as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; families and early childhood 1.3 education; kindergarten through grade 12; providing 1.4 for child care programs, early childhood programs, 1.5 prevention, self-sufficiency and lifelong learning, 1.6 general education, other general programs, nonpublic 1.7 pupil programs, charter schools, desegregation 1.8 programs, American Indian programs, accountability and 1.9 reform, programs for special populations, special 1.10 programs, facilities and technology, nutrition 1.11 programs, libraries, and state agencies; renaming the 1.12 department of children, families, and learning to 1.13 department of education; appropriating money; amending 1.14 Minnesota Statutes 2002, sections 15.01; 119A.01, 1.15 subdivision 2; 119A.02, subdivisions 2, 3; 119B.011, 1.16 subdivisions 8, 10; 119B.12, subdivision 2; 119B.13, 1.17 subdivision 2, by adding a subdivision; 120A.02; 1.18 120A.05, subdivisions 4, 7; 122A.61, subdivision 1; 1.19 123B.53, subdivision 4; 123B.57, subdivisions 1, 6; 1.20 123B.59, subdivisions 1, 2, 3, 5, by adding a 1.21 subdivision; 123B.75, subdivision 5; 123B.92, 1.22 subdivision 9; 124D.09, subdivision 13; 124D.11, 1.23 subdivisions 1, 4, 6, 9; 124D.128, subdivisions 2, 3, 1.24 6; 124D.135, subdivisions 1, 8; 124D.16, subdivision 1.25 6; 124D.20, subdivisions 3, 5, by adding subdivisions; 1.26 124D.52, subdivisions 1, 3; 124D.531, subdivisions 1, 1.27 2, 4, 7; 124D.59, subdivision 2; 124D.65, subdivision 1.28 5; 124D.86, subdivisions 3, 4, 5; 125A.76, 1.29 subdivisions 1, 4; 125A.79, subdivisions 1, 6; 1.30 126C.05, subdivisions 8, 14, 15, 17; 126C.10, 1.31 subdivisions 1, 3, 4, 7, 8, 17, 18, by adding 1.32 subdivisions; 126C.13, subdivision 4; 126C.17, 1.33 subdivisions 1, 2, 5, 7, 13; 126C.40, subdivisions 1, 1.34 2, 6; 126C.43, subdivisions 2, 3; 126C.45; 127A.05, 1.35 subdivisions 1, 3; 127A.45, subdivisions 2, 3, 10, 13, 1.36 14, 14a, 16; 268.052, subdivisions 2, 4; Laws 2001, 1.37 First Special Session chapter 6, article 2, section 1.38 64; proposing coding for new law in Minnesota 1.39 Statutes, chapters 124D; 127A; repealing Minnesota 1.40 Statutes 2002, sections 119A.01, subdivision 1; 1.41 119A.46; 120B.23; 122A.62; 122A.64; 122A.65; 123B.59, 1.42 subdivisions 6, 7; 124D.09, subdivision 15; 124D.115; 1.43 124D.1156; 124D.118; 124D.17; 124D.21; 124D.221; 1.44 124D.54; 124D.89; 125A.79, subdivision 2; 126C.01, 1.45 subdivision 9; 126C.05, subdivision 12; 126C.10, 1.46 subdivision 5; 126C.445; 126C.455; Laws 1993, chapter 2.1 224, article 8, section 20, subdivision 2, as amended; 2.2 Laws 2000, chapter 489, article 2, section 36, as 2.3 amended; Laws 2001, First Special Session chapter 6, 2.4 article 2, section 70. 2.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.6 ARTICLE 1 2.7 GENERAL EDUCATION 2.8 Section 1. Minnesota Statutes 2002, section 122A.61, 2.9 subdivision 1, is amended to read: 2.10 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 2.11 required to reserve an amount equal to at least two percent of 2.12 the basic revenue under section 126C.10, subdivision 2.13 2, remaining after subtracting $415 times the district's 2.14 adjusted marginal cost pupil units, for in-service education for 2.15 programs under section 120B.22, subdivision 2, for staff 2.16 development plans, including plans for challenging instructional 2.17 activities and experiences under section 122A.60, and for 2.18 curriculum development and programs, other in-service education, 2.19 teachers' workshops, teacher conferences, the cost of substitute 2.20 teachers staff development purposes, preservice and in-service 2.21 education for special education professionals and 2.22 paraprofessionals, and other related costs for staff development 2.23 efforts. A district may annually waive the requirement to 2.24 reserve their basic revenue under this section if a majority 2.25 vote of the licensed teachers in the district and a majority 2.26 vote of the school board agree to a resolution to waive the 2.27 requirement. A district in statutory operating debt is exempt 2.28 from reserving basic revenue according to this section. 2.29 Districts may expend an additional amount of unreserved revenue 2.30 for staff development based on their needs. With the exception 2.31 of amounts reserved for staff development from revenues 2.32 allocated directly to school sites, the board must initially 2.33 allocate 50 percent of the reserved revenue to each school site 2.34 in the district on a per teacher basis, which must be retained 2.35 by the school site until used. The board may retain 25 percent 2.36 to be used for district wide staff development efforts. The 2.37 remaining 25 percent of the revenue must be used to make grants 3.1 to school sites for best practices methods. A grant may be used 3.2 for any purpose authorized under section 120B.22, subdivision 2, 3.3 122A.60, or for the costs of curriculum development and 3.4 programs, other in-service education, teachers' workshops, 3.5 teacher conferences, substitute teachers for staff development 3.6 purposes, and other staff development efforts, and determined by 3.7 the site professional development team. The site professional 3.8 development team must demonstrate to the school board the extent 3.9 to which staff at the site have met the outcomes of the 3.10 program. The board may withhold a portion of initial allocation 3.11 of revenue if the staff development outcomes are not being met. 3.12 Sec. 2. Minnesota Statutes 2002, section 123B.75, 3.13 subdivision 5, is amended to read: 3.14 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 3.15 settlement revenue" means the current, delinquent, and 3.16 manufactured home property tax receipts collected by the county 3.17 and distributed to the school district. 3.18 (b)In June of 2001, the school district must recognize as3.19revenue, in the fund for which the levy was made, the lesser of:3.20(1) the sum of May, June, and July school district tax3.21settlement revenue received in that calendar year plus general3.22education aid according to section 126C.13, subdivision 4,3.23received in July and August of that calendar year; or3.24(2) the sum of:3.25(i) 31 percent of the referendum levy certified in the3.26prior calendar year according to section 126C.17, subdivision 9;3.27plus3.28(ii) the entire amount of the levy certified in the prior3.29calendar year according to sections 124D.86, subdivision 4, for3.30school districts receiving revenue under 124D.86, subdivision 3,3.31clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,3.32paragraphs (4), (5), and (6); 126C.43, subdivision 2; and3.33126C.48, subdivision 6.3.34(c) For fiscal year 2002 and later years,In June ofeach3.35year2003, the school district must recognize as revenue, in the 3.36 fund for which the levy was made, the lesser of: 4.1 (1) the sum of May, June, and July school district tax 4.2 settlement revenue received in that calendar year, plus general 4.3 education aid according to section 126C.13, subdivision 4, 4.4 received in July and August of that calendar year; or 4.5 (2) the sum of: 4.6 (i) 31 percent of the referendum levy certified according 4.7 to section 126C.17, in calendar year 2000; plus 4.8 (ii) the entire amount of the levy certified in the prior 4.9 calendar year according to section 124D.86, subdivision 4, for 4.10 school districts receiving revenue under sections 124D.86, 4.11 subdivision 3, clauses (1),and (2), and (3); 126C.41, 4.12 subdivisions 1, 2, and 3, paragraphs(4)(b),(5)(c), 4.13 and(6)(d); 126C.43, subdivision 2; and 126C.48, subdivision 6. 4.14 (c) For fiscal year 2004 and later years, in June of each 4.15 year, the school district must recognize as revenue, in the fund 4.16 for which the levy was made, the lesser of: 4.17 (1) the sum of May, June, and July school district tax 4.18 settlement revenue received in that calendar year, plus general 4.19 education aid according to section 126C.13, subdivision 4, 4.20 received in July and August of that calendar year; or 4.21 (2) the sum of: 4.22 (i) the greater of 36.6 percent of the referendum levy 4.23 certified according to section 126.17, in the prior calendar 4.24 year or 31 percent of the referendum levy certified according to 4.25 section 126C.17, in calendar year 2000; plus 4.26 (ii) the entire amount of the levy certified in the prior 4.27 calendar year according to section 124D.86, subdivision 4, for 4.28 school districts receiving revenue under sections 124D.86, 4.29 subdivision 3, clauses (1) and (2); 126C.41, subdivisions 1, 2, 4.30 and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 4.31 126C.48, subdivision 6; plus 4.32 (iii) 36.6 percent of the amount of the levy certified in 4.33 the prior calendar year for the school district's general and 4.34 community service funds, plus or minus auditor's adjustments, 4.35 not including levy portions that are assumed by the state, that 4.36 remains after subtracting the referendum levy certified 5.1 according to section 126C.17 and the amount recognized according 5.2 to clause (ii). 5.3 Sec. 3. Minnesota Statutes 2002, section 124D.09, 5.4 subdivision 13, is amended to read: 5.5 Subd. 13. [FINANCIAL ARRANGEMENTS.] For a pupil enrolled 5.6 in a course under this section, the department must make 5.7 payments according to this subdivision for courses that were 5.8 taken for secondary credit. 5.9 The department must not make payments to a school district 5.10 or post-secondary institution for a course taken for 5.11 post-secondary credit only. The department must not make 5.12 payments to a post-secondary institution for a course from which 5.13 a student officially withdraws during the first 14 days of the 5.14 quarter or semester or who has been absent from the 5.15 post-secondary institution for the first 15 consecutive school 5.16 days of the quarter or semester and is not receiving instruction 5.17 in the home or hospital. 5.18 A post-secondary institution shall receive the following: 5.19 (1) for an institution granting quarter credit, the 5.20 reimbursement per credit hour shall be an amount equal to 88 5.21 percent of the product of the formula allowance minus $415, 5.22 multiplied by 1.3, and divided by 45; or 5.23 (2) for an institution granting semester credit, the 5.24 reimbursement per credit hour shall be an amount equal to 88 5.25 percent of the product of the general revenue formula 5.26 allowance minus $415, multiplied by 1.3, and divided by 30. 5.27 The department must pay to each post-secondary institution 5.28 100 percent of the amount in clause (1) or (2) within 30 days of 5.29 receiving initial enrollment information each quarter or 5.30 semester. If changes in enrollment occur during a quarter or 5.31 semester, the change shall be reported by the post-secondary 5.32 institution at the time the enrollment information for the 5.33 succeeding quarter or semester is submitted. At any time the 5.34 department notifies a post-secondary institution that an 5.35 overpayment has been made, the institution shall promptly remit 5.36 the amount due. 6.1 Sec. 4. Minnesota Statutes 2002, section 124D.128, 6.2 subdivision 2, is amended to read: 6.3 Subd. 2. [COMMISSIONER DESIGNATION.](a)An area learning 6.4 center designated by the state must be a site. To be 6.5 designated, a district or center must demonstrate to the 6.6 commissioner that it will:6.7(1)provide a program of instruction that permits pupils to 6.8 receive instruction throughout the entire year; and. 6.9(2) maintain a record system that, for purposes of section6.10126C.05, permits identification of membership attributable to6.11pupils participating in the program. The record system and6.12identification must ensure that the program will not have the6.13effect of increasing the total number of pupil units6.14attributable to an individual pupil as a result of a learning6.15year program. The record system must include the date the pupil6.16originally enrolled in a learning year program, the pupil's6.17grade level, the date of each grade promotion, the average daily6.18membership generated in each grade level, the number of credits6.19or standards earned, and the number needed to graduate. 6.20(b) A student who has not completed a school district's6.21graduation requirements may continue to enroll in courses the6.22student must complete in order to graduate until the student6.23satisfies the district's graduation requirements or the student6.24is 21 years old, whichever comes first.6.25 Sec. 5. Minnesota Statutes 2002, section 124D.128, 6.26 subdivision 3, is amended to read: 6.27 Subd. 3. [STUDENT PLANNING.] A district must inform all 6.28 pupils and their parents about the learning year program and 6.29 that participation in the program is optional. A continual 6.30 learning plan must be developed at least annually for each pupil 6.31 with the participation of the pupil, parent or guardian, 6.32 teachers, and other staff; each participant must sign and date 6.33 the plan. The plan must specify the learning experiences that 6.34 must occur during the entire fiscal year and, for secondary 6.35 students, for graduation. The plan must include: 6.36 (1) the pupil's learning objectives and experiences, 7.1 including courses or credits the pupil plans to complete each 7.2 year and, for a secondary pupil, the graduation requirements the 7.3 student must complete; 7.4 (2) the assessment measurements used to evaluate a pupil's 7.5 objectives; 7.6 (3) requirements for grade level or other appropriate 7.7 progression; and 7.8 (4) for pupilsgenerating more than one average daily7.9membership in a given gradenot making grade progression, an 7.10 indication of which objectives were unmet. 7.11 The plan may be modified to conform to district schedule 7.12 changes. The district may not modify the plan if the 7.13 modification would result in delaying the student's time of 7.14 graduation. 7.15 Sec. 6. Minnesota Statutes 2002, section 124D.128, 7.16 subdivision 6, is amended to read: 7.17 Subd. 6. [REVENUE COMPUTATION AND REPORTING.] Aid and levy 7.18 revenue computations must be based on the total number of hours 7.19 of education programs for pupils in average daily membership for 7.20 each fiscal year. Average daily membership shall be computed 7.21 under section 126C.05, subdivision 15. Hours of participation 7.22 that occur after the close of the regular 2003-2004 7.23 instructional year and before July 1, 2004, must be attributed 7.24 to the following fiscal year. For revenue computation purposes, 7.25 the learning year program shall generate revenue based on the 7.26 formulas for the fiscal year in which the services are 7.27 provided. The dates a participating pupil is promoted must be 7.28 reported in a timely manner to the department. 7.29 Sec. 7. Minnesota Statutes 2002, section 124D.59, 7.30 subdivision 2, is amended to read: 7.31 Subd. 2. [PUPIL OF LIMITED ENGLISH PROFICIENCY.] 7.32 (a) "Pupil of limited English proficiency" means a pupil in 7.33 kindergarten through grade 12 who meets the following 7.34 requirements: 7.35 (1) the pupilin kindergarten through grade 12, as declared 7.36 by a parent or guardian first learned a language other than 8.1 English, comes from a home where the language usually spoken is 8.2 other than English, or usually speaks a language other than 8.3 English; and 8.4 (2)for a pupil in kindergarten through grade 2,the pupil 8.5 is determined by developmentally appropriate measures, which 8.6 might include observations, teacher judgment, parent 8.7 recommendations, or developmentally appropriate assessment 8.8 instruments, to lack the necessary English skills to participate 8.9 fully in classes taught in English; or. 8.10(3) the(b) Notwithstanding paragraph (a), a pupil in 8.11 grades34 through 12scoreswho was enrolled in a Minnesota 8.12 public school on the dates during the previous school year when 8.13 a commissioner provided assessment that measures the pupil's 8.14 emerging academic English was administered, shall not be counted 8.15 as a pupil of limited English proficiency in calculating limited 8.16 English proficiency pupil units under section 126C.05, 8.17 subdivision 17, and shall not generate state limited English 8.18 proficiency aid under section 124D.65, subdivision 5, unless the 8.19 pupil scored below the state cutoff score on an assessment 8.20 measuring emerging academic English provided by the commissioner 8.21 during the previous school year. 8.22 (c) Notwithstanding paragraphs (a) and (b), a pupil in 8.23 kindergarten through grade 12 shall not be counted as a pupil of 8.24 limited English proficiency in calculating limited English 8.25 proficiency pupil units under section 126C.05, subdivision 17, 8.26 and shall not generate state limited English proficiency aid 8.27 under section 124D.65, subdivision 5, if: 8.28 (i) the pupil is not enrolled during the current fiscal 8.29 year in an educational program for pupils of limited English 8.30 proficiency in accordance with sections 124D.58 to 124D.64; or 8.31 (ii) the pupil has generated five or more years of average 8.32 daily membership in Minnesota public schools since July 1, 1996. 8.33 Sec. 8. Minnesota Statutes 2002, section 124D.65, 8.34 subdivision 5, is amended to read: 8.35 Subd. 5. [SCHOOL DISTRICT LEP REVENUE.](a) A school8.36district's limited English proficiency programs revenue for9.1fiscal year 2000 equals the state total limited English9.2proficiency programs revenue, minus the amount determined under9.3paragraph (b), times the ratio of the district's adjusted9.4limited English proficiency programs base revenue to the state9.5total adjusted limited English proficiency programs base revenue.9.6(b) Notwithstanding paragraph (a), if the limited English9.7proficiency programs base revenue for a district equals zero,9.8the limited English proficiency programs revenue equals the sum9.9of the following amounts, computed using current year data:9.10(1) 68 percent of the salary of one full-time equivalent9.11teacher for each 40 pupils of limited English proficiency9.12enrolled, or 68 percent of the salary of one-half of a full-time9.13teacher in a district with 20 or fewer pupils of limited English9.14proficiency enrolled; and9.15(2) for supplies and equipment purchased or rented for use9.16in the instruction of pupils of limited English proficiency an9.17amount equal to 47 percent of the sum actually spent by the9.18district but not to exceed an average of $47 in any one school9.19year for each pupil of limited English proficiency receiving9.20instruction.9.21(c)A district's limited English proficiency programs 9.22 revenue for fiscal year20012004 and later equals the product 9.23 of$584$700 times the greater of 20 or thenumber ofadjusted 9.24 marginal cost average daily membership of eligible pupils of 9.25 limited English proficiency enrolled in the district during the 9.26 current fiscal year. 9.27(d) A pupil ceases to generate state limited English9.28proficiency aid in the school year following the school year in9.29which the pupil attains the state cutoff score on a9.30commissioner-provided assessment that measures the pupil's9.31emerging academic English.9.32 Sec. 9. Minnesota Statutes 2002, section 126C.05, 9.33 subdivision 8, is amended to read: 9.34 Subd. 8. [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 9.35 in grades kindergarten through 12 and for prekindergarten pupils 9.36 with disabilities shall mean the number of pupils on the current 10.1 roll of the school, counted from the date of entry until 10.2 withdrawal. The date of withdrawal shall mean the day the pupil 10.3 permanently leaves the school or the date it is officially known 10.4 that the pupil has left or has been legally excused. However, a 10.5 pupil, regardless of age, who has been absent from school for 15 10.6 consecutive school days during the regular school year or for 10.7 five consecutive school days during summer school or 10.8 intersession classes of flexible school year programs without 10.9 receiving instruction in the home or hospital shall be dropped 10.10 from the roll and classified as withdrawn. Nothing in this 10.11 section shall be construed as waiving the compulsory attendance 10.12 provisions cited in section 120A.22. Average daily membership 10.13 equals the sum for all pupils of the number of days of the 10.14 school year each pupil is enrolled in the district's schools 10.15 divided by the number of days the schools are in session. Days 10.16 of summer school or intersession classes of flexible school year 10.17 programs are only included in the computation of membership for 10.18 pupils with a disability not appropriately served primarily in 10.19 the regular classroom. A student must not be counted as more 10.20 than one pupil in average daily membership under this section. 10.21 When the initial total average daily membership exceeds one for 10.22 a pupil enrolled in more than one school district during the 10.23 fiscal year, each district's average daily membership must be 10.24 reduced proportionately. 10.25 Sec. 10. Minnesota Statutes 2002, section 126C.05, 10.26 subdivision 14, is amended to read: 10.27 Subd. 14. [COMPUTING PUPIL UNITS FOR A PRIOR YEAR.] In 10.28 computing pupil units for a prior year, the number of pupil 10.29 units shall be adjusted to reflect any change for the current 10.30 year in relative weightings by grade level or category of 10.31 special assistance, any change in measurement from average daily 10.32 attendance to average daily membership, any change in the limit 10.33 on average daily membership that can be generated by a pupil for 10.34 a fiscal year as provided in subdivisions 8 and 15, and any 10.35 change in school district boundaries, but not for the addition 10.36 for the first time in the current year of a specified category 11.1 of special assistance as provided in subdivision 1, clause (4). 11.2 Sec. 11. Minnesota Statutes 2002, section 126C.05, 11.3 subdivision 15, is amended to read: 11.4 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a)When a pupil is11.5enrolled in a learning year program under section 124D.128, an11.6area learning center under sections 123A.05 and 123A.06, an11.7alternative program approved by the commissioner, or a contract11.8alternative program under section 124D.68, subdivision 3,11.9paragraph (d), or subdivision 3a, for more than 1,020 hours in a11.10school year for a secondary student, more than 935 hours in a11.11school year for an elementary student, or more than 425 hours in11.12a school year for a kindergarten student without a disability,11.13that pupil may be counted as more than one pupil in average11.14daily membership. The amount in excess of one pupil must be11.15determined by the ratio of the number of hours of instruction11.16provided to that pupil in excess of: (i) the greater of 1,02011.17hours or the number of hours required for a full-time secondary11.18pupil in the district to 1,020 for a secondary pupil; (ii) the11.19greater of 935 hours or the number of hours required for a11.20full-time elementary pupil in the district to 935 for an11.21elementary pupil in grades 1 through 6; and (iii) the greater of11.22425 hours or the number of hours required for a full-time11.23kindergarten student without a disability in the district to 42511.24for a kindergarten student without a disability. Hours that11.25occur after the close of the instructional year in June shall be11.26attributable to the following fiscal year. A kindergarten11.27student must not be counted as more than 1.2 pupils in average11.28daily membership under this subdivision.A studentin grades 111.29through 12must not be counted as more than1.5 pupilsone pupil 11.30 in average daily membership under this subdivision. 11.31 (b)(i) To receive general education revenue for a pupil in 11.32 an alternative program that has an independent study component, 11.33 a district must meet the requirements in this paragraph. The 11.34 district must develop, for the pupil, a continual learning plan 11.35 consistent with section 124D.128, subdivision 3. Each school 11.36 district that has a state-approved public alternative program 12.1 must reserve revenue in an amount equal to at least 90 percent 12.2 of the district average general education revenue per pupil unit 12.3 less compensatory revenue per pupil unit times the number of 12.4 pupil units generated by students attending a state-approved 12.5 public alternative program. The amount of reserved revenue 12.6 available under this subdivision may only be spent for program 12.7 costs associated with the state-approved public alternative 12.8 program. Compensatory revenue must be allocated according to 12.9 section 126C.15, subdivision 2. 12.10 (ii) General education revenue for a pupil in an approved 12.11 alternative program without an independent study component must 12.12 be prorated for a pupil participating for less than a full year, 12.13 or its equivalent. The district must develop a continual 12.14 learning plan for the pupil, consistent with section 124D.128, 12.15 subdivision 3. Each school district that has a state-approved 12.16 public alternative program must reserve revenue in an amount 12.17 equal to at least 90 percent of the district average general 12.18 education revenue per pupil unit less compensatory revenue per 12.19 pupil unit times the number of pupil units generated by students 12.20 attending a state-approved public alternative program. The 12.21 amount of reserved revenue available under this subdivision may 12.22 only be spent for program costs associated with the 12.23 state-approved public alternative program. Compensatory revenue 12.24 must be allocated according to section 126C.15, subdivision 2. 12.25 (iii) General education revenue for a pupil in an approved 12.26 alternative program that has an independent study component must 12.27 be paid for each hour of teacher contact time and each hour of 12.28 independent study time completed toward a credit or graduation 12.29 standards necessary for graduation. Average daily membership 12.30 for a pupil shall equal the lesser of one or the number of hours 12.31 of teacher contact time and independent study time divided by 12.32 1,020. 12.33 (iv) For an alternative program having an independent study 12.34 component, the commissioner shall require a description of the 12.35 courses in the program, the kinds of independent study involved, 12.36 the expected learning outcomes of the courses, and the means of 13.1 measuring student performance against the expected outcomes. 13.2 Sec. 12. Minnesota Statutes 2002, section 126C.05, 13.3 subdivision 17, is amended to read: 13.4 Subd. 17. [LEP PUPIL UNITS.] (a) Limited English 13.5 proficiency pupil units for fiscal year19982004 and thereafter 13.6 shall be determined according to this subdivision. 13.7 (b) The limited English proficiency concentration 13.8 percentage for a district equals the product of 100 times the 13.9 ratio of: 13.10 (1) the number of eligible pupils of limited English 13.11 proficiency in average daily membership enrolled in the district 13.12 during the current fiscal year; to 13.13 (2) the number of pupils in average daily membership 13.14 enrolled in the district. 13.15 (c) The limited English proficiency pupil units for 13.16 each eligible pupilenrolled in a program for pupilsof limited 13.17 English proficiencyin accordance with sections 124D.58 to13.18124D.64in average daily membership equals the lesser of one or 13.19 the quotient obtained by dividing the limited English 13.20 proficiency concentration percentage for the pupil's district of 13.21 enrollment by 11.5. 13.22 (d) Limited English proficiency pupil units shall be 13.23 counted by the district of enrollment. 13.24 (e) Notwithstanding paragraph (d), for the purposes of this 13.25 subdivision, pupils enrolled in a cooperative or intermediate 13.26 school district shall be counted by the district of residence. 13.27 (f) For the purposes of this subdivision, the terms defined 13.28 in section 124D.59 have the same meaning. 13.29 Sec. 13. Minnesota Statutes 2002, section 126C.10, 13.30 subdivision 1, is amended to read: 13.31 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a)For fiscal13.32year 2002, the general education revenue for each district13.33equals the sum of the district's basic revenue, basic skills13.34revenue, training and experience revenue, secondary sparsity13.35revenue, elementary sparsity revenue, transportation sparsity13.36revenue, total operating capital revenue, equity revenue,14.1transition revenue, and supplemental revenue.14.2(b)For fiscal year 2003and later, the general education 14.3 revenue for each district equals the sum of the district's basic 14.4 revenue, basic skills revenue, training and experience revenue, 14.5 secondary sparsity revenue, elementary sparsity revenue, 14.6 transportation sparsity revenue, total operating capital 14.7 revenue, and equity revenue. 14.8 (b) For fiscal year 2004 and later, the general education 14.9 revenue for each district equals the sum of the district's basic 14.10 revenue, basic skills revenue, secondary sparsity revenue, 14.11 elementary sparsity revenue, transportation sparsity revenue, 14.12 total operating capital revenue, equity revenue, and transition 14.13 revenue. 14.14 Sec. 14. Minnesota Statutes 2002, section 126C.10, 14.15 subdivision 3, is amended to read: 14.16 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] For fiscal year 14.17 2004 and later, the compensatory education revenue for each 14.18 building in the district equals the formula allowance minus $415 14.19 times the compensation revenue pupil units computed according to 14.20 section 126C.05, subdivision 3. Revenue shall be paid to the 14.21 district and must be allocated according to section 126C.15, 14.22 subdivision 2. 14.23 Sec. 15. Minnesota Statutes 2002, section 126C.10, 14.24 subdivision 4, is amended to read: 14.25 Subd. 4. [BASIC SKILLS REVENUE.](a) For fiscal year 2002,14.26a school district's basic skills revenue equals the sum of:14.27(1) compensatory revenue under subdivision 3; plus14.28(2) limited English proficiency revenue according to14.29section 124D.65, subdivision 5; plus14.30(3) $190 times the limited English proficiency pupil units14.31according to section 126C.05, subdivision 17; plus14.32(4) $22.50 times the number of adjusted marginal cost pupil14.33units in kindergarten to grade 8.14.34(b)For fiscal year20032004 and later, a school 14.35 district's basic skills revenue equals the sum of: 14.36 (1) compensatory revenue under subdivision 3; plus 15.1 (2) limited English proficiency revenue under section 15.2 124D.65, subdivision 5; plus 15.3 (3)$190$250 times the limited English proficiency pupil 15.4 units under section 126C.05, subdivision 17. 15.5 Sec. 16. Minnesota Statutes 2002, section 126C.10, 15.6 subdivision 7, is amended to read: 15.7 Subd. 7. [SECONDARY SPARSITY REVENUE.] (a) A district's 15.8 secondary sparsity revenue for a school year equals the sum of 15.9 the results of the following calculation for each qualifying 15.10 high school in the district: 15.11 (1) the formula allowance for the school year minus $415, 15.12 multiplied by 15.13 (2) the secondary average daily membership of pupils served 15.14 in the high school, multiplied by 15.15 (3) the quotient obtained by dividing 400 minus the 15.16 secondary average daily membership by 400 plus the secondary 15.17 daily membership, multiplied by 15.18 (4) the lesser of 1.5 or the quotient obtained by dividing 15.19 the isolation index minus 23 by ten. 15.20 (b) A newly formed district that is the result of districts 15.21 combining under the cooperation and combination program or 15.22 consolidating under section 123A.48 must receive secondary 15.23 sparsity revenue equal to the greater of: (1) the amount 15.24 calculated under paragraph (a) for the combined district; or (2) 15.25 the sum of the amounts of secondary sparsity revenue the former 15.26 districts had in the year prior to consolidation, increased for 15.27 any subsequent changes in the secondary sparsity formula. 15.28 Sec. 17. Minnesota Statutes 2002, section 126C.10, 15.29 subdivision 8, is amended to read: 15.30 Subd. 8. [ELEMENTARY SPARSITY REVENUE.] A district's 15.31 elementary sparsity revenue equals the sum of the following 15.32 amounts for each qualifying elementary school in the district: 15.33 (1) the formula allowance for the year minus $415, 15.34 multiplied by 15.35 (2) the elementary average daily membership of pupils 15.36 served in the school, multiplied by 16.1 (3) the quotient obtained by dividing 140 minus the 16.2 elementary average daily membership by 140 plus the average 16.3 daily membership. 16.4 Sec. 18. Minnesota Statutes 2002, section 126C.10, 16.5 subdivision 17, is amended to read: 16.6 Subd. 17. [TRANSPORTATION SPARSITY DEFINITIONS.] The 16.7 definitions in this subdivision apply to subdivisions 18 and 19. 16.8 (a) "Sparsity index" for a district means the greater of .2 16.9 or the ratio of the square mile area of the district to the 16.10 resident pupil units of the district. 16.11 (b) "Density index" for a district means the ratio of the 16.12 square mile area of the district to the resident pupil units of 16.13 the district. However, the density index for a district cannot 16.14 be greater than .2 or less than .005. 16.15(c) "Fiscal year 1996 base allowance" for a district means16.16the result of the following computation:16.17(1) sum the following amounts:16.18(i) the fiscal year 1996 regular transportation revenue for16.19the district according to Minnesota Statutes 1996, section16.20124.225, subdivision 7d, paragraph (a), excluding the revenue16.21attributable nonpublic school pupils and to pupils with16.22disabilities receiving special transportation services; plus16.23(ii) the fiscal year 1996 nonregular transportation revenue16.24for the district according to Minnesota Statutes 1996, section16.25124.225, subdivision 7d, paragraph (b), excluding the revenue16.26for desegregation transportation according to Minnesota Statutes16.271996, section 124.225, subdivision 1, paragraph (c), clause (4),16.28and the revenue attributable to nonpublic school pupils and to16.29pupils with disabilities receiving special transportation16.30services or board and lodging; plus16.31(iii) the fiscal year 1996 excess transportation levy for16.32the district according to Minnesota Statutes 1996, section16.33124.226, subdivision 5, excluding the levy attributable to16.34nonpublic school pupils; plus16.35(iv) the fiscal year 1996 late activity bus levy for the16.36district according to Minnesota Statutes 1996, section 124.226,17.1subdivision 9, excluding the levy attributable to nonpublic17.2school pupils; plus17.3(v) an amount equal to one-third of the fiscal year 199617.4bus depreciation for the district according to Minnesota17.5Statutes 1996, section 124.225, subdivision 1, paragraph (b),17.6clauses (2), (3), and (4).17.7(2) divide the result in clause (1) by the district's17.81995-1996 fund balance pupil units.17.9 Sec. 19. Minnesota Statutes 2002, section 126C.10, 17.10 subdivision 18, is amended to read: 17.11 Subd. 18. [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 17.12 A district's transportation sparsity allowance equals the 17.13 greater of zero or the result of the following computation: 17.14 (i) Multiply the formula allowance according to subdivision 17.15 2 minus $415, by .1469. 17.16 (ii) Multiply the result in clause (i) by the district's 17.17 sparsity index raised to the 26/100 power. 17.18 (iii) Multiply the result in clause (ii) by the district's 17.19 density index raised to the 13/100 power. 17.20 (iv) Multiply the formula allowance minus $415 according to 17.21 subdivision 2, by .0485. 17.22 (v) Subtract the result in clause (iv) from the result in 17.23 clause (iii). 17.24 (b) Transportation sparsity revenue is equal to the 17.25 transportation sparsity allowance times the adjusted marginal 17.26 cost pupil units. 17.27 Sec. 20. Minnesota Statutes 2002, section 126C.10, is 17.28 amended by adding a subdivision to read: 17.29 Subd. 29. [EQUITY LEVY.] To obtain equity revenue for 17.30 fiscal year 2005 and later, a district may levy an amount not 17.31 more than the product of its equity revenue for the fiscal year 17.32 times the lesser of one or the ratio of its referendum market 17.33 value per resident marginal cost pupil unit to $476,000. 17.34 Sec. 21. Minnesota Statutes 2002, section 126C.10, is 17.35 amended by adding a subdivision to read: 17.36 Subd. 30. [EQUITY AID.] A district's equity aid equals its 18.1 equity revenue minus its equity levy times the ratio of the 18.2 actual amount levied to the permitted levy. 18.3 Sec. 22. Minnesota Statutes 2002, section 126C.10, is 18.4 amended by adding a subdivision to read: 18.5 Subd. 31. [TRANSITION REVENUE.] (a) A district's 18.6 transition allowance for fiscal years 2004 through 2008 equals 18.7 the greater of zero or the product of the ratio of the number of 18.8 adjusted marginal cost pupil units the district would have 18.9 counted for fiscal year 2004 under Minnesota Statutes 2002 to 18.10 the district's adjusted marginal cost pupil units for fiscal 18.11 year 2004, times the difference between: (i) the lesser of the 18.12 district's general education revenue per adjusted marginal cost 18.13 pupil unit for fiscal year 2003 or the amount of general 18.14 education revenue the district would have received per adjusted 18.15 marginal cost pupil unit for fiscal year 2004 according to 18.16 Minnesota Statutes 2002, and (ii) the district's general 18.17 education revenue for fiscal year 2004 excluding transition 18.18 revenue divided by the number of adjusted marginal cost pupil 18.19 units the district would have counted for fiscal year 2004 under 18.20 Minnesota Statutes 2002. A district's transition allowance for 18.21 fiscal year 2009 and later is zero. 18.22 (b) A district's transition revenue for fiscal year 2004 18.23 and later equals the product of the district's transition 18.24 allowance times the district's adjusted marginal cost pupil 18.25 units. 18.26 Sec. 23. Minnesota Statutes 2002, section 126C.10, is 18.27 amended by adding a subdivision to read: 18.28 Subd. 32. [TRANSITION LEVY.] To obtain transition revenue 18.29 for fiscal year 2005 and later, a district may levy an amount 18.30 not more than the product of its transition revenue for the 18.31 fiscal year times the lesser of one or the ratio of its 18.32 referendum market value per resident marginal cost pupil unit to 18.33 $476,000. 18.34 Sec. 24. Minnesota Statutes 2002, section 126C.10, is 18.35 amended by adding a subdivision to read: 18.36 Subd. 33. [TRANSITION AID.] (a) For fiscal year 2004, a 19.1 district's transition aid equals its transition revenue. 19.2 (b) For fiscal year 2005 and later, a district's transition 19.3 aid equals its transition revenue minus its transition levy 19.4 times the ratio of the actual amount levied to the permitted 19.5 levy. 19.6 Sec. 25. Minnesota Statutes 2002, section 126C.13, 19.7 subdivision 4, is amended to read: 19.8 Subd. 4. [GENERAL EDUCATION AID.] (a) For fiscal year 19.9 2004, a district's general education aid is the sum of the 19.10 following amounts: 19.11 (1) general education revenue; 19.12 (2) shared time aid according to section 126C.01, 19.13 subdivision 7; and 19.14 (3) referendum aid according to section 126C.17. 19.15 (b) For fiscal year 2005 and later, a district's general 19.16 education aid is the sum of the following amounts: 19.17 (1) general education revenue, excluding equity revenue and 19.18 transition revenue; 19.19 (2) equity aid according to section 126C.10, subdivision 19.20 30; 19.21 (3) transition aid according to section 126C.10, 19.22 subdivision 33; 19.23 (4) shared time aid according to section 126C.01, 19.24 subdivision 7; and 19.25 (5) referendum aid according to section 126C.17. 19.26 Sec. 26. Minnesota Statutes 2002, section 126C.17, 19.27 subdivision 1, is amended to read: 19.28 Subdivision 1. [REFERENDUM ALLOWANCE.] (a) For fiscal year 19.29 2002, a district's referendum revenue allowance equals the sum 19.30 of the allowance under section 126C.16, subdivision 2, plus any 19.31 additional allowance per resident marginal cost pupil unit 19.32 authorized under subdivision 9 for fiscal year 2002. 19.33 (b) For fiscal year 2003 and later, a district's initial 19.34 referendum revenue allowance equals the sum of the allowance 19.35 under section 126C.16, subdivision 2, plus any additional 19.36 allowance per resident marginal cost pupil unit authorized under 20.1 subdivision 9 before May 1, 2001, for fiscal year 2002 and 20.2 later, plus the referendum conversion allowance approved under 20.3 subdivision 13, minus $415. For districts with more than one 20.4 referendum authority, the reduction must be computed separately 20.5 for each authority. The reduction must be applied first to the 20.6 referendum conversion allowance and next to the authority with 20.7 the earliest expiration date. A district's initial referendum 20.8 revenue allowance may not be less than zero. 20.9 (c) For fiscal year 2003and later, a district's referendum 20.10 revenue allowance equals the initial referendum allowance plus 20.11 any additional allowance per resident marginal cost pupil unit 20.12 authorized under subdivision 9afterbetween April 30, 2001, and 20.13 December 30, 2001, for fiscal year 2003 and later. 20.14 (d) For fiscal year 2004 and later, a district's referendum 20.15 revenue allowance equals the sum of (1) the product of (i) the 20.16 ratio of the resident marginal cost pupil units the district 20.17 would have counted for fiscal year 2004 under Minnesota Statutes 20.18 2002, section 126C.05, to the district's resident marginal cost 20.19 pupil units for fiscal year 2004 times (ii) the initial 20.20 referendum allowance plus any additional allowance per resident 20.21 marginal cost pupil unit authorized under subdivision 9 between 20.22 April 30, 2001, and May 30, 2003, for fiscal year 2003 and 20.23 later, plus (2) any additional allowance per resident marginal 20.24 cost pupil unit authorized under subdivision 9 after May 30, 20.25 2003, for fiscal year 2005 and later. 20.26 Sec. 27. Minnesota Statutes 2002, section 126C.17, 20.27 subdivision 2, is amended to read: 20.28 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a)Notwithstanding20.29subdivision 1, for fiscal year 2002, a district's referendum20.30allowance must not exceed the greater of:20.31(1) the district's referendum allowance for fiscal year20.321994;20.33(2) 25 percent of the formula allowance; or20.34(3) for a newly reorganized district created after July 1,20.351994, the sum of the referendum revenue authority for the20.36reorganizing districts for the fiscal year preceding the21.1reorganization, divided by the sum of the resident marginal cost21.2pupil units of the reorganizing districts for the fiscal year21.3preceding the reorganization.21.4(b)Notwithstanding subdivision 1, for fiscal year 2003and21.5later fiscal years, a district's referendum allowance must not 21.6 exceed the greater of: 21.7 (1) the sum of a district's referendum allowance for fiscal 21.8 year 1994 times 1.162 plus its referendum conversion allowance 21.9 for fiscal year 2003, minus $415; 21.10 (2) 18.2 percent of the formula allowance; 21.11 (3) for a newly reorganized district created on July 1, 21.12 2002, the referendum revenue authority for each reorganizing 21.13 district in the year preceding reorganization divided by its 21.14 resident marginal cost pupil units for the year preceding 21.15 reorganization, minus $415; or 21.16 (4) for a newly reorganized district created after July 1, 21.17 2002, the referendum revenue authority for each reorganizing 21.18 district in the year preceding reorganization divided by its 21.19 resident marginal cost pupil units for the year preceding 21.20 reorganization. 21.21 (b) Notwithstanding subdivision 1, for fiscal year 2004 and 21.22 later fiscal years, a district's referendum allowance must not 21.23 exceed the greater of: 21.24 (1) the sum of a district's referendum allowance for fiscal 21.25 year 1994 times 1.177 plus its referendum conversion allowance 21.26 for fiscal year 2003, minus $415; 21.27 (2) 18.6 percent of the formula allowance; 21.28 (3) for a newly reorganized district created on July 1, 21.29 2002, the referendum revenue authority for each reorganizing 21.30 district in the year preceding reorganization divided by its 21.31 resident marginal cost pupil units for the year preceding 21.32 reorganization, minus $415; or 21.33 (4) for a newly reorganized district created after July 1, 21.34 2002, the referendum revenue authority for each reorganizing 21.35 district in the year preceding reorganization divided by its 21.36 resident marginal cost pupil units for the year preceding 22.1 reorganization. 22.2 Sec. 28. Minnesota Statutes 2002, section 126C.17, 22.3 subdivision 5, is amended to read: 22.4 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) For fiscal 22.5 year 2003 and later, a district's referendum equalization 22.6 revenue equals the sum of the first tier referendum equalization 22.7 revenue and the second tier referendum equalization revenue. 22.8 (b) A district's first tier referendum equalization revenue 22.9 equals the district's first tier referendum equalization 22.10 allowance times the district's resident marginal cost pupil 22.11 units for that year. 22.12 (c) For fiscal years 2003 and 2004, a district's first tier 22.13 referendum equalization allowance equals the lesser of the 22.14 district's referendum allowance under subdivision 1 or 22.15 $126. For fiscal year 2005, a district's first tier referendum 22.16 equalization allowance equals the lesser of the district's 22.17 referendum allowance under subdivision 1 or $405. For fiscal 22.18 year 2006 and later, a district's first tier referendum 22.19 equalization allowance equals the lesser of the district's 22.20 referendum allowance under subdivision 1 or $500. 22.21 (d) A district's second tier referendum equalization 22.22 revenue equals the district's second tier referendum 22.23 equalization allowance times the district's resident marginal 22.24 cost pupil units for that year. 22.25 (e) A district's second tier referendum equalization 22.26 allowance equals the lesser of the district's referendum 22.27 allowance under subdivision 1 or18.218.6 percent of the 22.28 formula allowance, minus the district's first tier referendum 22.29 equalization allowance. 22.30 (f) Notwithstanding paragraph (e), the second tier 22.31 referendum allowance for a district qualifying for secondary 22.32 sparsity revenue under section 126C.10, subdivision 7, or 22.33 elementary sparsity revenue under section 126C.10, subdivision 22.34 8, equals the district's referendum allowance under subdivision 22.35 1 minus the district's first tier referendum equalization 22.36 allowance. 23.1 Sec. 29. Minnesota Statutes 2002, section 126C.17, 23.2 subdivision 7, is amended to read: 23.3 Subd. 7. [REFERENDUM EQUALIZATION AID.] (a) A district's 23.4 referendum equalization aid equals the difference between its 23.5 referendum equalization revenue and levy. 23.6 (b) If a district's actual levy for first or second tier 23.7 referendum equalization revenue is less than its maximum levy 23.8 limit for that tier, aid shall be proportionately reduced. 23.9 (c) Notwithstanding paragraph (a), the referendum 23.10 equalization aid for a district, where the referendum 23.11 equalization aid under paragraph (a) exceeds 90 percent of the 23.12 referendum revenue, must not exceed18.218.6 percent of the 23.13 formula allowance times the district's resident marginal cost 23.14 pupil units. A district's referendum levy is increased by the 23.15 amount of any reduction in referendum aid under this paragraph. 23.16 Sec. 30. Minnesota Statutes 2002, section 126C.17, 23.17 subdivision 13, is amended to read: 23.18 Subd. 13. [REFERENDUM CONVERSION ALLOWANCE.] (a) A school 23.19 district that received supplemental or transition revenue in 23.20 fiscal year 2002 may convert its supplemental revenue conversion 23.21 allowance and transition revenue conversion allowance to 23.22 additional referendum allowance under subdivision 1 for fiscal 23.23 year 2003 and thereafter. A majority of the school board must 23.24 approve the conversion at a public meeting before November 1, 23.25 2001. For a district with other referendum authority, the 23.26 referendum conversion allowance approved by the board continues 23.27 until the portion of the district's other referendum authority 23.28 with the earliest expiration date after June 30, 2006, expires. 23.29 For a district with no other referendum authority, the 23.30 referendum conversion allowance approved by the board continues 23.31 until June 30, 2012. 23.32 (b) A school district that received transition revenue in 23.33 fiscal year 2004 may convert all or part of its transition 23.34 revenue to referendum revenue with voter approval in a 23.35 referendum called for the purpose. The referendum must be held 23.36 in accordance with subdivision 9, except that the ballot may 24.1 state that existing transition revenue authority is being 24.2 canceled or is expiring. In this case, the ballot shall compare 24.3 the proposed referendum allowance to the canceled or expiring 24.4 transition revenue allowance. For purposes of this comparison, 24.5 the canceled or expiring transition revenue allowance per 24.6 adjusted marginal cost pupil unit shall be converted to an 24.7 allowance per resident marginal cost pupil unit based on the 24.8 district's ratio of adjusted marginal cost pupil units to 24.9 resident marginal cost pupil units for the preceding fiscal 24.10 year. The referendum must be held on the first Tuesday after 24.11 the first Monday in November. The notice required under section 24.12 275.60 may be modified to read: "BY VOTING 'YES' ON THIS BALLOT 24.13 QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE." 24.14 Elections under this paragraph must be held in 2007 or earlier. 24.15 The referendum allowance limit for a district under subdivision 24.16 2 shall be increased by the amount of the allowance converted 24.17 from transition revenue under this paragraph. 24.18 Sec. 31. [127A.441] [AID REDUCTION; LEVY REVENUE 24.19 RECOGNITION CHANGE.] 24.20 Each year, the state aids payable to any school district 24.21 for that fiscal year that are recognized as revenue in the 24.22 school district's general and community service funds shall be 24.23 adjusted by an amount equal to (1) the amount the district 24.24 recognized as revenue for the prior fiscal year pursuant to 24.25 section 123B.75, subdivision 5, paragraph (b) or (c), minus (2) 24.26 the amount the district recognized as revenue for the current 24.27 fiscal year pursuant to section 123B.75, subdivision 5, 24.28 paragraph (c). For purposes of making the aid adjustments under 24.29 this section, the amount the district recognizes as revenue for 24.30 either the prior fiscal year or the current fiscal year pursuant 24.31 to section 123B.75, subdivision 5, paragraph (b) or (c), shall 24.32 not include any amount levied pursuant to section 124D.86, 24.33 subdivision 4, for school districts receiving revenue under 24.34 sections 124D.86, subdivision 3, clauses (1) and (2); 126C.41, 24.35 subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, 24.36 subdivision 2; and 126C.48, subdivision 6. Payment from the 25.1 permanent school fund shall not be adjusted pursuant to this 25.2 section. The school district shall be notified of the amount of 25.3 the adjustment made to each payment pursuant to this section. 25.4 Sec. 32. Minnesota Statutes 2002, section 127A.45, 25.5 subdivision 2, is amended to read: 25.6 Subd. 2. [DEFINITIONS.] (a) The term "other district 25.7 receipts" means payments by county treasurers pursuant to 25.8 section 276.10, apportionments from the school endowment fund 25.9 pursuant to section 127A.33, apportionments by the county 25.10 auditor pursuant to section 127A.34, subdivision 2, and payments 25.11 to school districts by the commissioner of revenue pursuant to 25.12 chapter 298. 25.13 (b) The term "cumulative amount guaranteed" means the 25.14 product of 25.15 (1) the cumulative disbursement percentage shown in 25.16 subdivision 3; times 25.17 (2) the sum of 25.18 (i)8380 percent of the estimated aid and credit 25.19 entitlements paid according to subdivision 13; plus 25.20 (ii) 100 percent of the entitlements paid according to 25.21 subdivisions 11 and 12; plus 25.22 (iii) the other district receipts. 25.23 (c) The term "payment date" means the date on which state 25.24 payments to districts are made by the electronic funds transfer 25.25 method. If a payment date falls on a Saturday, a Sunday, or a 25.26 weekday which is a legal holiday, the payment shall be made on 25.27 the immediately preceding business day. The commissioner may 25.28 make payments on dates other than those listed in subdivision 3, 25.29 but only for portions of payments from any preceding payment 25.30 dates which could not be processed by the electronic funds 25.31 transfer method due to documented extenuating circumstances. 25.32 Sec. 33. Minnesota Statutes 2002, section 127A.45, 25.33 subdivision 3, is amended to read: 25.34 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] (a)For fiscal25.35year 2003, the commissioner shall pay to a district on the dates25.36indicated an amount computed as follows: the cumulative amount26.1guaranteed minus the sum of (a) the district's other district26.2receipts through the current payment, and (b) the aid and credit26.3payments through the immediately preceding payment. For26.4purposes of this computation, the payment dates and the26.5cumulative disbursement percentages are as follows:26.6Payment datePercentage26.7Payment 1July 15:5.126.8Payment 2July 30:7.726.9Payment 3August 15:16.926.10Payment 4August 30:19.326.11Payment 5September 15:21.826.12Payment 6September 30:24.326.13Payment 7October 15:26.326.14Payment 8October 30:28.326.15Payment 9November 15:32.826.16Payment 10November 30:39.126.17Payment 11December 15:42.426.18Payment 12December 30:45.626.19Payment 13January 15:50.526.20Payment 14January 30:55.026.21Payment 15February 15:60.226.22Payment 16February 28:65.026.23Payment 17March 15:69.726.24Payment 18March 30:74.326.25Payment 19April 15:78.326.26Payment 20April 30:84.226.27Payment 21May 15:88.726.28Payment 22May 30:93.326.29Payment 23June 20:100.026.30(b) In addition to the amounts paid under paragraph (a),26.31for fiscal year 2003, the commissioner shall pay to a district26.32on the dates indicated an amount computed as follows:26.33Payment 3August 15: the final adjustment for the26.34prior fiscal year for the state paid26.35property tax credits established in26.36section 273.139227.1Payment 7October 15: one-half of the final adjustment27.2for the prior fiscal year for all aid27.3entitlements except state paid property27.4tax credits27.5Payment 8October 30: one-half of the final adjustment27.6for the prior fiscal year for all aid27.7entitlements except state paid property27.8tax credits27.9(c)For fiscal year 2004 and later, the commissioner shall 27.10 pay to a district on the dates indicated an amount computed as 27.11 follows: the cumulative amount guaranteed minus the sum of (a) 27.12 the district's other district receipts through the current 27.13 payment, and (b) the aid and credit payments through the 27.14 immediately preceding payment. For purposes of this 27.15 computation, the payment dates and the cumulative disbursement 27.16 percentages are as follows: 27.17 Payment date Percentage 27.18 Payment 1 July 15:5.15.5 27.19 Payment 2 July 30:7.78.0 27.20 Payment 3 August 15:16.917.5 27.21 Payment 4 August 30:19.320.0 27.22 Payment 5 September 15:21.822.5 27.23 Payment 6 September 30:24.325.0 27.24 Payment 7 October 15:26.327.0 27.25 Payment 8 October 30:28.330.0 27.26 Payment 9 November 15:30.332.5 27.27 Payment 10 November 30:35.036.5 27.28 Payment 11 December 15:40.042.0 27.29 Payment 12 December 30:43.045.0 27.30 Payment 13 January 15:48.050.0 27.31 Payment 14 January 30:52.054.0 27.32 Payment 15 February 15:56.058.0 27.33 Payment 16 February 28:61.063.0 27.34 Payment 17 March 15:66.068.0 27.35 Payment 18 March 30:72.074.0 27.36 Payment 19 April 15:76.078.0 28.1 Payment 20 April 30:83.085.0 28.2 Payment 21 May 15:88.090.0 28.3 Payment 22 May 30: 95.0 28.4 Payment 23 June 20: 100.0 28.5(d)(b) In addition to the amounts paid under paragraph 28.6(c)(a), for fiscal year 2004and later, the commissioner shall 28.7 pay to a district on the dates indicated an amount computed as 28.8 follows: 28.9 Payment 3 August 15: the final adjustment for the 28.10 prior fiscal year for the state paid 28.11 property tax credits established in 28.12 section 273.1392 28.13 Payment 4 August 30: one-third of the final adjustment 28.14 for the prior fiscal year for all aid 28.15 entitlements except state paid property 28.16 tax credits 28.17 Payment 6 September 30: one-third of the final adjustment 28.18 for the prior fiscal year for all aid 28.19 entitlements except state paid property 28.20 tax credits 28.21 Payment 8 October 30: one-third of the final adjustment 28.22 for the prior fiscal year for all aid 28.23 entitlements except state paid property 28.24 tax credits 28.25 (c) In addition to the amounts paid under paragraph (a), 28.26 for fiscal year 2005 and later, the commissioner shall pay to a 28.27 district on the dates indicated an amount computed as follows: 28.28 Payment 3 August 15: the final adjustment for the 28.29 prior fiscal year for the state paid 28.30 property tax credits established in 28.31 section 273.1392 28.32 Payment 4 August 30: 30 percent of the final adjustment 28.33 for the prior fiscal year for all aid 28.34 entitlements except state paid property 28.35 tax credits 28.36 Payment 6 September 30: 40 percent of the final adjustment 29.1 for the prior fiscal year for all aid 29.2 entitlements except state paid property 29.3 tax credits 29.4 Payment 8 October 30: 30 percent of the final adjustment 29.5 for the prior fiscal year for all aid 29.6 entitlements except state paid property 29.7 tax credits 29.8 Sec. 34. Minnesota Statutes 2002, section 127A.45, 29.9 subdivision 10, is amended to read: 29.10 Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 29.11 fiscal year state general fund payments for a district 29.12 nonoperating fund must be made at8380 percent of the estimated 29.13 entitlement during the fiscal year of the entitlement. This 29.14 amount shall be paid in 12 equal monthly installments. The 29.15 amount of the actual entitlement, after adjustment for actual 29.16 data, minus the payments made during the fiscal year of the 29.17 entitlement must be paid prior to October 31 of the following 29.18 school year. The commissioner may make advance payments of debt 29.19 service equalization aid or homestead and agricultural credit 29.20 aid for a district's debt service fund earlier than would occur 29.21 under the preceding schedule if the district submits evidence 29.22 showing a serious cash flow problem in the fund. The 29.23 commissioner may make earlier payments during the year and, if 29.24 necessary, increase the percent of the entitlement paid to 29.25 reduce the cash flow problem. 29.26 Sec. 35. Minnesota Statutes 2002, section 127A.45, 29.27 subdivision 13, is amended to read: 29.28 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 29.29 subdivisions 11, 12, 12a, and 14, each fiscal year, all 29.30 education aids and credits in this chapter and chapters 120A, 29.31 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 29.32 section 273.1392, shall be paid at8380 percent of the 29.33 estimated entitlement during the fiscal year of the 29.34 entitlement. For the purposes of this subdivision, a district's 29.35 estimated entitlement for special education excess cost aid 29.36 under section 125A.79 equals 70 percent of the district's 30.1 entitlement for the second prior fiscal year. The final 30.2 adjustment payment, according to subdivision 9, must be the 30.3 amount of the actual entitlement, after adjustment for actual 30.4 data, minus the payments made during the fiscal year of the 30.5 entitlement. 30.6 Sec. 36. Minnesota Statutes 2002, section 127A.45, 30.7 subdivision 14, is amended to read: 30.8 Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid 30.9 according to sections 123B.40 to 123B.48 for pupils attending 30.10 nonpublic schools as follows: 30.11 (1) an advance payment by November 30 equal to8380 30.12 percent of the estimated entitlement for the current fiscal 30.13 year; and 30.14 (2) a final payment by October 31 of the following fiscal 30.15 year, adjusted for actual data. 30.16 If a payment advance to meet cash flow needs is requested 30.17 by a district and approved by the commissioner, the state shall 30.18 pay nonpublic pupil transportation aid according to section 30.19 123B.92 by October 31. 30.20 Sec. 37. Minnesota Statutes 2002, section 127A.45, 30.21 subdivision 16, is amended to read: 30.22 Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 30.23 subdivision 3,8380 percent of the amounts under section 30.24 123A.26, subdivision 3, shall be paid in equal installments on 30.25 August 30, December 30, and March 30, with a1720 percent final 30.26 adjustment payment on October 30 of the next fiscal year. 30.27 Sec. 38. [APPROPRIATIONS.] 30.28 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 30.29 indicated in this section are appropriated from the general fund 30.30 to the department of education for the fiscal years designated. 30.31 Subd. 2. [GENERAL EDUCATION AID.] For general education 30.32 aid under Minnesota Statutes, section 126C.13, subdivision 4: 30.33 $ 4,990,899,000 ..... 2004 30.34 $ 5,093,091,000 ..... 2005 30.35 The 2004 appropriation includes $857,432,000 for 2003 and 30.36 $4,133,467,000 for 2004. 31.1 The 2005 appropriation includes $853,045,000 for 2004 and 31.2 $4,240,046,000 for 2005. 31.3 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 31.4 referendum tax base replacement aid under Minnesota Statutes, 31.5 section 126C.17, subdivision 7a: 31.6 $ 8,082,000 ..... 2004 31.7 $ 7,966,000 ..... 2005 31.8 The 2004 appropriation includes $1,419,000 for 2003 and 31.9 $6,663,000 for 2004. 31.10 The 2005 appropriation includes $1,364,000 for 2004 and 31.11 $6,602,000 for 2005. 31.12 Sec. 39. [REPEALER.] 31.13 Minnesota Statutes 2002, sections 126C.01, subdivision 9; 31.14 and 126C.10, subdivision 5, are repealed effective for revenue 31.15 in fiscal year 2004 and later. 31.16 ARTICLE 2 31.17 OTHER GENERAL PROGRAMS 31.18 Section 1. Minnesota Statutes 2002, section 126C.43, 31.19 subdivision 2, is amended to read: 31.20 Subd. 2. [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 31.21 FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 31.22 levy 90 percent of theamountsamount exceeding $10 times the 31.23 district's adjusted marginal cost pupil units for the fiscal 31.24 year ending in the year before the year the levy is certified 31.25 necessary (i) to pay the district's obligations under section 31.26 268.052, subdivision 1, andthe amounts necessary(ii) to pay 31.27 for job placement services offered to employees who may become 31.28 eligible for benefits pursuant to section 268.085 for the fiscal 31.29 year the levy is certified. 31.30 [EFFECTIVE DATE.] This section is effective for taxes 31.31 payable in 2004. 31.32 Sec. 2. Minnesota Statutes 2002, section 126C.43, 31.33 subdivision 3, is amended to read: 31.34 Subd. 3. [TAX LEVY FOR JUDGMENT.] A district may levy 90 31.35 percent of theamountsamount exceeding $10 times the district's 31.36 adjusted marginal cost pupil units for the fiscal year ending in 32.1 the year before the year the levy is certified necessary to pay 32.2 judgments against the district under section 123B.25 that became 32.3 final after the date the district certified its proposed levy in 32.4 the previous year. With the approval of the commissioner, a 32.5 district may spread this levy over a period not to exceed three 32.6 years. Upon approval through the adoption of a resolution by 32.7 each of an intermediate district's member school district 32.8 boards, a member school district may include its proportionate 32.9 share of the costs of a judgment against an intermediate school 32.10 district that became final under section 123B.25 after the date 32.11 that the earliest member school district certified its proposed 32.12 levy in the previous year. With the approval of the 32.13 commissioner, an intermediate school district member school 32.14 district may spread this levy over a period not to exceed three 32.15 years. 32.16 [EFFECTIVE DATE.] This section is effective for taxes 32.17 payable in 2004. 32.18 Sec. 3. Minnesota Statutes 2002, section 126C.45, is 32.19 amended to read: 32.20 126C.45 [ICE ARENA LEVY.] 32.21 (a) Each year, an independent school district operating and 32.22 maintaining an ice arena, may levy for the net operational costs 32.23 of the ice arena. The levy may not exceed 90 percent of the net 32.24 actual costs of operation of the arena for the previous year. 32.25 Net actual costs are defined as operating costs less any 32.26 operating revenues. 32.27 (b) Any district operating and maintaining an ice arena 32.28 must demonstrate to the satisfaction of the office of monitoring 32.29 in the department that the district will offer equal sports 32.30 opportunities for male and female students to use its ice arena, 32.31 particularly in areas of access to prime practice time, team 32.32 support, and providing junior varsity and younger level teams 32.33 for girls' ice sports and ice sports offerings. 32.34 [EFFECTIVE DATE.] This section is effective for taxes 32.35 payable in 2004. 32.36 Sec. 4. Minnesota Statutes 2002, section 268.052, 33.1 subdivision 2, is amended to read: 33.2 Subd. 2. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 33.3 A TAXPAYING EMPLOYER.] (a) The state or political 33.4 subdivision excluding a school district may elect to be a 33.5 taxpaying employer for any calendar year if a notice of election 33.6 is filed within 30 calendar days following January 1 of that 33.7 calendar year. Upon election, the state or political 33.8 subdivision shall be assigned the new employer tax rate under 33.9 section 268.051, subdivision 5, for the calendar year of the 33.10 election and until it qualifies for an experience rating under 33.11 section 268.051, subdivision 3. 33.12 (b) An election shall be for a minimum period of two 33.13 calendar years following the effective date of the election and 33.14 continue unless a notice terminating the election is filed not 33.15 later than 30 calendar days before the beginning of the calendar 33.16 year. The termination shall be effective at the beginning of 33.17 the next calendar year. Upon election, the commissioner shall 33.18 establish a reimbursable account for the state or political 33.19 subdivision. A termination of election shall be allowed only if 33.20 the state or political subdivision has, since the beginning of 33.21 the experience rating period under section 268.051, subdivision 33.22 3, paid taxes and made voluntary payments under section 268.051, 33.23 subdivision 7, equal to or more than 125 percent of the 33.24 unemployment benefits used in computing the experience rating. 33.25 In addition, any unemployment benefits paid after the experience 33.26 rating period shall be transferred to the new reimbursable 33.27 account of the state or political subdivision. If the amount of 33.28 taxes and voluntary payments paid since the beginning of the 33.29 experience rating period exceeds 125 percent of the amount of 33.30 unemployment benefits paid during the experience rating period, 33.31 that amount in excess shall be applied against any unemployment 33.32 benefits paid after the experience rating period. 33.33 (c) The method of payments to the fund under subdivisions 3 33.34 and 4 shall apply to all taxes paid by or due from the state or 33.35 political subdivision that elects to be taxpaying employers 33.36 under this subdivision. 34.1 (d) The commissioner may allow a notice of election or a 34.2 notice terminating election to be filed by mail or electronic 34.3 transmission. 34.4 [EFFECTIVE DATE.] This section is effective the day 34.5 following final enactment. 34.6 Sec. 5. Minnesota Statutes 2002, section 268.052, 34.7 subdivision 4, is amended to read: 34.8 Subd. 4. [METHOD OF PAYMENT BY POLITICAL SUBDIVISION.] A 34.9 political subdivision or instrumentality thereof is authorized 34.10 and directed to pay its liabilities by money collected from 34.11 taxes or other revenues. Every political subdivision authorized 34.12 to levy taxes except school districts may include in its tax 34.13 levy the amount necessary to pay its liabilities. School 34.14 districts may levy according to section 126C.43, subdivision 2. 34.15 If the taxes authorized to be levied cause the total amount of 34.16 taxes levied to exceed any limitation upon the power of a 34.17 political subdivision to levy taxes, the political subdivision 34.18 may levy taxes in excess of the limitations in the amounts 34.19 necessary to meet its liability. The expenditures authorized 34.20 shall not be included in computing the cost of government as 34.21 defined in any home rule charter. The governing body of a 34.22 municipality, for the purpose of meeting its liabilities, in the 34.23 event of a deficit, may issue its obligations payable in not 34.24 more than two years, in an amount that may cause its 34.25 indebtedness to exceed any statutory or charter limitations, 34.26 without an election, and may levy taxes in the manner provided 34.27 in section 475.61. 34.28 [EFFECTIVE DATE.] This section is effective for taxes 34.29 payable in 2004. 34.30 Sec. 6. [APPROPRIATIONS.] 34.31 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 34.32 indicated in this section are appropriated from the general fund 34.33 to the department of education for the fiscal years designated. 34.34 Subd. 2. [ENROLLMENT OPTIONS TRANSPORTATION.] For 34.35 transportation of pupils attending postsecondary institutions 34.36 under Minnesota Statutes, section 124D.09, or for transportation 35.1 of pupils attending nonresident districts under Minnesota 35.2 Statutes, section 124D.03: 35.3 $50,000 ..... 2004 35.4 $55,000 ..... 2005 35.5 Subd. 3. [ABATEMENT REVENUE.] For abatement aid under 35.6 Minnesota Statutes, section 127A.49: 35.7 $2,762,000 ..... 2004 35.8 $2,945,000 ..... 2005 35.9 The 2004 appropriation includes $472,000 for 2003 and 35.10 $2,290,000 for 2004. 35.11 The 2005 appropriation includes $469,000 for 2004 and 35.12 $2,476,000 for 2005. 35.13 Subd. 4. [CONSOLIDATION TRANSITION.] For districts 35.14 consolidating under Minnesota Statutes, section 123A.485: 35.15 $213,000 ..... 2004 35.16 $620,000 ..... 2005 35.17 The 2004 appropriation includes $35,000 for 2003 and 35.18 $178,000 for 2004. 35.19 The 2005 appropriation includes $35,000 for 2004 and 35.20 $585,000 for 2005. 35.21 Subd. 5. [TORNADO IMPACT; YELLOW MEDICINE EAST.] For a 35.22 grant to independent school district No. 2190, Yellow Medicine 35.23 East, for tornado impact declining enrollment aid: 35.24 $78,000 ..... 2004 35.25 $39,000 ..... 2005 35.26 Subd. 6. [DECLINING PUPIL AID; ALBERT LEA.] For declining 35.27 pupil aid to independent school district No. 241, Albert Lea: 35.28 $225,000 ..... 2004 35.29 $150,000 ..... 2005 35.30 Subd. 7. [DECLINING PUPIL AID; MESABI EAST.] For declining 35.31 pupil aid to independent school district No. 2711, Mesabi East: 35.32 $150,000 ..... 2004 35.33 $100,000 ..... 2005 35.34 Subd. 8. [DECLINING PUPIL AID; ROSEAU.] For declining 35.35 pupil aid to independent school district No. 682, Roseau: 35.36 $30,000 ..... 2004 36.1 $20,000 ..... 2005 36.2 Sec. 7. [REPEALER.] 36.3 (a) Minnesota Statutes 2002, sections 122A.62; 126C.445; 36.4 and 126C.455, are repealed effective for taxes payable in 2004. 36.5 (b) Laws 2000, chapter 489, article 2, section 36, as 36.6 amended by Laws 2001, First Special Session chapter 6, article 36.7 1, section 44, is repealed effective for revenue for fiscal year 36.8 2004. 36.9 ARTICLE 3 36.10 NONPUBLIC PUPIL PROGRAMS 36.11 Section 1. Minnesota Statutes 2002, section 123B.92, 36.12 subdivision 9, is amended to read: 36.13 Subd. 9. [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 36.14 district's nonpublic pupil transportation aid for the 1996-1997 36.15 and later school years for transportation services for nonpublic 36.16 school pupils according to sections 123B.88, 123B.84 to 123B.86, 36.17 and this section, equals the sum of the amounts computed in 36.18 paragraphs (b) and (c). This aid does not limit the obligation 36.19 to transport pupils under sections 123B.84 to 123B.87. 36.20 (b) For regular and excess transportation according to 36.21 subdivision 1, paragraph (b), clauses (1) and (2), an amount 36.22 equal to the product of: 36.23 (1) the district's actual expenditure per pupil transported 36.24 in the regular and excess transportation categories during the 36.25 second preceding school year; times 36.26 (2) the number of nonpublic school pupils residing in the 36.27 district who receive regular or excess transportation service or 36.28 reimbursement for the current school year; times 36.29 (3) the ratio of the formula allowance pursuant to section 36.30 126C.10, subdivision 2, for the current school year to the 36.31 formula allowance pursuant to section 126C.10, subdivision 2, 36.32 for the second preceding school year. 36.33 (c) For nonpublic nonregular transportation according to 36.34 subdivision 1, paragraph (b), clause (5), an amount equal to the 36.35 product of: 36.36 (1) the district's actual expenditure for nonpublic 37.1 nonregular transportation during the second preceding school 37.2 year; times 37.3 (2) the ratio of the formula allowance pursuant to section 37.4 126C.10, subdivision 2, for the current school year to the 37.5 formula allowance pursuant to section 126C.10, subdivision 2, 37.6 for the second preceding school year. 37.7 (d) Notwithstanding the amount of the formula allowance for 37.8 fiscalyears 2000, 2001, and 2002year 2004 in section 126C.10, 37.9 subdivision 2, the commissioner shall use the amount of the 37.10 formula allowance for the current yearplus $87minus $415 in 37.11 determining the nonpublic pupil transportation revenue in 37.12 paragraphs (b) and (c) for fiscal year2000, and the amount of37.13the formula allowance less $110 in determining the nonpublic37.14pupil transportation revenue in paragraphs (b) and (c) for37.15fiscal years 2001 and 20022004. 37.16 [EFFECTIVE DATE.] This section is effective for revenue for 37.17 fiscal year 2004. 37.18 Sec. 2. [NONPUBLIC PUPIL MATERIALS AND TESTS.] 37.19 Notwithstanding section 123B.42, subdivision 3, paragraph 37.20 (b), the inflation adjustment for nonpublic pupil textbooks, 37.21 individualized instructional or cooperative learning materials, 37.22 and standardized tests for fiscal year 2004 must be computed 37.23 using the fiscal year 2004 formula allowance minus $415. 37.24 Sec. 3. [APPROPRIATIONS.] 37.25 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 37.26 indicated in this section are appropriated from the general fund 37.27 to the department of education for the fiscal years designated. 37.28 Subd. 2. [NONPUBLIC PUPIL AID.] For nonpublic pupil 37.29 education aid under Minnesota Statutes, sections 123B.87 and 37.30 123B.40 to 123B.43: 37.31 $15,073,000 ..... 2004 37.32 $15,620,000 ..... 2005 37.33 The 2004 appropriation includes $2,715,000 for 2003 and 37.34 $12,358,000 for 2004. 37.35 The 2005 appropriation includes $2,530,000 for 2004 and 37.36 $13,090,000 for 2005. 38.1 Subd. 3. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 38.2 pupil transportation aid under Minnesota Statutes, section 38.3 123B.92, subdivision 9: 38.4 $22,132,000 ..... 2004 38.5 $21,987,000 ..... 2005 38.6 The 2004 appropriation includes $3,990,000 for 2003 and 38.7 $18,142,000 for 2004. 38.8 The 2005 appropriation includes $3,715,000 for 2004 and 38.9 $18,272,000 for 2005. 38.10 ARTICLE 4 38.11 CHARTER SCHOOLS 38.12 Section 1. Minnesota Statutes 2002, section 124D.11, 38.13 subdivision 1, is amended to read: 38.14 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 38.15 education revenue must be paid to a charter school as though it 38.16 were a district. The general education revenue for each 38.17 adjusted marginal cost pupil unit is the state average general 38.18 education revenue per pupil unit, plus the referendum 38.19 equalization aid allowance in the pupil's district of residence, 38.20 minus an amount equal to the product of the formula allowance 38.21 according to section 126C.10, subdivision 2, times .0485, 38.22 calculated without basic skills revenue, transportation sparsity 38.23 revenue, and the transportation portion of the transition 38.24 revenue adjustment, plus basic skills revenue and transition 38.25 revenue as though the school were a school district. 38.26 (b) Notwithstanding paragraph (a), for charter schools in 38.27 the first year of operation, general education revenue shall be 38.28 computed using the number of adjusted pupil units in the current 38.29 fiscal year. 38.30 (c) Notwithstanding paragraph (a), transition revenue for a 38.31 charter school must be computed using the lesser of the charter 38.32 school's adjusted marginal cost pupil units for fiscal year 2004 38.33 or the current fiscal year. 38.34 [EFFECTIVE DATE.] This section is effective for revenue for 38.35 fiscal year 2004. 38.36 Sec. 2. Minnesota Statutes 2002, section 124D.11, 39.1 subdivision 4, is amended to read: 39.2 Subd. 4. [BUILDING LEASE AID.] When a charter school finds 39.3 it economically advantageous to rent or lease a building or land 39.4 for any instructional purposes and it determines that the total 39.5 operating capital revenue under section 126C.10, subdivision 13, 39.6 is insufficient for this purpose, it may apply to the 39.7 commissioner for building lease aid for this purpose. The 39.8 commissioner must review and either approve or deny a lease aid 39.9 application using the following criteria: 39.10 (1) the reasonableness of the price based on current market 39.11 values; 39.12 (2) the extent to which the lease conforms to applicable 39.13 state laws and rules; and 39.14 (3) the appropriateness of the proposed lease in the 39.15 context of the space needs and financial circumstances of the 39.16 charter school. 39.17 A charter school must not use the building lease aid it receives 39.18 for custodial, maintenance service, utility, or other operating 39.19 costs. The amount of building lease aid per pupil unit served 39.20 for a charter school for any year shall not exceed the lesser of 39.21 (a) 90 percent of the approved cost or (b) the product of the 39.22 pupil units served for the current school year times$1,500the 39.23 greater of the charter school's building lease aid per pupil 39.24 unit served for fiscal year 2003 or $1,200. 39.25 [EFFECTIVE DATE.] This section is effective for revenue for 39.26 fiscal year 2004. 39.27 Sec. 3. Minnesota Statutes 2002, section 124D.11, 39.28 subdivision 6, is amended to read: 39.29 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 39.30 school is eligible to receive other aids, grants, and revenue 39.31 according to chapters 120A to 129C, as though it were a district. 39.32 (b) Notwithstanding paragraph (a), a charter school may not 39.33 receive aid, a grant, or revenue if a levy is required to obtain 39.34 the money, except as otherwise provided in this section. 39.35 (c) Federal aid received by the state must be paid to the 39.36 school, if it qualifies for the aid as though it were a school 40.1 district. 40.2 (d) A charter school may receive money from any source for 40.3 capital facilities needs. In the year-end report to the 40.4 commissioner ofchildren, families, and learningeducation, the 40.5 charter school shall report the total amount of funds received 40.6 from grants and other outside sources. 40.7(e) Notwithstanding paragraph (a) or (b), a charter school40.8may apply for a grant to receive the aid portion of integration40.9revenue under section 124D.86, subdivision 3, for enrolled40.10students who are residents of a district that is eligible for40.11integration revenue. The commissioner shall determine grant40.12recipients and may adopt application guidelines. The grants40.13must be competitively determined and must demonstrate that40.14enrolling pupils in the charter school contributes to40.15desegregation or integration purposes as determined by the40.16commissioner. If the charter school has elected not to provide40.17transportation under section 124D.10, subdivision 16, the aid40.18shall be reduced by the amount per pupil unit specified for the40.19district where the charter school is located under section40.20123B.92, subdivision 8.40.21 [EFFECTIVE DATE.] This section is effective for revenue for 40.22 fiscal year 2004. 40.23 Sec. 4. Minnesota Statutes 2002, section 124D.11, 40.24 subdivision 9, is amended to read: 40.25 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 40.26 Notwithstanding section 127A.45, subdivision 3, aid payments for 40.27 the current fiscal year to a charter school not in its first 40.28 year of operation shall be of an equal amount on each of the 23 40.29 payment dates. A charter school in its first year of operation 40.30 shall receive, on its first payment date, ten percent of its 40.31 cumulative amount guaranteed for the year and 22 payments of an 40.32 equal amount thereafter the sum of which shall be 90 percent of 40.33 the cumulative amount guaranteed. 40.34 (b) Notwithstanding paragraph (a), for a charter school 40.35 ceasing operation prior to the end of a school year,8380 40.36 percent of the amount due for the school year may be paid to the 41.1 school after audit of prior fiscal year and current fiscal year 41.2 pupil counts. 41.3 (c) Notwithstanding section 127A.45, subdivision 3, and 41.4 paragraph (a),8380 percent of the start-up cost aid under 41.5 subdivision 8 shall be paid within 45 days after the first day 41.6 of student attendance for that school year. 41.7 (d) In order to receive state aid payments under this 41.8 subdivision, a charter school in its first three years of 41.9 operation must submit a quarterly report to the department of 41.10 children, families, and learning. The report must list each 41.11 student by grade, show the student's start and end dates, if 41.12 any, with the charter school, and for any student participating 41.13 in a learning year program, the report must list the hours and 41.14 times of learning year activities. The report must be submitted 41.15 not more than two weeks after the end of the calendar quarter to 41.16 the department. The department must develop a Web-based 41.17 reporting form for charter schools to use when submitting 41.18 enrollment reports. A charter school in its fourth and 41.19 subsequent year of operation must submit enrollment information 41.20 to the department in the form and manner requested by the 41.21 department. 41.22 [EFFECTIVE DATE.] This section is effective for revenue for 41.23 fiscal year 2004. 41.24 Sec. 5. [APPROPRIATIONS.] 41.25 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 41.26 indicated in this section are appropriated from the general fund 41.27 to the department of education for the fiscal years designated. 41.28 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 41.29 lease aid under Minnesota Statutes, section 124D.11, subdivision 41.30 4: 41.31 $17,689,000 ..... 2004 41.32 $21,120,000 ..... 2005 41.33 The 2004 appropriation includes $2,524,000 for 2003 and 41.34 $15,165,000 for 2004. 41.35 The 2005 appropriation includes $3,105,000 for 2004 and 41.36 $18,015,000 for 2005. 42.1 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 42.2 startup cost aid under Minnesota Statutes, section 124D.11: 42.3 $1,705,000 ..... 2004 42.4 $2,281,000 ..... 2005 42.5 The 2004 appropriation includes $220,000 for 2003 and 42.6 $1,485,000 for 2004. 42.7 The 2005 appropriation includes $303,000 for 2004 and 42.8 $1,978,000 for 2005. 42.9 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 42.10 to charter schools to promote integration and desegregation 42.11 under Minnesota Statutes, section 124D.11, subdivision 6, 42.12 paragraph (e): 42.13 $8,000 ..... 2004 42.14 This appropriation includes $8,000 for 2003 and $0 for 2004. 42.15 ARTICLE 5 42.16 DESEGREGATION PROGRAMS 42.17 Section 1. Minnesota Statutes 2002, section 124D.86, 42.18 subdivision 3, is amended to read: 42.19 Subd. 3. [INTEGRATION REVENUE.] Integration revenue equals 42.20 the following amounts: 42.21 (1) for independent school district No. 709, 42.22 Duluth,$207$210 times the adjusted pupil units for the school 42.23 year; 42.24 (2) for independent school district No. 625, St. 42.25 Paul,$446$468 times the adjusted pupil units for the school 42.26 year; 42.27 (3) for special school district No. 1, Minneapolis, the sum 42.28 of$446$488 times the adjusted pupil units for the school year 42.29 and an additional$35$38 times the adjusted pupil units for the 42.30 school year that is provided entirely through a local levy; 42.31 (4) for a district not listed in clause (1), (2), or (3), 42.32 that must implement a plan under Minnesota Rules, parts 42.33 3535.0100 to 3535.0180, where the district's enrollment of 42.34 protected students, as defined under Minnesota Rules, part 42.35 3535.0110, exceeds 15 percent, the lesser of (i) the actual cost 42.36 of implementing the plan during the fiscal year minus the aid 43.1 received under subdivision 6, or (ii)$130$132 times the 43.2 adjusted pupil units for the school year; 43.3 (5) for a district not listed in clause (1), (2), (3), or 43.4 (4), that is required to implement a plan according to the 43.5 requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 43.6 the lesser of 43.7 (i) the actual cost of implementing the plan during the 43.8 fiscal year minus the aid received under subdivision 6, or 43.9 (ii)$93$94 times the adjusted pupil units for the school 43.10 year. 43.11 Any money received by districts in clauses (1) to(4)(3) 43.12 which exceeds the amount received in fiscal year 2000 shall be 43.13 subject to the budget requirements in subdivision 1a; and 43.14 (6) for a member district of a multidistrict integration 43.15 collaborative that files a plan with the commissioner, but is 43.16 not contiguous to a racially isolated district, integration 43.17 revenue equals the amount defined in clause (5). 43.18 [EFFECTIVE DATE.] This section is effective for revenue for 43.19 fiscal year 2004. 43.20 Sec. 2. Minnesota Statutes 2002, section 124D.86, 43.21 subdivision 4, is amended to read: 43.22 Subd. 4. [INTEGRATION LEVY.] A district may levy an amount 43.23 equal to 37 percent for fiscal year 2003, 22 percent for fiscal 43.24 year 2004, and 29 percent for fiscal year 2005, and 22 percent43.25for fiscal year 2006and thereafter of the district's 43.26 integration revenue as defined in subdivision 3. 43.27 [EFFECTIVE DATE.] This section is effective July 1, 2003. 43.28 Sec. 3. Minnesota Statutes 2002, section 124D.86, 43.29 subdivision 5, is amended to read: 43.30 Subd. 5. [INTEGRATION AID.] A district's integration aid 43.31 equals 63 percent for fiscal year 2003, 78 percent for fiscal 43.32 year 2004, and 71 percent for fiscal year 2005, and 78 percent43.33for fiscal year 2006and thereafter of the district's 43.34 integration revenue as defined in subdivision 3. 43.35 [EFFECTIVE DATE.] This section is effective July 1, 2003. 43.36 Sec. 4. [APPROPRIATIONS.] 44.1 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 44.2 indicated in this section are appropriated from the general fund 44.3 to the department of education for the fiscal years designated. 44.4 Subd. 2. [INTEGRATION AID.] For integration aid under 44.5 Minnesota Statutes, section 124D.86, subdivision 5: 44.6 $61,576,000 ..... 2004 44.7 $58,963,000 ..... 2005 44.8 The 2004 appropriation includes $8,428,000 for 2003 and 44.9 $53,148,000 for 2004. 44.10 The 2005 appropriation includes $10,885,000 for 2004 and 44.11 $48,078,000 for 2005. 44.12 Subd. 3. [MAGNET SCHOOL GRANTS.] For magnet school and 44.13 program grants: 44.14 $750,000 ..... 2004 44.15 $750,000 ..... 2005 44.16 These amounts may be used for magnet school programs under 44.17 Minnesota Statutes, section 124D.88. 44.18 Subd. 4. [MAGNET SCHOOL STARTUP AID.] For magnet school 44.19 startup aid under Minnesota Statutes, section 124D.88: 44.20 $ 37,000 ..... 2004 44.21 $471,000 ..... 2005 44.22 The 2004 appropriation includes $37,000 for 2003 and $0 for 44.23 2004. 44.24 The 2005 appropriation includes $0 for 2004 and $471,000 44.25 for 2005. 44.26 Subd. 5. [INTERDISTRICT DESEGREGATION OR INTEGRATION 44.27 TRANSPORTATION GRANTS.] For interdistrict desegregation or 44.28 integration transportation grants under Minnesota Statutes, 44.29 section 124D.87: 44.30 $5,796,000 ..... 2004 44.31 $8,401,000 ..... 2005 44.32 Sec. 5. [REPEALER.] 44.33 (a) Minnesota Statutes 2002, sections 122A.64; 122A.65; and 44.34 124D.89, are repealed. 44.35 (b) Laws 1993, chapter 224, article 8, section 20, 44.36 subdivision 2, as amended by Laws 1994, chapter 647, article 8, 45.1 section 29, is repealed. 45.2 ARTICLE 6 45.3 AMERICAN INDIAN PROGRAMS 45.4 Section 1. [APPROPRIATIONS.] 45.5 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 45.6 indicated in this section are appropriated from the general fund 45.7 to the department of education for the fiscal years designated. 45.8 Subd. 2. [SUCCESS FOR THE FUTURE.] For American Indian 45.9 success for the future grants under Minnesota Statutes, section 45.10 124D.81: 45.11 $2,137,000 ..... 2004 45.12 $2,137,000 ..... 2005 45.13 The 2004 appropriation includes $363,000 for 2003 and 45.14 $1,774,000 for 2004. 45.15 The 2005 appropriation includes $363,000 for 2004 and 45.16 $1,774,000 for 2005. 45.17 Subd. 3. [AMERICAN INDIAN SCHOLARSHIPS.] For American 45.18 Indian scholarships under Minnesota Statutes, section 124D.84: 45.19 $1,875,000 ..... 2004 45.20 $1,875,000 ..... 2005 45.21 Subd. 4. [AMERICAN INDIAN TEACHER PREPARATION GRANTS.] For 45.22 joint grants to assist American Indian people to become teachers 45.23 under Minnesota Statutes, section 122A.63: 45.24 $190,000 ..... 2004 45.25 $190,000 ..... 2005 45.26 Subd. 5. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 45.27 school aid under Minnesota Statutes, section 124D.83: 45.28 $2,204,000 ..... 2004 45.29 $2,337,000 ..... 2005 45.30 The 2004 appropriation includes $285,000 for 2003 and 45.31 $1,919,000 for 2004. 45.32 The 2005 appropriation includes $393,000 for 2004 and 45.33 $1,944,000 for 2005. 45.34 Subd. 6. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 45.35 early childhood family education programs at tribal contract 45.36 schools under Minnesota Statutes, section 124D.83, subdivision 4: 46.1 $68,000 ..... 2004 46.2 $68,000 ..... 2005 46.3 ARTICLE 7 46.4 ACCOUNTABILITY AND REFORM 46.5 Section 1. Laws 2001, First Special Session chapter 6, 46.6 article 2, section 64, is amended to read: 46.7 Sec. 64. [SCHOOLS' ACADEMIC AND FINANCIAL PERFORMANCE 46.8 EVALUATION; INDEPENDENT CONTRACTOR.] 46.9 (a) To assist taxpayers, educators, school board members, 46.10 and state and local officials in realizing their commitment to 46.11 improving student achievement and the management of school 46.12 systems, the commissioner of children, families, and learning 46.13 shall contract with an independent school evaluation services 46.14 contractor to evaluate and report on the academic and financial 46.15 performance of the state's independent school districts using, 46.16 but not limited to, six core categories of analysis: 46.17 (1) school district expenditures; 46.18 (2) students' performance outcomesbased on multiple46.19indiciaincluding students' test scores, attendance rates,46.20dropout rates,and graduation rates; 46.21 (3) return on resources to determine the extent to which 46.22 student outcomes improve commensurate with increases in district 46.23 spending; 46.24 (4) school district finances, taxes, and debt to establish 46.25 the context for analyzing the district's return on resources 46.26 under clause (3); 46.27 (5) students' learning environment to establish the context 46.28 for analyzing the district's return on resources under clause 46.29 (3); and 46.30 (6) school district demographics to establish the 46.31 socioeconomic context for analyzing the district's return on 46.32 resources under clause (3). 46.33 (b) In order to compare the regional and socioeconomic 46.34 peers of particular school districts, monitor educational 46.35 changes over time and identify important educational trends, the 46.36 contractor shall use the six core categories of analysis to: 47.1 (1) identify allocations of baseline and incremental school 47.2 district spending; 47.3 (2) connect student achievement with expenditure patterns; 47.4 (3) track school district financial health; 47.5 (4) observe school district debt and capital spending 47.6 levels; and 47.7 (5) measure the return on a school district's educational 47.8 resources. 47.9 (c) The contractor under paragraph (a) shall evaluate and 47.10 report on the academic and financial performance of all school 47.11 districts. 47.12 (d)Consistent with paragraph (a), clause (2), the47.13evaluation and reporting of test scores must distinguish between:47.14(1) performance-based assessments; and47.15(2) academic, objective knowledge-based tests.47.16(e)The contractormustshall complete its written report 47.17 and submit it to the commissioner within 360 days of the date on 47.18 which the contract is signed. The commissioner immediately must 47.19 make the report available in a readily accessible format to 47.20 state and local elected officials, members of the public, 47.21 educators, parents, and other interested individuals. The 47.22 commissioner, upon receiving an individual's request, alsomust47.23 shall make available all draft reports prepared by the 47.24 contractor, consistent with Minnesota Statutes, chapter 13. 47.25 Sec. 2. [APPROPRIATIONS.] 47.26 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 47.27 indicated in this section are appropriated from the general fund 47.28 to the department of education for the fiscal years designated. 47.29 Subd. 2. [STATEWIDE TESTING SUPPORT.] For supporting 47.30 implementation of the graduation standards: 47.31 $6,500,000 ..... 2004 47.32 $6,500,000 ..... 2005 47.33 Subd. 3. [SEVENTH GRADE TESTING.] For seventh grade 47.34 testing under Minnesota Statutes, section 120B.30: 47.35 $2,500,000 ..... 2004 47.36 $2,500,000 ..... 2005 48.1 Subd. 4. [BEST PRACTICES SEMINARS.] For best practices 48.2 graduation rule seminars and other professional development 48.3 capacity building activities that assure proficiency in teaching 48.4 and implementation of graduation rule standards: 48.5 $2,180,000 ..... 2004 48.6 $2,180,000 ..... 2005 48.7 Subd. 5. [SCHOOL PERFORMANCE EVALUATION.] For evaluating 48.8 school performance under Laws 2001, First Special Session 48.9 chapter 6, article 2, section 64: 48.10 $2,000,000 ..... 2004 48.11 This appropriation is available until June 30, 2005. This 48.12 is a onetime appropriation. 48.13 Subd. 6. [ALTERNATIVE TEACHER COMPENSATION.] For 48.14 alternative teacher compensation established under Minnesota 48.15 Statutes, sections 122A.413 to 122A.415: 48.16 $3,700,000 ..... 2004 48.17 $3,700,000 ..... 2005 48.18 If the appropriations under this subdivision are 48.19 insufficient to fund all program participants, a participant may 48.20 receive less than the maximum per pupil amount available under 48.21 Minnesota Statutes, section 122A.415, subdivision 1. 48.22 ARTICLE 8 48.23 PROGRAMS FOR SPECIAL POPULATIONS 48.24 Section 1. [APPROPRIATIONS.] 48.25 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 48.26 indicated in this section are appropriated from the general fund 48.27 to the department of education for the fiscal years designated. 48.28 Subd. 2. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 48.29 PROGRAMS.] (a) For students' advanced placement and 48.30 international baccalaureate examination fees under Minnesota 48.31 Statutes 2000, section 120B.13, subdivision 3, and the training 48.32 and related costs for teachers and other interested educators 48.33 under Minnesota Statutes 2000, section 120B.13, subdivision 1: 48.34 $ 450,000 ..... 2002 48.35 $ 450,000 ..... 2003 48.36 (b) $110,000 each year is for examination fees for pupils 49.1 of low-income families in public and nonpublic schools. The 49.2 commissioner shall pay all examination fees for all students of 49.3 low-income families under Minnesota Statutes, section 120B.13, 49.4 subdivision 3. If this amount is insufficient, a portion of the 49.5 funds under paragraph (c) must be used for this purpose. 49.6 (c) Notwithstanding Minnesota Statutes, section 120B.13, 49.7 subdivision 1, $340,000 each year is for teachers to attend 49.8 subject matter summer training programs and follow-up support 49.9 workshops approved by the advanced placement or international 49.10 baccalaureate programs. The advanced placement program shall 49.11 receive 75 percent of this amount each year, and the 49.12 international baccalaureate program shall receive 25 percent of 49.13 this amount each year. The amount of the subsidy for each 49.14 teacher attending an advanced placement or international 49.15 baccalaureate summer training program or workshop shall be the 49.16 same. The commissioner shall determine the payment process and 49.17 the amount of the subsidy. 49.18 Subd. 3. [FIRST GRADE PREPAREDNESS.] For first grade 49.19 preparedness grants under Minnesota Statutes, section 124D.081: 49.20 $7,250,000 ..... 2004 49.21 $7,250,000 ..... 2005 49.22 Subd. 4. [YOUTHWORKS PROGRAM.] For funding youthworks 49.23 programs under Minnesota Statutes, sections 124D.37 to 124D.45: 49.24 $1,788,000 ..... 2004 49.25 $1,788,000 ..... 2005 49.26 A grantee organization may provide health and child care 49.27 coverage to the dependents of each participant enrolled in a 49.28 full-time youth works program to the extent such coverage is not 49.29 otherwise available. 49.30 Subd. 5. [STUDENT ORGANIZATIONS.] For student 49.31 organizations: 49.32 $625,000 ..... 2004 49.33 $625,000 ..... 2005 49.34 Sec. 2. [REPEALER.] 49.35 Laws 2001, First Special Session chapter 6, article 2, 49.36 section 70, is repealed. 50.1 ARTICLE 9 50.2 SPECIAL PROGRAMS 50.3 Section 1. Minnesota Statutes 2002, section 125A.76, 50.4 subdivision 1, is amended to read: 50.5 Subdivision 1. [DEFINITIONS.] For the purposes of this 50.6 section, the definitions in this subdivision apply. 50.7 (a) "Base year" for fiscal year 1998 and later fiscal years 50.8 means the second fiscal year preceding the fiscal year for which 50.9 aid will be paid. 50.10 (b) "Basic revenue" has the meaning given it in section 50.11 126C.10, subdivision 2. For the purposes of computing basic 50.12 revenue pursuant to this section, each child with a disability 50.13 shall be counted as prescribed in section 126C.05, subdivision 1. 50.14 (c) "Essential personnel" means teachers, cultural 50.15 liaisons, related services, and support services staff providing 50.16 direct services to students. Essential personnel may also 50.17 include special education paraprofessionals or clericals 50.18 providing support to teachers and students by preparing 50.19 paperwork and making arrangements related to special education 50.20 compliance requirements, including parent meetings and 50.21 individual education plans. 50.22 (d) "Average daily membership" has the meaning given it in 50.23 section 126C.05. 50.24 (e) "Program growth factor" means1.08 for fiscal year50.252002, and1.046 for fiscal year 2003, and 1.0 for fiscal year 50.26 2004 and later. 50.27 Sec. 2. Minnesota Statutes 2002, section 125A.76, 50.28 subdivision 4, is amended to read: 50.29 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.] The state 50.30 total special education aid for fiscal year20002004 equals 50.31$463,000,000$530,642,000. The state total special education 50.32 aid for fiscal year20012005 equals$474,000,000$529,164,000. 50.33 The state total special education aid for later fiscal years 50.34 equals: 50.35 (1) the state total special education aid for the preceding 50.36 fiscal year; times 51.1 (2) the program growth factor; times 51.2 (3) the ratio of the state total average daily membership 51.3 for the current fiscal year to the state total average daily 51.4 membership for the preceding fiscal year. 51.5 Sec. 3. Minnesota Statutes 2002, section 125A.79, 51.6 subdivision 1, is amended to read: 51.7 Subdivision 1. [DEFINITIONS.] For the purposes of this 51.8 section, the definitions in this subdivision apply. 51.9 (a) "Unreimbursed special education cost" means the sum of 51.10 the following: 51.11 (1) expenditures for teachers' salaries, contracted 51.12 services, supplies, equipment, and transportation services 51.13 eligible for revenue under section 125A.76; plus 51.14 (2) expenditures for tuition bills received under sections 51.15 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 51.16 under section 125A.76, subdivision 2; minus 51.17 (3) revenue for teachers' salaries, contracted services, 51.18 supplies, and equipment under section 125A.76; minus 51.19 (4) tuition receipts under sections 125A.03 to 125A.24 and 51.20 125A.65 for services eligible for revenue under section 125A.76, 51.21 subdivision 2. 51.22 (b) "General revenue" means for fiscal year 1996, the sum 51.23 of the general education revenue according to section 126C.10, 51.24 subdivision 1, as adjusted according to section 127A.47, 51.25 subdivision 7, plus the total referendum revenue according to 51.26 section 126C.17, subdivision 4. For fiscal years 1997 and 51.27 later, "general revenue" means the sum of the general education 51.28 revenue according to section 126C.10, subdivision 1, as adjusted 51.29 according to section 127A.47, subdivisions 7 and 8, plus the 51.30 total referendum revenue minus transportation sparsity revenue 51.31 minus total operating capital revenue. 51.32 (c) "Average daily membership" has the meaning given it in 51.33 section 126C.05. 51.34 (d) "Program growth factor" means1.044 for fiscal year51.352002 and1.02 for fiscal year 2003, and 1.0 for fiscal year 2004 51.36 and later. 52.1 Sec. 4. Minnesota Statutes 2002, section 125A.79, 52.2 subdivision 6, is amended to read: 52.3 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 52.4 The state total special education excess cost aid for fiscal 52.5 year 2004 equals $92,067,000. The state total special education 52.6 aid for fiscal year 2005 equals $91,811,000. The state total 52.7 special education excess cost aid for fiscal year20022006 and 52.8 later fiscal years equals: 52.9 (1) the state total special education excess cost aid for 52.10 the preceding fiscal year; times 52.11 (2) the program growth factor; times 52.12 (3) the ratio of the state total average daily membership 52.13 for the current fiscal year to the state total average daily 52.14 membership for the preceding fiscal year. 52.15 Sec. 5. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION AID.] 52.16 (a) For fiscal year 2004, a district shall receive special 52.17 education cross-subsidy reduction aid equal to $5,000,000 times 52.18 the ratio of the district's special education excess cost aid 52.19 for the previous fiscal year according to section 125A.79, 52.20 subdivision 7, to the state total special education excess cost 52.21 aid for the previous fiscal year according to section 125A.79, 52.22 subdivision 6. 52.23 (b) For fiscal year 2005, a district shall receive special 52.24 education cross-subsidy reduction aid equal to $15,000,000 times 52.25 the ratio of the district's special education excess cost aid 52.26 for the previous fiscal year according to section 125A.79, 52.27 subdivision 7, to the state total special education excess cost 52.28 aid for the previous fiscal year according to section 125A.79, 52.29 subdivision 6. 52.30 (c) Special education cross-subsidy reduction aid must be 52.31 used to pay for a district's unfunded special education costs 52.32 that would otherwise be cross-subsidized by a district's general 52.33 education revenue. 52.34 Sec. 6. [APPROPRIATIONS.] 52.35 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 52.36 indicated in this section are appropriated from the general fund 53.1 to the department of education for the fiscal years designated. 53.2 Subd. 2. [SPECIAL EDUCATION; REGULAR.] For special 53.3 education aid under Minnesota Statutes, section 125A.75: 53.4 $531,011,000 ..... 2004 53.5 $529,415,000 ..... 2005 53.6 The 2004 appropriation includes $90,577,000 for 2003 and 53.7 $440,434,000 for 2004. 53.8 The 2005 appropriation includes $90,208,000 for 2004 and 53.9 $439,207,000 for 2005. 53.10 Subd. 3. [AID FOR CHILDREN WITH DISABILITIES.] For aid 53.11 under Minnesota Statutes, section 125A.75, subdivision 3, for 53.12 children with disabilities placed in residential facilities 53.13 within the district boundaries for whom no district of residence 53.14 can be determined: 53.15 $2,177,000 ..... 2004 53.16 $2,244,000 ..... 2005 53.17 If the appropriation for either year is insufficient, the 53.18 appropriation for the other year is available. 53.19 Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 53.20 teacher travel for home-based services under Minnesota Statutes, 53.21 section 125A.75, subdivision 1: 53.22 $227,000 ..... 2004 53.23 $262,000 ..... 2005 53.24 The 2004 appropriation includes $34,000 for 2003 and 53.25 $193,000 for 2004. 53.26 The 2005 appropriation includes $39,000 for 2004 and 53.27 $223,000 for 2005. 53.28 Subd. 5. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 53.29 cost aid under Minnesota Statutes, section 125A.79, subdivision 53.30 7: 53.31 $94,512,000 ..... 2004 53.32 $93,019,000 ..... 2005 53.33 The 2004 appropriation includes $41,754,000 for 2003 and 53.34 $52,758,000 for 2004. 53.35 The 2005 appropriation includes $39,309,000 for 2004 and 53.36 $53,710,000 for 2005. 54.1 Subd. 6. [SPECIAL EDUCATION CROSS-SUBSIDY REDUCTION 54.2 AID.] For special education cross-subsidy reduction aid under 54.3 section 5: 54.4 $ 5,000,000 ..... 2004 54.5 $15,000,000 ..... 2005 54.6 This is a onetime appropriation. 54.7 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 54.8 paying the costs a district incurs under Minnesota Statutes, 54.9 section 125A.75, subdivision 8: 54.10 $346,000 ..... 2004 54.11 $356,000 ..... 2005 54.12 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 54.13 transition programs for children with disabilities under 54.14 Minnesota Statutes, section 124D.454: 54.15 $8,892,000 ..... 2004 54.16 $8,866,000 ..... 2005 54.17 The 2004 appropriation includes $1,516,000 for 2003 and 54.18 $7,376,000 for 2004. 54.19 The 2005 appropriation includes $1,510,000 for 2004 and 54.20 $7,356,000 for 2005. 54.21 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 54.22 reimbursing serving school districts for unreimbursed eligible 54.23 expenditures attributable to children placed in the serving 54.24 school district by court action under Minnesota Statutes, 54.25 section 125A.79, subdivision 4: 54.26 $152,000 ..... 2004 54.27 $160,000 ..... 2005 54.28 Subd. 10. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 54.29 special education out-of-state tuition according to Minnesota 54.30 Statutes, section 125A.79, subdivision 8: 54.31 $250,000 ..... 2004 54.32 $250,000 ..... 2005 54.33 Sec. 7. [REPEALER.] 54.34 Minnesota Statutes 2002, section 125A.79, subdivision 2, is 54.35 repealed. 54.36 ARTICLE 10 55.1 FACILITIES AND TECHNOLOGY 55.2 Section 1. Minnesota Statutes 2002, section 123B.53, 55.3 subdivision 4, is amended to read: 55.4 Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 55.5 service equalization revenue of a district equals the sum of the 55.6 first tier debt service equalization revenue and the second tier 55.7 debt service equalization revenue. 55.8 (b) The first tier debt service equalization revenue of a 55.9 district equals the greater of zero or the eligible debt service 55.10 revenue minus the amount raised by a levy of 15 percent times 55.11 the adjusted net tax capacity of the district minus the second 55.12 tier debt service equalization revenue of the district. 55.13 (c) The second tier debt service equalization revenue of a 55.14 district equals the greater of zero or the eligible debt service 55.15 revenue, excluding alternative facilities levies under section 55.16 123B.59, subdivision 5, minus the amount raised by a levy of 25 55.17 percent times the adjusted net tax capacity of the district. 55.18 [EFFECTIVE DATE.] This section is effective for revenue for 55.19 fiscal year 2005. 55.20 Sec. 2. Minnesota Statutes 2002, section 123B.57, 55.21 subdivision 1, is amended to read: 55.22 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] (a) To receive 55.23 health and safety revenue for any fiscal year a district must 55.24 submit to the commissioner an application for aid and levy by 55.25 the date determined by the commissioner. The application may be 55.26 for hazardous substance removal, fire and life safety code 55.27 repairs, labor and industry regulated facility and equipment 55.28 violations, and health, safety, and environmental management, 55.29 including indoor air quality management. The application must 55.30 include a health and safety program adopted by the school 55.31 district board. The program must include the estimated cost, 55.32 per building, of the program by fiscal year. Upon approval 55.33 through the adoption of a resolution by each of an intermediate 55.34 district's member school district boards and the approval of the 55.35 department of children, families, and learning, a school 55.36 district may include its proportionate share of the costs of 56.1 health and safety projects for an intermediate district in its 56.2 application. 56.3 (b) Health and safety projects with an estimated cost of 56.4 $500,000 or more per site, approved after February 1, 2003, are 56.5 not eligible for health and safety revenue. Health and safety 56.6 projects with an estimated cost of $500,000 or more per site, 56.7 approved after February 1, 2003, that meet all other 56.8 requirements for health and safety funding, are eligible for 56.9 alternative facilities bonding and levy revenue according to 56.10 section 123B.59. A school board shall not separate portions of 56.11 a single project into components to qualify for health and 56.12 safety revenue, and shall not combine unrelated projects into a 56.13 single project to qualify for alternative facilities bonding and 56.14 levy revenue. 56.15 [EFFECTIVE DATE.] This section is effective the day 56.16 following final enactment and applies to projects approved after 56.17 February 1, 2003, for taxes payable in 2004 and later. 56.18 Sec. 3. Minnesota Statutes 2002, section 123B.57, 56.19 subdivision 6, is amended to read: 56.20 Subd. 6. [USES OF HEALTH AND SAFETY REVENUE.] (a) Health 56.21 and safety revenue may be used only for approved expenditures 56.22 necessary to correct fire and life safety hazards,life safety56.23hazards,or for the removal or encapsulation of asbestos from 56.24 school buildings or property owned or being acquired by the 56.25 district, asbestos-related repairs, cleanup and disposal of 56.26 polychlorinated biphenyls found in school buildings or property 56.27 owned or being acquired by the district, or the cleanup, 56.28 removal, disposal, and repairs related to storing heating fuel 56.29 or transportation fuels such as alcohol, gasoline, fuel oil, and 56.30 special fuel, as defined in section 296A.01,labor and56.31industryMinnesota occupational safety and health administration 56.32 regulated facility and equipment hazards, indoor air quality 56.33 mold abatement, upgrades or replacement of mechanical 56.34 ventilation systems to meet American Society of Heating, 56.35 Refrigerating and Air Conditioning Engineers standards and state 56.36 mechanical code, department of health food code and swimming 57.1 pool hazards excluding depth correction, and health, safety, and 57.2 environmental management. Health and safety revenue must not be 57.3 used to finance a lease purchase agreement, installment purchase 57.4 agreement, or other deferred payments agreement. Health and 57.5 safety revenue must not be used for the construction of new 57.6 facilities or the purchase of portable classrooms, for interest 57.7 or other financing expenses, or for energy efficiency projects 57.8 under section 123B.65. The revenue may not be used for a 57.9 building or property or part of a building or property used for 57.10 post-secondary instruction or administration or for a purpose 57.11 unrelated to elementary and secondary education. 57.12 (b) Notwithstanding paragraph (a), health and safety 57.13 revenue must not be used for replacement of building materials 57.14 or facilities including roof, walls, windows, internal fixtures 57.15 and flooring, nonhealth and safety costs associated with 57.16 demolition of facilities, structural repair or replacement of 57.17 facilities due to unsafe conditions, violence prevention and 57.18 facility security, ergonomics, building and heating, ventilating 57.19 and air conditioning supplies, maintenance, cleaning, testing, 57.20 and calibration activities. All assessments, investigations, 57.21 inventories, and support equipment not leading to the 57.22 engineering or construction of a project shall be included in 57.23 the health, safety, and environmental management costs in 57.24 subdivision 8, paragraph (a). 57.25 [EFFECTIVE DATE.] This section is effective the day 57.26 following final enactment and applies to projects approved after 57.27 February 1, 2003, for taxes payable in 2004 and later. 57.28 Sec. 4. Minnesota Statutes 2002, section 123B.59, 57.29 subdivision 1, is amended to read: 57.30 Subdivision 1. [TO QUALIFY.] (a) An independent or special 57.31 school district qualifies to participate in the alternative 57.32 facilities bonding and levy program if the district has: 57.33 (1) more than 66 students per grade; 57.34 (2) over 1,850,000 square feet of space and the average age 57.35 of building space is 15 years or older or over 1,500,000 square 57.36 feet and the average age of building space is 35 years or older; 58.1 (3) insufficient funds from projected health and safety 58.2 revenue and capital facilities revenue to meet the requirements 58.3 for deferred maintenance, to make accessibility improvements, or 58.4 to make fire, safety, or health repairs; and 58.5 (4) a ten-year facility plan approved by the commissioner 58.6 according to subdivision 2. 58.7 (b) An independent or special school district not eligible 58.8 to participate in the alternative facilities bonding and levy 58.9 program under paragraph (a) qualifies for limited participation 58.10 in the program if the district has: 58.11 (1) one or more health and safety projects with an 58.12 estimated cost of $500,000 or more per site that would qualify 58.13 for health and safety revenue except for the project size 58.14 limitation in section 123B.57, subdivision 1, paragraph (b); and 58.15 (2) insufficient funds from capital facilities revenue to 58.16 fund those projects. 58.17 [EFFECTIVE DATE.] This section is effective for revenue for 58.18 fiscal year 2005. 58.19 Sec. 5. Minnesota Statutes 2002, section 123B.59, 58.20 subdivision 2, is amended to read: 58.21 Subd. 2. [TEN-YEAR PLANFACILITY.] (a) A district 58.22 qualifyingdistrictunder subdivision 1, paragraph (a), must 58.23 have a ten-year facility plan approved by the commissioner that 58.24 includes an inventory of projects and costs that would be 58.25 eligible for: 58.26 (1) health and safety revenue, without restriction as to 58.27 project size; 58.28 (2) disabled access levy; and 58.29 (3) deferred capital expenditures and maintenance projects 58.30 necessary to prevent further erosion of facilities. 58.31 (b) A district qualifying under subdivision 1, paragraph 58.32 (b), must have a five-year plan approved by the commissioner 58.33 that includes an inventory of projects and costs for health and 58.34 safety projects with an estimated cost of $500,000 or more per 58.35 site that would qualify for health and safety revenue except for 58.36 the project size limitation in section 123B.57, subdivision 1, 59.1 paragraph (b). 59.2 (c) The school district must: 59.3 (1) annually update theplanplans; 59.4 (2) biennially submit a facility maintenance plan; and 59.5 (3) indicate whether the district will issue bonds to 59.6 finance the plan or levy for the costs. 59.7 [EFFECTIVE DATE.] This section is effective for revenue for 59.8 fiscal year 2005. 59.9 Sec. 6. Minnesota Statutes 2002, section 123B.59, 59.10 subdivision 3, is amended to read: 59.11 Subd. 3. [BOND AUTHORIZATION.] (a) A school district, upon59.12approval of its board and the commissioner,may issue general 59.13 obligation bonds under this section to financeapproved59.14 facilities plans approved by its board and the commissioner. 59.15 Chapter 475, except sections 475.58 and 475.59, must be complied 59.16 with. The district may levy under subdivision 5 for the debt 59.17 service revenue. The authority to issue bonds under this 59.18 section is in addition to any bonding authority authorized by 59.19 this chapter, or other law. The amount of bonding authority 59.20 authorized under this section must be disregarded in calculating 59.21 the bonding or net debt limits of this chapter, or any other law 59.22 other than section 475.53, subdivision 4. 59.23 (b) Before a district issues bonds under this subdivision, 59.24 it must publish notice of the intended projects, the amount of 59.25 the bond issue, and the total amount of district indebtedness. 59.26 (c) A bond issue tentatively authorized by the board under 59.27 this subdivision becomes finally authorized unless a petition 59.28 signed by more than 15 percent of the registered voters of the 59.29 district is filed with the school board within 30 days of the 59.30 board's adoption of a resolution stating the board's intention 59.31 to issue bonds. The percentage is to be determined with 59.32 reference to the number of registered voters in the district on 59.33 the last day before the petition is filed with the board. The 59.34 petition must call for a referendum on the question of whether 59.35 to issue the bonds for the projects under this section. The 59.36 approval of 50 percent plus one of those voting on the question 60.1 is required to pass a referendum authorized by this section. 60.2 [EFFECTIVE DATE.] This section is effective the day 60.3 following final enactment and applies to bonds issued after 60.4 February 1, 2003, for taxes payable in 2004 and later. 60.5 Sec. 7. Minnesota Statutes 2002, section 123B.59, is 60.6 amended by adding a subdivision to read: 60.7 Subd. 3a. [LEVY AUTHORIZATION.] (a) A school district may 60.8 levy under this section to finance the portion of facilities 60.9 plans approved by its board and the commissioner that are not 60.10 financed through bond issues according to subdivision 3. 60.11 (b) Before a district levies under this subdivision, it 60.12 must publish notice of the intended projects, including the 60.13 total estimated project cost. 60.14 (c) A levy tentatively authorized by the board under this 60.15 subdivision becomes finally authorized unless a petition signed 60.16 by more than 15 percent of the registered voters of the district 60.17 is filed with the school board within 30 days of the board's 60.18 adoption of a resolution stating the board's intention to levy. 60.19 The percentage is to be determined with reference to the number 60.20 of registered voters in the district on the last day before the 60.21 petition is filed with the board. The petition must call for a 60.22 referendum on the question of whether to levy for the projects 60.23 under this section. The approval of 50 percent plus one of 60.24 those voting on the question is required to pass a referendum 60.25 authorized by this section. The referendum must be held on a 60.26 date set by the board. The ballot must provide a general 60.27 description of the proposed projects and state the estimated 60.28 total cost of the projects, the specific number of years, not to 60.29 exceed ten, for which the referendum authorization applies, the 60.30 maximum amount of the levy for each year, and the estimated tax 60.31 rate as a percentage of net tax capacity for the amount 60.32 specified for the first year and for the maximum amount 60.33 specified in the schedule. The ballot must contain a textual 60.34 portion with the information required in this subdivision and a 60.35 question stating substantially the following: 60.36 "Shall the alternative facilities levy proposed by the 61.1 board of ............ School District No. ............ be 61.2 approved?" 61.3 If approved, the amount stated for each year may be 61.4 certified for the number of years approved. The district must 61.5 notify the commissioner of the results of the referendum. 61.6 [EFFECTIVE DATE.] This section is effective the day 61.7 following final enactment and applies to levies for taxes 61.8 payable in 2004 and later. 61.9 Sec. 8. Minnesota Statutes 2002, section 123B.59, 61.10 subdivision 5, is amended to read: 61.11 Subd. 5. [LEVY AUTHORIZED.] A district, after local board61.12approval,may levy for costs related to an approved facility 61.13 plan as follows: 61.14 (a) if the district has indicated to the commissioner that 61.15 bonds will be issued, the district may levy for the principal 61.16 and interest payments on outstanding bonds issued according to 61.17 subdivision 3after reduction for any alternative facilities aid61.18receivable under subdivision 6; or 61.19 (b) if the district has indicated to the commissioner that 61.20 the plan will be funded through levy, the district may levy 61.21 according tothe schedule approved in the plan after reduction61.22for any alternative facilities aid receivable undersubdivision 61.2363b. 61.24 [EFFECTIVE DATE.] This section is effective for taxes 61.25 payable in 2004. 61.26 Sec. 9. Minnesota Statutes 2002, section 126C.40, 61.27 subdivision 1, is amended to read: 61.28 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 61.29 independent or a special school district or a group of 61.30 independent or special school districts finds it economically 61.31 advantageous to rent or lease a building or land for any 61.32 instructional purposes or for school storage or furniture 61.33 repair, and it determines that the operating capital revenue 61.34 authorized under section 126C.10, subdivision 13, is 61.35 insufficient for this purpose, it may apply to the commissioner 61.36 for permission to make an additional capital expenditure levy 62.1 for this purpose. An application for permission to levy under 62.2 this subdivision must contain financial justification for the 62.3 proposed levy, the terms and conditions of the proposed lease, 62.4 and a description of the space to be leased and its proposed use. 62.5 (b) The criteria for approval of applications to levy under 62.6 this subdivision must include: the reasonableness of the price, 62.7 the appropriateness of the space to the proposed activity, the 62.8 feasibility of transporting pupils to the leased building or 62.9 land, conformity of the lease to the laws and rules of the state 62.10 of Minnesota, and the appropriateness of the proposed lease to 62.11 the space needs and the financial condition of the district. 62.12 The commissioner must not authorize a levy under this 62.13 subdivision in an amount greater than 90 percent of the cost to 62.14 the district of renting or leasing a building or land for 62.15 approved purposes. The proceeds of this levy must not be used 62.16 for custodial or other maintenance services. A district may not 62.17 levy under this subdivision for the purpose of leasing or 62.18 renting a district-owned building or site to itself. 62.19 (c) For agreements finalized after July 1, 1997, a district 62.20 may not levy under this subdivision for the purpose of leasing: 62.21 (1) a newly constructed building used primarily for regular 62.22 kindergarten, elementary, or secondary instruction; or (2) a 62.23 newly constructed building addition or additions used primarily 62.24 for regular kindergarten, elementary, or secondary instruction 62.25 that contains more than 20 percent of the square footage of the 62.26 previously existing building. 62.27 (d) Notwithstanding paragraph (b), a district may levy 62.28 under this subdivision for the purpose of leasing or renting a 62.29 district-owned building or site to itself only if the amount is 62.30 needed by the district to make payments required by a lease 62.31 purchase agreement, installment purchase agreement, or other 62.32 deferred payments agreement authorized by law, and the levy 62.33 meets the requirements of paragraph (c). A levy authorized for 62.34 a district by the commissioner under this paragraph may be in 62.35 the amount needed by the district to make payments required by a 62.36 lease purchase agreement, installment purchase agreement, or 63.1 other deferred payments agreement authorized by law, provided 63.2 that any agreement include a provision giving the school 63.3 districts the right to terminate the agreement annually without 63.4 penalty. 63.5 (e) The total levy under this subdivision for a district 63.6 for any year must not exceed$100$90 times the resident pupil 63.7 units for the fiscal year to which the levy is attributable. 63.8 (f) For agreements for which a review and comment have been 63.9 submitted to the department of children, families, and learning 63.10 after April 1, 1998, the term "instructional purpose" as used in 63.11 this subdivision excludes expenditures on stadiums. 63.12 (g) The commissioner of children, families, and learning 63.13 may authorize a school district to exceed the limit in paragraph 63.14 (e) if the school district petitions the commissioner for 63.15 approval. The commissioner shall grant approval to a school 63.16 district to exceed the limit in paragraph (e) for not more than 63.17 five years if the district meets the following criteria: 63.18 (1) the school district has been experiencing pupil 63.19 enrollment growth in the preceding five years; 63.20 (2) the purpose of the increased levy is in the long-term 63.21 public interest; 63.22 (3) the purpose of the increased levy promotes colocation 63.23 of government services; and 63.24 (4) the purpose of the increased levy is in the long-term 63.25 interest of the district by avoiding over construction of school 63.26 facilities. 63.27 (h) A school district that is a member of an intermediate 63.28 school district may include in its authority under this 63.29 section 90 percent of the costs associated with leases of 63.30 administrative and classroom space for intermediate school 63.31 district programs. This authority must not exceed$25$22.50 63.32 times the adjusted marginal cost pupil units of the member 63.33 districts. This authority is in addition to any other authority 63.34 authorized under this section. 63.35 (i) In addition to the allowable capital levies in 63.36 paragraph (a), a district that is a member of the "Technology 64.1 and Information Education Systems" data processing joint board, 64.2 that finds it economically advantageous to enter into a lease 64.3 purchase agreement for a building for a group of school 64.4 districts or special school districts for staff development 64.5 purposes, may levy for its portion of lease costs attributed to 64.6 the district within the total levy limit in paragraph (e). 64.7 [EFFECTIVE DATE.] This section is effective for taxes 64.8 payable in 2004. 64.9 Sec. 10. Minnesota Statutes 2002, section 126C.40, 64.10 subdivision 2, is amended to read: 64.11 Subd. 2. [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 64.12 A district may annually levy 90 percent of the amount needed to 64.13 make payments required by a lease purchase agreement, 64.14 installment purchase agreement, or other deferred payment 64.15 agreement authorized by Minnesota Statutes 1989 Supplement, 64.16 section 465.71, if: 64.17 (1) the agreement was approved by the commissioner before 64.18 July 1, 1990, according to Minnesota Statutes 1989 Supplement, 64.19 section 275.125, subdivision 11d; or 64.20 (2) the district levied in 1989 for the payments. 64.21 [EFFECTIVE DATE.] This section is effective for taxes 64.22 payable in 2004. 64.23 Sec. 11. Minnesota Statutes 2002, section 126C.40, 64.24 subdivision 6, is amended to read: 64.25 Subd. 6. [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 64.26 application to, and approval by, the commissioner in accordance 64.27 with the procedures and limits in subdivision 1, paragraphs (a) 64.28 and (b), a district, as defined in this subdivision, may: 64.29 (1) purchase real or personal property under an installment 64.30 contract or may lease real or personal property with an option 64.31 to purchase under a lease purchase agreement, by which 64.32 installment contract or lease purchase agreement title is kept 64.33 by the seller or vendor or assigned to a third party as security 64.34 for the purchase price, including interest, if any; and 64.35 (2) annually levy 90 percent of the amounts necessary to 64.36 pay the district's obligations under the installment contract or 65.1 lease purchase agreement. 65.2 (b) The obligation created by the installment contract or 65.3 the lease purchase agreement must not be included in the 65.4 calculation of net debt for purposes of section 475.53, and does 65.5 not constitute debt under other law. An election is not 65.6 required in connection with the execution of the installment 65.7 contract or the lease purchase agreement. 65.8 (c) The proceeds of the levy authorized by this subdivision 65.9 must not be used to acquire a facility to be primarily used for 65.10 athletic or school administration purposes. 65.11 (d) For the purposes of this subdivision, "district" means: 65.12 (1) a school district required to have a comprehensive plan 65.13 for the elimination of segregation whose plan has been 65.14 determined by the commissioner to be in compliance with 65.15 department of children, families, and learning rules relating to 65.16 equality of educational opportunity and school desegregation 65.17 and, for a district eligible for revenue under section 124D.86, 65.18 subdivision 3, clause (4), where the acquisition of property 65.19 under this subdivision is determined by the commissioner to 65.20 contribute to the implementation of the desegregation plan; or 65.21 (2) a school district that participates in a joint program 65.22 for interdistrict desegregation with a district defined in 65.23 clause (1) if the facility acquired under this subdivision is to 65.24 be primarily used for the joint program and the commissioner 65.25 determines that the joint programs are being undertaken to 65.26 implement the districts' desegregation plan. 65.27 (e) Notwithstanding subdivision 1, the prohibition against 65.28 a levy by a district to lease or rent a district-owned building 65.29 to itself does not apply to levies otherwise authorized by this 65.30 subdivision. 65.31 (f) For the purposes of this subdivision, any references in 65.32 subdivision 1 to building or land shall include personal 65.33 property. 65.34 [EFFECTIVE DATE.] This section is effective for taxes 65.35 payable in 2004. 65.36 Sec. 12. [BONDS; MOUNDS VIEW.] 66.1 Notwithstanding Minnesota Statutes, section 123B.59, 66.2 subdivision 3, independent school district No. 621, Mounds View, 66.3 may issue bonds according to Minnesota Statutes 2002, section 66.4 123B.59, subdivision 3, for projects approved by the 66.5 commissioner before February 1, 2003. 66.6 [EFFECTIVE DATE.] This section is effective the day 66.7 following final enactment. 66.8 Sec. 13. [APPROPRIATIONS.] 66.9 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 66.10 indicated in this section are appropriated from the general fund 66.11 to the department of education for the fiscal years designated. 66.12 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 66.13 safety aid according to Minnesota Statutes, section 123B.57, 66.14 subdivision 5: 66.15 $8,076,000 ..... 2004 66.16 $5,999,000 ..... 2005 66.17 The 2004 appropriation includes $1,516,000 for 2003 and 66.18 $6,560,000 for 2004. 66.19 The 2005 appropriation includes $1,343,000 for 2004 and 66.20 $4,657,000 for 2005. 66.21 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 66.22 according to Minnesota Statutes, section 123B.53, subdivision 6: 66.23 $35,584,000 ..... 2004 66.24 $37,629,000 ..... 2005 66.25 The 2004 appropriation includes $5,586,000 for 2003 and 66.26 $29,998,000 for 2004. 66.27 The 2005 appropriation includes $6,144,000 for 2004 and 66.28 $31,485,000 for 2005. 66.29 Subd. 4. [ALTERNATIVE FACILITIES BONDING AID.] For 66.30 alternative facilities bonding aid, according to Minnesota 66.31 Statutes, section 123B.59, subdivision 1: 66.32 $19,287,000 ..... 2004 66.33 $ 3,280,000 ..... 2005 66.34 The 2004 appropriation includes $3,278,000 for 2003 and 66.35 $16,009,000 for 2004. 66.36 The 2005 appropriation includes $3,280,000 for 2004 and $0 67.1 for 2005. 67.2 Sec. 14. [REPEALER.] 67.3 Minnesota Statutes 2002, section 123B.59, subdivisions 6 67.4 and 7, are repealed effective for revenue for fiscal year 2005. 67.5 ARTICLE 11 67.6 NUTRITION PROGRAMS 67.7 Section 1. [124D.116] [SCHOOL BREAKFAST PROGRAM.] 67.8 Subdivision 1. [PURPOSE.] The purpose of the school 67.9 breakfast program is to provide affordable morning nutrition to 67.10 children so that they can effectively learn. Public and 67.11 nonpublic schools that participate in the federal school 67.12 breakfast program may receive state breakfast aid either under 67.13 the fast break to learning program or the traditional school 67.14 breakfast program. Schools shall encourage all children to eat 67.15 a nutritious breakfast, either at home or at school, and shall 67.16 work to eliminate barriers to breakfast participation at school 67.17 such as inadequate facilities and transportation. 67.18 Subd. 2. [PROGRAM; ELIGIBILITY.] (a) Each school year, 67.19 public and nonpublic elementary schools that (1) participate in 67.20 the federal school breakfast program and (2) served at least 33 67.21 percent of school lunches free or at a reduced price during the 67.22 second preceding school year or participated in the fast break 67.23 to learning breakfast program during the previous school year, 67.24 are eligible for the state fast break to learning breakfast 67.25 program. Elementary schools participating in the fast break to 67.26 learning breakfast program receive reimbursement under 67.27 subdivision 3, paragraph (a), to offer school breakfast to all 67.28 students without charge. Schools shall not charge student 67.29 households for fast break to learning meals. 67.30 (b) Each school year, public and nonpublic schools that (1) 67.31 participate in the federal school breakfast program and (2) do 67.32 not participate in the fast break to learning breakfast program, 67.33 will receive traditional school breakfast reimbursement under 67.34 subdivision 3, paragraph (b), to support an affordable breakfast 67.35 program for all students. Schools shall not charge student 67.36 households for meals served to children who are eligible for 68.1 reduced-price meals under federal school meal guidelines. 68.2 Subd. 3. [PROGRAM REIMBURSEMENT.] (a) Each school year, 68.3 the state must reimburse schools that participate in the fast 68.4 break to learning breakfast program for the difference between 68.5 the per meal federal rates of reimbursement and the average 68.6 breakfast cost, based on the United States Department of Labor 68.7 Consumer Price Index for Cost of Food Away from Home. Meals 68.8 that are reimbursed at the federal free rate and free and 68.9 reduced-price meals that are eligible for the federal "severe 68.10 need" reimbursement rate do not qualify for fast break to 68.11 learning funds. 68.12 (b) Each school year, the state must reimburse schools that 68.13 participate in the federal school breakfast program and do not 68.14 participate in the fast break to learning breakfast program in 68.15 the amount of 30 cents for each reduced-price breakfast not 68.16 eligible for the federal "severe need" reimbursement rate and 20 68.17 cents for each fully paid breakfast served during school year 68.18 2003-2004 and 40 cents for each fully paid breakfast served in 68.19 school year 2004-2005 and each school year thereafter. 68.20 Sec. 2. Minnesota Statutes 2002, section 127A.45, 68.21 subdivision 14a, is amended to read: 68.22 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 68.23 subdivision 3, the state shall pay 100 percent of the aid for 68.24 the current year according to sections 124D.111, 124D.115,and 68.25124D.118 and 83 percent of the aid for the current year68.26according to section 124D.1156124D.116 based on submitted 68.27 monthly vouchers showing mealsand milkserved.The remaining68.2817 percent according to section 124D.1156 shall be paid by68.29October 30 of the following fiscal year.68.30 Sec. 3. [APPROPRIATIONS.] 68.31 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 68.32 indicated in this section are appropriated from the general fund 68.33 to the department of education for the fiscal years designated. 68.34 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 68.35 according to Minnesota Statutes, section 124D.111, and Code of 68.36 Federal Regulations, title 7, section 210.17: 69.1 $7,800,000 ..... 2004 69.2 $7,950,000 ..... 2005 69.3 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST.] For traditional 69.4 school breakfast aid under Minnesota Statutes, section 124D.116: 69.5 $ 873,000 ..... 2004 69.6 $1,646,000 ..... 2005 69.7 Subd. 4. [FAST BREAK TO LEARNING BREAKFAST.] For fast 69.8 break to learning breakfast under Minnesota Statutes, section 69.9 124D.116: 69.10 $5,461,000 ..... 2004 69.11 $5,186,000 ..... 2005 69.12 The 2004 appropriation includes $747,000 for 2003 and 69.13 $4,714,000 for 2004. 69.14 Subd. 5. [SUMMER SCHOOL SERVICE REPLACEMENT AID.] For 69.15 summer food service replacement aid under Minnesota Statutes, 69.16 section 124D.119: 69.17 $150,000 ..... 2004 69.18 $150,000 ..... 2005 69.19 Sec. 4. [REPEALER.] 69.20 Minnesota Statutes 2002, sections 124D.115; 124D.1156; and 69.21 124D.118, are repealed. 69.22 ARTICLE 12 69.23 LIBRARIES 69.24 Section 1. [APPROPRIATIONS.] 69.25 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 69.26 indicated in this section are appropriated from the general fund 69.27 to the department of education for the fiscal years designated. 69.28 Subd. 2. [BASIC SUPPORT.] For basic support grants 69.29 according to Minnesota Statutes, sections 134.32 to 134.35: 69.30 $9,566,000 ..... 2004 69.31 $9,770,000 ..... 2005 69.32 The 2004 appropriation includes $1,456,000 for 2003 and 69.33 $8,110,000 for 2004. 69.34 The 2005 appropriation includes $1,660,000 for 2004 and 69.35 $8,110,000 for 2005. 69.36 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 70.1 grants according to Minnesota Statutes, sections 134.353 and 70.2 134.354, to multicounty, multitype library systems: 70.3 $903,000 ..... 2004 70.4 $903,000 ..... 2005 70.5 The 2004 appropriation includes $153,000 for 2003 and 70.6 $750,000 for 2004. 70.7 The 2005 appropriation includes $153,000 for 2004 and 70.8 $750,000 for 2005. 70.9 ARTICLE 13 70.10 CHILD CARE PROGRAMS 70.11 Section 1. Minnesota Statutes 2002, section 119B.12, 70.12 subdivision 2, is amended to read: 70.13 Subd. 2. [PARENT FEE.] A family's monthly parent fee must 70.14 be a fixed percentage of its annual gross income. Parent fees 70.15 must apply to families eligible for child care assistance under 70.16 sections 119B.03 and 119B.05. Income must be as defined in 70.17 section 119B.011, subdivision 15. The fixed percent is based on 70.18 the relationship of the family's annual gross income to 100 70.19 percent of state median income. Beginning January 1, 1998, 70.20 parent fees must begin at 75 percent of the poverty level. The 70.21 minimum parent fees for families between 75 percent and 100 70.22 percent of poverty level must be$5$10 per month. Parent fees 70.23 must be established in rule and must provide for graduated 70.24 movement to full payment. 70.25 Sec. 2. Minnesota Statutes 2002, section 119B.13, is 70.26 amended by adding a subdivision to read: 70.27 Subd. 1a. [LEGAL NONLICENSED FAMILY CHILD CARE PROVIDER 70.28 RATES.] (a) Legal nonlicensed family child care providers 70.29 receiving reimbursement under this chapter must be paid in 70.30 hourly blocks of time for families receiving assistance. 70.31 (b) The maximum rate paid to legal nonlicensed family child 70.32 care providers must be 90 percent of the county maximum hourly 70.33 rate for licensed family child care providers. In counties 70.34 where the maximum hourly rate for licensed family child care 70.35 providers is higher than the maximum weekly rate for those 70.36 providers divided by 50, the maximum hourly rate that may be 71.1 paid to legal nonlicensed family child care providers is the 71.2 rate equal to the maximum weekly rate for licensed family child 71.3 care providers divided by 50 and then multiplied by 0.90. 71.4 (c) A rate which includes a provider bonus paid under 71.5 subdivision 2 or a special needs rate paid under subdivision 3 71.6 may be in excess of the maximum rate allowed under this 71.7 subdivision. 71.8 (d) Legal nonlicensed family child care providers receiving 71.9 reimbursement under this chapter may not be paid registration 71.10 fees for families receiving assistance. 71.11 Sec. 3. Minnesota Statutes 2002, section 119B.13, 71.12 subdivision 2, is amended to read: 71.13 Subd. 2. [PROVIDER RATE BONUS FOR ACCREDITATION.] A family 71.14 child care provider or child care center shall be paid a ten 71.15 percent bonus above the maximum rate established in subdivision 71.16 1 or 1a, if the provider or center holds a current early 71.17 childhood development credential approved by the commissioner, 71.18 up to the actual provider rate. 71.19 Sec. 4. [CHILD CARE ASSISTANCE PARENT FEE SCHEDULE, 71.20 RULEMAKING.] 71.21 The commissioner of education shall adopt rules under 71.22 Minnesota Statutes, chapter 14, to amend the parent fee schedule 71.23 in Minnesota Rules, chapter 3400, as follows: 71.24 (1) parent fees for families with incomes between 101.01 71.25 percent of the federal poverty guidelines and 35 percent of the 71.26 state median income must equal 2.42 percent of adjusted gross 71.27 income for families at 35 percent of the state median income; 71.28 (2) parent fees for families with incomes between 35.01 71.29 percent state median income and 42 percent of the state median 71.30 income must equal 2.97 percent of adjusted gross income for 71.31 families at 42 percent of the state median income; 71.32 (3) parent fees for families with incomes between 42.01 71.33 percent state median income and 75 percent of the state median 71.34 income must begin at 4.13 percent of adjusted gross income and 71.35 provide for graduated movement of fee increases; and 71.36 (4) parent fees for families at 75 percent of state median 72.1 income must equal 22.0 percent of gross annual income. 72.2 Sec. 5. [APPROPRIATIONS.] 72.3 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 72.4 indicated in this section are appropriated from the general fund 72.5 to the department of education for the fiscal years designated. 72.6 Subd. 2. [BASIC SLIDING FEE CHILD CARE.] For child care 72.7 assistance according to Minnesota Statutes, section 119B.03: 72.8 $44,528,000 ..... 2004 72.9 $43,774,000 ..... 2005 72.10 These appropriations are available to be spent in either 72.11 year. 72.12 Subd. 3. [MFIP CHILD CARE.] For MFIP child care: 72.13 $78,247,000 ..... 2004 72.14 $79,970,000 ..... 2005 72.15 Subd. 4. [CHILD CARE PROGRAM INTEGRITY.] For the 72.16 administrative costs of program integrity and fraud prevention 72.17 for child care assistance under chapter 119B: 72.18 $175,000 ..... 2004 72.19 $175,000 ..... 2005 72.20 Subd. 5. [CHILD CARE DEVELOPMENT.] For child care 72.21 development grants according to Minnesota Statutes, section 72.22 119B.21: 72.23 $1,365,000 ..... 2004 72.24 $1,365,000 ..... 2005 72.25 Sec. 6. [FEDERAL TANF TRANSFERS.] 72.26 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 72.27 indicated in this section are transferred from the federal TANF 72.28 fund to the child care and development fund and appropriated to 72.29 the department of education for the fiscal years designated. 72.30 The commissioner shall ensure that all transferred funds are 72.31 expended in accordance with the child care and development fund 72.32 regulations and that the maximum allowable transferred funds are 72.33 used for the programs in this section. 72.34 Subd. 2. [BASIC SLIDING FEE CHILD CARE.] For child care 72.35 assistance according to Minnesota Statutes, section 119B.03: 72.36 $17,686,000 ..... 2004 73.1 $17,700,000 ..... 2005 73.2 Subd. 3. [MFIP CHILD CARE.] For MFIP child care: 73.3 $7,428,000 ..... 2004 73.4 $2,943,000 ..... 2005 73.5 ARTICLE 14 73.6 EARLY CHILDHOOD PROGRAMS 73.7 Section 1. Minnesota Statutes 2002, section 124D.135, 73.8 subdivision 1, is amended to read: 73.9 Subdivision 1. [REVENUE.] (a) For fiscal year 2004, the 73.10 revenue for early childhood family education programs for a 73.11 school district equals$113.50 for fiscal years 2000 and 200173.12and$120for 2002 and later fiscal yearstimes the greater of: 73.13 (1) 150; or 73.14 (2) the number of people under five years of age residing 73.15 in the district on October 1 of the previous school year. 73.16 (b) For fiscal year 2005 and later fiscal years, the 73.17 revenue for early childhood family education programs equals the 73.18 sum of: 73.19 (1) $120 times the percentage of all first graders enrolled 73.20 in the district on October 1 of the second previous school year 73.21 eligible to receive free or reduced price lunches times the 73.22 greater of 150 or the number of people under five years of age 73.23 residing in the district on October 1 of the previous school 73.24 year; and 73.25 (2) $65 times the percentage of all first graders enrolled 73.26 in the district on October 1 of the second previous year not 73.27 eligible to receive free or reduced price lunches times the 73.28 greater of 150 or the number of people under five years of age 73.29 residing in the district on October 1 of the previous school 73.30 year. 73.31 Sec. 2. Minnesota Statutes 2002, section 124D.135, 73.32 subdivision 8, is amended to read: 73.33 Subd. 8. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 73.34 the average balance, during the most recent three-year period in 73.35 a district's early childhood family education reserve account on 73.36 June 30 of each year, adjusted for any prior reductions under 74.1 this subdivision, must not be greater than 25 percent of the sum 74.2 of the district's maximum early childhood family education 74.3 annual revenue under subdivision 1, excluding adjustments under 74.4 this subdivision, plus any fees, grants, or other revenue 74.5 received by the district for early childhood family education 74.6 programs for the prior year. 74.7 (b) If a district's adjusted average early childhood family 74.8 education reserve over the three-year period is in excess of2574.9percent of the prior year annual revenuethe limit under 74.10 paragraph (a), the district's early childhood family education 74.11 state aid and levy authority for the current school year must be 74.12 reduced by the lesser of the current year revenue under 74.13 subdivision 1 or the excess reserve amount. The aid reduction 74.14 equals the product of the lesser of the excess reserve amount or 74.15 the current year revenue under subdivision 1 times the ratio of 74.16 the district's aid for thepriorcurrent year under subdivision 74.17 4 to the district's revenue for thepriorcurrent year under 74.18 subdivision 1. The levy reduction equals the excess reserve 74.19 amount minus the aid reduction.The commissioner must74.20reallocate aid and levy reduced under this subdivision to other74.21eligible early childhood family education programs in proportion74.22to each district's revenue for the prior year under subdivision74.231.For purposes of this paragraph, if a district does not levy 74.24 the entire amount permitted under subdivision 3, the revenue 74.25 under subdivision 1 must be reduced in proportion to the actual 74.26 amount levied. 74.27(b)(c) Notwithstanding paragraph (a), for fiscal year 74.28 2003, the excess reserve amount shall be computed using the 74.29 balance in a district's early childhood family education reserve 74.30 account on June 30, 2002. For fiscal year 2004, the excess 74.31 reserve amount shall be computed using the adjusted average 74.32 balance in a district's early childhood family education reserve 74.33 account on June 30, 2002, and June 30, 2003. 74.34 [EFFECTIVE DATE.] This section is effective for revenue for 74.35 fiscal year 2003. 74.36 Sec. 3. Minnesota Statutes 2002, section 124D.16, 75.1 subdivision 6, is amended to read: 75.2 Subd. 6. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 75.3 the average balance, during the most recent three-year period, 75.4 in a district's school readiness reserve account on June 30 of 75.5 each year, adjusted for any prior reductions under this 75.6 subdivision, must not be greater than 25 percent of the 75.7 district's school readiness annual revenue for the prior year, 75.8 excluding adjustments under this subdivision. 75.9 (b) If a district's adjusted average school readiness 75.10 reserve over the three-year period is in excess of25 percent of75.11the prior year annual revenuethe limit under paragraph (a), the 75.12 district's current year school readiness state aid must be 75.13 reduced by the lesser of the excess reserve amount or the 75.14 current year aid.The commissioner must reallocate aid reduced75.15under this subdivision to other eligible school readiness75.16programs in proportion to each district's aid for the prior year75.17under subdivision 2.75.18(b)(c) Notwithstanding paragraph (a), for fiscal year 75.19 2003, the excess reserve amount shall be computed using the 75.20 balance in a district's school readiness reserve account on June 75.21 30, 2002. For fiscal year 2004, the excess reserve amount shall 75.22 be computed using the adjusted average balance in a district's 75.23 school readiness reserve account on June 30, 2002, and June 30, 75.24 2003. 75.25 [EFFECTIVE DATE.] This section is effective for revenue for 75.26 fiscal year 2003. 75.27 Sec. 4. [APPROPRIATIONS.] 75.28 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 75.29 indicated in this section are appropriated from the general fund 75.30 to the department of education for the fiscal years designated. 75.31 Subd. 2. [SCHOOL READINESS.] For revenue for school 75.32 readiness programs under Minnesota Statutes, sections 124D.15 75.33 and 124D.16: 75.34 $ 9,833,000 ..... 2004 75.35 $10,312,000 ..... 2005 75.36 The 2004 appropriation includes $1,605,000 for 2003 and 76.1 $8,228,000 for 2004. 76.2 The 2005 appropriation includes $1,685,000 for 2004 and 76.3 $8,627,000 for 2005. 76.4 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 76.5 childhood family education aid under Minnesota Statutes, section 76.6 124D.135: 76.7 $20,292,000 ..... 2004 76.8 $10,758,000 ..... 2005 76.9 The 2004 appropriation includes $3,239,000 for 2003 and 76.10 $17,053,000 for 2004. 76.11 The 2005 appropriation includes $3,492,000 for 2004 and 76.12 $7,266,000 for 2005. 76.13 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 76.14 health and developmental screening aid under Minnesota Statutes, 76.15 sections 121A.17 and 121A.19: 76.16 $2,661,000 ..... 2004 76.17 $2,661,000 ..... 2005 76.18 The 2004 appropriation includes $452,000 for 2003 and 76.19 $2,209,000 for 2004. 76.20 The 2005 appropriation includes $452,000 for 2004 and 76.21 $2,209,000 for 2005. 76.22 Subd. 5. [HEAD START PROGRAM.] For Head Start programs 76.23 under Minnesota Statutes, section 119A.52: 76.24 $18,375,000 ..... 2004 76.25 $18,375,000 ..... 2005 76.26 Sec. 5. [REPEALER.] 76.27 Minnesota Statutes 2002, section 124D.17, is repealed. 76.28 ARTICLE 15 76.29 PREVENTION 76.30 Section 1. Minnesota Statutes 2002, section 124D.20, 76.31 subdivision 3, is amended to read: 76.32 Subd. 3. [GENERAL COMMUNITY EDUCATION REVENUE.] (a) For 76.33 fiscal year 2004, the general community education revenue for a 76.34 district equals $5.95 times the greater of 1,335 or the 76.35 population of the district. 76.36 (b) For fiscal year 2005 and later years, the general 77.1 community education revenue for a district equals the sum of: 77.2 (i) $5.95 times the greater of 1,335 or the population of 77.3 the district times the percentage of all students enrolled in 77.4 kindergarten through grade 12 in the district on October 1 of 77.5 the second previous school year eligible to receive free or 77.6 reduced price lunches; and 77.7 (ii) $4.95 times the greater of 1,335 or the population of 77.8 the district times the percentage of all students enrolled in 77.9 kindergarten through grade 12 in the district on October 1 of 77.10 the second previous school year not eligible to receive free or 77.11 reduced price lunches. 77.12 (c) The population of the district is determined according 77.13 to section 275.14. 77.14 [EFFECTIVE DATE.] This section is effective for revenue for 77.15 fiscal year 2005. 77.16 Sec. 2. Minnesota Statutes 2002, section 124D.20, 77.17 subdivision 5, is amended to read: 77.18 Subd. 5. [TOTAL COMMUNITY EDUCATION LEVY.] To obtain total 77.19 community education revenue, a districtoperating a youth77.20after-school enrichment program under section 124D.19,77.21subdivision 12,may levy the amount raised by a maximum tax rate 77.22 of.7431.985 percent times the adjusted net tax capacity of the 77.23 district.To obtain total community education revenue, a77.24district not operating a youth after-school enrichment program77.25may levy the amount raised by a maximum tax rate of .479577.26percent times the adjusted net tax capacity of the district.If 77.27 the amount of the total community education levy would exceed 77.28 the total community education revenue, the total community 77.29 education levy shall be determined according to subdivision 6. 77.30 [EFFECTIVE DATE.] This section is effective for revenue for 77.31 fiscal year 2005. 77.32 Sec. 3. Minnesota Statutes 2002, section 124D.20, is 77.33 amended by adding a subdivision to read: 77.34 Subd. 11. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 77.35 the sum of the average balances during the most recent 77.36 three-year period in a district's community education reserve 78.1 account and unreserved/undesignated community service fund 78.2 account on June 30 of each year, adjusted for any prior 78.3 reductions under this subdivision, must not be greater than 25 78.4 percent of the sum of the district's maximum total community 78.5 education revenue under subdivision 1, excluding adjustments 78.6 under this subdivision, plus the district's additional community 78.7 education levy under section 124D.21, plus any fees, grants, or 78.8 other revenue received by the district for community education 78.9 programs for the prior year. For purposes of this paragraph, 78.10 "community education programs" means programs according to 78.11 subdivisions 8, paragraph (a), and 9, and section 124D.19, 78.12 subdivision 12, excluding early childhood family education 78.13 programs under section 124D.13, school readiness programs under 78.14 sections 124D.15 and 124D.17, and adult basic education programs 78.15 under section 124D.52. 78.16 (b) If the sum of the average balances during the most 78.17 recent three-year period in a district's community education 78.18 reserve account and unreserved/undesignated community service 78.19 fund account on June 30 of each year, adjusted for any prior 78.20 reductions under this subdivision, is in excess of the limit 78.21 under paragraph (a), the district's community education state 78.22 aid and levy authority for the current school year must be 78.23 reduced by the lesser of the current year revenue under 78.24 subdivision 1 or the excess reserve amount. The aid reduction 78.25 equals the product of the lesser of the excess reserve amount or 78.26 the current year revenue under subdivision 1 times the ratio of 78.27 the district's aid for the current year under subdivision 7 to 78.28 the district's revenue for the current year under subdivision 78.29 1. The levy reduction equals the excess reserve amount minus 78.30 the aid reduction. For purposes of this paragraph, if a 78.31 district does not levy the entire amount permitted under 78.32 subdivision 5 or 6, the revenue under subdivision 1 must be 78.33 reduced in proportion to the actual amount levied. 78.34 (c) Notwithstanding paragraph (a), for fiscal year 2003, 78.35 the excess reserve amount shall be computed using the balances 78.36 in a district's community education reserve account and 79.1 unreserved/undesignated community service fund account on June 79.2 30, 2002. For fiscal year 2004, the excess reserve amount shall 79.3 be computed using the adjusted average balances in a district's 79.4 community education reserve account and unreserved/undesignated 79.5 community service fund account on June 30, 2002, and June 30, 79.6 2003. 79.7 [EFFECTIVE DATE.] This section is effective for revenue for 79.8 fiscal year 2003. 79.9 Sec. 4. Minnesota Statutes 2002, section 124D.20, is 79.10 amended by adding a subdivision to read: 79.11 Subd. 12. [WAIVER.] (a) If a district anticipates that the 79.12 reserve account may exceed the 25 percent limit established 79.13 under subdivision 11 because of extenuating circumstances, prior 79.14 approval to exceed the limit must be obtained in writing from 79.15 the commissioner. 79.16 (b) Notwithstanding paragraph (a), for fiscal year 2003, a 79.17 district may submit a waiver request within 30 days of the date 79.18 of final enactment. 79.19 [EFFECTIVE DATE.] This section is effective the day 79.20 following final enactment for revenue for fiscal year 2003. 79.21 Sec. 5. [APPROPRIATIONS.] 79.22 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 79.23 indicated in this section are appropriated from the general fund 79.24 to the department of education for the fiscal years designated. 79.25 Subd. 2. [COMMUNITY EDUCATION AID.] For community 79.26 education aid under Minnesota Statutes, section 124D.20: 79.27 $5,665,000 ..... 2004 79.28 $3,324,000 ..... 2005 79.29 The 2004 appropriation includes $956,000 for 2003 and 79.30 $4,709,000 for 2004. 79.31 The 2005 appropriation includes $964,000 for 2004 and 79.32 $2,360,000 for 2005. 79.33 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 79.34 adults with disabilities programs under Minnesota Statutes, 79.35 section 124D.56: 79.36 $710,000 ..... 2004 80.1 $710,000 ..... 2005 80.2 The 2004 appropriation includes $120,000 for 2003 and 80.3 $590,000 for 2004. 80.4 The 2005 appropriation includes $120,000 for 2004 and 80.5 $590,000 for 2005. 80.6 Subd. 4. [HEARING-IMPAIRED ADULTS.] For programs for 80.7 hearing-impaired adults under Minnesota Statutes, section 80.8 124D.57: 80.9 $70,000 ..... 2004 80.10 $70,000 ..... 2005 80.11 Subd. 5. [VIOLENCE PREVENTION EDUCATION GRANTS.] For 80.12 violence prevention education grants under Minnesota Statutes, 80.13 section 120B.23: 80.14 $246,000 ..... 2004 80.15 This appropriation includes $246,000 for 2003 and $0 for 80.16 2004. 80.17 Subd. 6. [ABUSED CHILDREN.] For abused children programs 80.18 under Minnesota Statutes, section 119A.21: 80.19 $945,000 ..... 2004 80.20 $945,000 ..... 2005 80.21 Subd. 7. [SCHOOL-AGE CARE REVENUE.] For extended day aid 80.22 under Minnesota Statutes, section 124D.22: 80.23 $42,000 ..... 2004 80.24 $22,000 ..... 2005 80.25 The 2004 appropriation includes $14,000 for 2003 and 80.26 $28,000 for 2004. 80.27 The 2005 appropriation includes $5,000 for 2004 and $17,000 80.28 for 2005. 80.29 Sec. 6. [REPEALER.] 80.30 Minnesota Statutes 2002, sections 120B.23; 124D.21; and 80.31 124D.221, are repealed. 80.32 ARTICLE 16 80.33 SELF-SUFFICIENCY AND LIFELONG LEARNING 80.34 Section 1. Minnesota Statutes 2002, section 124D.52, 80.35 subdivision 1, is amended to read: 80.36 Subdivision 1. [PROGRAM REQUIREMENTS.] (a) An adult basic 81.1 education program is a day or evening program offered by a 81.2 district that is for people over 16 years of age who do not 81.3 attend an elementary or secondary school. The program offers 81.4 academic instruction necessary to earn a high school diploma or 81.5 equivalency certificate.Tuition and fees may not be charged to81.6a learner for instruction paid under this section, except for81.7 (b) Notwithstanding any law to the contrary, a school board 81.8 or the governing body of a consortium offering an adult basic 81.9 education program may adopt a sliding fee schedule based on a 81.10 family's income, but must waive the fee for participants who are 81.11 under the age of 21 or unable to pay. The fees charged must be 81.12 designed to enable individuals of all socioeconomic levels to 81.13 participate in the program. A program may charge a security 81.14 deposit to assure return of materials, supplies, and equipment. 81.15 (c) Each approved adult basic education program must 81.16 develop a memorandum of understanding with the local workforce 81.17 development centers located in the approved program's service 81.18 delivery area. The memorandum of understanding must describe 81.19 how the adult basic education program and the workforce 81.20 development centers will cooperate and coordinate services to 81.21 provide unduplicated, efficient, and effective services to 81.22 clients. 81.23 (d) Adult basic education aid must be spent for adult basic 81.24 education purposes as specified in sections 124D.518 to 124D.531. 81.25 Sec. 2. Minnesota Statutes 2002, section 124D.52, 81.26 subdivision 3, is amended to read: 81.27 Subd. 3. [ACCOUNTS; REVENUE; AID.] Each district, group of 81.28 districts, or private nonprofit organization providing adult 81.29 basic education programs must establish and maintainaccounts81.30separate from all other district accountsa reserve account 81.31 within the community service fund for the receipt and 81.32 disbursement of all funds related to these programs. All 81.33 revenue received pursuant to this section must be utilized 81.34 solely for the purposes of adult basic education programs. 81.35 State aid must not equal more than 100 percent of the 81.36 unreimbursed expenses of providing these programs, excluding 82.1 in-kind costs. 82.2 Sec. 3. Minnesota Statutes 2002, section 124D.531, 82.3 subdivision 1, is amended to read: 82.4 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 82.5 (a) The state total adult basic education aid for fiscal year 82.620012004 and later years equals$30,157,000$36,510,000.The82.7state total adult basic education aid for later years equals:82.8(1) the state total adult basic education aid for the82.9preceding fiscal year; times82.10(2) the lesser of:82.11(i) 1.08, or82.12(ii) the greater of 1.00 or the ratio of the state total82.13contact hours in the first prior program year to the state total82.14contact hours in the second prior program year.Beginning in 82.15 fiscal year 2002, two percent of the state total adult basic 82.16 education aid must be set aside for adult basic education 82.17 supplemental service grants under section 124D.522. 82.18 (b) The state total adult basic education aid, excluding 82.19 basic population aid, equals the difference between the amount 82.20 computed in paragraph (a), and the state total basic population 82.21 aid under subdivision 2. 82.22 Sec. 4. Minnesota Statutes 2002, section 124D.531, 82.23 subdivision 2, is amended to read: 82.24 Subd. 2. [BASIC POPULATION AID.] A district is eligible 82.25 for basic population aid if the district has a basic service 82.26 level approved by the commissioner under section 124D.52, 82.27 subdivision 5, or is a member of a consortium with an approved 82.28 basic service level. Basic population aid is equal to the 82.29 greater of$4,000$3,800 or$1.80$1.70 times the population of 82.30 the district. District population is determined according to 82.31 section 275.14. 82.32 Sec. 5. Minnesota Statutes 2002, section 124D.531, 82.33 subdivision 4, is amended to read: 82.34 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 82.35 Notwithstanding subdivisions 2 and 3, the total adult basic 82.36 education aid for a program per prior year contact hour must not 83.1 exceed four times the rate per prior year contact hour computed 83.2 under subdivision 3, clause (2). 83.3 (b) For fiscal year 2004, the aid for a program under 83.4 subdivision 3, clause (2), adjusted for changes in program 83.5 membership, must not exceed the sum of the aid for that program 83.6 under subdivision 3, clause (2), and Minnesota Statutes 2002, 83.7 section 124D.54, for fiscal year 2003 by more than the greater 83.8 of eight percent or $10,000. 83.9 (c) For fiscal year20022005 and later, the aid for a 83.10 program under subdivision 3, clause (2), adjusted for changes in 83.11 program membership, must not exceed the aid for that program 83.12 under subdivision 3, clause (2), for the first preceding fiscal 83.13 year by more than the greater of17eight percent or 83.14$20,000$10,000. 83.15(c)(d) Adult basic education aid is payable to a program 83.16 for unreimbursed costs. 83.17 Sec. 6. Minnesota Statutes 2002, section 124D.531, 83.18 subdivision 7, is amended to read: 83.19 Subd. 7. [PROGRAM AUDITS.] Programs that receive aid under 83.20 this section must maintain records that support the aid 83.21 payments. The commissioner may audit these records upon 83.22 request. The commissioner must establish procedures for 83.23 conducting fiscal audits of adult basic education programs 83.24according to the schedule in this subdivision. In calendar year83.252003, the commissioner must audit one-half of approved adult83.26basic education programs that received aid for fiscal year 2002,83.27and in calendar year 2004, the commissioner must audit the83.28remaining unaudited programs for aid received in fiscal year83.292003. Beginning with fiscal year 2005, the commissioner must,83.30at a minimum, audit each adult basic education program once83.31every five years. The commissioner must establish procedures to 83.32 reconcile any discrepancies between aid payments based on 83.33 information reported to the commissioner and aid estimates based 83.34 on a program audit. 83.35 Sec. 7. [ADULT BASIC EDUCATION PROGRAM APPROVAL AND AID, 83.36 FISCAL YEAR 2004.] 84.1 (a) Notwithstanding Minnesota Statutes 2002, section 84.2 124D.54, subdivision 2, a district or consortium of districts 84.3 that provided a program funded under Minnesota Statutes 2002, 84.4 section 124D.54 in fiscal year 2003 may request an extension of 84.5 the application deadline for approval of an adult basic 84.6 education program for fiscal year 2004. 84.7 (b) For purposes of computing the fiscal year 2004 adult 84.8 basic education aid for a program under Minnesota Statutes 2002, 84.9 section 124D.531, subdivision 3, clause (2), the contact hours 84.10 for students participating in the program during the first prior 84.11 program year must be increased by 60 percent of the attendance 84.12 hours for students participating in the adult graduation aid 84.13 program under Minnesota Statutes 2002, section 124D.54, during 84.14 fiscal year 2003. 84.15 Sec. 8. [APPROPRIATIONS.] 84.16 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 84.17 indicated in this section are appropriated from the general fund 84.18 to the department of education for the fiscal years designated. 84.19 Subd. 2. [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 84.20 Minnesota economic opportunity grants: 84.21 $4,000,000 ..... 2004 84.22 $4,000,000 ..... 2005 84.23 Subd. 3. [TRANSITIONAL HOUSING GRANTS.] For transitional 84.24 housing programs under Minnesota Statutes, section 119A.43: 84.25 $1,988,000 ..... 2004 84.26 $1,988,000 ..... 2005 84.27 Subd. 4. [FOODSHELF PROGRAMS.] For foodshelf programs 84.28 under Minnesota Statutes, section 119A.44: 84.29 $1,278,000 ..... 2004 84.30 $1,278,000 ..... 2005 84.31 Subd. 5. [ADULT BASIC EDUCATION AID.] For adult basic 84.32 education aid under Minnesota Statutes, section 124D.52 in 84.33 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 84.34 fiscal year 2005: 84.35 $36,116,000 ..... 2004 84.36 $36,360,000 ..... 2005 85.1 The 2004 appropriation includes $5,949,000 for 2003 and 85.2 $30,167,000 for 2004. 85.3 The 2005 appropriation includes $6,180,000 for 2004 and 85.4 $30,180,000 for 2005. 85.5 Subd. 6. [ADULT GRADUATION AID.] For adult graduation aid 85.6 under Minnesota Statutes, section 124D.54: 85.7 $396,000 ..... 2004 85.8 The 2004 appropriation includes $396,000 for 2003 and $0 85.9 for 2004. 85.10 Subd. 7. [GED TESTS.] For payment of 60 percent of the 85.11 costs of GED tests under Laws 1993, chapter 224, article 4, 85.12 section 44, subdivision 10: 85.13 $125,000 ..... 2004 85.14 $125,000 ..... 2005 85.15 Subd. 8. [EMERGENCY SERVICES GRANTS.] For emergency 85.16 services under Minnesota Statutes, section 119A.43: 85.17 $350,000 ..... 2004 85.18 $350,000 ..... 2005 85.19 Subd. 9. [FAMILY ASSETS FOR INDEPENDENCE.] For family 85.20 assets for independence: 85.21 $500,000 ..... 2004 85.22 Any balance in the first year does not cancel but is 85.23 available in the second year. 85.24 Sec. 9. [REPEALER.] 85.25 Minnesota Statutes 2002, sections 119A.46; 124D.09, 85.26 subdivision 15; 124D.54; and 126C.05, subdivision 12, are 85.27 repealed. 85.28 ARTICLE 17 85.29 STATE AGENCIES 85.30 Section 1. Minnesota Statutes 2002, section 15.01, is 85.31 amended to read: 85.32 15.01 [DEPARTMENTS OF THE STATE.] 85.33 The following agencies are designated as the departments of 85.34 the state government: the department of administration; the 85.35 department of agriculture; the department of commerce; the 85.36 department of corrections; the department ofchildren, families,86.1and learningeducation; the department of economic security; the 86.2 department of trade and economic development; the department of 86.3 finance; the department of health; the department of human 86.4 rights; the department of labor and industry; the department of 86.5 military affairs; the department of natural resources; the 86.6 department of employee relations; the department of public 86.7 safety; the department of human services; the department of 86.8 revenue; the department of transportation; the department of 86.9 veterans affairs; and their successor departments. 86.10 Sec. 2. Minnesota Statutes 2002, section 119A.01, 86.11 subdivision 2, is amended to read: 86.12 Subd. 2. [ESTABLISHMENT.] The department ofchildren,86.13families, and learningeducation is established. 86.14 Sec. 3. Minnesota Statutes 2002, section 119A.02, 86.15 subdivision 2, is amended to read: 86.16 Subd. 2. [COMMISSIONER.] "Commissioner" means the 86.17 commissioner ofchildren, families, and learningeducation. 86.18 Sec. 4. Minnesota Statutes 2002, section 119A.02, 86.19 subdivision 3, is amended to read: 86.20 Subd. 3. [DEPARTMENT.] "Department" means the department 86.21 ofchildren, families, and learningeducation. 86.22 Sec. 5. Minnesota Statutes 2002, section 119B.011, 86.23 subdivision 8, is amended to read: 86.24 Subd. 8. [COMMISSIONER.] "Commissioner" means the 86.25 commissioner ofchildren, families, and learningeducation. 86.26 Sec. 6. Minnesota Statutes 2002, section 119B.011, 86.27 subdivision 10, is amended to read: 86.28 Subd. 10. [DEPARTMENT.] "Department" means the department 86.29 ofchildren, families, and learningeducation. 86.30 Sec. 7. Minnesota Statutes 2002, section 120A.02, is 86.31 amended to read: 86.32 120A.02 [DEPARTMENT OFCHILDREN, FAMILIES, AND LEARNING86.33 EDUCATION.] 86.34 The department ofchildren, families, and learning86.35 education shall carry out the provisions of chapters 120A to 86.36 129C and other related education provisions under law. 87.1 Sec. 8. Minnesota Statutes 2002, section 120A.05, 87.2 subdivision 4, is amended to read: 87.3 Subd. 4. [COMMISSIONER.] "Commissioner" means the 87.4 commissioner ofchildren, families, and learningeducation. 87.5 Sec. 9. Minnesota Statutes 2002, section 120A.05, 87.6 subdivision 7, is amended to read: 87.7 Subd. 7. [DEPARTMENT.] "Department" means the department 87.8 ofchildren, families, and learningeducation. 87.9 Sec. 10. Minnesota Statutes 2002, section 127A.05, 87.10 subdivision 1, is amended to read: 87.11 Subdivision 1. [APPOINTMENT AND DUTIES.] The department 87.12 shall be under the administrative control of the commissioner of 87.13children, families, and learningeducation which office is 87.14 established. The governor shall appoint the commissioner under 87.15 the provisions of section 15.06. 87.16 The commissioner shall be a person who possesses 87.17 educational attainment and breadth of experience in the 87.18 administration of public education and of the finances 87.19 pertaining thereto commensurate with the spirit and intent of 87.20 this code. Notwithstanding any other law to the contrary, the 87.21 commissioner may appoint two deputy commissioners who shall 87.22 serve in the unclassified service. The commissioner shall also 87.23 appoint other employees as may be necessary for the organization 87.24 of the department. The commissioner shall perform such duties 87.25 as the law and rules may provide and be held responsible for the 87.26 efficient administration and discipline of the department. The 87.27 commissioner is charged with the execution of powers and duties 87.28 to promote public education in the state and to safeguard the 87.29 finances pertaining thereto. 87.30 Sec. 11. Minnesota Statutes 2002, section 127A.05, 87.31 subdivision 3, is amended to read: 87.32 Subd. 3. [GENERAL SUPERVISION OVER PUBLIC SCHOOLS AND 87.33 EDUCATIONAL AGENCIES.] The commissioner ofchildren, families,87.34and learningeducation shall adopt goals for and exercise 87.35 general supervision over public schools and public educational 87.36 agencies in the state, classify and standardize public 88.1 elementary and secondary schools, and prepare for them outlines 88.2 and suggested courses of study. The commissioner shall develop 88.3 a plan to attain the adopted goals. The commissioner may 88.4 recognize educational accrediting agencies for the sole purposes 88.5 of sections 120A.22, 120A.24, and 120A.26. 88.6 Sec. 12. [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 88.7 Subdivision 1. [DEPARTMENT OF EDUCATION.] Unless otherwise 88.8 indicated, the sums indicated in this section are appropriated 88.9 from the general fund to the department of education for the 88.10 fiscal years designated. 88.11 Subd. 2. [DEPARTMENT.] (a) For the department of education: 88.12 $22,867,000 ..... 2004 88.13 $22,867,000 ..... 2005 88.14 Any balance in the first year does not cancel but is 88.15 available in the second year. 88.16 (b) $260,000 each year is for the Minnesota Children's 88.17 Museum. 88.18 (c) $41,000 each year is for the Minnesota Academy of 88.19 Science. 88.20 Subd. 3. [BOARD OF TEACHING.] For the board of teaching: 88.21 $621,000 ..... 2004 88.22 $621,000 ..... 2005 88.23 Subd. 4. [BOARD OF SCHOOL ADMINISTRATORS.] For the board 88.24 of school administrators: 88.25 $165,000 ..... 2004 88.26 $165,000 ..... 2005 88.27 Subd. 5. [FEDERAL GRANTS AND AIDS.] The expenditures of 88.28 federal grants and aids as shown in the biennial budget document 88.29 and its supplements are approved and appropriated and shall be 88.30 spent as indicated. 88.31 Sec. 13. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 88.32 The sums indicated in this section are appropriated from 88.33 the general fund to the Minnesota state academies for the deaf 88.34 and the blind for the fiscal years designated: 88.35 $10,417,000 ..... 2004 88.36 $10,418,000 ..... 2005 89.1 Any balance in the first year does not cancel but is 89.2 available in the second year. 89.3 Sec. 14. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 89.4 EDUCATION.] 89.5 The sums indicated in this section are appropriated from 89.6 the general fund to the Perpich center for arts education for 89.7 the fiscal years designated: 89.8 $6,864,000 ..... 2004 89.9 $6,423,000 ..... 2005 89.10 Any balance in the first year does not cancel but is 89.11 available in the second year. 89.12 Sec. 15. [REVISOR INSTRUCTION.] 89.13 (a) In Minnesota Statutes, the revisor shall renumber 89.14 section 119A.02, subdivision 2, as 120A.02, paragraph (a), and 89.15 section 120A.02 as 120A.02, paragraph (b). 89.16 (b) In Minnesota Statutes and Minnesota Rules, the revisor 89.17 shall change the term "children, families, and learning" to 89.18 "education." 89.19 Sec. 16. [REPEALER.] 89.20 Minnesota Statutes 2002, section 119A.01, subdivision 1, is 89.21 repealed.