for approved expenditures 128.9 necessary to correct fire and life safety hazards,life safety128.10hazards,or for the removal or encapsulation of asbestos from 128.11 school buildings or property owned or being acquired by the 128.12 district, asbestos-related repairs, cleanup and disposal of 128.13 polychlorinated biphenyls found in school buildings or property 128.14 owned or being acquired by the district, or the cleanup, 128.15 removal, disposal, and repairs related to storing heating fuel 128.16 or transportation fuels such as alcohol, gasoline, fuel oil, and 128.17 special fuel, as defined in section 296A.01,labor and128.18industryMinnesota occupational safety and health administration 128.19 regulated facility and equipment hazards, indoor air quality 128.20 mold abatement, upgrades or replacement of mechanical 128.21 ventilation systems to meet American Society of Heating, 128.22 Refrigerating and Air Conditioning Engineers standards and state 128.23 mechanical code, department of health food code and swimming 128.24 pool hazards excluding depth correction, and health, safety, and 128.25 environmental management. Health and safety revenue must not be 128.26 used to finance a lease purchase agreement, installment purchase 128.27 agreement, or other deferred payments agreement. Health and 128.28 safety revenue must not be used for the construction of new 128.29 facilities or the purchase of portable classrooms, for interest 128.30 or other financing expenses, or for energy efficiency projects 128.31 under section 123B.65. The revenue may not be used for a 128.32 building or property or part of a building or property used for 128.33 post-secondary instruction or administration or for a purpose 128.34 unrelated to elementary and secondary education. 128.35 (b) Notwithstanding paragraph (a), health and safety 128.36 revenue must not be used for replacement of building materials 129.1 or facilities including roof, walls, windows, internal fixtures 129.2 and flooring, nonhealth and safety costs associated with 129.3 demolition of facilities, structural repair or replacement of 129.4 facilities due to unsafe conditions, violence prevention and 129.5 facility security, ergonomics, building and heating, ventilating 129.6 and air conditioning supplies, maintenance, cleaning, testing, 129.7 and calibration activities. All assessments, investigations, 129.8 inventories, and support equipment not leading to the 129.9 engineering or construction of a project shall be included in 129.10 the health, safety, and environmental management costs in 129.11 subdivision 8, paragraph (a). 129.12 [EFFECTIVE DATE.] This section is effective the day 129.13 following final enactment and applies to projects approved after 129.14 February 1, 2003, for taxes payable in 2004 and later. 129.15 Sec. 8. Minnesota Statutes 2002, section 123B.59, 129.16 subdivision 1, is amended to read: 129.17 Subdivision 1. [TO QUALIFY.] (a) An independent or special 129.18 school district qualifies to participate in the alternative 129.19 facilities bonding and levy program if the district has: 129.20 (1) more than 66 students per grade; 129.21 (2) over 1,850,000 square feet of space and the average age 129.22 of building space is 15 years or older or over 1,500,000 square 129.23 feet and the average age of building space is 35 years or older; 129.24 (3) insufficient funds from projected health and safety 129.25 revenue and capital facilities revenue to meet the requirements 129.26 for deferred maintenance, to make accessibility improvements, or 129.27 to make fire, safety, or health repairs; and 129.28 (4) a ten-year facility plan approved by the commissioner 129.29 according to subdivision 2. 129.30 (b) An independent or special school district not eligible 129.31 to participate in the alternative facilities bonding and levy 129.32 program under paragraph (a) qualifies for limited participation 129.33 in the program if the district has: 129.34 (1) one or more health and safety projects with an 129.35 estimated cost of $500,000 or more per site that would qualify 129.36 for health and safety revenue except for the project size 130.1 limitation in section 123B.57, subdivision 1, paragraph (b); and 130.2 (2) insufficient funds from capital facilities revenue to 130.3 fund those projects. 130.4 [EFFECTIVE DATE.] This section is effective for revenue for 130.5 fiscal year 2005. 130.6 Sec. 9. Minnesota Statutes 2002, section 123B.59, 130.7 subdivision 2, is amended to read: 130.8 Subd. 2. [TEN-YEARFACILITY PLAN.] (a) A district 130.9 qualifyingdistrictunder subdivision 1, paragraph (a), must 130.10 have a ten-year facility plan approved by the commissioner that 130.11 includes an inventory of projects and costs that would be 130.12 eligible for: 130.13 (1) health and safety revenue, without restriction as to 130.14 project size; 130.15 (2) disabled access levy; and 130.16 (3) deferred capital expenditures and maintenance projects 130.17 necessary to prevent further erosion of facilities. 130.18 (b) A district qualifying under subdivision 1, paragraph 130.19 (b), must have a five-year plan approved by the commissioner 130.20 that includes an inventory of projects and costs for health and 130.21 safety projects with an estimated cost of $500,000 or more per 130.22 site that would qualify for health and safety revenue except for 130.23 the project size limitation in section 123B.57, subdivision 1, 130.24 paragraph (b). 130.25 (c) The school district must: 130.26 (1) annually update theplanplans; 130.27 (2) biennially submit a facility maintenance plan; and 130.28 (3) indicate whether the district will issue bonds to 130.29 finance the plan or levy for the costs. 130.30 [EFFECTIVE DATE.] This section is effective for revenue for 130.31 fiscal year 2005. 130.32 Sec. 10. Minnesota Statutes 2002, section 123B.59, 130.33 subdivision 3, is amended to read: 130.34 Subd. 3. [BOND AUTHORIZATION.] (a) A school district, upon130.35approval of its board and the commissioner,may issue general 130.36 obligation bonds under this section to financeapproved131.1 facilities plans approved by its board and the commissioner. 131.2 Chapter 475, except sections 475.58 and 475.59, must be complied 131.3 with. The district may levy under subdivision 5 for the debt 131.4 service revenue. The authority to issue bonds under this 131.5 section is in addition to any bonding authority authorized by 131.6 this chapter, or other law. The amount of bonding authority 131.7 authorized under this section must be disregarded in calculating 131.8 the bonding or net debt limits of this chapter, or any other law 131.9 other than section 475.53, subdivision 4. 131.10 (b) Before a district issues bonds under this subdivision, 131.11 it must publish notice of the intended projects, the amount of 131.12 the bond issue, and the total amount of district indebtedness. 131.13 (c) A bond issue tentatively authorized by the board under 131.14 this subdivision becomes finally authorized unless a petition 131.15 signed by more than 15 percent of the registered voters of the 131.16 district is filed with the school board within 30 days of the 131.17 board's adoption of a resolution stating the board's intention 131.18 to issue bonds. The percentage is to be determined with 131.19 reference to the number of registered voters in the district on 131.20 the last day before the petition is filed with the board. The 131.21 petition must call for a referendum on the question of whether 131.22 to issue the bonds for the projects under this section. The 131.23 approval of 50 percent plus one of those voting on the question 131.24 is required to pass a referendum authorized by this section. 131.25 [EFFECTIVE DATE.] This section is effective the day 131.26 following final enactment and applies to bonds issued after 131.27 April 1, 2003, for taxes payable in 2004 and later. 131.28 Sec. 11. Minnesota Statutes 2002, section 123B.59, is 131.29 amended by adding a subdivision to read: 131.30 Subd. 3a. [LEVY AUTHORIZATION.] (a) A school district may 131.31 levy under this section to finance the portion of facilities 131.32 plans approved by its board and the commissioner that are not 131.33 financed through bond issues according to subdivision 3. 131.34 (b) Before a district levies under this subdivision, it 131.35 must publish notice of the intended projects, including the 131.36 total estimated project cost. 132.1 (c) A levy tentatively authorized by the board under this 132.2 subdivision becomes finally authorized unless a petition signed 132.3 by more than 15 percent of the registered voters of the district 132.4 is filed with the school board within 30 days of the board's 132.5 adoption of a resolution stating the board's intention to levy. 132.6 The percentage is to be determined with reference to the number 132.7 of registered voters in the district on the last day before the 132.8 petition is filed with the board. The petition must call for a 132.9 referendum on the question of whether to levy for the projects 132.10 under this section. The approval of 50 percent plus one of 132.11 those voting on the question is required to pass a referendum 132.12 authorized by this section. The referendum must be held on a 132.13 date set by the board. The ballot must provide a general 132.14 description of the proposed projects and state the estimated 132.15 total cost of the projects, the specific number of years, not to 132.16 exceed ten, for which the referendum authorization applies, the 132.17 maximum amount of the levy for each year, and the estimated tax 132.18 rate as a percentage of net tax capacity for the amount 132.19 specified for the first year and for the maximum amount 132.20 specified in the schedule. The ballot must contain a textual 132.21 portion with the information required in this subdivision and a 132.22 question stating substantially the following: 132.23 "Shall the alternative facilities levy proposed by the 132.24 board of ............ School District No. ............ be 132.25 approved?" 132.26 If approved, the amount stated for each year may be 132.27 certified for the number of years approved. The district must 132.28 notify the commissioner of the results of the referendum. 132.29 [EFFECTIVE DATE.] This section is effective the day 132.30 following final enactment and applies to levies for taxes 132.31 payable in 2004 and later. 132.32 Sec. 12. Minnesota Statutes 2002, section 123B.59, 132.33 subdivision 5, is amended to read: 132.34 Subd. 5. [LEVY AUTHORIZED.] A district, after local board132.35approval,may levy for costs related to an approved facility 132.36 plan as follows: 133.1 (a) if the district has indicated to the commissioner that 133.2 bonds will be issued, the district may levy for the principal 133.3 and interest payments on outstanding bonds issued according to 133.4 subdivision 3after reduction for any alternative facilities aid133.5receivable under subdivision 6; or 133.6 (b) if the district has indicated to the commissioner that 133.7 the plan will be funded through levy, the district may levy 133.8 according tothe schedule approved in the plan after reduction133.9for any alternative facilities aid receivable undersubdivision 133.1063a. 133.11 [EFFECTIVE DATE.] This section is effective for taxes 133.12 payable in 2004. 133.13 Sec. 13. Minnesota Statutes 2002, section 123B.63, 133.14 subdivision 1, is amended to read: 133.15 Subdivision 1. [CREATION OF ADOWN PAYMENTCAPITAL PROJECT 133.16 REFERENDUM ACCOUNT.] A district may create adown payment133.17 capital project referendum account as a separate account in 133.18 its general fund or its building construction fund. All 133.19 proceeds from thedown paymentcapital project levy must be 133.20 deposited in the capitalexpenditure fund and transferred to133.21this accountproject referendum account in its general fund. 133.22 The portion of the proceeds to be used for building construction 133.23 must be transferred to the capital project referendum account in 133.24 its building construction fund. Interest income attributable to 133.25 thedown paymentcapital project referendum account must be 133.26 credited to the account. 133.27 Sec. 14. Minnesota Statutes 2002, section 123B.63, 133.28 subdivision 2, is amended to read: 133.29 Subd. 2. [USES OF THE ACCOUNT.] Money in thedown payment133.30 capital project referendum account must be usedas a down133.31paymentfor thefuturecosts of acquisition and betterment for a 133.32 project that has been reviewed under section 123B.71 and has 133.33 been approved according to subdivision 3. 133.34 Sec. 15. Minnesota Statutes 2002, section 123B.63, 133.35 subdivision 3, is amended to read: 133.36 Subd. 3. [FACILITIES DOWN PAYMENTCAPITAL PROJECT LEVY 134.1 REFERENDUM.] A district may levy the local tax rate approved by 134.2 a majority of the electors voting on the question to provide 134.3 fundsfor a down paymentfor an approved project. The election 134.4 must take place no more than five years before the estimated 134.5 date of commencement of the project. The referendum must be 134.6 held on a date set by the board. A referendum for a project not 134.7 receiving a positive review and comment by the commissioner 134.8 under section 123B.71 must be approved by at least 60 percent of 134.9 the voters at the election. The referendum may be called by the 134.10 school board and may be held: 134.11 (1) separately, before an election for the issuance of 134.12 obligations for the project under chapter 475; or 134.13 (2) in conjunction with an election for the issuance of 134.14 obligations for the project under chapter 475; or 134.15 (3) notwithstanding section 475.59, as a conjunctive 134.16 question authorizing both thedown paymentcapital project levy 134.17 and the issuance of obligations for the project under chapter 134.18 475. Any obligations authorized for a project may be issued 134.19 within five years of the date of the election. 134.20 The ballot must provide a general description of the 134.21 proposed project, state the estimated total cost of the project, 134.22 state whether the project has received a positive or negative 134.23 review and comment from the commissioner, state the maximum 134.24 amount of thedown paymentcapital project levy as a percentage 134.25 of net tax capacity, state the amount that will be raised by 134.26 that local tax rate in the first year it is to be levied, and 134.27 state the maximum number of years that the levy authorization 134.28 will apply. 134.29 The ballot must contain a textual portion with the 134.30 information required in this section and a question stating 134.31 substantially the following: 134.32 "Shall thedown paymentcapital project levy proposed by 134.33 the board of .......... School District No. .......... be 134.34 approved?" 134.35 If approved, the amount provided by the approved local tax 134.36 rate applied to the net tax capacity for the year preceding the 135.1 year the levy is certified may be certified for the number of 135.2 years approved. 135.3 In the event a conjunctive question proposes to authorize 135.4 both thedown paymentcapital project levy and the issuance of 135.5 obligations for the project, appropriate language authorizing 135.6 the issuance of obligations must also be included in the 135.7 question. 135.8 The district must notify the commissioner of the results of 135.9 the referendum. 135.10 Sec. 16. Minnesota Statutes 2002, section 123B.63, 135.11 subdivision 4, is amended to read: 135.12 Subd. 4. [EXCESSBUILDING CONSTRUCTION FUNDLEVY 135.13 PROCEEDS.] Any funds remaining in thedown paymentcapital 135.14 project referendum account that are not applied to the payment 135.15 of the costs of the approved project before its final completion 135.16 must be transferred to the district's debt redemption fund. 135.17 Sec. 17. Minnesota Statutes 2002, section 125B.21, is 135.18 amended to read: 135.19 125B.21 [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 135.20 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 135.21 of the Minnesota education telecommunications council 135.22 established in Laws 1993, First Special Session chapter 2, is 135.23 expanded to include representatives of elementary and secondary 135.24 education. The membership shall consist of three 135.25 representatives from the University of Minnesota; three 135.26 representatives of the board of trustees for Minnesota state 135.27 colleges and universities; one representative of the higher 135.28 education services offices; one representative appointed by the 135.29 private college council; one representative selected by the 135.30 commissioner of administration; eight representatives selected 135.31 by the commissioner ofchildren, families, and learning135.32 education, at least one of which must come from each of the six 135.33 higher education telecommunication regions; a representative 135.34 from the office of technology; two members each from the senate 135.35 and the house of representatives selected by the subcommittee on 135.36 committees of the committee on rules and administration of the 136.1 senate and the speaker of the house, one member from each body 136.2 must be a member of the minority party; and three 136.3 representatives of libraries, one representing regional public 136.4 libraries, one representing multitype libraries, and one 136.5 representing community libraries, selected by the governor; and 136.6 two members, one selected from and representing the higher 136.7 education regional coordinators and one selected from and 136.8 representing the kindergarten through grade 12 cluster regions. 136.9 The council shall serve as a forum to establish and advocate for 136.10 a statewide vision and plans for the use of distance learning 136.11 technologies, including: 136.12 (1) the coordination and collaboration of distance learning 136.13 opportunities; 136.14 (2) the implementation of the use of distance learning 136.15 technologies; 136.16 (3) the collaboration of distance learning users; 136.17 (4) the implementation of educational policy relating to 136.18 telecommunications; 136.19 (5) the exchange of ideas; 136.20 (6) the communications with state government and related 136.21 agencies and entities; 136.22 (7) the coordination of networks for post-secondary 136.23 campuses, kindergarten through grade 12 education, and regional 136.24 and community libraries; and 136.25 (8) the promotion of consistency of the operation of the 136.26 learning network with standards of an open system architecture. 136.27 The council expires June 30, 2004. 136.28 Sec. 18. Minnesota Statutes 2002, section 126C.40, 136.29 subdivision 1, is amended to read: 136.30 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 136.31 independent or a special school district or a group of 136.32 independent or special school districts finds it economically 136.33 advantageous to rent or lease a building or land for any 136.34 instructional purposes or for school storage or furniture 136.35 repair, and it determines that the operating capital revenue 136.36 authorized under section 126C.10, subdivision 13, is 137.1 insufficient for this purpose, it may apply to the commissioner 137.2 for permission to make an additional capital expenditure levy 137.3 for this purpose. An application for permission to levy under 137.4 this subdivision must contain financial justification for the 137.5 proposed levy, the terms and conditions of the proposed lease, 137.6 and a description of the space to be leased and its proposed use. 137.7 (b) The criteria for approval of applications to levy under 137.8 this subdivision must include: the reasonableness of the price, 137.9 the appropriateness of the space to the proposed activity, the 137.10 feasibility of transporting pupils to the leased building or 137.11 land, conformity of the lease to the laws and rules of the state 137.12 of Minnesota, and the appropriateness of the proposed lease to 137.13 the space needs and the financial condition of the district. 137.14 The commissioner must not authorize a levy under this 137.15 subdivision in an amount greater than 90 percent of the cost to 137.16 the district of renting or leasing a building or land for 137.17 approved purposes. The proceeds of this levy must not be used 137.18 for custodial or other maintenance services. A district may not 137.19 levy under this subdivision for the purpose of leasing or 137.20 renting a district-owned building or site to itself. 137.21 (c) For agreements finalized after July 1, 1997, a district 137.22 may not levy under this subdivision for the purpose of leasing: 137.23 (1) a newly constructed building used primarily for regular 137.24 kindergarten, elementary, or secondary instruction; or (2) a 137.25 newly constructed building addition or additions used primarily 137.26 for regular kindergarten, elementary, or secondary instruction 137.27 that contains more than 20 percent of the square footage of the 137.28 previously existing building. 137.29 (d) Notwithstanding paragraph (b), a district may levy 137.30 under this subdivision for the purpose of leasing or renting a 137.31 district-owned building or site to itself only if the amount is 137.32 needed by the district to make payments required by a lease 137.33 purchase agreement, installment purchase agreement, or other 137.34 deferred payments agreement authorized by law, and the levy 137.35 meets the requirements of paragraph (c). A levy authorized for 137.36 a district by the commissioner under this paragraph may be in 138.1 the amount needed by the district to make payments required by a 138.2 lease purchase agreement, installment purchase agreement, or 138.3 other deferred payments agreement authorized by law, provided 138.4 that any agreement include a provision giving the school 138.5 districts the right to terminate the agreement annually without 138.6 penalty. 138.7 (e) The total levy under this subdivision for a district 138.8 for any year must not exceed$100$90 times the resident pupil 138.9 units for the fiscal year to which the levy is attributable. 138.10 (f) For agreements for which a review and comment have been 138.11 submitted to the department ofchildren, families, and138.12learningeducation after April 1, 1998, the term "instructional 138.13 purpose" as used in this subdivision excludes expenditures on 138.14 stadiums. 138.15 (g) The commissioner ofchildren, families, and138.16learningeducation may authorize a school district to exceed the 138.17 limit in paragraph (e) if the school district petitions the 138.18 commissioner for approval. The commissioner shall grant 138.19 approval to a school district to exceed the limit in paragraph 138.20 (e) for not more than five years if the district meets the 138.21 following criteria: 138.22 (1) the school district has been experiencing pupil 138.23 enrollment growth in the preceding five years; 138.24 (2) the purpose of the increased levy is in the long-term 138.25 public interest; 138.26 (3) the purpose of the increased levy promotes colocation 138.27 of government services; and 138.28 (4) the purpose of the increased levy is in the long-term 138.29 interest of the district by avoiding over construction of school 138.30 facilities. 138.31 (h) A school district that is a member of an intermediate 138.32 school district may include in its authority under this 138.33 section 90 percent of the costs associated with leases of 138.34 administrative and classroom space for intermediate school 138.35 district programs. This authority must not exceed$25$22.50 138.36 times the adjusted marginal cost pupil units of the member 139.1 districts. This authority is in addition to any other authority 139.2 authorized under this section. 139.3 (i) In addition to the allowable capital levies in 139.4 paragraph (a), a district that is a member of the "Technology 139.5 and Information Education Systems" data processing joint board, 139.6 that finds it economically advantageous to enter into a lease 139.7 purchase agreement for a building for a group of school 139.8 districts or special school districts for staff development 139.9 purposes, may levy for its portion of lease costs attributed to 139.10 the district within the total levy limit in paragraph (e). 139.11 [EFFECTIVE DATE.] This section is effective for taxes 139.12 payable in 2004. 139.13 Sec. 19. Minnesota Statutes 2002, section 126C.63, 139.14 subdivision 5, is amended to read: 139.15 Subd. 5. [LEVY.] "Levy" means a district's net debt 139.16 service levy after the reduction of debt service equalization 139.17 aid under section 123B.53, subdivision 6. For taxes payable in 139.1819942003 and later, each district's maximum effort debt service 139.19 levy for purposes of subdivision 8, must be reduced by an equal 139.20 number of percentage points if the commissioner of finance 139.21 determines that the levy reduction will not result in 139.22 astatewide property taxpayment from the general fund in the 139.23 state treasury according to section 16A.641, as would be 139.24 required under Minnesota Statutes1992, section124.46126C.72, 139.25 subdivision 3. A district's levy that is adjusted under this 139.26 section must not be reduced below22.330.1 percent of the 139.27 district's adjusted net tax capacity. 139.28 Sec. 20. Minnesota Statutes 2002, section 126C.63, 139.29 subdivision 8, is amended to read: 139.30 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 139.31 effort debt service levy" means the lesser of: 139.32 (1) a levy in whichever of the following amounts is 139.33 applicable: 139.34(a)(i) in any district receiving a debt service loan for a 139.35 debt service levy payable in 2002 and thereafter, or granted a 139.36 capital loan after January 1,20012002, a levy in total dollar 140.1 amount computed at a rate of3040 percent of adjusted net tax 140.2 capacity for taxes payable in 2002 and thereafter; 140.3(b)(ii) in any district receiving a debt service loan for 140.4 a debt service levy payable in1991 and thereafter2001 or 140.5 earlier, or granted a capital loanafterbefore January1140.6 2,19902001, a levy in a total dollar amount computed at a rate 140.7 of2432 percent of adjusted net tax capacity for taxes payable 140.8 in19912002 and thereafter; 140.9(c) in any district granted a debt service loan after July140.1031, 1981, or granted a capital loan which is approved after July140.1131, 1981, a levy in a total dollar amount computed as a tax rate140.12of 21.92 percent on the adjusted net tax capacity for taxes140.13payable in 1991 and thereafter;or 140.14 (2) a levy in any district for which a capital loan was 140.15 approved prior to August 1, 1981, a levy in a total dollar 140.16 amount equal to the sum of the amount of the required debt 140.17 service levy and an amount which when levied annually will in 140.18 the opinion of the commissioner be sufficient to retire the 140.19 remaining interest and principal on any outstanding loans from 140.20 the state within 30 years of the original date when the capital 140.21 loan was granted. 140.22 (b) The board in any district affected by the provisions of 140.23 paragraph (a), clause (2), may elect instead to determine the 140.24 amount of its levy according to the provisions of paragraph (a), 140.25 clause (1). If a district's capital loan is not paid within 30 140.26 years because it elects to determine the amount of its levy 140.27 according to the provisions of paragraph (a), clause (2), the 140.28 liability of the district for the amount of the difference 140.29 between the amount it levied under paragraph (a), clause (2), 140.30 and the amount it would have levied under paragraph (a), clause 140.31 (1), and for interest on the amount of that difference, must not 140.32 be satisfied and discharged pursuant to Minnesota Statutes 1988, 140.33 or an earlier edition of Minnesota Statutes if applicable, 140.34 section 124.43, subdivision 4. 140.35 Sec. 21. Minnesota Statutes 2002, section 126C.69, 140.36 subdivision 2, is amended to read: 141.1 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 141.2 1999, a district is not eligible for a capital loan unless the 141.3 district's estimated net debt tax rate as computed by the 141.4 commissioner after debt service equalization aid would be more 141.5 than3040 percent of adjusted net tax capacity. The estimate 141.6 must assume a 20-year maturity schedule for new debt. 141.7 Sec. 22. Minnesota Statutes 2002, section 126C.69, 141.8 subdivision 9, is amended to read: 141.9 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 141.10 recommended for approval for a district exceeding an amount 141.11 computed as follows: 141.12 (1) the amount requested by the district under subdivision 141.13 6; 141.14 (2) plus the aggregate principal amount of general 141.15 obligation bonds of the district outstanding on June 30 of the 141.16 year following the year the application was received, not 141.17 exceeding the limitation on net debt of the district in section 141.18 475.53, subdivision 4, or450607 percent of its adjusted net 141.19 tax capacity as most recently determined, whichever is less; 141.20 (3) less the maximum net debt permissible for the district 141.21 on December 1 of the year the application is received, under the 141.22 limitation in section 475.53, subdivision 4, or450607 percent 141.23 of its adjusted net tax capacity as most recently determined, 141.24 whichever is less; 141.25 (4) less any amount by which the amount voted exceeds the 141.26 total cost of the facilities for which the loan is granted. 141.27 (b) The loan may be approved in an amount computed as 141.28 provided in paragraph (a), clauses (1) to (3), subject to later 141.29 reduction according to paragraph (a), clause (4). 141.30 Sec. 23. Minnesota Statutes 2002, section 177.42, 141.31 subdivision 2, is amended to read: 141.32 Subd. 2. [PROJECT.] "Project" means erection, 141.33 construction, remodeling, or repairing of a public building or 141.34 other public work, except a public school facility, financed in 141.35 whole or part by state funds. 141.36 [EFFECTIVE DATE.] This section is effective the day 142.1 following final enactment and applies to all contracts for 142.2 erecting, constructing, remodeling, or repairing a public school 142.3 facility for students in any grades kindergarten through 12 142.4 entered into after that date. 142.5 Sec. 24. Minnesota Statutes 2002, section 475.61, 142.6 subdivision 1, is amended to read: 142.7 Subdivision 1. [DEBT SERVICE RESOLUTION.] The governing 142.8 body of any municipality issuing general obligations shall, 142.9 prior to delivery of the obligations, levy by resolution a 142.10 direct general ad valorem tax upon all taxable property in the 142.11 municipality to be spread upon the tax rolls for each year of 142.12 the term of the obligations. The tax levies for all years for 142.13 municipalities other than school districts shall be specified 142.14 and such that if collected in full they, together with estimated 142.15 collections of special assessments and other revenues pledged 142.16 for the payment of said obligations, will produce at least five 142.17 percent in excess of the amount needed to meet when due the 142.18 principal and interest payments on the obligations. The tax 142.19 levies for school districts shall be specified and such that if 142.20 collected in full they, together with estimated collection of 142.21 other revenues pledged for the payment of the obligations, will 142.22 producebetweenfiveand sixpercent in excess of the amount 142.23 needed to meet when due the principal and interest payments on 142.24 the obligations, rounded up to the nearest dollar; except that, 142.25 with the permission of the commissioner ofchildren, families,142.26and learningeducation, a school board may specify a tax levy in 142.27 a higher amount if necessary either to meet an anticipated tax 142.28 delinquency or for cash flow needs to meet the required payments 142.29 from the debt redemption fund. Such resolution shall 142.30 irrevocably appropriate the taxes so levied and any special 142.31 assessments or other revenues so pledged to the municipality's 142.32 debt service fund or a special debt service fund or account 142.33 created for the payment of one or more issues of obligations. 142.34 The governing body may, in its discretion, at any time after the 142.35 obligations have been authorized, adopt a resolution levying 142.36 only a portion of such taxes, to be filed, assessed, extended, 143.1 collected, and remitted as hereinafter provided, and the amount 143.2 or amounts therein levied shall be credited against the tax 143.3 required to be levied prior to delivery of the obligations. 143.4 Sec. 25. Minnesota Statutes 2002, section 475.61, 143.5 subdivision 3, is amended to read: 143.6 Subd. 3. [IRREVOCABILITY.] (a) Tax levies so made and 143.7 filed shall be irrevocable, except as provided in this 143.8 subdivision. 143.9 (b) For purposes of this subdivision, "excess debt 143.10 redemption fund balance" means the greater of zero or the 143.11 balance in the district's debt redemption fund as of June 30 of 143.12 the fiscal year ending in the year before the year the levy is 143.13 certified, minus any debt redemption fund balance attributable 143.14 to refunding of existing bonds, minus the amount of the levy 143.15 reduction for the current year and the prior year under 143.16 paragraphs (e) and (f), minus five percent of the district's 143.17 required debt service levy for the next year. 143.18 (c) By July 15 each year, a district shall report to the 143.19 commissioner ofchildren, families, and learningeducation the 143.20 amount of the districts' debt redemption fund balance as of June 143.21 30 of the prior year attributable to refunding of existing bonds. 143.22 (d) By August 15 each year, the commissioner shall 143.23 determine the excess debt redemption fund balance for each 143.24 school district, and shall certify the amount of the excess 143.25 balance to the school district superintendent. 143.26 (e) In each year when a district has an excess debt 143.27 redemption fund balance, the commissioner shallreport the143.28amount of the excess to the county auditor and the auditor shall143.29 reduce the tax levy otherwise to be included in the rolls next 143.30 prepared by the amount certified. 143.31 (f) The school board may, with the approval of the 143.32 commissioner, retain all or part of the excess balance if it is 143.33 necessary to ensure the prompt and full payment of its 143.34 obligations and any call premium on its obligations, will be 143.35 used for redemption of its obligations in accordance with their 143.36 terms, or to level out the debt service tax rate, excluding the 144.1 debt excess adjustment, for its obligations over the next two 144.2 years. A school district requesting authority to retain all or 144.3 part of the excess balance shall provide written documentation 144.4 to the commissioner describing the rationale for its request by 144.5 September 15 including the issuance of new obligations within 144.6 the next year or the refunding of existing obligations. A 144.7 school district that retains an excess may request to transfer 144.8 the excess to its operating capital account in the general fund 144.9 under section 123B.80. The school board may, with the approval 144.10 of the commissioner, specify a tax levy in a higher amount if 144.11 necessary because of anticipated tax delinquency or for cash 144.12 flow needs to meet the required payments from the debt 144.13 redemption fund. 144.14 (g) If the governing body, including the governing body of 144.15 a school district, in any year makes an irrevocable 144.16 appropriation to the debt service fund of money actually on hand 144.17 or if there is on hand any excess amount in the debt service 144.18 fund, the recording officer may certify to the county auditor 144.19 the fact and amount thereof and the auditor shall reduce by the 144.20 amount so certified the amount otherwise to be included in the 144.21 rolls next thereafter prepared. 144.22 Sec. 26. [BONDS; MOUNDS VIEW.] 144.23 Notwithstanding Minnesota Statutes, section 123B.59, 144.24 subdivision 3, independent school district No. 621, Mounds View, 144.25 may issue bonds according to Minnesota Statutes 2002, section 144.26 123B.59, subdivision 3, for projects approved by the 144.27 commissioner before February 1, 2003. 144.28 [EFFECTIVE DATE.] This section is effective the day 144.29 following final enactment. 144.30 Sec. 27. [LEASE LEVY EXCEPTION.] 144.31 Notwithstanding Minnesota Statutes, section 126C.40, 144.32 subdivision 1, a school district that has entered into a 144.33 completed agreement under Laws 2000, chapter 492, article 1, 144.34 section 3, subdivision 4, may continue to levy for 100 percent 144.35 of the costs of any lease required by the agreement. 144.36 Sec. 28. [PROPERTY SALE; ST. FRANCIS SCHOOL DISTRICT.] 145.1 Notwithstanding Minnesota Statutes, section 123B.51, 145.2 subdivision 6, or any other law to the contrary, independent 145.3 school district No. 15, St. Francis, may deposit the proceeds 145.4 from the sale of land that was purchased with funds obtained 145.5 according to Laws 1992, chapter 558, section 7, subdivision 7, 145.6 in the district's general fund reserved for operating capital 145.7 account. The district may only use the proceeds of the sale for 145.8 projects designed to create or improve safe walking routes for 145.9 the students of independent school district No. 15, St. Francis. 145.10 [EFFECTIVE DATE.] This section is effective the day 145.11 following final enactment. 145.12 Sec. 29. [APPROPRIATIONS.] 145.13 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 145.14 indicated in this section are appropriated from the general fund 145.15 to the department of education for the fiscal years designated. 145.16 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 145.17 safety aid according to Minnesota Statutes, section 123B.57, 145.18 subdivision 5: 145.19 $7,602,000 ..... 2004 145.20 $6,137,000 ..... 2005 145.21 The 2004 appropriation includes $1,516,000 for 2003 and 145.22 $6,086,000 for 2004. 145.23 The 2005 appropriation includes $1,817,000 for 2004 and 145.24 $4,320,000 for 2005. 145.25 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 145.26 according to Minnesota Statutes, section 123B.53, subdivision 6: 145.27 $33,416,000 ..... 2004 145.28 $37,521,000 ..... 2005 145.29 The 2004 appropriation includes $5,586,000 for 2003 and 145.30 $27,830,000 for 2004. 145.31 The 2005 appropriation includes $8,312,000 for 2004 and 145.32 $29,209,000 for 2005. 145.33 Subd. 4. [ALTERNATIVE FACILITIES BONDING AID.] For 145.34 alternative facilities bonding aid, according to Minnesota 145.35 Statutes, section 123B.59, subdivision 1: 145.36 $18,129,000 ..... 2004 146.1 $ 4,436,000 ..... 2005 146.2 The 2004 appropriation includes $3,278,000 for 2003 and 146.3 $14,851,000 for 2004. 146.4 The 2005 appropriation includes $4,436,000 for 2004 and $0 146.5 for 2005. 146.6 Sec. 30. [REPEALER.] 146.7 (a) Minnesota Statutes 2002, section 125B.11, is repealed. 146.8 (b) Minnesota Statutes 2002, section 123B.59, subdivisions 146.9 6 and 7, are repealed effective for revenue for fiscal year 2005. 146.10 ARTICLE 5 146.11 NUTRITION; SCHOOL ACCOUNTING; OTHER PROGRAMS 146.12 Section 1. Minnesota Statutes 2002, section 12.21, 146.13 subdivision 3, is amended to read: 146.14 Subd. 3. [SPECIFIC AUTHORITY.] In performing duties under 146.15 this chapter and to effect its policy and purpose, the governor 146.16 may: 146.17 (1) make, amend, and rescind the necessary orders and rules 146.18 to carry out the provisions of this chapter and section 216C.15 146.19 within the limits of the authority conferred by this section, 146.20 with due consideration of the plans of the federal government 146.21 and without complying with sections 14.001 to 14.69, but no 146.22 order or rule has the effect of law except as provided by 146.23 section 12.32; 146.24 (2) ensure that a comprehensive emergency operations plan 146.25 and emergency management program for this state are developed 146.26 and maintained, and are integrated into and coordinated with the 146.27 emergency plans of the federal government and of other states to 146.28 the fullest possible extent; 146.29 (3) in accordance with the emergency operations plan and 146.30 the emergency management program of this state, procure 146.31 supplies, equipment, and facilities; institute training programs 146.32 and public information programs; and take all other preparatory 146.33 steps, including the partial or full activation of emergency 146.34 management organizations in advance of actual disaster to ensure 146.35 the furnishing of adequately trained and equipped forces of 146.36 emergency management personnel in time of need; 147.1 (4) make studies and surveys of the industries, resources, 147.2 and facilities in this state as may be necessary to ascertain 147.3 the capabilities of the state for emergency management and to 147.4 plan for the most efficient emergency use of those industries, 147.5 resources, and facilities; 147.6 (5) on behalf of this state, enter into mutual aid 147.7 arrangements or cooperative agreements with other states, tribal 147.8 authorities, and Canadian provinces, and coordinate mutual aid 147.9 plans between political subdivisions of this state; 147.10 (6) delegate administrative authority vested in the 147.11 governor under this chapter, except the power to make rules, and 147.12 provide for the subdelegation of that authority; 147.13 (7) cooperate with the president and the heads of the armed 147.14 forces, the emergency management agency of the United States and 147.15 other appropriate federal officers and agencies, and with the 147.16 officers and agencies of other states in matters pertaining to 147.17 the emergency management of the state and nation, including the 147.18 direction or control of: 147.19 (i) emergency preparedness drills and exercises; 147.20 (ii) warnings and signals for drills or actual emergencies 147.21 and the mechanical devices to be used in connection with them; 147.22 (iii) shutting off water mains, gas mains, electric power 147.23 connections and the suspension of all other utility services; 147.24 (iv) the conduct of persons in the state, including 147.25 entrance or exit from any stricken or threatened public place, 147.26 occupancy of facilities, and the movement and cessation of 147.27 movement of pedestrians, vehicular traffic, and all forms of 147.28 private and public transportation during, prior, and subsequent 147.29 to drills or actual emergencies; 147.30 (v) public meetings or gatherings; and 147.31 (vi) the evacuation, reception, and sheltering of persons; 147.32 (8) contribute to a political subdivision, within the 147.33 limits of the appropriation for that purpose, not more than 25 147.34 percent of the cost of acquiring organizational equipment that 147.35 meets standards established by the governor; 147.36 (9) formulate and execute, with the approval of the 148.1 executive council, plans and rules for the control of traffic in 148.2 order to provide for the rapid and safe movement over public 148.3 highways and streets of troops, vehicles of a military nature, 148.4 and materials for national defense and war or for use in any war 148.5 industry, for the conservation of critical materials, or for 148.6 emergency management purposes; coordinate the activities of the 148.7 departments or agencies of the state and its political 148.8 subdivisions concerned directly or indirectly with public 148.9 highways and streets, in a manner that will best effectuate 148.10 those plans; 148.11 (10) alter or adjust by executive order, without complying 148.12 with sections 14.01 to 14.69, the working hours, work days and 148.13 work week of, and annual and sick leave provisions and payroll 148.14 laws regarding all state employees in the executive branch as 148.15 the governor deems necessary to minimize the impact of the 148.16 disaster or emergency, conforming the alterations or adjustments 148.17 to existing state laws, rules, and collective bargaining 148.18 agreements to the extent practicable; 148.19 (11) authorize the commissioner ofchildren, families, and148.20learningeducation to alter school schedules, curtail school 148.21 activities, or order schools closedwithout affecting state aid148.22to schools,as defined in section 120A.05, subdivisions 9, 11, 148.23 13, and 17, and including charter schools under section 124D.10, 148.24 and elementary schools enrolling prekindergarten pupils in 148.25 district programs; and 148.26 (12) transfer the direction, personnel, or functions of 148.27 state agencies to perform or facilitate response and recovery 148.28 programs. 148.29 Sec. 2. Minnesota Statutes 2002, section 84A.51, 148.30 subdivision 4, is amended to read: 148.31 Subd. 4. [COUNTY'S USE OF FUNDS.] The funds received by 148.32 each county must be apportioned by the county auditor as follows: 148.33 (1) 30 percent to a county development fund, which is 148.34 created, to be spent under the direction of the county board for 148.35 the rehabilitation and development of the portion of the county 148.36 within the conservation area; 149.1 (2) 40 percent to thecapital outlaygeneral fund of the 149.2 school district from which derived; 149.3 (3) 20 percent to the county revenue fund; and 149.4 (4) ten percent to the township road and bridge fund of the 149.5 township from which derived. 149.6 If the proceeds are derived from an unorganized township 149.7 with no levy for road and bridge purposes, the township portion 149.8 must be credited to the county revenue fund. 149.9 Sec. 3. Minnesota Statutes 2002, section 120A.05, 149.10 subdivision 9, is amended to read: 149.11 Subd. 9. [ELEMENTARY SCHOOL.] "Elementary school" means 149.12 any school with building, equipment, courses of study, class 149.13 schedules, enrollment of pupils ordinarily in prekindergarten 149.14 through grade 6 or any portion thereof, and staff meeting the 149.15 standards established by the commissioner. 149.16The commissioner of children, families, and learning shall149.17not close a school or deny any state aids to a district for its149.18elementary schools because of enrollment limitations classified149.19in accordance with the provisions of this subdivision.149.20 Sec. 4. Minnesota Statutes 2002, section 124D.11, 149.21 subdivision 9, is amended to read: 149.22 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 149.23 Notwithstanding section 127A.45, subdivision 3, aid payments for 149.24 the current fiscal year to a charter school not in its first 149.25 year of operation shall be of an equal amount on each of the 23 149.26 payment dates. A charter school in its first year of operation 149.27 shall receive, on its first payment date, ten percent of its 149.28 cumulative amount guaranteed for the year and 22 payments of an 149.29 equal amount thereafter the sum of which shall be 90 percent of 149.30 the cumulative amount guaranteed. 149.31 (b) Notwithstanding paragraph (a), for a charter school 149.32 ceasing operation prior to the end of a school year,8377 149.33 percent of the amount due for the school year may be paid to the 149.34 school after audit of prior fiscal year and current fiscal year 149.35 pupil counts. 149.36 (c) Notwithstanding section 127A.45, subdivision 3, and 150.1 paragraph (a),8377 percent of the start-up cost aid under 150.2 subdivision 8 shall be paid within 45 days after the first day 150.3 of student attendance for that school year. 150.4 (d) In order to receive state aid payments under this 150.5 subdivision, a charter school in its first three years of 150.6 operation must submit a quarterly report to the department of 150.7children, families, and learningeducation. The report must 150.8 list each student by grade, show the student's start and end 150.9 dates, if any, with the charter school, and for any student 150.10 participating in a learning year program, the report must list 150.11 the hours and times of learning year activities. The report 150.12 must be submitted not more than two weeks after the end of the 150.13 calendar quarter to the department. The department must develop 150.14 a Web-based reporting form for charter schools to use when 150.15 submitting enrollment reports. A charter school in its fourth 150.16 and subsequent year of operation must submit enrollment 150.17 information to the department in the form and manner requested 150.18 by the department. 150.19 [EFFECTIVE DATE.] This section is effective for revenue for 150.20 fiscal year 2004. 150.21 Sec. 5. [124D.1158] [SCHOOL BREAKFAST PROGRAM.] 150.22 Subdivision 1. [PURPOSE.] The purpose of the school 150.23 breakfast program is to provide affordable morning nutrition to 150.24 children so that they can effectively learn. Public and 150.25 nonpublic schools that participate in the federal school 150.26 breakfast program may receive state breakfast aid. Schools 150.27 shall encourage all children to eat a nutritious breakfast, 150.28 either at home or at school, and shall work to eliminate 150.29 barriers to breakfast participation at school such as inadequate 150.30 facilities and transportation. 150.31 Subd. 2. [PROGRAM; ELIGIBILITY.] Each school year, public 150.32 and nonpublic schools that participate in the federal school 150.33 breakfast program are eligible for the state breakfast program. 150.34 Subd. 3. [PROGRAM REIMBURSEMENT.] Each school year, the 150.35 state must reimburse each participating school 30 cents for each 150.36 reduced price breakfast and 55 cents for each fully paid 151.1 breakfast. 151.2 Subd. 4. [NO FEES.] A school that receives school 151.3 breakfast aid under this section must make breakfast available 151.4 without charge to all participating students who qualify for 151.5 free or reduced price meals. 151.6 Sec. 6. Minnesota Statutes 2002, section 124D.118, 151.7 subdivision 4, is amended to read: 151.8 Subd. 4. [REIMBURSEMENT.] In accordance with program 151.9 guidelines, the commissioner shallprepay orreimburse each 151.10 participatingdistricts for the state share of the district's151.11cost for providingpublic or nonpublic school nine cents for 151.12 each half-pint of milk that is served to kindergarten students 151.13 and is not part of a school lunch or breakfast reimbursed under 151.14 section 124D.111 or 124D.1158. 151.15 Sec. 7. Minnesota Statutes 2002, section 126C.42, 151.16 subdivision 1, is amended to read: 151.17 Subdivision 1. [1977 STATUTORY OPERATING DEBT.] (a) In 151.18 each year in which so required by this subdivision, a district 151.19 must make an additional levy to eliminate its statutory 151.20 operating debt, determined as of June 30, 1977, and certified 151.21 and adjusted by the commissioner. This levy shall not be made 151.22 in more than 30 successive years and each year before it is 151.23 made, it must be approved by the commissioner and the approval 151.24 shall specify its amount. This levy shall be an amount which is 151.25 equal to the amount raised by a levy of a net tax rate of1.98151.26 2.67 percent times the adjusted net tax capacity of the district 151.27 for the preceding year for taxes payable in20002002 and 151.28 thereafter; provided that in the last year in which the district 151.29 is required to make this levy, it must levy an amount not to 151.30 exceed the amount raised by a levy of a net tax rate of1.98151.31 2.67 percent times the adjusted net tax capacity of the district 151.32 for the preceding year for taxes payable in20002002 and 151.33 thereafter. When the sum of the cumulative levies made pursuant 151.34 to this subdivision and transfers made according to section 151.35 123B.79, subdivision 6, equals an amount equal to the statutory 151.36 operating debt of the district, the levy shall be discontinued. 152.1 (b) The district must establish a special account in the 152.2 general fund which shall be designated "appropriated fund 152.3 balance reserve account for purposes of reducing statutory 152.4 operating debt" on its books and records. This account shall 152.5 reflect the levy authorized pursuant to this subdivision. The 152.6 proceeds of this levy must be used only for cash flow 152.7 requirements and must not be used to supplement district 152.8 revenues or income for the purposes of increasing the district's 152.9 expenditures or budgets. 152.10 (c)Any district which is required to levy pursuant to this152.11subdivision must certify the maximum levy allowable under152.12section 126C.13, subdivision 2, in that same year.152.13(d)Each district shall make permanent fund balance 152.14 transfers so that the total statutory operating debt of the 152.15 district is reflected in the general fund as of June 30, 1977. 152.16 Sec. 8. Minnesota Statutes 2002, section 126C.43, 152.17 subdivision 2, is amended to read: 152.18 Subd. 2. [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 152.19 FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 152.20 levy 90 percent of theamountsamount exceeding $10 times the 152.21 district's adjusted marginal cost pupil units for the fiscal 152.22 year ending in the year before the year the levy is certified 152.23 necessary (i) to pay the district's obligations under section 152.24 268.052, subdivision 1, andthe amounts necessary(ii) to pay 152.25 for job placement services offered to employees who may become 152.26 eligible for benefits pursuant to section 268.085 for the fiscal 152.27 year the levy is certified. 152.28 [EFFECTIVE DATE.] This section is effective for taxes 152.29 payable in 2004. 152.30 Sec. 9. Minnesota Statutes 2002, section 126C.43, 152.31 subdivision 3, is amended to read: 152.32 Subd. 3. [TAX LEVY FOR JUDGMENT.] A district may levy 90 152.33 percent of theamountsamount exceeding $10 times the district's 152.34 adjusted marginal cost pupil units for the fiscal year ending in 152.35 the year before the year the levy is certified necessary to pay 152.36 judgments against the district under section 123B.25 that became 153.1 final after the date the district certified its proposed levy in 153.2 the previous year. With the approval of the commissioner, a 153.3 district may spread this levy over a period not to exceed three 153.4 years. Upon approval through the adoption of a resolution by 153.5 each of an intermediate district's member school district 153.6 boards, a member school district may include its proportionate 153.7 share of the costs of a judgment against an intermediate school 153.8 district that became final under section 123B.25 after the date 153.9 that the earliest member school district certified its proposed 153.10 levy in the previous year. With the approval of the 153.11 commissioner, an intermediate school district member school 153.12 district may spread this levy over a period not to exceed three 153.13 years. 153.14 [EFFECTIVE DATE.] This section is effective for taxes 153.15 payable in 2004. 153.16 Sec. 10. Minnesota Statutes 2002, section 126C.45, is 153.17 amended to read: 153.18 126C.45 [ICE ARENA LEVY.] 153.19 (a) Each year, an independent school district operating and 153.20 maintaining an ice arena, may levy for the net operational costs 153.21 of the ice arena. The levy may not exceed 90 percent of the net 153.22 actual costs of operation of the arena for the previous year. 153.23 Net actual costs are defined as operating costs less any 153.24 operating revenues. 153.25 (b) Any district operating and maintaining an ice arena 153.26 must demonstrate to the satisfaction of the office of monitoring 153.27 in the department that the district will offer equal sports 153.28 opportunities for male and female students to use its ice arena, 153.29 particularly in areas of access to prime practice time, team 153.30 support, and providing junior varsity and younger level teams 153.31 for girls' ice sports and ice sports offerings. 153.32 [EFFECTIVE DATE.] This section is effective for taxes 153.33 payable in 2004. 153.34 Sec. 11. Minnesota Statutes 2002, section 126C.48, 153.35 subdivision 3, is amended to read: 153.36 Subd. 3. [ADJUSTMENTS.] If any district levy is found to 154.1 be excessive as a result of a decision of the tax court or a 154.2 redetermination by the commissioner of revenue under section 154.3 127A.48, subdivisions 7 to 16, or for any other reason, the 154.4 amount of the excess shall be deducted from the levy certified 154.5 in the next year for the same purpose. If no levy is certified 154.6 in the next year for the same purpose or if the amount certified 154.7 is less than the amount of the excess, the excess must be 154.8 deducted from that levy and the general fund levy certified 154.9 pursuant tosection 126C.13, subdivision 2chapters 122A, 123A, 154.10 123B, 124D, and 126C. If the amount of any aid would have been 154.11 increased in a prior year as a result of a decision of the tax 154.12 court or a redetermination by the commissioner of revenue, the 154.13 amount of the increase shall be added to the amount of current 154.14 aid for the same purposes. 154.15 Sec. 12. Minnesota Statutes 2002, section 127A.45, 154.16 subdivision 2, is amended to read: 154.17 Subd. 2. [DEFINITIONS.] (a) The term "other district 154.18 receipts" means payments by county treasurers pursuant to 154.19 section 276.10, apportionments from the school endowment fund 154.20 pursuant to section 127A.33, apportionments by the county 154.21 auditor pursuant to section 127A.34, subdivision 2, and payments 154.22 to school districts by the commissioner of revenue pursuant to 154.23 chapter 298. 154.24 (b) The term "cumulative amount guaranteed" means the 154.25 product of 154.26 (1) the cumulative disbursement percentage shown in 154.27 subdivision 3; times 154.28 (2) the sum of 154.29 (i)8377 percent of the estimated aid and credit 154.30 entitlements paid according to subdivision 13; plus 154.31 (ii) 100 percent of the entitlements paid according to 154.32 subdivisions 11 and 12; plus 154.33 (iii) the other district receipts. 154.34 (c) The term "payment date" means the date on which state 154.35 payments to districts are made by the electronic funds transfer 154.36 method. If a payment date falls on a Saturday, a Sunday, or a 155.1 weekday which is a legal holiday, the payment shall be made on 155.2 the immediately preceding business day. The commissioner may 155.3 make payments on dates other than those listed in subdivision 3, 155.4 but only for portions of payments from any preceding payment 155.5 dates which could not be processed by the electronic funds 155.6 transfer method due to documented extenuating circumstances. 155.7 Sec. 13. Minnesota Statutes 2002, section 127A.45, 155.8 subdivision 3, is amended to read: 155.9 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] (a)For fiscal155.10year 2003, the commissioner shall pay to a district on the dates155.11indicated an amount computed as follows: the cumulative amount155.12guaranteed minus the sum of (a) the district's other district155.13receipts through the current payment, and (b) the aid and credit155.14payments through the immediately preceding payment. For155.15purposes of this computation, the payment dates and the155.16cumulative disbursement percentages are as follows:155.17Payment datePercentage155.18Payment 1July 15:5.1155.19Payment 2July 30:7.7155.20Payment 3August 15:16.9155.21Payment 4August 30:19.3155.22Payment 5September 15:21.8155.23Payment 6September 30:24.3155.24Payment 7October 15:26.3155.25Payment 8October 30:28.3155.26Payment 9November 15:32.8155.27Payment 10November 30:39.1155.28Payment 11December 15:42.4155.29Payment 12December 30:45.6155.30Payment 13January 15:50.5155.31Payment 14January 30:55.0155.32Payment 15February 15:60.2155.33Payment 16February 28:65.0155.34Payment 17March 15:69.7155.35Payment 18March 30:74.3155.36Payment 19April 15:78.3156.1Payment 20April 30:84.2156.2Payment 21May 15:88.7156.3Payment 22May 30:93.3156.4Payment 23June 20:100.0156.5(b) In addition to the amounts paid under paragraph (a),156.6for fiscal year 2003, the commissioner shall pay to a district156.7on the dates indicated an amount computed as follows:156.8Payment 3August 15: the final adjustment for the156.9prior fiscal year for the state paid156.10property tax credits established in156.11section 273.1392156.12Payment 7October 15: one-half of the final adjustment156.13for the prior fiscal year for all aid156.14entitlements except state paid property156.15tax credits156.16Payment 8October 30: one-half of the final adjustment156.17for the prior fiscal year for all aid156.18entitlements except state paid property156.19tax credits156.20(c)For fiscal year 2004 and later, the commissioner shall 156.21 pay to a district on the dates indicated an amount computed as 156.22 follows: the cumulative amount guaranteed minus the sum of (a) 156.23 the district's other district receipts through the current 156.24 payment, and (b) the aid and credit payments through the 156.25 immediately preceding payment. For purposes of this 156.26 computation, the payment dates and the cumulative disbursement 156.27 percentages are as follows: 156.28 Payment date Percentage 156.29 Payment 1 July 15:5.15.5 156.30 Payment 2 July 30:7.78.0 156.31 Payment 3 August 15:16.917.5 156.32 Payment 4 August 30:19.320.0 156.33 Payment 5 September 15:21.822.5 156.34 Payment 6 September 30:24.325.0 156.35 Payment 7 October 15:26.327.0 156.36 Payment 8 October 30:28.330.0 157.1 Payment 9 November 15:30.332.5 157.2 Payment 10 November 30:35.036.5 157.3 Payment 11 December 15:40.042.0 157.4 Payment 12 December 30:43.045.0 157.5 Payment 13 January 15:48.050.0 157.6 Payment 14 January 30:52.054.0 157.7 Payment 15 February 15:56.058.0 157.8 Payment 16 February 28:61.063.0 157.9 Payment 17 March 15:66.068.0 157.10 Payment 18 March 30:72.074.0 157.11 Payment 19 April 15:76.078.0 157.12 Payment 20 April 30:83.085.0 157.13 Payment 21 May 15:88.090.0 157.14 Payment 22 May 30: 95.0 157.15 Payment 23 June 20: 100.0 157.16(d)(b) In addition to the amounts paid under paragraph 157.17(c)(a), for fiscal year 2004and later, the commissioner shall 157.18 pay to a district on the dates indicated an amount computed as 157.19 follows: 157.20 Payment 3 August 15: the final adjustment for the 157.21 prior fiscal year for the state paid 157.22 property tax credits established in 157.23 section 273.1392 157.24 Payment 4 August 30: one-third of the final adjustment 157.25 for the prior fiscal year for all aid 157.26 entitlements except state paid property 157.27 tax credits 157.28 Payment 6 September 30: one-third of the final adjustment 157.29 for the prior fiscal year for all aid 157.30 entitlements except state paid property 157.31 tax credits 157.32 Payment 8 October 30: one-third of the final adjustment 157.33 for the prior fiscal year for all aid 157.34 entitlements except state paid property 157.35 tax credits 157.36 (c) In addition to the amounts paid under paragraph (a), 158.1 for fiscal year 2005 and later, the commissioner shall pay to a 158.2 district on the dates indicated an amount computed as follows: 158.3 Payment 3 August 15: the final adjustment for the 158.4 prior fiscal year for the state paid 158.5 property tax credits established in 158.6 section 273.1392 158.7 Payment 4 August 30: 30 percent of the final adjustment 158.8 for the prior fiscal year for all aid 158.9 entitlements except state paid property 158.10 tax credits 158.11 Payment 6 September 30: 40 percent of the final adjustment 158.12 for the prior fiscal year for all aid 158.13 entitlements except state paid property 158.14 tax credits 158.15 Payment 8 October 30: 30 percent of the final adjustment 158.16 for the prior fiscal year for all aid 158.17 entitlements except state paid property 158.18 tax credits 158.19 Sec. 14. Minnesota Statutes 2002, section 127A.45, 158.20 subdivision 7a, is amended to read: 158.21 Subd. 7a. [ADVANCE FINAL PAYMENT.] (a) Notwithstanding 158.22 subdivisions 3 and 7, a school district or a charter school 158.23 exceeding its expenditure limitations under section 123B.83 as 158.24 of June 30 of the prior fiscal year may receive a portion of its 158.25 final payment for the current fiscal year on June 20, if 158.26 requested by the district. The amount paid under this 158.27 subdivision must not exceed the lesser of: 158.28 (1) seven percent of the district or charter school's 158.29 general education aid for the current fiscal year; or 158.30 (2) the amount by which the district or charter school's 158.31 net negative unreserved general fund balance as of June 30 of 158.32 the prior fiscal year exceeds 2.5 percent of the district or 158.33 charter school's expenditures for that fiscal year. 158.34 (b) The state total advance final payment under this 158.35 subdivision for any year must not exceed$17,500,000$12,000,000. 158.36 If the amount requested exceeds$17,500,000$12,000,000, the 159.1 advance final payment for each eligible district must be reduced 159.2 proportionately. 159.3 Sec. 15. Minnesota Statutes 2002, section 127A.45, 159.4 subdivision 10, is amended to read: 159.5 Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 159.6 fiscal year state general fund payments for a district 159.7 nonoperating fund must be made at8377 percent of the estimated 159.8 entitlement during the fiscal year of the entitlement. This 159.9 amount shall be paid in 12 equal monthly installments. The 159.10 amount of the actual entitlement, after adjustment for actual 159.11 data, minus the payments made during the fiscal year of the 159.12 entitlement must be paid prior to October 31 of the following 159.13 school year. The commissioner may make advance payments of debt 159.14 service equalization aid or homestead and agricultural credit 159.15 aid for a district's debt service fund earlier than would occur 159.16 under the preceding schedule if the district submits evidence 159.17 showing a serious cash flow problem in the fund. The 159.18 commissioner may make earlier payments during the year and, if 159.19 necessary, increase the percent of the entitlement paid to 159.20 reduce the cash flow problem. 159.21 Sec. 16. Minnesota Statutes 2002, section 127A.45, 159.22 subdivision 13, is amended to read: 159.23 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 159.24 subdivisions 11, 12, 12a, and 14, each fiscal year, all 159.25 education aids and credits in this chapter and chapters 120A, 159.26 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 159.27 section 273.1392, shall be paid at8377 percent of the 159.28 estimated entitlement during the fiscal year of the 159.29 entitlement. For the purposes of this subdivision, a district's 159.30 estimated entitlement for special education excess cost aid 159.31 under section 125A.79 equals 70 percent of the district's 159.32 entitlement for the second prior fiscal year. The final 159.33 adjustment payment, according to subdivision 9, must be the 159.34 amount of the actual entitlement, after adjustment for actual 159.35 data, minus the payments made during the fiscal year of the 159.36 entitlement. 160.1 Sec. 17. Minnesota Statutes 2002, section 127A.45, 160.2 subdivision 14, is amended to read: 160.3 Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid 160.4 according to sections 123B.40 to 123B.48 for pupils attending 160.5 nonpublic schools as follows: 160.6 (1) an advance payment by November 30 equal to8377 160.7 percent of the estimated entitlement for the current fiscal 160.8 year; and 160.9 (2) a final payment by October 31 of the following fiscal 160.10 year, adjusted for actual data. 160.11 If a payment advance to meet cash flow needs is requested 160.12 by a district and approved by the commissioner, the state shall 160.13 pay nonpublic pupil transportation aid according to section 160.14 123B.92 by October 31. 160.15 Sec. 18. Minnesota Statutes 2002, section 127A.45, 160.16 subdivision 14a, is amended to read: 160.17 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 160.18 subdivision 3, the state shall pay 100 percent of the aid for 160.19 the current year according to sections 124D.111, 160.20124D.115,124D.1158, and 124D.118and 83 percent of the aid for160.21the current year according to section 124D.1156based on 160.22 submitted monthly vouchers showing meals and milk served.The160.23remaining 17 percent according to section 124D.1156 shall be160.24paid by October 30 of the following fiscal year.160.25 Sec. 19. Minnesota Statutes 2002, section 127A.45, 160.26 subdivision 16, is amended to read: 160.27 Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 160.28 subdivision 3,8377 percent of the amounts under section 160.29 123A.26, subdivision 3, shall be paid in equal installments on 160.30 August 30, December 30, and March 30, with a1723 percent final 160.31 adjustment payment on October 30 of the next fiscal year. 160.32 Sec. 20. Minnesota Statutes 2002, section 127A.47, 160.33 subdivision 7, is amended to read: 160.34 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 160.35 education aid for districts must be adjusted for each pupil 160.36 attending a nonresident district under sections 123A.05 to 161.1 123A.08, 124D.03, 124D.06,124D.07,124D.08, and 124D.68. The 161.2 adjustments must be made according to this subdivision. 161.3 (a) General education aid paid to a resident district must 161.4 be reduced by an amount equal to the referendum equalization aid 161.5 attributable to the pupil in the resident district. 161.6 (b) General education aid paid to a district serving a 161.7 pupil in programs listed in this subdivision must be increased 161.8 by an amount equal to the referendum equalization aid 161.9 attributable to the pupil in the nonresident district. 161.10 (c) If the amount of the reduction to be made from the 161.11 general education aid of the resident district is greater than 161.12 the amount of general education aid otherwise due the district, 161.13 the excess reduction must be made from other state aids due the 161.14 district. 161.15 (d) The district of residence must pay tuition to a 161.16 district or an area learning center, operated according to 161.17 paragraph (e), providing special instruction and services to a 161.18 pupil with a disability, as defined in section 125A.02, or a 161.19 pupil, as defined in section 125A.51, who is enrolled in a 161.20 program listed in this subdivision. The tuition must be equal 161.21 to (1) the actual cost of providing special instruction and 161.22 services to the pupil, including a proportionate amount for debt 161.23 service and for capital expenditure facilities and equipment, 161.24 and debt service but not including any amount for 161.25 transportation, minus (2) the amount of general education 161.26 revenue and special education aid but not including any amount 161.27 for transportation, attributable to that pupil, that is received 161.28 by the district providing special instruction and services. 161.29 (e) An area learning center operated by a service 161.30 cooperative, intermediate district, education district, or a 161.31 joint powers cooperative may elect through the action of the 161.32 constituent boards to charge the resident district tuition for 161.33 pupils rather than tocalculate general education aid161.34adjustments under paragraph (a), (b), or (c). The tuition must161.35be equal to the greater of the average general education revenue161.36per pupil unit attributable to the pupil, or the actual cost of162.1providing the instruction, excluding transportation costs, if162.2the pupil meets the requirements of section 125A.02 or162.3125A.51have the general education revenue paid to a fiscal 162.4 agent school district. Except as provided in paragraph (d), the 162.5 district of residence must pay tuition equal to at least 90 162.6 percent of the district average general education revenue per 162.7 pupil unit minus an amount equal to the product of the formula 162.8 allowance according to section 126C.10, subdivision 2, times 162.9 .0485, calculated without basic skills revenue and 162.10 transportation sparsity revenue, times the number of pupil units 162.11 for pupils attending the area learning center, plus the amount 162.12 of compensatory revenue generated by pupils attending the area 162.13 learning center. 162.14 Sec. 21. Minnesota Statutes 2002, section 127A.47, 162.15 subdivision 8, is amended to read: 162.16 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 162.17 for districts must be adjusted for each pupil attending a 162.18 charter school under section 124D.10. The adjustments must be 162.19 made according to this subdivision. 162.20 (b) General education aid paid to a district in which a 162.21 charter school not providing transportation according to section 162.22 124D.10, subdivision 16, is located must be increased by an 162.23 amount equal to the product of: (1) the sum of an amount equal 162.24 to the product of the formula allowance according to section 162.25 126C.10, subdivision 2, times .0485, plus the transportation 162.26 sparsity allowance for the district, plus the transportation162.27transition allowance for the district; times (2) the pupil units 162.28 attributable to the pupil. 162.29 Sec. 22. Minnesota Statutes 2002, section 127A.49, 162.30 subdivision 2, is amended to read: 162.31 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 162.32 sections 270.07, 375.192, or otherwise, the net tax capacity of 162.33 any district for any taxable year is changed after the taxes for 162.34 that year have been spread by the county auditor and the local 162.35 tax rate as determined by the county auditor based upon the 162.36 original net tax capacity is applied upon the changed net tax 163.1 capacities, the county auditor shall, prior to February 1 of 163.2 each year, certify to the commissioner ofchildren, families,163.3and learningeducation the amount of any resulting net revenue 163.4 loss that accrued to the district during the preceding year. 163.5 Each year, the commissioner shall pay an abatement adjustment to 163.6 the district in an amount calculated according to the provisions 163.7 of this subdivision. This amount shall be deducted from the 163.8 amount of the levy authorized by section 126C.46. The amount of 163.9 the abatement adjustment must be the product of: 163.10 (1) the net revenue loss as certified by the county 163.11 auditor, times 163.12 (2) the ratio of: 163.13 (i) the sum of the amounts of the district's certified levy 163.14 in the preceding year according to the following: 163.15 (A)section 126C.13 if the district received general163.16education aid according to that section for the second preceding163.17year;163.18(B)section 123B.57, if the district received health and 163.19 safety aid according to that section for the second preceding 163.20 year; 163.21(C) sections(B) section 124D.20,124D.21, and 124D.56,if 163.22 the district received aid for community education programs 163.23 according toany of those sectionsthat section for the second 163.24 preceding year; 163.25(D)(C) section 124D.135, subdivision 3, if the district 163.26 received early childhood family education aid according to 163.27 section 124D.135 for the second preceding year; and 163.28(E)(D) section 126C.17, subdivision 6, if the district 163.29 received referendum equalization aid according to that section 163.30 for the second preceding year; to 163.31 (ii) the total amount of the district's certified levy in 163.32 the preceding December, plus or minus auditor's adjustments. 163.33 Sec. 23. Minnesota Statutes 2002, section 127A.49, 163.34 subdivision 3, is amended to read: 163.35 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 163.36 tax increment is made to a district pursuant to section 469.176, 164.1 subdivision 2, or upon decertification of a tax increment 164.2 district, the school district's aid and levy limitations must be 164.3 adjusted for the fiscal year in which the excess tax increment 164.4 is paid under the provisions of this subdivision. 164.5 (b) An amount must be subtracted from the district's aid 164.6 for the current fiscal year equal to the product of: 164.7 (1) the amount of the payment of excess tax increment to 164.8 the district, times 164.9 (2) the ratio of: 164.10 (i) the sum of the amounts of the district's certified levy 164.11 for the fiscal year in which the excess tax increment is paid 164.12 according to the following: 164.13 (A)section 126C.13, if the district received general164.14education aid according to that section for the second preceding164.15year;164.16(B)section 123B.57, if the district received health and 164.17 safety aid according to that section for the second preceding 164.18 year; 164.19(C) sections(B) section 124D.20,124D.21, and 124D.56,if 164.20 the district received aid for community education programs 164.21 according toany of those sectionsthat section for the second 164.22 preceding year; 164.23(D)(C) section 124D.135, subdivision 3, if the district 164.24 received early childhood family education aid according to 164.25 section 124D.135 for the second preceding year; and 164.26(E)(D) section 126C.17, subdivision 6, if the district 164.27 received referendum equalization aid according to that section 164.28 for the second preceding year; to 164.29 (ii) the total amount of the district's certified levy for 164.30 the fiscal year, plus or minus auditor's adjustments. 164.31 (c) An amount must be subtracted from the school district's 164.32 levy limitation for the next levy certified equal to the 164.33 difference between: 164.34 (1) the amount of the distribution of excess increment; and 164.35 (2) the amount subtracted from aid pursuant to clause (a). 164.36 If the aid and levy reductions required by this subdivision 165.1 cannot be made to the aid for the fiscal year specified or to 165.2 the levy specified, the reductions must be made from aid for 165.3 subsequent fiscal years, and from subsequent levies. The school 165.4 district must use the payment of excess tax increment to replace 165.5 the aid and levy revenue reduced under this subdivision. 165.6 (d) This subdivision applies only to the total amount of 165.7 excess increments received by a district for a calendar year 165.8 that exceeds $25,000. 165.9 Sec. 24. Minnesota Statutes 2002, section 128D.11, 165.10 subdivision 8, is amended to read: 165.11 Subd. 8. [NET DEBT LIMIT.] The school district shall not 165.12 be subject to a net debt in excess of102144 percent of the net 165.13 tax capacity of all taxable property therein. 165.14 Sec. 25. Minnesota Statutes 2002, section 268.052, 165.15 subdivision 2, is amended to read: 165.16 Subd. 2. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 165.17 A TAXPAYING EMPLOYER.] (a) The state or political 165.18 subdivision excluding a school district may elect to be a 165.19 taxpaying employer for any calendar year if a notice of election 165.20 is filed within 30 calendar days following January 1 of that 165.21 calendar year. Upon election, the state or political 165.22 subdivision shall be assigned the new employer tax rate under 165.23 section 268.051, subdivision 5, for the calendar year of the 165.24 election and until it qualifies for an experience rating under 165.25 section 268.051, subdivision 3. 165.26 (b) An election shall be for a minimum period of two 165.27 calendar years following the effective date of the election and 165.28 continue unless a notice terminating the election is filed not 165.29 later than 30 calendar days before the beginning of the calendar 165.30 year. The termination shall be effective at the beginning of 165.31 the next calendar year. Upon election, the commissioner shall 165.32 establish a reimbursable account for the state or political 165.33 subdivision. A termination of election shall be allowed only if 165.34 the state or political subdivision has, since the beginning of 165.35 the experience rating period under section 268.051, subdivision 165.36 3, paid taxes and made voluntary payments under section 268.051, 166.1 subdivision 7, equal to or more than 125 percent of the 166.2 unemployment benefits used in computing the experience rating. 166.3 In addition, any unemployment benefits paid after the experience 166.4 rating period shall be transferred to the new reimbursable 166.5 account of the state or political subdivision. If the amount of 166.6 taxes and voluntary payments paid since the beginning of the 166.7 experience rating period exceeds 125 percent of the amount of 166.8 unemployment benefits paid during the experience rating period, 166.9 that amount in excess shall be applied against any unemployment 166.10 benefits paid after the experience rating period. 166.11 (c) The method of payments to the fund under subdivisions 3 166.12 and 4 shall apply to all taxes paid by or due from the state or 166.13 political subdivision that elects to be taxpaying employers 166.14 under this subdivision. 166.15 (d) The commissioner may allow a notice of election or a 166.16 notice terminating election to be filed by mail or electronic 166.17 transmission. 166.18 [EFFECTIVE DATE.] This section is effective the day 166.19 following final enactment. 166.20 Sec. 26. Minnesota Statutes 2002, section 268.052, 166.21 subdivision 4, is amended to read: 166.22 Subd. 4. [METHOD OF PAYMENT BY POLITICAL SUBDIVISION.] A 166.23 political subdivision or instrumentality thereof is authorized 166.24 and directed to pay its liabilities by money collected from 166.25 taxes or other revenues. Every political subdivision authorized 166.26 to levy taxes except school districts may include in its tax 166.27 levy the amount necessary to pay its liabilities. School 166.28 districts may levy according to section 126C.43, subdivision 2. 166.29 If the taxes authorized to be levied cause the total amount of 166.30 taxes levied to exceed any limitation upon the power of a 166.31 political subdivision to levy taxes, the political subdivision 166.32 may levy taxes in excess of the limitations in the amounts 166.33 necessary to meet its liability. The expenditures authorized 166.34 shall not be included in computing the cost of government as 166.35 defined in any home rule charter. The governing body of a 166.36 municipality, for the purpose of meeting its liabilities, in the 167.1 event of a deficit, may issue its obligations payable in not 167.2 more than two years, in an amount that may cause its 167.3 indebtedness to exceed any statutory or charter limitations, 167.4 without an election, and may levy taxes in the manner provided 167.5 in section 475.61. 167.6 [EFFECTIVE DATE.] This section is effective for taxes 167.7 payable in 2004. 167.8 Sec. 27. Minnesota Statutes 2002, section 273.138, 167.9 subdivision 6, is amended to read: 167.10 Subd. 6. The amount of aid calculated for a school 167.11 district pursuant to subdivision 3, clauses (2), (3), (4), and 167.12 (5) shall be deducted from the school district's general fund 167.13 levy limitation established pursuant tosection 126C.13chapters 167.14 122A, 123A, 123B, 124D, and 126C in determining the amount of 167.15 taxes the school district may levy for general and special 167.16 purposes. 167.17 Sec. 28. Minnesota Statutes 2002, section 298.28, 167.18 subdivision 4, is amended to read: 167.19 Subd. 4. [SCHOOL DISTRICTS.] (a) 17.15 cents per taxable 167.20 ton plus the increase provided in paragraph (d) must be 167.21 allocated to qualifying school districts to be distributed, 167.22 based upon the certification of the commissioner of revenue, 167.23 under paragraphs (b) and (c), except as otherwise provided in 167.24 paragraph (f). 167.25 (b) 3.43 cents per taxable ton must be distributed to the 167.26 school districts in which the lands from which taconite was 167.27 mined or quarried were located or within which the concentrate 167.28 was produced. The distribution must be based on the 167.29 apportionment formula prescribed in subdivision 2. 167.30 (c)(i) 13.72 cents per taxable ton, less any amount 167.31 distributed under paragraph (e), shall be distributed to a group 167.32 of school districts comprised of those school districts in which 167.33 the taconite was mined or quarried or the concentrate produced 167.34 or in which there is a qualifying municipality as defined by 167.35 section 273.134, paragraph (b), in direct proportion to school 167.36 district indexes as follows: for each school district, its 168.1 pupil units determined under section 126C.05 for the prior 168.2 school year shall be multiplied by the ratio of the average 168.3 adjusted net tax capacity per pupil unit for school districts 168.4 receiving aid under this clause as calculated pursuant to 168.5 chapters 122A, 126C, and 127A for the school year ending prior 168.6 to distribution to the adjusted net tax capacity per pupil unit 168.7 of the district. Each district shall receive that portion of 168.8 the distribution which its index bears to the sum of the indices 168.9 for all school districts that receive the distributions. 168.10 (ii) Notwithstanding clause (i), each school district that 168.11 receives a distribution under sections 298.018; 298.23 to 168.12 298.28, exclusive of any amount received under this clause; 168.13 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 168.14 imposing a tax on severed mineral values after reduction for any 168.15 portion distributed to cities and towns under section 126C.48, 168.16 subdivision 8, paragraph (5), that is less than the amount of 168.17 its levy reduction under section 126C.48, subdivision 8, for the 168.18 second year prior to the year of the distribution shall receive 168.19 a distribution equal to the difference; the amount necessary to 168.20 make this payment shall be derived from proportionate reductions 168.21 in the initial distribution to other school districts under 168.22 clause (i). 168.23 (d) Any school district described in paragraph (c) where a 168.24 levy increase pursuant to section 126C.17, subdivision 9, was 168.25 authorized by referendum for taxes payable in 2001, shall 168.26 receive a distribution from a fund that receives a distribution 168.27 in 1998 of 21.3 cents per ton. On July 15 of 1999, and each 168.28 year thereafter, the increase over the amount established for 168.29 the prior year shall be determined according to the increase in 168.30 the implicit price deflator as provided in section 298.24, 168.31 subdivision 1. Each district shall receive $175 times the pupil 168.32 units identified in section 126C.05, subdivision 1, enrolled in 168.33 the second previous year or the 1983-1984 school year, whichever 168.34 is greater, less the product of 1.8 percent times the district's 168.35 taxable net tax capacity in the second previous year. 168.36 If the total amount provided by paragraph (d) is 169.1 insufficient to make the payments herein required then the 169.2 entitlement of $175 per pupil unit shall be reduced uniformly so 169.3 as not to exceed the funds available. Any amounts received by a 169.4 qualifying school district in any fiscal year pursuant to 169.5 paragraph (d) shall not be applied to reduce general education 169.6 aid which the district receives pursuant to section 126C.13 or 169.7 the permissible levies of the district. Any amount remaining 169.8 after the payments provided in this paragraph shall be paid to 169.9 the commissioner of iron range resources and rehabilitation who 169.10 shall deposit the same in the taconite environmental protection 169.11 fund and the northeast Minnesota economic protection trust fund 169.12 as provided in subdivision 11. 169.13 Each district receiving money according to this paragraph 169.14 shall reserve the lesser of the amount received under this 169.15 paragraph or $25 times the number of pupil units served in the 169.16 district. It may use the money for early childhood programs or 169.17 for outcome-based learning programs that enhance the academic 169.18 quality of the district's curriculum. The outcome-based 169.19 learning programs must be approved by the commissioner of 169.20children, families, and learningeducation. 169.21 (e) There shall be distributed to any school district the 169.22 amount which the school district was entitled to receive under 169.23 section 298.32 in 1975. 169.24 (f) Effective for the distribution in 2003 only, five 169.25 percent of the distributions to school districts under 169.26 paragraphs (b), (c), and (e); subdivision 6, paragraph (c); 169.27 subdivision 11; and section 298.225, shall be distributed to the 169.28 general fund. The remainder less any portion distributed to 169.29 cities and towns under section 126C.48, subdivision 8, paragraph 169.30 (5), shall be distributed to the northeast Minnesota economic 169.31 protection trust fund created in section 298.292. Fifty percent 169.32 of the amount distributed to the northeast Minnesota economic 169.33 protection trust fund shall be made available for expenditure 169.34 under section 298.293 as governed by section 298.296. Effective 169.35 in 2003 only, 100 percent of the distributions to school 169.36 districts under section 477A.15 less any portion distributed to 170.1 cities and towns under section 126C.48, subdivision 8, paragraph 170.2 (5), shall be distributed to the general fund. 170.3 Sec. 29. Minnesota Statutes 2002, section 475.61, 170.4 subdivision 4, is amended to read: 170.5 Subd. 4. [SURPLUS FUNDS.] (a) All such taxes shall be 170.6 collected and remitted to the municipality by the county 170.7 treasurer as other taxes are collected and remitted, and shall 170.8 be used only for payment of the obligations on account of which 170.9 levied or to repay advances from other funds used for such 170.10 payments, except that any surplus remaining in the debt service 170.11 fund when the obligations and interest thereon are paid may be 170.12 appropriated to any other general purpose by the municipality. 170.13 However, the amount of any surplus remaining in the debt service 170.14 fund of a school district when the obligations and interest 170.15 thereon are paid shall be used to reduce the generaleducation170.16 fund levy authorized pursuant tosection 126C.13chapters 122A, 170.17 123A, 123B, 124D, and 126C and the state aids authorized 170.18 pursuant to chapters 122A, 123A, 123B, 124D, 125A, 126C, and 170.19 127A. 170.20 (b) The reduction to state aids equals the lesser of (1) 170.21 the amount of the surplus times the ratio of the district's debt 170.22 service equalization aid to the district's debt service 170.23 equalization revenue for the last year that the district 170.24 qualified for debt service equalization aid; or (2) the 170.25 district's cumulative amount of debt service equalization aid. 170.26 (c) The reduction to the generaleducationfund levy equals 170.27 the total amount of the surplus minus the reduction to state 170.28 aids. 170.29 Sec. 30. Laws 1965, chapter 705, as amended by Laws 1975, 170.30 chapter 261, section 4; Laws 1980, chapter 609, article 6, 170.31 section 37; and Laws 1989, chapter 329, article 13, section 18, 170.32 is amended to read: 170.33 Sec. 6. [ST. PAUL SEVERANCE LEVY.] The school board of 170.34 independent school district No. 625, St. Paul, for the purpose 170.35 of providing moneys for the payment of its severance pay 170.36 obligations under a plan approved by resolution of the district, 171.1 in addition to all other powers possessed by the school district 171.2 and in addition to and in excess of any existing limitation upon 171.3 the amount it is otherwise authorized by law to levy as taxes, 171.4 is authorized to levy taxes annually not exceeding in any one 171.5 year an amount equal toa gross tax capacity rate of .17 percent171.6for taxes payable in 1990 ora net tax capacity rate of.21.34 171.7 percent for taxes payable in19912002 and thereafter upon all 171.8 taxable property within the school district which taxes as 171.9 levied shall be spread upon the tax rolls, and all corrections 171.10 thereof shall be held by the school district, and allocated 171.11 therefor to be disbursed and expended by the school district in 171.12 payment of any public school severance pay obligations and for 171.13 no other purpose. Disbursements and expenditures previously 171.14 authorized on behalf of the school district for payment of 171.15 severance pay obligations shall not be deemed to constitute any 171.16 part of the cost of the operation and maintenance of the school 171.17 district within the meaning of any statutory limitation of any 171.18 school district expenditures. 171.19 The amount of such severance pay allowable or to become 171.20 payable in respect of any such employment or to any such 171.21 employee shall not exceed the amount permitted by Minnesota 171.22 Statutes, Section 465.72. 171.23 [EFFECTIVE DATE.] This section is effective retroactively 171.24 for taxes payable in 2002 and thereafter. 171.25 Sec. 31. [APPROPRIATIONS.] 171.26 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 171.27 indicated in this section are appropriated from the general fund 171.28 to the department of education for the fiscal years designated. 171.29 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 171.30 according to Minnesota Statutes, section 124D.111, and Code of 171.31 Federal Regulations, title 7, section 210.17: 171.32 $7,800,000 ..... 2004 171.33 $7,950,000 ..... 2005 171.34 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 171.35 MILK.] For traditional school breakfast aid and kindergarten 171.36 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 172.1 $3,088,000 ..... 2004 172.2 $3,217,000 ..... 2005 172.3 Subd. 4. [FAST BREAK TO LEARNING BREAKFAST.] For fast 172.4 break to learning breakfast under Minnesota Statutes, section 172.5 124D.1156: 172.6 $747,000 ..... 2004 172.7 The 2004 appropriation includes $747,000 for 2003 and $0 172.8 for 2004. 172.9 Subd. 5. [SUMMER SCHOOL SERVICE REPLACEMENT AID.] For 172.10 summer food service replacement aid under Minnesota Statutes, 172.11 section 124D.119: 172.12 $150,000 ..... 2004 172.13 $150,000 ..... 2005 172.14 Sec. 32. [REVISOR INSTRUCTION.] 172.15 In the next and subsequent editions of Minnesota Statutes, 172.16 the revisor shall codify section 30 as Minnesota Statutes, 172.17 section 126C.41, subdivision 5. 172.18 Sec. 33. [REPEALER.] 172.19 Minnesota Statutes 2002, sections 93.22, subdivision 2; 172.20 93.223, subdivision 1; 124D.115; 124D.1156; and 127A.41, 172.21 subdivision 6, are repealed. 172.22 ARTICLE 6 172.23 LIBRARIES 172.24 Section 1. Minnesota Statutes 2002, section 134.34, 172.25 subdivision 4, is amended to read: 172.26 Subd. 4. [LIMITATION.] A regional library basic system 172.27 support grant shall not be made to a regional public library 172.28 system for a participating city or county which decreases the 172.29 dollar amount provided for support for operating purposes of 172.30 public library service below 90 percent of the amount provided 172.31 by it for the second preceding year. This subdivision shall not 172.32 apply to participating cities or counties where the adjusted net 172.33 tax capacity of that city or county has decreased, if the dollar 172.34 amount of the reduction in support is not greater than the 172.35 dollar amount by which support would be decreased if the 172.36 reduction in support were made in direct proportion to the 173.1 decrease in adjusted net tax capacity. 173.2 [EFFECTIVE DATE.] This section is effective for grants 173.3 distributed in 2004 and 2005 only. 173.4 Sec. 2. [APPROPRIATIONS.] 173.5 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 173.6 indicated in this section are appropriated from the general fund 173.7 to the department of education for the fiscal years designated. 173.8 Subd. 2. [BASIC SUPPORT.] For basic support grants 173.9 according to Minnesota Statutes, sections 134.32 to 134.35: 173.10 $8,979,000 ..... 2004 173.11 $9,770,000 ..... 2005 173.12 The 2004 appropriation includes $1,456,000 for 2003 and 173.13 $7,523,000 for 2004. 173.14 The 2005 appropriation includes $2,247,000 for 2004 and 173.15 $7,523,000 for 2005. 173.16 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 173.17 grants according to Minnesota Statutes, sections 134.353 and 173.18 134.354, to multicounty, multitype library systems: 173.19 $849,000 ..... 2004 173.20 $903,000 ..... 2005 173.21 The 2004 appropriation includes $153,000 for 2003 and 173.22 $696,000 for 2004. 173.23 The 2005 appropriation includes $207,000 for 2004 and 173.24 $696,000 for 2005. 173.25 Subd. 4. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 173.26 licenses to on-line databases selected in cooperation with the 173.27 higher education services office for school media centers, 173.28 public libraries, state government agency libraries, and public 173.29 or private college or university libraries: 173.30 $400,000 ..... 2004 173.31 $400,000 ..... 2005 173.32 Any balance in the first year does not cancel but is 173.33 available in the second year. 173.34 Sec. 3. [REPEALER.] 173.35 The changes made to Minnesota Statutes, section 134.34, 173.36 subdivision 4, in section 1 are repealed July 1, 2005. 174.1 ARTICLE 7 174.2 EARLY CHILDHOOD FAMILY SUPPORT 174.3 Section 1. Minnesota Statutes 2002, section 119A.52, is 174.4 amended to read: 174.5 119A.52 [DISTRIBUTION OF APPROPRIATION AND PROGRAM 174.6 COORDINATION.] 174.7 Subdivision 1. [DISTRIBUTION OF APPROPRIATION; WORK PLAN.] 174.8(a)The commissioner ofchildren, families, and learning174.9 education must distribute money appropriated for that purpose to 174.10 Head Start program grantees to expand services and to serve 174.11 additional low-income children. Money must be allocated to each 174.12 project Head Start grantee in existence on the effective date of 174.13 Laws 1989, chapter 282. Migrant and Indian reservation grantees 174.14 must be initially allocated money based on the grantees' share 174.15 of federal funds. The remaining money must be initially 174.16 allocated to the remaining local agencies based equally on the 174.17 agencies' share of federal funds and on the proportion of 174.18 eligible children in the agencies' service area who are not 174.19 currently being served. A Head Start grantee must be funded at 174.20 a per child rate equal to its contracted, federally funded base 174.21 level for program accounts 20, 22, and 25 at the start of the 174.22 fiscal year. In allocating funds under this paragraph, the 174.23 commissioner ofchildren, families, and learningeducation must 174.24 assure that each Head Start grantee is allocated no less funding 174.25 in any fiscal year than was allocated to that grantee in fiscal 174.26 year 1993. The commissioner may provide additional funding to 174.27 grantees for start-up costs incurred by grantees due to the 174.28 increased number of children to be served. Before paying money 174.29 to the grantees, the commissioner must notify each grantee of 174.30 its initial allocation, how the money must be used, and the 174.31 number of low-income children that must be served with the 174.32 allocation. Each grantee mustnotifypresent a work plan to the 174.33 commissioneroffor approval. The work plan must include the 174.34 estimated number of low-income children and families it will be 174.35 able to serve, a description of the program design and service 174.36 delivery area which meets the needs of and encourages access by 175.1 low-income working families, a program design that ensures fair 175.2 and equitable access to Head Start services for all populations 175.3 and parts of the service area, and a plan for coordinating 175.4 services to maximize assistance for child care costs available 175.5 to families under chapter 119B. For any grantee that cannot 175.6 utilize its full allocation, the commissioner must reduce the 175.7 allocation proportionately. Money available after the initial 175.8 allocations are reduced must be redistributed to eligible 175.9 grantees. 175.10(b) Up to 11 percent of the funds appropriated annually may175.11be used to provide grants to local Head Start agencies to175.12provide funds for innovative programs designed either to target175.13Head Start resources to particular at-risk groups of children or175.14to provide services in addition to those currently allowable175.15under federal Head Start regulations. The commissioner must175.16award funds for innovative programs under this paragraph on a175.17competitive basis.175.18 Subd. 2. [PROGRAM COORDINATION.] Each Head Start grantee 175.19 must submit a plan, as part of the work plan requirement in 175.20 subdivision 1, to coordinate and maximize use of existing public 175.21 and private community resources and reduce duplication of 175.22 services. 175.23 Sec. 2. Minnesota Statutes 2002, section 124D.13, 175.24 subdivision 2, is amended to read: 175.25 Subd. 2. [PROGRAM CHARACTERISTICS.] Early childhood family 175.26 education programs are programs for children in the period of 175.27 life from birth to kindergarten, for the parents of such 175.28 children, and for expectant parents.TheTo the extent that 175.29 funds are insufficient to provide programs for all children, 175.30 early childhood family education programs should emphasize 175.31 programming for a child from birth to age three and encourage 175.32 parents to involve four- and five-year-old children in school 175.33 readiness programs, and other public and nonpublic early 175.34 learning programs. Early childhood family education programs 175.35 may include the following: 175.36 (1) programs to educate parents about the physical, mental, 176.1 and emotional development of children; 176.2 (2) programs to enhance the skills of parents in providing 176.3 for their children's learning and development; 176.4 (3) learning experiences for children and parents that 176.5 promote children's development; 176.6 (4) activities designed to detect children's physical, 176.7 mental, emotional, or behavioral problems that may cause 176.8 learning problems; 176.9 (5) activities and materials designed to encourage 176.10 self-esteem, skills, and behavior that prevent sexual and other 176.11 interpersonal violence; 176.12 (6) educational materials which may be borrowed for home 176.13 use; 176.14 (7) information on related community resources; 176.15 (8) programs to prevent child abuse and neglect; 176.16 (9) other programs or activities to improve the health, 176.17 development, and school readiness of children; or 176.18 (10) activities designed to maximize development during 176.19 infancy. 176.20 The programs must not include activities for children that 176.21 do not require substantial involvement of the children's 176.22 parents. The programs must be reviewed periodically to assure 176.23 the instruction and materials are not racially, culturally, or 176.24 sexually biased. The programs must encourage parents to be 176.25 aware of practices that may affect equitable development of 176.26 children. 176.27 Sec. 3. Minnesota Statutes 2002, section 124D.13, 176.28 subdivision 4, is amended to read: 176.29 Subd. 4. [HOME VISITING PROGRAM.](a) The commissionerA 176.30 district that levies for home visiting under section 124D.135, 176.31 subdivision 6, shall use this revenue to include as part of the 176.32 early childhood family education programs a parent education 176.33 componentto prevent child abuse and neglect. This parent176.34education component must include:176.35(1) expanding statewide the home visiting component of the176.36early childhood family education programs;177.1(2) training parent educators, child educators, community177.2outreach workers, and home visitors in the dynamics of child177.3abuse and neglect and positive parenting and discipline177.4practices; and177.5(3) developing and disseminating education and public177.6information materials that promote positive parenting skills and177.7prevent child abuse and neglect.177.8(b) The parent education component must:177.9(1) offer to isolated or at-risk families home visiting177.10parent education services that at least address parenting177.11skills, a child's development and stages of growth,177.12communication skills, managing stress, problem-solving skills,177.13positive child discipline practices, methods of improving177.14parent-child interactions and enhancing self-esteem, using177.15community support services and other resources, and encouraging177.16parents to have fun with and enjoy their children;177.17(2) develop athat is designed to reach isolated or at-risk 177.18 families. 177.19 The home visiting program must use: 177.20 (1) an established risk assessment tool to determine the 177.21 family's level of risk; 177.22(3)(2) establish clear objectives and protocols for home 177.23 visits; 177.24(4) determine the frequency and duration of home visits177.25based on a risk-need assessment of the client, with home visits177.26beginning in the second trimester of pregnancy and continuing,177.27based on client need, until a child is six years old;177.28(5)(3) encourage families to make a transition from home 177.29 visits to site-based parenting programsto build a family177.30support network and reduce the effects of isolation; 177.31(6) develop and distribute education materials on177.32preventing child abuse and neglect that may be used in home177.33visiting programs and parent education classes and distributed177.34to the public;177.35(7) initially provide at least 40 hours of training and177.36thereafter ongoing training for parent educators, child178.1educators, community outreach workers, and home visitors that178.2covers the dynamics of child abuse and neglect, domestic178.3violence and victimization within family systems, signs of abuse178.4or other indications that a child may be at risk of being abused178.5or neglected, what child abuse and neglect are, how to properly178.6report cases of child abuse and neglect, respect for cultural178.7preferences in child rearing, what community resources, social178.8service agencies, and family support activities and programs are178.9available, child development and growth, parenting skills,178.10positive child discipline practices, identifying stress factors178.11and techniques for reducing stress, home visiting techniques,178.12and risk assessment measures;178.13(8)(4) provide program services that are community-based, 178.14 accessible, and culturally relevant; and 178.15(9)(5) foster collaboration among existing agencies and 178.16 community-based organizations that serve young children and 178.17 their families. 178.18(c)Home visitors should reflect the demographic 178.19 composition of the communitythe home visitor is servingto the 178.20 extent possible. 178.21 Sec. 4. Minnesota Statutes 2002, section 124D.13, 178.22 subdivision 8, is amended to read: 178.23 Subd. 8. [COORDINATION.] (a) A districtis encouraged to178.24coordinate the program with its special education and vocational178.25education programs and with related services provided by other178.26governmental agencies and nonprofit agencies.must describe 178.27 strategies to coordinate and maximize public and private 178.28 community resources and reduce duplication of services. 178.29 (b) A district is encouraged to coordinate adult basic 178.30 education programs provided to parents and early childhood 178.31 family education programs provided to children to accomplish the 178.32 goals of section 124D.895. 178.33 Sec. 5. Minnesota Statutes 2002, section 124D.13, 178.34 subdivision 11, is amended to read: 178.35 Subd. 11. [TEACHERS.] A school board must employnecessary178.36 qualified teachers or professionals licensed in a field related 179.1 to health, child development or parent education supervised by a 179.2 licensed teacher for its early childhood family education 179.3 programs. 179.4 Sec. 6. Minnesota Statutes 2002, section 124D.135, 179.5 subdivision 1, is amended to read: 179.6 Subdivision 1. [REVENUE.] The revenue for early childhood 179.7 family education programs for a school district equals$113.50179.8for fiscal years 2000 and 2001 and$120for 2002 and later179.9fiscal yearsfor fiscal years 2003 and 2004 and $105 for fiscal 179.10 year 2005 and later, times the greater of: 179.11 (1) 150; or 179.12 (2) the number of people under five years of age residing 179.13 in the district on October 1 of the previous school year. 179.14 Sec. 7. Minnesota Statutes 2002, section 124D.135, 179.15 subdivision 8, is amended to read: 179.16 Subd. 8. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 179.17 the average balance, during the most recent three-year period in 179.18 a district's early childhood family education reserve account on 179.19 June 30 of each year, adjusted for any prior reductions under 179.20 this subdivision, must not be greater than 25 percent of the sum 179.21 of the district's maximum early childhood family education 179.22 annual revenue under subdivision 1, excluding adjustments under 179.23 this subdivision, plus any fees, grants, or other revenue 179.24 received by the district for early childhood family education 179.25 programs for the prior year. 179.26 (b) If a district's adjusted average early childhood family 179.27 education reserve over the three-year period is in excess of25179.28percent of the prior year annual revenuethe limit under 179.29 paragraph (a), the district's early childhood family education 179.30 state aid and levy authority for the current school year must be 179.31 reduced by the lesser of the current year revenue under 179.32 subdivision 1 or the excess reserve amount. The aid reduction 179.33 equals the product of the lesser of the excess reserve amount or 179.34 the current year revenue under subdivision 1 times the ratio of 179.35 the district's aid for thepriorcurrent year under subdivision 179.36 4 to the district's revenue for thepriorcurrent year under 180.1 subdivision 1. The levy reduction equals the excess reserve 180.2 amount minus the aid reduction.The commissioner must180.3reallocate aid and levy reduced under this subdivision to other180.4eligible early childhood family education programs in proportion180.5to each district's revenue for the prior year under subdivision180.61.For purposes of this paragraph, if a district does not levy 180.7 the entire amount permitted under subdivision 3, the revenue 180.8 under subdivision 1 must be reduced in proportion to the actual 180.9 amount levied. 180.10(b)(c) Notwithstanding paragraph (a), for fiscal year 180.11 2003, the excess reserve amount shall be computed using the 180.12 balance in a district's early childhood family education reserve 180.13 account on June 30, 2002. For fiscal year 2004, the excess 180.14 reserve amount shall be computed using the adjusted average 180.15 balance in a district's early childhood family education reserve 180.16 account on June 30, 2002, and June 30, 2003. 180.17 [EFFECTIVE DATE.] This section is effective for revenue for 180.18 fiscal year 2003. 180.19 Sec. 8. Minnesota Statutes 2002, section 124D.15, 180.20 subdivision 7, is amended to read: 180.21 Subd. 7. [ADVISORY COUNCIL.] Each school readiness program 180.22 must have an advisory council composed of members of existing 180.23 early education-related boards, parents of participating 180.24 children, child care providers, culturally specific service 180.25 organizations, local resource and referral agencies, local early 180.26 intervention committees, and representatives of early childhood 180.27 service providers. The council must advise the board in 180.28 creating and administering the program and must monitor the 180.29 progress of the program. The council must ensure that children 180.30 at greatest risk receive appropriate services. If the board is 180.31 unable to appoint to the advisory council members of existing 180.32 early education-related boards, it must appoint parents of 180.33 children enrolled in the program who represent the racial, 180.34 cultural, and economic diversity of the district and 180.35 representatives of early childhood service providers as 180.36 representatives to an existing advisory council. 181.1 Sec. 9. Minnesota Statutes 2002, section 124D.16, 181.2 subdivision 1, is amended to read: 181.3 Subdivision 1. [PROGRAM REVIEW AND APPROVAL.] A school 181.4 district shall biennially by May 1 submit to the commissioners 181.5 ofchildren, families, and learningeducation and health the 181.6 program plan required under this subdivision. As determined by 181.7 the commissioners, one-half of the districts shall first submit 181.8 the plan by May 1 of the 2000-2001 school year and one-half of 181.9 the districts shall first submit the plan by May 1 of the 181.10 2001-2002 school year. The program plan must include: 181.11 (1) a description of the services to be provided; 181.12 (2) a plan to ensure children at greatest risk receive 181.13 appropriate services; 181.14 (3) a description ofprocedures and methods to be used181.15 strategies to coordinate and maximize public and private 181.16 community resourcesto maximize use of existing community181.17resources, including school districts, health care facilities,181.18government agencies, neighborhood organizations, and other181.19resources knowledgeable in early childhood developmentand 181.20 reduce duplication of services; 181.21 (4) comments about the district's proposed program by the 181.22 advisory council required by section 124D.15, subdivision 7; and 181.23 (5) agreements with all participating service providers. 181.24 Each commissioner may review and comment on the program, 181.25 and make recommendations to the commissioner ofchildren,181.26families, and learningeducation, within3090 days of receiving 181.27 the plan. 181.28 Sec. 10. Minnesota Statutes 2002, section 124D.16, 181.29 subdivision 6, is amended to read: 181.30 Subd. 6. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 181.31 the average balance, during the most recent three-year period, 181.32 in a district's school readiness reserve account on June 30 of 181.33 each year, adjusted for any prior reductions under this 181.34 subdivision, must not be greater than 25 percent of the 181.35 district's school readiness annual revenue for the prior year, 181.36 excluding adjustments under this subdivision. 182.1 (b) If a district's adjusted average school readiness 182.2 reserve over the three-year period is in excess of25 percent of182.3the prior year annual revenuethe limit under paragraph (a), the 182.4 district's current year school readiness state aid must be 182.5 reduced by the lesser of the excess reserve amount or the 182.6 current year aid.The commissioner must reallocate aid reduced182.7under this subdivision to other eligible school readiness182.8programs in proportion to each district's aid for the prior year182.9under subdivision 2.182.10(b)(c) Notwithstanding paragraph (a), for fiscal year 182.11 2003, the excess reserve amount shall be computed using the 182.12 balance in a district's school readiness reserve account on June 182.13 30, 2002. For fiscal year 2004, the excess reserve amount shall 182.14 be computed using the adjusted average balance in a district's 182.15 school readiness reserve account on June 30, 2002, and June 30, 182.16 2003. 182.17 [EFFECTIVE DATE.] This section is effective for revenue for 182.18 fiscal year 2003. 182.19 Sec. 11. [STUDY ON EFFECTIVELY SERVING LOW-INCOME 182.20 CHILDREN.] 182.21 The commissioner of education, in order to effectively 182.22 serve low-income children between the ages of three and five, 182.23 must study how to redistribute to various qualifying early 182.24 childhood program providers the state funds currently 182.25 appropriated to Head Start grantees. The commissioner must 182.26 determine the eligibility criteria and the parameters of service 182.27 delivery costs for awarding grants to early childhood program 182.28 providers throughout the state, including Head Start grantees. 182.29 The commissioner must expect eligible program providers to 182.30 demonstrate relevant experience serving low-income children in 182.31 unserved and underserved areas and a strong learning component 182.32 in their program. The commissioner, by February 15, 2004, must 182.33 present study findings and recommendations in writing to the 182.34 committees of the legislature having jurisdiction over early 182.35 childhood through grade 12 education policy and finance. 182.36 [EFFECTIVE DATE.] This section is effective the day 183.1 following final enactment. 183.2 Sec. 12. [APPROPRIATIONS.] 183.3 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 183.4 indicated in this section are appropriated from the general fund 183.5 to the department of education for the fiscal years designated. 183.6 Subd. 2. [SCHOOL READINESS.] For revenue for school 183.7 readiness programs under Minnesota Statutes, sections 124D.15 183.8 and 124D.16: 183.9 $ 9,239,000 ..... 2004 183.10 $ 9,283,000 ..... 2005 183.11 The 2004 appropriation includes $1,605,000 for 2003 and 183.12 $7,634,000 for 2004. 183.13 The 2005 appropriation includes $2,279,000 for 2004 and 183.14 $7,004,000 for 2005. 183.15 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 183.16 childhood family education aid under Minnesota Statutes, section 183.17 124D.135: 183.18 $19,059,000 ..... 2004 183.19 $17,862,000 ..... 2005 183.20 The 2004 appropriation includes $3,239,000 for 2003 and 183.21 $15,820,000 for 2004. 183.22 The 2005 appropriation includes $4,725,000 for 2004 and 183.23 $13,137,000 for 2005. 183.24 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 183.25 health and developmental screening aid under Minnesota Statutes, 183.26 sections 121A.17 and 121A.19: 183.27 $2,501,000 ..... 2004 183.28 $2,661,000 ..... 2005 183.29 The 2004 appropriation includes $452,000 for 2003 and 183.30 $2,049,000 for 2004. 183.31 The 2005 appropriation includes $612,000 for 2004 and 183.32 $2,049,000 for 2005. 183.33 Subd. 5. [HEAD START PROGRAM.] For Head Start programs 183.34 under Minnesota Statutes, section 119A.52: 183.35 $16,475,000 ..... 2004 183.36 $12,000,000 ..... 2005 184.1 Sec. 13. [REPEALER.] 184.2 Minnesota Statutes 2002, section 124D.17, is repealed. 184.3 ARTICLE 8 184.4 PREVENTION 184.5 Section 1. Minnesota Statutes 2002, section 124D.19, 184.6 subdivision 3, is amended to read: 184.7 Subd. 3. [COMMUNITY EDUCATION DIRECTOR.] (a) Except as 184.8 provided under paragraphs (b) and (c), each board shall employ a 184.9 licensed community education director. The board shall submit 184.10 the name of the person who is serving as director of community 184.11 education under this section on the district's annual community 184.12 education report to the commissioner. 184.13 (b) A board may apply to thecommissionerMinnesota board 184.14 of school administrators under Minnesota Rules, part 3512.3500, 184.15 subpart 9, for authority to use an individual who is not 184.16 licensed as a community education director. 184.17 (c) A board of a district with a total population of 2,000 184.18 or less may identify an employee who holds a valid Minnesota 184.19 principal or superintendent license under Minnesota Rules, 184.20 chapter 3512, to serve as director of community education. To 184.21 be eligible for an exception under this paragraph, the board 184.22 shall certify in writing to the commissioner that the district 184.23 has not placed a licensed director of community education on 184.24 unrequested leave. 184.25 Sec. 2. Minnesota Statutes 2002, section 124D.20, 184.26 subdivision 3, is amended to read: 184.27 Subd. 3. [GENERAL COMMUNITY EDUCATION REVENUE.] The 184.28 general community education revenue for a district equals 184.29 $5.95 for fiscal year 2003 and 2004 and $5.23 for fiscal year 184.30 2005 and later, times the greater of 1,335 or the population of 184.31 the district. The population of the district is determined 184.32 according to section 275.14. 184.33 [EFFECTIVE DATE.] This section is effective for revenue for 184.34 fiscal year 2005. 184.35 Sec. 3. Minnesota Statutes 2002, section 124D.20, 184.36 subdivision 5, is amended to read: 185.1 Subd. 5. [TOTAL COMMUNITY EDUCATION LEVY.] To obtain total 185.2 community education revenue, a districtoperating a youth185.3after-school enrichment program under section 124D.19,185.4subdivision 12,may levy the amount raised by a maximum tax rate 185.5 of.7431.985 percent times the adjusted net tax capacity of the 185.6 district.To obtain total community education revenue, a185.7district not operating a youth after-school enrichment program185.8may levy the amount raised by a maximum tax rate of .4795185.9percent times the adjusted net tax capacity of the district.If 185.10 the amount of the total community education levy would exceed 185.11 the total community education revenue, the total community 185.12 education levy shall be determined according to subdivision 6. 185.13 [EFFECTIVE DATE.] This section is effective for revenue for 185.14 fiscal year 2005. 185.15 Sec. 4. Minnesota Statutes 2002, section 124D.20, is 185.16 amended by adding a subdivision to read: 185.17 Subd. 11. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 185.18 the sum of the average balances during the most recent 185.19 three-year period in a district's community education reserve 185.20 account and unreserved/undesignated community service fund 185.21 account on June 30 of each year, adjusted for any prior 185.22 reductions under this subdivision, must not be greater than 25 185.23 percent of the sum of the district's maximum total community 185.24 education revenue under subdivision 1, excluding adjustments 185.25 under this subdivision, plus the district's additional community 185.26 education levy under section 124D.21, plus any fees, grants, or 185.27 other revenue received by the district for community education 185.28 programs for the prior year. For purposes of this paragraph, 185.29 "community education programs" means programs according to 185.30 subdivisions 8, paragraph (a), and 9, and section 124D.19, 185.31 subdivision 12, excluding early childhood family education 185.32 programs under section 124D.13, school readiness programs under 185.33 sections 124D.15 and 124D.17, and adult basic education programs 185.34 under section 124D.52. 185.35 (b) If the sum of the average balances during the most 185.36 recent three-year period in a district's community education 186.1 reserve account and unreserved/undesignated community service 186.2 fund account on June 30 of each year, adjusted for any prior 186.3 reductions under this subdivision, is in excess of the limit 186.4 under paragraph (a), the district's community education state 186.5 aid and levy authority for the current school year must be 186.6 reduced by the lesser of the current year revenue under 186.7 subdivision 1 or the excess reserve amount. The aid reduction 186.8 equals the product of the lesser of the excess reserve amount or 186.9 the current year revenue under subdivision 1 times the ratio of 186.10 the district's aid for the current year under subdivision 7 to 186.11 the district's revenue for the current year under subdivision 186.12 1. The levy reduction equals the excess reserve amount minus 186.13 the aid reduction. For purposes of this paragraph, if a 186.14 district does not levy the entire amount permitted under 186.15 subdivision 5 or 6, the revenue under subdivision 1 must be 186.16 reduced in proportion to the actual amount levied. 186.17 (c) Notwithstanding paragraph (a), for fiscal year 2003, 186.18 the excess reserve amount shall be computed using the balances 186.19 in a district's community education reserve account and 186.20 unreserved/undesignated community service fund account on June 186.21 30, 2002. For fiscal year 2004, the excess reserve amount shall 186.22 be computed using the adjusted average balances in a district's 186.23 community education reserve account and unreserved/undesignated 186.24 community service fund account on June 30, 2002, and June 30, 186.25 2003. 186.26 [EFFECTIVE DATE.] This section is effective for revenue for 186.27 fiscal year 2003. 186.28 Sec. 5. Minnesota Statutes 2002, section 124D.20, is 186.29 amended by adding a subdivision to read: 186.30 Subd. 12. [WAIVER.] (a) If a district anticipates that the 186.31 reserve account may exceed the 25 percent limit established 186.32 under subdivision 11 because of extenuating circumstances, prior 186.33 approval to exceed the limit must be obtained in writing from 186.34 the commissioner. 186.35 (b) Notwithstanding paragraph (a), for fiscal year 2003, a 186.36 district may submit a waiver request within 30 days of the date 187.1 of final enactment. 187.2 [EFFECTIVE DATE.] This section is effective the day 187.3 following final enactment for revenue for fiscal year 2003. 187.4 Sec. 6. Minnesota Statutes 2002, section 124D.22, 187.5 subdivision 3, is amended to read: 187.6 Subd. 3. [SCHOOL-AGE CARE LEVY.] To obtain school-age care 187.7 revenue, a school district may levy an amount equal to the 187.8 district's school-age care revenue as defined in subdivision 2 187.9 multiplied by the lesser of one, or the ratio of the quotient 187.10 derived by dividing the adjusted net tax capacity of the 187.11 district for the year before the year the levy is certified by 187.12 the resident pupil units in the district for the school year to 187.13 which the levy is attributable, to$3,280$2,433. 187.14 Sec. 7. [APPROPRIATIONS.] 187.15 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 187.16 indicated in this section are appropriated from the general fund 187.17 to the department of education for the fiscal years designated. 187.18 Subd. 2. [COMMUNITY EDUCATION AID.] For community 187.19 education aid under Minnesota Statutes, section 124D.20: 187.20 $5,325,000 ..... 2004 187.21 $3,491,000 ..... 2005 187.22 The 2004 appropriation includes $956,000 for 2003 and 187.23 $4,369,000 for 2004. 187.24 The 2005 appropriation includes $1,304,000 for 2004 and 187.25 $2,187,000 for 2005. 187.26 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 187.27 adults with disabilities programs under Minnesota Statutes, 187.28 section 124D.56: 187.29 $667,000 ..... 2004 187.30 $710,000 ..... 2005 187.31 The 2004 appropriation includes $120,000 for 2003 and 187.32 $547,000 for 2004. 187.33 The 2005 appropriation includes $163,000 for 2004 and 187.34 $547,000 for 2005. 187.35 Subd. 4. [HEARING-IMPAIRED ADULTS.] For programs for 187.36 hearing-impaired adults under Minnesota Statutes, section 188.1 124D.57: 188.2 $70,000 ..... 2004 188.3 $70,000 ..... 2005 188.4 Subd. 5. [ABUSED CHILDREN.] For abused children programs 188.5 under Minnesota Statutes, section 119A.21: 188.6 $945,000 ..... 2004 188.7 $945,000 ..... 2005 188.8 Subd. 6. [SCHOOL-AGE CARE REVENUE.] For extended day care 188.9 aid under Minnesota Statutes, section 124D.22: 188.10 $40,000 ..... 2004 188.11 $23,000 ..... 2005 188.12 The 2004 appropriation includes $14,000 for 2003 and 188.13 $26,000 for 2004. 188.14 The 2005 appropriation includes $7,000 for 2004 and $16,000 188.15 for 2005. 188.16 Sec. 8. [REPEALER.] 188.17 Minnesota Statutes 2002, sections 120B.23; 124D.21; 188.18 124D.221; 124D.93; and 144.401, subdivision 5, are repealed. 188.19 ARTICLE 9 188.20 SELF-SUFFICIENCY AND LIFE LONG LEARNING 188.21 Section 1. Minnesota Statutes 2002, section 124D.52, 188.22 subdivision 1, is amended to read: 188.23 Subdivision 1. [PROGRAM REQUIREMENTS.] (a) An adult basic 188.24 education program is a day or evening program offered by a 188.25 district that is for people over 16 years of age who do not 188.26 attend an elementary or secondary school. The program offers 188.27 academic instruction necessary to earn a high school diploma or 188.28 equivalency certificate.Tuition and fees may not be charged to188.29a learner for instruction paid under this section, except for188.30 (b) Notwithstanding any law to the contrary, a school board 188.31 or the governing body of a consortium offering an adult basic 188.32 education program may adopt a sliding fee schedule based on a 188.33 family's income, but must waive the fee for participants who are 188.34 under the age of 21 or unable to pay. The fees charged must be 188.35 designed to enable individuals of all socioeconomic levels to 188.36 participate in the program. A program may charge a security 189.1 deposit to assure return of materials, supplies, and equipment. 189.2 (c) Each approved adult basic education program must 189.3 develop a memorandum of understanding with the local workforce 189.4 development centers located in the approved program's service 189.5 delivery area. The memorandum of understanding must describe 189.6 how the adult basic education program and the workforce 189.7 development centers will cooperate and coordinate services to 189.8 provide unduplicated, efficient, and effective services to 189.9 clients. 189.10 (d) Adult basic education aid must be spent for adult basic 189.11 education purposes as specified in sections 124D.518 to 124D.531. 189.12 Sec. 2. Minnesota Statutes 2002, section 124D.52, 189.13 subdivision 3, is amended to read: 189.14 Subd. 3. [ACCOUNTS; REVENUE; AID.] (a) Each district, 189.15 group of districts, or private nonprofit organization providing 189.16 adult basic education programs must establish and 189.17 maintainaccounts separate from all other district accountsa 189.18 reserve account within the community service fund for the 189.19 receipt and disbursement of all funds related to these 189.20 programs. All revenue received pursuant to this section must be 189.21 utilized solely for the purposes of adult basic education 189.22 programs. State aid must not equal more than 100 percent of the 189.23 unreimbursed expenses of providing these programs, excluding 189.24 in-kind costs. 189.25 (b) Notwithstanding section 123A.26 or any other law to the 189.26 contrary, an adult basic education consortium providing an 189.27 approved adult basic education program may be its own fiscal 189.28 agent and is eligible to receive state-aid payments directly 189.29 from the commissioner. 189.30 Sec. 3. Minnesota Statutes 2002, section 124D.531, 189.31 subdivision 1, is amended to read: 189.32 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 189.33 (a) The state total adult basic education aid for fiscal year 189.3420012004 equals$30,157,000$34,388,000. The state total adult 189.35 basic education aid for fiscal year 2005 and later is 189.36 $36,509,000.The state total adult basic education aid for190.1later years equals:190.2(1) the state total adult basic education aid for the190.3preceding fiscal year; times190.4(2) the lesser of:190.5(i) 1.08, or190.6(ii) the greater of 1.00 or the ratio of the state total190.7contact hours in the first prior program year to the state total190.8contact hours in the second prior program year.Beginning in 190.9 fiscal year 2002, two percent of the state total adult basic 190.10 education aid must be set aside for adult basic education 190.11 supplemental service grants under section 124D.522. 190.12 (b) The state total adult basic education aid, excluding 190.13 basic population aid, equals the difference between the amount 190.14 computed in paragraph (a), and the state total basic population 190.15 aid under subdivision 2. 190.16 Sec. 4. Minnesota Statutes 2002, section 124D.531, 190.17 subdivision 2, is amended to read: 190.18 Subd. 2. [BASIC POPULATION AID.] A district is eligible 190.19 for basic population aid if the district has a basic service 190.20 level approved by the commissioner under section 124D.52, 190.21 subdivision 5, or is a member of a consortium with an approved 190.22 basic service level. Basic population aid is equal to the 190.23 greater of$4,000$3,844 or$1.80$1.73 times the population of 190.24 the district. District population is determined according to 190.25 section 275.14. 190.26 Sec. 5. Minnesota Statutes 2002, section 124D.531, 190.27 subdivision 4, is amended to read: 190.28 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 190.29 Notwithstanding subdivisions 2 and 3, the total adult basic 190.30 education aid for a program per prior year contact hour must not 190.31 exceedfour times the rate$21 per prior year contact hour 190.32 computed under subdivision 3, clause (2). 190.33 (b) For fiscal year 2004, the aid for a program under 190.34 subdivision 3, clause (2), adjusted for changes in program 190.35 membership, must not exceed the aid for that program under 190.36 subdivision 3, clause (2), for fiscal year 2003 by more than the 191.1 greater of eight percent or $10,000. 191.2 (c) For fiscal year 2005, the aid for a program under 191.3 subdivision 3, clause (2), adjusted for changes in program 191.4 membership, must not exceed the sum of the aid for that program 191.5 under subdivision 3, clause (2), and section 8, paragraph (a), 191.6 for the preceding fiscal year by more than the greater of eight 191.7 percent or $10,000. 191.8 (d) For fiscal year20022006 and later, the aid for a 191.9 program under subdivision 3, clause (2), adjusted for changes in 191.10 program membership, must not exceed the aid for that program 191.11 under subdivision 3, clause (2), for the first preceding fiscal 191.12 year by more than the greater of17eight percent or 191.13$20,000$10,000. 191.14(c)(d) Adult basic education aid is payable to a program 191.15 for unreimbursed costs. 191.16 Sec. 6. Minnesota Statutes 2002, section 124D.531, 191.17 subdivision 7, is amended to read: 191.18 Subd. 7. [PROGRAM AUDITS.] Programs that receive aid under 191.19 this section must maintain records that support the aid 191.20 payments. The commissioner may audit these records upon 191.21 request. The commissioner must establish procedures for 191.22 conducting fiscal audits of adult basic education programs 191.23according to the schedule in this subdivision. In calendar year191.242003, the commissioner must audit one-half of approved adult191.25basic education programs that received aid for fiscal year 2002,191.26and in calendar year 2004, the commissioner must audit the191.27remaining unaudited programs for aid received in fiscal year191.282003. Beginning with fiscal year 2005, the commissioner must,191.29at a minimum, audit each adult basic education program once191.30every five years. The commissioner must establish procedures to 191.31 reconcile any discrepancies between aid payments based on 191.32 information reported to the commissioner and aid estimates based 191.33 on a program audit. 191.34 Sec. 7. [ADULT BASIC EDUCATION PROGRAM APPROVAL AND AID, 191.35 FISCAL YEAR 2004.] 191.36 (a) Notwithstanding Minnesota Statutes 2002, section 192.1 124D.54, subdivision 2, a district or consortium of districts 192.2 that provided a program funded under Minnesota Statutes 2002, 192.3 section 124D.54, in fiscal year 2003 may request an extension of 192.4 the application deadline for approval of an adult basic 192.5 education program for fiscal year 2004. 192.6 (b) For purposes of computing the fiscal year 2005 adult 192.7 basic education aid for a program under Minnesota Statutes, 192.8 section 124D.531, subdivision 3, clause (2), the contact hours 192.9 for students participating in the program during the first prior 192.10 program year must be increased by 17 percent of the adult 192.11 graduation aid average daily attendance for fiscal year 2002. 192.12 Sec. 8. [ADULT BASIC EDUCATION TRANSITION AID.] 192.13 (a) For fiscal year 2004, adult basic education transition 192.14 aid for each qualifying district equals the district's adult 192.15 high school graduation aid for fiscal year 2002. This aid 192.16 amount must be used to provide an adult basic education program 192.17 under Minnesota Statutes, section 124D.52. To qualify for aid 192.18 under this section a district must establish or join an approved 192.19 adult basic education program according to Minnesota Statutes, 192.20 section 124D.52, subdivision 2. 192.21 (b) For fiscal year 2005, the adult high school graduation 192.22 aid program is eliminated. 192.23 Sec. 9. [APPROPRIATIONS.] 192.24 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 192.25 indicated in this section are appropriated from the general fund 192.26 to the department of education for the fiscal years designated. 192.27 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 192.28 education aid under Minnesota Statutes, section 124D.52, in 192.29 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 192.30 fiscal year 2005: 192.31 $32,131,000 ..... 2004 192.32 $35,758,000 ..... 2005 192.33 The 2004 appropriation includes $5,905,000 for 2003 and 192.34 $26,226,000 for 2004. 192.35 The 2005 appropriation includes $7,833,000 for 2004 and 192.36 $27,925,000 for 2005. 193.1 Subd. 3. [ADULT GRADUATION AID.] For adult graduation aid 193.2 under Minnesota Statutes, section 124D.54: 193.3 $396,000 ..... 2004 193.4 Subd. 4. [ADULT BASIC EDUCATION TRANSITION AID.] (a) For 193.5 adult basic transition aid under section 8: 193.6 $1,634,000 ..... 2004 193.7 $ 488,000 ..... 2005 193.8 The 2004 appropriation includes $1,634,000 for 2004. 193.9 The 2005 appropriation includes $488,000 for 2004 and $0 193.10 for 2005. 193.11 Subd. 5. [GED TESTS.] For payment of 60 percent of the 193.12 costs of GED tests under Laws 1993, chapter 224, article 4, 193.13 section 44, subdivision 10: 193.14 $125,000 ..... 2004 193.15 $125,000 ..... 2005 193.16 Subd. 6. [FAMILY ASSETS FOR INDEPENDENCE.] For family 193.17 assets for independence: 193.18 $500,000 ..... 2004 193.19 Any balance in the first year does not cancel but is 193.20 available in the second year. 193.21 Sec. 10. [REPEALER.] 193.22 Minnesota Statutes 2002, sections 124D.09, subdivision 15; 193.23 124D.54; and 126C.05, subdivision 12, are repealed. 193.24 ARTICLE 10 193.25 STATE AGENCIES 193.26 Section 1. Minnesota Statutes 2002, section 15.01, is 193.27 amended to read: 193.28 15.01 [DEPARTMENTS OF THE STATE.] 193.29 The following agencies are designated as the departments of 193.30 the state government: the department of administration; the 193.31 department of agriculture; the department of commerce; the 193.32 department of corrections; the department ofchildren, families,193.33and learningeducation; the department of economic security; the 193.34 department of trade and economic development; the department of 193.35 finance; the department of health; the department of human 193.36 rights; the department of labor and industry; the department of 194.1 military affairs; the department of natural resources; the 194.2 department of employee relations; the department of public 194.3 safety; the department of human services; the department of 194.4 revenue; the department of transportation; the department of 194.5 veterans affairs; and their successor departments. 194.6 Sec. 2. Minnesota Statutes 2002, section 119A.01, 194.7 subdivision 2, is amended to read: 194.8 Subd. 2. [ESTABLISHMENT.] The department ofchildren,194.9families, and learningeducation is established. 194.10 Sec. 3. Minnesota Statutes 2002, section 119A.02, 194.11 subdivision 2, is amended to read: 194.12 Subd. 2. [COMMISSIONER.] "Commissioner" means the 194.13 commissioner ofchildren, families, and learningeducation. 194.14 Sec. 4. Minnesota Statutes 2002, section 119A.02, 194.15 subdivision 3, is amended to read: 194.16 Subd. 3. [DEPARTMENT.] "Department" means the department 194.17 ofchildren, families, and learningeducation. 194.18 Sec. 5. Minnesota Statutes 2002, section 119B.011, 194.19 subdivision 8, is amended to read: 194.20 Subd. 8. [COMMISSIONER.] "Commissioner" means the 194.21 commissioner ofchildren, families, and learningeducation. 194.22 Sec. 6. Minnesota Statutes 2002, section 119B.011, 194.23 subdivision 10, is amended to read: 194.24 Subd. 10. [DEPARTMENT.] "Department" means the department 194.25 ofchildren, families, and learningeducation. 194.26 Sec. 7. Minnesota Statutes 2002, section 120A.02, is 194.27 amended to read: 194.28 120A.02 [DEPARTMENT OFCHILDREN, FAMILIES, AND LEARNING194.29 EDUCATION.] 194.30 The department ofchildren, families, and learning194.31 education shall carry out the provisions of chapters 120A to 194.32 129C and other related education provisions under law. 194.33 Sec. 8. Minnesota Statutes 2002, section 120A.05, 194.34 subdivision 4, is amended to read: 194.35 Subd. 4. [COMMISSIONER.] "Commissioner" means the 194.36 commissioner ofchildren, families, and learningeducation. 195.1 Sec. 9. Minnesota Statutes 2002, section 120A.05, 195.2 subdivision 7, is amended to read: 195.3 Subd. 7. [DEPARTMENT.] "Department" means the department 195.4 ofchildren, families, and learningeducation. 195.5 Sec. 10. Minnesota Statutes 2002, section 122A.09, 195.6 subdivision 10, is amended to read: 195.7 Subd. 10. [VARIANCES.] (a) Notwithstanding subdivision 9 195.8 and section 14.05, subdivision 4, the board of teaching may 195.9 grant a variance to its rules upon application by a school 195.10 district for purposes of implementing experimental programs in 195.11 learning or management. 195.12 (b) To enable a school district to meet the needs of 195.13 students enrolled in an alternative education program and to 195.14 enable licensed teachers instructing those students to satisfy 195.15 content area licensure requirements, the board of teaching 195.16 annually may permit a licensed teacher teaching in an 195.17 alternative education program to instruct students in a content 195.18 area for which the teacher is not licensed, consistent with 195.19 paragraph (a). 195.20 [EFFECTIVE DATE.] This section is effective the day 195.21 following final enactment. 195.22 Sec. 11. Minnesota Statutes 2002, section 122A.12, 195.23 subdivision 1, is amended to read: 195.24 Subdivision 1. [MEMBERSHIP.] A board of school 195.25 administrators is established and must consist ofnineten 195.26 members appointed by the governor with the advice and consent of 195.27 the senate, including at least: 195.28 (1) one elementary school principal; 195.29 (2) one secondary school principal; 195.30 (3) one higher education faculty member in an educational 195.31 administration program approved by the board; 195.32 (4) one higher education administrator for an educational 195.33 administration program approved by the board; 195.34 (5) one school superintendent; 195.35 (6) one classroom teacher; 195.36 (7) one community education directoror aand one special 196.1 education director; and 196.2 (8) two members of the public, one of whom must be a 196.3 present or former school board member. 196.4 In making appointments, the governor shall solicit 196.5 recommendations from groups representing persons in clauses (1) 196.6 to (8). 196.7 [EFFECTIVE DATE.] This section is effective the day 196.8 following final enactment. 196.9 Sec. 12. Minnesota Statutes 2002, section 122A.12, 196.10 subdivision 2, is amended to read: 196.11 Subd. 2. [TERMS; COMPENSATION; REMOVAL; ADMINISTRATION.] 196.12 Membership terms, removal of members, and the filling of 196.13 membership vacancies are as provided in section 214.09. The 196.14 terms of the initial board members must be determined by lot as 196.15 follows: 196.16 (1) three members must be appointed for terms that expire 196.17 August 1, 2002; 196.18 (2) three members must be appointed for terms that expire 196.19 August 1, 2003; and 196.20 (3)threefour members must be appointed for terms that 196.21 expire August 1, 2004. 196.22 Members shall not receive the daily payment under section 196.23 214.09, subdivision 3. The public employer of a member shall 196.24 not reduce the member's compensation or benefits for the 196.25 member's absence from employment when engaging in the business 196.26 of the board. The provision of staff, administrative services, 196.27 and office space; the review and processing of complaints; the 196.28 setting of fees; the selection and duties of an executive 196.29 secretary to serve the board; and other provisions relating to 196.30 board operations are as provided in chapter 214. Fiscal year 196.31 and reporting requirements are as provided in sections 214.07 196.32 and 214.08. 196.33 [EFFECTIVE DATE.] This section is effective the day 196.34 following final enactment. 196.35 Sec. 13. Minnesota Statutes 2002, section 122A.18, 196.36 subdivision 7a, is amended to read: 197.1 Subd. 7a. [PERMISSION TO SUBSTITUTE TEACH.] (a) The board 197.2 of teaching may allow a person who is enrolled in and making 197.3 satisfactory progress in a board-approved teacher program and 197.4 who has successfully completed student teaching to be employed 197.5 as a short-call substitute teacher. 197.6 (b) The board of teaching may issue a lifetime qualified 197.7 short-call substitute teaching license to a person who: 197.8 (1) was a qualified teacher under section 122A.16 while 197.9 holding a continuing five-year teaching license issued by the 197.10 board, and receives a retirement annuity from the teachers 197.11 retirement association, Minneapolis teachers retirement fund 197.12 association, St. Paul teachers retirement fund association, or 197.13 Duluth teachers retirement fund association; 197.14 (2) holds an out-of-state teaching license and receives a 197.15 retirement annuity as a result of the person's teaching 197.16 experience; or 197.17 (3) held a continuing five-year license issued by the 197.18 board, taught at least three school years in an accredited 197.19 nonpublic school in Minnesota, and receives a retirement annuity 197.20 as a result of the person's teaching experience. 197.21 A person holding a lifetime qualified short-call substitute 197.22 teaching license is not required to complete continuing 197.23 education clock hours. A person holding this license may 197.24 reapply to the board for a continuing five-year license and must 197.25 again complete continuing education clock hours one school year 197.26 after receiving the continuing five-year license. 197.27 [EFFECTIVE DATE.] This section is effective for the 197.28 2003-2004 school year. 197.29 Sec. 14. Minnesota Statutes 2002, section 122A.21, is 197.30 amended to read: 197.31 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 197.32 Each application for the issuance, renewal, or extension of 197.33 a license to teach must be accompanied by a processing feein an197.34amount set by the board of teaching by ruleof $57. Each 197.35 application for issuing, renewing, or extending the license of a 197.36 school administrator or supervisor must be accompanied by a 198.1 processing fee in the amount set by the board of teaching. The 198.2 processing fee for a teacher's license and for the licenses of 198.3 supervisory personnel must be paid to the executive secretary of 198.4 the appropriate board. The executive secretary of the board 198.5 shall deposit the fees with the state treasurer, as provided by 198.6 law, and report each month to the commissioner of finance the 198.7 amount of fees collected. The fees as set by the board are 198.8 nonrefundable for applicants not qualifying for a license. 198.9 However, a fee must be refunded by the state treasurer in any 198.10 case in which the applicant already holds a valid unexpired 198.11 license. The board may waive or reduce fees for applicants who 198.12 apply at the same time for more than one license. 198.13 Sec. 15. Minnesota Statutes 2002, section 122A.22, is 198.14 amended to read: 198.15 122A.22 [DISTRICTRECORDINGVERIFICATION OF TEACHER 198.16 LICENSES.] 198.17 No person shall be accounted a qualified teacher until the 198.18person has filed for record with the district superintendent198.19where the person intends to teach a license, or certified copy198.20of a license, authorizing the person to teach school in the198.21district school systemschool district or charter school 198.22 contracting with the person for teaching services verifies 198.23 through the Minnesota education licensing system available on 198.24 the department Web site that the person is a qualified teacher, 198.25 consistent with sections 122A.16 and 122A.44, subdivision 1. 198.26 [EFFECTIVE DATE.] This section is effective for the 198.27 2003-2004 school year and later. 198.28 Sec. 16. Minnesota Statutes 2002, section 127A.05, 198.29 subdivision 1, is amended to read: 198.30 Subdivision 1. [APPOINTMENT AND DUTIES.] The department 198.31 shall be under the administrative control of the commissioner of 198.32children, families, and learningeducation which office is 198.33 established. The governor shall appoint the commissioner under 198.34 the provisions of section 15.06. 198.35 The commissioner shall be a person who possesses 198.36 educational attainment and breadth of experience in the 199.1 administration of public education and of the finances 199.2 pertaining thereto commensurate with the spirit and intent of 199.3 this code. Notwithstanding any other law to the contrary, the 199.4 commissioner may appoint two deputy commissioners who shall 199.5 serve in the unclassified service. The commissioner shall also 199.6 appoint other employees as may be necessary for the organization 199.7 of the department. The commissioner shall perform such duties 199.8 as the law and rules may provide and be held responsible for the 199.9 efficient administration and discipline of the department. The 199.10 commissioner is charged with the execution of powers and duties 199.11 to promote public education in the state and to safeguard the 199.12 finances pertaining thereto. 199.13 Sec. 17. Minnesota Statutes 2002, section 127A.05, 199.14 subdivision 3, is amended to read: 199.15 Subd. 3. [GENERAL SUPERVISION OVER PUBLIC SCHOOLS AND 199.16 EDUCATIONAL AGENCIES.] The commissioner ofchildren, families,199.17and learningeducation shall adopt goals for and exercise 199.18 general supervision over public schools and public educational 199.19 agencies in the state, classify and standardize public 199.20 elementary and secondary schools, and prepare for them outlines 199.21 and suggested courses of study. The commissioner shall develop 199.22 a plan to attain the adopted goals. The commissioner may 199.23 recognize educational accrediting agencies for the sole purposes 199.24 of sections 120A.22, 120A.24, and 120A.26. 199.25 Sec. 18. Minnesota Statutes 2002, section 169.26, 199.26 subdivision 3, is amended to read: 199.27 Subd. 3. [DRIVER TRAINING.] All driver education courses 199.28 approved bythe commissioner of children, families, and learning199.29andthe commissioner of public safety must include instruction 199.30 on railroad-highway grade crossing safety. Thecommissioner of199.31children, families, and learning and thecommissioner of public 199.32 safety shall by rule establish minimum standards of course 199.33 content relating to operation of vehicles at railroad-highway 199.34 grade crossings. 199.35 Sec. 19. Minnesota Statutes 2002, section 169.973, 199.36 subdivision 1, is amended to read: 200.1 Subdivision 1. [COMMISSIONER'S AUTHORITY; RULES; 200.2 CURRICULUM.] The commissioner of public safety shall supervise 200.3 the administration and conduct of driver improvement clinics and 200.4 youth-oriented driver improvement clinics. The commissioner of 200.5 public safety shall promulgate rules setting forth standards for 200.6 the curriculum and mode of instruction of driver improvement 200.7 clinics and youth-oriented driver improvement clinics and such 200.8 other matters as the commissioner of public safety considers 200.9 necessary for the proper administration of such clinics. In the 200.10 preparation of such standards the commissioner of public safety 200.11 shall consult with thecommissioner of children, families, and200.12learning andstate associations of judges. A driver improvement 200.13 clinic established under sections 169.971 to 169.973 and 171.20, 200.14 subdivision 3, shall conform to the standards promulgated by the 200.15 commissioner of public safety. The course of study at a driver 200.16 improvement clinic and youth-oriented driver improvement clinic 200.17 may not exceed a cumulative total of nine hours with no single 200.18 class session lasting more than three hours. The course of 200.19 study at a driver improvement clinic and youth-oriented driver 200.20 improvement clinic shall include instruction in railroad 200.21 crossing safety. 200.22 Sec. 20. Minnesota Statutes 2002, section 178.02, 200.23 subdivision 1, is amended to read: 200.24 Subdivision 1. [MEMBERS.] The commissioner of labor and 200.25 industry, hereinafter called the commissioner, shall appoint an 200.26 apprenticeship advisory council, hereinafter referred to as the 200.27 council, composed of three representatives each from employer 200.28 and employee organizations, and two representatives of the 200.29 general public. Theassistant commissionerdirector of 200.30children, families, and learningeducation responsible for 200.31vocationalcareer and technical education or designee shall be 200.32 an ex officio member of the council and shall serve in an 200.33 advisory capacity only. 200.34 Sec. 21. [COST-BENEFIT ANALYSIS OF FEDERAL NO CHILD LEFT 200.35 BEHIND ACT.] 200.36 The commissioner of education must conduct a rigorous 201.1 cost-benefit analysis to determine the tangible and intangible 201.2 costs and benefits to Minnesota of implementing the federal No 201.3 Child Left Behind Act and the time needed for the benefits of 201.4 the changes to repay the costs of the changes. The 201.5 commissioner, by February 15, 2004, must present a written 201.6 report of the analysis to the committees of the legislature 201.7 having jurisdiction over kindergarten through grade 12 education 201.8 policy and finance. 201.9 Sec. 22. [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 201.10 Subdivision 1. [DEPARTMENT OF EDUCATION.] Unless otherwise 201.11 indicated, the sums indicated in this section are appropriated 201.12 from the general fund to the department of education for the 201.13 fiscal years designated. 201.14 Subd. 2. [DEPARTMENT.] (a) For the department of education: 201.15 $23,653,000 ..... 2004 201.16 $23,653,000 ..... 2005 201.17 Any balance in the first year does not cancel but is 201.18 available in the second year. 201.19 (b) $260,000 each year is for the Minnesota children's 201.20 museum. 201.21 (c) $41,000 each year is for the Minnesota academy of 201.22 science. 201.23 (d) $237,000 of the balance in the state education 201.24 courseware development account in the state government special 201.25 revenue fund as of July 1, 2004, is canceled to the general fund. 201.26 (e) $160,000 of the balance in the state item bank 201.27 revolving account in the state government special revenue fund 201.28 as of July 1, 2004, is canceled to the general fund. 201.29 (f) $621,000 each year is for the board of teaching. 201.30 (g) $165,000 each year is for the board of school 201.31 administrators. 201.32 (h) The commissioner is encouraged to give priority 201.33 consideration to the Minnesota humanities commission when 201.34 issuing grants for professional development of teachers or 201.35 content development from best practices, Federal Title II, Part 201.36 A, Federal Title V, Part A, or other appropriate grant resources 202.1 that have a stated objective of improvement of teacher 202.2 performance. 202.3 Subd. 3. [FEDERAL GRANTS AND AIDS.] The expenditures of 202.4 federal grants and aids as shown in the biennial budget document 202.5 and its supplements are approved and appropriated and shall be 202.6 spent as indicated. 202.7 Sec. 23. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 202.8 The sums indicated in this section are appropriated from 202.9 the general fund to the Minnesota state academies for the deaf 202.10 and the blind for the fiscal years designated: 202.11 $10,966,000 ..... 2004 202.12 $10,966,000 ..... 2005 202.13 Any balance in the first year does not cancel but is 202.14 available in the second year. 202.15 Sec. 24. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 202.16 EDUCATION.] 202.17 The sums indicated in this section are appropriated from 202.18 the general fund to the Perpich center for arts education for 202.19 the fiscal years designated: 202.20 $6,864,000 ..... 2004 202.21 $6,423,000 ..... 2005 202.22 Any balance in the first year does not cancel but is 202.23 available in the second year. 202.24 Sec. 25. [REVISOR'S INSTRUCTION.] 202.25 (a) In Minnesota Statutes, the revisor shall renumber 202.26 section 119A.02, subdivision 2, as 120A.02, paragraph (a), and 202.27 section 120A.02 as 120A.02, paragraph (b). 202.28 (b) In Minnesota Statutes and Minnesota Rules, the revisor 202.29 shall change the term "children, families, and learning" to 202.30 "education." 202.31 (c) In the next and subsequent editions of Minnesota 202.32 Statutes, the revisor shall change all references to the 202.33 "commissioner of children, families, and learning" to the 202.34 "commissioner of public safety" in Minnesota Statutes, sections 202.35 123B.88, subdivision 9; 168.102; 169.441, subdivision 5; and 202.36 171.321, subdivision 4c; and "Part H" to "Part C" in Minnesota 203.1 Statutes, sections 125A.27, subdivisions 7 and 8; 125A.32; 203.2 125A.35; 125A.37; 125A.39; 125A.44; and 125A.45. 203.3 Sec. 26. [REPEALER.] 203.4 (a) Minnesota Statutes 2002, sections 15.014, subdivision 203.5 3; 119A.01, subdivision 1; 123B.90, subdivision 1; 169.441, 203.6 subdivision 4; and 239.004, are repealed. 203.7 (b) Minnesota Rules, parts 3500.0600; 3520.0400; 3520.1400; 203.8 3520.3300; 3530.1500; 3530.2700; 3530.4400; 3530.4500; 203.9 3530.4700; and 3550.0100, are repealed. 203.10 ARTICLE 11 203.11 DEFICIENCIES 203.12 Section 1. [DEPARTMENT OF EDUCATION.] 203.13 The dollar amounts shown are added to or, if shown in 203.14 parentheses, are subtracted from the appropriations in Laws 203.15 2001, First Special Session chapter 6, as amended by Laws 2002, 203.16 chapter 220, and Laws 2002, chapter 374, or other law, and are 203.17 appropriated from the general fund to the department of 203.18 education for the purposes specified in this article, to be 203.19 available for the fiscal year indicated for each purpose. The 203.20 figure "2003" used in this article means that the appropriation 203.21 or appropriations listed are available for the fiscal year 203.22 ending June 30, 2003. 203.23 2003 203.24 APPROPRIATION ADJUSTMENTS $ 10,869,000 203.25 APPROPRIATION CHANGE 203.26 Sec. 2. APPROPRIATIONS; DEPARTMENT OF 203.27 EDUCATION 203.28 Subdivision 1. Community Education Aid 219,000 203.29 Subd. 2. General and Supplemental 203.30 Education Aid 8,791,000 203.31 This change includes ($7,420,000) for 203.32 2002 and $16,211,000 for 2003. 203.33 Subd. 3. Nonpublic Pupil Aid 437,000 203.34 Subd. 4. Consolidation Transition Aid 5,000 203.35 Subd. 5. Interdistrict Desegregation 203.36 or Integration Transportation Grants 169,000 203.37 Subd. 6. Travel for Home-Based 203.38 Services 48,000 204.1 Subd. 7. Debt Service Aid 19,000 204.2 Subd. 8. School Breakfast 100,000 204.3 Subd. 9. Fast Break to Learning 1,081,000 204.4 Sec. 3. [EFFECTIVE DATE.] 204.5 Sections 1 and 2 are effective the day following final 204.6 enactment. 204.7 ARTICLE 12 204.8 TECHNICAL AMENDMENTS 204.9 Section 1. Minnesota Statutes 2002, section 119B.011, 204.10 subdivision 20, is amended to read: 204.11 Subd. 20. [TRANSITION YEAR FAMILIES.] "Transition year 204.12 families" means families who have received MFIP assistance, or 204.13 who were eligible to receive MFIP assistance after choosing to 204.14 discontinue receipt of the cash portion of MFIP assistance under 204.15 section 256J.31, subdivision 12, for at least three of the last 204.16 six months before losing eligibility for MFIPor families204.17participating in work first under chapter 256K who meet the204.18requirements of section 256K.07. Transition year child care may 204.19 be used to support employment or job search. Transition year 204.20 child care is not available to families who have been 204.21 disqualified from MFIP due to fraud. 204.22 Sec. 2. Minnesota Statutes 2002, section 121A.21, is 204.23 amended to read: 204.24 121A.21 [SCHOOL HEALTH SERVICES.] 204.25 (a) Every school board must provide services to promote the 204.26 health of its pupils. 204.27 (b) The board of a district with 1,000 pupils or more in 204.28 average daily membership in early childhood family education, 204.29 preschool handicapped, elementary, and secondary programs must 204.30 comply with the requirements of this paragraph. It may use one 204.31 or a combination of the following methods: 204.32 (1) employ personnel, including at least one full-time 204.33 equivalent licensed school nurseor continue to employ a204.34registered nurse not yet certified as a public health nurse as204.35defined in section 145A.02, subdivision 18, who is enrolled in a204.36program that would lead to certification within four years of205.1August 1, 1988; 205.2 (2) contract with a public or private health organization 205.3 or another public agency for personnel during the regular school 205.4 year, determined appropriate by the board, who are currently 205.5 licensed under chapter 148 and who are certified public health 205.6 nurses; or 205.7 (3) enter into another arrangement approved by the 205.8 commissioner. 205.9 Sec. 3. Minnesota Statutes 2002, section 122A.41, 205.10 subdivision 2, is amended to read: 205.11 Subd. 2. [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] All 205.12 teachers in the public schools in cities of the first class 205.13 during the first three years of consecutive employment shall be 205.14 deemed to be in a probationary period of employment during which 205.15 period any annual contract with any teacher may, or may not, be 205.16 renewed as the school board, after consulting with the peer 205.17 review committee charged with evaluating the probationary 205.18 teachers under subdivision2a or3, shall see fit. The school 205.19 site management team or the school board if there is no school 205.20 site management team, shall adopt a plan for a written 205.21 evaluation of teachers during the probationary period according 205.22 to subdivision2a3. Evaluation by the peer review committee 205.23 charged with evaluating probationary teachers under subdivision 205.242a3 shall occur at least three times each year for a teacher 205.25 performing services on 120 or more school days, at least two 205.26 times each year for a teacher performing services on 60 to 119 205.27 school days, and at least one time each year for a teacher 205.28 performing services on fewer than 60 school days. Days devoted 205.29 to parent-teacher conferences, teachers' workshops, and other 205.30 staff development opportunities and days on which a teacher is 205.31 absent from school shall not be included in determining the 205.32 number of school days on which a teacher performs services. The 205.33 school board may, during such probationary period, discharge or 205.34 demote a teacher for any of the causes as specified in this 205.35 code. A written statement of the cause of such discharge or 205.36 demotion shall be given to the teacher by the school board at 206.1 least 30 days before such removal or demotion shall become 206.2 effective, and the teacher so notified shall have no right of 206.3 appeal therefrom. 206.4 Sec. 4. Minnesota Statutes 2002, section 123B.02, 206.5 subdivision 1, is amended to read: 206.6 Subdivision 1. [BOARD AUTHORITY.] The board must have the 206.7 general charge of the business of the district, the school 206.8 houses, and of the interests of the schools thereof. The 206.9 board's authority to govern, manage, and control the district; 206.10 to carry out its duties and responsibilities; and to conduct the 206.11 business of the district includes implied powers in addition to 206.12 any specific powers granted by the legislature. 206.13 Sec. 5. Minnesota Statutes 2002, section 123B.72, 206.14 subdivision 3, is amended to read: 206.15 Subd. 3. [CERTIFICATION.] Prior to occupying or 206.16 reoccupying a school facility affected by this section, a school 206.17 board or its designee shall submit a document prepared by a 206.18 system inspector to the building official or to the 206.19 commissioner, verifying that the facility's heating, 206.20 ventilation, and air conditioning system has been installed and 206.21 operates according to design specifications and code, according 206.22 to section 123B.71, subdivision109, clause(3)(11). A 206.23 systems inspector shall also verify that the facility's design 206.24 will provide the ability for monitoring of outdoor airflow and 206.25 total airflow of ventilation systems in new school facilities 206.26 and that any heating, ventilation, or air conditioning system 206.27 that is installed or modified for a project subject to this 206.28 section must provide a filtration system with a current ASHRAE 206.29 standard. 206.30 Sec. 6. Minnesota Statutes 2002, section 123B.93, is 206.31 amended to read: 206.32 123B.93 [ADVERTISING ON SCHOOL BUSES.] 206.33 (a) The commissioner, through a competitive process,and206.34with the approval of the school bus safety advisory committee206.35 may contract with advertisers regarding advertising on school 206.36 buses. At a minimum, the contract must prohibit advertising and 207.1 advertising images that: 207.2 (1) solicit the sale of, or promote the use of, alcoholic 207.3 beverages and tobacco products; 207.4 (2) are discriminatory in nature or content; 207.5 (3) imply or declare an endorsement of the product or 207.6 service by the school district; 207.7 (4) contain obscene material; 207.8 (5) are false, misleading, or deceptive; or 207.9 (6) relate to an illegal activity or antisocial behavior. 207.10 (b) Advertisement must meet the following conditions: 207.11 (1) the advertising attached to the school bus does not 207.12 interfere with bus identification under section 169.441; and 207.13 (2) the bus with attached advertising meets the school bus 207.14 equipment standards under sections 169.4501 to 169.4504. 207.15 (c) All buses operated by school districts may be attached 207.16 with advertisements under the state contract. All school 207.17 district contracts shall include a provision for advertisement. 207.18 Each school district shall be reimbursed by the advertiser for 207.19 all costs incurred by the district and its contractors for 207.20 supporting the advertising program, including, but not limited 207.21 to, retrofitting buses, storing advertising, attaching 207.22 advertising to the bus, and related maintenance. 207.23 (d) The commissioner shall hold harmless and indemnify each 207.24 district for all liabilities arising from the advertising 207.25 program. Each district must tender defense of all such claims 207.26 to the commissioner within five days of receipt. 207.27 (e) All revenue from the contract shall be deposited in the 207.28 general fund. 207.29 Sec. 7. Minnesota Statutes 2002, section 124D.03, 207.30 subdivision 12, is amended to read: 207.31 Subd. 12. [TERMINATION OF ENROLLMENT.] A district may 207.32 terminate the enrollment of a nonresident student enrolled under 207.33 this section or section124D.07 or124D.08 at the end of a 207.34 school year if the student meets the definition of a habitual 207.35 truant under section 260C.007, subdivision 19, the student has 207.36 been provided appropriate services under chapter 260A, and the 208.1 student's case has been referred to juvenile court. A district 208.2 may also terminate the enrollment of a nonresident student over 208.3 the age of 16 enrolled under this section if the student is 208.4 absent without lawful excuse for one or more periods on 15 208.5 school days and has not lawfully withdrawn from school under 208.6 section 120A.22, subdivision 8. 208.7 Sec. 8. Minnesota Statutes 2002, section 124D.09, 208.8 subdivision 3, is amended to read: 208.9 Subd. 3. [DEFINITIONS.] For purposes of this section, the 208.10 following terms have the meanings given to them. 208.11 (a) "Eligible institution" means a Minnesota public 208.12 post-secondary institution, a private, nonprofit two-year trade 208.13 and technical school granting associate degrees, an 208.14 opportunities industrialization center accredited by the North 208.15 Central Association of Colleges and Schools, or a private, 208.16 residential, two-year or four-year, liberal arts, 208.17 degree-granting college or university located in Minnesota. 208.18"Course" means a course or program.208.19 (b) "Course" means a course or program. 208.20 Sec. 9. Minnesota Statutes 2002, section 124D.10, 208.21 subdivision 13, is amended to read: 208.22 Subd. 13. [LENGTH OF SCHOOL YEAR.] A charter school must 208.23 provide instruction each year for at least the number of days 208.24 required by section120A.22, subdivision 5120A.41. It may 208.25 provide instruction throughout the year according to sections 208.26 124D.12 to 124D.127 or 124D.128. 208.27 Sec. 10. Minnesota Statutes 2002, section 124D.10, 208.28 subdivision 23a, is amended to read: 208.29 Subd. 23a. [RELATED PARTY LEASE COSTS.] (a) A charter 208.30 school is prohibited from entering a lease of real property with 208.31 a related party as defined in this subdivision, unless the 208.32 lessor is a nonprofit corporation under chapter 317A or a 208.33 cooperative under chapter 308A, and the lease cost is reasonable 208.34 under section 124D.11, subdivision 4, clause (1). 208.35 (b) For purposes of this subdivision: 208.36 (1) A "related party" is an affiliate or close relative of 209.1 the other party in question, an affiliate of a close relative, 209.2 or a close relative of an affiliate. 209.3 (2) "Affiliate" means a person that directly, or indirectly 209.4 through one or more intermediaries, controls, or is controlled 209.5 by, or is under common control with, another person. 209.6 (3) "Close relative" means an individual whose relationship 209.7 by blood, marriage, or adoption to another individual is no more 209.8 remote than first cousin. 209.9 (4) "Person" means an individual or entity of any kind. 209.10 (5) "Control" includes the terms "controlling," "controlled 209.11 by," and "under common control with" and means the possession, 209.12 direct or indirect, of the power to direct or cause the 209.13 direction of the management, operations, or policies of a 209.14 person, whether through the ownership of voting securities, by 209.15 contract, or otherwise. 209.16 (c) A lease of real property to be used for a charter 209.17 school, not excluded in paragraph (b), must contain the 209.18 following statement: "This lease is subject to Minnesota 209.19 Statutes, section 124D.10, subdivision 23a." 209.20 (d) If a charter school enters into as lessee a lease with 209.21 a related party and the charter school subsequently closes, the 209.22 commissioner has the right to recover from the lessor any lease 209.23 payments in excess of those that are reasonable under section 209.24124.11124D.11, subdivision 4, clause (1). 209.25 Sec. 11. Minnesota Statutes 2002, section 125A.05, is 209.26 amended to read: 209.27 125A.05 [METHOD OF SPECIAL INSTRUCTION.] 209.28 (a) As defined in thissubdivisionsection, to the extent 209.29 required by federal law as of July 1, 1999, special instruction 209.30 and services for children with a disability must be based on the 209.31 assessment and individual education plan. The instruction and 209.32 services may be provided by one or more of the following methods: 209.33 (1) in connection with attending regular elementary and 209.34 secondary school classes; 209.35 (2) establishment of special classes; 209.36 (3) at the home or bedside of the child; 210.1 (4) in other districts; 210.2 (5) instruction and services by special education 210.3 cooperative centers established under this section, or in 210.4 another member district of the cooperative center to which the 210.5 resident district of the child with a disability belongs; 210.6 (6) in a state residential school or a school department of 210.7 a state institution approved by the commissioner; 210.8 (7) in other states; 210.9 (8) by contracting with public, private or voluntary 210.10 agencies; 210.11 (9) for children under age five and their families, 210.12 programs and services established through collaborative efforts 210.13 with other agencies; 210.14 (10) for children under age five and their families, 210.15 programs in which children with a disability are served with 210.16 children without a disability; and 210.17 (11) any other method approved by the commissioner. 210.18 (b) Preference shall be given to providing special 210.19 instruction and services to children under age three and their 210.20 families in the residence of the child with the parent or 210.21 primary caregiver, or both, present. 210.22 (c) The primary responsibility for the education of a child 210.23 with a disability must remain with the district of the child's 210.24 residence regardless of which method of providing special 210.25 instruction and services is used. If a district other than a 210.26 child's district of residence provides special instruction and 210.27 services to the child, then the district providing the special 210.28 instruction and services must notify the child's district of 210.29 residence before the child's individual education plan is 210.30 developed and must provide the district of residence an 210.31 opportunity to participate in the plan's development. The 210.32 district of residence must inform the parents of the child about 210.33 the methods of instruction that are available. 210.34 Sec. 12. Minnesota Statutes 2002, section 125A.12, is 210.35 amended to read: 210.36 125A.12 [ATTENDANCE IN ANOTHER DISTRICT.] 211.1 No resident of a district who is eligible for special 211.2 instruction and services pursuant to this section may be denied 211.3 provision of this instruction and service because of attending a 211.4 public school in another district pursuant to section 123B.88, 211.5 subdivision 5, if the attendance is not subject to section 211.6 124D.06, 124D.07,or 124D.08. If the pupil attends a public 211.7 school located in a contiguous district and the district of 211.8 attendance does not provide special instruction and services, 211.9 the district of residence must provide necessary transportation 211.10 for the pupil between the boundary of the district of residence 211.11 and the educational facility where special instruction and 211.12 services are provided within the district of residence. The 211.13 district of residence may provide necessary transportation for 211.14 the pupil between its boundary and the school attended in the 211.15 contiguous district, but must not pay the cost of transportation 211.16 provided outside the boundary of the district of residence. 211.17 Sec. 13. Minnesota Statutes 2002, section 126C.10, 211.18 subdivision 28, is amended to read: 211.19 Subd. 28. [EQUITY REGION.] For the purposes of computing 211.20 equity revenue under subdivision2324, a district whose 211.21 administrative offices on July 1, 1999, is located in Anoka, 211.22 Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 211.23 part of the metro equity region. Districts whose administrative 211.24 offices on July 1, 1999, are not located in Anoka, Carver, 211.25 Dakota, Hennepin, Ramsey, Scott, or Washington county are part 211.26 of the rural equity region. 211.27 Sec. 14. Minnesota Statutes 2002, section 126C.55, 211.28 subdivision 5, is amended to read: 211.29 Subd. 5. [AID REDUCTION FOR REPAYMENT.] Except as provided 211.30 in this subdivision, the state must reduce the state aid payable 211.31 to the district under this chapter and chapters 120B, 122A, 211.32 123A, 123B, 124D, 125A, 127A, and 273,according to the schedule211.33in section 127A.44, subdivision 2,by the amount paid by the 211.34 state under this section on behalf of the district, plus the 211.35 interest due on it, and the amount reduced must revert from the 211.36 appropriate account to the state general fund. Payments from 212.1 the school endowment fund or any federal aid payments shall not 212.2 be reduced. If, after review of the financial situation of the 212.3 district, the commissioner advises the commissioner of finance 212.4 that a total reduction of the aids would cause an undue hardship 212.5 on or an undue disruption of the educational program of the 212.6 district, the commissioner, with the approval of the 212.7 commissioner of finance, may establish a different schedule for 212.8 reduction of those aids to repay the state. The amount of aids 212.9 to be reduced are decreased by any amounts repaid to the state 212.10 by the school district from other revenue sources. 212.11 Sec. 15. Minnesota Statutes 2002, section 127A.05, 212.12 subdivision 4, is amended to read: 212.13 Subd. 4. [ADMINISTRATIVE RULES.] The commissioner may 212.14 adopt new rules or amend any existing rules only under specific 212.15 authority and consistent with the requirements of chapter 14. 212.16 The commissioner may repeal any existing rules adopted by the 212.17 commissioner.Notwithstanding the provisions of section 14.05,212.18subdivision 4,The commissioner may grant a variance to rules 212.19 adopted by the commissioner upon application by a school 212.20 district for purposes of implementing experimental programs in 212.21 learning or school management. This subdivision shall not 212.22 prohibit the commissioner from making technical changes or 212.23 corrections to rules adopted by the commissioner. 212.24 Sec. 16. Minnesota Statutes 2002, section 127A.45, 212.25 subdivision 12, is amended to read: 212.26 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 212.27 hundred percent of the aid for the current fiscal year must be 212.28 paid for the following aids: reimbursement for enrollment 212.29 options transportation, according to sections 124D.03, 212.30 subdivision 8, 124D.09, subdivision 22, and 124D.10; school 212.31 lunch aid, according to section 124D.111; hearing impaired 212.32 support services aid, according to section 124D.57; and Indian 212.33 post-secondary preparation grants according to section124D.85212.34 124D.80. 212.35 (b) One hundred percent of the aid for the current fiscal 212.36 year, based on enrollment in the previous year, must be paid for 213.1 the first grade preparedness program according to section 213.2 124D.081. 213.3 Sec. 17. Minnesota Statutes 2002, section 169.435, is 213.4 amended to read: 213.5 169.435 [STATE SCHOOL BUS SAFETY ADMINISTRATION.] 213.6 Subdivision 1. [RESPONSIBILITY; DEPARTMENT OF PUBLIC 213.7 SAFETY.] The department of public safety has the primary 213.8 responsibility for school transportation safety.To oversee213.9school transportation safety, the commissioner of public safety213.10shall establish a school bus safety advisory committee according213.11to subdivision 2.The commissioner or the commissioner's 213.12 designee shall serve as state director of pupil transportation 213.13 according to subdivision 3. 213.14 Subd. 3. [PUPIL TRANSPORTATION SAFETY DIRECTOR.] (a) The 213.15 commissioner of public safety or the commissioner's designee 213.16 shall serve as pupil transportation safety director. 213.17 (b) The duties of the pupil transportation safety director 213.18 shall include: 213.19 (1) overseeing all department activities related to school 213.20 bus safety; 213.21 (2) assisting in the development, interpretation, and 213.22 implementation of laws and policies relating to school bus 213.23 safety; 213.24 (3) supervising preparation of the school bus inspection 213.25 manual; and 213.26 (4) in conjunction with the department ofchildren,213.27families, and learningeducation, assisting school districts in 213.28 developing and implementing comprehensive transportation 213.29 policies; and213.30(5) providing information requested by the school bus213.31safety advisory committee. 213.32 Sec. 18. Minnesota Statutes 2002, section 169.449, 213.33 subdivision 1, is amended to read: 213.34 Subdivision 1. [RULES.] The commissioner of public safety,213.35in consultation with the school bus safety advisory committee,213.36 shall adopt rules governing the operation of school buses used 214.1 for transportation of school children, when owned or operated by 214.2 a school or privately owned and operated under a contract with a 214.3 school, and these rules must be made a part of that contract by 214.4 reference. Each school, its officers and employees, and each 214.5 person employed under the contract is subject to these rules. 214.6 Sec. 19. Minnesota Statutes 2002, section 169.4501, 214.7 subdivision 3, is amended to read: 214.8 Subd. 3. [INSPECTION MANUAL.] The department of public 214.9 safety shall develop a school bus inspection manual based on the 214.10 national standards adopted in subdivision 1 and Minnesota 214.11 standards adopted in sections 169.4502 to 169.4504. The 214.12 Minnesota state patrol shall use the manual as the basis for 214.13 inspecting buses as provided in section 169.451.When214.14appropriate, the school bus safety advisory committee shall214.15recommend to the education committees of the legislature214.16modifications to the standards upon which the school bus214.17inspection manual is based.The department of public safety has 214.18 no rulemaking authority to alter the standards upon which school 214.19 buses are inspected. 214.20 Sec. 20. Minnesota Statutes 2002, section 169.4501, 214.21 subdivision 4, is amended to read: 214.22 Subd. 4. [VARIANCE.] The commissioner of public safety may 214.23 grant a variance to any of the school bus standards to 214.24 accommodate testing of new equipment related to school buses. A 214.25 variance from the standards must be for the sole purpose of 214.26 testing and evaluating new equipment for increased safety, 214.27 efficiency, and economy of pupil transportation. The variance 214.28 expires 18 months from the date on which it is granted unless 214.29 the commissioner specifies an earlier expiration date.The214.30school bus safety advisory committee shall annually review all214.31variances that are granted under this subdivision and consider214.32whether to recommend modifications to the Minnesota school bus214.33equipment standards based on the variances.214.34 Sec. 21. [REPEALER.] 214.35 (a) Minnesota Statutes 2002, section 126C.55, subdivision 214.36 5, is repealed. 215.1 (b) Laws 2001, First Special Session chapter 3, article 4, 215.2 sections 1 and 2; and Laws 2001, First Special Session chapter 215.3 6, article 2, section 52, are repealed. 215.4 ARTICLE 13 215.5 ACADEMIC CONTENT STANDARDS 215.6 Section 1. [120B.001] [REPEALING PROFILE OF LEARNING 215.7 STATUTES AND RULES AND RELATED STATEWIDE TESTING REQUIREMENT.] 215.8 (a) Notwithstanding sections 120B.02, 120B.031, 120B.30, 215.9 120B.31, and 120B.35, or other law to the contrary, the 215.10 commissioner of education must not implement the profile of 215.11 learning portion of the state's results-oriented graduation rule 215.12 and all rules under Minnesota Rules, chapter 3501, related to 215.13 the profile of learning portion of the state's results-oriented 215.14 graduation rule described in this chapter are repealed. 215.15 (b) The requirement under section 120B.30 for a test 215.16 aligned with the profile of learning portion of the state's 215.17 graduation standards that is administered annually to all 215.18 students in grades 3, 5, 7, 8, 10, and 11 is repealed. This 215.19 repeal does not apply to the state's basic skills tests in 215.20 reading, mathematics, and written composition. 215.21 [EFFECTIVE DATE.] Paragraph (a) is effective the day 215.22 following final enactment and applies to the 2003-2004 school 215.23 year and later. Paragraph (b) is effective immediately and 215.24 applies to the 2005-2006 school year and later. 215.25 Sec. 2. [REPLACING PROFILE OF LEARNING STATUTES AND 215.26 RULES.] 215.27 Subdivision 1. [STAKEHOLDER ADVICE ON STANDARDS.] The 215.28 commissioner of education must consider advice from at least the 215.29 following stakeholders in developing statewide rigorous core 215.30 academic standards in English, mathematics, science, and history 215.31 and geography to replace the profile of learning: 215.32 (1) parents of school-age children and members of the 215.33 public throughout the state; 215.34 (2) teachers throughout the state currently licensed and 215.35 providing instruction in English, mathematics, science, or 215.36 history and geography and licensed elementary and secondary 216.1 school principals throughout the state currently administering a 216.2 school site; 216.3 (3) currently serving members of local school boards and 216.4 charter school boards throughout the state; 216.5 (4) faculty teaching core subjects at postsecondary 216.6 institutions in Minnesota; and 216.7 (5) representatives of the Minnesota business community. 216.8 Subd. 2. [PARAMETERS FOR ACADEMIC STANDARDS.] The academic 216.9 standards must: 216.10 (1) be based on factual, objective, verifiable knowledge in 216.11 English, mathematics, science, and history and geography; 216.12 (2) be clear, concise, measurable, and grade-level 216.13 appropriate; 216.14 (3) preserve and promote fundamental American principles 216.15 stated in the Declaration of Independence and the Constitution 216.16 of the United States and other such principles as national 216.17 sovereignty, natural law, and free market enterprise; 216.18 (4) not mandate a specific teaching methodology nor include 216.19 work-based learning or any other content standard inconsistent 216.20 with this subdivision; and 216.21 (5) be assessed using tests aligned with the academic 216.22 standards established under this section. 216.23 Subd. 3. [COMMISSIONER TO PRESENT PROPOSED RULES TO THE 216.24 LEGISLATURE.] (a) The commissioner must present to the 216.25 legislature proposed rules for implementing statewide rigorous 216.26 core academic standards in English, mathematics, science, and 216.27 history and geography as follows: 216.28 (1) by April 15, 2003, present proposed rules for 216.29 implementing statewide rigorous core academic standards in 216.30 English and mathematics; 216.31 (2) present a statewide plan for students, educators, 216.32 schools, and school districts to make the transition from the 216.33 profile of learning to the standards described under this act; 216.34 (3) by March 1, 2004, present proposed rules for 216.35 implementing statewide rigorous core academic standards in 216.36 science; 217.1 (4) by March 1, 2005, present proposed rules for 217.2 implementing statewide rigorous core academic standards in 217.3 history and geography. 217.4 (b) All proposed rules the commissioner presents must 217.5 comply with the requirements of this section. 217.6 (c) A school district, no later than the 2007-2008 school 217.7 year, must incorporate into its existing locally established 217.8 graduation requirements the state graduation requirements 217.9 premised on rules proposed under this section. A school 217.10 district that incorporates these state graduation requirements 217.11 before the 2007-2008 school year must provide students who enter 217.12 the ninth grade in or before the 2004-2005 school year with the 217.13 opportunity to earn a diploma based on existing locally 217.14 established graduation requirements in effect when the students 217.15 entered grade 9. District efforts to develop, implement, or 217.16 improve instruction or curriculum as a result of the provisions 217.17 of this section must be consistent with sections 120B.10, 217.18 120B.11, and 120B.20. 217.19 Subd. 4. [RULES IMPLEMENTING READING AND MATH 217.20 STANDARDS.] The commissioner must adopt rules under section 217.21 14.388, clause (2), for implementing the statewide rigorous core 217.22 academic standards in English and mathematics described in 217.23 subdivision 3, paragraph (a), clause (1). 217.24 [EFFECTIVE DATE.] Subdivisions 1, 2, and 3 are effective 217.25 the day following final enactment. Subdivision 4 is effective 217.26 April 30, 2003. 217.27 Sec. 3. [INTERIM ALTERNATIVE.] 217.28 If the legislature does not authorize the commissioner 217.29 under section 2, subdivision 4, to adopt rules to implement 217.30 statewide rigorous core academic standards in English and 217.31 mathematics that are effective for the 2003-2004 school year, 217.32 each school district and charter school shall continue to 217.33 implement academic English and mathematics standards consistent 217.34 with Minnesota Statutes, section 120A.22, subdivision 9, until 217.35 such rules to implement statewide rigorous core academic 217.36 standards in English and mathematics are adopted. 218.1 [EFFECTIVE DATE.] This section is effective the day 218.2 following final enactment. 218.3 Sec. 4. [RULES FOR SUPPLEMENTAL SERVICE PROVIDERS.] 218.4 The commissioner of children, families, and learning may 218.5 adopt rules under Minnesota Statutes, section 14.388, 218.6 establishing criteria for identifying, annually reviewing, and 218.7 formally listing eligible supplemental education service 218.8 providers throughout Minnesota, consistent with applicable 218.9 federal requirements and Minnesota's application for 218.10 supplemental education service providers under Title 1, Part A, 218.11 of the No Child Left Behind Act. 218.12 [EFFECTIVE DATE.] This section is effective the day 218.13 following final enactment and applies to supplemental education 218.14 service providers delivering supplemental English or math 218.15 services to eligible students in the 2003-2004 school year and 218.16 later.