1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; providing for the department of 1.3 children, families, and learning administrative 1.4 amendment and repeal of certain statutory provisions 1.5 relating to kindergarten through grade 12; amending 1.6 Minnesota Statutes 2002, sections 12.21, subdivision 1.7 3; 120A.05, subdivision 9; 122A.63, subdivision 3; 1.8 123A.06, subdivision 3; 123A.18, subdivision 2; 1.9 123A.73, subdivisions 3, 4, 5; 123B.51, subdivisions 1.10 3, 4; 123B.57, subdivision 4; 123B.63, subdivisions 1, 1.11 2, 3, 4; 123B.91, subdivision 1; 123B.92, subdivisions 1.12 1, 3; 124D.09, subdivisions 9, 10, 16; 124D.11, 1.13 subdivisions 1, 2; 124D.135, subdivision 8; 124D.16, 1.14 subdivision 6; 124D.19, subdivision 3; 124D.20, 1.15 subdivision 5; 124D.22, subdivision 3; 124D.454, 1.16 subdivisions 2, 8, 10, by adding a subdivision; 1.17 124D.65, subdivision 5; 124D.86, subdivisions 1a, 3, 1.18 6; 125A.21, subdivision 2; 126C.10, subdivision 6; 1.19 126C.15, subdivision 1; 126C.17, subdivisions 7a, 9; 1.20 126C.21, subdivision 3; 126C.42, subdivision 1; 1.21 126C.48, subdivision 3; 126C.63, subdivisions 5, 8; 1.22 126C.69, subdivisions 2, 9; 127A.47, subdivisions 7, 1.23 8; 127A.49, subdivisions 2, 3; 128D.11, subdivision 8; 1.24 169.26, subdivision 3; 169.973, subdivision 1; 178.02, 1.25 subdivision 1; 273.138, subdivision 6; 298.28, 1.26 subdivision 4; 475.61, subdivision 4; Laws 1965, 1.27 chapter 705, as amended; repealing Minnesota Statutes 1.28 2002, sections 123A.73, subdivisions 7, 10, 11; 1.29 123B.81, subdivision 6; 124D.65, subdivision 4; 1.30 124D.84, subdivision 2; 125A.023, subdivision 5; 1.31 125A.47; 125B.11; 126C.01, subdivision 4; 126C.14; 1.32 127A.41, subdivision 6; Laws 2001, First Special 1.33 Session chapter 6, article 5, section 12, as amended; 1.34 Minnesota Rules, parts 3500.0600; 3520.0400; 1.35 3520.1400; 3520.3300; 3530.1500; 3530.2700; 3530.4400; 1.36 3530.4500; 3530.4700; 3550.0100. 1.37 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.38 Section 1. Minnesota Statutes 2002, section 12.21, 1.39 subdivision 3, is amended to read: 1.40 Subd. 3. [SPECIFIC AUTHORITY.] In performing duties under 1.41 this chapter and to effect its policy and purpose, the governor 2.1 may: 2.2 (1) make, amend, and rescind the necessary orders and rules 2.3 to carry out the provisions of this chapter and section 216C.15 2.4 within the limits of the authority conferred by this section, 2.5 with due consideration of the plans of the federal government 2.6 and without complying with sections 14.001 to 14.69, but no 2.7 order or rule has the effect of law except as provided by 2.8 section 12.32; 2.9 (2) ensure that a comprehensive emergency operations plan 2.10 and emergency management program for this state are developed 2.11 and maintained, and are integrated into and coordinated with the 2.12 emergency plans of the federal government and of other states to 2.13 the fullest possible extent; 2.14 (3) in accordance with the emergency operations plan and 2.15 the emergency management program of this state, procure 2.16 supplies, equipment, and facilities; institute training programs 2.17 and public information programs; and take all other preparatory 2.18 steps, including the partial or full activation of emergency 2.19 management organizations in advance of actual disaster to ensure 2.20 the furnishing of adequately trained and equipped forces of 2.21 emergency management personnel in time of need; 2.22 (4) make studies and surveys of the industries, resources, 2.23 and facilities in this state as may be necessary to ascertain 2.24 the capabilities of the state for emergency management and to 2.25 plan for the most efficient emergency use of those industries, 2.26 resources, and facilities; 2.27 (5) on behalf of this state, enter into mutual aid 2.28 arrangements or cooperative agreements with other states, tribal 2.29 authorities, and Canadian provinces, and coordinate mutual aid 2.30 plans between political subdivisions of this state; 2.31 (6) delegate administrative authority vested in the 2.32 governor under this chapter, except the power to make rules, and 2.33 provide for the subdelegation of that authority; 2.34 (7) cooperate with the president and the heads of the armed 2.35 forces, the emergency management agency of the United States and 2.36 other appropriate federal officers and agencies, and with the 3.1 officers and agencies of other states in matters pertaining to 3.2 the emergency management of the state and nation, including the 3.3 direction or control of: 3.4 (i) emergency preparedness drills and exercises; 3.5 (ii) warnings and signals for drills or actual emergencies 3.6 and the mechanical devices to be used in connection with them; 3.7 (iii) shutting off water mains, gas mains, electric power 3.8 connections and the suspension of all other utility services; 3.9 (iv) the conduct of persons in the state, including 3.10 entrance or exit from any stricken or threatened public place, 3.11 occupancy of facilities, and the movement and cessation of 3.12 movement of pedestrians, vehicular traffic, and all forms of 3.13 private and public transportation during, prior, and subsequent 3.14 to drills or actual emergencies; 3.15 (v) public meetings or gatherings; and 3.16 (vi) the evacuation, reception, and sheltering of persons; 3.17 (8) contribute to a political subdivision, within the 3.18 limits of the appropriation for that purpose, not more than 25 3.19 percent of the cost of acquiring organizational equipment that 3.20 meets standards established by the governor; 3.21 (9) formulate and execute, with the approval of the 3.22 executive council, plans and rules for the control of traffic in 3.23 order to provide for the rapid and safe movement over public 3.24 highways and streets of troops, vehicles of a military nature, 3.25 and materials for national defense and war or for use in any war 3.26 industry, for the conservation of critical materials, or for 3.27 emergency management purposes; coordinate the activities of the 3.28 departments or agencies of the state and its political 3.29 subdivisions concerned directly or indirectly with public 3.30 highways and streets, in a manner that will best effectuate 3.31 those plans; 3.32 (10) alter or adjust by executive order, without complying 3.33 with sections 14.01 to 14.69, the working hours, work days and 3.34 work week of, and annual and sick leave provisions and payroll 3.35 laws regarding all state employees in the executive branch as 3.36 the governor deems necessary to minimize the impact of the 4.1 disaster or emergency, conforming the alterations or adjustments 4.2 to existing state laws, rules, and collective bargaining 4.3 agreements to the extent practicable; 4.4 (11) authorize the commissioner of children, families, and 4.5 learning to alter school schedules, curtail school activities, 4.6 or order schools closedwithout affecting state aid to schools,4.7 as defined in section 120A.05, subdivisions 9, 11, 13, and 17, 4.8 and including charter schools under section 124D.10, and 4.9 elementary schools enrolling prekindergarten pupils in district 4.10 programs; and 4.11 (12) transfer the direction, personnel, or functions of 4.12 state agencies to perform or facilitate response and recovery 4.13 programs. 4.14 Sec. 2. Minnesota Statutes 2002, section 120A.05, 4.15 subdivision 9, is amended to read: 4.16 Subd. 9. [ELEMENTARY SCHOOL.] "Elementary school" means 4.17 any school with building, equipment, courses of study, class 4.18 schedules, enrollment of pupils ordinarily in prekindergarten 4.19 through grade 6 or any portion thereof, and staff meeting the 4.20 standards established by the commissioner. 4.21The commissioner of children, families, and learning shall4.22not close a school or deny any state aids to a district for its4.23elementary schools because of enrollment limitations classified4.24in accordance with the provisions of this subdivision.4.25 Sec. 3. Minnesota Statutes 2002, section 122A.63, 4.26 subdivision 3, is amended to read: 4.27 Subd. 3. [REVIEW AND COMMENT.] The commissioner must 4.28 submit the joint application to theMinnesotaAmerican Indian 4.29scholarshipeducation committee for review and comment. 4.30 Sec. 4. Minnesota Statutes 2002, section 123A.06, 4.31 subdivision 3, is amended to read: 4.32 Subd. 3. [HOURS OF INSTRUCTION EXEMPTION.] Notwithstanding 4.33 any law to the contrary, the center programs must be available 4.34 throughout the entire year.Pupils in a center may receive4.35instruction for more than or less than the daily number of hours4.36required by the rules of the commissioner of children, families,5.1and learning. However, a pupil must receive instruction each5.2year for at least the total number of instructional hours5.3required by statutes and rules.A center may petition the state 5.4 board under Minnesota Rules, part 3500.1000, for exemption from 5.5 other rules. 5.6 Sec. 5. Minnesota Statutes 2002, section 123A.18, 5.7 subdivision 2, is amended to read: 5.8 Subd. 2. [EXTENDED YEAR INSTRUCTION.] The agreement may 5.9 provide opportunities for pupils to receive instruction 5.10 throughout the entire year and for teachers to coordinate 5.11 educational opportunities and provide instruction throughout the 5.12 entire year.Pupils may receive instruction for more than or5.13less than the daily number of hours required by the rules of the5.14commissioner of children, families, and learning. However, the5.15pupil must receive instruction each year for at least the total5.16number of instructional hours required by statutes and rules.A 5.17 teacher who is employed for the extended year may develop, in 5.18 consultation with pupils and parents, individual educational 5.19 programs for not more than 125 pupils. 5.20 Sec. 6. Minnesota Statutes 2002, section 123A.73, 5.21 subdivision 3, is amended to read: 5.22 Subd. 3. [VOLUNTARY DISSOLUTION; REFERENDUM REVENUE.] As 5.23 of the effective date of the voluntary dissolution of a district 5.24 and its attachment to one or more existing districts pursuant to 5.25 section 123A.46, the authorization for all referendum revenues 5.26 previously approved by the voters of all affected districts for 5.27 those districts pursuant to section 126C.17, subdivision 9, or 5.28 its predecessor provision, is canceled. However, if all of the 5.29 territory of any independent district is included in the 5.30 enlarged district, and if the adjusted net tax capacity of 5.31 taxable property in that territory comprises 90 percent or more 5.32 of the adjusted net tax capacity of all taxable property in an 5.33 enlarged district, the enlarged district's referendum revenue 5.34 shall be determined as follows: 5.35If the referendum revenue previously approved in the5.36preexisting district is authorized as a tax rate, the referendum6.1revenue in the enlarged district is the tax rate times the net6.2tax capacity of the enlarged district. If referendum revenue6.3previously approved in the preexisting district is authorized as6.4revenue per resident pupil unit,The referendum revenue shall be 6.5 the revenue per resident marginal cost pupil unit times the 6.6 number of resident marginal cost pupil units in the enlarged 6.7 district.If referendum revenue in the preexisting district is6.8authorized both as a tax rate and as revenue per resident pupil6.9unit, the referendum revenue in the enlarged district shall be6.10the sum of both plus any referendum revenue in the preexisting6.11district authorized as a dollar amount.Any new referendum 6.12 revenue shall be authorized only after approval is granted by 6.13 the voters of the entire enlarged district in an election 6.14 pursuant to section 126C.17, subdivision 9. 6.15 Sec. 7. Minnesota Statutes 2002, section 123A.73, 6.16 subdivision 4, is amended to read: 6.17 Subd. 4. [CONSOLIDATION; MAXIMUM AUTHORIZED REFERENDUM 6.18 REVENUES.] As of the effective date of a consolidation pursuant 6.19 to section 123A.48, if the plan for consolidation so provides, 6.20 or if the plan for consolidation makes no provision concerning 6.21 referendum revenues, the authorization for all referendum 6.22 revenues previously approved by the voters of all affected 6.23 districts for those districts pursuant to section 126C.17, 6.24 subdivision 9, or its predecessor provision shall be 6.25 recalculated as provided in this subdivision. The referendum 6.26 revenue authorization for the newly created district shall be 6.27 thenet tax capacity raterevenue per resident marginal cost 6.28 pupil unit that would raise an amount equal to the combined 6.29 dollar amount of the referendum revenues authorized by each of 6.30 the component districts for the year preceding the 6.31 consolidation, unless the referendum revenue authorization of 6.32 the newly created district is subsequently modified pursuant to 6.33 section 126C.17, subdivision 9.If the referendum revenue6.34authorizations for each of the component districts were limited6.35to a specified number of years,The referendum revenue 6.36 authorization for the newly created district shall continue for 7.1 a period of time equal to the longest period authorized for any 7.2 component district.If the referendum revenue authorization of7.3any component district is not limited to a specified number of7.4years, the referendum revenue authorization for the newly7.5created district shall not be limited to a specified number of7.6years.7.7 Sec. 8. Minnesota Statutes 2002, section 123A.73, 7.8 subdivision 5, is amended to read: 7.9 Subd. 5. [ALTERNATIVE METHOD.] As of the effective date of 7.10 a consolidation pursuant to section 123A.48, if the plan for 7.11 consolidation so provides, the authorization for all referendum 7.12 revenues previously approved by the voters of all affected 7.13 districts for those districts pursuant to section 126C.17, 7.14 subdivision 9, or its predecessor provision shall be combined as 7.15 provided in this subdivision. The referendum revenue 7.16 authorization for the newly created district may be any 7.17 allowance per resident marginal cost pupil unit provided in the 7.18 plan for consolidation, but may not exceed the allowance per 7.19 resident marginal cost pupil unit that would raise an amount 7.20 equal to the combined dollar amount of the referendum revenues 7.21 authorized by each of the component districts for the year 7.22 preceding the consolidation.If the referendum revenue7.23authorizations for each of the component districts were limited7.24to a specified number of years,The referendum revenue 7.25 authorization for the newly created district shall continue for 7.26 a period of time equal to the longest period authorized for any 7.27 component district.If the referendum revenue authorization of7.28any component district is not limited to a specified number of7.29years, the referendum revenue authorization for the newly7.30created district shall not be limited to a specified number of7.31years.The referendum revenue authorization for the newly 7.32 created district may be modified pursuant to section 126C.17, 7.33 subdivision 9. 7.34 Sec. 9. Minnesota Statutes 2002, section 123B.51, 7.35 subdivision 3, is amended to read: 7.36 Subd. 3. [LEASEROOMS OR BUILDINGSREAL PROPERTY.] When 8.1 necessary, the board may leaserooms or buildingsreal property 8.2 for school purposes. 8.3 Sec. 10. Minnesota Statutes 2002, section 123B.51, 8.4 subdivision 4, is amended to read: 8.5 Subd. 4. [LEASE FOR NONSCHOOL PURPOSE.] (a) The board may 8.6 lease to any person, business, or organizationa schoolhouse8.7 real property that is not needed for school purposes, or part of 8.8a schoolhousethe property that is not needed for school 8.9 purposes if the board determines that leasing part ofa8.10schoolhousethe property does not interfere with the educational 8.11 programs taking placein the rest of the buildingon the 8.12 property. The board may charge and collect reasonable 8.13 consideration for the lease and may determine the terms and 8.14 conditions of the lease. 8.15 (b) In districts with outstanding bonds, the net proceeds 8.16 of the lease must be first deposited in the debt retirement fund 8.17 of the district in an amount sufficient to meet when due that 8.18 percentage of the principal and interest payments for 8.19 outstanding bonds that is ascribable to the payment of expenses 8.20 necessary and incidental to the construction or purchase of the 8.21 particular building or property that is leased. Any remaining 8.22 net proceeds in these districts may be deposited in either the 8.23 debt redemption fund or operating capitalexpenditure8.24fundaccount. All net proceeds of the lease in districts 8.25 without outstanding bonds shall be deposited in the operating 8.26 capitalexpenditure fundaccount of the district. 8.27 (c) The board may make capital improvements, including8.28fixtures, to a schoolhouse or a portion thereofto the real 8.29 property, not exceeding in cost the replacement value of 8.30 theschoolhouseproperty, to facilitate its rental, and the 8.31 lease ofanthe improvedschoolhouseproperty, or part of it, 8.32 shall provide for rentals which will recover the cost of the 8.33 improvements over the initial term of the lease. 8.34 Notwithstanding paragraph (b), the portion of the rentals 8.35 representing the cost of the improvements shall be deposited in 8.36 the operating capitalexpenditure fundaccount of the district 9.1 and the balance of the rentals shall be used as provided in 9.2 paragraph (b). 9.3 Sec. 11. Minnesota Statutes 2002, section 123B.57, 9.4 subdivision 4, is amended to read: 9.5 Subd. 4. [HEALTH AND SAFETY LEVY.] To receive health and 9.6 safety revenue, a district may levy an amount equal to the 9.7 district's health and safety revenue as defined in subdivision 3 9.8 multiplied by the lesser of one, or the ratio of the quotient 9.9 derived by dividing the adjusted net tax capacity of the 9.10 district for the year preceding the year the levy is certified 9.11 by the adjusted marginal cost pupil units in the district for 9.12 the school year to which the levy is attributable, 9.13 to$3,956$2,935. 9.14 Sec. 12. Minnesota Statutes 2002, section 123B.63, 9.15 subdivision 1, is amended to read: 9.16 Subdivision 1. [CREATION OF ADOWN PAYMENTCAPITAL PROJECT 9.17 REFERENDUM ACCOUNT.] A district may create adown payment9.18 capital project referendum account as a separate account in 9.19 its general fund or its building construction fund. All 9.20 proceeds from thedown paymentcapital project levy must be 9.21 deposited in the capitalexpenditure fund and transferred to9.22this accountproject referendum account in its general fund. 9.23 The portion of the proceeds to be used for building construction 9.24 must be transferred to the capital project referendum account in 9.25 its building construction fund. Interest income attributable to 9.26 thedown paymentcapital project referendum account must be 9.27 credited to the account. 9.28 Sec. 13. Minnesota Statutes 2002, section 123B.63, 9.29 subdivision 2, is amended to read: 9.30 Subd. 2. [USES OF THE ACCOUNT.] Money in thedown payment9.31 capital project referendum account must be usedas a down9.32paymentfor thefuturecosts of acquisition and betterment for a 9.33 project that has been reviewed under section 123B.71 and has 9.34 been approved according to subdivision 3. 9.35 Sec. 14. Minnesota Statutes 2002, section 123B.63, 9.36 subdivision 3, is amended to read: 10.1 Subd. 3. [FACILITIES DOWN PAYMENTCAPITAL PROJECT LEVY 10.2 REFERENDUM.] A district may levy the local tax rate approved by 10.3 a majority of the electors voting on the question to provide 10.4 fundsfor a down paymentfor an approved project. The election 10.5 must take place no more than five years before the estimated 10.6 date of commencement of the project. The referendum must be 10.7 held on a date set by the board. A referendum for a project not 10.8 receiving a positive review and comment by the commissioner 10.9 under section 123B.71 must be approved by at least 60 percent of 10.10 the voters at the election. The referendum may be called by the 10.11 school board and may be held: 10.12 (1) separately, before an election for the issuance of 10.13 obligations for the project under chapter 475; or 10.14 (2) in conjunction with an election for the issuance of 10.15 obligations for the project under chapter 475; or 10.16 (3) notwithstanding section 475.59, as a conjunctive 10.17 question authorizing both thedown paymentcapital project levy 10.18 and the issuance of obligations for the project under chapter 10.19 475. Any obligations authorized for a project may be issued 10.20 within five years of the date of the election. 10.21 The ballot must provide a general description of the 10.22 proposed project, state the estimated total cost of the project, 10.23 state whether the project has received a positive or negative 10.24 review and comment from the commissioner, state the maximum 10.25 amount of thedown paymentcapital project levy as a percentage 10.26 of net tax capacity, state the amount that will be raised by 10.27 that local tax rate in the first year it is to be levied, and 10.28 state the maximum number of years that the levy authorization 10.29 will apply. 10.30 The ballot must contain a textual portion with the 10.31 information required in this section and a question stating 10.32 substantially the following: 10.33 "Shall thedown paymentcapital project levy proposed by 10.34 the board of .......... School District No. .......... be 10.35 approved?" 10.36 If approved, the amount provided by the approved local tax 11.1 rate applied to the net tax capacity for the year preceding the 11.2 year the levy is certified may be certified for the number of 11.3 years approved. 11.4 In the event a conjunctive question proposes to authorize 11.5 both thedown paymentcapital project levy and the issuance of 11.6 obligations for the project, appropriate language authorizing 11.7 the issuance of obligations must also be included in the 11.8 question. 11.9 The district must notify the commissioner of the results of 11.10 the referendum. 11.11 Sec. 15. Minnesota Statutes 2002, section 123B.63, 11.12 subdivision 4, is amended to read: 11.13 Subd. 4. [EXCESSBUILDING CONSTRUCTION FUNDLEVY 11.14 PROCEEDS.] Any funds remaining in thedown paymentcapital 11.15 project referendum account that are not applied to the payment 11.16 of the costs of the approved project before its final completion 11.17 must be transferred to the district's debt redemption fund. 11.18 Sec. 16. Minnesota Statutes 2002, section 123B.91, 11.19 subdivision 1, is amended to read: 11.20 Subdivision 1. [COMPREHENSIVE POLICY.] (a) Each district 11.21 shalldevelop and implementmaintain a comprehensive, written 11.22 policy governing pupil transportation safety, including 11.23 transportation of nonpublic school students, when applicable. 11.24 The policy, at minimum, must contain: 11.25 (1) provisions for appropriate student bus safety training 11.26 under section 123B.90; 11.27 (2) rules governing student conduct on school buses and in 11.28 school bus loading and unloading areas; 11.29 (3) a statement of parent or guardian responsibilities 11.30 relating to school bus safety; 11.31 (4) provisions for notifying students and parents or 11.32 guardians of their responsibilities and the rules, including the 11.33 district's seat belt policy, if applicable; 11.34 (5) an intradistrict system for reporting school bus 11.35 accidents or misconduct and a system for dealing with local law 11.36 enforcement officials in cases of criminal conduct on a school 12.1 bus; 12.2 (6) a discipline policy to address violations of school bus 12.3 safety rules, including procedures for revoking a student's bus 12.4 riding privileges in cases of serious or repeated misconduct; 12.5 (7) a system for integrating school bus misconduct records 12.6 with other discipline records; 12.7 (8) a statement of bus driver duties; 12.8 (9) where applicable, provisions governing bus monitor 12.9 qualifications, training, and duties; 12.10 (10) rules governing the use and maintenance of type III 12.11 vehicles, drivers of type III vehicles, qualifications to drive 12.12 a type III vehicle, qualifications for a type III vehicle, and 12.13 the circumstances under which a student may be transported in a 12.14 type III vehicle; 12.15 (11) operating rules and procedures; 12.16 (12) provisions for annual bus driver in-service training 12.17 and evaluation; 12.18 (13) emergency procedures; 12.19 (14) a system for maintaining and inspecting equipment; 12.20 (15) requirements of the school district, if any, that 12.21 exceed state law minimum requirements for school bus operations; 12.22 and 12.23 (16) requirements for basic first aid training, which must 12.24 include the Heimlich maneuver and procedures for dealing with 12.25 obstructed airways, shock, bleeding, and seizures. 12.26 (b)Districts are encouraged to use the model policy12.27developed by the Minnesota school boards association, the12.28department of public safety, and the department of children,12.29families, and learning, as well as the current edition of the12.30"National Standards for School Transportation," in developing12.31safety policies.Each district shall review its policy annually 12.32 to ensure that it conforms to law. 12.33 Sec. 17. Minnesota Statutes 2002, section 123B.92, 12.34 subdivision 1, is amended to read: 12.35 Subdivision 1. [DEFINITIONS.] For purposes of this section 12.36 and section 125A.76, the terms defined in this subdivision have 13.1 the meanings given to them. 13.2 (a) "Actual expenditure per pupil transported in the 13.3 regular and excess transportation categories" means the quotient 13.4 obtained by dividing: 13.5 (1) the sum of: 13.6 (i) all expenditures for transportation in the regular 13.7 category, as defined in paragraph (b), clause (1), and the 13.8 excess category, as defined in paragraph (b), clause (2), plus 13.9 (ii) an amount equal to one year's depreciation on the 13.10 district's school bus fleet and mobile units computed on a 13.11 straight line basis at the rate of 15 percent per year for 13.12 districts operating a program under section 124D.128 for grades 13.13 1 to 12 for all students in the district and 12-1/2 percent per 13.14 year for other districts of the cost of the fleet, plus 13.15 (iii) an amount equal to one year's depreciation on the 13.16 district's type three school buses, as defined in section 13.17 169.01, subdivision 6, clause (5), which must be used a majority 13.18 of the time for pupil transportation purposes, computed on a 13.19 straight line basis at the rate of 20 percent per year of the 13.20 cost of the type three school buses by: 13.21 (2) the number of pupils eligible for transportation in the 13.22 regular category, as defined in paragraph (b), clause (1), and 13.23 the excess category, as defined in paragraph (b), clause (2). 13.24 (b) "Transportation category" means a category of 13.25 transportation service provided to pupils as follows: 13.26 (1) Regular transportation is: 13.27 (i) transportation to and from school during the regular 13.28 school year for resident elementary pupils residing one mile or 13.29 more from the public or nonpublic school they attend, and 13.30 resident secondary pupils residing two miles or more from the 13.31 public or nonpublic school they attend, excluding desegregation 13.32 transportation and noon kindergarten transportation; but with 13.33 respect to transportation of pupils to and from nonpublic 13.34 schools, only to the extent permitted by sections 123B.84 to 13.35 123B.87; 13.36 (ii) transportation of resident pupils to and from language 14.1 immersion programs; 14.2 (iii) transportation of a pupil who is a custodial parent 14.3 and that pupil's child between the pupil's home and the child 14.4 care provider and between the provider and the school, if the 14.5 home and provider are within the attendance area of the school; 14.6and14.7 (iv) transportation to and from or board and lodging in 14.8 another district, of resident pupils of a district without a 14.9 secondary school; and 14.10 (v) transportation to and from school during the regular 14.11 school year required under subdivision 3 for nonresident 14.12 elementary pupils when the distance from the attendance area 14.13 border to the public school is one mile or more, and for 14.14 nonresident secondary pupils when the distance from the 14.15 attendance area border to the public school is two miles or 14.16 more, excluding desegregation transportation and noon 14.17 kindergarten transportation. 14.18 For the purposes of this paragraph, a district may 14.19 designate a licensed day care facility, respite care facility, 14.20 the residence of a relative, or the residence of a person chosen 14.21 by the pupil's parent or guardian as the home of a pupil for 14.22 part or all of the day, if requested by the pupil's parent or 14.23 guardian, and if that facility or residence is within the 14.24 attendance area of the school the pupil attends. 14.25 (2) Excess transportation is: 14.26 (i) transportation to and from school during the regular 14.27 school year for resident secondary pupils residing at least one 14.28 mile but less than two miles from the public or nonpublic school 14.29 they attend, and transportation to and from school for resident 14.30 pupils residing less than one mile from school who are 14.31 transported because of extraordinary traffic, drug, or crime 14.32 hazards; and 14.33 (ii) transportation to and from school during the regular 14.34 school year required under subdivision 3 for nonresident 14.35 secondary pupils when the distance from the attendance area 14.36 border to the school is at least one mile but less than two 15.1 miles from the public school they attend, and for nonresident 15.2 pupils when the distance from the attendance area border to the 15.3 school is less than one mile from the school and who are 15.4 transported because of extraordinary traffic, drug, or crime 15.5 hazards. 15.6 (3) Desegregation transportation is transportation within 15.7 and outside of the district during the regular school year of 15.8 pupils to and from schools located outside their normal 15.9 attendance areas under a plan for desegregation mandated by the 15.10 commissioner or under court order. 15.11 (4) "Transportation services for pupils with disabilities" 15.12 is: 15.13 (i) transportation of pupils with disabilities who cannot 15.14 be transported on a regular school bus between home or a respite 15.15 care facility and school; 15.16 (ii) necessary transportation of pupils with disabilities 15.17 from home or from school to other buildings, including centers 15.18 such as developmental achievement centers, hospitals, and 15.19 treatment centers where special instruction or services required 15.20 by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 15.21 are provided, within or outside the district where services are 15.22 provided; 15.23 (iii) necessary transportation for resident pupils with 15.24 disabilities required by sections 125A.12, and 125A.26 to 15.25 125A.48; 15.26 (iv) board and lodging for pupils with disabilities in a 15.27 district maintaining special classes; 15.28 (v) transportation from one educational facility to another 15.29 within the district for resident pupils enrolled on a 15.30 shared-time basis in educational programs, and necessary 15.31 transportation required by sections 125A.18, and 125A.26 to 15.32 125A.48, for resident pupils with disabilities who are provided 15.33 special instruction and services on a shared-time basis; 15.34 (vi) transportation for resident pupils with disabilities 15.35 to and from board and lodging facilities when the pupil is 15.36 boarded and lodged for educational purposes; and 16.1 (vii) services described in clauses (i) to (vi), when 16.2 provided for pupils with disabilities in conjunction with a 16.3 summer instructional program that relates to the pupil's 16.4 individual education plan or in conjunction with a learning year 16.5 program established under section 124D.128. 16.6 (5) "Nonpublic nonregular transportation" is: 16.7 (i) transportation from one educational facility to another 16.8 within the district for resident pupils enrolled on a 16.9 shared-time basis in educational programs, excluding 16.10 transportation for nonpublic pupils with disabilities under 16.11 clause (4); 16.12 (ii) transportation within district boundaries between a 16.13 nonpublic school and a public school or a neutral site for 16.14 nonpublic school pupils who are provided pupil support services 16.15 pursuant to section 123B.44; and 16.16 (iii) late transportation home from school or between 16.17 schools within a district for nonpublic school pupils involved 16.18 in after-school activities. 16.19 (c) "Mobile unit" means a vehicle or trailer designed to 16.20 provide facilities for educational programs and services, 16.21 including diagnostic testing, guidance and counseling services, 16.22 and health services. A mobile unit located off nonpublic school 16.23 premises is a neutral site as defined in section 123B.41, 16.24 subdivision 13. 16.25 Sec. 18. Minnesota Statutes 2002, section 123B.92, 16.26 subdivision 3, is amended to read: 16.27 Subd. 3. [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 16.28 that enrolls nonresident pupils in programs under sections 16.29 124D.03, 124D.06,124D.07,124D.08, 123A.05 to 123A.08, and 16.30 124D.68, must provide authorized transportation to the pupil 16.31 within the attendance area for the school that the pupil attends 16.32 at the same level of service that is provided to resident pupils 16.33 within the attendance area. The resident district need not 16.34 provide or pay for transportation between the pupil's residence 16.35 and the district's border. 16.36 Sec. 19. Minnesota Statutes 2002, section 124D.09, 17.1 subdivision 9, is amended to read: 17.2 Subd. 9. [ENROLLMENT PRIORITY.] A post-secondary 17.3 institution shall give priority to its post-secondary students 17.4 when enrolling 11th and 12th grade pupils in its courses. A 17.5 post-secondary institution may provide information about its 17.6 programs to a secondary school or to a pupil or parent, but it 17.7 may not advertise or otherwise recruit or solicit the 17.8 participationon financial grounds,of secondary pupils to 17.9 enroll in its programs on financial grounds. An institution 17.10 must not enroll secondary pupils, for post-secondary enrollment 17.11 options purposes, in remedial, developmental, or other courses 17.12 that are not college level. Once a pupil has been enrolled in a 17.13 post-secondary course under this section, the pupil shall not be 17.14 displaced by another student. 17.15 Sec. 20. Minnesota Statutes 2002, section 124D.09, 17.16 subdivision 10, is amended to read: 17.17 Subd. 10. [COURSES ACCORDING TO AGREEMENTS.] An eligible 17.18 pupil, according to subdivision45, may enroll in a 17.19 nonsectarian course taught by a secondary teacher or a 17.20 post-secondary faculty member and offered at a secondary school, 17.21 or another location, according to an agreement between a public 17.22 school board and the governing body of an eligible public 17.23 post-secondary system or an eligible private post-secondary 17.24 institution, as defined in subdivision 3. All provisions of 17.25 this section shall apply to a pupil, public school board, 17.26 district, and the governing body of a post-secondary 17.27 institution, except as otherwise provided. 17.28 Sec. 21. Minnesota Statutes 2002, section 124D.09, 17.29 subdivision 16, is amended to read: 17.30 Subd. 16. [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 17.31 ACCORDING TO AGREEMENTS.] (a) The agreement between a board and 17.32 the governing body of a public post-secondary system or private 17.33 post-secondary institution shall set forth the payment amounts 17.34 and arrangements, if any, from the board to the post-secondary 17.35 institution. No payments shall be made by the department 17.36 according to subdivision1413 or 15. For the purpose of 18.1 computing state aids for a district, a pupil enrolled according 18.2 to subdivision 10 shall be counted in the average daily 18.3 membership of the district as though the pupil were enrolled in 18.4 a secondary course that is not offered in connection with an 18.5 agreement. Nothing in this subdivision shall be construed to 18.6 prohibit a public post-secondary system or private 18.7 post-secondary institution from receiving additional state 18.8 funding that may be available under any other law. 18.9 (b) If a course is provided under subdivision 10, offered 18.10 at a secondary school, and taught by a secondary teacher, the 18.11 post-secondary system or institution must not require a payment 18.12 from the school board that exceeds the cost to the 18.13 post-secondary institution that is directly attributable to 18.14 providing that course. 18.15 Sec. 22. Minnesota Statutes 2002, section 124D.11, 18.16 subdivision 1, is amended to read: 18.17 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 18.18 education revenue must be paid to a charter school as though it 18.19 were a district. The general education revenue for each 18.20 adjusted marginal cost pupil unit is the state average general 18.21 education revenue per pupil unit, plus the referendum 18.22 equalization aid allowance in the pupil's district of residence, 18.23 minus an amount equal to the product of the formula allowance 18.24 according to section 126C.10, subdivision 2, times .0485, 18.25 calculated without basic skills revenue, and transportation 18.26 sparsity revenue,and the transportation portion of the18.27transition revenue adjustment,plus basic skills revenue as 18.28 though the school were a school district. 18.29 (b) Notwithstanding paragraph (a), for charter schools in 18.30 the first year of operation, general education revenue shall be 18.31 computed using the number of adjusted pupil units in the current 18.32 fiscal year. 18.33 Sec. 23. Minnesota Statutes 2002, section 124D.11, 18.34 subdivision 2, is amended to read: 18.35 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 18.36 must be paid to a charter school that provides transportation 19.1 services according to section 124D.10, subdivision 16, according 19.2 to this subdivision. Transportation aid shall equal 19.3 transportation revenue. 19.4 In addition to the revenue under subdivision 1, a charter 19.5 school providing transportation services must receive general 19.6 education aid for each pupil unit equal to the sum of an amount 19.7 equal to the product of the formula allowance according to 19.8 section 126C.10, subdivision 2, times .0485, plus the 19.9 transportation sparsity allowance for the school district in 19.10 which the charter school is located, plus the transportation19.11transition allowance for the district in which the charter19.12school is located. 19.13 Sec. 24. Minnesota Statutes 2002, section 124D.135, 19.14 subdivision 8, is amended to read: 19.15 Subd. 8. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 19.16 the average balance, during the most recent three-year period in 19.17 a district's early childhood family education reserve account on 19.18 June 30 of each year, adjusted for any prior reductions under 19.19 this subdivision, must not be greater than 25 percent of the sum 19.20 of the district's maximum early childhood family education 19.21 annual revenue under subdivision 1, excluding adjustments under 19.22 this subdivision, plus any fees, grants, or other revenue 19.23 received by the district for early childhood family education 19.24 programs for the prior year. 19.25 (b) If a district's adjusted average early childhood family 19.26 education reserve over the three-year period is in excess of2519.27percent of the prior year annual revenuethe limit under 19.28 paragraph (a), the district's early childhood family education 19.29 state aid and levy authority for the current school year must be 19.30 reduced by the lesser of the current year revenue under 19.31 subdivision 1 or the excess reserve amount. The aid reduction 19.32 equals the product of the lesser of the excess reserve amount or 19.33 the current year revenue under subdivision 1 times the ratio of 19.34 the district's aid for thepriorcurrent year under subdivision 19.35 4 to the district's revenue for thepriorcurrent year under 19.36 subdivision 1. The levy reduction equals the excess reserve 20.1 amount minus the aid reduction. For purposes of this 20.2 subdivision, if a district does not levy the entire amount 20.3 permitted under subdivision 3, the revenue under subdivision 1 20.4 must be reduced in proportion to the actual amount levied. The 20.5 commissioner must reallocate aid and levy reduced under this 20.6 subdivision to other eligible early childhood family education 20.7 programs in proportion to each district's revenue for theprior20.8 current year under subdivision 1. 20.9(b)(c) Notwithstanding paragraph (a), for fiscal year 20.10 2003, the excess reserve amount shall be computed using the 20.11 balance in a district's early childhood family education reserve 20.12 account on June 30, 2002. For fiscal year 2004, the excess 20.13 reserve amount shall be computed using the adjusted average 20.14 balance in a district's early childhood family education reserve 20.15 account on June 30, 2002, and June 30, 2003. 20.16 [EFFECTIVE DATE.] This section is effective for revenue for 20.17 fiscal year 2003. 20.18 Sec. 25. Minnesota Statutes 2002, section 124D.16, 20.19 subdivision 6, is amended to read: 20.20 Subd. 6. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 20.21 the average balance, during the most recent three-year period, 20.22 in a district's school readiness reserve account on June 30 of 20.23 each year, adjusted for any prior reductions under this 20.24 subdivision, must not be greater than 25 percent of the 20.25 district's school readiness annual revenue for the prior year 20.26 excluding adjustments under this subdivision. 20.27 (b) If a district's adjusted average school readiness 20.28 reserve over the three-year period is in excess of25 percent of20.29the prior year annual revenuethe limit under paragraph (a), the 20.30 district's current year school readiness state aid must be 20.31 reduced by the lesser of the excess reserve amount or the 20.32 current year aid. The commissioner must reallocate aid reduced 20.33 under this subdivision to other eligible school readiness 20.34 programs in proportion to each district's aid for theprior20.35 current year under subdivision 2. 20.36(b)(c) Notwithstanding paragraph (a), for fiscal year 21.1 2003, the excess reserve amount shall be computed using the 21.2 balance in a district's school readiness reserve account on June 21.3 30, 2002. For fiscal year 2004, the excess reserve amount shall 21.4 be computed using the adjusted average balance in a district's 21.5 school readiness reserve account on June 30, 2002, and June 30, 21.6 2003. 21.7 [EFFECTIVE DATE.] This section is effective for revenue for 21.8 fiscal year 2003. 21.9 Sec. 26. Minnesota Statutes 2002, section 124D.19, 21.10 subdivision 3, is amended to read: 21.11 Subd. 3. [COMMUNITY EDUCATION DIRECTOR.] (a) Except as 21.12 provided under paragraphs (b) and (c), each board shall employ a 21.13 licensed community education director. The board shall submit 21.14 the name of the person who is serving as director of community 21.15 education under this section on the district's annual community 21.16 education report to the commissioner. 21.17 (b) A board may apply to thecommissionerMinnesota board 21.18 of school administrators under Minnesota Rules, part 3512.3500, 21.19 subpart 9, for authority to use an individual who is not 21.20 licensed as a community education director. 21.21 (c) A board of a district with a total population of 2,000 21.22 or less may identify an employee who holds a valid Minnesota 21.23 principal or superintendent license under Minnesota Rules, 21.24 chapter 3512, to serve as director of community education. To 21.25 be eligible for an exception under this paragraph, the board 21.26 shall certify in writing to the commissioner that the district 21.27 has not placed a licensed director of community education on 21.28 unrequested leave. 21.29 Sec. 27. Minnesota Statutes 2002, section 124D.20, 21.30 subdivision 5, is amended to read: 21.31 Subd. 5. [TOTAL COMMUNITY EDUCATION LEVY.] To obtain total 21.32 community education revenue, a district operating a youth 21.33 after-school enrichment program under section 124D.19, 21.34 subdivision 12, may levy the amount raised by a maximum tax rate 21.35 of.74311.0017 percent times the adjusted net tax capacity of 21.36 the district. To obtain total community education revenue, a 22.1 district not operating a youth after-school enrichment program 22.2 may levy the amount raised by a maximum tax rate of.4795.6463 22.3 percent times the adjusted net tax capacity of the district. If 22.4 the amount of the total community education levy would exceed 22.5 the total community education revenue, the total community 22.6 education levy shall be determined according to subdivision 6. 22.7 Sec. 28. Minnesota Statutes 2002, section 124D.22, 22.8 subdivision 3, is amended to read: 22.9 Subd. 3. [SCHOOL-AGE CARE LEVY.] To obtain school-age care 22.10 revenue, a school district may levy an amount equal to the 22.11 district's school-age care revenue as defined in subdivision 2 22.12 multiplied by the lesser of one, or the ratio of the quotient 22.13 derived by dividing the adjusted net tax capacity of the 22.14 district for the year before the year the levy is certified by 22.15 the resident pupil units in the district for the school year to 22.16 which the levy is attributable, to$3,280$2,433. 22.17 Sec. 29. Minnesota Statutes 2002, section 124D.454, 22.18 subdivision 2, is amended to read: 22.19 Subd. 2. [DEFINITIONS.] For the purposes of this section, 22.20 the definitions in this subdivision apply. 22.21 (a) "Base year"for fiscal year 1996 means fiscal year 1995.22.22Base year for later fiscal yearsmeans the second fiscal year 22.23 preceding the fiscal year for which aid will be paid. 22.24 (b) "Basic revenue" has the meaning given it in section 22.25 126C.10, subdivision 2. For the purposes of computing basic 22.26 revenue pursuant to this section, each child with a disability 22.27 shall be counted as prescribed in section 126C.05, subdivision 1. 22.28 (c) "Average daily membership" has the meaning given it in 22.29 section 126C.05. 22.30 (d) "Program growth factor" means 1.00 for fiscal year 1998 22.31 and later. 22.32 (e) "Aid percentage factor" means60 percent for fiscal22.33year 1996, 70 percent for fiscal year 1997, 80 percent for22.34fiscal year 1998, 90 percent for fiscal year 1999, and100 22.35 percent for fiscal year 2000 and later. 22.36 Sec. 30. Minnesota Statutes 2002, section 124D.454, 23.1 subdivision 8, is amended to read: 23.2 Subd. 8. [USE OF AID.] The aid provided under this section 23.3 shall be paid only for services rendered or for the costs which 23.4 are incurred according to this section for transition programs 23.5 for children with a disability which are approved by the 23.6 commissioner of children, families, and learning and operated in 23.7 accordance with rules promulgated by the commissioner. These 23.8 rules shall be subject to the restrictions provided insection23.9124D.453,subdivision612. The procedure for application for 23.10 approval of these programs shall be as provided in section 23.11 125A.75, subdivisions 4 and 6, and the application review 23.12 process shall be conducted by theofficedivision oflifework23.13developmentfederal programs in the department. 23.14 Sec. 31. Minnesota Statutes 2002, section 124D.454, 23.15 subdivision 10, is amended to read: 23.16 Subd. 10. [EXCLUSION.] A district shall not receive aid 23.17 pursuant to section124D.453 or125A.76 for salaries, supplies, 23.18 travel or equipment for which the district receives aid pursuant 23.19 to this section. 23.20 Sec. 32. Minnesota Statutes 2002, section 124D.454, is 23.21 amended by adding a subdivision to read: 23.22 Subd. 12. [COMPLIANCE WITH RULES.] Aid must be paid under 23.23 this section only for services rendered or for costs incurred in 23.24 career and technical education programs approved by the 23.25 commissioner and operated in accordance with rules promulgated 23.26 by the commissioner. This aid shall be paid only for services 23.27 rendered and for costs incurred by essential, licensed personnel 23.28 who meet the requirements for licensure pursuant to the rules of 23.29 the Minnesota board of teaching. Licensed personnel means 23.30 persons holding a valid career and technical license issued by 23.31 the commissioner. If an average of five or fewer secondary 23.32 full-time equivalent students are enrolled per teacher in an 23.33 approved post-secondary program at intermediate district No. 23.34 287, 916, or 917, licensed personnel means persons holding a 23.35 valid vocational license issued by the commissioner or the board 23.36 of trustees of the Minnesota state colleges and universities. 24.1 Notwithstanding section 127A.42, the commissioner may modify or 24.2 withdraw the program or aid approval and withhold aid under this 24.3 section without proceeding under section 127A.42 at any time. 24.4 To do so, the commissioner must determine that the program does 24.5 not comply with rules of the department of children, families, 24.6 and learning or that any facts concerning the program or its 24.7 budget differ from the facts in the district's approved 24.8 application. 24.9 Sec. 33. Minnesota Statutes 2002, section 124D.65, 24.10 subdivision 5, is amended to read: 24.11 Subd. 5. [SCHOOL DISTRICT LEP REVENUE.] (a)A school24.12district's limited English proficiency programs revenue for24.13fiscal year 2000 equals the state total limited English24.14proficiency programs revenue, minus the amount determined under24.15paragraph (b), times the ratio of the district's adjusted24.16limited English proficiency programs base revenue to the state24.17total adjusted limited English proficiency programs base revenue.24.18(b) Notwithstanding paragraph (a), if the limited English24.19proficiency programs base revenue for a district equals zero,24.20the limited English proficiency programs revenue equals the sum24.21of the following amounts, computed using current year data:24.22(1) 68 percent of the salary of one full-time equivalent24.23teacher for each 40 pupils of limited English proficiency24.24enrolled, or 68 percent of the salary of one-half of a full-time24.25teacher in a district with 20 or fewer pupils of limited English24.26proficiency enrolled; and24.27(2) for supplies and equipment purchased or rented for use24.28in the instruction of pupils of limited English proficiency an24.29amount equal to 47 percent of the sum actually spent by the24.30district but not to exceed an average of $47 in any one school24.31year for each pupil of limited English proficiency receiving24.32instruction.24.33(c)A district's limited English proficiency programs 24.34 revenue for fiscal year 2001 and later equals the product of 24.35 $584 times the greater of 20 or the number of adjusted marginal 24.36 cost pupils of limited English proficiency enrolled in the 25.1 district during the current fiscal year. 25.2(d)(b) A pupil ceases to generate state limited English 25.3 proficiency aid in the school year following the school year in 25.4 which the pupil attains the state cutoff score on a 25.5 commissioner-provided assessment that measures the pupil's 25.6 emerging academic English. 25.7 Sec. 34. Minnesota Statutes 2002, section 124D.86, 25.8 subdivision 1a, is amended to read: 25.9 Subd. 1a. [BUDGET APPROVAL PROCESS.] Each year before a 25.10 district receives any revenue under subdivision 3, clause 25.11 (3), (4), or (5), the district must submit to the department of 25.12 children, families, and learning, for its review and approval a 25.13 budget detailing the costs of the desegregation/integration plan 25.14 filed under Minnesota Rules, parts 3535.0100 to 3535.0180. 25.15 Notwithstanding chapter 14, the department may develop criteria 25.16 for budget approval. The department shall consult with the 25.17 desegregation advisory board in developing these criteria. The 25.18 criteria developed by the department should address, at a 25.19 minimum, the following: 25.20 (1) budget items cannot be approved unless they are part of 25.21 any overall desegregation plan approved by the district for 25.22 isolated sites or by the multidistrict collaboration council and 25.23 participation individual members; 25.24 (2) the budget must indicate how revenue expenditures will 25.25 be used specifically to support increased opportunities for 25.26 interracial contact; 25.27 (3) components of the budget to be considered by the 25.28 department, including staffing, curriculum, transportation, 25.29 facilities, materials, and equipment and reasonable planning 25.30 costs, as determined by the department; and 25.31 (4) if plans are proposed to enhance existing programs, the 25.32 total budget being appropriated to the program must be included, 25.33 indicating what part is to be funded using integration revenue 25.34 and what part is to be funded using other revenues. 25.35 [EFFECTIVE DATE.] This section is effective retroactively 25.36 for revenue for fiscal year 2002 and later. 26.1 Sec. 35. Minnesota Statutes 2002, section 124D.86, 26.2 subdivision 3, is amended to read: 26.3 Subd. 3. [INTEGRATION REVENUE.] Integration revenue equals 26.4 the following amounts: 26.5 (1) for independent school district No. 709, Duluth, $207 26.6 times the adjusted pupil units for the school year; 26.7 (2) for independent school district No. 625, St. Paul, $446 26.8 times the adjusted pupil units for the school year; 26.9 (3) for special school district No. 1, Minneapolis, the sum 26.10 of $446 times the adjusted pupil units for the school year and 26.11 an additional $35 times the adjusted pupil units for the school 26.12 year that is provided entirely through a local levy; 26.13 (4) for a district not listed in clause (1), (2), or (3), 26.14 that must implement a plan under Minnesota Rules, parts 26.15 3535.0100 to 3535.0180, where the district's enrollment of 26.16 protected students, as defined under Minnesota Rules, part 26.17 3535.0110, exceeds 15 percent, the lesser of (i) the actual cost 26.18 of implementing the plan during the fiscal year minus the aid 26.19 received under subdivision 6, or (ii) $130 times the adjusted 26.20 pupil units for the school year; 26.21 (5) for a district not listed in clause (1), (2), (3), or 26.22 (4), that is required to implement a plan according to the 26.23 requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 26.24 the lesser of 26.25 (i) the actual cost of implementing the plan during the 26.26 fiscal year minus the aid received under subdivision 6, or 26.27 (ii) $93 times the adjusted pupil units for the school year. 26.28 Any money received by districts in clauses (1)to (4)and 26.29 (2) which exceeds the amount received in fiscal year 2000 shall 26.30 be subject to the budget requirements in subdivision 1a; and 26.31 (6) for a member district of a multidistrict integration 26.32 collaborative that files a plan with the commissioner, but is 26.33 not contiguous to a racially isolated district, integration 26.34 revenue equals the amount defined in clause (5). 26.35 [EFFECTIVE DATE.] This section is effective retroactively 26.36 for fiscal year 2002 and later. 27.1 Sec. 36. Minnesota Statutes 2002, section 124D.86, 27.2 subdivision 6, is amended to read: 27.3 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 27.4 integration aid under subdivision 5 must be adjusted for each 27.5 pupil residing in a district eligible for integration revenue 27.6 under subdivision 3, clause (1),or (2),or (3),and attending a 27.7 nonresident district under sections 123A.05 to 123A.08, 124D.03, 27.8 124D.06, 124D.07, and 124D.08, that is not eligible for 27.9 integration revenue under subdivision 3, clause (1),or (2),or27.10(3),and has implemented a plan under Minnesota Rules, parts 27.11 3535.0100 to 3535.0180, if the enrollment of the pupil in the 27.12 nonresident district contributes to desegregation or integration 27.13 purposes. The adjustments must be made according to this 27.14 subdivision. 27.15 (b) Aid paid to a district serving nonresidents must be 27.16 increased by an amount equal to the revenue per pupil unit of 27.17 the resident district under subdivision 3, clause 27.18 (1),or (2),or (3),minus the revenue attributable to the pupil 27.19 in the nonresident district under subdivision 3, 27.20 clause (3), (4), or (5), for the time the pupil is enrolled in 27.21 the nonresident district. 27.22 [EFFECTIVE DATE.] This section is effective retroactively 27.23 for fiscal year 2002 and later. 27.24 Sec. 37. Minnesota Statutes 2002, section 125A.21, 27.25 subdivision 2, is amended to read: 27.26 Subd. 2. [THIRD PARTY REIMBURSEMENT.] (a) Beginning July 27.27 1, 2000, districts shall seek reimbursement from insurers and 27.28 similar third parties for the cost of services provided by the 27.29 district whenever the services provided by the district are 27.30 otherwise covered by the child's health coverage. Districts 27.31 shall request, but may not require, the child's family to 27.32 provide information about the child's health coverage when a 27.33 child with a disability begins to receive services from the 27.34 district of a type that may be reimbursable, and shall request, 27.35 but may not require, updated information after that as needed. 27.36 (b) For children enrolled in medical assistance under 28.1 chapter 256B or MinnesotaCare under chapter 256L who have no 28.2 other health coverage, a district shall provide an initial 28.3 written notice to the enrolled child's parent or legal 28.4 representative of its intent to seek reimbursement from medical 28.5 assistance or MinnesotaCare for the individual education plan 28.6 health-related services provided by the district. 28.7 (c) The district shall give the parent or legal 28.8 representative annual written notice of: 28.9 (1) the district's intent to seek reimbursement from 28.10 medical assistance or MinnesotaCare for individual education 28.11 plan health-related services provided by the district; 28.12 (2) the right of the parent or legal representative to 28.13 request a copy of all records concerning individual education 28.14 plan health-related services disclosed by the district to any 28.15 third party; and 28.16 (3) the right of the parent or legal representative to 28.17 withdraw consent for disclosure of a child's records at any time 28.18 without consequence. 28.19 The written notice shall be provided as part of the written 28.20 notice required by Code of Federal Regulations, title 34, 28.21 section300.503300.504. 28.22 (d) In order to access the private health care coverage of 28.23 a child who is covered by private health care coverage in whole 28.24 or in part, a district must: 28.25 (1) obtain annual written informed consent from the parent 28.26 or legal representative, in compliance with subdivision 5; and 28.27 (2) inform the parent or legal representative that a 28.28 refusal to permit the district or state Medicaid agency to 28.29 access their private health care coverage does not relieve the 28.30 district of its responsibility to provide all services necessary 28.31 to provide free and appropriate public education at no cost to 28.32 the parent or legal representative. 28.33 (e) If the commissioner of human services obtains federal 28.34 approval to exempt covered individual education plan 28.35 health-related services from the requirement that private health 28.36 care coverage refuse payment before medical assistance may be 29.1 billed, paragraphs (b), (c), and (d) shall also apply to 29.2 students with a combination of private health care coverage and 29.3 health care coverage through medical assistance or MinnesotaCare. 29.4 (f) In the event that Congress or any federal agency or the 29.5 Minnesota legislature or any state agency establishes lifetime 29.6 limits, limits for any health care services, cost-sharing 29.7 provisions, or otherwise provides that individual education plan 29.8 health-related services impact benefits for persons enrolled in 29.9 medical assistance or MinnesotaCare, the amendments to this 29.10 subdivision adopted in 2002 are repealed on the effective date 29.11 of any federal or state law or regulation that imposes the 29.12 limits. In that event, districts must obtain informed consent 29.13 consistent with this subdivision as it existed prior to the 2002 29.14 amendments and subdivision 5, before seeking reimbursement for 29.15 children enrolled in medical assistance under chapter 256B or 29.16 MinnesotaCare under chapter 256L who have no other health care 29.17 coverage. 29.18 Sec. 38. Minnesota Statutes 2002, section 126C.10, 29.19 subdivision 6, is amended to read: 29.20 Subd. 6. [DEFINITIONS.] The definitions in this 29.21 subdivision apply only to subdivisions 7 and 8. 29.22 (a) "High school" means a secondary school that has pupils 29.23 enrolled in at least the 10th, 11th, and 12th grades.If there29.24is no secondary school in the district that has pupils enrolled29.25in at least the 10th, 11th, and 12th grades, and the school is29.26at least 19 miles from the next nearest school, the commissioner29.27must designate one school in the district as a high school for29.28the purposes of this section.29.29 (b) "Secondary average daily membership" means, for a 29.30 district that has only one high school, the average daily 29.31 membership of pupils served in grades 7 through 12. For a 29.32 district that has more than one high school, "secondary average 29.33 daily membership" for each high school means the product of the 29.34 average daily membership of pupils served in grades 7 through 12 29.35 in the high school, times the ratio of six to the number of 29.36 grades in the high school. 30.1 (c) "Attendance area" means the total surface area of the 30.2 district, in square miles, divided by the number of high schools 30.3 in the district. For a district that does not operate a high 30.4 school and is less than 19 miles from the nearest operating high 30.5 school, the attendance area equals zero. 30.6 (d) "Isolation index" for a high school means the square 30.7 root of 55 percent of the attendance area plus the distance in 30.8 miles, according to the usually traveled routes, between the 30.9 high school and the nearest high school. For a district in 30.10 which there is located land defined in section 84A.01, 84A.20, 30.11 or 84A.31, the distance in miles is the sum of: 30.12 (1) the square root of one-half of the attendance area; and 30.13 (2) the distance from the border of the district to the 30.14 nearest high school. 30.15 (e) "Qualifying high school" means a high school that has 30.16 an isolation index greater than 23 and that has secondary 30.17 average daily membership of less than 400. 30.18 (f) "Qualifying elementary school" means an elementary 30.19 school that is located 19 miles or more from the nearest 30.20 elementary school or from the nearest elementary school within 30.21 the district and, in either case, has an elementary average 30.22 daily membership of an average of 20 or fewer per grade. 30.23 (g) "Elementary average daily membership" means, for a 30.24 district that has only one elementary school, the average daily 30.25 membership of pupils served in kindergarten through grade 6. 30.26 For a district that has more than one elementary school, 30.27 "average daily membership" for each school means the average 30.28 daily membership of pupils served in kindergarten through grade 30.29 6 multiplied by the ratio of seven to the number of grades in 30.30 the elementary school. 30.31 Sec. 39. Minnesota Statutes 2002, section 126C.15, 30.32 subdivision 1, is amended to read: 30.33 Subdivision 1. [USE OF THE REVENUE.] The basic skills 30.34 revenue under section 126C.10, subdivision 4,and the portion of30.35the transition revenue adjustment under section 126C.10,30.36subdivision 20, attributable to the compensatory transition31.1allowance under section 126C.10, subdivision 19, paragraph (b),31.2 must be reserved and used to meet the educational needs of 31.3 pupils who enroll under-prepared to learn and whose progress 31.4 toward meeting state or local content or performance standards 31.5 is below the level that is appropriate for learners of their 31.6 age. Any of the following may be provided to meet these 31.7 learners' needs: 31.8 (1) direct instructional services under the assurance of 31.9 mastery program according to section 124D.66; 31.10 (2) remedial instruction in reading, language arts, 31.11 mathematics, other content areas, or study skills to improve the 31.12 achievement level of these learners; 31.13 (3) additional teachers and teacher aides to provide more 31.14 individualized instruction to these learners through individual 31.15 tutoring, lower instructor-to-learner ratios, or team teaching; 31.16 (4) a longer school day or week during the regular school 31.17 year or through a summer program that may be offered directly by 31.18 the site or under a performance-based contract with a 31.19 community-based organization; 31.20 (5) comprehensive and ongoing staff development consistent 31.21 with district and site plans according to section 122A.60, for 31.22 teachers, teacher aides, principals, and other personnel to 31.23 improve their ability to identify the needs of these learners 31.24 and provide appropriate remediation, intervention, 31.25 accommodations, or modifications; 31.26 (6) instructional materials and technology appropriate for 31.27 meeting the individual needs of these learners; 31.28 (7) programs to reduce truancy, encourage completion of 31.29 high school, enhance self-concept, provide health services, 31.30 provide nutrition services, provide a safe and secure learning 31.31 environment, provide coordination for pupils receiving services 31.32 from other governmental agencies, provide psychological services 31.33 to determine the level of social, emotional, cognitive, and 31.34 intellectual development, and provide counseling services, 31.35 guidance services, and social work services; 31.36 (8) bilingual programs, bicultural programs, and programs 32.1 for learners of limited English proficiency; 32.2 (9) all day kindergarten; 32.3 (10) extended school day and extended school year programs; 32.4 and 32.5 (11) substantial parent involvement in developing and 32.6 implementing remedial education or intervention plans for a 32.7 learner, including learning contracts between the school, the 32.8 learner, and the parent that establish achievement goals and 32.9 responsibilities of the learner and the learner's parent or 32.10 guardian. 32.11 Sec. 40. Minnesota Statutes 2002, section 126C.17, 32.12 subdivision 7a, is amended to read: 32.13 Subd. 7a. [REFERENDUM TAX BASE REPLACEMENT AID.] For each 32.14 school district that had a referendum allowance for fiscal year 32.15 2002 exceeding $415, for each separately authorized referendum 32.16 levy, the commissioner of revenue, in consultation with the 32.17 commissioner of children, families, and learning, shall certify 32.18 the amount of the referendum levy in taxes payable year 2001 32.19 attributable to the portion of the referendum allowance 32.20 exceeding $415 levied against property classified as class 2, 32.21 noncommercial 4c(1), or 4c(4), under section 273.13, excluding 32.22 the portion of the tax paid by the portion of class 2a property 32.23 consisting of the house, garage, and surrounding one acre of 32.24 land. The resulting amount must be used to reduce the 32.25 district's referendum levy amount otherwise determined, and must 32.26 be paid to the district each year that the referendum authority 32.27 remains in effect. The aid payable under this subdivision must 32.28 be subtracted from the district's referendum equalization aid 32.29 under subdivision 7. The referendum equalization aid after the 32.30 subtraction must not be less than zero. 32.31For the purposes of this subdivision, the referendum levy32.32with the latest year of expiration is assumed to be at the32.33highest level of equalization, and the referendum levy with the32.34earliest year of expiration is assumed to be at the lowest level32.35of equalization.32.36 Sec. 41. Minnesota Statutes 2002, section 126C.17, 33.1 subdivision 9, is amended to read: 33.2 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 33.3 by section 126C.10, subdivision 1, may be increased in the 33.4 amount approved by the voters of the district at a referendum 33.5 called for the purpose. The referendum may be called by the 33.6 board or shall be called by the board upon written petition of 33.7 qualified voters of the district. The referendum must be 33.8 conducted one or two calendar years before the increased levy 33.9 authority, if approved, first becomes payable. Only one 33.10 election to approve an increase may be held in a calendar year. 33.11 Unless the referendum is conducted by mail under paragraph (g), 33.12 the referendum must be held on the first Tuesday after the first 33.13 Monday in November. The ballot must state the maximum amount of 33.14 the increased revenue per resident marginal cost pupil unit, the 33.15 estimated referendum tax rate as a percentage of referendum 33.16 market value in the first year it is to be levied, and that the 33.17 revenue must be used to finance school operations. The ballot 33.18 may state a schedule, determined by the board, of increased 33.19 revenue per resident marginal cost pupil unit that differs from 33.20 year to year over the number of years for which the increased 33.21 revenue is authorized. If the ballot contains a schedule 33.22 showing different amounts, it must also indicate the estimated 33.23 referendum tax rate as a percent of referendum market value for 33.24 the amount specified for the first year and for the maximum 33.25 amount specified in the schedule. The ballot may state that 33.26 existing referendum levy authority is expiring. In this case, 33.27 the ballot may also compare the proposed levy authority to the 33.28 existing expiring levy authority, and express the proposed 33.29 increase as the amount, if any, over the expiring referendum 33.30 levy authority. The ballot must designate the specific number 33.31 of years, not to exceed ten, for which the referendum 33.32 authorization applies. The notice required under section 275.60 33.33 may be modified to read, in cases of renewing existing levies: 33.34 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 33.35 FOR A PROPERTY TAX INCREASE." 33.36 The ballot may contain a textual portion with the 34.1 information required in this subdivision and a question stating 34.2 substantially the following: 34.3 "Shall the increase in the revenue proposed by (petition 34.4 to) the board of ........., School District No. .., be approved?" 34.5 If approved, an amount equal to the approved revenue per 34.6 resident marginal cost pupil unit times the resident marginal 34.7 cost pupil units for the school year beginning in the year after 34.8 the levy is certified shall be authorized for certification for 34.9 the number of years approved, if applicable, or until revoked or 34.10 reduced by the voters of the district at a subsequent referendum. 34.11 (b) The board must prepare and deliver by first class mail 34.12 at least 15 days but no more than 30 days before the day of the 34.13 referendum to each taxpayer a notice of the referendum and the 34.14 proposed revenue increase. The board need not mail more than 34.15 one notice to any taxpayer. For the purpose of giving mailed 34.16 notice under this subdivision, owners must be those shown to be 34.17 owners on the records of the county auditor or, in any county 34.18 where tax statements are mailed by the county treasurer, on the 34.19 records of the county treasurer. Every property owner whose 34.20 name does not appear on the records of the county auditor or the 34.21 county treasurer is deemed to have waived this mailed notice 34.22 unless the owner has requested in writing that the county 34.23 auditor or county treasurer, as the case may be, include the 34.24 name on the records for this purpose. The notice must project 34.25 the anticipated amount of tax increase in annual dollars and 34.26 annual percentage for typical residential homesteads, 34.27 agricultural homesteads, apartments, and commercial-industrial 34.28 property within the school district. 34.29 The notice for a referendum may state that an existing 34.30 referendum levy is expiring and project the anticipated amount 34.31 of increase over the existing referendum levy in the first year, 34.32 if any, in annual dollars and annual percentage for typical 34.33 residential homesteads, agricultural homesteads, apartments, and 34.34 commercial-industrial property within the district. 34.35 The notice must include the following statement: "Passage 34.36 of this referendum will result in an increase in your property 35.1 taxes." However, in cases of renewing existing levies, the 35.2 notice may include the following statement: "Passage of this 35.3 referendum may result in an increase in your property taxes." 35.4 (c) A referendum on the question of revoking or reducing 35.5 the increased revenue amount authorized pursuant to paragraph 35.6 (a) may be called by the board and shall be called by the board 35.7 upon the written petition of qualified voters of the district. 35.8 A referendum to revoke or reduce thelevyrevenue amount mustbe35.9based upon the dollar amount, local tax rate, orstate the 35.10 amount per resident marginal cost pupil unit, that was stated to35.11be the basis for the initial authorizationby which the 35.12 authority is to be reduced. Revenue authority approved by the 35.13 voters of the district pursuant to paragraph (a) must 35.14 bereceivedavailable to the school district at least once 35.15 before it is subject to a referendum on its revocation or 35.16 reduction for subsequent years. Only one revocation or 35.17 reduction referendum may be held to revoke or reduce referendum 35.18 revenue for any specific year and for years thereafter. 35.19 (d) A petition authorized by paragraph (a) or (c) is 35.20 effective if signed by a number of qualified voters in excess of 35.21 15 percent of the registered voters of the district on the day 35.22 the petition is filed with the board. A referendum invoked by 35.23 petition must be held on the date specified in paragraph (a). 35.24 (e) The approval of 50 percent plus one of those voting on 35.25 the question is required to pass a referendum authorized by this 35.26 subdivision. 35.27 (f) At least 15 days before the day of the referendum, the 35.28 district must submit a copy of the notice required under 35.29 paragraph (b) to the commissioner and to the county auditor of 35.30 each county in which the district is located. Within 15 days 35.31 after the results of the referendum have been certified by the 35.32 board, or in the case of a recount, the certification of the 35.33 results of the recount by the canvassing board, the district 35.34 must notify the commissioner of the results of the referendum. 35.35 Sec. 42. Minnesota Statutes 2002, section 126C.21, 35.36 subdivision 3, is amended to read: 36.1 Subd. 3. [COUNTY APPORTIONMENT DEDUCTION.] Each year the 36.2 amount of money apportioned to a district for that year pursuant 36.3 to section 127A.34, subdivision 2,excluding any district where36.4the general education levy is determined according to section36.5126C.13, subdivision 3,must be deducted from the general 36.6 education aid earned by that district for the same year or from 36.7 aid earned from other state sources. 36.8 Sec. 43. Minnesota Statutes 2002, section 126C.42, 36.9 subdivision 1, is amended to read: 36.10 Subdivision 1. [1977 STATUTORY OPERATING DEBT.] (a) In 36.11 each year in which so required by this subdivision, a district 36.12 must make an additional levy to eliminate its statutory 36.13 operating debt, determined as of June 30, 1977, and certified 36.14 and adjusted by the commissioner. This levy shall not be made 36.15 in more than 30 successive years and each year before it is 36.16 made, it must be approved by the commissioner and the approval 36.17 shall specify its amount. This levy shall be an amount which is 36.18 equal to the amount raised by a levy of a net tax rate of1.9836.19 2.67 percent times the adjusted net tax capacity of the district 36.20 for the preceding year for taxes payable in20002002 and 36.21 thereafter; provided that in the last year in which the district 36.22 is required to make this levy, it must levy an amount not to 36.23 exceed the amount raised by a levy of a net tax rate of1.9836.24 2.67 percent times the adjusted net tax capacity of the district 36.25 for the preceding year for taxes payable in20002002 and 36.26 thereafter. When the sum of the cumulative levies made pursuant 36.27 to this subdivision and transfers made according to section 36.28 123B.79, subdivision 6, equals an amount equal to the statutory 36.29 operating debt of the district, the levy shall be discontinued. 36.30 (b) The district must establish a special account in the 36.31 general fund which shall be designated "appropriated fund 36.32 balance reserve account for purposes of reducing statutory 36.33 operating debt" on its books and records. This account shall 36.34 reflect the levy authorized pursuant to this subdivision. The 36.35 proceeds of this levy must be used only for cash flow 36.36 requirements and must not be used to supplement district 37.1 revenues or income for the purposes of increasing the district's 37.2 expenditures or budgets. 37.3 (c)Any district which is required to levy pursuant to this37.4subdivision must certify the maximum levy allowable under37.5section 126C.13, subdivision 2, in that same year.37.6(d)Each district shall make permanent fund balance 37.7 transfers so that the total statutory operating debt of the 37.8 district is reflected in the general fund as of June 30, 1977. 37.9 Sec. 44. Minnesota Statutes 2002, section 126C.48, 37.10 subdivision 3, is amended to read: 37.11 Subd. 3. [ADJUSTMENTS.] If any district levy is found to 37.12 be excessive as a result of a decision of the tax court or a 37.13 redetermination by the commissioner of revenue under section 37.14 127A.48, subdivisions 7 to 16, or for any other reason, the 37.15 amount of the excess shall be deducted from the levy certified 37.16 in the next year for the same purpose. If no levy is certified 37.17 in the next year for the same purpose or if the amount certified 37.18 is less than the amount of the excess, the excess must be 37.19 deducted from that levy and the general fund levy certified 37.20 pursuant tosection 126C.13, subdivision 2chapters 122A, 123A, 37.21 123B, 124D, and 126C. If the amount of any aid would have been 37.22 increased in a prior year as a result of a decision of the tax 37.23 court or a redetermination by the commissioner of revenue, the 37.24 amount of the increase shall be added to the amount of current 37.25 aid for the same purposes. 37.26 Sec. 45. Minnesota Statutes 2002, section 126C.63, 37.27 subdivision 5, is amended to read: 37.28 Subd. 5. [LEVY.] "Levy" means a district's net debt 37.29 service levy after the reduction of debt service equalization 37.30 aid under section 123B.53, subdivision 6. For taxes payable in 37.3119942003 and later, each district's maximum effort debt service 37.32 levy for purposes of subdivision 8, must be reduced by an equal 37.33 number of percentage points if the commissioner of finance 37.34 determines that the levy reduction will not result in 37.35 astatewide property taxpayment from the general fund in the 37.36 state treasury according to section 16A.641, as would be 38.1 required under Minnesota Statutes1992, section124.46126C.72, 38.2 subdivision 3. A district's levy that is adjusted under this 38.3 section must not be reduced below22.330.1 percent of the 38.4 district's adjusted net tax capacity. 38.5 Sec. 46. Minnesota Statutes 2002, section 126C.63, 38.6 subdivision 8, is amended to read: 38.7 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 38.8 effort debt service levy" means the lesser of: 38.9 (1) a levy in whichever of the following amounts is 38.10 applicable: 38.11(a)(i) in any district receiving a debt service loan for a 38.12 debt service levy payable in 2002 and thereafter, or granted a 38.13 capital loan after January 1,20012002, a levy in total dollar 38.14 amount computed at a rate of3040 percent of adjusted net tax 38.15 capacity for taxes payable in 2002 and thereafter; 38.16(b)(ii) in any district receiving a debt service loan for 38.17 a debt service levy payable in1991 and thereafter2001 or 38.18 earlier, or granted a capital loanafterbefore January138.19 2,19902001, a levy in a total dollar amount computed at a rate 38.20 of2432 percent of adjusted net tax capacity for taxes payable 38.21 in19912002 and thereafter; 38.22(c) in any district granted a debt service loan after July38.2331, 1981, or granted a capital loan which is approved after July38.2431, 1981, a levy in a total dollar amount computed as a tax rate38.25of 21.92 percent on the adjusted net tax capacity for taxes38.26payable in 1991 and thereafter;or 38.27 (2) a levy in any district for which a capital loan was 38.28 approved prior to August 1, 1981, a levy in a total dollar 38.29 amount equal to the sum of the amount of the required debt 38.30 service levy and an amount which when levied annually will in 38.31 the opinion of the commissioner be sufficient to retire the 38.32 remaining interest and principal on any outstanding loans from 38.33 the state within 30 years of the original date when the capital 38.34 loan was granted. 38.35 (b) The board in any district affected by the provisions of 38.36 paragraph (a), clause (2), may elect instead to determine the 39.1 amount of its levy according to the provisions of paragraph (a), 39.2 clause (1). If a district's capital loan is not paid within 30 39.3 years because it elects to determine the amount of its levy 39.4 according to the provisions of paragraph (a), clause (2), the 39.5 liability of the district for the amount of the difference 39.6 between the amount it levied under paragraph (a), clause (2), 39.7 and the amount it would have levied under paragraph (a), clause 39.8 (1), and for interest on the amount of that difference, must not 39.9 be satisfied and discharged pursuant to Minnesota Statutes 1988, 39.10 or an earlier edition of Minnesota Statutes if applicable, 39.11 section 124.43, subdivision 4. 39.12 Sec. 47. Minnesota Statutes 2002, section 126C.69, 39.13 subdivision 2, is amended to read: 39.14 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 39.15 1999, a district is not eligible for a capital loan unless the 39.16 district's estimated net debt tax rate as computed by the 39.17 commissioner after debt service equalization aid would be more 39.18 than3040 percent of adjusted net tax capacity. The estimate 39.19 must assume a 20-year maturity schedule for new debt. 39.20 Sec. 48. Minnesota Statutes 2002, section 126C.69, 39.21 subdivision 9, is amended to read: 39.22 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 39.23 recommended for approval for a district exceeding an amount 39.24 computed as follows: 39.25 (1) the amount requested by the district under subdivision 39.26 6; 39.27 (2) plus the aggregate principal amount of general 39.28 obligation bonds of the district outstanding on June 30 of the 39.29 year following the year the application was received, not 39.30 exceeding the limitation on net debt of the district in section 39.31 475.53, subdivision 4, or450607 percent of its adjusted net 39.32 tax capacity as most recently determined, whichever is less; 39.33 (3) less the maximum net debt permissible for the district 39.34 on December 1 of the year the application is received, under the 39.35 limitation in section 475.53, subdivision 4, or450607 percent 39.36 of its adjusted net tax capacity as most recently determined, 40.1 whichever is less; 40.2 (4) less any amount by which the amount voted exceeds the 40.3 total cost of the facilities for which the loan is granted. 40.4 (b) The loan may be approved in an amount computed as 40.5 provided in paragraph (a), clauses (1) to (3), subject to later 40.6 reduction according to paragraph (a), clause (4). 40.7 Sec. 49. Minnesota Statutes 2002, section 127A.47, 40.8 subdivision 7, is amended to read: 40.9 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 40.10 education aid for districts must be adjusted for each pupil 40.11 attending a nonresident district under sections 123A.05 to 40.12 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68. The 40.13 adjustments must be made according to this subdivision. 40.14 (a) General education aid paid to a resident district must 40.15 be reduced by an amount equal to the referendum equalization aid 40.16 attributable to the pupil in the resident district. 40.17 (b) General education aid paid to a district serving a 40.18 pupil in programs listed in this subdivision must be increased 40.19 by an amount equal to the referendum equalization aid 40.20 attributable to the pupil in the nonresident district. 40.21 (c) If the amount of the reduction to be made from the 40.22 general education aid of the resident district is greater than 40.23 the amount of general education aid otherwise due the district, 40.24 the excess reduction must be made from other state aids due the 40.25 district. 40.26 (d) The district of residence must pay tuition to a 40.27 district or an area learning center, operated according to 40.28 paragraph (e), providing special instruction and services to a 40.29 pupil with a disability, as defined in section 125A.02, or a 40.30 pupil, as defined in section 125A.51, who is enrolled in a 40.31 program listed in this subdivision. The tuition must be equal 40.32 to (1) the actual cost of providing special instruction and 40.33 services to the pupil, including a proportionate amount for debt 40.34 service and for capital expenditure facilities and equipment, 40.35 and debt service but not including any amount for 40.36 transportation, minus (2) the amount of general education 41.1 revenue and special education aid but not including any amount 41.2 for transportation, attributable to that pupil, that is received 41.3 by the district providing special instruction and services. 41.4 (e) An area learning center operated by a service 41.5 cooperative, intermediate district, education district, or a 41.6 joint powers cooperative may elect through the action of the 41.7 constituent boards to charge the resident district tuition for 41.8 pupils rather than tocalculate general education aid41.9adjustments under paragraph (a), (b), or (c). The tuition must41.10be equal to the greater of the average general education revenue41.11per pupil unit attributable to the pupil, or the actual cost of41.12providing the instruction, excluding transportation costs, if41.13the pupil meets the requirements of section 125A.02 or41.14125A.51have the general education revenue paid to a fiscal 41.15 agent school district. Except as provided in paragraph (d), the 41.16 district of residence must pay tuition equal to at least 90 41.17 percent of the district average general education revenue per 41.18 pupil unit minus an amount equal to the product of the formula 41.19 allowance according to section 126C.10, subdivision 2, times 41.20 .0485, calculated without basic skills revenue and 41.21 transportation sparsity revenue, times the number of pupil units 41.22 for pupils attending the area learning center, plus the amount 41.23 of compensatory revenue generated by pupils attending the area 41.24 learning center. 41.25 Sec. 50. Minnesota Statutes 2002, section 127A.47, 41.26 subdivision 8, is amended to read: 41.27 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 41.28 for districts must be adjusted for each pupil attending a 41.29 charter school under section 124D.10. The adjustments must be 41.30 made according to this subdivision. 41.31 (b) General education aid paid to a district in which a 41.32 charter school not providing transportation according to section 41.33 124D.10, subdivision 16, is located must be increased by an 41.34 amount equal to the product of: (1) the sum of an amount equal 41.35 to the product of the formula allowance according to section 41.36 126C.10, subdivision 2, times .0485, plus the transportation 42.1 sparsity allowance for the district, plus the transportation42.2transition allowance for the district; times (2) the pupil units 42.3 attributable to the pupil. 42.4 Sec. 51. Minnesota Statutes 2002, section 127A.49, 42.5 subdivision 2, is amended to read: 42.6 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 42.7 sections 270.07, 375.192, or otherwise, the net tax capacity of 42.8 any district for any taxable year is changed after the taxes for 42.9 that year have been spread by the county auditor and the local 42.10 tax rate as determined by the county auditor based upon the 42.11 original net tax capacity is applied upon the changed net tax 42.12 capacities, the county auditor shall, prior to February 1 of 42.13 each year, certify to the commissioner of children, families, 42.14 and learning the amount of any resulting net revenue loss that 42.15 accrued to the district during the preceding year. Each year, 42.16 the commissioner shall pay an abatement adjustment to the 42.17 district in an amount calculated according to the provisions of 42.18 this subdivision. This amount shall be deducted from the amount 42.19 of the levy authorized by section 126C.46. The amount of the 42.20 abatement adjustment must be the product of: 42.21 (1) the net revenue loss as certified by the county 42.22 auditor, times 42.23 (2) the ratio of: 42.24 (i) the sum of the amounts of the district's certified levy 42.25 in the preceding year according to the following: 42.26 (A)section 126C.13 if the district received general42.27education aid according to that section for the second preceding42.28year;42.29(B)section 123B.57, if the district received health and 42.30 safety aid according to that section for the second preceding 42.31 year; 42.32(C) sections(B) section 124D.20,124D.21, and 124D.56,if 42.33 the district received aid for community education programs 42.34 according toany of those sectionsthat section for the second 42.35 preceding year; 42.36(D)(C) section 124D.135, subdivision 3, if the district 43.1 received early childhood family education aid according to 43.2 section 124D.135 for the second preceding year; and 43.3(E)(D) section 126C.17, subdivision 6, if the district 43.4 received referendum equalization aid according to that section 43.5 for the second preceding year; to 43.6 (ii) the total amount of the district's certified levy in 43.7 the preceding December, plus or minus auditor's adjustments. 43.8 Sec. 52. Minnesota Statutes 2002, section 127A.49, 43.9 subdivision 3, is amended to read: 43.10 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 43.11 tax increment is made to a district pursuant to section 469.176, 43.12 subdivision 2, or upon decertification of a tax increment 43.13 district, the school district's aid and levy limitations must be 43.14 adjusted for the fiscal year in which the excess tax increment 43.15 is paid under the provisions of this subdivision. 43.16 (b) An amount must be subtracted from the district's aid 43.17 for the current fiscal year equal to the product of: 43.18 (1) the amount of the payment of excess tax increment to 43.19 the district, times 43.20 (2) the ratio of: 43.21 (i) the sum of the amounts of the district's certified levy 43.22 for the fiscal year in which the excess tax increment is paid 43.23 according to the following: 43.24 (A)section 126C.13, if the district received general43.25education aid according to that section for the second preceding43.26year;43.27(B)section 123B.57, if the district received health and 43.28 safety aid according to that section for the second preceding 43.29 year; 43.30(C) sections(B) section 124D.20,124D.21, and 124D.56,if 43.31 the district received aid for community education programs 43.32 according toany of those sectionsthat section for the second 43.33 preceding year; 43.34(D)(C) section 124D.135, subdivision 3, if the district 43.35 received early childhood family education aid according to 43.36 section 124D.135 for the second preceding year; and 44.1(E)(D) section 126C.17, subdivision 6, if the district 44.2 received referendum equalization aid according to that section 44.3 for the second preceding year; to 44.4 (ii) the total amount of the district's certified levy for 44.5 the fiscal year, plus or minus auditor's adjustments. 44.6 (c) An amount must be subtracted from the school district's 44.7 levy limitation for the next levy certified equal to the 44.8 difference between: 44.9 (1) the amount of the distribution of excess increment; and 44.10 (2) the amount subtracted from aid pursuant to clause (a). 44.11 If the aid and levy reductions required by this subdivision 44.12 cannot be made to the aid for the fiscal year specified or to 44.13 the levy specified, the reductions must be made from aid for 44.14 subsequent fiscal years, and from subsequent levies. The school 44.15 district must use the payment of excess tax increment to replace 44.16 the aid and levy revenue reduced under this subdivision. 44.17 (d) This subdivision applies only to the total amount of 44.18 excess increments received by a district for a calendar year 44.19 that exceeds $25,000. 44.20 Sec. 53. Minnesota Statutes 2002, section 128D.11, 44.21 subdivision 8, is amended to read: 44.22 Subd. 8. [NET DEBT LIMIT.] The school district shall not 44.23 be subject to a net debt in excess of102144 percent of the net 44.24 tax capacity of all taxable property therein. 44.25 Sec. 54. Minnesota Statutes 2002, section 169.26, 44.26 subdivision 3, is amended to read: 44.27 Subd. 3. [DRIVER TRAINING.] All driver education courses 44.28 approved bythe commissioner of children, families, and learning44.29andthe commissioner of public safety must include instruction 44.30 on railroad-highway grade crossing safety. Thecommissioner of44.31children, families, and learning and thecommissioner of public 44.32 safety shall by rule establish minimum standards of course 44.33 content relating to operation of vehicles at railroad-highway 44.34 grade crossings. 44.35 Sec. 55. Minnesota Statutes 2002, section 169.973, 44.36 subdivision 1, is amended to read: 45.1 Subdivision 1. [COMMISSIONER'S AUTHORITY; RULES; 45.2 CURRICULUM.] The commissioner of public safety shall supervise 45.3 the administration and conduct of driver improvement clinics and 45.4 youth-oriented driver improvement clinics. The commissioner of 45.5 public safety shall promulgate rules setting forth standards for 45.6 the curriculum and mode of instruction of driver improvement 45.7 clinics and youth-oriented driver improvement clinics and such 45.8 other matters as the commissioner of public safety considers 45.9 necessary for the proper administration of such clinics. In the 45.10 preparation of such standards the commissioner of public safety 45.11 shall consult with thecommissioner of children, families, and45.12learning andstate associations of judges. A driver improvement 45.13 clinic established under sections 169.971 to 169.973 and 171.20, 45.14 subdivision 3, shall conform to the standards promulgated by the 45.15 commissioner of public safety. The course of study at a driver 45.16 improvement clinic and youth-oriented driver improvement clinic 45.17 may not exceed a cumulative total of nine hours with no single 45.18 class session lasting more than three hours. The course of 45.19 study at a driver improvement clinic and youth-oriented driver 45.20 improvement clinic shall include instruction in railroad 45.21 crossing safety. 45.22 Sec. 56. Minnesota Statutes 2002, section 178.02, 45.23 subdivision 1, is amended to read: 45.24 Subdivision 1. [MEMBERS.] The commissioner of labor and 45.25 industry, hereinafter called the commissioner, shall appoint an 45.26 apprenticeship advisory council, hereinafter referred to as the 45.27 council, composed of three representatives each from employer 45.28 and employee organizations, and two representatives of the 45.29 general public. Theassistant commissionerdirector of 45.30 children, families, and learning responsible forvocational45.31 career and technical education or designee shall be an ex 45.32 officio member of the council and shall serve in an advisory 45.33 capacity only. 45.34 Sec. 57. Minnesota Statutes 2002, section 273.138, 45.35 subdivision 6, is amended to read: 45.36 Subd. 6. The amount of aid calculated for a school 46.1 district pursuant to subdivision 3, clauses (2), (3), (4), and 46.2 (5) shall be deducted from the school district's general fund 46.3 levy limitation established pursuant tosection 126C.13chapters 46.4 122A, 123A, 123B, 124D, and 126C in determining the amount of 46.5 taxes the school district may levy for general and special 46.6 purposes. 46.7 Sec. 58. Minnesota Statutes 2002, section 298.28, 46.8 subdivision 4, is amended to read: 46.9 Subd. 4. [SCHOOL DISTRICTS.] (a) 17.15 cents per taxable 46.10 ton plus the increase provided in paragraph (d) must be 46.11 allocated to qualifying school districts to be distributed, 46.12 based upon the certification of the commissioner of revenue, 46.13 under paragraphs (b) and (c), except as otherwise provided in 46.14 paragraph (f). 46.15 (b) 3.43 cents per taxable ton must be distributed to the 46.16 school districts in which the lands from which taconite was 46.17 mined or quarried were located or within which the concentrate 46.18 was produced. The distribution must be based on the 46.19 apportionment formula prescribed in subdivision 2. 46.20 (c)(i) 13.72 cents per taxable ton, less any amount 46.21 distributed under paragraph (e), shall be distributed to a group 46.22 of school districts comprised of those school districts in which 46.23 the taconite was mined or quarried or the concentrate produced 46.24 or in which there is a qualifying municipality as defined by 46.25 section 273.134, paragraph (b), in direct proportion to school 46.26 district indexes as follows: for each school district, its 46.27 pupil units determined under section 126C.05 for the prior 46.28 school year shall be multiplied by the ratio of the average 46.29 adjusted net tax capacity per pupil unit for school districts 46.30 receiving aid under this clause as calculated pursuant to 46.31 chapters 122A, 126C, and 127A for the school year ending prior 46.32 to distribution to the adjusted net tax capacity per pupil unit 46.33 of the district. Each district shall receive that portion of 46.34 the distribution which its index bears to the sum of the indices 46.35 for all school districts that receive the distributions. 46.36 (ii) Notwithstanding clause (i), each school district that 47.1 receives a distribution under sections 298.018; 298.23 to 47.2 298.28, exclusive of any amount received under this clause; 47.3 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 47.4 imposing a tax on severed mineral values after reduction for any 47.5 portion distributed to cities and towns under section 126C.48, 47.6 subdivision 8, paragraph (5), that is less than the amount of 47.7 its levy reduction under section 126C.48, subdivision 8, for the 47.8 second year prior to the year of the distribution shall receive 47.9 a distribution equal to the difference; the amount necessary to 47.10 make this payment shall be derived from proportionate reductions 47.11 in the initial distribution to other school districts under 47.12 clause (i). 47.13 (d) Any school district described in paragraph (c) where a 47.14 levy increase pursuant to section 126C.17, subdivision 9, was 47.15 authorized by referendum for taxes payable in 2001, shall 47.16 receive a distribution from a fund that receives a distribution 47.17 in 1998 of 21.3 cents per ton. On July 15 of 1999, and each 47.18 year thereafter, the increase over the amount established for 47.19 the prior year shall be determined according to the increase in 47.20 the implicit price deflator as provided in section 298.24, 47.21 subdivision 1. Each district shall receive $175 times the pupil 47.22 units identified in section 126C.05, subdivision 1, enrolled in 47.23 the second previous year or the 1983-1984 school year, whichever 47.24 is greater, less the product of 1.8 percent times the district's 47.25 taxable net tax capacity in the second previous year. 47.26 If the total amount provided by paragraph (d) is 47.27 insufficient to make the payments herein required then the 47.28 entitlement of $175 per pupil unit shall be reduced uniformly so 47.29 as not to exceed the funds available. Any amounts received by a 47.30 qualifying school district in any fiscal year pursuant to 47.31 paragraph (d) shall not be applied to reduce general education 47.32 aid which the district receives pursuant to section 126C.13 or 47.33 the permissible levies of the district. Any amount remaining 47.34 after the payments provided in this paragraph shall be paid to 47.35 the commissioner of iron range resources and rehabilitation who 47.36 shall deposit the same in the taconite environmental protection 48.1 fund and the northeast Minnesota economic protection trust fund 48.2 as provided in subdivision 11. 48.3 Each district receiving money according to this paragraph 48.4 shall reserve the lesser of the amount received under this 48.5 paragraph or $25 times the number of pupil units served in the 48.6 district. It may use the money for early childhood programsor48.7for outcome-based learning programs that enhance the academic48.8quality of the district's curriculum. The outcome-based48.9learning programs must be approved by the commissioner of48.10children, families, and learning. 48.11 (e) There shall be distributed to any school district the 48.12 amount which the school district was entitled to receive under 48.13 section 298.32 in 1975. 48.14 (f) Effective for the distribution in 2003 only, five 48.15 percent of the distributions to school districts under 48.16 paragraphs (b), (c), and (e); subdivision 6, paragraph (c); 48.17 subdivision 11; and section 298.225, shall be distributed to the 48.18 general fund. The remainder less any portion distributed to 48.19 cities and towns under section 126C.48, subdivision 8, paragraph 48.20 (5), shall be distributed to the northeast Minnesota economic 48.21 protection trust fund created in section 298.292. Fifty percent 48.22 of the amount distributed to the northeast Minnesota economic 48.23 protection trust fund shall be made available for expenditure 48.24 under section 298.293 as governed by section 298.296. Effective 48.25 in 2003 only, 100 percent of the distributions to school 48.26 districts under section 477A.15 less any portion distributed to 48.27 cities and towns under section 126C.48, subdivision 8, paragraph 48.28 (5), shall be distributed to the general fund. 48.29 Sec. 59. Minnesota Statutes 2002, section 475.61, 48.30 subdivision 4, is amended to read: 48.31 Subd. 4. [SURPLUS FUNDS.] (a) All such taxes shall be 48.32 collected and remitted to the municipality by the county 48.33 treasurer as other taxes are collected and remitted, and shall 48.34 be used only for payment of the obligations on account of which 48.35 levied or to repay advances from other funds used for such 48.36 payments, except that any surplus remaining in the debt service 49.1 fund when the obligations and interest thereon are paid may be 49.2 appropriated to any other general purpose by the municipality. 49.3 However, the amount of any surplus remaining in the debt service 49.4 fund of a school district when the obligations and interest 49.5 thereon are paid shall be used to reduce the generaleducation49.6 fund levy authorized pursuant tosection 126C.13chapters 122A, 49.7 123A, 123B, 124D, and 126C and the state aids authorized 49.8 pursuant to chapters 122A, 123A, 123B, 124D, 125A, 126C, and 49.9 127A. 49.10 (b) The reduction to state aids equals the lesser of (1) 49.11 the amount of the surplus times the ratio of the district's debt 49.12 service equalization aid to the district's debt service 49.13 equalization revenue for the last year that the district 49.14 qualified for debt service equalization aid; or (2) the 49.15 district's cumulative amount of debt service equalization aid. 49.16 (c) The reduction to the generaleducationfund levy equals 49.17 the total amount of the surplus minus the reduction to state 49.18 aids. 49.19 Sec. 60. Laws 1965, chapter 705, as amended by Laws 1975, 49.20 chapter 261, section 4; Laws 1980, chapter 609, article 6, 49.21 section 37; and Laws 1989, chapter 329, article 13, section 18, 49.22 is amended to read: 49.23 Sec. 6. [ST. PAUL SEVERANCE LEVY.] The school board of 49.24 independent school district No. 625, St. Paul, for the purpose 49.25 of providing moneys for the payment of its severance pay 49.26 obligations under a plan approved by resolution of the district, 49.27 in addition to all other powers possessed by the school district 49.28 and in addition to and in excess of any existing limitation upon 49.29 the amount it is otherwise authorized by law to levy as taxes, 49.30 is authorized to levy taxes annually not exceeding in any one 49.31 year an amount equal toa gross tax capacity rate of .17 percent49.32for taxes payable in 1990 ora net tax capacity rate of.21.34 49.33 percent for taxes payable in19912002 and thereafter upon all 49.34 taxable property within the school district which taxes as 49.35 levied shall be spread upon the tax rolls, and all corrections 49.36 thereof shall be held by the school district, and allocated 50.1 therefor to be disbursed and expended by the school district in 50.2 payment of any public school severance pay obligations and for 50.3 no other purpose. Disbursements and expenditures previously 50.4 authorized on behalf of the school district for payment of 50.5 severance pay obligations shall not be deemed to constitute any 50.6 part of the cost of the operation and maintenance of the school 50.7 district within the meaning of any statutory limitation of any 50.8 school district expenditures. 50.9 The amount of such severance pay allowable or to become 50.10 payable in respect of any such employment or to any such 50.11 employee shall not exceed the amount permitted by Minnesota 50.12 Statutes, Section 465.72. 50.13 [EFFECTIVE DATE.] This section is effective retroactively 50.14 for taxes payable in 2002 and thereafter. 50.15 Sec. 61. [REVISOR INSTRUCTION.] 50.16 (a) In the next and subsequent editions of Minnesota 50.17 Statutes, the revisor shall change all references to the 50.18 "commissioner of children, families, and learning" to the 50.19 "commissioner of public safety" in Minnesota Statutes, sections 50.20 123B.88, subdivision 9; 168.102; 169.441, subdivision 5; and 50.21 171.321, subdivision 4c; and "Part H" to "Part C" in Minnesota 50.22 Statutes, sections 125A.27, subdivisions 7 and 8; 125A.32; 50.23 125A.35; 125A.37; 125A.39; 125A.44; and 125A.45. 50.24 (b) In the next and subsequent editions of Minnesota 50.25 Statutes, the revisor shall codify section 62 as Minnesota 50.26 Statutes, section 126C.42, subdivision 5. 50.27 Sec. 62. [REPEALER.] 50.28 (a) Minnesota Statutes 2002, sections 123A.73, subdivisions 50.29 7, 10, and 11; 123B.81, subdivision 6; 124D.65, subdivision 4; 50.30 124D.84, subdivision 2; 125A.023, subdivision 5; 125A.47; 50.31 125B.11; 126C.01, subdivision 4; and 127A.41, subdivision 6, are 50.32 repealed. 50.33 (b) Minnesota Statutes 2002, section 126C.14, is repealed 50.34 effective for revenue for fiscal year 2003. 50.35 (c) Laws 2001, First Special Session chapter 6, article 5, 50.36 section 12, as amended by Laws 2002, chapter 377, article 12, 51.1 section 15, is repealed. 51.2 (d) Minnesota Rules, parts 3500.0600; 3520.0400; 3520.1400; 51.3 3520.3300; 3530.1500; 3530.2700; 3530.4400; 3530.4500; 51.4 3530.4700; and 3550.0100, are repealed.