1.1                          A bill for an act 
  1.2             relating to education; providing for early childhood 
  1.3             through adult education; providing for general 
  1.4             education revenue; academic excellence; special 
  1.5             programs; facilities and technology; nutrition, school 
  1.6             accounting, and other programs; state agencies; 
  1.7             children and family support; prevention; 
  1.8             self-sufficiency; and libraries; appropriating money; 
  1.9             amending Minnesota Statutes 2000, sections 120B.13, 
  1.10            subdivision 3; 123B.59, subdivisions 5, 6, 7; 123B.92, 
  1.11            subdivision 9; 124D.09, subdivisions 13, 15; 124D.135, 
  1.12            subdivision 3; 124D.531, subdivision 4; 124D.68, 
  1.13            subdivisions 2, 9; 124D.86, subdivisions 4, 5; 
  1.14            125A.79, subdivision 1; 126C.01, subdivision 7; 
  1.15            126C.05, subdivision 12; 126C.10, subdivisions 5, 26, 
  1.16            28, by adding subdivisions; Minnesota Statutes 2001 
  1.17            Supplement, sections 122A.162; 122A.18, subdivisions 
  1.18            1, 4; 122A.20, subdivision 2; 122A.21; 123B.42, 
  1.19            subdivision 3; 123B.54; 124D.11, subdivision 4; 
  1.20            124D.135, subdivision 8; 124D.20, subdivision 5; 
  1.21            124D.531, subdivisions 1, 7; 124D.69, subdivision 1; 
  1.22            125A.76, subdivision 1; 126C.05, subdivision 15; 
  1.23            126C.10, subdivisions 1, 24, 25; 126C.17, subdivisions 
  1.24            1, 2, 13; Laws 1997, First Special Session, chapter 4, 
  1.25            article 3, section 25, subdivision 7; Laws 2000, 
  1.26            chapter 489, article 1, section 36; Laws 2001, First 
  1.27            Special Session chapter 3, article 1, section 17, 
  1.28            subdivisions 3, 7, 9, 11; Laws 2001, First Special 
  1.29            Session chapter 3, article 1, section 19, subdivisions 
  1.30            3, 5; Laws 2001, First Special Session chapter 3, 
  1.31            article 2, section 15, subdivisions 3, 10; Laws 2001, 
  1.32            First Special Session chapter 3, article 2, section 
  1.33            16, subdivision 2; Laws 2001, First Special Session 
  1.34            chapter 3, article 3, section 9, subdivisions 2, 5, 6, 
  1.35            7, 10; Laws 2001, First Special Session chapter 3, 
  1.36            article 4, section 5, subdivision 2; Laws 2001, First 
  1.37            Special Session chapter 6, article 1, section 54, 
  1.38            subdivisions 2, 4, 5, 6, 7; Laws 2001, First Special 
  1.39            Session chapter 6, article 2, section 77, subdivisions 
  1.40            2, 4, 5, 7, 8, 11, 15, 18, 22, 23, 25, as amended, 26, 
  1.41            27, as amended, 29, 30; Laws 2001, First Special 
  1.42            Session chapter 6, article 3, section 21, subdivisions 
  1.43            2, 3, 4, 5, 7, 11; Laws 2001, First Special Session 
  1.44            chapter 6, article 4, section 27, subdivisions 2, 3, 
  1.45            5, 6; Laws 2001, First Special Session chapter 6, 
  1.46            article 5, section 13, subdivisions 2, 5; Laws 2001, 
  2.1             First Special Session chapter 6, article 7, section 
  2.2             13, as amended; Laws 2001, First Special Session 
  2.3             chapter 6, article 7, section 14; Laws 2001, First 
  2.4             Special Session chapter 6, article 7, section 15; 
  2.5             repealing Minnesota Statutes 2000, sections 119A.46, 
  2.6             subdivisions 1, 2, 4, 5, 6, 7, 8, 9, 10; 119B.189; 
  2.7             119B.19; 119B.21; 119B.211; 120B.22; 120B.23; 123B.59, 
  2.8             subdivisions 6, 7; 124D.09, subdivision 15; 124D.17; 
  2.9             124D.46; 124D.47; 124D.54; 124D.94; Minnesota Statutes 
  2.10            2001 Supplement, sections 119A.46, subdivision 3; 
  2.11            120B.12; 122A.11; 122A.12; 122A.13; 122A.14; Laws 
  2.12            1997, chapter 248, section 47, as amended; Laws 2000, 
  2.13            chapter 489, article 2, section 36, as amended; Laws 
  2.14            2001, First Special Session chapter 6, article 2, 
  2.15            section 77, subdivision 30. 
  2.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.17                             ARTICLE 1 
  2.18                     GENERAL EDUCATION REVENUE 
  2.19     Section 1.  Minnesota Statutes 2001 Supplement, section 
  2.20  123B.42, subdivision 3, is amended to read: 
  2.21     Subd. 3.  [COST; LIMITATION.] (a) The cost per pupil of the 
  2.22  textbooks, individualized instructional or cooperative learning 
  2.23  materials, and standardized tests provided for in this section 
  2.24  for each school year must not exceed the statewide average 
  2.25  expenditure per pupil, adjusted pursuant to clause (b), by the 
  2.26  Minnesota public elementary and secondary schools for textbooks, 
  2.27  individualized instructional materials and standardized tests as 
  2.28  computed and established by the department by February 1 of the 
  2.29  preceding school year from the most recent public school year 
  2.30  data then available. 
  2.31     (b) The cost computed in clause (a) shall be increased by 
  2.32  an inflation adjustment equal to the percent of increase in the 
  2.33  formula allowance, pursuant to section 126C.10, subdivision 2, 
  2.34  from the second preceding school year to the current school year.
  2.35  Notwithstanding the amount of the formula allowance for fiscal 
  2.36  years 2003 and 2004 in section 126C.10, subdivision 2, the 
  2.37  commissioner shall use the amount of the formula allowance for 
  2.38  the current school year less $415 in determining the inflation 
  2.39  adjustment for fiscal years 2003 and 2004. 
  2.40     (c) The commissioner shall allot to the districts or 
  2.41  intermediary service areas the total cost for each school year 
  2.42  of providing or loaning the textbooks, individualized 
  2.43  instructional or cooperative learning materials, and 
  3.1   standardized tests for the pupils in each nonpublic school.  The 
  3.2   allotment shall not exceed the product of the statewide average 
  3.3   expenditure per pupil, according to clause (a), adjusted 
  3.4   pursuant to clause (b), multiplied by the number of nonpublic 
  3.5   school pupils who make requests pursuant to this section and who 
  3.6   are enrolled as of September 15 of the current school year. 
  3.7      Sec. 2.  Minnesota Statutes 2000, section 123B.92, 
  3.8   subdivision 9, is amended to read: 
  3.9      Subd. 9.  [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 
  3.10  district's nonpublic pupil transportation aid for the 1996-1997 
  3.11  and later school years for transportation services for nonpublic 
  3.12  school pupils according to sections 123B.88, 123B.84 to 123B.86, 
  3.13  and this section, equals the sum of the amounts computed in 
  3.14  paragraphs (b) and (c).  This aid does not limit the obligation 
  3.15  to transport pupils under sections 123B.84 to 123B.87. 
  3.16     (b) For regular and excess transportation according to 
  3.17  subdivision 1, paragraph (b), clauses (1) and (2), an amount 
  3.18  equal to the product of: 
  3.19     (1) the district's actual expenditure per pupil transported 
  3.20  in the regular and excess transportation categories during the 
  3.21  second preceding school year; times 
  3.22     (2) the number of nonpublic school pupils residing in the 
  3.23  district who receive regular or excess transportation service or 
  3.24  reimbursement for the current school year; times 
  3.25     (3) the ratio of the formula allowance pursuant to section 
  3.26  126C.10, subdivision 2, for the current school year to the 
  3.27  formula allowance pursuant to section 126C.10, subdivision 2, 
  3.28  for the second preceding school year. 
  3.29     (c) For nonpublic nonregular transportation according to 
  3.30  subdivision 1, paragraph (b), clause (5), an amount equal to the 
  3.31  product of: 
  3.32     (1) the district's actual expenditure for nonpublic 
  3.33  nonregular transportation during the second preceding school 
  3.34  year; times 
  3.35     (2) the ratio of the formula allowance pursuant to section 
  3.36  126C.10, subdivision 2, for the current school year to the 
  4.1   formula allowance pursuant to section 126C.10, subdivision 2, 
  4.2   for the second preceding school year. 
  4.3      (d) Notwithstanding the amount of the formula allowance for 
  4.4   fiscal years ~~2000, 2001, and 2002~~ 2003 and 2004 in section 
  4.5   126C.10, subdivision 2, the commissioner shall use ~~the amount of~~ 
  4.6   ~~the formula allowance for the current year plus $87 in~~ 
  4.7   ~~determining the nonpublic pupil transportation revenue in~~ 
  4.8   ~~paragraphs (b) and (c) for fiscal year 2000, and~~ the amount of 
  4.9   the formula allowance less ~~$110~~ $415 in determining the 
  4.10  nonpublic pupil transportation revenue in paragraphs (b) and (c) 
  4.11  for fiscal years ~~2001~~ 2003 and ~~2002~~ 2004. 
  4.12     Sec. 3.  Minnesota Statutes 2000, section 124D.09, 
  4.13  subdivision 13, is amended to read: 
  4.14     Subd. 13.  [FINANCIAL ARRANGEMENTS.] For a pupil enrolled 
  4.15  in a course under this section, the department must make 
  4.16  payments according to this subdivision for courses that were 
  4.17  taken for secondary credit.  
  4.18     The department must not make payments to a school district 
  4.19  or post-secondary institution for a course taken for 
  4.20  post-secondary credit only.  The department must not make 
  4.21  payments to a post-secondary institution for a course from which 
  4.22  a student officially withdraws during the first 14 days of the 
  4.23  quarter or semester or who has been absent from the 
  4.24  post-secondary institution for the first 15 consecutive school 
  4.25  days of the quarter or semester and is not receiving instruction 
  4.26  in the home or hospital. 
  4.27     A post-secondary institution shall receive the following: 
  4.28     (1) for an institution granting quarter credit, the 
  4.29  reimbursement per credit hour shall be an amount equal to 88 
  4.30  percent of the product of the formula allowance minus $415, 
  4.31  multiplied by 1.3, and divided by 45; or 
  4.32     (2) for an institution granting semester credit, the 
  4.33  reimbursement per credit hour shall be an amount equal to 88 
  4.34  percent of the product of the general revenue formula allowance, 
  4.35  multiplied by 1.3, and divided by 30. 
  4.36     The department must pay to each post-secondary institution 
  5.1   100 percent of the amount in clause (1) or (2) within 30 days of 
  5.2   receiving initial enrollment information each quarter or 
  5.3   semester.  If changes in enrollment occur during a quarter or 
  5.4   semester, the change shall be reported by the post-secondary 
  5.5   institution at the time the enrollment information for the 
  5.6   succeeding quarter or semester is submitted.  At any time the 
  5.7   department notifies a post-secondary institution that an 
  5.8   overpayment has been made, the institution shall promptly remit 
  5.9   the amount due.  
  5.10     Sec. 4.  Minnesota Statutes 2000, section 124D.09, 
  5.11  subdivision 15, is amended to read: 
  5.12     Subd. 15.  [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 
  5.13  (a) For a pupil enrolled in a course according to this 
  5.14  section during fiscal year 2003, the department must make 
  5.15  payments according to this subdivision for courses taken to 
  5.16  fulfill high school graduation requirements by pupils eligible 
  5.17  for adult high school graduation aid.  
  5.18     (b) The department must not make payments to a district or 
  5.19  post-secondary institution for a course taken for post-secondary 
  5.20  credit only.  The department must not make payments to a 
  5.21  post-secondary institution for a course from which a student 
  5.22  officially withdraws during the first 14 days of the quarter or 
  5.23  semester or who has been absent from the post-secondary 
  5.24  institution for the first 15 consecutive school days of the 
  5.25  quarter or semester and is not receiving instruction in the home 
  5.26  or hospital. 
  5.27     (c) A post-secondary institution shall receive the 
  5.28  following: 
  5.29     (1) for an institution granting quarter credit, the 
  5.30  reimbursement per credit hour shall be an amount equal to 88 
  5.31  percent of the product of the formula allowance minus $415, 
  5.32  multiplied by 1.3, and divided by 45; or 
  5.33     (2) for an institution granting semester credit, the 
  5.34  reimbursement per credit hour shall be an amount equal to 88 
  5.35  percent of the product of the general revenue formula 
  5.36  allowance minus $415 multiplied by 1.3, and divided by 30. 
  6.1      The department must pay to each post-secondary institution 
  6.2   100 percent of the amount in clause (1) or (2) within 30 days of 
  6.3   receiving initial enrollment information each quarter or 
  6.4   semester.  If changes in enrollment occur during a quarter or 
  6.5   semester, the change shall be reported by the post-secondary 
  6.6   institution at the time the enrollment information for the 
  6.7   succeeding quarter or semester is submitted.  At any time the 
  6.8   department notifies a post-secondary institution that an 
  6.9   overpayment has been made, the institution shall promptly remit 
  6.10  the amount due. 
  6.11     (d) A school district shall receive: 
  6.12     (1) for a pupil who is not enrolled in classes at a 
  6.13  secondary program, 12 percent of the general education formula 
  6.14  allowance minus $415 times .65, times 1.3; or 
  6.15     (2) for a pupil who attends classes at a secondary program 
  6.16  part time, the general education formula allowance minus $415 
  6.17  times .65, times 1.3, times the ratio of the total number of 
  6.18  hours the pupil is in membership for courses taken by the pupil 
  6.19  for credit to 1020 hours.  
  6.20     Sec. 5.  Minnesota Statutes 2000, section 124D.68, 
  6.21  subdivision 9, is amended to read: 
  6.22     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
  6.23  attending an eligible program full time under subdivision 3, 
  6.24  paragraph (d), the department must pay 90 percent of the 
  6.25  district's average general education revenue less basic skills 
  6.26  revenue minus $415 to the eligible program and ten percent of 
  6.27  the district's average general education revenue less basic 
  6.28  skills revenue minus $415 to the contracting district within 30 
  6.29  days after the eligible program verifies enrollment using the 
  6.30  form provided by the department.  For a pupil attending an 
  6.31  eligible program part time, revenue shall be reduced 
  6.32  proportionately, according to the amount of time the pupil 
  6.33  attends the program, and the payments to the eligible program 
  6.34  and the contracting district shall be reduced accordingly.  A 
  6.35  pupil for whom payment is made according to this section may not 
  6.36  be counted by any district for any purpose other than 
  7.1   computation of general education revenue.  If payment is made 
  7.2   for a pupil under this subdivision, a district shall not 
  7.3   reimburse a program under section 124D.69 for the same pupil.  
  7.4   Basic skills revenue shall be paid according to section 126C.10, 
  7.5   subdivision 4. 
  7.6      (b) The department must pay up to 100 percent of the 
  7.7   revenue to the eligible program if there is an agreement to that 
  7.8   effect between the school district and the eligible program. 
  7.9      (c) Notwithstanding paragraphs (a) and (b), for an eligible 
  7.10  program that provides chemical treatment services to students, 
  7.11  the department must pay 100 percent of the revenue to the 
  7.12  eligible program. 
  7.13     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  7.14  124D.69, subdivision 1, is amended to read: 
  7.15     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
  7.16  program, eligible under section 124D.68, subdivision 3, 
  7.17  paragraph (d), or subdivision 4, operated by a private 
  7.18  organization that has contracted with a school district to 
  7.19  provide educational services for eligible pupils under section 
  7.20  124D.68, subdivision 2, the district contracting with the 
  7.21  private organization must reimburse the provider an amount equal 
  7.22  to at least 95 percent of the district's average general 
  7.23  education less basic skills revenue per pupil unit times the 
  7.24  number of pupil units for pupils attending the program.  Basic 
  7.25  skills revenue shall be paid according to section 126C.10, 
  7.26  subdivision 4.  Compensatory revenue must be allocated according 
  7.27  to section 126C.15, subdivision 2.  For a pupil attending the 
  7.28  program part time, the revenue paid to the program must be 
  7.29  reduced proportionately, according to the amount of time the 
  7.30  pupil attends the program, and revenue paid to the district 
  7.31  shall be reduced accordingly.  Pupils for whom a district 
  7.32  provides reimbursement may not be counted by the district for 
  7.33  any purpose other than computation of general education 
  7.34  revenue.  Basic revenue for pupils for whom a district provides 
  7.35  reimbursement shall be calculated using the formula allowance 
  7.36  minus $415.  If payment is made to a district or program for a 
  8.1   pupil under this section, the department must not make a payment 
  8.2   for the same pupil under section 124D.68, subdivision 9. 
  8.3      Sec. 7.  Minnesota Statutes 2000, section 126C.01, 
  8.4   subdivision 7, is amended to read: 
  8.5      Subd. 7.  [SHARED TIME AID.] For fiscal year 2002, aid for 
  8.6   shared time pupils must equal the formula allowance times the 
  8.7   full-time equivalent resident pupil units for shared time 
  8.8   pupils.  For fiscal year 2003 and later, aid for shared time 
  8.9   pupils must equal the formula allowance minus $415 times the 
  8.10  full-time equivalent resident pupil units for shared time 
  8.11  pupils.  Aid for shared time pupils is in addition to any other 
  8.12  aid to which the district is otherwise entitled.  Shared time 
  8.13  average daily membership may not be used in the computation of 
  8.14  pupil units under section 126C.05, subdivision 1, for any 
  8.15  purpose other than the computation of shared time aid pursuant 
  8.16  to subdivisions 6 to 8 and section 126C.19, subdivisions 1 to 3. 
  8.17     Sec. 8.  Minnesota Statutes 2001 Supplement, section 
  8.18  126C.05, subdivision 15, is amended to read: 
  8.19     Subd. 15.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
  8.20  enrolled in a learning year program under section 124D.128, an 
  8.21  area learning center under sections 123A.05 and 123A.06, an 
  8.22  alternative program approved by the commissioner, or a contract 
  8.23  alternative program under section 124D.68, subdivision 3, 
  8.24  paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
  8.25  school year for a secondary student, more than 935 hours in a 
  8.26  school year for an elementary student, or more than 425 hours in 
  8.27  a school year for a kindergarten student without a disability, 
  8.28  that pupil may be counted as more than one pupil in average 
  8.29  daily membership.  The amount in excess of one pupil must be 
  8.30  determined by the ratio of the number of hours of instruction 
  8.31  provided to that pupil in excess of:  (i) the greater of 1,020 
  8.32  hours or the number of hours required for a full-time secondary 
  8.33  pupil in the district to 1,020 for a secondary pupil; (ii) the 
  8.34  greater of 935 hours or the number of hours required for a 
  8.35  full-time elementary pupil in the district to 935 for an 
  8.36  elementary pupil in grades 1 through 6; and (iii) the greater of 
  9.1   425 hours or the number of hours required for a full-time 
  9.2   kindergarten student without a disability in the district to 425 
  9.3   for a kindergarten student without a disability.  Hours that 
  9.4   occur after the close of the instructional year in June shall be 
  9.5   attributable to the following fiscal year.  A kindergarten 
  9.6   student must not be counted as more than 1.2 pupils in average 
  9.7   daily membership under this subdivision.  A student in grades 1 
  9.8   through 12 must not be counted as more than 1.5 pupils in 
  9.9   average daily membership under this subdivision. 
  9.10     (b)(i) To receive general education revenue for a pupil in 
  9.11  an alternative program that has an independent study component, 
  9.12  a district must meet the requirements in this paragraph.  The 
  9.13  district must develop, for the pupil, a continual learning plan 
  9.14  consistent with section 124D.128, subdivision 3.  Each school 
  9.15  district that has a state-approved public alternative program 
  9.16  must reserve revenue in an amount equal to at least 90 percent 
  9.17  of the district average general education revenue per pupil unit 
  9.18  less compensatory revenue per pupil unit times the number of 
  9.19  pupil units generated by students attending a state-approved 
  9.20  public alternative program.  The amount of reserved revenue 
  9.21  available under this subdivision may only be spent for program 
  9.22  costs associated with the state-approved public alternative 
  9.23  program.  Compensatory revenue must be allocated according to 
  9.24  section 126C.15, subdivision 2. 
  9.25     (ii) General education revenue for a pupil in an approved 
  9.26  alternative program without an independent study component must 
  9.27  be prorated for a pupil participating for less than a full year, 
  9.28  or its equivalent.  The district must develop a continual 
  9.29  learning plan for the pupil, consistent with section 124D.128, 
  9.30  subdivision 3.  Each school district that has a state-approved 
  9.31  public alternative program must reserve revenue in an amount 
  9.32  equal to at least 90 percent of the district average general 
  9.33  education revenue per pupil unit less compensatory revenue per 
  9.34  pupil unit times the number of pupil units generated by students 
  9.35  attending a state-approved public alternative program.  The 
  9.36  amount of reserved revenue available under this subdivision may 
 10.1   only be spent for program costs associated with the 
 10.2   state-approved public alternative program.  Compensatory revenue 
 10.3   must be allocated according to section 126C.15, subdivision 2.  
 10.4      (iii) General education revenue for a pupil in an approved 
 10.5   alternative program that has an independent study component must 
 10.6   be paid for each hour of teacher contact time and each hour of 
 10.7   independent study time completed toward a credit or graduation 
 10.8   standards necessary for graduation.  Average daily membership 
 10.9   for a pupil shall equal the number of hours of teacher contact 
 10.10  time and independent study time divided by 1,020. 
 10.11     (iv) For an alternative program having an independent study 
 10.12  component, the commissioner shall require a description of the 
 10.13  courses in the program, the kinds of independent study involved, 
 10.14  the expected learning outcomes of the courses, and the means of 
 10.15  measuring student performance against the expected outcomes.  
 10.16     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
 10.17  126C.10, subdivision 1, is amended to read: 
 10.18     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 10.19  year 2002, the general education revenue for each district 
 10.20  equals the sum of the district's basic revenue, basic skills 
 10.21  revenue, training and experience revenue, secondary sparsity 
 10.22  revenue, elementary sparsity revenue, transportation sparsity 
 10.23  revenue, total operating capital revenue, equity revenue, 
 10.24  transition revenue, and supplemental revenue. 
 10.25     (b) For fiscal year 2003 ~~and later~~, the general education 
 10.26  revenue for each district equals the sum of the district's basic 
 10.27  revenue, basic skills revenue, training and experience revenue, 
 10.28  secondary sparsity revenue, elementary sparsity revenue, 
 10.29  transportation sparsity revenue, total operating capital 
 10.30  revenue, revenue growth limit adjustment, and equity revenue. 
 10.31     (c) For fiscal year 2004, the general education revenue for 
 10.32  each district equals the sum of the district's basic revenue, 
 10.33  basic skills revenue, training and experience revenue, secondary 
 10.34  sparsity revenue, elementary sparsity revenue, transportation 
 10.35  sparsity revenue, total operating capital revenue, and revenue 
 10.36  growth limit adjustment. 
 11.1      (d) For fiscal year 2005 and later, the general education 
 11.2   revenue for each district equals the sum of the district's basic 
 11.3   revenue, basic skills revenue, secondary sparsity revenue, 
 11.4   elementary sparsity revenue, transportation sparsity revenue, 
 11.5   total operating capital revenue, and revenue growth limit 
 11.6   adjustment. 
 11.7      Sec. 10.  Minnesota Statutes 2000, section 126C.10, 
 11.8   subdivision 5, is amended to read: 
 11.9      Subd. 5.  [TRAINING AND EXPERIENCE REVENUE.] (a) For fiscal 
 11.10  year 2003, the training and experience revenue for each district 
 11.11  equals the greater of zero or the result of the following 
 11.12  computation:  
 11.13     (1) subtract .8 from the training and experience index; 
 11.14     (2) multiply the result in clause (1) by the product of 
 11.15  $660 times the adjusted marginal cost pupil units for the school 
 11.16  year. 
 11.17     (b) For fiscal year 2004, the training and experience 
 11.18  revenue for each district equals the product of 50 percent times 
 11.19  the district's training and experience revenue for fiscal year 
 11.20  2003 times the ratio of the district's adjusted marginal cost 
 11.21  pupil units for fiscal year 2004 to the district's adjusted 
 11.22  marginal cost pupil units for fiscal year 2003. 
 11.23     Sec. 11.  Minnesota Statutes 2001 Supplement, section 
 11.24  126C.10, subdivision 24, is amended to read: 
 11.25     Subd. 24.  [FISCAL YEAR 2002 EQUITY REVENUE.] (a) For 
 11.26  fiscal year 2002, a school district qualifies for equity revenue 
 11.27  if: 
 11.28     (1) the school district's adjusted marginal cost pupil unit 
 11.29  amount of basic revenue, supplemental revenue, transition 
 11.30  revenue, and referendum revenue is less than the value of the 
 11.31  school district at or immediately above the ~~95th~~ 90th percentile 
 11.32  of school districts in its equity region for those revenue 
 11.33  categories; and 
 11.34     (2) the school district's administrative offices are not 
 11.35  located in a city of the first class on July 1, 1999. 
 11.36     (b) Equity revenue for a qualifying district that receives 
 12.1   referendum revenue under section 126C.17, subdivision 4, equals 
 12.2   the product of (1) the district's adjusted marginal cost pupil 
 12.3   units for that year; times (2) the sum of (i) $10, plus (ii) 
 12.4   ~~$55~~ $30, times the school district's equity index computed under 
 12.5   subdivision 27. 
 12.6      (c) Equity revenue for a qualifying district that does not 
 12.7   receive referendum revenue under section 126C.17, subdivision 4, 
 12.8   equals the product of the district's adjusted marginal cost 
 12.9   pupil units for that year times $10. 
 12.10     Sec. 12.  Minnesota Statutes 2000, section 126C.10, is 
 12.11  amended by adding a subdivision to read: 
 12.12     Subd. 24a.  [FISCAL YEAR 2003 EQUITY REVENUE.] (a) For 
 12.13  fiscal year 2003, a school district qualifies for equity revenue 
 12.14  if: 
 12.15     (1) the school district's adjusted marginal cost pupil unit 
 12.16  amount of basic revenue and referendum revenue is less than the 
 12.17  value of the school district at or immediately above the 95th 
 12.18  percentile of school districts in its equity region for those 
 12.19  revenue categories; and 
 12.20     (2) the school district's administrative offices are not 
 12.21  located in a city of the first class on July 1, 1999. 
 12.22     (b) Fiscal year 2003 equity revenue for a qualifying 
 12.23  district that receives referendum revenue under section 126C.17, 
 12.24  subdivision 4, equals the product of (1) the district's adjusted 
 12.25  marginal cost pupil units for fiscal year 2003; times (2) the 
 12.26  sum of (i) $10, plus (ii) $55, times the school district's 
 12.27  equity index computed under subdivision 27. 
 12.28     (c) Fiscal year 2003 equity revenue for a qualifying 
 12.29  district that does not receive referendum revenue under section 
 12.30  126C.17, subdivision 4, equals the product of the district's 
 12.31  adjusted marginal cost pupil units for fiscal year 2003 times 
 12.32  $10. 
 12.33     Sec. 13.  Minnesota Statutes 2001 Supplement, section 
 12.34  126C.10, subdivision 25, is amended to read: 
 12.35     Subd. 25.  [FISCAL YEAR 2002 REGIONAL EQUITY GAP.] For 
 12.36  fiscal year 2002, the regional equity gap equals the difference 
 13.1   between the value of the school district at or immediately above 
 13.2   the fifth percentile of adjusted general revenue per adjusted 
 13.3   marginal cost pupil unit and the value of the school district at 
 13.4   or immediately above the ~~95th~~ 90th percentile of adjusted 
 13.5   general revenue per adjusted marginal cost pupil unit. 
 13.6      Sec. 14.  Minnesota Statutes 2000, section 126C.10, is 
 13.7   amended by adding a subdivision to read: 
 13.8      Subd. 25a.  [FISCAL YEAR 2003 REGIONAL EQUITY GAP.] For 
 13.9   fiscal year 2003, the regional equity gap equals the difference 
 13.10  between the value of the school district at or immediately above 
 13.11  the fifth percentile of adjusted general revenue per adjusted 
 13.12  marginal cost pupil unit and the value of the school district at 
 13.13  or immediately above the 95th percentile of adjusted general 
 13.14  revenue per adjusted marginal cost pupil unit. 
 13.15     Sec. 15.  Minnesota Statutes 2000, section 126C.10, 
 13.16  subdivision 26, is amended to read: 
 13.17     Subd. 26.  [FISCAL YEAR 2002 DISTRICT EQUITY GAP.] For 
 13.18  fiscal year 2002, a district's equity gap equals the greater of 
 13.19  zero or the difference between the district's adjusted general 
 13.20  revenue and the value of the school district at or immediately 
 13.21  above the regional 90th percentile of adjusted general revenue 
 13.22  per adjusted marginal cost pupil unit. 
 13.23     Sec. 16.  Minnesota Statutes 2000, section 126C.10, is 
 13.24  amended by adding a subdivision to read: 
 13.25     Subd. 26a.  [FISCAL YEAR 2003 DISTRICT EQUITY GAP.] For 
 13.26  fiscal year 2003, a district's equity gap equals the greater of 
 13.27  zero or the difference between the district's adjusted general 
 13.28  revenue and the value of the school district at or immediately 
 13.29  above the regional 95th percentile of adjusted general revenue 
 13.30  per adjusted marginal cost pupil unit. 
 13.31     Sec. 17.  Minnesota Statutes 2000, section 126C.10, 
 13.32  subdivision 28, is amended to read: 
 13.33     Subd. 28.  [EQUITY REGION.] For the purposes of computing 
 13.34  equity revenue under ~~subdivision 23~~ subdivisions 24 and 24a, a 
 13.35  district whose administrative offices on July 1, 1999, is 
 13.36  located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or 
 14.1   Washington county is part of the metro equity region.  Districts 
 14.2   whose administrative offices on July 1, 1999, are not located in 
 14.3   Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington 
 14.4   county are part of the rural equity region. 
 14.5      Sec. 18.  Minnesota Statutes 2000, section 126C.10, is 
 14.6   amended by adding a subdivision to read: 
 14.7      Subd. 29.  [REVENUE GROWTH LIMIT ADJUSTMENT.] (a) For 
 14.8   fiscal year 2003, a district's revenue growth limit adjustment 
 14.9   equals the lesser of zero or the product of the district's 
 14.10  adjusted marginal cost pupil units for fiscal year 2003 times 
 14.11  the difference between:  
 14.12     (1) the sum of the district's fiscal year 2002 general 
 14.13  education allowance, the referendum transfer adjustment, and the 
 14.14  revenue growth limit; and 
 14.15     (2) the district's fiscal year 2003 initial general 
 14.16  education allowance. 
 14.17     (b) For fiscal year 2004, a district's revenue growth limit 
 14.18  adjustment equals the lesser of zero or the product of the 
 14.19  district's adjusted marginal cost pupil units for fiscal year 
 14.20  2004 times the difference between:  
 14.21     (1) the sum of the district's fiscal year 2003 general 
 14.22  education allowance and the revenue growth limit; and 
 14.23     (2) the sum of the district's fiscal year 2004 initial 
 14.24  general education allowance and the district's fiscal year 2004 
 14.25  referendum conversion allowance under section 126C.17, 
 14.26  subdivision 13, paragraph (b). 
 14.27     (c) For fiscal year 2005 and later, a district's revenue 
 14.28  growth limit adjustment equals the lesser of zero or the product 
 14.29  of the district's adjusted marginal cost pupil units for the 
 14.30  current fiscal year times the difference between:  
 14.31     (1) the sum of the district's general education allowance 
 14.32  for the previous fiscal year and the revenue growth limit; and 
 14.33     (2) the district's initial general education allowance for 
 14.34  the current fiscal year. 
 14.35     (d) For the purposes of this subdivision, the following 
 14.36  definitions have the meanings given them: 
 15.1      (1) "General education allowance" means the district's 
 15.2   general education revenue for a fiscal year under subdivision 1, 
 15.3   excluding supplemental revenue under subdivision 9 and 
 15.4   transition revenue under subdivision 20, divided by the 
 15.5   district's adjusted marginal cost pupil units for that fiscal 
 15.6   year. 
 15.7      (2) "Initial general education allowance" means the 
 15.8   district's general education revenue for a fiscal year under 
 15.9   subdivision 1, excluding supplemental revenue under subdivision 
 15.10  9, transition revenue under subdivision 20, and the revenue 
 15.11  growth limit adjustment, divided by the district's adjusted 
 15.12  marginal cost pupil units for that fiscal year. 
 15.13     (3) "Referendum transfer adjustment" means the product of 
 15.14  the lesser of $415 or the sum of the district's allowance under 
 15.15  section 126C.16, subdivision 3, plus any additional allowance 
 15.16  authorized under section 126C.17, subdivision 9, for fiscal year 
 15.17  2003 before May 1, 2001, plus the district's maximum referendum 
 15.18  conversion allowance for fiscal year 2003 under section 126C.17, 
 15.19  subdivision 13, paragraph (a), and Laws 2001, First Special 
 15.20  Session chapter 6, article 1, section 53, times the ratio of the 
 15.21  district's resident marginal cost pupil units for fiscal year 
 15.22  2003 to the district's adjusted marginal cost pupil units for 
 15.23  fiscal year 2003. 
 15.24     (e) The revenue growth limit for fiscal year 2003 is $162.  
 15.25  The revenue growth limit for fiscal year 2004 and subsequent 
 15.26  fiscal years equals the sum of $58 plus the difference between 
 15.27  the formula allowance for the current fiscal year and the 
 15.28  formula allowance for the previous fiscal year under subdivision 
 15.29  2. 
 15.30     Sec. 19.  Minnesota Statutes 2000, section 126C.10, is 
 15.31  amended by adding a subdivision to read: 
 15.32     Subd. 30.  [ADJUSTMENT TO RESERVED REVENUES.] (a) The 
 15.33  amount reserved for compensatory education under section 126C.15 
 15.34  shall be reduced by the portion of the revenue growth limit 
 15.35  adjustment attributable to compensatory education, as determined 
 15.36  in this paragraph.  The reduction equals the lesser of the 
 16.1   revenue growth limit adjustment amount or the amount by which 
 16.2   the district's compensatory revenue for the current year exceeds 
 16.3   the product of the district's compensatory revenue for fiscal 
 16.4   year 2002 times 1.026.  The reduction must be allocated among 
 16.5   buildings in proportion to the revenue generated by students 
 16.6   attending each building under subdivision 3. 
 16.7      (b) The amount reserved for staff development under section 
 16.8   122A.61 shall be reduced by two percent of the portion of the 
 16.9   revenue growth limit adjustment not allocated to compensatory 
 16.10  revenue under paragraph (a). 
 16.11     (c) The amount reserved for learning and development under 
 16.12  section 126C.12 shall be reduced by an amount equal to the 
 16.13  product of the amount reserved for learning and development 
 16.14  under section 126C.12 times the ratio of the portion of the 
 16.15  revenue growth limit adjustment not allocated to compensatory 
 16.16  revenue under paragraph (a) to the district's basic revenue 
 16.17  under subdivision 2. 
 16.18     Sec. 20.  Minnesota Statutes 2001 Supplement, section 
 16.19  126C.17, subdivision 1, is amended to read: 
 16.20     Subdivision 1.  [REFERENDUM ALLOWANCE.] (a) For fiscal year 
 16.21  2002, a district's referendum revenue allowance equals the sum 
 16.22  of the allowance under section 126C.16, subdivision 2, plus any 
 16.23  additional allowance per resident marginal cost pupil unit 
 16.24  authorized under subdivision 9 for fiscal year 2002. 
 16.25     (b) For fiscal year 2003 and later, a district's initial 
 16.26  referendum revenue allowance equals the sum of the allowance 
 16.27  under section 126C.16, subdivision 2, plus any additional 
 16.28  allowance per resident marginal cost pupil unit authorized under 
 16.29  subdivision 9 before May 1, 2001, for fiscal year 2002 and 
 16.30  later, plus the referendum conversion allowance approved under 
 16.31  subdivision 13, paragraph (a), minus $415.  For districts with 
 16.32  more than one referendum authority, the reduction must be 
 16.33  computed separately for each authority.  The reduction must be 
 16.34  applied first to the referendum conversion allowance and next to 
 16.35  the authority with the earliest expiration date.  A district's 
 16.36  initial referendum revenue allowance may not be less than zero. 
 17.1      (c) For fiscal year 2003 ~~and later~~, a district's referendum 
 17.2   revenue allowance equals the initial referendum allowance plus 
 17.3   any additional allowance per resident marginal cost pupil unit 
 17.4   authorized under subdivision 9 after April 30, 2001, for fiscal 
 17.5   year 2003 ~~and later~~. 
 17.6      (d) For fiscal year 2004 and later, a district's referendum 
 17.7   revenue allowance equals the fiscal year 2003 referendum revenue 
 17.8   allowance, plus the referendum conversion allowance approved 
 17.9   under subdivision 13, paragraph (b), plus any additional 
 17.10  allowance per resident marginal cost pupil unit authorized under 
 17.11  subdivision 9 which takes effect in fiscal year 2004 or later, 
 17.12  minus any allowance per resident marginal cost pupil unit 
 17.13  effective in fiscal year 2003 which has expired for that fiscal 
 17.14  year. 
 17.15     Sec. 21.  Minnesota Statutes 2001 Supplement, section 
 17.16  126C.17, subdivision 2, is amended to read: 
 17.17     Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 
 17.18  subdivision 1, for fiscal year 2002, a district's referendum 
 17.19  allowance must not exceed the greater of:  
 17.20     (1) the district's referendum allowance for fiscal year 
 17.21  1994; 
 17.22     (2) 25 percent of the formula allowance; or 
 17.23     (3) for a newly reorganized district created after July 1, 
 17.24  1994, the sum of the referendum revenue authority for the 
 17.25  reorganizing districts for the fiscal year preceding the 
 17.26  reorganization, divided by the sum of the resident marginal cost 
 17.27  pupil units of the reorganizing districts for the fiscal year 
 17.28  preceding the reorganization. 
 17.29     (b) Notwithstanding subdivision 1, for fiscal year 2003 ~~and~~ 
 17.30  ~~later fiscal years~~, a district's referendum allowance must not 
 17.31  exceed the greater of: 
 17.32     (1) the sum of a district's referendum allowance for fiscal 
 17.33  year 1994 times 1.162 plus its referendum conversion allowance 
 17.34  for fiscal year 2003, minus $415; 
 17.35     (2) 18.2 percent of the formula allowance; 
 17.36     (3) for a newly reorganized district created on July 1, 
 18.1   2002, the referendum revenue authority for each reorganizing 
 18.2   district in the year preceding reorganization divided by its 
 18.3   resident marginal cost pupil units for the year preceding 
 18.4   reorganization, minus $415; or 
 18.5      (4) for a newly reorganized district created after July 1, 
 18.6   2002, the referendum revenue authority for each reorganizing 
 18.7   district in the year preceding reorganization divided by its 
 18.8   resident marginal cost pupil units for the year preceding 
 18.9   reorganization. 
 18.10     (c) Notwithstanding subdivision 1, for fiscal year 2004 and 
 18.11  later, a district's referendum allowance must not exceed the 
 18.12  greater of: 
 18.13     (1) the sum of a district's referendum allowance for fiscal 
 18.14  year 1994 times 1.162 plus its referendum conversion allowance 
 18.15  for fiscal year 2003 under subdivision 13, paragraph (a), plus 
 18.16  its referendum conversion allowance for fiscal year 2004 under 
 18.17  subdivision 13, paragraph (b), minus $415; 
 18.18     (2) $837.38 plus its referendum conversion allowance for 
 18.19  fiscal year 2004 under subdivision 13, paragraph (b); 
 18.20     (3) 18.2 percent of the formula allowance; 
 18.21     (4) for a newly reorganized district created on July 1, 
 18.22  2002, the referendum revenue authority for each reorganizing 
 18.23  district in the year preceding reorganization divided by its 
 18.24  resident marginal cost pupil units for the year preceding 
 18.25  reorganization, minus $415; or 
 18.26     (5) for a newly reorganized district created after July 1, 
 18.27  2002, the referendum revenue authority for each reorganizing 
 18.28  district in the year preceding reorganization divided by its 
 18.29  resident marginal cost pupil units for the year preceding 
 18.30  reorganization. 
 18.31     Sec. 22.  Minnesota Statutes 2001 Supplement, section 
 18.32  126C.17, subdivision 13, is amended to read: 
 18.33     Subd. 13.  [REFERENDUM CONVERSION ALLOWANCE.] (a) A school 
 18.34  district that received supplemental or transition revenue in 
 18.35  fiscal year 2002 may convert its supplemental revenue conversion 
 18.36  allowance and transition revenue conversion allowance to 
 19.1   additional referendum allowance under subdivision 1 for fiscal 
 19.2   year 2003 and thereafter.  A majority of the school board must 
 19.3   approve the conversion at a public meeting before November 1, 
 19.4   2001.  For a district with other referendum authority, the 
 19.5   referendum conversion allowance approved by the board continues 
 19.6   until the portion of the district's other referendum authority 
 19.7   with the earliest expiration date after June 30, 2006, expires.  
 19.8   For a district with no other referendum authority, the 
 19.9   referendum conversion allowance approved by the board continues 
 19.10  until June 30, 2012. 
 19.11     (b) A school district that received equity revenue in 
 19.12  fiscal year 2003 may convert its equity conversion allowance to 
 19.13  additional referendum allowance under subdivision 1 for fiscal 
 19.14  year 2004 and thereafter.  A majority of the school board must 
 19.15  approve the conversion at a public meeting before September 15, 
 19.16  2002.  For a district with other referendum authority, the 
 19.17  referendum conversion allowance approved by the board continues 
 19.18  until the portion of the district's other referendum authority 
 19.19  with the earliest expiration date after June 30, 2006, expires.  
 19.20  For a district with no other referendum authority, the 
 19.21  referendum conversion allowance approved by the board continues 
 19.22  until June 30, 2012. 
 19.23     Sec. 23.  [EQUITY CONVERSION ALLOWANCE.] 
 19.24     (a) A district's equity conversion allowance is equal to 
 19.25  the district's fiscal year 2003 equity revenue divided by the 
 19.26  district's fiscal year 2003 resident marginal cost pupil units. 
 19.27     (b) Notwithstanding paragraph (a), the equity conversion 
 19.28  allowance for a district with no referendum revenue for fiscal 
 19.29  year 2003, but with referendum revenue authorized for fiscal 
 19.30  year 2004 under section 126C.17, subdivision 9, before December 
 19.31  31, 2001, must be computed using the equity revenue the district 
 19.32  would have received for fiscal year 2003 if the referendum 
 19.33  authority had been in effect for fiscal year 2003. 
 19.34     Sec. 24.  [FISCAL YEAR 2004 TRAINING AND EXPERIENCE LEVY.] 
 19.35     For taxes payable in 2003, a district may levy an amount 
 19.36  equal to the district's estimated training and experience 
 20.1   revenue for fiscal year 2004 under Minnesota Statutes, section 
 20.2   126C.10, subdivision 5.  For taxes payable in 2005, the levy 
 20.3   shall be adjusted by the difference between the estimated 
 20.4   revenue used to determine the levy for taxes payable in 2003 and 
 20.5   the actual revenue. 
 20.6      Sec. 25.  [FISCAL YEAR 2004 GENERAL EDUCATION AID.] 
 20.7      (a) Notwithstanding Minnesota Statutes, section 126C.13, 
 20.8   subdivision 4, a district's general education aid for fiscal 
 20.9   year 2004 is the sum of the following amounts:  
 20.10     (1) general education revenue excluding training and 
 20.11  experience revenue; 
 20.12     (2) shared time aid according to Minnesota Statutes, 
 20.13  section 126C.01, subdivision 7; and 
 20.14     (3) referendum aid according to Minnesota Statutes, section 
 20.15  126C.17. 
 20.16     (b) For fiscal year 2004, training and experience revenue 
 20.17  must be included in the calculation of general education aid for 
 20.18  charter schools under Minnesota Statutes, section 124D.11, 
 20.19  subdivision 1. 
 20.20     Sec. 26.  Laws 2001, First Special Session chapter 6, 
 20.21  article 1, section 54, subdivision 2, is amended to read: 
 20.22     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 20.23  general and supplemental education aid:  
 20.24       ~~$3,364,596,000~~ $3,391,809,000 .....     2002
 20.25       ~~$3,506,910,000~~ $4,928,008,000 .....     2003
 20.26     The 2002 appropriation includes ~~$318,932,000~~ $323,767,000 
 20.27  for 2001 and ~~$3,045,664,000~~ $3,068,042,000 for 2002.  
 20.28     The 2003 appropriation includes ~~$338,407,000~~ $333,779,000 
 20.29  for 2002 and ~~$3,168,503,000~~ $4,594,229,000 for 2003.  
 20.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 20.31  following final enactment. 
 20.32     Sec. 27.  Laws 2001, First Special Session chapter 6, 
 20.33  article 1, section 54, subdivision 4, is amended to read: 
 20.34     Subd. 4.  [ABATEMENT AID.] For abatement aid according to 
 20.35  Minnesota Statutes, section 127A.49:  
 20.36       ~~$7,098,000~~ $5,698,000    .....     2002 
 21.1        ~~$7,692,000~~ $2,990,000    .....     2003 
 21.2      The 2002 appropriation includes $640,000 for 2001 and 
 21.3   ~~$6,458,000~~ $5,058,000 for 2002.  
 21.4      The 2003 appropriation includes ~~$717,000~~ $562,000 for 2002 
 21.5   and ~~$6,975,000~~ $2,428,000 for 2003.  
 21.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 21.7   following final enactment. 
 21.8      Sec. 28.  Laws 2001, First Special Session chapter 6, 
 21.9   article 1, section 54, subdivision 5, is amended to read: 
 21.10     Subd. 5.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
 21.11  education aid according to Minnesota Statutes, sections 123.79 
 21.12  and 123B.40 to 123B.43: 
 21.13       ~~$14,099,000~~ $14,441,000   .....     2002 
 21.14       ~~$16,472,000~~ $15,423,000   .....     2003 
 21.15     The 2002 appropriation includes $1,330,000 for 2001 and 
 21.16  ~~$12,769,000~~ $13,111,000 for 2002. 
 21.17     The 2003 appropriation includes ~~$1,419,000~~ $1,457,000 for 
 21.18  2002 and ~~$15,053,000~~ $13,966,000 for 2003. 
 21.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 21.20  following final enactment. 
 21.21     Sec. 29.  Laws 2001, First Special Session chapter 6, 
 21.22  article 1, section 54, subdivision 6, is amended to read: 
 21.23     Subd. 6.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 21.24  pupil transportation aid under Minnesota Statutes, section 
 21.25  123B.92, subdivision 9: 
 21.26       ~~$20,488,000~~ $20,635,000    .....     2002 
 21.27       ~~$24,802,000~~ $23,247,000    .....     2003 
 21.28     The 2002 appropriation includes $2,000,000 for 2001 and 
 21.29  ~~$18,488,000~~ $18,635,000 for 2002. 
 21.30     The 2003 appropriation includes ~~$2,054,000~~ $2,070,000 for 
 21.31  2002 and ~~$22,748,000~~ $21,177,000 for 2003. 
 21.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 21.33  following final enactment. 
 21.34     Sec. 30.  Laws 2001, First Special Session chapter 6, 
 21.35  article 1, section 54, subdivision 7, is amended to read: 
 21.36     Subd. 7.  [CONSOLIDATION TRANSITION AID.] For districts 
 22.1   consolidating under Minnesota Statutes, section 123A.485: 
 22.2        ~~$675,000~~ $531,000       .....     2002 
 22.3        ~~$669,000~~ $736,000       .....     2003 
 22.4      The 2002 appropriation includes $44,000 for 2001 and 
 22.5   ~~$631,000~~ $487,000 for 2002. 
 22.6      The 2003 appropriation includes ~~$70,000~~ $54,000 for 2002 
 22.7   and ~~$599,000~~ $682,000 for 2003. 
 22.8      Any balance in the first year does not cancel but is 
 22.9   available in the second year. 
 22.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 22.11  following final enactment. 
 22.12     Sec. 31.  [REPEALER.] 
 22.13     Minnesota Statutes 2000, section 124D.09, subdivision 15, 
 22.14  is repealed effective for revenue for fiscal year 2004.  Laws 
 22.15  2000, chapter 489, article 2, section 36, as amended by Laws 
 22.16  2001, First Special Session chapter 6, article 1, section 44, is 
 22.17  repealed effective for revenue for fiscal year 2004. 
 22.18                             ARTICLE 2 
 22.19                        EDUCATION EXCELLENCE 
 22.20     Section 1.  Minnesota Statutes 2000, section 120B.13, 
 22.21  subdivision 3, is amended to read: 
 22.22     Subd. 3.  [SUBSIDY FOR EXAMINATION FEES.] The state may pay 
 22.23  all or part of the fee for advanced placement or international 
 22.24  baccalaureate examinations for pupils of low-income families in 
 22.25  public and nonpublic schools.  The commissioner shall adopt a 
 22.26  schedule for fee subsidies that may allow payment of the entire 
 22.27  fee for low-income families, as defined by the 
 22.28  commissioner.  ~~The commissioner may also determine the~~ 
 22.29  ~~circumstances under which the fee is subsidized, in whole or in~~ 
 22.30  ~~part.~~  The commissioner shall determine procedures for state 
 22.31  payments of fees. 
 22.32     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 22.33  124D.11, subdivision 4, is amended to read: 
 22.34     Subd. 4.  [BUILDING LEASE AID.] (a) When a charter school 
 22.35  finds it economically advantageous to rent or lease a building 
 22.36  or land for any instructional purposes and it determines that 
 23.1   the total operating capital revenue under section 126C.10, 
 23.2   subdivision 13, is insufficient for this purpose, it may apply 
 23.3   to the commissioner for building lease aid for this purpose.  
 23.4   The commissioner must review and either approve or deny a lease 
 23.5   aid application using the following criteria: 
 23.6      (1) the reasonableness of the price based on current market 
 23.7   values; 
 23.8      (2) the extent to which the lease conforms to applicable 
 23.9   state laws and rules; and 
 23.10     (3) the appropriateness of the proposed lease in the 
 23.11  context of the space needs and financial circumstances of the 
 23.12  charter school. 
 23.13     (b) A charter school must not use the building lease aid it 
 23.14  receives for custodial, maintenance service, utility, or other 
 23.15  operating costs.  
 23.16     (c) For fiscal year 2002, the amount of building lease aid 
 23.17  per pupil unit served for a charter school ~~for any year~~ shall 
 23.18  not exceed the lesser of ~~(a)~~ (1) 90 percent of the approved cost 
 23.19  or ~~(b)~~ (2) the product of the pupil units served for the current 
 23.20  school year times $1,500.  
 23.21     (d) For fiscal year 2003 and later, the amount of building 
 23.22  lease aid per pupil unit served for a charter school shall not 
 23.23  exceed the lesser of (1) 90 percent of the approved cost or (2) 
 23.24  the product of the pupil units served for the current school 
 23.25  year times the greater of $750 or the sum of the state average 
 23.26  school district revenue per adjusted pupil unit in the second 
 23.27  prior fiscal year for debt service equalization aid according to 
 23.28  section 123B.53, alternative facilities aid according to section 
 23.29  123B.59, health and safety revenue according to 123B.57, 
 23.30  alternative facilities levies according to 123B.59, capital 
 23.31  project referendum levies according to section 123B.63, lease 
 23.32  levies according to section 126C.40, subdivision 1, and net debt 
 23.33  service levies according to section 123B.53 and chapter 475, 
 23.34  excluding net debt service levies for equipment bonds according 
 23.35  to section 123B.61, net debt service levies for facilities bonds 
 23.36  according to section 123B.62, and debt service abatement levies 
 24.1   according to section 126C.46.  
 24.2      Sec. 3.  Minnesota Statutes 2000, section 124D.86, 
 24.3   subdivision 4, is amended to read: 
 24.4      Subd. 4.  [INTEGRATION LEVY.] A district may levy an amount 
 24.5   equal to ~~33~~ 37 percent for fiscal year ~~2000~~ 2003 and ~~22~~ 33 
 24.6   percent for fiscal year ~~2001~~ 2004 and thereafter of the 
 24.7   district's integration revenue as defined in subdivision 3. 
 24.8      Sec. 4.  Minnesota Statutes 2000, section 124D.86, 
 24.9   subdivision 5, is amended to read: 
 24.10     Subd. 5.  [INTEGRATION AID.] A district's integration aid 
 24.11  equals ~~67~~ 63 percent for fiscal year ~~2000~~ 2003 and ~~78~~ 67 
 24.12  percent for fiscal year ~~2001~~ 2004 and thereafter of the 
 24.13  district's integration revenue as defined in subdivision 3. 
 24.14     Sec. 5.  Laws 1997, First Special Session chapter 4, 
 24.15  article 3, section 25, subdivision 7, is amended to read: 
 24.16     Subd. 7.  [WORKSTUDY STUDENT COMPENSATION.] For enabling 
 24.17  school districts to pay the employer's share of work study 
 24.18  students compensation under Minnesota Statutes, section 
 24.19  136A.233, subdivision 3: 
 24.20       $50,000        .....     1998 
 24.21       $50,000        .....     1999 
 24.22     Money shall be available to districts upon request until 
 24.23  ~~the appropriation is exhausted~~ December 31, 2002.  The 
 24.24  commissioner may establish an application procedure for 
 24.25  allocating the money to districts. 
 24.26     Sec. 6.  Laws 2001, First Special Session chapter 6, 
 24.27  article 2, section 77, subdivision 2, is amended to read: 
 24.28     Subd. 2.  [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 
 24.29  PROGRAMS.] ~~(a)~~ For students' advanced placement and 
 24.30  international baccalaureate examination fees under Minnesota 
 24.31  Statutes 2000, section 120B.13, subdivision 3, and the training 
 24.32  and related costs for teachers and other interested educators 
 24.33  under Minnesota Statutes 2000, section 120B.13, subdivision 1: 
 24.34       $2,000,000     .....     2002 
 24.35       ~~$2,000,000~~ $  450,000    .....     2003 
 24.36     Any funds unexpended in the first year do not cancel and 
 25.1   are available in the second year. 
 25.2      ~~(b) The advanced placement program shall receive 75 percent~~ 
 25.3   ~~of the appropriation each year and the international~~ 
 25.4   ~~baccalaureate program shall receive 25 percent of the~~ 
 25.5   ~~appropriation each year.  The department, in consultation with~~ 
 25.6   ~~representatives of the advanced placement and international~~ 
 25.7   ~~baccalaureate programs selected by the advanced placement~~ 
 25.8   ~~advisory council and IBMN, respectively, shall determine the~~ 
 25.9   ~~amounts of the expenditures each year for examination fees and~~ 
 25.10  ~~training and support programs for each program.~~ 
 25.11     ~~(c) Notwithstanding Minnesota Statutes, section 120B.13,~~ 
 25.12  ~~subdivision 1, $375,000 each year is for teachers to attend~~ 
 25.13  ~~subject matter summer training programs and follow-up support~~ 
 25.14  ~~workshops approved by the advanced placement or international~~ 
 25.15  ~~baccalaureate programs.  The amount of the subsidy for each~~ 
 25.16  ~~teacher attending an advanced placement or international~~ 
 25.17  ~~baccalaureate summer training program or workshop shall be the~~ 
 25.18  ~~same.  The commissioner shall determine the payment process and~~ 
 25.19  ~~the amount of the subsidy.~~ 
 25.20     ~~(d) Notwithstanding Minnesota Statutes, section 120B.13,~~ 
 25.21  ~~subdivision 3, in each year to the extent of available~~ 
 25.22  ~~appropriations, the commissioner shall pay all examination fees~~ 
 25.23  ~~for all students sitting for an advanced placement examination,~~ 
 25.24  ~~international baccalaureate examination, or both.  If this~~ 
 25.25  ~~amount is not adequate, the commissioner may pay less than the~~ 
 25.26  ~~full examination fee.~~ 
 25.27     ~~Any balance in the first year does not cancel but is~~ 
 25.28  ~~available in the second year.~~ 
 25.29     Sec. 7.  Laws 2001, First Special Session chapter 6, 
 25.30  article 2, section 77, subdivision 4, is amended to read: 
 25.31     Subd. 4.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
 25.32  lease aid under Minnesota Statutes, section 124D.11, subdivision 
 25.33  4: 
 25.34       ~~$16,554,000~~ $12,323,000   .....     2002 
 25.35       ~~$25,176,000~~ $10,495,000   .....     2003 
 25.36     The 2002 appropriation includes $1,114,000 for 2001 and 
 26.1   ~~$15,440,000~~ $11,209,000 for 2002. 
 26.2      The 2003 appropriation includes ~~$1,715,000~~ $1,245,000 for 
 26.3   2002 and ~~$23,461,000~~ $9,250,000 for 2003.  
 26.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 26.5   following final enactment. 
 26.6      Sec. 8.  Laws 2001, First Special Session chapter 6, 
 26.7   article 2, section 77, subdivision 5, is amended to read: 
 26.8      Subd. 5.  [CHARTER SCHOOL STARTUP GRANTS.] For charter 
 26.9   school startup cost aid under Minnesota Statutes, section 
 26.10  124D.11: 
 26.11       ~~$2,738,000~~ $2,090,000    .....     2002 
 26.12       ~~$3,143,000~~ $1,549,000    .....     2003 
 26.13     The 2002 appropriation includes ~~$273,000~~ $258,000 for 2001 
 26.14  and ~~$2,465,000~~ $1,832,000 for 2002.  
 26.15     The 2003 appropriation includes ~~$274,000~~ $204,000 for 2002 
 26.16  and ~~$2,869,000~~ $1,345,000 for 2003. 
 26.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 26.18  following final enactment. 
 26.19     Sec. 9.  Laws 2001, First Special Session chapter 6, 
 26.20  article 2, section 77, subdivision 7, is amended to read: 
 26.21     Subd. 7.  [BEST PRACTICES SEMINARS.] For best practices 
 26.22  graduation rule seminars and other professional development 
 26.23  capacity building activities that assure proficiency in teaching 
 26.24  and implementation of graduation rule standards: 
 26.25       $5,260,000     .....     2002
 26.26       ~~$3,480,000~~ $1,480,000    .....     2003
 26.27     ~~$1,000,000 in fiscal year 2002 is for arts via the Internet~~ 
 26.28  ~~collaborative project between the Walker Art Center and the~~ 
 26.29  ~~Minneapolis Institute of Arts; $500,000 each year is for best~~ 
 26.30  ~~practices grants to intermediate school districts Nos. 287, 916,~~ 
 26.31  ~~and 917 to train teachers of special needs students under Laws~~ 
 26.32  ~~1998, chapter 398, article 5, section 42; and $250,000 each year~~ 
 26.33  ~~is for a grant to A Chance to Grow/New Visions for the Minnesota~~ 
 26.34  ~~Learning Resource Center.~~  
 26.35     ~~The commissioner shall consider a curriculum development~~ 
 26.36  ~~grant, consistent with the graduation rule, to develop curricula~~ 
 27.1   ~~in the area of natural sciences including botany, horticulture,~~ 
 27.2   ~~and zoology.  The grant shall also be used to provide~~ 
 27.3   ~~instructional materials on the Internet.  The commissioner shall~~ 
 27.4   ~~consider best practices grants to districts for developing~~ 
 27.5   ~~gifted and talented services that are integrated with the~~ 
 27.6   ~~state's graduation standards.  The commissioner shall consider a~~ 
 27.7   ~~grant to independent school district No. 621, Mounds View, for a~~ 
 27.8   ~~pilot project to establish a parallel block schedule strategy in~~ 
 27.9   ~~grades 1 through 3.~~ 
 27.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 27.11  following final enactment. 
 27.12     Sec. 10.  Laws 2001, First Special Session chapter 6, 
 27.13  article 2, section 77, subdivision 8, is amended to read: 
 27.14     Subd. 8.  [INTEGRATION AID.] For integration aid: 
 27.15       ~~$65,478,000~~ $63,421,000   .....     2002 
 27.16       ~~$51,996,000~~ $53,890,000   .....     2003 
 27.17     The 2002 appropriation includes $5,729,000 for 2001 and 
 27.18  ~~$59,749,000~~ $57,692,000 for 2002. 
 27.19     The 2003 appropriation includes ~~$6,639,000~~ $6,410,000 for 
 27.20  2002 and ~~$45,357,000~~ $47,480,000 for 2003.  
 27.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 27.22  following final enactment. 
 27.23     Sec. 11.  Laws 2001, First Special Session chapter 6, 
 27.24  article 2, section 77, subdivision 11, is amended to read: 
 27.25     Subd. 11.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
 27.26  startup aid under Minnesota Statutes, section 124D.88: 
 27.27       ~~$482,000~~ $475,000      .....     2002 
 27.28       ~~$326,000~~ $298,000      .....     2003 
 27.29     The 2002 appropriation includes $25,000 for 2001 and 
 27.30  ~~$457,000~~ $450,000 for 2002.  
 27.31     The 2003 appropriation includes ~~$51,000~~ $50,000 for 2002 
 27.32  and ~~$275,000~~ $248,000 for 2003. 
 27.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 27.34  following final enactment. 
 27.35     Sec. 12.  Laws 2001, First Special Session chapter 6, 
 27.36  article 2, section 77, subdivision 15, is amended to read: 
 28.1      Subd. 15.  [SUCCESS FOR THE FUTURE.] For American Indian 
 28.2   success for the future grants according to Minnesota Statutes, 
 28.3   section 124D.81: 
 28.4        ~~$2,047,000~~ $1,924,000    .....     2002
 28.5        $2,137,000     .....     2003
 28.6      The 2002 appropriation includes $0 for 2001 and ~~$2,047,000~~ 
 28.7   $1,924,000 for 2002. 
 28.8      The 2003 appropriation includes ~~$255,000~~ $213,000 for 2002 
 28.9   and ~~$2,132,000~~ $1,924,000 for 2003. 
 28.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 28.11  following final enactment. 
 28.12     Sec. 13.  Laws 2001, First Special Session chapter 6, 
 28.13  article 2, section 77, subdivision 18, is amended to read: 
 28.14     Subd. 18.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 28.15  school aid under Minnesota Statutes, section 124D.83: 
 28.16       ~~$2,520,000~~ $2,304,000    .....     2002
 28.17       ~~$2,767,000~~ $2,408,000    .....     2003
 28.18     The 2002 appropriation includes $192,000 for 2001 and 
 28.19  ~~$2,328,000~~ $2,112,000 for 2002. 
 28.20     The 2003 appropriation includes ~~$258,000~~ $235,000 for 2002 
 28.21  and ~~$2,509,000~~ $2,173,000 for 2003. 
 28.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 28.23  following final enactment. 
 28.24     Sec. 14.  Laws 2001, First Special Session chapter 6, 
 28.25  article 2, section 77, subdivision 22, is amended to read: 
 28.26     Subd. 22.  [YOUTHWORKS PROGRAM.] For youthworks programs 
 28.27  under Minnesota Statutes, sections 124D.37 to 124D.45: 
 28.28       $1,788,000     .....     2002 
 28.29       $1,788,000     .....     2003 
 28.30     A grantee organization may provide health and child care 
 28.31  coverage to the dependents of each participant enrolled in a 
 28.32  full-time youth works program to the extent such coverage is not 
 28.33  otherwise available. 
 28.34     Up to $250,000 each year may be used for the jobs for 
 28.35  America graduates program. 
 28.36     Any balance in the first year does not cancel but is 
 29.1   available in the second year.  The base for this program is 
 29.2   $1,000,000 in fiscal year 2004 and $1,000,000 in fiscal year 
 29.3   2005. 
 29.4      Sec. 15.  Laws 2001, First Special Session chapter 6, 
 29.5   article 2, section 77, subdivision 23, is amended to read: 
 29.6      Subd. 23.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 29.7   GRANTS.] For education and employment transitions programming 
 29.8   under Minnesota Statutes, section 124D.46: 
 29.9        $775,000       .....     2002 
 29.10       ~~$775,000~~       ~~.....~~     ~~2003~~ 
 29.11     $250,000 ~~each year~~ is for ISEEK. 
 29.12     $450,000 ~~each year~~ is for youth apprenticeship grants and 
 29.13  to conduct a high school follow-up survey to include first, 
 29.14  third, and sixth year graduates of Minnesota schools. 
 29.15     $75,000 ~~each year~~ is for grants to school districts for the 
 29.16  junior achievement program. 
 29.17     Any balance in the first year does not cancel but is 
 29.18  available in the second year. 
 29.19     Sec. 16.  Laws 2001, First Special Session chapter 6, 
 29.20  article 2, section 77, subdivision 25, as amended by Laws 2001, 
 29.21  First Special Session chapter 13, section 14, is amended to read:
 29.22     Subd. 25.  [SCHOOL EVALUATION SERVICES.] For contracting 
 29.23  with an independent school evaluation services contractor to 
 29.24  evaluate and report on school districts' academic and financial 
 29.25  performance under section 64:  
 29.26       $2,500,000     .....     2002 
 29.27     Any balance in the first year does not cancel but is 
 29.28  available in the second year.  The base for this program is 
 29.29  $2,000,000 in fiscal year 2004 and $2,000,000 in fiscal year 
 29.30  2005. 
 29.31     Sec. 17.  Laws 2001, First Special Session chapter 6, 
 29.32  article 2, section 77, subdivision 26, is amended to read: 
 29.33     Subd. 26.  [MINNESOTA STUDENT ORGANIZATION FOUNDATION.] For 
 29.34  the Minnesota student organization foundation under Minnesota 
 29.35  Statutes, section 124D.34: 
 29.36        $625,000     .....     2002 
 30.1         ~~$625,000~~ $562,000    .....     2003 
 30.2      Any balance in the first year does not cancel but is 
 30.3   available in the second year. 
 30.4      Sec. 18.  Laws 2001, First Special Session chapter 6, 
 30.5   article 2, section 77, subdivision 27, as amended by Laws 2001, 
 30.6   First Special Session chapter 13, section 13, is amended to read:
 30.7      Subd. 27.  [READING COMPETENCY GRANTS.] For reading 
 30.8   competency grants under Minnesota Statutes, section 120B.12: 
 30.9         $100,000     .....     2002 
 30.10        ~~$100,000~~     ~~.....~~     ~~2003~~ 
 30.11     The commissioner must award one grant to the St. Croix 
 30.12  river education district by July 1, 2001. 
 30.13     Sec. 19.  Laws 2001, First Special Session chapter 6, 
 30.14  article 2, section 77, subdivision 29, is amended to read: 
 30.15     Subd. 29.  [ALTERNATIVE TEACHER COMPENSATION.] For 
 30.16  alternative teacher compensation established under Minnesota 
 30.17  Statutes, sections 124D.945 to 124D.947: 
 30.18       ~~$4,000,000~~ $3,000,000    .....     2002 
 30.19       ~~$4,000,000~~ $3,000,000    .....     2003 
 30.20     If the appropriations under this subdivision are 
 30.21  insufficient to fund all program participants, the participants 
 30.22  shall be prioritized by the commissioner by the date of receipt 
 30.23  of the application.  A participant may receive less than the 
 30.24  maximum per pupil amount available under Minnesota Statutes, 
 30.25  section 124D.945, subdivision 3. 
 30.26     Any balance in the first year does not cancel but is 
 30.27  available in the second year. 
 30.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 30.29  following final enactment. 
 30.30     Sec. 20.  Laws 2001, First Special Session chapter 6, 
 30.31  article 2, section 77, subdivision 30, is amended to read: 
 30.32     Subd. 30.  [COLLABORATIVE URBAN EDUCATOR RECRUITMENT AND 
 30.33  TRAINING PROGRAMS.] For grants to collaborative urban educator 
 30.34  recruitment and training programs: 
 30.35       $1,300,000     .....     2002
 30.36       ~~$1,300,000~~     ~~.....~~     ~~2003~~
 31.1      $500,000 ~~each year~~ is for the Southeast Asian teacher 
 31.2   program at Concordia University, St. Paul; $400,000 ~~each year~~ is 
 31.3   for the collaborative urban educator program at the University 
 31.4   of St. Thomas; and $400,000 ~~each year~~ is for the center for 
 31.5   excellence in urban teaching at Hamline University.  Grant 
 31.6   recipients must collaborate with urban and nonurban school 
 31.7   districts. 
 31.8      Any balance in the first year does not cancel but is 
 31.9   available in the second year.  This appropriation is one-time 
 31.10  only. 
 31.11     Sec. 21.  [REPEALER.] 
 31.12     (a) Minnesota Statutes 2000, sections 124D.46 and 124D.47, 
 31.13  are repealed effective for fiscal year 2003.  Minnesota Statutes 
 31.14  2001 Supplement, section 120B.12, is repealed effective for 
 31.15  fiscal year 2003. 
 31.16     (b) Laws 2001, First Special Session chapter 6, article 2, 
 31.17  section 77, subdivision 30, is repealed effective for fiscal 
 31.18  year 2003. 
 31.19                             ARTICLE 3 
 31.20                          SPECIAL PROGRAMS 
 31.21     Section 1.  Minnesota Statutes 2001 Supplement, section 
 31.22  125A.76, subdivision 1, is amended to read: 
 31.23     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 31.24  section, the definitions in this subdivision apply. 
 31.25     (a) "Base year" for fiscal year 1998 and later fiscal years 
 31.26  means the second fiscal year preceding the fiscal year for which 
 31.27  aid will be paid. 
 31.28     (b) "Basic revenue" has the meaning given it in section 
 31.29  126C.10, subdivision 2.  For the purposes of computing basic 
 31.30  revenue pursuant to this section, each child with a disability 
 31.31  shall be counted as prescribed in section 126C.05, subdivision 1.
 31.32     (c) "Essential personnel" means teachers, cultural 
 31.33  liaisons, related services, and support services staff providing 
 31.34  direct services to students.  Essential personnel may also 
 31.35  include special education paraprofessionals or clericals 
 31.36  providing support to teachers and students by preparing 
 32.1   paperwork and making arrangements related to special education 
 32.2   compliance requirements, including parent meetings and 
 32.3   individual education plans. 
 32.4      (d) "Average daily membership" has the meaning given it in 
 32.5   section 126C.05. 
 32.6      (e) "Program growth factor" means 1.08 for fiscal year 
 32.7   2002, ~~and 1.046~~ 1.026 for fiscal year 2003, and 1.00 for fiscal 
 32.8   year 2004 and later. 
 32.9      Sec. 2.  Minnesota Statutes 2000, section 125A.79, 
 32.10  subdivision 1, is amended to read: 
 32.11     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 32.12  section, the definitions in this subdivision apply. 
 32.13     (a) "Unreimbursed special education cost" means the sum of 
 32.14  the following: 
 32.15     (1) expenditures for teachers' salaries, contracted 
 32.16  services, supplies, equipment, and transportation services 
 32.17  eligible for revenue under section 125A.76; plus 
 32.18     (2) expenditures for tuition bills received under sections 
 32.19  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 32.20  under section 125A.76, subdivision 2; minus 
 32.21     (3) revenue for teachers' salaries, contracted services, 
 32.22  supplies, and equipment under section 125A.76; minus 
 32.23     (4) tuition receipts under sections 125A.03 to 125A.24 and 
 32.24  125A.65 for services eligible for revenue under section 125A.76, 
 32.25  subdivision 2. 
 32.26     (b) "General revenue" means ~~for fiscal year 1996, the sum~~ 
 32.27  ~~of the general education revenue according to section 126C.10,~~ 
 32.28  ~~subdivision 1, as adjusted according to section 127A.47,~~ 
 32.29  ~~subdivision 7, plus the total referendum revenue according to~~ 
 32.30  ~~section 126C.17, subdivision 4.  For fiscal years 1997 and~~ 
 32.31  ~~later, "general revenue" means~~ the sum of the general education 
 32.32  revenue according to section 126C.10, subdivision 1, as adjusted 
 32.33  according to section 127A.47, subdivisions 7 and 8, plus the 
 32.34  total referendum revenue minus transportation sparsity revenue 
 32.35  minus total operating capital revenue.  
 32.36     (c) "Average daily membership" has the meaning given it in 
 33.1   section 126C.05. 
 33.2      (d) "Program growth factor" means 1.044 for fiscal year 
 33.3   2002 ~~and~~, 1.02 for fiscal year 2003, and 1.00 for fiscal year 
 33.4   2004 and later. 
 33.5      Sec. 3.  Laws 2001, First Special Session chapter 6, 
 33.6   article 3, section 21, subdivision 2, is amended to read: 
 33.7      Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
 33.8   aid according to Minnesota Statutes, section 125A.75: 
 33.9        ~~$507,448,000~~ $507,841,000  .....     2002 
 33.10       ~~$531,481,000~~ $523,083,000  .....     2003 
 33.11     The 2002 appropriation includes $47,400,000 for 2001 and 
 33.12  ~~$460,048,000~~ $460,441,000 for 2002. 
 33.13     The 2003 appropriation includes ~~$51,116,000~~ $51,160,000 for 
 33.14  2002 and ~~$480,365,000~~ $471,923,000 for 2003. 
 33.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 33.16  following final enactment. 
 33.17     Sec. 4.  Laws 2001, First Special Session chapter 6, 
 33.18  article 3, section 21, subdivision 3, is amended to read: 
 33.19     Subd. 3.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 33.20  according to Minnesota Statutes, section 125A.75, subdivision 3, 
 33.21  for children with a disability placed in residential facilities 
 33.22  within the district boundaries for whom no district of residence 
 33.23  can be determined: 
 33.24       ~~$1,877,000~~ $1,358,000    .....     2002 
 33.25       ~~$2,033,000~~ $3,161,000    .....     2003 
 33.26     If the appropriation for either year is insufficient, the 
 33.27  appropriation for the other year is available.  
 33.28     Any balance in the first year does not cancel but is 
 33.29  available in the second year. 
 33.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 33.31  following final enactment. 
 33.32     Sec. 5.  Laws 2001, First Special Session chapter 6, 
 33.33  article 3, section 21, subdivision 4, is amended to read: 
 33.34     Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 33.35  teacher travel for home-based services according to Minnesota 
 33.36  Statutes, section 125A.75, subdivision 1: 
 34.1        ~~$135,000~~ $143,000      .....     2002 
 34.2        ~~$138,000~~ $148,000      .....     2003 
 34.3      The 2002 appropriation includes ~~$13,000~~ $14,000 for 2001 
 34.4   and ~~$122,000~~ $129,000 for 2002. 
 34.5      The 2003 appropriation includes ~~$13,000~~ $15,000 for 2002 
 34.6   and ~~$125,000~~ $133,000 for 2003. 
 34.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 34.8   following final enactment. 
 34.9      Sec. 6.  Laws 2001, First Special Session chapter 6, 
 34.10  article 3, section 21, subdivision 5, is amended to read: 
 34.11     Subd. 5.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 34.12  cost aid: 
 34.13       ~~$102,665,000~~ $103,061,000  .....     2002 
 34.14       ~~$104,773,000~~ $105,289,000  .....     2003 
 34.15     The 2002 appropriation includes $9,889,000 for 2001 and 
 34.16  ~~$92,776,000~~ $93,172,000 for 2002. 
 34.17     The 2003 appropriation includes ~~$10,308,000~~ $10,352,000 for 
 34.18  2002 and ~~$94,465,000~~ $94,937,000 for 2003. 
 34.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 34.20  following final enactment. 
 34.21     Sec. 7.  Laws 2001, First Special Session chapter 6, 
 34.22  article 3, section 21, subdivision 7, is amended to read: 
 34.23     Subd. 7.  [TRANSITION PROGRAMS; STUDENTS WITH 
 34.24  DISABILITIES.] For aid for transition programs for pupils with 
 34.25  disabilities according to Minnesota Statutes, section 124D.454: 
 34.26       ~~$8,954,000~~ $8,960,000    .....     2002 
 34.27       ~~$8,939,000~~ $8,952,000    .....     2003 
 34.28     The 2002 appropriation includes $896,000 for 2001 and 
 34.29  ~~$8,058,000~~ $8,064,000 for 2002.  
 34.30     The 2003 appropriation includes ~~$895,000~~ $896,000 for 2002 
 34.31  and ~~$8,044,000~~ $8,056,000 for 2003.  
 34.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 34.33  following final enactment. 
 34.34     Sec. 8.  Laws 2001, First Special Session chapter 6, 
 34.35  article 3, section 21, subdivision 11, is amended to read: 
 34.36     Subd. 11.  [WEB-BASED, INDIVIDUAL INTERAGENCY INTERVENTION 
 35.1   PLAN.] For ongoing development, administration, and interagency 
 35.2   training costs associated with a statewide, Web-based 
 35.3   application for the individual interagency intervention plan 
 35.4   required in Minnesota Statutes, section 125A.023: 
 35.5        $250,000     .....     2002 
 35.6        ~~$250,000~~     ~~.....~~     ~~2003~~ 
 35.7                              ARTICLE 4 
 35.8                      FACILITIES AND TECHNOLOGY 
 35.9      Section 1.  Minnesota Statutes 2001 Supplement, section 
 35.10  123B.54, is amended to read: 
 35.11     123B.54 [DEBT SERVICE APPROPRIATION.] 
 35.12     (a) ~~$25,989,000~~ $25,987,000 in fiscal year 2002, 
 35.13  ~~$35,163,000~~ $31,892,000 in fiscal year 
 35.14  2003, ~~$31,787,000~~ $36,629,000 in fiscal year 2004, and 
 35.15  ~~$26,453,000~~ $36,931,000 in fiscal years 2005 and later are 
 35.16  appropriated from the general fund to the commissioner of 
 35.17  children, families, and learning for payment of debt service 
 35.18  equalization aid under section 123B.53.  
 35.19     (b) The appropriations in paragraph (a) must be reduced by 
 35.20  the amount of any money specifically appropriated for the same 
 35.21  purpose in any year from any state fund. 
 35.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.23  following final enactment. 
 35.24     Sec. 2.  Minnesota Statutes 2000, section 123B.59, 
 35.25  subdivision 5, is amended to read: 
 35.26     Subd. 5.  [LEVY AUTHORIZED.] A district, after local board 
 35.27  approval, may levy for costs related to an approved facility 
 35.28  plan as follows:  
 35.29     (a) if the district has indicated to the commissioner that 
 35.30  bonds will be issued, the district may levy for the principal 
 35.31  and interest payments on outstanding bonds issued according to 
 35.32  subdivision 3 after reduction for any alternative facilities aid 
 35.33  receivable under subdivision 6; or 
 35.34     (b) if the district has indicated to the commissioner that 
 35.35  the plan will be funded through levy, the district may levy 
 35.36  according to the schedule approved in the plan ~~after reduction~~ 
 36.1   ~~for any alternative facilities aid receivable under subdivision~~ 
 36.2   ~~6~~. 
 36.3      Sec. 3.  Minnesota Statutes 2000, section 123B.59, 
 36.4   subdivision 6, is amended to read: 
 36.5      Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
 36.6   alternative facilities aid for fiscal year 2003 is the amount 
 36.7   equal to the district's annual debt service costs, provided that 
 36.8   the amount does not exceed the amount certified to be levied for 
 36.9   those purposes for taxes payable in 1997, or for a district that 
 36.10  made a levy under subdivision 5, paragraph (b), the lesser of 
 36.11  the district's annual levy amount, or one-sixth of the amount of 
 36.12  levy that it certified for that purpose for taxes payable in 
 36.13  1998. 
 36.14     Sec. 4.  Minnesota Statutes 2000, section 123B.59, 
 36.15  subdivision 7, is amended to read: 
 36.16     Subd. 7.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
 36.17  amount not to exceed ~~$19,700,000 for fiscal year 2000 and~~ 
 36.18  $20,000,000 for fiscal year ~~2001 and each year thereafter~~ 2003 
 36.19  is appropriated from the general fund to the commissioner of 
 36.20  children, families, and learning for payment of alternative 
 36.21  facilities aid under subdivision 6.  
 36.22     (b) The appropriation in paragraph (a) must be reduced by 
 36.23  the amount of any money specifically appropriated for the same 
 36.24  purpose in any year from any state fund. 
 36.25     Sec. 5.  Laws 2001, First Special Session chapter 6, 
 36.26  article 4, section 27, subdivision 2, is amended to read: 
 36.27     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 36.28  aid according to Minnesota Statutes, section 123B.57, 
 36.29  subdivision 5: 
 36.30       ~~$14,980,000~~ $13,630,000   .....     2002 
 36.31       ~~$14,550,000~~ $10,800,000   .....     2003 
 36.32     The 2002 appropriation includes $1,480,000 for 2001 and 
 36.33  ~~$13,500,000~~ $12,150,000 for 2002. 
 36.34     The 2003 appropriation includes ~~$1,500,000~~ $1,350,000 for 
 36.35  2002 and ~~$13,050,000~~ $9,450,000 for 2003. 
 36.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 37.1   following final enactment. 
 37.2      Sec. 6.  Laws 2001, First Special Session chapter 6, 
 37.3   article 4, section 27, subdivision 3, is amended to read: 
 37.4      Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 37.5   according to Minnesota Statutes, section 123B.53, subdivision 6: 
 37.6        ~~$25,989,000~~ $25,987,000   .....     2002 
 37.7        ~~$35,523,000~~ $31,892,000   .....     2003 
 37.8      The 2002 appropriation includes $2,890,000 for 2001 and 
 37.9   ~~$23,099,000~~ $23,097,000 for 2002. 
 37.10     The 2003 appropriation includes ~~$2,567,000~~ $2,566,000 for 
 37.11  2002 and ~~$32,956,000~~ $29,326,000 for 2003. 
 37.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 37.13  following final enactment. 
 37.14     Sec. 7.  Laws 2001, First Special Session chapter 6, 
 37.15  article 4, section 27, subdivision 5, is amended to read: 
 37.16     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 37.17  alternative facilities bonding aid, according to Minnesota 
 37.18  Statutes, section 123B.59, subdivision 1: 
 37.19       ~~$19,279,000~~ $19,280,000   .....     2002 
 37.20       $19,287,000    .....     2003 
 37.21     The 2002 appropriation includes $1,921,000 for 2001 and 
 37.22  ~~$17,358,000~~ $17,359,000 for 2002. 
 37.23     The 2003 appropriation includes ~~$1,929,000~~ $1,928,000 for 
 37.24  2002 and ~~$17,358,000~~ $17,359,000 for 2003. 
 37.25     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 37.26  following final enactment. 
 37.27     Sec. 8.  Laws 2001, First Special Session chapter 6, 
 37.28  article 4, section 27, subdivision 6, is amended to read: 
 37.29     Subd. 6.  [TELECOMMUNICATION ACCESS COST REVENUE.] For 
 37.30  telecommunication access cost revenue under Minnesota Statutes, 
 37.31  section 125B.25: 
 37.32       ~~$15,387,000~~ $14,800,000   .....     2002 
 37.33       ~~$ 1,565,000~~ $ 1,500,000   .....     2003 
 37.34     The 2002 appropriation includes $1,300,000 for 2001 and 
 37.35  ~~$14,087,000~~ $13,500,000 for 2002. 
 37.36     The 2003 appropriation includes ~~$1,565,000~~ $1,500,000 for 
 38.1   2002 and $0 for 2003. 
 38.2      If the appropriation amount is insufficient, the 
 38.3   commissioner shall reduce the reimbursement rate in Minnesota 
 38.4   Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 
 38.5   for the 2001-2002 school year shall be prorated.  The 
 38.6   reimbursement rate shall not exceed 100 percent. 
 38.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 38.8   following final enactment. 
 38.9      Sec. 9.  [REPEALER.] 
 38.10     Minnesota Statutes 2000, section 123B.59, subdivisions 6 
 38.11  and 7, are repealed effective for revenue for fiscal year 2004. 
 38.12                             ARTICLE 5 
 38.13          NUTRITION; SCHOOL ACCOUNTING; AND OTHER PROGRAMS 
 38.14     Section 1.  Laws 2001, First Special Session chapter 6, 
 38.15  article 5, section 13, subdivision 2, is amended to read: 
 38.16     Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
 38.17  according to Minnesota Statutes, section 124D.111, and Code of 
 38.18  Federal Regulations, title 7, section 210.17, and for school 
 38.19  milk aid according to Minnesota Statutes, section 124D.118:  
 38.20       $8,710,000     .....     2002 
 38.21       ~~$8,950,000~~ $8,500,000    .....     2003 
 38.22     (b) Not more than $800,000 of the amount appropriated each 
 38.23  year may be used for school milk aid. 
 38.24     Sec. 2.  Laws 2001, First Special Session chapter 6, 
 38.25  article 5, section 13, subdivision 5, is amended to read: 
 38.26     Subd. 5.  [FAST BREAK TO LEARNING GRANTS.] For fast break 
 38.27  to learning grants under Minnesota Statutes, section 124D.1156: 
 38.28       $2,446,000     .....     2002 
 38.29       $2,839,000     .....     2003 
 38.30     The 2002 appropriation includes $0 for 2001 and $2,446,000 
 38.31  for 2002. 
 38.32     The 2003 appropriation includes ~~$272,000~~ $271,000 for 2002 
 38.33  and ~~$2,567,000~~ $2,568,000 for 2003. 
 38.34                             ARTICLE 6 
 38.35                           STATE AGENCIES 
 38.36     Section 1.  Minnesota Statutes 2001 Supplement, section 
 39.1   122A.162, is amended to read: 
 39.2      122A.162 [LICENSURE RULES.] 
 39.3      The commissioner may make rules relating to licensure of 
 39.4   school personnel not licensed by the board of teaching ~~or board~~ 
 39.5   ~~of school administrators~~. 
 39.6      Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 39.7   122A.18, subdivision 1, is amended to read: 
 39.8      Subdivision 1.  [AUTHORITY TO LICENSE.] (a) The board of 
 39.9   teaching must license teachers, as defined in section 122A.15, 
 39.10  subdivision 1, ~~except for~~ including supervisory personnel, as 
 39.11  defined in section 122A.15, subdivision 2. 
 39.12     (b) ~~The board of school administrators must license~~ 
 39.13  ~~supervisory personnel as defined in section 122A.15, subdivision~~ 
 39.14  ~~2, except for athletic coaches.~~  
 39.15     ~~(c)~~ Licenses under the jurisdiction of the board of 
 39.16  teaching~~, the board of school administrators,~~ and the 
 39.17  commissioner of children, families, and learning must be issued 
 39.18  through the licensing section of the department.  
 39.19     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
 39.20  122A.18, subdivision 4, is amended to read: 
 39.21     Subd. 4.  [EXPIRATION AND RENEWAL.] (a) Each license the 
 39.22  department of children, families, and learning issues through 
 39.23  its licensing section must bear the date of issue.  Licenses 
 39.24  must expire and be renewed according to the respective rules the 
 39.25  board of teaching~~, the board of school administrators,~~ or the 
 39.26  commissioner of children, families, and learning adopts.  
 39.27  Requirements for renewing a license must include showing 
 39.28  satisfactory evidence of ~~successful teaching or administrative~~ 
 39.29  ~~experience for at least one school year during the period~~ 
 39.30  ~~covered by the license in grades or subjects for which the~~ 
 39.31  ~~license is valid or~~ completing such additional preparation as 
 39.32  the board of teaching prescribes.  ~~The board of school~~ 
 39.33  ~~administrators shall establish requirements for renewing the~~ 
 39.34  ~~licenses of supervisory personnel except athletic coaches.~~  The 
 39.35  state board of teaching shall establish requirements for 
 39.36  renewing the licenses of athletic coaches. 
 40.1      (b) The board of teaching shall offer alternative 
 40.2   continuing relicensure options for teachers who are accepted 
 40.3   into and complete the national board for professional teaching 
 40.4   standards certification process, and offer additional continuing 
 40.5   relicensure options for teachers who earn national board for 
 40.6   professional teaching standards certification.  Continuing 
 40.7   relicensure requirements for teachers who do not maintain 
 40.8   national board for professional teaching standards certification 
 40.9   are those the board prescribes.  
 40.10     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
 40.11  122A.20, subdivision 2, is amended to read: 
 40.12     Subd. 2.  [MANDATORY REPORTING.] A school board must report 
 40.13  to the board of teaching~~, the board of school administrators,~~ or 
 40.14  the board of trustees of the Minnesota state colleges and 
 40.15  universities, whichever has jurisdiction over the teacher's or 
 40.16  administrator's license, when its teacher or administrator is 
 40.17  discharged or resigns from employment after a charge is filed 
 40.18  with the school board under section 122A.41, subdivisions 6, 
 40.19  clauses (1), (2), and (3), and 7, or after charges are filed 
 40.20  that are ground for discharge under section 122A.40, subdivision 
 40.21  13, paragraph (a), clauses (1) to (5), or when a teacher or 
 40.22  administrator is suspended or resigns while an investigation is 
 40.23  pending under section 122A.40, subdivision 13, paragraph (a) 
 40.24  clauses (1) to (5); 122A.41, subdivisions 6, clauses (1), (2), 
 40.25  and (3), and 7; or 626.556.  The report must be made to the 
 40.26  appropriate licensing board within ten days after the discharge, 
 40.27  suspension, or resignation has occurred.  The licensing board to 
 40.28  which the report is made must investigate the report for 
 40.29  violation of subdivision 1 and the reporting board must 
 40.30  cooperate in the investigation.  Notwithstanding any provision 
 40.31  in chapter 13 or any law to the contrary, upon written request 
 40.32  from the licensing board having jurisdiction over the license, a 
 40.33  board or school superintendent shall provide the licensing board 
 40.34  with information about the teacher or administrator from the 
 40.35  district's files, any termination or disciplinary proceeding, 
 40.36  any settlement or compromise, or any investigative file.  Upon 
 41.1   written request from the appropriate licensing board, a board or 
 41.2   school superintendent may, at the discretion of the board or 
 41.3   school superintendent, solicit the written consent of a student 
 41.4   and the student's parent to provide the licensing board with 
 41.5   information that may aid the licensing board in its 
 41.6   investigation and license proceedings.  The licensing board's 
 41.7   request need not identify a student or parent by name.  The 
 41.8   consent of the student and the student's parent must meet the 
 41.9   requirements of chapter 13 and Code of Federal Regulations, 
 41.10  title 34, section 99.30.  The licensing board may provide a 
 41.11  consent form to the district.  Any data transmitted to any board 
 41.12  under this section is private data under section 13.02, 
 41.13  subdivision 12, notwithstanding any other classification of the 
 41.14  data when it was in the possession of any other agency. 
 41.15     The licensing board to which a report is made must transmit 
 41.16  to the attorney general's office any record or data it receives 
 41.17  under this subdivision for the sole purpose of having the 
 41.18  attorney general's office assist that board in its 
 41.19  investigation.  When the attorney general's office has informed 
 41.20  an employee of the appropriate licensing board in writing that 
 41.21  grounds exist to suspend or revoke a teacher's license to teach, 
 41.22  that licensing board must consider suspending or revoking or 
 41.23  decline to suspend or revoke the teacher's or administrator's 
 41.24  license within 45 days of receiving a stipulation executed by 
 41.25  the teacher or administrator under investigation or a 
 41.26  recommendation from an administrative law judge that 
 41.27  disciplinary action be taken. 
 41.28     Sec. 5.  Minnesota Statutes 2001 Supplement, section 
 41.29  122A.21, is amended to read: 
 41.30     122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 
 41.31     Each application for the issuance, renewal, or extension of 
 41.32  a license to teach and each application for the issuance, 
 41.33  renewal, or extension of a license as supervisory personnel must 
 41.34  be accompanied by a processing fee in an amount set by the board 
 41.35  of teaching by rule.  ~~Each application for issuing, renewing, or~~ 
 41.36  ~~extending the license of a school administrator or supervisor~~ 
 42.1   ~~must be accompanied by a processing fee in the amount set by the~~ 
 42.2   ~~board of teaching.~~  The processing fee for a teacher's license 
 42.3   and for the licenses of supervisory personnel must be paid to 
 42.4   the executive secretary of the ~~appropriate~~ board of teaching.  
 42.5   The executive secretary of the board shall deposit the fees with 
 42.6   the state treasurer, as provided by law, and report each month 
 42.7   to the commissioner of finance the amount of fees collected.  
 42.8   The fees as set by the board are nonrefundable for applicants 
 42.9   not qualifying for a license.  However, a fee must be refunded 
 42.10  by the state treasurer in any case in which the applicant 
 42.11  already holds a valid unexpired license.  The board may waive or 
 42.12  reduce fees for applicants who apply at the same time for more 
 42.13  than one license.  
 42.14     Sec. 6.  [TRANSFER OF AUTHORITY FROM BOARD OF SCHOOL 
 42.15  ADMINISTRATORS TO BOARD OF TEACHING.] 
 42.16     The powers and duties of the board of school administrators 
 42.17  are transferred to the board of teaching on July 1, 2002.  The 
 42.18  authority over teaching licensure held by the board of teaching 
 42.19  shall be extended to include licensure of school administrators. 
 42.20     Sec. 7.  Laws 2001, First Special Session chapter 6, 
 42.21  article 7, section 13, as amended by Laws 2001, First Special 
 42.22  Session chapter 13, section 15, is amended to read: 
 42.23     Sec. 13.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 
 42.24  FAMILIES, AND LEARNING.] 
 42.25     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 42.26  LEARNING.] Unless otherwise indicated, the sums indicated in 
 42.27  this section are appropriated from the general fund to the 
 42.28  department of children, families, and learning for the fiscal 
 42.29  years designated. 
 42.30     Subd. 2.  [DEPARTMENT.] (a) For the department of children, 
 42.31  families, and learning: 
 42.32       ~~$31,530,000~~ $28,801,000   .....     2002
 42.33       ~~$31,748,000~~ $28,149,000   .....     2003 
 42.34     Any balance in the first year does not cancel but is 
 42.35  available in the second year. 
 42.36     (b) ~~$684,000~~ $616,000 in 2002 and ~~$690,000~~ $621,000 in 2003 
 43.1   are for the board of teaching. 
 43.2      (c) $165,000 ~~each year~~ in fiscal year 2002 is for the board 
 43.3   of school administrators. 
 43.4      (d) ~~$500,000 in 2002 and $250,000 in 2003 and thereafter~~ 
 43.5   ~~are for the Minnesota Academic Excellence Foundation.~~  
 43.6      ~~(e)~~ $260,000 ~~each year~~ in fiscal year 2002 and $247,000 in 
 43.7   fiscal year 2003 is for the Minnesota Children's Museum; $50,000 
 43.8   in fiscal year 2002 is for the Duluth Children's Museum. 
 43.9      ~~(f)~~ (e) The expenditures of federal grants and aids as 
 43.10  shown in the biennial budget document and its supplements are 
 43.11  approved and appropriated and shall be spent as indicated. 
 43.12     ~~(g)~~ (f) In preparing the department budget for fiscal years 
 43.13  2004-2005, the department shall shift all administrative funding 
 43.14  from aids appropriations into the appropriation for the 
 43.15  department. 
 43.16     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 43.17  following final enactment. 
 43.18     Sec. 8.  Laws 2001, First Special Session chapter 6, 
 43.19  article 7, section 14, is amended to read: 
 43.20     Sec. 14.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
 43.21  EDUCATION.] 
 43.22     The sums indicated in this section are appropriated from 
 43.23  the general fund to the Perpich Center for Arts Education for 
 43.24  the fiscal years designated: 
 43.25       ~~$7,681,000~~ $7,130,000    .....     2002 
 43.26       ~~$7,816,000~~ $6,818,000    .....     2003 
 43.27     $150,000 each year is to extend the partnership network to 
 43.28  up to five new partnership sites and for developing 
 43.29  whole-school, arts-based teaching and learning curriculum at new 
 43.30  sites. 
 43.31     The base for this program is $7,035,000 in fiscal year 2004 
 43.32  and $7,035,000 in fiscal year 2005. 
 43.33     Any balance in the first year does not cancel but is 
 43.34  available in the second year. 
 43.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 43.36  following final enactment. 
 44.1      Sec. 9.  Laws 2001, First Special Session chapter 6, 
 44.2   article 7, section 15, is amended to read: 
 44.3      Sec. 15.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
 44.4      The sums indicated in this section are appropriated from 
 44.5   the general fund to the Minnesota state academies for the deaf 
 44.6   and the blind for the fiscal years designated:  
 44.7        ~~$10,761,000~~ $10,423,000   .....     2002 
 44.8        ~~$10,966,000~~ $10,530,000   .....     2003 
 44.9      Any balance in the first year does not cancel but is 
 44.10  available in the second year. 
 44.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 44.12  following final enactment. 
 44.13     Sec. 10.  [REVISOR INSTRUCTION.] 
 44.14     (a) In the next and subsequent editions of Minnesota 
 44.15  Statutes and Minnesota Rules, the revisor shall change the term 
 44.16  "Board of School Administrators" to "Board of Teaching."  
 44.17     (b) In the next and subsequent editions of Minnesota Rules, 
 44.18  the revisor shall renumber chapter 3512 as chapter 8720 and make 
 44.19  any technical changes necessary to transfer the powers and 
 44.20  duties of the department of children, families, and learning 
 44.21  regarding the qualifications and licensure of school personnel 
 44.22  to the Board of Teaching.  
 44.23     Sec. 11.  [REPEALER.] 
 44.24     Minnesota Statutes 2000, section 124D.94; and Minnesota 
 44.25  Statutes 2001 Supplement, sections 122A.11; 122A.12; 122A.13; 
 44.26  and 122A.14, are repealed. 
 44.27                             ARTICLE 7 
 44.28                    CHILDREN AND FAMILY SUPPORT 
 44.29     Section 1.  Minnesota Statutes 2000, section 124D.135, 
 44.30  subdivision 3, is amended to read: 
 44.31     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] ~~For~~ 
 44.32  ~~fiscal year 2001 to obtain early childhood family education~~ 
 44.33  ~~revenue, a district may levy an amount equal to the tax rate of~~ 
 44.34  ~~.5282 percent times the adjusted tax capacity of the district~~ 
 44.35  ~~for the year preceding the year the levy is certified.~~  
 44.36  ~~Beginning with levies for fiscal year 2002, by September 30 of~~ 
 45.1   ~~each year,~~ The commissioner shall establish a tax rate for early 
 45.3   childhood education revenue that raises $21,027,000 for fiscal 
 45.4   year 2002 and $22,135,000 ~~in~~ for fiscal year 2003 ~~and each~~ 
 45.5   ~~subsequent year~~.  To obtain early childhood family education 
 45.6   revenue for fiscal year 2004 and later, a district may levy the 
 45.7   amount raised by a maximum tax rate of 1.758 percent times the 
 45.8   adjusted tax capacity of the district for the year preceding the 
 45.9   year the levy is certified.  If the amount of the early 
 45.10  childhood family education levy would exceed the early childhood 
 45.11  family education revenue, the early childhood family education 
 45.12  levy must equal the early childhood family education revenue. 
 45.13     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 45.14  124D.135, subdivision 8, is amended to read: 
 45.15     Subd. 8.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
 45.16  the average balance, during the most recent three-year period in 
 45.17  a district's early childhood family education reserve account on 
 45.18  June 30 of each year, adjusted for any prior reductions under 
 45.19  this subdivision, must not be greater than 25 percent of the 
 45.20  district's early childhood family education annual revenue for 
 45.21  the prior year.  If a district's adjusted average early 
 45.22  childhood family education reserve over the three-year period is 
 45.23  in excess of 25 percent of the prior year annual revenue, the 
 45.24  district's early childhood family education state aid and levy 
 45.25  authority for the current school year must be reduced by the 
 45.26  excess reserve amount.  The aid reduction equals the product of 
 45.27  the lesser of the excess reserve amount or the current year 
 45.28  revenue under subdivision 1 times the ratio of the district's 
 45.29  aid for the ~~prior~~ current year under subdivision 4 to the 
 45.30  district's revenue for the ~~prior~~ current year under subdivision 
 45.31  1.  The levy reduction equals the excess reserve amount minus 
 45.32  the aid reduction.  ~~The commissioner must reallocate aid and~~ 
 45.33  ~~levy reduced under this subdivision to other eligible early~~ 
 45.34  ~~childhood family education programs in proportion to each~~ 
 45.35  ~~district's revenue for the prior year under subdivision 1.~~  For 
 45.36  the purposes of this subdivision, if a district does not levy 
 45.37  the entire amount permitted under subdivision 4, the revenue 
 46.1   under subdivision 1 must be reduced in direct proportion to the 
 46.2   actual amount levied. 
 46.3      (b) Notwithstanding paragraph (a), for fiscal year 2003, 
 46.4   the excess reserve amount shall be computed using the balance in 
 46.5   a district's early childhood family education reserve account on 
 46.6   June 30, 2002.  For fiscal year 2004, the excess reserve amount 
 46.7   shall be computed using the adjusted average balance in a 
 46.8   district's early childhood family education reserve account on 
 46.9   June 30, 2002, and June 30, 2003. 
 46.10     Sec. 3.  Laws 2000, chapter 489, article 1, section 36, is 
 46.11  amended to read: 
 46.12     Sec. 36.  [MFIP SOCIAL SERVICES CHILD CARE SUNSET AND 
 46.13  REPORT.] 
 46.14     Minnesota Statutes, section 119B.05, subdivision 1, clause 
 46.15  (5), expires on June 30, 2003.  MFIP social services child care 
 46.16  must be paid for with the appropriations under section 45, 
 46.17  subdivision 3.  Priority must be given to mental health services 
 46.18  and chemical dependency services.  ~~Any amount that is not needed~~ 
 46.19  ~~for MFIP social services child care must be used for child care~~ 
 46.20  ~~assistance under Minnesota Statutes, section 119B.03.~~  The 
 46.21  commissioner of children, families, and learning must notify the 
 46.22  chairs of the family and early childhood committees in the house 
 46.23  and the senate if expenditures for MFIP social services child 
 46.24  care are expected to exceed appropriations under section 45, 
 46.25  subdivision 3.  The commissioner shall report to the legislature 
 46.26  by January 15, 2003, on the use of MFIP social services child 
 46.27  care with recommendations on the need for social services child 
 46.28  care and its effectiveness in promoting self-sufficiency. 
 46.29     Sec. 4.  Laws 2001, First Special Session chapter 3, 
 46.30  article 1, section 17, subdivision 3, is amended to read: 
 46.31     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
 46.32  childhood family education aid according to Minnesota Statutes, 
 46.33  section 124D.135: 
 46.34       ~~$20,758,000~~ $20,725,000   .....     2002 
 46.35       ~~$20,663,000~~ $18,824,000   .....     2003
 46.36     The 2002 appropriation includes $2,036,000 for 2001 and 
 47.1   ~~$18,722,000~~ $18,689,000 for 2002.  
 47.2      The 2003 appropriation includes ~~$2,081,000~~ $2,076,000 for 
 47.3   2002 and ~~$18,582,000~~ $16,748,000 for 2003.  
 47.4      Any balance in the first year does not cancel but is 
 47.5   available in the second year. 
 47.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 47.7   following final enactment. 
 47.8      Sec. 5.  Laws 2001, First Special Session chapter 3, 
 47.9   article 1, section 17, subdivision 7, is amended to read: 
 47.10     Subd. 7.  [SCHOOL AGE CARE AID.] For school age care aid 
 47.11  according to Minnesota Statutes, section 124D.22: 
 47.12       $221,000       .....     2002 
 47.13       ~~$133,000~~ $100,000      .....     2003
 47.14     The 2002 appropriation includes $30,000 for 2001 and 
 47.15  $191,000 for 2002. 
 47.16     The 2003 appropriation includes $21,000 for 2002 and 
 47.17  ~~$112,000~~ $79,000 for 2003. 
 47.18     Any balance in the first year does not cancel but is 
 47.19  available in the second year. 
 47.20     Sec. 6.  Laws 2001, First Special Session chapter 3, 
 47.21  article 1, section 17, subdivision 9, is amended to read: 
 47.22     Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
 47.23  according to Minnesota Statutes, section 119B.05: 
 47.24       ~~$82,253,000~~ $69,201,000   .....     2002 
 47.25       ~~$78,606,000~~ $77,122,000   .....     2003 
 47.26     Any balance in the first year does not cancel but is 
 47.27  available in the second year. 
 47.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 47.29  following final enactment. 
 47.30     Sec. 7.  Laws 2001, First Special Session chapter 3, 
 47.31  article 1, section 17, subdivision 11, is amended to read: 
 47.32     Subd. 11.  [CHILD CARE SERVICE GRANTS.] For child care 
 47.33  development activities under child care service grants according 
 47.34  to Minnesota Statutes, section 119B.21: 
 47.35       $1,865,000      .....     2002
 47.36       ~~$1,865,000~~      ~~.....~~     ~~2003~~
 48.1      ~~Any balance in the first year does not cancel but is~~ 
 48.2   ~~available in the second year~~ This appropriation is available 
 48.3   until June 30, 2003. 
 48.4      Sec. 8.  Laws 2001, First Special Session chapter 3, 
 48.5   article 1, section 19, subdivision 3, is amended to read: 
 48.6      Subd. 3.  [TRANSITION YEAR FAMILIES.] To provide 
 48.7   uninterrupted assistance under Minnesota Statutes, section 
 48.8   119B.03, for families completing transition year child care 
 48.9   assistance: 
 48.10       ~~$3,620,000~~ $1,404,000   .....     2002
 48.11       ~~$4,040,000~~ $1,357,000   .....     2003
 48.12     ~~Any balance in the first year does not cancel but is~~ 
 48.13  ~~available in the second year.~~  Any unspent balance from the 
 48.14  appropriations for 2002 and 2003 is returned to the TANF reserve.
 48.15  TANF dollars appropriated for this purpose in 2001 which are not 
 48.16  encumbered by January 1, 2002, are returned to the TANF reserve. 
 48.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 48.18  following final enactment. 
 48.19     Sec. 9.  Laws 2001, First Special Session chapter 3, 
 48.20  article 1, section 19, subdivision 5, is amended to read: 
 48.21     Subd. 5.  [MFIP SOCIAL SERVICES CHILD CARE.] For social 
 48.22  services child care costs of eligible MFIP participants under 
 48.23  Minnesota Statutes, section 119B.05, subdivision 1, clause (5): 
 48.24       ~~$3,297,000~~ $973,000   .....     2002
 48.25       ~~$2,865,000~~ $997,000   .....     2003
 48.26     ~~Any balance in the first year does not cancel but is~~ 
 48.27  ~~available in the second year.~~  Any unspent balance from the 
 48.28  appropriations for 2002 and 2003 is returned to the TANF reserve.
 48.29  TANF dollars appropriated for this purpose in 2001 which are not 
 48.30  encumbered by January 1, 2002, are returned to the TANF reserve. 
 48.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 48.32  following final enactment. 
 48.33     Sec. 10.  [REPEALER.] 
 48.34     (a) Minnesota Statutes 2000, sections 119B.189; 119B.19; 
 48.35  119B.21; 119B.211; and 124D.17, are repealed effective July 1, 
 48.36  2003. 
 49.1      (b) Minnesota Statutes 2000, sections 120B.22 and 120B.23, 
 49.2   are repealed effective for revenue for fiscal year 2004. 
 49.3                              ARTICLE 8 
 49.4                              PREVENTION 
 49.5      Section 1.  Minnesota Statutes 2001 Supplement, section 
 49.6   124D.20, subdivision 5, is amended to read: 
 49.7      Subd. 5.  [TOTAL COMMUNITY EDUCATION LEVY.] (a) To obtain 
 49.8   total community education revenue for fiscal year 2003, a 
 49.9   district operating a youth after-school enrichment program under 
 49.10  section 124D.19, subdivision 12, may levy the amount raised by a 
 49.11  maximum tax rate of ~~.7431~~ 1.0017 percent times the adjusted net 
 49.12  tax capacity of the district for the year preceding the year the 
 49.13  levy is certified.  To obtain total community education 
 49.14  revenue for fiscal year 2003, a district not operating a youth 
 49.15  after-school enrichment program may levy the amount raised by a 
 49.16  maximum tax rate of ~~.4795~~ .6463 percent times the adjusted net 
 49.17  tax capacity of the district for the year preceding the year the 
 49.18  levy is certified.  
 49.19     (b) To obtain total community education revenue for fiscal 
 49.20  year 2004 and later, a district may levy the amount raised by a 
 49.21  maximum tax rate of 1.653 percent times the adjusted net tax 
 49.22  capacity of the district for the year preceding the year the 
 49.23  levy is certified. 
 49.24     (c) If the amount of the total community education 
 49.25  levy under paragraph (a) or (b) would exceed the total community 
 49.26  education revenue, the total community education levy shall be 
 49.27  determined according to subdivision 6. 
 49.28     Sec. 2.  Laws 2001, First Special Session chapter 3, 
 49.29  article 2, section 15, subdivision 3, is amended to read: 
 49.30     Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
 49.31  education aid according to Minnesota Statutes, section 124D.20: 
 49.32       ~~$14,209,000~~ $14,190,000   .....     2002
 49.33       ~~$13,111,000~~ $ 8,186,000   .....     2003
 49.34     The 2002 appropriation includes $1,528,000 for 2001 and 
 49.35  ~~$12,681,000~~ $12,662,000 for 2002.  
 49.36     The 2003 appropriation includes ~~$1,409,000~~ $1,406,000 for 
 50.1   2002 and ~~$11,702,000~~ $6,780,000 for 2003.  
 50.2      Any balance in the first year does not cancel but is 
 50.3   available in the second year. 
 50.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 50.5   following final enactment. 
 50.6      Sec. 3.  Laws 2001, First Special Session chapter 3, 
 50.7   article 2, section 15, subdivision 10, is amended to read: 
 50.8      Subd. 10.  [AFTER-SCHOOL ENRICHMENT GRANTS.] For 
 50.9   after-school enrichment grants according to Minnesota Statutes, 
 50.10  section 124D.221:  
 50.11       $5,510,000     .....     2002
 50.12       ~~$5,510,000~~ $5,235,000    .....     2003
 50.13     Any balance in the first year does not cancel but is 
 50.14  available in the second year. 
 50.15     Sec. 4.  Laws 2001, First Special Session chapter 3, 
 50.16  article 2, section 16, subdivision 2, is amended to read: 
 50.17     Subd. 2.  [GUARD OUR YOUTH.] For the guard our youth 
 50.18  program sponsored by the department of military affairs to serve 
 50.19  at-risk and underserved youth ages nine to 16 years: 
 50.20       ~~$191,000~~ $44,000      .....     2002  
 50.21     This is a one-time appropriation. 
 50.22     Any balance in the first year does not cancel but is 
 50.23  available in the second year. 
 50.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 50.25  following final enactment. 
 50.26                             ARTICLE 9 
 50.27                          SELF-SUFFICIENCY 
 50.28     Section 1.  Minnesota Statutes 2001 Supplement, section 
 50.29  124D.531, subdivision 1, is amended to read: 
 50.30     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
 50.31  (a) The state total adult basic education aid for fiscal year 
 50.32  2001 equals $30,157,000.  The state total adult basic education 
 50.33  aid for ~~later years~~ fiscal year 2002 equals: 
 50.34     (1) the state total adult basic education aid for the 
 50.35  preceding fiscal year; times 
 50.36     (2) the lesser of: 
 51.1      (i) 1.08, or 
 51.2      (ii) the greater of 1.00 or the ratio of the state total 
 51.3   contact hours in the first prior program year to the state total 
 51.4   contact hours in the second prior program year.  The state total 
 51.5   adult basic education aid for fiscal year 2003 and later years 
 51.6   equals the state total adult basic education aid for fiscal year 
 51.7   2002.  Beginning in fiscal year 2002, two percent of the state 
 51.8   total adult basic education aid must be set aside for adult 
 51.9   basic education supplemental service grants under section 
 51.10  124D.522.  
 51.11     (b) The state total adult basic education aid, excluding 
 51.12  basic population aid, equals the difference between the amount 
 51.13  computed in paragraph (a), and the state total basic population 
 51.14  aid under subdivision 2. 
 51.15     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 51.16  124D.531, subdivision 7, is amended to read: 
 51.17     Subd. 7.  [PROGRAM AUDITS.] Programs that receive aid under 
 51.18  this section must maintain records that support the aid 
 51.19  payments.  The commissioner may audit these records upon 
 51.20  request.  ~~The commissioner must establish procedures for~~ 
 51.21  ~~conducting fiscal audits of adult basic education programs~~ 
 51.22  ~~according to the schedule in this subdivision.  In calendar year~~ 
 51.23  ~~2003, the commissioner must audit one-half of approved adult~~ 
 51.24  ~~basic education programs that received aid for fiscal year 2002,~~ 
 51.25  ~~and in calendar year 2004, the commissioner must audit the~~ 
 51.26  ~~remaining unaudited programs for aid received in fiscal year~~ 
 51.27  ~~2003.  Beginning with fiscal year 2005, the commissioner must,~~ 
 51.28  ~~at a minimum, audit each adult basic education program once~~ 
 51.29  ~~every five years.  The commissioner must establish procedures to~~ 
 51.30  ~~reconcile any discrepancies between aid payments based on~~ 
 51.31  ~~information reported to the commissioner and aid estimates based~~ 
 51.32  ~~on a program audit.~~ 
 51.33     Sec. 3.  Minnesota Statutes 2000, section 124D.531, 
 51.34  subdivision 4, is amended to read: 
 51.35     Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
 51.36  Notwithstanding subdivisions 2 and 3, the total adult basic 
 52.1   education aid for a program per prior year contact hour must not 
 52.2   exceed four times the rate per prior year contact hour computed 
 52.3   under subdivision 3, clause (2). 
 52.4      (b) For fiscal ~~year~~ years 2002 and ~~later~~ 2003, the aid for 
 52.5   a program under subdivision 3, clause (2), adjusted for changes 
 52.6   in program membership, must not exceed the aid for that program 
 52.7   under subdivision 3, clause (2), for the first preceding fiscal 
 52.8   year by more than the greater of 17 percent or $20,000. 
 52.9      (c) For fiscal year 2004, the aid for a program under 
 52.10  subdivision 3, clause (2), adjusted for changes in program 
 52.11  membership, must not exceed the sum of the aid for that program 
 52.12  under subdivision 3, clause (2), and section 124D.54 for fiscal 
 52.13  year 2003 by more than the greater of nine percent or $10,000. 
 52.14     (d) For fiscal year 2005 and later, the aid for a program 
 52.15  under subdivision 3, clause (2), adjusted for changes in program 
 52.16  membership, must not exceed the aid for that program under 
 52.17  subdivision 3, clause (2), for the first preceding fiscal year 
 52.18  by more than the greater of nine percent or $10,000. 
 52.19     (e) Adult basic education aid is payable to a program for 
 52.20  unreimbursed costs. 
 52.21     Sec. 4.  Minnesota Statutes 2000, section 124D.68, 
 52.22  subdivision 2, is amended to read: 
 52.23     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
 52.24  eligible to participate in the graduation incentives program:  
 52.25     (a) any pupil under the age of 21 who:  
 52.26     (1) performs substantially below the performance level for 
 52.27  pupils of the same age in a locally determined achievement test; 
 52.28     (2) is at least one year behind in satisfactorily 
 52.29  completing coursework or obtaining credits for graduation; 
 52.30     (3) is pregnant or is a parent; 
 52.31     (4) has been assessed as chemically dependent; 
 52.32     (5) has been excluded or expelled according to sections 
 52.33  121A.40 to 121A.56; 
 52.34     (6) has been referred by a school district for enrollment 
 52.35  in an eligible program or a program pursuant to section 124D.69; 
 52.36     (7) is a victim of physical or sexual abuse; 
 53.1      (8) has experienced mental health problems; 
 53.2      (9) has experienced homelessness sometime within six months 
 53.3   before requesting a transfer to an eligible program; 
 53.4      (10) speaks English as a second language or has limited 
 53.5   English proficiency; or 
 53.6      (11) has withdrawn from school or has been chronically 
 53.7   truant; or 
 53.8      (b) for fiscal year 2003, any person who is at least 21 
 53.9   years of age and who:  
 53.10     (1) has received fewer than 14 years of public or nonpublic 
 53.11  education, beginning at age 5; 
 53.12     (2) has not completed the requirements for a high school 
 53.13  diploma; and 
 53.14     (3) at the time of application, (i) is eligible for 
 53.15  unemployment benefits or has exhausted the benefits, (ii) is 
 53.16  eligible for, or is receiving income maintenance and support 
 53.17  services, as defined in section 268.0111, subdivision 5, or 
 53.18  (iii) is eligible for services under the displaced homemaker 
 53.19  program, state wage-subsidy program, or any programs under the 
 53.20  federal Jobs Training Partnership Act or its successor. 
 53.21     Sec. 5.  Minnesota Statutes 2000, section 126C.05, 
 53.22  subdivision 12, is amended to read: 
 53.23     Subd. 12.  [AVERAGE DAILY MEMBERSHIP, PUPILS AGE 21 OR 
 53.24  OVER.] For fiscal year 2003, the average daily membership for 
 53.25  pupils age 21 or over is equal to the ratio of the number of 
 53.26  yearly hours that the pupil is in membership to the number of 
 53.27  instructional hours in the district's regular school year.  A 
 53.28  pupil enrolled in the graduation incentives program under 
 53.29  section 124D.68, subdivision 2, paragraph (b), for more than the 
 53.30  number of instructional hours in the district's regular school 
 53.31  year may be counted as more than one pupil in average daily 
 53.32  membership. 
 53.33     Sec. 6.  Laws 2001, First Special Session chapter 3, 
 53.34  article 3, section 9, subdivision 2, is amended to read: 
 53.35     Subd. 2.  [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 
 53.36  Minnesota economic opportunity grants, Minnesota Statutes, 
 54.1   sections 119A.374 to 119A.376: 
 54.2        $8,514,000     .....     2002
 54.3        ~~$8,514,000~~ $8,088,000    .....     2003
 54.4      Any balance in the first year does not cancel but is 
 54.5   available in the second year. 
 54.6      Sec. 7.  Laws 2001, First Special Session chapter 3, 
 54.7   article 3, section 9, subdivision 5, is amended to read: 
 54.8      Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
 54.9   education aid according to Minnesota Statutes, section 124D.531: 
 54.10       $32,150,000    .....     2002 
 54.11       ~~$34,731,000~~ $32,368,000   .....     2003
 54.12     The 2002 appropriation includes $3,019,000 for 2001 and 
 54.13  $29,131,000 for 2002.  
 54.14     The 2003 appropriation includes $3,237,000 for 2002 and 
 54.15  ~~$31,494,000~~ $29,131,000 for 2003.  
 54.16     Sec. 8.  Laws 2001, First Special Session chapter 3, 
 54.17  article 3, section 9, subdivision 6, is amended to read: 
 54.18     Subd. 6.  [ADULT BASIC EDUCATION AUDITS; STATE DIRECTOR.] 
 54.19  For adult basic education audits under Minnesota Statutes, 
 54.20  section 124D.531, and for a state adult basic education director:
 54.21       $100,000       .....     2002 
 54.22       ~~$275,000~~       ~~.....~~     ~~2003~~ 
 54.23     ~~The fiscal year 2004 appropriation is $275,000.  In fiscal~~ 
 54.24  ~~year 2005 and thereafter, the base is $170,000 from the general~~ 
 54.25  ~~fund each year.~~ 
 54.26     ~~Any balance in the first year does not cancel but is~~ 
 54.27  ~~available in the second year.~~  This appropriation is available 
 54.28  until June 30, 2003. 
 54.29     Sec. 9.  Laws 2001, First Special Session chapter 3, 
 54.30  article 3, section 9, subdivision 7, is amended to read: 
 54.31     Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
 54.32  according to Minnesota Statutes, section 124D.54: 
 54.33       $3,195,000     .....     2002 
 54.34       ~~$3,356,000~~ $3,247,000    .....     2003 
 54.35     The 2002 appropriation includes $305,000 for 2001 and 
 54.36  $2,890,000 for 2002.  
 55.1      The 2003 appropriation includes $321,000 for 2002 
 55.2   and ~~$3,035,000~~ $2,926,000 for 2003.  
 55.3      Sec. 10.  Laws 2001, First Special Session chapter 3, 
 55.4   article 3, section 9, subdivision 10, is amended to read: 
 55.5      Subd. 10.  [FAMILY ASSETS FOR INDEPENDENCE.] For family 
 55.6   assets for independence: 
 55.7        $500,000       .....     2002
 55.8      Any balance in the first year does not cancel but is 
 55.9   available in the second year.  The base for this program in 2004 
 55.10  is zero. 
 55.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 55.12  following final enactment. 
 55.13     Sec. 11.  [ADULT BASIC EDUCATION AID; FISCAL YEAR 2004.] 
 55.14     For purposes of computing the fiscal year 2004 adult basic 
 55.15  education aid for a program under Minnesota Statutes, section 
 55.16  124D.531, subdivision 3, clause (2), the contact hours for 
 55.17  students participating in the program during the first prior 
 55.18  program year must be increased by 75 percent of the attendance 
 55.19  hours for students participating in the adult graduation aid 
 55.20  program under Minnesota Statutes, section 124D.54, during fiscal 
 55.21  year 2003. 
 55.22     Sec. 12.  [REPEALER.] 
 55.23     (a) Minnesota Statutes 2000, sections 119A.46, subdivisions 
 55.24  1, 2, 4, 5, 6, 7, 8, 9, and 10; and 124D.54; and Minnesota 
 55.25  Statutes 2001 Supplement, section 119A.46, subdivision 3, are 
 55.26  repealed effective for revenue for fiscal year 2004. 
 55.27     (b) Laws 1997, chapter 248, section 47, as amended by Laws 
 55.28  1998, First Special Session chapter 1, article 1, section 5, is 
 55.29  repealed effective for revenue for fiscal year 2004. 
 55.30                             ARTICLE 10 
 55.31                             LIBRARIES 
 55.32     Section 1.  Laws 2001, First Special Session chapter 3, 
 55.33  article 4, section 5, subdivision 2, is amended to read: 
 55.34     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
 55.35  according to Minnesota Statutes, sections 134.32 to 134.35: 
 55.36       $8,570,000     .....     2002 
 56.1        $8,570,000     .....     2003 
 56.2      The 2002 appropriation includes $857,000 for 2001 and 
 56.3   $7,713,000 for 2002. 
 56.4      The 2003 appropriation includes $857,000 for 2002 and 
 56.5   $7,713,000 for 2003. 
 56.6      ~~Base level funding for fiscal year 2004 is $9,723,000 and~~ 
 56.7   ~~$9,722,000 for fiscal year 2005.~~