3rd 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 subdivisions; 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; 205A.03, 2.30 subdivisions 1, 3, 4; 205A.06, subdivision 1a; 2.31 268.052, subdivisions 2, 4; 273.138, subdivision 6; 2.32 298.28, subdivision 4; 475.61, subdivisions 1, 3, 4; 2.33 Laws 1965, chapter 705, as amended; Laws 2001, First 2.34 Special Session chapter 6, article 2, section 64; 2.35 proposing coding for new law in Minnesota Statutes, 2.36 chapters 120B; 121A; 123B; 124D; 125A; 126C; repealing 2.37 Minnesota Statutes 2002, sections 15.014, subdivision 2.38 3; 93.22, subdivision 2; 93.223, subdivision 1; 2.39 119A.01, subdivision 1; 120B.23; 121A.49; 122A.60; 2.40 122A.61; 122A.62; 122A.64; 122A.65; 123A.73, 2.41 subdivisions 7, 10, 11; 123B.05; 123B.59, subdivisions 2.42 6, 7; 123B.81, subdivision 6; 123B.90, subdivision 1; 2.43 124D.09, subdivision 15; 124D.115; 124D.1156; 124D.17; 2.44 124D.21; 124D.221; 124D.54; 124D.65, subdivision 4; 2.45 124D.84, subdivision 2; 124D.89; 124D.93; 125A.023, 2.46 subdivision 5; 125A.09; 125A.47; 125A.79, subdivision 2.47 2; 125B.11; 126C.01, subdivision 4; 126C.05, 2.48 subdivision 12; 126C.12; 126C.125; 126C.14; 126C.445; 2.49 126C.55, subdivision 5; 127A.41, subdivision 6; 2.50 144.401, subdivision 5; 169.441, subdivision 4; 2.51 239.004; Laws 1993, chapter 224, article 8, section 2.52 20, subdivision 2, as amended; Laws 2000, chapter 489, 2.53 article 2, section 36, as amended; Laws 2001, First 2.54 Special Session chapter 3, article 4, sections 1, 2; 2.55 Laws 2001, First Special Session chapter 6, article 2, 2.56 section 52; Laws 2001, First Special Session chapter 2.57 6, article 5, section 12, as amended; Minnesota Rules, 2.58 parts 3500.0600; 3520.0400; 3520.1400; 3520.3300; 2.59 3530.1500; 3530.2700; 3530.4400; 3530.4500; 3530.4700; 2.60 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 3.3 throughout the entire year.Pupils in a center may receive3.4instruction for more than or less than the daily number of hours3.5required by the rules of the commissioner of children, families,3.6and learning. However, a pupil must receive instruction each3.7year for at least the total number of instructional hours3.8required by statutes and rules.A center may petition the state 3.9 board under Minnesota Rules, part 3500.1000, for exemption from 3.10 other rules. 3.11 Sec. 2. Minnesota Statutes 2002, section 123A.18, 3.12 subdivision 2, is amended to read: 3.13 Subd. 2. [EXTENDED YEAR INSTRUCTION.] The agreement may 3.14 provide opportunities for pupils to receive instruction 3.15 throughout the entire year and for teachers to coordinate 3.16 educational opportunities and provide instruction throughout the 3.17 entire year.Pupils may receive instruction for more than or3.18less than the daily number of hours required by the rules of the3.19commissioner of children, families, and learning. However, the3.20pupil must receive instruction each year for at least the total3.21number of instructional hours required by statutes and rules.A 3.22 teacher who is employed for the extended year may develop, in 3.23 consultation with pupils and parents, individual educational 3.24 programs for not more than 125 pupils. 3.25 Sec. 3. Minnesota Statutes 2002, section 123A.73, 3.26 subdivision 3, is amended to read: 3.27 Subd. 3. [VOLUNTARY DISSOLUTION; REFERENDUM REVENUE.] As 3.28 of the effective date of the voluntary dissolution of a district 3.29 and its attachment to one or more existing districts pursuant to 3.30 section 123A.46, the authorization for all referendum revenues 3.31 previously approved by the voters of all affected districts for 3.32 those districts pursuant to section 126C.17, subdivision 9, or 3.33 its predecessor provision, is canceled. However, if all of the 3.34 territory of any independent district is included in the 3.35 enlarged district, and if the adjusted net tax capacity of 3.36 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 (a) 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 (b) The commissioner must also develop a plan for the task 43.36 force that recognizes and financially rewards outstanding 44.1 schools and school districts, where at least 40 percent of the 44.2 students tested are eligible to receive a free or reduced price 44.3 meal, that demonstrate: 44.4 (1) student achievement greater than the estimated 44.5 statewide average student achievement for that particular 44.6 assessment; or 44.7 (2) greater student achievement than schools or districts 44.8 with similar populations of students tested who are eligible to 44.9 receive a free or reduced price meal, have limited English 44.10 proficiency, receive special education programs and services and 44.11 are enrolled in the school or district for less than one school 44.12 year. 44.13 [EFFECTIVE DATE.] This section is effective the day 44.14 following final enactment and, for purposes of paragraph (b), 44.15 requires the commissioner to begin to publicly recognize 44.16 eligible schools and school districts using 2002 and 2003 44.17 reading and math basic skills test results. 44.18 Sec. 52. [APPROPRIATIONS.] 44.19 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 44.20 indicated in this section are appropriated from the general fund 44.21 to the department of education for the fiscal years designated. 44.22 Subd. 2. [GENERAL EDUCATION AID.] For general education 44.23 aid under Minnesota Statutes, section 126C.13, subdivision 4: 44.24 $4,833,731,000 ..... 2004 44.25 $5,134,951,000 ..... 2005 44.26 The 2004 appropriation includes $857,432,000 for 2003 and 44.27 $3,976,299,000 for 2004. 44.28 The 2005 appropriation includes $1,164,715,000 for 2004 and 44.29 $3,970,237,000 for 2005. 44.30 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 44.31 referendum tax base replacement aid under Minnesota Statutes, 44.32 section 126C.17, subdivision 7a: 44.33 $ 7,600,000 ..... 2004 44.34 $ 7,971,000 ..... 2005 44.35 The 2004 appropriation includes $1,419,000 for 2003 and 44.36 $6,181,000 for 2004. 45.1 The 2005 appropriation includes $1,846,000 for 2004 and 45.2 $6,125,000 for 2005. 45.3 Subd. 4. [ENROLLMENT OPTIONS TRANSPORTATION.] For 45.4 transportation of pupils attending postsecondary institutions 45.5 under Minnesota Statutes, section 124D.09, or for transportation 45.6 of pupils attending nonresident districts under Minnesota 45.7 Statutes, section 124D.03: 45.8 $50,000 ..... 2004 45.9 $55,000 ..... 2005 45.10 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 45.11 Minnesota Statutes, section 127A.49: 45.12 $2,597,000 ..... 2004 45.13 $2,931,000 ..... 2005 45.14 The 2004 appropriation includes $472,000 for 2003 and 45.15 $2,125,000 for 2004. 45.16 The 2005 appropriation includes $643,000 for 2004 and 45.17 $2,297,000 for 2005. 45.18 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 45.19 consolidating under Minnesota Statutes, section 123A.485: 45.20 $200,000 ..... 2004 45.21 $593,000 ..... 2005 45.22 The 2004 appropriation includes $35,000 for 2003 and 45.23 $165,000 for 2004. 45.24 The 2005 appropriation includes $49,000 for 2004 and 45.25 $544,000 for 2005. 45.26 Subd. 7. [TORNADO IMPACT; YELLOW MEDICINE EAST.] For a 45.27 grant to independent school district No. 2190, Yellow Medicine 45.28 East, for tornado impact declining enrollment aid: 45.29 $78,000 ..... 2004 45.30 $39,000 ..... 2005 45.31 Subd. 8. [DECLINING PUPIL AID; ALBERT LEA.] For declining 45.32 pupil aid to independent school district No. 241, Albert Lea: 45.33 $225,000 ..... 2004 45.34 $150,000 ..... 2005 45.35 Subd. 9. [DECLINING PUPIL AID; MESABI EAST.] For declining 45.36 pupil aid to independent school district No. 2711, Mesabi East: 46.1 $150,000 ..... 2004 46.2 $100,000 ..... 2005 46.3 Subd. 10. [DECLINING PUPIL AID; ROSEAU.] For declining 46.4 pupil aid to independent school district No. 682, Roseau: 46.5 $30,000 ..... 2004 46.6 $20,000 ..... 2005 46.7 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 46.8 education aid under Minnesota Statutes, sections 123B.40 to 46.9 123B.43 and 123B.87: 46.10 $14,179,000 ..... 2004 46.11 $15,568,000 ..... 2005 46.12 The 2004 appropriation includes $2,715,000 for 2003 and 46.13 $11,464,000 for 2004. 46.14 The 2005 appropriation includes $3,424,000 for 2004 and 46.15 $12,144,000 for 2005. 46.16 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 46.17 pupil transportation aid under Minnesota Statutes, section 46.18 123B.92, subdivision 9: 46.19 $20,821,000 ..... 2004 46.20 $21,978,000 ..... 2005 46.21 The 2004 appropriation includes $3,990,000 for 2003 and 46.22 $16,831,000 for 2004. 46.23 The 2005 appropriation includes $5,027,000 for 2004 and 46.24 $16,951,000 for 2005. 46.25 Sec. 53. [REPEALER.] 46.26 (a) Minnesota Statutes 2002, sections 122A.60; 122A.61; 46.27 123A.73, subdivisions 7, 10, and 11; 123B.81, subdivision 6; 46.28 124D.65, subdivision 4; 126C.01, subdivision 4; 126C.12; and 46.29 126C.125, are repealed. 46.30 (b) Minnesota Statutes 2002, section 126C.14, is repealed 46.31 effective for revenue for fiscal year 2003. 46.32 (c) Minnesota Statutes 2002, sections 122A.62; and 46.33 126C.445, are repealed effective for taxes payable in 2004. 46.34 (d) Laws 2001, First Special Session chapter 6, article 5, 46.35 section 12, as amended by Laws 2002, chapter 377, article 12, 46.36 section 15, is repealed. 47.1 (e) Laws 2000, chapter 489, article 2, section 36, as 47.2 amended by Laws 2001, First Special Session chapter 6, article 47.3 1, section 44, is repealed effective for revenue for fiscal year 47.4 2004. 47.5 ARTICLE 2 47.6 EDUCATION EXCELLENCE 47.7 Section 1. Minnesota Statutes 2002, section 120A.24, 47.8 subdivision 4, is amended to read: 47.9 Subd. 4. [REPORTS TO THE STATE.] A superintendent must 47.10 make an annual report to the commissioner ofchildren, families,47.11and learningeducation. The report must include the following 47.12 information: 47.13 (1) the number of children residing in the district 47.14 attending nonpublic schools or receiving instruction from 47.15 persons or institutions other than a public school; 47.16 (2) the number of children in clause (1) who are in 47.17 compliance with section 120A.22 and this section; and 47.18 (3) thenames, ages, and addressesnumber of childrenwhom47.19 in clause (1) who the superintendent has determined are not in 47.20 compliance with section 120A.22 and this section. 47.21 Sec. 2. Minnesota Statutes 2002, section 120A.41, is 47.22 amended to read: 47.23 120A.41 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 47.24 A school board's annual school calendar must include at 47.25 leastthree additional days of student instruction or staff47.26development training related to implementing section 120B.031,47.27subdivision 1, paragraph (f), beyondthe number of days of 47.28 student instruction the board formally adopted as its school 47.29 calendar at the beginning of the 1996-1997 school year. 47.30 [EFFECTIVE DATE.] This section is effective for the 47.31 2003-2004 school year. 47.32 Sec. 3. [120B.25] [AMERICAN HERITAGE EDUCATION.] 47.33 (a) School districts must develop and implement a policy of 47.34 grade-level instruction to assure the maintenance of freedom and 47.35 encourage and provide the opportunity for all students to read 47.36 and study America's founding documents that contribute to 48.1 understanding the principles, character, and world view of 48.2 America's founders. The documents covered under this policy are 48.3 those that have contributed to the founding or maintaining of 48.4 America's republican form of limited government, natural law, 48.5 the free-market system, and patriotism. Districts must allow a 48.6 principal or teacher to use, read, or post in a public school 48.7 classroom or building or at a public school-sponsored event any 48.8 document or document excerpt, including a document or document 48.9 excerpt that contains religious content, related to the history, 48.10 heritage, or foundation of the country or Minnesota. Examples 48.11 of such documents include, but are not limited to: 48.12 (1) the Mayflower compact; 48.13 (2) the Declaration of Independence; 48.14 (3) the Constitutions of the United States and the state of 48.15 Minnesota; 48.16 (4) the Northwest Ordinance of 1787; 48.17 (5) the Federalist Papers; 48.18 (6) the Pledge of Allegiance in its original and current 48.19 forms; 48.20 (7) the national anthem and other patriotic songs; 48.21 (8) Patrick Henry's "give me liberty or give me death" 48.22 speech, Washington's farewell address to the nation, Lincoln's 48.23 Gettysburg address, and other writings such as those of George 48.24 Washington Carver, Phyllis Wheatley, Florence Nightingale, and 48.25 Reverend Doctor Martin Luther King Jr.; 48.26 (9) the acts and published records of Congress; 48.27 (10) the United States Supreme Court decisions and records; 48.28 (11) the Atlantic Slave Trade; 48.29 (12) the Civil Rights Movement; and 48.30 (13) the Women's Suffrage Movement. 48.31 (b) Districts may not limit or restrain instruction in 48.32 American or Minnesota state history or heritage based on 48.33 religious references in documents, writings, speeches, 48.34 proclamations, or records described under paragraph (a). These 48.35 and any other materials must be used for educational purposes 48.36 and not to establish any religion. 49.1 (c) Students may voluntarily choose to read, write, share, 49.2 report, or otherwise study a topic which is religious in nature 49.3 provided other students are provided with the same opportunity 49.4 to freely choose a topic. 49.5 [EFFECTIVE DATE.] This section is effective the day 49.6 following final enactment. 49.7 Sec. 4. Minnesota Statutes 2002, section 121A.11, is 49.8 amended by adding a subdivision to read: 49.9 Subd. 3. [PLEDGE OF ALLEGIANCE.] (a) All public and 49.10 charter school students shall recite the pledge of allegiance to 49.11 the flag of the United States of America one or more times each 49.12 week. The recitation shall be conducted: 49.13 (1) by each individual classroom teacher or the teacher's 49.14 surrogate; or 49.15 (2) over a school intercom system by a person designated by 49.16 the school principal or other person having administrative 49.17 control over the school. 49.18 A local school board or a charter school board of directors 49.19 annually, by majority vote, may waive this requirement. 49.20 (b) Any student or teacher who objects to reciting the 49.21 pledge must be excused from participating without penalty. 49.22 (c) A local school board or a charter school board of 49.23 directors that waives the requirement to recite the pledge of 49.24 allegiance under paragraph (a) may adopt a district or school 49.25 policy regarding the reciting of the pledge of allegiance. 49.26 [EFFECTIVE DATE.] This section is effective the day 49.27 following final enactment. 49.28 Sec. 5. Minnesota Statutes 2002, section 121A.11, is 49.29 amended by adding a subdivision to read: 49.30 Subd. 4. [INSTRUCTION.] Unless this requirement is waived 49.31 annually by a majority vote of the school board, a school 49.32 district must instruct students in the proper etiquette toward, 49.33 correct display of, and respect for the flag, and in patriotic 49.34 exercises. The instruction is recommended to be part of the 49.35 district's fifth grade social studies curriculum. 49.36 [EFFECTIVE DATE.] This section is effective the day 50.1 following final enactment. Each school district must begin the 50.2 instruction required under this section no later than the 50.3 2004-2005 school year. 50.4 Sec. 6. Minnesota Statutes 2002, section 121A.23, 50.5 subdivision 1, is amended to read: 50.6 Subdivision 1. [SEXUALLY TRANSMITTED INFECTIONS AND 50.7 DISEASES PROGRAM.] The commissioner ofchildren, families, and50.8learningeducation, in consultation with the commissioner of 50.9 health, shall assist districts in developing and implementing a 50.10 program to prevent and reduce the risk of sexually transmitted 50.11 infections and diseases, including but not exclusive to human 50.12 immune deficiency virus and human papilloma virus. Each 50.13 district must have a program that includes at least: 50.14 (1) planning materials, guidelines, and other technically 50.15 accurate and updated information; 50.16 (2) a comprehensive, technically accurate, and updated 50.17 curriculum that includes helping students to abstain from sexual 50.18 activity until marriage; 50.19 (3) cooperation and coordination among districts and SCs; 50.20 (4) a targeting of adolescents, especially those who may be 50.21 at high risk of contracting sexually transmitted infections and 50.22 diseases, for prevention efforts; 50.23 (5) involvement of parents and other community members; 50.24 (6) in-service training for appropriate district staff and 50.25 school board members; 50.26 (7) collaboration with state agencies and organizations 50.27 having a sexually transmitted infection and disease prevention 50.28 or sexually transmitted infection and disease risk reduction 50.29 program; 50.30 (8) collaboration with local community health services, 50.31 agencies and organizations having a sexually transmitted 50.32 infection and disease prevention or sexually transmitted 50.33 infection and disease risk reduction program; and 50.34 (9) participation by state and local student organizations. 50.35The department may provide assistance at a neutral site to50.36a nonpublic school participating in a district's program.51.1District programs must not conflict with the health and wellness51.2curriculum developed under Laws 1987, chapter 398, article 5,51.3section 2, subdivision 7.51.4If a district fails to develop and implement a program to51.5prevent and reduce the risk of sexually transmitted infection51.6and disease, the department must assist the service cooperative51.7in the region serving that district to develop or implement the51.8program.51.9 Sec. 7. Minnesota Statutes 2002, section 121A.23, is 51.10 amended by adding a subdivision to read: 51.11 Subd. 1a. [ABSTINENCE UNTIL MARRIAGE.] A school district 51.12 that complies with subdivision 1 must provide students with a 51.13 curriculum on and instruction in abstinence until marriage 51.14 premised on risk avoidance. 51.15 [EFFECTIVE DATE.] This section is effective the day 51.16 following final enactment. 51.17 Sec. 8. [121A.24] [NOTICE REQUIREMENTS FOR STUDENT SURVEYS 51.18 AND SIMILAR INSTRUMENTS.] 51.19 (a) A school district must obtain prior written informed 51.20 consent from a student's parent or guardian before administering 51.21 an academic or nonacademic student survey, assessment, analysis, 51.22 evaluation, or similar instrument that reveals information about 51.23 the student or the student's family concerning: 51.24 (1) political affiliations or beliefs; 51.25 (2) mental or psychological problems; 51.26 (3) sexual behavior or attitudes; 51.27 (4) illegal, antisocial, self-incriminating, or demeaning 51.28 behavior; 51.29 (5) critical appraisals of another individual with whom a 51.30 student has a close family relationship; 51.31 (6) legally recognized privileged or analogous 51.32 relationships, such as those with a lawyer, physician, or 51.33 minister; 51.34 (7) religious practices, affiliations, or beliefs; or 51.35 (8) income or other income-related information required by 51.36 law to determine eligibility to participate in or receive 52.1 financial assistance under a program. 52.2 (b) When asking a parent or guardian to provide informed 52.3 written consent, the school district must: 52.4 (1) make a copy of the instrument readily accessible to the 52.5 parent or guardian at a convenient location and reasonable time; 52.6 and 52.7 (2) specifically identify the information in paragraph (a) 52.8 that will be revealed through the instrument. 52.9 The district must request the consent of the parent or guardian 52.10 at least 14 days before administering the instrument. 52.11 (c) A parent or guardian seeking to compel a school 52.12 district to comply with this section has available the civil 52.13 remedies under section 13.08, subdivision 4, in addition to 52.14 other remedies provided by law. 52.15 [EFFECTIVE DATE.] This section is effective the day 52.16 following final enactment. 52.17 Sec. 9. Minnesota Statutes 2002, section 121A.50, is 52.18 amended to read: 52.19 121A.50 [JUDICIAL REVIEW.] 52.20 The decision of thecommissioner of children, families, and52.21learningschool district made under sections 121A.40 to 121A.56 52.22 is subject to judicial reviewunder sections 14.63 to 14.69by 52.23 writ of certiorari to the court of appeals. The school district 52.24 may implement its decision during the appeal.The decision of52.25the commissioner is stayed pending an appeal under this section.52.26 [EFFECTIVE DATE.] This section is effective the day 52.27 following final enactment and applies to all appeals of school 52.28 district decisions made after that date. 52.29 Sec. 10. Minnesota Statutes 2002, section 121A.55, is 52.30 amended to read: 52.31 121A.55 [POLICIES TO BE ESTABLISHED.] 52.32 (a) The commissioner ofchildren, families, and52.33learningeducation shall promulgate guidelines to assist each 52.34 school board. Each school board shall establish uniform 52.35 criteria for dismissal and adopt written policies and rules to 52.36 effectuate the purposes of sections 121A.40 to 121A.56. The 53.1 policies shall emphasize preventing dismissals through early 53.2 detection of problems and shall be designed to address students' 53.3 inappropriate behavior from recurring. The policies shall 53.4 recognize the continuing responsibility of the school for the 53.5 education of the pupil during the dismissal period. The 53.6 alternative educational services, if the pupil wishes to take 53.7 advantage of them, must be adequate to allow the pupil to make 53.8 progress towards meeting the graduation standards adopted under 53.9 section 120B.02 and help prepare the pupil for readmission. 53.10 (b) Consistent with its policies adopted under paragraph 53.11 (a), a school district, in consultation with a student's parent 53.12 or guardian, may assign a student to an area learning center or 53.13 provide other alternative educational services under section 53.14 121A.41, subdivision 11. An area learning center under section 53.15 123A.05 may not prohibit an expelled or excluded pupil from 53.16 enrolling solely because a district expelled or excluded the 53.17 pupil. The board of the area learning center may use the 53.18 provisions of the Pupil Fair Dismissal Act to exclude a pupil or 53.19 to require an admission plan. 53.20(c) The commissioner shall actively encourage and assist53.21school districts to cooperatively establish alternative53.22educational services within school buildings or at alternative53.23program sites that offer instruction to pupils who are dismissed53.24from school for willfully engaging in dangerous, disruptive, or53.25violent behavior, including for possessing a firearm in a school53.26zone.53.27 [EFFECTIVE DATE.] This section is effective the day 53.28 following final enactment. 53.29 Sec. 11. Minnesota Statutes 2002, section 121A.64, is 53.30 amended to read: 53.31 121A.64 [NOTIFICATION; TEACHERS' LEGITIMATE EDUCATIONAL 53.32 INTEREST.] 53.33 (a) A classroom teacher has a legitimate educational 53.34 interest in knowing which students placed in the teacher's 53.35 classroom have a history of violent behavior and must be 53.36 notified before such students are placed in the teacher's 54.1 classroom. 54.2 (b) Representatives of the school board and the exclusive 54.3 representative of the teachers shall discuss issues related to 54.4notification prior to placementthe model policy on student 54.5 records adopted under Laws 1999, chapter 241, article 9, section 54.6 50, and any modifications adopted under this act for notifying 54.7 classroom teachers and other school district employees having a 54.8 legitimate educational interest in knowing about students with a 54.9 history of violent behavior placed in classroomsof students54.10with histories of violent behavior and any. The representatives 54.11 of the school board and the exclusive representative of the 54.12 teachers also may discuss the need for intervention services or 54.13 conflict resolution or training for staffin these casesrelated 54.14 to placing students with a history of violent behavior in 54.15 teachers' classrooms. 54.16 [EFFECTIVE DATE.] This section is effective for the 54.17 2003-2004 school year and later. 54.18 Sec. 12. Minnesota Statutes 2002, section 122A.414, is 54.19 amended by adding a subdivision to read: 54.20 Subd. 3. [REPORT.] Participating districts and school 54.21 sites must report on the implementation and effectiveness of the 54.22 alternative teacher compensation plan, particularly addressing 54.23 each requirement under subdivision 2 and make biennial 54.24 recommendations by January 1 to their school boards. The school 54.25 boards shall transmit a summary of the findings and 54.26 recommendations of their district to the commissioner. 54.27 Sec. 13. Minnesota Statutes 2002, section 122A.415, 54.28 subdivision 1, is amended to read: 54.29 Subdivision 1. [AID AMOUNT.] (a) A school district that 54.30 meets the conditions of section 122A.414 and submits an 54.31 application approved by the commissioner is eligible for 54.32 alternative compensation aid. The commissioner must consider 54.33 only applications submitted jointly by a school district and the 54.34 exclusive representative of the teachers for participation in 54.35 the program. The application must contain a formally adopted 54.36 collective bargaining agreement, memorandum of understanding, or 55.1 other binding agreement that implements an alternative teacher 55.2 professional pay system consistent with section 122A.414 and 55.3 includes all teachers in a district, all teachers at a school 55.4 site, or at least 25 percent of the teachers in a district. The 55.5 commissioner, in approving applications, may give preference to 55.6 applications involving entire districts or sitesin approving55.7applicationsor to applications that align measures of teacher 55.8 performance with student academic achievement and progress under 55.9 section 120B.35, subdivision 1. 55.10 (b) Alternative compensation aid for a qualifying school 55.11 district, site, or portion of a district or school site is as 55.12 follows: 55.13 (1) for a school district in which the school board and the 55.14 exclusive representative of the teachers agree to place all 55.15 teachers in the district or at the site on the alternative 55.16 compensation schedule, alternative compensation aid equals $150 55.17 times the district's or the site's number of pupils enrolled on 55.18 October 1 of the previous fiscal year; or 55.19 (2) for a district in which the school board and the 55.20 exclusive representative of the teachers agree that at least 25 55.21 percent of the district's licensed teachers will be paid on the 55.22 alternative compensation schedule, alternative compensation aid 55.23 equals $150 times the percentage of participating teachers times 55.24 the district's number of pupils enrolled as of October 1 of the 55.25 previous fiscal year. 55.26 Sec. 14. Minnesota Statutes 2002, section 122A.415, 55.27 subdivision 3, is amended to read: 55.28 Subd. 3. [AID TIMING.] (a) Districts or sites with 55.29 approved applications must receive alternative compensation aid 55.30 for each school year that the district or site participates in 55.31 the program as described in this subdivision. Districts or 55.32 sites with applications received by the commissioner before June 55.33 1 of the first year of a two-year contract shall receive 55.34 alternative compensation aid for both years of the contract. 55.35 Districts or sites with applications received by the 55.36 commissioner after June 1 of the first year of a two-year 56.1 contract shall receive alternative compensation aid only for the 56.2 second year of the contract. A qualifying district or site that 56.3 received alternative compensation aid for the previous fiscal 56.4 year must receive at least an amount equal to the lesser of the 56.5 amount it received for the previous fiscal year or its 56.6 proportionate share of the previous year's appropriation if the 56.7 district or site submits a timely application and the 56.8 commissioner determines that the district or site continues to 56.9 implement an alternative teacher professional pay system, 56.10 consistent with its application under this section. The 56.11 commissioner must approve initial applications for school 56.12 districts qualifying under subdivision 1, paragraph (b), clause 56.13 (1), by January 15 of each year. If any money remains, the 56.14 commissioner must approve aid amounts for school districts 56.15 qualifying under subdivision 1, paragraph (b), clause (2), by 56.16 February 15 of each year. 56.17 (b) The commissioner shall select applicants that qualify 56.18 for this program, notify school districts and school sites about 56.19 the program, develop and disseminate application materials, and 56.20 carry out other activities needed to implement this section. 56.21 Sec. 15. Minnesota Statutes 2002, section 122A.63, 56.22 subdivision 3, is amended to read: 56.23 Subd. 3. [REVIEW AND COMMENT.] The commissioner must 56.24 submit the joint application to theMinnesotaAmerican Indian 56.25scholarshipeducation committee for review and comment. 56.26 Sec. 16. Minnesota Statutes 2002, section 123B.02, 56.27 subdivision 14, is amended to read: 56.28 Subd. 14. [EMPLOYEES; CONTRACTS FOR SERVICES.] (a) The 56.29 board may employ and discharge necessary employees and may 56.30 contract for other services. Notwithstanding any other law to 56.31 the contrary, it shall be an inherent managerial right of the 56.32 board to unilaterally contract or subcontract for services 56.33 unless the power to contract or subcontract is specifically 56.34 prohibited by collective bargaining agreements with all units of 56.35 affected employees. 56.36 (b) Notwithstanding any law to the contrary, when the 57.1 exclusive representative and the employer have been in 57.2 negotiation of a contract or subcontract for the services of 57.3 nonteachers as set out in the collective bargaining agreement 57.4 and have participated in mediation over a period of at least 45 57.5 days, either party may declare an impasse and terminate the 57.6 negotiation and the collective bargaining agreement shall 57.7 conclusively be determined to be expired. After expiration of 57.8 the collective bargaining agreement occurs under this paragraph, 57.9 the employer may contract with any other persons and entities 57.10 for the services. 57.11 (c) For the purposes of paragraph (b), the mediation period 57.12 begins on the day following receipt by the commissioner of a 57.13 request for mediation. 57.14 (d) Paragraph (b) applies to all agreements between the 57.15 board and collective bargaining representatives except for 57.16 teachers as defined in section 122A.41, subdivision 1, paragraph 57.17 (a). 57.18 [EFFECTIVE DATE.] This section is effective for contracts 57.19 negotiated and entered into on or after July 1, 2003, and 57.20 contracts beginning negotiation, but not entered into, before 57.21 July 1, 2003. 57.22 Sec. 17. [123B.025] [SCHOOL SPONSORSHIP AND ADVERTISING 57.23 REVENUE.] 57.24 Subdivision 1. [BOARD AUTHORITY; CONTRACTS.] A school 57.25 board may enter into a contract with advertisers, sponsors, or 57.26 others regarding advertising and naming rights to school 57.27 facilities and vehicles under the general charge of the 57.28 district. A contract authorized under this section must be 57.29 approved by the school board. The powers granted to a school 57.30 board under this section are in addition to any other authority 57.31 the school district may have. 57.32 Subd. 2. [AUTHORIZED AGREEMENTS.] A school district may 57.33 enter into a contract to: 57.34 (1) lease the naming rights for school facilities, 57.35 including school buildings, ice arenas, and stadiums; 57.36 (2) sell advertising on or in the facilities listed in 58.1 clause (1); 58.2 (3) sell advertising on or in school buses subject to the 58.3 content restrictions of section 123B.93; and 58.4 (4) otherwise enter into an agreement with a sponsoring 58.5 agent. 58.6 Subd. 3. [REVENUE USES.] Revenue generated under this 58.7 section must be used according to a plan specified by the school 58.8 board. 58.9 Sec. 18. Minnesota Statutes 2002, section 123B.36, 58.10 subdivision 1, is amended to read: 58.11 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 58.12 purposes of this subdivision, "home school" means a home school 58.13 as defined in sections 120A.22 and 120A.24 with five or fewer 58.14 students receiving instruction. 58.15 (b) A school board is authorized to require payment of fees 58.16 in the following areas: 58.17 (1) in any program where the resultant product, in excess 58.18 of minimum requirements and at the pupil's option, becomes the 58.19 personal property of the pupil; 58.20 (2) admission fees or charges for extra curricular 58.21 activities, where attendance is optional and where the admission 58.22 fees or charges a student must pay to attend or participate in 58.23 an extracurricular activity is the same for all students, 58.24 regardless of whether the student is enrolled in a public or a 58.25 home school; 58.26 (3) a security deposit for the return of materials, 58.27 supplies, or equipment; 58.28 (4) personal physical education and athletic equipment and 58.29 apparel, although any pupil may personally provide it if it 58.30 meets reasonable requirements and standards relating to health 58.31 and safety established by the board; 58.32 (5) items of personal use or products that a student has an 58.33 option to purchase such as student publications, class rings, 58.34 annuals, and graduation announcements; 58.35 (6) fees specifically permitted by any other statute, 58.36 including but not limited to section 171.05, subdivision 2; 59.1 provided (i) driver education fees do not exceed the actual cost 59.2 to the school and school district of providing driver education, 59.3 and (ii) the driver education courses are open to enrollment to 59.4 persons between the ages of 15 and 18 who reside or attend 59.5 school in the school district; 59.6 (7) field trips considered supplementary to a district 59.7 educational program; 59.8 (8) any authorized voluntary student health and accident 59.9 benefit plan; 59.10 (9) for the use of musical instruments owned or rented by 59.11 the district, a reasonable rental fee not to exceed either the 59.12 rental cost to the district or the annual depreciation plus the 59.13 actual annual maintenance cost for each instrument; 59.14 (10) transportation of pupils to and from extra curricular 59.15 activities conducted at locations other than school, where 59.16 attendance is optional, and transportation of charter school 59.17 students participating in extracurricular activities conducted 59.18 in the resident school district under section 123B.49, 59.19 subdivision 4, paragraph (a), which must be charged to the 59.20 charter school; 59.21 (11) transportation to and from school of pupils living 59.22 within two miles from school and all other transportation 59.23 services not required by law. If a district charges fees for 59.24 transportation of pupils, it must establish guidelines for that 59.25 transportation to ensure that no pupil is denied transportation 59.26 solely because of inability to pay; 59.27 (12) motorcycle classroom education courses conducted 59.28 outside of regular school hours; provided the charge must not 59.29 exceed the actual cost of these courses to the school district; 59.30 (13) transportation to and from post-secondary institutions 59.31 for pupils enrolled under the post-secondary enrollment options 59.32 program under section 123B.88, subdivision 22. Fees collected 59.33 for this service must be reasonable and must be used to reduce 59.34 the cost of operating the route. Families who qualify for 59.35 mileage reimbursement under section 124D.09, subdivision 22, may 59.36 use their state mileage reimbursement to pay this fee. If no 60.1 fee is charged, districts must allocate costs based on the 60.2 number of pupils riding the route. 60.3 [EFFECTIVE DATE.] This section is effective for the 60.4 2003-2004 school year and later. 60.5 Sec. 19. Minnesota Statutes 2002, section 123B.49, 60.6 subdivision 4, is amended to read: 60.7 Subd. 4. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 60.8 (a) The board may take charge of and control all extracurricular 60.9 activities of the teachers and children of the public schools in 60.10 the district. Extracurricular activities means all direct and 60.11 personal services for pupils for their enjoyment that are 60.12 managed and operated under the guidance of an adult or staff 60.13 member. The board shall allow all resident pupils receiving 60.14 instruction in a home school as defined in section 123B.36, 60.15 subdivision 1, paragraph (a), and all resident pupils receiving 60.16 instruction in a charter school as defined in section 124D.10 to 60.17 be eligible to fully participate in extracurricular activities 60.18 on the same basis as public school students enrolled in the 60.19 district's schools. Charter school students participating in 60.20 extracurricular activities must meet the academic and student 60.21 conduct requirements of the charter school and resident district. 60.22 (b) Extracurricular activities have all of the following 60.23 characteristics: 60.24 (1) they are not offered for school credit nor required for 60.25 graduation; 60.26 (2) they are generally conducted outside school hours, or 60.27 if partly during school hours, at times agreed by the 60.28 participants, and approved by school authorities; 60.29 (3) the content of the activities is determined primarily 60.30 by the pupil participants under the guidance of a staff member 60.31 or other adult. 60.32 (c) If the board does not take charge of and control 60.33 extracurricular activities, these activities shall be 60.34 self-sustaining with all expenses, except direct salary costs 60.35 and indirect costs of the use of school facilities, met by dues, 60.36 admissions, or other student fund-raising events. The general 61.1 fund must reflect only those salaries directly related to and 61.2 readily identified with the activity and paid by public funds. 61.3 Other revenues and expenditures for extra curricular activities 61.4 must be recorded according to the "Manual of Instruction for 61.5 Uniform Student Activities Accounting for Minnesota School 61.6 Districts and Area Vocational-Technical Colleges." 61.7 Extracurricular activities not under board control must have an 61.8 annual financial audit and must also be audited annually for 61.9 compliance with this section. 61.10 (d) If the board takes charge of and controls 61.11 extracurricular activities, any or all costs of these activities 61.12 may be provided from school revenues and all revenues and 61.13 expenditures for these activities shall be recorded in the same 61.14 manner as other revenues and expenditures of the district. 61.15 (e) If the board takes charge of and controls 61.16 extracurricular activities, the teachers or pupils in the 61.17 district must not participate in such activity, nor shall the 61.18 school name or any allied name be used in connection therewith, 61.19 except by consent and direction of the board. 61.20 (f) School districts may charge charter schools their 61.21 proportional share of the direct and indirect costs of the 61.22 extracurricular activities not covered by student fees under 61.23 section 123B.36, subdivision 1. 61.24 [EFFECTIVE DATE.] This section is effective for the 61.25 2003-2004 school year and later. 61.26 Sec. 20. Minnesota Statutes 2002, section 123B.88, 61.27 subdivision 2, is amended to read: 61.28 Subd. 2. [VOLUNTARY SURRENDER OF TRANSPORTATION 61.29 PRIVILEGES.] The parent or guardian of asecondarystudent may 61.30 voluntarily surrender thesecondarystudent's to and from school 61.31 transportation privileges granted under subdivision 1. 61.32 Sec. 21. Minnesota Statutes 2002, section 124D.081, is 61.33 amended by adding a subdivision to read: 61.34 Subd. 9. [RESERVE ACCOUNT.] First grade preparedness 61.35 revenue must be placed in a reserve account within the general 61.36 fund and may only be used for first grade preparedness programs 62.1 at qualifying school sites. 62.2 Sec. 22. Minnesota Statutes 2002, section 124D.09, 62.3 subdivision 9, is amended to read: 62.4 Subd. 9. [ENROLLMENT PRIORITY.] A post-secondary 62.5 institution shall give priority to its post-secondary students 62.6 when enrolling 11th and 12th grade pupils in its courses. A 62.7 post-secondary institution may provide information about its 62.8 programs to a secondary school or to a pupil or parent, but it 62.9 may not advertise or otherwise recruit or solicit the 62.10 participationon financial grounds,of secondary pupils to 62.11 enroll in its programs on financial grounds. An institution 62.12 must not enroll secondary pupils, for post-secondary enrollment 62.13 options purposes, in remedial, developmental, or other courses 62.14 that are not college level. Once a pupil has been enrolled in a 62.15 post-secondary course under this section, the pupil shall not be 62.16 displaced by another student. 62.17 Sec. 23. Minnesota Statutes 2002, section 124D.09, 62.18 subdivision 10, is amended to read: 62.19 Subd. 10. [COURSES ACCORDING TO AGREEMENTS.] An eligible 62.20 pupil, according to subdivision45, may enroll in a 62.21 nonsectarian course taught by a secondary teacher or a 62.22 post-secondary faculty member and offered at a secondary school, 62.23 or another location, according to an agreement between a public 62.24 school board and the governing body of an eligible public 62.25 post-secondary system or an eligible private post-secondary 62.26 institution, as defined in subdivision 3. All provisions of 62.27 this section shall apply to a pupil, public school board, 62.28 district, and the governing body of a post-secondary 62.29 institution, except as otherwise provided. 62.30 Sec. 24. Minnesota Statutes 2002, section 124D.09, 62.31 subdivision 16, is amended to read: 62.32 Subd. 16. [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 62.33 ACCORDING TO AGREEMENTS.] (a) The agreement between a board and 62.34 the governing body of a public post-secondary system or private 62.35 post-secondary institution shall set forth the payment amounts 62.36 and arrangements, if any, from the board to the post-secondary 63.1 institution. No payments shall be made by the department 63.2 according to subdivision1413 or 15. For the purpose of 63.3 computing state aids for a district, a pupil enrolled according 63.4 to subdivision 10 shall be counted in the average daily 63.5 membership of the district as though the pupil were enrolled in 63.6 a secondary course that is not offered in connection with an 63.7 agreement. Nothing in this subdivision shall be construed to 63.8 prohibit a public post-secondary system or private 63.9 post-secondary institution from receiving additional state 63.10 funding that may be available under any other law. 63.11 (b) If a course is provided under subdivision 10, offered 63.12 at a secondary school, and taught by a secondary teacher, the 63.13 post-secondary system or institution must not require a payment 63.14 from the school board that exceeds the cost to the 63.15 post-secondary institution that is directly attributable to 63.16 providing that course. 63.17 Sec. 25. Minnesota Statutes 2002, section 124D.09, 63.18 subdivision 20, is amended to read: 63.19 Subd. 20. [TEXTBOOKS; MATERIALS.] All textbooks and 63.20 equipment provided to a pupil, and paid for under subdivision 63.21 13, are the property of the pupil'sschool district of residence63.22 postsecondary institution. Each pupil is required to return all 63.23 textbooks and equipment to thedistrictpostsecondary 63.24 institution after the course has ended. 63.25 Sec. 26. [124D.095] [DISTANCE EDUCATION OPTION.] 63.26 Subdivision 1. [CITATION.] This section may be cited as 63.27 the "Distance Education Option Act." 63.28 Subd. 2. [DEFINITIONS.] For purposes of this section, the 63.29 following terms have the meanings given them. 63.30 (a) "Distance education" is an interactive course or 63.31 program that delivers instruction to a student by video, audio, 63.32 computer, or multimedia communication; is combined with other 63.33 traditional delivery methods that include frequent student 63.34 assessment and actual teacher contact time; and meets or exceeds 63.35 state academic standards. 63.36 (b) "Distance education provider" is a school district, an 64.1 organization of two or more school districts operating under a 64.2 joint powers agreement, or a charter school located in Minnesota 64.3 that provides distance education to students. 64.4 (c) "Student" is a Minnesota resident enrolled in a school 64.5 under section 120A.22, subdivision 4, in kindergarten through 64.6 grade 12. 64.7 (d) "Distance education student" is a student enrolled in 64.8 distance education delivered by a distance education provider 64.9 under paragraph (b). 64.10 Subd. 3. [AUTHORIZATION; NOTICE; LIMITATIONS ON 64.11 ENROLLMENT.] (a) A student, or the parent or guardian of a 64.12 student age 17 or younger, may apply to a distance education 64.13 provider to enroll the student in distance education. No school 64.14 district or charter school may prohibit a student from applying 64.15 to enroll in distance education. A distance education provider 64.16 that accepts a student under this section must, within ten days, 64.17 notify the student and the student's school and school district 64.18 if the student is not enrolled in the school district or charter 64.19 school delivering the distance education. The notice must 64.20 report the student's course or program and hours of instruction. 64.21 (b) A distance education provider must notify the 64.22 commissioner that it is delivering distance education and report 64.23 the number of distance education students it is accepting and 64.24 the distance education courses and programs it is delivering. 64.25 (c) A distance education provider may limit enrollment if 64.26 the provider's school board or board of directors adopts by 64.27 resolution specific standards for accepting and rejecting 64.28 students' applications. 64.29 (d) An enrolling district may reduce a distance education 64.30 student's regular classroom instructional membership in 64.31 proportion to the student's membership in distance education 64.32 courses. 64.33 Subd. 4. [DISTANCE EDUCATION PARAMETERS.] (a) A distance 64.34 education student must receive academic credit for successfully 64.35 completing the requirements of a distance education course or 64.36 program. Secondary credits granted to a distance education 65.1 student must be counted toward the graduation and subject area 65.2 requirements of the school district or charter school in which 65.3 the student is enrolled. 65.4 (b) A distance education student may: 65.5 (1) enroll during a single school year in a maximum of 12 65.6 semester-long courses or their equivalent delivered by a 65.7 distance education provider or the school district or charter 65.8 school in which the distance education student is currently 65.9 enrolled; 65.10 (2) complete course work at a grade level that is different 65.11 from the student's current grade level; and 65.12 (3) enroll in additional courses with the distance 65.13 education provider under a separate agreement that includes 65.14 terms for payment of any tuition or course fees. 65.15 (c) A distance education student has the same access to the 65.16 computer hardware and education software available in a school 65.17 as all other students enrolled in the district or charter 65.18 school. A distance education provider must assist a distance 65.19 education student whose family qualifies for the education tax 65.20 credit under section 290.0674 to acquire computer hardware and 65.21 educational software for distance learning purposes. 65.22 Subd. 5. [PARTICIPATION IN EXTRACURRICULAR ACTIVITIES.] A 65.23 distance education student may participate in the 65.24 extracurricular activities of the charter school or school 65.25 district in which the student is currently enrolled on the same 65.26 basis as other students enrolled in the charter school or school 65.27 district. 65.28 Subd. 6. [INFORMATION.] School districts and charter 65.29 schools must make available information about distance education 65.30 to all interested people. 65.31 Subd. 7. [FINANCIAL ARRANGEMENTS.] (a) For a distance 65.32 education student enrolled in a distance education course, the 65.33 department must calculate average daily membership and make 65.34 payments according to this subdivision. 65.35 (b) The initial distance education average daily membership 65.36 equals 1/12 for each semester course or a proportionate amount 66.1 for courses of different lengths. The adjusted distance 66.2 education average daily membership equals the initial distance 66.3 education average daily membership times .88. 66.4 (c) No distance education average daily membership shall be 66.5 generated if: (i) the distance education student officially 66.6 withdraws from the distance education course during the first 15 66.7 days of the course, or (ii) the distance education student is 66.8 enrolled in distance education provided by the district or 66.9 charter school in which the student is currently enrolled and 66.10 the student was enrolled in a Minnesota public school for the 66.11 school year before the school year in which the student first 66.12 enrolled in distance education. 66.13 (d) Distance education average daily membership under this 66.14 subdivision for a distance education student currently enrolled 66.15 in a Minnesota public school and who was enrolled in a Minnesota 66.16 public school for the school year before the school year in 66.17 which the student first enrolled in distance education shall be 66.18 used only for the computation of average daily membership 66.19 according to section 126C.05, subdivision 19, paragraph (a), 66.20 clause (ii), and for the computation of distance education aid 66.21 according to section 126C.24. 66.22 (e) Distance education average daily membership under this 66.23 subdivision for distance education students not included in 66.24 paragraph (b) or (c) shall be used only for the computation of 66.25 average daily membership according to section 126C.05, 66.26 subdivision 19, paragraph (a), clause (ii), and for the 66.27 computation of payments under paragraphs (f) and (g). 66.28 (f) Subject to the limitations in subdivision 8, the 66.29 department must pay a distance education provider an amount 66.30 equal to the product of the adjusted distance education average 66.31 daily membership for students under paragraph (e) times the 66.32 student grade level weighting under section 126C.05, subdivision 66.33 1, times the formula allowance. 66.34 (g) The department must pay each distance education 66.35 provider 100 percent of the amount in paragraph (f) within 45 66.36 days of receiving initial enrollment information each quarter or 67.1 semester. If a change in enrollment occurs during a semester, 67.2 the distance education provider must report the change to the 67.3 department at the time it submits the enrollment information for 67.4 the next quarter or semester. 67.5 Subd. 8. [PAYMENT PRIORITY.] (a) To the extent funds are 67.6 available, the commissioner must pay a distance education 67.7 provider according to subdivision 7, in the order in which a 67.8 distance education provider notifies the commissioner under 67.9 subdivision 3, paragraph (b), that it is delivering distance 67.10 education. The distance education provider must submit to the 67.11 commissioner any student information necessary to process 67.12 payments under this section. 67.13 (b) Before paying other distance education providers under 67.14 paragraph (a), the commissioner must pay providers that 67.15 delivered distance education in fiscal year 2003. A provider's 67.16 qualifying number of pupils may not exceed 110 percent of the 67.17 previous year's pupils. A provider that qualifies under this 67.18 paragraph may also submit an application for funding for 67.19 additional pupils under paragraph (a). 67.20 [EFFECTIVE DATE.] This section is effective for the 67.21 2003-2004 school year and later. 67.22 Sec. 27. Minnesota Statutes 2002, section 124D.10, 67.23 subdivision 2a, is amended to read: 67.24 Subd. 2a. [CHARTER SCHOOL ADVISORY COUNCIL.] (a) A charter 67.25 school advisory council is established under section 67.26 15.059 except that the term for each council member shall be 67.27 three years. The advisory council is composed of seven members 67.28 from throughout the state who have demonstrated experience with 67.29 or interest in charter schools. The members of the council 67.30 shall be appointed by the commissioner. The advisory council 67.31 shall bring to the attention of the commissioner any matters 67.32 related to charter schools that the council deems necessary and 67.33 shall: 67.34 (1) encourage school boards to make full use of charter 67.35 school opportunities; 67.36 (2) encourage the creation of innovative schools; 68.1 (3) provide leadership and support for charter school 68.2 sponsors to increase the innovation in and the effectiveness, 68.3 accountability, and fiscal soundness of charter schools; 68.4 (4) serve an ombudsman function in facilitating the 68.5 operations of new and existing charter schools; 68.6 (5) promote timely financial management training for newly 68.7 elected members of a charter school board of directors and 68.8 ongoing training for other members of a charter school board of 68.9 directors; and 68.10 (6)review charter school applications and recommend68.11approving or disapproving the applications; and68.12(7)facilitate compliance with auditing and other reporting 68.13 requirements. The advisory council shall refer all its 68.14 proposals to the commissioner who shall provide time for reports 68.15 from the council. 68.16 (b) The charter school advisory council under this 68.17 subdivision expires June 30,20032007. 68.18 Sec. 28. Minnesota Statutes 2002, section 124D.10, 68.19 subdivision 3, is amended to read: 68.20 Subd. 3. [SPONSOR.] A school board; intermediate school 68.21 district school board; education district organized under 68.22 sections 123A.15 to 123A.19; charitable organization under 68.23 section 501(c)(3) of the Internal Revenue Code of 1986 that is a 68.24 member of the Minnesota council of nonprofits or the Minnesota 68.25 council on foundations, registered with the attorney general's 68.26 office, and reports an end-of-year fund balance of at least 68.27 $2,000,000; Minnesota private college that grants two- or 68.28 four-year degrees and is registered with the higher education 68.29 services office under chapter 136A; community college, state 68.30 university, or technical college, governed by the board of 68.31 trustees of the Minnesota state colleges and universities; or 68.32 the University of Minnesota may sponsor one or more charter 68.33 schools. A nonprofit corporation subject to chapter 317A, 68.34 described in section 317A.905, and exempt from federal income 68.35 tax under section 501(c)(6) of the Internal Revenue Code of 68.36 1986, may sponsor one or more charter schools if the nonprofit 69.1 corporation has existed for at least 25 years. 69.2 [EFFECTIVE DATE.] This section is effective for the 69.3 2003-2004 school year and later. 69.4 Sec. 29. Minnesota Statutes 2002, section 124D.10, 69.5 subdivision 4, is amended to read: 69.6 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 69.7 authorize one or more licensed teachers under section 122A.18, 69.8 subdivision 1, to operate a charter school subject to approval 69.9 by the commissioner. A board must vote on charter school 69.10 application for sponsorship no later than 90 days after 69.11 receiving the application. After 90 days, the applicant may 69.12 apply to the commissioner. If a board elects not to sponsor a 69.13 charter school, the applicant may appeal the board's decision to 69.14 the commissioner. The commissioner may elect to sponsor the 69.15 charter school or assist the applicant in finding an eligible 69.16 sponsor. The school must be organized and operated as a 69.17 cooperative under chapter 308A or nonprofit corporation under 69.18 chapter 317A and the provisions under the applicable chapter 69.19 shall apply to the school except as provided in this section. 69.20 Notwithstanding sections 465.717 and 465.719, a school district 69.21 may create a corporation for the purpose of creating a charter 69.22 school. 69.23 (b) Before the operators may form and operate a school, the 69.24 sponsor must file an affidavit with the commissioner stating its 69.25 intent to authorize a charter school. The affidavit must state 69.26 the terms and conditions under which the sponsor would authorize 69.27 a charter school. The commissioner must approve or disapprove 69.28 the sponsor's proposed authorization within 60 days of receipt 69.29 of the affidavit. Failure to obtain commissioner approval 69.30 precludes a sponsor from authorizing the charter school that was 69.31 the subject of the affidavit. 69.32 (c) The operators authorized to organize and operate a 69.33 school, before entering into a contract or other agreement for 69.34 professional or other services, goods, or facilities, must 69.35 incorporate as a cooperative under chapter 308A or as a 69.36 nonprofit corporation under chapter 317A and must establish a 70.1 board of directors composed of at least five members until a 70.2 timely election for members of the charter school board of 70.3 directors is held according to the school's articles and 70.4 bylaws. A charter school board of directors must be composed of 70.5 at least five members. Any staff members who are employed at 70.6 the school, including teachers providing instruction under a 70.7 contract with a cooperative, and all parents of children 70.8 enrolled in the school may participate in the election for 70.9 members of the school's board of directors. Licensed teachers 70.10 employed at the school, including teachers providing instruction 70.11 under a contract with a cooperative, must be a majority of the 70.12 members of the board of directors before the school completes 70.13 its third year of operation, unless the commissioner waives the 70.14 requirement for a majority of licensed teachers on the board. 70.15 Board of director meetings must comply with chapter 13D. 70.16 (d) The granting or renewal of a charter by a sponsoring 70.17 entity must not be conditioned upon the bargaining unit status 70.18 of the employees of the school. 70.19 (e) A sponsor may authorize the operators of a charter 70.20 school to expand the operation of the charter school to 70.21 additional sites or to add additional grades at the school 70.22 beyond those described in the sponsor's application as approved 70.23 by the commissioner only after submitting a supplemental 70.24 application to the commissioner in a form and manner prescribed 70.25 by the commissioner. The supplemental application must provide 70.26 evidence that: 70.27 (1) the expansion of the charter school is supported by 70.28 need and projected enrollment; 70.29 (2) the charter school is fiscally sound; 70.30 (3) the sponsor supports the expansion; and 70.31 (4) the building of the additional site meets all health 70.32 and safety requirements to be eligible for lease aid. 70.33 (f) The commissioner annually must provide timely financial 70.34 management training to newly elected members of a charter school 70.35 board of directors and ongoing training to other members of a 70.36 charter school board of directors. Training must address ways 71.1 to: 71.2 (1) proactively assess opportunities for a charter school 71.3 to maximize all available revenue sources; 71.4 (2) establish and maintain complete, auditable records for 71.5 the charter school; 71.6 (3) establish proper filing techniques; 71.7 (4) document formal actions of the charter school, 71.8 including meetings of the charter school board of directors; 71.9 (5) properly manage and retain charter school and student 71.10 records; 71.11 (6) comply with state and federal payroll record-keeping 71.12 requirements; and 71.13 (7) address other similar factors that facilitate 71.14 establishing and maintaining complete records on the charter 71.15 school's operations. 71.16 Sec. 30. Minnesota Statutes 2002, section 124D.10, 71.17 subdivision 8, is amended to read: 71.18 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 71.19 school shall meet all applicable state and local health and 71.20 safety requirements. 71.21 (b) A school sponsored by a school board may be located in 71.22 any district, unless the school board of the district of the 71.23 proposed location disapproves by written resolution. 71.24 (c) A charter school must be nonsectarian in its programs, 71.25 admission policies, employment practices, and all other 71.26 operations. A sponsor may not authorize a charter school or 71.27 program that is affiliated with a nonpublic sectarian school or 71.28 a religious institution. 71.29 (d) Charter schools must not be used as a method of 71.30 providing education or generating revenue for students who are 71.31 being home-schooled. 71.32 (e) The primary focus of a charter school must be to 71.33 provide a comprehensive program of instruction for at least one 71.34 grade or age group from five through 18 years of age. 71.35 Instruction may be provided to people younger than five years 71.36 and older than 18 years of age. 72.1 (f) A charter school may not charge tuition. 72.2 (g) A charter school is subject to and must comply with 72.3 chapter 363 and section 121A.04. 72.4 (h) A charter school is subject to and must comply with the 72.5 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 72.6 Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 72.7 (i) A charter school is subject to the same financial 72.8 audits, audit procedures, and audit requirements as a district. 72.9 Audits must be conducted in compliance with generally accepted 72.10 governmental auditing standards, the Federal Single Audit Act, 72.11 if applicable, and section 6.65. A charter school is subject to 72.12 and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 72.13 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 72.14 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 72.15 4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must 72.16 comply with the requirements of sections 123B.75 to 123B.83, 72.17 except to the extent deviations are necessary because of the 72.18 program at the school. Deviations must be approved by the 72.19 commissioner. The department ofchildren, families, and72.20learningeducation, state auditor, or legislative auditor may 72.21 conduct financial, program, or compliance audits. A charter 72.22 school determined to be in statutory operating debt under 72.23 sections 123B.81 to 123B.83 must submit a plan under section 72.24 123B.81, subdivision 4. 72.25 (j) A charter school is a district for the purposes of tort 72.26 liability under chapter 466. 72.27 (k) A charter school must comply with sections 13.32; 72.28 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 72.29 and 5. 72.30 (l) A charter school where students participate in the 72.31 extracurricular activities of the student's resident school 72.32 district is subject to sections 123B.36, subdivision 1, clause 72.33 (10), and 123B.49, subdivision 4, paragraph (a). 72.34 (m) A charter school is subject to the pledge of allegiance 72.35 requirement under section 121A.11, subdivision 3. 72.36 [EFFECTIVE DATE.] This section is effective for the 73.1 2003-2004 school year and later. 73.2 Sec. 31. Minnesota Statutes 2002, section 124D.10, 73.3 subdivision 16, is amended to read: 73.4 Subd. 16. [TRANSPORTATION.] (a) By July 1 of each year, a 73.5 charter school must notify the district in which the school is 73.6 located and the department ofchildren, families, and73.7learningeducation if it will provide transportation for pupils 73.8 enrolled in the school for the fiscal year. 73.9 (b) If a charter school elects to provide transportation 73.10 for pupils, the transportation must be provided by the charter 73.11 school within the district in which the charter school is 73.12 located. The state must pay transportation aid to the charter 73.13 school according to section 124D.11, subdivision 2. 73.14 For pupils who reside outside the district in which the 73.15 charter school is located, the charter school is not required to 73.16 provide or pay for transportation between the pupil's residence 73.17 and the border of the district in which the charter school is 73.18 located. A parent may be reimbursed by the charter school for 73.19 costs of transportation from the pupil's residence to the border 73.20 of the district in which the charter school is located if the 73.21 pupil is from a family whose income is at or below the poverty 73.22 level, as determined by the federal government. The 73.23 reimbursement may not exceed the pupil's actual cost of 73.24 transportation or 15 cents per mile traveled, whichever is 73.25 less. Reimbursement may not be paid for more than 250 miles per 73.26 week. 73.27 At the time a pupil enrolls in a charter school, the 73.28 charter school must provide the parent or guardian with 73.29 information regarding the transportation. 73.30 (c) If a charter school does not elect to provide 73.31 transportation, transportation for pupils enrolled at the school 73.32 must be provided by the district in which the school is located, 73.33 according to sections 123B.88, subdivision 6, and 124D.03, 73.34 subdivision 8, for a pupil residing in the same district in 73.35 which the charter school is located. Transportation may be 73.36 provided by the district in which the school is located, 74.1 according to sections 123B.88, subdivision 6, and 124D.03, 74.2 subdivision 8, for a pupil residing in a different district. If 74.3 the district provides the transportation, the scheduling of 74.4 routes, manner and method of transportation, control and 74.5 discipline of the pupils, and any other matter relating to the 74.6 transportation of pupils under this paragraph shall be within 74.7 the sole discretion, control, and management of the district. 74.8 Sec. 32. Minnesota Statutes 2002, section 124D.10, 74.9 subdivision 20, is amended to read: 74.10 Subd. 20. [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 74.11 teacher employed by a district makes a written request for an 74.12 extended leave of absence to teach at a charter school, the 74.13 district must grant the leave. The district must grant a leave 74.14for any number ofnot to exceed a total of five yearsrequested74.15by the teacher, and must. Any request to extend the leaveat74.16the teacher's requestshall be granted only at the discretion of 74.17 the school board. The district may require that the request for 74.18 a leave or extension of leave be made up to 90 days before the 74.19 teacher would otherwise have to report for duty. Except as 74.20 otherwise provided in this subdivision and except for section 74.21 122A.46, subdivision 7, the leave is governed by section 74.22 122A.46, including, but not limited to, reinstatement, notice of 74.23 intention to return, seniority, salary, and insurance. 74.24 During a leave, the teacher may continue to aggregate 74.25 benefits and credits in the teachers' retirement association 74.26 account by paying both the employer and employee contributions 74.27 based upon the annual salary of the teacher for the last full 74.28 pay period before the leave began. The retirement association 74.29 may impose reasonable requirements to efficiently administer 74.30 this subdivision. 74.31 [EFFECTIVE DATE.] This section is effective the day 74.32 following final enactment and applies to approvals of leaves or 74.33 approvals of extensions of leaves made after that date. 74.34 Notwithstanding Minnesota Statutes 2002, section 122A.46, 74.35 subdivision 2, a school district, upon request, must grant a 74.36 one-year extension for the 2003-2004 school year to a teacher on 75.1 a leave of absence to teach at a charter school under this 75.2 subdivision who has taught five or more years as of the 75.3 2003-2004 school year. 75.4 Sec. 33. Minnesota Statutes 2002, section 124D.11, 75.5 subdivision 1, is amended to read: 75.6 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 75.7 education revenue must be paid to a charter school as though it 75.8 were a district. The general education revenue for each 75.9 adjusted marginal cost pupil unit is the state average general 75.10 education revenue per pupil unit, plus the referendum 75.11 equalization aid allowance in the pupil's district of residence, 75.12 minus an amount equal to the product of the formula allowance 75.13 according to section 126C.10, subdivision 2, times .0485, 75.14 calculated without basic skills revenue, and transportation 75.15 sparsity revenue,and the transportation portion of the75.16transition revenue adjustment,plus basic skills revenue and 75.17 transition revenue as though the school were a school district. 75.18 (b) Notwithstanding paragraph (a), for charter schools in 75.19 the first year of operation, general education revenue shall be 75.20 computed using the number of adjusted pupil units in the current 75.21 fiscal year. 75.22 Sec. 34. Minnesota Statutes 2002, section 124D.11, 75.23 subdivision 2, is amended to read: 75.24 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 75.25 must be paid to a charter school that provides transportation 75.26 services according to section 124D.10, subdivision 16, according 75.27 to this subdivision. Transportation aid shall equal 75.28 transportation revenue. 75.29 In addition to the revenue under subdivision 1, a charter 75.30 school providing transportation services must receive general 75.31 education aid for each pupil unit equal to the sum of an amount 75.32 equal to the product of the formula allowance according to 75.33 section 126C.10, subdivision 2, times .0485, plus the 75.34 transportation sparsity allowance for the school district in 75.35 which the charter school is located, plus the transportation75.36transition allowance for the district in which the charter76.1school is located. 76.2 Sec. 35. Minnesota Statutes 2002, section 124D.11, 76.3 subdivision 4, is amended to read: 76.4 Subd. 4. [BUILDING LEASE AID.] When a charter school finds 76.5 it economically advantageous to rent or lease a building or land 76.6 for any instructional purposes and it determines that the total 76.7 operating capital revenue under section 126C.10, subdivision 13, 76.8 is insufficient for this purpose, it may apply to the 76.9 commissioner for building lease aid for this purpose. The 76.10 commissioner must review and either approve or deny a lease aid 76.11 application using the following criteria: 76.12 (1) the reasonableness of the price based on current market 76.13 values; 76.14 (2) the extent to which the lease conforms to applicable 76.15 state laws and rules; and 76.16 (3) the appropriateness of the proposed lease in the 76.17 context of the space needs and financial circumstances of the 76.18 charter school. 76.19 A charter school must not use the building lease aid it receives 76.20 for custodial, maintenance service, utility, or other operating 76.21 costs. The amount of building lease aid per pupil unit served 76.22 for a charter school for any year shall not exceed the lesser of 76.23 (a) 90 percent of the approved cost or (b) the product of the 76.24 pupil units served for the current school year times$1,500the 76.25 greater of the charter school's building lease aid per pupil 76.26 unit served for fiscal year 2003, excluding the adjustment under 76.27 Laws 2002, chapter 392, article 6, section 4, or $1,200. 76.28 [EFFECTIVE DATE.] This section is effective for revenue for 76.29 fiscal year 2004. 76.30 Sec. 36. Minnesota Statutes 2002, section 124D.11, 76.31 subdivision 6, is amended to read: 76.32 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 76.33 school is eligible to receive other aids, grants, and revenue 76.34 according to chapters 120A to 129C, as though it were a district. 76.35 (b) Notwithstanding paragraph (a), a charter school may not 76.36 receive aid, a grant, or revenue if a levy is required to obtain 77.1 the money, except as otherwise provided in this section. 77.2 (c) Federal aid received by the state must be paid to the 77.3 school, if it qualifies for the aid as though it were a school 77.4 district. 77.5 (d) A charter school may receive money from any source for 77.6 capital facilities needs. In the year-end report to the 77.7 commissioner ofchildren, families, and learningeducation, the 77.8 charter school shall report the total amount of funds received 77.9 from grants and other outside sources. 77.10(e) Notwithstanding paragraph (a) or (b), a charter school77.11may apply for a grant to receive the aid portion of integration77.12revenue under section 124D.86, subdivision 3, for enrolled77.13students who are residents of a district that is eligible for77.14integration revenue. The commissioner shall determine grant77.15recipients and may adopt application guidelines. The grants77.16must be competitively determined and must demonstrate that77.17enrolling pupils in the charter school contributes to77.18desegregation or integration purposes as determined by the77.19commissioner. If the charter school has elected not to provide77.20transportation under section 124D.10, subdivision 16, the aid77.21shall be reduced by the amount per pupil unit specified for the77.22district where the charter school is located under section77.23123B.92, subdivision 8.77.24 [EFFECTIVE DATE.] This section is effective for revenue for 77.25 fiscal year 2004. 77.26 Sec. 37. Minnesota Statutes 2002, section 124D.128, 77.27 subdivision 3, is amended to read: 77.28 Subd. 3. [STUDENT PLANNING.] A district must inform all 77.29 pupils and their parents about the learning year programand77.30that participation in the program is optional. A continual 77.31 learning plan must be developed at least annually for each pupil 77.32 with the participation of the pupil, parent or guardian, 77.33 teachers, and other staff; each participant must sign and date 77.34 the plan. The plan must specify the learning experiences that 77.35 must occur during the entire fiscal year and, for secondary 77.36 students, for graduation. The plan must include: 78.1 (1) the pupil's learning objectives and experiences, 78.2 including courses or credits the pupil plans to complete each 78.3 year and, for a secondary pupil, the graduation requirements the 78.4 student must complete; 78.5 (2) the assessment measurements used to evaluate a pupil's 78.6 objectives; 78.7 (3) requirements for grade level or other appropriate 78.8 progression; and 78.9 (4) for pupils generating more than one average daily 78.10 membership in a given grade, an indication of which objectives 78.11 were unmet. 78.12 The plan may be modified to conform to district schedule 78.13 changes. The district may not modify the plan if the 78.14 modification would result in delaying the student's time of 78.15 graduation. 78.16 [EFFECTIVE DATE.] This section is effective the day 78.17 following final enactment. 78.18 Sec. 38. Minnesota Statutes 2002, section 124D.42, 78.19 subdivision 6, is amended to read: 78.20 Subd. 6. [PROGRAM TRAINING.] (a) The commission must, 78.21 within available resources, ensure an opportunity for each 78.22 participant to have three weeks of training in a residential 78.23 setting. If offered, each training session must: 78.24 (1) orient each participant in the nature, philosophy, and 78.25 purpose of the program; 78.26 (2) build an ethic of community service through general 78.27 community service training; and 78.28 (3) provide additional training as it determines necessary, 78.29 which may include training in evaluating early literacy skills 78.30 and teaching reading to preschool children through the St. Croix 78.31 River education district under Laws 2001, First Special Session 78.32 chapter 6, article 2, section 70, to assist local Head Start 78.33 organizations in establishing and evaluating Head Start programs 78.34 for developing children's early literacy skills. 78.35 (b) Each grantee organization shall also train participants 78.36 in skills relevant to the community service opportunity. 79.1 Sec. 39. Minnesota Statutes 2002, section 124D.86, 79.2 subdivision 1a, is amended to read: 79.3 Subd. 1a. [BUDGET APPROVAL PROCESS.] Each year before a 79.4 district receives any revenue under subdivision 3, clause (4), 79.5 (5), or (6), the district must submit to the department of 79.6children, families, and learningeducation, for its review and 79.7 approval a budget detailing the costs of the 79.8 desegregation/integration plan filed under Minnesota Rules, 79.9 parts 3535.0100 to 3535.0180. Notwithstanding chapter 14, the 79.10 department may develop criteria for budget approval. The 79.11 department shall consult with the desegregation advisory board 79.12 in developing these criteria. The criteria developed by the 79.13 department should address, at a minimum, the following: 79.14 (1) budget items cannot be approved unless they are part of 79.15 any overall desegregation plan approved by the district for 79.16 isolated sites or by the multidistrict collaboration council and 79.17 participation individual members; 79.18 (2) the budget must indicate how revenue expenditures will 79.19 be used specifically to support increased opportunities for 79.20 interracial contact; 79.21 (3) components of the budget to be considered by the 79.22 department, including staffing, curriculum, transportation, 79.23 facilities, materials, and equipment and reasonable planning 79.24 costs, as determined by the department; and 79.25 (4) if plans are proposed to enhance existing programs, the 79.26 total budget being appropriated to the program must be included, 79.27 indicating what part is to be funded using integration revenue 79.28 and what part is to be funded using other revenues. 79.29 [EFFECTIVE DATE.] This section is effective retroactively 79.30 for revenue for fiscal year 2003. 79.31 Sec. 40. Minnesota Statutes 2002, section 124D.86, 79.32 subdivision 3, is amended to read: 79.33 Subd. 3. [INTEGRATION REVENUE.] Integration revenue equals 79.34 the following amounts: 79.35 (1) for independent school district No. 709, 79.36 Duluth,$207$212 times the adjusted pupil units for the school 80.1 year; 80.2 (2) for independent school district No. 625, St. 80.3 Paul,$446$464 times the adjusted pupil units for the school 80.4 year; 80.5 (3) for special school district No. 1, Minneapolis, the sum 80.6 of$446$473 times the adjusted pupil units for the school year 80.7 and an additional$35$40 times the adjusted pupil units for the 80.8 school year that is provided entirely through a local levy; 80.9 (4) for a district not listed in clause (1), (2), or (3), 80.10 that must implement a plan under Minnesota Rules, parts 80.11 3535.0100 to 3535.0180, where the district's enrollment of 80.12 protected students, as defined under Minnesota Rules, part 80.13 3535.0110, exceeds 15 percent, the lesser of (i) the actual cost 80.14 of implementing the plan during the fiscal year minus the aid 80.15 received under subdivision 6, or (ii)$130$133 times the 80.16 adjusted pupil units for the school year; 80.17 (5) for a district not listed in clause (1), (2), (3), or 80.18 (4), that is required to implement a plan according to the 80.19 requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 80.20 the lesser of 80.21 (i) the actual cost of implementing the plan during the 80.22 fiscal year minus the aid received under subdivision 6, or 80.23 (ii)$93$94 times the adjusted pupil units for the school 80.24 year. 80.25 Any money received by districts in clauses (1) to(4)(3) 80.26 which exceeds the amount received in fiscal year 2000 shall be 80.27 subject to the budget requirements in subdivision 1a; and 80.28 (6) for a member district of a multidistrict integration 80.29 collaborative that files a plan with the commissioner, but is 80.30 not contiguous to a racially isolated district, integration 80.31 revenue equals the amount defined in clause (5). 80.32 [EFFECTIVE DATE.] This section is effective for revenue for 80.33 fiscal year 2004. 80.34 Sec. 41. Minnesota Statutes 2002, section 124D.86, 80.35 subdivision 4, is amended to read: 80.36 Subd. 4. [INTEGRATION LEVY.] A district may levy an amount 81.1 equal to 37 percent for fiscal year 2003,2223 percent for 81.2 fiscal year 2004,29and 30 percent for fiscal year 2005, and 2281.3percent for fiscal year 2006and thereafter of the district's 81.4 integration revenue as defined in subdivision 3. 81.5 [EFFECTIVE DATE.] This section is effective for revenue for 81.6 fiscal year 2004. 81.7 Sec. 42. Minnesota Statutes 2002, section 124D.86, 81.8 subdivision 5, is amended to read: 81.9 Subd. 5. [INTEGRATION AID.] A district's integration aid 81.10 equals63 percent for fiscal year 2003, 78 percent for fiscal81.11year 2004, 71 percent for fiscal year 2005, and 78 percent for81.12fiscal year 2006 and thereafter ofthe difference between the 81.13 district's integration revenueas defined in subdivision 3and 81.14 its integration levy. 81.15 [EFFECTIVE DATE.] This section is effective for revenue for 81.16 fiscal year 2004. 81.17 Sec. 43. Minnesota Statutes 2002, section 124D.86, 81.18 subdivision 6, is amended to read: 81.19 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 81.20 integration aid under subdivision 5 must be adjusted for each 81.21 pupil residing in a district eligible for integration revenue 81.22 under subdivision 3, clause (1), (2), or (3), and attending a 81.23 nonresident district under sections 123A.05 to 123A.08, 124D.03, 81.24 124D.06,124D.07,and 124D.08, that is not eligible for 81.25 integration revenue under subdivision 3, clause (1), (2), or 81.26 (3), and has implemented a plan under Minnesota Rules, parts 81.27 3535.0100 to 3535.0180, if the enrollment of the pupil in the 81.28 nonresident district contributes to desegregation or integration 81.29 purposes. The adjustments must be made according to this 81.30 subdivision. 81.31 (b) Aid paid to a district serving nonresidents must be 81.32 increased by an amount equal to the revenue per pupil unit of 81.33 the resident district under subdivision 3, clause (1), (2), or 81.34 (3), minus the revenue attributable to the pupil in the 81.35 nonresident district under subdivision 3, clause (4), (5), or 81.36 (6), for the time the pupil is enrolled in the nonresident 82.1 district. 82.2 [EFFECTIVE DATE.] This section is effective retroactively 82.3 for fiscal year 2003. 82.4 Sec. 44. Minnesota Statutes 2002, section 126C.05, is 82.5 amended by adding a subdivision to read: 82.6 Subd. 19. [DISTANCE EDUCATION STUDENTS.] (a) The average 82.7 daily membership for a public school pupil generating distance 82.8 education average daily membership according to section 82.9 124D.095, subdivision 7, paragraph (a), equals the sum of: (i) 82.10 the ratio of the sum of the number of instructional hours the 82.11 pupil is enrolled in a regular classroom setting at the 82.12 enrolling school to the actual number of instructional hours in 82.13 the school year at the enrolling school, plus (ii) .12 times the 82.14 initial distance education average daily membership according to 82.15 section 124D.095, subdivision 7, paragraph (a). 82.16 (b) When the sum of the average daily membership under 82.17 paragraph (a) and the adjusted distance education average daily 82.18 membership under section 124D.095, subdivision 7, paragraph (a), 82.19 exceeds the maximum allowed for the student under subdivision 8 82.20 or 15, as applicable, the average daily membership under 82.21 paragraph (a) shall be reduced by the excess over the maximum, 82.22 but shall not be reduced below .12. The adjusted distance 82.23 education average daily membership according to section 82.24 124D.095, subdivision 7, paragraph (a) shall be reduced by any 82.25 remaining excess over the maximum. 82.26 Sec. 45. [126C.24] [DISTANCE EDUCATION AID.] 82.27 (a) The distance education aid for a distance education 82.28 provider equals the product of the adjusted distance education 82.29 average daily membership for students under section 124D.095, 82.30 subdivision 7, paragraph (c), times the student grade level 82.31 weighting under section 126C.05, subdivision 1, times the 82.32 formula allowance. 82.33 (b) Notwithstanding section 127A.45, the department must 82.34 pay each distance education provider 77 percent of the amount in 82.35 paragraph (a) within 45 days of receiving initial enrollment 82.36 information each quarter or semester. If a change in enrollment 83.1 occurs during a quarter or semester, the distance education 83.2 provider must report the change to the department at the time it 83.3 submits the enrollment information for the next quarter or 83.4 semester. A final payment equal to 23 percent of the amount in 83.5 paragraph (a) must be made on September 30 of the next fiscal 83.6 year. 83.7 Sec. 46. Minnesota Statutes 2002, section 126C.44, is 83.8 amended to read: 83.9 126C.44 [SAFE SCHOOLS LEVY.] 83.10 Each district may make a levy on all taxable property 83.11 located within the district for the purposes specified in this 83.12 section. The maximum amount which may be levied for all costs 83.13 under this section shall be equal to$30$31 multiplied by the 83.14 district's adjusted marginal cost pupil units for the school 83.15 year. The proceeds of the levy must be used for directly 83.16 funding the following purposes or for reimbursing the cities and 83.17 counties who contract with the district for the following 83.18 purposes: (1) to pay the costs incurred for the salaries, 83.19 benefits, and transportation costs of peace officers and 83.20 sheriffs for liaison in services in the district's schools; (2) 83.21 to pay the costs for a drug abuse prevention program as defined 83.22 in section 609.101, subdivision 3, paragraph (e), in the 83.23 elementary schools; (3) to pay the costs for a gang resistance 83.24 education training curriculum in the district's schools; (4) to 83.25 pay the costs for security in the district's schools and on 83.26 school property; or (5) to pay the costs for other crime 83.27 prevention, drug abuse, student and staff safety, and violence 83.28 prevention measures taken by the school district. The district 83.29 must initially attempt to contract for services to be provided 83.30 by peace officers or sheriffs with the police department of each 83.31 city or the sheriff's department of the county within the 83.32 district containing the school receiving the services. If a 83.33 local police department or a county sheriff's department does 83.34 not wish to provide the necessary services, the district may 83.35 contract for these services with any other police or sheriff's 83.36 department located entirely or partially within the school 84.1 district's boundaries. The levy authorized under this section 84.2 is not included in determining the school district's levy 84.3 limitations. 84.4 [EFFECTIVE DATE.] This section is effective for taxes 84.5 payable in 2004. 84.6 Sec. 47. Minnesota Statutes 2002, section 128C.05, is 84.7 amended by adding a subdivision to read: 84.8 Subd. 1a. [SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.] (a) 84.9 Notwithstanding Minnesota Rules, part 4717.3750, any pool built 84.10 before January 1, 1987, that complies with the swimming and 84.11 diving rules of the national federation of state high school 84.12 associations may be used for supervised competitive high school 84.13 diving. A school or district using a pool for supervised 84.14 competitive high school diving under this provision must provide 84.15 appropriate notice to parents and participants. 84.16 (b) Paragraph (a) applies only to a school or district that 84.17 provided a high school diving program during the 2000-2001 84.18 school year. 84.19 [EFFECTIVE DATE.] This section is effective for the 84.20 2003-2004 school year and later. 84.21 Sec. 48. Minnesota Statutes 2002, section 205A.03, 84.22 subdivision 1, is amended to read: 84.23 Subdivision 1. [RESOLUTIONREQUIRED PRIMARY IN CERTAIN 84.24 CIRCUMSTANCES.]The school board of a school district may, by84.25resolution adopted by June 1 of any year, decide to choose84.26nominees for school district elective offices by a primary as84.27provided in subdivisions 1 to 6. The resolution, when adopted,84.28is effective for all ensuing elections of board members in that84.29school district until it is revoked.In a school district 84.30 election, if there are more than two candidates for a specified 84.31 school board position or more than twice as many school board 84.32 candidates as there are at-large school board positions 84.33 available, a school district must hold a primary. 84.34 [EFFECTIVE DATE.] This section is effective the day 84.35 following final enactment for independent school district No. 84.36 742. This section is effective January 1, 2004, for all other 85.1 school districts and applies to school board elections held in 85.2 2004 and thereafter. 85.3 Sec. 49. Minnesota Statutes 2002, section 205A.03, 85.4 subdivision 3, is amended to read: 85.5 Subd. 3. [CANDIDATES, FILING.] The clerk shall place upon 85.6 the primary ballot without partisan designation the names of 85.7 individuals whose candidacies have been filed and for whom the 85.8 proper filing fee has been paid. When not more than twicethe85.9number of individuals to be elected to a school district85.10elective officeas many school board candidates as there are 85.11 at-large school board positions available file for nomination 85.12 for the office or when not more than two candidates for a 85.13 specified school board position file for nomination for that 85.14 office, their names must not be placed upon the primary ballot 85.15 and must be placed on the school district general election 85.16 ballot as the nominees for that office. 85.17 Sec. 50. Minnesota Statutes 2002, section 205A.03, 85.18 subdivision 4, is amended to read: 85.19 Subd. 4. [RESULTS.] The school district primary must be 85.20 conducted and the returns made in the manner provided for the 85.21 state primary as far as practicable. Within two days after the 85.22 primary, the school board of the school district shall canvass 85.23 the returns, and the two candidates for eachofficespecified 85.24 school board position who receive the highest number of votes, 85.25 or a number of candidates equal to twice the number of 85.26 individuals to be elected tothe officeat-large school board 85.27 positions who receive the highest number of votes, are the 85.28 nominees for the office named. Their names must be certified to 85.29 the school district clerk who shall place them on the school 85.30 district general election ballot without partisan designation 85.31 and without payment of an additional fee. 85.32 Sec. 51. Minnesota Statutes 2002, section 205A.06, 85.33 subdivision 1a, is amended to read: 85.34 Subd. 1a. [FILING PERIOD.]In school districts nominating85.35candidates at a school district primary,Affidavits of candidacy 85.36maymust be filed with the school district clerk no earlier than 86.1 the 70th day and no later than the 56th day before the first 86.2 Tuesday after the second Monday in September in the year when 86.3 the school district general election is held.In all other86.4school districts, affidavits of candidacy must be filed not more86.5than 70 days and not less than 56 days before the school86.6district general election.86.7 [EFFECTIVE DATE.] This section is effective the day 86.8 following final enactment for independent school district No. 86.9 742. This section is effective January 1, 2004, for all other 86.10 school districts and applies to school board elections held in 86.11 2004 and thereafter. 86.12 Sec. 52. Laws 2001, First Special Session chapter 6, 86.13 article 2, section 64, is amended to read: 86.14 Sec. 64. [SCHOOLS' ACADEMIC AND FINANCIAL PERFORMANCE 86.15 EVALUATION; INDEPENDENT CONTRACTOR.] 86.16 (a) To assist taxpayers, educators, school board members, 86.17 and state and local officials in realizing their commitment to 86.18 improving student achievement and the management of school 86.19 systems, the commissioner ofchildren, families, and86.20learningeducation shall contract with an independent school 86.21 evaluation services contractor to evaluate and report on the 86.22 academic and financial performance of the state's independent 86.23 school districts using, but not limited to, six core categories 86.24 of analysis: 86.25 (1) school district expenditures; 86.26 (2) students' performance outcomes based on multiple 86.27 indicia including students' test scores, attendance rates, 86.28 dropout rates, and graduation rates; 86.29 (3) return on resources to determine the extent to which 86.30 student outcomes improve commensurate with increases in district 86.31 spending; 86.32 (4) school district finances, taxes, and debt to establish 86.33 the context for analyzing the district's return on resources 86.34 under clause (3); 86.35 (5) students' learning environment to establish the context 86.36 for analyzing the district's return on resources under clause 87.1 (3); and 87.2 (6) school district demographics to establish the 87.3 socioeconomic context for analyzing the district's return on 87.4 resources under clause (3). 87.5 (b) In order to compare the regional and socioeconomic 87.6 peers of particular school districts, monitor educational 87.7 changes over time and identify important educational trends, the 87.8 contractor shall use the six core categories of analysis to: 87.9 (1) identify allocations of baseline and incremental school 87.10 district spending; 87.11 (2) connect student achievement with expenditure patterns; 87.12 (3) track school district financial health; 87.13 (4) observe school district debt and capital spending 87.14 levels; and 87.15 (5) measure the return on a school district's educational 87.16 resources. 87.17 (c) The contractor under paragraph (a) shall evaluate and 87.18 report on the academic and financial performance of all school 87.19 districts. 87.20 (d)Consistent with paragraph (a), clause (2), the87.21evaluation and reporting of test scores must distinguish between:87.22(1) performance-based assessments; and87.23(2) academic, objective knowledge-based tests.87.24(e)The contractormustshall complete its written report 87.25 and submit it to the commissioner within 360 days of the date on 87.26 which the contract is signed. The commissioner immediately must 87.27 make the report available in a readily accessible format to 87.28 state and local elected officials, members of the public, 87.29 educators, parents, and other interested individuals. The 87.30 commissioner, upon receiving an individual's request, alsomust87.31 shall make available all draft reports prepared by the 87.32 contractor, consistent with Minnesota Statutes, chapter 13. 87.33 Sec. 53. [CHARTER SCHOOL ADVISORY BOARD MEMBER TERMS.] 87.34 In order to establish staggered terms for charter school 87.35 advisory board members under Minnesota Statutes, section 87.36 124D.10, subdivision 2a, the commissioner of education shall, by 88.1 lot, determine the length of term for each member serving on the 88.2 board on the effective date of this section. One-third of the 88.3 members shall serve a one-year term, one-third shall serve a 88.4 two-year term, and one-third shall serve a three-year term. 88.5 Thereafter, the term for each member must be three years. 88.6 Sec. 54. [PILOT PROJECT; CARE AND TREATMENT CHARTER 88.7 SCHOOL.] 88.8 Subdivision 1. [PILOT PROJECT AUTHORIZED.] A pilot project 88.9 is created to evaluate the educational effectiveness of 88.10 combining a care and treatment program with a charter school. 88.11 Subd. 2. [APPLICATION.] Northwood Children's Services may 88.12 apply to the commissioner of education to form a care and 88.13 treatment pilot charter school under the provisions of this 88.14 section and Minnesota Statutes, section 124D.10. Before forming 88.15 the care and treatment pilot charter school, Northwood 88.16 Children's Services must file an affidavit with the commissioner 88.17 stating its intent to form the pilot charter school. The 88.18 affidavit must state the terms and conditions under which the 88.19 care and treatment pilot charter school would operate. The 88.20 commissioner must approve or disapprove Northwood Children's 88.21 Services' proposed authorization within 60 days of receipt of 88.22 the affidavit. Northwood Children's Services must include in 88.23 its application the items required in a charter school's 88.24 contract under Minnesota Statutes, section 124D.10, subdivision 88.25 6, and any other information the commissioner may request to 88.26 approve or disapprove the application. 88.27 Subd. 3. [ENROLLMENT.] Notwithstanding Minnesota Statutes, 88.28 section 124D.10, subdivision 9, a care and treatment center 88.29 pilot charter school shall give preference for enrollment to 88.30 participants in the center's care and treatment programs. 88.31 Subd. 4. [PLACEMENT OF STUDENTS; RESPONSIBILITIES FOR 88.32 PROVIDING EDUCATION.] Notwithstanding Minnesota Statutes, 88.33 section 125A.515, subdivision 3, a care and treatment center 88.34 operating a charter school may notify the department of 88.35 education of its intent to provide education services, including 88.36 special education if eligible, to all students placed in the 89.1 facility for care and treatment. 89.2 Subd. 5. [REVENUE.] A care and treatment center pilot 89.3 charter school is eligible for revenue as if it were a charter 89.4 school under Minnesota Statutes, section 124D.11, except that it 89.5 does not qualify for charter school lease aid under Minnesota 89.6 Statutes, section 124D.11, subdivision 4. 89.7 Subd. 6. [FINANCIAL INFORMATION.] A charter school 89.8 operating under this section must keep financial records 89.9 sufficient to allow audits under Minnesota Statutes, section 89.10 124D.10, subdivisions 6a and 8. 89.11 Subd. 7. [REPORT.] Northwood Children's Services must 89.12 annually report to the education committees of the legislature 89.13 on the charter school's success in integrating educational 89.14 services into the students' care and treatment programs. 89.15 Subd. 8. [EXPIRATION.] The authority granted Northwood 89.16 Children's Services under this section applies only to the 89.17 school's first six years of operation. This section expires 89.18 after the school's sixth year of operation. 89.19 [EFFECTIVE DATE.] This section is effective the day 89.20 following final enactment. 89.21 Sec. 55. [PILOT PROJECT TO EVALUATE PARENT INVOLVEMENT 89.22 POLICIES AND STRATEGIES.] 89.23 Subdivision 1. [DISTRICT AND SCHOOL SITE POLICY 89.24 EVALUATION.] A school board may elect to participate in a 89.25 two-year pilot project to evaluate parent involvement policies 89.26 and strategies in the district and in school sites, with the 89.27 goal of improving the academic achievement of all students 89.28 within the district, including at-risk students. 89.29 Subd. 2. [PARENT INVOLVEMENT REVIEW COMMITTEES.] A school 89.30 board electing to participate and interested school sites within 89.31 that district must establish a parent involvement review 89.32 committee or expand the purview of an existing committee 89.33 composed of a majority of parents. The committees must evaluate 89.34 the effectiveness of district and school site programs and 89.35 strategies intended to provide all parents with meaningful 89.36 opportunities to participate in the process of educating 90.1 students. The committees, among other things, may evaluate the 90.2 operation of the instruction and curriculum advisory committee 90.3 or building team under Minnesota Statutes, section 120B.11, or 90.4 parent involvement programs developed under Minnesota Statutes, 90.5 section 124D.895. A majority of committee members must be 90.6 parents of students enrolled in the district or school site, if 90.7 applicable. The committee also must include teachers employed 90.8 by the district and who teach at a school site, if applicable. 90.9 A district must assist participating school sites at the request 90.10 of the school site. 90.11 Subd. 3. [NOTICE OF PARTICIPATION; NOTICE TO PARENTS.] (a) 90.12 A school board electing to participate under this section must 90.13 notify the commissioner of children, families, and learning of 90.14 its participation and the participation of interested school 90.15 sites on a form supplied by the commissioner. The commissioner 90.16 may assist participating districts and school sites at the 90.17 request of the district or school site. 90.18 (b) Participating school districts must transmit timely 90.19 effective notice of this project to parent organizations 90.20 throughout the district and to parents of children enrolled in 90.21 district schools. 90.22 Subd. 4. [REPORT.] Participating districts and school 90.23 sites must report the findings of the evaluation and related 90.24 recommendations annually by March 1 to the school board, which 90.25 shall transmit a summary of the findings and recommendations to 90.26 the commissioner. Information the commissioner receives under 90.27 this subdivision may be used to modify guidelines and model 90.28 plans for parent involvement programs under Minnesota Statutes, 90.29 section 124D.895. 90.30 [EFFECTIVE DATE.] This section is effective the day 90.31 following final enactment and applies to the 2003-2004 and 90.32 2004-2005 school years. 90.33 Sec. 56. [PROGRAM EFFICACY.] 90.34 The commissioner of education must study the efficacy of 90.35 American Indian Success for the Future program under Minnesota 90.36 Statutes, section 124D.81, to determine the extent to which the 91.1 program meets the educational needs of students participating in 91.2 the program and achieves the goals and objectives of the program 91.3 and its students and of the Minnesota American Indian Education 91.4 Act. The commissioner by February 15, 2004, must present a 91.5 written report of the efficacy of the program to the committees 91.6 of the legislature having jurisdiction over kindergarten through 91.7 grade 12 education policy and finance. 91.8 Sec. 57. [CHARTER SCHOOL START-UP AID.] 91.9 A charter school in its first year of operation during 91.10 fiscal year 2004 or 2005 is not eligible for charter school 91.11 start-up aid under Minnesota Statutes, section 124D.11, 91.12 subdivision 8. 91.13 Sec. 58. [ALTERNATIVE ATTENDANCE ADJUSTMENTS FOR FISCAL 91.14 YEAR 2002.] 91.15 Notwithstanding Minnesota Statutes, section 124D.86, 91.16 subdivision 6, for fiscal year 2002 only, integration aid under 91.17 Minnesota Statutes, section 124D.86, subdivision 5, must be 91.18 adjusted for each pupil residing in special school district No. 91.19 1, Minneapolis; independent school district No. 625, St. Paul; 91.20 or independent school district No. 709, Duluth, and attending a 91.21 nonresident district under Minnesota Statutes, sections 123A.05 91.22 to 123A.08, 124D.03, 124D.06, and 124D.08, other than 91.23 Minneapolis, St. Paul or Duluth that has implemented a plan 91.24 under Minnesota Rules, parts 3535.0100 to 3535.0180, if the 91.25 enrollment of the pupil in the nonresident district contributes 91.26 to desegregation or integration purposes. The adjustments must 91.27 be made according to this subdivision. 91.28 (b) Aid paid to a district serving nonresident pupils must 91.29 be increased by an amount equal to the revenue per pupil of the 91.30 resident district under Minnesota Statutes, section 124D.86, 91.31 subdivision 3, minus the revenue attributable to the pupil in 91.32 the nonresident district for the time the pupil is enrolled in 91.33 the nonresident district. 91.34 [EFFECTIVE DATE.] This section is effective the day 91.35 following final enactment and applies to fiscal year 2002. 91.36 Sec. 59. [POLICY ON STUDENTS WITH A HISTORY OF VIOLENT 92.1 BEHAVIOR.] 92.2 (a) Representatives of the Minnesota school boards 92.3 association, Education Minnesota, and the information policy 92.4 analysis division in the Minnesota department of administration, 92.5 the parent of a child who has participated in the Title I 92.6 delinquent education program selected by the commissioner of 92.7 children, families, and learning, a member of the majority party 92.8 and minority party in the state house appointed by the speaker 92.9 of the house and a member of the majority party and minority 92.10 party in the state senate appointed by the subcommittee on 92.11 committees, and the commissioner of children, families, and 92.12 learning or the commissioner's designee, shall develop a model 92.13 policy by August 1, 2003, on notifying classroom teachers and 92.14 other school district employees having a legitimate educational 92.15 interest when a student with a history of violent behavior is 92.16 placed in the teacher's classroom. The model policy at least 92.17 must: 92.18 (1) define what constitutes a history of violent behavior, 92.19 consistent with Minnesota Statutes, section 121A.45, subdivision 92.20 2, clause (c); 92.21 (2) limit reports on violent behavior to a specified number 92.22 of school years; 92.23 (3) define "legitimate educational interest," consistent 92.24 with Minnesota Statutes, section 121A.64; 92.25 (4) indicate the persons at the school or district level 92.26 who determine which school district employees have a legitimate 92.27 educational interest; 92.28 (5) require school districts that transfer the student 92.29 records of a student with a history of violent behavior to 92.30 another school district, charter school, or alternative 92.31 education program to include all information about the student's 92.32 history of violent behavior in the student's educational records 92.33 it transmits to the enrolling school district, charter school, 92.34 or alternative education program, consistent with this policy; 92.35 (6) permit the parent of a student with a history of 92.36 violent behavior, before the classroom teacher or other district 93.1 employee is notified, to review the student's education records, 93.2 request that the school correct inaccurate, misleading, or 93.3 otherwise inappropriate information and request a formal hearing 93.4 if the school refuses to change the records, consistent with 93.5 federal data practices law; and 93.6 (7) require school districts to inform the parent or 93.7 guardian of a student with a history of violent behavior under 93.8 Minnesota Statutes, section 121A.64, that the district gives 93.9 notice about the student's history of violent behavior to the 93.10 classroom teacher and other district employees having a 93.11 legitimate educational interest before placing the student in 93.12 the teacher's classroom. 93.13 (b) The information policy analysis division in the 93.14 Minnesota department of administration by August 15, 2003, must 93.15 post on its division Web site the model policy developed under 93.16 paragraph (a). 93.17 (c) The task force in paragraph (a) expires on August 1, 93.18 2003. 93.19 [EFFECTIVE DATE.] This section is effective the day 93.20 following final enactment. 93.21 Sec. 60. [TITLE.] 93.22 Minnesota Statutes, section 120B.25, shall be known as the 93.23 "American Heritage Education in Minnesota Public Schools Act." 93.24 [EFFECTIVE DATE.] This section is effective the day 93.25 following final enactment. 93.26 Sec. 61. [APPROPRIATIONS.] 93.27 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 93.28 indicated in this section are appropriated from the general fund 93.29 to the department of education for the fiscal years designated. 93.30 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 93.31 lease aid under Minnesota Statutes, section 124D.11, subdivision 93.32 4: 93.33 $16,592,000 ..... 2004 93.34 $20,915,000 ..... 2005 93.35 The 2004 appropriation includes $2,524,000 for 2003 and 93.36 $14,068,000 for 2004. 94.1 The 2005 appropriation includes $4,202,000 for 2004 and 94.2 $16,713,000 for 2005. 94.3 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 94.4 startup cost aid under Minnesota Statutes, section 124D.11: 94.5 $802,000 ..... 2004 94.6 $173,000 ..... 2005 94.7 The 2004 appropriation includes $220,000 for 2003 and 94.8 $582,000 for 2004. 94.9 The 2005 appropriation includes $173,000 for 2004 and $0 94.10 for 2005. 94.11 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 94.12 to charter schools to promote integration and desegregation 94.13 under Minnesota Statutes, section 124D.11, subdivision 6, 94.14 paragraph (e): 94.15 $8,000 ..... 2004 94.16 This appropriation includes $8,000 for 2003 and $0 for 2004. 94.17 Subd. 5. [INTEGRATION AID.] For integration aid under 94.18 Minnesota Statutes, section 124D.86, subdivision 5: 94.19 $55,169,000 ..... 2004 94.20 $56,347,000 ..... 2005 94.21 The 2004 appropriation includes $8,428,000 for 2003 and 94.22 $46,741,000 for 2004. 94.23 The 2005 appropriation includes $13,961,000 for 2004 and 94.24 $42,386,000 for 2005. 94.25 Subd. 6. [MAGNET SCHOOL GRANTS.] For magnet school and 94.26 program grants: 94.27 $750,000 ..... 2004 94.28 $750,000 ..... 2005 94.29 $65,000 of the fiscal year 2004 appropriation is for 94.30 continuation of the magnet school program authorized under Laws 94.31 2000, chapter 489, article 7, section 15, subdivision 5, for 94.32 independent school district No. 696, Ely. 94.33 These amounts may be used for magnet school programs under 94.34 Minnesota Statutes, section 124D.88. 94.35 Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school 94.36 startup aid under Minnesota Statutes, section 124D.88: 95.1 $ 37,000 ..... 2004 95.2 $437,000 ..... 2005 95.3 The 2004 appropriation includes $37,000 for 2003 and $0 for 95.4 2004. 95.5 The 2005 appropriation includes $0 for 2004 and $437,000 95.6 for 2005. 95.7 Subd. 8. [INTERDISTRICT DESEGREGATION OR INTEGRATION 95.8 TRANSPORTATION GRANTS.] For interdistrict desegregation or 95.9 integration transportation grants under Minnesota Statutes, 95.10 section 124D.87: 95.11 $5,796,000 ..... 2004 95.12 $8,401,000 ..... 2005 95.13 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 95.14 success for the future grants under Minnesota Statutes, section 95.15 124D.81: 95.16 $2,009,000 ..... 2004 95.17 $2,137,000 ..... 2005 95.18 The 2004 appropriation includes $363,000 for 2003 and 95.19 $1,646,000 for 2004. 95.20 The 2005 appropriation includes $491,000 for 2004 and 95.21 $1,646,000 for 2005. 95.22 Subd. 10. [AMERICAN INDIAN SCHOLARSHIPS.] For American 95.23 Indian scholarships under Minnesota Statutes, section 124D.84: 95.24 $1,875,000 ..... 2004 95.25 $1,875,000 ..... 2005 95.26 Subd. 11. [AMERICAN INDIAN TEACHER PREPARATION 95.27 GRANTS.] For joint grants to assist American Indian people to 95.28 become teachers under Minnesota Statutes, section 122A.63: 95.29 $190,000 ..... 2004 95.30 $190,000 ..... 2005 95.31 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 95.32 school aid under Minnesota Statutes, section 124D.83: 95.33 $2,066,000 ..... 2004 95.34 $2,335,000 ..... 2005 95.35 The 2004 appropriation includes $285,000 for 2003 and 95.36 $1,781,000 for 2004. 96.1 The 2005 appropriation includes $531,000 for 2004 and 96.2 $1,804,000 for 2005. 96.3 Subd. 13. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 96.4 SCHOOLS.] For early childhood family education programs at 96.5 tribal contract schools under Minnesota Statutes, section 96.6 124D.83, subdivision 4: 96.7 $68,000 ..... 2004 96.8 $68,000 ..... 2005 96.9 Subd. 14. [STATEWIDE TESTING SUPPORT.] For supporting 96.10 implementation of the graduation standards: 96.11 $6,500,000 ..... 2004 96.12 $6,500,000 ..... 2005 96.13 Subd. 15. [SEVENTH GRADE TESTING.] For seventh grade 96.14 testing under Minnesota Statutes, section 120B.30: 96.15 $2,500,000 ..... 2004 96.16 $2,500,000 ..... 2005 96.17 Subd. 16. [BEST PRACTICES SEMINARS.] For best practices 96.18 seminars and other professional development capacity building 96.19 activities that assure proficiency in teaching and 96.20 implementation of graduation rule standards: 96.21 $2,180,000 ..... 2004 96.22 $2,180,000 ..... 2005 96.23 $250,000 per year is for a grant to A Chance to Grow/New 96.24 Visions for the Minnesota learning resource center's 96.25 comprehensive training program for education professionals 96.26 charged with helping children acquire basic reading and math 96.27 skills. 96.28 Subd. 17. [SCHOOL PERFORMANCE EVALUATION.] For evaluating 96.29 school performance under Laws 2001, First Special Session 96.30 chapter 6, article 2, section 64: 96.31 $2,000,000 ..... 2004 96.32 This appropriation is available until June 30, 2005. This 96.33 is a onetime appropriation. 96.34 Subd. 18. [ALTERNATIVE TEACHER COMPENSATION.] For 96.35 alternative teacher compensation established under Minnesota 96.36 Statutes, sections 122A.413 to 122A.415: 97.1 $3,700,000 ..... 2004 97.2 $3,700,000 ..... 2005 97.3 If the appropriations under this subdivision are 97.4 insufficient to fund all program participants, a participant may 97.5 receive less than the maximum per pupil amount available under 97.6 Minnesota Statutes, section 122A.415, subdivision 1. 97.7 A qualifying district or site receiving alternative teacher 97.8 compensation funding under this subdivision may use the funding 97.9 it receives to participate in a national program for enhancing 97.10 teacher professionalism. 97.11 Subd. 19. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 97.12 PROGRAMS.] (a) For students' advanced placement and 97.13 international baccalaureate examination fees under Minnesota 97.14 Statutes, section 120B.13, subdivision 3, and the training and 97.15 related costs for teachers and other interested educators under 97.16 Minnesota Statutes, section 120B.13, subdivision 1: 97.17 $1,000,000 ..... 2004 97.18 $1,000,000 ..... 2005 97.19 (b) The advanced placement program shall receive 75 percent 97.20 of the appropriation each year and the international 97.21 baccalaureate program shall receive 25 percent of the 97.22 appropriation each year. The department, in consultation with 97.23 representatives of the advanced placement and international 97.24 baccalaureate programs selected by the advanced placement 97.25 advisory council and IBMN, respectively, shall determine the 97.26 amounts of the expenditures each year for examination fees and 97.27 training and support programs for each program. 97.28 (c) Notwithstanding Minnesota Statutes, section 120B.13, 97.29 subdivision 1, $375,000 each year is for teachers to attend 97.30 subject matter summer training programs and follow-up support 97.31 workshops approved by the advanced placement or international 97.32 baccalaureate programs. The amount of the subsidy for each 97.33 teacher attending an advanced placement or international 97.34 baccalaureate summer training program or workshop shall be the 97.35 same. The commissioner shall determine the payment process and 97.36 the amount of the subsidy. 98.1 (d) The commissioner shall pay all examination fees for all 98.2 students of low-income families under Minnesota Statutes, 98.3 section 120B.13, subdivision 3, and to the extent of available 98.4 appropriations shall also pay examination fees for students 98.5 sitting for an advanced placement examination, international 98.6 baccalaureate examination, or both. 98.7 Any balance in the first year does not cancel but is 98.8 available in the second year. 98.9 Subd. 20. [FIRST GRADE PREPAREDNESS.] For first grade 98.10 preparedness grants under Minnesota Statutes, section 124D.081: 98.11 $7,250,000 ..... 2004 98.12 $7,250,000 ..... 2005 98.13 Subd. 21. [YOUTH WORKS PROGRAM.] For funding youth works 98.14 programs under Minnesota Statutes, sections 124D.37 to 124D.45: 98.15 $900,000 ..... 2004 98.16 $900,000 ..... 2005 98.17 (a) $150,000 per year is for training in evaluating early 98.18 literacy skills and teaching reading to preschool children under 98.19 Minnesota Statutes, section 124D.42, subdivision 6, paragraph 98.20 (a), clause (3). 98.21 (b) A grantee organization may provide health and child 98.22 care coverage to the dependents of each participant enrolled in 98.23 a full-time youth works program to the extent such coverage is 98.24 not otherwise available. 98.25 Subd. 22. [STUDENT ORGANIZATIONS.] For student 98.26 organizations: 98.27 $625,000 ..... 2004 98.28 $625,000 ..... 2005 98.29 Each student organization shall receive its fiscal year 98.30 2004 and 2005 appropriation using the allocation model that was 98.31 in effect for fiscal year 2002. 98.32 Subd. 23. [DISTANCE EDUCATION.] For distance education 98.33 under Minnesota Statutes, section 124D.095: 98.34 $2,400,000 ..... 2004 98.35 $3,000,000 ..... 2005 98.36 Sec. 62. [REVISOR'S INSTRUCTION.] 99.1 The revisor of statutes shall codify Laws 2001, First 99.2 Special Session chapter 6, article 2, section 68, as Minnesota 99.3 Statutes, section 120B.305. 99.4 Sec. 63. [REPEALER.] 99.5 (a) Minnesota Statutes 2002, sections 122A.64; 122A.65; 99.6 124D.84, subdivision 2; and 124D.89, are repealed. 99.7 (b) Laws 1993, chapter 224, article 8, section 20, 99.8 subdivision 2, as amended by Laws 1994, chapter 647, article 8, 99.9 section 29, is repealed. 99.10 (c) Minnesota Statutes 2002, section 121A.49, is repealed 99.11 the day following final enactment. 99.12 (d) Minnesota Statutes 2002, section 123B.05, is repealed 99.13 the day following final enactment. 99.14 ARTICLE 3 99.15 SPECIAL PROGRAMS 99.16 Section 1. Minnesota Statutes 2002, section 121A.41, 99.17 subdivision 10, is amended to read: 99.18 Subd. 10. [SUSPENSION.] "Suspension" means an action by 99.19 the school administration, under rules promulgated by the school 99.20 board, prohibiting a pupil from attending school for a period of 99.21 no more than ten school days. If a suspension is longer than 99.22 five days, the suspending administrator must provide the 99.23 superintendent with a reason for the longer suspension. This 99.24 definition does not apply to dismissal from school for one 99.25 school day or less, except as provided in federal law for a 99.26 student with a disability. Each suspension action may include a 99.27 readmission plan. The readmission plan shall include, where 99.28 appropriate, a provision for implementing alternative 99.29 educational services upon readmission and may not be used to 99.30 extend the current suspension. Consistent with section 125A.09, 99.31 subdivision 3, the readmission plan must not obligate a parent 99.32 to provide a sympathomimetic medication for the parent's child 99.33 as a condition of readmission. The school administration may 99.34 not impose consecutive suspensions against the same pupil for 99.35 the same course of conduct, or incident of misconduct, except 99.36 where the pupil will create an immediate and substantial danger 100.1 to self or to surrounding persons or property, or where the 100.2 district is in the process of initiating an expulsion, in which 100.3 case the school administration may extend the suspension to a 100.4 total of 15 days. In the case of a student with a disability, 100.5 the student's individual education plan team must meet 100.6 immediately but not more than ten school days after the date on 100.7 which the decision to remove the student from the student's 100.8 current education placement is made. The individual education 100.9 plan team and other qualified personnel shall at that meeting: 100.10 conduct a review of the relationship between the child's 100.11 disability and the behavior subject to disciplinary action; and 100.12 determine the appropriateness of the child's education plan. 100.13 The requirements of the individual education plan team 100.14 meeting apply when: 100.15 (1) the parent requests a meeting; 100.16 (2) the student is removed from the student's current 100.17 placement for five or more consecutive days; or 100.18 (3) the student's total days of removal from the student's 100.19 placement during the school year exceed ten cumulative days in a 100.20 school year. The school administration shall implement 100.21 alternative educational services when the suspension exceeds 100.22 five days. A separate administrative conference is required for 100.23 each period of suspension. 100.24 Sec. 2. [124D.452] [DISTRICT REPORT; CAREER AND TECHNICAL 100.25 EDUCATION.] 100.26 Each district and cooperative center must report data to 100.27 the department of education for all career and technical 100.28 education programs as required by the department. 100.29 Sec. 3. Minnesota Statutes 2002, section 124D.454, 100.30 subdivision 1, is amended to read: 100.31 Subdivision 1. [PURPOSE.] The purpose of this section is 100.32 to provide a method to fundtransitioncareer and technical 100.33 education programs for children with a disability that are 100.34 components of the student's transition plan. As used in this 100.35 section, the term "children with a disability" shall have the 100.36 meaning ascribed to it in section 125A.02. 101.1 Sec. 4. Minnesota Statutes 2002, section 124D.454, 101.2 subdivision 2, is amended to read: 101.3 Subd. 2. [DEFINITIONS.] For the purposes of this section, 101.4 the definitions in this subdivision apply. 101.5 (a) "Base year"for fiscal year 1996 means fiscal year 1995.101.6Base year for later fiscal yearsmeans the second fiscal year 101.7 preceding the fiscal year for which aid will be paid. 101.8 (b) "Basic revenue" has the meaning given it in section 101.9 126C.10, subdivision 2. For the purposes of computing basic 101.10 revenue pursuant to this section, each child with a disability 101.11 shall be counted as prescribed in section 126C.05, subdivision 1. 101.12 (c) "Average daily membership" has the meaning given it in 101.13 section 126C.05. 101.14 (d) "Program growth factor" means 1.00 for fiscal year 1998 101.15 and later. 101.16 (e) "Aid percentage factor" means60 percent for fiscal101.17year 1996, 70 percent for fiscal year 1997, 80 percent for101.18fiscal year 1998, 90 percent for fiscal year 1999, and100 101.19 percent for fiscal year 2000 and later. 101.20 (f) "Essential personnel" means a licensed teacher, 101.21 licensed support services staff person, paraprofessional 101.22 providing direct services to students, or licensed personnel 101.23 under subdivision 12. 101.24 Sec. 5. Minnesota Statutes 2002, section 124D.454, 101.25 subdivision 3, is amended to read: 101.26 Subd. 3. [BASE REVENUE.] (a) Thetransition101.27program-disabledtransition-disabled program base revenue equals 101.28 the sum of the following amounts computed using base year data: 101.29 (1) 68 percent of the salary of each essential licensed 101.30 person or approved paraprofessional who provides direct 101.31 instructional services to students employed during that fiscal 101.32 year for services rendered in that district's transition program 101.33 for children with a disability; 101.34 (2) 47 percent of the costs of necessary equipment for 101.35 transition programs for children with a disability; 101.36 (3) 47 percent of the costs of necessary travel between 102.1 instructional sites by transition program teachers of children 102.2 with a disability but not including travel to and from local, 102.3 regional, district, state, or nationalvocationalcareer and 102.4 technical student organization meetings; 102.5 (4) 47 percent of the costs of necessary supplies for 102.6 transition programs for children with a disability but not to 102.7 exceed an average of $47 in any one school year for each child 102.8 with a disability receiving these services; 102.9 (5) for transition programs for children with disabilities 102.10 provided by a contract approved by the commissioner with public, 102.11 private, or voluntary agencies other than a Minnesota school 102.12 district or cooperative center, in place of programs provided by 102.13 the district, 52 percent of the difference between the amount of 102.14 the contract and the basic revenue of the district for that 102.15 pupil for the fraction of the school day the pupil receives 102.16 services under the contract; 102.17 (6) for transition programs for children with disabilities 102.18 provided by a contract approved by the commissioner with public, 102.19 private, or voluntary agencies other than a Minnesota school 102.20 district or cooperative center, that are supplementary to a full 102.21 educational program provided by the school district, 52 percent 102.22 of the amount of the contract; and 102.23 (7) for a contract approved by the commissioner with 102.24 another Minnesota school district or cooperative center for 102.25 vocational evaluation services for children with a disability 102.26 for children that are not yet enrolled in grade 12, 52 percent 102.27 of the amount of the contract. 102.28 (b) If requested by a school district for transition 102.29 programs during the base year for less than the full school 102.30 year, the commissioner may adjust the base revenue to reflect 102.31 the expenditures that would have occurred during the base year 102.32 had the program been operated for the full year. 102.33 Sec. 6. Minnesota Statutes 2002, section 124D.454, 102.34 subdivision 8, is amended to read: 102.35 Subd. 8. [USE OF AID.] The aid provided under this section 102.36 shall be paid only for services rendered or for the costs which 103.1 are incurred according to this section for transition programs 103.2 for children with a disability which are approved by the 103.3 commissioner ofchildren, families, and learningeducation and 103.4 operated in accordance with rules promulgated by the 103.5 commissioner. These rules shall be subject to the restrictions 103.6 provided insection 124D.453,subdivision612. The procedure 103.7 for application for approval of these programs shall be as 103.8 provided in section 125A.75, subdivisions 4 and 6, and the 103.9 application review process shall be conducted by theoffice103.10 division oflifework developmentfederal programs in the 103.11 department. 103.12 Sec. 7. Minnesota Statutes 2002, section 124D.454, 103.13 subdivision 10, is amended to read: 103.14 Subd. 10. [EXCLUSION.] A district shall not receive aid 103.15 pursuant to section124D.453 or125A.76 for salaries, supplies, 103.16 travel or equipment for which the district receives aid pursuant 103.17 to this section. 103.18 Sec. 8. Minnesota Statutes 2002, section 124D.454, is 103.19 amended by adding a subdivision to read: 103.20 Subd. 12. [COMPLIANCE WITH RULES.] Aid must be paid under 103.21 this section only for services rendered or for costs incurred in 103.22 career and technical education programs approved by the 103.23 commissioner and operated in accordance with rules promulgated 103.24 by the commissioner. This aid shall be paid only for services 103.25 rendered and for costs incurred by essential, licensed personnel 103.26 who meet the requirements for licensure pursuant to the rules of 103.27 the Minnesota board of teaching. Licensed personnel means 103.28 persons holding a valid career and technical license issued by 103.29 the commissioner. If an average of five or fewer secondary 103.30 full-time equivalent students are enrolled per teacher in an 103.31 approved postsecondary program at intermediate district No. 287, 103.32 916, or 917, licensed personnel means persons holding a valid 103.33 vocational license issued by the commissioner or the board of 103.34 trustees of the Minnesota state colleges and universities. 103.35 Notwithstanding section 127A.42, the commissioner may modify or 103.36 withdraw the program or aid approval and withhold aid under this 104.1 section without proceeding under section 127A.42 at any time. 104.2 To do so, the commissioner must determine that the program does 104.3 not comply with rules of the department of education or that any 104.4 facts concerning the program or its budget differ from the facts 104.5 in the district's approved application. 104.6 Sec. 9. [125A.091] [ALTERNATIVE DISPUTE RESOLUTION AND DUE 104.7 PROCESS HEARINGS.] 104.8 Subdivision 1. [DISTRICT OBLIGATION.] A school district 104.9 must use the procedures in federal law and state law and rule to 104.10 reach decisions about the identification, evaluation, 104.11 educational placement, manifestation determination, interim 104.12 alternative educational placement, or the provision of a free 104.13 appropriate public education to a child with a disability. 104.14 Subd. 2. [PRIOR WRITTEN NOTICE.] A parent must receive 104.15 prior written notice a reasonable time before the district 104.16 proposes or refuses to initiate or change the identification, 104.17 evaluation, educational placement, or the provision of a free 104.18 appropriate public education to a child with a disability. 104.19 Subd. 3. [CONTENT OF NOTICE.] The notice under subdivision 104.20 2 must: 104.21 (1) describe the action the district proposes or refuses; 104.22 (2) explain why the district proposes or refuses to take 104.23 the action; 104.24 (3) describe any other option the district considered and 104.25 the reason why it rejected the option; 104.26 (4) describe each evaluation procedure, test, record, or 104.27 report the district used as a basis for the proposed or refused 104.28 action; 104.29 (5) describe any other factor affecting the proposal or 104.30 refusal of the district to take the action; 104.31 (6) state that the parent of a child with a disability is 104.32 protected by procedural safeguards and, if this notice is not an 104.33 initial referral for evaluation, how a parent can get a 104.34 description of the procedural safeguards; and 104.35 (7) identify where a parent can get help in understanding 104.36 this law. 105.1 Subd. 4. [UNDERSTANDABLE NOTICE.] (a) The written notice 105.2 under subdivision 2 must be understandable to the general public 105.3 and available in the parent's native language or by another 105.4 communication form, unless it is clearly not feasible to do so. 105.5 (b) If the parent's native language or other communication 105.6 form is not written, the district must take steps to ensure that: 105.7 (1) the notice is translated orally or by other means to 105.8 the parent in the parent's native language or other 105.9 communication form; 105.10 (2) the parent understands the notice; and 105.11 (3) written evidence indicates the requirements in 105.12 subdivision 2 are met. 105.13 Subd. 5. [INITIAL ACTION; PARENT CONSENT.] The district 105.14 must not proceed with the initial evaluation of a child, the 105.15 initial placement of a child in a special education program, or 105.16 the initial provision of special education services for a child 105.17 without the prior written consent of the child's parent. A 105.18 district may not override the written refusal of a parent to 105.19 consent to an initial evaluation or reevaluation. 105.20 Subd. 6. [DISPUTE RESOLUTION PROCESSES; 105.21 GENERALLY.] Parties are encouraged to resolve disputes over the 105.22 identification, evaluation, educational placement, manifestation 105.23 determination, interim alternative educational placement, or the 105.24 provision of a free appropriate public education to a child with 105.25 a disability through conciliation, mediation, facilitated team 105.26 meetings, or other alternative process. All dispute resolution 105.27 options are voluntary on the part of the parent and must not be 105.28 used to deny or delay the right to a due process hearing. All 105.29 dispute resolution processes under this section are provided at 105.30 no cost to the parent. 105.31 Subd. 7. [CONCILIATION CONFERENCE.] A parent must have an 105.32 opportunity to meet with appropriate district staff in at least 105.33 one conciliation conference if the parent objects to any 105.34 proposal of which the parent receives notice under subdivision 2. 105.35 If the parent refuses district efforts to conciliate the 105.36 dispute, the conciliation requirement is satisfied. Following a 106.1 conciliation conference, the district must prepare and provide 106.2 to the parent a conciliation conference memorandum that 106.3 describes the district's final proposed offer of service. This 106.4 memorandum is admissible in evidence in any subsequent 106.5 proceeding. 106.6 Subd. 8. [VOLUNTARY DISPUTE RESOLUTION OPTIONS.] In 106.7 addition to offering at least one conciliation conference, a 106.8 district must inform a parent of other dispute resolution 106.9 processes, including at least mediation and facilitated team 106.10 meetings. The fact that an alternative dispute resolution 106.11 process was used is admissible in evidence at any subsequent 106.12 proceeding. State-provided mediators and team meeting 106.13 facilitators shall not be subpoenaed to testify at a due process 106.14 hearing or civil action under federal special education law nor 106.15 are any records of mediators or state-provided team meeting 106.16 facilitators accessible to the parties. 106.17 Subd. 9. [MEDIATION.] Mediation is a dispute resolution 106.18 process that involves a neutral party provided by the state to 106.19 assist a parent and a district in resolving disputes over the 106.20 identification, evaluation, educational placement, manifestation 106.21 determination, interim alternative educational placement, or the 106.22 provision of a free appropriate public education to a child with 106.23 a disability. A mediation process is available as an informal 106.24 alternative to a due process hearing but must not be used to 106.25 deny or postpone the opportunity of a parent or district to 106.26 obtain a due process hearing. Mediation is voluntary for all 106.27 parties. All mediation discussions are confidential and 106.28 inadmissible in evidence in any subsequent proceeding, unless 106.29 the: 106.30 (1) parties expressly agree otherwise; 106.31 (2) evidence is otherwise available; or 106.32 (3) evidence is offered to prove bias or prejudice of a 106.33 witness. 106.34 Subd. 10. [MEDIATED AGREEMENTS.] Mediated agreements are 106.35 not admissible unless the parties agree otherwise or a party to 106.36 the agreement believes the agreement is not being implemented, 107.1 in which case the aggrieved party may enter the agreement into 107.2 evidence at a due process hearing. The parties may request 107.3 another mediation to resolve a dispute over implementing the 107.4 mediated agreement. After a due process hearing is requested, a 107.5 party may request mediation and the commissioner must provide a 107.6 mediator who conducts a mediation session no later than the 107.7 third business day after the mediation request is made to the 107.8 commissioner. 107.9 Subd. 11. [FACILITATED TEAM MEETING.] A facilitated team 107.10 meeting is an IEP, IFSP, or IIIP team meeting led by an 107.11 impartial state-provided facilitator to promote effective 107.12 communication and assist a team in developing an individualized 107.13 education plan. 107.14 Subd. 12. [IMPARTIAL DUE PROCESS HEARING.] (a) A parent or 107.15 a district is entitled to an impartial due process hearing 107.16 conducted by the state when a dispute arises over the 107.17 identification, evaluation, educational placement, manifestation 107.18 determination, interim alternative educational placement, or the 107.19 provision of a free appropriate public education to a child with 107.20 a disability. The hearing must be held in the district 107.21 responsible for ensuring that a free appropriate public 107.22 education is provided according to state and federal law. The 107.23 proceedings must be recorded and preserved, at state expense, 107.24 pending ultimate disposition of the action. 107.25 (b) The due process hearing must be conducted according to 107.26 the rules of the commissioner and federal law. 107.27 (c) A party in a due process hearing may not raise a claim 107.28 based upon an alleged violation that occurred more than two 107.29 years before the date on which the commissioner received the 107.30 hearing request. 107.31 Subd. 13. [HEARING OFFICER QUALIFICATIONS.] The 107.32 commissioner must appoint an individual who is qualified under 107.33 this subdivision to serve as a hearing officer. The hearing 107.34 officer must: 107.35 (1) be knowledgeable and impartial; 107.36 (2) have no personal interest in or specific involvement 108.1 with the student who is a party to the hearing; 108.2 (3) not have been employed as an administrator by the 108.3 district that is a party to the hearing; 108.4 (4) not have been involved in selecting the district 108.5 administrator who is a party to the hearing; 108.6 (5) have no personal, economic, or professional interest in 108.7 the outcome of the hearing other than properly administering 108.8 federal and state laws, rules, and policies; 108.9 (6) have no substantial involvement in developing state or 108.10 local policies or procedures challenged in the hearing; 108.11 (7) not be a current employee or board member of a 108.12 Minnesota public school district, education district, 108.13 intermediate unit or regional education agency, or the 108.14 department if the department is the service provider; and 108.15 (8) not be a current employee or board member of a 108.16 disability advocacy organization or group. 108.17 Subd. 14. [REQUEST FOR HEARING.] A request for a due 108.18 process hearing must: 108.19 (1) be in writing; 108.20 (2) describe the nature of the dispute about providing 108.21 special education services to the student including facts 108.22 relating to the dispute; and 108.23 (3) state, to the extent known, the relief sought. 108.24 Any school district administrator receiving a request for a 108.25 due process hearing must immediately forward the request to the 108.26 commissioner. Within two business days of receiving a request 108.27 for a due process hearing, the commissioner must appoint a 108.28 hearing officer. The commissioner must not deny a request for 108.29 hearing because the request is incomplete. A party may 108.30 disqualify a hearing officer only by affirmatively showing 108.31 prejudice or bias to the commissioner or to the chief 108.32 administrative law judge if the hearing officer is an 108.33 administrative law judge. If a party affirmatively shows 108.34 prejudice against a hearing officer, the commissioner must 108.35 assign another hearing officer to hear the matter. 108.36 Subd. 15. [PREHEARING CONFERENCE.] A prehearing conference 109.1 must be held within five business days of the date the 109.2 commissioner appoints the hearing officer. The hearing officer 109.3 must initiate the prehearing conference which may be conducted 109.4 in person, at a location within the district, or by telephone. 109.5 The hearing officer must create a written verbatim record of the 109.6 prehearing conference which is available to either party upon 109.7 request. At the prehearing conference, the hearing officer must: 109.8 (1) identify the questions that must be answered to resolve 109.9 the dispute and eliminate claims and complaints that are without 109.10 merit; 109.11 (2) set a scheduling order for the hearing and additional 109.12 prehearing activities; 109.13 (3) determine if the hearing can be disposed of without an 109.14 evidentiary hearing and, if so, establish the schedule and 109.15 procedure for doing so; and 109.16 (4) establish the management, control, and location of the 109.17 hearing to ensure its fair, efficient, and effective disposition. 109.18 Subd. 16. [BURDEN OF PROOF.] The burden of proof at a due 109.19 process hearing is on the district to demonstrate, by a 109.20 preponderance of the evidence, that it is complying with the law 109.21 and offered or provided a free appropriate public education to 109.22 the child in the least restrictive environment. If the district 109.23 has not offered or provided a free appropriate public education 109.24 in the least restrictive environment and the parent wants the 109.25 district to pay for a private placement, the burden of proof is 109.26 on the parent to demonstrate, by a preponderance of the 109.27 evidence, that the private placement is appropriate. 109.28 Subd. 17. [ADMISSIBLE EVIDENCE.] The hearing officer may 109.29 admit all evidence that possesses probative value, including 109.30 hearsay, if it is the type of evidence on which reasonable, 109.31 prudent persons are accustomed to rely in conducting their 109.32 serious affairs. The hearing officer must give effect to the 109.33 rules of privilege recognized by law and exclude evidence that 109.34 is incompetent, irrelevant, immaterial, or unduly repetitious. 109.35 Subd. 18. [HEARING OFFICER AUTHORITY.] (a) A hearing 109.36 officer must limit an impartial due process hearing to the time 110.1 sufficient for each party to present its case. 110.2 (b) A hearing officer must establish and maintain control 110.3 and manage the hearing. This authority includes, but is not 110.4 limited to: 110.5 (1) requiring attorneys representing parties at the 110.6 hearing, after notice and an opportunity to be heard, to pay 110.7 court reporting and hearing officer costs, or fines payable to 110.8 the state, for failing to: (i) obey scheduling or prehearing 110.9 orders, (ii) appear, (iii) be prepared, or (iv) participate in 110.10 the hearing process in good faith; 110.11 (2) administering oaths and affirmations; 110.12 (3) issuing subpoenas; 110.13 (4) determining the responsible and providing districts and 110.14 joining those districts, if not already notified, in the 110.15 proceedings; 110.16 (5) making decisions involving identification, evaluation, 110.17 educational placement, manifestation determination, interim 110.18 alternative educational placement, or the provision of a free 110.19 appropriate public education to a child with a disability; and 110.20 (6) ordering an independent educational evaluation of a 110.21 child at district expense. 110.22 Subd. 19. [EXPEDITED DUE PROCESS HEARINGS.] A parent has 110.23 the right to an expedited due process hearing when there is a 110.24 dispute over a manifestation determination or a proposed or 110.25 actual placement in an interim alternative educational setting. 110.26 A district has the right to an expedited due process hearing 110.27 when proposing or seeking to maintain placement in an interim 110.28 alternative educational setting. A hearing officer must hold an 110.29 expedited due process hearing and must issue a decision within 110.30 ten calendar days of the request for a hearing. A hearing 110.31 officer may extend by up to five additional calendar days the 110.32 time for issuing a decision in an expedited due process 110.33 hearing. All policies in this section apply to expedited due 110.34 process hearings to the extent they do not conflict with federal 110.35 law. 110.36 Subd. 20. [HEARING OFFICER'S DECISION; TIME PERIOD.] (a) 111.1 The hearing officer must issue a decision within 45 calendar 111.2 days of the date on which the commissioner receives the request 111.3 for a due process hearing. A hearing officer is encouraged to 111.4 accelerate the time line to 30 days for a child under the age of 111.5 three whose needs change rapidly and who requires quick 111.6 resolution of a dispute. A hearing officer may not extend the 111.7 time beyond the 45-day period unless requested by either party 111.8 for good cause shown on the record. Extensions of time must not 111.9 exceed a total of 30 calendar days unless both parties and the 111.10 hearing officer agree or time is needed to complete an 111.11 independent educational evaluation. Good cause includes, but is 111.12 not limited to, the time required for mediation or other 111.13 settlement discussions, independent educational evaluation, 111.14 complexity and volume of issues, or finding or changing counsel. 111.15 (b) The hearing officer's decision must: 111.16 (1) be in writing; 111.17 (2) state the controlling and material facts upon which the 111.18 decision is made in order to apprise the reader of the basis and 111.19 reason for the decision; and 111.20 (3) be based on local standards, state statute, the rules 111.21 of the commissioner, and federal law. 111.22 Subd. 21. [COMPENSATORY EDUCATIONAL SERVICES.] The hearing 111.23 officer may require the resident or responsible district to 111.24 provide compensatory educational services to the child if the 111.25 hearing officer finds that the district has not offered or made 111.26 available to the child a free appropriate public education in 111.27 the least restrictive environment and the child suffered a loss 111.28 of educational benefit. Such services take the form of direct 111.29 and indirect special education and related services designed to 111.30 address any loss of educational benefit that may have occurred. 111.31 The hearing officer's finding must be based on a present 111.32 determination of whether the child has suffered a loss of 111.33 educational benefit. 111.34 Subd. 22. [CHILD'S EDUCATIONAL PLACEMENT DURING A DUE 111.35 PROCESS HEARING.] (a) Until a due process hearing under this 111.36 section is completed or the district and the parent agree 112.1 otherwise, the child must remain in the child's current 112.2 educational placement and must not be denied initial admission 112.3 to school. 112.4 (b) Until an expedited due process hearing challenging an 112.5 interim alternative educational placement is completed, the 112.6 child must remain in the interim alternative educational setting 112.7 until the decision of the hearing officer or the expiration of 112.8 the 45 days permitted for an interim alternative educational 112.9 setting, whichever occurs first, unless the parent and district 112.10 agree otherwise. 112.11 Subd. 23. [IMPLEMENTATION OF HEARING OFFICER ORDER.] (a) 112.12 That portion of a hearing officer's decision granting relief 112.13 requested by the parent must be implemented upon issuance. 112.14 (b) Except as provided under paragraph (a) or the district 112.15 and parent agree otherwise, following a hearing officer's 112.16 decision granting relief requested by the district, the child 112.17 must remain in the current educational placement until the time 112.18 to request judicial review under subdivision 24 expires or, if 112.19 judicial review is requested, at the time the Minnesota court of 112.20 appeals or the federal district court issues its decision, 112.21 whichever is later. 112.22 Subd. 24. [REVIEW OF HEARING OFFICER DECISIONS.] The 112.23 parent or district may seek review of the hearing officer's 112.24 decision in the Minnesota court of appeals or in the federal 112.25 district court, consistent with federal law. A party must 112.26 appeal to the Minnesota court of appeals within 60 days of 112.27 receiving the hearing officer's decision. 112.28 Subd. 25. [ENFORCEMENT OF ORDERS.] The commissioner must 112.29 monitor final hearing officer decisions and ensure enforcement 112.30 of hearing officer orders. 112.31 Subd. 26. [HEARING OFFICER AND PERSON CONDUCTING 112.32 ALTERNATIVE DISPUTE RESOLUTION ARE STATE EMPLOYEES.] A hearing 112.33 officer or person conducting alternative dispute resolution 112.34 under this section is an employee of the state under section 112.35 3.732 for purposes of section 3.736 only. 112.36 Subd. 27. [HEARING OFFICER TRAINING.] A hearing officer 113.1 must participate in training and follow procedures established 113.2 by the commissioner. 113.3 Subd. 28. [DISTRICT LIABILITY.] A district is not liable 113.4 for harmless technical violations of this section or rules 113.5 implementing this section if the school district can demonstrate 113.6 on a case-by-case basis that the violations did not harm a 113.7 student's educational progress or the parent's right to notice, 113.8 participation, or due process. 113.9 Sec. 10. Minnesota Statutes 2002, section 125A.21, 113.10 subdivision 2, is amended to read: 113.11 Subd. 2. [THIRD PARTY REIMBURSEMENT.] (a) Beginning July 113.12 1, 2000, districts shall seek reimbursement from insurers and 113.13 similar third parties for the cost of services provided by the 113.14 district whenever the services provided by the district are 113.15 otherwise covered by the child's health coverage. Districts 113.16 shall request, but may not require, the child's family to 113.17 provide information about the child's health coverage when a 113.18 child with a disability begins to receive services from the 113.19 district of a type that may be reimbursable, and shall request, 113.20 but may not require, updated information after that as needed. 113.21 (b) For children enrolled in medical assistance under 113.22 chapter 256B or MinnesotaCare under chapter 256L who have no 113.23 other health coverage, a district shall provide an initial 113.24 written notice to the enrolled child's parent or legal 113.25 representative of its intent to seek reimbursement from medical 113.26 assistance or MinnesotaCare for the individual education plan 113.27 health-related services provided by the district. 113.28 (c) The district shall give the parent or legal 113.29 representative annual written notice of: 113.30 (1) the district's intent to seek reimbursement from 113.31 medical assistance or MinnesotaCare for individual education 113.32 plan health-related services provided by the district; 113.33 (2) the right of the parent or legal representative to 113.34 request a copy of all records concerning individual education 113.35 plan health-related services disclosed by the district to any 113.36 third party; and 114.1 (3) the right of the parent or legal representative to 114.2 withdraw consent for disclosure of a child's records at any time 114.3 without consequence. 114.4 The written notice shall be provided as part of the written 114.5 notice required by Code of Federal Regulations, title 34, 114.6 section300.503300.504. 114.7 (d) In order to access the private health care coverage of 114.8 a child who is covered by private health care coverage in whole 114.9 or in part, a district must: 114.10 (1) obtain annual written informed consent from the parent 114.11 or legal representative, in compliance with subdivision 5; and 114.12 (2) inform the parent or legal representative that a 114.13 refusal to permit the district or state Medicaid agency to 114.14 access their private health care coverage does not relieve the 114.15 district of its responsibility to provide all services necessary 114.16 to provide free and appropriate public education at no cost to 114.17 the parent or legal representative. 114.18 (e) If the commissioner of human services obtains federal 114.19 approval to exempt covered individual education plan 114.20 health-related services from the requirement that private health 114.21 care coverage refuse payment before medical assistance may be 114.22 billed, paragraphs (b), (c), and (d) shall also apply to 114.23 students with a combination of private health care coverage and 114.24 health care coverage through medical assistance or MinnesotaCare. 114.25 (f) In the event that Congress or any federal agency or the 114.26 Minnesota legislature or any state agency establishes lifetime 114.27 limits, limits for any health care services, cost-sharing 114.28 provisions, or otherwise provides that individual education plan 114.29 health-related services impact benefits for persons enrolled in 114.30 medical assistance or MinnesotaCare, the amendments to this 114.31 subdivision adopted in 2002 are repealed on the effective date 114.32 of any federal or state law or regulation that imposes the 114.33 limits. In that event, districts must obtain informed consent 114.34 consistent with this subdivision as it existed prior to the 2002 114.35 amendments and subdivision 5, before seeking reimbursement for 114.36 children enrolled in medical assistance under chapter 256B or 115.1 MinnesotaCare under chapter 256L who have no other health care 115.2 coverage. 115.3 Sec. 11. Minnesota Statutes 2002, section 125A.28, is 115.4 amended to read: 115.5 125A.28 [STATE INTERAGENCY COORDINATING COUNCIL.] 115.6 An interagency coordinating council of at least 17, but not 115.7 more than 25 members is established, in compliance with Public 115.8 LawNumber102-119, section 682. The members must be appointed 115.9 by the governor. Council members must elect the council chair. 115.10 The representative of the commissioner may not serve as the 115.11 chair. The council must be composed of at least five parents, 115.12 including persons of color, of children with disabilities under 115.13 age 12, including at least three parents of a child with a 115.14 disability under age seven, five representatives of public or 115.15 private providers of services for children with disabilities 115.16 under age five, including a special education director, county 115.17 social service director, local Head Start director, and a 115.18 community health services or public health nursing 115.19 administrator, one member of the senate, one member of the house 115.20 of representatives, one representative of teacher preparation 115.21 programs in early childhood-special education or other 115.22 preparation programs in early childhood intervention, at least 115.23 one representative of advocacy organizations for children with 115.24 disabilities under age five, one physician who cares for young 115.25 children with special health care needs, one representative each 115.26 from the commissioners of commerce,children, families, and115.27learningeducation, health, human services, a representative 115.28 from the state agency responsible for child care, and a 115.29 representative from Indian health services or a tribal council. 115.30 Section 15.059, subdivisions 2 to 5, apply to the council. The 115.31 council must meet at least quarterly. 115.32 The council must address methods of implementing the state 115.33 policy of developing and implementing comprehensive, 115.34 coordinated, multidisciplinary interagency programs of early 115.35 intervention services for children with disabilities and their 115.36 families. 116.1 The duties of the council include recommending policies to 116.2 ensure a comprehensive and coordinated system of all state and 116.3 local agency services for children under age five with 116.4 disabilities and their families. The policies must address how 116.5 to incorporate each agency's services into a unified state and 116.6 local system of multidisciplinary assessment practices, 116.7 individual intervention plans, comprehensive systems to find 116.8 children in need of services, methods to improve public 116.9 awareness, and assistance in determining the role of interagency 116.10 early intervention committees. 116.11 By September 1, the council must recommend to the governor 116.12 and the commissioners ofchildren, families, and learning116.13 education, health, human services, commerce, and economic 116.14 security policies for a comprehensive and coordinated system. 116.15 Notwithstanding any other law to the contrary, the state 116.16 interagency coordinating council expires on June 30,20032005. 116.17 Sec. 12. Minnesota Statutes 2002, section 125A.30, is 116.18 amended to read: 116.19 125A.30 [INTERAGENCY EARLY INTERVENTION COMMITTEES.] 116.20 (a) A school district, group of districts, or special 116.21 education cooperative, in cooperation with the health and human 116.22 service agencies located in the county or counties in which the 116.23 district or cooperative is located, must establish an 116.24 interagency early intervention committee for children with 116.25 disabilities under age five and their families under this 116.26 section, and for children with disabilities ages three to 22 116.27 consistent with the requirements under sections 125A.023 and 116.28 125A.027. Committees must include representatives of localand116.29regionalhealth, education, and county human service agencies, 116.30 county boards, school boards, early childhood family education 116.31 programs, Head Start, parents of young children with 116.32 disabilities under age 12, child care resource and referral 116.33 agencies, school readiness programs, current service providers, 116.34 and may also include representatives from other private or 116.35 public agencies and school nurses. The committee must elect a 116.36 chair from among its members and must meet at least quarterly. 117.1 (b) The committee must develop and implement interagency 117.2 policies and procedures concerning the following ongoing duties: 117.3 (1) develop public awareness systems designed to inform 117.4 potential recipient families of available programs and services; 117.5 (2) implement interagency child find systems designed to 117.6 actively seek out, identify, and refer infants and young 117.7 children with, or at risk of, disabilities and their families; 117.8 (3) establish and evaluate the identification, referral, 117.9 child and family assessment systems, procedural safeguard 117.10 process, and community learning systems to recommend, where 117.11 necessary, alterations and improvements; 117.12 (4) assure the development of individualized family service 117.13 plans for all eligible infants and toddlers with disabilities 117.14 from birth through age two, and their families, and individual 117.15 education plans and individual service plans when necessary to 117.16 appropriately serve children with disabilities, age three and 117.17 older, and their families and recommend assignment of financial 117.18 responsibilities to the appropriate agencies; 117.19 (5) encourage agencies to develop individual family service 117.20 plans for children with disabilities, age three and older; 117.21 (6) implement a process for assuring that services involve 117.22 cooperating agencies at all steps leading to individualized 117.23 programs; 117.24 (7) facilitate the development of a transitional plan if a 117.25 service provider is not recommended to continue to provide 117.26 services; 117.27 (8) identify the current services and funding being 117.28 provided within the community for children with disabilities 117.29 under age five and their families; 117.30 (9) develop a plan for the allocation and expenditure of 117.31 additional state and federal early intervention funds under 117.32 United States Code, title 20, section 1471 et seq. (Part H, 117.33 Public LawNumber102-119) and United States Code, title 20, 117.34 section 631, et seq. (Chapter I, Public LawNumber89-313); and 117.35 (10) develop a policy that is consistent with section 117.36 13.05, subdivision 9, and federal law to enable a member of an 118.1 interagency early intervention committee to allow another member 118.2 access to data classified as not public. 118.3 (c) The local committee shall also: 118.4 (1) participate in needs assessments and program planning 118.5 activities conducted by local social service, health and 118.6 education agencies for young children with disabilities and 118.7 their families; and 118.8 (2) review and comment on the early intervention section of 118.9 the total special education system for the district, the county 118.10 social service plan, the section or sections of the community 118.11 health services plan that address needs of and service 118.12 activities targeted to children with special health care 118.13 needs, the section on children with special needs in the county 118.14 child care fund plan, sections in Head Start plans on 118.15 coordinated planning and services for children with special 118.16 needs, any relevant portions of early childhood education plans, 118.17 such as early childhood family education or school readiness, or 118.18 other applicable coordinated school and community plans for 118.19 early childhood programs and services, and the section of the 118.20 maternal and child health special project grants that address 118.21 needs of and service activities targeted to children with 118.22 chronic illness and disabilities. 118.23 Sec. 13. Minnesota Statutes 2002, section 125A.76, 118.24 subdivision 1, is amended to read: 118.25 Subdivision 1. [DEFINITIONS.] For the purposes of this 118.26 section, the definitions in this subdivision apply. 118.27 (a) "Base year" for fiscal year 1998 and later fiscal years 118.28 means the second fiscal year preceding the fiscal year for which 118.29 aid will be paid. 118.30 (b) "Basic revenue" has the meaning given it in section 118.31 126C.10, subdivision 2. For the purposes of computing basic 118.32 revenue pursuant to this section, each child with a disability 118.33 shall be counted as prescribed in section 126C.05, subdivision 1. 118.34 (c) "Essential personnel" means teachers, cultural 118.35 liaisons, related services, and support services staff providing 118.36 direct services to students. Essential personnel may also 119.1 include special education paraprofessionals or clericals 119.2 providing support to teachers and students by preparing 119.3 paperwork and making arrangements related to special education 119.4 compliance requirements, including parent meetings and 119.5 individual education plans. 119.6 (d) "Average daily membership" has the meaning given it in 119.7 section 126C.05. 119.8 (e) "Program growth factor" means1.08 for fiscal year119.92002, and1.046 for fiscal year 2003, and 1.0 for fiscal year 119.10 2004 and later. 119.11 Sec. 14. Minnesota Statutes 2002, section 125A.76, 119.12 subdivision 4, is amended to read: 119.13 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.] The state 119.14 total special education aid for fiscal year20002004 equals 119.15$463,000,000$530,642,000. The state total special education 119.16 aid for fiscal year20012005 equals$474,000,000$529,164,000. 119.17 The state total special education aid for later fiscal years 119.18 equals: 119.19 (1) the state total special education aid for the preceding 119.20 fiscal year; times 119.21 (2) the program growth factor; times 119.22 (3) the ratio of the state total average daily membership 119.23 for the current fiscal year to the state total average daily 119.24 membership for the preceding fiscal year. 119.25 Sec. 15. Minnesota Statutes 2002, section 125A.79, 119.26 subdivision 1, is amended to read: 119.27 Subdivision 1. [DEFINITIONS.] For the purposes of this 119.28 section, the definitions in this subdivision apply. 119.29 (a) "Unreimbursed special education cost" means the sum of 119.30 the following: 119.31 (1) expenditures for teachers' salaries, contracted 119.32 services, supplies, equipment, and transportation services 119.33 eligible for revenue under section 125A.76; plus 119.34 (2) expenditures for tuition bills received under sections 119.35 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 119.36 under section 125A.76, subdivision 2; minus 120.1 (3) revenue for teachers' salaries, contracted services, 120.2 supplies, and equipment under section 125A.76; minus 120.3 (4) tuition receipts under sections 125A.03 to 125A.24 and 120.4 125A.65 for services eligible for revenue under section 125A.76, 120.5 subdivision 2. 120.6 (b) "General revenue" means for fiscal year 1996, the sum 120.7 of the general education revenue according to section 126C.10, 120.8 subdivision 1, as adjusted according to section 127A.47, 120.9 subdivision 7, plus the total referendum revenue according to 120.10 section 126C.17, subdivision 4. For fiscal years 1997 and 120.11 later, "general revenue" means the sum of the general education 120.12 revenue according to section 126C.10, subdivision 1, as adjusted 120.13 according to section 127A.47, subdivisions 7 and 8, plus the 120.14 total referendum revenue minus transportation sparsity revenue 120.15 minus total operating capital revenue. 120.16 (c) "Average daily membership" has the meaning given it in 120.17 section 126C.05. 120.18 (d) "Program growth factor" means1.044 for fiscal year120.192002 and1.02 for fiscal year 2003, and 1.0 for fiscal year 2004 120.20 and later. 120.21 Sec. 16. Minnesota Statutes 2002, section 125A.79, 120.22 subdivision 6, is amended to read: 120.23 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 120.24 The state total special education excess cost aid for fiscal 120.25 year 2004 equals $92,067,000. The state total special education 120.26 aid for fiscal year 2005 equals $91,811,000. The state total 120.27 special education excess cost aid for fiscal year20022006 and 120.28 later fiscal years equals: 120.29 (1) the state total special education excess cost aid for 120.30 the preceding fiscal year; times 120.31 (2) the program growth factor; times 120.32 (3) the ratio of the state total average daily membership 120.33 for the current fiscal year to the state total average daily 120.34 membership for the preceding fiscal year. 120.35 Sec. 17. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION AID.] 120.36 (a) For fiscal year 2004, a district shall receive special 121.1 education cross-subsidy reduction aid equal to $5,000,000 times 121.2 the ratio of the district's special education excess cost aid 121.3 for the previous fiscal year according to Minnesota Statutes, 121.4 section 125A.79, subdivision 7, to the state total special 121.5 education excess cost aid for the previous fiscal year according 121.6 to Minnesota Statutes, section 125A.79, subdivision 6. 121.7 (b) For fiscal year 2005, a district shall receive special 121.8 education cross-subsidy reduction aid equal to $15,000,000 times 121.9 the ratio of the district's special education excess cost aid 121.10 for the previous fiscal year according to Minnesota Statutes, 121.11 section 125A.79, subdivision 7, to the state total special 121.12 education excess cost aid for the previous fiscal year according 121.13 to Minnesota Statutes, section 125A.79, subdivision 6. 121.14 (c) Special education cross-subsidy reduction aid must be 121.15 used to pay for a district's unfunded special education costs 121.16 that would otherwise be cross-subsidized by a district's general 121.17 education revenue. 121.18 Sec. 18. [IMPACT OF WAIVING SPECIFIC SPECIAL EDUCATION 121.19 REQUIREMENTS THAT EXCEED FEDERAL LAW; THREE-YEAR PILOT PROJECT.] 121.20 Subdivision 1. [ESTABLISHMENT; GOAL.] A three-year pilot 121.21 project is established to permit independent school district No. 121.22 535, Rochester, and up to three other geographically diverse 121.23 school districts or cooperative units under Minnesota Statutes, 121.24 section 125A.11, subdivision 3, selected by the commissioner of 121.25 education to determine the impact, if any, of waiving specific 121.26 special education requirements listed in subdivision 3 on the 121.27 quality and cost-effectiveness of the instructional services and 121.28 educational outcomes provided to eligible students by the 121.29 project participant. 121.30 Subd. 2. [ELIGIBILITY; APPLICATIONS.] The commissioner 121.31 must transmit information about the pilot project and make 121.32 application forms available to interested school districts or 121.33 cooperative units. Applications must be submitted to the 121.34 commissioner by July 1, 2003. An applicant must identify the 121.35 specific special education requirements listed in subdivision 3 121.36 for which the applicant seeks a waiver and indicate how the 122.1 applicant proposes to modify the activities and procedures 122.2 affected by the waiver. The commissioner must approve the 122.3 applications by August 1, 2003. 122.4 Subd. 3. [WAIVERS.] The following state special education 122.5 requirements are waived for the 2003-2004, 2004-2005, and 122.6 2005-2006 school years for independent school district No. 535, 122.7 Rochester, and the other school districts or cooperative units 122.8 participating in this pilot project: 122.9 (1) Minnesota Statutes, section 125A.56, governing 122.10 prereferral interventions; 122.11 (2) Minnesota Statutes, section 125A.08, paragraph (a), 122.12 clause (1), governing transitional services for students when 122.13 reaching age 14 or grade 9, who transition from secondary 122.14 services to postsecondary education and training, employment, 122.15 community participation, recreation and leisure, and home 122.16 living; 122.17 (3) Minnesota Statutes, section 125A.22, governing 122.18 community transition interagency committees; and 122.19 (4) Minnesota Statutes, section 125A.023, governing 122.20 coordinated interagency services but only affecting eligible 122.21 children with disabilities age seven or older. 122.22 Subd. 4. [STUDENTS' RIGHTS.] Eligible students enrolled in 122.23 a district or receiving special instruction and services through 122.24 a cooperative unit that is participating in this pilot project 122.25 remain entitled to the procedural protections provided under 122.26 federal law in any matter that affects the students' 122.27 identification, evaluation, and placement or change in 122.28 placement, or protections provided under state law in dismissal 122.29 proceedings that may result in students' suspension, exclusion, 122.30 or expulsion. Project participants must ensure that students' 122.31 civil rights are protected, provide equal educational 122.32 opportunities, and prohibit discrimination. Failure to comply 122.33 with this subdivision will at least cause a district or 122.34 cooperative unit to become ineligible to participate in the 122.35 pilot project. 122.36 Subd. 5. [TECHNICAL ASSISTANCE.] The commissioner must 123.1 provide project participants, upon request, assistance in 123.2 developing and implementing a valid and uniform procedure under 123.3 subdivision 6 to evaluate the participants' experience. 123.4 Subd. 6. [EVALUATION; REPORT.] All participating school 123.5 districts and cooperative units must evaluate the impact, if 123.6 any, of waiving specific special education requirements listed 123.7 in subdivision 3 on the quality and cost-effectiveness of the 123.8 instructional services and educational outcomes provided to 123.9 eligible students by the project participant. Project 123.10 participants must focus the evaluation on the overall efficacy 123.11 of modifying the activities and procedures affected by the 123.12 waiver. The evaluation must include a mechanism for documenting 123.13 parents' response to the pilot project. Project participants 123.14 must submit to the commissioner a progress report by September 123.15 1, 2004, and a final report by November 1, 2005. The 123.16 commissioner must compile and present the results of the reports 123.17 to the legislature by February 1, 2006, and recommend 123.18 appropriate amendments to the statutory requirements listed in 123.19 subdivision 3. 123.20 [EFFECTIVE DATE.] This section is effective the day 123.21 following final enactment. 123.22 Sec. 19. [DEPARTMENT RESPONSIBILITY.] 123.23 By January 1, 2004, the commissioner of education must 123.24 adopt rules that: 123.25 (1) establish criteria for selecting hearing officers, the 123.26 standards of conduct to which a hearing officer must adhere, and 123.27 a process to evaluate the hearing system; 123.28 (2) ensure that appropriately trained and knowledgeable 123.29 persons conduct due process hearings in compliance with federal 123.30 law; and 123.31 (3) create standards for expedited due process hearings 123.32 under federal law. 123.33 By March 1, 2004, the commissioner of education must 123.34 develop and make available a notice for participants in 123.35 state-provided dispute resolution processes that informs 123.36 participants of their rights concerning dispute resolution. 124.1 Sec. 20. [APPROPRIATIONS.] 124.2 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 124.3 indicated in this section are appropriated from the general fund 124.4 to the department of education for the fiscal years designated. 124.5 Subd. 2. [SPECIAL EDUCATION; REGULAR.] For special 124.6 education aid under Minnesota Statutes, section 125A.75: 124.7 $499,172,000 ..... 2004 124.8 $529,504,000 ..... 2005 124.9 The 2004 appropriation includes $90,577,000 for 2003 and 124.10 $408,595,000 for 2004. 124.11 The 2005 appropriation includes $122,047,000 for 2004 and 124.12 $407,457,000 for 2005. 124.13 Subd. 3. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION 124.14 AID.] For special education cross-subsidy reduction aid under 124.15 section 17: 124.16 $ 5,000,000 ..... 2004 124.17 $15,000,000 ..... 2005 124.18 This is a onetime appropriation. 124.19 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 124.20 under Minnesota Statutes, section 125A.75, subdivision 3, for 124.21 children with disabilities placed in residential facilities 124.22 within the district boundaries for whom no district of residence 124.23 can be determined: 124.24 $2,177,000 ..... 2004 124.25 $2,244,000 ..... 2005 124.26 If the appropriation for either year is insufficient, the 124.27 appropriation for the other year is available. 124.28 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 124.29 teacher travel for home-based services under Minnesota Statutes, 124.30 section 125A.75, subdivision 1: 124.31 $213,000 ..... 2004 124.32 $260,000 ..... 2005 124.33 The 2004 appropriation includes $34,000 for 2003 and 124.34 $179,000 for 2004. 124.35 The 2005 appropriation includes $53,000 for 2004 and 124.36 $207,000 for 2005. 125.1 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 125.2 cost aid under Minnesota Statutes, section 125A.79, subdivision 125.3 7: 125.4 $90,699,000 ..... 2004 125.5 $92,950,000 ..... 2005 125.6 The 2004 appropriation includes $41,754,000 for 2003 and 125.7 $48,945,000 for 2004. 125.8 The 2005 appropriation includes $43,122,000 for 2004 and 125.9 $49,828,000 for 2005. 125.10 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 125.11 paying the costs a district incurs under Minnesota Statutes, 125.12 section 125A.75, subdivision 8: 125.13 $346,000 ..... 2004 125.14 $356,000 ..... 2005 125.15 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 125.16 transition programs for children with disabilities under 125.17 Minnesota Statutes, section 124D.454: 125.18 $8,359,000 ..... 2004 125.19 $8,867,000 ..... 2005 125.20 The 2004 appropriation includes $1,516,000 for 2003 and 125.21 $6,843,000 for 2004. 125.22 The 2005 appropriation includes $2,043,000 for 2004 and 125.23 $6,824,000 for 2005. 125.24 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 125.25 reimbursing serving school districts for unreimbursed eligible 125.26 expenditures attributable to children placed in the serving 125.27 school district by court action under Minnesota Statutes, 125.28 section 125A.79, subdivision 4: 125.29 $152,000 ..... 2004 125.30 $160,000 ..... 2005 125.31 Subd. 10. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 125.32 special education out-of-state tuition according to Minnesota 125.33 Statutes, section 125A.79, subdivision 8: 125.34 $250,000 ..... 2004 125.35 $250,000 ..... 2005 125.36 Sec. 21. [REPEALER.] 126.1 Minnesota Statutes 2002, sections 125A.023, subdivision 5; 126.2 125A.09; 125A.47; and 125A.79, subdivision 2, are repealed. 126.3 ARTICLE 4 126.4 FACILITIES AND TECHNOLOGY 126.5 Section 1. Minnesota Statutes 2002, section 123B.51, 126.6 subdivision 3, is amended to read: 126.7 Subd. 3. [LEASEROOMS OR BUILDINGSREAL PROPERTY.] When 126.8 necessary, the board may leaserooms or buildingsreal property 126.9 for school purposes. 126.10 Sec. 2. Minnesota Statutes 2002, section 123B.51, 126.11 subdivision 4, is amended to read: 126.12 Subd. 4. [LEASE FOR NONSCHOOL PURPOSE.] (a) The board may 126.13 lease to any person, business, or organizationa schoolhouse126.14 real property that is not needed for school purposes, or part of 126.15a schoolhousethe property that is not needed for school 126.16 purposes if the board determines that leasing part ofa126.17schoolhousethe property does not interfere with the educational 126.18 programs taking placein the rest of the buildingon the 126.19 property. The board may charge and collect reasonable 126.20 consideration for the lease and may determine the terms and 126.21 conditions of the lease. 126.22 (b) In districts with outstanding bonds, the net proceeds 126.23 of the lease must be first deposited in the debt retirement fund 126.24 of the district in an amount sufficient to meet when due that 126.25 percentage of the principal and interest payments for 126.26 outstanding bonds that is ascribable to the payment of expenses 126.27 necessary and incidental to the construction or purchase of the 126.28 particular building or property that is leased. Any remaining 126.29 net proceeds in these districts may be deposited in either the 126.30 debt redemption fund or operating capitalexpenditure126.31fundaccount. All net proceeds of the lease in districts 126.32 without outstanding bonds shall be deposited in the operating 126.33 capitalexpenditure fundaccount of the district. 126.34 (c) The board may make capital improvements, including126.35fixtures, to a schoolhouse or a portion thereofto the real 126.36 property, not exceeding in cost the replacement value of 127.1 theschoolhouseproperty, to facilitate its rental, and the 127.2 lease ofanthe improvedschoolhouseproperty, or part of it, 127.3 shall provide for rentals which will recover the cost of the 127.4 improvements over the initial term of the lease. 127.5 Notwithstanding paragraph (b), the portion of the rentals 127.6 representing the cost of the improvements shall be deposited in 127.7 the operating capitalexpenditure fundaccount of the district 127.8 and the balance of the rentals shall be used as provided in 127.9 paragraph (b). 127.10 Sec. 3. Minnesota Statutes 2002, section 123B.52, is 127.11 amended by adding a subdivision to read: 127.12 Subd. 1a. [CONSTRUCTION CONTRACTS.] In entering into a 127.13 contract for, or in calling for bids for, the construction or 127.14 repair of a facility, a board may not require that any 127.15 contractor or subcontractor that is not signatory to an 127.16 agreement with a labor organization at the time it makes a bid 127.17 or is awarded a contract, do any of the following as a condition 127.18 of performing work on the construction or repair project: 127.19 (1) enter into or agree to adhere to or otherwise observe 127.20 the wage, benefit, or economic terms of, or incur any economic 127.21 detriment pursuant to, any agreement with any labor organization 127.22 in connection with the public improvement; or 127.23 (2) enter into any agreement that requires the employees of 127.24 that contractor or subcontractor to do either of the following 127.25 as a condition of employment or continued employment: 127.26 (i) become members of or become affiliated with a labor 127.27 organization; or 127.28 (ii) pay dues or fees to a labor organization. 127.29 Sec. 4. Minnesota Statutes 2002, section 123B.53, 127.30 subdivision 4, is amended to read: 127.31 Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 127.32 service equalization revenue of a district equals the sum of the 127.33 first tier debt service equalization revenue and the second tier 127.34 debt service equalization revenue. 127.35 (b) The first tier debt service equalization revenue of a 127.36 district equals the greater of zero or the eligible debt service 128.1 revenue minus the amount raised by a levy of 15 percent times 128.2 the adjusted net tax capacity of the district minus the second 128.3 tier debt service equalization revenue of the district. 128.4 (c) The second tier debt service equalization revenue of a 128.5 district equals the greater of zero or the eligible debt service 128.6 revenue, excluding alternative facilities levies under section 128.7 123B.59, subdivision 5, minus the amount raised by a levy of 25 128.8 percent times the adjusted net tax capacity of the district. 128.9 [EFFECTIVE DATE.] This section is effective for revenue for 128.10 fiscal year 2005. 128.11 Sec. 5. Minnesota Statutes 2002, section 123B.57, 128.12 subdivision 1, is amended to read: 128.13 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] (a) To receive 128.14 health and safety revenue for any fiscal year a district must 128.15 submit to the commissioner an application for aid and levy by 128.16 the date determined by the commissioner. The application may be 128.17 for hazardous substance removal, fire and life safety code 128.18 repairs, labor and industry regulated facility and equipment 128.19 violations, and health, safety, and environmental management, 128.20 including indoor air quality management. The application must 128.21 include a health and safety program adopted by the school 128.22 district board. The program must include the estimated cost, 128.23 per building, of the program by fiscal year. Upon approval 128.24 through the adoption of a resolution by each of an intermediate 128.25 district's member school district boards and the approval of the 128.26 department ofchildren, families, and learningeducation, a 128.27 school district may include its proportionate share of the costs 128.28 of health and safety projects for an intermediate district in 128.29 its application. 128.30 (b) Health and safety projects with an estimated cost of 128.31 $500,000 or more per site, approved after February 1, 2003, are 128.32 not eligible for health and safety revenue. Health and safety 128.33 projects with an estimated cost of $500,000 or more per site, 128.34 approved after February 1, 2003, that meet all other 128.35 requirements for health and safety funding, are eligible for 128.36 alternative facilities bonding and levy revenue according to 129.1 section 123B.59. A school board shall not separate portions of 129.2 a single project into components to qualify for health and 129.3 safety revenue, and shall not combine unrelated projects into a 129.4 single project to qualify for alternative facilities bonding and 129.5 levy revenue. 129.6 [EFFECTIVE DATE.] This section is effective the day 129.7 following final enactment and applies to projects approved after 129.8 February 1, 2003, for taxes payable in 2004 and later. 129.9 Sec. 6. Minnesota Statutes 2002, section 123B.57, 129.10 subdivision 4, is amended to read: 129.11 Subd. 4. [HEALTH AND SAFETY LEVY.] To receive health and 129.12 safety revenue, a district may levy an amount equal to the 129.13 district's health and safety revenue as defined in subdivision 3 129.14 multiplied by the lesser of one, or the ratio of the quotient 129.15 derived by dividing the adjusted net tax capacity of the 129.16 district for the year preceding the year the levy is certified 129.17 by the adjusted marginal cost pupil units in the district for 129.18 the school year to which the levy is attributable, 129.19 to$3,956$2,935. 129.20 Sec. 7. Minnesota Statutes 2002, section 123B.57, 129.21 subdivision 6, is amended to read: 129.22 Subd. 6. [USES OF HEALTH AND SAFETY REVENUE.] (a) Health 129.23 and safety revenue may be used only for approved expenditures 129.24 necessary to correct fire and life safety hazards,life safety129.25hazards,or for the removal or encapsulation of asbestos from 129.26 school buildings or property owned or being acquired by the 129.27 district, asbestos-related repairs, cleanup and disposal of 129.28 polychlorinated biphenyls found in school buildings or property 129.29 owned or being acquired by the district, or the cleanup, 129.30 removal, disposal, and repairs related to storing heating fuel 129.31 or transportation fuels such as alcohol, gasoline, fuel oil, and 129.32 special fuel, as defined in section 296A.01,labor and129.33industryMinnesota occupational safety and health administration 129.34 regulated facility and equipment hazards, indoor air quality 129.35 mold abatement, upgrades or replacement of mechanical 129.36 ventilation systems to meet American Society of Heating, 130.1 Refrigerating and Air Conditioning Engineers standards and state 130.2 mechanical code, department of health food code and swimming 130.3 pool hazards excluding depth correction, and health, safety, and 130.4 environmental management. Health and safety revenue must not be 130.5 used to finance a lease purchase agreement, installment purchase 130.6 agreement, or other deferred payments agreement. Health and 130.7 safety revenue must not be used for the construction of new 130.8 facilities or the purchase of portable classrooms, for interest 130.9 or other financing expenses, or for energy efficiency projects 130.10 under section 123B.65. The revenue may not be used for a 130.11 building or property or part of a building or property used for 130.12 post-secondary instruction or administration or for a purpose 130.13 unrelated to elementary and secondary education. 130.14 (b) Notwithstanding paragraph (a), health and safety 130.15 revenue must not be used for replacement of building materials 130.16 or facilities including roof, walls, windows, internal fixtures 130.17 and flooring, nonhealth and safety costs associated with 130.18 demolition of facilities, structural repair or replacement of 130.19 facilities due to unsafe conditions, violence prevention and 130.20 facility security, ergonomics, building and heating, ventilating 130.21 and air conditioning supplies, maintenance, cleaning, testing, 130.22 and calibration activities. All assessments, investigations, 130.23 inventories, and support equipment not leading to the 130.24 engineering or construction of a project shall be included in 130.25 the health, safety, and environmental management costs in 130.26 subdivision 8, paragraph (a). 130.27 [EFFECTIVE DATE.] This section is effective the day 130.28 following final enactment and applies to projects approved after 130.29 February 1, 2003, for taxes payable in 2004 and later. 130.30 Sec. 8. Minnesota Statutes 2002, section 123B.59, 130.31 subdivision 1, is amended to read: 130.32 Subdivision 1. [TO QUALIFY.] (a) An independent or special 130.33 school district qualifies to participate in the alternative 130.34 facilities bonding and levy program if the district has: 130.35 (1) more than 66 students per grade; 130.36 (2) over 1,850,000 square feet of space and the average age 131.1 of building space is 15 years or older or over 1,500,000 square 131.2 feet and the average age of building space is 35 years or older; 131.3 (3) insufficient funds from projected health and safety 131.4 revenue and capital facilities revenue to meet the requirements 131.5 for deferred maintenance, to make accessibility improvements, or 131.6 to make fire, safety, or health repairs; and 131.7 (4) a ten-year facility plan approved by the commissioner 131.8 according to subdivision 2. 131.9 (b) An independent or special school district not eligible 131.10 to participate in the alternative facilities bonding and levy 131.11 program under paragraph (a) qualifies for limited participation 131.12 in the program if the district has: 131.13 (1) one or more health and safety projects with an 131.14 estimated cost of $500,000 or more per site that would qualify 131.15 for health and safety revenue except for the project size 131.16 limitation in section 123B.57, subdivision 1, paragraph (b); and 131.17 (2) insufficient funds from capital facilities revenue to 131.18 fund those projects. 131.19 [EFFECTIVE DATE.] This section is effective for revenue for 131.20 fiscal year 2005. 131.21 Sec. 9. Minnesota Statutes 2002, section 123B.59, 131.22 subdivision 2, is amended to read: 131.23 Subd. 2. [TEN-YEARFACILITY PLAN.] (a) A district 131.24 qualifyingdistrictunder subdivision 1, paragraph (a), must 131.25 have a ten-year facility plan approved by the commissioner that 131.26 includes an inventory of projects and costs that would be 131.27 eligible for: 131.28 (1) health and safety revenue, without restriction as to 131.29 project size; 131.30 (2) disabled access levy; and 131.31 (3) deferred capital expenditures and maintenance projects 131.32 necessary to prevent further erosion of facilities. 131.33 (b) A district qualifying under subdivision 1, paragraph 131.34 (b), must have a five-year plan approved by the commissioner 131.35 that includes an inventory of projects and costs for health and 131.36 safety projects with an estimated cost of $500,000 or more per 132.1 site that would qualify for health and safety revenue except for 132.2 the project size limitation in section 123B.57, subdivision 1, 132.3 paragraph (b). 132.4 (c) The school district must: 132.5 (1) annually update theplanplans; 132.6 (2) biennially submit a facility maintenance plan; and 132.7 (3) indicate whether the district will issue bonds to 132.8 finance the plan or levy for the costs. 132.9 [EFFECTIVE DATE.] This section is effective for revenue for 132.10 fiscal year 2005. 132.11 Sec. 10. Minnesota Statutes 2002, section 123B.59, 132.12 subdivision 3, is amended to read: 132.13 Subd. 3. [BOND AUTHORIZATION.] (a) A school district, upon132.14approval of its board and the commissioner,may issue general 132.15 obligation bonds under this section to financeapproved132.16 facilities plans approved by its board and the commissioner. 132.17 Chapter 475, except sections 475.58 and 475.59, must be complied 132.18 with. The district may levy under subdivision 5 for the debt 132.19 service revenue. The authority to issue bonds under this 132.20 section is in addition to any bonding authority authorized by 132.21 this chapter, or other law. The amount of bonding authority 132.22 authorized under this section must be disregarded in calculating 132.23 the bonding or net debt limits of this chapter, or any other law 132.24 other than section 475.53, subdivision 4. 132.25 (b) Before a district issues bonds under this subdivision, 132.26 it must publish notice of the intended projects, the amount of 132.27 the bond issue, and the total amount of district indebtedness. 132.28 (c) A bond issue tentatively authorized by the board under 132.29 this subdivision becomes finally authorized unless a petition 132.30 signed by more than 15 percent of the registered voters of the 132.31 district is filed with the school board within 30 days of the 132.32 board's adoption of a resolution stating the board's intention 132.33 to issue bonds. The percentage is to be determined with 132.34 reference to the number of registered voters in the district on 132.35 the last day before the petition is filed with the board. The 132.36 petition must call for a referendum on the question of whether 133.1 to issue the bonds for the projects under this section. The 133.2 approval of 50 percent plus one of those voting on the question 133.3 is required to pass a referendum authorized by this section. 133.4 [EFFECTIVE DATE.] This section is effective the day 133.5 following final enactment and applies to bonds issued after 133.6 April 1, 2003, for taxes payable in 2004 and later. 133.7 Sec. 11. Minnesota Statutes 2002, section 123B.59, is 133.8 amended by adding a subdivision to read: 133.9 Subd. 3a. [LEVY AUTHORIZATION.] (a) A school district may 133.10 levy under this section to finance the portion of facilities 133.11 plans approved by its board and the commissioner that are not 133.12 financed through bond issues according to subdivision 3. 133.13 (b) Before a district levies under this subdivision, it 133.14 must publish notice of the intended projects, including the 133.15 total estimated project cost. 133.16 (c) A levy tentatively authorized by the board under this 133.17 subdivision becomes finally authorized unless a petition signed 133.18 by more than 15 percent of the registered voters of the district 133.19 is filed with the school board within 30 days of the board's 133.20 adoption of a resolution stating the board's intention to levy. 133.21 The percentage is to be determined with reference to the number 133.22 of registered voters in the district on the last day before the 133.23 petition is filed with the board. The petition must call for a 133.24 referendum on the question of whether to levy for the projects 133.25 under this section. The approval of 50 percent plus one of 133.26 those voting on the question is required to pass a referendum 133.27 authorized by this section. The referendum must be held on a 133.28 date set by the board. The ballot must provide a general 133.29 description of the proposed projects and state the estimated 133.30 total cost of the projects, the specific number of years, not to 133.31 exceed ten, for which the referendum authorization applies, the 133.32 maximum amount of the levy for each year, and the estimated tax 133.33 rate as a percentage of net tax capacity for the amount 133.34 specified for the first year and for the maximum amount 133.35 specified in the schedule. The ballot must contain a textual 133.36 portion with the information required in this subdivision and a 134.1 question stating substantially the following: 134.2 "Shall the alternative facilities levy proposed by the 134.3 board of ............ School District No. ............ be 134.4 approved?" 134.5 If approved, the amount stated for each year may be 134.6 certified for the number of years approved. The district must 134.7 notify the commissioner of the results of the referendum. 134.8 [EFFECTIVE DATE.] This section is effective the day 134.9 following final enactment and applies to levies for taxes 134.10 payable in 2004 and later. 134.11 Sec. 12. Minnesota Statutes 2002, section 123B.59, 134.12 subdivision 5, is amended to read: 134.13 Subd. 5. [LEVY AUTHORIZED.] A district, after local board134.14approval,may levy for costs related to an approved facility 134.15 plan as follows: 134.16 (a) if the district has indicated to the commissioner that 134.17 bonds will be issued, the district may levy for the principal 134.18 and interest payments on outstanding bonds issued according to 134.19 subdivision 3after reduction for any alternative facilities aid134.20receivable under subdivision 6; or 134.21 (b) if the district has indicated to the commissioner that 134.22 the plan will be funded through levy, the district may levy 134.23 according tothe schedule approved in the plan after reduction134.24for any alternative facilities aid receivable undersubdivision 134.2563a. 134.26 [EFFECTIVE DATE.] This section is effective for taxes 134.27 payable in 2004. 134.28 Sec. 13. Minnesota Statutes 2002, section 123B.63, 134.29 subdivision 1, is amended to read: 134.30 Subdivision 1. [CREATION OF ADOWN PAYMENTCAPITAL PROJECT 134.31 REFERENDUM ACCOUNT.] A district may create adown payment134.32 capital project referendum account as a separate account in 134.33 its general fund or its building construction fund. All 134.34 proceeds from thedown paymentcapital project levy must be 134.35 deposited in the capitalexpenditure fund and transferred to134.36this accountproject referendum account in its general fund. 135.1 The portion of the proceeds to be used for building construction 135.2 must be transferred to the capital project referendum account in 135.3 its building construction fund. Interest income attributable to 135.4 thedown paymentcapital project referendum account must be 135.5 credited to the account. 135.6 Sec. 14. Minnesota Statutes 2002, section 123B.63, 135.7 subdivision 2, is amended to read: 135.8 Subd. 2. [USES OF THE ACCOUNT.] Money in thedown payment135.9 capital project referendum account must be usedas a down135.10paymentfor thefuturecosts of acquisition and betterment for a 135.11 project that has been reviewed under section 123B.71 and has 135.12 been approved according to subdivision 3. 135.13 Sec. 15. Minnesota Statutes 2002, section 123B.63, 135.14 subdivision 3, is amended to read: 135.15 Subd. 3. [FACILITIES DOWN PAYMENTCAPITAL PROJECT LEVY 135.16 REFERENDUM.] A district may levy the local tax rate approved by 135.17 a majority of the electors voting on the question to provide 135.18 fundsfor a down paymentfor an approved project. The election 135.19 must take place no more than five years before the estimated 135.20 date of commencement of the project. The referendum must be 135.21 held on a date set by the board. A referendum for a project not 135.22 receiving a positive review and comment by the commissioner 135.23 under section 123B.71 must be approved by at least 60 percent of 135.24 the voters at the election. The referendum may be called by the 135.25 school board and may be held: 135.26 (1) separately, before an election for the issuance of 135.27 obligations for the project under chapter 475; or 135.28 (2) in conjunction with an election for the issuance of 135.29 obligations for the project under chapter 475; or 135.30 (3) notwithstanding section 475.59, as a conjunctive 135.31 question authorizing both thedown paymentcapital project levy 135.32 and the issuance of obligations for the project under chapter 135.33 475. Any obligations authorized for a project may be issued 135.34 within five years of the date of the election. 135.35 The ballot must provide a general description of the 135.36 proposed project, state the estimated total cost of the project, 136.1 state whether the project has received a positive or negative 136.2 review and comment from the commissioner, state the maximum 136.3 amount of thedown paymentcapital project levy as a percentage 136.4 of net tax capacity, state the amount that will be raised by 136.5 that local tax rate in the first year it is to be levied, and 136.6 state the maximum number of years that the levy authorization 136.7 will apply. 136.8 The ballot must contain a textual portion with the 136.9 information required in this section and a question stating 136.10 substantially the following: 136.11 "Shall thedown paymentcapital project levy proposed by 136.12 the board of .......... School District No. .......... be 136.13 approved?" 136.14 If approved, the amount provided by the approved local tax 136.15 rate applied to the net tax capacity for the year preceding the 136.16 year the levy is certified may be certified for the number of 136.17 years approved. 136.18 In the event a conjunctive question proposes to authorize 136.19 both thedown paymentcapital project levy and the issuance of 136.20 obligations for the project, appropriate language authorizing 136.21 the issuance of obligations must also be included in the 136.22 question. 136.23 The district must notify the commissioner of the results of 136.24 the referendum. 136.25 Sec. 16. Minnesota Statutes 2002, section 123B.63, 136.26 subdivision 4, is amended to read: 136.27 Subd. 4. [EXCESSBUILDING CONSTRUCTION FUNDLEVY 136.28 PROCEEDS.] Any funds remaining in thedown paymentcapital 136.29 project referendum account that are not applied to the payment 136.30 of the costs of the approved project before its final completion 136.31 must be transferred to the district's debt redemption fund. 136.32 Sec. 17. Minnesota Statutes 2002, section 125B.21, is 136.33 amended to read: 136.34 125B.21 [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 136.35 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 136.36 of the Minnesota education telecommunications council 137.1 established in Laws 1993, First Special Session chapter 2, is 137.2 expanded to include representatives of elementary and secondary 137.3 education. The membership shall consist of three 137.4 representatives from the University of Minnesota; three 137.5 representatives of the board of trustees for Minnesota state 137.6 colleges and universities; one representative of the higher 137.7 education services offices; one representative appointed by the 137.8 private college council; one representative selected by the 137.9 commissioner of administration; eight representatives selected 137.10 by the commissioner ofchildren, families, and learning137.11 education, at least one of which must come from each of the six 137.12 higher education telecommunication regions; a representative 137.13 from the office of technology; two members each from the senate 137.14 and the house of representatives selected by the subcommittee on 137.15 committees of the committee on rules and administration of the 137.16 senate and the speaker of the house, one member from each body 137.17 must be a member of the minority party; and three 137.18 representatives of libraries, one representing regional public 137.19 libraries, one representing multitype libraries, and one 137.20 representing community libraries, selected by the governor; and 137.21 two members, one selected from and representing the higher 137.22 education regional coordinators and one selected from and 137.23 representing the kindergarten through grade 12 cluster regions. 137.24 The council shall serve as a forum to establish and advocate for 137.25 a statewide vision and plans for the use of distance learning 137.26 technologies, including: 137.27 (1) the coordination and collaboration of distance learning 137.28 opportunities; 137.29 (2) the implementation of the use of distance learning 137.30 technologies; 137.31 (3) the collaboration of distance learning users; 137.32 (4) the implementation of educational policy relating to 137.33 telecommunications; 137.34 (5) the exchange of ideas; 137.35 (6) the communications with state government and related 137.36 agencies and entities; 138.1 (7) the coordination of networks for post-secondary 138.2 campuses, kindergarten through grade 12 education, and regional 138.3 and community libraries; and 138.4 (8) the promotion of consistency of the operation of the 138.5 learning network with standards of an open system architecture. 138.6 The council expires June 30, 2004. 138.7 Sec. 18. Minnesota Statutes 2002, section 126C.40, 138.8 subdivision 1, is amended to read: 138.9 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 138.10 independent or a special school district or a group of 138.11 independent or special school districts finds it economically 138.12 advantageous to rent or lease a building or land for any 138.13 instructional purposes or for school storage or furniture 138.14 repair, and it determines that the operating capital revenue 138.15 authorized under section 126C.10, subdivision 13, is 138.16 insufficient for this purpose, it may apply to the commissioner 138.17 for permission to make an additional capital expenditure levy 138.18 for this purpose. An application for permission to levy under 138.19 this subdivision must contain financial justification for the 138.20 proposed levy, the terms and conditions of the proposed lease, 138.21 and a description of the space to be leased and its proposed use. 138.22 (b) The criteria for approval of applications to levy under 138.23 this subdivision must include: the reasonableness of the price, 138.24 the appropriateness of the space to the proposed activity, the 138.25 feasibility of transporting pupils to the leased building or 138.26 land, conformity of the lease to the laws and rules of the state 138.27 of Minnesota, and the appropriateness of the proposed lease to 138.28 the space needs and the financial condition of the district. 138.29 The commissioner must not authorize a levy under this 138.30 subdivision in an amount greater than 90 percent of the cost to 138.31 the district of renting or leasing a building or land for 138.32 approved purposes. The proceeds of this levy must not be used 138.33 for custodial or other maintenance services. A district may not 138.34 levy under this subdivision for the purpose of leasing or 138.35 renting a district-owned building or site to itself. 138.36 (c) For agreements finalized after July 1, 1997, a district 139.1 may not levy under this subdivision for the purpose of leasing: 139.2 (1) a newly constructed building used primarily for regular 139.3 kindergarten, elementary, or secondary instruction; or (2) a 139.4 newly constructed building addition or additions used primarily 139.5 for regular kindergarten, elementary, or secondary instruction 139.6 that contains more than 20 percent of the square footage of the 139.7 previously existing building. 139.8 (d) Notwithstanding paragraph (b), a district may levy 139.9 under this subdivision for the purpose of leasing or renting a 139.10 district-owned building or site to itself only if the amount is 139.11 needed by the district to make payments required by a lease 139.12 purchase agreement, installment purchase agreement, or other 139.13 deferred payments agreement authorized by law, and the levy 139.14 meets the requirements of paragraph (c). A levy authorized for 139.15 a district by the commissioner under this paragraph may be in 139.16 the amount needed by the district to make payments required by a 139.17 lease purchase agreement, installment purchase agreement, or 139.18 other deferred payments agreement authorized by law, provided 139.19 that any agreement include a provision giving the school 139.20 districts the right to terminate the agreement annually without 139.21 penalty. 139.22 (e) The total levy under this subdivision for a district 139.23 for any year must not exceed$100$90 times the resident pupil 139.24 units for the fiscal year to which the levy is attributable. 139.25 (f) For agreements for which a review and comment have been 139.26 submitted to the department ofchildren, families, and139.27learningeducation after April 1, 1998, the term "instructional 139.28 purpose" as used in this subdivision excludes expenditures on 139.29 stadiums. 139.30 (g) The commissioner ofchildren, families, and139.31learningeducation may authorize a school district to exceed the 139.32 limit in paragraph (e) if the school district petitions the 139.33 commissioner for approval. The commissioner shall grant 139.34 approval to a school district to exceed the limit in paragraph 139.35 (e) for not more than five years if the district meets the 139.36 following criteria: 140.1 (1) the school district has been experiencing pupil 140.2 enrollment growth in the preceding five years; 140.3 (2) the purpose of the increased levy is in the long-term 140.4 public interest; 140.5 (3) the purpose of the increased levy promotes colocation 140.6 of government services; and 140.7 (4) the purpose of the increased levy is in the long-term 140.8 interest of the district by avoiding over construction of school 140.9 facilities. 140.10 (h) A school district that is a member of an intermediate 140.11 school district may include in its authority under this 140.12 section 90 percent of the costs associated with leases of 140.13 administrative and classroom space for intermediate school 140.14 district programs. This authority must not exceed$25$22.50 140.15 times the adjusted marginal cost pupil units of the member 140.16 districts. This authority is in addition to any other authority 140.17 authorized under this section. 140.18 (i) In addition to the allowable capital levies in 140.19 paragraph (a), a district that is a member of the "Technology 140.20 and Information Education Systems" data processing joint board, 140.21 that finds it economically advantageous to enter into a lease 140.22 purchase agreement for a building for a group of school 140.23 districts or special school districts for staff development 140.24 purposes, may levy for its portion of lease costs attributed to 140.25 the district within the total levy limit in paragraph (e). 140.26 [EFFECTIVE DATE.] This section is effective for taxes 140.27 payable in 2004. 140.28 Sec. 19. Minnesota Statutes 2002, section 126C.63, 140.29 subdivision 5, is amended to read: 140.30 Subd. 5. [LEVY.] "Levy" means a district's net debt 140.31 service levy after the reduction of debt service equalization 140.32 aid under section 123B.53, subdivision 6. For taxes payable in 140.3319942003 and later, each district's maximum effort debt service 140.34 levy for purposes of subdivision 8, must be reduced by an equal 140.35 number of percentage points if the commissioner of finance 140.36 determines that the levy reduction will not result in 141.1 astatewide property taxpayment from the general fund in the 141.2 state treasury according to section 16A.641, as would be 141.3 required under Minnesota Statutes1992, section124.46126C.72, 141.4 subdivision 3. A district's levy that is adjusted under this 141.5 section must not be reduced below22.330.1 percent of the 141.6 district's adjusted net tax capacity. 141.7 Sec. 20. Minnesota Statutes 2002, section 126C.63, 141.8 subdivision 8, is amended to read: 141.9 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 141.10 effort debt service levy" means the lesser of: 141.11 (1) a levy in whichever of the following amounts is 141.12 applicable: 141.13(a)(i) in any district receiving a debt service loan for a 141.14 debt service levy payable in 2002 and thereafter, or granted a 141.15 capital loan after January 1,20012002, a levy in total dollar 141.16 amount computed at a rate of3040 percent of adjusted net tax 141.17 capacity for taxes payable in 2002 and thereafter; 141.18(b)(ii) in any district receiving a debt service loan for 141.19 a debt service levy payable in1991 and thereafter2001 or 141.20 earlier, or granted a capital loanafterbefore January1141.21 2,19902001, a levy in a total dollar amount computed at a rate 141.22 of2432 percent of adjusted net tax capacity for taxes payable 141.23 in19912002 and thereafter; 141.24(c) in any district granted a debt service loan after July141.2531, 1981, or granted a capital loan which is approved after July141.2631, 1981, a levy in a total dollar amount computed as a tax rate141.27of 21.92 percent on the adjusted net tax capacity for taxes141.28payable in 1991 and thereafter;or 141.29 (2) a levy in any district for which a capital loan was 141.30 approved prior to August 1, 1981, a levy in a total dollar 141.31 amount equal to the sum of the amount of the required debt 141.32 service levy and an amount which when levied annually will in 141.33 the opinion of the commissioner be sufficient to retire the 141.34 remaining interest and principal on any outstanding loans from 141.35 the state within 30 years of the original date when the capital 141.36 loan was granted. 142.1 (b) The board in any district affected by the provisions of 142.2 paragraph (a), clause (2), may elect instead to determine the 142.3 amount of its levy according to the provisions of paragraph (a), 142.4 clause (1). If a district's capital loan is not paid within 30 142.5 years because it elects to determine the amount of its levy 142.6 according to the provisions of paragraph (a), clause (2), the 142.7 liability of the district for the amount of the difference 142.8 between the amount it levied under paragraph (a), clause (2), 142.9 and the amount it would have levied under paragraph (a), clause 142.10 (1), and for interest on the amount of that difference, must not 142.11 be satisfied and discharged pursuant to Minnesota Statutes 1988, 142.12 or an earlier edition of Minnesota Statutes if applicable, 142.13 section 124.43, subdivision 4. 142.14 Sec. 21. Minnesota Statutes 2002, section 126C.69, 142.15 subdivision 2, is amended to read: 142.16 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 142.17 1999, a district is not eligible for a capital loan unless the 142.18 district's estimated net debt tax rate as computed by the 142.19 commissioner after debt service equalization aid would be more 142.20 than3040 percent of adjusted net tax capacity. The estimate 142.21 must assume a 20-year maturity schedule for new debt. 142.22 Sec. 22. Minnesota Statutes 2002, section 126C.69, 142.23 subdivision 9, is amended to read: 142.24 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 142.25 recommended for approval for a district exceeding an amount 142.26 computed as follows: 142.27 (1) the amount requested by the district under subdivision 142.28 6; 142.29 (2) plus the aggregate principal amount of general 142.30 obligation bonds of the district outstanding on June 30 of the 142.31 year following the year the application was received, not 142.32 exceeding the limitation on net debt of the district in section 142.33 475.53, subdivision 4, or450607 percent of its adjusted net 142.34 tax capacity as most recently determined, whichever is less; 142.35 (3) less the maximum net debt permissible for the district 142.36 on December 1 of the year the application is received, under the 143.1 limitation in section 475.53, subdivision 4, or450607 percent 143.2 of its adjusted net tax capacity as most recently determined, 143.3 whichever is less; 143.4 (4) less any amount by which the amount voted exceeds the 143.5 total cost of the facilities for which the loan is granted. 143.6 (b) The loan may be approved in an amount computed as 143.7 provided in paragraph (a), clauses (1) to (3), subject to later 143.8 reduction according to paragraph (a), clause (4). 143.9 Sec. 23. Minnesota Statutes 2002, section 177.42, 143.10 subdivision 2, is amended to read: 143.11 Subd. 2. [PROJECT.] "Project" means erection, 143.12 construction, remodeling, or repairing of a public building or 143.13 other public work, except a public school facility, financed in 143.14 whole or part by state funds. 143.15 [EFFECTIVE DATE.] This section is effective the day 143.16 following final enactment and applies to all contracts for 143.17 erecting, constructing, remodeling, or repairing a public school 143.18 facility for students in any grades kindergarten through 12 143.19 entered into after that date. 143.20 Sec. 24. Minnesota Statutes 2002, section 475.61, 143.21 subdivision 1, is amended to read: 143.22 Subdivision 1. [DEBT SERVICE RESOLUTION.] The governing 143.23 body of any municipality issuing general obligations shall, 143.24 prior to delivery of the obligations, levy by resolution a 143.25 direct general ad valorem tax upon all taxable property in the 143.26 municipality to be spread upon the tax rolls for each year of 143.27 the term of the obligations. The tax levies for all years for 143.28 municipalities other than school districts shall be specified 143.29 and such that if collected in full they, together with estimated 143.30 collections of special assessments and other revenues pledged 143.31 for the payment of said obligations, will produce at least five 143.32 percent in excess of the amount needed to meet when due the 143.33 principal and interest payments on the obligations. The tax 143.34 levies for school districts shall be specified and such that if 143.35 collected in full they, together with estimated collection of 143.36 other revenues pledged for the payment of the obligations, will 144.1 producebetweenfiveand sixpercent in excess of the amount 144.2 needed to meet when due the principal and interest payments on 144.3 the obligations, rounded up to the nearest dollar; except that, 144.4 with the permission of the commissioner ofchildren, families,144.5and learningeducation, a school board may specify a tax levy in 144.6 a higher amount if necessary either to meet an anticipated tax 144.7 delinquency or for cash flow needs to meet the required payments 144.8 from the debt redemption fund. Such resolution shall 144.9 irrevocably appropriate the taxes so levied and any special 144.10 assessments or other revenues so pledged to the municipality's 144.11 debt service fund or a special debt service fund or account 144.12 created for the payment of one or more issues of obligations. 144.13 The governing body may, in its discretion, at any time after the 144.14 obligations have been authorized, adopt a resolution levying 144.15 only a portion of such taxes, to be filed, assessed, extended, 144.16 collected, and remitted as hereinafter provided, and the amount 144.17 or amounts therein levied shall be credited against the tax 144.18 required to be levied prior to delivery of the obligations. 144.19 Sec. 25. Minnesota Statutes 2002, section 475.61, 144.20 subdivision 3, is amended to read: 144.21 Subd. 3. [IRREVOCABILITY.] (a) Tax levies so made and 144.22 filed shall be irrevocable, except as provided in this 144.23 subdivision. 144.24 (b) For purposes of this subdivision, "excess debt 144.25 redemption fund balance" means the greater of zero or the 144.26 balance in the district's debt redemption fund as of June 30 of 144.27 the fiscal year ending in the year before the year the levy is 144.28 certified, minus any debt redemption fund balance attributable 144.29 to refunding of existing bonds, minus the amount of the levy 144.30 reduction for the current year and the prior year under 144.31 paragraphs (e) and (f), minus five percent of the district's 144.32 required debt service levy for the next year. 144.33 (c) By July 15 each year, a district shall report to the 144.34 commissioner ofchildren, families, and learningeducation the 144.35 amount of the districts' debt redemption fund balance as of June 144.36 30 of the prior year attributable to refunding of existing bonds. 145.1 (d) By August 15 each year, the commissioner shall 145.2 determine the excess debt redemption fund balance for each 145.3 school district, and shall certify the amount of the excess 145.4 balance to the school district superintendent. 145.5 (e) In each year when a district has an excess debt 145.6 redemption fund balance, the commissioner shallreport the145.7amount of the excess to the county auditor and the auditor shall145.8 reduce the tax levy otherwise to be included in the rolls next 145.9 prepared by the amount certified. 145.10 (f) The school board may, with the approval of the 145.11 commissioner, retain all or part of the excess balance if it is 145.12 necessary to ensure the prompt and full payment of its 145.13 obligations and any call premium on its obligations, will be 145.14 used for redemption of its obligations in accordance with their 145.15 terms, or to level out the debt service tax rate, excluding the 145.16 debt excess adjustment, for its obligations over the next two 145.17 years. A school district requesting authority to retain all or 145.18 part of the excess balance shall provide written documentation 145.19 to the commissioner describing the rationale for its request by 145.20 September 15 including the issuance of new obligations within 145.21 the next year or the refunding of existing obligations. A 145.22 school district that retains an excess may request to transfer 145.23 the excess to its operating capital account in the general fund 145.24 under section 123B.80. The school board may, with the approval 145.25 of the commissioner, specify a tax levy in a higher amount if 145.26 necessary because of anticipated tax delinquency or for cash 145.27 flow needs to meet the required payments from the debt 145.28 redemption fund. 145.29 (g) If the governing body, including the governing body of 145.30 a school district, in any year makes an irrevocable 145.31 appropriation to the debt service fund of money actually on hand 145.32 or if there is on hand any excess amount in the debt service 145.33 fund, the recording officer may certify to the county auditor 145.34 the fact and amount thereof and the auditor shall reduce by the 145.35 amount so certified the amount otherwise to be included in the 145.36 rolls next thereafter prepared. 146.1 Sec. 26. [BONDS; MOUNDS VIEW.] 146.2 Notwithstanding Minnesota Statutes, section 123B.59, 146.3 subdivision 3, independent school district No. 621, Mounds View, 146.4 may issue bonds according to Minnesota Statutes 2002, section 146.5 123B.59, subdivision 3, for projects approved by the 146.6 commissioner before February 1, 2003. 146.7 [EFFECTIVE DATE.] This section is effective the day 146.8 following final enactment. 146.9 Sec. 27. [LEASE LEVY EXCEPTION.] 146.10 Notwithstanding Minnesota Statutes, section 126C.40, 146.11 subdivision 1, a school district that has entered into a 146.12 completed agreement under Laws 2000, chapter 492, article 1, 146.13 section 3, subdivision 4, may continue to levy for 100 percent 146.14 of the costs of any lease required by the agreement. 146.15 Sec. 28. [PROPERTY SALE; ST. FRANCIS SCHOOL DISTRICT.] 146.16 Notwithstanding Minnesota Statutes, section 123B.51, 146.17 subdivision 6, or any other law to the contrary, independent 146.18 school district No. 15, St. Francis, may deposit the proceeds 146.19 from the sale of land that was purchased with funds obtained 146.20 according to Laws 1992, chapter 558, section 7, subdivision 7, 146.21 in the district's general fund reserved for operating capital 146.22 account. The district may only use the proceeds of the sale for 146.23 projects designed to create or improve safe walking routes for 146.24 the students of independent school district No. 15, St. Francis. 146.25 [EFFECTIVE DATE.] This section is effective the day 146.26 following final enactment. 146.27 Sec. 29. [STUDY OF SCHOOL FACILITIES FORMULAS.] 146.28 The commissioner of children, families and learning must 146.29 develop for the task force on school finance reform a report 146.30 that examines issues of facility maintenance where the 146.31 renovation or maintenance costs of a facility exceed the cost of 146.32 facility replacement. The plan must examine the effects of the 146.33 changes in the health and safety revenue program and the 146.34 alternative facilities program contained in this article on 146.35 facilities maintenance. To the extent possible, the 146.36 commissioner must include a case study, including the microbe 147.1 growth infestation at Forest elementary school located in 147.2 independent school district No. 281, Robbinsdale. If the 147.3 commissioner and the task force determine that the existing 147.4 facility formulas are insufficient to address the needs of 147.5 schools such as Forest elementary school, the commissioner must 147.6 recommend formula changes to the education committees of the 147.7 legislature by January 15, 2004, that appropriately respond to 147.8 school district needs. 147.9 Sec. 30. [APPROPRIATIONS.] 147.10 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 147.11 indicated in this section are appropriated from the general fund 147.12 to the department of education for the fiscal years designated. 147.13 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 147.14 safety aid according to Minnesota Statutes, section 123B.57, 147.15 subdivision 5: 147.16 $7,602,000 ..... 2004 147.17 $6,137,000 ..... 2005 147.18 The 2004 appropriation includes $1,516,000 for 2003 and 147.19 $6,086,000 for 2004. 147.20 The 2005 appropriation includes $1,817,000 for 2004 and 147.21 $4,320,000 for 2005. 147.22 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 147.23 according to Minnesota Statutes, section 123B.53, subdivision 6: 147.24 $33,416,000 ..... 2004 147.25 $37,521,000 ..... 2005 147.26 The 2004 appropriation includes $5,586,000 for 2003 and 147.27 $27,830,000 for 2004. 147.28 The 2005 appropriation includes $8,312,000 for 2004 and 147.29 $29,209,000 for 2005. 147.30 Subd. 4. [ALTERNATIVE FACILITIES BONDING AID.] For 147.31 alternative facilities bonding aid, according to Minnesota 147.32 Statutes, section 123B.59, subdivision 1: 147.33 $18,129,000 ..... 2004 147.34 $ 4,436,000 ..... 2005 147.35 The 2004 appropriation includes $3,278,000 for 2003 and 147.36 $14,851,000 for 2004. 148.1 The 2005 appropriation includes $4,436,000 for 2004 and $0 148.2 for 2005. 148.3 Sec. 31. [REPEALER.] 148.4 (a) Minnesota Statutes 2002, section 125B.11, is repealed. 148.5 (b) Minnesota Statutes 2002, section 123B.59, subdivisions 148.6 6 and 7, are repealed effective for revenue for fiscal year 2005. 148.7 ARTICLE 5 148.8 NUTRITION; SCHOOL ACCOUNTING; OTHER PROGRAMS 148.9 Section 1. Minnesota Statutes 2002, section 12.21, 148.10 subdivision 3, is amended to read: 148.11 Subd. 3. [SPECIFIC AUTHORITY.] In performing duties under 148.12 this chapter and to effect its policy and purpose, the governor 148.13 may: 148.14 (1) make, amend, and rescind the necessary orders and rules 148.15 to carry out the provisions of this chapter and section 216C.15 148.16 within the limits of the authority conferred by this section, 148.17 with due consideration of the plans of the federal government 148.18 and without complying with sections 14.001 to 14.69, but no 148.19 order or rule has the effect of law except as provided by 148.20 section 12.32; 148.21 (2) ensure that a comprehensive emergency operations plan 148.22 and emergency management program for this state are developed 148.23 and maintained, and are integrated into and coordinated with the 148.24 emergency plans of the federal government and of other states to 148.25 the fullest possible extent; 148.26 (3) in accordance with the emergency operations plan and 148.27 the emergency management program of this state, procure 148.28 supplies, equipment, and facilities; institute training programs 148.29 and public information programs; and take all other preparatory 148.30 steps, including the partial or full activation of emergency 148.31 management organizations in advance of actual disaster to ensure 148.32 the furnishing of adequately trained and equipped forces of 148.33 emergency management personnel in time of need; 148.34 (4) make studies and surveys of the industries, resources, 148.35 and facilities in this state as may be necessary to ascertain 148.36 the capabilities of the state for emergency management and to 149.1 plan for the most efficient emergency use of those industries, 149.2 resources, and facilities; 149.3 (5) on behalf of this state, enter into mutual aid 149.4 arrangements or cooperative agreements with other states, tribal 149.5 authorities, and Canadian provinces, and coordinate mutual aid 149.6 plans between political subdivisions of this state; 149.7 (6) delegate administrative authority vested in the 149.8 governor under this chapter, except the power to make rules, and 149.9 provide for the subdelegation of that authority; 149.10 (7) cooperate with the president and the heads of the armed 149.11 forces, the emergency management agency of the United States and 149.12 other appropriate federal officers and agencies, and with the 149.13 officers and agencies of other states in matters pertaining to 149.14 the emergency management of the state and nation, including the 149.15 direction or control of: 149.16 (i) emergency preparedness drills and exercises; 149.17 (ii) warnings and signals for drills or actual emergencies 149.18 and the mechanical devices to be used in connection with them; 149.19 (iii) shutting off water mains, gas mains, electric power 149.20 connections and the suspension of all other utility services; 149.21 (iv) the conduct of persons in the state, including 149.22 entrance or exit from any stricken or threatened public place, 149.23 occupancy of facilities, and the movement and cessation of 149.24 movement of pedestrians, vehicular traffic, and all forms of 149.25 private and public transportation during, prior, and subsequent 149.26 to drills or actual emergencies; 149.27 (v) public meetings or gatherings; and 149.28 (vi) the evacuation, reception, and sheltering of persons; 149.29 (8) contribute to a political subdivision, within the 149.30 limits of the appropriation for that purpose, not more than 25 149.31 percent of the cost of acquiring organizational equipment that 149.32 meets standards established by the governor; 149.33 (9) formulate and execute, with the approval of the 149.34 executive council, plans and rules for the control of traffic in 149.35 order to provide for the rapid and safe movement over public 149.36 highways and streets of troops, vehicles of a military nature, 150.1 and materials for national defense and war or for use in any war 150.2 industry, for the conservation of critical materials, or for 150.3 emergency management purposes; coordinate the activities of the 150.4 departments or agencies of the state and its political 150.5 subdivisions concerned directly or indirectly with public 150.6 highways and streets, in a manner that will best effectuate 150.7 those plans; 150.8 (10) alter or adjust by executive order, without complying 150.9 with sections 14.01 to 14.69, the working hours, work days and 150.10 work week of, and annual and sick leave provisions and payroll 150.11 laws regarding all state employees in the executive branch as 150.12 the governor deems necessary to minimize the impact of the 150.13 disaster or emergency, conforming the alterations or adjustments 150.14 to existing state laws, rules, and collective bargaining 150.15 agreements to the extent practicable; 150.16 (11) authorize the commissioner ofchildren, families, and150.17learningeducation to alter school schedules, curtail school 150.18 activities, or order schools closedwithout affecting state aid150.19to schools,as defined in section 120A.05, subdivisions 9, 11, 150.20 13, and 17, and including charter schools under section 124D.10, 150.21 and elementary schools enrolling prekindergarten pupils in 150.22 district programs; and 150.23 (12) transfer the direction, personnel, or functions of 150.24 state agencies to perform or facilitate response and recovery 150.25 programs. 150.26 Sec. 2. Minnesota Statutes 2002, section 84A.51, 150.27 subdivision 4, is amended to read: 150.28 Subd. 4. [COUNTY'S USE OF FUNDS.] The funds received by 150.29 each county must be apportioned by the county auditor as follows: 150.30 (1) 30 percent to a county development fund, which is 150.31 created, to be spent under the direction of the county board for 150.32 the rehabilitation and development of the portion of the county 150.33 within the conservation area; 150.34 (2) 40 percent to thecapital outlaygeneral fund of the 150.35 school district from which derived; 150.36 (3) 20 percent to the county revenue fund; and 151.1 (4) ten percent to the township road and bridge fund of the 151.2 township from which derived. 151.3 If the proceeds are derived from an unorganized township 151.4 with no levy for road and bridge purposes, the township portion 151.5 must be credited to the county revenue fund. 151.6 Sec. 3. Minnesota Statutes 2002, section 120A.05, 151.7 subdivision 9, is amended to read: 151.8 Subd. 9. [ELEMENTARY SCHOOL.] "Elementary school" means 151.9 any school with building, equipment, courses of study, class 151.10 schedules, enrollment of pupils ordinarily in prekindergarten 151.11 through grade 6 or any portion thereof, and staff meeting the 151.12 standards established by the commissioner. 151.13The commissioner of children, families, and learning shall151.14not close a school or deny any state aids to a district for its151.15elementary schools because of enrollment limitations classified151.16in accordance with the provisions of this subdivision.151.17 Sec. 4. Minnesota Statutes 2002, section 124D.11, 151.18 subdivision 9, is amended to read: 151.19 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 151.20 Notwithstanding section 127A.45, subdivision 3, aid payments for 151.21 the current fiscal year to a charter school not in its first 151.22 year of operation shall be of an equal amount on each of the 23 151.23 payment dates. A charter school in its first year of operation 151.24 shall receive, on its first payment date, ten percent of its 151.25 cumulative amount guaranteed for the year and 22 payments of an 151.26 equal amount thereafter the sum of which shall be 90 percent of 151.27 the cumulative amount guaranteed. 151.28 (b) Notwithstanding paragraph (a), for a charter school 151.29 ceasing operation prior to the end of a school year,8377 151.30 percent of the amount due for the school year may be paid to the 151.31 school after audit of prior fiscal year and current fiscal year 151.32 pupil counts. 151.33 (c) Notwithstanding section 127A.45, subdivision 3, and 151.34 paragraph (a),8377 percent of the start-up cost aid under 151.35 subdivision 8 shall be paid within 45 days after the first day 151.36 of student attendance for that school year. 152.1 (d) In order to receive state aid payments under this 152.2 subdivision, a charter school in its first three years of 152.3 operation must submit a quarterly report to the department of 152.4children, families, and learningeducation. The report must 152.5 list each student by grade, show the student's start and end 152.6 dates, if any, with the charter school, and for any student 152.7 participating in a learning year program, the report must list 152.8 the hours and times of learning year activities. The report 152.9 must be submitted not more than two weeks after the end of the 152.10 calendar quarter to the department. The department must develop 152.11 a Web-based reporting form for charter schools to use when 152.12 submitting enrollment reports. A charter school in its fourth 152.13 and subsequent year of operation must submit enrollment 152.14 information to the department in the form and manner requested 152.15 by the department. 152.16 [EFFECTIVE DATE.] This section is effective for revenue for 152.17 fiscal year 2004. 152.18 Sec. 5. [124D.1158] [SCHOOL BREAKFAST PROGRAM.] 152.19 Subdivision 1. [PURPOSE.] The purpose of the school 152.20 breakfast program is to provide affordable morning nutrition to 152.21 children so that they can effectively learn. Public and 152.22 nonpublic schools that participate in the federal school 152.23 breakfast program may receive state breakfast aid. Schools 152.24 shall encourage all children to eat a nutritious breakfast, 152.25 either at home or at school, and shall work to eliminate 152.26 barriers to breakfast participation at school such as inadequate 152.27 facilities and transportation. 152.28 Subd. 2. [PROGRAM; ELIGIBILITY.] Each school year, public 152.29 and nonpublic schools that participate in the federal school 152.30 breakfast program are eligible for the state breakfast program. 152.31 Subd. 3. [PROGRAM REIMBURSEMENT.] Each school year, the 152.32 state must reimburse each participating school 30 cents for each 152.33 reduced price breakfast and 55 cents for each fully paid 152.34 breakfast. 152.35 Subd. 4. [NO FEES.] A school that receives school 152.36 breakfast aid under this section must make breakfast available 153.1 without charge to all participating students who qualify for 153.2 free or reduced price meals. 153.3 Sec. 6. Minnesota Statutes 2002, section 124D.118, 153.4 subdivision 4, is amended to read: 153.5 Subd. 4. [REIMBURSEMENT.] In accordance with program 153.6 guidelines, the commissioner shallprepay orreimburse each 153.7 participatingdistricts for the state share of the district's153.8cost for providingpublic or nonpublic school nine cents for 153.9 each half-pint of milk that is served to kindergarten students 153.10 and is not part of a school lunch or breakfast reimbursed under 153.11 section 124D.111 or 124D.1158. 153.12 Sec. 7. Minnesota Statutes 2002, section 126C.42, 153.13 subdivision 1, is amended to read: 153.14 Subdivision 1. [1977 STATUTORY OPERATING DEBT.] (a) In 153.15 each year in which so required by this subdivision, a district 153.16 must make an additional levy to eliminate its statutory 153.17 operating debt, determined as of June 30, 1977, and certified 153.18 and adjusted by the commissioner. This levy shall not be made 153.19 in more than 30 successive years and each year before it is 153.20 made, it must be approved by the commissioner and the approval 153.21 shall specify its amount. This levy shall be an amount which is 153.22 equal to the amount raised by a levy of a net tax rate of1.98153.23 2.67 percent times the adjusted net tax capacity of the district 153.24 for the preceding year for taxes payable in20002002 and 153.25 thereafter; provided that in the last year in which the district 153.26 is required to make this levy, it must levy an amount not to 153.27 exceed the amount raised by a levy of a net tax rate of1.98153.28 2.67 percent times the adjusted net tax capacity of the district 153.29 for the preceding year for taxes payable in20002002 and 153.30 thereafter. When the sum of the cumulative levies made pursuant 153.31 to this subdivision and transfers made according to section 153.32 123B.79, subdivision 6, equals an amount equal to the statutory 153.33 operating debt of the district, the levy shall be discontinued. 153.34 (b) The district must establish a special account in the 153.35 general fund which shall be designated "appropriated fund 153.36 balance reserve account for purposes of reducing statutory 154.1 operating debt" on its books and records. This account shall 154.2 reflect the levy authorized pursuant to this subdivision. The 154.3 proceeds of this levy must be used only for cash flow 154.4 requirements and must not be used to supplement district 154.5 revenues or income for the purposes of increasing the district's 154.6 expenditures or budgets. 154.7 (c)Any district which is required to levy pursuant to this154.8subdivision must certify the maximum levy allowable under154.9section 126C.13, subdivision 2, in that same year.154.10(d)Each district shall make permanent fund balance 154.11 transfers so that the total statutory operating debt of the 154.12 district is reflected in the general fund as of June 30, 1977. 154.13 Sec. 8. Minnesota Statutes 2002, section 126C.43, 154.14 subdivision 2, is amended to read: 154.15 Subd. 2. [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 154.16 FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 154.17 levy 90 percent of theamountsamount exceeding $10 times the 154.18 district's adjusted marginal cost pupil units for the fiscal 154.19 year ending in the year before the year the levy is certified 154.20 necessary (i) to pay the district's obligations under section 154.21 268.052, subdivision 1, andthe amounts necessary(ii) to pay 154.22 for job placement services offered to employees who may become 154.23 eligible for benefits pursuant to section 268.085 for the fiscal 154.24 year the levy is certified. 154.25 [EFFECTIVE DATE.] This section is effective for taxes 154.26 payable in 2004. 154.27 Sec. 9. Minnesota Statutes 2002, section 126C.43, 154.28 subdivision 3, is amended to read: 154.29 Subd. 3. [TAX LEVY FOR JUDGMENT.] A district may levy 90 154.30 percent of theamountsamount exceeding $10 times the district's 154.31 adjusted marginal cost pupil units for the fiscal year ending in 154.32 the year before the year the levy is certified necessary to pay 154.33 judgments against the district under section 123B.25 that became 154.34 final after the date the district certified its proposed levy in 154.35 the previous year. With the approval of the commissioner, a 154.36 district may spread this levy over a period not to exceed three 155.1 years. Upon approval through the adoption of a resolution by 155.2 each of an intermediate district's member school district 155.3 boards, a member school district may include its proportionate 155.4 share of the costs of a judgment against an intermediate school 155.5 district that became final under section 123B.25 after the date 155.6 that the earliest member school district certified its proposed 155.7 levy in the previous year. With the approval of the 155.8 commissioner, an intermediate school district member school 155.9 district may spread this levy over a period not to exceed three 155.10 years. 155.11 [EFFECTIVE DATE.] This section is effective for taxes 155.12 payable in 2004. 155.13 Sec. 10. Minnesota Statutes 2002, section 126C.45, is 155.14 amended to read: 155.15 126C.45 [ICE ARENA LEVY.] 155.16 (a) Each year, an independent school district operating and 155.17 maintaining an ice arena, may levy for the net operational costs 155.18 of the ice arena. The levy may not exceed 90 percent of the net 155.19 actual costs of operation of the arena for the previous year. 155.20 Net actual costs are defined as operating costs less any 155.21 operating revenues. 155.22 (b) Any district operating and maintaining an ice arena 155.23 must demonstrate to the satisfaction of the office of monitoring 155.24 in the department that the district will offer equal sports 155.25 opportunities for male and female students to use its ice arena, 155.26 particularly in areas of access to prime practice time, team 155.27 support, and providing junior varsity and younger level teams 155.28 for girls' ice sports and ice sports offerings. 155.29 [EFFECTIVE DATE.] This section is effective for taxes 155.30 payable in 2004. 155.31 Sec. 11. Minnesota Statutes 2002, section 126C.48, 155.32 subdivision 3, is amended to read: 155.33 Subd. 3. [ADJUSTMENTS.] If any district levy is found to 155.34 be excessive as a result of a decision of the tax court or a 155.35 redetermination by the commissioner of revenue under section 155.36 127A.48, subdivisions 7 to 16, or for any other reason, the 156.1 amount of the excess shall be deducted from the levy certified 156.2 in the next year for the same purpose. If no levy is certified 156.3 in the next year for the same purpose or if the amount certified 156.4 is less than the amount of the excess, the excess must be 156.5 deducted from that levy and the general fund levy certified 156.6 pursuant tosection 126C.13, subdivision 2chapters 122A, 123A, 156.7 123B, 124D, and 126C. If the amount of any aid would have been 156.8 increased in a prior year as a result of a decision of the tax 156.9 court or a redetermination by the commissioner of revenue, the 156.10 amount of the increase shall be added to the amount of current 156.11 aid for the same purposes. 156.12 Sec. 12. Minnesota Statutes 2002, section 127A.45, 156.13 subdivision 2, is amended to read: 156.14 Subd. 2. [DEFINITIONS.] (a) The term "other district 156.15 receipts" means payments by county treasurers pursuant to 156.16 section 276.10, apportionments from the school endowment fund 156.17 pursuant to section 127A.33, apportionments by the county 156.18 auditor pursuant to section 127A.34, subdivision 2, and payments 156.19 to school districts by the commissioner of revenue pursuant to 156.20 chapter 298. 156.21 (b) The term "cumulative amount guaranteed" means the 156.22 product of 156.23 (1) the cumulative disbursement percentage shown in 156.24 subdivision 3; times 156.25 (2) the sum of 156.26 (i)8377 percent of the estimated aid and credit 156.27 entitlements paid according to subdivision 13; plus 156.28 (ii) 100 percent of the entitlements paid according to 156.29 subdivisions 11 and 12; plus 156.30 (iii) the other district receipts. 156.31 (c) The term "payment date" means the date on which state 156.32 payments to districts are made by the electronic funds transfer 156.33 method. If a payment date falls on a Saturday, a Sunday, or a 156.34 weekday which is a legal holiday, the payment shall be made on 156.35 the immediately preceding business day. The commissioner may 156.36 make payments on dates other than those listed in subdivision 3, 157.1 but only for portions of payments from any preceding payment 157.2 dates which could not be processed by the electronic funds 157.3 transfer method due to documented extenuating circumstances. 157.4 Sec. 13. Minnesota Statutes 2002, section 127A.45, 157.5 subdivision 3, is amended to read: 157.6 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] (a)For fiscal157.7year 2003, the commissioner shall pay to a district on the dates157.8indicated an amount computed as follows: the cumulative amount157.9guaranteed minus the sum of (a) the district's other district157.10receipts through the current payment, and (b) the aid and credit157.11payments through the immediately preceding payment. For157.12purposes of this computation, the payment dates and the157.13cumulative disbursement percentages are as follows:157.14Payment datePercentage157.15Payment 1July 15:5.1157.16Payment 2July 30:7.7157.17Payment 3August 15:16.9157.18Payment 4August 30:19.3157.19Payment 5September 15:21.8157.20Payment 6September 30:24.3157.21Payment 7October 15:26.3157.22Payment 8October 30:28.3157.23Payment 9November 15:32.8157.24Payment 10November 30:39.1157.25Payment 11December 15:42.4157.26Payment 12December 30:45.6157.27Payment 13January 15:50.5157.28Payment 14January 30:55.0157.29Payment 15February 15:60.2157.30Payment 16February 28:65.0157.31Payment 17March 15:69.7157.32Payment 18March 30:74.3157.33Payment 19April 15:78.3157.34Payment 20April 30:84.2157.35Payment 21May 15:88.7157.36Payment 22May 30:93.3158.1Payment 23June 20:100.0158.2(b) In addition to the amounts paid under paragraph (a),158.3for fiscal year 2003, the commissioner shall pay to a district158.4on the dates indicated an amount computed as follows:158.5Payment 3August 15: the final adjustment for the158.6prior fiscal year for the state paid158.7property tax credits established in158.8section 273.1392158.9Payment 7October 15: one-half of the final adjustment158.10for the prior fiscal year for all aid158.11entitlements except state paid property158.12tax credits158.13Payment 8October 30: one-half of the final adjustment158.14for the prior fiscal year for all aid158.15entitlements except state paid property158.16tax credits158.17(c)For fiscal year 2004 and later, the commissioner shall 158.18 pay to a district on the dates indicated an amount computed as 158.19 follows: the cumulative amount guaranteed minus the sum of (a) 158.20 the district's other district receipts through the current 158.21 payment, and (b) the aid and credit payments through the 158.22 immediately preceding payment. For purposes of this 158.23 computation, the payment dates and the cumulative disbursement 158.24 percentages are as follows: 158.25 Payment date Percentage 158.26 Payment 1 July 15:5.15.5 158.27 Payment 2 July 30:7.78.0 158.28 Payment 3 August 15:16.917.5 158.29 Payment 4 August 30:19.320.0 158.30 Payment 5 September 15:21.822.5 158.31 Payment 6 September 30:24.325.0 158.32 Payment 7 October 15:26.327.0 158.33 Payment 8 October 30:28.330.0 158.34 Payment 9 November 15:30.332.5 158.35 Payment 10 November 30:35.036.5 158.36 Payment 11 December 15:40.042.0 159.1 Payment 12 December 30:43.045.0 159.2 Payment 13 January 15:48.050.0 159.3 Payment 14 January 30:52.054.0 159.4 Payment 15 February 15:56.058.0 159.5 Payment 16 February 28:61.063.0 159.6 Payment 17 March 15:66.068.0 159.7 Payment 18 March 30:72.074.0 159.8 Payment 19 April 15:76.078.0 159.9 Payment 20 April 30:83.085.0 159.10 Payment 21 May 15:88.090.0 159.11 Payment 22 May 30: 95.0 159.12 Payment 23 June 20: 100.0 159.13(d)(b) In addition to the amounts paid under paragraph 159.14(c)(a), for fiscal year 2004and later, the commissioner shall 159.15 pay to a district on the dates indicated an amount computed as 159.16 follows: 159.17 Payment 3 August 15: the final adjustment for the 159.18 prior fiscal year for the state paid 159.19 property tax credits established in 159.20 section 273.1392 159.21 Payment 4 August 30: one-third of the final adjustment 159.22 for the prior fiscal year for all aid 159.23 entitlements except state paid property 159.24 tax credits 159.25 Payment 6 September 30: one-third of the final adjustment 159.26 for the prior fiscal year for all aid 159.27 entitlements except state paid property 159.28 tax credits 159.29 Payment 8 October 30: one-third of the final adjustment 159.30 for the prior fiscal year for all aid 159.31 entitlements except state paid property 159.32 tax credits 159.33 (c) In addition to the amounts paid under paragraph (a), 159.34 for fiscal year 2005 and later, the commissioner shall pay to a 159.35 district on the dates indicated an amount computed as follows: 159.36 Payment 3 August 15: the final adjustment for the 160.1 prior fiscal year for the state paid 160.2 property tax credits established in 160.3 section 273.1392 160.4 Payment 4 August 30: 30 percent of the final adjustment 160.5 for the prior fiscal year for all aid 160.6 entitlements except state paid property 160.7 tax credits 160.8 Payment 6 September 30: 40 percent of the final adjustment 160.9 for the prior fiscal year for all aid 160.10 entitlements except state paid property 160.11 tax credits 160.12 Payment 8 October 30: 30 percent of the final adjustment 160.13 for the prior fiscal year for all aid 160.14 entitlements except state paid property 160.15 tax credits 160.16 Sec. 14. Minnesota Statutes 2002, section 127A.45, 160.17 subdivision 7a, is amended to read: 160.18 Subd. 7a. [ADVANCE FINAL PAYMENT.] (a) Notwithstanding 160.19 subdivisions 3 and 7, a school district or a charter school 160.20 exceeding its expenditure limitations under section 123B.83 as 160.21 of June 30 of the prior fiscal year may receive a portion of its 160.22 final payment for the current fiscal year on June 20, if 160.23 requested by the district. The amount paid under this 160.24 subdivision must not exceed the lesser of: 160.25 (1) seven percent of the district or charter school's 160.26 general education aid for the current fiscal year; or 160.27 (2) the amount by which the district or charter school's 160.28 net negative unreserved general fund balance as of June 30 of 160.29 the prior fiscal year exceeds 2.5 percent of the district or 160.30 charter school's expenditures for that fiscal year. 160.31 (b) The state total advance final payment under this 160.32 subdivision for any year must not exceed$17,500,000$12,000,000. 160.33 If the amount requested exceeds$17,500,000$12,000,000, the 160.34 advance final payment for each eligible district must be reduced 160.35 proportionately. 160.36 Sec. 15. Minnesota Statutes 2002, section 127A.45, 161.1 subdivision 10, is amended to read: 161.2 Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 161.3 fiscal year state general fund payments for a district 161.4 nonoperating fund must be made at8377 percent of the estimated 161.5 entitlement during the fiscal year of the entitlement. This 161.6 amount shall be paid in 12 equal monthly installments. The 161.7 amount of the actual entitlement, after adjustment for actual 161.8 data, minus the payments made during the fiscal year of the 161.9 entitlement must be paid prior to October 31 of the following 161.10 school year. The commissioner may make advance payments of debt 161.11 service equalization aid or homestead and agricultural credit 161.12 aid for a district's debt service fund earlier than would occur 161.13 under the preceding schedule if the district submits evidence 161.14 showing a serious cash flow problem in the fund. The 161.15 commissioner may make earlier payments during the year and, if 161.16 necessary, increase the percent of the entitlement paid to 161.17 reduce the cash flow problem. 161.18 Sec. 16. Minnesota Statutes 2002, section 127A.45, 161.19 subdivision 13, is amended to read: 161.20 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 161.21 subdivisions 11, 12, 12a, and 14, each fiscal year, all 161.22 education aids and credits in this chapter and chapters 120A, 161.23 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 161.24 section 273.1392, shall be paid at8377 percent of the 161.25 estimated entitlement during the fiscal year of the 161.26 entitlement. For the purposes of this subdivision, a district's 161.27 estimated entitlement for special education excess cost aid 161.28 under section 125A.79 equals 70 percent of the district's 161.29 entitlement for the second prior fiscal year. The final 161.30 adjustment payment, according to subdivision 9, must be the 161.31 amount of the actual entitlement, after adjustment for actual 161.32 data, minus the payments made during the fiscal year of the 161.33 entitlement. 161.34 Sec. 17. Minnesota Statutes 2002, section 127A.45, 161.35 subdivision 14, is amended to read: 161.36 Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid 162.1 according to sections 123B.40 to 123B.48 for pupils attending 162.2 nonpublic schools as follows: 162.3 (1) an advance payment by November 30 equal to8377 162.4 percent of the estimated entitlement for the current fiscal 162.5 year; and 162.6 (2) a final payment by October 31 of the following fiscal 162.7 year, adjusted for actual data. 162.8 If a payment advance to meet cash flow needs is requested 162.9 by a district and approved by the commissioner, the state shall 162.10 pay nonpublic pupil transportation aid according to section 162.11 123B.92 by October 31. 162.12 Sec. 18. Minnesota Statutes 2002, section 127A.45, 162.13 subdivision 14a, is amended to read: 162.14 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 162.15 subdivision 3, the state shall pay 100 percent of the aid for 162.16 the current year according to sections 124D.111, 162.17124D.115,124D.1158, and 124D.118and 83 percent of the aid for162.18the current year according to section 124D.1156based on 162.19 submitted monthly vouchers showing meals and milk served.The162.20remaining 17 percent according to section 124D.1156 shall be162.21paid by October 30 of the following fiscal year.162.22 Sec. 19. Minnesota Statutes 2002, section 127A.45, 162.23 subdivision 16, is amended to read: 162.24 Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 162.25 subdivision 3,8377 percent of the amounts under section 162.26 123A.26, subdivision 3, shall be paid in equal installments on 162.27 August 30, December 30, and March 30, with a1723 percent final 162.28 adjustment payment on October 30 of the next fiscal year. 162.29 Sec. 20. Minnesota Statutes 2002, section 127A.47, 162.30 subdivision 7, is amended to read: 162.31 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 162.32 education aid for districts must be adjusted for each pupil 162.33 attending a nonresident district under sections 123A.05 to 162.34 123A.08, 124D.03, 124D.06,124D.07,124D.08, and 124D.68. The 162.35 adjustments must be made according to this subdivision. 162.36 (a) General education aid paid to a resident district must 163.1 be reduced by an amount equal to the referendum equalization aid 163.2 attributable to the pupil in the resident district. 163.3 (b) General education aid paid to a district serving a 163.4 pupil in programs listed in this subdivision must be increased 163.5 by an amount equal to the referendum equalization aid 163.6 attributable to the pupil in the nonresident district. 163.7 (c) If the amount of the reduction to be made from the 163.8 general education aid of the resident district is greater than 163.9 the amount of general education aid otherwise due the district, 163.10 the excess reduction must be made from other state aids due the 163.11 district. 163.12 (d) The district of residence must pay tuition to a 163.13 district or an area learning center, operated according to 163.14 paragraph (e), providing special instruction and services to a 163.15 pupil with a disability, as defined in section 125A.02, or a 163.16 pupil, as defined in section 125A.51, who is enrolled in a 163.17 program listed in this subdivision. The tuition must be equal 163.18 to (1) the actual cost of providing special instruction and 163.19 services to the pupil, including a proportionate amount for debt 163.20 service and for capital expenditure facilities and equipment, 163.21 and debt service but not including any amount for 163.22 transportation, minus (2) the amount of general education 163.23 revenue and special education aid but not including any amount 163.24 for transportation, attributable to that pupil, that is received 163.25 by the district providing special instruction and services. 163.26 (e) An area learning center operated by a service 163.27 cooperative, intermediate district, education district, or a 163.28 joint powers cooperative may elect through the action of the 163.29 constituent boards to charge the resident district tuition for 163.30 pupils rather than tocalculate general education aid163.31adjustments under paragraph (a), (b), or (c). The tuition must163.32be equal to the greater of the average general education revenue163.33per pupil unit attributable to the pupil, or the actual cost of163.34providing the instruction, excluding transportation costs, if163.35the pupil meets the requirements of section 125A.02 or163.36125A.51have the general education revenue paid to a fiscal 164.1 agent school district. Except as provided in paragraph (d), the 164.2 district of residence must pay tuition equal to at least 90 164.3 percent of the district average general education revenue per 164.4 pupil unit minus an amount equal to the product of the formula 164.5 allowance according to section 126C.10, subdivision 2, times 164.6 .0485, calculated without basic skills revenue and 164.7 transportation sparsity revenue, times the number of pupil units 164.8 for pupils attending the area learning center, plus the amount 164.9 of compensatory revenue generated by pupils attending the area 164.10 learning center. 164.11 Sec. 21. Minnesota Statutes 2002, section 127A.47, 164.12 subdivision 8, is amended to read: 164.13 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 164.14 for districts must be adjusted for each pupil attending a 164.15 charter school under section 124D.10. The adjustments must be 164.16 made according to this subdivision. 164.17 (b) General education aid paid to a district in which a 164.18 charter school not providing transportation according to section 164.19 124D.10, subdivision 16, is located must be increased by an 164.20 amount equal to the product of: (1) the sum of an amount equal 164.21 to the product of the formula allowance according to section 164.22 126C.10, subdivision 2, times .0485, plus the transportation 164.23 sparsity allowance for the district, plus the transportation164.24transition allowance for the district; times (2) the pupil units 164.25 attributable to the pupil. 164.26 Sec. 22. Minnesota Statutes 2002, section 127A.49, 164.27 subdivision 2, is amended to read: 164.28 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 164.29 sections 270.07, 375.192, or otherwise, the net tax capacity of 164.30 any district for any taxable year is changed after the taxes for 164.31 that year have been spread by the county auditor and the local 164.32 tax rate as determined by the county auditor based upon the 164.33 original net tax capacity is applied upon the changed net tax 164.34 capacities, the county auditor shall, prior to February 1 of 164.35 each year, certify to the commissioner ofchildren, families,164.36and learningeducation the amount of any resulting net revenue 165.1 loss that accrued to the district during the preceding year. 165.2 Each year, the commissioner shall pay an abatement adjustment to 165.3 the district in an amount calculated according to the provisions 165.4 of this subdivision. This amount shall be deducted from the 165.5 amount of the levy authorized by section 126C.46. The amount of 165.6 the abatement adjustment must be the product of: 165.7 (1) the net revenue loss as certified by the county 165.8 auditor, times 165.9 (2) the ratio of: 165.10 (i) the sum of the amounts of the district's certified levy 165.11 in the preceding year according to the following: 165.12 (A)section 126C.13 if the district received general165.13education aid according to that section for the second preceding165.14year;165.15(B)section 123B.57, if the district received health and 165.16 safety aid according to that section for the second preceding 165.17 year; 165.18(C) sections(B) section 124D.20,124D.21, and 124D.56,if 165.19 the district received aid for community education programs 165.20 according toany of those sectionsthat section for the second 165.21 preceding year; 165.22(D)(C) section 124D.135, subdivision 3, if the district 165.23 received early childhood family education aid according to 165.24 section 124D.135 for the second preceding year; and 165.25(E)(D) section 126C.17, subdivision 6, if the district 165.26 received referendum equalization aid according to that section 165.27 for the second preceding year; to 165.28 (ii) the total amount of the district's certified levy in 165.29 the preceding December, plus or minus auditor's adjustments. 165.30 Sec. 23. Minnesota Statutes 2002, section 127A.49, 165.31 subdivision 3, is amended to read: 165.32 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 165.33 tax increment is made to a district pursuant to section 469.176, 165.34 subdivision 2, or upon decertification of a tax increment 165.35 district, the school district's aid and levy limitations must be 165.36 adjusted for the fiscal year in which the excess tax increment 166.1 is paid under the provisions of this subdivision. 166.2 (b) An amount must be subtracted from the district's aid 166.3 for the current fiscal year equal to the product of: 166.4 (1) the amount of the payment of excess tax increment to 166.5 the district, times 166.6 (2) the ratio of: 166.7 (i) the sum of the amounts of the district's certified levy 166.8 for the fiscal year in which the excess tax increment is paid 166.9 according to the following: 166.10 (A)section 126C.13, if the district received general166.11education aid according to that section for the second preceding166.12year;166.13(B)section 123B.57, if the district received health and 166.14 safety aid according to that section for the second preceding 166.15 year; 166.16(C) sections(B) section 124D.20,124D.21, and 124D.56,if 166.17 the district received aid for community education programs 166.18 according toany of those sectionsthat section for the second 166.19 preceding year; 166.20(D)(C) section 124D.135, subdivision 3, if the district 166.21 received early childhood family education aid according to 166.22 section 124D.135 for the second preceding year; and 166.23(E)(D) section 126C.17, subdivision 6, if the district 166.24 received referendum equalization aid according to that section 166.25 for the second preceding year; to 166.26 (ii) the total amount of the district's certified levy for 166.27 the fiscal year, plus or minus auditor's adjustments. 166.28 (c) An amount must be subtracted from the school district's 166.29 levy limitation for the next levy certified equal to the 166.30 difference between: 166.31 (1) the amount of the distribution of excess increment; and 166.32 (2) the amount subtracted from aid pursuant to clause (a). 166.33 If the aid and levy reductions required by this subdivision 166.34 cannot be made to the aid for the fiscal year specified or to 166.35 the levy specified, the reductions must be made from aid for 166.36 subsequent fiscal years, and from subsequent levies. The school 167.1 district must use the payment of excess tax increment to replace 167.2 the aid and levy revenue reduced under this subdivision. 167.3 (d) This subdivision applies only to the total amount of 167.4 excess increments received by a district for a calendar year 167.5 that exceeds $25,000. 167.6 Sec. 24. Minnesota Statutes 2002, section 128D.11, 167.7 subdivision 8, is amended to read: 167.8 Subd. 8. [NET DEBT LIMIT.] The school district shall not 167.9 be subject to a net debt in excess of102144 percent of the net 167.10 tax capacity of all taxable property therein. 167.11 Sec. 25. Minnesota Statutes 2002, section 268.052, 167.12 subdivision 2, is amended to read: 167.13 Subd. 2. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 167.14 A TAXPAYING EMPLOYER.] (a) The state or political 167.15 subdivision excluding a school district may elect to be a 167.16 taxpaying employer for any calendar year if a notice of election 167.17 is filed within 30 calendar days following January 1 of that 167.18 calendar year. Upon election, the state or political 167.19 subdivision shall be assigned the new employer tax rate under 167.20 section 268.051, subdivision 5, for the calendar year of the 167.21 election and until it qualifies for an experience rating under 167.22 section 268.051, subdivision 3. 167.23 (b) An election shall be for a minimum period of two 167.24 calendar years following the effective date of the election and 167.25 continue unless a notice terminating the election is filed not 167.26 later than 30 calendar days before the beginning of the calendar 167.27 year. The termination shall be effective at the beginning of 167.28 the next calendar year. Upon election, the commissioner shall 167.29 establish a reimbursable account for the state or political 167.30 subdivision. A termination of election shall be allowed only if 167.31 the state or political subdivision has, since the beginning of 167.32 the experience rating period under section 268.051, subdivision 167.33 3, paid taxes and made voluntary payments under section 268.051, 167.34 subdivision 7, equal to or more than 125 percent of the 167.35 unemployment benefits used in computing the experience rating. 167.36 In addition, any unemployment benefits paid after the experience 168.1 rating period shall be transferred to the new reimbursable 168.2 account of the state or political subdivision. If the amount of 168.3 taxes and voluntary payments paid since the beginning of the 168.4 experience rating period exceeds 125 percent of the amount of 168.5 unemployment benefits paid during the experience rating period, 168.6 that amount in excess shall be applied against any unemployment 168.7 benefits paid after the experience rating period. 168.8 (c) The method of payments to the fund under subdivisions 3 168.9 and 4 shall apply to all taxes paid by or due from the state or 168.10 political subdivision that elects to be taxpaying employers 168.11 under this subdivision. 168.12 (d) The commissioner may allow a notice of election or a 168.13 notice terminating election to be filed by mail or electronic 168.14 transmission. 168.15 [EFFECTIVE DATE.] This section is effective the day 168.16 following final enactment. 168.17 Sec. 26. Minnesota Statutes 2002, section 268.052, 168.18 subdivision 4, is amended to read: 168.19 Subd. 4. [METHOD OF PAYMENT BY POLITICAL SUBDIVISION.] A 168.20 political subdivision or instrumentality thereof is authorized 168.21 and directed to pay its liabilities by money collected from 168.22 taxes or other revenues. Every political subdivision authorized 168.23 to levy taxes except school districts may include in its tax 168.24 levy the amount necessary to pay its liabilities. School 168.25 districts may levy according to section 126C.43, subdivision 2. 168.26 If the taxes authorized to be levied cause the total amount of 168.27 taxes levied to exceed any limitation upon the power of a 168.28 political subdivision to levy taxes, the political subdivision 168.29 may levy taxes in excess of the limitations in the amounts 168.30 necessary to meet its liability. The expenditures authorized 168.31 shall not be included in computing the cost of government as 168.32 defined in any home rule charter. The governing body of a 168.33 municipality, for the purpose of meeting its liabilities, in the 168.34 event of a deficit, may issue its obligations payable in not 168.35 more than two years, in an amount that may cause its 168.36 indebtedness to exceed any statutory or charter limitations, 169.1 without an election, and may levy taxes in the manner provided 169.2 in section 475.61. 169.3 [EFFECTIVE DATE.] This section is effective for taxes 169.4 payable in 2004. 169.5 Sec. 27. Minnesota Statutes 2002, section 273.138, 169.6 subdivision 6, is amended to read: 169.7 Subd. 6. The amount of aid calculated for a school 169.8 district pursuant to subdivision 3, clauses (2), (3), (4), and 169.9 (5) shall be deducted from the school district's general fund 169.10 levy limitation established pursuant tosection 126C.13chapters 169.11 122A, 123A, 123B, 124D, and 126C in determining the amount of 169.12 taxes the school district may levy for general and special 169.13 purposes. 169.14 Sec. 28. Minnesota Statutes 2002, section 298.28, 169.15 subdivision 4, is amended to read: 169.16 Subd. 4. [SCHOOL DISTRICTS.] (a) 17.15 cents per taxable 169.17 ton plus the increase provided in paragraph (d) must be 169.18 allocated to qualifying school districts to be distributed, 169.19 based upon the certification of the commissioner of revenue, 169.20 under paragraphs (b) and (c), except as otherwise provided in 169.21 paragraph (f). 169.22 (b) 3.43 cents per taxable ton must be distributed to the 169.23 school districts in which the lands from which taconite was 169.24 mined or quarried were located or within which the concentrate 169.25 was produced. The distribution must be based on the 169.26 apportionment formula prescribed in subdivision 2. 169.27 (c)(i) 13.72 cents per taxable ton, less any amount 169.28 distributed under paragraph (e), shall be distributed to a group 169.29 of school districts comprised of those school districts in which 169.30 the taconite was mined or quarried or the concentrate produced 169.31 or in which there is a qualifying municipality as defined by 169.32 section 273.134, paragraph (b), in direct proportion to school 169.33 district indexes as follows: for each school district, its 169.34 pupil units determined under section 126C.05 for the prior 169.35 school year shall be multiplied by the ratio of the average 169.36 adjusted net tax capacity per pupil unit for school districts 170.1 receiving aid under this clause as calculated pursuant to 170.2 chapters 122A, 126C, and 127A for the school year ending prior 170.3 to distribution to the adjusted net tax capacity per pupil unit 170.4 of the district. Each district shall receive that portion of 170.5 the distribution which its index bears to the sum of the indices 170.6 for all school districts that receive the distributions. 170.7 (ii) Notwithstanding clause (i), each school district that 170.8 receives a distribution under sections 298.018; 298.23 to 170.9 298.28, exclusive of any amount received under this clause; 170.10 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 170.11 imposing a tax on severed mineral values after reduction for any 170.12 portion distributed to cities and towns under section 126C.48, 170.13 subdivision 8, paragraph (5), that is less than the amount of 170.14 its levy reduction under section 126C.48, subdivision 8, for the 170.15 second year prior to the year of the distribution shall receive 170.16 a distribution equal to the difference; the amount necessary to 170.17 make this payment shall be derived from proportionate reductions 170.18 in the initial distribution to other school districts under 170.19 clause (i). 170.20 (d) Any school district described in paragraph (c) where a 170.21 levy increase pursuant to section 126C.17, subdivision 9, was 170.22 authorized by referendum for taxes payable in 2001, shall 170.23 receive a distribution from a fund that receives a distribution 170.24 in 1998 of 21.3 cents per ton. On July 15 of 1999, and each 170.25 year thereafter, the increase over the amount established for 170.26 the prior year shall be determined according to the increase in 170.27 the implicit price deflator as provided in section 298.24, 170.28 subdivision 1. Each district shall receive $175 times the pupil 170.29 units identified in section 126C.05, subdivision 1, enrolled in 170.30 the second previous year or the 1983-1984 school year, whichever 170.31 is greater, less the product of 1.8 percent times the district's 170.32 taxable net tax capacity in the second previous year. 170.33 If the total amount provided by paragraph (d) is 170.34 insufficient to make the payments herein required then the 170.35 entitlement of $175 per pupil unit shall be reduced uniformly so 170.36 as not to exceed the funds available. Any amounts received by a 171.1 qualifying school district in any fiscal year pursuant to 171.2 paragraph (d) shall not be applied to reduce general education 171.3 aid which the district receives pursuant to section 126C.13 or 171.4 the permissible levies of the district. Any amount remaining 171.5 after the payments provided in this paragraph shall be paid to 171.6 the commissioner of iron range resources and rehabilitation who 171.7 shall deposit the same in the taconite environmental protection 171.8 fund and the northeast Minnesota economic protection trust fund 171.9 as provided in subdivision 11. 171.10 Each district receiving money according to this paragraph 171.11 shall reserve the lesser of the amount received under this 171.12 paragraph or $25 times the number of pupil units served in the 171.13 district. It may use the money for early childhood programs or 171.14 for outcome-based learning programs that enhance the academic 171.15 quality of the district's curriculum. The outcome-based 171.16 learning programs must be approved by the commissioner of 171.17children, families, and learningeducation. 171.18 (e) There shall be distributed to any school district the 171.19 amount which the school district was entitled to receive under 171.20 section 298.32 in 1975. 171.21 (f) Effective for the distribution in 2003 only, five 171.22 percent of the distributions to school districts under 171.23 paragraphs (b), (c), and (e); subdivision 6, paragraph (c); 171.24 subdivision 11; and section 298.225, shall be distributed to the 171.25 general fund. The remainder less any portion distributed to 171.26 cities and towns under section 126C.48, subdivision 8, paragraph 171.27 (5), shall be distributed to the northeast Minnesota economic 171.28 protection trust fund created in section 298.292. Fifty percent 171.29 of the amount distributed to the northeast Minnesota economic 171.30 protection trust fund shall be made available for expenditure 171.31 under section 298.293 as governed by section 298.296. Effective 171.32 in 2003 only, 100 percent of the distributions to school 171.33 districts under section 477A.15 less any portion distributed to 171.34 cities and towns under section 126C.48, subdivision 8, paragraph 171.35 (5), shall be distributed to the general fund. 171.36 Sec. 29. Minnesota Statutes 2002, section 475.61, 172.1 subdivision 4, is amended to read: 172.2 Subd. 4. [SURPLUS FUNDS.] (a) All such taxes shall be 172.3 collected and remitted to the municipality by the county 172.4 treasurer as other taxes are collected and remitted, and shall 172.5 be used only for payment of the obligations on account of which 172.6 levied or to repay advances from other funds used for such 172.7 payments, except that any surplus remaining in the debt service 172.8 fund when the obligations and interest thereon are paid may be 172.9 appropriated to any other general purpose by the municipality. 172.10 However, the amount of any surplus remaining in the debt service 172.11 fund of a school district when the obligations and interest 172.12 thereon are paid shall be used to reduce the generaleducation172.13 fund levy authorized pursuant tosection 126C.13chapters 122A, 172.14 123A, 123B, 124D, and 126C and the state aids authorized 172.15 pursuant to chapters 122A, 123A, 123B, 124D, 125A, 126C, and 172.16 127A. 172.17 (b) The reduction to state aids equals the lesser of (1) 172.18 the amount of the surplus times the ratio of the district's debt 172.19 service equalization aid to the district's debt service 172.20 equalization revenue for the last year that the district 172.21 qualified for debt service equalization aid; or (2) the 172.22 district's cumulative amount of debt service equalization aid. 172.23 (c) The reduction to the generaleducationfund levy equals 172.24 the total amount of the surplus minus the reduction to state 172.25 aids. 172.26 Sec. 30. Laws 1965, chapter 705, as amended by Laws 1975, 172.27 chapter 261, section 4; Laws 1980, chapter 609, article 6, 172.28 section 37; and Laws 1989, chapter 329, article 13, section 18, 172.29 is amended to read: 172.30 Sec. 6. [ST. PAUL SEVERANCE LEVY.] The school board of 172.31 independent school district No. 625, St. Paul, for the purpose 172.32 of providing moneys for the payment of its severance pay 172.33 obligations under a plan approved by resolution of the district, 172.34 in addition to all other powers possessed by the school district 172.35 and in addition to and in excess of any existing limitation upon 172.36 the amount it is otherwise authorized by law to levy as taxes, 173.1 is authorized to levy taxes annually not exceeding in any one 173.2 year an amount equal toa gross tax capacity rate of .17 percent173.3for taxes payable in 1990 ora net tax capacity rate of.21.34 173.4 percent for taxes payable in19912002 and thereafter upon all 173.5 taxable property within the school district which taxes as 173.6 levied shall be spread upon the tax rolls, and all corrections 173.7 thereof shall be held by the school district, and allocated 173.8 therefor to be disbursed and expended by the school district in 173.9 payment of any public school severance pay obligations and for 173.10 no other purpose. Disbursements and expenditures previously 173.11 authorized on behalf of the school district for payment of 173.12 severance pay obligations shall not be deemed to constitute any 173.13 part of the cost of the operation and maintenance of the school 173.14 district within the meaning of any statutory limitation of any 173.15 school district expenditures. 173.16 The amount of such severance pay allowable or to become 173.17 payable in respect of any such employment or to any such 173.18 employee shall not exceed the amount permitted by Minnesota 173.19 Statutes, Section 465.72. 173.20 [EFFECTIVE DATE.] This section is effective retroactively 173.21 for taxes payable in 2002 and thereafter. 173.22 Sec. 31. [APPROPRIATIONS.] 173.23 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 173.24 indicated in this section are appropriated from the general fund 173.25 to the department of education for the fiscal years designated. 173.26 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 173.27 according to Minnesota Statutes, section 124D.111, and Code of 173.28 Federal Regulations, title 7, section 210.17: 173.29 $7,800,000 ..... 2004 173.30 $7,950,000 ..... 2005 173.31 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 173.32 MILK.] For traditional school breakfast aid and kindergarten 173.33 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 173.34 $3,088,000 ..... 2004 173.35 $3,217,000 ..... 2005 173.36 Subd. 4. [FAST BREAK TO LEARNING BREAKFAST.] For fast 174.1 break to learning breakfast under Minnesota Statutes, section 174.2 124D.1156: 174.3 $747,000 ..... 2004 174.4 The 2004 appropriation includes $747,000 for 2003 and $0 174.5 for 2004. 174.6 Subd. 5. [SUMMER SCHOOL SERVICE REPLACEMENT AID.] For 174.7 summer food service replacement aid under Minnesota Statutes, 174.8 section 124D.119: 174.9 $150,000 ..... 2004 174.10 $150,000 ..... 2005 174.11 Sec. 32. [REVISOR INSTRUCTION.] 174.12 In the next and subsequent editions of Minnesota Statutes, 174.13 the revisor shall codify section 30 as Minnesota Statutes, 174.14 section 126C.41, subdivision 5. 174.15 Sec. 33. [REPEALER.] 174.16 Minnesota Statutes 2002, sections 93.22, subdivision 2; 174.17 93.223, subdivision 1; 124D.115; 124D.1156; and 127A.41, 174.18 subdivision 6, are repealed. 174.19 ARTICLE 6 174.20 LIBRARIES 174.21 Section 1. Minnesota Statutes 2002, section 134.34, 174.22 subdivision 4, is amended to read: 174.23 Subd. 4. [LIMITATION.] A regional library basic system 174.24 support grant shall not be made to a regional public library 174.25 system for a participating city or county which decreases the 174.26 dollar amount provided for support for operating purposes of 174.27 public library service below 90 percent of the amount provided 174.28 by it for the second preceding year. This subdivision shall not 174.29 apply to participating cities or counties where the adjusted net 174.30 tax capacity of that city or county has decreased, if the dollar 174.31 amount of the reduction in support is not greater than the 174.32 dollar amount by which support would be decreased if the 174.33 reduction in support were made in direct proportion to the 174.34 decrease in adjusted net tax capacity. 174.35 [EFFECTIVE DATE.] This section is effective for grants 174.36 distributed in 2004 and 2005 only. 175.1 Sec. 2. [APPROPRIATIONS.] 175.2 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 175.3 indicated in this section are appropriated from the general fund 175.4 to the department of education for the fiscal years designated. 175.5 Subd. 2. [BASIC SUPPORT.] For basic support grants 175.6 according to Minnesota Statutes, sections 134.32 to 134.35: 175.7 $8,979,000 ..... 2004 175.8 $9,770,000 ..... 2005 175.9 The 2004 appropriation includes $1,456,000 for 2003 and 175.10 $7,523,000 for 2004. 175.11 The 2005 appropriation includes $2,247,000 for 2004 and 175.12 $7,523,000 for 2005. 175.13 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 175.14 grants according to Minnesota Statutes, sections 134.353 and 175.15 134.354, to multicounty, multitype library systems: 175.16 $849,000 ..... 2004 175.17 $903,000 ..... 2005 175.18 The 2004 appropriation includes $153,000 for 2003 and 175.19 $696,000 for 2004. 175.20 The 2005 appropriation includes $207,000 for 2004 and 175.21 $696,000 for 2005. 175.22 Subd. 4. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 175.23 licenses to on-line databases selected in cooperation with the 175.24 higher education services office for school media centers, 175.25 public libraries, state government agency libraries, and public 175.26 or private college or university libraries: 175.27 $400,000 ..... 2004 175.28 $400,000 ..... 2005 175.29 Any balance in the first year does not cancel but is 175.30 available in the second year. 175.31 Sec. 3. [REPEALER.] 175.32 The changes made to Minnesota Statutes, section 134.34, 175.33 subdivision 4, in section 1 are repealed July 1, 2005. 175.34 ARTICLE 7 175.35 EARLY CHILDHOOD FAMILY SUPPORT 175.36 Section 1. Minnesota Statutes 2002, section 119A.52, is 176.1 amended to read: 176.2 119A.52 [DISTRIBUTION OF APPROPRIATION AND PROGRAM 176.3 COORDINATION.] 176.4 Subdivision 1. [DISTRIBUTION OF APPROPRIATION; WORK PLAN.] 176.5(a)The commissioner ofchildren, families, and learning176.6 education must distribute money appropriated for that purpose to 176.7 Head Start program grantees to expand services and to serve 176.8 additional low-income children. Money must be allocated to each 176.9 project Head Start grantee in existence on the effective date of 176.10 Laws 1989, chapter 282. Migrant and Indian reservation grantees 176.11 must be initially allocated money based on the grantees' share 176.12 of federal funds. The remaining money must be initially 176.13 allocated to the remaining local agencies based equally on the 176.14 agencies' share of federal funds and on the proportion of 176.15 eligible children in the agencies' service area who are not 176.16 currently being served. A Head Start grantee must be funded at 176.17 a per child rate equal to its contracted, federally funded base 176.18 level for program accounts 20, 22, and 25 at the start of the 176.19 fiscal year. In allocating funds under this paragraph, the 176.20 commissioner ofchildren, families, and learningeducation must 176.21 assure that each Head Start grantee is allocated no less funding 176.22 in any fiscal year than was allocated to that grantee in fiscal 176.23 year 1993. The commissioner may provide additional funding to 176.24 grantees for start-up costs incurred by grantees due to the 176.25 increased number of children to be served. Before paying money 176.26 to the grantees, the commissioner must notify each grantee of 176.27 its initial allocation, how the money must be used, and the 176.28 number of low-income children that must be served with the 176.29 allocation. Each grantee mustnotifypresent a work plan to the 176.30 commissioneroffor approval. The work plan must include the 176.31 estimated number of low-income children and families it will be 176.32 able to serve, a description of the program design and service 176.33 delivery area which meets the needs of and encourages access by 176.34 low-income working families, a program design that ensures fair 176.35 and equitable access to Head Start services for all populations 176.36 and parts of the service area, and a plan for coordinating 177.1 services to maximize assistance for child care costs available 177.2 to families under chapter 119B. For any grantee that cannot 177.3 utilize its full allocation, the commissioner must reduce the 177.4 allocation proportionately. Money available after the initial 177.5 allocations are reduced must be redistributed to eligible 177.6 grantees. 177.7(b) Up to 11 percent of the funds appropriated annually may177.8be used to provide grants to local Head Start agencies to177.9provide funds for innovative programs designed either to target177.10Head Start resources to particular at-risk groups of children or177.11to provide services in addition to those currently allowable177.12under federal Head Start regulations. The commissioner must177.13award funds for innovative programs under this paragraph on a177.14competitive basis.177.15 Subd. 2. [PROGRAM COORDINATION.] Each Head Start grantee 177.16 must submit a plan, as part of the work plan requirement in 177.17 subdivision 1, to coordinate and maximize use of existing public 177.18 and private community resources and reduce duplication of 177.19 services. 177.20 Sec. 2. Minnesota Statutes 2002, section 124D.13, 177.21 subdivision 2, is amended to read: 177.22 Subd. 2. [PROGRAM CHARACTERISTICS.] Early childhood family 177.23 education programs are programs for children in the period of 177.24 life from birth to kindergarten, for the parents of such 177.25 children, and for expectant parents.TheTo the extent that 177.26 funds are insufficient to provide programs for all children, 177.27 early childhood family education programs should emphasize 177.28 programming for a child from birth to age three and encourage 177.29 parents to involve four- and five-year-old children in school 177.30 readiness programs, and other public and nonpublic early 177.31 learning programs. Early childhood family education programs 177.32 may include the following: 177.33 (1) programs to educate parents about the physical, mental, 177.34 and emotional development of children; 177.35 (2) programs to enhance the skills of parents in providing 177.36 for their children's learning and development; 178.1 (3) learning experiences for children and parents that 178.2 promote children's development; 178.3 (4) activities designed to detect children's physical, 178.4 mental, emotional, or behavioral problems that may cause 178.5 learning problems; 178.6 (5) activities and materials designed to encourage 178.7 self-esteem, skills, and behavior that prevent sexual and other 178.8 interpersonal violence; 178.9 (6) educational materials which may be borrowed for home 178.10 use; 178.11 (7) information on related community resources; 178.12 (8) programs to prevent child abuse and neglect; 178.13 (9) other programs or activities to improve the health, 178.14 development, and school readiness of children; or 178.15 (10) activities designed to maximize development during 178.16 infancy. 178.17 The programs must not include activities for children that 178.18 do not require substantial involvement of the children's 178.19 parents. The programs must be reviewed periodically to assure 178.20 the instruction and materials are not racially, culturally, or 178.21 sexually biased. The programs must encourage parents to be 178.22 aware of practices that may affect equitable development of 178.23 children. 178.24 Sec. 3. Minnesota Statutes 2002, section 124D.13, 178.25 subdivision 4, is amended to read: 178.26 Subd. 4. [HOME VISITING PROGRAM.](a) The commissionerA 178.27 district that levies for home visiting under section 124D.135, 178.28 subdivision 6, shall use this revenue to include as part of the 178.29 early childhood family education programs a parent education 178.30 componentto prevent child abuse and neglect. This parent178.31education component must include:178.32(1) expanding statewide the home visiting component of the178.33early childhood family education programs;178.34(2) training parent educators, child educators, community178.35outreach workers, and home visitors in the dynamics of child178.36abuse and neglect and positive parenting and discipline179.1practices; and179.2(3) developing and disseminating education and public179.3information materials that promote positive parenting skills and179.4prevent child abuse and neglect.179.5(b) The parent education component must:179.6(1) offer to isolated or at-risk families home visiting179.7parent education services that at least address parenting179.8skills, a child's development and stages of growth,179.9communication skills, managing stress, problem-solving skills,179.10positive child discipline practices, methods of improving179.11parent-child interactions and enhancing self-esteem, using179.12community support services and other resources, and encouraging179.13parents to have fun with and enjoy their children;179.14(2) develop athat is designed to reach isolated or at-risk 179.15 families. 179.16 The home visiting program must use: 179.17 (1) an established risk assessment tool to determine the 179.18 family's level of risk; 179.19(3)(2) establish clear objectives and protocols for home 179.20 visits; 179.21(4) determine the frequency and duration of home visits179.22based on a risk-need assessment of the client, with home visits179.23beginning in the second trimester of pregnancy and continuing,179.24based on client need, until a child is six years old;179.25(5)(3) encourage families to make a transition from home 179.26 visits to site-based parenting programsto build a family179.27support network and reduce the effects of isolation; 179.28(6) develop and distribute education materials on179.29preventing child abuse and neglect that may be used in home179.30visiting programs and parent education classes and distributed179.31to the public;179.32(7) initially provide at least 40 hours of training and179.33thereafter ongoing training for parent educators, child179.34educators, community outreach workers, and home visitors that179.35covers the dynamics of child abuse and neglect, domestic179.36violence and victimization within family systems, signs of abuse180.1or other indications that a child may be at risk of being abused180.2or neglected, what child abuse and neglect are, how to properly180.3report cases of child abuse and neglect, respect for cultural180.4preferences in child rearing, what community resources, social180.5service agencies, and family support activities and programs are180.6available, child development and growth, parenting skills,180.7positive child discipline practices, identifying stress factors180.8and techniques for reducing stress, home visiting techniques,180.9and risk assessment measures;180.10(8)(4) provide program services that are community-based, 180.11 accessible, and culturally relevant; and 180.12(9)(5) foster collaboration among existing agencies and 180.13 community-based organizations that serve young children and 180.14 their families. 180.15(c)Home visitors should reflect the demographic 180.16 composition of the communitythe home visitor is servingto the 180.17 extent possible. 180.18 Sec. 4. Minnesota Statutes 2002, section 124D.13, 180.19 subdivision 8, is amended to read: 180.20 Subd. 8. [COORDINATION.] (a) A districtis encouraged to180.21coordinate the program with its special education and vocational180.22education programs and with related services provided by other180.23governmental agencies and nonprofit agencies.must describe 180.24 strategies to coordinate and maximize public and private 180.25 community resources and reduce duplication of services. 180.26 (b) A district is encouraged to coordinate adult basic 180.27 education programs provided to parents and early childhood 180.28 family education programs provided to children to accomplish the 180.29 goals of section 124D.895. 180.30 Sec. 5. Minnesota Statutes 2002, section 124D.13, 180.31 subdivision 11, is amended to read: 180.32 Subd. 11. [TEACHERS.] A school board must employnecessary180.33 qualified teachers or professionals licensed in a field related 180.34 to health, child development or parent education supervised by a 180.35 licensed teacher for its early childhood family education 180.36 programs. 181.1 Sec. 6. Minnesota Statutes 2002, section 124D.135, 181.2 subdivision 1, is amended to read: 181.3 Subdivision 1. [REVENUE.] The revenue for early childhood 181.4 family education programs for a school district equals$113.50181.5for fiscal years 2000 and 2001 and$120for 2002 and later181.6fiscal yearsfor fiscal years 2003 and 2004 and $105 for fiscal 181.7 year 2005 and later, times the greater of: 181.8 (1) 150; or 181.9 (2) the number of people under five years of age residing 181.10 in the district on October 1 of the previous school year. 181.11 Sec. 7. Minnesota Statutes 2002, section 124D.135, 181.12 subdivision 8, is amended to read: 181.13 Subd. 8. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 181.14 the average balance, during the most recent three-year period in 181.15 a district's early childhood family education reserve account on 181.16 June 30 of each year, adjusted for any prior reductions under 181.17 this subdivision, must not be greater than 25 percent of the sum 181.18 of the district's maximum early childhood family education 181.19 annual revenue under subdivision 1, excluding adjustments under 181.20 this subdivision, plus any fees, grants, or other revenue 181.21 received by the district for early childhood family education 181.22 programs for the prior year. 181.23 (b) If a district's adjusted average early childhood family 181.24 education reserve over the three-year period is in excess of25181.25percent of the prior year annual revenuethe limit under 181.26 paragraph (a), the district's early childhood family education 181.27 state aid and levy authority for the current school year must be 181.28 reduced by the lesser of the current year revenue under 181.29 subdivision 1 or the excess reserve amount. The aid reduction 181.30 equals the product of the lesser of the excess reserve amount or 181.31 the current year revenue under subdivision 1 times the ratio of 181.32 the district's aid for thepriorcurrent year under subdivision 181.33 4 to the district's revenue for thepriorcurrent year under 181.34 subdivision 1. The levy reduction equals the excess reserve 181.35 amount minus the aid reduction.The commissioner must181.36reallocate aid and levy reduced under this subdivision to other182.1eligible early childhood family education programs in proportion182.2to each district's revenue for the prior year under subdivision182.31.For purposes of this paragraph, if a district does not levy 182.4 the entire amount permitted under subdivision 3, the revenue 182.5 under subdivision 1 must be reduced in proportion to the actual 182.6 amount levied. 182.7(b)(c) Notwithstanding paragraph (a), for fiscal year 182.8 2003, the excess reserve amount shall be computed using the 182.9 balance in a district's early childhood family education reserve 182.10 account on June 30, 2002. For fiscal year 2004, the excess 182.11 reserve amount shall be computed using the adjusted average 182.12 balance in a district's early childhood family education reserve 182.13 account on June 30, 2002, and June 30, 2003. 182.14 [EFFECTIVE DATE.] This section is effective for revenue for 182.15 fiscal year 2003. 182.16 Sec. 8. Minnesota Statutes 2002, section 124D.15, 182.17 subdivision 7, is amended to read: 182.18 Subd. 7. [ADVISORY COUNCIL.] Each school readiness program 182.19 must have an advisory council composed of members of existing 182.20 early education-related boards, parents of participating 182.21 children, child care providers, culturally specific service 182.22 organizations, local resource and referral agencies, local early 182.23 intervention committees, and representatives of early childhood 182.24 service providers. The council must advise the board in 182.25 creating and administering the program and must monitor the 182.26 progress of the program. The council must ensure that children 182.27 at greatest risk receive appropriate services. If the board is 182.28 unable to appoint to the advisory council members of existing 182.29 early education-related boards, it must appoint parents of 182.30 children enrolled in the program who represent the racial, 182.31 cultural, and economic diversity of the district and 182.32 representatives of early childhood service providers as 182.33 representatives to an existing advisory council. 182.34 Sec. 9. Minnesota Statutes 2002, section 124D.16, 182.35 subdivision 1, is amended to read: 182.36 Subdivision 1. [PROGRAM REVIEW AND APPROVAL.] A school 183.1 district shall biennially by May 1 submit to the commissioners 183.2 ofchildren, families, and learningeducation and health the 183.3 program plan required under this subdivision. As determined by 183.4 the commissioners, one-half of the districts shall first submit 183.5 the plan by May 1 of the 2000-2001 school year and one-half of 183.6 the districts shall first submit the plan by May 1 of the 183.7 2001-2002 school year. The program plan must include: 183.8 (1) a description of the services to be provided; 183.9 (2) a plan to ensure children at greatest risk receive 183.10 appropriate services; 183.11 (3) a description ofprocedures and methods to be used183.12 strategies to coordinate and maximize public and private 183.13 community resourcesto maximize use of existing community183.14resources, including school districts, health care facilities,183.15government agencies, neighborhood organizations, and other183.16resources knowledgeable in early childhood developmentand 183.17 reduce duplication of services; 183.18 (4) comments about the district's proposed program by the 183.19 advisory council required by section 124D.15, subdivision 7; and 183.20 (5) agreements with all participating service providers. 183.21 Each commissioner may review and comment on the program, 183.22 and make recommendations to the commissioner ofchildren,183.23families, and learningeducation, within3090 days of receiving 183.24 the plan. 183.25 Sec. 10. Minnesota Statutes 2002, section 124D.16, 183.26 subdivision 6, is amended to read: 183.27 Subd. 6. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 183.28 the average balance, during the most recent three-year period, 183.29 in a district's school readiness reserve account on June 30 of 183.30 each year, adjusted for any prior reductions under this 183.31 subdivision, must not be greater than 25 percent of the 183.32 district's school readiness annual revenue for the prior year, 183.33 excluding adjustments under this subdivision. 183.34 (b) If a district's adjusted average school readiness 183.35 reserve over the three-year period is in excess of25 percent of183.36the prior year annual revenuethe limit under paragraph (a), the 184.1 district's current year school readiness state aid must be 184.2 reduced by the lesser of the excess reserve amount or the 184.3 current year aid.The commissioner must reallocate aid reduced184.4under this subdivision to other eligible school readiness184.5programs in proportion to each district's aid for the prior year184.6under subdivision 2.184.7(b)(c) Notwithstanding paragraph (a), for fiscal year 184.8 2003, the excess reserve amount shall be computed using the 184.9 balance in a district's school readiness reserve account on June 184.10 30, 2002. For fiscal year 2004, the excess reserve amount shall 184.11 be computed using the adjusted average balance in a district's 184.12 school readiness reserve account on June 30, 2002, and June 30, 184.13 2003. 184.14 [EFFECTIVE DATE.] This section is effective for revenue for 184.15 fiscal year 2003. 184.16 Sec. 11. [STUDY ON EFFECTIVELY SERVING LOW-INCOME 184.17 CHILDREN.] 184.18 The commissioner of education, in order to effectively 184.19 serve low-income children between the ages of three and five, 184.20 must study how to redistribute to various qualifying early 184.21 childhood program providers the state funds currently 184.22 appropriated to Head Start grantees. The commissioner must 184.23 determine the eligibility criteria and the parameters of service 184.24 delivery costs for awarding grants to early childhood program 184.25 providers throughout the state, including Head Start grantees. 184.26 The commissioner must expect eligible program providers to 184.27 demonstrate relevant experience serving low-income children in 184.28 unserved and underserved areas and a strong learning component 184.29 in their program. The commissioner, by February 15, 2004, must 184.30 present study findings and recommendations in writing to the 184.31 committees of the legislature having jurisdiction over early 184.32 childhood through grade 12 education policy and finance. 184.33 [EFFECTIVE DATE.] This section is effective the day 184.34 following final enactment. 184.35 Sec. 12. [APPROPRIATIONS.] 184.36 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 185.1 indicated in this section are appropriated from the general fund 185.2 to the department of education for the fiscal years designated. 185.3 Subd. 2. [SCHOOL READINESS.] For revenue for school 185.4 readiness programs under Minnesota Statutes, sections 124D.15 185.5 and 124D.16: 185.6 $ 9,239,000 ..... 2004 185.7 $ 9,283,000 ..... 2005 185.8 The 2004 appropriation includes $1,605,000 for 2003 and 185.9 $7,634,000 for 2004. 185.10 The 2005 appropriation includes $2,279,000 for 2004 and 185.11 $7,004,000 for 2005. 185.12 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 185.13 childhood family education aid under Minnesota Statutes, section 185.14 124D.135: 185.15 $19,059,000 ..... 2004 185.16 $17,862,000 ..... 2005 185.17 The 2004 appropriation includes $3,239,000 for 2003 and 185.18 $15,820,000 for 2004. 185.19 The 2005 appropriation includes $4,725,000 for 2004 and 185.20 $13,137,000 for 2005. 185.21 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 185.22 health and developmental screening aid under Minnesota Statutes, 185.23 sections 121A.17 and 121A.19: 185.24 $2,501,000 ..... 2004 185.25 $2,661,000 ..... 2005 185.26 The 2004 appropriation includes $452,000 for 2003 and 185.27 $2,049,000 for 2004. 185.28 The 2005 appropriation includes $612,000 for 2004 and 185.29 $2,049,000 for 2005. 185.30 Subd. 5. [HEAD START PROGRAM.] For Head Start programs 185.31 under Minnesota Statutes, section 119A.52: 185.32 $16,475,000 ..... 2004 185.33 $12,000,000 ..... 2005 185.34 Sec. 13. [REPEALER.] 185.35 Minnesota Statutes 2002, section 124D.17, is repealed. 185.36 ARTICLE 8 186.1 PREVENTION 186.2 Section 1. Minnesota Statutes 2002, section 124D.19, 186.3 subdivision 3, is amended to read: 186.4 Subd. 3. [COMMUNITY EDUCATION DIRECTOR.] (a) Except as 186.5 provided under paragraphs (b) and (c), each board shall employ a 186.6 licensed community education director. The board shall submit 186.7 the name of the person who is serving as director of community 186.8 education under this section on the district's annual community 186.9 education report to the commissioner. 186.10 (b) A board may apply to thecommissionerMinnesota board 186.11 of school administrators under Minnesota Rules, part 3512.3500, 186.12 subpart 9, for authority to use an individual who is not 186.13 licensed as a community education director. 186.14 (c) A board of a district with a total population of 2,000 186.15 or less may identify an employee who holds a valid Minnesota 186.16 principal or superintendent license under Minnesota Rules, 186.17 chapter 3512, to serve as director of community education. To 186.18 be eligible for an exception under this paragraph, the board 186.19 shall certify in writing to the commissioner that the district 186.20 has not placed a licensed director of community education on 186.21 unrequested leave. 186.22 Sec. 2. Minnesota Statutes 2002, section 124D.20, 186.23 subdivision 3, is amended to read: 186.24 Subd. 3. [GENERAL COMMUNITY EDUCATION REVENUE.] The 186.25 general community education revenue for a district equals 186.26 $5.95 for fiscal year 2003 and 2004 and $5.23 for fiscal year 186.27 2005 and later, times the greater of 1,335 or the population of 186.28 the district. The population of the district is determined 186.29 according to section 275.14. 186.30 [EFFECTIVE DATE.] This section is effective for revenue for 186.31 fiscal year 2005. 186.32 Sec. 3. Minnesota Statutes 2002, section 124D.20, 186.33 subdivision 5, is amended to read: 186.34 Subd. 5. [TOTAL COMMUNITY EDUCATION LEVY.] To obtain total 186.35 community education revenue, a districtoperating a youth186.36after-school enrichment program under section 124D.19,187.1subdivision 12,may levy the amount raised by a maximum tax rate 187.2 of.7431.985 percent times the adjusted net tax capacity of the 187.3 district.To obtain total community education revenue, a187.4district not operating a youth after-school enrichment program187.5may levy the amount raised by a maximum tax rate of .4795187.6percent times the adjusted net tax capacity of the district.If 187.7 the amount of the total community education levy would exceed 187.8 the total community education revenue, the total community 187.9 education levy shall be determined according to subdivision 6. 187.10 [EFFECTIVE DATE.] This section is effective for revenue for 187.11 fiscal year 2005. 187.12 Sec. 4. Minnesota Statutes 2002, section 124D.20, is 187.13 amended by adding a subdivision to read: 187.14 Subd. 11. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 187.15 the sum of the average balances during the most recent 187.16 three-year period in a district's community education reserve 187.17 account and unreserved/undesignated community service fund 187.18 account on June 30 of each year, adjusted for any prior 187.19 reductions under this subdivision, must not be greater than 25 187.20 percent of the sum of the district's maximum total community 187.21 education revenue under subdivision 1, excluding adjustments 187.22 under this subdivision, plus the district's additional community 187.23 education levy under section 124D.21, plus any fees, grants, or 187.24 other revenue received by the district for community education 187.25 programs for the prior year. For purposes of this paragraph, 187.26 "community education programs" means programs according to 187.27 subdivisions 8, paragraph (a), and 9, and section 124D.19, 187.28 subdivision 12, excluding early childhood family education 187.29 programs under section 124D.13, school readiness programs under 187.30 sections 124D.15 and 124D.17, and adult basic education programs 187.31 under section 124D.52. 187.32 (b) If the sum of the average balances during the most 187.33 recent three-year period in a district's community education 187.34 reserve account and unreserved/undesignated community service 187.35 fund account on June 30 of each year, adjusted for any prior 187.36 reductions under this subdivision, is in excess of the limit 188.1 under paragraph (a), the district's community education state 188.2 aid and levy authority for the current school year must be 188.3 reduced by the lesser of the current year revenue under 188.4 subdivision 1 or the excess reserve amount. The aid reduction 188.5 equals the product of the lesser of the excess reserve amount or 188.6 the current year revenue under subdivision 1 times the ratio of 188.7 the district's aid for the current year under subdivision 7 to 188.8 the district's revenue for the current year under subdivision 188.9 1. The levy reduction equals the excess reserve amount minus 188.10 the aid reduction. For purposes of this paragraph, if a 188.11 district does not levy the entire amount permitted under 188.12 subdivision 5 or 6, the revenue under subdivision 1 must be 188.13 reduced in proportion to the actual amount levied. 188.14 (c) Notwithstanding paragraph (a), for fiscal year 2003, 188.15 the excess reserve amount shall be computed using the balances 188.16 in a district's community education reserve account and 188.17 unreserved/undesignated community service fund account on June 188.18 30, 2002. For fiscal year 2004, the excess reserve amount shall 188.19 be computed using the adjusted average balances in a district's 188.20 community education reserve account and unreserved/undesignated 188.21 community service fund account on June 30, 2002, and June 30, 188.22 2003. 188.23 [EFFECTIVE DATE.] This section is effective for revenue for 188.24 fiscal year 2003. 188.25 Sec. 5. Minnesota Statutes 2002, section 124D.20, is 188.26 amended by adding a subdivision to read: 188.27 Subd. 12. [WAIVER.] (a) If a district anticipates that the 188.28 reserve account may exceed the 25 percent limit established 188.29 under subdivision 11 because of extenuating circumstances, prior 188.30 approval to exceed the limit must be obtained in writing from 188.31 the commissioner. 188.32 (b) Notwithstanding paragraph (a), for fiscal year 2003, a 188.33 district may submit a waiver request within 30 days of the date 188.34 of final enactment. 188.35 [EFFECTIVE DATE.] This section is effective the day 188.36 following final enactment for revenue for fiscal year 2003. 189.1 Sec. 6. Minnesota Statutes 2002, section 124D.22, 189.2 subdivision 3, is amended to read: 189.3 Subd. 3. [SCHOOL-AGE CARE LEVY.] To obtain school-age care 189.4 revenue, a school district may levy an amount equal to the 189.5 district's school-age care revenue as defined in subdivision 2 189.6 multiplied by the lesser of one, or the ratio of the quotient 189.7 derived by dividing the adjusted net tax capacity of the 189.8 district for the year before the year the levy is certified by 189.9 the resident pupil units in the district for the school year to 189.10 which the levy is attributable, to$3,280$2,433. 189.11 Sec. 7. [APPROPRIATIONS.] 189.12 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 189.13 indicated in this section are appropriated from the general fund 189.14 to the department of education for the fiscal years designated. 189.15 Subd. 2. [COMMUNITY EDUCATION AID.] For community 189.16 education aid under Minnesota Statutes, section 124D.20: 189.17 $5,325,000 ..... 2004 189.18 $3,491,000 ..... 2005 189.19 The 2004 appropriation includes $956,000 for 2003 and 189.20 $4,369,000 for 2004. 189.21 The 2005 appropriation includes $1,304,000 for 2004 and 189.22 $2,187,000 for 2005. 189.23 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 189.24 adults with disabilities programs under Minnesota Statutes, 189.25 section 124D.56: 189.26 $667,000 ..... 2004 189.27 $710,000 ..... 2005 189.28 The 2004 appropriation includes $120,000 for 2003 and 189.29 $547,000 for 2004. 189.30 The 2005 appropriation includes $163,000 for 2004 and 189.31 $547,000 for 2005. 189.32 Subd. 4. [HEARING-IMPAIRED ADULTS.] For programs for 189.33 hearing-impaired adults under Minnesota Statutes, section 189.34 124D.57: 189.35 $70,000 ..... 2004 189.36 $70,000 ..... 2005 190.1 Subd. 5. [ABUSED CHILDREN.] For abused children programs 190.2 under Minnesota Statutes, section 119A.21: 190.3 $945,000 ..... 2004 190.4 $945,000 ..... 2005 190.5 Subd. 6. [SCHOOL-AGE CARE REVENUE.] For extended day care 190.6 aid under Minnesota Statutes, section 124D.22: 190.7 $40,000 ..... 2004 190.8 $23,000 ..... 2005 190.9 The 2004 appropriation includes $14,000 for 2003 and 190.10 $26,000 for 2004. 190.11 The 2005 appropriation includes $7,000 for 2004 and $16,000 190.12 for 2005. 190.13 Sec. 8. [REPEALER.] 190.14 Minnesota Statutes 2002, sections 120B.23; 124D.21; 190.15 124D.221; 124D.93; and 144.401, subdivision 5, are repealed. 190.16 ARTICLE 9 190.17 SELF-SUFFICIENCY AND LIFE LONG LEARNING 190.18 Section 1. Minnesota Statutes 2002, section 124D.52, 190.19 subdivision 1, is amended to read: 190.20 Subdivision 1. [PROGRAM REQUIREMENTS.] (a) An adult basic 190.21 education program is a day or evening program offered by a 190.22 district that is for people over 16 years of age who do not 190.23 attend an elementary or secondary school. The program offers 190.24 academic instruction necessary to earn a high school diploma or 190.25 equivalency certificate.Tuition and fees may not be charged to190.26a learner for instruction paid under this section, except for190.27 (b) Notwithstanding any law to the contrary, a school board 190.28 or the governing body of a consortium offering an adult basic 190.29 education program may adopt a sliding fee schedule based on a 190.30 family's income, but must waive the fee for participants who are 190.31 under the age of 21 or unable to pay. The fees charged must be 190.32 designed to enable individuals of all socioeconomic levels to 190.33 participate in the program. A program may charge a security 190.34 deposit to assure return of materials, supplies, and equipment. 190.35 (c) Each approved adult basic education program must 190.36 develop a memorandum of understanding with the local workforce 191.1 development centers located in the approved program's service 191.2 delivery area. The memorandum of understanding must describe 191.3 how the adult basic education program and the workforce 191.4 development centers will cooperate and coordinate services to 191.5 provide unduplicated, efficient, and effective services to 191.6 clients. 191.7 (d) Adult basic education aid must be spent for adult basic 191.8 education purposes as specified in sections 124D.518 to 124D.531. 191.9 Sec. 2. Minnesota Statutes 2002, section 124D.52, 191.10 subdivision 3, is amended to read: 191.11 Subd. 3. [ACCOUNTS; REVENUE; AID.] (a) Each district, 191.12 group of districts, or private nonprofit organization providing 191.13 adult basic education programs must establish and 191.14 maintainaccounts separate from all other district accountsa 191.15 reserve account within the community service fund for the 191.16 receipt and disbursement of all funds related to these 191.17 programs. All revenue received pursuant to this section must be 191.18 utilized solely for the purposes of adult basic education 191.19 programs. State aid must not equal more than 100 percent of the 191.20 unreimbursed expenses of providing these programs, excluding 191.21 in-kind costs. 191.22 (b) Notwithstanding section 123A.26 or any other law to the 191.23 contrary, an adult basic education consortium providing an 191.24 approved adult basic education program may be its own fiscal 191.25 agent and is eligible to receive state-aid payments directly 191.26 from the commissioner. 191.27 Sec. 3. Minnesota Statutes 2002, section 124D.531, 191.28 subdivision 1, is amended to read: 191.29 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 191.30 (a) The state total adult basic education aid for fiscal year 191.3120012004 equals$30,157,000$34,388,000. The state total adult 191.32 basic education aid for fiscal year 2005 and later is 191.33 $36,509,000.The state total adult basic education aid for191.34later years equals:191.35(1) the state total adult basic education aid for the191.36preceding fiscal year; times192.1(2) the lesser of:192.2(i) 1.08, or192.3(ii) the greater of 1.00 or the ratio of the state total192.4contact hours in the first prior program year to the state total192.5contact hours in the second prior program year.Beginning in 192.6 fiscal year 2002, two percent of the state total adult basic 192.7 education aid must be set aside for adult basic education 192.8 supplemental service grants under section 124D.522. 192.9 (b) The state total adult basic education aid, excluding 192.10 basic population aid, equals the difference between the amount 192.11 computed in paragraph (a), and the state total basic population 192.12 aid under subdivision 2. 192.13 Sec. 4. Minnesota Statutes 2002, section 124D.531, 192.14 subdivision 2, is amended to read: 192.15 Subd. 2. [BASIC POPULATION AID.] A district is eligible 192.16 for basic population aid if the district has a basic service 192.17 level approved by the commissioner under section 124D.52, 192.18 subdivision 5, or is a member of a consortium with an approved 192.19 basic service level. Basic population aid is equal to the 192.20 greater of$4,000$3,844 or$1.80$1.73 times the population of 192.21 the district. District population is determined according to 192.22 section 275.14. 192.23 Sec. 5. Minnesota Statutes 2002, section 124D.531, 192.24 subdivision 4, is amended to read: 192.25 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 192.26 Notwithstanding subdivisions 2 and 3, the total adult basic 192.27 education aid for a program per prior year contact hour must not 192.28 exceedfour times the rate$21 per prior year contact hour 192.29 computed under subdivision 3, clause (2). 192.30 (b) For fiscal year 2004, the aid for a program under 192.31 subdivision 3, clause (2), adjusted for changes in program 192.32 membership, must not exceed the aid for that program under 192.33 subdivision 3, clause (2), for fiscal year 2003 by more than the 192.34 greater of eight percent or $10,000. 192.35 (c) For fiscal year 2005, the aid for a program under 192.36 subdivision 3, clause (2), adjusted for changes in program 193.1 membership, must not exceed the sum of the aid for that program 193.2 under subdivision 3, clause (2), and section 8, paragraph (a), 193.3 for the preceding fiscal year by more than the greater of eight 193.4 percent or $10,000. 193.5 (d) For fiscal year20022006 and later, the aid for a 193.6 program under subdivision 3, clause (2), adjusted for changes in 193.7 program membership, must not exceed the aid for that program 193.8 under subdivision 3, clause (2), for the first preceding fiscal 193.9 year by more than the greater of17eight percent or 193.10$20,000$10,000. 193.11(c)(d) Adult basic education aid is payable to a program 193.12 for unreimbursed costs. 193.13 Sec. 6. Minnesota Statutes 2002, section 124D.531, 193.14 subdivision 7, is amended to read: 193.15 Subd. 7. [PROGRAM AUDITS.] Programs that receive aid under 193.16 this section must maintain records that support the aid 193.17 payments. The commissioner may audit these records upon 193.18 request. The commissioner must establish procedures for 193.19 conducting fiscal audits of adult basic education programs 193.20according to the schedule in this subdivision. In calendar year193.212003, the commissioner must audit one-half of approved adult193.22basic education programs that received aid for fiscal year 2002,193.23and in calendar year 2004, the commissioner must audit the193.24remaining unaudited programs for aid received in fiscal year193.252003. Beginning with fiscal year 2005, the commissioner must,193.26at a minimum, audit each adult basic education program once193.27every five years. The commissioner must establish procedures to 193.28 reconcile any discrepancies between aid payments based on 193.29 information reported to the commissioner and aid estimates based 193.30 on a program audit. 193.31 Sec. 7. [ADULT BASIC EDUCATION PROGRAM APPROVAL AND AID, 193.32 FISCAL YEAR 2004.] 193.33 (a) Notwithstanding Minnesota Statutes 2002, section 193.34 124D.54, subdivision 2, a district or consortium of districts 193.35 that provided a program funded under Minnesota Statutes 2002, 193.36 section 124D.54, in fiscal year 2003 may request an extension of 194.1 the application deadline for approval of an adult basic 194.2 education program for fiscal year 2004. 194.3 (b) For purposes of computing the fiscal year 2005 adult 194.4 basic education aid for a program under Minnesota Statutes, 194.5 section 124D.531, subdivision 3, clause (2), the contact hours 194.6 for students participating in the program during the first prior 194.7 program year must be increased by 17 percent of the adult 194.8 graduation aid average daily attendance for fiscal year 2002. 194.9 Sec. 8. [ADULT BASIC EDUCATION TRANSITION AID.] 194.10 (a) For fiscal year 2004, adult basic education transition 194.11 aid for each qualifying district equals the district's adult 194.12 high school graduation aid for fiscal year 2002. This aid 194.13 amount must be used to provide an adult basic education program 194.14 under Minnesota Statutes, section 124D.52. To qualify for aid 194.15 under this section a district must establish or join an approved 194.16 adult basic education program according to Minnesota Statutes, 194.17 section 124D.52, subdivision 2. 194.18 (b) For fiscal year 2005, the adult high school graduation 194.19 aid program is eliminated. 194.20 Sec. 9. [APPROPRIATIONS.] 194.21 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 194.22 indicated in this section are appropriated from the general fund 194.23 to the department of education for the fiscal years designated. 194.24 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 194.25 education aid under Minnesota Statutes, section 124D.52, in 194.26 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 194.27 fiscal year 2005: 194.28 $32,131,000 ..... 2004 194.29 $35,758,000 ..... 2005 194.30 The 2004 appropriation includes $5,905,000 for 2003 and 194.31 $26,226,000 for 2004. 194.32 The 2005 appropriation includes $7,833,000 for 2004 and 194.33 $27,925,000 for 2005. 194.34 Subd. 3. [ADULT GRADUATION AID.] For adult graduation aid 194.35 under Minnesota Statutes, section 124D.54: 194.36 $396,000 ..... 2004 195.1 Subd. 4. [ADULT BASIC EDUCATION TRANSITION AID.] (a) For 195.2 adult basic transition aid under section 8: 195.3 $1,634,000 ..... 2004 195.4 $ 488,000 ..... 2005 195.5 The 2004 appropriation includes $1,634,000 for 2004. 195.6 The 2005 appropriation includes $488,000 for 2004 and $0 195.7 for 2005. 195.8 Subd. 5. [GED TESTS.] For payment of 60 percent of the 195.9 costs of GED tests under Laws 1993, chapter 224, article 4, 195.10 section 44, subdivision 10: 195.11 $125,000 ..... 2004 195.12 $125,000 ..... 2005 195.13 Subd. 6. [FAMILY ASSETS FOR INDEPENDENCE.] For family 195.14 assets for independence: 195.15 $500,000 ..... 2004 195.16 Any balance in the first year does not cancel but is 195.17 available in the second year. 195.18 Sec. 10. [REPEALER.] 195.19 Minnesota Statutes 2002, sections 124D.09, subdivision 15; 195.20 124D.54; and 126C.05, subdivision 12, are repealed. 195.21 ARTICLE 10 195.22 STATE AGENCIES 195.23 Section 1. Minnesota Statutes 2002, section 15.01, is 195.24 amended to read: 195.25 15.01 [DEPARTMENTS OF THE STATE.] 195.26 The following agencies are designated as the departments of 195.27 the state government: the department of administration; the 195.28 department of agriculture; the department of commerce; the 195.29 department of corrections; the department ofchildren, families,195.30and learningeducation; the department of economic security; the 195.31 department of trade and economic development; the department of 195.32 finance; the department of health; the department of human 195.33 rights; the department of labor and industry; the department of 195.34 military affairs; the department of natural resources; the 195.35 department of employee relations; the department of public 195.36 safety; the department of human services; the department of 196.1 revenue; the department of transportation; the department of 196.2 veterans affairs; and their successor departments. 196.3 Sec. 2. Minnesota Statutes 2002, section 119A.01, 196.4 subdivision 2, is amended to read: 196.5 Subd. 2. [ESTABLISHMENT.] The department ofchildren,196.6families, and learningeducation is established. 196.7 Sec. 3. Minnesota Statutes 2002, section 119A.02, 196.8 subdivision 2, is amended to read: 196.9 Subd. 2. [COMMISSIONER.] "Commissioner" means the 196.10 commissioner ofchildren, families, and learningeducation. 196.11 Sec. 4. Minnesota Statutes 2002, section 119A.02, 196.12 subdivision 3, is amended to read: 196.13 Subd. 3. [DEPARTMENT.] "Department" means the department 196.14 ofchildren, families, and learningeducation. 196.15 Sec. 5. Minnesota Statutes 2002, section 119B.011, 196.16 subdivision 8, is amended to read: 196.17 Subd. 8. [COMMISSIONER.] "Commissioner" means the 196.18 commissioner ofchildren, families, and learningeducation. 196.19 Sec. 6. Minnesota Statutes 2002, section 119B.011, 196.20 subdivision 10, is amended to read: 196.21 Subd. 10. [DEPARTMENT.] "Department" means the department 196.22 ofchildren, families, and learningeducation. 196.23 Sec. 7. Minnesota Statutes 2002, section 120A.02, is 196.24 amended to read: 196.25 120A.02 [DEPARTMENT OFCHILDREN, FAMILIES, AND LEARNING196.26 EDUCATION.] 196.27 The department ofchildren, families, and learning196.28 education shall carry out the provisions of chapters 120A to 196.29 129C and other related education provisions under law. 196.30 Sec. 8. Minnesota Statutes 2002, section 120A.05, 196.31 subdivision 4, is amended to read: 196.32 Subd. 4. [COMMISSIONER.] "Commissioner" means the 196.33 commissioner ofchildren, families, and learningeducation. 196.34 Sec. 9. Minnesota Statutes 2002, section 120A.05, 196.35 subdivision 7, is amended to read: 196.36 Subd. 7. [DEPARTMENT.] "Department" means the department 197.1 ofchildren, families, and learningeducation. 197.2 Sec. 10. Minnesota Statutes 2002, section 122A.09, 197.3 subdivision 10, is amended to read: 197.4 Subd. 10. [VARIANCES.] (a) Notwithstanding subdivision 9 197.5 and section 14.05, subdivision 4, the board of teaching may 197.6 grant a variance to its rules upon application by a school 197.7 district for purposes of implementing experimental programs in 197.8 learning or management. 197.9 (b) To enable a school district to meet the needs of 197.10 students enrolled in an alternative education program and to 197.11 enable licensed teachers instructing those students to satisfy 197.12 content area licensure requirements, the board of teaching 197.13 annually may permit a licensed teacher teaching in an 197.14 alternative education program to instruct students in a content 197.15 area for which the teacher is not licensed, consistent with 197.16 paragraph (a). 197.17 [EFFECTIVE DATE.] This section is effective the day 197.18 following final enactment. 197.19 Sec. 11. Minnesota Statutes 2002, section 122A.12, 197.20 subdivision 1, is amended to read: 197.21 Subdivision 1. [MEMBERSHIP.] A board of school 197.22 administrators is established and must consist ofnineten 197.23 members appointed by the governor with the advice and consent of 197.24 the senate, including at least: 197.25 (1) one elementary school principal; 197.26 (2) one secondary school principal; 197.27 (3) one higher education faculty member in an educational 197.28 administration program approved by the board; 197.29 (4) one higher education administrator for an educational 197.30 administration program approved by the board; 197.31 (5) one school superintendent; 197.32 (6) one classroom teacher; 197.33 (7) one community education directoror aand one special 197.34 education director; and 197.35 (8) two members of the public, one of whom must be a 197.36 present or former school board member. 198.1 In making appointments, the governor shall solicit 198.2 recommendations from groups representing persons in clauses (1) 198.3 to (8). 198.4 [EFFECTIVE DATE.] This section is effective the day 198.5 following final enactment. 198.6 Sec. 12. Minnesota Statutes 2002, section 122A.12, 198.7 subdivision 2, is amended to read: 198.8 Subd. 2. [TERMS; COMPENSATION; REMOVAL; ADMINISTRATION.] 198.9 Membership terms, removal of members, and the filling of 198.10 membership vacancies are as provided in section 214.09. The 198.11 terms of the initial board members must be determined by lot as 198.12 follows: 198.13 (1) three members must be appointed for terms that expire 198.14 August 1, 2002; 198.15 (2) three members must be appointed for terms that expire 198.16 August 1, 2003; and 198.17 (3)threefour members must be appointed for terms that 198.18 expire August 1, 2004. 198.19 Members shall not receive the daily payment under section 198.20 214.09, subdivision 3. The public employer of a member shall 198.21 not reduce the member's compensation or benefits for the 198.22 member's absence from employment when engaging in the business 198.23 of the board. The provision of staff, administrative services, 198.24 and office space; the review and processing of complaints; the 198.25 setting of fees; the selection and duties of an executive 198.26 secretary to serve the board; and other provisions relating to 198.27 board operations are as provided in chapter 214. Fiscal year 198.28 and reporting requirements are as provided in sections 214.07 198.29 and 214.08. 198.30 [EFFECTIVE DATE.] This section is effective the day 198.31 following final enactment. 198.32 Sec. 13. Minnesota Statutes 2002, section 122A.18, 198.33 subdivision 7a, is amended to read: 198.34 Subd. 7a. [PERMISSION TO SUBSTITUTE TEACH.] (a) The board 198.35 of teaching may allow a person who is enrolled in and making 198.36 satisfactory progress in a board-approved teacher program and 199.1 who has successfully completed student teaching to be employed 199.2 as a short-call substitute teacher. 199.3 (b) The board of teaching may issue a lifetime qualified 199.4 short-call substitute teaching license to a person who: 199.5 (1) was a qualified teacher under section 122A.16 while 199.6 holding a continuing five-year teaching license issued by the 199.7 board, and receives a retirement annuity from the teachers 199.8 retirement association, Minneapolis teachers retirement fund 199.9 association, St. Paul teachers retirement fund association, or 199.10 Duluth teachers retirement fund association; 199.11 (2) holds an out-of-state teaching license and receives a 199.12 retirement annuity as a result of the person's teaching 199.13 experience; or 199.14 (3) held a continuing five-year license issued by the 199.15 board, taught at least three school years in an accredited 199.16 nonpublic school in Minnesota, and receives a retirement annuity 199.17 as a result of the person's teaching experience. 199.18 A person holding a lifetime qualified short-call substitute 199.19 teaching license is not required to complete continuing 199.20 education clock hours. A person holding this license may 199.21 reapply to the board for a continuing five-year license and must 199.22 again complete continuing education clock hours one school year 199.23 after receiving the continuing five-year license. 199.24 [EFFECTIVE DATE.] This section is effective for the 199.25 2003-2004 school year. 199.26 Sec. 14. Minnesota Statutes 2002, section 122A.21, is 199.27 amended to read: 199.28 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 199.29 Each application for the issuance, renewal, or extension of 199.30 a license to teach must be accompanied by a processing feein an199.31amount set by the board of teaching by ruleof $57. Each 199.32 application for issuing, renewing, or extending the license of a 199.33 school administrator or supervisor must be accompanied by a 199.34 processing fee in the amount set by the board of teaching. The 199.35 processing fee for a teacher's license and for the licenses of 199.36 supervisory personnel must be paid to the executive secretary of 200.1 the appropriate board. The executive secretary of the board 200.2 shall deposit the fees with the state treasurer, as provided by 200.3 law, and report each month to the commissioner of finance the 200.4 amount of fees collected. The fees as set by the board are 200.5 nonrefundable for applicants not qualifying for a license. 200.6 However, a fee must be refunded by the state treasurer in any 200.7 case in which the applicant already holds a valid unexpired 200.8 license. The board may waive or reduce fees for applicants who 200.9 apply at the same time for more than one license. 200.10 Sec. 15. Minnesota Statutes 2002, section 122A.22, is 200.11 amended to read: 200.12 122A.22 [DISTRICTRECORDINGVERIFICATION OF TEACHER 200.13 LICENSES.] 200.14 No person shall be accounted a qualified teacher until the 200.15person has filed for record with the district superintendent200.16where the person intends to teach a license, or certified copy200.17of a license, authorizing the person to teach school in the200.18district school systemschool district or charter school 200.19 contracting with the person for teaching services verifies 200.20 through the Minnesota education licensing system available on 200.21 the department Web site that the person is a qualified teacher, 200.22 consistent with sections 122A.16 and 122A.44, subdivision 1. 200.23 [EFFECTIVE DATE.] This section is effective for the 200.24 2003-2004 school year and later. 200.25 Sec. 16. Minnesota Statutes 2002, section 127A.05, 200.26 subdivision 1, is amended to read: 200.27 Subdivision 1. [APPOINTMENT AND DUTIES.] The department 200.28 shall be under the administrative control of the commissioner of 200.29children, families, and learningeducation which office is 200.30 established. The governor shall appoint the commissioner under 200.31 the provisions of section 15.06. 200.32 The commissioner shall be a person who possesses 200.33 educational attainment and breadth of experience in the 200.34 administration of public education and of the finances 200.35 pertaining thereto commensurate with the spirit and intent of 200.36 this code. Notwithstanding any other law to the contrary, the 201.1 commissioner may appoint two deputy commissioners who shall 201.2 serve in the unclassified service. The commissioner shall also 201.3 appoint other employees as may be necessary for the organization 201.4 of the department. The commissioner shall perform such duties 201.5 as the law and rules may provide and be held responsible for the 201.6 efficient administration and discipline of the department. The 201.7 commissioner is charged with the execution of powers and duties 201.8 to promote public education in the state and to safeguard the 201.9 finances pertaining thereto. 201.10 Sec. 17. Minnesota Statutes 2002, section 127A.05, 201.11 subdivision 3, is amended to read: 201.12 Subd. 3. [GENERAL SUPERVISION OVER PUBLIC SCHOOLS AND 201.13 EDUCATIONAL AGENCIES.] The commissioner ofchildren, families,201.14and learningeducation shall adopt goals for and exercise 201.15 general supervision over public schools and public educational 201.16 agencies in the state, classify and standardize public 201.17 elementary and secondary schools, and prepare for them outlines 201.18 and suggested courses of study. The commissioner shall develop 201.19 a plan to attain the adopted goals. The commissioner may 201.20 recognize educational accrediting agencies for the sole purposes 201.21 of sections 120A.22, 120A.24, and 120A.26. 201.22 Sec. 18. Minnesota Statutes 2002, section 169.26, 201.23 subdivision 3, is amended to read: 201.24 Subd. 3. [DRIVER TRAINING.] All driver education courses 201.25 approved bythe commissioner of children, families, and learning201.26andthe commissioner of public safety must include instruction 201.27 on railroad-highway grade crossing safety. Thecommissioner of201.28children, families, and learning and thecommissioner of public 201.29 safety shall by rule establish minimum standards of course 201.30 content relating to operation of vehicles at railroad-highway 201.31 grade crossings. 201.32 Sec. 19. Minnesota Statutes 2002, section 169.973, 201.33 subdivision 1, is amended to read: 201.34 Subdivision 1. [COMMISSIONER'S AUTHORITY; RULES; 201.35 CURRICULUM.] The commissioner of public safety shall supervise 201.36 the administration and conduct of driver improvement clinics and 202.1 youth-oriented driver improvement clinics. The commissioner of 202.2 public safety shall promulgate rules setting forth standards for 202.3 the curriculum and mode of instruction of driver improvement 202.4 clinics and youth-oriented driver improvement clinics and such 202.5 other matters as the commissioner of public safety considers 202.6 necessary for the proper administration of such clinics. In the 202.7 preparation of such standards the commissioner of public safety 202.8 shall consult with thecommissioner of children, families, and202.9learning andstate associations of judges. A driver improvement 202.10 clinic established under sections 169.971 to 169.973 and 171.20, 202.11 subdivision 3, shall conform to the standards promulgated by the 202.12 commissioner of public safety. The course of study at a driver 202.13 improvement clinic and youth-oriented driver improvement clinic 202.14 may not exceed a cumulative total of nine hours with no single 202.15 class session lasting more than three hours. The course of 202.16 study at a driver improvement clinic and youth-oriented driver 202.17 improvement clinic shall include instruction in railroad 202.18 crossing safety. 202.19 Sec. 20. Minnesota Statutes 2002, section 178.02, 202.20 subdivision 1, is amended to read: 202.21 Subdivision 1. [MEMBERS.] The commissioner of labor and 202.22 industry, hereinafter called the commissioner, shall appoint an 202.23 apprenticeship advisory council, hereinafter referred to as the 202.24 council, composed of three representatives each from employer 202.25 and employee organizations, and two representatives of the 202.26 general public. Theassistant commissionerdirector of 202.27children, families, and learningeducation responsible for 202.28vocationalcareer and technical education or designee shall be 202.29 an ex officio member of the council and shall serve in an 202.30 advisory capacity only. 202.31 Sec. 21. [FINANCIAL ANALYSIS; CONTRACTS.] 202.32 The office of the legislative auditor shall submit to the 202.33 chair of the senate education committee, the chair of the senate 202.34 E-12 education budget division, the chair of the house of 202.35 representatives education policy committee, and the chair of the 202.36 house of representatives education finance committee before 203.1 January 15, 2004, a detailed financial analysis and report that 203.2 provides the following information: 203.3 (1) the total amount of projected additional costs, direct 203.4 and indirect, associated with the No Child Left Behind Act of 203.5 2001 compliance for the state and local school districts during 203.6 the fiscal year 2004 and fiscal year 2005 biennium and through 203.7 the fiscal year 2013 and fiscal year 2014; 203.8 (2) the amount of new federal funds that are reasonably 203.9 expected to be provided to the state and local school districts 203.10 during the fiscal year 2004 and fiscal year 2005 biennium for 203.11 the costs identified in clause (1); and 203.12 (3) the financial consequences to the state and each 203.13 individual school district of noncompliance with the No Child 203.14 Left Behind Act of 2001. 203.15 [EFFECTIVE DATE.] This section is effective the day 203.16 following final enactment and applies to existing agency 203.17 contracts or agreements. 203.18 Sec. 22. [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 203.19 Subdivision 1. [DEPARTMENT OF EDUCATION.] Unless otherwise 203.20 indicated, the sums indicated in this section are appropriated 203.21 from the general fund to the department of education for the 203.22 fiscal years designated. 203.23 Subd. 2. [DEPARTMENT.] (a) For the department of education: 203.24 $23,653,000 ..... 2004 203.25 $23,653,000 ..... 2005 203.26 Any balance in the first year does not cancel but is 203.27 available in the second year. 203.28 (b) $260,000 each year is for the Minnesota children's 203.29 museum. 203.30 (c) $41,000 each year is for the Minnesota academy of 203.31 science. 203.32 (d) $237,000 of the balance in the state education 203.33 courseware development account in the state government special 203.34 revenue fund as of July 1, 2004, is canceled to the general fund. 203.35 (e) $160,000 of the balance in the state item bank 203.36 revolving account in the state government special revenue fund 204.1 as of July 1, 2004, is canceled to the general fund. 204.2 (f) $621,000 each year is for the board of teaching. 204.3 (g) $165,000 each year is for the board of school 204.4 administrators. 204.5 (h) The commissioner is encouraged to give priority 204.6 consideration to the Minnesota humanities commission when 204.7 issuing grants for professional development of teachers or 204.8 content development from best practices, Federal Title II, Part 204.9 A, Federal Title V, Part A, or other appropriate grant resources 204.10 that have a stated objective of improvement of teacher 204.11 performance. 204.12 Subd. 3. [FEDERAL GRANTS AND AIDS.] The expenditures of 204.13 federal grants and aids as shown in the biennial budget document 204.14 and its supplements are approved and appropriated and shall be 204.15 spent as indicated. 204.16 Sec. 23. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 204.17 The sums indicated in this section are appropriated from 204.18 the general fund to the Minnesota state academies for the deaf 204.19 and the blind for the fiscal years designated: 204.20 $10,966,000 ..... 2004 204.21 $10,966,000 ..... 2005 204.22 Any balance in the first year does not cancel but is 204.23 available in the second year. 204.24 Sec. 24. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 204.25 EDUCATION.] 204.26 The sums indicated in this section are appropriated from 204.27 the general fund to the Perpich center for arts education for 204.28 the fiscal years designated: 204.29 $6,864,000 ..... 2004 204.30 $6,423,000 ..... 2005 204.31 Any balance in the first year does not cancel but is 204.32 available in the second year. 204.33 Sec. 25. [REVISOR'S INSTRUCTION.] 204.34 (a) In Minnesota Statutes, the revisor shall renumber 204.35 section 119A.02, subdivision 2, as 120A.02, paragraph (a), and 204.36 section 120A.02 as 120A.02, paragraph (b). 205.1 (b) In Minnesota Statutes and Minnesota Rules, the revisor 205.2 shall change the term "children, families, and learning" to 205.3 "education." 205.4 (c) In the next and subsequent editions of Minnesota 205.5 Statutes, the revisor shall change all references to the 205.6 "commissioner of children, families, and learning" to the 205.7 "commissioner of public safety" in Minnesota Statutes, sections 205.8 123B.88, subdivision 9; 168.102; 169.441, subdivision 5; and 205.9 171.321, subdivision 4c; and "Part H" to "Part C" in Minnesota 205.10 Statutes, sections 125A.27, subdivisions 7 and 8; 125A.32; 205.11 125A.35; 125A.37; 125A.39; 125A.44; and 125A.45. 205.12 Sec. 26. [REPEALER.] 205.13 (a) Minnesota Statutes 2002, sections 15.014, subdivision 205.14 3; 119A.01, subdivision 1; 123B.90, subdivision 1; 169.441, 205.15 subdivision 4; and 239.004, are repealed. 205.16 (b) Minnesota Rules, parts 3500.0600; 3520.0400; 3520.1400; 205.17 3520.3300; 3530.1500; 3530.2700; 3530.4400; 3530.4500; 205.18 3530.4700; and 3550.0100, are repealed. 205.19 ARTICLE 11 205.20 DEFICIENCIES 205.21 Section 1. [DEPARTMENT OF EDUCATION.] 205.22 The dollar amounts shown are added to or, if shown in 205.23 parentheses, are subtracted from the appropriations in Laws 205.24 2001, First Special Session chapter 6, as amended by Laws 2002, 205.25 chapter 220, and Laws 2002, chapter 374, or other law, and are 205.26 appropriated from the general fund to the department of 205.27 education for the purposes specified in this article, to be 205.28 available for the fiscal year indicated for each purpose. The 205.29 figure "2003" used in this article means that the appropriation 205.30 or appropriations listed are available for the fiscal year 205.31 ending June 30, 2003. 205.32 2003 205.33 APPROPRIATION ADJUSTMENTS $ 10,869,000 205.34 APPROPRIATION CHANGE 205.35 Sec. 2. APPROPRIATIONS; DEPARTMENT OF 205.36 EDUCATION 206.1 Subdivision 1. Community Education Aid 219,000 206.2 Subd. 2. General and Supplemental 206.3 Education Aid 8,791,000 206.4 This change includes ($7,420,000) for 206.5 2002 and $16,211,000 for 2003. 206.6 Subd. 3. Nonpublic Pupil Aid 437,000 206.7 Subd. 4. Consolidation Transition Aid 5,000 206.8 Subd. 5. Interdistrict Desegregation 206.9 or Integration Transportation Grants 169,000 206.10 Subd. 6. Travel for Home-Based 206.11 Services 48,000 206.12 Subd. 7. Debt Service Aid 19,000 206.13 Subd. 8. School Breakfast 100,000 206.14 Subd. 9. Fast Break to Learning 1,081,000 206.15 Sec. 3. [EFFECTIVE DATE.] 206.16 Sections 1 and 2 are effective the day following final 206.17 enactment. 206.18 ARTICLE 12 206.19 TECHNICAL AMENDMENTS 206.20 Section 1. Minnesota Statutes 2002, section 119B.011, 206.21 subdivision 20, is amended to read: 206.22 Subd. 20. [TRANSITION YEAR FAMILIES.] "Transition year 206.23 families" means families who have received MFIP assistance, or 206.24 who were eligible to receive MFIP assistance after choosing to 206.25 discontinue receipt of the cash portion of MFIP assistance under 206.26 section 256J.31, subdivision 12, for at least three of the last 206.27 six months before losing eligibility for MFIPor families206.28participating in work first under chapter 256K who meet the206.29requirements of section 256K.07. Transition year child care may 206.30 be used to support employment or job search. Transition year 206.31 child care is not available to families who have been 206.32 disqualified from MFIP due to fraud. 206.33 Sec. 2. Minnesota Statutes 2002, section 121A.21, is 206.34 amended to read: 206.35 121A.21 [SCHOOL HEALTH SERVICES.] 206.36 (a) Every school board must provide services to promote the 206.37 health of its pupils. 206.38 (b) The board of a district with 1,000 pupils or more in 207.1 average daily membership in early childhood family education, 207.2 preschool handicapped, elementary, and secondary programs must 207.3 comply with the requirements of this paragraph. It may use one 207.4 or a combination of the following methods: 207.5 (1) employ personnel, including at least one full-time 207.6 equivalent licensed school nurseor continue to employ a207.7registered nurse not yet certified as a public health nurse as207.8defined in section 145A.02, subdivision 18, who is enrolled in a207.9program that would lead to certification within four years of207.10August 1, 1988; 207.11 (2) contract with a public or private health organization 207.12 or another public agency for personnel during the regular school 207.13 year, determined appropriate by the board, who are currently 207.14 licensed under chapter 148 and who are certified public health 207.15 nurses; or 207.16 (3) enter into another arrangement approved by the 207.17 commissioner. 207.18 Sec. 3. Minnesota Statutes 2002, section 122A.41, 207.19 subdivision 2, is amended to read: 207.20 Subd. 2. [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] All 207.21 teachers in the public schools in cities of the first class 207.22 during the first three years of consecutive employment shall be 207.23 deemed to be in a probationary period of employment during which 207.24 period any annual contract with any teacher may, or may not, be 207.25 renewed as the school board, after consulting with the peer 207.26 review committee charged with evaluating the probationary 207.27 teachers under subdivision2a or3, shall see fit. The school 207.28 site management team or the school board if there is no school 207.29 site management team, shall adopt a plan for a written 207.30 evaluation of teachers during the probationary period according 207.31 to subdivision2a3. Evaluation by the peer review committee 207.32 charged with evaluating probationary teachers under subdivision 207.332a3 shall occur at least three times each year for a teacher 207.34 performing services on 120 or more school days, at least two 207.35 times each year for a teacher performing services on 60 to 119 207.36 school days, and at least one time each year for a teacher 208.1 performing services on fewer than 60 school days. Days devoted 208.2 to parent-teacher conferences, teachers' workshops, and other 208.3 staff development opportunities and days on which a teacher is 208.4 absent from school shall not be included in determining the 208.5 number of school days on which a teacher performs services. The 208.6 school board may, during such probationary period, discharge or 208.7 demote a teacher for any of the causes as specified in this 208.8 code. A written statement of the cause of such discharge or 208.9 demotion shall be given to the teacher by the school board at 208.10 least 30 days before such removal or demotion shall become 208.11 effective, and the teacher so notified shall have no right of 208.12 appeal therefrom. 208.13 Sec. 4. Minnesota Statutes 2002, section 123B.02, 208.14 subdivision 1, is amended to read: 208.15 Subdivision 1. [BOARD AUTHORITY.] The board must have the 208.16 general charge of the business of the district, the school 208.17 houses, and of the interests of the schools thereof. The 208.18 board's authority to govern, manage, and control the district; 208.19 to carry out its duties and responsibilities; and to conduct the 208.20 business of the district includes implied powers in addition to 208.21 any specific powers granted by the legislature. 208.22 Sec. 5. Minnesota Statutes 2002, section 123B.72, 208.23 subdivision 3, is amended to read: 208.24 Subd. 3. [CERTIFICATION.] Prior to occupying or 208.25 reoccupying a school facility affected by this section, a school 208.26 board or its designee shall submit a document prepared by a 208.27 system inspector to the building official or to the 208.28 commissioner, verifying that the facility's heating, 208.29 ventilation, and air conditioning system has been installed and 208.30 operates according to design specifications and code, according 208.31 to section 123B.71, subdivision109, clause(3)(11). A 208.32 systems inspector shall also verify that the facility's design 208.33 will provide the ability for monitoring of outdoor airflow and 208.34 total airflow of ventilation systems in new school facilities 208.35 and that any heating, ventilation, or air conditioning system 208.36 that is installed or modified for a project subject to this 209.1 section must provide a filtration system with a current ASHRAE 209.2 standard. 209.3 Sec. 6. Minnesota Statutes 2002, section 123B.93, is 209.4 amended to read: 209.5 123B.93 [ADVERTISING ON SCHOOL BUSES.] 209.6 (a) The commissioner, through a competitive process,and209.7with the approval of the school bus safety advisory committee209.8 may contract with advertisers regarding advertising on school 209.9 buses. At a minimum, the contract must prohibit advertising and 209.10 advertising images that: 209.11 (1) solicit the sale of, or promote the use of, alcoholic 209.12 beverages and tobacco products; 209.13 (2) are discriminatory in nature or content; 209.14 (3) imply or declare an endorsement of the product or 209.15 service by the school district; 209.16 (4) contain obscene material; 209.17 (5) are false, misleading, or deceptive; or 209.18 (6) relate to an illegal activity or antisocial behavior. 209.19 (b) Advertisement must meet the following conditions: 209.20 (1) the advertising attached to the school bus does not 209.21 interfere with bus identification under section 169.441; and 209.22 (2) the bus with attached advertising meets the school bus 209.23 equipment standards under sections 169.4501 to 169.4504. 209.24 (c) All buses operated by school districts may be attached 209.25 with advertisements under the state contract. All school 209.26 district contracts shall include a provision for advertisement. 209.27 Each school district shall be reimbursed by the advertiser for 209.28 all costs incurred by the district and its contractors for 209.29 supporting the advertising program, including, but not limited 209.30 to, retrofitting buses, storing advertising, attaching 209.31 advertising to the bus, and related maintenance. 209.32 (d) The commissioner shall hold harmless and indemnify each 209.33 district for all liabilities arising from the advertising 209.34 program. Each district must tender defense of all such claims 209.35 to the commissioner within five days of receipt. 209.36 (e) All revenue from the contract shall be deposited in the 210.1 general fund. 210.2 Sec. 7. Minnesota Statutes 2002, section 124D.03, 210.3 subdivision 12, is amended to read: 210.4 Subd. 12. [TERMINATION OF ENROLLMENT.] A district may 210.5 terminate the enrollment of a nonresident student enrolled under 210.6 this section or section124D.07 or124D.08 at the end of a 210.7 school year if the student meets the definition of a habitual 210.8 truant under section 260C.007, subdivision 19, the student has 210.9 been provided appropriate services under chapter 260A, and the 210.10 student's case has been referred to juvenile court. A district 210.11 may also terminate the enrollment of a nonresident student over 210.12 the age of 16 enrolled under this section if the student is 210.13 absent without lawful excuse for one or more periods on 15 210.14 school days and has not lawfully withdrawn from school under 210.15 section 120A.22, subdivision 8. 210.16 Sec. 8. Minnesota Statutes 2002, section 124D.09, 210.17 subdivision 3, is amended to read: 210.18 Subd. 3. [DEFINITIONS.] For purposes of this section, the 210.19 following terms have the meanings given to them. 210.20 (a) "Eligible institution" means a Minnesota public 210.21 post-secondary institution, a private, nonprofit two-year trade 210.22 and technical school granting associate degrees, an 210.23 opportunities industrialization center accredited by the North 210.24 Central Association of Colleges and Schools, or a private, 210.25 residential, two-year or four-year, liberal arts, 210.26 degree-granting college or university located in Minnesota. 210.27"Course" means a course or program.210.28 (b) "Course" means a course or program. 210.29 Sec. 9. Minnesota Statutes 2002, section 124D.10, 210.30 subdivision 13, is amended to read: 210.31 Subd. 13. [LENGTH OF SCHOOL YEAR.] A charter school must 210.32 provide instruction each year for at least the number of days 210.33 required by section120A.22, subdivision 5120A.41. It may 210.34 provide instruction throughout the year according to sections 210.35 124D.12 to 124D.127 or 124D.128. 210.36 Sec. 10. Minnesota Statutes 2002, section 124D.10, 211.1 subdivision 23a, is amended to read: 211.2 Subd. 23a. [RELATED PARTY LEASE COSTS.] (a) A charter 211.3 school is prohibited from entering a lease of real property with 211.4 a related party as defined in this subdivision, unless the 211.5 lessor is a nonprofit corporation under chapter 317A or a 211.6 cooperative under chapter 308A, and the lease cost is reasonable 211.7 under section 124D.11, subdivision 4, clause (1). 211.8 (b) For purposes of this subdivision: 211.9 (1) A "related party" is an affiliate or close relative of 211.10 the other party in question, an affiliate of a close relative, 211.11 or a close relative of an affiliate. 211.12 (2) "Affiliate" means a person that directly, or indirectly 211.13 through one or more intermediaries, controls, or is controlled 211.14 by, or is under common control with, another person. 211.15 (3) "Close relative" means an individual whose relationship 211.16 by blood, marriage, or adoption to another individual is no more 211.17 remote than first cousin. 211.18 (4) "Person" means an individual or entity of any kind. 211.19 (5) "Control" includes the terms "controlling," "controlled 211.20 by," and "under common control with" and means the possession, 211.21 direct or indirect, of the power to direct or cause the 211.22 direction of the management, operations, or policies of a 211.23 person, whether through the ownership of voting securities, by 211.24 contract, or otherwise. 211.25 (c) A lease of real property to be used for a charter 211.26 school, not excluded in paragraph (b), must contain the 211.27 following statement: "This lease is subject to Minnesota 211.28 Statutes, section 124D.10, subdivision 23a." 211.29 (d) If a charter school enters into as lessee a lease with 211.30 a related party and the charter school subsequently closes, the 211.31 commissioner has the right to recover from the lessor any lease 211.32 payments in excess of those that are reasonable under section 211.33124.11124D.11, subdivision 4, clause (1). 211.34 Sec. 11. Minnesota Statutes 2002, section 125A.05, is 211.35 amended to read: 211.36 125A.05 [METHOD OF SPECIAL INSTRUCTION.] 212.1 (a) As defined in thissubdivisionsection, to the extent 212.2 required by federal law as of July 1, 1999, special instruction 212.3 and services for children with a disability must be based on the 212.4 assessment and individual education plan. The instruction and 212.5 services may be provided by one or more of the following methods: 212.6 (1) in connection with attending regular elementary and 212.7 secondary school classes; 212.8 (2) establishment of special classes; 212.9 (3) at the home or bedside of the child; 212.10 (4) in other districts; 212.11 (5) instruction and services by special education 212.12 cooperative centers established under this section, or in 212.13 another member district of the cooperative center to which the 212.14 resident district of the child with a disability belongs; 212.15 (6) in a state residential school or a school department of 212.16 a state institution approved by the commissioner; 212.17 (7) in other states; 212.18 (8) by contracting with public, private or voluntary 212.19 agencies; 212.20 (9) for children under age five and their families, 212.21 programs and services established through collaborative efforts 212.22 with other agencies; 212.23 (10) for children under age five and their families, 212.24 programs in which children with a disability are served with 212.25 children without a disability; and 212.26 (11) any other method approved by the commissioner. 212.27 (b) Preference shall be given to providing special 212.28 instruction and services to children under age three and their 212.29 families in the residence of the child with the parent or 212.30 primary caregiver, or both, present. 212.31 (c) The primary responsibility for the education of a child 212.32 with a disability must remain with the district of the child's 212.33 residence regardless of which method of providing special 212.34 instruction and services is used. If a district other than a 212.35 child's district of residence provides special instruction and 212.36 services to the child, then the district providing the special 213.1 instruction and services must notify the child's district of 213.2 residence before the child's individual education plan is 213.3 developed and must provide the district of residence an 213.4 opportunity to participate in the plan's development. The 213.5 district of residence must inform the parents of the child about 213.6 the methods of instruction that are available. 213.7 Sec. 12. Minnesota Statutes 2002, section 125A.12, is 213.8 amended to read: 213.9 125A.12 [ATTENDANCE IN ANOTHER DISTRICT.] 213.10 No resident of a district who is eligible for special 213.11 instruction and services pursuant to this section may be denied 213.12 provision of this instruction and service because of attending a 213.13 public school in another district pursuant to section 123B.88, 213.14 subdivision 5, if the attendance is not subject to section 213.15 124D.06, 124D.07,or 124D.08. If the pupil attends a public 213.16 school located in a contiguous district and the district of 213.17 attendance does not provide special instruction and services, 213.18 the district of residence must provide necessary transportation 213.19 for the pupil between the boundary of the district of residence 213.20 and the educational facility where special instruction and 213.21 services are provided within the district of residence. The 213.22 district of residence may provide necessary transportation for 213.23 the pupil between its boundary and the school attended in the 213.24 contiguous district, but must not pay the cost of transportation 213.25 provided outside the boundary of the district of residence. 213.26 Sec. 13. Minnesota Statutes 2002, section 126C.10, 213.27 subdivision 28, is amended to read: 213.28 Subd. 28. [EQUITY REGION.] For the purposes of computing 213.29 equity revenue under subdivision2324, a district whose 213.30 administrative offices on July 1, 1999, is located in Anoka, 213.31 Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 213.32 part of the metro equity region. Districts whose administrative 213.33 offices on July 1, 1999, are not located in Anoka, Carver, 213.34 Dakota, Hennepin, Ramsey, Scott, or Washington county are part 213.35 of the rural equity region. 213.36 Sec. 14. Minnesota Statutes 2002, section 126C.55, 214.1 subdivision 5, is amended to read: 214.2 Subd. 5. [AID REDUCTION FOR REPAYMENT.] Except as provided 214.3 in this subdivision, the state must reduce the state aid payable 214.4 to the district under this chapter and chapters 120B, 122A, 214.5 123A, 123B, 124D, 125A, 127A, and 273,according to the schedule214.6in section 127A.44, subdivision 2,by the amount paid by the 214.7 state under this section on behalf of the district, plus the 214.8 interest due on it, and the amount reduced must revert from the 214.9 appropriate account to the state general fund. Payments from 214.10 the school endowment fund or any federal aid payments shall not 214.11 be reduced. If, after review of the financial situation of the 214.12 district, the commissioner advises the commissioner of finance 214.13 that a total reduction of the aids would cause an undue hardship 214.14 on or an undue disruption of the educational program of the 214.15 district, the commissioner, with the approval of the 214.16 commissioner of finance, may establish a different schedule for 214.17 reduction of those aids to repay the state. The amount of aids 214.18 to be reduced are decreased by any amounts repaid to the state 214.19 by the school district from other revenue sources. 214.20 Sec. 15. Minnesota Statutes 2002, section 127A.05, 214.21 subdivision 4, is amended to read: 214.22 Subd. 4. [ADMINISTRATIVE RULES.] The commissioner may 214.23 adopt new rules or amend any existing rules only under specific 214.24 authority and consistent with the requirements of chapter 14. 214.25 The commissioner may repeal any existing rules adopted by the 214.26 commissioner.Notwithstanding the provisions of section 14.05,214.27subdivision 4,The commissioner may grant a variance to rules 214.28 adopted by the commissioner upon application by a school 214.29 district for purposes of implementing experimental programs in 214.30 learning or school management. This subdivision shall not 214.31 prohibit the commissioner from making technical changes or 214.32 corrections to rules adopted by the commissioner. 214.33 Sec. 16. Minnesota Statutes 2002, section 127A.45, 214.34 subdivision 12, is amended to read: 214.35 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 214.36 hundred percent of the aid for the current fiscal year must be 215.1 paid for the following aids: reimbursement for enrollment 215.2 options transportation, according to sections 124D.03, 215.3 subdivision 8, 124D.09, subdivision 22, and 124D.10; school 215.4 lunch aid, according to section 124D.111; hearing impaired 215.5 support services aid, according to section 124D.57; and Indian 215.6 post-secondary preparation grants according to section124D.85215.7 124D.80. 215.8 (b) One hundred percent of the aid for the current fiscal 215.9 year, based on enrollment in the previous year, must be paid for 215.10 the first grade preparedness program according to section 215.11 124D.081. 215.12 Sec. 17. Minnesota Statutes 2002, section 169.435, is 215.13 amended to read: 215.14 169.435 [STATE SCHOOL BUS SAFETY ADMINISTRATION.] 215.15 Subdivision 1. [RESPONSIBILITY; DEPARTMENT OF PUBLIC 215.16 SAFETY.] The department of public safety has the primary 215.17 responsibility for school transportation safety.To oversee215.18school transportation safety, the commissioner of public safety215.19shall establish a school bus safety advisory committee according215.20to subdivision 2.The commissioner or the commissioner's 215.21 designee shall serve as state director of pupil transportation 215.22 according to subdivision 3. 215.23 Subd. 3. [PUPIL TRANSPORTATION SAFETY DIRECTOR.] (a) The 215.24 commissioner of public safety or the commissioner's designee 215.25 shall serve as pupil transportation safety director. 215.26 (b) The duties of the pupil transportation safety director 215.27 shall include: 215.28 (1) overseeing all department activities related to school 215.29 bus safety; 215.30 (2) assisting in the development, interpretation, and 215.31 implementation of laws and policies relating to school bus 215.32 safety; 215.33 (3) supervising preparation of the school bus inspection 215.34 manual; and 215.35 (4) in conjunction with the department ofchildren,215.36families, and learningeducation, assisting school districts in 216.1 developing and implementing comprehensive transportation 216.2 policies; and216.3(5) providing information requested by the school bus216.4safety advisory committee. 216.5 Sec. 18. Minnesota Statutes 2002, section 169.449, 216.6 subdivision 1, is amended to read: 216.7 Subdivision 1. [RULES.] The commissioner of public safety,216.8in consultation with the school bus safety advisory committee,216.9 shall adopt rules governing the operation of school buses used 216.10 for transportation of school children, when owned or operated by 216.11 a school or privately owned and operated under a contract with a 216.12 school, and these rules must be made a part of that contract by 216.13 reference. Each school, its officers and employees, and each 216.14 person employed under the contract is subject to these rules. 216.15 Sec. 19. Minnesota Statutes 2002, section 169.4501, 216.16 subdivision 3, is amended to read: 216.17 Subd. 3. [INSPECTION MANUAL.] The department of public 216.18 safety shall develop a school bus inspection manual based on the 216.19 national standards adopted in subdivision 1 and Minnesota 216.20 standards adopted in sections 169.4502 to 169.4504. The 216.21 Minnesota state patrol shall use the manual as the basis for 216.22 inspecting buses as provided in section 169.451.When216.23appropriate, the school bus safety advisory committee shall216.24recommend to the education committees of the legislature216.25modifications to the standards upon which the school bus216.26inspection manual is based.The department of public safety has 216.27 no rulemaking authority to alter the standards upon which school 216.28 buses are inspected. 216.29 Sec. 20. Minnesota Statutes 2002, section 169.4501, 216.30 subdivision 4, is amended to read: 216.31 Subd. 4. [VARIANCE.] The commissioner of public safety may 216.32 grant a variance to any of the school bus standards to 216.33 accommodate testing of new equipment related to school buses. A 216.34 variance from the standards must be for the sole purpose of 216.35 testing and evaluating new equipment for increased safety, 216.36 efficiency, and economy of pupil transportation. The variance 217.1 expires 18 months from the date on which it is granted unless 217.2 the commissioner specifies an earlier expiration date.The217.3school bus safety advisory committee shall annually review all217.4variances that are granted under this subdivision and consider217.5whether to recommend modifications to the Minnesota school bus217.6equipment standards based on the variances.217.7 Sec. 21. [REPEALER.] 217.8 (a) Minnesota Statutes 2002, section 126C.55, subdivision 217.9 5, is repealed. 217.10 (b) Laws 2001, First Special Session chapter 3, article 4, 217.11 sections 1 and 2; and Laws 2001, First Special Session chapter 217.12 6, article 2, section 52, are repealed. 217.13 ARTICLE 13 217.14 ACADEMIC CONTENT STANDARDS 217.15 Section 1. [120B.001] [REPEALING PROFILE OF LEARNING 217.16 STATUTES AND RULES AND RELATED STATEWIDE TESTING REQUIREMENT.] 217.17 (a) Notwithstanding sections 120B.02, 120B.031, 120B.30, 217.18 120B.31, and 120B.35, or other law to the contrary, the 217.19 commissioner of education must not implement the profile of 217.20 learning portion of the state's results-oriented graduation rule 217.21 and all rules under Minnesota Rules, chapter 3501, related to 217.22 the profile of learning portion of the state's results-oriented 217.23 graduation rule described in this chapter are repealed. 217.24 (b) The requirement under section 120B.30 for a test 217.25 aligned with the profile of learning portion of the state's 217.26 graduation standards that is administered annually to all 217.27 students in grades 3, 5, 7, 8, 10, and 11 is repealed. This 217.28 repeal does not apply to the state's basic skills tests in 217.29 reading, mathematics, and written composition. 217.30 [EFFECTIVE DATE.] Paragraph (a) is effective the day 217.31 following final enactment and applies to the 2003-2004 school 217.32 year and later. Paragraph (b) is effective immediately and 217.33 applies to the 2005-2006 school year and later. 217.34 Sec. 2. [REPLACING PROFILE OF LEARNING STATUTES AND 217.35 RULES.] 217.36 Subdivision 1. [STAKEHOLDER ADVICE ON STANDARDS.] The 218.1 commissioner of education must consider advice from at least the 218.2 following stakeholders in developing statewide rigorous core 218.3 academic standards in English, mathematics, science, and history 218.4 and geography to replace the profile of learning: 218.5 (1) parents of school-age children and members of the 218.6 public throughout the state; 218.7 (2) teachers throughout the state currently licensed and 218.8 providing instruction in English, mathematics, science, or 218.9 history and geography and licensed elementary and secondary 218.10 school principals throughout the state currently administering a 218.11 school site; 218.12 (3) currently serving members of local school boards and 218.13 charter school boards throughout the state; 218.14 (4) faculty teaching core subjects at postsecondary 218.15 institutions in Minnesota; and 218.16 (5) representatives of the Minnesota business community. 218.17 Subd. 2. [PARAMETERS FOR ACADEMIC STANDARDS.] The academic 218.18 standards must: 218.19 (1) be based on factual, objective, verifiable knowledge in 218.20 English, mathematics, science, and history and geography; 218.21 (2) be clear, concise, measurable, and grade-level 218.22 appropriate; 218.23 (3) preserve and promote fundamental American principles 218.24 stated in the Declaration of Independence and the Constitution 218.25 of the United States and other such principles as national 218.26 sovereignty, natural law, and free market enterprise; 218.27 (4) not mandate a specific teaching methodology nor include 218.28 work-based learning or any other content standard inconsistent 218.29 with this subdivision; and 218.30 (5) be assessed using tests aligned with the academic 218.31 standards established under this section. 218.32 Subd. 3. [COMMISSIONER TO PRESENT PROPOSED RULES TO THE 218.33 LEGISLATURE.] (a) The commissioner must present to the 218.34 legislature proposed rules for implementing statewide rigorous 218.35 core academic standards in English, mathematics, science, and 218.36 history and geography as follows: 219.1 (1) by April 15, 2003, present proposed rules for 219.2 implementing statewide rigorous core academic standards in 219.3 English and mathematics; 219.4 (2) present a statewide plan for students, educators, 219.5 schools, and school districts to make the transition from the 219.6 profile of learning to the standards described under this act; 219.7 (3) by March 1, 2004, present proposed rules for 219.8 implementing statewide rigorous core academic standards in 219.9 science; 219.10 (4) by March 1, 2005, present proposed rules for 219.11 implementing statewide rigorous core academic standards in 219.12 history and geography. 219.13 (b) All proposed rules the commissioner presents must 219.14 comply with the requirements of this section. 219.15 (c) A school district, no later than the 2007-2008 school 219.16 year, must incorporate into its existing locally established 219.17 graduation requirements the state graduation requirements 219.18 premised on rules proposed under this section. A school 219.19 district that incorporates these state graduation requirements 219.20 before the 2007-2008 school year must provide students who enter 219.21 the ninth grade in or before the 2004-2005 school year with the 219.22 opportunity to earn a diploma based on existing locally 219.23 established graduation requirements in effect when the students 219.24 entered grade 9. District efforts to develop, implement, or 219.25 improve instruction or curriculum as a result of the provisions 219.26 of this section must be consistent with sections 120B.10, 219.27 120B.11, and 120B.20. 219.28 Subd. 4. [RULES IMPLEMENTING READING AND MATH 219.29 STANDARDS.] The commissioner must adopt rules under section 219.30 14.388, clause (2), for implementing the statewide rigorous core 219.31 academic standards in English and mathematics described in 219.32 subdivision 3, paragraph (a), clause (1). 219.33 [EFFECTIVE DATE.] Subdivisions 1, 2, and 3 are effective 219.34 the day following final enactment. Subdivision 4 is effective 219.35 April 30, 2003. 219.36 Sec. 3. [INTERIM ALTERNATIVE.] 220.1 If the legislature does not authorize the commissioner 220.2 under section 2, subdivision 4, to adopt rules to implement 220.3 statewide rigorous core academic standards in English and 220.4 mathematics that are effective for the 2003-2004 school year, 220.5 each school district and charter school shall continue to 220.6 implement academic English and mathematics standards consistent 220.7 with Minnesota Statutes, section 120A.22, subdivision 9, until 220.8 such rules to implement statewide rigorous core academic 220.9 standards in English and mathematics are adopted. 220.10 [EFFECTIVE DATE.] This section is effective the day 220.11 following final enactment. 220.12 Sec. 4. [RULES FOR SUPPLEMENTAL SERVICE PROVIDERS.] 220.13 The commissioner of children, families, and learning may 220.14 adopt rules under Minnesota Statutes, section 14.388, 220.15 establishing criteria for identifying, annually reviewing, and 220.16 formally listing eligible supplemental education service 220.17 providers throughout Minnesota, consistent with applicable 220.18 federal requirements and Minnesota's application for 220.19 supplemental education service providers under Title 1, Part A, 220.20 of the No Child Left Behind Act. 220.21 [EFFECTIVE DATE.] This section is effective the day 220.22 following final enactment and applies to supplemental education 220.23 service providers delivering supplemental English or math 220.24 services to eligible students in the 2003-2004 school year and 220.25 later.