1.1                          A bill for an act 
  1.2             relating to legislative enactments; correcting 
  1.3             miscellaneous oversights, inconsistencies, unintended 
  1.4             results, and technical errors in human services and 
  1.5             prekindergarten-grade 12 education code; appropriating 
  1.6             money; amending Minnesota Statutes 1998, sections 
  1.7             125A.21, subdivision 1; and 256B.501, by adding a 
  1.8             subdivision; Minnesota Statutes 1999 Supplement, 
  1.9             sections 124D.65, subdivision 4; 126C.052; 126C.10, 
  1.10            subdivisions 2 and 23; 126C.12, subdivision 1; and 
  1.11            256B.77, subdivision 10; Laws 1999, chapters 241, 
  1.12            articles 1, section 70; and 4, section 29; 245, 
  1.13            articles 1, section 3, subdivision 2; and 4, section 
  1.14            121; repealing Laws 1999, chapter 241, article 10, 
  1.15            section 5. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1 
  1.18                    DEPARTMENT OF HUMAN SERVICES 
  1.19     Section 1.  Minnesota Statutes 1998, section 125A.21, 
  1.20  subdivision 1, is amended to read: 
  1.21     Subdivision 1.  [OBLIGATION TO PAY.] Nothing in sections 
  1.22  125A.03 to 125A.24 and 125A.65 relieves an insurer or similar 
  1.23  third party from an otherwise valid obligation to pay, or 
  1.24  changes the validity of an obligation to pay, for services 
  1.25  rendered to a child with a disability, and the child's family.  
  1.26  A school district shall pay the nonfederal share of medical 
  1.27  assistance services provided according to section 256B.0625, 
  1.28  subdivision 26.  Eligible expenditures must not be made from 
  1.29  federal funds or funds used to match other federal funds.  Any 
  1.30  federal disallowances are the responsibility of the school 
  2.1   district.  A school district may pay or reimburse copayments, 
  2.2   coinsurance, deductibles, and other enrollee cost-sharing 
  2.3   amounts, on behalf of the student or family, in connection with 
  2.4   health and related services provided under an individual 
  2.5   educational plan.  
  2.6      Sec. 2.  Minnesota Statutes 1998, section 256B.501, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 13.  [ICF/MR RATE INCREASES BEGINNING OCTOBER 1, 
  2.9   1999, AND OCTOBER 1, 2000.] (a) For the rate years beginning 
  2.10  October 1, 1999, and October 1, 2000, the commissioner shall 
  2.11  make available to each facility reimbursed under this section, 
  2.12  section 256B.5011, and Laws 1993, First Special Session chapter 
  2.13  1, article 4, section 11, an adjustment to the total operating 
  2.14  payment rate.  For each facility, total operating costs shall be 
  2.15  separated into costs that are compensation-related and all other 
  2.16  costs.  "Compensation-related costs" means the facility's 
  2.17  allowable program operating cost category employee training 
  2.18  expenses, and the facility's allowable salaries, payroll taxes, 
  2.19  and fringe benefits.  The term does not include these same 
  2.20  salary-related costs for both administrative or central office 
  2.21  employees. 
  2.22     For the purpose of determining the adjustment to be granted 
  2.23  under this subdivision, the commissioner must use the most 
  2.24  recent cost report that has been subject to desk audit. 
  2.25     (b) For the rate year beginning October 1, 1999, the 
  2.26  commissioner shall make available a rate increase for 
  2.27  compensation-related costs of 4.6 percent and a rate increase 
  2.28  for all other operating costs of 3.2 percent. 
  2.29     (c) For the rate year beginning October 1, 2000, the 
  2.30  commissioner shall make available a rate increase for 
  2.31  compensation-related costs of 3.6 percent and a rate increase 
  2.32  for all other operating costs of two percent. 
  2.33     (d) For each facility, the commissioner shall determine the 
  2.34  payment rate adjustment using the categories specified in 
  2.35  paragraph (a) multiplied by the rate increases specified in 
  2.36  paragraph (b) or (c), and then dividing the resulting amount by 
  3.1   the facility's actual resident days.  
  3.2      (e) Any facility whose payment rates are governed by 
  3.3   closure agreements, receivership agreements, or Minnesota Rules, 
  3.4   part 9553.0075, are not eligible for an adjustment otherwise 
  3.5   granted under this subdivision.  
  3.6      (f) A facility may apply for the compensation-related 
  3.7   payment rate adjustment calculated under this subdivision.  The 
  3.8   application must be made to the commissioner and contain a plan 
  3.9   by which the facility will distribute the compensation-related 
  3.10  portion of the payment rate adjustment to employees of the 
  3.11  facility.  For facilities in which the employees are represented 
  3.12  by an exclusive bargaining representative, an agreement 
  3.13  negotiated and agreed to by the employer and the exclusive 
  3.14  bargaining representative constitutes the plan.  The 
  3.15  commissioner shall review the plan to ensure that the payment 
  3.16  rate adjustment per diem is used as provided in this 
  3.17  subdivision.  To be eligible, a facility must submit its plan 
  3.18  for the compensation distribution by December 31 each year.  A 
  3.19  facility may amend its plan for the second rate year by 
  3.20  submitting a revised plan by December 31, 2000.  If a facility's 
  3.21  plan for compensation distribution is effective for its 
  3.22  employees after October 1 of the year that the funds are 
  3.23  available, the payment rate adjustment per diem shall be 
  3.24  effective the same date as its plan. 
  3.25     (g) A copy of the approved distribution plan must be made 
  3.26  available to all employees.  This must be done by giving each 
  3.27  employee a copy or by posting it in an area of the facility to 
  3.28  which all employees have access.  If an employee does not 
  3.29  receive the compensation adjustment described in their 
  3.30  facility's approved plan and is unable to resolve the problem 
  3.31  with the facility's management or through the employee's union 
  3.32  representative, the employee may contact the commissioner at an 
  3.33  address or phone number provided by the commissioner and 
  3.34  included in the approved plan. 
  3.35     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  3.36  256B.77, subdivision 10, is amended to read: 
  4.1      Subd. 10.  [CAPITATION PAYMENT.] (a) The commissioner shall 
  4.2   pay a capitation payment to the county authority and, when 
  4.3   applicable under subdivision 6, paragraph (a), to the service 
  4.4   delivery organization for each medical assistance eligible 
  4.5   enrollee.  The commissioner shall develop capitation payment 
  4.6   rates for the initial contract period for each demonstration 
  4.7   site in consultation with an independent actuary, to ensure that 
  4.8   the cost of services under the demonstration project does not 
  4.9   exceed the estimated cost for medical assistance services for 
  4.10  the covered population under the fee-for-service system for the 
  4.11  demonstration period.  For each year of the demonstration 
  4.12  project, the capitation payment rate shall be based on 96 
  4.13  percent of the projected per person costs that would otherwise 
  4.14  have been paid under medical assistance fee-for-service during 
  4.15  each of those years.  Rates shall be adjusted within the limits 
  4.16  of the available risk adjustment technology, as mandated by 
  4.17  section 62Q.03.  In addition, the commissioner shall implement 
  4.18  appropriate risk and savings sharing provisions with county 
  4.19  administrative entities and, when applicable under subdivision 
  4.20  6, paragraph (a), service delivery organizations within the 
  4.21  projected budget limits.  Capitation rates shall be adjusted, at 
  4.22  least annually, to include any rate increases and payments for 
  4.23  expanded or newly covered services for eligible individuals.  
  4.24  The initial demonstration project rate shall include an amount 
  4.25  in addition to the fee-for-service payments to adjust for 
  4.26  underutilization of dental services.  Any savings beyond those 
  4.27  allowed for the county authority, county administrative entity, 
  4.28  or service delivery organization shall be first used to meet the 
  4.29  unmet needs of eligible individuals.  Payments to providers 
  4.30  participating in the project are exempt from the requirements of 
  4.31  sections 256.966 and 256B.03, subdivision 2. 
  4.32     (b) The commissioner shall monitor and evaluate annually 
  4.33  the effect of the discount on consumers, the county authority, 
  4.34  and providers of disability services.  Findings shall be 
  4.35  reported and recommendations made, as appropriate, to ensure 
  4.36  that the discount effect does not adversely affect the ability 
  5.1   of the county administrative entity or providers of services to 
  5.2   provide appropriate services to eligible individuals, and does 
  5.3   not result in cost shifting of eligible individuals to the 
  5.4   county authority. 
  5.5      (c) For risk-sharing to occur under this subdivision, the 
  5.6   aggregate fee-for-service cost of covered services provided by 
  5.7   the county administrative entity under this section must exceed 
  5.8   the aggregate sum of capitation payments made to the county 
  5.9   administrative entity under this section.  The county authority 
  5.10  is required to maintain its current level of nonmedical 
  5.11  assistance spending on enrollees.  If the county authority 
  5.12  spends less in nonmedical assistance dollars on enrollees than 
  5.13  it spent the year prior to the contract year, the amount of 
  5.14  underspending shall be deducted from the aggregate 
  5.15  fee-for-service cost of covered services.  The commissioner 
  5.16  shall then compare the fee-for-service costs and capitation 
  5.17  payments related to the services provided for the term of this 
  5.18  contract.  The commissioner shall base its calculation of the 
  5.19  fee-for-service costs on application of the medical assistance 
  5.20  fee schedule to services identified on the county administrative 
  5.21  entity's encounter claims submitted to the commissioner.  The 
  5.22  aggregate fee-for-service cost shall not include any third-party 
  5.23  recoveries or cost-avoided amounts. 
  5.24     If the commissioner finds that the aggregate 
  5.25  fee-for-service cost is greater than the sum of the capitation 
  5.26  payments, the commissioner shall settle according to the 
  5.27  following schedule: 
  5.28     (1) For the first contract year for each project, the 
  5.29  commissioner shall pay the county administrative entity 50 
  5.30  percent of the difference between the sum of the capitation 
  5.31  payments and 100 percent of projected fee-for-service costs.  
  5.32  For aggregate fee-for-service costs in excess of 100 percent of 
  5.33  projected fee-for-service costs, the commissioner shall pay 250 
  5.34  25 percent of the difference between the aggregate 
  5.35  fee-for-service costs and the projected fee-for-service costs, 
  5.36  up to 104 percent of the projected fee-for-service costs.  The 
  6.1   county administrative entity shall be responsible for all costs 
  6.2   in excess of 104 percent of projected fee-for-service costs. 
  6.3      (2) For the second contract year for each project, the 
  6.4   commissioner shall pay the county administrative entity 37.5 
  6.5   percent of the difference between the sum of the capitation 
  6.6   payments and 100 percent of projected fee-for-service costs.  
  6.7   The county administrative entity shall be responsible for all 
  6.8   costs in excess of 100 percent of projected fee-for-service 
  6.9   costs. 
  6.10     (3) For the third contract year for each project, the 
  6.11  commissioner shall pay the county administrative entity 25 
  6.12  percent of the difference between the sum of the capitation 
  6.13  payments and 100 percent of projected fee-for-service costs.  
  6.14  The county administrative entity shall be responsible for all 
  6.15  costs in excess of 100 percent of projected fee-for-service 
  6.16  costs. 
  6.17     (4) For the fourth and subsequent contract years for each 
  6.18  project, the county administrative entity shall be responsible 
  6.19  for all costs in excess of the capitation payments. 
  6.20     (d) In addition to other payments under this subdivision, 
  6.21  the commissioner may increase payments by up to 0.25 percent of 
  6.22  the projected per person costs that would otherwise have been 
  6.23  paid under medical assistance fee-for-service.  The commissioner 
  6.24  may make the increased payments to: 
  6.25     (1) offset rate increases for regional treatment services 
  6.26  under subdivision 22 which are higher than was expected by the 
  6.27  commissioner when the capitation was set at 96 percent; and 
  6.28     (2) implement incentives to encourage appropriate, high 
  6.29  quality, efficient services. 
  6.30     Sec. 4.  Laws 1999, chapter 245, article 1, section 3, 
  6.31  subdivision 2, is amended to read: 
  6.32  Subd. 2.  Health Systems
  6.33  and Special Populations               66,999,000     66,269,000
  6.34                Summary by Fund
  6.35  General              46,593,000    46,299,000
  6.36  State Government
  6.37  Special Revenue      10,557,000    10,012,000
  7.1   Health Care 
  7.2   Access                9,849,000     9,958,000
  7.3   [MERC ADMINISTRATIVE COSTS.] Of the 
  7.4   general fund appropriation for the 
  7.5   medical education and research fund, 
  7.6   $150,000 in fiscal year 2000 and 
  7.7   $150,000 in fiscal year 2001 is for the 
  7.8   commissioner for administrative costs 
  7.9   in implementing Minnesota Statutes, 
  7.10  sections 62J.692 and 62J.693. 
  7.11  [WIC TRANSFERS.] The general fund 
  7.12  appropriation for the women, infants, 
  7.13  and children (WIC) food supplement 
  7.14  program is available for either year of 
  7.15  the biennium.  Transfers of these funds 
  7.16  between fiscal years must either be to 
  7.17  maximize federal funds or to minimize 
  7.18  fluctuations in the number of program 
  7.19  participants. 
  7.20  [MINNESOTA CHILDREN WITH SPECIAL HEALTH 
  7.21  NEEDS CARRYOVER.] General fund 
  7.22  appropriations for treatment services 
  7.23  in the services for Minnesota children 
  7.24  with special health needs program are 
  7.25  available for either year of the 
  7.26  biennium. 
  7.27  [SUICIDE PREVENTION STUDY.] Of the 
  7.28  general fund appropriation, $100,000 in 
  7.29  fiscal year 2000 is for the 
  7.30  commissioner to study suicide issues 
  7.31  and develop a suicide prevention plan.  
  7.32  The study must be conducted in 
  7.33  consultation with local community 
  7.34  health boards, mental health 
  7.35  professionals, schools, and other 
  7.36  interested parties.  The plan must be 
  7.37  reported to the legislature by January 
  7.38  15, 2000.  
  7.39  [FAMILY PRACTICE RESIDENCY PROGRAM.] Of 
  7.40  the general fund appropriation, 
  7.41  $300,000 in fiscal year 2000 is to the 
  7.42  commissioner to make a grant to the 
  7.43  city of Duluth for a family practice 
  7.44  residency program for northeastern 
  7.45  Minnesota. 
  7.46  [UNCOMPENSATED CARE.] The commissioner 
  7.47  shall study and report to the 
  7.48  legislature by January 15, 2000, with: 
  7.49  (1) statistical information on the 
  7.50  amount of uncompensated health care 
  7.51  provided in Minnesota, the types of 
  7.52  care provided, the settings in which 
  7.53  the care is provided, and, if known, 
  7.54  the most common reasons why the care is 
  7.55  uncompensated; and 
  7.56  (2) recommendations for reducing the 
  7.57  level of uncompensated care, including, 
  7.58  but not limited to, methods to enroll 
  7.59  eligible persons in public health care 
  7.60  programs through simplification of the 
  7.61  application process and other efforts. 
  8.1   [RURAL HOSPITAL CAPITAL IMPROVEMENT 
  8.2   GRANT PROGRAM.] (a) Of this 
  8.3   appropriation, $2,800,000 for each 
  8.4   fiscal year is from the health care 
  8.5   access fund to the commissioner for the 
  8.6   rural hospital capital improvement 
  8.7   grant program described in Minnesota 
  8.8   Statutes, section 144.148. This 
  8.9   appropriation shall not become part of 
  8.10  the base for the 2002-2003 biennium. 
  8.11  (b) The commissioner may provide up to 
  8.12  $300,000 for the Westbrook health 
  8.13  center for hospital and clinic 
  8.14  improvements, upon receipt of 
  8.15  information from the Westbrook health 
  8.16  center indicating how it has fulfilled 
  8.17  the requirements of Minnesota Statutes, 
  8.18  section 144.148, and evidence that it 
  8.19  has raised at least a dollar-for-dollar 
  8.20  match from nonstate sources. 
  8.21  [ACCESS TO SUMMARY MINIMUM DATA SET 
  8.22  (MDS).] The commissioner, in 
  8.23  cooperation with the commissioner of 
  8.24  administration, shall work to obtain 
  8.25  access to Minimum Data Set (MDS) data 
  8.26  that is electronically transmitted by 
  8.27  nursing facilities to the health 
  8.28  department.  The MDS data shall be made 
  8.29  available on a quarterly basis to 
  8.30  industry trade associations for use in 
  8.31  quality improvement efforts and 
  8.32  comparative analysis.  The MDS data 
  8.33  shall be provided to the industry trade 
  8.34  associations in the form of summary 
  8.35  aggregate data, without patient 
  8.36  identifiers, to ensure patient 
  8.37  privacy.  The commissioner may charge 
  8.38  for the actual cost of production of 
  8.39  these documents. 
  8.40  [NURSING HOME MORATORIUM REPORT.] In 
  8.41  preparing the report required by 
  8.42  Minnesota Statutes, section 144A.071, 
  8.43  subdivision 5, the commissioner and the 
  8.44  commissioner of human services shall 
  8.45  analyze the adequacy of the supply of 
  8.46  nursing home beds by measuring the 
  8.47  ability of hospitals to promptly 
  8.48  discharge patients to a nursing home 
  8.49  within the hospital's primary service 
  8.50  area.  If it is determined that a 
  8.51  shortage of beds exists, the report 
  8.52  shall present a plan to correct the 
  8.53  service deficits.  The report shall 
  8.54  also analyze the impact of assisted 
  8.55  living services on the medical 
  8.56  assistance utilization of nursing homes.
  8.57  [HEALTH CARE PURCHASING ALLIANCES.] Of 
  8.58  the health care access fund 
  8.59  appropriation, $100,000 each year is to 
  8.60  the commissioner for grants to two 
  8.61  local organizations to develop health 
  8.62  care purchasing alliances under 
  8.63  Minnesota Statutes, section 62T.02, to 
  8.64  negotiate the purchase of health care 
  8.65  services from licensed entities.  Of 
  8.66  this amount, $50,000 each year is for a 
  8.67  grant to the Southwest Regional 
  9.1   Development Commissioner to coordinate 
  9.2   purchasing alliance development in the 
  9.3   southwest area of the state, and 
  9.4   $50,000 each year is for a grant to the 
  9.5   University of Minnesota extension 
  9.6   services in Crookston to coordinate 
  9.7   purchasing alliance development in the 
  9.8   northwest area of the state.  This is a 
  9.9   one-time appropriation and shall not 
  9.10  become part of base level funding for 
  9.11  this activity for the 2002-2003 
  9.12  biennium. 
  9.13  [GENERAL FUND TOBACCO BASE REDUCTION.] 
  9.14  The general fund base level 
  9.15  appropriation for tobacco prevention 
  9.16  and control programs and activities 
  9.17  shall be reduced by $1,100,000 each 
  9.18  year of the biennium beginning July 1, 
  9.19  2001.  Section 13, sunset of uncodified 
  9.20  language, does not apply to this 
  9.21  provision. 
  9.22  [STANDARDS FOR SPECIAL CASE AUTOPSIES.] 
  9.23  Of this general fund appropriation, 
  9.24  $20,000 for the biennium is for a grant 
  9.25  to a professional association 
  9.26  representing coroners and medical 
  9.27  examiners in Minnesota to conduct case 
  9.28  studies, and develop and disseminate 
  9.29  guidelines, for autopsy practice in 
  9.30  special cases.  This is a one-time 
  9.31  appropriation and shall not become part 
  9.32  of base level funding for the 2002-2003 
  9.33  biennium. 
  9.34     Sec. 5.  Laws 1999, chapter 245, article 4, section 121, is 
  9.35  amended to read: 
  9.36     Sec. 121.  [EFFECTIVE DATE.] 
  9.37     (a) Sections 3, 4, 5, 45, 95, and 97, subdivision 3, 
  9.38  paragraph (d), are effective July 1, 2000. 
  9.39     (b) Section 56 is effective upon federal approval. 
  9.40     Sec. 6.  [REDUCTION OF TRANSIT BASE.] 
  9.41     The commissioner of finance shall reduce the general fund 
  9.42  base level appropriations to the metropolitan council for 
  9.43  transit by $56,801,000, and to the commissioner of 
  9.44  transportation for greater Minnesota transit by $15,892,000, 
  9.45  each year of the biennium beginning July 1, 2001, if a 
  9.46  constitutional amendment is adopted at the 2000 general 
  9.47  election, transferring no less than 15 percent of the proceeds 
  9.48  of the sales tax on motor vehicles to a transit fund. 
  9.49     Sec. 7.  [APPROPRIATIONS; PROPERTY TAX REFORM ACCOUNT 
  9.50  TRANSFER.] 
  9.51     (a) Notwithstanding Minnesota Statutes, sections 477A.03 
 10.1   and 477A.06, or any other law to the contrary, the amount of 
 10.2   increases in appropriations to county criminal justice aid, 
 10.3   low-income housing aid, and local government aid for small 
 10.4   cities that are enacted by the legislature in the 2000 
 10.5   legislative session are appropriated from the property tax 
 10.6   reform account established in Minnesota Statutes, section 
 10.7   16A.1521, and are for fiscal years 2002 and 2003 only. 
 10.8      (b) On June 30, 2000, the commissioner of finance shall 
 10.9   transfer from the property tax reform account established in 
 10.10  Minnesota Statutes, section 16A.1521, to the unrestricted 
 10.11  general fund balance any remaining balance in the account except 
 10.12  for amounts appropriated under paragraph (a). 
 10.13     Sec. 8.  [EFFECTIVE DATE.] 
 10.14     Section 1 is effective July 1, 2000.  Sections 2 to 4 are 
 10.15  effective retroactive to July 1, 1999. 
 10.16                             ARTICLE 2 
 10.17             EDUCATION CODE:  PREKINDERGARTEN-GRADE 12 
 10.18     Section 1.  Minnesota Statutes 1999 Supplement, section 
 10.19  124D.65, subdivision 4, is amended to read: 
 10.20     Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 10.21  limited English proficiency programs revenue for fiscal year 
 10.22  2000 equals $27,454,000.  The state total limited English 
 10.23  proficiency programs revenue for fiscal year 2001 equals 
 10.24  $31,752,000.  
 10.25     (b) The state total limited English proficiency programs 
 10.26  revenue for later fiscal years equals: 
 10.27     (1) the state total limited English proficiency programs 
 10.28  revenue for the preceding fiscal year; times 
 10.29     (2) the program growth factor under section 125A.76 
 10.30  subdivision 1; times 
 10.31     (3) the ratio of the state total number of pupils with 
 10.32  limited English proficiency for the current fiscal year to the 
 10.33  state total number of pupils with limited English proficiency 
 10.34  for the preceding fiscal year. 
 10.35     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 10.36  126C.052, is amended to read: 
 11.1      126C.052 [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 
 11.2   EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 
 11.3      A district is required to reserve $3 in fiscal year 2000 
 11.4   and $11 in fiscal year 2001 and later per adjusted marginal cost 
 11.5   pupil unit for class size reduction, all-day kindergarten, or 
 11.6   for reducing special education student-to-instructor ratios.  
 11.7   The school board of each district must pass a resolution stating 
 11.8   which one of these three programs will be funded with this 
 11.9   reserve.  The reserve amount under this section must be 
 11.10  allocated to the education site as defined in section 123B.04, 
 11.11  subdivision 1, according to a plan adopted by the school board. 
 11.12     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 11.13  126C.10, subdivision 2, is amended to read: 
 11.14     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 11.15  district equals the formula allowance times the resident 
 11.16  adjusted marginal cost pupil units for the school year.  The 
 11.17  formula allowance for fiscal year 1998 is $3,581.  The formula 
 11.18  allowance for fiscal year 1999 is $3,530.  The formula allowance 
 11.19  for fiscal year 2000 is $3,740.  The formula allowance for 
 11.20  fiscal year 2001 and subsequent fiscal years is $3,875. 
 11.21     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 11.22  126C.10, subdivision 23, is amended to read: 
 11.23     Subd. 23.  [REFERENDUM OFFSET ADJUSTMENT.] A district that 
 11.24  qualifies for the referendum allowance reduction under section 
 11.25  126C.17, subdivision 12, and whose referendum allowance under 
 11.26  section 126C.17, subdivision 1, as adjusted under section 
 11.27  126C.17, subdivisions 2 and 12, does not exceed the referendum 
 11.28  allowance limit under section 126C.17, subdivision 2, clause 
 11.29  (2), shall receive a referendum offset adjustment.  In fiscal 
 11.30  year 2000 and thereafter, the referendum offset adjustment is 
 11.31  equal to $25 per resident adjusted marginal cost pupil unit. 
 11.32     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 11.33  126C.12, subdivision 1, is amended to read: 
 11.34     Subdivision 1.  [REVENUE.] Of a district's general 
 11.35  education revenue for fiscal year 2000 and thereafter each 
 11.36  school district shall reserve an amount equal to the formula 
 12.1   allowance multiplied by the following calculation: 
 12.2      (1) the sum of adjusted marginal cost pupil units pupils in 
 12.3   average daily membership, according to section 126C.05, 
 12.4   subdivision 5, in kindergarten times .057; plus 
 12.5      (2) the sum of adjusted marginal cost pupil units pupils in 
 12.6   average daily membership, according to section 126C.05, 
 12.7   subdivision 5, in grades 1 to 3 times .115; plus 
 12.8      (3) the sum of adjusted marginal cost pupil units pupils in 
 12.9   average daily membership, according to section 126C.05, 
 12.10  subdivision 5, in grades 4 to 6 times .06. 
 12.11     Sec. 6.  Laws 1999, chapter 241, article 1, section 70, is 
 12.12  amended to read: 
 12.13     Sec. 70.  [EFFECTIVE DATES.] 
 12.14     Sections 13, 14, 26, 30, 37, and 39 are effective for 
 12.15  revenue for fiscal year 2000 and later.  Section 41 is effective 
 12.16  for revenue for fiscal year 2001 and later.  Sections 46, 47, 
 12.17  and 55 to 60 are effective the day following final enactment.  
 12.18  Section 61 is effective for taxes payable in 2000 and later. 
 12.19     Sec. 7.  Laws 1999, chapter 241, article 4, section 29, is 
 12.20  amended to read: 
 12.21     Sec. 29.  [REPEALER.] 
 12.22     (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
 12.23  123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
 12.24  subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
 12.25  subdivisions 1 and 2; section 123B.66; 123B.67; 123B.68; and 
 12.26  123B.69, are, is repealed effective the day following final 
 12.27  enactment. 
 12.28     (b) Minnesota Statutes 1998, section 123B.58, is repealed 
 12.29  effective July 1, 2004. 
 12.30     (c) Minnesota Statutes 1998, section 123B.64, subdivision 
 12.31  4, is repealed effective for revenue for fiscal year 2000. 
 12.32     (d) (c) Minnesota Statutes 1998, section 123B.64, 
 12.33  subdivisions 1, 2, and 3, are repealed effective for revenue for 
 12.34  fiscal year 2001. 
 12.35     (e) (d) Minnesota Rules, parts 3500.3900; 3500.4000; 
 12.36  3500.4100; 3500.4200; and 3500.4300, are repealed. 
 13.1      Sec. 8.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] 
 13.2      (a) The sums indicated in this section are appropriated 
 13.3   from the general fund unless otherwise indicated to the 
 13.4   department of children, families, and learning for the fiscal 
 13.5   years designated. 
 13.6        $32,316,000     .....     2000 
 13.7        $29,785,000     .....     2001 
 13.8      (b) Any balance the first year does not cancel but is 
 13.9   available in the second year. 
 13.10     (c) $21,000 each year is from the trunk highway fund. 
 13.11     (d) $673,000 in 2000 and $678,000 in 2001 is for the board 
 13.12  of teaching. 
 13.13     (e) Notwithstanding Minnesota Statutes, section 15.53, 
 13.14  subdivision 2, the commissioner of children, families, and 
 13.15  learning may contract with a school district for a period no 
 13.16  longer than five consecutive years to work in the development or 
 13.17  implementation of the graduation rule.  The commissioner may 
 13.18  contract for services and expertise as necessary.  The contracts 
 13.19  are not subject to Minnesota Statutes, section 16B.06. 
 13.20     (f) $165,000 in 2000 is for the state board of education.  
 13.21  Any functions of the state board of education that are not 
 13.22  specifically transferred to another agency are transferred to 
 13.23  the department of children, families, and learning under 
 13.24  Minnesota Statutes, section 15.039.  For the position that is 
 13.25  classified, upon transferring the responsibilities, the current 
 13.26  incumbent is appointed to the classified position without exam 
 13.27  or probationary period. 
 13.28     (g) $2,000,000 in 2000 is for litigation costs and may only 
 13.29  be used for those purposes.  This is a one-time appropriation. 
 13.30     Sec. 9.  [REPEALER WITHOUT EFFECT.] 
 13.31     The repeal of Minnesota Statutes 1998, sections 123A.44; 
 13.32  123A.441; 123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 
 13.33  123B.57, subdivisions 4, 5, and 7; 123B.59, subdivision 7; 
 13.34  123B.63, subdivisions 1 and 2; 123B.67; 123B.68; and 123B.69, by 
 13.35  Laws 1999, chapter 241, article 4, section 29, with an effective 
 13.36  date of May 26, 1999, is without effect and Minnesota Statutes 
 14.1   1998, sections 123A.44; 123A.441; 123A.442; 123A.443; 123A.444; 
 14.2   123A.445; 123A.446; 123B.57, subdivisions 4, 5, and 7; 123B.59, 
 14.3   subdivision 7; 123B.63, subdivisions 1 and 2; 123B.67; 123B.68; 
 14.4   and 123B.69, remain in effect after May 25, 1999. 
 14.5      Sec. 10.  [REPEALER.] 
 14.6      Laws 1999, chapter 241, article 10, section 5, is repealed 
 14.7   retroactive to July 1, 1999. 
 14.8      Sec. 11.  [EFFECTIVE DATE.] 
 14.9      Section 8 is effective retroactive to July 1, 1999.  
 14.10  Sections 7, paragraph (a), and 9 are effective retroactive to 
 14.11  May 26, 1999.