1.1                          A bill for an act
  1.2             relating to education; prekindergarten through grade 
  1.3             12; higher education; early childhood and family 
  1.4             education; providing for general education, special 
  1.5             programs, employment and other transitions, facilities 
  1.6             and technology, education excellence and other policy, 
  1.7             nutrition and other programs, libraries, and the 
  1.8             department of children, families, and learning; making 
  1.9             technical, conforming, and clarifying amendments; 
  1.10            appropriating money; amending Minnesota Statutes 1998, 
  1.11            sections 119B.03, by adding a subdivision; 120A.22, 
  1.12            subdivision 3; 120B.13, subdivision 4; 121A.22, 
  1.13            subdivisions 2 and 3; 121A.61, subdivision 3; 122A.25, 
  1.14            subdivision 3, and by adding subdivisions; 122A.31, 
  1.15            subdivision 4; 122A.68, subdivision 4; 123A.485, 
  1.16            subdivision 4; 123B.02, by adding a subdivision; 
  1.17            123B.04, subdivision 2; 123B.143, subdivision 1; 
  1.18            123B.51, subdivision 6; 123B.52, by adding a 
  1.19            subdivision; 123B.53, as amended; 123B.57, subdivision 
  1.20            1; 123B.58, subdivisions 3 and 4; 123B.59, as amended; 
  1.21            123B.63, subdivisions 3 and 4; 123B.71, subdivision 
  1.22            10; 123B.72, subdivision 3; 123B.75, subdivision 5; 
  1.23            123B.77, subdivision 3; 123B.79, subdivision 7; 
  1.24            123B.80, by adding a subdivision; 123B.85, subdivision 
  1.25            1; 123B.86, subdivision 1; 123B.88, subdivision 3; 
  1.26            123B.90, subdivision 1; 124D.03, subdivision 1; 
  1.27            124D.081, subdivision 6; 124D.10, subdivisions 9 and 
  1.28            20; 124D.111, subdivision 1; 124D.128, subdivision 4; 
  1.29            124D.16, subdivision 1; 124D.44; 124D.454, 
  1.30            subdivisions 2, 4, 6, 7, and 10; 124D.52, subdivisions 
  1.31            1, 2, 3, and by adding a subdivision; 124D.86, 
  1.32            subdivision 6, and by adding subdivisions; 124D.88, by 
  1.33            adding a subdivision; 124D.892, subdivision 3; 
  1.34            125A.76, subdivision 7; 126C.10, by adding 
  1.35            subdivisions; 126C.12, subdivision 2; 126C.40, 
  1.36            subdivisions 1, 2, and 3; 126C.69, subdivision 15; 
  1.37            127A.05, subdivision 4; 127A.41, subdivisions 8 and 9; 
  1.38            128D.11, subdivision 3; 136A.125, by adding a 
  1.39            subdivision; 169.447, by adding a subdivision; 
  1.40            169.448, subdivision 3; 171.06, subdivision 2; 
  1.41            171.321; 245A.14, subdivision 4, and by adding a 
  1.42            subdivision; 354.05, subdivision 2; 354A.011, 
  1.43            subdivision 27; and 471.15; Minnesota Statutes 1999 
  1.44            Supplement, sections 119B.011, subdivisions 12, 15, 
  1.45            and 20; 119B.03, subdivision 4; 119B.05, subdivision 
  1.46            1; 120B.30, subdivision 1; 122A.18, subdivision 3; 
  2.1             122A.23; 122A.31, subdivisions 1 and 2; 122A.61, 
  2.2             subdivision 1; 123A.05, subdivision 2; 123B.54; 
  2.3             123B.83, subdivision 4; 123B.90, subdivision 2; 
  2.4             123B.91, subdivision 1; 124D.10, subdivisions 3, 4, 8, 
  2.5             11, 15, and 23; 124D.11, subdivisions 1, 4, and 6; 
  2.6             124D.128, subdivision 2; 124D.221, subdivision 2; 
  2.7             124D.53, subdivision 3; 124D.68, subdivision 9; 
  2.8             124D.84, subdivision 1; 124D.86, subdivisions 1 and 3; 
  2.9             124D.87; 124D.88, subdivision 3; 125A.023, 
  2.10            subdivisions 3 and 5; 125A.027, subdivision 3; 
  2.11            125A.08; 125A.51; 125A.76, subdivisions 1 and 2; 
  2.12            125A.79, subdivisions 1, 2, 5, and 8; 125A.80; 
  2.13            125B.21, subdivision 3; 126C.05, subdivisions 3, 5, 
  2.14            and 6; 126C.10, subdivisions 2, 5, 13, 14, 24, 25, and 
  2.15            26; 126C.17, subdivision 9; 126C.40, subdivision 6; 
  2.16            126C.44; 127A.05, subdivision 6; 127A.42, subdivision 
  2.17            3; 127A.45, subdivision 12a; 127A.51; 148.235, by 
  2.18            adding a subdivision; and 181A.04, subdivision 6; Laws 
  2.19            1992, chapter 499, article 7, sections 31, as amended; 
  2.20            and 32; Laws 1997, chapter 157, section 71, as 
  2.21            amended; Laws 1997, First Special Session chapter 4, 
  2.22            article 8, section 4, as amended; Laws 1998, chapter 
  2.23            404, section 5, subdivision 11, as amended; Laws 1998, 
  2.24            First Special Session chapter 1, article 1, sections 
  2.25            10 and 11; Laws 1999, chapters 205, articles 1, 
  2.26            sections 65 and 71, subdivisions 3, 7, and 9; 2, 
  2.27            section 4, subdivision 3; 4, section 12, subdivisions 
  2.28            5, 6, and 7; 214, article 1, section 4, subdivision 2; 
  2.29            241, articles 1, sections 68, subdivisions 2, 4, and 
  2.30            5; and 69; 2, section 60, subdivisions 7, 9, 12, 13, 
  2.31            14, 17, and 19; 3, section 3, subdivisions 2 and 4; 4, 
  2.32            section 27, subdivisions 2, 3, 4, and 5; 5, section 
  2.33            18, subdivisions 5 and 6; 6, section 14, subdivisions 
  2.34            2, 3, 4, and 5; 7, section 2, subdivisions 2 and 5; 8, 
  2.35            section 4, subdivisions 4 and 5; 9, section 49; and 
  2.36            10, section 6; proposing coding for new law in 
  2.37            Minnesota Statutes, chapters 121A; 123B; 124D; 125B; 
  2.38            and 126C; repealing Minnesota Statutes 1998, sections 
  2.39            120A.41; and 124D.53, subdivisions 1, 2, and 5; 
  2.40            Minnesota Statutes 1999 Supplement, sections 
  2.41            124D.1155, subdivision 5; and 124D.53, subdivision 4; 
  2.42            Laws 1998, First Special Session chapter 1, article 1, 
  2.43            section 10, subdivision 2; Laws 1999, chapters 241, 
  2.44            article 9, sections 35 and 36; and 245, article 4, 
  2.45            section 3; Minnesota Rules, parts 3535.9920; 
  2.46            4830.9005; 4830.9010; 4830.9015; 4830.9020; and 
  2.47            4830.9030. 
  2.48  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.49                             ARTICLE 1 
  2.50                         GENERAL EDUCATION 
  2.51     Section 1.  Minnesota Statutes 1999 Supplement, section 
  2.52  122A.61, subdivision 1, is amended to read: 
  2.53     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
  2.54  required to reserve an amount equal to at least ~~one~~ two percent 
  2.55  of the basic revenue under section 126C.10, subdivision 2, for 
  2.56  in-service education for programs under section 120B.22, 
  2.57  subdivision 2, for staff development plans, including plans for 
  2.58  challenging instructional activities and experiences under 
  2.59  section 122A.60, and for curriculum development and programs, 
  3.1   other in-service education, teachers' workshops, teacher 
  3.2   conferences, the cost of substitute teachers staff development 
  3.3   purposes, and other related costs for staff development 
  3.4   efforts.  A district may annually waive the requirement to 
  3.5   reserve their basic revenue under this section if a majority 
  3.6   vote of the licensed teachers in the district and a majority 
  3.7   vote of the school board agree to a resolution to waive the 
  3.8   requirement.  A district in statutory operating debt is exempt 
  3.9   from reserving basic revenue according to this section.  
  3.10  Districts may expend an additional amount of unreserved revenue 
  3.11  for staff development based on their needs.  With the exception 
  3.12  of amounts reserved for staff development from revenues 
  3.13  allocated directly to school sites, the board must initially 
  3.14  allocate 50 percent of the reserved revenue to each school site 
  3.15  in the district on a per teacher basis, which must be retained 
  3.16  by the school site until used.  The board may retain 25 percent 
  3.17  to be used for district wide staff development efforts.  The 
  3.18  remaining 25 percent of the revenue must be used to make grants 
  3.19  to school sites for best practices methods.  A grant may be used 
  3.20  for any purpose authorized under section 120B.22, subdivision 2, 
  3.21  122A.60, or for the costs of curriculum development and 
  3.22  programs, other in-service education, teachers' workshops, 
  3.23  teacher conferences, substitute teachers for staff development 
  3.24  purposes, and other staff development efforts, and determined by 
  3.25  the site professional development team.  The site professional 
  3.26  development team must demonstrate to the school board the extent 
  3.27  to which staff at the site have met the outcomes of the 
  3.28  program.  The board may withhold a portion of initial allocation 
  3.29  of revenue if the staff development outcomes are not being met. 
  3.30     Sec. 2.  Minnesota Statutes 1998, section 122A.68, 
  3.31  subdivision 4, is amended to read: 
  3.32     Subd. 4.  [EMPLOYMENT CONDITIONS.] A school district must 
  3.33  pay a teaching resident a salary equal to ~~75~~ 90 percent of the 
  3.34  salary of a first-year teacher with a bachelor's degree in the 
  3.35  district.  The resident shall be a member of the local 
  3.36  bargaining unit and shall be covered under the terms of the 
  4.1   contract, except for salary and benefits, unless otherwise 
  4.2   provided in this subdivision.  The school district must provide 
  4.3   health insurance coverage for the resident if the district 
  4.4   provides it for teachers, and may provide other benefits upon 
  4.5   negotiated agreement. 
  4.6      Sec. 3.  Minnesota Statutes 1998, section 123A.485, 
  4.7   subdivision 4, is amended to read: 
  4.8      Subd. 4.  [NEW DISTRICTS.] If a district consolidates with 
  4.9   another district that has received aid under section 123A.39, 
  4.10  subdivision 3, or 123A.485 for a combination or consolidation 
  4.11  taking effect within six years of the effective date of the new 
  4.12  consolidation, only the pupil units in the district or districts 
  4.13  not previously reorganized must be counted for aid purposes 
  4.14  under subdivision 2.  If two or more districts consolidate and 
  4.15  all districts received aid under subdivision 2 for a 
  4.16  consolidation taking effect within six years of the effective 
  4.17  date of the new consolidation, only one quarter of the pupil 
  4.18  units in the newly created district must be used to determine 
  4.19  aid under subdivision 2. 
  4.20     Sec. 4.  Minnesota Statutes 1998, section 123B.75, 
  4.21  subdivision 5, is amended to read: 
  4.22     Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
  4.23  settlement revenue" means the current, delinquent, and 
  4.24  manufactured home property tax receipts collected by the county 
  4.25  and distributed to the school district. 
  4.26     (b) In June of each year, the school district must 
  4.27  recognize as revenue, in the fund for which the levy was made, 
  4.28  the lesser of:  
  4.29     (1) the May, June, and July school district tax settlement 
  4.30  revenue received in that calendar year; or 
  4.31     (2) the sum of: 
  4.32     (i) 31 percent of the referendum levy certified in the 
  4.33  prior calendar year according to section 126C.17, subdivision 9; 
  4.34  plus 
  4.35     (ii) the entire amount of the levy certified in the prior 
  4.36  calendar year according to sections 124D.86, subdivision 4, for 
  5.1   school districts receiving revenue under section 124D.86, 
  5.2   subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 
  5.3   1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 
  5.4   2; and 126C.48, subdivision 6. 
  5.5      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  5.6   124D.11, subdivision 1, is amended to read: 
  5.7      Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
  5.8   education revenue must be paid to a charter school as though it 
  5.9   were a district.  The general education revenue for each 
  5.10  adjusted marginal cost pupil unit is the state average general 
  5.11  education revenue per pupil unit, plus the referendum 
  5.12  equalization aid allowance in the pupil's district of residence, 
  5.13  minus an amount equal to the product of the formula allowance 
  5.14  according to section 126C.10, subdivision 2, times .0485, 
  5.15  calculated without basic skills revenue, transportation sparsity 
  5.16  revenue, and the transportation portion of the transition 
  5.17  revenue adjustment, plus basic skills revenue as though the 
  5.18  school were a school district. 
  5.19     (b) Notwithstanding paragraph (a), for charter schools in 
  5.20  the first year of operation, general education revenue shall be 
  5.21  computed using the number of adjusted pupil units in the current 
  5.22  fiscal year. 
  5.23     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
  5.24  124D.86, subdivision 1, is amended to read: 
  5.25     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
  5.26  under this section must be used for programs established under a 
  5.27  desegregation plan filed with the department of children, 
  5.28  families, and learning, according to Minnesota Rules, parts 
  5.29  3535.0100 to 3535.0180 or under court order~~, to increase~~.  The 
  5.30  revenue must be used to create or enhance learning opportunities 
  5.31  ~~and reduce the learning gap between learners living in high~~ 
  5.32  ~~concentrations of poverty and their peers~~ which are designed to 
  5.33  provide opportunities for students to have increased interracial 
  5.34  contacts through classroom experiences, staff initiatives, and 
  5.35  other educationally related programs. 
  5.36     Sec. 7.  Minnesota Statutes 1998, section 124D.86, is 
  6.1   amended by adding a subdivision to read: 
  6.2      Subd. 1a.  [BUDGET APPROVAL PROCESS.] Each year before a 
  6.3   district receives any revenue under subdivision 3, clause (4), 
  6.4   the district must submit to the department of children, 
  6.5   families, and learning, for its review and approval a budget 
  6.6   detailing the costs of the desegregation/integration plan filed 
  6.7   under Minnesota Rules, parts 3535.0100 to 3535.0180.  
  6.8   Notwithstanding chapter 14, the department may develop criteria 
  6.9   for budget approval.  The department shall consult with the 
  6.10  desegregation advisory board in developing these criteria.  The 
  6.11  criteria developed by the department should address, at a 
  6.12  minimum, the following: 
  6.13     (1) budget items cannot be approved unless they are part of 
  6.14  any overall desegregation plan approved by the district for 
  6.15  isolated sites or by the multidistrict collaboration council and 
  6.16  participation individual members; 
  6.17     (2) the budget must indicate how revenue expenditures will 
  6.18  be used specifically to support increased opportunities for 
  6.19  interracial contact; 
  6.20     (3) components of the budget to be considered by the 
  6.21  department, including staffing, curriculum, transportation, 
  6.22  facilities, materials, and equipment and reasonable planning 
  6.23  costs, as determined by the department; 
  6.24     (4) if plans are proposed to enhance existing programs, the 
  6.25  total budget being appropriated to the program must be included, 
  6.26  indicating what part is to be funded using integration revenue 
  6.27  and what part is to be funded using other revenues; and 
  6.28     (5) the commissioner may deny revenue under this section if 
  6.29  the district is not meeting its goals outlined under subdivision 
  6.30  1b. 
  6.31     Sec. 8.  Minnesota Statutes 1998, section 124D.86, is 
  6.32  amended by adding a subdivision to read: 
  6.33     Subd. 1b.  [PLAN COMPONENTS.] Plans submitted by each 
  6.34  district under Minnesota Rules, parts 3535.0160 and 3535.0170, 
  6.35  must be approved by the district's board each year before 
  6.36  integration revenue will be awarded.  If a district is applying 
  7.1   for revenue for a plan that is part of a multidistrict council, 
  7.2   the individual district shall not receive revenue unless it 
  7.3   ratifies the plan adopted by its multidistrict council or 
  7.4   approves a modified plan with a written explanation of any 
  7.5   modifications.  Each plan shall contain: 
  7.6      (1) an identification of the integration issues at the 
  7.7   sites or districts covered by Minnesota Rules, parts 3535.0100 
  7.8   to 3535.0180; 
  7.9      (2) a description of the community outreach that preceded 
  7.10  the integration plan, such that the commissioner can determine 
  7.11  whether the membership of the planning councils complied with 
  7.12  the requirements of Minnesota Rules, parts 3535.0100 to 
  7.13  3535.0180; and 
  7.14     (3) the specific goals of the integration plan. 
  7.15  By June 30 of the subsequent fiscal year, each district shall 
  7.16  report to the commissioner in writing about the extent to which 
  7.17  the integration goals identified in the plan were met. 
  7.18     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
  7.19  124D.86, subdivision 3, is amended to read: 
  7.20     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 2000 and 
  7.21  later fiscal years, integration revenue equals the following 
  7.22  amounts: 
  7.23     (1) for independent school district No. 709, Duluth, $207 
  7.24  times the adjusted pupil units for the school year; 
  7.25     (2) for independent school district No. 625, St. Paul, $446 
  7.26  times the adjusted pupil units for the school year; 
  7.27     (3) for special school district No. 1, Minneapolis, $536 
  7.28  times the adjusted pupil units for the school year; and 
  7.29     (4) for a district not listed in clause (1), (2), or (3) 
  7.30  that is required to implement a plan according to the 
  7.31  requirements of Minnesota Rules, parts 3535.0100 to 
  7.32  3535.0180, ~~as proposed in 23 State Register 1344, December 7,~~ 
  7.33  ~~1998,~~ the lesser of 
  7.34     (i) the actual cost of implementing the plan during the 
  7.35  fiscal year minus the aid received under subdivision 6, or 
  7.36     (ii) $93 times the adjusted pupil units for the school year.
  8.1      Any money received by districts in clauses (1) to (3) which 
  8.2   exceeds the amount received in fiscal year 2000 shall be subject 
  8.3   to the budget requirements in subdivision 1a. 
  8.4      Sec. 10.  Minnesota Statutes 1998, section 124D.86, 
  8.5   subdivision 6, is amended to read: 
  8.6      Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
  8.7   integration aid under subdivision 5 must be adjusted for each 
  8.8   pupil residing in a district eligible for integration revenue 
  8.9   under subdivision 3, clause (1), (2), or (3), and attending a 
  8.10  nonresident district under sections 123A.05 to 123A.08, 124D.03, 
  8.11  124D.06, 124D.07, and 124D.08, that is not eligible for 
  8.12  integration revenue under subdivision 3, clause (1), (2), or 
  8.13  (3), and has implemented a plan under Minnesota Rules, parts 
  8.14  3535.0100 to 3535.0180, if the enrollment of the pupil in the 
  8.15  nonresident district contributes to desegregation or integration 
  8.16  purposes.  The adjustments must be made according to this 
  8.17  subdivision.  
  8.18     (b) ~~Aid paid to the district of the pupil's residence must~~ 
  8.19  ~~be reduced by an amount equal to the revenue per resident pupil~~ 
  8.20  ~~unit of the resident district times the number of resident pupil~~ 
  8.21  ~~units attributable to the pupil for the time the pupil is~~ 
  8.22  ~~enrolled in a nonresident district.~~ 
  8.23     ~~(c)~~ Aid paid to a district serving nonresidents must be 
  8.24  increased by an amount equal to the ~~aid reduction to the~~ 
  8.25  ~~resident district under paragraphs (b) and (d)~~ revenue per pupil 
  8.26  unit of the resident district under subdivision 3, clause (1), 
  8.27  (2), or (3), minus the revenue attributable to the pupil in the 
  8.28  nonresident district under subdivision 3, clause (4), for the 
  8.29  time the pupil is enrolled in the nonresident district.  
  8.30     ~~(d) If the amount of the reduction to be made from the aid~~ 
  8.31  ~~of a district is greater than the amount of aid otherwise due~~ 
  8.32  ~~the district, the excess reduction must be made from other state~~ 
  8.33  ~~aids due the district.~~ 
  8.34     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
  8.35  124D.87, is amended to read: 
  8.36     124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
  9.1   TRANSPORTATION AID.] 
  9.2      (a) A district that provides transportation of pupils to 
  9.3   and from an interdistrict program for desegregation or 
  9.4   integration purposes is eligible for state aid to ~~cover~~ 
  9.5   reimburse the additional costs of transportation during the 
  9.6   preceding fiscal year.  
  9.7      (b) A district in the metropolitan area may apply to the 
  9.8   commissioner for state aid to ~~cover~~ reimburse the costs of 
  9.9   transporting pupils who are enrolled under section 
  9.10  124D.03 during the preceding fiscal year if the enrollment of 
  9.11  the student in the nonresident district contributes to 
  9.12  desegregation or integration purposes.  The commissioner shall 
  9.13  develop the form and manner of applications for state aid, the 
  9.14  criteria to be used to determine when transportation is for 
  9.15  desegregation or integration purposes, and the accounting 
  9.16  procedure to be used to determine excess costs.  In determining 
  9.17  aid amounts, the commissioner shall consider other revenue 
  9.18  received by the district for transportation for desegregation or 
  9.19  integration purposes. 
  9.20     ~~(c) Aid must be paid under paragraph (b) only if aid~~ 
  9.21  ~~amounts under paragraph (a) have been fully funded.~~ 
  9.22     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
  9.23  126C.05, subdivision 5, is amended to read: 
  9.24     Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
  9.25  for a district or charter school means the sum of: 
  9.26     (1) the number of pupil units served, according to 
  9.27  subdivision 7, plus 
  9.28     (2) pupil units according to subdivision 1 for whom the 
  9.29  district or charter school pays tuition under section 123A.18, 
  9.30  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  9.31  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
  9.32  125A.65, minus 
  9.33     (3) pupil units according to subdivision 1 for whom the 
  9.34  district or charter school receives tuition under section 
  9.35  123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  9.36  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 10.1   125A.65. 
 10.2      (b) Adjusted marginal cost pupil units means the sum 
 10.3   of ~~.9~~ .77 times the pupil units defined in paragraph (a) for the 
 10.4   current school year and ~~.1~~ .23 times the pupil units defined in 
 10.5   paragraph (a) for the previous school year. 
 10.6      Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 10.7   126C.05, subdivision 6, is amended to read: 
 10.8      Subd. 6.  [RESIDENT PUPIL UNITS.] (a) Resident pupil units 
 10.9   for a district means the number of pupil units according to 
 10.10  subdivision 1 residing in the district. 
 10.11     (b) Resident marginal cost pupil units means the sum 
 10.12  of ~~.9~~ .77 times the pupil units defined in paragraph (a) for the 
 10.13  current year and ~~.1~~ .23 times the pupil units defined in 
 10.14  paragraph (a) for the previous school year. 
 10.15     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 10.16  126C.10, subdivision 2, is amended to read: 
 10.17     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 10.18  district equals the formula allowance times the resident pupil 
 10.19  units for the school year.  The formula allowance for fiscal 
 10.20  year 1998 is $3,581.  The formula allowance for fiscal year 1999 
 10.21  is $3,530.  The formula allowance for fiscal year 2000 is 
 10.22  $3,740.  The formula allowance for fiscal year 2001 and 
 10.23  subsequent fiscal years is ~~$3,875~~ $3,964. 
 10.24     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 10.25  126C.10, subdivision 5, is amended to read: 
 10.26     Subd. 5.  [TRAINING AND EXPERIENCE REVENUE.] (a) The 
 10.27  training and experience revenue for each district equals the 
 10.28  greater of zero or the result of the following computation:  
 10.29     (1) subtract .8 from the training and experience index; 
 10.30     (2) multiply the result in clause (1) by the product of 
 10.31  $660 times the adjusted marginal cost pupil units for the school 
 10.32  year.  
 10.33     (b) Training and experience revenue equals the greater of 
 10.34  the amount calculated in paragraph (a) for fiscal year 2001 or 
 10.35  the training and experience adjustment revenue, according to 
 10.36  subdivision 5b. 
 11.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 11.2   following final enactment. 
 11.3      Sec. 16.  Minnesota Statutes 1998, section 126C.10, is 
 11.4   amended by adding a subdivision to read: 
 11.5      Subd. 5a.  [TRAINING AND EXPERIENCE ADJUSTMENT BASE.] The 
 11.6   training and experience adjustment base equals the product of 
 11.7   $130 plus the district's training and experience transition 
 11.8   allowance for fiscal year 1998 under Minnesota Statutes 1996, 
 11.9   section 124A.22, subdivision 13b, paragraph (c), times the 
 11.10  actual pupil units for 1998. 
 11.11     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 11.12  following final enactment. 
 11.13     Sec. 17.  Minnesota Statutes 1998, section 126C.10, is 
 11.14  amended by adding a subdivision to read: 
 11.15     Subd. 5b.  [TRAINING AND EXPERIENCE ADJUSTMENT 
 11.16  REVENUE.] For fiscal year 2001, the training and experience 
 11.17  adjustment revenue equals 45 percent of the training and 
 11.18  experience base. 
 11.19     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 11.20  following final enactment. 
 11.21     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 11.22  126C.10, subdivision 24, is amended to read: 
 11.23     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 11.24  qualifies for equity revenue if the school district's adjusted 
 11.25  marginal cost pupil unit amount of basic revenue, supplemental 
 11.26  revenue, transition revenue, and referendum revenue is less than 
 11.27  the value of the school district at or immediately above the 
 11.28  90th percentile of school districts in its equity region for 
 11.29  those revenue categories and the school district's 
 11.30  administrative offices are not located in a city of the first 
 11.31  class on July 1, 1999. 
 11.32     (b) Equity revenue for a qualifying district that receives 
 11.33  referendum revenue under section 126C.17, subdivision 4, equals 
 11.34  the product of (1) the district's adjusted marginal cost pupil 
 11.35  units for that year; times (2) the sum of (i) $10, plus (ii) 
 11.36  $30, times the school district's equity index computed under 
 12.1   section 126C.10, subdivision 6. 
 12.2      (c) Equity revenue for a qualifying district that does not 
 12.3   receive referendum revenue under section 126C.17, subdivision 4, 
 12.4   equals the product of the district's adjusted marginal cost 
 12.5   pupil units for that year times $10. 
 12.6      <b>EFFECTIVE DATE:</b>  This section is effective for revenue in 
 12.7   fiscal year 2000. 
 12.8      Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 12.9   126C.10, subdivision 25, is amended to read: 
 12.10     Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
 12.11  equals the difference between the value of the school district 
 12.12  at or immediately above the fifth percentile of adjusted general 
 12.13  revenue per marginal cost pupil unit and the value of the school 
 12.14  district at or immediately above the 90th percentile of adjusted 
 12.15  general revenue per adjusted marginal cost pupil unit. 
 12.16     <b>EFFECTIVE DATE:</b>  This section is effective for revenue in 
 12.17  fiscal year 2000. 
 12.18     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 12.19  126C.10, subdivision 26, is amended to read: 
 12.20     Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
 12.21  equals the greater of zero or the difference between the 
 12.22  district's adjusted general revenue and the value of the school 
 12.23  district at or immediately above the regional 90th percentile of 
 12.24  adjusted general revenue per adjusted marginal cost pupil unit. 
 12.25     <b>EFFECTIVE DATE:</b>  This section is effective for revenue in 
 12.26  fiscal year 2000. 
 12.27     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
 12.28  126C.17, subdivision 9, is amended to read: 
 12.29     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 12.30  by section 126C.10, subdivision 1, may be increased in the 
 12.31  amount approved by the voters of the district at a referendum 
 12.32  called for the purpose.  The referendum may be called by the 
 12.33  board or shall be called by the board upon written petition of 
 12.34  qualified voters of the district.  The referendum must be 
 12.35  conducted one or two calendar years before the increased levy 
 12.36  authority, if approved, first becomes payable.  Only one 
 13.1   election to approve an increase may be held in a calendar year.  
 13.2   Unless the referendum is conducted by mail under paragraph (g), 
 13.3   the referendum must be held on the first Tuesday after the first 
 13.4   Monday in November.  The ballot must state the maximum amount of 
 13.5   the increased revenue per resident marginal cost pupil unit, the 
 13.6   estimated referendum tax rate as a percentage of referendum 
 13.7   market value in the first year it is to be levied, and that the 
 13.8   revenue must be used to finance school operations.  The ballot 
 13.9   may state a schedule, determined by the board, of increased 
 13.10  revenue per resident marginal cost pupil ~~units~~ unit that differs 
 13.11  from year to year over the number of years for which the 
 13.12  increased revenue is authorized.  If the ballot contains a 
 13.13  schedule showing different amounts, it must also indicate the 
 13.14  estimated referendum tax rate as a percent of referendum market 
 13.15  value for the amount specified for the first year and for the 
 13.16  maximum amount specified in the schedule.  The ballot may state 
 13.17  that existing referendum levy authority is expiring.  In this 
 13.18  case, the ballot may also compare the proposed levy authority to 
 13.19  the existing expiring levy authority, and express the proposed 
 13.20  increase as the amount, if any, over the expiring referendum 
 13.21  levy authority.  The ballot must designate the specific number 
 13.22  of years, not to exceed ten, for which the referendum 
 13.23  authorization applies.  The notice required under section 275.60 
 13.24  may be modified to read, in cases of renewing existing levies: 
 13.25     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 13.26     FOR A PROPERTY TAX INCREASE." 
 13.27     The ballot may contain a textual portion with the 
 13.28  information required in this subdivision and a question stating 
 13.29  substantially the following:  
 13.30     "Shall the increase in the revenue proposed by (petition 
 13.31  to) the board of ........., School District No. .., be approved?"
 13.32     If approved, an amount equal to the approved revenue per 
 13.33  resident marginal cost pupil unit times the resident marginal 
 13.34  cost pupil units for the school year beginning in the year after 
 13.35  the levy is certified shall be authorized for certification for 
 13.36  the number of years approved, if applicable, or until revoked or 
 14.1   reduced by the voters of the district at a subsequent referendum.
 14.2      (b) The board must prepare and deliver by first class mail 
 14.3   at least 15 days but no more than 30 days before the day of the 
 14.4   referendum to each taxpayer a notice of the referendum and the 
 14.5   proposed revenue increase.  The board need not mail more than 
 14.6   one notice to any taxpayer.  For the purpose of giving mailed 
 14.7   notice under this subdivision, owners must be those shown to be 
 14.8   owners on the records of the county auditor or, in any county 
 14.9   where tax statements are mailed by the county treasurer, on the 
 14.10  records of the county treasurer.  Every property owner whose 
 14.11  name does not appear on the records of the county auditor or the 
 14.12  county treasurer is deemed to have waived this mailed notice 
 14.13  unless the owner has requested in writing that the county 
 14.14  auditor or county treasurer, as the case may be, include the 
 14.15  name on the records for this purpose.  The notice must project 
 14.16  the anticipated amount of tax increase in annual dollars and 
 14.17  annual percentage for typical residential homesteads, 
 14.18  agricultural homesteads, apartments, and commercial-industrial 
 14.19  property within the school district. 
 14.20     The notice for a referendum may state that an existing 
 14.21  referendum levy is expiring and project the anticipated amount 
 14.22  of increase over the existing referendum levy in the first year, 
 14.23  if any, in annual dollars and annual percentage for typical 
 14.24  residential homesteads, agricultural homesteads, apartments, and 
 14.25  commercial-industrial property within the district. 
 14.26     The notice must include the following statement:  "Passage 
 14.27  of this referendum will result in an increase in your property 
 14.28  taxes."  However, in cases of renewing existing levies, the 
 14.29  notice may include the following statement:  "Passage of this 
 14.30  referendum may result in an increase in your property taxes." 
 14.31     (c) A referendum on the question of revoking or reducing 
 14.32  the increased revenue amount authorized pursuant to paragraph 
 14.33  (a) may be called by the board and shall be called by the board 
 14.34  upon the written petition of qualified voters of the district.  
 14.35  A referendum to revoke or reduce the levy amount must be based 
 14.36  upon the dollar amount, local tax rate, or amount per resident 
 15.1   marginal cost pupil unit, that was stated to be the basis for 
 15.2   the initial authorization.  Revenue approved by the voters of 
 15.3   the district pursuant to paragraph (a) must be received at least 
 15.4   once before it is subject to a referendum on its revocation or 
 15.5   reduction for subsequent years.  Only one revocation or 
 15.6   reduction referendum may be held to revoke or reduce referendum 
 15.7   revenue for any specific year and for years thereafter. 
 15.8      (d) A petition authorized by paragraph (a) or (c) is 
 15.9   effective if signed by a number of qualified voters in excess of 
 15.10  15 percent of the registered voters of the district on the day 
 15.11  the petition is filed with the board.  A referendum invoked by 
 15.12  petition must be held on the date specified in paragraph (a). 
 15.13     (e) The approval of 50 percent plus one of those voting on 
 15.14  the question is required to pass a referendum authorized by this 
 15.15  subdivision. 
 15.16     (f) At least 15 days before the day of the referendum, the 
 15.17  district must submit a copy of the notice required under 
 15.18  paragraph (b) to the commissioner and to the county auditor of 
 15.19  each county in which the district is located.  Within 15 days 
 15.20  after the results of the referendum have been certified by the 
 15.21  board, or in the case of a recount, the certification of the 
 15.22  results of the recount by the canvassing board, the district 
 15.23  must notify the commissioner of the results of the referendum. 
 15.24     (g) Except for a referendum held under subdivision 11, any 
 15.25  referendum under this section held on a day other than the first 
 15.26  Tuesday after the first Monday in November must be conducted by 
 15.27  mail in accordance with section 204B.46.  Notwithstanding 
 15.28  paragraph (b) to the contrary, in the case of a referendum 
 15.29  conducted by mail under this paragraph, the notice required by 
 15.30  paragraph (b) must be prepared and delivered by first class mail 
 15.31  at least 20 days before the referendum. 
 15.32     Sec. 22.  [126C.37.] [SECONDARY VOCATIONAL REVENUE 
 15.33  RESERVE.] 
 15.34     Subdivision 1.  [RESERVE REVENUE.] For fiscal year 2001 and 
 15.35  later, a district must reserve an amount equal to the number of 
 15.36  adjusted marginal cost pupil units times the amount of secondary 
 16.1   vocational aid, according to section 124D.453, paid to the 
 16.2   district in fiscal year 2000, divided by the district's adjusted 
 16.3   marginal cost pupil units for fiscal year 2000.  A school board 
 16.4   may vote to not reserve secondary vocational aid as determined 
 16.5   by this section. 
 16.6      Subd. 2.  [REVENUE USE.] Revenue must be used for: 
 16.7      (1) salaries paid to essential, licensed personnel 
 16.8   providing direct instructional services to students in that 
 16.9   fiscal year for services rendered in the district's approved 
 16.10  career and technical education programs; 
 16.11     (2) contracted services provided by a public or private 
 16.12  agency other than a Minnesota school district or cooperative 
 16.13  center; 
 16.14     (3) necessary travel between instructional sites by 
 16.15  licensed career and technical education personnel; 
 16.16     (4) necessary travel by licensed career and technical 
 16.17  education personnel for vocational student organization 
 16.18  activities held within the state for instructional purposes; 
 16.19     (5) curriculum development activities that are part of a 
 16.20  five-year plan for improvement based on program assessment; 
 16.21     (6) necessary travel by licensed career and technical 
 16.22  education personnel for noncollegiate credit bearing 
 16.23  professional development; or 
 16.24     (7) specialized vocational instructional supplies and 
 16.25  equipment. 
 16.26     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 16.27  127A.45, subdivision 12a, is amended to read: 
 16.28     Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 
 16.29  percent of the state aid in fiscal year 1999, and 31 percent of 
 16.30  the state aid in fiscal years 2000 and later received under 
 16.31  section 124D.86 must be paid by the state to the recipient 
 16.32  school district on July 15 of that year.  The recipient school 
 16.33  district must recognize this aid in the same fiscal year as the 
 16.34  levy is recognized. 
 16.35     (b) One hundred percent of the state aid in fiscal years 
 16.36  2003 and later received under section 124D.87 must be paid by 
 17.1   the state to the recipient school district on August 30 of that 
 17.2   year.  The recipient school district must recognize this aid in 
 17.3   the previous fiscal year. 
 17.4      Sec. 24.  Minnesota Statutes 1999 Supplement, section 
 17.5   127A.51, is amended to read: 
 17.6      127A.51 [STATEWIDE AVERAGE REVENUE.] 
 17.7      By October 1 of each year the commissioner must estimate 
 17.8   the statewide average adjusted general revenue per adjusted 
 17.9   marginal cost pupil unit and the disparity in adjusted general 
 17.10  revenue among pupils and districts by computing the ratio of the 
 17.11  ninety-fifth percentile to the fifth percentile of adjusted 
 17.12  general revenue.  The commissioner must provide that information 
 17.13  to all districts. 
 17.14     If the disparity in adjusted general revenue as measured by 
 17.15  the ratio of the ninety-fifth percentile to the fifth percentile 
 17.16  increases in any year, the commissioner shall recommend to the 
 17.17  legislature options for change in the general education formula 
 17.18  that will limit the disparity in adjusted general revenue to no 
 17.19  more than the disparity for the previous school year.  The 
 17.20  commissioner must submit the recommended options to the 
 17.21  education committees of the legislature by January 15. 
 17.22     For purposes of this section and section 126C.10, adjusted 
 17.23  general revenue means the sum of basic revenue under section 
 17.24  126C.10, subdivision 2; supplemental revenue under section 
 17.25  126C.10, subdivisions 9 and 12; transition revenue under section 
 17.26  126C.10, subdivision 20; and referendum revenue under section 
 17.27  126C.17. 
 17.28     Sec. 25.  Minnesota Statutes 1998, section 128D.11, 
 17.29  subdivision 3, is amended to read: 
 17.30     Subd. 3.  [NO ELECTION.] Subject to the provisions of 
 17.31  subdivisions 7 to 10, the school district may also by a 
 17.32  two-thirds majority vote of all the members of its board of 
 17.33  education and without any election by the voters of the 
 17.34  district, issue and sell in each calendar year general 
 17.35  obligation bonds of the district in an amount not to exceed 
 17.36  5-1/10 per cent of the net tax capacity of the taxable property 
 18.1   in the district (plus, for calendar years 1990 to ~~2003~~ 2008, an 
 18.2   amount not to exceed ~~$7,500,000~~ $15,000,000; with an additional 
 18.3   provision that any amount of bonds so authorized for sale in a 
 18.4   specific year and not sold can be carried forward and sold in 
 18.5   the year immediately following).  
 18.6      Sec. 26.  Laws 1992, chapter 499, article 7, section 32, is 
 18.7   amended to read: 
 18.8      Sec. 32.  [EFFECTIVE DATE.] 
 18.9      Sections 1, 9, 14, 18, 19, 20, 21, 22, 23, and 30 are 
 18.10  effective the day following final enactment.  Sections 4 to 8 
 18.11  are effective for revenue for fiscal year ~~2000~~ 2002. 
 18.12     Sec. 27.  Laws 1992, chapter 499, article 7, section 31, as 
 18.13  amended by Laws 1998, chapter 398, article 1, section 39, and 
 18.14  Laws 1999, chapter 241, article 1, section 31, is amended to 
 18.15  read: 
 18.16     Sec. 31.  [REPEALER.] 
 18.17     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 18.18  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 18.19  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 18.20  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 18.21  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 18.22  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 18.23  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 18.24  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 18.25  ~~2001~~ 2004; Laws 1991, chapter 265, article 7, section 35, is 
 18.26  repealed. 
 18.27     Sec. 28.  Laws 1999, chapter 241, article 1, section 68, 
 18.28  subdivision 2, is amended to read: 
 18.29     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 18.30  general and supplemental education aid:  
 18.31   ~~$3,062,321,000~~ $3,066,166,000    .....     2000
 18.32   ~~$3,160,518,000~~ $3,261,304,000    .....     2001
 18.33     The 2000 appropriation includes $272,186,000 for 1999 and 
 18.34  ~~$2,790,135,000~~ $2,793,980,000 for 2000.  
 18.35     The 2001 appropriation includes ~~$310,015,000~~ $310,442,000 
 18.36  for 2000 and ~~$2,850,503,000~~ $2,950,862,000 for 2001.  
 19.1      Sec. 29.  Laws 1999, chapter 241, article 1, section 68, 
 19.2   subdivision 4, is amended to read: 
 19.3      Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 19.4   transportation of pupils attending post-secondary institutions 
 19.5   according to Minnesota Statutes, section 124D.09, or for 
 19.6   transportation of pupils attending nonresident districts 
 19.7   according to Minnesota Statutes, section 124D.03: 
 19.8        ~~$102,000~~ $70,000      .....     2000
 19.9        ~~$102,000~~ $70,000      .....     2001
 19.10     Any balance in the first year does not cancel but is 
 19.11  available in the second year. 
 19.12     Sec. 30.  Laws 1999, chapter 241, article 1, section 68, 
 19.13  subdivision 5, is amended to read: 
 19.14     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 19.15  cooperation revenue aid: 
 19.16       ~~$5,940,000~~ $5,881,000    .....     2000
 19.17       ~~$  563,000~~ $  556,000    .....     2001
 19.18     The 2000 appropriation includes $869,000 for 1999 and 
 19.19  ~~$5,071,000~~ $5,012,000 for 2000. 
 19.20     The 2001 appropriation includes ~~$563,000~~ $556,000 for 2000 
 19.21  and $0 for 2001. 
 19.22     Sec. 31.  [FISCAL YEARS 2003 TO 2007 AIRPORT RUNWAY IMPACT 
 19.23  PUPIL UNIT AID; RICHFIELD.] 
 19.24     Subdivision 1.  [AIRPORT IMPACT ZONE PUPIL UNITS, 
 19.25  DEFINITION.] For the purposes of this section, "airport impact 
 19.26  zone pupil units" means the number of pupil units, according to 
 19.27  Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 
 19.28  1, in school year 1998-1999 that were attributable to the 
 19.29  airport impact zone, as defined in Laws 1999, chapter 243, 
 19.30  article 16, section 35, subdivision 1. 
 19.31     Subd. 2.  [FISCAL YEAR 2003.] For fiscal year 2003 only, 
 19.32  independent school district No. 280, Richfield, is eligible for 
 19.33  declining pupil unit aid equal to the product of 70 percent of 
 19.34  the airport impact zone pupil units times the general education 
 19.35  formula allowance for fiscal year 2003. 
 19.36     Subd. 3.  [FISCAL YEAR 2004.] For fiscal year 2004 only, 
 20.1   independent school district No. 280, Richfield, is eligible for 
 20.2   declining pupil unit aid equal to the product of 70 percent of 
 20.3   the airport impact zone pupil units times the general education 
 20.4   formula allowance for fiscal year 2004. 
 20.5      Subd. 4.  [FISCAL YEAR 2005.] For fiscal year 2005 only, 
 20.6   independent school district No. 280, Richfield, is eligible for 
 20.7   declining pupil unit aid equal to the product of 52.5 percent of 
 20.8   the airport impact zone pupil units times the general education 
 20.9   formula allowance for fiscal year 2005. 
 20.10     Subd. 5.  [FISCAL YEAR 2006.] For fiscal year 2006 only, 
 20.11  independent school district No. 280, Richfield, is eligible for 
 20.12  declining pupil unit aid equal to the product of 35 percent of 
 20.13  the airport impact zone pupil units times the general education 
 20.14  formula allowance for fiscal year 2006. 
 20.15     Subd. 6.  [FISCAL YEAR 2007.] For fiscal year 2007 only, 
 20.16  independent school district No. 280, Richfield, is eligible for 
 20.17  declining pupil unit aid equal to the product of 17.5 percent of 
 20.18  the airport impact zone pupil units times the general education 
 20.19  formula allowance for fiscal year 2007. 
 20.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 20.21  following final enactment. 
 20.22     Sec. 32.  [LEVY RECOGNITION FOR INTEGRATION LEVY 
 20.23  ADJUSTMENT.] 
 20.24     Notwithstanding Minnesota Statutes, section 123B.75, 
 20.25  subdivision 5, the full amount of integration levy for taxes 
 20.26  payable in 2001, attributable to fiscal year 2001, for school 
 20.27  districts receiving revenue under Minnesota Statutes, section 
 20.28  124D.86, subdivision 3, clause (4), shall be recognized in 
 20.29  fiscal year 2001. 
 20.30     Sec. 33.  [DIRECTION TO THE DEPARTMENT.] 
 20.31     For the purposes of providing aid to independent school 
 20.32  district No. 508, St. Peter, under Laws 1999, chapter 241, 
 20.33  article 4, section 22, the department of children, families, and 
 20.34  learning shall make appropriate weighting adjustments to fiscal 
 20.35  year 1997 pupil units to reflect the impact of Minnesota 
 20.36  Statutes, section 126C.05, subdivision 5, paragraph (b), and 
 21.1   subdivision 6, paragraph (b). 
 21.2      Sec. 34.  [SPARSITY CORRECTION REVENUE.] 
 21.3      Subdivision 1.  [QUALIFICATION FOR REVENUE.] A school 
 21.4   district qualifies for sparsity correction revenue if it 
 21.5   qualifies for sparsity revenue, according to Minnesota Statutes, 
 21.6   section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 
 21.7   2001 and the amount of sparsity revenue it received in those 
 21.8   years is less than the amount it would have received in fiscal 
 21.9   year 2000 or 2001 prior to the passage of Laws 1999, chapter 
 21.10  241, article 1, sections 18 and 19. 
 21.11     Subd. 2.  [FISCAL YEAR 2000 CALCULATION.] For fiscal year 
 21.12  2000, a school district's sparsity correction revenue equals the 
 21.13  difference between sparsity revenue in fiscal year 2000 
 21.14  calculated according to Laws 1999, chapter 241, article 1, 
 21.15  sections 18 and 19, and the sparsity revenue the district would 
 21.16  have received for fiscal year 2000 had these sections of law not 
 21.17  been approved. 
 21.18     Subd. 3.  [FISCAL YEAR 2001 CALCULATION.] For fiscal year 
 21.19  2001, a school district's sparsity correction revenue equals .5 
 21.20  times the difference between sparsity revenue in fiscal year 
 21.21  2001 calculated according to Laws 1999, chapter 241, article 1, 
 21.22  sections 18 and 19, and the sparsity revenue the district would 
 21.23  have received for fiscal year 2001 had these sections of law not 
 21.24  been approved. 
 21.25     Sec. 35.  [MARGINAL COST IMPACT AID.] 
 21.26     School districts that have fewer marginal cost pupil units 
 21.27  as a result of the changes to Minnesota Statutes, section 
 21.28  126C.05, subdivisions 5 and 6, in this bill are eligible for 
 21.29  marginal cost impact revenue.  For fiscal year 2001 only, the 
 21.30  marginal cost impact aid for an eligible district equals the 
 21.31  difference between the general education and referendum revenue 
 21.32  the district would have received based on the marginal cost 
 21.33  pupil units defined in Minnesota Statutes 1999 Supplement, 
 21.34  section 126C.05, subdivisions 5 and 6, and the marginal cost 
 21.35  pupil units computed according to sections 12 and 13. 
 21.36     Sec. 36.  [SEVERANCE LEVY; MESABI EAST.] 
 22.1      Independent school district No. 2711, Mesabi East, may levy 
 22.2   an amount up to $250,000 each year for a period of five years 
 22.3   for severance and early retirement incentives for licensed 
 22.4   employees who have retired early as a result of the district's 
 22.5   combination that was effective July 1, 1991. 
 22.6      <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 22.7   payable in 2001 and later years. 
 22.8      Sec. 37.  [METRO EQUITY AID.] 
 22.9      (a) For fiscal year 2001 only, a district that is located 
 22.10  in the metro equity district according to Minnesota Statutes, 
 22.11  section 126C.10, subdivision 28, and qualifies for equity 
 22.12  revenue under Minnesota Statutes, section 126C.10, subdivision 
 22.13  10, shall receive $40 times the district equity index under 
 22.14  Minnesota Statutes, section 126C.10, subdivision 27, times its 
 22.15  adjusted marginal cost pupil units. 
 22.16     (b) For fiscal year 2001 only, a school district that is 
 22.17  located in a city of the first class and is outside the 
 22.18  seven-county metropolitan area and has an adjusted net tax 
 22.19  capacity of less than $100,000,000 is eligible for metro equity 
 22.20  aid equal to $40 times its district equity index, under 
 22.21  Minnesota Statutes, section 126C.10, subdivision 27, times its 
 22.22  adjusted marginal cost pupil units.  The district's equity index 
 22.23  shall be computed as if it were eligible for equity revenue 
 22.24  under Minnesota Statutes, section 126C.10, subdivision 24. 
 22.25     Sec. 38.  [APPROPRIATIONS.] 
 22.26     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 22.27  LEARNING.] The sums indicated in this section are appropriated 
 22.28  from the general fund to the department of children, families, 
 22.29  and learning for the fiscal years designated. 
 22.30     Subd. 2.  [MARGINAL COST IMPACT AID.] For marginal cost 
 22.31  impact aid: 
 22.32       $4,025,000     .....     2001
 22.33     Subd. 3.  [SPARSITY CORRECTION REVENUE.] For sparsity 
 22.34  correction revenue: 
 22.35       $1,030,000     .....     2000
 22.36       $  515,000     .....     2001
 23.1      Subd. 4.  [METRO EQUITY AID.] For metro equity aid: 
 23.2        $9,566,000     .....     2001
 23.3                              ARTICLE 2 
 23.4                           SPECIAL PROGRAMS 
 23.5      Section 1.  Minnesota Statutes 1999 Supplement, section 
 23.6   122A.31, subdivision 1, is amended to read: 
 23.7      Subdivision 1.  [REQUIREMENTS FOR AMERICAN SIGN 
 23.8   LANGUAGE/ENGLISH INTERPRETERS.] In addition to any other 
 23.9   requirements that a school district establishes, any person 
 23.10  employed to provide American sign language/English interpreting 
 23.11  or sign transliterating services on a full-time or part-time 
 23.12  basis for a school district after July 1, ~~2000~~ 2001, must: 
 23.13     (1) hold current interpreter and transliterator 
 23.14  certificates awarded by the Registry of Interpreters for the 
 23.15  Deaf (RID), or the general level interpreter proficiency 
 23.16  certificate awarded by the National Association of the Deaf, or 
 23.17  a comparable state certification from the commissioner of 
 23.18  children, families, and learning; and 
 23.19     (2) satisfactorily complete an interpreter/transliterator 
 23.20  training program affiliated with an accredited educational 
 23.21  institution. 
 23.22     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 23.23  122A.31, subdivision 2, is amended to read: 
 23.24     Subd. 2.  [ORAL OR CUED SPEECH TRANSLITERATORS.] In 
 23.25  addition to any other requirements that a school district 
 23.26  establishes, any person employed to provide oral transliterating 
 23.27  or cued speech transliterating services on a full-time or 
 23.28  part-time basis for a school district after July 1, ~~2000~~ 2001, 
 23.29  must hold a current applicable transliterator certificate 
 23.30  awarded by the national certifying association or comparable 
 23.31  state certification from the commissioner of children, families, 
 23.32  and learning. 
 23.33     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 23.34  123A.05, subdivision 2, is amended to read: 
 23.35     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
 23.36  of an area learning center must reserve revenue in an amount 
 24.1   equal to at least 90 percent of the district average general 
 24.2   education revenue per pupil unit, or for a private area learning 
 24.3   center that provides chemical treatment services to students, 
 24.4   the district must reserve 100 percent of the district average 
 24.5   general education revenue per pupil unit, minus an amount equal 
 24.6   to the product of the formula allowance according to section 
 24.7   126C.10, subdivision 2, times .0485, calculated without basic 
 24.8   skills revenue, transportation sparsity revenue, and the 
 24.9   transportation portion of the transition revenue adjustment, 
 24.10  times the number of pupil units attending an area learning 
 24.11  center program under this section.  The amount of reserved 
 24.12  revenue under this subdivision may only be spent on program 
 24.13  costs associated with the area learning center.  Compensatory 
 24.14  revenue must be allocated according to section 126C.15, 
 24.15  subdivision 2. 
 24.16     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 24.17  124D.68, subdivision 9, is amended to read: 
 24.18     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 24.19  attending an eligible program full time under subdivision 3, 
 24.20  paragraph (d), the department must pay 90 percent of the 
 24.21  district's average general education revenue less basic skills 
 24.22  revenue to the eligible program and ten percent of the 
 24.23  district's average general education revenue less basic skills 
 24.24  revenue to the resident district within 30 days after the 
 24.25  eligible program verifies enrollment using the form provided by 
 24.26  the department.  For a pupil attending a private area learning 
 24.27  center that provides chemical treatment services to students, 
 24.28  the department must pay 100 percent of the district's general 
 24.29  education revenue less basic skills revenue to the eligible 
 24.30  program.  For a pupil attending an eligible program part time, 
 24.31  revenue shall be reduced proportionately, according to the 
 24.32  amount of time the pupil attends the program, and the payments 
 24.33  to the eligible program and the resident district shall be 
 24.34  reduced accordingly.  A pupil for whom payment is made according 
 24.35  to this section may not be counted by any district for any 
 24.36  purpose other than computation of general education revenue.  If 
 25.1   payment is made for a pupil under this subdivision, a district 
 25.2   shall not reimburse a program under section 124D.69 for the same 
 25.3   pupil.  Basic skills revenue shall be paid according to section 
 25.4   126C.10, subdivision 4. 
 25.5      (b) The department must pay up to 100 percent of the 
 25.6   revenue to the eligible program if there is an agreement to that 
 25.7   effect between the school district and the eligible program. 
 25.8      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 25.9   124D.84, subdivision 1, is amended to read: 
 25.10     Subdivision 1.  [AWARDS.] The commissioner, with the advice 
 25.11  and counsel of the Minnesota Indian scholarship committee, may 
 25.12  award scholarships to any Minnesota resident student who is of 
 25.13  one-fourth or more Indian ancestry, who has applied for other 
 25.14  existing state and federal scholarship and grant programs, and 
 25.15  who, in the opinion of the commissioner, has the capabilities to 
 25.16  benefit from further education.  Scholarships must be 
 25.17  for ~~advanced or specialized education~~ accredited degree programs 
 25.18  in accredited colleges or universities or for courses in 
 25.19  accredited ~~or approved colleges or in~~ business, technical or 
 25.20  vocational schools.  Scholarships shall be used to defray the 
 25.21  total cost of education including tuition, incidental fees, 
 25.22  books, supplies, transportation, other related school costs and 
 25.23  the cost of board and room and shall be paid directly to the 
 25.24  college or school concerned.  The total cost of education 
 25.25  includes all tuition and fees for each student enrolling in a 
 25.26  public institution and the portion of tuition and fees for each 
 25.27  student enrolling in a private institution that does not exceed 
 25.28  the tuition and fees at a comparable public institution.  Each 
 25.29  student shall be awarded a scholarship based on the total cost 
 25.30  of the student's education and a standardized need analysis.  
 25.31  The amount and type of each scholarship shall be determined 
 25.32  through the advice and counsel of the Minnesota Indian 
 25.33  scholarship committee.  
 25.34     When an Indian student satisfactorily completes the work 
 25.35  required by a certain college or school in a school year the 
 25.36  student is eligible for additional scholarships, if additional 
 26.1   training is necessary to reach the student's educational and 
 26.2   vocational objective.  Scholarships may not be given to any 
 26.3   Indian student for more than five years of study without special 
 26.4   approval of the Minnesota Indian scholarship committee.  
 26.5      Sec. 6.  Minnesota Statutes 1999 Supplement, section 
 26.6   124D.88, subdivision 3, is amended to read: 
 26.7      Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
 26.8   school districts that meets the criteria required under 
 26.9   paragraph (b)(1) may apply for a magnet school grant in an 
 26.10  amount not to exceed ~~$20,800,000 for~~ the approved costs or 
 26.11  expansion of a magnet school facility. 
 26.12     (b)(1) Any group of districts that submits an application 
 26.13  for a grant shall submit a proposal to the commissioner for 
 26.14  review and comment under section 123B.71, and the commissioner 
 26.15  shall prepare a review and comment on the proposed magnet school 
 26.16  facility, regardless of the amount of the capital expenditure 
 26.17  required to design, acquire, construct, remodel, improve, 
 26.18  furnish, or equip the facility.  The commissioner must not 
 26.19  approve an application for a magnet school grant for any 
 26.20  facility unless the facility receives a favorable review and 
 26.21  comment under section 123B.71 and the participating districts: 
 26.22     (i) establish a joint powers board under section 471.59 to 
 26.23  represent all participating districts and govern the magnet 
 26.24  school facility; 
 26.25     (ii) design the planned magnet school facility to meet the 
 26.26  applicable requirements contained in Minnesota Rules, chapter 
 26.27  3535; 
 26.28     (iii) submit a statement of need, including reasons why the 
 26.29  magnet school will facilitate integration and improve learning; 
 26.30     (iv) prepare an educational plan that includes input from 
 26.31  both community and professional staff; and 
 26.32     (v) develop an education program that will improve learning 
 26.33  opportunities for students attending the magnet school. 
 26.34     (2) The districts may develop a plan that permits social 
 26.35  service, health, and other programs serving students and 
 26.36  community residents to be located within the magnet school 
 27.1   facility.  The commissioner shall consider this plan when 
 27.2   preparing a review and comment on the proposed facility.  
 27.3      (c) When two or more districts enter into an agreement 
 27.4   establishing a joint powers board to govern the magnet school 
 27.5   facility, all member districts shall have the same powers.  
 27.6      (d) A joint powers board of participating school districts 
 27.7   established under paragraphs (b) and (c) that intends to apply 
 27.8   for a grant must adopt a resolution stating the costs of the 
 27.9   proposed project, the purpose for which the debt is to be 
 27.10  incurred, and an estimate of the dates when the contracts for 
 27.11  the proposed project will be completed.  A copy of the 
 27.12  resolution must accompany any application for a state grant 
 27.13  under this section. 
 27.14     (e)(1) The commissioner shall examine and consider all 
 27.15  grant applications.  If the commissioner finds that any joint 
 27.16  powers district is not a qualified grant applicant, the 
 27.17  commissioner shall promptly notify that joint powers board.  The 
 27.18  commissioner shall make awards to no more than two qualified 
 27.19  applicants whose applications have been on file with the 
 27.20  commissioner more than 30 days.  
 27.21     (2) A grant award is subject to verification by the joint 
 27.22  powers board under paragraph (f).  A grant award must not be 
 27.23  made until the participating districts determine the site of the 
 27.24  magnet school facility.  If the total amount of the approved 
 27.25  applications exceeds the amount of grant funding that is or can 
 27.26  be made available, the commissioner shall allot the available 
 27.27  amount equally between the approved applicant districts.  The 
 27.28  commissioner shall promptly certify to each qualified joint 
 27.29  powers board the amount, if any, of the grant awarded to it. 
 27.30     (f) Each grant must be evidenced by a contract between the 
 27.31  joint powers board and the state acting through the 
 27.32  commissioner.  The contract obligates the state to pay to the 
 27.33  joint powers board an amount computed according to paragraph 
 27.34  (e)(2) and a schedule, and terms and conditions acceptable to 
 27.35  the commissioner of finance. 
 27.36     (g) Notwithstanding the provisions of section 123B.02, 
 28.1   subdivision 3, the joint powers and its individual members may 
 28.2   enter into long-term lease agreements as part of the magnet 
 28.3   school program.  
 28.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 28.5   following final enactment. 
 28.6      Sec. 7.  Minnesota Statutes 1998, section 124D.88, is 
 28.7   amended by adding a subdivision to read: 
 28.8      Subd. 4.  [START-UP COSTS.] During the first two years of a 
 28.9   metropolitan magnet school's operation, the school is eligible 
 28.10  for aid to pay for start-up costs and additional operating 
 28.11  costs.  Start-up cost aid equals $500 times the magnet school's 
 28.12  pupil units served for that year. 
 28.13     Sec. 8.  Minnesota Statutes 1998, section 124D.892, 
 28.14  subdivision 3, is amended to read: 
 28.15     Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
 28.16  establish an advisory board composed of: 
 28.17     (1) ~~eight~~ nine superintendents, ~~each of whom~~ eight shall be 
 28.18  selected by the superintendents of the school districts located 
 28.19  in whole or in part within each of the eight metropolitan 
 28.20  districts established under section 473.123, subdivision 3c, and 
 28.21  one superintendent of a district outside the seven-county 
 28.22  metropolitan area and is from a district that is considered 
 28.23  racially isolated or has a racially isolated school site 
 28.24  according to Minnesota Rules, part 3535.0110; ~~and~~ 
 28.25     (2) one person each selected by the Indian affairs council, 
 28.26  the council on Asian-Pacific Minnesotans, the council on Black 
 28.27  Minnesotans, and the council on affairs of Chicano/Latino 
 28.28  people; and 
 28.29     (3) the superintendent of independent school district No. 
 28.30  709, Duluth. 
 28.31     The advisory board shall advise the office on complying 
 28.32  with the requirements under subdivision 1.  The advisory board 
 28.33  may solicit comments from teachers, parents, students, and 
 28.34  interested community organizations and others. 
 28.35     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 28.36  125A.027, subdivision 3, is amended to read: 
 29.1      Subd. 3.  [IMPLEMENTATION TIMELINE.] By July 1, 2000, the 
 29.2   individual interagency intervention plan must be available and 
 29.3   by January 1, 2001, all governing boards of interagency early 
 29.4   intervention committees statewide must implement a coordinated 
 29.5   service system for children up to age five with disabilities 
 29.6   consistent with the requirements of this section and section 
 29.7   125A.023 and the evaluation results from the demonstration 
 29.8   projects under section 125A.023, subdivision 5.  Children with 
 29.9   disabilities up to the age of 21 shall be eligible for 
 29.10  coordinated services and their eligibility to receive such 
 29.11  services under this section shall be phased in over a four-year 
 29.12  period as follows: 
 29.13     (1) July 1, 2001, children up to age nine become eligible; 
 29.14     (2) July 1, 2002, children up to age 14 become eligible; 
 29.15  and 
 29.16     (3) July 1, 2003, children up to age 21 become eligible. 
 29.17     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 29.18  125A.51, is amended to read: 
 29.19     125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 29.20  EDUCATION AND TRANSPORTATION.] 
 29.21     The responsibility for providing instruction and 
 29.22  transportation for a pupil without a disability who has a 
 29.23  short-term or temporary physical or emotional illness or 
 29.24  disability, as determined by the standards of the commissioner, 
 29.25  and who is temporarily placed for care and treatment for that 
 29.26  illness or disability, must be determined as provided in this 
 29.27  section.  
 29.28     (a) The school district of residence of the pupil is the 
 29.29  district in which the pupil's parent or guardian resides. 
 29.30     (b) When parental rights have been terminated by court 
 29.31  order, the legal residence of a child placed in a residential or 
 29.32  foster facility for care and treatment is the district in which 
 29.33  the child resides ~~when parental rights have been terminated~~. 
 29.34     (c) Before the placement of a pupil for care and treatment, 
 29.35  the district of residence must be notified and provided an 
 29.36  opportunity to participate in the placement decision.  When an 
 30.1   immediate emergency placement is necessary and time does not 
 30.2   permit resident district participation in the placement 
 30.3   decision, the district in which the pupil is temporarily placed, 
 30.4   if different from the district of residence, must notify the 
 30.5   district of residence of the emergency placement within 15 days 
 30.6   of the placement.  
 30.7      (d) When a pupil without a disability is temporarily placed 
 30.8   for care and treatment in a day program and the pupil continues 
 30.9   to live within the district of residence during the care and 
 30.10  treatment, the district of residence must provide instruction 
 30.11  and necessary transportation to and from the treatment facility 
 30.12  for the pupil.  Transportation shall only be provided by the 
 30.13  district during regular operating hours of the district.  The 
 30.14  district may provide the instruction at a school within the 
 30.15  district of residence, at the pupil's residence, or in the case 
 30.16  of a placement outside of the resident district, in the district 
 30.17  in which the day treatment program is located by paying tuition 
 30.18  to that district.  The district of placement may contract with a 
 30.19  facility to provide instruction by teachers licensed by the 
 30.20  state board of teaching.  
 30.21     (e) When a pupil without a disability is temporarily placed 
 30.22  in a residential program for care and treatment, the district in 
 30.23  which the pupil is placed must provide instruction for the pupil 
 30.24  and necessary transportation while the pupil is receiving 
 30.25  instruction, and in the case of a placement outside of the 
 30.26  district of residence, the nonresident district must bill the 
 30.27  district of residence for the actual cost of providing the 
 30.28  instruction for the regular school year and for summer school, 
 30.29  excluding transportation costs.  When a pupil without a 
 30.30  disability is temporarily placed in a residential program 
 30.31  outside the district of residence, the administrator of the 
 30.32  court placing the pupil must send timely written notice of the 
 30.33  placement to the district of residence.  The district of 
 30.34  placement may contract with a residential facility to provide 
 30.35  instruction by teachers licensed by the state board of teaching. 
 30.36  For purposes of this section, the state correctional facilities 
 31.1   operated on a fee-for-service basis are considered to be 
 31.2   residential programs for care and treatment. 
 31.3      (f) The district of residence must include the pupil in its 
 31.4   residence count of pupil units and pay tuition as provided in 
 31.5   section 123A.488 to the district providing the instruction.  
 31.6   Transportation costs must be paid by the district providing the 
 31.7   transportation and the state must pay transportation aid to that 
 31.8   district.  For purposes of computing state transportation aid, 
 31.9   pupils governed by this subdivision must be included in the 
 31.10  disabled transportation category.  
 31.11     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 31.12  125A.76, subdivision 1, is amended to read: 
 31.13     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 31.14  section, the definitions in this subdivision apply. 
 31.15     (a) "Base year" for fiscal year 1998 and later fiscal years 
 31.16  means the second fiscal year preceding the fiscal year for which 
 31.17  aid will be paid. 
 31.18     (b) "Basic revenue" has the meaning given it in section 
 31.19  126C.10, subdivision 2.  For the purposes of computing basic 
 31.20  revenue pursuant to this section, each child with a disability 
 31.21  shall be counted as prescribed in section 126C.05, subdivision 1.
 31.22     (c) "Essential personnel" means teachers, related services, 
 31.23  and support services staff providing direct services to students.
 31.24     (d) "Average daily membership" has the meaning given it in 
 31.25  section 126C.05. 
 31.26     (e) "Program growth factor" means ~~1.012~~ 1.123 for fiscal 
 31.27  year 2002, and 1.062 for fiscal year 2003 and later. 
 31.28     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 31.29  125A.76, subdivision 2, is amended to read: 
 31.30     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 31.31  education base revenue equals the sum of the following amounts 
 31.32  computed using base year data: 
 31.33     (1) 68 percent of the salary of each essential person 
 31.34  employed in the district's program for children with a 
 31.35  disability during the fiscal year, not including the share of 
 31.36  salaries for personnel providing health-related services counted 
 32.1   in clause (8), whether the person is employed by one or more 
 32.2   districts or a Minnesota correctional facility operating on a 
 32.3   fee-for-service basis; 
 32.4      (2) for the Minnesota state academy for the deaf or the 
 32.5   Minnesota state academy for the blind, 68 percent of the salary 
 32.6   of each instructional aide assigned to a child attending the 
 32.7   academy, if that aide is required by the child's individual 
 32.8   education plan; 
 32.9      (3) for special instruction and services provided to any 
 32.10  pupil by contracting with public, private, or voluntary agencies 
 32.11  other than school districts, in place of special instruction and 
 32.12  services provided by the district, 52 percent of the difference 
 32.13  between the amount of the contract and the basic revenue of the 
 32.14  district for that pupil for the fraction of the school day the 
 32.15  pupil receives services under the contract; 
 32.16     (4) for special instruction and services provided to any 
 32.17  pupil by contracting for services with public, private, or 
 32.18  voluntary agencies other than school districts, that are 
 32.19  supplementary to a full educational program provided by the 
 32.20  school district, 52 percent of the amount of the contract for 
 32.21  that pupil; 
 32.22     (5) for supplies and equipment purchased or rented for use 
 32.23  in the instruction of children with a disability, not including 
 32.24  the portion of the expenses for supplies and equipment used to 
 32.25  provide health-related services counted in clause (8), an amount 
 32.26  equal to 47 percent of the sum actually expended by the 
 32.27  district, or a Minnesota correctional facility operating on a 
 32.28  fee-for-service basis, but not to exceed an average of $47 in 
 32.29  any one school year for each child with a disability receiving 
 32.30  instruction; 
 32.31     (6) for fiscal years 1997 and later, special education base 
 32.32  revenue shall include amounts under clauses (1) to (5) for 
 32.33  special education summer programs provided during the base year 
 32.34  for that fiscal year; and 
 32.35     (7) for fiscal years 1999 and later, the cost of providing 
 32.36  transportation services for children with disabilities under 
 33.1   section 123B.92, subdivision 1, paragraph (b), clause (4)~~; and~~ 
 33.2      ~~(8) for fiscal years 2001 and later, the cost of salaries,~~ 
 33.3   ~~supplies and equipment, and other related costs actually~~ 
 33.4   ~~expended by the district for the nonfederal share of medical~~ 
 33.5   ~~assistance services according to section 256B.0625, subdivision~~ 
 33.6   ~~26~~. 
 33.7      The department shall establish procedures through the 
 33.8   Uniform Financial Accounting and Reporting System to identify 
 33.9   and track all revenues generated from third-party billings as 
 33.10  special education revenue at the school district level; include 
 33.11  revenue generated from third-party billings as special education 
 33.12  revenue in the annual cross subsidy report; and exclude 
 33.13  third-party revenue from calculation of excess cost aid to the 
 33.14  districts. 
 33.15     (b) If requested by a school district operating a special 
 33.16  education program during the base year for less than the full 
 33.17  fiscal year, or a school district in which is located a 
 33.18  Minnesota correctional facility operating on a fee-for-service 
 33.19  basis for less than the full fiscal year, the commissioner may 
 33.20  adjust the base revenue to reflect the expenditures that would 
 33.21  have occurred during the base year had the program been operated 
 33.22  for the full fiscal year. 
 33.23     (c) Notwithstanding paragraphs (a) and (b), the portion of 
 33.24  a school district's base revenue attributable to a Minnesota 
 33.25  correctional facility operating on a fee-for-service basis 
 33.26  during the facility's first year of operating on a 
 33.27  fee-for-service basis shall be computed using current year data. 
 33.28     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 33.29  125A.79, subdivision 1, is amended to read: 
 33.30     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 33.31  section, the definitions in this subdivision apply. 
 33.32     (a) "Unreimbursed special education cost" means the sum of 
 33.33  the following: 
 33.34     (1) expenditures for teachers' salaries, contracted 
 33.35  services, supplies, equipment, and transportation services 
 33.36  eligible for revenue under section 125A.76; plus 
 34.1      (2) expenditures for tuition bills received under sections 
 34.2   125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 34.3   under sections 125A.76, subdivision 2, and 124.3202, subdivision 
 34.4   1; minus 
 34.5      (3) revenue for teachers' salaries, contracted services, 
 34.6   supplies, and equipment under sections 124.3202 and 124A.76; 
 34.7   minus 
 34.8      (4) tuition receipts under sections 125A.03 to 125A.24 and 
 34.9   125A.65 for services eligible for revenue under sections 
 34.10  124.3202, subdivision 1, and 124A.76, subdivision 2. 
 34.11     (b) "General revenue" means for fiscal year 1996, the sum 
 34.12  of the general education revenue according to section 126C.10, 
 34.13  subdivision 1, as adjusted according to section 127A.47, 
 34.14  subdivision 7, plus the total referendum revenue according to 
 34.15  section 126C.17, subdivision 4.  For fiscal years 1997 and 
 34.16  later, "general revenue" means the sum of the general education 
 34.17  revenue according to section 126C.10, subdivision 1, as adjusted 
 34.18  according to section 127A.47, subdivisions 7 and 8, plus the 
 34.19  total referendum revenue minus transportation sparsity revenue 
 34.20  minus total operating capital revenue.  For fiscal year 2001 
 34.21  only, "general revenue" means the sum of the general education 
 34.22  revenue according to section 126C.10, subdivision 1, as adjusted 
 34.23  according to section 127A.47, subdivisions 7 and 8, plus the 
 34.24  total referendum revenue minus transportation sparsity revenue 
 34.25  minus total operating capital revenue minus training and 
 34.26  experience adjustment revenue. 
 34.27     (c) "Average daily membership" has the meaning given it in 
 34.28  section 126C.05. 
 34.29     (d) "Program growth factor" means 1.044 for fiscal year 
 34.30  2002 and 1.02 for fiscal year 2003 and later. 
 34.31     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 34.32  125A.79, subdivision 2, is amended to read: 
 34.33     Subd. 2.  [EXCESS COST AID, FISCAL YEARS 2000 AND 2001.] 
 34.34  For fiscal years 2000 and 2001, a district's special education 
 34.35  excess cost aid equals the greatest of: 
 34.36     (a) 75 percent of the difference between (1) the district's 
 35.1   unreimbursed special education cost and (2) ~~4.4~~ 4.37 percent of 
 35.2   the district's general revenue; 
 35.3      (b) 70 percent of the difference between (1) the increase 
 35.4   in the district's unreimbursed special education cost between 
 35.5   the base year as defined in section 125A.76, subdivision 1, and 
 35.6   the current year and (2) 1.6 percent of the district's general 
 35.7   revenue; or 
 35.8      (c) zero. 
 35.9      Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 35.10  125A.79, subdivision 5, is amended to read: 
 35.11     Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
 35.12  and later, a district's initial excess cost aid equals the 
 35.13  greatest of: 
 35.14     (1) 75 percent of the difference between (i) the district's 
 35.15  unreimbursed special education cost and (ii) ~~4.4~~ 4.7 percent of 
 35.16  the district's general revenue; 
 35.17     (2) 70 percent of the difference between (i) the increase 
 35.18  in the district's unreimbursed special education cost between 
 35.19  the base year as defined in section 125A.76, subdivision 1, and 
 35.20  the current year and (ii) 1.6 percent of the district's general 
 35.21  revenue; or 
 35.22     (3) zero. 
 35.23     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 35.24  126C.44, is amended to read: 
 35.25     126C.44 [CRIME-RELATED COSTS LEVY.] 
 35.26     Each district may make a levy on all taxable property 
 35.27  located within the district for the purposes specified in this 
 35.28  ~~subdivision~~ section.  The maximum amount which may be levied for 
 35.29  all costs under this ~~subdivision~~ section shall be equal to 
 35.30  ~~$1.50~~ $14.75 multiplied by the ~~population of the school district~~ 
 35.31  district's adjusted marginal cost pupil units for the school 
 35.32  year.  ~~For purposes of this subdivision, "population" of the~~ 
 35.33  ~~school district means the same as contained in section 275.14.~~  
 35.34  The proceeds of the levy must be used for directly funding the 
 35.35  following purposes or for reimbursing the cities and counties 
 35.36  who contract with the district for the following purposes:  (1) 
 36.1   to pay the costs incurred for the salaries, benefits, and 
 36.2   transportation costs of peace officers and sheriffs for liaison 
 36.3   in services in the district's ~~middle and secondary~~ schools; (2) 
 36.4   to pay the costs for a drug abuse prevention program as defined 
 36.5   in Minnesota Statutes 1991 Supplement, section 609.101, 
 36.6   subdivision 3, paragraph (f), in the elementary schools; (3) to 
 36.7   pay the costs for a gang resistance education training 
 36.8   curriculum in the ~~middle~~ district's schools; ~~or~~ (4) to pay the 
 36.9   costs for security in the districts' schools and on school 
 36.10  property; or (5) to pay the costs for other crime prevention 
 36.11  ~~and~~, drug abuse, student and staff safety, and violence 
 36.12  prevention measures taken by the school district.  The district 
 36.13  must initially attempt to contract for services to be provided 
 36.14  by peace officers or sheriffs with the police department of each 
 36.15  city or the sheriff's department of the county within the 
 36.16  district containing the school receiving the services.  If a 
 36.17  local police department or a county sheriff's department does 
 36.18  not wish to provide the necessary services, the district may 
 36.19  contract for these services with any other police or sheriff's 
 36.20  department located entirely or partially within the school 
 36.21  district's boundaries.  The levy authorized under 
 36.22  this ~~subdivision~~ section is not included in determining the 
 36.23  school district's levy limitations. 
 36.24     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000, 
 36.25  for levies for taxes payable in 2001 and later. 
 36.26     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 36.27  127A.42, subdivision 3, is amended to read: 
 36.28     Subd. 3.  [ASSURANCE OF COMPLIANCE.] (a) After consultation 
 36.29  with the commissioner of human rights, the commissioner of 
 36.30  children, families, and learning shall adopt rules in 
 36.31  conformance with chapter 14.  The rules must direct districts to 
 36.32  file with the commissioner of children, families, and learning 
 36.33  assurances of compliance with state and federal laws prohibiting 
 36.34  discrimination ~~and specify the information required to be~~ 
 36.35  ~~submitted in support of the assurances~~.  ~~The commissioner shall~~ 
 36.36  ~~provide copies of the assurances and the supportive information~~ 
 37.1   ~~to the commissioner of human rights~~ The assurances must be 
 37.2   provided in a form and manner prescribed by the commissioner.  
 37.3      (b) If~~, after reviewing the assurances and the supportive~~ 
 37.4   ~~information~~ it appears that one or more violations of the 
 37.5   Minnesota Human Rights Act are occurring in ~~the~~ a district, the 
 37.6   commissioner of human rights shall notify the commissioner of 
 37.7   the violations, and the commissioner of children, families, and 
 37.8   learning may then proceed pursuant to subdivision 4. 
 37.9      Sec. 18.  Laws 1999, chapter 241, article 2, section 60, 
 37.10  subdivision 7, is amended to read: 
 37.11     Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 37.12  school aid according to Minnesota Statutes, section 124D.83: 
 37.13       ~~$2,706,000~~ $1,671,000     .....     2000
 37.14       ~~$2,790,000~~ $1,882,000     .....     2001
 37.15     The 2000 appropriation includes $283,000 for 1999 and 
 37.16  ~~$2,423,000~~ $1,388,000 for 2000. 
 37.17     The 2001 appropriation includes ~~$269,000~~ $154,000 for 2000 
 37.18  and ~~$2,521,000~~ $1,728,000 for 2001. 
 37.19     Sec. 19.  Laws 1999, chapter 241, article 2, section 60, 
 37.20  subdivision 9, is amended to read: 
 37.21     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 37.22  program grants under Laws 1994, chapter 647, article 8, section 
 37.23  38: 
 37.24       $1,750,000     .....     2000 
 37.25       $1,750,000     .....     2001 
 37.26     These amounts may be used for magnet school programs 
 37.27  according to Minnesota Statutes, section 124D.88.  The budget 
 37.28  base for this program for fiscal year 2003 and each year 
 37.29  thereafter is $1,050,000. 
 37.30     Sec. 20.  Laws 1999, chapter 241, article 2, section 60, 
 37.31  subdivision 12, is amended to read: 
 37.32     Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 37.33  according to Minnesota Statutes, section 125A.75, subdivision 3, 
 37.34  for children with a disability placed in residential facilities 
 37.35  within the district boundaries for whom no district of residence 
 37.36  can be determined: 
 38.1        ~~$  443,000~~ $  433,000  .....     2000 
 38.2        ~~$1,064,000~~ $4,263,000  .....     2001 
 38.3      If the appropriation for either year is insufficient, the 
 38.4   appropriation for the other year is available.  Any balance in 
 38.5   the first year does not cancel but is available in the second 
 38.6   year. 
 38.7      Sec. 21.  Laws 1999, chapter 241, article 2, section 60, 
 38.8   subdivision 13, is amended to read: 
 38.9      Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 38.10  teacher travel for home-based services according to Minnesota 
 38.11  Statutes, section 125A.75, subdivision 1: 
 38.12       ~~$133,000~~ $125,000    .....     2000 
 38.13       ~~$139,000~~ $130,000    .....     2001 
 38.14     The 2000 appropriation includes $11,000 for 1999 and 
 38.15  ~~$122,000~~ $114,000 for 2000.  
 38.16     The 2001 appropriation includes $13,000 for 2000 and 
 38.17  ~~$126,000~~ $117,000 for 2001.  
 38.18     Sec. 22.  Laws 1999, chapter 241, article 2, section 60, 
 38.19  subdivision 14, is amended to read: 
 38.20     Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 38.21  cost aid: 
 38.22       ~~$60,498,000~~ $66,032,000   .....     2000 
 38.23       ~~$79,405,000~~ $89,072,000   .....     2001 
 38.24     The 2000 appropriation includes $4,693,000 for 1999 and 
 38.25  ~~$55,805,000~~ $61,339,000 for 2000.  
 38.26     The 2001 appropriation includes ~~$6,200,000~~ $6,815,000 for 
 38.27  2000 and ~~$73,205,000~~ $82,257,000 for 2001. 
 38.28     Sec. 23.  Laws 1999, chapter 241, article 2, section 60, 
 38.29  subdivision 17, is amended to read: 
 38.30     Subd. 17.  [INTEGRATION AID.] For integration aid: 
 38.31       ~~$37,182,000~~ $37,610,000  .....     2000 
 38.32       ~~$43,787,000~~ $55,828,000  .....     2001 
 38.33     The 2000 appropriation includes $2,902,000 for 1999 and 
 38.34  ~~$34,280,000~~ $34,708,000 for 2000. 
 38.35     The 2001 appropriation includes ~~$3,809,000~~ $3,856,000 for 
 38.36  2000 and ~~$39,978,000~~ $51,972,000 for 2001.  
 39.1      Sec. 24.  Laws 1999, chapter 241, article 2, section 60, 
 39.2   subdivision 19, is amended to read: 
 39.3      Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 39.4   TRANSPORTATION AID.] (a) For interdistrict desegregation or 
 39.5   integration transportation aid under Minnesota Statutes, section 
 39.6   124D.87: 
 39.7        $970,000     .....     2000 
 39.8        $970,000     .....     2001 
 39.9      Any balance in the first year does not cancel but is 
 39.10  available in the second year. 
 39.11     (b) The budget base for this program for fiscal year 2002 
 39.12  is $500,000.  This amount may be spent for interdistrict 
 39.13  desegregation or integration transportation aid.  For fiscal 
 39.14  year 2003 and later, the budget base for this program is the 
 39.15  forecasted cost of fully reimbursing districts according to 
 39.16  Minnesota Statutes, section 124D.87. 
 39.17     Sec. 25.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 
 39.18     For fiscal year 2000, a school district shall receive an 
 39.19  amount of revenue equal to $15 times the district's adjusted 
 39.20  marginal cost pupil units.  For fiscal year 2001, a school 
 39.21  district shall receive an amount of revenue equal to $35 times 
 39.22  the district's adjusted marginal cost pupil units.  Special 
 39.23  education cross-subsidy revenue must be used to pay for a 
 39.24  district's unfunded special education costs that are currently 
 39.25  cross-subsidized by a district's general education revenue. 
 39.26     Sec. 26.  [STUDY.] 
 39.27     The commissioner of children, families, and learning shall 
 39.28  contract with a qualified expert to determine and report the 
 39.29  number and overall incidence rate of Minnesota school children, 
 39.30  by district, age, grade level, gender, and race, diagnosed with 
 39.31  attention deficit disorder (ADD) or attention deficit 
 39.32  hyperactivity disorder (ADHD) currently taking amphetamine 
 39.33  prescription drugs such as Ritalin.  In preparing the report, 
 39.34  the contractor also must determine the number and overall 
 39.35  incidence rate of students not identified with ADD or ADHD 
 39.36  currently taking amphetamine prescription drugs such as 
 40.1   Ritalin.  The commissioner, the commissioner's designee, and 
 40.2   school districts must comply with Minnesota Statutes, chapter 
 40.3   13, when gathering data for this report.  The commissioner must 
 40.4   submit the report and any recommendations to the education 
 40.5   committees of the legislature by February 15, 2001. 
 40.6      Sec. 27.  [RESOLUTION.] 
 40.7      Be it resolved by the legislature of the state of 
 40.8   Minnesota, that it supports governor Jesse Ventura's efforts to 
 40.9   have Congress speedily enact legislation to fund at least 40 
 40.10  percent of the cost of special education services provided as a 
 40.11  result of the federal mandate to provide a free and appropriate 
 40.12  public education for students with disabilities.  The state 
 40.13  finds that the federal requirements impede the ability of the 
 40.14  state and school districts to adequately fund kindergarten 
 40.15  through grade 12 education for all students. 
 40.16     Sec. 28.  [APPROPRIATIONS.] 
 40.17     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 40.18  LEARNING.] The sums indicated in this section are appropriated 
 40.19  from the general fund to the department of children, families, 
 40.20  and learning for the fiscal years designated. 
 40.21     Subd. 2.  [LITTLE FALLS; REVENUE REIMBURSEMENT.] For 
 40.22  independent school district No. 482, Little Falls, for partial 
 40.23  reimbursement of revenue returned to the state as a result of a 
 40.24  finding that the district had over-counted kindergarten pupils 
 40.25  in earlier years: 
 40.26       $300,000     .....     2000 
 40.27     Revenue appropriated to the district under this subdivision 
 40.28  must be used for all-day kindergarten services and must be 
 40.29  matched by fees collected from parents by the district for 
 40.30  providing all-day kindergarten services. 
 40.31     Subd. 3.  [NORTHLAND LEARNING CENTER.] For a grant to the 
 40.32  Northland joint powers board for start-up costs associated with 
 40.33  the delay of special education funding for the Northland 
 40.34  learning center: 
 40.35       $200,000     .....     2001 
 40.36     Subd. 4.  [MAGNET SCHOOL START-UP AID.] For magnet school 
 41.1   start-up aid under Minnesota Statutes, section 124D.88: 
 41.2        $250,000     .....     2001 
 41.3      Subd. 5.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 
 41.4   special education cross-subsidy revenue: 
 41.5        $14,537,000     .....     2000 
 41.6        $33,829,000     .....     2001 
 41.7      Subd. 6.  [STUDY.] For a report on the number and overall 
 41.8   incident rate of Minnesota school children diagnosed with 
 41.9   attention deficit disorder or attention deficit hyperactivity 
 41.10  disorder: 
 41.11       $40,000     .....     2001 
 41.12     Subd. 7.  [GRANT TO INDEPENDENT SCHOOL DISTRICT NO. 707, 
 41.13  NETT LAKE.] For a grant to independent school district No. 707, 
 41.14  Nett Lake, to pay obligations of the school district for 
 41.15  unemployment compensation.  The appropriation must be paid to 
 41.16  the appropriate state agency for such purposes in the name of 
 41.17  the school district: 
 41.18       $ 30,000     .....     2001
 41.19     Sec. 29.  [REPEALER.] 
 41.20     Minnesota Rules, part 3535.9920, is repealed. 
 41.21                             ARTICLE 3
 41.22                  EMPLOYMENT AND OTHER TRANSITIONS
 41.23     Section 1.  Minnesota Statutes 1998, section 124D.44, is 
 41.24  amended to read: 
 41.25     124D.44 [MATCH REQUIREMENTS.] 
 41.26     Youth works grant funds must be used for the living 
 41.27  allowance, cost of employer taxes under sections 3111 and 3301 
 41.28  of the Internal Revenue Code of 1986, workers' compensation 
 41.29  coverage, ~~and~~ health benefits for each program participant, and 
 41.30  administrative expenses, which must not exceed five percent of 
 41.31  total program costs.  Youthworks grant funds may also be used to 
 41.32  supplement applicant resources to fund postservice benefits for 
 41.33  program participants.  Applicant resources, from sources and in 
 41.34  a form determined by the commission ~~and, beginning January 1,~~ 
 41.35  ~~1997, the council~~, must be used to provide for all other program 
 41.36  costs, including the portion of the applicant's obligation for 
 42.1   postservice benefits that is not covered by state or federal 
 42.2   grant funds and such costs as supplies, materials, 
 42.3   transportation, and salaries and benefits of those staff 
 42.4   directly involved in the operation, internal monitoring, and 
 42.5   evaluation of the program.  ~~Administrative expenses must not~~ 
 42.6   ~~exceed five percent of total program costs.~~ 
 42.7      Sec. 2.  Minnesota Statutes 1998, section 124D.454, 
 42.8   subdivision 4, is amended to read: 
 42.9      Subd. 4.  [ADJUSTED ~~SECONDARY~~ 
 42.10  ~~VOCATIONAL-DISABLED~~ TRANSITION-DISABLED BASE REVENUE.] For 
 42.11  fiscal year 1996 and later, a district's adjusted ~~secondary~~ 
 42.12  ~~vocational-disabled~~ transition-disabled base revenue equals the 
 42.13  district's ~~secondary vocational-disabled~~ transition-disabled 
 42.14  base revenue times the ratio of the district's average daily 
 42.15  membership for the current school year to the district's average 
 42.16  daily membership for the base year. 
 42.17     Sec. 3.  Minnesota Statutes 1998, section 124D.454, 
 42.18  subdivision 6, is amended to read: 
 42.19     Subd. 6.  [SCHOOL DISTRICT ~~SECONDARY~~ 
 42.20  ~~VOCATIONAL-DISABLED~~ TRANSITION-DISABLED REVENUE.] (a) A school 
 42.21  district's ~~secondary vocational-disabled~~ transition-disabled 
 42.22  revenue for fiscal year 1996 and later equals the state 
 42.23  total ~~secondary vocational-disabled~~ transition-disabled revenue, 
 42.24  minus the amount determined under paragraph (b), times the ratio 
 42.25  of the district's adjusted ~~secondary~~ 
 42.26  ~~vocational-disabled~~ transition-disabled base revenue to the 
 42.27  state total adjusted ~~secondary~~ 
 42.28  ~~vocational-disabled~~ transition-disabled base revenue. 
 42.29     (b) Notwithstanding paragraph (a), if the ~~secondary~~ 
 42.30  ~~vocational-disabled~~ transition-disabled base revenue for a 
 42.31  district equals zero and no district residents were enrolled 
 42.32  in ~~secondary vocational-disabled~~ transition-disabled programs 
 42.33  during the base year, the ~~secondary~~ 
 42.34  ~~vocational-disabled~~ transition-disabled revenue equals the 
 42.35  amount computed according to subdivision 3 using current year 
 42.36  data. 
 43.1      Sec. 4.  Minnesota Statutes 1998, section 124D.454, 
 43.2   subdivision 7, is amended to read: 
 43.3      Subd. 7.  [SCHOOL DISTRICT ~~SECONDARY~~ 
 43.4   ~~VOCATIONAL-DISABLED~~ TRANSITION-DISABLED AID.] A school 
 43.5   district's ~~secondary vocational-disabled~~ transition-disabled aid 
 43.6   for fiscal year 1996 and later equals the district's ~~secondary~~ 
 43.7   ~~vocational-disabled~~ transition-disabled revenue times the aid 
 43.8   percentage factor for that year. 
 43.9      Sec. 5.  Laws 1997, chapter 157, section 71, as amended by 
 43.10  Laws 1998, chapter 398, article 3, section 11, is amended to 
 43.11  read: 
 43.12     Sec. 71.  [SCHOOL ~~BANK PILOT PROJECT~~ BANKS.] 
 43.13     (a) A school bank sponsored by independent school district 
 43.14  No. 31, Bemidji, independent school district No. 316, 
 43.15  Greenway-Coleraine, independent school district No. 2170, 
 43.16  Staples-Motley, or by independent school district No. 508, St. 
 43.17  Peter, that meets all requirements of paragraph (b) is not 
 43.18  subject to Minnesota Statutes, section 47.03, subdivision 1, or 
 43.19  to any other statute or rule that regulates banks, other 
 43.20  financial institutions, or currency exchanges. 
 43.21     (b) To qualify under paragraph (a), the school bank must: 
 43.22     (1) be operated as part of a high school educational 
 43.23  program and under guidelines adopted by the school board; 
 43.24     (2) be advised on a regular basis by one or more 
 43.25  state-chartered or federally-chartered financial institutions, 
 43.26  but not owned or operated by any financial institution; 
 43.27     (3) be located on school premises and have as customers 
 43.28  only students enrolled in, or employees of, the school in which 
 43.29  it is located; and 
 43.30     (4) have a written commitment from the school board, 
 43.31  guaranteeing reimbursement of any depositor's funds lost due to 
 43.32  insolvency of the school bank. 
 43.33     (c) Funds of a school bank that meets the requirements of 
 43.34  this section are not school district or other public funds for 
 43.35  purposes of any state law governing the use or investment of 
 43.36  school district or other public funds. 
 44.1      (d) The school district shall annually file with the 
 44.2   commissioner of commerce a report, prepared by the students and 
 44.3   teachers involved, summarizing the operation of the school bank. 
 44.4      ~~(e) This section expires June 30, 2000.  The commissioner~~ 
 44.5   ~~of commerce shall, no later than December 15, 1999, provide a~~ 
 44.6   ~~written report to the legislature regarding this pilot project~~ 
 44.7   ~~and any recommended legislation regarding school banks.~~ 
 44.8      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 44.9   following final enactment. 
 44.10     Sec. 6.  Laws 1999, chapter 241, article 3, section 3, 
 44.11  subdivision 2, is amended to read: 
 44.12     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 44.13  secondary vocational education aid according to Minnesota 
 44.14  Statutes, section 124D.453: 
 44.15       ~~$11,335,000~~ $12,413,000    .....     2000 
 44.16       ~~$1,130,000~~  $ 1,250,000    .....     2001 
 44.17     The 2000 appropriation includes $1,159,000 for 1999 and 
 44.18  ~~$10,176,000~~ $11,254,000 for 2000.  The 2001 appropriation 
 44.19  includes ~~$1,130,000~~ $1,250,000 for 2000.  
 44.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 44.21  following final enactment. 
 44.22     Sec. 7.  Laws 1999, chapter 241, article 3, section 3, 
 44.23  subdivision 4, is amended to read: 
 44.24     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 44.25  GRANTS.] For education and employment transitions programming 
 44.26  under Minnesota Statutes, section 124D.46: 
 44.27       $3,225,000     .....     2000 
 44.28       $3,225,000     .....     2001 
 44.29     $200,000 each year is for the development and 
 44.30  implementation of the ISEEK Internet-based education and 
 44.31  employment information system. 
 44.32     $1,000,000 each year is for an employer rebate program for 
 44.33  qualifying employers who offer youth internships to educators. 
 44.34     $500,000 each year is for youth entrepreneurship grants.  
 44.35     $750,000 each year is for youth apprenticeship grants. 
 44.36     $300,000 each year is for grants to programs in cities of 
 45.1   the first class to expand the number of at-risk students 
 45.2   participating in school-to-work projects. 
 45.3      $350,000 each year is for agricultural school-to-work 
 45.4   grants. 
 45.5      $125,000 each year is to conduct a high school follow-up 
 45.6   survey to include first, third, and sixth year graduates of 
 45.7   Minnesota schools. 
 45.8      Any balance in the first year does not cancel but is 
 45.9   available in the second year. 
 45.10                             ARTICLE 4 
 45.11                     FACILITIES AND TECHNOLOGY 
 45.12     Section 1.  Minnesota Statutes 1998, section 123B.51, 
 45.13  subdivision 6, is amended to read: 
 45.14     Subd. 6.  [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 
 45.15  the sale or exchange of school buildings or real property of the 
 45.16  district must be used as provided in this subdivision. 
 45.17     (b) In districts with outstanding bonds, the proceeds of 
 45.18  the sale or exchange shall first be deposited in the debt 
 45.19  retirement fund of the district in an amount sufficient to meet 
 45.20  when due that percentage of the principal and interest payments 
 45.21  for outstanding bonds which is ascribable to the payment of 
 45.22  expenses necessary and incidental to the construction or 
 45.23  purchase of the particular building or property which is sold.  
 45.24     (c) After satisfying the requirements of paragraph (b), a 
 45.25  district with outstanding bonds may deposit proceeds of the sale 
 45.26  or exchange in its ~~capital expenditure fund~~ general fund 
 45.27  reserved for operating capital account if the amount deposited 
 45.28  is used for the following:  
 45.29     (1) for expenditures for the cleanup of polychlorinated 
 45.30  biphenyls, if the method for cleanup is approved by the 
 45.31  department; 
 45.32     (2) for capital expenditures for the betterment, as defined 
 45.33  in section 475.51, subdivision 8, of district-owned school 
 45.34  buildings; or 
 45.35     (3) to replace the building or property sold.  
 45.36     (d) In a district with outstanding bonds, the amount of the 
 46.1   proceeds of the sale or exchange remaining after the application 
 46.2   of paragraphs (b) and (c), which is sufficient to meet when due 
 46.3   that percentage of the principal and interest payments for the 
 46.4   district's outstanding bonds which is not governed by paragraph 
 46.5   (b), shall be deposited in the debt retirement fund.  
 46.6      (e) Any proceeds of the sale or exchange remaining in 
 46.7   districts with outstanding bonds after the application of 
 46.8   paragraphs (b), (c), and (d), and all proceeds of the sale or 
 46.9   exchange in districts without outstanding bonds shall be 
 46.10  deposited in the ~~capital expenditure~~ general fund reserved for 
 46.11  operating capital account of the district. 
 46.12     (f) Notwithstanding paragraphs (c) and (d), a district with 
 46.13  outstanding bonds may deposit in its ~~capital expenditure~~ general 
 46.14  fund reserved for operating capital account and use for any 
 46.15  lawful operating capital expenditure without the reduction of 
 46.16  any levy limitation the same percentage of the proceeds of the 
 46.17  sale or exchange of a building or property as the percentage of 
 46.18  the initial cost of purchasing or constructing the building or 
 46.19  property which was paid using revenue from the ~~capital~~ 
 46.20  ~~expenditure~~ general fund reserved for operating capital account. 
 46.21     Sec. 2.  Minnesota Statutes 1998, section 123B.53, as 
 46.22  amended by Laws 1999, chapter 241, is amended to read: 
 46.23     123B.53 [~~DEBT SERVICE~~ FACILITIES EQUALIZATION PROGRAM.] 
 46.24     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 46.25  section, the eligible ~~debt service~~ facilities revenue of a 
 46.26  district is defined as follows: 
 46.27     (1) the amount needed to produce between five and six 
 46.28  percent in excess of the amount needed to meet when due the 
 46.29  principal and interest payments on the obligations of the 
 46.30  district for eligible projects according to subdivision 2, 
 46.31  including the amounts necessary for repayment of energy loans 
 46.32  according to section ~~216C.37 or sections 298.292 to 298.298~~ 
 46.33  126C.40, subdivision 5, debt service loans and capital loans, 
 46.34  lease purchase payments under section 126C.40, ~~subdivision 2~~ 
 46.35  subdivisions 2 and 6; Laws 1995, First Special Session chapter 
 46.36  3, article 5, section 19; and Laws 1997, First Special Session 
 47.1   chapter 4, article 4, section 30, alternative facilities ~~levies~~ 
 47.2   revenue under section 123B.59, subdivision 5; health and safety 
 47.3   revenue, under section 123B.57, subdivision 3; handicapped 
 47.4   access and fire safety revenue, under section 123B.58, 
 47.5   subdivision 3; building construction and lease revenue, under 
 47.6   section 123B.63, subdivision 3; building lease revenue, under 
 47.7   section 126C.40, subdivision 1; and cooperative building repair 
 47.8   revenue, under section 126C.40, subdivision 3, minus 
 47.9      (2) the amount of debt service excess levy reduction for 
 47.10  that school year calculated according to the procedure 
 47.11  established by the commissioner. 
 47.12     (b) The obligations in this paragraph are excluded from 
 47.13  eligible ~~debt service~~ facilities revenue: 
 47.14     (1) obligations under section 123B.61; 
 47.15     (2) the part of debt service principal and interest paid 
 47.16  from the taconite environmental protection fund or northeast 
 47.17  Minnesota economic protection trust; 
 47.18     (3) obligations issued under Laws 1991, chapter 265, 
 47.19  article 5, section 18, as amended by Laws 1992, chapter 499, 
 47.20  article 5, section 24; and 
 47.21     (4) obligations under section 123B.62. 
 47.22     (c) For purposes of this section, if a preexisting school 
 47.23  district reorganized under sections 123A.35 to 123A.43, 123A.46, 
 47.24  and 123A.48 is solely responsible for retirement of the 
 47.25  preexisting district's bonded indebtedness, capital loans or 
 47.26  debt service loans, ~~debt service~~ facilities equalization aid 
 47.27  must be computed separately for each of the preexisting 
 47.28  districts. 
 47.29     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
 47.30  district's ~~debt service levy~~ facilities revenue qualify for ~~debt~~ 
 47.31  ~~service~~ facilities equalization: 
 47.32     (1) debt service for repayment of principal and interest on 
 47.33  bonds issued before July 2, 1992; 
 47.34     (2) debt service for bonds refinanced after July 1, 1992, 
 47.35  if the bond schedule has been approved by the commissioner and, 
 47.36  if necessary, adjusted to reflect a 20-year maturity schedule; 
 48.1   ~~and~~ 
 48.2      (3) debt service for bonds issued after July 1, 1992, for 
 48.3   construction projects that have received a positive review and 
 48.4   comment according to section 123B.71, if the commissioner has 
 48.5   determined that the district has met the criteria under section 
 48.6   126C.69, subdivision 3, except section 126C.69, subdivision 3, 
 48.7   paragraph (a), clause (2), and if the bond schedule has been 
 48.8   approved by the commissioner and, if necessary, adjusted to 
 48.9   reflect a 20-year maturity schedule; 
 48.10     (4) alternative facilities revenue, according to section 
 48.11  123B.59, subdivision 5; 
 48.12     (5) health and safety revenue, according to section 
 48.13  123B.57, subdivision 3; 
 48.14     (6) handicapped access and fire safety revenue, according 
 48.15  to section 123B.58, subdivision 3; 
 48.16     (7) building construction and lease revenue, according to 
 48.17  section 123B.63, subdivision 3; 
 48.18     (8) building lease revenue, according to section 126C.40, 
 48.19  subdivision 1; and 
 48.20     (9) cooperative building repair revenue, according to 
 48.21  section 126C.40, subdivision 3. 
 48.22     (b) The criterion described in section 126C.69, subdivision 
 48.23  3, paragraph (a), clause (9), does not apply to bonds authorized 
 48.24  by elections held before July 1, 1992. 
 48.25     (c) For the purpose of this subdivision the department 
 48.26  shall determine the eligibility for sparsity at the location of 
 48.27  the new facility, or the site of the new facility closest to the 
 48.28  nearest operating school if there is more than one new facility. 
 48.29     (d) Notwithstanding paragraphs (a) to (c), debt service for 
 48.30  repayment of principal and interest on bonds issued after July 
 48.31  1, 1997, ~~does~~ or leases on buildings do not qualify for debt 
 48.32  service equalization aid unless the primary purpose of the 
 48.33  facility is to serve students in kindergarten through grade 12. 
 48.34     Subd. 3.  [NOTIFICATION.] A district eligible for ~~debt~~ 
 48.35  ~~service~~ facilities equalization revenue under subdivision 2 must 
 48.36  notify the commissioner of the amount of its intended ~~debt~~ 
 49.1   ~~service~~ facilities equalization revenue calculated under 
 49.2   subdivision 1 for all bonds sold prior to the notification by 
 49.3   July 1 of the calendar year the levy is certified. 
 49.4      Subd. 4.  [~~DEBT SERVICE~~ FACILITIES EQUALIZATION REVENUE.] 
 49.5   The ~~debt service~~ facilities equalization revenue of a district 
 49.6   equals the eligible ~~debt service~~ facilities equalization revenue 
 49.7   minus the amount raised by a levy of ~~12~~ 11 percent times the 
 49.8   adjusted net tax capacity of the district. 
 49.9      Subd. 5.  [EQUALIZED ~~DEBT SERVICE~~ FACILITIES LEVY.] To 
 49.10  obtain ~~debt service~~ facilities equalization revenue, a district 
 49.11  must levy an amount not to exceed the district's ~~debt service~~ 
 49.12  facilities equalization revenue times the lesser of one or the 
 49.13  ratio of: 
 49.14     (1) the quotient derived by dividing the adjusted net tax 
 49.15  capacity of the district for the year before the year the levy 
 49.16  is certified by the adjusted pupil units in the district for the 
 49.17  school year ending in the year prior to the year the levy is 
 49.18  certified; to 
 49.19     (2) ~~$4,000~~ $4,210. 
 49.20     Subd. 6.  [~~DEBT SERVICE~~ FACILITIES EQUALIZATION AID.] A 
 49.21  district's ~~debt service~~ facilities equalization aid is the 
 49.22  difference between the ~~debt service~~ facilities equalization 
 49.23  revenue and the equalized ~~debt service~~ facilities levy.  If a 
 49.24  district does not levy the entire amount permitted, the 
 49.25  district's aid must be reduced in proportion to the amount 
 49.26  levied. 
 49.27     Subd. 7.  [~~DEBT SERVICE~~ FACILITIES EQUALIZATION AID PAYMENT 
 49.28  SCHEDULE.] ~~Debt service~~ Facilities equalization aid must be paid 
 49.29  according to section 127A.45, subdivision 10. 
 49.30     Subd. 8.  [DEBT SERVICE PRIORITY.] Of the amount paid under 
 49.31  this section, the district must first allocate the amount 
 49.32  attributable to obligations under chapter 475.  Remaining aid 
 49.33  may be used for other purposes of this section. 
 49.34     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 49.35  fiscal year 2002 and thereafter.  
 49.36     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 50.1   123B.54, is amended to read: 
 50.2      123B.54 [~~DEBT SERVICE~~ FACILITIES EQUALIZATION 
 50.3   APPROPRIATION.] 
 50.4      (a) $33,165,000 in fiscal year 2000, $32,057,000 in fiscal 
 50.5   year 2001, and ~~$31,280,000~~ $44,407,000 in fiscal year 2002 and 
 50.6   each year thereafter is appropriated from the general fund to 
 50.7   the commissioner of children, families, and learning for payment 
 50.8   of ~~debt service~~ facilities equalization aid under section 
 50.9   123B.53.  The 2002 appropriation includes $3,201,000 for 2001 
 50.10  and ~~$29,079,000~~ $41,206,000 for 2002. 
 50.11     (b) The appropriations in paragraph (a) must be reduced by 
 50.12  the amount of any money specifically appropriated for the same 
 50.13  purpose in any year from any state fund. 
 50.14     Sec. 4.  Minnesota Statutes 1998, section 123B.57, 
 50.15  subdivision 1, is amended to read: 
 50.16     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
 50.17  health and safety revenue for any fiscal year a district must 
 50.18  submit to the commissioner an application for ~~aid and levy~~ 
 50.19  revenue by the date determined by the commissioner.  The 
 50.20  application may be for hazardous substance removal, fire and 
 50.21  life safety code repairs, labor and industry regulated facility 
 50.22  and equipment violations, and health, safety, and environmental 
 50.23  management, including indoor air quality management.  The 
 50.24  application must include a health and safety program adopted by 
 50.25  the school district board.  The program must include the 
 50.26  estimated cost, per building, of the program by fiscal year. 
 50.27     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 50.28  fiscal year 2002 and thereafter.  
 50.29     Sec. 5.  Minnesota Statutes 1998, section 123B.58, 
 50.30  subdivision 3, is amended to read: 
 50.31     Subd. 3.  [~~LEVY AUTHORITY~~ REVENUE.] The district ~~may levy~~ 
 50.32  is eligible for revenue up to $300,000 under this section, as 
 50.33  approved by the commissioner.  The approved amount may be ~~levied~~ 
 50.34  received over eight or fewer years. 
 50.35     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 50.36  fiscal year 2002 and thereafter.  
 51.1      Sec. 6.  Minnesota Statutes 1998, section 123B.58, 
 51.2   subdivision 4, is amended to read: 
 51.3      Subd. 4.  [~~LEVY AUTHORITY~~ REVENUE IN COMBINED DISTRICTS.] 
 51.4   Notwithstanding subdivision 3, a district that has combined or 
 51.5   consolidated may ~~levy~~ receive revenue up to 50 percent times 
 51.6   $300,000 times the number of former districts that operated on 
 51.7   June 30, 1991, in the area that now makes up the combined or 
 51.8   consolidated district.  The approved amount is reduced by any 
 51.9   amount levied under subdivision 3 in the consolidated or 
 51.10  combined district or in the former districts that make up the 
 51.11  consolidated or combined district.  Levy authority under this 
 51.12  subdivision expires at the same time as levy authority under 
 51.13  subdivision 3. 
 51.14     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 51.15  fiscal year 2002 and thereafter.  
 51.16     Sec. 7.  Minnesota Statutes 1998, section 123B.59, as 
 51.17  amended by Laws 1999, chapter 241, is amended to read: 
 51.18     123B.59 [ALTERNATIVE FACILITIES ~~BONDING AND LEVY~~ REVENUE 
 51.19  PROGRAM.] 
 51.20     Subdivision 1.  [TO QUALIFY.] An independent or special 
 51.21  school district qualifies to participate in the alternative 
 51.22  facilities ~~bonding and levy~~ revenue program if the district has: 
 51.23     (1) more than 66 students per grade; 
 51.24     (2) over 1,850,000 square feet of space; 
 51.25     (3) average age of building space is 15 years or older; 
 51.26     (4) insufficient funds from projected health and safety 
 51.27  revenue and capital facilities revenue to meet the requirements 
 51.28  for deferred maintenance, to make accessibility improvements, or 
 51.29  to make fire, safety, or health repairs; and 
 51.30     (5) a ten-year facility plan approved by the commissioner 
 51.31  according to subdivision 2. 
 51.32     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
 51.33  have a ten-year facility plan approved by the commissioner that 
 51.34  includes an inventory of projects and costs that would be 
 51.35  eligible for: 
 51.36     (1) health and safety revenue; 
 52.1      (2) disabled access levy; and 
 52.2      (3) deferred capital expenditures and maintenance projects 
 52.3   necessary to prevent further erosion of facilities. 
 52.4      (b) The school district must: 
 52.5      (1) annually update the plan; 
 52.6      (2) biennially submit a facility maintenance plan; and 
 52.7      (3) indicate whether the district will issue bonds to 
 52.8   finance the plan or ~~levy~~ annually include program revenue under 
 52.9   the facilities equalization program, under section 123B.53, for 
 52.10  the costs. 
 52.11     Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
 52.12  approval of its board and the commissioner, may issue general 
 52.13  obligation bonds under this section to finance approved 
 52.14  facilities plans.  Chapter 475, except sections 475.58 and 
 52.15  475.59, must be complied with.  ~~The district may levy under~~ 
 52.16  ~~subdivision 5 for the debt service revenue.~~  The authority to 
 52.17  issue bonds under this section is in addition to any bonding 
 52.18  authority authorized by this chapter, or other law.  The amount 
 52.19  of bonding authority authorized under this section must be 
 52.20  disregarded in calculating the bonding or net debt limits of 
 52.21  this chapter, or any other law other than section 475.53, 
 52.22  subdivision 4. 
 52.23     Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 
 52.24  district that participates in the alternative ~~facilities bonding~~ 
 52.25  ~~and levy~~ revenue program is not eligible ~~to levy and cannot~~ 
 52.26  ~~receive aid~~ for revenue under sections 123B.57 and 123B.58 for 
 52.27  any capital projects funded under this section.  A district 
 52.28  may ~~levy and receive aid for health and safety~~ receive revenue 
 52.29  for environmental management costs and health and safety 
 52.30  regulatory, hazard assessment, record keeping, and maintenance 
 52.31  programs as defined in section ~~123A.443~~ 123B.57, subdivision 2, 
 52.32  and approved by the commissioner. 
 52.33     Subd. 5.  [~~LEVY~~ REVENUE AUTHORIZED.] A district, after 
 52.34  local board approval, may ~~levy~~ receive revenue for costs related 
 52.35  to an approved facility plan as follows:  
 52.36     (a) if the district has indicated to the commissioner that 
 53.1   bonds will be issued, the district may ~~levy~~ receive revenue for 
 53.2   the principal and interest payments on outstanding bonds issued 
 53.3   according to subdivision 3 after reduction for any alternative 
 53.4   facilities aid receivable under subdivision 6; or 
 53.5      (b) if the district has indicated to the commissioner that 
 53.6   the plan will be funded through levy authorized under section 
 53.7   123B.53, subdivision 5, the district may levy according to the 
 53.8   schedule approved in the plan after reduction for any 
 53.9   alternative facilities aid receivable under subdivision 6. 
 53.10     Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
 53.11  alternative facilities aid is the amount equal to the district's 
 53.12  annual debt service costs, provided that the amount does not 
 53.13  exceed the amount certified to be levied for those purposes for 
 53.14  taxes payable in 1997, or for a district that made a levy under 
 53.15  subdivision 5, paragraph (b), the lesser of the district's 
 53.16  annual levy amount, or one-sixth of the amount of levy that it 
 53.17  certified for that purpose for taxes payable in 1998. 
 53.18     Subd. 8.  [SEPARATE ACCOUNT.] A district must establish a 
 53.19  separate account under the uniform financial accounting and 
 53.20  reporting standards (UFARS) for this program.  If the district's 
 53.21  ~~levy~~ revenue exceeds the necessary interest and principal 
 53.22  payments and noncapital health and safety costs, the district 
 53.23  must reserve the revenue to replace future bonding authority, 
 53.24  prepay bonds authorized under this program, or make payments on 
 53.25  principal and interest. 
 53.26     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 53.27  fiscal year 2002 and thereafter.  
 53.28     Sec. 8.  Minnesota Statutes 1998, section 123B.63, 
 53.29  subdivision 3, is amended to read: 
 53.30     Subd. 3.  [FACILITIES ~~DOWN PAYMENT LEVY~~ REVENUE 
 53.31  REFERENDUM.] A district may ~~levy the local tax rate~~ receive 
 53.32  revenue under the facilities equalization program for the 
 53.33  purposes of financing the acquisition and betterment of a school 
 53.34  construction project or to pay for the lease on a new school 
 53.35  building used primarily for regular kindergarten, elementary, or 
 53.36  secondary instruction if authorization is approved by a majority 
 54.1   of the electors voting on the question to provide funds for ~~a~~ 
 54.2   ~~down payment for~~ an approved project.  The election must take 
 54.3   place no more than five years before the estimated date of 
 54.4   commencement of the project.  The referendum must be held on a 
 54.5   date set by the board.  A referendum for a project ~~not~~ receiving 
 54.6   ~~a positive~~ an unfavorable review and comment by the commissioner 
 54.7   under section 123B.71 must be approved by at least 60 percent of 
 54.8   the voters voting on the question at the election.  The 
 54.9   referendum may be called by the school board and may be held: 
 54.10     (1) separately, before an election for the issuance of 
 54.11  obligations for the project under chapter 475; or 
 54.12     (2) in conjunction with an election for the issuance of 
 54.13  obligations for the project under chapter 475; or 
 54.14     (3) notwithstanding section 475.59, as a conjunctive 
 54.15  question authorizing both the ~~down payment levy~~ revenue and the 
 54.16  issuance of obligations for the project under chapter 475.  Any 
 54.17  obligations authorized for a project may be issued within five 
 54.18  years of the date of the election. 
 54.19     The ballot must provide a general description of the 
 54.20  proposed project, state the estimated total cost of the project, 
 54.21  state whether the project has received a positive or ~~negative~~ 
 54.22  unfavorable review and comment from the commissioner, state the 
 54.23  maximum amount of the ~~down payment~~ equalized facility levy as a 
 54.24  percentage of net tax capacity, state the amount that will be 
 54.25  raised by that local tax rate in the first year it is to be 
 54.26  levied, and state the maximum number of years that the levy 
 54.27  authorization will apply. 
 54.28     The ballot must contain a textual portion with the 
 54.29  information required in this section and a question stating 
 54.30  substantially the following: 
 54.31     "Shall the ~~down payment~~ facility levy proposed by the board 
 54.32  of .......... School District No. .......... be approved?" 
 54.33     If approved, the amount provided by the approved local tax 
 54.34  rate applied to the net tax capacity for the year preceding the 
 54.35  year the levy is certified may be certified for the number of 
 54.36  years approved. 
 55.1      In the event a conjunctive question proposes to authorize 
 55.2   both the ~~down payment~~ equalized facilities levy, under section 
 55.3   123B.53, and the issuance of obligations for the project, 
 55.4   appropriate language authorizing the issuance of obligations 
 55.5   must also be included in the question.  
 55.6      The district must notify the commissioner of the results of 
 55.7   the referendum. 
 55.8      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 55.9   fiscal year 2002 and thereafter.  
 55.10     Sec. 9.  Minnesota Statutes 1998, section 123B.63, 
 55.11  subdivision 4, is amended to read: 
 55.12     Subd. 4.  [EXCESS BUILDING CONSTRUCTION FUND LEVY 
 55.13  PROCEEDS.] (a) For the purpose of a school construction project, 
 55.14  any funds ~~remaining in the down payment account~~ that are not 
 55.15  applied to the payment of the costs of the approved project 
 55.16  before its final completion must be transferred to the 
 55.17  district's debt redemption fund.  
 55.18     (b) For the purposes of a leased building, any funds that 
 55.19  are applied to the payment of the lease at the termination of 
 55.20  the lease must be transferred to the district's debt redemption 
 55.21  fund. 
 55.22     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 55.23  fiscal year 2002 and thereafter.  
 55.24     Sec. 10.  Minnesota Statutes 1998, section 123B.71, 
 55.25  subdivision 10, is amended to read: 
 55.26     Subd. 10.  [INDOOR AIR QUALITY.] A school board seeking a 
 55.27  review and comment under this section must submit information 
 55.28  demonstrating to the commissioner's satisfaction that: 
 55.29     (1) indoor air quality issues have been considered; and 
 55.30     (2) the architects and engineers designing the facility 
 55.31  will have professional liability insurance.  
 55.32     Plans submitted under subdivisions 3 and 4 for projects to 
 55.33  be placed in service after July 1, 2002, must demonstrate that: 
 55.34     (a) the facility's heating, ventilation, and air 
 55.35  conditioning systems meet or exceed the standards established by 
 55.36  code; and 
 56.1      (b) the facility's design will provide the ability for 
 56.2   monitoring of outdoor airflow and total airflow of ventilation 
 56.3   systems in new school facilities. 
 56.4      Sec. 11.  Minnesota Statutes 1998, section 123B.72, 
 56.5   subdivision 3, is amended to read: 
 56.6      Subd. 3.  [CERTIFICATION.] Prior to occupying or 
 56.7   reoccupying a school facility affected by this section, a school 
 56.8   board or its designee shall submit a document prepared by a 
 56.9   system inspector to the building official or to the 
 56.10  commissioner, verifying that the facility's heating, 
 56.11  ventilation, and air conditioning system has been installed and 
 56.12  operates according to design specifications and code, according 
 56.13  to section 123B.71, subdivision 10, clause (3).  A systems 
 56.14  inspector shall also verify that the facility's design will 
 56.15  provide the ability for monitoring of outdoor airflow and total 
 56.16  airflow of ventilation systems in new school facilities and that 
 56.17  any heating, ventilation, or air conditioning system that is 
 56.18  installed or modified for a project subject to this section must 
 56.19  provide a filtration system with a current ASHRAE standard. 
 56.20     <b>EFFECTIVE DATE:</b>  This section is effective on July 1, 2002. 
 56.21     Sec. 12.  [125B.25] [TELECOMMUNICATIONS ACCESS REVENUE.] 
 56.22     Subdivision 1.  [COSTS TO BE SUBMITTED.] A district shall 
 56.23  submit its outstanding ongoing or recurring telecommunications 
 56.24  access costs associated with data lines and video links to the 
 56.25  department of children, families, and learning.  Costs of 
 56.26  telecommunications hardware or equipment must not be included in 
 56.27  the costs submitted by districts to the department.  A district 
 56.28  may include installation charges associated with new lines or 
 56.29  upgraded lines, but may not include costs of hardware or 
 56.30  equipment. 
 56.31     Subd. 2.  [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 
 56.32  recurring telecommunications access costs submitted to the 
 56.33  department by each district under this section are limited to 
 56.34  the operation costs equal to the greater of: 
 56.35     (1) one data line or video link that relies on a transport 
 56.36  medium that operates at a minimum speed of 1.544 megabytes per 
 57.1   second for each elementary school, middle school, or high school 
 57.2   under section 120A.05, subdivisions 9, 11, and 13; or 
 57.3      (2) one data line or video link that relies on a transport 
 57.4   medium that operates at a minimum speed of 1.544 megabytes per 
 57.5   second for each district. 
 57.6      (b) A district may include costs associated with 
 57.7   cooperative arrangements with other post-secondary institutions, 
 57.8   school districts, and community and regional libraries in its 
 57.9   geographic region.  A district may continue to purchase its 
 57.10  ongoing or recurring telecommunications access services through 
 57.11  existing contracts. 
 57.12     Subd. 3.  [E-RATES.] To be eligible for revenue under this 
 57.13  section, a district is required to file an e-rate application 
 57.14  either separately or through their telecommunications grant 
 57.15  cluster.  Discounts received on telecommunications expenditures 
 57.16  shall be used to offset the amount submitted to the department 
 57.17  for per pupil revenue under this section. 
 57.18     Subd. 4.  [CALCULATION OF COSTS.] By February 15 of each 
 57.19  year, the commissioner shall calculate the ongoing or recurring 
 57.20  telecommunications access cost per adjusted marginal cost pupil 
 57.21  unit submitted by each school district under subdivisions 1 and 
 57.22  2 for the year in which the data is submitted minus the reserved 
 57.23  revenue under section 126C.10, subdivision 13, paragraph (d).  
 57.24  Districts shall submit their anticipated ongoing or recurring 
 57.25  telecommunications access costs, adjusted for any e-rate revenue 
 57.26  received to the department based on contracts entered into by 
 57.27  the district for that school year.  Districts shall also submit 
 57.28  their actual telecommunications access costs by August 15 of 
 57.29  each year and adjusted for any e-rate revenue received to the 
 57.30  department as prescribed by the commissioner. 
 57.31     Subd. 5.  [DISTRICT REVENUE.] A district shall receive an 
 57.32  amount equal to the amount as calculated by the commissioner 
 57.33  under subdivision 4, times the adjusted marginal cost pupil 
 57.34  units for that year, times 80 percent. 
 57.35     Subd. 6.  [REVENUE FOR CHARTER SCHOOLS.] Each charter 
 57.36  school shall receive revenue equal to the greater of: 
 58.1      (1) the per marginal cost pupil unit amount for the 
 58.2   district in which the charter school is located as determined by 
 58.3   the commissioner according to subdivision 4; or 
 58.4      (2) $5; 
 58.5   times the adjusted marginal cost pupil units for that year, 
 58.6   times 80 percent. 
 58.7      Subd. 7.  [REVENUE FOR NONPUBLIC SCHOOLS.] Notwithstanding 
 58.8   any other law to the contrary, each nonpublic school, not 
 58.9   including home schools, shall receive an amount equal to the 
 58.10  greater of: 
 58.11     (1) the per marginal cost pupil unit amount for the 
 58.12  district in which the nonpublic school is located as determined 
 58.13  by the commissioner according to subdivision 4; or 
 58.14     (2) $5; 
 58.15  times the number of pupils who are enrolled at the nonpublic 
 58.16  school as of October 1 of the current school year. 
 58.17     Subd. 8.  [REIMBURSEMENT CRITERIA.] The commissioner, 
 58.18  working with the commissioner of administration and the 
 58.19  Minnesota education telecommunications council, shall develop 
 58.20  reimbursement criteria that schools must address when submitting 
 58.21  ongoing or recurring telecommunications costs as determined in 
 58.22  subdivisions 1 and 2.  The criteria must assist schools to 
 58.23  procure telecommunications access services in the most efficient 
 58.24  and effective manner possible.  The criteria may also determine 
 58.25  if a district is able to seek a lesser cost alternative for its 
 58.26  geographical area and the commissioner of children, families, 
 58.27  and learning shall use that information to adjust the 
 58.28  reimbursement amount to the district. 
 58.29     Subd. 9.  [EXPIRATION.] This section expires on July 1, 
 58.30  2003. 
 58.31     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 58.32  126C.10, subdivision 13, is amended to read: 
 58.33     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 58.34  fiscal year 2000 and thereafter, total operating capital revenue 
 58.35  for a district equals the amount determined under paragraph (b) 
 58.36  or (c), plus ~~$68~~ $73 times the adjusted marginal cost pupil 
 59.1   units for the school year.  The revenue must be placed in a 
 59.2   reserved account in the general fund and may only be used 
 59.3   according to paragraph (d) or subdivision 14. 
 59.4      (b) For fiscal years 2000 and later, capital revenue for a 
 59.5   district equals $100 times the district's maintenance cost index 
 59.6   times its adjusted marginal cost pupil units for the school year.
 59.7      (c) For fiscal years 2000 and later, the revenue for a 
 59.8   district that operates a program under section 124D.128, is 
 59.9   increased by an amount equal to $30 times the number of marginal 
 59.10  cost pupil units served at the site where the program is 
 59.11  implemented. 
 59.12     (d) For fiscal years 2001, 2002, and 2003, the district 
 59.13  must reserve an amount equal to $5 per adjusted marginal cost 
 59.14  pupil unit for telecommunication access costs.  Reserve revenue 
 59.15  under this paragraph must first be used to pay for ongoing or 
 59.16  recurring telecommunication access costs, including access to 
 59.17  data lines, video lines, or Internet access.  Any revenue 
 59.18  remaining after covering all ongoing or recurring access costs 
 59.19  may be used for computer hardware or equipment. 
 59.20     Sec. 14.  Minnesota Statutes 1998, section 126C.40, 
 59.21  subdivision 1, is amended to read: 
 59.22     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 59.23  district finds it economically advantageous to rent or lease a 
 59.24  building or land for any instructional purposes or for school 
 59.25  storage or furniture repair, and it determines that the 
 59.26  operating capital revenue authorized under section 126C.10, 
 59.27  subdivision 13, is insufficient for this purpose, it may apply 
 59.28  to the commissioner for permission to ~~make an additional capital~~ 
 59.29  ~~expenditure levy~~ increase its equalized facilities revenue under 
 59.30  section 123B.53, subdivision 5, for this purpose.  An 
 59.31  application for permission to ~~levy under this subdivision~~ 
 59.32  increase the equalized facilities revenue must contain financial 
 59.33  justification for the proposed ~~levy~~ increase, the terms and 
 59.34  conditions of the proposed lease, and a description of the space 
 59.35  to be leased and its proposed use.  
 59.36     (b) The criteria for approval of applications to levy under 
 60.1   this subdivision must include:  the reasonableness of the price, 
 60.2   the appropriateness of the space to the proposed activity, the 
 60.3   feasibility of transporting pupils to the leased building or 
 60.4   land, conformity of the lease to the laws and rules of the state 
 60.5   of Minnesota, and the appropriateness of the proposed lease to 
 60.6   the space needs and the financial condition of the district.  
 60.7   The commissioner must not authorize ~~a levy~~ revenue under this 
 60.8   subdivision in an amount greater than the cost to the district 
 60.9   of renting or leasing a building or land for approved purposes.  
 60.10  The proceeds of this levy must not be used for custodial or 
 60.11  other maintenance services.  A district may not ~~levy~~ receive 
 60.12  revenue under this subdivision for the purpose of leasing or 
 60.13  renting a district-owned building or site to itself. 
 60.14     (c) For agreements finalized after July 1, 1997, a district 
 60.15  may not ~~levy~~ receive revenue under this subdivision for the 
 60.16  purpose of leasing:  (1) a newly constructed building used 
 60.17  primarily for regular kindergarten, elementary, or secondary 
 60.18  instruction; or (2) a newly constructed building addition or 
 60.19  additions used primarily for regular kindergarten, elementary, 
 60.20  or secondary instruction that contains more than 20 percent of 
 60.21  the square footage of the previously existing building. 
 60.22     (d) The total ~~levy~~ revenue under this subdivision for a 
 60.23  district for any year must not exceed $100 times the resident 
 60.24  pupil units for the fiscal year to which the levy is 
 60.25  attributable. 
 60.26     (e) For agreements for which a review and comment have been 
 60.27  submitted to the department of children, families, and learning 
 60.28  after April 1, 1998, the term "instructional purpose" as used in 
 60.29  this subdivision excludes expenditures on stadiums. 
 60.30     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 60.31  fiscal year 2002 and thereafter.  
 60.32     Sec. 15.  Minnesota Statutes 1998, section 126C.40, 
 60.33  subdivision 1, is amended to read: 
 60.34     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 60.35  district finds it economically advantageous to rent or lease a 
 60.36  building or land for any instructional purposes or for school 
 61.1   storage or furniture repair, and it determines that the 
 61.2   operating capital revenue authorized under section 126C.10, 
 61.3   subdivision 13, is insufficient for this purpose, it may apply 
 61.4   to the commissioner for permission to make an additional capital 
 61.5   expenditure levy for this purpose.  An application for 
 61.6   permission to levy under this subdivision must contain financial 
 61.7   justification for the proposed levy, the terms and conditions of 
 61.8   the proposed lease, and a description of the space to be leased 
 61.9   and its proposed use.  
 61.10     (b) The criteria for approval of applications to levy under 
 61.11  this subdivision must include:  the reasonableness of the price, 
 61.12  the appropriateness of the space to the proposed activity, the 
 61.13  feasibility of transporting pupils to the leased building or 
 61.14  land, conformity of the lease to the laws and rules of the state 
 61.15  of Minnesota, and the appropriateness of the proposed lease to 
 61.16  the space needs and the financial condition of the district.  
 61.17  The commissioner must not authorize a levy under this 
 61.18  subdivision in an amount greater than the cost to the district 
 61.19  of renting or leasing a building or land for approved purposes.  
 61.20  The proceeds of this levy must not be used for custodial or 
 61.21  other maintenance services.  A district may not levy under this 
 61.22  subdivision for the purpose of leasing or renting a 
 61.23  district-owned building or site to itself. 
 61.24     (c) For agreements finalized after July 1, 1997, a district 
 61.25  may not levy under this subdivision for the purpose of leasing:  
 61.26  (1) a newly constructed building used primarily for regular 
 61.27  kindergarten, elementary, or secondary instruction; or (2) a 
 61.28  newly constructed building addition or additions used primarily 
 61.29  for regular kindergarten, elementary, or secondary instruction 
 61.30  that contains more than 20 percent of the square footage of the 
 61.31  previously existing building. 
 61.32     (d) Notwithstanding paragraph (b), a district may levy 
 61.33  under this subdivision for the purpose of leasing or renting a 
 61.34  district-owned building or site to itself only if the amount is 
 61.35  needed by the district to make payments required by a lease 
 61.36  purchase agreement, installment purchase agreement, or other 
 62.1   deferred payments agreement authorized by law, and the levy 
 62.2   meets the requirements of paragraph (c).  A levy authorized for 
 62.3   a district by the commissioner under this paragraph may be in 
 62.4   the amount needed by the district to make payments required by a 
 62.5   lease purchase agreement, installment purchase agreement, or 
 62.6   other deferred payments agreement authorized by law, provided 
 62.7   that any agreement include a provision giving the school 
 62.8   districts the right to terminate the agreement annually without 
 62.9   penalty. 
 62.10     (e) The total levy under this subdivision for a district 
 62.11  for any year must not exceed $100 times the resident pupil units 
 62.12  for the fiscal year to which the levy is attributable. 
 62.13     ~~(e)~~ (f) For agreements for which a review and comment have 
 62.14  been submitted to the department of children, families, and 
 62.15  learning after April 1, 1998, the term "instructional purpose" 
 62.16  as used in this subdivision excludes expenditures on stadiums. 
 62.17     (g) For purposes of this subdivision, any reference to 
 62.18  building or land includes personal property. 
 62.19     (h) The commissioner of children, families, and learning 
 62.20  may authorize a school district to exceed the limit in paragraph 
 62.21  (e) if the school district petitions the commissioner for 
 62.22  approval.  The commissioner shall grant approval to a school 
 62.23  district to exceed the limit in paragraph (e) for not more than 
 62.24  five years if the district meets the following criteria: 
 62.25     (1) the school district has been experiencing pupil 
 62.26  enrollment growth in the preceding five years; 
 62.27     (2) the purpose of the increased levy is in the long-term 
 62.28  public interest; 
 62.29     (3) the purpose of the increased levy promotes colocation 
 62.30  of government services; and 
 62.31     (4) the purpose of the increased levy is in the long-term 
 62.32  interest of the district by avoiding over construction of school 
 62.33  facilities. 
 62.34     Sec. 16.  Minnesota Statutes 1998, section 126C.40, 
 62.35  subdivision 2, is amended to read: 
 62.36     Subd. 2.  [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 
 63.1   A district may ~~annually levy~~ increase the amount of its 
 63.2   equalized facilities revenue needed to make payments required by 
 63.3   a lease purchase agreement, installment purchase agreement, or 
 63.4   other deferred payment agreement authorized by Minnesota 
 63.5   Statutes 1989 Supplement, section 465.71, if:  
 63.6      (1) the agreement was approved by the commissioner before 
 63.7   July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
 63.8   section 275.125, subdivision 11d; or 
 63.9      (2) the district levied in 1989 for the payments. 
 63.10     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 63.11  fiscal year 2002 and thereafter.  
 63.12     Sec. 17.  Minnesota Statutes 1998, section 126C.40, 
 63.13  subdivision 3, is amended to read: 
 63.14     Subd. 3.  [COOPERATING DISTRICTS.] A district that has an 
 63.15  agreement according to section 123A.30 or 123A.32 may ~~levy~~ 
 63.16  increase its equalized facilities revenue under section 123B.53, 
 63.17  subdivision 5, for the repair costs, as approved by the 
 63.18  department of a building located in another district that is a 
 63.19  party to the agreement. 
 63.20     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 63.21  fiscal year 2002 and thereafter.  
 63.22     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 63.23  126C.40, subdivision 6, is amended to read: 
 63.24     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
 63.25  application to, and approval by, the commissioner in accordance 
 63.26  with the procedures and limits in subdivision 1, paragraphs (a) 
 63.27  and (b), a district, as defined in this subdivision, may: 
 63.28     (1) purchase real or personal property under an installment 
 63.29  contract or may lease real or personal property with an option 
 63.30  to purchase under a lease purchase agreement, by which 
 63.31  installment contract or lease purchase agreement title is kept 
 63.32  by the seller or vendor or assigned to a third party as security 
 63.33  for the purchase price, including interest, if any; and 
 63.34     (2) annually levy the amounts necessary to pay the 
 63.35  district's obligations under the installment contract or lease 
 63.36  purchase agreement. 
 64.1      (b) The obligation created by the installment contract or 
 64.2   the lease purchase agreement must not be included in the 
 64.3   calculation of net debt for purposes of section 475.53, and does 
 64.4   not constitute debt under other law.  An election is not 
 64.5   required in connection with the execution of the installment 
 64.6   contract or the lease purchase agreement. 
 64.7      (c) The proceeds of the levy authorized by this subdivision 
 64.8   must not be used to acquire a facility to be primarily used for 
 64.9   athletic or school administration purposes. 
 64.10     (d) For the purposes of this subdivision, "district" means: 
 64.11     (1) a school district required to have a comprehensive plan 
 64.12  for the elimination of segregation whose plan has been 
 64.13  determined by the commissioner to be in compliance with 
 64.14  department of children, families, and learning rules relating to 
 64.15  equality of educational opportunity and school desegregation and 
 64.16  for a district qualifying for revenue under section 124D.86, 
 64.17  subdivision 3, clause (4), where the property subject to the 
 64.18  levy authority is determined by the commissioner to contribute 
 64.19  to implementation of the desegregation plan; or 
 64.20     (2) a school district that participates in a joint program 
 64.21  for interdistrict desegregation with a district defined in 
 64.22  clause (1) if the facility acquired under this subdivision is to 
 64.23  be primarily used for the joint program and the commissioner 
 64.24  determines that the joint programs are being undertaken to 
 64.25  implement the districts' desegregation plan. 
 64.26     (e) Notwithstanding subdivision 1, the prohibition against 
 64.27  a levy by a district to lease or rent a district-owned building 
 64.28  to itself does not apply to levies otherwise authorized by this 
 64.29  subdivision. 
 64.30     (f) For the purposes of this subdivision, any references in 
 64.31  subdivision 1 to building or land shall include personal 
 64.32  property. 
 64.33     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 64.34  126C.40, subdivision 6, is amended to read: 
 64.35     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
 64.36  application to, and approval by, the commissioner in accordance 
 65.1   with the procedures and limits in subdivision 1, paragraphs (a) 
 65.2   and (b), a district, as defined in this subdivision, may: 
 65.3      (1) purchase real or personal property under an installment 
 65.4   contract or may lease real or personal property with an option 
 65.5   to purchase under a lease purchase agreement, by which 
 65.6   installment contract or lease purchase agreement title is kept 
 65.7   by the seller or vendor or assigned to a third party as security 
 65.8   for the purchase price, including interest, if any; and 
 65.9      (2) annually ~~levy~~ increase its equalized facilities revenue 
 65.10  under section 123B.53, subdivision 5, by the amounts necessary 
 65.11  to pay the district's obligations under the installment contract 
 65.12  or lease purchase agreement. 
 65.13     (b) The obligation created by the installment contract or 
 65.14  the lease purchase agreement must not be included in the 
 65.15  calculation of net debt for purposes of section 475.53, and does 
 65.16  not constitute debt under other law.  An election is not 
 65.17  required in connection with the execution of the installment 
 65.18  contract or the lease purchase agreement. 
 65.19     (c) The proceeds of the ~~levy~~ equalized facilities revenue 
 65.20  increase authorized by this subdivision must not be used to 
 65.21  acquire a facility to be primarily used for athletic or school 
 65.22  administration purposes. 
 65.23     (d) For the purposes of this subdivision, "district" means: 
 65.24     (1) a school district required to have a comprehensive plan 
 65.25  for the elimination of segregation whose plan has been 
 65.26  determined by the commissioner to be in compliance with 
 65.27  department of children, families, and learning rules relating to 
 65.28  equality of educational opportunity and school desegregation; or 
 65.29     (2) a school district that participates in a joint program 
 65.30  for interdistrict desegregation with a district defined in 
 65.31  clause (1) if the facility acquired under this subdivision is to 
 65.32  be primarily used for the joint program. 
 65.33     (e) Notwithstanding subdivision 1, the prohibition against 
 65.34  ~~a levy by~~ a district ~~to lease~~ receiving revenue for the purpose 
 65.35  of leasing or ~~rent~~ renting a district-owned building to itself 
 65.36  does not apply to ~~levies~~ revenues otherwise authorized by this 
 66.1   subdivision. 
 66.2      (f) For the purposes of this subdivision, any references in 
 66.3   subdivision 1 to building or land shall include personal 
 66.4   property. 
 66.5      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 66.6   fiscal year 2002 and thereafter. 
 66.7      Sec. 20.  Minnesota Statutes 1998, section 126C.69, 
 66.8   subdivision 15, is amended to read: 
 66.9      Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
 66.10  outstanding state loan must not issue and sell any bonds on the 
 66.11  public market, except to refund state loans, unless it agrees to 
 66.12  make the maximum effort debt service levy in each later year at 
 66.13  the higher rate provided in section 126C.63, subdivision 8, and 
 66.14  unless it schedules the maturities of the bonds according to 
 66.15  section 475.54, subdivision 2.  A district that refunds bonds at 
 66.16  a lower interest rate may continue to make the maximum effort 
 66.17  debt service levy in each later year at the current rate 
 66.18  provided in section 126C.63, subdivision 8, if the district can 
 66.19  demonstrate to the commissioner's satisfaction that the 
 66.20  district's repayments of the state loan will not be reduced 
 66.21  below the previous year's level.  The district must report each 
 66.22  sale to the commissioner. 
 66.23     After a district's capital loan has been outstanding for ~~20~~ 
 66.24  30 years, the district must not issue bonds on the public market 
 66.25  except to refund the loan. 
 66.26     Sec. 21.  Laws 1998, chapter 404, section 5, subdivision 
 66.27  11, as amended by Laws 1999, chapter 26, section 1, is amended 
 66.28  to read: 
 66.29  Subd. 11.  McLeod West               
 66.30              School District No. 2887                    500,000
 66.31  For a grant to the McLeod West school 
 66.32  district No. 2887, to ~~design and~~ 
 66.33  ~~acquire land for a new grade 7 through~~ 
 66.34  ~~12~~ remodel an educational facility.  
 66.35     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 66.36  following final enactment. 
 66.37     Sec. 22.  Laws 1999, chapter 241, article 4, section 27, 
 66.38  subdivision 2, is amended to read: 
 67.1      Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 67.2   aid according to Minnesota Statutes, section 123B.57, 
 67.3   subdivision 5: 
 67.4        ~~$14,528,000~~ $14,015,000   .....     2000 
 67.5        ~~$14,957,000~~ $14,450,000   .....     2001 
 67.6      The 2000 appropriation includes $1,415,000 for 1999 and 
 67.7   ~~$13,113,000~~ $12,812,000 for 2000.  
 67.8      The 2001 appropriation includes ~~$1,456,000~~ $1,423,000 for 
 67.9   2000 and ~~$13,501,000~~ $13,365,000 for 2001.  
 67.10     Sec. 23.  Laws 1999, chapter 241, article 4, section 27, 
 67.11  subdivision 3, is amended to read: 
 67.12     Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 67.13  according to Minnesota Statutes, section 123B.53, subdivision 6: 
 67.14       ~~$33,165,000~~ $33,141,000   .....     2000
 67.15       ~~$32,084,000~~ $29,400,000   .....     2001
 67.16     The 2000 appropriation includes $3,842,000 for 1999 and 
 67.17  ~~$29,323,000~~ $29,299,000 for 2000. 
 67.18     The 2001 appropriation includes ~~$3,256,000~~ $3,255,000 for 
 67.19  2000 and ~~$28,828,000~~ $25,841,000 for 2001. 
 67.20     Sec. 24.  Laws 1999, chapter 241, article 4, section 27, 
 67.21  subdivision 4, is amended to read: 
 67.22     Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
 67.23  interactive television (ITV) aid under Minnesota Statutes, 
 67.24  section 126C.40, subdivision 4: 
 67.25       ~~$4,197,000~~ $4,194,000    .....     2000
 67.26       ~~$2,851,000~~ $2,761,000    .....     2001
 67.27     The 2000 appropriation includes $405,000 for 1999 and 
 67.28  ~~$3,792,000~~ $3,784,000 for 2000. 
 67.29     The 2001 appropriation includes $421,000 for 2000 and 
 67.30  ~~$2,430,000~~ $2,338,000 for 2001. 
 67.31     Sec. 25.  Laws 1999, chapter 241, article 4, section 27, 
 67.32  subdivision 5, is amended to read: 
 67.33     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 67.34  alternative facilities bonding aid, according to Minnesota 
 67.35  Statutes, section 123B.59: 
 67.36       ~~$19,058,000~~ $18,920,000   .....     2000 
 68.1        ~~$19,286,000~~ $19,134,000   .....     2001 
 68.2      The 2000 appropriation includes $1,700,000 for 2000 and 
 68.3   ~~$17,358,000~~ $17,220,000 for 2001. 
 68.4      The 2001 appropriation includes ~~$1,928,000~~ $1,914,000 for 
 68.5   2000 and ~~$17,358,000~~ $17,288,000 for 2001. 
 68.6      Sec. 26.  [ONE-TIME FACILITIES AID.] 
 68.7      (a) For fiscal year 2001 only, a district's one-time 
 68.8   facilities aid is equal to: 
 68.9      (1) $11.20 times the adjusted marginal cost pupil units for 
 68.10  the school year; plus 
 68.11     (2) $25 times the adjusted marginal cost pupil units for 
 68.12  the school year for a district that does not qualify for 
 68.13  alternative facilities bonding under Minnesota Statutes, section 
 68.14  123B.59, or under Laws 1999, chapter 241, article 4, section 25. 
 68.15     (b) Aid received under this section must be used for 
 68.16  deferred maintenance, to make accessibility improvements, or to 
 68.17  make fire, safety, or health repairs. 
 68.18     Sec. 27.  [PROJECT QUALIFICATION; TRITON.] 
 68.19     Subdivision 1.  [ELIGIBILITY.] Notwithstanding Minnesota 
 68.20  Statutes, section 123B.57, independent school district No. 2125, 
 68.21  Triton, may include all unreimbursed costs associated with the 
 68.22  testing, evaluation, removal, and replacement of building 
 68.23  fixtures and equipment necessitated by the discovery of mold in 
 68.24  a school building in its health and safety plan not to exceed 
 68.25  $400,000. 
 68.26     Subd. 2.  [COST RECOVERY.] Independent school district No. 
 68.27  2125, Triton, must pursue all reasonable options to recover 
 68.28  expenses resulting from the mold from its insurance company, the 
 68.29  subcontractors, and any other parties responsible for the damage 
 68.30  caused by the mold. 
 68.31     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 68.32  following final enactment. 
 68.33     Sec. 28.  [MAXIMUM EFFORT CAPITAL LOANS.] 
 68.34     Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 38, RED 
 68.35  LAKE.] $11,166,000 is appropriated to the commissioner of 
 68.36  children, families, and learning to make a capital loan to 
 69.1   independent school district No. 38, Red Lake.  $11,166,296 is 
 69.2   approved for a capital loan to independent school district No. 
 69.3   38, Red Lake. 
 69.4      Subd. 2.  [INDEPENDENT SCHOOL DISTRICT NO. 115, CASS 
 69.5   LAKE.] $7,505,000 is appropriated to the commissioner of 
 69.6   children, families, and learning to make a capital loan to 
 69.7   independent school district No. 115, Cass Lake.  $7,505,000 is 
 69.8   approved for a capital loan to independent school district No. 
 69.9   115, Cass Lake. 
 69.10     Subd. 3.  [INDEPENDENT SCHOOL DISTRICT NO. 299, 
 69.11  CALEDONIA.] $14,134,000 is appropriated to the commissioner of 
 69.12  children, families, and learning to make a capital loan to 
 69.13  independent school district No. 299, Caledonia.  $14,133,788 is 
 69.14  approved for a capital loan to independent school district No. 
 69.15  299, Caledonia. 
 69.16     Subd. 4.  [INDEPENDENT SCHOOL DISTRICT NO. 306, 
 69.17  LAPORTE.] $7,200,000 is appropriated to the commissioner of 
 69.18  children, families, and learning to make a capital loan to 
 69.19  independent school district No. 306, LaPorte.  $7,200,000 is 
 69.20  approved for a capital loan to independent school district No. 
 69.21  306, LaPorte.  
 69.22     Subd. 5.  [INDEPENDENT SCHOOL DISTRICT NO. 914, 
 69.23  ULEN-HITTERDAHL.] $4,025,000 is appropriated to the commissioner 
 69.24  of children, families, and learning to make a capital loan to 
 69.25  independent school district No. 914, Ulen-Hitterdahl.  
 69.26  $4,025,000 is approved for a capital loan to independent school 
 69.27  district No. 914, Ulen-Hitterdahl. 
 69.28     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 69.29  following final enactment. 
 69.30     Sec. 29.  [COMMISSIONER RECOMMENDATION.] 
 69.31     By February 1, 2003, the commissioner of children, 
 69.32  families, and learning, in cooperation with the commissioner of 
 69.33  administration and the Minnesota education telecommunication 
 69.34  council, shall recommend to the legislature a permanent method 
 69.35  for funding telecommunications access as part of the general 
 69.36  education revenue formula under Minnesota Statutes, section 
 70.1   126C.10.  The commissioner shall consider the following in 
 70.2   making the recommendation: 
 70.3      (1) the range of costs for providing a minimum level of 
 70.4   telecommunications access for all students; 
 70.5      (2) the flexibility that is necessary to accommodate 
 70.6   emerging technological advances in the telecommunications field; 
 70.7   and 
 70.8      (3) other related efforts within the state, including the 
 70.9   state's higher education and public library systems. 
 70.10     Sec. 30.  [REVISOR'S INSTRUCTION.] 
 70.11     In subsequent editions of Minnesota Statutes, the revisor 
 70.12  of statutes shall change the headnote on section 123B.63 to 
 70.13  "BUILDING CONSTRUCTION AND LEASE PROGRAM." 
 70.14     Sec. 31.  [FACILITY CONSOLIDATION IMPACT REVENUE.] 
 70.15     For fiscal year 2002 only, a school district that, as a 
 70.16  result of the consolidation of facility levies in this act, 
 70.17  experiences an increase in overall district levy, shall receive 
 70.18  an amount of aid equal to the amount of increased levy.  The 
 70.19  property tax levy for taxes payable in 2001 shall be reduced by 
 70.20  the amount of the state aid. 
 70.21     Sec. 32.  [CHISHOLM SCHOOL DISTRICT BONDS.] 
 70.22     Subdivision 1.  [AUTHORIZATION.] Independent school 
 70.23  district No. 695, Chisholm, may issue bonds in an aggregate 
 70.24  principal amount not exceeding $4,250,000. 
 70.25     Subd. 2.  [USES; PROCESS.] The bonds authorized under 
 70.26  subdivision 1 may be issued in addition to any bonds already 
 70.27  issued or authorized.  The proceeds of the bonds shall be used 
 70.28  to provide funds to design, construct, equip, furnish, remodel, 
 70.29  rehabilitate, and acquire land for school facilities and 
 70.30  buildings and to pay any architect, engineer and legal fees 
 70.31  incidental to those purposes or to the sale of bonds.  Except as 
 70.32  permitted by this section, the bonds shall be authorized, 
 70.33  issued, sold, executed, and delivered in the manner provided by 
 70.34  Minnesota Statutes, chapter 475.  A referendum on the question 
 70.35  of issuing the bonds authorized under subdivision 1 is 
 70.36  required.  A resolution of the board levying taxes for the 
 71.1   payment of the bonds and interest on them shall be deemed to be 
 71.2   in compliance with the provisions of Minnesota Statutes, chapter 
 71.3   475, with respect to the levying of taxes for their payment. 
 71.4      Subd. 3.  [APPROPRIATION.] There is annually appropriated 
 71.5   from the distribution of taconite production tax revenues to the 
 71.6   taconite environmental protection fund pursuant to Minnesota 
 71.7   Statutes, section 298.28, subdivision 11, and to the northeast 
 71.8   Minnesota economic protection trust pursuant to Minnesota 
 71.9   Statutes, section 298.28, subdivisions 9 and 11, in equal 
 71.10  shares, an amount sufficient to pay when due 80 percent of the 
 71.11  principal and interest on the bonds issued under subdivision 1.  
 71.12  If the annual distribution to the northeast Minnesota economic 
 71.13  protection trust is insufficient to pay its share after 
 71.14  fulfilling any obligations of the trust under Minnesota 
 71.15  Statutes, section 298.225 or 298.293, the deficiency shall be 
 71.16  appropriated from the taconite environmental protection fund. 
 71.17     Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
 71.18  authority of this section shall be the general obligations of 
 71.19  the school district, for which its full faith and credit and 
 71.20  unlimited taxing powers shall be pledged.  If there are any 
 71.21  deficiencies in the amount received under subdivision 3, they 
 71.22  shall be satisfied by general levies, not subject to limit, on 
 71.23  all taxable properties in the district in accordance with 
 71.24  Minnesota Statutes, section 475.74.  If any deficiency levies 
 71.25  are necessary, the school board may effect a temporary loan or 
 71.26  loans on certificates of indebtedness issued in anticipation of 
 71.27  them to meet payments of principal or interest on the bonds due 
 71.28  or about to become due. 
 71.29     Subd. 5.  [DISTRICT LEVY.] The school board of the school 
 71.30  district authorized to issue bonds under subdivision 1 shall by 
 71.31  resolution levy on all property in the school district subject 
 71.32  to the general ad valorem school tax levies, and not subject to 
 71.33  taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
 71.34  direct annual ad valorem tax for each year of the term of the 
 71.35  bonds in amounts that, if collected in full, will produce the 
 71.36  amounts needed to meet when due 20 percent of the principal and 
 72.1   interest payments on the bonds.  A copy of the resolution shall 
 72.2   be filed, and the necessary taxes shall be extended, assessed, 
 72.3   collected, and remitted in accordance with Minnesota Statutes, 
 72.4   section 475.61. 
 72.5      Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
 72.6   section shall be disregarded in the calculation of any other tax 
 72.7   levies or limits on tax levies provided by other law. 
 72.8      Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
 72.9   authority of this section notwithstanding any limitations upon 
 72.10  the indebtedness of a district, and their amounts shall not be 
 72.11  included in computing the indebtedness of a district for any 
 72.12  purpose, including the issuance of subsequent bonds and the 
 72.13  incurring of subsequent indebtedness. 
 72.14     Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
 72.15  authorized in subdivision 3 terminates upon payment or maturity 
 72.16  of the last of the bonds issued under this section. 
 72.17     Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
 72.18  under this section after April 30, 2002, unless they are issued 
 72.19  under a contract in effect on or before April 30, 2002. 
 72.20     Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
 72.21  independent school district No. 695 the day after its governing 
 72.22  body complies with Minnesota Statutes, section 645.021, 
 72.23  subdivision 3. 
 72.24     Sec. 33.  [GREENWAY-COLERAINE SCHOOL DISTRICT BONDS.] 
 72.25     Subdivision 1.  [AUTHORIZATION.] Independent school 
 72.26  district No. 316, Greenway-Coleraine, may issue bonds in an 
 72.27  aggregate principal amount not exceeding $2,500,000. 
 72.28     Subd. 2.  [USES; PROCESS.] The bonds authorized under 
 72.29  subdivision 1 may be issued in addition to any bonds already 
 72.30  issued or authorized.  The proceeds of the bonds shall be used 
 72.31  to provide funds to design, construct, equip, furnish, remodel, 
 72.32  rehabilitate, and acquire land for school facilities and 
 72.33  buildings and to pay any architect, engineer and legal fees 
 72.34  incidental to those purposes or to the sale of bonds.  Except as 
 72.35  permitted by this section, the bonds shall be authorized, 
 72.36  issued, sold, executed, and delivered in the manner provided by 
 73.1   Minnesota Statutes, chapter 475.  A referendum on the question 
 73.2   of issuing the bonds authorized under subdivision 1 is 
 73.3   required.  A resolution of the board levying taxes for the 
 73.4   payment of the bonds and interest on them shall be deemed to be 
 73.5   in compliance with the provisions of Minnesota Statutes, chapter 
 73.6   475, with respect to the levying of taxes for their payment. 
 73.7      Subd. 3.  [APPROPRIATION.] There is annually appropriated 
 73.8   from the distribution of taconite production tax revenues to the 
 73.9   taconite environmental protection fund pursuant to Minnesota 
 73.10  Statutes, section 298.28, subdivision 11, and to the northeast 
 73.11  Minnesota economic protection trust pursuant to Minnesota 
 73.12  Statutes, section 298.28, subdivisions 9 and 11, in equal 
 73.13  shares, an amount sufficient to pay when due 80 percent of the 
 73.14  principal and interest on the bonds issued under subdivision 1.  
 73.15  If the annual distribution to the northeast Minnesota economic 
 73.16  protection trust is insufficient to pay its share after 
 73.17  fulfilling any obligations of the trust under Minnesota 
 73.18  Statutes, section 298.225 or 298.293, the deficiency shall be 
 73.19  appropriated from the taconite environmental protection fund. 
 73.20     Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
 73.21  authority of this section shall be the general obligations of 
 73.22  the school district, for which its full faith and credit and 
 73.23  unlimited taxing powers shall be pledged.  If there are any 
 73.24  deficiencies in the amount received under subdivision 3, they 
 73.25  shall be satisfied by general levies, not subject to limit, on 
 73.26  all taxable properties in the district in accordance with 
 73.27  Minnesota Statutes, section 475.74.  If any deficiency levies 
 73.28  are necessary, the school board may effect a temporary loan or 
 73.29  loans on certificates of indebtedness issued in anticipation of 
 73.30  them to meet payments of principal or interest on the bonds due 
 73.31  or about to become due. 
 73.32     Subd. 5.  [DISTRICT LEVY.] The school board of the school 
 73.33  district authorized to issue bonds under subdivision 1 shall by 
 73.34  resolution levy on all property in the school district subject 
 73.35  to the general ad valorem school tax levies, and not subject to 
 73.36  taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
 74.1   direct annual ad valorem tax for each year of the term of the 
 74.2   bonds in amounts that, if collected in full, will produce the 
 74.3   amounts needed to meet when due 20 percent of the principal and 
 74.4   interest payments on the bonds.  A copy of the resolution shall 
 74.5   be filed, and the necessary taxes shall be extended, assessed, 
 74.6   collected, and remitted in accordance with Minnesota Statutes, 
 74.7   section 475.61. 
 74.8      Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
 74.9   section shall be disregarded in the calculation of any other tax 
 74.10  levies or limits on tax levies provided by other law. 
 74.11     Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
 74.12  authority of this section notwithstanding any limitations upon 
 74.13  the indebtedness of a district, and their amounts shall not be 
 74.14  included in computing the indebtedness of a district for any 
 74.15  purpose, including the issuance of subsequent bonds and the 
 74.16  incurring of subsequent indebtedness. 
 74.17     Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
 74.18  authorized in subdivision 3 terminates upon payment or maturity 
 74.19  of the last of the bonds issued under this section. 
 74.20     Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
 74.21  under this section after April 30, 2002, unless they are issued 
 74.22  under a contract in effect on or before April 30, 2002. 
 74.23     Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
 74.24  independent school district No. 316 the day after its governing 
 74.25  body complies with Minnesota Statutes, section 645.021, 
 74.26  subdivision 3. 
 74.27     Sec. 34.  [LAKE SUPERIOR SCHOOL DISTRICT BONDS.] 
 74.28     Subdivision 1.  [AUTHORIZATION.] Independent school 
 74.29  district No. 381, Lake Superior, may issue bonds in an aggregate 
 74.30  principal amount not exceeding $6,000,000. 
 74.31     Subd. 2.  [USES; PROCESS.] The bonds authorized under 
 74.32  subdivision 1 may be issued in addition to any bonds already 
 74.33  issued or authorized.  The proceeds of the bonds shall be used 
 74.34  to provide funds to design, construct, equip, furnish, remodel, 
 74.35  rehabilitate, and acquire land for school facilities and 
 74.36  buildings and to pay any architect, engineer and legal fees 
 75.1   incidental to those purposes or to the sale of bonds.  Except as 
 75.2   permitted by this section, the bonds shall be authorized, 
 75.3   issued, sold, executed, and delivered in the manner provided by 
 75.4   Minnesota Statutes, chapter 475.  A referendum on the question 
 75.5   of issuing the bonds authorized under subdivision 1 is 
 75.6   required.  A resolution of the board levying taxes for the 
 75.7   payment of the bonds and interest on them shall be deemed to be 
 75.8   in compliance with the provisions of Minnesota Statutes, chapter 
 75.9   475, with respect to the levying of taxes for their payment. 
 75.10     Subd. 3.  [APPROPRIATION.] There is annually appropriated 
 75.11  from the distribution of taconite production tax revenues to the 
 75.12  taconite environmental protection fund pursuant to Minnesota 
 75.13  Statutes, section 298.28, subdivision 11, and to the northeast 
 75.14  Minnesota economic protection trust pursuant to Minnesota 
 75.15  Statutes, section 298.28, subdivisions 9 and 11, in equal 
 75.16  shares, an amount sufficient to pay when due 80 percent of the 
 75.17  principal and interest on the bonds issued under subdivision 1.  
 75.18  If the annual distribution to the northeast Minnesota economic 
 75.19  protection trust is insufficient to pay its share after 
 75.20  fulfilling any obligations of the trust under Minnesota 
 75.21  Statutes, section 298.225 or 298.293, the deficiency shall be 
 75.22  appropriated from the taconite environmental protection fund. 
 75.23     Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
 75.24  authority of this section shall be the general obligations of 
 75.25  the school district, for which its full faith and credit and 
 75.26  unlimited taxing powers shall be pledged.  If there are any 
 75.27  deficiencies in the amount received under subdivision 3, they 
 75.28  shall be satisfied by general levies, not subject to limit, on 
 75.29  all taxable properties in the district in accordance with 
 75.30  Minnesota Statutes, section 475.74.  If any deficiency levies 
 75.31  are necessary, the school board may effect a temporary loan or 
 75.32  loans on certificates of indebtedness issued in anticipation of 
 75.33  them to meet payments of principal or interest on the bonds due 
 75.34  or about to become due. 
 75.35     Subd. 5.  [DISTRICT LEVY.] The school board of the school 
 75.36  district authorized to issue bonds under subdivision 1 shall by 
 76.1   resolution levy on all property in the school district subject 
 76.2   to the general ad valorem school tax levies, and not subject to 
 76.3   taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
 76.4   direct annual ad valorem tax for each year of the term of the 
 76.5   bonds in amounts that, if collected in full, will produce the 
 76.6   amounts needed to meet when due 20 percent of the principal and 
 76.7   interest payments on the bonds.  A copy of the resolution shall 
 76.8   be filed, and the necessary taxes shall be extended, assessed, 
 76.9   collected, and remitted in accordance with Minnesota Statutes, 
 76.10  section 475.61. 
 76.11     Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
 76.12  section shall be disregarded in the calculation of any other tax 
 76.13  levies or limits on tax levies provided by other law. 
 76.14     Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
 76.15  authority of this section notwithstanding any limitations upon 
 76.16  the indebtedness of a district, and their amounts shall not be 
 76.17  included in computing the indebtedness of a district for any 
 76.18  purpose, including the issuance of subsequent bonds and the 
 76.19  incurring of subsequent indebtedness. 
 76.20     Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
 76.21  authorized in subdivision 3 terminates upon payment or maturity 
 76.22  of the last of the bonds issued under this section. 
 76.23     Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
 76.24  under this section after April 30, 2002, unless they are issued 
 76.25  under a contract in effect on or before April 30, 2002. 
 76.26     Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
 76.27  independent school district No. 381 the day after its governing 
 76.28  body complies with Minnesota Statutes, section 645.021, 
 76.29  subdivision 3. 
 76.30     Sec. 35.  [APPROPRIATIONS.] 
 76.31     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 76.32  LEARNING.] The sums indicated in this section are appropriated 
 76.33  from the general fund to the department of children, families, 
 76.34  and learning for fiscal years designated. 
 76.35     Subd. 2.  [TELECOMMUNICATION ACCESS REVENUE.] For 
 76.36  telecommunication access cost revenue under Minnesota Statutes, 
 77.1   section 125B.25: 
 77.2        $26,230,000     .....     2001
 77.3      Subd. 3.  [INTEREST ON FLOOD LOANS.] For interest paid on 
 77.4   flood loans: 
 77.5        $   970,000     .....     2000
 77.6      Of this amount, $761,000 is for independent school district 
 77.7   No. 595, East Grand Forks, and $209,000 is for independent 
 77.8   school district No. 2854, Ada-Borup. 
 77.9      This appropriation is available until June 30, 2001. 
 77.10     Subd. 4.  [ONE-TIME FACILITIES AID.] For one-time 
 77.11  facilities aid: 
 77.12       $26,411,000     .....     2001
 77.13     Subd. 5.  [SCHOOL FACILITIES GRANTS.] For grants to 
 77.14  construct school facilities: 
 77.15       $ 7,100,000     .....     2000
 77.16     Of this amount: 
 77.17     (a) $4,100,000 is for a grant to independent school 
 77.18  district No. 25, Pine Point, for the construction of a new 
 77.19  school facility serving kindergarten through grade 8. 
 77.20     (b) $3,000,000 is for a grant to independent school 
 77.21  district No. 495, Grand Meadow, to construct a new school using 
 77.22  monolithic dome construction techniques.  The commissioner shall 
 77.23  award the grant to demonstrate that a school constructed using 
 77.24  monolithic dome construction techniques can provide operating 
 77.25  and construction savings for school districts throughout the 
 77.26  state.  Grand Meadow school district must agree to provide the 
 77.27  state with information and data about this construction method 
 77.28  and with an analysis of a monolithic dome as a suitable 
 77.29  educational environment.  
 77.30     Subd. 6.  [MAXIMUM EFFORT CAPITAL LOANS.] For capital loans 
 77.31  to school districts as provided in Minnesota Statutes, sections 
 77.32  126C.60 to 126C.72: 
 77.33       $44,031,000     .....     2001
 77.34     The commissioner shall review the proposed plan and budget 
 77.35  of the project and may reduce the amount of the loan to ensure 
 77.36  that the project will be economical.  The commissioner may 
 78.1   recover the cost incurred by the commissioner for any 
 78.2   professional services associated with the final review and 
 78.3   construction by reducing the proceeds of the loan paid by the 
 78.4   district.  The commissioner shall report to the legislature any 
 78.5   reductions to the above appropriations by January 10, 2001.  
 78.6   Notwithstanding any contrary provision of Minnesota Statutes, 
 78.7   sections 126C.60 to 126C.72, the repayments for the capital 
 78.8   loans approved in section 28 shall be made to the state general 
 78.9   fund and shall not be transferred to the school loan bond 
 78.10  account.  The capital loan contract shall not contain 
 78.11  restrictions on investment of the loan funds by the school 
 78.12  district that would otherwise be required if the loans were 
 78.13  funded from state bond proceeds.  Notwithstanding Minnesota 
 78.14  Statutes, section 126C.69, subdivision 12, the monies for 
 78.15  maximum effort loans approved in this article are from the 
 78.16  general fund.  The interest rate on the loans shall equal the 
 78.17  weighted average annual rate payable on state bonds issued on a 
 78.18  date closest to the execution of the contract between the state 
 78.19  and the district.  
 78.20     Subd. 7.  [ERITREAN COMMUNITY CENTER OF MINNESOTA.] For a 
 78.21  building lease start-up grant for an Eritrean community center 
 78.22  of Minnesota: 
 78.23       $   150,000     .....     2001
 78.24     The commissioner shall consult with the commissioner of 
 78.25  administration on the availability of state-owned building space 
 78.26  for the community center. 
 78.27     Subd. 8.  [FACILITIES CONSOLIDATION IMPACT REVENUE.] For 
 78.28  facilities consolidation impact revenue: 
 78.29       $ 2,422,000     .....     2001
 78.30                             ARTICLE 5 
 78.31               EDUCATION EXCELLENCE AND OTHER POLICY 
 78.32     Section 1.  Minnesota Statutes 1998, section 120B.13, 
 78.33  subdivision 4, is amended to read: 
 78.34     Subd. 4.  [INFORMATION.] The commissioner shall submit the 
 78.35  following information to the education committees of the 
 78.36  legislature each year by ~~January~~ February 1: 
 79.1      (1) the number of pupils enrolled in advanced placement and 
 79.2   international baccalaureate courses in each school district; 
 79.3      (2) the number of teachers in each district attending 
 79.4   training programs offered by the college board or International 
 79.5   Baccalaureate North America, Inc.; 
 79.6      (3) the number of teachers in each district participating 
 79.7   in support programs; 
 79.8      (4) recent trends in the field of advanced placement and 
 79.9   international baccalaureate programs; 
 79.10     (5) expenditures for each category in this section; and 
 79.11     (6) other recommendations for the state program. 
 79.12     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 79.13  120B.30, subdivision 1, is amended to read: 
 79.14     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
 79.15  with advice from experts with appropriate technical 
 79.16  qualifications and experience and stakeholders, shall include in 
 79.17  the comprehensive assessment system, for each grade level to be 
 79.18  tested, a single statewide norm-referenced or 
 79.19  criterion-referenced test, or a combination of a norm-referenced 
 79.20  and a criterion-referenced test, which shall be highly 
 79.21  correlated with the state's graduation standards and 
 79.22  administered annually to all students in the third, fifth, and 
 79.23  eighth grades.  The commissioner shall establish one or more 
 79.24  months during which schools shall administer the tests to 
 79.25  students each school year.  Only Minnesota basic skills tests in 
 79.26  reading, mathematics, and writing shall fulfill students' 
 79.27  testing requirements for a passing state notation.  The passing 
 79.28  scores of the state tests in reading and mathematics are the 
 79.29  equivalent of:  
 79.30     (1) 70 percent correct for students entering grade 9 in 
 79.31  1996; and 
 79.32     (2) 75 percent correct for students entering grade 9 in 
 79.33  1997 and thereafter, as based on the first uniform test 
 79.34  administration of February 1998. 
 79.35     (b) In addition, at the secondary level, districts shall 
 79.36  assess student performance in all required learning areas and 
 80.1   selected required standards within each area of the profile of 
 80.2   learning.  The testing instruments and testing process shall be 
 80.3   determined by the commissioner.  The results shall be aggregated 
 80.4   at the site and district level.  The testing shall be 
 80.5   administered beginning in the 1999-2000 school year and 
 80.6   thereafter. 
 80.7      (c) The comprehensive assessment system shall include an 
 80.8   evaluation of school site and school district performance levels 
 80.9   during the 1997-1998 school year and thereafter using an 
 80.10  established performance baseline developed from students' test 
 80.11  scores under this section that records, at a minimum, students' 
 80.12  unweighted mean test scores in each tested subject, a second 
 80.13  performance baseline that reports, at a minimum, the same 
 80.14  unweighted mean test scores of only those students enrolled in 
 80.15  the school by January 1 of the previous school year, and a third 
 80.16  performance baseline that reports the same unweighted test 
 80.17  scores of all students except those students receiving limited 
 80.18  English proficiency instruction.  The evaluation also shall 
 80.19  record separately, in proximity to the performance baselines, 
 80.20  the percentages of students who are eligible to receive a free 
 80.21  or reduced price school meal, demonstrate limited English 
 80.22  proficiency, or are eligible to receive special education 
 80.23  services. 
 80.24     (d) In addition to the testing and reporting requirements 
 80.25  under paragraphs (a), (b), and (c), the commissioner shall 
 80.26  include the following components in the statewide educational 
 80.27  accountability and public reporting system: 
 80.28     (1) uniform statewide testing of all third, fifth, eighth, 
 80.29  and post-eighth grade students with exemptions, only with parent 
 80.30  or guardian approval, from the testing requirement only for 
 80.31  those very few students for whom the student's individual 
 80.32  education plan team under sections 125A.05 and 125A.06, 
 80.33  determines that the student is incapable of taking a statewide 
 80.34  test, or a limited English proficiency student under section 
 80.35  124D.59, subdivision 2, if the student has been in the United 
 80.36  States for fewer than 12 months and for whom special language 
 81.1   barriers exist, such as the student's native language does not 
 81.2   have a written form or the district does not have access to 
 81.3   appropriate interpreter services for the student's native 
 81.4   language; 
 81.5      (2) educational indicators that can be aggregated and 
 81.6   compared across school districts and across time on a statewide 
 81.7   basis; 
 81.8      (3) students' scores on the American College Test; 
 81.9      (4) participation in the National Assessment of Educational 
 81.10  Progress so that the state can benchmark its performance against 
 81.11  the nation and other states, and, where possible, against other 
 81.12  countries, and contribute to the national effort to monitor 
 81.13  achievement; and 
 81.14     (5) basic skills and advanced competencies connecting 
 81.15  teaching and learning to high academic standards, assessment, 
 81.16  and transitions to citizenship and employment. 
 81.17     (e) Districts must report exemptions under paragraph (d), 
 81.18  clause (1), to the commissioner consistent with a format 
 81.19  provided by the commissioner. 
 81.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 81.21  following final enactment and applies to test administrations 
 81.22  beginning in February 2000. 
 81.23     Sec. 3.  Minnesota Statutes 1998, section 121A.22, 
 81.24  subdivision 2, is amended to read: 
 81.25     Subd. 2.  [EXCLUSIONS.] In addition, this section does not 
 81.26  apply to drugs or medicine: 
 81.27     (1) ~~that can be purchased without a prescription;~~ 
 81.28     ~~(2)~~ that are used by a pupil who is 18 years old or older; 
 81.29     ~~(3)~~ (2) that are used in connection with services for which 
 81.30  a minor may give effective consent, including section 144.343, 
 81.31  subdivision 1, and any other law; 
 81.32     ~~(4)~~ (3) that are used in situations in which, in the 
 81.33  judgment of the school personnel who are present or available, 
 81.34  the risk to the pupil's life or health is of such a nature that 
 81.35  drugs or medicine should be given without delay; 
 81.36     ~~(5)~~ (4) that are used off the school grounds; 
 82.1      ~~(6)~~ (5) that are used in connection with athletics or extra 
 82.2   curricular activities; 
 82.3      ~~(7)~~ (6) that are used in connection with activities that 
 82.4   occur before or after the regular school day; or 
 82.5      ~~(8)~~ (7) that are provided or administered by a public 
 82.6   health agency in order to prevent or control an illness or a 
 82.7   disease outbreak as provided for in sections 144.05 and 144.12. 
 82.8      Sec. 4.  Minnesota Statutes 1998, section 121A.22, 
 82.9   subdivision 3, is amended to read: 
 82.10     Subd. 3.  [LABELING.] Prescription drugs or medicine 
 82.11  subject to this section must be in a container with a label 
 82.12  prepared by a pharmacist according to section 151.212 and 
 82.13  applicable rules.  Nonprescription drugs or medicines must be in 
 82.14  the original container with a label containing use instructions. 
 82.15     Sec. 5.  [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 
 82.16     Subdivision 1.  [REASONABLE FORCE STANDARD.] (a) A teacher, 
 82.17  in exercising the person's lawful authority, may use reasonable 
 82.18  force when it is necessary under the circumstances to correct or 
 82.19  restrain a student or prevent bodily harm or death to another. 
 82.20     (b) A school employee, school bus driver, or other agent of 
 82.21  a district, in exercising the person's lawful authority, may use 
 82.22  reasonable force when it is necessary under the circumstances to 
 82.23  restrain a student or prevent bodily harm or death to another. 
 82.24     (c) Paragraphs (a) and (b) do not authorize conduct 
 82.25  prohibited under sections 121A.58 and 121A.67. 
 82.26     Subd. 2.  [CIVIL LIABILITY.] (a) A teacher who, in the 
 82.27  exercise of the person's lawful authority, uses reasonable force 
 82.28  under the standard in subdivision 1, paragraph (a), has a 
 82.29  defense against a civil action for damages under section 123B.25.
 82.30     (b) A school employee, bus driver, or other agent of a 
 82.31  district who, in the exercise of the person's lawful authority, 
 82.32  uses reasonable force under the standard in subdivision 1, 
 82.33  paragraph (b), has a defense against a civil action for damages 
 82.34  under section 123B.25. 
 82.35     Subd. 3.  [CRIMINAL PROSECUTION.] (a) A teacher who, in the 
 82.36  exercise of the person's lawful authority, uses reasonable force 
 83.1   under the standard in subdivision 1, paragraph (a), has a 
 83.2   defense against a criminal prosecution under section 609.06, 
 83.3   subdivision 1. 
 83.4      (b) A school employee, bus driver, or other agent of a 
 83.5   district who, in the exercise of the person's lawful authority, 
 83.6   uses reasonable force under the standard in subdivision 1, 
 83.7   paragraph (b), has a defense against a criminal prosecution 
 83.8   under section 609.06, subdivision 1. 
 83.9      Subd. 4.  [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 
 83.10  defense in this section is supplementary to those specified in 
 83.11  section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 
 83.12     <b>EFFECTIVE DATE:</b>  This section is effective for the 
 83.13  2000-2001 school year and later. 
 83.14     Sec. 6.  Minnesota Statutes 1998, section 121A.61, 
 83.15  subdivision 3, is amended to read: 
 83.16     Subd. 3.  [POLICY COMPONENTS.] The policy must include at 
 83.17  least the following components:  
 83.18     (a) rules governing student conduct and procedures for 
 83.19  informing students of the rules; 
 83.20     (b) the grounds for removal of a student from a class; 
 83.21     (c) the authority of the classroom teacher to remove 
 83.22  students from the classroom pursuant to procedures and rules 
 83.23  established in the district's policy; 
 83.24     (d) the procedures for removal of a student from a class by 
 83.25  a teacher, school administrator, or other school district 
 83.26  employee; 
 83.27     (e) the period of time for which a student may be removed 
 83.28  from a class, which may not exceed five class periods for a 
 83.29  violation of a rule of conduct; 
 83.30     (f) provisions relating to the responsibility for and 
 83.31  custody of a student removed from a class; 
 83.32     (g) the procedures for return of a student to the specified 
 83.33  class from which the student has been removed; 
 83.34     (h) the procedures for notifying a student and the 
 83.35  student's parents or guardian of violations of the rules of 
 83.36  conduct and of resulting disciplinary actions; 
 84.1      (i) any procedures determined appropriate for encouraging 
 84.2   early involvement of parents or guardians in attempts to improve 
 84.3   a student's behavior; 
 84.4      (j) any procedures determined appropriate for encouraging 
 84.5   early detection of behavioral problems; 
 84.6      (k) any procedures determined appropriate for referring a 
 84.7   student in need of special education services to those services; 
 84.8      (1) the procedures for consideration of whether there is a 
 84.9   need for a further assessment or of whether there is a need for 
 84.10  a review of the adequacy of a current individual education plan 
 84.11  of a student with a disability who is removed from class; 
 84.12     (m) procedures for detecting and addressing chemical abuse 
 84.13  problems of a student while on the school premises; 
 84.14     (n) the minimum consequences for violations of the code of 
 84.15  conduct; ~~and~~ 
 84.16     (o) procedures for immediate and appropriate interventions 
 84.17  tied to violations of the code; and 
 84.18     (p) a provision that states that a teacher, school 
 84.19  employee, school bus driver, or other agent of the school 
 84.20  district may use reasonable force in compliance with section 
 84.21  121A.582 and other laws.  
 84.22     <b>EFFECTIVE DATE:</b>  The section is effective for the 2001-2002 
 84.23  school year and later. 
 84.24     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
 84.25  122A.18, subdivision 3, is amended to read: 
 84.26     Subd. 3.  [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 
 84.27  ETHICS.] (a) The commissioner of children, families, and 
 84.28  learning must issue licenses under its jurisdiction to persons 
 84.29  the commissioner finds to be qualified and competent for their 
 84.30  respective positions under the rules it adopts.  The 
 84.31  commissioner of children, families, and learning may develop, by 
 84.32  rule, a code of ethics for supervisory personnel covering 
 84.33  standards of professional practices, including areas of ethical 
 84.34  conduct and professional performance and methods of enforcement. 
 84.35     (b) Notwithstanding Minnesota Rules, part 3512.2500, the 
 84.36  commissioner of children, families, and learning may approve a 
 85.1   licensure program offered by an entity other than a college or 
 85.2   university in administration and supervision, if the program 
 85.3   meets the requirements for approval and continuation that apply 
 85.4   to colleges and universities. 
 85.5      Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 85.6   122A.23, is amended to read: 
 85.7      122A.23 [APPLICANTS TRAINED IN OTHER STATES.] 
 85.8      Subdivision 1.  [PREPARATION EQUIVALENCY.] When a license 
 85.9   to teach is authorized to be issued to any holder of a diploma 
 85.10  or a degree of a Minnesota state university, or of the 
 85.11  University of Minnesota, or of a liberal arts university, or a 
 85.12  technical training institution, such license may also, in the 
 85.13  discretion of the board of teaching or the commissioner of 
 85.14  children, families, and learning, whichever has jurisdiction, be 
 85.15  issued to any holder of a diploma or a degree of a teacher 
 85.16  training institution of equivalent rank and standing of any 
 85.17  other state.  The diploma or degree must be granted by virtue of 
 85.18  the completion of a course in teacher preparation essentially 
 85.19  equivalent in content to that required by such Minnesota state 
 85.20  university or the University of Minnesota or a liberal arts 
 85.21  university in Minnesota or a technical training institution as 
 85.22  preliminary to the granting of a diploma or a degree of the same 
 85.23  rank and class. 
 85.24     Subd. 2.  [APPLICANTS LICENSED IN OTHER STATES.] (a) If an 
 85.25  applicant for a Minnesota teaching license holds at least a 
 85.26  baccalaureate degree from a regionally accredited college or 
 85.27  university, and holds or has held a similar teaching license in 
 85.28  another state, and the license was issued based on successful 
 85.29  completion of teacher preparation program approved by the 
 85.30  issuing state, including field-specific methods of teaching and 
 85.31  student teaching or essentially equivalent experience, then the 
 85.32  board of teaching shall issue the license using the criteria in 
 85.33  paragraphs (b) to (e). 
 85.34     (b) If the applicant has successfully completed all 
 85.35  examinations and human relations preparation components required 
 85.36  by the board of teaching and holds or has held a license in 
 86.1   another state to teach the same content field and grade levels 
 86.2   equal to, greater than, or not more than one year less than a 
 86.3   similar license available in Minnesota, then the board shall 
 86.4   issue a license identical to the license it would issue to an 
 86.5   applicant who has successfully completed those requirements in a 
 86.6   Minnesota teacher preparation program. 
 86.7      (c) If the applicant holds or has held a teaching license 
 86.8   issued by another state to teach the same content field and 
 86.9   grade levels equal to, greater than, or not more than one year 
 86.10  less than a similar license available in Minnesota, but has not 
 86.11  successfully completed all examinations and human relations 
 86.12  preparation components required by the board of teaching, then 
 86.13  the board shall issue a temporary license according to board 
 86.14  rules to provide the applicant time to complete required 
 86.15  examination and human relations components. 
 86.16     (d) If the applicant has successfully completed all 
 86.17  examinations and human relations preparation components required 
 86.18  by the board of teaching and holds a license issued by another 
 86.19  state based on successful completion of a teacher preparation 
 86.20  program approved by the issuing state but has not completed 
 86.21  student teaching or equivalent experience, field-specific 
 86.22  methods of teaching, or both, then the board shall issue a 
 86.23  temporary license according to board rules to provide the 
 86.24  applicant time to complete student teaching or equivalent 
 86.25  experience, field-specific methods of teaching, or both.  An 
 86.26  applicant may fulfill the student teaching or equivalent 
 86.27  experience requirement, field-specific methods of teaching 
 86.28  requirement, or both, by successfully completing a year in a 
 86.29  school district mentorship program consistent with the standards 
 86.30  of effective practice adopted by the board of teaching and the 
 86.31  Minnesota graduation requirements. 
 86.32     (e) If the applicant has successfully completed all 
 86.33  examinations and human relations preparation components required 
 86.34  by the board of teaching and holds or has held a license issued 
 86.35  by another state, but the license is more limited in the content 
 86.36  field, grade levels, or both, than a similar Minnesota license, 
 87.1   then the applicant shall be issued a temporary license valid for 
 87.2   up to three years for only the content field, grade levels, or 
 87.3   both, for which the applicant was licensed in the other state, 
 87.4   to provide time for the applicant to meet full Minnesota 
 87.5   licensure requirements in the field. 
 87.6      (f) No applicant shall be issued any temporary license or 
 87.7   combination of temporary licenses under paragraphs (c) to (e) 
 87.8   for a period of time exceeding three years. 
 87.9      (g) No license shall be issued under this subdivision when 
 87.10  the licensure field requires additional degrees, credentials, or 
 87.11  licenses that the candidate has not achieved. 
 87.12     Sec. 9.  Minnesota Statutes 1998, section 122A.25, is 
 87.13  amended by adding a subdivision to read: 
 87.14     Subd. 2a.  [INDIVIDUAL PREAPPROVAL.] (a) An individual not 
 87.15  licensed by the board of teaching that holds certification, 
 87.16  credentials, or professional recognition as an expert in a 
 87.17  specialized method of instruction not typically offered in the 
 87.18  school program may apply to the board of teaching to be granted 
 87.19  preapproval as a community expert eligible to teach in a public 
 87.20  school or charter school under this section.  In making its 
 87.21  determination, the board shall consider only the criteria of 
 87.22  subdivision 2, clause (1). 
 87.23     (b) A preapproved community expert under this subdivision 
 87.24  may be hired to teach by a school district or charter school 
 87.25  only if the school district or charter school applies under 
 87.26  subdivision 2 and the board of teaching approves the application 
 87.27  after considering the criteria of subdivision 2, clauses (2) to 
 87.28  (7). 
 87.29     Sec. 10.  Minnesota Statutes 1998, section 122A.25, is 
 87.30  amended by adding a subdivision to read: 
 87.31     Subd. 2b.  [BACKGROUND CHECK.] The school district or 
 87.32  charter school shall request a criminal history background check 
 87.33  under section 123B.03 on a hired nonlicensed community expert 
 87.34  and verify the completion of the criminal history background 
 87.35  check to the board of teaching. 
 87.36     Sec. 11.  Minnesota Statutes 1998, section 122A.25, is 
 88.1   amended by adding a subdivision to read: 
 88.2      Subd. 2c.  [EXCEPTION.] A current or former faculty member 
 88.3   in a board of teaching approved teacher preparation program 
 88.4   shall be automatically approved as a nonlicensed community 
 88.5   expert to teach courses in or otherwise serve a school district 
 88.6   or charter school in the individual's field of expertise upon a 
 88.7   district or charter school's registering the intention to employ 
 88.8   that current or former faculty member under this subdivision. 
 88.9      Sec. 12.  Minnesota Statutes 1998, section 122A.25, 
 88.10  subdivision 3, is amended to read: 
 88.11     Subd. 3.  [APPROVAL OF PLAN.] The board of teaching shall 
 88.12  approve or disapprove an application within 60 days of receiving 
 88.13  it from a school district ~~or~~, charter school, or individual. 
 88.14     Sec. 13.  Minnesota Statutes 1998, section 123B.04, 
 88.15  subdivision 2, is amended to read: 
 88.16     Subd. 2.  [AGREEMENT.] (a) Either the school board or the 
 88.17  school site decision-making team may request that the school 
 88.18  board enter into an agreement with a school site decision-making 
 88.19  team concerning the governance, management, or control of the 
 88.20  school.  A school site decision-making team may include the 
 88.21  school principal, teachers in the school or their designee, 
 88.22  other employees in the school, parents of pupils in the school, 
 88.23  representatives of pupils in the school, or other members in the 
 88.24  community.  The school site decision-making team shall include 
 88.25  the school principal or other person having general control and 
 88.26  supervision of the school.  The site decision-making team must 
 88.27  reflect the diversity of the education site.  No more than 
 88.28  one-half of the members shall be employees of the district, 
 88.29  unless an employee is the parent of a student enrolled in the 
 88.30  school site, in which case the employee may elect to serve as a 
 88.31  parent member of the site team. 
 88.32     (b) School site decision-making agreements must delegate 
 88.33  powers, duties, and broad management responsibilities to site 
 88.34  teams and involve staff members, students as appropriate, and 
 88.35  parents in decision making. 
 88.36     (c) An agreement shall include a statement of powers, 
 89.1   duties, responsibilities, and authority to be delegated to and 
 89.2   within the site. 
 89.3      (d) An agreement may include: 
 89.4      (1) an achievement contract according to subdivision 4; 
 89.5      (2) a mechanism to allow principals, or other persons 
 89.6   having general control and supervision of the school, to make 
 89.7   decisions regarding how financial and personnel resources are 
 89.8   best allocated at the site and from whom goods or services are 
 89.9   purchased; 
 89.10     (3) a mechanism to implement parental involvement programs 
 89.11  under section 124D.895 and to provide for effective parental 
 89.12  communication and feedback on this involvement at the site 
 89.13  level; 
 89.14     (4) a provision that would allow the team to determine who 
 89.15  is hired into licensed and nonlicensed positions; 
 89.16     (5) a provision that would allow teachers to choose the 
 89.17  principal or other person having general control; 
 89.18     (6) an amount of revenue allocated to the site under 
 89.19  subdivision 3; and 
 89.20     (7) any other powers and duties determined appropriate by 
 89.21  the board. 
 89.22     The school board of the district remains the legal employer 
 89.23  under clauses (4) and (5). 
 89.24     (e) Any powers or duties not delegated to the school site 
 89.25  management team in the school site management agreement shall 
 89.26  remain with the school board. 
 89.27     (f) Approved agreements shall be filed with the 
 89.28  commissioner.  If a school board denies a request to enter into 
 89.29  a school site management agreement, it shall provide a copy of 
 89.30  the request and the reasons for its denial to the commissioner.  
 89.31     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000. 
 89.32     Sec. 14.  Minnesota Statutes 1998, section 123B.143, 
 89.33  subdivision 1, is amended to read: 
 89.34     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
 89.35  maintaining a classified secondary school must employ a 
 89.36  superintendent who shall be an ex officio nonvoting member of 
 90.1   the school board.  The authority for selection and employment of 
 90.2   a superintendent must be vested in the board in all cases.  An 
 90.3   individual employed by a board as a superintendent shall have an 
 90.4   initial employment contract for a period of time no longer than 
 90.5   three years from the date of employment.  Any subsequent 
 90.6   employment contract must not exceed a period of three years.  A 
 90.7   board, at its discretion, may or may not renew an employment 
 90.8   contract.  A board must not, by action or inaction, extend the 
 90.9   duration of an existing employment contract.  Beginning 365 days 
 90.10  prior to the expiration date of an existing employment contract, 
 90.11  a board may negotiate and enter into a subsequent employment 
 90.12  contract to take effect upon the expiration of the existing 
 90.13  contract.  A subsequent contract must be contingent upon the 
 90.14  employee completing the terms of an existing contract.  If a 
 90.15  contract between a board and a superintendent is terminated 
 90.16  prior to the date specified in the contract, the board may not 
 90.17  enter into another superintendent contract with that same 
 90.18  individual that has a term that extends beyond the date 
 90.19  specified in the terminated contract.  A board may terminate a 
 90.20  superintendent during the term of an employment contract for any 
 90.21  of the grounds specified in section 122A.40, subdivision 9 or 13.
 90.22  A superintendent shall not rely upon an employment contract with 
 90.23  a board to assert any other continuing contract rights in the 
 90.24  position of superintendent under section 122A.40.  
 90.25  Notwithstanding the provisions of sections 122A.40, subdivision 
 90.26  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
 90.27  individual shall have a right to employment as a superintendent 
 90.28  based on order of employment in any district.  If two or more 
 90.29  districts enter into an agreement for the purchase or sharing of 
 90.30  the services of a superintendent, the contracting districts have 
 90.31  the absolute right to select one of the individuals employed to 
 90.32  serve as superintendent in one of the contracting districts and 
 90.33  no individual has a right to employment as the superintendent to 
 90.34  provide all or part of the services based on order of employment 
 90.35  in a contracting district. The superintendent of a district 
 90.36  shall perform the following:  
 91.1      (1) visit and supervise the schools in the district, report 
 91.2   and make recommendations about their condition when advisable or 
 91.3   on request by the board; 
 91.4      (2) recommend to the board employment and dismissal of 
 91.5   teachers; 
 91.6      (3) superintend school grading practices and examinations 
 91.7   for promotions; 
 91.8      (4) make reports required by the commissioner; 
 91.9      (5) by January 10, submit an annual report to the 
 91.10  commissioner in a manner prescribed by the commissioner, in 
 91.11  consultation with school districts, identifying the expenditures 
 91.12  that the district requires to ensure an 80 percent and a 90 
 91.13  percent student passage rate on the basic standards test taken 
 91.14  in the eighth grade, identifying the amount of expenditures that 
 91.15  the district requires to ensure a 99 percent student passage 
 91.16  rate on the basic standards test by 12th grade, and how much the 
 91.17  district is cross-subsidizing programs with special education, 
 91.18  ~~compensatory~~ basic skills, and general education revenue; and 
 91.19     (6) perform other duties prescribed by the board. 
 91.20     Sec. 15.  Minnesota Statutes 1998, section 123B.52, is 
 91.21  amended by adding a subdivision to read: 
 91.22     Subd. 6.  [DISPOSING OF SURPLUS SCHOOL 
 91.23  COMPUTERS.] Notwithstanding section 471.345 governing school 
 91.24  district contracts made upon sealed bid or otherwise complying 
 91.25  with the requirements for competitive bidding, other provisions 
 91.26  of this section governing school district contracts or other law 
 91.27  to the contrary, a school district under this subdivision may 
 91.28  dispose of a surplus school computer and related equipment if 
 91.29  the district disposes of the surplus property by conveying the 
 91.30  property and title to: 
 91.31     (1) another school district; 
 91.32     (2) the state department of corrections; 
 91.33     (3) the board of trustees of the Minnesota state colleges 
 91.34  and universities; or 
 91.35     (4) the family of a student residing in the district whose 
 91.36  total family income meets the federal definition of poverty. 
 92.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 92.2   following final enactment. 
 92.3      Sec. 16.  Minnesota Statutes 1998, section 123B.77, 
 92.4   subdivision 3, is amended to read: 
 92.5      Subd. 3.  [STATEMENT FOR COMPARISON AND CORRECTION.] By 
 92.6   November 30 of the calendar year of the submission of the 
 92.7   unaudited financial data, the district must provide to the 
 92.8   commissioner audited financial data for the preceding fiscal 
 92.9   year.  The audit must be conducted in compliance with generally 
 92.10  accepted governmental auditing standards, the federal Single 
 92.11  Audit Act, and the Minnesota legal compliance guide issued by 
 92.12  the office of the state auditor.  An audited financial statement 
 92.13  prepared in a form which will allow comparison with and 
 92.14  correction of material differences in the unaudited financial 
 92.15  data shall be submitted to the commissioner and the state 
 92.16  auditor by December 31.  The audited financial statement must 
 92.17  also provide a statement of assurance pertaining to uniform 
 92.18  financial accounting and reporting standards compliance and a 
 92.19  copy of the management letter submitted to the district by the 
 92.20  school district's auditor. 
 92.21     Sec. 17.  Minnesota Statutes 1998, section 123B.79, 
 92.22  subdivision 7, is amended to read: 
 92.23     Subd. 7.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
 92.24  district may maintain in a ~~designated~~ reserve for certain 
 92.25  severance pay account not more than 50 percent of the amount 
 92.26  necessary to meet the obligations for the portion of severance 
 92.27  pay that constitutes compensation for accumulated sick leave to 
 92.28  be used for payment of premiums for group insurance provided for 
 92.29  former employees by the district.  The amount necessary must be 
 92.30  calculated according to standards established by the ~~advisory~~ 
 92.31  ~~council on uniform financial accounting and reporting~~ 
 92.32  ~~standards~~ department. 
 92.33     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 92.34  123B.83, subdivision 4, is amended to read: 
 92.35     Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the ~~net negative~~ 
 92.36  ~~unappropriated operating~~ unreserved general fund balance ~~as~~ 
 93.1   ~~defined in section 126C.01, subdivision 11~~, calculated in 
 93.2   accordance with the uniform financial accounting and reporting 
 93.3   standards for Minnesota school districts, as of June 30 each 
 93.4   year, is more than 2-1/2 percent of the year's expenditure 
 93.5   amount, the district must, prior to January 31 of the next 
 93.6   fiscal year, submit a special operating plan to reduce the 
 93.7   district's deficit expenditures to the commissioner for 
 93.8   approval.  The commissioner may also require the district to 
 93.9   provide evidence that the district meets and will continue to 
 93.10  meet all high school graduation requirements. 
 93.11     Notwithstanding any other law to the contrary, a district 
 93.12  submitting a special operating plan to the commissioner under 
 93.13  this clause which is disapproved by the commissioner must not 
 93.14  receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
 93.15  124D, 125A, 126C, and 127A until a special operating plan of the 
 93.16  district is so approved. 
 93.17     (2) A district must receive aids pending the approval of 
 93.18  its special operating plan under clause (1).  A district which 
 93.19  complies with its approved operating plan must receive aids as 
 93.20  long as the district continues to comply with the approved 
 93.21  operating plan. 
 93.22     Sec. 19.  Minnesota Statutes 1998, section 123B.86, 
 93.23  subdivision 1, is amended to read: 
 93.24     Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
 93.25  provide equal transportation within the district for all school 
 93.26  children to any school when transportation is deemed necessary 
 93.27  by the school board because of distance or traffic condition in 
 93.28  like manner and form as provided in sections 123B.88 and ~~124.223~~ 
 93.29  123B.92, when applicable. 
 93.30     Sec. 20.  Minnesota Statutes 1998, section 123B.88, 
 93.31  subdivision 3, is amended to read: 
 93.32     Subd. 3.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
 93.33  may contract for the furnishing of authorized transportation 
 93.34  under ~~rules established by the commissioner~~ section 123B.52, and 
 93.35  may purchase gasoline and furnish same to a contract carrier for 
 93.36  use in the performance of a contract with the school district 
 94.1   for transportation of school children to and from school. 
 94.2      Sec. 21.  Minnesota Statutes 1998, section 123B.90, 
 94.3   subdivision 1, is amended to read: 
 94.4      Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The third week of 
 94.5   school is designated as school bus safety week. 
 94.6      ~~A school board may designate one day of school bus safety~~ 
 94.7   ~~week as school bus driver day.~~ 
 94.8      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 94.9   following final enactment. 
 94.10     Sec. 22.  Minnesota Statutes 1999 Supplement, section 
 94.11  123B.90, subdivision 2, is amended to read: 
 94.12     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
 94.13  provide public school pupils enrolled in grades kindergarten 
 94.14  through 10 with age-appropriate school bus safety training.  The 
 94.15  training must be results-oriented and shall consist of both 
 94.16  classroom instruction and practical training using a school 
 94.17  bus.  Upon completing the training, a student shall be able to 
 94.18  demonstrate knowledge and understanding of at least the 
 94.19  following competencies and concepts: 
 94.20     (1) transportation by school bus is a privilege and not a 
 94.21  right; 
 94.22     (2) district policies for student conduct and school bus 
 94.23  safety; 
 94.24     (3) appropriate conduct while on the school bus; 
 94.25     (4) the danger zones surrounding a school bus; 
 94.26     (5) procedures for safely boarding and leaving a school 
 94.27  bus; 
 94.28     (6) procedures for safe street or road crossing; 
 94.29     (7) school bus evacuation and other emergency procedures; 
 94.30  and 
 94.31     (8) appropriate training on the use of lap belts or lap and 
 94.32  shoulder belts, if the district uses buses equipped with lap 
 94.33  belts or lap and shoulder belts. 
 94.34     (b) Each nonpublic school located within the district must 
 94.35  provide all nonpublic school pupils enrolled in grades 
 94.36  kindergarten through 10 who are transported by school bus at 
 95.1   public expense and attend school within the district's 
 95.2   boundaries with training as required in paragraph (a).  The 
 95.3   school district shall make a bus available for the practical 
 95.4   training if the district transports the nonpublic students.  
 95.5   Each nonpublic school shall provide the instruction. 
 95.6      (c) All students enrolled in grades kindergarten through 3 
 95.7   who are transported by school bus and are enrolled during the 
 95.8   first or second week of school must demonstrate achievement of 
 95.9   the school bus safety training competencies by the end of the 
 95.10  third week of school.  All students enrolled in grades 4 through 
 95.11  10 who are transported by school bus and are enrolled during the 
 95.12  first or second week of school must demonstrate achievement of 
 95.13  the competencies by the end of the sixth week of school.  
 95.14  Students enrolled in grades kindergarten through 10 who enroll 
 95.15  in a school after the second week of school and are transported 
 95.16  by school bus shall undergo school bus safety training and 
 95.17  demonstrate achievement of the school bus safety competencies 
 95.18  within four weeks of the first day of attendance.  The ~~pupil~~ 
 95.19  school transportation safety director in each district must 
 95.20  certify to the commissioner annually that all students 
 95.21  transported by school bus within the district have 
 95.22  satisfactorily demonstrated knowledge and understanding of the 
 95.23  school bus safety competencies according to this section or 
 95.24  provide an explanation for a student's failure to demonstrate 
 95.25  the competencies.  The principal or other chief administrator of 
 95.26  each nonpublic school must certify annually to the ~~public~~ school 
 95.27  transportation safety director of the district in which the 
 95.28  school is located that all of the school's students transported 
 95.29  by school bus at public expense have received training.  A 
 95.30  district may deny transportation to a student who fails to 
 95.31  demonstrate the competencies, unless the student is unable to 
 95.32  achieve the competencies due to a disability, or to a student 
 95.33  who attends a nonpublic school that fails to provide training as 
 95.34  required by this subdivision. 
 95.35     (d) A district and a nonpublic school with students 
 95.36  transported by school bus at public expense must, to the extent 
 96.1   possible, provide kindergarten pupils with bus safety training 
 96.2   before the first day of school. 
 96.3      (e) A district and a nonpublic school with students 
 96.4   transported by school bus at public expense must also provide 
 96.5   student safety education for bicycling and pedestrian safety, 
 96.6   for students enrolled in grades kindergarten through 5. 
 96.7      (f) A district and a nonpublic school with students 
 96.8   transported by school bus at public expense must make reasonable 
 96.9   accommodations for the school bus, bicycle, and pedestrian 
 96.10  safety training of pupils known to speak English as a second 
 96.11  language and pupils with disabilities. 
 96.12     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 96.13  123B.91, subdivision 1, is amended to read: 
 96.14     Subdivision 1.  [COMPREHENSIVE POLICY.] (a) Each district 
 96.15  ~~must~~ shall develop and implement a comprehensive, written policy 
 96.16  governing pupil transportation safety, including transportation 
 96.17  of nonpublic school students, when applicable.  The 
 96.18  policy ~~shall~~, at minimum, must contain: 
 96.19     (1) provisions for appropriate student bus safety training 
 96.20  under section 123B.90; 
 96.21     (2) rules governing student conduct on school buses and in 
 96.22  school bus loading and unloading areas; 
 96.23     (3) a statement of parent or guardian responsibilities 
 96.24  relating to school bus safety; 
 96.25     (4) provisions for notifying students and parents or 
 96.26  guardians of their responsibilities and the rules, including the 
 96.27  district's seat belt policy, if applicable; 
 96.28     (5) an intradistrict system for reporting school bus 
 96.29  accidents or misconduct and a system for dealing with local law 
 96.30  enforcement officials in cases of criminal conduct on a school 
 96.31  bus; 
 96.32     (6) a discipline policy to address violations of school bus 
 96.33  safety rules, including procedures for revoking a student's bus 
 96.34  riding privileges in cases of serious or repeated misconduct; 
 96.35     (7) a system for integrating school bus misconduct records 
 96.36  with other discipline records; 
 97.1      (8) a statement of bus driver duties; 
 97.2      (9) ~~planned expenditures for safety activities under~~ 
 97.3   ~~section 123B.89 and,~~ where applicable, provisions governing bus 
 97.4   monitor qualifications, training, and duties; 
 97.5      (10) rules governing the use and maintenance of type III 
 97.6   vehicles, drivers of type III vehicles, qualifications to drive 
 97.7   a type III vehicle, qualifications for a type III vehicle, and 
 97.8   the circumstances under which a student may be transported in a 
 97.9   type III vehicle; 
 97.10     (11) operating rules and procedures; 
 97.11     (12) provisions for annual bus driver in-service training 
 97.12  and evaluation; 
 97.13     (13) emergency procedures; 
 97.14     (14) a system for maintaining and inspecting equipment; 
 97.15     (15) requirements of the school district, if any, that 
 97.16  exceed state law minimum requirements for school bus operations; 
 97.17  and 
 97.18     (16) requirements for basic first aid training, which must 
 97.19  include the Heimlich maneuver and procedures for dealing with 
 97.20  obstructed airways, shock, bleeding, and seizures. 
 97.21     (b) Districts are encouraged to use the model policy 
 97.22  developed by the Minnesota school boards association, the 
 97.23  department of public safety, and the department of children, 
 97.24  families, and learning, as well as the current edition of the 
 97.25  "National Standards for School ~~Buses and Operations~~ 
 97.26  Transportation," ~~published by the National Safety Council,~~ in 
 97.27  developing safety policies.  Each district shall review its 
 97.28  policy annually ~~and make appropriate amendments, which must be~~ 
 97.29  ~~submitted to the school bus safety advisory committee within one~~ 
 97.30  ~~month of approval by the school board~~ to ensure that it conforms 
 97.31  to law. 
 97.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 97.33  following final enactment. 
 97.34     Sec. 24.  Minnesota Statutes 1998, section 124D.03, 
 97.35  subdivision 1, is amended to read: 
 97.36     Subdivision 1.  [ESTABLISHMENT.] (a) An enrollment options 
 98.1   program is established to enable any pupil to attend a school or 
 98.2   program in a district in which the pupil does not reside, 
 98.3   subject to the limitations in this section.  
 98.4      (b) A district may refuse to allow a pupil who is expelled 
 98.5   under section 121A.45 to enroll during the term of the expulsion 
 98.6   if the student was expelled for: 
 98.7      (1) possessing a dangerous weapon, as defined by United 
 98.8   States Code, title 18, section 930, paragraph (g)(2), at school 
 98.9   or a school function; 
 98.10     (2) possessing or using an illegal drug at school or a 
 98.11  school function; 
 98.12     (3) selling or soliciting the sale of a controlled 
 98.13  substance while at school or a school function; or 
 98.14     (4) committing a third-degree assault as described in 
 98.15  section 609.223, subdivision 1. 
 98.16     <b>EFFECTIVE DATE:</b>  This section is effective for the 
 98.17  2000-2001 school year and later. 
 98.18     Sec. 25.  Minnesota Statutes 1998, section 124D.081, 
 98.19  subdivision 6, is amended to read: 
 98.20     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 98.21  district is eligible for first-grade preparedness revenue equal 
 98.22  to the basic formula allowance for that year times the number of 
 98.23  children five years of age or older enrolled in a kindergarten 
 98.24  program at the site on October 1 of the previous year times .53. 
 98.25     (b) This revenue must supplement and not replace 
 98.26  compensatory revenue that the district uses for the same or 
 98.27  similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 
 98.28  and 127A. 
 98.29     (c) A pupil enrolled in the first grade preparedness 
 98.30  program at a qualifying school site is eligible for 
 98.31  transportation under section 123B.88, subdivision 1.  
 98.32     (d) First grade preparedness revenue paid to a charter 
 98.33  school for which a school district is providing transportation 
 98.34  according to section 124D.10, subdivision 16, shall be decreased 
 98.35  by an amount equal to the product of ~~$170~~ the formula allowance 
 98.36  according to section 126C.10, subdivision 2, times .0485 times 
 99.1   the pupil units calculated according to paragraph (a).  This 
 99.2   amount shall be paid to the school district for transportation 
 99.3   costs.  
 99.4      Sec. 26.  Minnesota Statutes 1999 Supplement, section 
 99.5   124D.10, subdivision 3, is amended to read: 
 99.6      Subd. 3.  [SPONSOR.] A school board, intermediate school 
 99.7   district school board, education ~~districts~~ district organized 
 99.8   under sections 123A.15 to 123A.19, charitable organization under 
 99.9   section 501(c) (3) of the Internal Revenue Code of 1986 that is 
 99.10  a member of the Minnesota council on foundations and reports an 
 99.11  end of year fund balance of at least $3,000,000, Minnesota 
 99.12  private college~~,~~ that grants two- or four-year degrees and is 
 99.13  registered with the higher education services office under 
 99.14  chapter 136A, community college, state university, technical 
 99.15  college, or the University of Minnesota may sponsor one or more 
 99.16  charter schools. 
 99.17     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 99.18  following final enactment. 
 99.19     Sec. 27.  Minnesota Statutes 1999 Supplement, section 
 99.20  124D.10, subdivision 4, is amended to read: 
 99.21     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 99.22  authorize one or more licensed teachers under section 122A.18, 
 99.23  subdivision 1, to operate a charter school subject to approval 
 99.24  by the commissioner.  A board must vote on charter school 
 99.25  application for sponsorship no later than 90 days after 
 99.26  receiving the application.  After 90 days, the applicant may 
 99.27  apply to the commissioner.  If a board elects not to sponsor a 
 99.28  charter school, the applicant may appeal the board's decision to 
 99.29  the commissioner.  The appeal must be made no later than 90 days 
 99.30  after the school board elects not to sponsor a charter school.  
 99.31  If the commissioner authorizes the school, the commissioner must 
 99.32  sponsor the school according to this section.  The school must 
 99.33  be organized and operated as a cooperative under chapter 308A or 
 99.34  nonprofit corporation under chapter 317A.  
 99.35     (b) Before the operators may form and operate a school, the 
 99.36  sponsor must file an affidavit with the commissioner stating its 
100.1   intent to authorize a charter school.  The affidavit must state 
100.2   the terms and conditions under which the sponsor would authorize 
100.3   a charter school.  The commissioner must approve or disapprove 
100.4   the sponsor's proposed authorization within 60 days of receipt 
100.5   of the affidavit.  Failure to obtain commissioner approval 
100.6   precludes a sponsor from authorizing the charter school that was 
100.7   the subject of the affidavit.  
100.8      (c) The operators authorized to organize and operate a 
100.9   school must hold an election for members of the school's board 
100.10  of directors in a timely manner after the school is operating.  
100.11  Any staff members who are employed at the school, including 
100.12  teachers providing instruction under a contract with a 
100.13  cooperative, and all parents of children enrolled in the school 
100.14  may participate in the election.  Licensed teachers employed at 
100.15  the school, including teachers providing instruction under a 
100.16  contract with a cooperative, must be a majority of the members 
100.17  of the board of directors, unless the commissioner waives the 
100.18  requirement for the school or the licensed teachers employed at 
100.19  the school elect to constitute a majority that consists of both 
100.20  teachers employed at the school and parents of children enrolled 
100.21  in the school with a minimum of one teacher director and one 
100.22  parent director.  A provisional board may operate before the 
100.23  election of the school's board of directors.  Board of director 
100.24  meetings must comply with section 471.705. 
100.25     (d) The granting or renewal of a charter by a sponsoring 
100.26  entity must not be conditioned upon the bargaining unit status 
100.27  of the employees of the school. 
100.28     Sec. 28.  Minnesota Statutes 1999 Supplement, section 
100.29  124D.10, subdivision 8, is amended to read: 
100.30     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
100.31  school shall meet all applicable state and local health and 
100.32  safety requirements. 
100.33     (b) A school sponsored by a school board may be located in 
100.34  any district, unless the school board of the district of the 
100.35  proposed location disapproves by written resolution.  If such a 
100.36  board denies a request to locate within its boundaries a charter 
101.1   school sponsored by another school board, the sponsoring school 
101.2   board may appeal to the commissioner.  If the commissioner 
101.3   authorizes the school, the commissioner must sponsor the school. 
101.4      (c) A charter school must be nonsectarian in its programs, 
101.5   admission policies, employment practices, and all other 
101.6   operations.  A sponsor may not authorize a charter school or 
101.7   program that is affiliated with a nonpublic sectarian school or 
101.8   a religious institution. 
101.9      (d) Charter schools must not be used as a method of 
101.10  providing education or generating revenue for students who are 
101.11  being home-schooled. 
101.12     (e) The primary focus of a charter school must be to 
101.13  provide a comprehensive program of instruction for at least one 
101.14  grade or age group from five through 18 years of age.  
101.15  Instruction may be provided to people younger than five years 
101.16  and older than 18 years of age. 
101.17     (f) A charter school may not charge tuition. 
101.18     (g) A charter school is subject to and must comply with 
101.19  chapter 363 and section 121A.04. 
101.20     (h) A charter school is subject to and must comply with The 
101.21  Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
101.22  Minnesota Public School Fee law, sections 123B.34 to 123B.39. 
101.23     (i) A charter school is subject to the same financial 
101.24  audits, audit procedures, and audit requirements as a district.  
101.25  The audit must be ~~consistent~~ in compliance with the requirements 
101.26  of sections 123B.75 to 123B.83, except to the extent deviations 
101.27  are necessary because of the program at the school.  The 
101.28  department of children, families, and learning, state auditor, 
101.29  or legislative auditor may conduct financial, program, or 
101.30  compliance audits. 
101.31     (j) A charter school is a district for the purposes of tort 
101.32  liability under chapter 466. 
101.33     <b>EFFECTIVE DATE:</b>  This section is effective the day 
101.34  following final enactment. 
101.35     Sec. 29.  Minnesota Statutes 1998, section 124D.10, 
101.36  subdivision 9, is amended to read: 
102.1      Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
102.2   limit admission to: 
102.3      (1) pupils within an age group or grade level; 
102.4      (2) people who are eligible to participate in the 
102.5   graduation incentives program under section 124D.68; or 
102.6      (3) residents of a specific geographic area where the 
102.7   percentage of the population of non-Caucasian people of that 
102.8   area is greater than the percentage of the non-Caucasian 
102.9   population in the congressional district in which the geographic 
102.10  area is located, and as long as the school reflects the racial 
102.11  and ethnic diversity of the specific area. 
102.12     A charter school shall enroll an eligible pupil who submits 
102.13  a timely application, unless the number of applications exceeds 
102.14  the capacity of a program, class, grade level, or building.  In 
102.15  this case, pupils must be accepted by lot.  If a charter school 
102.16  is the only school located in a town serving pupils within a 
102.17  particular grade level, then pupils that are residents of the 
102.18  town must be given preference for enrollment before accepting 
102.19  pupils by lot.  If a pupil lives within two miles of a charter 
102.20  school and the next closest public school is more than five 
102.21  miles away, the charter school must give those pupils preference 
102.22  for enrollment before accepting other pupils by lot. 
102.23     A charter school shall give preference for enrollment to a 
102.24  sibling of an enrolled pupil and to a foster child of that 
102.25  pupil's parents before accepting other pupils by lot. 
102.26     A charter school may not limit admission to pupils on the 
102.27  basis of intellectual ability, measures of achievement or 
102.28  aptitude, or athletic ability. 
102.29     Sec. 30.  Minnesota Statutes 1999 Supplement, section 
102.30  124D.10, subdivision 11, is amended to read: 
102.31     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
102.32  charter school must employ or contract with necessary teachers, 
102.33  as defined by section 122A.15, subdivision 1, who hold valid 
102.34  licenses to perform the particular service for which they are 
102.35  employed in the school.  The charter school's state aid may be 
102.36  reduced under section 127A.42 if the school employs a teacher 
103.1   who is not appropriately licensed or approved by the board of 
103.2   teaching.  The school may employ necessary employees who are not 
103.3   required to hold teaching licenses to perform duties other than 
103.4   teaching and may contract for other services.  The school may 
103.5   discharge teachers and nonlicensed employees.  A person, without 
103.6   holding a valid administrator's license, may perform 
103.7   administrative, supervisory, or instructional leadership duties. 
103.8      The board of directors also shall decide matters related to 
103.9   the operation of the school, including budgeting, curriculum and 
103.10  operating procedures.  
103.11     Sec. 31.  Minnesota Statutes 1999 Supplement, section 
103.12  124D.10, subdivision 15, is amended to read: 
103.13     Subd. 15.  [REVIEW AND COMMENT.] The department must review 
103.14  and comment on the evaluation, by the ~~chartering school district~~ 
103.15  sponsor, of the performance of a charter school before the 
103.16  charter school's contract is renewed.  A sponsor shall monitor 
103.17  and evaluate the fiscal and student performance of the school, 
103.18  and may for this purpose annually assess the school up to $10 
103.19  per student up to a maximum of $3,500.  The information ~~from~~ for 
103.20  the review and comment shall be reported by the sponsor to the 
103.21  commissioner of children, families, and learning in a timely 
103.22  manner.  Periodically, the commissioner shall report trends or 
103.23  suggestions based on the evaluation of charter school contracts 
103.24  to the education committees of the state legislature.  
103.25     Sec. 32.  Minnesota Statutes 1998, section 124D.10, 
103.26  subdivision 20, is amended to read: 
103.27     Subd. 20.  [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 
103.28  teacher employed by a district makes a written request for an 
103.29  extended leave of absence to teach at a charter school whether 
103.30  as an employee of the school, as an employee of a cooperative or 
103.31  other teacher controlled professional association providing 
103.32  instructional services to the school, or in any other capacity, 
103.33  the district must grant the leave.  The district must grant a 
103.34  leave for any number of years requested by the teacher, and must 
103.35  extend the leave at the teacher's request.  The district may 
103.36  require that the request for a leave or extension of leave be 
104.1   made up to 90 days before the teacher would otherwise have to 
104.2   report for duty.  Except as otherwise provided in this 
104.3   subdivision and except for section 122A.46, subdivision 7, the 
104.4   leave is governed by section 122A.46, including, but not limited 
104.5   to, reinstatement, notice of intention to return, seniority, 
104.6   salary, and insurance. 
104.7      During a leave, the teacher may continue to aggregate 
104.8   benefits and credits in the teachers' retirement association 
104.9   account by paying both the employer and employee contributions 
104.10  based upon the annual salary of the teacher for the last full 
104.11  pay period before the leave began.  The retirement association 
104.12  may impose reasonable requirements to efficiently administer 
104.13  this subdivision. 
104.14     Sec. 33.  Minnesota Statutes 1999 Supplement, section 
104.15  124D.10, subdivision 23, is amended to read: 
104.16     Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
104.17  SCHOOL CONTRACT.] (a) The duration of the contract with a 
104.18  sponsor must be for the term contained in the contract according 
104.19  to subdivision 6.  The sponsor may or may not renew a contract 
104.20  at the end of the term for any ground listed in paragraph (b).  
104.21  A sponsor may unilaterally terminate a contract during the term 
104.22  of the contract for any ground listed in paragraph (b).  At 
104.23  least 60 days before not renewing or terminating a contract, the 
104.24  sponsor shall notify the board of directors of the charter 
104.25  school of the proposed action in writing.  The notice shall 
104.26  state the grounds for the proposed action in reasonable detail 
104.27  and that the charter school's board of directors may request in 
104.28  writing an informal hearing before the sponsor within 14 days of 
104.29  receiving notice of nonrenewal or termination of the contract.  
104.30  Failure by the board of directors to make a written request for 
104.31  a hearing within the 14-day period shall be treated as 
104.32  acquiescence to the proposed action.  Upon receiving a timely 
104.33  written request for a hearing, the sponsor shall give reasonable 
104.34  notice to the charter school's board of directors of the hearing 
104.35  date.  The sponsor shall conduct an informal hearing before 
104.36  taking final action.  The sponsor shall take final action to 
105.1   renew or not renew a contract by the last day of classes in the 
105.2   school year.  If the sponsor is a local board, the school's 
105.3   board of directors may appeal the sponsor's decision to the 
105.4   commissioner. 
105.5      (b) A contract may be terminated or not renewed upon any of 
105.6   the following grounds: 
105.7      (1) failure to meet the requirements for pupil performance 
105.8   contained in the contract; 
105.9      (2) failure to meet generally accepted standards of fiscal 
105.10  management; 
105.11     (3) violations of law; or 
105.12     (4) other good cause shown. 
105.13     If a contract is terminated or not renewed, the school must 
105.14  be dissolved according to the applicable provisions of chapter 
105.15  308A or 317A, except when the commissioner approves the decision 
105.16  of a different eligible sponsor to authorize the charter school. 
105.17     (c) The commissioner, after providing reasonable notice to 
105.18  the governing body of a charter school and the existing sponsor, 
105.19  and after providing an opportunity for a public hearing, may 
105.20  terminate the existing sponsorial relationship if: 
105.21     (1) the charter school has a history of financial 
105.22  mismanagement; or 
105.23     (2) the charter school has a history of repeated violations 
105.24  of the law. 
105.25     <b>EFFECTIVE DATE:</b>  This section is effective the day 
105.26  following final enactment. 
105.27     Sec. 34.  Minnesota Statutes 1999 Supplement, section 
105.28  124D.11, subdivision 4, is amended to read: 
105.29     Subd. 4.  [BUILDING LEASE AID.] ~~When a charter school finds~~ 
105.30  ~~it economically advantageous to rent or lease a building or land~~ 
105.31  ~~for any instructional purposes and it determines that the total~~ 
105.32  ~~operating capital revenue under section 126C.10, subdivision 13,~~ 
105.33  ~~is insufficient for this purpose, it may apply to the~~ 
105.34  ~~commissioner for building lease aid for this purpose.~~  Criteria 
105.35  for aid approval and revenue uses shall be as defined for the 
105.36  building lease levy in section 126C.40, subdivision 1, 
106.1   paragraphs (a) and (b).  A charter school is eligible for 
106.2   building lease aid.  Buildings leased by charter schools must 
106.3   meet all local and state building codes, state health and safety 
106.4   requirements, and federal Americans with Disabilities Act 
106.5   requirements.  The commissioner shall approve the amount of 
106.6   building lease aid.  The amount of building lease aid per pupil 
106.7   unit served for a charter school for any year ~~shall not exceed~~ 
106.8   equals the lesser of (a) 90 percent of the approved cost or (b) 
106.9   the product of the pupil units served for the current school 
106.10  year times ~~$1,500~~ $750.  Existing charter schools must apply by 
106.11  January 15 of the fiscal year in which the lease applies to be 
106.12  considered for this program.  The amount of building lease aid 
106.13  shall be subject to proration based upon the actual 
106.14  appropriation.  
106.15     Sec. 35.  Minnesota Statutes 1999 Supplement, section 
106.16  124D.11, subdivision 6, is amended to read: 
106.17     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
106.18  school is eligible to receive other aids, grants, and revenue 
106.19  according to chapters 120A to 129C, as though it were a district.
106.20     (b) Notwithstanding paragraph (a), a charter school may not 
106.21  receive aid, a grant, or revenue if a levy is required to obtain 
106.22  the money, except as otherwise provided in this section.  
106.23     (c) Federal aid received by the state must be paid to the 
106.24  school, if it qualifies for the aid as though it were a school 
106.25  district. 
106.26     (d) A charter school may receive money from any source for 
106.27  capital facilities needs.  In the year-end report to the 
106.28  commissioner of children, families, and learning, the charter 
106.29  school shall report the total amount of funds received from 
106.30  grants and other outside sources. 
106.31     (e) Notwithstanding paragraph (a) or (b), a charter school 
106.32  ~~is eligible~~ may apply for a grant to receive the aid portion of 
106.33  integration revenue under section 124D.86, subdivision 3, for 
106.34  enrolled students who are residents of a district that is 
106.35  eligible for integration revenue ~~if the enrollment of the pupil~~ 
106.36  ~~in the charter school contributes to desegregation or~~ 
107.1   ~~integration purposes~~.  The commissioner shall determine grant 
107.2   recipients and may adopt application guidelines.  The grants 
107.3   must be competitively determined and must demonstrate that the 
107.4   enrollment of pupils in the charter school contributes to 
107.5   desegregation or integration purposes as determined by the 
107.6   commissioner.  If the charter school has elected not to provide 
107.7   transportation under section 124D.10, subdivision 16, the aid 
107.8   shall be reduced by the amount per pupil unit specified for the 
107.9   district where the charter school is located under section 
107.10  123B.92, subdivision 8. 
107.11     <b>EFFECTIVE DATE:</b>  This section is effective the day 
107.12  following final enactment. 
107.13     Sec. 36.  Minnesota Statutes 1998, section 124D.128, 
107.14  subdivision 4, is amended to read: 
107.15     Subd. 4.  [TRANSPORTATION.] A district must report data to 
107.16  the department as required by the department to account for 
107.17  learning year summer transportation expenditures ~~for this~~ 
107.18  ~~program must be included in nonregular transportation according~~ 
107.19  ~~to sections 124.225, subdivision 8; and 124.226, subdivision 4~~.  
107.20     Sec. 37.  Minnesota Statutes 1999 Supplement, section 
107.21  126C.05, subdivision 3, is amended to read: 
107.22     Subd. 3.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
107.23  revenue pupil units for fiscal year 1998 and thereafter must be 
107.24  computed according to this subdivision.  
107.25     (a) The compensation revenue concentration percentage for 
107.26  each building in a district equals the product of 100 times the 
107.27  ratio of:  
107.28     (1) the sum of the number of pupils enrolled in the 
107.29  building eligible to receive free lunch plus one-half of the 
107.30  pupils eligible to receive reduced priced lunch on October 1 of 
107.31  the previous fiscal year; to 
107.32     (2) the number of pupils enrolled in the building on 
107.33  October 1 of the previous fiscal year. 
107.34     (b) The compensation revenue pupil weighting factor for a 
107.35  building equals the lesser of one or the quotient obtained by 
107.36  dividing the building's compensation revenue concentration 
108.1   percentage by 80.0.  
108.2      (c) The compensation revenue pupil units for a building 
108.3   equals the product of:  
108.4      (1) the sum of the number of pupils enrolled in the 
108.5   building eligible to receive free lunch and one-half of the 
108.6   pupils eligible to receive reduced priced lunch on October 1 of 
108.7   the previous fiscal year; times 
108.8      (2) the compensation revenue pupil weighting factor for the 
108.9   building; times 
108.10     (3) .60. 
108.11     (d) Notwithstanding paragraphs (a) to (c), for charter 
108.12  schools and contracted alternative programs in the first year of 
108.13  operation, or for any year of operation when the number of 
108.14  pupils eligible for free or reduced lunch in the current year is 
108.15  more than 20 percent greater than in the previous year, 
108.16  compensation revenue pupil units shall be computed using data 
108.17  for the current fiscal year.  If the charter school or 
108.18  contracted alternative program begins operation after October 1, 
108.19  compensatory revenue pupil units shall be computed based on 
108.20  pupils enrolled on an alternate date determined by the 
108.21  commissioner, and the compensation revenue pupil units shall be 
108.22  prorated based on the ratio of the number of days of student 
108.23  instruction to 170 days. 
108.24     (e) The percentages in this subdivision must be based on 
108.25  the count of individual pupils and not on a building average or 
108.26  minimum. 
108.27     Sec. 38.  Minnesota Statutes 1999 Supplement, section 
108.28  127A.05, subdivision 6, is amended to read: 
108.29     Subd. 6.  [SURVEY OF DISTRICTS.] The commissioner of 
108.30  children, families, and learning shall survey the state's school 
108.31  districts and teacher preparation programs and report to the 
108.32  education committees of the legislature by January 15 of each 
108.33  odd-numbered year on the status of teacher early retirement 
108.34  patterns, the teacher shortage, and the substitute teacher 
108.35  shortage, including patterns and shortages in subject areas and 
108.36  regions of the state.  The report must also include how 
109.1   districts are making progress in hiring teachers and substitutes 
109.2   in the areas of shortage and a five-year projection of teacher 
109.3   demand for each district. 
109.4      Sec. 39.  Minnesota Statutes 1999 Supplement, section 
109.5   148.235, is amended by adding a subdivision to read: 
109.6      Subd. 8.  [NONPRESCRIPTION DRUGS IN SCHOOLS.] Nothing in 
109.7   sections 148.171 to 148.285 prohibits a school nurse from 
109.8   providing nonprescription drugs or medications to a pupil in a 
109.9   school upon the request of a parent or guardian of the pupil as 
109.10  long as the nonprescription drugs or medications are 
109.11  administered in accordance with section 121A.22. 
109.12     Sec. 40.  Minnesota Statutes 1998, section 169.447, is 
109.13  amended by adding a subdivision to read: 
109.14     Subd. 2a.  [PASSENGER LAP AND SHOULDER BELTS.] (a) In 
109.15  addition to the requirements in section 169.4501, subdivision 1, 
109.16  a school bus may be equipped with an approved lap belt or an 
109.17  approved lap and shoulder belt installed for each 
109.18  passenger-seating position on the bus.  The design and 
109.19  installation of lap belts and lap and shoulder belts required 
109.20  under this paragraph must meet the standards of the commissioner 
109.21  established under paragraph (b). 
109.22     (b) The commissioner shall consider all concerns necessary 
109.23  to properly integrate lap belts or lap and shoulder belts into 
109.24  the current compartmentalization safety system and prescribe 
109.25  standards for the design and installation of lap and shoulder 
109.26  belts required under paragraph (a).  The standards are not 
109.27  subject to chapter 14 and are specifically not subject to 
109.28  section 14.386. 
109.29     (c) This subdivision does not apply to specially equipped 
109.30  school buses under section 169.4504. 
109.31     (d) A passenger on a school bus equipped with lap belts or 
109.32  lap and shoulder belts must use these lap belts or lap and 
109.33  shoulder belts unless the passenger, or if the passenger is a 
109.34  minor, the passenger's parent or guardian, has notified the 
109.35  school district in writing that the passenger does not intend to 
109.36  wear the lap belt or lap and shoulder belt. 
110.1      (e) In an action for personal injury or wrongful death 
110.2   against a school district, a school bus operator under contract 
110.3   with a school district, or any agent or employee of a school 
110.4   district or operator, or against a volunteer, no such person or 
110.5   entity shall be held liable solely because the injured party was 
110.6   not wearing a safety belt; provided, however, that nothing 
110.7   contained herein shall be construed to grant immunity from 
110.8   liability for failure to: 
110.9      (1) maintain in operating order any equipment required by 
110.10  statute, rule, or school district policy; or 
110.11     (2) comply with an applicable statute, rule, or school 
110.12  district policy. 
110.13     (f) In an action for personal injury or wrongful death, a 
110.14  school district, a school bus contract operator, any agent or 
110.15  employee of a school district or operator, or a volunteer is not 
110.16  liable for failing to assist any child with the adjustment, 
110.17  fastening, unfastening, or other use of the lap belt or lap and 
110.18  shoulder belt. 
110.19     <b>EFFECTIVE DATE:</b>  This section is effective the day 
110.20  following final enactment. 
110.21     Sec. 41.  Minnesota Statutes 1998, section 169.448, 
110.22  subdivision 3, is amended to read: 
110.23     Subd. 3.  [HEAD START VEHICLE.] Notwithstanding subdivision 
110.24  1, a vehicle used to transport ~~passengers~~ students under Public 
110.25  Law Number 99-425, the Head Start Act, may be equipped as a 
110.26  school bus or Head Start bus.  
110.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
110.28  following final enactment. 
110.29     Sec. 42.  Minnesota Statutes 1998, section 171.06, 
110.30  subdivision 2, is amended to read: 
110.31     Subd. 2.  [FEES.] (a) The fees for a license and Minnesota 
110.32  identification card are as follows: 
110.33  Classified Driver's License  D-$18.50 C-$22.50 B-$29.50 A-$37.50
110.34  Classified Under-21 D.L.     D-$18.50 C-$22.50 B-$29.50 A-$17.50
110.35  Instruction Permit                                        $ 9.50
110.36  Provisional License                                       $ 9.50
111.1   Duplicate License or
111.2    duplicate identification card                            $ 8.00
111.3   Minnesota identification card or Under-21 Minnesota
111.4   identification card, other than duplicate,
111.5   except as otherwise provided in section 171.07,
111.6   subdivisions 3 and 3a $12.50
111.7      (b) Notwithstanding paragraph (a), a person who holds a 
111.8   provisional license and has a driving record free of (1) 
111.9   convictions for a violation of section 169.121, 169.1218, 
111.10  169.122, or 169.123, (2) convictions for crash-related moving 
111.11  violations, and (3) convictions for moving violations that are 
111.12  not crash related, shall have a $3.50 credit toward the fee for 
111.13  any classified under-21 driver's license.  "Moving violation" 
111.14  has the meaning given it in section 171.04, subdivision 1. 
111.15     (c) In addition to the driver's license fee required under 
111.16  paragraph (a), the registrar shall collect an additional $4 
111.17  processing fee from each new applicant or person renewing a 
111.18  license with a school bus endorsement to cover the costs for 
111.19  processing an applicant's initial and biennial physical 
111.20  examination certificate.  The department shall not charge these 
111.21  applicants any other fee to receive or renew the endorsement. 
111.22     <b>EFFECTIVE DATE:</b>  This section is effective the day 
111.23  following final enactment. 
111.24     Sec. 43.  Minnesota Statutes 1998, section 171.321, is 
111.25  amended to read: 
111.26     171.321 [QUALIFICATIONS OF SCHOOL BUS DRIVER.] 
111.27     Subdivision 1.  [SCHOOL BUS ENDORSEMENT.] (a) No person 
111.28  shall drive a school bus when transporting school children to or 
111.29  from school or upon a school-related trip or activity without 
111.30  having a valid class A, class B, ~~or~~ class C, or class D driver's 
111.31  license with a school bus endorsement except that a person 
111.32  possessing a valid driver's license but not a school bus 
111.33  endorsement may drive a vehicle with a seating capacity of ten 
111.34  or ~~less~~ fewer persons used as a school bus but not outwardly 
111.35  equipped or identified as a school bus. 
111.36     (b) Notwithstanding section 171.08, a person who otherwise 
112.1   meets the qualifications for a school bus endorsement or 
112.2   temporary endorsement under subdivision 3, paragraph (b), may 
112.3   drive a school bus for up to 30 days without an endorsement so 
112.4   long as the employer of the person: 
112.5      (1) has in possession all documentation required for 
112.6   issuing the endorsement; and 
112.7      (2) has forwarded proof of possession of the documentation 
112.8   to the commissioner of public safety. 
112.9      Subd. 1a.  [RESPONSIBILITY FOR ENDORSEMENT STATUS.] It is 
112.10  the responsibility of the commissioner of public safety to issue 
112.11  a school bus endorsement to a qualified applicant.  When the 
112.12  endorsement has been issued, it is the responsibility of the 
112.13  individual to whom the endorsement is issued to ensure that the 
112.14  endorsement is in effect before the individual operates a school 
112.15  bus.  The employer of a school bus driver shall check the 
112.16  endorsement status when the school bus driver is hired and at 
112.17  least twice during each 12-month period thereafter. 
112.18     Subd. 2.  [RULES.] (a) The commissioner of public safety 
112.19  shall prescribe rules governing the physical qualifications of 
112.20  school bus drivers and tests required to obtain a school bus 
112.21  endorsement.  The rules must provide that an applicant for a 
112.22  school bus endorsement or renewal is exempt from the physical 
112.23  qualifications and medical examination required to operate a 
112.24  school bus upon providing evidence of being medically examined 
112.25  and certified within the preceding 24 months as physically 
112.26  qualified to operate a commercial motor vehicle, pursuant to 
112.27  Code of Federal Regulations, title 49, part 391, subpart E, or 
112.28  rules of the commissioner of transportation incorporating those 
112.29  federal regulations.  The commissioner shall accept physical 
112.30  examinations for school bus drivers conducted by medical 
112.31  examiners authorized as provided by the Code of Federal 
112.32  Regulations, title 49, chapter 3, part 391, subpart E. 
112.33     (b) The commissioner of public safety, in conjunction with 
112.34  the commissioner of economic security, shall adopt rules 
112.35  prescribing a training program for Head Start bus drivers.  The 
112.36  program must provide for initial classroom and behind-the-wheel 
113.1   training, and annual in-service training.  The program must 
113.2   provide training in defensive driving, human relations, 
113.3   emergency and accident procedures, vehicle maintenance, traffic 
113.4   laws, and use of safety equipment.  The program must provide 
113.5   that the training will be conducted by the contract operator for 
113.6   a Head Start agency, the Head Start grantee, a licensed driver 
113.7   training school, or by another person or entity approved by both 
113.8   commissioners. 
113.9      Subd. 3.  [RECORDS CHECK OF APPLICANT.] (a) Before issuing 
113.10  or renewing a school bus endorsement, the commissioner shall 
113.11  conduct a criminal and driver's license records check of the 
113.12  applicant.  The commissioner may also conduct the check at any 
113.13  time while a person is so licensed.  The check ~~shall~~ must 
113.14  consist of a criminal records check of the state criminal 
113.15  records repository and a check of the driver's license records 
113.16  system.  If the applicant has resided in Minnesota for less than 
113.17  five years, the check ~~shall~~ must also include a criminal records 
113.18  check of information from the state law enforcement agencies in 
113.19  the states where the person resided during the five years before 
113.20  moving to Minnesota, and of the national criminal records 
113.21  repository including the criminal justice data communications 
113.22  network.  The applicant's failure to cooperate with the 
113.23  commissioner in conducting the records check is reasonable cause 
113.24  to deny an application or cancel a school bus endorsement.  The 
113.25  commissioner may not release the results of the records check to 
113.26  any person except the applicant or the applicant's designee in 
113.27  writing. 
113.28     (b) The commissioner may issue to an otherwise qualified 
113.29  applicant a temporary school bus endorsement, effective for no 
113.30  more than 180 days, upon presentation of (1) an affidavit by the 
113.31  applicant that the applicant has not been convicted of a 
113.32  disqualifying offense and (2) a criminal history check from each 
113.33  state of residence for the previous five years.  The criminal 
113.34  history check may be conducted and prepared by any public or 
113.35  private source acceptable to the commissioner.  The commissioner 
113.36  may reissue the temporary endorsement if the National Criminal 
114.1   Records Repository check is timely submitted but not completed 
114.2   within the 180-day period. 
114.3      Subd. 4.  [TRAINING.] (a) No person shall drive a class A, 
114.4   B, C, or D school bus when transporting school children to or 
114.5   from school or upon a school-related trip or activity without 
114.6   having demonstrated sufficient skills and knowledge to transport 
114.7   students in a safe and legal manner. 
114.8      (b) A bus driver must have training or experience that 
114.9   allows the driver to meet at least the following competencies: 
114.10     (1) safely operate the type of school bus the driver will 
114.11  be driving; 
114.12     (2) understand student behavior, including issues relating 
114.13  to students with disabilities; 
114.14     (3) encourage orderly conduct of students on the bus and 
114.15  handle incidents of misconduct appropriately; 
114.16     (4) know and understand relevant laws, rules of the road, 
114.17  and local school bus safety policies; 
114.18     (5) handle emergency situations; and 
114.19     (6) safely load and unload students. 
114.20     (c) The commissioner of public safety, in conjunction with 
114.21  the commissioner of children, families, and learning, shall 
114.22  develop a comprehensive model school bus driver training program 
114.23  and model assessments for school bus driver training 
114.24  competencies, which are not subject to chapter 14.  A school 
114.25  district may use alternative assessments for bus driver training 
114.26  competencies with the approval of the commissioner of public 
114.27  safety.  The employer shall keep the assessment for the current 
114.28  period available for inspection by representatives of the 
114.29  commissioner. 
114.30     Subd. 5.  [ANNUAL EVALUATION.] A school district's pupil 
114.31  transportation safety director, the chief administrator of a 
114.32  nonpublic school, or a private contractor shall certify annually 
114.33  to the ~~commissioner of public safety~~ school board or governing 
114.34  board of a nonpublic school that, at minimum, each school bus 
114.35  driver meets the school bus driver training competencies under 
114.36  subdivision 4 ~~and shall report the number of hours of in-service~~ 
115.1   ~~training completed by each driver~~.  A school district, nonpublic 
115.2   school, or private contractor also shall provide in-service 
115.3   training annually to each school bus driver.  ~~A district,~~ 
115.4   ~~nonpublic school, or private contractor also shall check the~~ 
115.5   ~~license of each person who transports students for the district~~ 
115.6   ~~with the National Drivers Register or the department of public~~ 
115.7   ~~safety annually.  The school board must approve and forward the~~ 
115.8   ~~competency certification and in-service report to the~~ 
115.9   ~~commissioner of public safety.~~ 
115.10     <b>EFFECTIVE DATE:</b>  This section is effective the day 
115.11  following final enactment. 
115.12     Sec. 44.  Minnesota Statutes 1998, section 354.05, 
115.13  subdivision 2, is amended to read: 
115.14     Subd. 2.  [TEACHER.] (a) "Teacher" means: 
115.15     (1) a person who renders service as a teacher, supervisor, 
115.16  principal, superintendent, librarian, nurse, counselor, social 
115.17  worker, therapist, or psychologist in the public schools of the 
115.18  state located outside of the corporate limits of the cities of 
115.19  the first class as those cities were so classified on January 1, 
115.20  1979, or in the state colleges and universities system, or in 
115.21  any charitable, penal, or correctional institutions of a 
115.22  governmental subdivision, or who is engaged in educational 
115.23  administration in connection with the state public school 
115.24  system, including the state colleges and university system, but 
115.25  excluding the University of Minnesota, whether the position be a 
115.26  public office or an employment, not including members or 
115.27  officers of any general governing or managing board or body; 
115.28     (2) an employee of the teachers retirement association 
115.29  unless the employee is covered by the Minnesota state retirement 
115.30  system by virtue of prior employment by the association; 
115.31     (3) a person who renders teaching service on a part-time 
115.32  basis and who also renders other services for a single employing 
115.33  unit.  In such cases, the executive director shall determine 
115.34  whether all or none of the combined service is covered by the 
115.35  association, however a person whose teaching service comprises 
115.36  at least 50 percent of the combined employment salary is a 
116.1   member of the association for all services with the single 
116.2   employing unit; or 
116.3      (4) a person who renders services as a teacher, supervisor, 
116.4   principal, superintendent, librarian, nurse, counselor, social 
116.5   worker, therapist, or psychologist in a public school, 
116.6   including, but not limited to, charter schools organized under 
116.7   section 124D.10, when such services are provided by such person 
116.8   as an employee of a teacher controlled professional association 
116.9   formed under chapters 308A, 319B, 322B, 323, 323A, or any other 
116.10  appropriate law. 
116.11     (b) The term does not mean: 
116.12     (1) an employee described in section 352D.02, subdivision 
116.13  1a, who is hired after the effective date of Laws 1986, chapter 
116.14  458; 
116.15     (2) a person who works for a school or institution as an 
116.16  independent contractor as defined by the Internal Revenue 
116.17  Service; 
116.18     (3) a person employed in subsidized on-the-job training, 
116.19  work experience or public service employment as an enrollee 
116.20  under the federal Comprehensive Employment and Training Act from 
116.21  and after March 30, 1978, unless the person has, as of the later 
116.22  of March 30, 1978, or the date of employment, sufficient service 
116.23  credit in the retirement association to meet the minimum vesting 
116.24  requirements for a deferred retirement annuity, or the employer 
116.25  agrees in writing on forms prescribed by the executive director 
116.26  to make the required employer contributions, including any 
116.27  employer additional contributions, on account of that person 
116.28  from revenue sources other than funds provided under the federal 
116.29  Comprehensive Training and Employment Act, or the person agrees 
116.30  in writing on forms prescribed by the executive director to make 
116.31  the required employer contribution in addition to the required 
116.32  employee contribution; 
116.33     (4) a person holding a part-time adult supplementary 
116.34  technical college license who renders part-time teaching service 
116.35  in a technical college if (i) the service is incidental to the 
116.36  regular nonteaching occupation of the person; and (ii) the 
117.1   applicable technical college stipulates annually in advance that 
117.2   the part-time teaching service will not exceed 300 hours in a 
117.3   fiscal year and retains the stipulation in its records; and 
117.4   (iii) the part-time teaching service actually does not exceed 
117.5   300 hours in a fiscal year; or 
117.6      (5) a person exempt from licensure pursuant to section 
117.7   122A.30. 
117.8      Sec. 45.  Minnesota Statutes 1998, section 354A.011, 
117.9   subdivision 27, is amended to read: 
117.10     Subd. 27.  [TEACHER.] "Teacher" means any person who 
117.11  renders service in a public school district, including, but not 
117.12  limited to, a charter school organized under section 124D.10, 
117.13  located in the corporate limits of one of the cities of the 
117.14  first class which was so classified on January 1, 1979, as any 
117.15  of the following: 
117.16     (a) a full-time employee in a position for which a valid 
117.17  license from the state department of children, families, and 
117.18  learning is required; 
117.19     (b) an employee of the teachers retirement fund association 
117.20  located in the city of the first class unless the employee has 
117.21  exercised the option pursuant to Laws 1955, chapter 10, section 
117.22  1, to retain membership in the Minneapolis employees retirement 
117.23  fund established pursuant to chapter 422A; 
117.24     (c) a part-time employee in a position for which a valid 
117.25  license from the state department of children, families, and 
117.26  learning is required; ~~or~~ 
117.27     (d) a part-time employee in a position for which a valid 
117.28  license from the state department of children, families, and 
117.29  learning is required who also renders other nonteaching services 
117.30  for the school district unless the board of trustees of the 
117.31  teachers retirement fund association determines that the 
117.32  combined employment is on the whole so substantially dissimilar 
117.33  to teaching service that the service shall not be covered by the 
117.34  association; or 
117.35     (e) an employee of a teacher controlled professional 
117.36  association formed under chapter 308A, 319B, 322B, 323, 323A, or 
118.1   any other appropriate law. 
118.2      The term shall not mean any person who renders service in 
118.3   the school district as any of the following: 
118.4      (1) an independent contractor or the employee of an 
118.5   independent contractor; 
118.6      (2) an employee who is a full-time teacher covered by 
118.7   another teachers retirement fund association established 
118.8   pursuant to this chapter or chapter 354; 
118.9      (3) an employee exempt from licensure pursuant to section 
118.10  122A.30; 
118.11     (4) an employee who is a teacher in a technical college 
118.12  located in a city of the first class unless the person elects 
118.13  coverage by the applicable first class city teacher retirement 
118.14  fund association under section 354B.21, subdivision 2; or 
118.15     (5) an employee who is a part-time teacher in a technical 
118.16  college in a city of the first class and who has elected 
118.17  coverage by the applicable first class city teacher retirement 
118.18  fund association under section 354B.21, subdivision 2, but (i) 
118.19  the teaching service is incidental to the regular nonteaching 
118.20  occupation of the person; (ii) the applicable technical college 
118.21  stipulates annually in advance that the part-time teaching 
118.22  service will not exceed 300 hours in a fiscal year; and (iii) 
118.23  the part-time teaching actually does not exceed 300 hours in the 
118.24  fiscal year to which the certification applies. 
118.25     Sec. 46.  Minnesota Statutes 1998, section 471.15, is 
118.26  amended to read: 
118.27     471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 
118.28  BONDS.] 
118.29     (a) Any home rule charter or statutory city or any town, 
118.30  county, school district, or any board thereof, or any 
118.31  incorporated post of the American Legion or any other 
118.32  incorporated veterans' organization, may expend not to exceed 
118.33  $800 in any one year, for the purchase of awards and trophies 
118.34  and may operate a program of public recreation and playgrounds; 
118.35  acquire, equip, and maintain land, buildings, or other 
118.36  recreational facilities, including an outdoor or indoor swimming 
119.1   pool; and expend funds for the operation of such program 
119.2   pursuant to the provisions of sections 471.15 to 471.19.  The 
119.3   city, town, county or school district may issue bonds pursuant 
119.4   to chapter 475 for the purpose of carrying out the powers 
119.5   granted by this section.  The city, town, county or school 
119.6   district may operate the program and facilities directly or 
119.7   establish one or more recreation boards to operate all or 
119.8   various parts of them. 
119.9      (b) A town may expend funds for the purpose of supporting 
119.10  student academic and extra curricula activities sponsored by the 
119.11  local school district. 
119.12     Sec. 47.  Laws 1999, chapter 241, article 5, section 18, 
119.13  subdivision 5, is amended to read: 
119.14     Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
119.15  lease aid according to Minnesota Statutes, section 124D.11, 
119.16  subdivision 4: 
119.17       ~~$2,992,000~~ $5,981,000   ..... 2000
119.18       ~~$3,616,000~~ $9,975,000   ..... 2001
119.19     The 2000 appropriation includes $194,000 for 1999 and 
119.20  ~~$2,798,000~~ $5,787,000 for 2000. 
119.21     The 2001 appropriation includes ~~$311,000~~ $643,000 for 2000 
119.22  and ~~$3,305,000~~ $9,332,000 for 2001.  
119.23     <b>EFFECTIVE DATE:</b>  This section is effective the day 
119.24  following final enactment. 
119.25     Sec. 48.  Laws 1999, chapter 241, article 5, section 18, 
119.26  subdivision 6, is amended to read: 
119.27     Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
119.28  school start-up cost aid under Minnesota Statutes, section 
119.29  124D.11: 
119.30       ~~$1,789,000~~ $1,955,000     .....     2000 
119.31       ~~$1,876,000~~ $2,926,000    .....     2001 
119.32     The 2000 appropriation includes $100,000 for 1999 and 
119.33  ~~$1,689,000~~ $1,855,000 for 2000. 
119.34     The 2001 appropriation includes ~~$188,000~~ $706,000 for ~~1999~~ 
119.35  2000 and ~~$1,688,000~~ $2,720,000 for 2001. 
119.36     Any balance in the first year does not cancel but is 
120.1   available in the second year.  This appropriation may also be 
120.2   used for grants to convert existing schools into charter schools.
120.3      <b>EFFECTIVE DATE:</b>  This section is effective the day 
120.4   following final enactment. 
120.5      Sec. 49.  [MINNESOTA NEW TEACHER PROJECT.] 
120.6      Subdivision 1.  [ESTABLISHMENT; PARTICIPATION.] The 
120.7   Minnesota new teacher project is established in the department 
120.8   of children, families, and learning in order to retain new 
120.9   teachers in the profession and to provide models for supporting 
120.10  the professional development of first-year and second-year 
120.11  teachers.  In order for a school district to participate in the 
120.12  new teacher project, a school board and an exclusive 
120.13  representative of the teachers in the district, or for a charter 
120.14  school the majority of the teachers, must agree to participate 
120.15  in the new teacher project and to the district plan under 
120.16  subdivision 2. 
120.17     Subd. 2.  [DISTRICT PLAN.] A district that participates in 
120.18  the new teacher project must submit a plan for the project to 
120.19  the commissioner for approval.  The new teacher project plan 
120.20  must be consistent with the knowledge and skills required in the 
120.21  teacher licensure rules adopted by the board of teaching and the 
120.22  state graduation requirements and include curricula of best 
120.23  practice activities such as one-on-one mentoring, intensive 
120.24  summer orientation, first-year and second-year training 
120.25  workshops, peer review, mutual observation between new and 
120.26  experienced teachers, classroom management techniques, cultural 
120.27  diversity, reading strategies, lighter workloads, and first-year 
120.28  residency.  The plan must include the participation of a teacher 
120.29  preparation program approved by the board of teaching. 
120.30     Districts receiving a grant under this section must report 
120.31  to the board of teaching regarding its chosen new teacher 
120.32  project plan. 
120.33     Subd. 3.  [STATE MATCH.] A district that has an approved 
120.34  new teacher project plan is eligible to receive $3,000 of state 
120.35  money for each new teacher participating in the project.  The 
120.36  district must contribute $2,000 of district money for each new 
121.1   teacher participating in the project. 
121.2      Sec. 50.  [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE 
121.3   TASK FORCE.] 
121.4      (a) The commissioner of employee relations shall convene a 
121.5   task force on postretirement and active employee health care.  
121.6   The task force shall identify strategies for providing 
121.7   postretirement and active employee health care coverage for 
121.8   public employees and make recommendations regarding the most 
121.9   appropriate and efficient manner for providing postretirement 
121.10  and active employee health care. 
121.11     (b) One-half of the task force membership shall be composed 
121.12  of employees and the other half of the membership must be 
121.13  composed of employers.  The task force shall include, but not be 
121.14  limited to, the following: 
121.15     (1) a representative of the department of employee 
121.16  relations; 
121.17     (2) a representative of the Minnesota state retirement 
121.18  system; 
121.19     (3) a representative of the teachers retirement 
121.20  association; 
121.21     (4) a representative of the public employees retirement 
121.22  association; 
121.23     (5) a representative of the first class city teacher 
121.24  retirement fund associations; 
121.25     (6) a representative of the first class city police and 
121.26  fire department relief associations; 
121.27     (7) a representative of the Minneapolis employees 
121.28  retirement fund; 
121.29     (8) a representative of the legislative coordinating 
121.30  commission subcommittee on employee relations; 
121.31     (9) one representative each from the Minnesota school 
121.32  boards association, Minnesota service cooperatives, the 
121.33  association of Minnesota counties, the Minnesota association of 
121.34  townships, and the league of Minnesota cities; 
121.35     (10) exclusive representatives of affected public 
121.36  employees; and 
122.1      (11) representatives of major public employers. 
122.2      (c) The task force shall report its findings and 
122.3   recommendations to the legislature by November 15, 2000.  The 
122.4   report shall address: 
122.5      (1) alternative methods of providing and paying for 
122.6   postretirement and active employee health care; 
122.7      (2) the estimated cost of providing postretirement and 
122.8   active employee health care under various alternatives, 
122.9   including statewide, regional, or market alternatives; 
122.10     (3) the most efficient administrative structure for 
122.11  providing for postretirement and active employee health care; 
122.12  and 
122.13     (4) issues of adverse selection, cost containment, consumer 
122.14  choice, and consider options for dealing with other employee 
122.15  concerns. 
122.16     (d) The task force shall conduct the study and assemble 
122.17  data in a manner that will provide for the ability to conduct 
122.18  analysis for subsets of the groups being studied by employer and 
122.19  employee types. 
122.20     Sec. 51.  [TASK FORCE ON SCHOOL GOVERNANCE AND MANAGEMENT.] 
122.21     Subdivision 1.  [ESTABLISHMENT.] The task force on school 
122.22  governance and management is established to examine the existing 
122.23  constitutional and statutory provisions that dictate the 
122.24  governance responsibilities and authority of the respective 
122.25  components of the state's public education system. 
122.26     Subd. 2.  [MEMBERSHIP; STAFFING.] (a) The task force on 
122.27  school governance and management must be composed of nine 
122.28  members, with three members appointed by the governor, three 
122.29  members appointed by the speaker of the house of 
122.30  representatives, and three members appointed by the subcommittee 
122.31  on committees of the senate committee on rules and 
122.32  administration.  Members should represent the business 
122.33  community, education stakeholders, parents, or other interested 
122.34  community members. 
122.35     (b) The executive branch through the office of the governor 
122.36  shall make staff available to assist the task force. 
123.1      Subd. 3.  [REPORT.] (a) The task force on school governance 
123.2   and management must report to the governor and the appropriate 
123.3   committees of the house and senate no later than December 1, 
123.4   2000. 
123.5      (b) The task force must do the following: 
123.6      (1) identify any governance or organizational barriers that 
123.7   inhibit or preclude schools or school districts from: 
123.8      (i) ensuring all students meet state and local graduation 
123.9   standards; 
123.10     (ii) ensuring instructional programs are available to meet 
123.11  individual student's academic needs; 
123.12     (iii) making efficient changes in instructional and 
123.13  noninstructional program and service delivery; and 
123.14     (iv) delegating instructional and general operating 
123.15  decision-making to the school level; and 
123.16     (2) make recommendations regarding the statutory changes 
123.17  needed to enable school districts to: 
123.18     (i) continuously identify changes to meet the needs of 
123.19  student cohorts; 
123.20     (ii) provide a variety of instructional opportunities to 
123.21  meet individual student needs; 
123.22     (iii) measure individual student academic achievement; and 
123.23     (iv) modify or expand instructional programs if student 
123.24  achievement does not meet expectations. 
123.25     Subd. 4.  [EXPIRATION.] The task force on school governance 
123.26  and management expires on December 31, 2000. 
123.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
123.28  following final enactment. 
123.29     Sec. 52.  [2000-2001 SCHOOL YEAR START DATE.] 
123.30     Subdivision 1.  [LABOR DAY START.] Notwithstanding 
123.31  Minnesota Statutes, section 120A.40, for the 2000-2001 school 
123.32  year only, a district must not begin the elementary or secondary 
123.33  school year prior to Labor Day. 
123.34     Subd. 2.  [MABEL-CANTON.] Notwithstanding subdivision 1 and 
123.35  Minnesota Statutes, section 120A.40, for the 2000-2001 school 
123.36  year only, independent school district No. 238, Mabel-Canton, 
124.1   may start the school year up to five weekdays before Labor Day 
124.2   for the purpose of scheduling an additional academic term during 
124.3   the regular school year. 
124.4      Sec. 53.  [TEACHER PREPARATION PROGRAM CREATED.] 
124.5      Subdivision 1.  [TEACHER PREPARATION LEADING TO LICENSURE.] 
124.6   The board of trustees of the Minnesota state colleges and 
124.7   universities shall offer a program of teacher preparation 
124.8   leading to licensure, involving Metropolitan state university, 
124.9   Inver Hills community college, and Minneapolis community and 
124.10  technical college.  The institutions involved shall enter into 
124.11  an agreement whereby Inver Hills community college and 
124.12  Minneapolis community and technical college shall provide the 
124.13  first two years of the program, and Metropolitan state 
124.14  university shall provide the final two years of the program.  In 
124.15  fall semester 2000, Minneapolis community and technical college 
124.16  and Inver Hills community college shall offer a preeducation 
124.17  program.  After development of the program in fiscal year 2001, 
124.18  Metropolitan state university shall begin its licensure program 
124.19  in fall semester 2001.  The program shall focus on preparing 
124.20  teachers to meet the specific needs of urban and inner-ring 
124.21  suburban schools and shall emphasize significant direct 
124.22  classroom teaching experience and mentoring throughout each 
124.23  student's preparation.  The program may also focus on the 
124.24  professional development of pre-tenure teachers.  Metropolitan 
124.25  state university, Inver Hills community college, and Minneapolis 
124.26  community and technical college are encouraged to enter into 
124.27  partnerships with urban and inner-ring suburban schools to 
124.28  provide for significant involvement of elementary and secondary 
124.29  teachers in the mentoring of students enrolled in the program.  
124.30  The program shall establish a goal that at least 50 percent of 
124.31  the participants be students of color. 
124.32     Subd. 2.  [REPORT REQUIRED.] By February 15, 2002, the 
124.33  board of trustees shall provide a progress report to the chairs 
124.34  of the higher education finance divisions of the legislature 
124.35  regarding the development of the teacher preparation program.  
124.36  The report shall include feedback from enrolled students 
125.1   concerning how the program meets their needs, as well as from 
125.2   cooperating elementary and secondary schools on how the students 
125.3   are performing on site.  The report shall also include the 
125.4   number of participants in the program who are students of color. 
125.5      Sec. 54.  [CHARTER SCHOOL BUILDING LEASE AID ADJUSTMENT.] 
125.6      Notwithstanding Minnesota Statutes, section 124D.11, 
125.7   subdivision 4, for fiscal year 2000 and fiscal year 2001 only, 
125.8   the amount of building lease aid for a charter school with a 
125.9   lease signed before March 15, 2000, equals the lesser of: 
125.10     (1) 90 percent of the approved cost in the current year for 
125.11  leases signed before March 15, 2000; or 
125.12     (2) the product of the pupil units served for the current 
125.13  school year times $1,500. 
125.14     <b>EFFECTIVE DATE:</b>  This section is effective the day 
125.15  following final enactment. 
125.16     Sec. 55.  [CHARTER SCHOOL BUILDING LEASE AID REVIEW.] 
125.17     The department of children, families, and learning shall 
125.18  work with charter school operators and other interested parties 
125.19  to create recommendations for appropriate criteria for charter 
125.20  school building lease aid and report its findings to the 
125.21  education committees of the legislature by January 15, 2001. 
125.22     Sec. 56.  [APPROPRIATIONS.] 
125.23     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
125.24  LEARNING.] The sum indicated in this section is appropriated 
125.25  from the general fund to the department of children, families, 
125.26  and learning for the fiscal year indicated. 
125.27     Subd. 2.  [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE.] 
125.28  For a report on postretirement and active employee health care: 
125.29       $150,000     .....     2001 
125.30     Subd. 3.  [BUSINESS CHARTER SCHOOL START-UP GRANT.] For a 
125.31  new charter school with a business immersion program that 
125.32  occupies a publicly owned building in St. Paul: 
125.33       $200,000     .....     2001 
125.34     Subd. 4.  [PROFESSIONAL TEACHING STANDARDS.] For grant 
125.35  awards for national board for professional teaching standards 
125.36  certification according to Laws 1997, First Special Session 
126.1   chapter 4, article 5, section 22: 
126.2        $150,000     .....     2001
126.3      Sec. 57.  [REPEALER.] 
126.4      Minnesota Statutes 1998, section 120A.41, is repealed 
126.5   effective for the 2000-2001 and later school years. 
126.6                              ARTICLE 6
126.7                     NUTRITION AND OTHER PROGRAMS
126.8      Section 1.  [123B.575] [PESTICIDE APPLICATION AT SCHOOLS.] 
126.9      Subdivision 1.  [PARENTS' RIGHT-TO-KNOW ACT.] Subdivisions 
126.10  2 to 9 may be cited as the Janet B. Johnson Parents' 
126.11  Right-to-Know Act of 2000. 
126.12     Subd. 2.  [PESTICIDE APPLICATION NOTIFICATION.] A school 
126.13  that plans to apply a pesticide which is a toxicity category I, 
126.14  II, or III pesticide product, as classified by the United States 
126.15  Environmental Protection Agency, or a restricted use pesticide, 
126.16  as designated under the Federal Insecticide, Fungicide, and 
126.17  Rodenticide Act, must provide a notice to parents and employees 
126.18  that it applies such pesticides.  The notice required under 
126.19  subdivision 3 must: 
126.20     (1) provide that an estimated schedule of the pesticide 
126.21  applications is available for review or copying at the school 
126.22  offices where such pesticides are applied; 
126.23     (2) state that long-term health effects on children from 
126.24  the application of such pesticides or the class of chemicals to 
126.25  which they belong may not be fully understood; 
126.26     (3) inform parents that a parent may request the school 
126.27  notify him or her in the manner specified in subdivision 6 
126.28  before any application of a pesticide listed in this subdivision.
126.29     Subd. 3.  [NOTICE; TIMING; DISTRIBUTION.] The notice must 
126.30  be provided during the first two weeks of each school year 
126.31  during which pesticides listed in subdivision 2 are planned to 
126.32  be applied.  The notice may be included with other notices 
126.33  provided by the school, but must be separately identified and 
126.34  clearly visible to the reader.  
126.35     Subd. 4.  [SCHOOL HANDBOOK OR NEWSLETTER INFORMATION.] In 
126.36  addition to the notice provided during the first two weeks of 
127.1   the school year, a school that is required to provide notice 
127.2   under this section shall include in any school handbook or 
127.3   newsletter a section informing parents that an estimated 
127.4   schedule of applications of pesticides listed in subdivision 2 
127.5   is available for review or copying at the school offices, and 
127.6   that a parent may receive prior notice of each application if 
127.7   specifically requested.  
127.8      Subd. 5.  [NOTICE AVAILABILITY.] A school that uses a 
127.9   pesticide listed in subdivision 2 must keep a copy of all 
127.10  notifications required under subdivisions 2 and 3 in a manner 
127.11  available to the public.  
127.12     Subd. 6.  [NOTIFICATION FOR INDIVIDUAL PARENTS.] A parent 
127.13  of a student at a school may request that the school principal 
127.14  or other person having general control and supervision of the 
127.15  school notify the parent prior to the application of any 
127.16  pesticides listed in subdivision 2 at the school.  The school 
127.17  principal or other person having general control and supervision 
127.18  of the school must provide reasonable notice to a parent who has 
127.19  requested such notification prior to applying such pesticides.  
127.20  The notice may be waived for emergency applications required 
127.21  only by appropriate state or local health officials.  The notice 
127.22  must include the pesticide to be applied, the time of the 
127.23  planned application, and the location at the school of the 
127.24  planned application. 
127.25     Subd. 7.  [MODEL NOTICE.] The department of health, in 
127.26  consultation with the department of children, families, and 
127.27  learning and the office of environmental assistance, shall 
127.28  develop and make available to schools by August 1, 2000, a model 
127.29  notice in a form that can be used by a school if it chooses to 
127.30  do so.  The model notice must include the information required 
127.31  by this section.  The department of health must provide an 
127.32  opportunity for environmental groups and interested parents to 
127.33  work with the department in developing the model notice.  
127.34     Subd. 8.  [PLAN.] A school is not required to adopt an 
127.35  integrated pest management plan.  A school board may only notify 
127.36  students, parents, or employees that it has adopted an 
128.1   integrated pest management plan if the plan is a managed pest 
128.2   control program designed to minimize the risk to human health 
128.3   and the environment and to reduce the use of chemical 
128.4   pesticides, and which ranks the district's response to pests in 
128.5   the following manner: 
128.6      (1) identifying pests which need to be controlled; 
128.7      (2) establishing tolerable limits of each identified pest; 
128.8      (3) designing future buildings and landscapes to prevent 
128.9   identified pests; 
128.10     (4) excluding identified pests from sites and buildings 
128.11  using maintenance practices; 
128.12     (5) adapting cleaning activities and best management 
128.13  practices to minimize the number of pests; 
128.14     (6) using mechanical methods of controlling identified 
128.15  pests; and 
128.16     (7) controlling identified pests using the least toxic 
128.17  pesticides with the least exposure to persons as is practicable. 
128.18     Subd. 9.  [PESTICIDE DEFINED; CLEANING PRODUCTS 
128.19  EXCLUDED.] For purposes of this section, the term "pesticide" 
128.20  has the meaning given it in section 18B.01, subdivision 18, 
128.21  except that it does not include any disinfectants, sanitizers, 
128.22  deodorizers, or antimicrobial agents used for general cleaning 
128.23  purposes. 
128.24     Subd. 10.  [PEST DEFINED.] For purposes of this section, 
128.25  the term "pest" has the meaning given it in section 18B.01, 
128.26  subdivision 17. 
128.27     Subd. 11.  [SCHOOL DEFINED.] For the purposes of this 
128.28  section, "school" means a school as defined in section 120A.22, 
128.29  subdivision 4, excluding home schools. 
128.30     Subd. 12.  [IMMUNITY FROM LIABILITY.] No cause of action 
128.31  may be brought against a school district, a school, or the 
128.32  districts or school's employees or agents for any action taken 
128.33  by them in performing their duties under this section. 
128.34     <b>EFFECTIVE DATE:</b>  This section is effective August 1, 2000. 
128.35     Sec. 2.  Minnesota Statutes 1998, section 123B.80, is 
128.36  amended by adding a subdivision to read: 
129.1      Subd. 4.  [FUND TRANSFER.] A district may permanently 
129.2   transfer funds without a levy reduction under section 475.61 if 
129.3   at least 30 days prior to the transfer it adopts a board 
129.4   resolution authorizing the action and informs each property 
129.5   taxpayer in the district by first-class mail of the proposed 
129.6   amount to be transferred.  The notice must indicate that state 
129.7   law requires the district to otherwise reduce school levies and 
129.8   that levies will be higher by the amount.  This notice 
129.9   requirement also applies to any transfer made under this section 
129.10  or by any special provision enacted into law.  If the transfer 
129.11  under this section or special law would not otherwise have 
129.12  resulted in a levy reduction, the notice must include the amount 
129.13  and must indicate that property tax levies will not be used for 
129.14  the original purpose for which they were levied. 
129.15     Sec. 3.  Minnesota Statutes 1998, section 124D.111, 
129.16  subdivision 1, is amended to read: 
129.17     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
129.18  year, the state must pay districts participating in the national 
129.19  school lunch program the amount of ~~6.5~~ eight cents for each full 
129.20  paid, reduced, and free student lunch served to students in the 
129.21  district.  
129.22     <b>EFFECTIVE DATE:</b>  This section is effective the day 
129.23  following final enactment. 
129.24     Sec. 4.  Laws 1999, chapter 241, article 6, section 14, 
129.25  subdivision 2, is amended to read: 
129.26     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
129.27  Minnesota Statutes, section 127A.49:  
129.28        ~~$9,110,000~~ $9,577,000   .....     2000 
129.29        ~~$8,947,000~~ $8,279,000   .....     2001 
129.30     The 2000 appropriation includes $1,352,000 for 1999 and 
129.31  ~~$7,758,000~~ $8,225,000 for 2000.  
129.32     The 2001 appropriation includes ~~$861,000~~ $914,000 for 2000 
129.33  and ~~$8,086,000~~ $7,365,000 for 2001.  
129.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
129.35  following final enactment. 
129.36     Sec. 5.  Laws 1999, chapter 241, article 6, section 14, 
130.1   subdivision 3, is amended to read: 
130.2      Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
130.3   education aid according to Minnesota Statutes, sections 123B.40 
130.4   to 123B.48 and 123B.87: 
130.5        ~~$10,996,000~~ $11,552,000   .....      2000 
130.6        ~~$11,878,000~~ $12,757,000   .....      2001 
130.7      The 2000 appropriation includes $970,000 for 1999 and 
130.8   ~~$10,026,000~~ $10,582,000 for 2000. 
130.9      The 2001 appropriation includes ~~$1,114,000~~ $1,175,000 for 
130.10  2000 and ~~$10,764,000~~ $11,582,000 for 2001.  
130.11     The department shall recompute the maximum allotments 
130.12  established on March 1, 1999, for fiscal year 2000 under 
130.13  Minnesota Statutes, sections 123B.42, subdivision 3, and 
130.14  123B.44, subdivision 6, to reflect the amount appropriated in 
130.15  this subdivision for fiscal year 2000. 
130.16     <b>EFFECTIVE DATE:</b>  This section is effective the day 
130.17  following final enactment. 
130.18     Sec. 6.  Laws 1999, chapter 241, article 6, section 14, 
130.19  subdivision 4, is amended to read: 
130.20     Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
130.21  consolidating under Minnesota Statutes, section 123A.485: 
130.22       ~~$451,000~~ $563,000      .....     2000
130.23       ~~$375,000~~ $455,000      .....     2001
130.24     The 2000 appropriation includes $113,000 for 1999 and 
130.25  ~~$338,000~~ $450,000 for 2000. 
130.26     The 2001 appropriation includes ~~$37,000~~ $50,000 for 2000 
130.27  and ~~$338,000~~ $405,000 for 2001. 
130.28     Any balance in the first year does not cancel but is 
130.29  available in the second year. 
130.30     <b>EFFECTIVE DATE:</b>  This section is effective the day 
130.31  following final enactment. 
130.32     Sec. 7.  Laws 1999, chapter 241, article 6, section 14, 
130.33  subdivision 5, is amended to read: 
130.34     Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
130.35  pupil transportation aid under Minnesota Statutes, section 
130.36  123B.92, subdivision 9: 
131.1        ~~$18,586,000~~ $20,358,000   .....     2000 
131.2        ~~$20,922,000~~ $21,333,000   .....     2001 
131.3      The 2000 appropriation includes $1,848,000 for 2000 and 
131.4   ~~$16,738,000~~ $18,510,000 for 2001. 
131.5      The 2001 appropriation includes ~~$1,860,000~~ $2,057,000 for 
131.6   2000 and ~~$19,062,000~~ $19,276,000 for 2001. 
131.7      <b>EFFECTIVE DATE:</b>  This section is effective the day 
131.8   following final enactment. 
131.9      Sec. 8.  Laws 1999, chapter 241, article 7, section 2, 
131.10  subdivision 2, is amended to read: 
131.11     Subd. 2.  [SCHOOL LUNCH AID.] (a) For school lunch aid 
131.12  according to Minnesota Statutes, section 124D.111, and Code of 
131.13  Federal Regulations, title 7, section 210.17, and for school 
131.14  milk aid according to Minnesota Statutes, section 124D.118:  
131.15       $8,200,000     .....     2000 
131.16       $8,200,000     .....     2001 
131.17     (b) Any unexpended balance remaining from the 
131.18  appropriations in this subdivision shall be prorated among 
131.19  participating schools based on the number of free, reduced, and 
131.20  fully paid federally reimbursable student lunches served during 
131.21  that school year.  
131.22     (c) ~~If the appropriation amount attributable to either year~~ 
131.23  ~~is insufficient, the rate of payment for each fully paid student~~ 
131.24  ~~lunch shall be reduced and the aid for that year shall be~~ 
131.25  ~~prorated among participating schools so as not to exceed the~~ 
131.26  ~~total authorized appropriation for that year.~~  
131.27     ~~(d)~~ Not more than $800,000 of the amount appropriated each 
131.28  year may be used for school milk aid. 
131.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
131.30  following final enactment. 
131.31     Sec. 9.  Laws 1999, chapter 241, article 7, section 2, 
131.32  subdivision 5, is amended to read: 
131.33     Subd. 5.  [SCHOOL BREAKFAST.] To operate the school 
131.34  breakfast program according to Minnesota Statutes, sections 
131.35  124D.115 and 124D.117: 
131.36       ~~$456,000~~ $713,000     .....     2000
132.1        ~~$456,000~~ $713,000     .....     2001
132.2      ~~If the appropriation amount attributable to either year is~~ 
132.3   ~~insufficient, the rate of payment for each fully paid student~~ 
132.4   ~~breakfast shall be reduced and the aid for that year shall be~~ 
132.5   ~~prorated among participating schools so as not to exceed the~~ 
132.6   ~~total authorized appropriation for that year.~~  Any unexpended 
132.7   balance remaining shall be used to subsidize the payments made 
132.8   for school lunch aid per Minnesota Statutes, section 124D.111.  
132.9      Up to one percent of the program funding can be used by the 
132.10  department of children, families, and learning for technical and 
132.11  administrative assistance. 
132.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
132.13  following final enactment. 
132.14     Sec. 10.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 
132.15  WEB SITE.] 
132.16     The department of children, families, and learning must 
132.17  maintain a list of pesticides that are classified as toxicity 
132.18  category I, II, or III pesticide products or as restricted use 
132.19  pesticides under the Federal Insecticide, Fungicide, and 
132.20  Rodenticide Act.  The department must maintain the list on its 
132.21  Web site or as a prominent link on its Web site to another state 
132.22  or federal agency's Web site. 
132.23     <b>EFFECTIVE DATE:</b>  This section is effective August 1, 2000. 
132.24     Sec. 11.  [FUND TRANSFERS.] 
132.25     Subdivision 1.  [BROWERVILLE.] Notwithstanding Minnesota 
132.26  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
132.27  on June 30, 2000, independent school district No. 787, 
132.28  Browerville, may permanently transfer up to $110,000 from its 
132.29  debt redemption fund to its operating capital fund without 
132.30  making a levy reduction. 
132.31     Subd. 2.  [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 
132.32  Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 
132.33  2000, upon approval of the commissioner of children, families, 
132.34  and learning, independent school district No. 771, 
132.35  Chokio-Alberta, may permanently transfer up to $121,000 from its 
132.36  reserved account for disabled accessibility to its undesignated 
133.1   general fund balance. 
133.2      (b) Prior to making the fund transfer, independent school 
133.3   district No. 771, Chokio-Alberta, must demonstrate to the 
133.4   commissioner's satisfaction that the district's school buildings 
133.5   are accessible to students or employees with disabilities. 
133.6      Subd. 3.  [FERGUS FALLS.] Notwithstanding Minnesota 
133.7   Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
133.8   independent school district No. 544, Fergus Falls, on June 30, 
133.9   2000, may permanently transfer up to $200,000 from the debt 
133.10  redemption fund to the general fund without making a levy 
133.11  reduction. 
133.12     Subd. 4.  [GRAND MEADOW.] Notwithstanding Minnesota 
133.13  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
133.14  independent school district No. 495, Grand Meadow, may 
133.15  permanently transfer up to $300,000 from its disabled access 
133.16  account in the general fund to its capital fund.  This transfer 
133.17  is contingent upon the school district's successful construction 
133.18  of a new kindergarten through grade 12 school. 
133.19     Subd. 5.  [LAKEVILLE.] Notwithstanding Minnesota Statutes, 
133.20  section 123B.79 or 123B.80, independent school district No. 194, 
133.21  Lakeville, may transfer up to $1,000,000 from its reserved 
133.22  account for operating capital to the unreserved, undesignated 
133.23  general fund.  When independent school district No. 194, 
133.24  Lakeville, attains a positive unreserved, undesignated general 
133.25  fund balance greater than ten percent of the most recent fiscal 
133.26  year's expenditures, the district shall transfer the amount 
133.27  exceeding ten percent to its reserve account for operating 
133.28  capital until an amount is transferred back that is equal to the 
133.29  amount transferred under this authority.  This subdivision 
133.30  expires on December 31, 2014.  
133.31     Subd. 6.  [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 
133.32  sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 
133.33  30, 2000, independent school district No. 832, Mahtomedi, may 
133.34  permanently transfer up to $525,000 from its debt redemption 
133.35  fund to its capital account in its general fund without making a 
133.36  levy reduction to purchase land for a school facility. 
134.1      Subd. 7.  [NORMAN COUNTY EAST.] Notwithstanding Minnesota 
134.2   Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
134.3   on June 2000, independent school district No. 2215, Norman 
134.4   County East, may permanently transfer up to $419,000 from its 
134.5   building construction fund to the reserved account for operating 
134.6   capital in the general fund without making a levy reduction. 
134.7      Subd. 8.  [ST. FRANCIS.] Notwithstanding Minnesota 
134.8   Statutes, section 123B.53, on June 30, 2000, independent school 
134.9   district No. 15, St. Francis, may permanently transfer $543,000 
134.10  from its debt service fund to the general fund to help the 
134.11  district out of statutory operating debt without making a levy 
134.12  reduction.  This transfer is contingent upon the district 
134.13  maintaining 105 percent of principal and interest against the 
134.14  debt service fund liabilities. 
134.15     Subd. 9.  [STAPLES-MOTLEY.] Notwithstanding Minnesota 
134.16  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
134.17  on May 31, 2000, independent school district No. 2170, 
134.18  Staples-Motley, may permanently transfer up to $71,000 from the 
134.19  debt service account of the former independent school district 
134.20  No. 483, Motley, to independent school district No. 2170, 
134.21  Staples-Motley's, operating capital fund without making a levy 
134.22  reduction. 
134.23     Subd. 10.  [WIN-E-MAC.] At the completion of the 
134.24  consolidation of independent school district No. 604, Mentor, 
134.25  and independent school district No. 2609, Win-E-Mac, up to 
134.26  $125,000 may be transferred from the former Mentor school 
134.27  district health and safety reserve fund to the Win-E-Mac health 
134.28  and safety reserve fund. 
134.29     Subd. 11.  [PARKERS PRAIRIE.] Notwithstanding Minnesota 
134.30  Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
134.31  independent school district No. 547, Parkers Prairie, on June 
134.32  30, 2000, may permanently transfer up to $105,000 from the debt 
134.33  redemption fund to the reserved account for operating capital in 
134.34  the general fund without making a levy reduction. 
134.35     <b>EFFECTIVE DATE:</b>  This section is effective the day 
134.36  following final enactment. 
135.1      Sec. 12.  [INTERMEDIATE DISTRICTS.] 
135.2      Notwithstanding any termination date in the agreements 
135.3   between the intermediate school districts and the Minnesota 
135.4   state colleges and universities board for the use of space in 
135.5   the technical colleges or any law to the contrary, the 
135.6   agreements shall not expire or terminate. 
135.7      Sec. 13.  [REVIEW OF FEDERAL RESTRICTIONS ON SCHOOL TRUST 
135.8   FUND LANDS.] 
135.9      The attorney general and the commissioner of natural 
135.10  resources shall review the extent to which federal law and 
135.11  policy diminish the return to the school trust fund by impairing 
135.12  the use of school trust fund land.  The attorney general and the 
135.13  commissioner shall pursue efforts to make the school trust fund 
135.14  whole, including the use of litigation if necessary. 
135.15     Sec. 14.  [APPROPRIATIONS.] 
135.16     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
135.17  LEARNING.] The sums indicated in this section are appropriated 
135.18  from the general fund to the department of children, families, 
135.19  and learning for the fiscal years designated. 
135.20     Subd. 2.  [ASSISTANCE FOR IMMIGRANT FAMILIES.] For grants 
135.21  to organizations that assist immigrants, ages 12 to 24, in 
135.22  becoming literate and acquiring vocational skills: 
135.23         $500,000     .....     2001
135.24     Subd. 3.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
135.25  HOMELESS CHILDREN.] For matching grants for education programs 
135.26  serving homeless children under Laws 1997, First Special Session 
135.27  chapter 4, article 2, section 48: 
135.28       $1,000,000     .....     2001
135.29     Subd. 4.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
135.30  EXPENSES.] For a grant and administrative expenses to facilitate 
135.31  planning for a cooperative secondary facility under a joint 
135.32  powers agreement for school district Nos. 411, Balaton, 402, 
135.33  Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 
135.34  Tyler: 
135.35         $100,000     .....     2001
135.36     Subd. 5.  [ARTS VIA THE INTERNET.] For an arts via the 
136.1   Internet collaborative project between the Walker art center and 
136.2   the Minneapolis institute of arts: 
136.3        $1,000,000     .....     2001
136.4      Subd. 6.  [BEST PRACTICES SEMINARS.] For best practices 
136.5   graduation rule seminars to be conducted by the commissioner 
136.6   after consultation with Education Minnesota: 
136.7        $4,000,000     .....     2001
136.8   Of this amount, $500,000 is for the Minnesota children's museum 
136.9   reading program and $1,000,000 is for the Minnesota new teacher 
136.10  project. 
136.11     Subd. 7.  [MAGNET SCHOOL FACILITIES GRANTS.] (a) For magnet 
136.12  school facilities grants: 
136.13       $1,500,000     .....     2001
136.14     (b) Of this amount, $1,200,000 is for the discovery magnet 
136.15  school in independent school district No. 347, Willmar, for 
136.16  capital and operating costs of the magnet school serving 
136.17  children from birth through grade 4. 
136.18     (c) Of this amount, $300,000 is to independent school 
136.19  district No. 696, Ely, to determine the feasibility of 
136.20  establishing a joint secondary and higher education 
136.21  environmental studies magnet school. 
136.22     Subd. 8.  [GEOGRAPHIC INFORMATION SYSTEMS.] To the director 
136.23  of the office of strategic and long-range planning to enhance 
136.24  the office's use of geographic information systems for 
136.25  educational demographics and other purposes: 
136.26       $100,000     .....     2001   
136.27     Subd. 9.  [SOBRIETY HIGH GRANT; UNITED SOUTH CENTRAL.] For 
136.28  a grant to independent school district No. 2134, United South 
136.29  Central, for its sobriety high program: 
136.30       $50,000     .....     2001
136.31     Sec. 15.  [REPEALER.] 
136.32     Minnesota Statutes 1999 Supplement, section 124D.1155, 
136.33  subdivision 5, is repealed. 
136.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
136.35  following final enactment. 
136.36                             ARTICLE 7 
137.1                              LIBRARIES 
137.2      Section 1.  Minnesota Statutes 1999 Supplement, section 
137.3   126C.10, subdivision 14, is amended to read: 
137.4      Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
137.5   operating capital revenue may be used only for the following 
137.6   purposes: 
137.7      (1) to acquire land for school purposes; 
137.8      (2) to acquire or construct buildings for school purposes; 
137.9      (3) to rent or lease buildings, including the costs of 
137.10  building repair or improvement that are part of a lease 
137.11  agreement; 
137.12     (4) to improve and repair school sites and buildings, and 
137.13  equip or reequip school buildings with permanent attached 
137.14  fixtures, including library media centers; 
137.15     (5) for a surplus school building that is used 
137.16  substantially for a public nonschool purpose; 
137.17     (6) to eliminate barriers or increase access to school 
137.18  buildings by individuals with a disability; 
137.19     (7) to bring school buildings into compliance with the 
137.20  Uniform Fire Code adopted according to chapter 299F; 
137.21     (8) to remove asbestos from school buildings, encapsulate 
137.22  asbestos, or make asbestos-related repairs; 
137.23     (9) to clean up and dispose of polychlorinated biphenyls 
137.24  found in school buildings; 
137.25     (10) to clean up, remove, dispose of, and make repairs 
137.26  related to storing heating fuel or transportation fuels such as 
137.27  alcohol, gasoline, fuel oil, and special fuel, as defined in 
137.28  section 296A.01; 
137.29     (11) for energy audits for school buildings and to modify 
137.30  buildings if the audit indicates the cost of the modification 
137.31  can be recovered within ten years; 
137.32     (12) to improve buildings that are leased according to 
137.33  section 123B.51, subdivision 4; 
137.34     (13) to pay special assessments levied against school 
137.35  property but not to pay assessments for service charges; 
137.36     (14) to pay principal and interest on state loans for 
138.1   energy conservation according to section 216C.37 or loans made 
138.2   under the Northeast Minnesota Economic Protection Trust Fund Act 
138.3   according to sections 298.292 to 298.298; 
138.4      (15) to purchase or lease interactive telecommunications 
138.5   equipment; 
138.6      (16) by board resolution, to transfer money into the debt 
138.7   redemption fund to:  (i) pay the amounts needed to meet, when 
138.8   due, principal and interest payments on certain obligations 
138.9   issued according to chapter 475; or (ii) pay principal and 
138.10  interest on debt service loans or capital loans according to 
138.11  section 126C.70; 
138.12     (17) to pay operating capital-related assessments of any 
138.13  entity formed under a cooperative agreement between two or more 
138.14  districts; 
138.15     (18) to purchase or lease computers and related materials, 
138.16  copying machines, telecommunications equipment, and other 
138.17  noninstructional equipment; 
138.18     (19) to purchase or lease assistive technology or equipment 
138.19  for instructional programs; 
138.20     (20) to purchase textbooks; 
138.21     (21) to purchase new and replacement library ~~books~~ media 
138.22  resources or technology; 
138.23     (22) to purchase vehicles; 
138.24     (23) to purchase or lease telecommunications equipment, 
138.25  computers, and related equipment for integrated information 
138.26  management systems for: 
138.27     (i) managing and reporting learner outcome information for 
138.28  all students under a results-oriented graduation rule; 
138.29     (ii) managing student assessment, services, and achievement 
138.30  information required for students with individual education 
138.31  plans; and 
138.32     (iii) other classroom information management needs; and 
138.33     (24) to pay personnel costs directly related to the 
138.34  acquisition, operation, and maintenance of telecommunications 
138.35  systems, computers, related equipment, and network and 
138.36  applications software. 
139.1      <b>EFFECTIVE DATE:</b>  This section is effective for the 
139.2   2000-2001 and later school years. 
139.3      Sec. 2.  Laws 1997, First Special Session chapter 4, 
139.4   article 8, section 4, as amended by Laws 1998, chapter 398, 
139.5   article 7, section 1, and Laws 1999, chapter 241, article 8, 
139.6   section 1, is amended to read: 
139.7      Sec. 4.  [LIBRARY PROJECT.] 
139.8      Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
139.9   contrary and subject to approvals in subdivision 2, a public 
139.10  library may operate as a library project jointly with the school 
139.11  library at Nashwauk-Keewatin high school, located in the city of 
139.12  Nashwauk.  The public library is established to serve persons 
139.13  within the boundaries of independent school district No. 319, 
139.14  except the city of Keewatin. 
139.15     Subd. 2.  [APPROVALS.] Operation of the public library is 
139.16  contingent upon the governing bodies of cities, towns, and 
139.17  unorganized townships within the geographical boundaries of 
139.18  independent school district No. 319, except for the city of 
139.19  Keewatin, entering into a joint powers agreement under Minnesota 
139.20  Statutes 1998, section 471.59, to accomplish the purpose of this 
139.21  section.  The joint powers agreement must provide for continuing 
139.22  the library project if one ~~party~~ or more parties to the 
139.23  agreement withdraws from or fails to enter into the agreement.  
139.24  For the purposes of this subdivision, the Itasca county board is 
139.25  designated as the governing body for the unorganized townships. 
139.26     Subd. 3.  [BOARD; APPOINTMENTS.] The joint powers agreement 
139.27  in subdivision 2 shall provide for a library board ~~of~~ up to 
139.28  seven members as follows:  two members appointed by the school 
139.29  board of independent school district No. 319, one member 
139.30  appointed by each town board located within independent school 
139.31  district No. 319 boundaries that is a signatory to the joint 
139.32  powers agreement, one member appointed by the council of the 
139.33  city of Nashwauk, and one member appointed by the Itasca county 
139.34  board to represent the unorganized towns within the school 
139.35  district territory. 
139.36     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
140.1   members shall serve for the term of the library project or to a 
140.2   maximum of three consecutive three-year terms.  An appointing 
140.3   authority may remove for misconduct or neglect any member it has 
140.4   appointed to the board and may replace that member by 
140.5   appointment.  Board members shall receive no compensation for 
140.6   their services but may be reimbursed for actual and necessary 
140.7   travel expenses incurred in the discharge of library board 
140.8   duties and activities. 
140.9      Subd. 5.  [FUNDING.] For taxes payable in ~~1998, 1999, 2000,~~ 
140.10  2001, 2002, and 2003 only, and provided that the joint powers 
140.11  agreement under subdivision 2 has been executed by September 1 
140.12  of the previous calendar year, the library board may levy a tax 
140.13  in an amount up to $25,000 annually on property located within 
140.14  the boundaries of independent school district No. 319, except 
140.15  the city of Keewatin.  The Itasca county auditor shall collect 
140.16  the tax and distribute it to the library board.  The levy shall 
140.17  be assessed against the individual members of the joint powers 
140.18  agreement.  The money may be used for library staff and for the 
140.19  purchase of library materials, including computer software.  ~~The~~ 
140.20  ~~levy must also fund the amount necessary to receive bookmobile~~ 
140.21  ~~services from the Arrowhead regional library system.~~  For taxes 
140.22  payable in ~~1998, 1999, 2000,~~ 2001, 2002, and 2003 only, the 
140.23  county may not levy under Minnesota Statutes, section 134.07, 
140.24  for the areas described in this section. 
140.25     Subd. 6.  [BUILDING.] The school district shall provide the 
140.26  physical space and costs associated with operating the library 
140.27  including, but not limited to, heat, light, telephone service, 
140.28  and maintenance. 
140.29     Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
140.30  the library board shall organize by electing one of its number 
140.31  as president and one as secretary, and it may appoint other 
140.32  officers it finds necessary. 
140.33     Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
140.34  and regulations for the library and for the conduct of its 
140.35  business as may be expedient and conformable to law.  It shall 
140.36  have exclusive control of the expenditure of all money collected 
141.1   for it.  The library board shall appoint a qualified library 
141.2   director and other staff, establish the compensation of 
141.3   employees, and remove any of them for cause.  The library board 
141.4   may contract with the school board, the regional library board, 
141.5   or the city in which the library is located to provide 
141.6   personnel, fiscal, or administrative services.  The contract 
141.7   shall state the personnel, fiscal, and administrative services 
141.8   and payments to be provided by each party. 
141.9      Subd. 9.  [CRITERIA.] The library shall meet all 
141.10  requirements in statutes and rules applicable to public 
141.11  libraries and school media centers.  A media supervisor licensed 
141.12  by the board of teaching may be the director of the library.  
141.13  Public parking, restrooms, drinking water, and other necessities 
141.14  shall be easily accessible to library patrons. 
141.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
141.16  following final enactment. 
141.17     Sec. 3.  Laws 1999, chapter 241, article 8, section 4, 
141.18  subdivision 4, is amended to read: 
141.19     Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
141.20  grants to regional public library systems under Minnesota 
141.21  Statutes, section 125B.20, subdivision 3: 
141.22       $1,200,000     .....     2000 
141.23       ~~$1,200,000~~ $3,700,000    .....     2001 
141.24     Any balance in the first year does not cancel but is 
141.25  available in the second year. 
141.26     Notwithstanding Minnesota Statutes, section 125B.20, 
141.27  subdivision 3, this appropriation may be used for video lines in 
141.28  addition to the uses under Minnesota Statutes, section 125B.20, 
141.29  subdivision 3. 
141.30     The budget base for this program for fiscal years 2002 and 
141.31  2003 is $1,200,000 for each year. 
141.32     Sec. 4.  Laws 1999, chapter 241, article 8, section 4, 
141.33  subdivision 5, is amended to read: 
141.34     Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
141.35  technology, and staffing for the Minnesota library for the blind 
141.36  and physically handicapped: 
142.1        $212,000     .....     2000 
142.2      This appropriation is available until June 30, 2001. 
142.3                              ARTICLE 8 
142.4            DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 
142.5      Section 1.  Laws 1999, chapter 241, article 10, section 6, 
142.6   is amended to read: 
142.7      Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
142.8   CENTER FOR ARTS EDUCATION.] 
142.9      The sums indicated in this section are appropriated from 
142.10  the general fund to the center for arts education for the fiscal 
142.11  years designated: 
142.12       $7,239,000     .....     2000
142.13       $7,400,000     .....     2001
142.14     Of each year's appropriation, $154,000 is to fund artist 
142.15  and arts organization participation in the education residency 
142.16  and education technology projects, $75,000 is for school support 
142.17  for the residency project, $121,000 is for further development 
142.18  of the partners:  arts and school for students (PASS) program, 
142.19  including pilots, and ~~$220,000~~ $110,000 is to fund the center 
142.20  for arts education base for asset preservation and facility 
142.21  repair.  The guidelines for the education residency project and 
142.22  the pass program shall be developed and defined by the center 
142.23  for arts education in cooperation with the Minnesota arts 
142.24  board.  The Minnesota arts board shall participate in the review 
142.25  and allocation process.  The center for arts education and the 
142.26  Minnesota arts board shall cooperate to fund these projects. 
142.27     Any balance in the first year does not cancel but is 
142.28  available in the second year. 
142.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
142.30  following final enactment. 
142.31     Sec. 2.  [PURCHASING COMPUTER HARDWARE AND SOFTWARE.] 
142.32     The department of children, families, and learning and 
142.33  local school districts shall not be precluded from purchasing 
142.34  computer hardware and software from specific vendors.  The 
142.35  department of children, families, and learning or any other 
142.36  governmental agency or subdivision shall only prescribe 
143.1   technology standards that include provisions for 
143.2   interoperability of computer systems and cross-platform access 
143.3   to computer programs. 
143.4                              ARTICLE 9 
143.5           TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS
143.6      Section 1.  Minnesota Statutes 1998, section 120A.22, 
143.7   subdivision 3, is amended to read: 
143.8      Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
143.9   this section and sections 120A.24~~,~~ and 120A.26, ~~and 120A.41,~~ 
143.10  "parent" means a parent, guardian, or other person having legal 
143.11  custody of a child.  
143.12     (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 
143.13  means a parent, guardian, or other person having legal custody 
143.14  of a child under age 18.  For an unmarried pupil age 18 or over, 
143.15  "parent" means the pupil unless a guardian or conservator has 
143.16  been appointed, in which case it means the guardian or 
143.17  conservator. 
143.18     (c) For purposes of sections 125A.03 to 125A.24 and 
143.19  125A.65, the school district of residence for an unmarried pupil 
143.20  age 18 or over who is a parent under paragraph (b) and who is 
143.21  placed in a center for care and treatment, shall be the school 
143.22  district in which the pupil's biological or adoptive parent or 
143.23  designated guardian resides. 
143.24     (d) For a married pupil age 18 or over, the school district 
143.25  of residence is the school district in which the married pupil 
143.26  resides. 
143.27     Sec. 2.  Minnesota Statutes 1998, section 122A.31, 
143.28  subdivision 4, is amended to read: 
143.29     Subd. 4.  [REIMBURSEMENT.] For purposes of revenue 
143.30  under ~~sections 125A.77 and~~ section 125A.78, the department of 
143.31  children, families, and learning must only reimburse school 
143.32  districts for the services of those interpreters/transliterators 
143.33  who satisfy the standards of competency under this section.  
143.34     Sec. 3.  Minnesota Statutes 1998, section 123B.02, is 
143.35  amended by adding a subdivision to read: 
143.36     Subd. 5a.  [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 
144.1   school property shall be governed according to section 609.605, 
144.2   subdivision 4. 
144.3      Sec. 4.  Minnesota Statutes 1998, section 123B.85, 
144.4   subdivision 1, is amended to read: 
144.5      Subdivision 1.  [APPLICATION.] The following words and 
144.6   terms in sections 121A.585, 121A.59, 123B.84 to 123B.87, ~~and~~ 
144.7   ~~123B.89 to~~ 123B.90, and 123B.91, shall have the following 
144.8   meanings ascribed to them. 
144.9      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
144.10  124D.128, subdivision 2, is amended to read: 
144.11     Subd. 2.  [COMMISSIONER DESIGNATION.] An area learning 
144.12  center designated by the state must be a site.  To be 
144.13  designated, a district or center must demonstrate to the 
144.14  commissioner that it will: 
144.15     (1) provide a program of instruction that permits pupils to 
144.16  receive instruction throughout the entire year; and 
144.17     (2) maintain a record system that, for purposes of section 
144.18  ~~124.17~~ 126C.05, permits identification of membership 
144.19  attributable to pupils participating in the program.  The record 
144.20  system and identification must ensure that the program will not 
144.21  have the effect of increasing the total number of pupil units 
144.22  attributable to an individual pupil as a result of a learning 
144.23  year program. 
144.24     Sec. 6.  Minnesota Statutes 1998, section 124D.454, 
144.25  subdivision 2, is amended to read: 
144.26     Subd. 2.  [DEFINITIONS.] For the purposes of this 
144.27  section ~~and section 125A.77~~, the definitions in this subdivision 
144.28  apply. 
144.29     (a) "Base year" for fiscal year 1996 means fiscal year 1995.
144.30  Base year for later fiscal years means the second fiscal year 
144.31  preceding the fiscal year for which aid will be paid. 
144.32     (b) "Basic revenue" has the meaning given it in section 
144.33  126C.10, subdivision 2.  For the purposes of computing basic 
144.34  revenue pursuant to this section, each child with a disability 
144.35  shall be counted as prescribed in section 126C.05, subdivision 1.
144.36     (c) "Average daily membership" has the meaning given it in 
145.1   section 126C.05. 
145.2      (d) "Program growth factor" means 1.00 for fiscal year 1998 
145.3   and later. 
145.4      (e) "Aid percentage factor" means 60 percent for fiscal 
145.5   year 1996, 70 percent for fiscal year 1997, 80 percent for 
145.6   fiscal year 1998, 90 percent for fiscal year 1999, and 100 
145.7   percent for fiscal year 2000 and later. 
145.8      Sec. 7.  Minnesota Statutes 1998, section 124D.454, 
145.9   subdivision 10, is amended to read: 
145.10     Subd. 10.  [EXCLUSION.] A district shall not receive aid 
145.11  pursuant to section 124D.453~~,~~ or 125A.76~~, or 125A.77~~ for 
145.12  salaries, supplies, travel or equipment for which the district 
145.13  receives aid pursuant to this section. 
145.14     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
145.15  125A.023, subdivision 3, is amended to read: 
145.16     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
145.17  section 125A.027, the following terms have the meanings given 
145.18  them: 
145.19     (a) "Health plan" means: 
145.20     (1) a health plan under section 62Q.01, subdivision 3; 
145.21     (2) a county-based purchasing plan under section 256B.692; 
145.22     (3) a self-insured health plan established by a local 
145.23  government under section 471.617; or 
145.24     (4) self-insured health coverage provided by the state to 
145.25  its employees or retirees. 
145.26     (b) For purposes of this section, "health plan company" 
145.27  means an entity that issues a health plan as defined in 
145.28  paragraph (a). 
145.29     (c) "Individual interagency intervention plan" means a 
145.30  standardized written plan describing those programs or services 
145.31  and the accompanying funding sources available to eligible 
145.32  children with disabilities. 
145.33     (d) "Interagency intervention service system" means a 
145.34  system that coordinates services and programs required in state 
145.35  and federal law to meet the needs of eligible children with 
145.36  disabilities ages three to 21, including: 
146.1      (1) services provided under the following programs or 
146.2   initiatives administered by state or local agencies: 
146.3      (i) the maternal and child health program under title V of 
146.4   the Social Security Act, United States Code, title 42, sections 
146.5   701 to 709; 
146.6      (ii) the Individuals with Disabilities Education Act under 
146.7   United States Code, title 20, chapter 33, subchapter II, 
146.8   sections 1411 to 1420; 
146.9      (iii) medical assistance under the Social Security Act, 
146.10  United States Code, title 42, chapter 7, subchapter XIX, section 
146.11  1396, et seq.; 
146.12     (iv) the Developmental Disabilities Assistance and Bill of 
146.13  Rights Act, United States Code, title 42, chapter 75, subchapter 
146.14  II, sections 6021 to 6030, Part B; 
146.15     (v) the Head Start Act, United States Code, title 42, 
146.16  chapter 105, subchapter II, sections 9831 to 9852; 
146.17     (vi) rehabilitation services provided under chapter 268A; 
146.18     (vii) Juvenile Court Act services provided under sections 
146.19  260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 
146.20  260C.451; 
146.21     (viii) the children's mental health collaboratives under 
146.22  section 245.493; 
146.23     (ix) the family service collaboratives under section 
146.24  124D.23; 
146.25     (x) the family community support plan under section 
146.26  245.4881, subdivision 4; 
146.27     (xi) the MinnesotaCare program under chapter 256L; 
146.28     (xii) the community health services grants under chapter 
146.29  145; 
146.30     (xiii) the Community Social Services Act funding under the 
146.31  Social Security Act, United States Code, title 42, sections 1397 
146.32  to 1397f; and 
146.33     (xiv) the community ~~interagency~~ transition interagency 
146.34  committees under section 125A.22; 
146.35     (2) services provided under a health plan in conformity 
146.36  with an individual family service plan or an individual 
147.1   education plan; and 
147.2      (3) additional appropriate services that local agencies and 
147.3   counties provide on an individual need basis upon determining 
147.4   eligibility and receiving a request from the interagency early 
147.5   intervention committee and the child's parent. 
147.6      (e) "Children with disabilities" has the meaning given in 
147.7   section 125A.02. 
147.8      (f) A "standardized written plan" means those individual 
147.9   services or programs available through the interagency 
147.10  intervention service system to an eligible child other than the 
147.11  services or programs described in the child's individual 
147.12  education plan or the child's individual family service plan. 
147.13     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
147.14  125A.023, subdivision 5, is amended to read: 
147.15     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
147.16  commissioner of children, families, and learning, based on 
147.17  recommendations from the state interagency committee, shall 
147.18  issue a request for proposals by January 1, 1999, for grants to 
147.19  the governing boards of interagency early intervention 
147.20  committees under section 125A.027 or a combination of one or 
147.21  more counties and school districts to establish five voluntary 
147.22  interagency intervention demonstration projects.  One grant 
147.23  shall be used to implement a coordinated service system for all 
147.24  eligible children with disabilities up to age five who received 
147.25  services under sections 125A.26 to 125A.48.  One grant shall be 
147.26  used to implement a coordinated service system for a population 
147.27  of minority children with disabilities from ages 12 to 21, who 
147.28  may have behavioral problems and are in need of transitional 
147.29  services.  Each project must be operational by July 1, 1999.  
147.30  The governing boards of the interagency early intervention 
147.31  committees and the counties and school districts receiving 
147.32  project grants must develop efficient ways to coordinate 
147.33  services and funding for children with disabilities ages three 
147.34  to 21, consistent with the requirements of this section and 
147.35  section 125A.027 and the guidelines developed by the state 
147.36  interagency committee under this section. 
148.1      (b) The state interagency committee shall evaluate the 
148.2   demonstration projects and provide the evaluation results to 
148.3   interagency early intervention committees. 
148.4      Sec. 10.  Minnesota Statutes 1999 Supplement, section 
148.5   125A.08, is amended to read: 
148.6      125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
148.7      (a) As defined in this section, ~~to the extent required by~~ 
148.8   ~~federal law as of July 1, 2000,~~ every district must ensure the 
148.9   following: 
148.10     (1) all students with disabilities are provided the special 
148.11  instruction and services which are appropriate to their needs.  
148.12  Where the individual education plan team has determined 
148.13  appropriate goals and objectives based on the student's needs, 
148.14  including the extent to which the student can be included in the 
148.15  least restrictive environment, and where there are essentially 
148.16  equivalent and effective instruction, related services, or 
148.17  assistive technology devices available to meet the student's 
148.18  needs, cost to the district may be among the factors considered 
148.19  by the team in choosing how to provide the appropriate services, 
148.20  instruction, or devices that are to be made part of the 
148.21  student's individual education plan.  The individual education 
148.22  plan team shall consider and may authorize services covered by 
148.23  medical assistance according to section 256B.0625, subdivision 
148.24  26.  The student's needs and the special education instruction 
148.25  and services to be provided must be agreed upon through the 
148.26  development of an individual education plan.  The plan must 
148.27  address the student's need to develop skills to live and work as 
148.28  independently as possible within the community.  By grade 9 or 
148.29  age 14, the plan must address the student's needs for transition 
148.30  from secondary services to post-secondary education and 
148.31  training, employment, community participation, recreation, and 
148.32  leisure and home living.  In developing the plan, districts must 
148.33  inform parents of the full range of transitional goals and 
148.34  related services that should be considered.  The plan must 
148.35  include a statement of the needed transition services, including 
148.36  a statement of the interagency responsibilities or linkages or 
149.1   both before secondary services are concluded; 
149.2      (2) children with a disability under age five and their 
149.3   families are provided special instruction and services 
149.4   appropriate to the child's level of functioning and needs; 
149.5      (3) children with a disability and their parents or 
149.6   guardians are guaranteed procedural safeguards and the right to 
149.7   participate in decisions involving identification, assessment 
149.8   including assistive technology assessment, and educational 
149.9   placement of children with a disability; 
149.10     (4) eligibility and needs of children with a disability are 
149.11  determined by an initial assessment or reassessment, which may 
149.12  be completed using existing data under United States Code, title 
149.13  20, section 33, et seq.; 
149.14     (5) to the maximum extent appropriate, children with a 
149.15  disability, including those in public or private institutions or 
149.16  other care facilities, are educated with children who are not 
149.17  disabled, and that special classes, separate schooling, or other 
149.18  removal of children with a disability from the regular 
149.19  educational environment occurs only when and to the extent that 
149.20  the nature or severity of the disability is such that education 
149.21  in regular classes with the use of supplementary services cannot 
149.22  be achieved satisfactorily; 
149.23     (6) in accordance with recognized professional standards, 
149.24  testing and evaluation materials, and procedures used for the 
149.25  purposes of classification and placement of children with a 
149.26  disability are selected and administered so as not to be 
149.27  racially or culturally discriminatory; and 
149.28     (7) the rights of the child are protected when the parents 
149.29  or guardians are not known or not available, or the child is a 
149.30  ward of the state. 
149.31     (b) For paraprofessionals employed to work in programs for 
149.32  students with disabilities, the school board in each district 
149.33  shall ensure that: 
149.34     (1) before or immediately upon employment, each 
149.35  paraprofessional develops sufficient knowledge and skills in 
149.36  emergency procedures, building orientation, roles and 
150.1   responsibilities, confidentiality, vulnerability, and 
150.2   reportability, among other things, to begin meeting the needs of 
150.3   the students with whom the paraprofessional works; 
150.4      (2) annual training opportunities are available to enable 
150.5   the paraprofessional to continue to further develop the 
150.6   knowledge and skills that are specific to the students with whom 
150.7   the paraprofessional works, including understanding 
150.8   disabilities, following lesson plans, and implementing follow-up 
150.9   instructional procedures and activities; and 
150.10     (3) a districtwide process obligates each paraprofessional 
150.11  to work under the ongoing direction of a licensed teacher and, 
150.12  where appropriate and possible, the supervision of a school 
150.13  nurse. 
150.14     Sec. 11.  Minnesota Statutes 1998, section 125A.76, 
150.15  subdivision 7, is amended to read: 
150.16     Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
150.17  INTERMEDIATES.] For the purposes of this section ~~and section~~ 
150.18  ~~125A.77~~, a special education cooperative or an intermediate 
150.19  district must allocate its approved expenditures for special 
150.20  education programs among participating school districts. 
150.21     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
150.22  125A.79, subdivision 8, is amended to read: 
150.23     Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
150.24  residents of the state, receive services under section 125A.76, 
150.25  subdivisions 1 and 2, and are placed in a care and treatment 
150.26  facility by court action in a state that does not have a 
150.27  reciprocity agreement with the commissioner under section 
150.28  ~~125A.115~~ 125A.155, the resident school district shall submit the 
150.29  balance of the tuition bills, minus the amount of the basic 
150.30  revenue, as defined by section 126C.10, subdivision 2, of the 
150.31  district for the child and the special education aid, and any 
150.32  other aid earned on behalf of the child. 
150.33     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
150.34  125A.80, is amended to read: 
150.35     125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 
150.36  OUT-OF-HOME PLACED STUDENTS.] 
151.1      The commissioner, in cooperation with the commissioners of 
151.2   human services and corrections and with input from appropriate 
151.3   billing system users, shall develop and implement a uniform 
151.4   billing system for school districts and other agencies, 
151.5   including private providers, who provide the educational 
151.6   services for students who are placed out of the home.  The 
151.7   uniform billing system must: 
151.8      (1) allow for the proper and timely billing to districts by 
151.9   service providers with a minimum amount of district 
151.10  administration; 
151.11     (2) allow districts to bill the state for certain types of 
151.12  special education and regular education services as provided by 
151.13  law; 
151.14     (3) provide flexibility for the types of services that are 
151.15  provided for children placed out of the home, including day 
151.16  treatment services; 
151.17     (4) allow the commissioner to track the type, cost, and 
151.18  quality of services provided for children placed out of the 
151.19  home; 
151.20     (5) conform existing special education and proposed regular 
151.21  education billing procedures; 
151.22     (6) provide a uniform reporting standard of per diem rates; 
151.23     (7) determine allowable expenses and maximum reimbursement 
151.24  rates for the state reimbursement of care and treatment services 
151.25  ~~according to section 124D.701~~; and 
151.26     (8) provide a process for the district to appeal to the 
151.27  commissioner tuition bills submitted to districts and to the 
151.28  state. 
151.29     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
151.30  125B.21, subdivision 3, is amended to read: 
151.31     Subd. 3.  [CRITERIA.] In addition to responsibilities of 
151.32  the council under Laws 1993, First Special Session chapter 2, as 
151.33  amended, the telecommunications council shall evaluate grant 
151.34  applications under section ~~124C.74~~ 125B.20 and applications from 
151.35  district organizations using the following criteria: 
151.36     (1) evidence of cooperative arrangements with other 
152.1   post-secondary institutions, school districts, and community and 
152.2   regional libraries in the geographic region; 
152.3      (2) plans for shared classes and programs; 
152.4      (3) avoidance of network duplication; 
152.5      (4) evidence of efficiencies to be achieved in delivery of 
152.6   instruction due to use of telecommunications; 
152.7      (5) a plan for development of a list of all courses 
152.8   available in the region for delivery at a distance; 
152.9      (6) a plan for coordinating and scheduling courses; and 
152.10     (7) a plan for evaluation of costs, access, and outcomes. 
152.11     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
152.12  126C.10, subdivision 24, is amended to read: 
152.13     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
152.14  qualifies for equity revenue if the school district's adjusted 
152.15  marginal cost pupil unit amount of basic revenue, supplemental 
152.16  revenue, transition revenue, and referendum revenue is less than 
152.17  the 90th percentile of school districts in its equity region for 
152.18  those revenue categories and the school district's 
152.19  administrative offices are not located in a city of the first 
152.20  class on July 1, 1999. 
152.21     (b) Equity revenue for a qualifying district that receives 
152.22  referendum revenue under section 126C.17, subdivision 4, equals 
152.23  the product of (1) the district's adjusted marginal cost pupil 
152.24  units for that year; times (2) the sum of (i) $10, plus (ii) 
152.25  $30, times the school district's equity index computed under 
152.26  ~~section 126C.10,~~ subdivision ~~6~~ 27. 
152.27     (c) Equity revenue for a qualifying district that does not 
152.28  receive referendum revenue under section 126C.17, subdivision 4, 
152.29  equals the product of the district's adjusted marginal cost 
152.30  pupil units for that year times $10. 
152.31     Sec. 16.  Minnesota Statutes 1998, section 126C.12, 
152.32  subdivision 2, is amended to read: 
152.33     Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
152.34  public employee licensed by the board of teaching whose duties 
152.35  are full-time instruction, excluding a teacher for whom 
152.36  categorical aids are received pursuant to ~~sections~~ section 
153.1   125A.76 ~~and 125A.77~~.  Except as provided in section 122A.68, 
153.2   subdivision 6, instructor does not include supervisory and 
153.3   support personnel, except school social workers as defined in 
153.4   section 122A.15.  An instructor whose duties are less than 
153.5   full-time instruction must be included as an equivalent only for 
153.6   the number of hours of instruction in grades kindergarten 
153.7   through 6. 
153.8      Sec. 17.  Minnesota Statutes 1998, section 127A.05, 
153.9   subdivision 4, is amended to read: 
153.10     Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
153.11  adopt new rules ~~and amend them~~ or amend any existing rules only 
153.12  under specific authority and consistent with the requirements of 
153.13  chapter 14.  The commissioner may repeal any existing 
153.14  rules adopted by the commissioner.  Notwithstanding the 
153.15  provisions of section 14.05, subdivision 4, the commissioner may 
153.16  grant a variance to rules adopted by the commissioner upon 
153.17  application by a school district for purposes of implementing 
153.18  experimental programs in learning or school management.  This 
153.19  subdivision shall not prohibit the commissioner from making 
153.20  technical changes or corrections to ~~adopted~~ rules adopted by the 
153.21  commissioner. 
153.22     Sec. 18.  Minnesota Statutes 1998, section 127A.41, 
153.23  subdivision 8, is amended to read: 
153.24     Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
153.25  appropriation from the general fund to the department for any 
153.26  education aid or grant authorized in this chapter and chapters 
153.27  122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 
153.28  under sections 124D.135, ~~124D.14,~~ 124D.16, 124D.20, 124D.21, 
153.29  124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 
153.30  exceeds the amount required, the commissioner may transfer the 
153.31  excess to any education aid or grant appropriation that is 
153.32  insufficient.  However, section 126C.20 applies to a deficiency 
153.33  in the direct appropriation for general education aid.  Excess 
153.34  appropriations must be allocated proportionately among aids or 
153.35  grants that have insufficient appropriations.  The commissioner 
153.36  of finance shall make the necessary transfers among 
154.1   appropriations according to the determinations of the 
154.2   commissioner.  If the amount of the direct appropriation for the 
154.3   aid or grant plus the amount transferred according to this 
154.4   subdivision is insufficient, the commissioner shall prorate the 
154.5   available amount among eligible districts.  The state is not 
154.6   obligated for any additional amounts.  
154.7      Sec. 19.  Minnesota Statutes 1998, section 127A.41, 
154.8   subdivision 9, is amended to read: 
154.9      Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
154.10  PROGRAMS.] If a direct appropriation from the general fund to 
154.11  the department of children, families, and learning for an 
154.12  education aid or grant authorized under section 
154.13  124D.135, ~~124D.14,~~ 124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 
154.14  124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 
154.15  required, the commissioner of children, families, and learning 
154.16  may transfer the excess to any education aid or grant 
154.17  appropriation that is insufficiently funded under these sections.
154.18  Excess appropriations shall be allocated proportionately among 
154.19  aids or grants that have insufficient appropriations.  The 
154.20  commissioner of finance shall make the necessary transfers among 
154.21  appropriations according to the determinations of the 
154.22  commissioner of children, families, and learning.  If the amount 
154.23  of the direct appropriation for the aid or grant plus the amount 
154.24  transferred according to this subdivision is insufficient, the 
154.25  commissioner shall prorate the available amount among eligible 
154.26  districts.  The state is not obligated for any additional 
154.27  amounts. 
154.28     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
154.29  181A.04, subdivision 6, is amended to read: 
154.30     Subd. 6.  A high school student under the age of 18 must 
154.31  not be permitted to work after 11:00 p.m. on an evening before a 
154.32  school day or before 5:00 a.m. on a school day, except as 
154.33  permitted by section 181A.07, subdivisions 1, 2, 3, and 4.  If a 
154.34  high school student under the age of 18 has supplied the 
154.35  employer with a note signed by the parent or guardian of the 
154.36  student, the student may be permitted to work until 11:30 p.m. 
155.1   on the evening before a school day and beginning at 4:30 a.m. on 
155.2   a school day. 
155.3      For the purpose of this subdivision, a high school student 
155.4   does not include a student enrolled in an alternative education 
155.5   program approved by the commissioner of children, families, and 
155.6   learning or an area learning center, including area learning 
155.7   centers under sections 123A.05 to 123A.08 or according to 
155.8   section ~~122A.164~~ 122A.163. 
155.9      Sec. 21.  Laws 1999, chapter 241, article 1, section 69, is 
155.10  amended to read: 
155.11     Sec. 69.  [REPEALER.] 
155.12     (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 
155.13  subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 
155.14     (b) Minnesota Statutes 1998, section 120B.05, is repealed 
155.15  effective for revenue for fiscal year 2000. 
155.16     (c) Minnesota Statutes 1998, section 124D.65, subdivisions 
155.17  1, 2, and 3, are repealed effective for revenue for fiscal year 
155.18  2001. 
155.19     (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
155.20  subdivision 4; and 126C.06, are repealed effective the day 
155.21  following final enactment. 
155.22     ~~This appropriation is available until June 30, 2001.~~ 
155.23     Sec. 22.  Laws 1999, chapter 241, article 4, section 27, 
155.24  subdivision 5, is amended to read: 
155.25     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
155.26  alternative facilities bonding aid, according to Minnesota 
155.27  Statutes, section 123B.59: 
155.28       $19,058,000    .....     2000 
155.29       $19,286,000    .....     2001 
155.30     The 2000 appropriation includes $1,700,000 for ~~2000~~ 1999 
155.31  and $17,358,000 for ~~2001~~ 2000. 
155.32     The 2001 appropriation includes $1,928,000 for 2000 and 
155.33  $17,358,000 for 2001. 
155.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
155.35  following final enactment. 
155.36     Sec. 23.  Laws 1999, chapter 241, article 6, section 14, 
156.1   subdivision 5, is amended to read: 
156.2      Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
156.3   pupil transportation aid under Minnesota Statutes, section 
156.4   123B.92, subdivision 9: 
156.5        $18,586,000    .....     2000 
156.6        $20,922,000    .....     2001 
156.7      The 2000 appropriation includes $1,848,000 for ~~2000~~ 1999 
156.8   and $16,738,000 for ~~2001~~ 2000. 
156.9      The 2001 appropriation includes $1,860,000 for 2000 and 
156.10  $19,062,000 for 2001. 
156.11     <b>EFFECTIVE DATE:</b>  This section is effective the day 
156.12  following final enactment. 
156.13     Sec. 24.  Laws 1999, chapter 241, article 9, section 49, is 
156.14  amended to read: 
156.15     Sec. 49.  [TRANSITION.] 
156.16     Notwithstanding Minnesota Statutes, section 15.0597, the 
156.17  terms of persons who are members appointed by the governor 
156.18  before the effective date of section ~~8~~ 37, shall have their term 
156.19  end on July 31 of the year following the last year of their 
156.20  appointment. 
156.21     Sec. 25.  [REVISOR INSTRUCTION.] 
156.22     In the next and subsequent editions of Minnesota Statutes, 
156.23  the revisor shall renumber section 123B.02, subdivision 12, as 
156.24  120A.22, subdivision 1a.  The revisor shall correct all 
156.25  cross-references to be consistent with the renumbering. 
156.26     Sec. 26.  [REPEALER.] 
156.27     Laws 1999, chapter 241, article 9, sections 35 and 36, are 
156.28  repealed.  Laws 1999, chapter 245, article 4, section 3, is 
156.29  repealed. 
156.30                             ARTICLE 10
156.31                          HIGHER EDUCATION
156.32                           APPROPRIATIONS 
156.33  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
156.34     The sums in the columns marked "APPROPRIATIONS" are 
156.35  appropriated from the general fund, or other named fund, to the 
156.36  agencies and for the purposes specified in this article.  The 
157.1   listing of an amount under the figure "2000" or "2001" in this 
157.2   article indicates that the amount is appropriated to be 
157.3   available for the fiscal year ending June 30, 2000, or June 30, 
157.4   2001, respectively.  "The first year" is fiscal year 2000.  "The 
157.5   second year" is fiscal year 2001.  "The biennium" is fiscal 
157.6   years 2000 and 2001. 
157.7                           SUMMARY BY FUND 
157.8                             2000          2001           TOTAL
157.9   General                   -0-     $   29,000,000 $   29,000,000
157.10                   SUMMARY BY AGENCY - ALL FUNDS
157.11                            2000          2001           TOTAL
157.12  Board of Trustees of the Minnesota
157.13  State Colleges and Universities
157.14                            -0-         13,180,000     13,180,000
157.15  Board of Regents of the University
157.16  of Minnesota
157.17                            -0-         15,820,000     15,820,000
157.18                                            APPROPRIATIONS 
157.19                                         Available for the Year 
157.20                                             Ending June 30 
157.21                                            2000         2001 
157.22  Sec. 2.  BOARD OF TRUSTEES OF THE
157.23  MINNESOTA STATE COLLEGES AND UNIVERSITIES
157.24  Subdivision 1.  Total
157.25  Appropriation                                       $13,180,000
157.26  The amounts that may be spent from this 
157.27  appropriation for each purpose are 
157.28  specified in the following subdivisions.
157.29  Subd. 2.  Deficiency                                
157.30  Appropriations                                                 
157.31         -0-         11,600,000
157.32  This is a one-time appropriation under 
157.33  Minnesota Statutes, section 135A.031, 
157.34  subdivision 4, to fund unanticipated 
157.35  enrollment increases.  This 
157.36  appropriation is added to the 
157.37  appropriation in Laws 1999, chapter 
157.38  214, article 1, section 3, subdivision 
157.39  1. 
157.40  Subd. 3.  Farm Business     
157.41  Management                                                     
157.42         -0-            250,000
157.43  This appropriation is to provide 
157.44  educational and management services to 
157.45  a greater number of farmers facing 
157.46  financial hardship in the farm wrap and 
157.47  farm help network service areas. 
158.1   Subd. 4.  Urban Teacher     
158.2   Preparation                                                    
158.3          -0-          1,250,000
158.4   This is a one-time appropriation for 
158.5   the development and implementation of 
158.6   the secondary and early childhood 
158.7   education components of the program 
158.8   established by this subdivision. 
158.9   (a) The board shall offer a program of 
158.10  teacher preparation leading to 
158.11  licensure, involving Metropolitan State 
158.12  University, Inver Hills Community 
158.13  College, and Minneapolis Community and 
158.14  Technical College.  The institutions 
158.15  involved shall enter into an agreement 
158.16  whereby Inver Hills Community College 
158.17  and Minneapolis Community and Technical 
158.18  College shall provide the first two 
158.19  years of the program, and Metropolitan 
158.20  State University shall provide the 
158.21  final two years of the program.  In 
158.22  fall semester 2000, Minneapolis 
158.23  Community and Technical College and 
158.24  Inver Hills Community College shall 
158.25  offer a preeducation program.  After 
158.26  development of the program in fiscal 
158.27  year 2001, Metropolitan State 
158.28  University shall begin its licensure 
158.29  program in fall semester 2001.  The 
158.30  program shall focus on preparing 
158.31  teachers to meet the specific needs of 
158.32  urban and inner-ring suburban schools 
158.33  and shall emphasize significant direct 
158.34  classroom teaching experience and 
158.35  mentoring throughout each student's 
158.36  preparation.  The program may also 
158.37  focus on the professional development 
158.38  of pretenure teachers.  Metropolitan 
158.39  State University, Inver Hills Community 
158.40  College, and Minneapolis Community and 
158.41  Technical College are encouraged to 
158.42  enter into partnerships with urban and 
158.43  inner-ring suburban schools to provide 
158.44  for significant involvement of 
158.45  elementary and secondary teachers in 
158.46  the mentoring of students enrolled in 
158.47  the program.  
158.48  (b) The legislature expects the program 
158.49  to enroll at least 50 percent students 
158.50  of color. 
158.51  (c) By February 15, 2002, and annually 
158.52  thereafter, the board of trustees shall 
158.53  provide a progress report to the chairs 
158.54  of the higher education finance 
158.55  divisions of the legislature regarding 
158.56  the development of the teacher 
158.57  preparation program.  The annual report 
158.58  shall include, to the extent 
158.59  practicable at the time of preparation, 
158.60  information comparing program outcomes 
158.61  with the target expectations set forth 
158.62  in paragraph (b).  The report shall 
158.63  include feedback from enrolled students 
158.64  concerning how the program meets their 
158.65  needs, as well as from cooperating 
158.66  elementary and secondary schools on how 
159.1   the students are performing on site. 
159.2   Subd. 5.  Cook County Higher
159.3   Education Project                                              
159.4          -0-             80,000
159.5   This appropriation is for the Cook 
159.6   county higher education project for 
159.7   delivery of educational services 
159.8   electronically.  The board shall submit 
159.9   a report in the biennial budget 
159.10  document on uses of the appropriation.  
159.11  The report shall include information 
159.12  regarding the number of students 
159.13  served, credit hours delivered, other 
159.14  services provided, strategic direction 
159.15  of the project, expected future funding 
159.16  sources, and collaborations with other 
159.17  organizations. 
159.18  Sec. 3.  BOARD OF REGENTS OF THE 
159.19  UNIVERSITY OF MINNESOTA 
159.20  Subdivision 1.  Total
159.21  Appropriation                                         15,820,000
159.22  The amounts that may be spent from this 
159.23  appropriation for each purpose are 
159.24  specified in the following subdivisions.
159.25  Subd. 2.  Operations and
159.26  Maintenance 
159.27  (a) North Star Research Coalition                               
159.28         -0-         15,000,000
159.29  This is a one-time appropriation for 
159.30  the university's contribution to the 
159.31  North Star Research Coalition.  The 
159.32  commissioner of finance may not release 
159.33  this appropriation until the university 
159.34  presents evidence that a nonprofit 
159.35  tax-exempt corporation, to be known as 
159.36  the North Star Research Coalition, in a 
159.37  form complying with this paragraph, has 
159.38  been established.  The commissioner 
159.39  shall release the money appropriated, 
159.40  as a one-for-one match for money from 
159.41  nonstate sources, on a quarterly basis, 
159.42  until the appropriation is expended.  
159.43  Notwithstanding any law to the 
159.44  contrary, this appropriation shall not 
159.45  cancel, but is available until expended.
159.46  The board of regents is requested to 
159.47  establish a partnership with private 
159.48  industry to leverage the university's 
159.49  research capabilities into economic 
159.50  development results through the 
159.51  creation of a nonprofit tax-exempt 
159.52  corporation to be known as the North 
159.53  Star Research Coalition.  The money for 
159.54  projects funded under this initiative 
159.55  must be used to fund research projects 
159.56  consistent with priorities established 
159.57  by the partnership, purchase equipment 
159.58  for research laboratories, and 
159.59  establish endowed faculty chairs in the 
159.60  area of technology-based research. 
160.1   The coalition may fund research 
160.2   projects that establish collaborative 
160.3   research efforts among the University 
160.4   of Minnesota and the private sector, 
160.5   the Mayo Clinic, nonprofit research 
160.6   institutes, or the Minnesota state 
160.7   colleges and universities. 
160.8   The duties of the coalition include: 
160.9   (1) identifying technology-based 
160.10  research projects that have the 
160.11  potential to create significant 
160.12  opportunities for economic development 
160.13  and industrial growth in the state; 
160.14  (2) strengthening the university's 
160.15  research capabilities in subject areas 
160.16  associated with emerging 
160.17  technology-based industries; 
160.18  (3) expanding the research capacity of 
160.19  the university through the creation of 
160.20  opportunities for the university to 
160.21  assist private enterprises in emerging 
160.22  technology-based industries; 
160.23  (4) promoting the transfer of 
160.24  technology from the research laboratory 
160.25  to commercial application by 
160.26  businesses; 
160.27  (5) developing application procedures 
160.28  for, reviewing, and prioritizing 
160.29  research projects seeking funding under 
160.30  this initiative; and 
160.31  (6) creating opportunities for 
160.32  collaborative research opportunities 
160.33  among the University of Minnesota, the 
160.34  Mayo Clinic, nonprofit research 
160.35  institutes, and the Minnesota state 
160.36  colleges and universities. 
160.37  The board shall have the authority to 
160.38  allocate state and nonstate money to 
160.39  projects. 
160.40  The incorporating documents of the 
160.41  North Star Research Coalition must 
160.42  provide for representation of 
160.43  university and private sector interests 
160.44  on the coalition's board of directors 
160.45  and provide that changes in the 
160.46  governance structure require a super 
160.47  majority of the board.  The board 
160.48  consists of 12 members.  Six shall be 
160.49  appointed by the board of regents of 
160.50  the University of Minnesota and need 
160.51  not be affiliated with the university.  
160.52  The initial six members representing 
160.53  the private sector shall be appointed 
160.54  by the governor.  Subsequent members 
160.55  representing the private sector shall 
160.56  be appointed by the incumbent members.  
160.57  Private sector members of the board 
160.58  must have expertise in the technology 
160.59  research needs of the state and not be 
160.60  affiliated with the university. 
160.61  (b) Duluth; Child Care                                         
161.1          -0-            220,000
161.2   To provide for child care in the newly 
161.3   renovated Kirby Center. 
161.4   Subd. 3.  Special           
161.5   Appropriation                                                  
161.6   Agricultural Rapid Response Fund
161.7          -0-            600,000
161.8   This appropriation is for the rapid 
161.9   agricultural response fund.  The 
161.10  university shall report on the uses of 
161.11  this appropriation in the biennial 
161.12  budget document.  This appropriation is 
161.13  added to the appropriation in Laws 
161.14  1999, chapter 214, article 1, section 
161.15  4, subdivision 5, paragraph (a). 
161.16     Sec. 4.  Minnesota Statutes 1998, section 136A.125, is 
161.17  amended by adding a subdivision to read: 
161.18     Subd. 4c.  [SURPLUS FUNDS.] Any projected surplus 
161.19  appropriation in the child care grant program in the first year 
161.20  of a biennium shall be used to augment the maximum award in 
161.21  subdivision 4 in the second year of the biennium. 
161.22     Sec. 5.  Laws 1999, chapter 214, article 1, section 4, 
161.23  subdivision 2, is amended to read: 
161.24  Subd. 2.  Operations and
161.25  Maintenance                          513,279,000    533,870,000
161.26  Estimated Expenditures 
161.27  and Appropriations 
161.28  The legislature estimates that 
161.29  instructional expenditures will be 
161.30  $461,521,000 in the first year and 
161.31  $484,679,000 in the second year. 
161.32  The legislature estimates that 
161.33  noninstructional expenditures will be 
161.34  $202,367,000 in the first year and 
161.35  $201,717,000 in the second year.  
161.36  By January 30, 2000, the University 
161.37  shall submit to the governor and the 
161.38  legislature a master academic plan for 
161.39  the Rochester region that clearly 
161.40  defines the academic needs of the 
161.41  region, short and long-term plans to 
161.42  address those needs including the 
161.43  designation of responsibility among the 
161.44  partner institutions, short and 
161.45  long-term demographic and enrollment 
161.46  projections, physical plant capacity 
161.47  and needs, and a delineation of 
161.48  missions among the partner institutions 
161.49  to avoid competition and duplication. 
161.50  Notwithstanding Minnesota Statutes 
161.51  1998, section 137.022, subdivision 4, 
161.52  in fiscal year 2001 the first $200,000 
162.1   of permanent university fund income 
162.2   from royalties for mining under state 
162.3   mineral leases designated for the 
162.4   natural resources research institute 
162.5   shall be allocated by the board of 
162.6   regents to the department of landscape 
162.7   architecture to develop a long-range 
162.8   plan for the reclamation of taconite 
162.9   mining lands.  The board shall allocate 
162.10  the money ~~only if an equal or greater~~ 
162.11  ~~amount of matching money from nonstate~~ 
162.12  ~~sources has been pledged to support the~~ 
162.13  ~~project by June 30, 2000~~ in increments 
162.14  of $50,000 as each $50,000 is matched 
162.15  by nonstate sources, provided that no 
162.16  money may be allocated after June 30, 
162.17  2001. 
162.18  The University of Minnesota academic 
162.19  health center, after consultation with 
162.20  the health care community and medical 
162.21  education and research costs advisory 
162.22  committee, shall report by January 15, 
162.23  2000, to the higher education finance 
162.24  committees on the strategic direction 
162.25  of its health professional programs.  
162.26  The plans shall include a programmatic 
162.27  and financial model for health 
162.28  professional education that will meet 
162.29  the state's future workforce needs, 
162.30  maintain the integrity of the education 
162.31  process, provide an appropriate level 
162.32  of ongoing financial support, and 
162.33  provide a framework for the health 
162.34  community and academic health center to 
162.35  work together in meeting the health 
162.36  needs of the state.  The academic 
162.37  health center is requested to provide 
162.38  the report also to the commissioner of 
162.39  health and the legislative commission 
162.40  on health care access. 
162.41     Sec. 6.  [REPEALER.] 
162.42     Minnesota Rules, parts 4830.9005, 4830.9010, 4830.9015, 
162.43  4830.9020, and 4830.9030, are repealed. 
162.44                             ARTICLE 11 
162.45                EARLY CHILDHOOD AND FAMILY EDUCATION 
162.46     Section 1.  Minnesota Statutes 1999 Supplement, section 
162.47  119B.011, subdivision 12, is amended to read: 
162.48     Subd. 12.  [EMPLOYMENT PLAN.] "Employment plan" means 
162.49  employment of recipients financially eligible for child care 
162.50  assistance, or other work activities defined under section 
162.51  256J.49, approved in an employability development, job search 
162.52  support plan, or employment plan that is developed by the county 
162.53  agency, if it is acting as an employment and training service 
162.54  provider, or by an employment and training service provider 
162.55  certified by the commissioner of economic security or an 
163.1   individual designated by the county to provide employment and 
163.2   training services.  The plans and designation of a service 
163.3   provider must meet the requirements of this chapter and chapter 
163.4   256J or chapter 256K, Minnesota Rules, parts 3400.0010 to 
163.5   3400.0230, and other programs that provide federal reimbursement 
163.6   for child care services. 
163.7      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
163.8   119B.011, subdivision 15, is amended to read: 
163.9      Subd. 15.  [INCOME.] "Income" means earned or unearned 
163.10  income received by all family members, including public 
163.11  assistance cash benefits and at-home infant care subsidy 
163.12  payments, unless specifically excluded.  The following are 
163.13  excluded from income:  funds used to pay for health insurance 
163.14  premiums for family members, Supplemental Security Income, 
163.15  scholarships, work-study income, and grants that cover costs or 
163.16  reimbursement for tuition, fees, books, and educational 
163.17  supplies; student loans for tuition, fees, books, supplies, and 
163.18  living expenses; state and federal earned income tax credits; 
163.19  in-kind income such as food stamps, energy assistance, foster 
163.20  care assistance, medical assistance, child care assistance, and 
163.21  housing subsidies; earned income of ~~full~~ full-time or part-time 
163.22  students up to the age of 19, who have not earned a high school 
163.23  diploma or GED high school equivalency diploma including 
163.24  earnings from summer employment; grant awards under the family 
163.25  subsidy program; nonrecurring lump sum income only to the extent 
163.26  that it is earmarked and used for the purpose for which it is 
163.27  paid; and any income assigned to the public authority according 
163.28  to section 256.74 or 256.741. 
163.29     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
163.30  119B.011, subdivision 20, is amended to read: 
163.31     Subd. 20.  [TRANSITION YEAR FAMILIES.] "Transition year 
163.32  families" means families who have received MFIP assistance, or 
163.33  who were eligible to receive MFIP assistance after choosing to 
163.34  discontinue receipt of the cash portion of MFIP assistance under 
163.35  section 256J.31, subdivision 12, for at least three of the last 
163.36  six months before losing eligibility for MFIP ~~due to increased~~ 
164.1   ~~income from employment or child or spousal support~~ or families 
164.2   participating in work first under chapter 256K who meet the 
164.3   requirements of section 256K.07.  Transition year child care may 
164.4   be used to support employment or job search.  Transition year 
164.5   child care is not available to families who have been 
164.6   disqualified from MFIP due to fraud. 
164.7      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
164.8   119B.03, subdivision 4, is amended to read: 
164.9      Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
164.10  care assistance under the basic sliding fee program must be 
164.11  given to eligible non-MFIP families who do not have a high 
164.12  school or general equivalency diploma or who need remedial and 
164.13  basic skill courses in order to pursue employment or to pursue 
164.14  education leading to employment and who need child care 
164.15  assistance to participate in the education program.  Within this 
164.16  priority, the following subpriorities must be used: 
164.17     (1) child care needs of minor parents; 
164.18     (2) child care needs of parents under 21 years of age; and 
164.19     (3) child care needs of other parents within the priority 
164.20  group described in this paragraph. 
164.21     (b) Second priority must be given to parents who have 
164.22  completed their MFIP or work first transition year. 
164.23     (c) Third priority must be given to families who are 
164.24  eligible for portable basic sliding fee assistance through the 
164.25  portability pool under subdivision 9. 
164.26     Sec. 5.  Minnesota Statutes 1998, section 119B.03, is 
164.27  amended by adding a subdivision to read: 
164.28     Subd. 6a.  [ALLOCATION DUE TO INCREASED FUNDING.] When 
164.29  funding increases are implemented within a calendar year, every 
164.30  county must receive an allocation at least equal and 
164.31  proportionate to its original allocation for the same time 
164.32  period.  The remainder of the allocation must be recalculated to 
164.33  reflect the funding increase, according to formulas identified 
164.34  in subdivision 6. 
164.35     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
164.36  119B.05, subdivision 1, is amended to read: 
165.1      Subdivision 1.  [ELIGIBLE PARTICIPANTS.] Families eligible 
165.2   for child care assistance under the MFIP child care program are: 
165.3      (1) MFIP participants who are employed or in job search and 
165.4   meet the requirements of section 119B.10; 
165.5      (2) persons who are members of transition year families 
165.6   under section 119B.011, subdivision 20; 
165.7      (3) families who are participating in employment 
165.8   orientation or job search, or other employment or training 
165.9   activities that are included in an approved employability 
165.10  development plan under chapter 256K; 
165.11     (4) MFIP families who are participating in work activities 
165.12  defined under section 256J.49 as required in their job search 
165.13  support or employment plan, or in appeals, hearings, 
165.14  assessments, or orientations according to chapter 256J~~.  Child~~ 
165.15  ~~care assistance to support work activities as described in~~ 
165.16  ~~section 256J.49 must be available according to sections~~ 
165.17  ~~119B.011, subdivision 11, 124D.13, 256E.08, and 611A.32 and~~ 
165.18  ~~titles IVA, IVB, IVE, and XX of the Social Security Act~~; and 
165.19     (5) families who are participating in programs as required 
165.20  in tribal contracts under section 119B.02, subdivision 2, or 
165.21  256.01, subdivision 2. 
165.22     Sec. 7.  Minnesota Statutes 1998, section 124D.16, 
165.23  subdivision 1, is amended to read: 
165.24     Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] ~~By February~~ 
165.25  ~~15, 1992, for the 1991-1992 school year or by May 1 preceding~~ 
165.26  ~~subsequent school years, a district must submit to the~~ 
165.27  ~~commissioners of children, families, and learning, and health~~ A 
165.28  school district shall biennially by May 1 submit to the 
165.29  commissioners of children, families, and learning and health the 
165.30  program plan required under this subdivision.  As determined by 
165.31  the commissioners, one-half of the districts shall first submit 
165.32  the plan by May 1 of the 2000-2001 school year and one-half of 
165.33  the districts shall first submit the plan by May 1 of the 
165.34  2001-2002 school year.  The program plan must include: 
165.35     (1) a description of the services to be provided; 
165.36     (2) a plan to ensure children at greatest risk receive 
166.1   appropriate services; 
166.2      (3) a description of procedures and methods to be used to 
166.3   coordinate public and private resources to maximize use of 
166.4   existing community resources, including school districts, health 
166.5   care facilities, government agencies, neighborhood 
166.6   organizations, and other resources knowledgeable in early 
166.7   childhood development; 
166.8      (4) comments about the district's proposed program by the 
166.9   advisory council required by section 124D.15, subdivision 7; and 
166.10     (5) agreements with all participating service providers.  
166.11     Each commissioner may review and comment on the program, 
166.12  and make recommendations to the commissioner of children, 
166.13  families, and learning, within 30 days of receiving the plan. 
166.14     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
166.15  124D.221, subdivision 2, is amended to read: 
166.16     Subd. 2.  [PRIORITY NEIGHBORHOODS.] For grants in 
166.17  Minneapolis and St. Paul, the commissioner must give priority to 
166.18  neighborhoods in this subdivision.  In Minneapolis, priority 
166.19  neighborhoods are Near North, Hawthorne, Sumner-Glenwood, 
166.20  Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland, 
166.21  McKinley, Waite Park, Sheridan, Holland, Lyndale, Folwell, and 
166.22  Phillips.  In St. Paul, priority neighborhoods are 
166.23  Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons 
166.24  Bluff, and the West Side.  
166.25     Sec. 9.  [124D.515] [ADULT BASIC EDUCATION AID 
166.26  DEFINITIONS.] 
166.27     Subdivision 1.  [APPLICABILITY.] For purposes of this 
166.28  chapter, the following terms have the meanings given them. 
166.29     Subd. 2.  [ADULT BASIC EDUCATION CONSORTIUM.] "Adult basic 
166.30  education consortium" means a voluntary association of school 
166.31  districts, public agencies, or nonprofit organizations that work 
166.32  together to provide coordinated adult basic education services 
166.33  in a designated geographic area, and that act as a fiscal entity 
166.34  providing adult basic education services. 
166.35     Subd. 3.  [CONTACT HOURS.] (a) "Contact hours" means the 
166.36  number of hours during which a student was engaged in learning 
167.1   activities provided by an approved adult education program.  
167.2      (b) Contact hours for an organization funded in fiscal year 
167.3   2000, but not eligible for basic population aid in fiscal year 
167.4   2001, is computed by multiplying the organization's contact 
167.5   hours by 1.08. 
167.6      (c) Contact hours excludes homework. 
167.7      Subd. 4.  [FIRST PRIOR PROGRAM YEAR.] "First prior program 
167.8   year" means the period from May 1 of the second prior fiscal 
167.9   year through April 30 of the first prior fiscal year. 
167.10     Subd. 5.  [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 
167.11  means allowable adult basic education expenses of a program that 
167.12  are not covered by payments from federal or private for profit 
167.13  sources. 
167.14     Sec. 10.  Minnesota Statutes 1998, section 124D.52, 
167.15  subdivision 1, is amended to read: 
167.16     Subdivision 1.  [PROGRAM REQUIREMENTS.] An adult basic 
167.17  education program is a day or evening program offered by a 
167.18  district that is for people over 16 years of age who do not 
167.19  attend an elementary or secondary school.  The program offers 
167.20  academic instruction necessary to earn a high school diploma or 
167.21  equivalency certificate.  Tuition and fees may not be charged to 
167.22  a learner for instruction paid under this section, except for a 
167.23  security deposit to assure return of materials, supplies, and 
167.24  equipment. 
167.25     Each approved adult basic education program must develop a 
167.26  memorandum of understanding with the local workforce development 
167.27  centers located in the approved program's service delivery 
167.28  area.  The memorandum of understanding must describe how the 
167.29  adult basic education program and the workforce development 
167.30  centers will cooperate and coordinate services to provide 
167.31  unduplicated, efficient, and effective services to clients.  
167.32     Adult basic education aid must be spent for adult basic 
167.33  education purposes, and to meet the adult basic education 
167.34  criteria, as specified in sections 124D.515 to 124D.531. 
167.35     Sec. 11.  Minnesota Statutes 1998, section 124D.52, 
167.36  subdivision 2, is amended to read: 
168.1      Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
168.2   section, a district, a consortium of districts, or a private 
168.3   nonprofit organization must submit an application by June 1 
168.4   describing the program, on a form provided by the department.  
168.5   The program must be approved by the commissioner according to 
168.6   the following criteria:  
168.7      (1) how the needs of different levels of learning will be 
168.8   met; 
168.9      (2) for continuing programs, an evaluation of results; 
168.10     (3) anticipated number and education level of participants; 
168.11     (4) coordination with other resources and services; 
168.12     (5) participation in a consortium, if any, and money 
168.13  available from other participants; 
168.14     (6) management and program design; 
168.15     (7) volunteer training and use of volunteers; 
168.16     (8) staff development services; 
168.17     (9) program sites and schedules; ~~and~~ 
168.18     (10) program expenditures that qualify for aid; 
168.19     (11) program ability to provide data related to learner 
168.20  outcomes as required by law; and 
168.21     (12) a copy of the memorandum of understanding described in 
168.22  subdivision 1 submitted to the commissioner.  
168.23     (b) ~~The commissioner may grant adult basic education funds~~ 
168.24  ~~to a private, nonprofit organization to provide services that~~ 
168.25  ~~are not offered by a district or that are supplemental to a~~ 
168.26  ~~district's program.  The program provided under this provision~~ 
168.27  ~~must be approved and funded according to the same criteria used~~ 
168.28  ~~for district programs.~~ 
168.29     ~~(c)~~ Adult basic education programs may be approved under 
168.30  this subdivision for up to five years.  Five-year program 
168.31  approval must be granted to an applicant who has demonstrated 
168.32  the capacity to: 
168.33     (1) offer comprehensive learning opportunities and support 
168.34  service choices appropriate for and accessible to adults at all 
168.35  basic skill need levels; 
168.36     (2) provide a participatory and experiential learning 
169.1   approach based on the strengths, interests, and needs of each 
169.2   adult, that enables adults with basic skill needs to: 
169.3      (i) identify, plan for, and evaluate their own progress 
169.4   toward achieving their defined educational and occupational 
169.5   goals; 
169.6      (ii) master the basic academic reading, writing, and 
169.7   computational skills, as well as the problem-solving, decision 
169.8   making, interpersonal effectiveness, and other life and learning 
169.9   skills they need to function effectively in a changing society; 
169.10     (iii) locate and be able to use the health, governmental, 
169.11  and social services and resources they need to improve their own 
169.12  and their families' lives; and 
169.13     (iv) continue their education, if they desire, to at least 
169.14  the level of secondary school completion, with the ability to 
169.15  secure and benefit from continuing education that will enable 
169.16  them to become more employable, productive, and responsible 
169.17  citizens; 
169.18     (3) plan, coordinate, and develop cooperative agreements 
169.19  with community resources to address the needs that the adults 
169.20  have for support services, such as transportation, flexible 
169.21  course scheduling, convenient class locations, and child care; 
169.22     (4) collaborate with business, industry, labor unions, and 
169.23  employment-training agencies, as well as with family and 
169.24  occupational education providers, to arrange for resources and 
169.25  services through which adults can attain economic 
169.26  self-sufficiency; 
169.27     (5) provide sensitive and well trained adult education 
169.28  personnel who participate in local, regional, and statewide 
169.29  adult basic education staff development events to master 
169.30  effective adult learning and teaching techniques; 
169.31     (6) participate in regional adult basic education peer 
169.32  program reviews and evaluations; ~~and~~ 
169.33     (7) submit accurate and timely performance and fiscal 
169.34  reports; 
169.35     (8) submit accurate and timely reports related to program 
169.36  outcomes and learner follow-up information; and 
170.1      (9) spend adult basic education aid on adult basic 
170.2   education purposes only, which are specified in sections 
170.3   124D.515 to 124D.531.  
170.4      (c) The commissioner shall require each district to provide 
170.5   notification by February 1, 2001, of its intent to apply for 
170.6   funds under this section as a single district or as part of an 
170.7   identified consortium of districts.  A district receiving funds 
170.8   under this section must notify the commissioner by February 1 of 
170.9   its intent to change its application status for applications due 
170.10  the following June 1. 
170.11     Sec. 12.  Minnesota Statutes 1998, section 124D.52, 
170.12  subdivision 3, is amended to read: 
170.13     Subd. 3.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
170.14  districts, or private nonprofit organization providing adult 
170.15  basic education programs must establish and maintain accounts 
170.16  separate from all other district accounts for the receipt and 
170.17  disbursement of all funds related to these programs.  All 
170.18  revenue received pursuant to this section must be utilized 
170.19  solely for the purposes of adult basic education programs.  
170.20  Federal and state aid ~~plus levy~~ must not equal more than 100 
170.21  percent of the ~~actual cost~~ unreimbursed expenses of providing 
170.22  these programs, excluding in-kind costs.  
170.23     Sec. 13.  Minnesota Statutes 1998, section 124D.52, is 
170.24  amended by adding a subdivision to read: 
170.25     Subd. 6.  [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 
170.26  ADULT BASIC EDUCATION PROGRAMS.] (a) A school district, or adult 
170.27  basic education consortium that receives revenue under section 
170.28  124D.531, may deliver English as a second language, citizenship, 
170.29  or other adult education programming in collaboration with 
170.30  community-based and nonprofit organizations located within its 
170.31  district or region, and with correctional institutions.  The 
170.32  organization or correctional institution must have the 
170.33  demonstrated capacity to offer education programs for adults.  
170.34  Community-based or nonprofit organizations must meet the 
170.35  criteria in paragraph (b), or have prior experience.  A 
170.36  community-based or nonprofit organization or a correctional 
171.1   institution may be reimbursed for unreimbursed expenses as 
171.2   defined in section 124D.515, subdivision 5, for the 
171.3   administration of English as a second language or adult basic 
171.4   education programs, not to exceed eight percent of the total 
171.5   funds provided by a school district or adult basic education 
171.6   consortium.  The administrative reimbursement for a school 
171.7   district or adult basic education consortium that delivers 
171.8   services cooperatively with a community-based or nonprofit 
171.9   organization or correctional institution is limited to five 
171.10  percent of the program aid, not to exceed the unreimbursed 
171.11  expenses of administering programs delivered by community-based 
171.12  or nonprofit organizations or correctional institutions.  
171.13     (b) A community-based organization or nonprofit 
171.14  organization that delivers education services under this section 
171.15  must demonstrate that it has met the following criteria: 
171.16     (1) be legally established as a nonprofit organization; 
171.17     (2) have an established system for fiscal accounting and 
171.18  reporting that is consistent with the department of children, 
171.19  families, and learning's adult basic education completion report 
171.20  and reporting requirements under section 124D.531; 
171.21     (3) require all instructional staff to complete a training 
171.22  course in teaching adult learners; and 
171.23     (4) develop a learning plan for each student that 
171.24  identifies defined educational and occupational goals with 
171.25  measures to evaluate progress.  
171.26     Sec. 14.  [124D.521] [CONSORTIUM REQUIREMENTS.] 
171.27     Each consortium, as defined under section 124D.515, 
171.28  subdivision 1, must meet at least twice per year to develop and 
171.29  amend as necessary an annual consortium agreement signed by all 
171.30  members and filed with the department of children, families, and 
171.31  learning that at a minimum includes:  
171.32     (1) a description of the members and fiscal agent of the 
171.33  consortium; 
171.34     (2) a description of the contributions of each member of 
171.35  the consortium and the process for distributing state aid among 
171.36  the members; and 
172.1      (3) the state adult basic education assurances from the 
172.2   annual adult basic education program application. 
172.3      As a condition of membership in a consortium, each member 
172.4   must make a documented contribution toward the cost of adult 
172.5   basic education programming, either as a direct financial 
172.6   contribution, or an in-kind contribution. 
172.7      Each consortium's designated fiscal agent must: 
172.8      (1) collect data from consortium members; 
172.9      (2) submit required performance reports and fiscal reports 
172.10  to the state; 
172.11     (3) receive state adult basic education aid under section 
172.12  124D.531 for adult basic education programming delivered by the 
172.13  consortium; and 
172.14     (4) distribute state adult basic education aid to members 
172.15  of the consortium according to the consortium agreement under 
172.16  sources. 
172.17     Sec. 15.  [124D.522] [ADULT BASIC EDUCATION POLICY REVIEW 
172.18  TASK FORCE.] 
172.19     Subdivision 1.  [ESTABLISHMENT.] A nine-member adult basic 
172.20  education policy review task force is established to advise the 
172.21  commissioner on program and funding policies for adult basic 
172.22  education programs that receive aid under section 124D.531.  The 
172.23  commissioner must appoint task force members to two-year terms, 
172.24  by June 30, 2000.  Members do not receive per diem, but may be 
172.25  reimbursed for expenses as specified in section 15.059, 
172.26  subdivision 3.  At a minimum, the task force must hold two 
172.27  meetings.  All other matters of the review task force's 
172.28  operation, except expiration of the task force under subdivision 
172.29  4, are governed by section 15.069. 
172.30     Subd. 2.  [MEMBERSHIP.] Members are appointed by the 
172.31  commissioner.  The commissioner must appoint two members of the 
172.32  task force from rural programs, two members from suburban 
172.33  programs, two members from urban programs, one member from a 
172.34  nonprofit group that has knowledge and expertise in the area of 
172.35  adult literacy, one member who is currently an adult basic 
172.36  education learner or has participated in an adult basic 
173.1   education program, and one member who is an adult basic 
173.2   education instructor.  Members of the legislature and 
173.3   representatives of other concerned groups may be included as 
173.4   unofficial members of the task force.  
173.5      Subd. 3.  [DUTIES.] The policy review task force must: 
173.6      (1) recommend to the legislature a mission statement for a 
173.7   statewide system of adult basic education programs that includes 
173.8   educational outcomes, services, eligible learners, requirements 
173.9   for teacher licensing, expectations for student advancement and 
173.10  progress, and recognition of the importance of distance learning 
173.11  and other technology-based instruction methods; 
173.12     (2) advise the commissioner on adult basic education 
173.13  standard policies and procedures; 
173.14     (3) advise the commissioner on the adult basic education 
173.15  curriculum and course offerings, including policies to offer 
173.16  computer literacy and other skill-based education through adult 
173.17  basic education programs; 
173.18     (4) recommend to the legislature the minimum number of 
173.19  contact hours that are necessary in order for a program to 
173.20  continue; 
173.21     (5) recommend to the legislature an adequate and reasonable 
173.22  hourly rate for smaller programs; 
173.23     (6) recommend to the legislature a reasonable range for the 
173.24  number of instructional hours or a reasonable cap on the number 
173.25  of hours individuals may spend in adult basic education 
173.26  instruction; 
173.27     (7) recommend to the legislature an outcome-based adult 
173.28  basic education funding system that rewards and recognizes 
173.29  student progress in attaining educational goals; and 
173.30     (8) review statewide grant applications for supplemental 
173.31  services under section 124D.522. 
173.32     Subd. 4.  [EXPIRATION.] The adult basic education policy 
173.33  review task force expires on January 2, 2001. 
173.34     Sec. 16.  [124D.523] [ADULT BASIC EDUCATION SUPPLEMENTAL 
173.35  SERVICE GRANTS.] 
173.36     (a) The commissioner, in consultation with the policy 
174.1   review task force under section 124D.521, may make grants to 
174.2   nonprofit organizations to provide services that are not offered 
174.3   by a district adult basic education program or that are 
174.4   supplemental to either the statewide adult basic education 
174.5   program, or a district's adult basic education program.  The 
174.6   commissioner may make grants for:  staff development for adult 
174.7   basic education teachers and administrators; training for 
174.8   volunteer tutors; training, services, and materials for serving 
174.9   disabled students through adult basic education programs; 
174.10  statewide promotion of adult basic education services and 
174.11  programs; development and dissemination of instructional and 
174.12  administrative technology for adult basic education programs; 
174.13  programs delivered by communities of color; adult basic 
174.14  education distance learning projects, including television 
174.15  instruction programs; and other supplemental services to support 
174.16  the mission of adult basic education and innovative delivery of 
174.17  adult basic education services.  
174.18     (b) The commissioner must establish eligibility criteria 
174.19  and grant application procedures.  Grants under this section 
174.20  must support services throughout the state, focus on educational 
174.21  results for adult learners, and promote outcome-based 
174.22  achievement through adult basic education programs.  The 
174.23  commissioner may make grants under this section from funds 
174.24  specifically appropriated for supplemental service grants.  Up 
174.25  to one-third of the appropriation for supplemental service 
174.26  grants must be used for grants for adult basic education 
174.27  programs to encourage and support innovations in adult basic 
174.28  education instruction and service delivery.  A grant to a single 
174.29  organization must be for two years or less and cannot exceed 
174.30  $100,000.  Nothing in this section prevents an approved adult 
174.31  basic education program from using state or federal aid to 
174.32  purchase supplemental services. 
174.33     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
174.34  124D.53, subdivision 3, is amended to read: 
174.35     Subd. 3.  [AID.] For fiscal year 2000, adult basic 
174.36  education aid for each approved program equals ~~$2,295 for fiscal~~ 
175.1   ~~year 2000 and $2,338 for fiscal year 2001 and later fiscal~~ 
175.2   ~~years~~ $1,767 times the number of full-time equivalent students 
175.3   in its adult basic education program during the first prior 
175.4   program year. 
175.5      Sec. 18.  [124D.531] [ADULT BASIC EDUCATION AID.] 
175.6      Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] (a)
175.7   The state total adult basic education aid for fiscal year 2001 
175.8   equals $30,207,000.  The state total adult basic education aid 
175.9   for later years equals: 
175.10     (1) the state total adult basic education aid for the 
175.11  preceding fiscal year; times 
175.12     (2) the lesser of: 
175.13     (i) 1.08, or 
175.14     (ii) the greater of 1.00 or the ratio of the state total 
175.15  contact hours in the first prior program year to the state total 
175.16  contact hours in the second prior program year. 
175.17     (b) The state total adult basic education aid, excluding 
175.18  basic population aid, equals the difference between the amount 
175.19  computed in paragraph (a), and the state total basic population 
175.20  aid under subdivision 2. 
175.21     Subd. 2.  [BASIC POPULATION AID.] A district is eligible 
175.22  for basic population aid if the district has a basic service 
175.23  level approved by the commissioner under section 124D.52, 
175.24  subdivision 5, or is a member of a consortium with an approved 
175.25  basic service level.  Basic population aid is equal to the 
175.26  greater of $4,000 or $1.80 times the population of the district. 
175.27  District population is determined according to section 275.14. 
175.28     Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
175.29  established under section 124D.52 and approved by the 
175.30  commissioner are eligible for revenue under this subdivision.  
175.31  For fiscal year 2001 and later, adult basic education revenue 
175.32  for each approved program equals the sum of: 
175.33     (1) the basic population aid under subdivision 2 for 
175.34  districts participating in the program during the current 
175.35  program year; plus 
175.36     (2)(i) for fiscal year 2001, 84 percent times the amount 
176.1   computed in subdivision 1, paragraph (b), times the ratio of the 
176.2   contact hours for students participating in the program during 
176.3   the first prior program year to the state total contact hours 
176.4   during the first prior program year; plus 
176.5      (ii) for fiscal year 2002, 84 percent times the amount 
176.6   computed in subdivision 1, paragraph (b), times the ratio of the 
176.7   contact hours for students participating in the program during 
176.8   the first and second prior program years to the state total 
176.9   contact hours during the first and second prior program years; 
176.10  plus 
176.11     (iii) for fiscal year 2003, and thereafter, 84 percent 
176.12  times the amount computed in subdivision 1, paragraph (b), times 
176.13  the ratio of the contact hours for students participating in the 
176.14  program during the first, second, and third prior program years 
176.15  to the state total contact hours during the first, second, and 
176.16  third prior program years; plus 
176.17     (3) eight percent times the amount computed in subdivision 
176.18  1, paragraph (b), times the ratio of the enrollment of students 
176.19  with limited English proficiency during the prior school year in 
176.20  districts participating in the program during the current 
176.21  program year to the state total enrollment of students with 
176.22  limited English proficiency during the prior school year in 
176.23  districts participating in adult basic education programs during 
176.24  the current program year; plus 
176.25     (4) eight percent times the amount computed in subdivision 
176.26  1, paragraph (b), times the ratio of the latest federal census 
176.27  count of the number of adults aged 20 or older with no diploma 
176.28  residing in the districts participating in the program during 
176.29  the current program year to the latest federal census count of 
176.30  the state total number of adults aged 20 or older with no 
176.31  diploma residing in the districts participating in adult basic 
176.32  education programs during the current program year. 
176.33     Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
176.34  Notwithstanding subdivisions 2 and 3, the total adult basic 
176.35  education aid for a program per prior year contact hour must not 
176.36  exceed four times the rate per prior year contact hour computed 
177.1   under subdivision 3, clause (2). 
177.2      (b) For fiscal year 2002 and later, the aid for a program 
177.3   under subdivision 3, clause (2), adjusted for changes in program 
177.4   membership, must not exceed the aid for that program under 
177.5   subdivision 3, clause (2), for the first preceding fiscal year 
177.6   by more than the greater of 20 percent or $20,000. 
177.7      (c) Adult basic education aid is payable to a program for 
177.8   unreimbursed costs. 
177.9      Subd. 5.  [INSTITUTIONAL PROGRAMS.] Notwithstanding section 
177.10  124D.531, for fiscal year 2001 only, adult basic education aid 
177.11  for an approved program in its first year of operation that 
177.12  provides adult basic education services at a newly constructed 
177.13  correctional facility equals the product of the number of 
177.14  contact hours during the current program year, times 1.08, times 
177.15  the rate per contact hour established under section 124D.531, 
177.16  subdivision 3, clause (2). 
177.17     Subd. 6.  [AID GUARANTEE.] Notwithstanding subdivisions 1, 
177.18  3, and 4, for fiscal year 2001, any adult basic education 
177.19  program qualifying for aid under this section, that receives 
177.20  less state aid than in fiscal year 2000 must receive additional 
177.21  aid equal to the difference between its fiscal year 2000 aid and 
177.22  its fiscal year 2001 aid. 
177.23     Subd. 7.  [PAYMENT OF AID TO FISCAL AGENT.] Adult basic 
177.24  education aid must be paid directly to the fiscal agent of each 
177.25  approved program.  An approved program must have only one fiscal 
177.26  agent. 
177.27     Subd. 8.  [PROGRAM AUDITS.] Programs that receive aid under 
177.28  this section must maintain records that support the aid 
177.29  payments.  The commissioner may audit these records upon 
177.30  request.  The commissioner must establish procedures for 
177.31  conducting fiscal audits of adult basic education programs 
177.32  according to the schedule in this subdivision.  In fiscal year 
177.33  2002, the commissioner must audit all approved adult basic 
177.34  education programs that received aid for fiscal year 2001.  
177.35  Beginning with fiscal year 2003, the commissioner must, at a 
177.36  minimum, audit each adult basic education program once every 
178.1   five years.  The commissioner must establish procedures to 
178.2   reconcile any discrepancies between aid payments based on 
178.3   information reported to the commissioner and aid estimates based 
178.4   on a program audit. 
178.5      Subd. 9.  [ADMINISTRATIVE CAP.] A consortium or district 
178.6   shall not spend more than five percent of the consortium or 
178.7   district's total adult basic education aid on administrative 
178.8   costs. 
178.9      Subd. 10.  [FISCAL REPORTS.] Programs that receive aid 
178.10  under this section must submit an annual report to the 
178.11  commissioner that includes revenue and expense reports for each 
178.12  district and program, including instructional services offered 
178.13  in partnership with businesses and nonprofit organizations. 
178.14     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
178.15  fiscal years beginning with 2001. 
178.16     Sec. 19.  Minnesota Statutes 1998, section 245A.14, 
178.17  subdivision 4, is amended to read: 
178.18     Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
178.19  child care programs serving 14 or fewer children that are 
178.20  conducted at a location other than the license holder's own 
178.21  residence shall be licensed under this section and the rules 
178.22  governing family day care or group family day care if:  
178.23     (a) the license holder is the primary provider of care and 
178.24  the nonresidential child care program is conducted in a dwelling 
178.25  that is located on a residential lot; ~~or~~ 
178.26     (b) the license holder is an employer who may or may not be 
178.27  the primary provider of care, and the purpose for the child care 
178.28  program is to provide child care services to children of the 
178.29  license holder's employees; or 
178.30     (c) the license holder is a church or religious 
178.31  organization. 
178.32     Sec. 20.  Minnesota Statutes 1998, section 245A.14, is 
178.33  amended by adding a subdivision to read: 
178.34     Subd. 8.  [EXPERIENCED AIDES; CHILD CARE CENTERS.] (a) An 
178.35  individual employed as an aide at a child care center may work 
178.36  with children without being directly supervised for up to 25 
179.1   percent of the individual's daily work shift if: 
179.2      (1) a teacher is in the building; 
179.3      (2) the individual has received first aid training within 
179.4   the last three years; and 
179.5      (3) the individual is at least 20 years old and has at 
179.6   least 4,160 hours of child care experience as defined in section 
179.7   245A.02, subdivision 6b. 
179.8      (b) The use of an experienced aide working without direct 
179.9   supervision under paragraph (a) is limited to 25 percent of each 
179.10  classrooms' daily hours of operation. 
179.11     (c) A child care center that utilizes experienced aides 
179.12  under this subdivision must notify the parents or guardians of 
179.13  the children who are cared for under this subdivision, and must 
179.14  send a duplicate letter to the commissioner of human services, 
179.15  licensing division.  The notice must provide the approximate 
179.16  number of hours per classroom per month that this subdivision is 
179.17  utilized. 
179.18     (d) This subdivision sunsets June 30, 2002. 
179.19     Sec. 21.  Laws 1998, First Special Session chapter 1, 
179.20  article 1, section 10, is amended to read: 
179.21     Sec. 10.  [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 
179.22     Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
179.23  state or TANF matching funds in the family assets for 
179.24  independence initiative, a household must ~~have income at or~~ 
179.25  ~~below 185 percent of the federal poverty level and assets of~~ 
179.26  ~~$15,000 or less.  An individual who is a dependent of another~~ 
179.27  ~~person for federal income tax purposes may not be a separate~~ 
179.28  ~~eligible household for purposes of establishing a family asset~~ 
179.29  ~~account.  An individual who is a debtor for a judgment resulting~~ 
179.30  ~~from nonpayment of a court-ordered child support obligation may~~ 
179.31  ~~not participate in this program.  Households accessing TANF~~ 
179.32  ~~matching funds are subject to the MFIP definition of household~~ 
179.33  ~~under Minnesota Statutes, section 256J.08, subdivision 46.~~  
179.34  ~~Income and assets are determined according to eligibility~~ 
179.35  ~~guidelines for the energy assistance program~~ meet the 
179.36  eligibility requirements of the federal Assets for Independence 
180.1   Act, Public Law Number 105-285, in title IV, section 408, of 
180.2   that act. 
180.3      Sec. 22.  Laws 1998, First Special Session chapter 1, 
180.4   article 1, section 11, is amended to read: 
180.5      Sec. 11.  [WITHDRAWAL; MATCHING; PERMISSIBLE USES.] 
180.6      Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match, 
180.7   a participating household must transfer funds withdrawn from a 
180.8   family asset account to its matching fund custodial account held 
180.9   by the fiscal agent, according to the family asset agreement.  
180.10  The ~~fiduciary organization~~ fiscal agent must determine if the 
180.11  match request is for a permissible use consistent with the 
180.12  household's family asset agreement. 
180.13     The fiscal agent must ensure the household's custodial 
180.14  account contains the applicable matching funds to match the 
180.15  balance in the household's account, including interest, on at 
180.16  least a quarterly basis and at the time of an approved 
180.17  withdrawal.  Matches must be provided as follows: 
180.18     (1) from state grant and TANF funds a matching contribution 
180.19  of $1.50 for every $1 of funds withdrawn from the family asset 
180.20  account equal to the lesser of $720 per year or a $3,000 
180.21  lifetime limit; and 
180.22     (2) from nonstate funds, a matching contribution of no less 
180.23  than $1.50 for every $1 of funds withdrawn from the family asset 
180.24  account equal to the lesser of $720 per year or a $3,000 
180.25  lifetime limit. 
180.26     Sec. 23.  Laws 1999, chapter 205, article 1, section 65, is 
180.27  amended to read: 
180.28     Sec. 65.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
180.29  FISCAL YEAR 2000 AND FISCAL YEAR 2001.] 
180.30     A district that complies with Minnesota Statutes, section 
180.31  124D.13, shall receive additional early childhood family 
180.32  education aid for fiscal year 2000 and fiscal year 2001 equal to 
180.33  $2.46 times the greater of: 
180.34     (1) 150; or 
180.35     (2) the number of people under five years of age residing 
180.36  in the school district on October 1 of the previous school 
181.1   year.  The additional early childhood family education aid may 
181.2   be used only for early childhood family education programs. 
181.3      Sec. 24.  Laws 1999, chapter 205, article 1, section 71, 
181.4   subdivision 3, is amended to read: 
181.5      Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
181.6   childhood family education aid according to Minnesota Statutes, 
181.7   section 124D.135: 
181.8        ~~$20,485,000~~ $20,109,000   .....     2000 
181.9        ~~$19,420,000~~ $21,107,000   .....     2001
181.10     The 2000 appropriation includes $1,390,000 for 1999 and 
181.11  ~~$19,095,000~~ $18,719,000 for 2000.  
181.12     The 2001 appropriation includes ~~$2,122,000~~ $2,079,000 for 
181.13  2000 and ~~$17,298,000~~ $19,028,000 for 2001.  
181.14     Any balance in the first year does not cancel but is 
181.15  available in the second year. 
181.16     Sec. 25.  Laws 1999, chapter 205, article 1, section 71, 
181.17  subdivision 7, is amended to read: 
181.18     Subd. 7.  [SCHOOL AGE CARE AID.] For extended day aid 
181.19  according to Minnesota Statutes, section 124D.22: 
181.20       $274,000       .....     2000 
181.21       ~~$216,000~~ $245,000       .....     2001
181.22     The 2000 appropriation includes $30,000 for 1999 and 
181.23  $244,000 for 2000. 
181.24     The 2001 appropriation includes $27,000 for 2000 and 
181.25  ~~$189,000~~ $218,000 for 2001. 
181.26     Any balance in the first year does not cancel but is 
181.27  available in the second year. 
181.28     Sec. 26.  Laws 1999, chapter 205, article 1, section 71, 
181.29  subdivision 9, is amended to read: 
181.30     Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
181.31  according to Minnesota Statutes, section 119B.05: 
181.32       ~~$86,318,000~~ $66,524,000    .....     2000 
181.33       ~~$88,443,000~~ $78,606,000    .....     2001
181.34     Any balance in the first year does not cancel but is 
181.35  available in the second year. 
181.36     Sec. 27.  Laws 1999, chapter 205, article 2, section 4, 
182.1   subdivision 3, is amended to read: 
182.2      Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
182.3   education aid according to Minnesota Statutes, section 124D.20: 
182.4        $14,136,000    .....     2000 
182.5        ~~$14,696,000~~ $15,274,000    .....     2001 
182.6      The 2000 appropriation includes $160,000 for 1999 and 
182.7   $13,976,000 for 2000.  
182.8      The 2001 appropriation includes $1,552,000 for 2000 and 
182.9   ~~$13,144,000~~ $13,722,000 for 2001.  
182.10     Any balance in the first year does not cancel but is 
182.11  available in the second year. 
182.12     Sec. 28.  Laws 1999, chapter 205, article 4, section 12, 
182.13  subdivision 5, is amended to read: 
182.14     Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
182.15  education aid according to Minnesota Statutes, section 124D.52, 
182.16  in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 
182.17  fiscal year 2001:  
182.18       $20,132,000    .....     2000
182.19       ~~$22,477,000~~ $29,168,000   .....     2001 
182.20     The 2000 appropriation includes $1,227,000 for 1999 and 
182.21  $18,905,000 for 2000.  
182.22     The 2001 appropriation includes $2,101,000 for 2000 and 
182.23  ~~$20,376,000~~ $27,067,000 for 2001.  
182.24     Sec. 29.  Laws 1999, chapter 205, article 4, section 12, 
182.25  subdivision 6, is amended to read: 
182.26     Subd. 6.  [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 
182.27  basic population aid for eligible districts under section 7: 
182.28       ~~$1,960,000~~ $1,974,000     .....     2000 
182.29     Notwithstanding Minnesota Statutes, section 127A.45, 
182.30  subdivision 12, 100 percent of this appropriation is for fiscal 
182.31  year 2000. 
182.32     Any balance in the first year does not cancel but is 
182.33  available in the second year.  This is a one-time appropriation. 
182.34     Sec. 30.  Laws 1999, chapter 205, article 4, section 12, 
182.35  subdivision 7, is amended to read: 
182.36     Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
183.1   according to Minnesota Statutes, section 124D.54: 
183.2        ~~$3,184,000~~ $2,760,000     .....     2000
183.3        ~~$4,732,000~~ $3,031,000     .....     2001
183.4      The 2000 appropriation includes ~~$258,000~~ $258,000 for 1999 
183.5   and ~~$2,926,000~~ $2,502,000 for 2000.  
183.6      The 2001 appropriation includes ~~$325,000~~ $278,000 for 2000 
183.7   and ~~$4,407,000~~ $2,753,000 for 2001. 
183.8      Sec. 31.  [COMPETENCY-BASED ADULT BASIC EDUCATION AND 
183.9   ENGLISH AS A SECOND LANGUAGE LICENSE.] 
183.10     The board of teaching must convene a task force to develop 
183.11  a competency-based license for teachers of adult basic education 
183.12  classes and English as a second language class.  The 
183.13  competency-based license must be an alternative to the current 
183.14  licensing requirements.  By January 15, 2002, the board of 
183.15  teaching must present their recommendations to the committees of 
183.16  the legislature responsible for teacher licensing and funding of 
183.17  adult basic education programs, including recommendations for 
183.18  implementing competency-based licensing for teachers of adult 
183.19  learners. 
183.20     Sec. 32.  [ADULT BASIC EDUCATION CONSORTIUM DISTRIBUTION TO 
183.21  MEMBERS.] 
183.22     Consortiums receiving additional funding based on 
183.23  population aid shall proportionately distribute that additional 
183.24  funding to noneducation institution members of the consortium 
183.25  based upon the percentage of contact hours each noneducation 
183.26  institution member provides.  This provision shall be effective 
183.27  through June 30, 2001. 
183.28     Sec. 33.  [ENERGY ASSISTANCE PROGRAM.] 
183.29     (a) The commissioner of economic security shall establish 
183.30  policies and procedures to address the findings in the 
183.31  department of administration's evaluation of Minnesota's energy 
183.32  assistance program published in December 1999. 
183.33     (b) The commissioner of economic security shall develop: 
183.34     (1) outcome measures, in accordance with federal 
183.35  recommendations, by which to evaluate subgrantee performance and 
183.36  the program as a whole; 
184.1      (2) methods to identify the eligible population for the 
184.2   energy assistance program; 
184.3      (3) procedures to improve program consistency across the 
184.4   state.  This shall address program start and end dates, 
184.5   eligibility determination, eligibility verification, and 
184.6   application and payment processing times; and 
184.7      (4) improved internal management practices.  This includes 
184.8   program oversight, evaluation and auditing of the service 
184.9   delivery agencies, computer software system, and overall 
184.10  management.  The report shall also include proposals for the 
184.11  utilization of technology to provide for the most cost-effective 
184.12  service delivery. 
184.13     Sec. 34.  [FEDERAL TANF APPROPRIATIONS.] 
184.14     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
184.15  LEARNING.] The sums indicated in this section are appropriated 
184.16  from the federal TANF block grant fund to the commissioner of 
184.17  children, families, and learning for the fiscal years 
184.18  indicated.  These amounts are available until expended and may 
184.19  be carried forward and spent in the 2002-2003 biennium. 
184.20     Subd. 2.  [TRANSITIONAL HOUSING PROGRAMS.] For transitional 
184.21  housing programs according to Minnesota Statutes, section 
184.22  119A.43: 
184.23       $3,700,000     .....     2001
184.24     The amount appropriated under this subdivision does not 
184.25  cancel, but is available until expended. 
184.26     Sec. 35.  [FEDERAL TANF TRANSFERS.] 
184.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
184.28  LEARNING.] The sums indicated in this section are transferred 
184.29  from the federal TANF fund to the child care and development 
184.30  fund and appropriated to the commissioner of children, families, 
184.31  and learning for the fiscal year designated.  The commissioner 
184.32  shall ensure that all transferred funds are expended in 
184.33  accordance with the child care and development fund regulations 
184.34  and that the maximum allowable transferred funds are used for 
184.35  the program in this section. 
184.36     Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
185.1   assistance according to Minnesota Statutes, section 119B.03: 
185.2       $11,789,000     .....     2001
185.3       $ 5,888,000     .....     2002
185.4       $ 2,488,000     .....     2003
185.5      The amounts appropriated under this subdivision do not 
185.6   cancel, but are available until expended. 
185.7      Subd. 3.  [MFIP SOCIAL SERVICE CHILD CARE.] For social 
185.8   service child care costs of eligible MFIP participants according 
185.9   to Minnesota Statutes, section 119B.05: 
185.10       $3,233,000     .....     2001
185.11       $3,297,000     .....     2002
185.12       $2,865,000     .....     2003
185.13     This amount shall be added to the federal TANF block grant 
185.14  base with regard to this program. 
185.15     Subd. 4.  [MFIP EDUCATION CHILD CARE.] For child care costs 
185.16  related to the possible modifications to Minnesota Statutes, 
185.17  section 256J.522, made in the 2000 legislative session in the 
185.18  health and family security omnibus bill, which allows 24 months 
185.19  of education to eligible MFIP participants under certain 
185.20  circumstances.  If the changes to Minnesota Statutes, section 
185.21  256J.522, relating to 24 months of education do not pass into 
185.22  law, the money appropriated under this subdivision shall revert 
185.23  to the basic sliding fee program under subdivision 2, for fiscal 
185.24  year 2001: 
185.25         $600,000     .....     2001
185.26     Subd. 5.  [TRANSITION YEAR FAMILIES.] To provide 
185.27  uninterrupted assistance under Minnesota Statutes, section 
185.28  119B.03, for families completing transition year child care 
185.29  assistance: 
185.30       $1,080,000     .....     2001
185.31       $3,620,000     .....     2002
185.32       $4,040,000     .....     2003
185.33     A balance may be carried forward one fiscal year.  Any 
185.34  amount remaining in fiscal year 2003 that is not needed for 
185.35  uninterrupted child care must be used for assistance under 
185.36  Minnesota Statutes, section 119B.03. 
186.1      Sec. 36.  [GENERAL FUND APPROPRIATIONS.] 
186.2      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
186.3   LEARNING.] The sums indicated in this section are appropriated 
186.4   from the general fund to the commissioner of children, families, 
186.5   and learning for the fiscal years designated.  The amounts are 
186.6   available until expended and may be carried forward to the 
186.7   2002-2003 biennium. 
186.8      Subd. 2.  [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
186.9   GRANTS.] For adult basic education supplemental service grants 
186.10  according to Minnesota Statutes, section 124D.522: 
186.11       $700,000     .....     2001 
186.12     This appropriation is added to the base for fiscal years 
186.13  2002 and 2003. 
186.14     Subd. 3.  [ADULT BASIC ADMINISTRATION.] For the adult basic 
186.15  policy review task force under Minnesota Statutes, section 
186.16  124D.521, and for administration of the state adult basic 
186.17  education program including auditing, technical assistance, and 
186.18  reporting requirements under this act: 
186.19       $100,000     .....     2001 
186.20     This appropriation is added to the fiscal year 2002 and 
186.21  2003 base. 
186.22     Subd. 4.  [CITIZENSHIP PROMOTION.] For the citizenship 
186.23  promotion program under Laws 1997, chapter 162, article 2, 
186.24  section 32: 
186.25       $350,000     .....     2001
186.26     Subd. 5.  [ADULTS WITH DISABILITIES.] For purposes of the 
186.27  adults with disabilities pilot programs under Laws 1997, chapter 
186.28  162, article 2, section 31, subdivision 4: 
186.29       $40,000     .....     2001
186.30     Subd. 6.  [EMERGENCY SERVICES.] For emergency services 
186.31  grants according to Laws 1997, chapter 162, article 3, section 7:
186.32       $1,477,000     .....     2001
186.33     Sec. 37.  [REPORT.] 
186.34     The commissioner of economic security shall submit a report 
186.35  to the legislature detailing the costs and benefits of operating 
186.36  the energy assistance program.  The report shall be submitted to 
187.1   the senate jobs, energy and community development committee, and 
187.2   the house jobs and economic development policy committee by 
187.3   January 30, 2001. 
187.4      Sec. 38.  [TRANSFER OF ENERGY ASSISTANCE AND WEATHERIZATION 
187.5   RESPONSIBILITIES.] 
187.6      Energy assistance and weatherization responsibilities under 
187.7   Minnesota Statutes, sections 119A.40, 119A.41, 119A.42, and 
187.8   119A.425, are transferred from the department of children, 
187.9   families, and learning to the department of economic security.  
187.10     Sec. 39.  [INSTRUCTION TO REVISOR.] 
187.11     The revisor of statutes shall renumber each section of 
187.12  Minnesota Statutes listed in column A with the number listed in 
187.13  column B.  The revisor shall also make necessary cross-reference 
187.14  changes consistent with the renumbering. 
187.15            column A        column B 
187.16            119A.40         268.985 
187.17            119A.41         268.986 
187.18            119A.42         268.987 
187.19            119A.425        268.989 
187.20     Sec. 40.  [REPEALER.] 
187.21     Minnesota Statutes 1998, section 124D.53, subdivisions 1, 
187.22  2, and 5, are repealed.  Minnesota Statutes 1999 Supplement, 
187.23  section 124D.53, subdivision 4, is repealed.  Laws 1998, First 
187.24  Special Session chapter 1, article 1, section 10, subdivision 2, 
187.25  is repealed. 
187.26     Sec. 41.  [EFFECTIVE DATE.] 
187.27     Sections 33 and 37 to 39 are effective the day following 
187.28  final enactment.